Valley Winery is the largest wine producer in the US, selling over 40% of domestic wine and over $600 million in sales in 2004. It has a wide range of consistent quality, low-priced wines and wine coolers. The San Francisco division has extremely high sales representative turnover, replacing its entire 50-person sales staff annually. This high turnover is costly and reduces profits and sales. The document examines causes like long work hours, unrealistic quotas, and lack of coaching that need to be addressed to improve recruitment, retention, and the division's performance.

1. The Valley Winery

2. The Valley Winery
The Company
Valley Winery is the largest domestic wine producer
in US, selling more than 40% of all wine produced in
the USA each year.
In 2004 the company’s sales exceeded the $600
millions.

3. The Valley Winery
Competitors perception
Valley Winery is the best managed and
most innovative wine producer in the
US

4. The Valley Winery
Growth factors
Product related:
Consistent quality
Wide range of products
Price related:
Relatively low-priced
Promotion related:
The most aggressive and innovative push sales strategy
Place related:
Strong distribution channels

5. The Valley Winery
The Customers
Liquor and Beer distributors (50% owned)
Liquor and Beer wholesalers

6. The Valley Winery
Products
The Valley Winery is producing:
Consistent-quality, low-priced wines
Wine coolers

7. The Valley Winery
Products

8. The Valley Winery
San Francisco division - Sales groups

9. The Valley Winery
San Francisco division - Sales
organization

10. The Valley Winery
San Francisco division - Recruiting
sources

11. The Valley Winery
San Francisco division - The Problem
Extremely high turnovers on the past several
years
Contradictory factors:
Doubling turnover every year
 7 months average sales reps working experience
 Replacement of the total sales staff every year (50 reps)

12. The Valley Winery
San Francisco division - The Conclusions
Quantity and Quality goal:
Reduction of sales cost Profitability would improve
Decreasing turnover Sales would improve

13. The Valley Winery
San Francisco division - The Observation

14. The Valley Winery
San Francisco division - Recruiting & hiring
process
Recruiting & training
cost per year per rep
$25,000
X
50 reps
$ 1,250,000
Excluding
Cost of missing calls
Cost for new
relationship

15. The Valley Winery
San Francisco division - Nature of reps
position
Reps
operations

16. The Valley Winery
San Francisco division - Quota & Sales
fingures

17. The Valley Winery
San Francisco division - Causes of the
problem
Long distance travel
Aggressive sales promotion
Stretching sales estimation
Pumping up the numbers
Night telephone calls
Lack of coaching
Frequent organization changes

18. The Valley Winery
San Francisco division - Causes of the problem
and suggestion for improvement

19. The Valley Winery
San Francisco division - Causes of the
San Francisco division - Causes of the problem
problem
and suggestion for improvement

20. The Valley Winery
San Francisco division - Causes of the
San Francisco division - Causes of the problem
problem
and suggestion for improvement

21. The Valley Winery
San Francisco division - Causes of the
problem

22. The Valley Winery
Thanks!