F IRP Chapter 1 2 3 4 and 5 Redacted

Hovan – Increasing Unit Sales 1
Abstract
The purpose of this independent research project was to investigate methods to increase
unit sales in the Midwest zone of the Sharp Select division Hessler Worldwide, LLC. A review
of literature pertaining to this topic uncovered three possible approaches: a comprehensive
training program for new hires, changes to the demonstrator pay plan, and scheduling
promotions in previously unopened points of sale. Two of the three operational objectives were
tested as alternative hypotheses (changes to the demonstrator pay plan were not tested). A Paired
t-Test was used to determine if the remaining two operational objectives had any statistically
significant impact on unit sales. Analysis of the comparative data indicated that comprehensive
training had a clear impact on unit sales. However, the data indicates the need for further
research into the impact of moving resources into previously unopened points of sale. The null
hypothesis (taking no action) should be rejected.

Executive Summary
The purpose of this independent research project was to investigate methods to increase
unit sales in the Midwest zone of the Sharp Select division Hessler Worldwide, LLC. Potential
operational methods were identified as practices toward that end. The objectives focused on
training, compensation, and points of sale.
Hessler Worldwide, LLC is a privately held corporation and its Sharp Select division has
grown exponentially since its creation in 2009 and has employees in 40 states. Sharp Select is a
brand of cutlery that hinges its reputation on the redundant guarantee that they will “never dull
and never need sharpening.” Sharp Select reaches consumers directly through live presentations
in retail outlets. Hessler refers to the method as “retail-tainment.” The presentations are designed
to be informative, demonstrative, and entertaining. The demonstrations take place at a tall booth
referred to as a rig, and consumers are invited to receive a free kitchen paring knife made of
surgical stainless steel for attending one of the demonstrations. The underlying methodology is to

corral as many customers to the presentation as possible to foster excitement and urge customers
to purchase the cutlery.
Literature pertaining to the independent research project was reviewed and revealed three
possible operational objectives. The first, comprehensive training for new-hires, indicated that a
better training program for new demonstrators would boost performance. The second, changes to
the compensation plan, could foster productivity and longevity. And thirdly, scheduling
promotions in previously unopened territories would uncover new demand. The literature
suggested that these steps could provide more opportunity for unit sales.
Unit sales for the 2nd quarter of 2011 were compared to the unit sales in the 2nd quarter of
2012 when the operational objectives were in place. Only two of the three objectives were acted
upon and the one dealing with demonstrator compensation was not implemented.
Two alternative hypotheses were presented as operational objectives and put in place
during the 2nd quarter of 2012. The objectives included a comprehensive training program and
scheduling promotions in new markets. The goal was to increase unit sales in the test markets by
15% when compared to 2011.
Unit sales data was collected from the 2nd quarter of 2011 which began on March 24,
2011, and ended on June 30, 2011, spanning seven weeks. Unit sales data was then collected
from the 2nd quarter of 2012 includes the seven weeks beginning on March 29, 2012, through
July 5, 2012. A Paired t-Test was used to test the statistical significance of the results and
whether or not the results were likely to have occurred by chance.

After hiring two new demonstrators and putting them through an intensive four week
training program, the new demonstrators who received additional training out-performed their
seasoned counterparts with a +53.6% increase in sales versus a decline of -1.4% for the latter.
Promotions were successfully scheduled in previously unopened markets and were staffed by
both new and veteran demonstrators. This resulted in a 29.2% increase over-all. The Paired t-test
in both cases revealed that the absolute value of the t Stat is greater than the t Critical one-tail
and because the probability that the null hypotheses is true and smaller than the Alpha, the null
hypotheses were rejected.
The independent research project concluded that hiring two new demonstrators and
putting them through an intensive four week training program before working on their own,
enabled them to out-perform their seasoned counterparts at statistically significant levels. And
though the effort to hold promotions in these previously unopened points of sale also proved to
be statistically significant, veteran demonstrator sales were stagnant when broken out of the total
unit sales number. The research supports the operational objects that were implemented and the
status quo is rejected.
It is recommended that additional research is needed using the guidelines of the second
operational objective and removing the variable of newly hired demonstrators. By using only
veteran demonstrators in previously unopened points of sales, it may be possible to determine the
statistical significance (if any) between existing and unopened markets. It is also recommended
that a study of newly hired, comprehensively-trained demonstrators working in existing points of
sales be performed to determine if the increased unit sales could be replicated in existing
markets.

Table of Contents
Abstract………………………………………………………………………………………….3
Executive Summary………………………………………………………………………………4
Chapter I – Description of the Problem
Introduction………………………………………………………………..………………….9
Purpose of the Project…………………………………….………………..………………….9
Setting and History of the Problem…………………………………………..………………..9
Background and Evidence of the Problem……………………………………..……………..11
Importance of the Project………………………………………………………..…………….13
Definition of Terms………………………………………………………………..…………..14
Summary……………………………………………………………………………..………..15
Chapter II – Literature Review
Introduction…………………………………………………………………………..……….16
Strategic Staffing……………………………………………………………………………...16
Sales Compensation…………………………………………………....……………………...21
Market Saturation……………………………………………………………………………..26
Summary……………………………………………………………………………………....29
Chapter III – Experimental Design
Introduction…………………………………………………………………………………...30
Objectives……………………………………………………………………………………..30
Description of Intervention………………………….………………………………………..31

