Part 2: Case Floor-Shine Cleaning Products
Case Focus: This case illustrates the use of a sales contest in an attempt to boost sales. Several potential problems resulting from a poorly designed sales contest are demonstrated.
Summary
Vince Coleman, national sales manager for Floor-Shine Cleaning Products, recently asked regional sales manager Bob Herman to coordinate a special fourth quarter sales push in order to achieve projected year-end sales goals. Herman designed a contest to motivate the 20 salespeople in each of his five districts. Salespeople within each district would compete against each other for a trip to a fantasy baseball camp. As a result of the contest, several things occurred to some extent or another: small customers were ignored; dealer loading was encouraged via kickbacks and incentives; one district had a salesperson who landed an early insurmountable lead; unnecessary credit risks were taken, and; saleswomen were not motivated.
Discussion Questions
1. How would you evaluate this contest? What are its pros and cons?
2. How could this contest be designed to have a better chance of being successful?