Fastest Motors is an emerging automobile manufacturer in the two-wheeler category. They already have gained a substantial market share in international market. Now they plan to launch their range of bikes in India. They have aggressive plans to set up a dealer network in both metros and non-metros. They are also eyeing the rural market in India. They plan to launch bikes for all the income groups of the society. They plan to launch bikes at the starting price of Rs. 40000 in the basic category, bikes priced between Rs 60000- 80000 for the executive segment and premium bikes priced from Rs 1 lac – Rs 2 lacs for the upper segment.

They have decided to select the channel partners on various thoughtful parameters like their educational background, financial position, image in the market, and the relevant business experience. They generally wanted people from the automobile background. As an exception for Londonpur, they choose Mr. Ram Clinton who is a distributor for a leading FMCG brand. Mr. Ram matched all the requirements of the company except the automobile experience. He accepted this challenge and decided to take the help of a consultant who could establish the sales department for his dealership.

Now imagine that you are a leading sales and distribution consultant and Mr. Ram Clinton has approached you to establish the sales department and establish a cost effective distribution channel for his new dealership.

If the firm sales forecast is 125 million, Annual Sales forecast productivity is 5 million, attrition rate is 20%, and then how many salesperson should be ideally recruited. – 5 marks