Data Collection Plan………………………………… ………………………………………35
Summary…………………………………………… ……………………………………...35
Chapter IV – Experimental Results
Introduction…………………………………………………………………………….…….36
Summary of Results…………………………………………………………………….……36
Analysis of Results……………………………………………………………………….…..38
Summary………………………………………………………………………………….…..42
Chapter V – Conclusions and Recommendations
Introduction………………………………………………………………………………….44
Conclusions…………………………………………………………………………………..44
Recommendations……………………………………………………………………………45
Summary………………………………………………………………………………………48
References………………………………………………………………………………………49

Chapter 1
Introduction
This chapter will describe the problem of increasing unit sales in the Mid-Atlantic Zone
in the Sharp Select division of Hessler Worldwide, LLC. In this chapter, the purpose of the
project will be covered including the circumstances in which the problem manifested. Evidence
of the problem and its background will be provided to emphasize the importance of the project.
The chapter will also include definitions of terms used and conclude with a summary.
Purpose of the Project
The purpose of the project is to discover methods and action plans that will increase unit
sales of the Sharp Select line of kitchen cutlery. This project seeks to identify the causes of lower
and unrealized unit sales and develop plans to remedy lost opportunities. The division of Sharp
Select is national, but the project will focus on the problem in the Mid-Atlantic Zone which
encompasses Ohio, Pennsylvania, West Virginia, and upstate New York.
Setting and History of the Problem
Hessler Worldwide was incorporated in 2009 as it launched it Sharp Select division of
cutlery. The products are sold at live demonstrations lasting anywhere from 10 to 20 minutes in
established retail settings. The demonstrator’s are employees of Hessler worldwide and are paid
on straight commission. The commission per unit increases as the salesperson reaches bonus
levels on a per week basis. The company quickly established relationships and formal
agreements with national retailers like SAM’s Club, BJ’s Wholesale Club, Kmart, and The Giant
Eagle grocery stores. The company has become the exclusive provider of live-presentation

cutlery in all but the SAM’s Club which also allows a direct competitor to sell in the clubs at
alternating times.
Hessler Worldwide, LLC is a privately held corporation and its Sharp Select division has
grown exponentially since its creation in 2009 and has employees in 40 states. There are
approximately 80 employees in the United States and the Mid-Atlantic Zone has one manager
and fluctuates between 8 to 12 salespersons. The Mid-Atlantic zone encompasses Ohio,
Pennsylvania, West Virginia, and upstate New York. The remainder of the project will focus
primarily on the Mid-Atlantic zone.
Sharp Select is a brand of cutlery that hinges its reputation on the redundant guarantee
that they will “never dull and never need sharpening.” If the knives fail to meet the satisfaction
of the user they can be returned to the point of sale (POS) within the first 30 days of ownership.
Beyond that, if a knife does become dull, the owner may ship the old knife to a post office box in
Missouri along with a check for $7.95 to cover postage and handling and a new knife will be sent
to the consumer.
Sharp Select reaches consumers directly through live presentations in retail outlets.
Hessler refers to the method as “retail-tainment.” The presentations are designed to be
informative, demonstrative, and entertaining. Consumers are invited to receive a free kitchen
paring knife made of surgical stainless steel for attending one of the demonstrations. Customers
are assured that no purchase is necessary to receive the free knife. The demonstrations take place
at a tall booth referred to as a rig, which requires the salesperson to stand on a stool and enables
most customers to see the knives being used in a combination of conventional and unorthodox
methods that convey utility and durability of the product. The presentations are also designed to

build value in the mind of the customer with a combination of demonstrated uses and price-point
comparisons to upscale knives sold elsewhere.
The underlying methodology is to corral as many customers to the presentation as
possible to foster excitement and the group-think mentality. The energy of the live demonstration
in combination with people seeing others buying will nudge those that are not quite convinced to
make the decision to purchase. With this approach, approximately 80% of the knife sets that
leave the rig will go through the register while the remaining 20% are abandoned on shelves
throughout the store and are returned to the rig later.
Background and Evidence of the Problem
The fast growth of the Sharp Select, while successful by most measures, has brought into
sharp relief, the missed opportunities and lost unit sales. Hessler has gauged success by the most
basic approach. The company compares current sales volume to the unit sales of the year before.
With Sharp Select still in the infancy stages, growth is tremendous compared to the prior year,
however, the growth will peak, become stagnant, or begin to decline as the novelty of the
presentations wanes and the limited geographical sales divisions become saturated by doing
more than two promotions a year in a single retail outlet. Whereas the lifetime guarantee of the
Sharp Select knives can negate a typical product life-cycle, it can also reduce demand if a
specific area or store has promotions too frequently.
The company’s inability to recruit new sales people in under-represented territories while
retaining, maintaining and developing the current sales staff at appropriate levels in their existing
areas, has restricted its ability to expand beyond current retail points of sale that are being used
and potentially saturated by the promotion’s presence. SAM’s Club, BJ’s Wholesale Club, and

