This is some of the work I am currently doing here at Florida Gulf Coast University!  In this article I composed, I had to assess the marketing prowess of the company’s CEO and suggest, if needed, alternate courses of action for his company.

Hanover-Bates Chemical Company

This case presents us with seven different districts’ data of the Hanover-Bates Chemical Corporation and under review for this case is District 3, the North East District and its newly appointed district sales manager, James Sprague.  For 2009, only three of the seven districts managed to reach their sales quotas.  District 2 fell short of their sales quota by a little more than 1%.  District 3 fell short of the quota by 7% which is the largest deficit.  District 4 and 5 had a shortage of 2.6% and 3% respectively.  With the North Central District exceeding their sales quota by 14%, this really puts into perspective one of the areas of improvement Mr. Sprague needs to focus on in order better his district.  Although this difference of 21% may seem daunting, a quota is still just a projection of what is expected and not necessarily reflective of the district’s total performance.  While the North East district may not have met their sales quota, Exhibit 6 shows that they have the larger number of active accounts versus the North Central.  This exhibit also shows that the Northeast district has the better account coverage with more total calls than the North Central.  Group A has 58% of their potential accounts active; with group B and C having 55% and 49% active potential accounts.  Group B is the source of this district’s profit performance due in part to their substantially larger account coverage.  Having a thousand more total calls than group C, which has even a hundred more active accounts, is a key factor in making this group have the highest sales and gross profit by account.  Exhibit 5 shows that although the North East district is outperforming the North Central District in sales by $451,500, the gross profit by account shows that the North Central District is $106,500 ahead.  These comparisons of the two districts show that the North East’s performance is below par and not meeting their quotas by a substantial amount.    These are critical issues that Mr. James Sprague needs to address immediately to help remedy the district.

Several explanations for the North East district’s performance lie in Appendix 4.  This data shows us that the average sales per call, the average gross profit per sales call and the average contribution margin per sales call are all significantly lower than the North Central District.  By simply not selling as well as other districts, the North East District is struggling to perform well.  Another explanation for this district’s struggles lie in having the second highest selling expenses in Hanover-Bates.  With such a high costs to sales ratio, Mr. Sprague can focus on reducing expenses in order to quickly seen performance turn around for his district.

Hanover-Bates Chemical Corporation and under review for this case is District 3, the North East District and its newly appointed district sales manager, James Sprague.  For 2009, only three of the seven districts managed to reach their sales quotas.  District 2 fell short of their sales quota by a little more than 1%.  District 3 fell short of the quota by 7% which is the largest deficit.  District 4 and 5 had a shortage of 2.6% and 3% respectively.  With the North Central District exceeding their sales quota by 14%, this really puts into perspective one of the areas of improvement Mr. Sprague needs to focus on in order better his district.  Although this difference of 21% may seem daunting, a quota is still just a projection of what is expected and not necessarily reflective of the district’s total performance.  While the North East district may not have met their sales quota, Exhibit 6 shows that they have the larger number of active accounts versus the North Central.  This exhibit also shows that the Northeast district has the better account coverage with more total calls than the North Central.  Group A has 58% of their potential accounts active; with group B and C having 55% and 49% active potential accounts.  Group B is the source of this district’s profit performance due in part to their substantially larger account coverage.  Having a thousand more total calls than group C, which has even a hundred more active accounts, is a key factor in making this group have the highest sales and gross profit by account.  Exhibit 5 shows that although the North East district is outperforming the North Central District in sales by $451,500, the gross profit by account shows that the North Central District is $106,500 ahead.  These comparisons of the two districts show that the North East’s performance is below par and not meeting their quotas by a substantial amount.    These are critical issues that Mr. James Sprague needs to address immediately to help remedy the district.

This data shows us that the average sales per call, the average gross profit per sales call and the average contribution margin per sales call are all significantly lower than the North Central District.  By simply not selling as well as other districts, the North East District is struggling to perform well.  Another explanation for this district’s struggles lie in having the second highest selling expenses in Hanover-Bates.  With such a high costs to sales ratio, Mr. Sprague can focus on reducing expenses in order to quickly seen performance turn around for his district.