The Valley Winery
186
Part One
Formulation of a Sales Program
Case 1.1
The Valley Winery
Pat Waller, recently hired as sales manager of the San
Francisco region's chain division, was lamenting the problems he inherited. Despite favorable sales results for the San Francisco region, turnover was so severe Waller could not understand how sales increased during the past several years. He was surprised to learn the average sales rep had been with the San Francisco division of Valley
Winery for only seven months and sales force turnover neared 100 percent a year. In fact, only one sales rep had more than two years' experience. Waller had heard that high turnover was a problem nationwide but did not expect such high figures for San Francisco.
Waller supervises two area managers, who in turn direct nine district managers. District managers supervise five to six sales reps, of which there are 50 in the San
Francisco division. Approximately 50 new sales reps are hired each year, but the sales force size remains relatively constant. Waller knew the increased competitiveness in the market would make it more difficult to continue to obtain future sales increases. The excessive turnover problem would command immediate attention.
THE COMPANY
The Valley Winery, founded in 1933 inNapa, California, is the largest domestic producer of wine in the United
States. Started with only a $7,500 investment at the end of Prohibition, it has become the leading producer of low-priced, consistent-quality wines. Favorite brands include Santo Key and Valley premium table wines, Astral sparkling wines, Valley brandy, and most recently the
Cool Valley line of wine coolers. As is true with most other wineries, Valley produces a low-grade, fortified sherry known in the streets as "Sneaky Pete." This product appeals to a small market niche and receives virtually no marketing support. The Valley name does not even appear on the label, a practice followed by other wineries
as
Part One
Formulation of a Sales Program
Case 1.1
The Valley Winery
Pat Waller, recently hired as sales manager of the San
Francisco region's chain division, was lamenting the problems he inherited. Despite favorable sales results for the San Francisco region, turnover was so severe Waller could not understand how sales increased during the past several years. He was surprised to learn the average sales rep had been with the San Francisco division of Valley
Winery for only seven months and sales force turnover neared 100 percent a year. In fact, only one sales rep had more than two years' experience. Waller had heard that high turnover was a problem nationwide but did not expect such high figures for San Francisco.
Waller supervises two area managers, who in turn direct nine district managers. District managers supervise five to six sales reps, of which there are 50 in the San
Francisco division. Approximately 50 new sales reps are hired each year, but the sales force size remains relatively constant. Waller knew the increased competitiveness in the market would make it more difficult to continue to obtain future sales increases. The excessive turnover problem would command immediate attention.
THE COMPANY
The Valley Winery, founded in 1933 inNapa, California, is the largest domestic producer of wine in the United
States. Started with only a $7,500 investment at the end of Prohibition, it has become the leading producer of low-priced, consistent-quality wines. Favorite brands include Santo Key and Valley premium table wines, Astral sparkling wines, Valley brandy, and most recently the
Cool Valley line of wine coolers. As is true with most other wineries, Valley produces a low-grade, fortified sherry known in the streets as "Sneaky Pete." This product appeals to a small market niche and receives virtually no marketing support. The Valley name does not even appear on the label, a practice followed by other wineries
as