Giant Eagle grocery stores combined total 266 potential points of sale in the Mid-Atlantic region
that is covered with a sales staff that fluctuates between 8 to 12 salespeople with half of the staff
based in Northeast Ohio. This disproportionate concentration of staffing has lead to possible
saturation and diminished returns in points of sales near the sales staff and unrealized
opportunities where there is no sales representation. While all territories cannot be assumed to be
equal in opportunity, there are areas with modest populations of 150,000 or greater that have had
no representation, and can be considered missed opportunities. Plainly stated, everyone uses
knives.
Opportunities vs. Actual Promotions
0
100
200
300
400
500
600
2009 2010 2011 2012
Available Promos
Available Staffing
Fig. 1 Missed opportunities
Figure one shows the available promotions as compared to available sales people to work in the
retail outlets. When the Sharp Select division was launched in 2009 there were 28 points of sale
available and 84 promotional slots available. By 2011 available points of sale had grown to 266
for 532 promotional opportunities. The sales staff in the Mid-Atlantic zone has grown from four

in 2009 to ten by 2012. The current sales staff can cover a maximum of 260 promotions annually
and Hessler Worldwide has failed to recruit, train, and retain the sales staff to meet those needs.
Missed opportunities have grown from a manageable six in 2009 to 276 lost promotions in 2011.
A heavy work schedule combined with growing travel demands on the sales staff has lead to
high turn-over, unrecoverable sales opportunities, and growing retailer frustration with the
company’s ability to maximize sales for their stores.
Importance of the Project
Sales in the Sharp Select division of Hessler Worldwide have experienced tremendous
growth by virtue of being a new business, however this early success may be masking declining
sales in existing points of sales and do not demonstrate unrealized potential in untapped
locations. A decrease in sales at existing locations will also translate into lower earnings for a
sales staff that works within a 100% commission pay structure. This can hamper attempts to lure
new talent and efforts to foster longevity among the existing staff.
Management at Hessler Worldwide have created monetary incentives for existing
employees to recruit new salespeople while continuing to take advantage of the free help-wanted
advertising available on Craigslist.com. Both efforts seek to increase the size of the sales staff,
but do not address other problems that contribute to lower sales and longevity. Currently, a new
sales person is teamed-up with an existing salesperson to be shown how to do the job and learn
the standard sales presentation. The official presentation is generic in its approach to the group of
customers assembled for the demonstration. While the script is consistent, the level of training
each new hire receives is not. There is insufficient time to cover more advanced sales skills that
would help the new sales people to add slight customizations to appeal to the area they are

selling in. New hires are also started on the 100% commission plan creating a sink-or-swim
environment with minimal support for struggling sales people. These contributing factors
include, but are not limited to, cultivating the skills of existing staff, consistent and
comprehensive training of new hires, and a reevaluation of the current pay plan.
Definition of Terms
Point of Sale (POS)
Point of Sale is a term that is used to describe a retail outlet or a location within the retail
outlet where a featured product can be purchased. It can also be used to describe an unmanned
product display within a retail outlet designed to promote a product. For the purposes of this
paper, the former is the prevailing definition.
Retail-tainment
A term mainstreamed in a 1988 Time Magazine article referring to retailer’s efforts to
differentiate themselves by adding presentation and participation to the purchase process. The
practice is not novel or new. The Sharp Select method involves gathering a crowd to watch and
participate in the demonstration of its knives.
Rig
A term used to refer to the large booth/podium from which the salesman demonstrates the
product. It has a large top surface to work on and provides room for product storage underneath.
It tall enough to require the use of a stool by the salesperson and allows better visibility for the

customers. It has also been customized with an 8” hole on the center-right top surface to discard
waste during the knife demonstration.
Craigslist.com
Craigslist.com is a website that provides free classified-type listings. Employers can post
job openings for free in most places. Ads are listed by category and in the chronological order in
which they were placed. Because most of the ads are free there is a large number.
Summary
The goal of this project is to discover ways to increase unit sales for the Mid-Atlantic
zone of Sharp Select. It was stated that the inability to capitalize on all available points of sales
and saturation of existing points of sale will eventually lead to a leveling-off and eventual
decline in profitability. The possible causes of the problem are not enough salespeople in
undeveloped areas, inconsistent and limited training of new hires, and no plan in place to help
develop existing salespeople become more productive. This chapter encompasses the
environment and history in which the problem manifested and covered the evidence and
background of the problem.

Chapter II – Literature Review
Introduction
The purpose of this chapter is to investigate possible solutions for increasing unit sales in
the Mid-Atlantic Zone of the Sharp Select division of Hessler Worldwide, LLC. The research
done will be examined for possible solutions in three areas: staffing and training, sales
compensation, and market saturation. The research by scholars and professionals in the three
areas will be referenced for techniques and practices as they relate to increasing unit sales, and
their relevance to potential solutions.
Strategic Staffing
Any business involved with retail sales has had to deal with staffing concerns. Having a
great product sitting on the dock of retailer with no one to sell will cost a company in lost sales.
In Developing Staffing Solutions That Work: Implementing Pragmatic, Nontraditional
Approaches, Thomas Bechet, of the Walker Group, contends that many traditional approaches
are outdated and simply do not work:
Most organizations that attempt to implement a strategic staffing process follow a fairly
traditional approach. Usually these organizations include staff planning as a component
of their annual business planning process. Often, these organizations request that
managers define future staffing needs for each year of the planning period (usually in
terms of a headcount, not required capabilities) using a common template or “form.” (p.2)

