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An Experience of a Salesman

CASE STUDY, MARKETING MANAGEMENT
ET CASES, 13 Pages
AUTHOR(S) : Mr. J. Srinivas Rao, Sr. Territory Manager (Sales-Hyderabad); Dr. Arijit Santikary, Associate Professor - SSIM and Dr.S.V. Ramana Rao, Director - SSIM

Case Preview

An Experience of a Salesman

J.Srinivas Rao (Srinivas) is a Management Graduate from a premier business school. He started his career in sanitary ware industry in a small way and rose up to the level of a manager. During his tenure at TOTO Ltd. (TOTO), a Japan-based Multinational Corporation, he experienced many ups and downs of the market and interacted with many customers and gaining varied experiences. When Srinivas started working in Hyderabad with TOTO, he happened to meet Ramana Chintala (Ramana), project engineer at Vasantha Green City (Vasantha), a luxury apartment project, to promote sanitary ware products. With great persistence of one long year, Srinivas got the opportunity to meet Vasantha Venkata Prasad (Prasad), the Managing Director (MD) of Vasantha Green City, to discuss about the supply of sanitary products. During the meeting, there were TOTO’s mock-up (Presentation and Demonstration) too. For almost two months after the demo, Srinivas regularly followed up with Vasantha to close the deal. After a long discussion Srinivas almost come to closure of the deal for the project wherein the company decided to use Toto sanitary products and place an order through an authorized channel of the company. One fine morning he visited Vasantha’s office as a follow up to close the deal, but, to his surprise, Srinivas saw specimens of a competitor brand with Vanity having Wash Basin. Srinivas was clueless about the sudden change of things at Vasantha - a deal which had almost come to a closure with a client (considered as a sure client) saw a competitor penetrating the client’s space. ..............

TOTO India Industries Pvt. Ltd.

TOTO started its operations in India in 1998 as TOTO India Industries Pvt. Ltd. (TOTO India), with its headquarters at Mumbai. In 2014, it started a factory in Vadodara, Gujarat (India), to produce wash let and sanitary ware. TOTO India’s sales control units are spread across India - Mumbai, Pune and Ahmedabad in central part of the country; Kolkata in the East; Delhi, Ludhiana, Chandigarh, Jaipur and Udaipur in northern India; Chennai, Hyderabad, Bangalore, Cochin and Calicut in southern India (Exhibit II). As of 2019, TOTO India has 90 authorised channel partners in India. In 2019, it opened its first showroom with state-of-the-art technology in Delhi. Toto India had around 1200 employees (including its employees at the factory in Gujarat) out of which approximately 80 employees are working in sales department.................

TOTO India’s Distribution System

TOTO India follows three channels of distribution (Exhibit VI). In the first mode, selling directly to the customers wherein they take the order and deliver the products to the customer through the showrooms. In the second mode, selling directly to the multiband retailers from the production unit. They also have traditional channel of distribution which is the third model of selling. In this channel, their production unit sells to the authorised dealer/wholesaler and the wholesaler sells their products to retailers and the end consumer can get the products from the retailer. The salesforce facilitates all the modes of distribution that TOTO India has. .......................

Exhibits

Exhibit I: TOTO’s Efforts towards its Corporate Philosophy

Exhibit II: TOTO India Network

Exhibit III: TOTO India’s Products

Exhibit IV: TOTO and Its Direct Competitors’ Production Capacity and Revenue

Exhibit V: TOTO India, Its Competitors and their Offerings

Exhibit VI: TOTO India’s Distribution System

Exhibit VII: TOTO India’s Sales Force Reporting Structure

Exhibit VIII: TOTO’s Clientele

Exhibit IX: Shivam Dealership with TOTO India’s Competitors

Exhibit X: Vitra’s Vanity with Basin

Exhibit XI: Toto’s Proposal to Client

Teaching Note Preview

An Experience of a Salesman

Synopsis

This primary research based case study highlights a typical sales process in which a major problem occurs at the last phase in the process of sales. J.Srinivas Rao (Srinivas) was working in TOTO India Pvt. Ltd. (TOTO India), as a Senior Territory Manager in Sales, Hyderabad. The company is known for its luxurious wash let provider in India. Like any other sales person, Srinivas’ responsibility is generating sales right from prospecting to closing. He also has to maintain good relationship with clients including dealers who are their authorised channel members. Mr.Srinivas suddenly come across a newspaper advertisement about a very luxurious apartment project announced by Vasantha Green City project (Vasantha). He started contacting Vasantha on a regular basis to give a sales presentation to the decision-maker of the project. Like him, there are other competitors who are looking for the same project. After long persuasion for several months he finally got the appointment to meet the company’s MD, and the decision maker of Vasantha project. He properly utilized the opportunity and convinced the MD to see TOTO India’ products in display mock-ups which are usually done by the dealer on behalf of the sales person. Srinivas got a positive response from the MD after the display mock-up. However, after a few months when the project required wash ware fittings to be installed and it was time to close the sales deal, the Project Engineer and MD started avoiding Srinivas. Srinivas is clueless on what had happened and why was he being rejected by the client. However, Srinivas did not want to lose the profitable client.

