The Order-Taker's Territory
Brahmaputra Agro Traders distributes irrigation pumps and spares across six districts of Assam. Seven field sales representatives call on 180 hardware and agri-input retailers. Last year turnover rose 11% to ₹4.2 crore, but gross margin fell 2.3 percentage points and 68% of sales came from just three dealers. The best-performing rep makes 22 retailer calls a day, averaging six minutes each, and opens almost every conversation with the current 5% trade scheme. Dealer feedback collected by the manager: 'Your people only come to push schemes; nobody explains installation or service.' A new competitor has begun bundling free installation and a two-year service contract. The sales manager has one quarter and a modest training budget to respond. The managing director wants a six-month plan that improves margin without losing volume, and asks whether the answer is more reps, better incentives, or a different selling approach.
1. Is the problem primarily a personal-selling approach problem, a structural problem, or both? Justify using evidence from the setup, and state what additional data you would collect before committing to a fix.
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The evidence points to both, with the selling approach as the immediate lever. A six-minute call opened with a 5% scheme is classic order-taking: the rep competes on price and does nothing to build the dealer's capability to sell or service pumps. A 22-call day leaves no time for installation demonstration, dealer staff training or problem solving, so the only differentiator is the scheme - which explains the 2.3-point margin fall. But structure matters too: 68% of turnover from three dealers is a concentration risk, and seven reps for 180 retailers may be misallocated rather than too few. Before committing, collect SKU-wise margin, call-wise order conversion, dealer potential and satisfaction, competitor share by district, and cost per call. More reps without a role change would raise cost-to-sales; richer incentives alone would reward more discounting. The fix is a redesigned role plus account-tiered coverage, not headcount.
2. Design the changed role of the field representative: which activities to add or drop, and how time should be reallocated. Be specific about call frequency and account tiers.
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Tier the 180 dealers by potential and margin: roughly 25 A, 55 B, 100 C. A dealers get two planned visits a month plus a quarterly business review with the manager; B get one visit a month; C move to a fortnightly phone or WhatsApp order routine with one visit a quarter. This cuts the 22-call day to 12-14 planned calls and releases 25-30% of time. Each call needs a pre-set objective - not 'collect order' - such as demonstrating installation, training two dealer staff, resolving a service complaint, or selling spares. Drop scripted scheme announcements; carry a one-page service and total-cost sheet. Introduce pre-call planning and a five-line call report. Give reps authority to settle service complaints within 48 hours so they return with a solution, not an excuse. Replace the flat scheme with a volume-plus-service bundle so the dealer earns on sell-through rather than on stocking.
3. What leading and lagging indicators should the manager track over the next two quarters, and what would make you abandon or redesign the plan?
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Leading indicators: planned-call adherence, share of calls with a demonstration or training component, dealer staff trained, service complaints closed within 48 hours, quotes issued and converted, and scheme-dependent orders as a percentage of total. Lagging: gross margin percentage, share of sales from the top three dealers, spares attachment rate, repeat order rate, dealer satisfaction score and cost per call. Set a 90-day checkpoint: if margin has not moved at least 0.5 points and top-three concentration has not fallen, the plan is not working. Abandon triggers: margin falls further, A-dealer retention drops, or call productivity collapses. Review monthly with the manager, not quarterly, because the scheme habit will reassert itself. Pair the metrics with a short dealer survey to catch the complaint 'we see you more but get less help', which numbers alone will miss.