The one-size-fits-all mindset is not exclusive to Sharp Select and recruiting and hiring
processes that work in other zones in the country may not be suited for the Mid-Atlantic zone.
The traits of a successful salesperson and the methods to acquire them on the West Coast may
not translate to success in the Midwest. Bechet (2005) makes the assumption that the company is
aware of a problem with the current method of staffing: “If your organization understands the
benefits of creating a staffing strategy, but has little or no success to date implementing a
traditional process, consider the alternatives” (p. 13).
There are many factors to consider when analyzing markets to make staffing decisions.
To get a complete picture of the market areas to consider are demographics and geographics. In
E-Marketing, Sixth Edition, Judy Strauss and Raymond Frost (2012) suggest that some
companies increase their focus by combining the two categories into one and refer to it as
geodemographics:
The important thing to remember is that the marketers create segments based on variables
that can be used to identify and reach the right people at the right time. (p. 176)
A thorough understanding of the zone that needs staffing will be useful in decisions about
what areas there should be representation in, and what type of salesperson would be the most
effective for staffing the retail outlets.
Before any change can be made to have a positive effect on staffing needs, Hessler
Worldwide must also consider what to do with an increase in staffing. In the research done by
Sanjog Misra, Edieal Pinker, and Robert Shumsky for the research paper Salesforce Design With
Experience-based Learning (2004) they discuss that reaching optimal staffing levels with a staff

that has a limited skill set is less productive than a smaller than optimal staff of trained and
experienced salespeople:
For many products, the sales force’s effectiveness is linked to their knowledge of the
product and the customers, and much of this knowledge can only be obtained through
experience. (p. 9)
The results indicate that higher prices work best with smaller, specialized and thus more
experienced sales forces while lower prices correspond to larger, less specialized, and
thus less experienced sales forces. (p. 9 & 10)
Rather than focusing on “warm bodies” to fill sales positions with little or no experience,
focus energy in developing a stable staff is the message. “The hierarchical system has a larger
sales force than the specialized system.” (p. 8) Greater emphasis on individual employees skills
with a well organized plan for growth should lead to greater over-all productivity.
The Hessler Worldwide approach to its staffing demands uses averages as the baseline
for many of its decisions including staffing. It is an uncomplicated and easy approach to decision
making, but does not allow for a specific zone’s culture and population to enter the equation. It is
a hierarchical and outdated approach to decision making. The Encyclopedia for Business, 2nd
Edition discusses the evolution of the contemporary business model. In its dissection of
management responsibilities it addresses staffing in this way:
First, managers have to determine exactly what their labor needs are and then go into the
labor force to try and recruit those skills and characteristics. Second, managers must train

workers. Third, they have to devise a method of compensating and evaluating
performance that complements objectives (www.referenceforbusiness.com).
Hessler Worldwide looks at a national account like Sam’s Club and uses the assumption
that the staffing needed to sell Sharp Select cutlery is the same at all the clubs. The problem is
that according to census numbers from 2009, Sam’s Clubs in St. Louis County, Missouri serve a
population close to one million people, while a club in Stark County, Ohio serves a population
under 400,000. There could also be socio-economic differences between zones that may
influence staffing decisions.
Some of the previous literature has touched on training because it is an important part of the
staffing process. The Sales Readiness Group (2011) believes that the ramp-up period, the time
between hiring and selling at plan, is an average of ninety days. However, the shorter the sales
cycle, the shorter the ramp-up time, but even that varies on the difficulty of the sales process.
Hessler Worldwide sales training period, or ramp-up time, is three days. An antiquated
training method is used. A new hire is placed with a veteran salesperson to observe the sales
presentation while memorizing the basic sales script, is used in lieu of a formal training process.
Often, new sales people are on their own by the second week. The Sales Readiness Group
studied effective training practices in Accelerating Ramp-Up Time of New Sales Hires. The Sales
Readiness Group writes:
Depending on the complexity of your product and sales process, the initial training
program should typically run one to two weeks and include ample exercises and role
plays that allow new hires to apply the skills and knowledge. During this period, the sales
managers should be actively involved in the training in order to carefully evaluate the

progress of the newly hired sales people and to send the message that the company takes
training seriously. (p. 5).
At Hessler Worldwide zone managers are still required to devote a large portion of their
time to personal sales for a part of their compensation package. As a result, zone managers are
rarely present during training. They rely on input and opinions from the veteran sales people who
are doing the training, for progress updates.
Another challenge to staffing in the current economy is the commission-based
compensation model. Career commissioned sales people in the past have prided themselves in
being able to directly affect their pay. Despite this perception, the recession has had a greater
impact on incentive-based employees driving their compensation lower than their non-incentive-
based counterparts. William Waitrowski of the Bureau of Labor Statistics showed in his report
The Effect of Incentive Pay on Rates of Change in Wages and Salaries (2009):
The published estimates of wage increase for all sales workers and time-based workers
were similar in late 2006 and early 2007; since then, these series have begun to diverge.
Beginning with data for December 2008, the gap between the series is statistically
significant. Even more striking, the published estimates of the change in wages and
salaries for all sales workers have been negative for each of the three quarters in 2009,
reflecting the influence of incentive-paid workers (www.bls.gov).
Many perspective Hessler employees express a concern about the perceived insecurity of
commission-only employment and that is now a legitimate concern. The disparity between
incentive-based and time-based workers is likely to continue until the economy stabilizes.

