Advantage Food & Beverage Sales Representative – Lennon Barretto
A. Problem/Opportunity Issue Statement - 10 Marks
i) Who is the Decision Maker? (In analyzing the case you put yourself in the decisions maker’s role and try to figure what you would do in his/her position.) ii) What is the main problem(s) or opportunity(s) that you (as the decision maker) must deal with? iii) Why is this issue important and how urgent is it?
iv) Provide any sub-issues that are relevant to the case.
v) Who are the key people and/or groups that you need to consider in solving the problem/opportunity?
-The decision maker is Lawrence Binsky, president of Advantage food & beverage -possible problems with selling process for the new retail format (kiosk) -Sales training program needed improvement (no formal background in sales, they felt lost -trouble finding reliable sales representatives to hire without firing. -sales reps lasted on average 4 months
-In review, all members agreed that the approach stage was the issue, more presentation was needed, therefore more prospect was needed -Lawrence believed the issue was that he made poor hiring decisions and he needs to find the perfect person for the job. -kiosk division was doing well but it did not guarantee future success and it could be improved. -selling process slowed as the sales reps attempted to locate the decision maker for the qualified company -further slowing the process… due to the fact that many people from the prospective customers were involved in the decision making process for the Avanti kiosk, compared to the vending unit. -Slowed process due to amount of work required to create a suitable space for the Avanti kiosk. (some customers would remodel an existing space while others would build a space)
B. Key Facts of the Case (relevant facts only, no analysis) - 10 Marks
i) Provide the relevant background that led to the problem/opportunity(s). ii) Provide any additional case information that provides context to the problem or opportunity.
-Advantage food & beverage (AF&B) founded in 1995 by two brothers, Lawrence and Daryl Binsky. -company offered traditional vending machine services to businesses in Columbus Ohio -Contract with Avanti Market system for exclusive territorial rights that included Columbus. Avanti Kiosk was similar to an on-site convenience store -2 divisions: Avanti kiosk division and the vending division -Avanti allowed the company to achieve superior financial performance -101 potential business targets
-salary $35000 base and additional 5 % commission (provided the location remained in operation and the sales reps remained with AF&B) -supply truck drivers restock merchandise
-traditional selling process (exhibit 2)
-gift basket left for the decision maker to aid with presentation scheduling -avanti kiosk operation could be established in as little as 2 weeks and as long as six weeks from close. -lawrence also attended the presentation as he would almost always close the sale at that time if presentation was going well
C. Situation Analysis - 20 Marks
i) Provide appropriate analysis for solving the case, for example: SWOT, Financials, PEST, Porter’s Five Forces, etc. If financial analysis is required complete/present in this section. ii) Provide the implications and conclusions of the observations that you have made in your analysis.
-2 divisions; Avanti and vending
-exclusive territorial rights including Columbus (due to contract with Avanti) -superior financial performance (net profit of $116,917)
-traditional selling process (might be a weakness)
-$20 worth, gift basket for decision maker to aid with presentation scheduling. -lawrence attended the presentation as he would almost always close the sale at that time if presentation was going well and he handled all objections as well.
-Traditional selling process (possibly)
-slow selling process due to sales rep attempting to locate the...
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