Marketing 412. Week 2. Case 3.2. Global Positioning Products.

1535 Words7 Pages
Marketing 412
Week 2
Case 3.2
Global Positioning Products
JoAnn Calderon
Kendra Clay
Ungenetta Green
Amber Morse
Heather Smith
Brenau University

Executive Summary
The following report analyzes whether or not Andy Chulrane, the national sales manager for Global Positioning Products (GPP) should propose a restructure of the current sales strategy to the CEO in an effort to lower the current cost of sales. There are many factors that need to be examined in order to determine whether or not there is a need for a restructure. Currently the cost of sales for GPP is running at seven percent and the target cost of sales is set at five percent. Despite Andy’s efforts to cut costs, he has been unable to achieve the
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Andy should present the historical data showing that the cost of sales has been steady at seven percent for the past several years in an effort to convince the CEO to revise the five percent target and set a new and more realistic target percentage. Andy should also present a restructure plan that allows some, or all of the following: key sales representatives to manage the larger retail accounts, implementing new technology such as the Cisco System to allow for more direct sales relationships with customers, offer a different commission structure to the sales team to include new membership incentives and lower commission splits on already established accounts, incorporate regular training opportunities for the sales representatives, redistrict the sales territories, consider lay-offs, use an online customer support medium within their website, and also offer an option for assistance in buying products through the web.

Should Andy request a revision of the 5 percent cost-of-sales target? If so, what sort of information would he need to convince his CEO?
Yes, Andy should request a revision of the 5 percent cost-of-sales target because numbers don’t lie. It is clear that the CEO is not aware of the cost of sales running at 7 percent and the effect it has had on the loss of certain team members. Andy should inform the CEO of the decrease in volume of sales when there is a departure of employees who play a
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