Wiatrowski (2009) states that “those not receiving incentive pay have seen relatively stable wage
growth, with declining rates of increase in 2009. (www.bls.gov)
Sales Compensation
The compensation plan for sales people at Hessler is a $300.00 weekly draw against the
commission earned from sales. A draw is equivalent to a guaranteed advance on the
commissions earned by selling the sets of Sharp Select cutlery. For example, if a salesperson
earns $400.00 in commission in a week that amount exceeds the draw. Conversely, if a
salesperson earns $250.00 in commission, they will receive $300.00 for the week leaving a
deficit of $50.00. This is commonly referred to as being-in-the-hole because the $50.00 is rolled
over to the following week and the salesperson must cover another $300.00 draw plus the $50.00
from the previous week. Commission per set is paid on an ascending scale in the mid-Atlantic
zone:
Units Sold Commission per Set
1 – 50 sets sold $5.00 per set
51 – 100 sets sold $6.00 per set retro to 1st set
100 + sets sold $7.00 per set retro to 1st set
The sales people are employees, not independent contractors, and do not receive any health
benefits, paid vacation or paid sick time. The sales people are reimbursed for any out-of-pocket
expenses that are work related and receive $0.25 per mile for each mile over 80 miles driven for

work in one day. If a salesperson is transporting product they are given $0.25 for all miles driven
that day. Compensation plans for other zones vary.
Occasionally a store is covered by two sales people who alternate every other
demonstration. This is usually done by pairing a struggling salesperson with a successful one. In
Compensation and Peer Effects in Competing Sales Teams, Tat Chan, Jia Li, and Lamar Pierce
reported that commissioned peers have a significant effect on each other’s performance when
they work together:
We believe that measuring relative, instead of absolute, productivity from peers is more
reasonable especially when considering competition across counters. Suppose a peer worker
has average productivity. Our relative model allows her impact on a highly productive
worker to be different from on a relatively unproductive worker. (p. 10)
Hessler’s hope is that the struggling salesperson will learn from, and be motivated by the
successful sales person. Chan, Li, and Pierce (2009) make a similar assumption in their research:
“our approach assumes that a high-ability peer influences a worker only if that peer is not equally
high ability.” While the benefits to a salesperson with low-ability may result in higher earnings, there
is no monetary compensation for the high-ability for this osmosis-style training at Hessler.
As previously mentioned, commissions are paid on sold units, but units that are returned to a
store after the promotion has ended are charged back to a salesperson. The careful phrasing of “a
salesperson” versus “the salesperson” was chosen because a defined method of commission charge-
backs is not given to the salesperson. This lack of accounting for the sales people at Hessler has lead
to an atmosphere of distrust in the compensation plan. In an article for Work Span magazine, The
Seven Rules of Sales Compensation Simplicity, David Cichelli (2008) explains:

Credit rules are an integral part of every sales compensation program. Sales crediting rules
define when and how much of the sales order is assigned to the salesperson for compensation
purposes. Document crediting rules to avoid misunderstandings (www.worldatwork.com).
The complexity of determining which salesperson should be charged back is daunting.
Multiple sales people may cover the same store during a promotion and there is no mechanism in
place to monitor which salespersons sets actually go through the register as some sets are abandoned
on shelves throughout the day as customers change their minds about the purchase. Because there is
no formally documented procedure for charge-backs, many sales people fill the vacuum with
speculation and suspicion about the objectivity of the process. There is no way for a salesperson at
Hessler to know if the charge-backs are random or subjective. Some sales people remarked that the
charge-back process may even be punitive. Cichelli makes the argument that “Accurate calculations,
performance visibility and self-help review put salespeople in a position to much better understand
their sales compensation program.” This approach would provide the information necessary to end
salesperson speculation and distrust.
The mid-Atlantic zone manager gathers daily information at the store level from the
salespeople who are working in the store, but pay is based on corporate sales reports that the retailers
send to Hessler’s corporate office and the data is only available to zone managers in an internal
spreadsheet. Zone managers have no method to investigate payroll anomalies brought to their
attention by sales people.
In the 2011 Global Sales Compensation Practices Survey Results, The Alexander Group, Inc.
(2011) surveyed 117 companies in several areas regarding sales compensation:
Generally, many companies are still striving for greater global program uniformity. The
primary reason is to ensure pay program alignment with business strategy. Emerging is a

