New Job at Big Ten Beverage Distributors

You have just been hired by a company, Big Ten Beverage Distributors (BTBD) and it is gaining momentum in the alcoholic beverage market. Your job is to organize a new sales organization.Previously, BTBD was using only selling agents which they paid a large percentage of their profits. Now that they have gained momentum and are growing, it is time to establish a sales organization. You have been authorized to hire and develop an organization for up to 50 salespeople and 3 sales managers. Transitioning entirely away from selling agents has to be fully operational in the next 24 months.

BTBD sells three types of alcoholic beverages, beer, wines, and distilled spirits and they are growing because of their unique distribution system.The distribution system guarantees two day delivery on all orders and is willing to take back unsold product including wine within the specifications of the contract. They are currently dominating Illinois, Indiana, Wisconsin, Michigan, Missouri, Iowa, Minnesota, and Ohio markets. The majority of their business comes from the largest cities in these markets. Selling BTBD requires relationships and the integration of an automated replenishment system that allows customers to communicate/order directly from BTBD.Influencing customers to integrate this system is a major portion of the sale.

The cities they are excelling in.

• Minneapolis
• Chicago
• Indianapolis
• Fort Wayne
• Kansas City
• St. Louis
• St. Louis, KS
• Detroit
• Grand Rapids
• Des Moines
• Columbus
• Cincinnati
• Cleveland
• Dayton
• Green Bay
• Madison
• Milwaukee

The Assignment:

• Determine the best type of organization structure that could be used to organize this particular sales force? Why?
• Develop an organization chart of the selling organization.
• Using what you know from industry and your experiences, estimate the costs of developing this sales force. Develop an itemized costing of the potential costs associated with developing a new sales force.