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Sales Strategy for Footwear India

Footwear India Ltd. saw its market share decrease from 60% to 40%, so it appointed a new national sales manager to review its distribution system and make recommendations. The company uses both corporate and contractual distribution models. The manager suggests exclusively using franchising, as it provides capital and royalty payments while reducing staffing costs, which would help boost sales and reduce losses to move the company towards success.

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Sharjil ZaiDi
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75 views1 page

Sales Strategy for Footwear India

Footwear India Ltd. saw its market share decrease from 60% to 40%, so it appointed a new national sales manager to review its distribution system and make recommendations. The company uses both corporate and contractual distribution models. The manager suggests exclusively using franchising, as it provides capital and royalty payments while reducing staffing costs, which would help boost sales and reduce losses to move the company towards success.

Uploaded by

Sharjil ZaiDi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Footwear India Ltd.

Reviewing Sales and Distribution Management for Performance Improvement This case study is about Footwear Company of India. In this case study the sales/market share of the company is gradually decreasing (from 60% to 40%). In order to boost up the company sales, the CEO appoints a new national sales manager and guides him to review the current distribution system and make the suggestions. The companys objective is to make its products available to consumers in every town across India. Company is using Corporate VMS and Contractual VMS in its distribution structure.

Suggestions
I would suggest the use of only Franchising (Contractual VMS) because it gives company the capital amount. Moreover Franchisees pay 5% of sales as royalty to the company for using company brand and business format. Due to Franchising, company also saves expenditures of the salaries of the permanent sales staff in the retail stores.

By implementing above suggestions, Footwear India Ltd. will certainly be able to boost up its sales, reduce losses and straightly tracking towards the success.

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