growing trend to adopt global sales compensation automation solutions. Appropriately, the
assignment of quotas remains a local domain expertise. (p. 2)
As stated earlier, compensation plans at Hessler are not uniform for every zone, but
incentives are. In December of 2011, Hessler announced that any salesperson in the country that hits
300 units in sales per week would be paid $8.00 a unit during the month of December. This may have
been an effective goal in large metropolitan zones, but no salesperson has ever sold 300 units in a
single week in the mid-Atlantic zone, ever. The zone manager in the mid-Atlantic was not consulted.
Regional input may have allowed for aggressive, but attainable goals that would stretch each zone’s
sales capacity. The Alexander Group’s report points out that “Universal assignment of a single plan
seems improbable given local market conditions, local job design and distinct local government,
labor and social practices” (p. 2).
The Alexander Group also released an executive summary for the upcoming year titled 2012
Sales Compensation Trends Survey Results (2012) based on surveys of 119 companies responses
about their sales projections for 2012 and the resulting plans effect on sales department expenses.
While not as robust as projected at the end of 2010, 2011 was a positive year for sales
departments and their sales personnel. Revenue performance was 6%; two percentage
points below the previous 8% projection expected for 2011. Overall, sales departments
are moderately cautious about sales growth performance in 2012, expecting a 7.5%
increase in sales results in 2012. And, sales department expense budgets will increase 5%
in 2012. (p.2)
One of the most interesting, and perhaps more telling in the summary was that “96.61%
plan to make sales compensation program changes for 2012” (p.2) and “52.14% listed correct

goal setting as the top sales compensation challenge for 2012” (p.2). These two statistics may
signal that Hessler could benefit from input from each zone as to what may work best when
making changes in compensation that would be geared to increasing sales.
Input from zone managers and sales people is valuable even if it is not what the company
wants to hear. Hessler Worldwide continued to make decisions from the top and disseminate the
decision to zone mangers to implement. As the volatile economic environment of the current
recession continues, Hessler still relies on the previous year’s data to make decisions for the next
year. Scott Sands (2011) of Aon Hewitt Consulting writes in his research Sales Compensation
Year in Review: Lessons Learned:
Be flexible. Many businesses’ (and many people’s) priorities are changing very quickly
with the cost and availability of capital. Quotas that seem achievable in January may not
be possible by June, and strategies that seem certain in July are abandoned by December.
Sales compensation success usually requires a win for finance, for sales and for human
resources. With no flexibility, that window can seem very small. Give in on the little
things in order to stay focused on the ultimate goal (www.worldatwork.org)
Hessler Worldwide is a small company employing less that 100 people across the
country. Still, no salesperson in the mid-Atlantic zone has ever met the owner and he did not
visit any of the stores in the zone in 2011. Sands provides his recommendations for anyone
involved in sales compensation. Sands says “Get down in the trenches with the people doing the
work and participating in the plan.” (www.worldatwork.org)

Market Saturation
Businessdictionary.com defines market saturation as “Point at which a market is no
longer generating new demand for a firm's products, due to competition, decreased need,
obsolescence, or some other factor.” Because the product Sharp Select is kitchen cutlery with a
basically infinite life-cycle relative to the continuous need for knives, this paper will look at
some of the saturation factors mentioned in the definition.
Kitchen cutlery can be purchased in almost any department store, discount store,
specialty kitchen store, and grocery store. These stores put items on a self or in a display and
wait for people to find them and make a purchase. The Sharp Select product is sold at live
demonstrations and the product is sold at the conclusion of the demonstration. There is only one
other vendor in the mid-Atlantic zone selling a similar product in a similar way and they compete
in many of the same areas and wholesale clubs. The article What is Market Saturation, How it
Affects You and How to Avoid It on biz2success.com (2010) recommends examining the product
you sell to avoid market saturation:
To refrain affiliate markets saturation, look for a product that has a potentially large
market but is only being sold in limited areas. That way you’ll be able to take advantage
of higher income on your part than if you selected a product that is being distributed in
hundreds of other stores not just online, but offline as well (www.biz2success.com).

Competing with a similar product in the same stores and areas may leave an area fatigued
and unexcited about the cutlery. “The number of customers who have interest in a product will
also matter” (www.biz2success.com).
Yuping Liu and Rong Yang reported their findings about the effects of market saturation
of loyalty programs in the Journal of Marketing in their study called Competing Loyalty
Programs: Impact of Market Saturation, Market Share, and Category Expandability (2009):
Scarcity of a capability is a necessary condition for the capability to become a source of
competitive advantage and for the durability of such advantages.
The sales impact of an individual loyalty program diminishes with the level of saturation
of loyalty programs in the marketplace. (p. 99)
Though the study is about a different type of product, some parallels exist relative to
consumer attitudes towards what they may view as repetitive. Seeing a person stand at a booth
demonstrating kitchen cutlery five to six times per year in the same store decreases the interest
and may lead to a customer’s assumption that they have seen it all before. Lui and Rong point
out that “the impact of past sales diminishes over time” (p. 102), which could suggest that fewer
promotions in a single store may result in higher annual sales.
It would be incorrect to assume that because Sharp Select has done two promotions in the
same store in the same calendar year, sales would decrease for the third promotion because
everyone has been sold in that market. Larger markets and high volume stores may warrant a
third, or even fourth promotion because of the traffic in the store. In the article What is Market
Saturation, Felicia Dye (2003) points out:

