- Tuncan fertiliser company manufactures cattle and boiler feed products with production based in Kanpur, UP and marketing office in Lucknow. - The company faced problems with foreign competition and decreasing government subsidies. It hired IIM Lucknow professors to analyze its marketing practices. - The professors found issues with the company's discriminatory payment systems between salespeople, arbitrary sales quota setting methods, and sales forecasting approaches. They recommended eliminating discrimination, using activity quotas, point of sale quotas, and sales forecasting based on territory potential to address these issues.

1. By
V.R Asritha Reddy
Nithin
Avishek Nandi
Ayush
Satyam Singh
Naren Raja

2. 
 One of the leading fertiliser manufactures of India.
 Production plant is based in Kanpur, U.P.
 Marketing office is based in Lucknow.
 They covered most of the Haryana, U.P, and Punjab
region.
 During the period of control regime they were
permitted to market only in these areas, but post
liberalization, the company marketed all over the
country
A brief introduction about the company

3.  Sales quota is the target or goal assigned to sales unit
(such as sales person, dealer, distributor, territory) to
be achieved in a specific period of time.
The objective of fixing sales quotas are:
 Motivating the sales force
 To bring in the right focus (products to be given
importance)
 These form an important basis for feedback,
evaluation of and reward for the performance of a
sales unit
Sales Quotas

4. 
 Sales potential/forecast
 Average of past sale
 Executive judgement
 Judgement of salesman
Methods for fixing sales
quota

5. 
 Based on the Tuncan fertiliser company which
manufactured cattle and boiler feed products.
 Vice president(sales) Mr.Jacob Martin & Customer
Intelligence head Mr.Devanandan Sukhla had different
opinions about the quota system of the company
 The company was facing problems with the invasion of
foreign players and government subsidies becoming low.
 The company was traditional and stubborn to changes
 To analyse their marketing practices, the company hired
some professors of IIM Lucknow
 The group of professors found that the statistics showed
differences in the payment system of the employees.
Executive Summary

6. Three types of sales people in the company
1. The salespeople in the distinct territories and in non
irrigated markets operate on a straight commission
based model
2. The sales person serving in the irrigated area with a
salary plus commission model
3. The new sales people with less than 3 years of work
experience were getting a salary of Rs 12,000 and
received annual increments

7. 
 Discrimination among the employees of different
hierarchical levels.
 The sales quota structure
 Arbitrary method of sales quota setting
 Sales forecasting method
Issues

8. 
 Activity quotas should be used
 Discrimination among employees needs to be
eliminated
 Point of scale quota
 Sales forecasting needs to be done on the potential of
the territory
 Company should focus on the long term goals
Recommendations