He was seriously looking for the answers as to what went wrong? What was to be done next? How was he supposed to handle the higher-ups in his own company? What could be the best possible way to understand the problem and resolve it? There were several doubts in his mind which had to be resolved for Srinivas to succeed in sales from this project.

Prerequisite Conceptual Understanding/Before the Classroom Exercise/ Reading

The students/participants should be asked to read the sales process from any standard Sales text book chapters. They also need to have conceptual understanding of marketing and sales as a functions and need to have thorough knowledge on how selling works in B2B and B2C scenarios.

Case Positioning and Setting

This Case Study is designed for post-graduate and undergraduate students of Sales and Marketing. This case study can also be used to train the new sales personnel on selling process.

Pedagogical Objectives

The case study exposes the participants to intricacies of selling and also the process involved in selling.

Participants will be able to think and suggest the ways in which the problem faced by Srinivas can be solved. They will also be able to understand the importance of positive attitude to deal with rejections in sales

Participants will be able to analyze the situation and have an idea of the sanitary ware industry and how it functions, the role of channel members in sanitary ware selling, the time required to close a sale in this industry, etc.

Assignment Questions

I. What does Srinivas do to understand the problem in the client company?

II. What are the different ways that Srinivas can ................

III.........................

IV.........................

V.........................

Preamble to the Case Analysis

This case study is meant to introduce and sensitize the participants/students to the intricacies involved in closing a sale. It also highlights the need for being a smart sales person and putting extra efforts beyond the scope of the work. It also highlights the importance and strategies to manage dealers and maintaining good relationship with associated companies. As this case study is simple and easy to help understand the concepts in selling, it will attract more participants’ opinion and suggestions and hence the classroom management has to be planned appropriately.

Exhibits

Exhibit (TN)-I: Vitra Proposal

Exhibit (TN)-II: TOTO India’s Revised Proposal to Vasantha Project

Exhibit (TN)-III: Sales Process followed by Toto

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Abstract

J.Srinivas Rao (Srinivas) is an experienced sales person and working as a Senior Territory Manager at Toto India Pvt. Ltd. (Toto India). Toto India is the Indian arm of Toto Ltd., a sanitary ware company from Japan. Toto’s products in India and globally are positioned as luxurious bathroom fittings and wash ware. Srinivas is working in Hyderabad territory and taking care of Toto India’s sales in the region. Growth in real estate activity in Hyderabad, Srinivas is trying to take the advantage of placing Toto products in luxurious apartment projects. He is eying a very big project named as Vasantha Green City project and after many calls and perseverance Srinivas is able to contact, Vasantha Venkata Prasad (Prasad) the Managing Director of the company. After establishing a connect with the Managing Director and the firm, Srinivas made a presentation which turned out positive and agreed to see the display mock-up of Toto’s products. After the display mock-up (Presentation and Demonstration), the MD agreed to use Toto’s products in the luxurious Vasantha Green City project. Srinivas was very happy and waiting to receive the business order in the first phase of the project but, much to his surprise, everyone from the Vasantha Green City project started neglecting his calls. He is not even able to contact them personally at their office. Srinivas is seriously looking for the answers for questions like what went wrong. What Srinivas supposed to do? How to handle the higher-ups in his own company? What is the best possible way to understand the problem and resolve it? There are many doubts in his mind on how to resolve and successfully close the sales deal of this project.

Pedagogical Objectives

  • The case study exposes the participants to intricacies of selling and the process involved in selling
  • Participants will be able to think and suggest the ways in which the problem faced by Srinivas can be solved. They will also be able to understand the importance of positive attitude to deal with rejections in sales
  • Participants will be able to analyse the situation to develop an idea of the sanitary ware industry, functioning, the role of channel members in sanitary ware selling and the time required to close a sale in this industry, etc.

Case Positioning and Setting

  • This Case Study is designed for post-graduate and undergraduate students of Sales and Marketing course. It can be used to train the new sales personnel on selling process.


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- Teaching Note (**ONLY for Academicians)

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