It is important to note that market saturation does not mean that every consumer has a
product. Instead, the term generally means that a substantial portion of those who are
likely to purchase a product have already done so (www.wisegeek.com).
However, the mid-Atlantic zone is comprised of Ohio, Pennsylvania, West Virginia, and
parts of upstate New York which are smaller markets. Cleveland metropolitan area is the largest
market. It also has the highest concentration of promotions by Sharp Select and its competitors.
Dye (2003) says, “In some instances, markets get exhausted because there are too many suppliers
of a product” (www.wisegeek.com).
When market saturation is considered in relationship to product life cycle of a knife, it
helps to more narrowly define the product because sharp objects used to cut things have been
around since early man. Over the years kitchen cutlery has been refined and improved, and it is
those improvements that breathe new life into the cycle. In Principles of Marketing, Philip Kotler
and Gary Armstrong (2010) reference ways companies adapt the product:
The company might also try modifying the product – changing characteristics such as
quality, features, style, or packaging to attract new users and to inspire more usage. It can
improve the product’s styling and attractiveness. It might improve the product’s quality
and performance – its durability, reliability, speed, and taste. (p. 278)
Currently Sharp Select offers two different sets of cutlery. The less expensive set is
nearly identical to it’s direct competitor and another more expensive set that contains four steak
knives is sold in Sam’s Club wholesale outlet stores. Perhaps eliminating the set that closely
resembles the competitors and introducing a different collection of knives at the lower price
point for existing markets could reset the product life cycle. Kotler and Armstrong (2010)

suggest that “the company can try modifying the marketing mix – improving sales by changing
one or more marketing mix elements”. (p. 278)
Summary
The literature review contains a large amount of information and three possible areas are
specific targets for increasing unit sales. Addressing concerns in the areas of staffing with quality
candidates and provide comprehensive training, the pay plan is not complicated and could
improve with customization specific to the mid-Atlantic zone, and look for statistical signs of
market saturation and develop new and under-represented territories. A skilled sales force with
longevity will make planning and achieving growth more likely. A compensation plan that
develops strategic plans for products and territories may help as well.

Chapter III Experimental Design
Introduction
This chapter will describe the methods that will be used to test and achieve objectives
with the implementation of practices to increase unit sales in the Sharp Select division of Hessler
Worldwide, LLC. This chapter will also include a discussion of the operational and evaluation
objectives. Finally, this chapter will describe the steps and changes to be made for experimental
purposes, the methods that will be used to gather data, and will provide details of the techniques
used to determine the significance of the test results. A summary will be included that will cover
the main points in each section.
Objectives
There are several possible causes that would inhibit the Sharp Select division of Hessler
Worldwide, LLC in the mid-Atlantic zone from increasing and maximizing sales. The first is the
lack of a comprehensive and uniform method of training sales people. The second is a
compensation plan with proper incentivizes to foster sales and longevity. The third is a current
marketing strategy that saturates existing territories and overlooks others completely. For the
reasons stated, three objectives will be set to increase unit sales in the mid-Atlantic zone.
Operational objective one.
The first operational objective will be to implement a formalized, comprehensive training
program for new hires to be used consistently. The new practices will be in place on March 1,
2012.

Operational objective two.
The second operational objective will be to analyze the compensation plan for sales
people. Changes will be recommended to management to provide consistent incentive to increase
sales and promote trust and goodwill with transparent compensation practices. The
recommendations will be delivered to management on, or before, March 1, 2012.
Operational objective three.
The third operational objective is to schedule Sharp Select promotions at retail locations
in previously unopened territories. Every effort will be made to locate markets with similar
demographics and populations in the mid-Atlantic zone to compare and contrast with existing
markets. The new locations will be scheduled for April, May, and June of 2012 which is the
second quarter of 2012 sales calendar.
Evaluation objective.
The evaluation of the objective is to increase unit sales in the test group points of sale in
the mid-Atlantic zone of Sharp Select by 15% during the second quarter of 2012 compared to the
second quarter of 2011. Statistical testing methods will be employed with information gathered
by the Data Collection Plan to determine the significance of the three objectives.
Description of the Intervention
The intervention will include the three operational objectives. The second operational
objective does include recommendations for salesperson compensation, though there is no
commitment on behalf of the Hessler Worldwide to implement any changes to the existing

compensation plan in the mid-Atlantic zone. The first and third operational objectives can be
implemented with the only expense to the company being travel reimbursements for opening
new markets which may be offset with increased unit sales.
Comprehensive training for new hires.
Beginning in the mid-Atlantic zone after March 1, 2012, all newly hired sales people will
participate in a formal and comprehensive training program. This will replace the current three to
five day training period with a structured program that will last four weeks. It will begin with no
more than two new hires because there will be only one sales trainer using the new method.
A training manual for the sales trainer along with corresponding workbooks for the
trainees will be created from a modified sales training program used in the auto industry which
will not only focus on the process, but the psychology of the sales process. The zone manager
will be involved with program development to ensure its approval for implementation.
The training process will consist of the steps outlined below:
1 A four hour orientation on the first day that will include completion of all
personnel paperwork and a review of company policies as they pertain to sales.
2 The last four hours of the first day will be spent observing the sales presentation
being done by the trainer.
3 New hires will receive training materials at the beginning of the second day and
begin a four-day work-study program.
4 Day six will include role-play, practicing demonstrations, and observation.

