Hausser Food Case

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Hausser Food Products Company is well known for its production of infant food. It controled approximately 60 percent of the market and continued to increases sales every year until the baby bust in 1980. This was the first time that Hausser started to see a decrease in sales. The marketing department has focused its efforts to increase sales. Currently, they have divided the country into seven geographical regions, each with a sales manager who reports back to the district level. The first step to achieving higher sales starts with the new management techniques at the corporate level. While the sales have become stagnant, so have the selling techniques. Currently the sales representatives put in the minimal effort in order to…show more content…
This will also begin to increase effort. Involving employees will start the motivation process, but changing the bonuses system instead of giving a flat bonus for meeting end of year sales, will encourage them to exceed their projected goals. In addition, the bonuses should be distributed quarterly in order to keep the sales representatives motivated. Further, if a sales representative exceeds their sales numbers for a quarter they will receive an additional reward of their choice. This will start to create a culture where more than just the minimum is expected. The Pygmalion effect has shown that as more is expected of a person, they better they will perform. Creating a culture where more is expected, the better the performance. Hausser also needs to look further than his issue with motivating his employees. While Hausser has had success hiring MBA’s with lots of potential, it is not the perfect solution. In a district like Florida, the employees respond much better to a manager who they view as, “one of us.” Hausser should have a program where sales representatives who show consistent above average performance can be moved up. Before they are made Regional Sales Managers, they can go through a leadership training program to help transition them. Not only would this lead to managers who could easily relate to the sales representatives, but it will also give another incentive for sales representatives
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