case study related to sales contest and sales personnel motivation

1. UNIVERSALAUTOMOTIVE INC.
manufacturer of automotive parts and accessories
-Motivating sales personnel with a sales contest
Presented by:
NAYANA P V
PG 20

2. INTRODUCTION
 Universal Auto Parts has been providing new and used auto and truck
parts in the area since 1971.
 Their mission is to serve you with the extensive knowledge and
expertise we have gained in our industry, while continuing to offer you
the finest in customer service
At universal Auto Parts we carry auto parts for late foreign cars and
trucks along with domestic SUVs.
 Extensive inventory includes Engine, Transmission, Wheel, Mirror
Doors, Fuel pump and many other parts.

3. THE CASE
The general manager Mr. Joseph Mahoney planning to introduce a sales
contest in universal automotive inc
The main aim is to improve sales and motivate sales force
Their current sales performance is below the quota.
The compensation plan of sales persons is salary plus bonus.
They will provide a chance to spouses of sales persons to participate and
involved in the sales contest.

4. BENEFITS
• Each week $200 cash bonus would go to the sales personnel exceeding
their quota
• Within the period of 13 week they would get a $300 bonus
• The person who achieved highest percentage would receive an additional
bonus
• Spouses would get $100 by achieving the quota
• They would receive five chance to win a merchandised prize.

5. CRITICISMS
• It will lead to disappointment and frustration of sales persons
• Disruption of normal activities
• Over aggressiveness of sales personnel
• It will negatively affect the overall sales activity

6. Q: should universal automotive inc have held a
sales contest to motivate its sales personnel to better sales
performance?
• YES
• Universal automotive should conduct this sales contest because their current sales
volume is very low and it is below the quota.
• Through sales contest they can increase sales volume and employee performance
also
• It will lead to firms overall productivity
•

7. SALES CONTESTS AND OBJECTIVES
A special campaign offering incentives in the form of prizes or awards beyond these
provided by the compensation plan
OBJECTIVES
 To obtain new customer
 To secure large orders as per sales call
 To sell more profitable products
 To improve the performance of sales personnel
 To motivate sales force