Madison Fiber Corporation Rs

BY:- AJAY KUMAR PURI AMIT SHARMA MOHAN SHARMA RAVINDER SINGH

1SDM/CS1/G2/MFC/2011

Company was founded in 1955,to serve a rapidly changing carpet industry.

Subsequently made major breakthroughs in synthetic fiber technology and production.

Ranked 5th among its competitors in manufacturing capacity with a market share of around 11%.

Major business comes from Carpet fiber market. In 1998, Madison diversified into industrial fabrics.




Madison Sales ($000s) Actual Forecast

Products 1998 1999 2000 2001 Growth/2000 Growth/2001Carpet Fiber 106.1 109.3 115.8 122.8 6% 12%

Yarn 51 54.9 67.7 83 23% 51%Fabric 3.1 15.3 16.9 394% 445%Total 157.1 167.2 198.8 222.6 19% 33%

Carpet Marketa) To become the primary supplier with an increase

in its share of business with high volume accounts.

b) Reduce dependence on small accounts Yarn Marketa) To find new applications that would appeal to manufacturers with high square foot

requirement. Industrial Fabric marketa) To provide improved material and new applications in volume.

SDM/G2/MFC/2011 5

1 sales manager 12 sales rep each between the age of 33-52 years 12 sales rep were given 12 territories Territories were defined with the call’s per day. Each Existing customer is analyzed with how many call’s

per year required to cover the desired amount of service and selling time

Three control form’s for monitoring the field activities of sales force.

These are weekly itinerary, trip report, Complaint report.


Maintain and Service the existing customer. Obtain orders for all product lines. Customer’s inventory level for Madison products. To Monitor and correct problems related to quality. To Ensure timely delivery To increase the proportion of business To Influence Decision maker’s To explore new market’s for new products and existing

products Regular follow up of the lead’s given by various sources.


Appropriate amount of compensation, Being a small company, Madison, should pay more than industry average compensation.

Method of compensation was not defined properly. President decided that a proper compensation method has

to be decided jointly by Sales manager, Marketing VP & the company Controller.

President put two constraints on their decisions:

1. No Sales rep doing a good job should suffer financially from change in

the pay plan. 2. No Sales rep could earn more than 50% of his salary

thorough bonus or incentives in line with the managerial bonus plan.


Straight SalaryStraight CommissionSalary plus bonus based on product-

line salesSalary plus quarterly bonus based on

‘capitalized sales expense’Current Plan


Employee strength (400+) in operation department is much higher.

Market penetration for Yarn product is very less.

Late entry in Industrial fabric marketSingle sales engineer for multiproductNo formal training program for technical

as well as commercial knowledge


sales incentives are a great motivator ,salespeople should be motivated .

Giving sales incentives in term’s of Cash/Merchandise/Experience/Recognition.

Sales Incentive’s should be simple. Incentive can be given monthly and yearly achievements of

target’s. Monthly incentives -90% achievement-$500 monthly 100% achievement-$750

monthly

Yearly bonus - 90% achievement-$5000 100% achievement-$7500 New Product’s sales %of total sales = 50%= $2000 25%=$1000


SDM/G2/MFC/2011 12

Documents

Madison Fiber Corporation Rs