Read the case & answer the questions based on the case:

Krishna Kumar, the marketing manager of MM Marketing Company was thinking how to go about designing sales territories, assigning salespeople to the territories and setting sales quotas, particularly as the product was new. The new product, called Swishflow fan was a unique kind of a table fan with attractive air$-$conditioner like looks. Considering the initial production capacity of $1,00,000$ numbers in the first year, Krishna Kumar decided to market the product in and around Mumbai, where the marketing and sales office was located. The target consumers were household as well as commercial organizations, who could use this product as table$-$fan and wall$-$mounted fan.

Krishna Kumar thought that the territory design should include geographical areas with high market potential for achieving the sales budget of $1,00,000$ numbers in the first year and a growth of $25\%$ per year for subsequent four years. He calculated a sales force size of seven numbers, and decided to launch the product initially in major metros and cities in Maharashtra and Gujarat. Krishna Kumar was of the view that sales quotas should consider sales volume, selling expense, and also number of sales calls per day, in order to have a proper control on salespeople. He wondered how to design sales territories, what criteria should he consider while assigning salespersons to territories, and how to design the sales quotas considering the factors mentioned above.

Questions:

a$)$ If you were Krishna Kumar, how would you design the sales territory?