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Sales performance evaluation of an electrical equipment manufacturer / by Henry Joseph Nechvatal.

by Nechvatal, Henry Joseph.

Marketing -- Management

Industrial management.

iii, 31 leaves : ill. ; 28 cm.

Introduction to the problem -- Design of the investigation -- Analysis of the data -- Results and conclusions -- Appendixes: A. Sales office market concentration -- B. Distributor market concentration -- C. Office sales -- D. Distributor sales -- E. Penetration -- F. Concentration by market -- G. Sales positions -- H. Market concentration by job title.

The purpose of this essay was to evaluate the sales performance of an international manufacturer of electrical equipment. The evaluation was made from two perspectives, performance of the company as a whole, and product line sales performance. The primary concern was whether or not industrial control products were getting their "fair share" of the company’s selling efforts or market concentration.

A survey was sent to sales offices in the United States to determine personnel and distributor market concentrations. Sixteen of the twenty offices responded, representing 10% of the total.

During the survey period, 1972 to 1977, the company achieved a successful 15% average increase in sales each year. Sales were split among three major product groups -- 45% distribution, 35% industrial control and 20% power systems. Penetration was 14.1 % for distribution products, almost twice the 7.1% for industrial control products.

Sales personnel concentrated in three major market segments -- industrial, construction and utility. Individual concentrations varied due to different job responsibilities, but the majority (55%) concentrated on the construction market. There was a slight shift from the construction market to the industrial and utility markets.

The majority of distributors (59%) concentrated on the construction market, also. Most of the company’s sales (84%) sent through independent electrical distributors. Even with a 12% increase in distributors, the average sales per distributor increased 21%. Of the company’s total sales distributors sold 97% of the distribution products, 83% of the power systems products and 69% of the industrial control products.

Industrial control products appeared to be getting their "fair share" of the selling effort, since the industrial market concentration of both the company personnel and the distributors were higher than the percentage of sales achieved. However, industrial control product sales penetration was very low, almost half the penetration for distribution products. The company should concentrate more on the industrial control products, because of their growth potential. The market for industrial control products is 1.5 times larger than the market for distribution products.

To protect its share of the distribution product sales, the company should continue to use distributors as the main sales channel and have them concentrate on the construction market. To take advantage of the growth potential of the industrial control products, the company should add sales personnel specifically to concentrate on the industrial market. Additional distributors and additional personnel at existing distributors concentrating on the market segment would be also helpful.

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