Building a Salesforce

David Cynoske is an entrepreneur and has invented a portable camp stove that generates electricity by using solar panels. The name of his camp stove is FIRED UP and sells on Amazon for $39. What is so cool about the product is it can generate usable electricity for charging LED lights, mobile phones, and other personal devices by harnessing energy from the sun. FIRED UP creates a smokeless campfire that can cook meals and boil water in minutes. Setup is easy, fuel is free, and flames are hyper efficient with performance on par with white gas stoves.

Today sales on Amazon are about 80 units a week, and his product reviews have been great. Amazon does not take ownership of the product but charges 10% for every product sold. At this point, he has no other customers. The cost to manufacture is $8.00. David has no debt on the business; his Dad is very supportive in helping him make his dream a reality. Using his profits, David asked his teammates from his MKT328 Sales Management class to help him develop FIRED UP sales strategy. Once the sales strategy is understood the question is how to structure the sales force? David is an introvert, more inventor, and developer of the product; he knows he needs to grow his business outside of just Amazon. David has tried to get meetings with large retailers, one retailer told him they would not be interested in a one SKU product, David did mention to the buyer that Amazon sold 80 units a week. The buyer asked him to send some information, that was six months ago, he did leave the buyer a few messages but has never heard back from her. He is counting on MKT328 to put the plan together and execute the plan.

The team must decide whom they want to go after outside of Amazon?

1. This requires MKT328 to Account Target, which accounts are most attractive? 10 Pts
2. Reread Chapter 3 pgs. 61- 67. In question 1 you answered the first element. Tell me what the Sales Channel strategy you would use? 70 Pts

Hint: This is a sales strategy, not a marketing strategy.

3. Now that you have decided on a sales channel what would these expenses be? Are you missing any other expenses? What are these additional costs? What is the breakeven point? 20 pts

2016 P&L Statement

SGA: David pays an outside marketing company $25,000 to manage his Website and Social Media. They also help him develop literature for sales presentations. There is two part-time employees whom each get paid $20,000 to handle calls, assemble and ship product, they stay very busy. David took $25,000 in salary.

A good write up would be to tell me the downstream customers you want to go after and work your way backward.

Hints to a good analysis:

• To start, reread textbook pages 61-67, question 2 is worth 70 points, walk me through the four elements.
• Who will you go after? and Why?
• How would you get into these accounts? What is the most cost effective? and Why?
• What do you think the cost would be? You have decided on a sales strategy and there are costs involved in that strategy. There are other costs, work your way upstream from the end user to the actual cost to make the product. Currently, Amazon takes 10% and the cost to make is $8. Trust me, there are now more expenses.