5 New hires will do live demonstrations on day seven through ten with huddles to
discuss progress and answer questions.
6 In the third week, the two new hires will be separated, assigned mentors, and
work in different locations for the next two weeks.
7 The trainer will communicate daily with new hires either in-person or by phone to
support their sales efforts and address any concerns.
8 On the last day of training, the sales trainer will observe and make
recommendations for placement to the zone manager.
Compensation plan review and recommendations.
Prior to March 1, 2012, the current compensation plan will be reviewed.
Recommendations will be made to improve the existing plan, replace the existing plan, or
continue with the status quo. Recommendations will consider the effect changes will have on the
sales cost per unit (commission). Any increases in sales cost must be offset with increased sales.
Any proposed changes should be easy for sales people to understand and enable them to monitor
their compensation and progress. The process will include:
1 Review existing compensation plan.
2 Make recommendations to zone manager.
3 Receive approval before implementing any changes. If no approval is
forthcoming, the status quo remains in place.
Market in previously unopened territories.
Beginning in April, 2012 through June, 2012, promotions will be scheduled in previously
unopened territories in the mid-Atlantic zone. Potential markets will be evaluated by their
demographics and populations. Selected markets will then be targeted to schedule promotions.

The new markets will not have been opened before and there is no sales staff in place to work
them. Consequently, Hessler will incur some travel and lodging expenses for a salesperson to
work the promotion.
The process for the object will be as follows:
1 Compile a tentative list of unopened markets in the mid-Atlantic zone.
2 Markets that closely mirror open territories in northeast Ohio will be targeted for
Sharp Select promotions.
3 The zone manager will schedule the promotions for the second quarter of the sales
calendar (April, May, and June) of 2012.
4 Existing sales people will be scheduled to work the promotions.
5 Lodging will be arranged from the corporate office and itineraries will be emailed
to the salesperson.
6 The salesperson will work to maximize every sales opportunity.
Implementation costs.
Currently the company will pay $0.25 per mile round trip because the sales person will be
transport the rig. The company will make arrangements for lodging at a hotel close to the retail
outlet and split the expense with the salesperson. The actual costs cannot be calculated until the
time of the promotion. Mileage expenses will vary depending on the distance of the scheduled
salespersons home to the location of the promotion. Lodging will be arranged with a discount
website and prices will fluctuate with demand for available rooms in the market area. Sales
compensation is commission and will vary depending on the number of units sold during the
promotion. No estimated or concrete costs can be calculated prior to scheduling.

Data Collection Plan
The population data in the experiment will include unit sales at seven selected points of
sale in the mid-Atlantic zone of the Sharp Select division of Hessler Worldwide, LLC, during the
second quarter of the sales calendar (April, May, and June).
Pre intervention data.
The pre intervention data is the sum of all units sold at seven existing points of sale in the
second quarter of 2011, in the mid-Atlantic zone before any of the objectives were enacted.
Post intervention data.
The post intervention data will be the sum of all units sold at seven previously unopened
points of sale in the second quarter of 2012, after the objectives are enacted.
Data analysis.
By comparing the pre intervention data to the post intervention data, the intention is that
unit sales in the mid-Atlantic zone will increase by 15%. If comparison data proves an increase
of 15% or more to be true, the project will have achieved its purpose.
Summary
This chapter describes three operational objectives to increase unit sales at the selected
points of sale in the mid-Atlantic zone of the Sharp Select division of Hessler Worldwide, LLC.
The objectives involve comprehensive, formal training of all new hires, evaluation and
recommendations for sales compensation, and scheduling promotions in previously unopened
markets within the mid-Atlantic zone. The evaluation of the objective is to increase unit sales at
the selected points of sale in the mid-Atlantic zone of Sharp Select by 15% during the second
quarter of 2012 compared to the second quarter of 2011. Comparing the pre intervention data to
the post intervention data will determine if the project achieved its objective.

Chapter IV Experimental Results
Introduction
Unit sales results for the Sharp Select division of Hessler Worldwide, LLC, were
gathered for the second quarter of 2011 and the second Quarter of 2012 will be included in this
chapter. The data was collected in an attempt to determine which steps will increase unit sales.
The sales results gathered will be compared and contrasted and the results will be analyzed.
A summary of the results and statistical research will be discussed. Hypotheses that prove
to be statistically significant may provide recommendations and solutions to increasing unit
sales. Conversely, results that prove to statistically insignificant will be deemed irrelevant and
discarded.
Summary of Results
The intervention included three operational objectives; a comprehensive training program
for new hires, an evaluation of the current sales pay-plan and recommendation of changes, and
marketing the Sharp Select line will be marketed in select areas that the company has not served.
Operational objective one.
Interviews were held in February of 2012 in preparation for the implementation of the
first operational objective; a new, comprehensive training program for new demonstrators. Two
demonstrators, both males ages 27 and 42, were hired and began their training on March 1, 2012,
in the Sam’s Club in Fairlawn, Ohio (the Hessler work-week begins on Thursdays and ends on
Wednesdays).
A half-day orientation included basic opening procedures, company policies, and
completion of new-hire paperwork. The second half of the day was spent observing the live
demonstrations and answering basic questions. The second day began with a review of the

training materials including the script for the demonstration and the remainder of the first week
was spent in work study. The sixth day included new-hire role-play, practice demonstrations, and
observation. Trainees began doing live demonstrations on day seven and continued for the
balance of the second week. The new-hires alternated demonstration times and paused for
huddles to discuss progress and answer questions. They were then assigned to separate
promotions for the next two weeks to work with seasoned demonstrators who would also provide
informal mentoring and feedback to the trainer. There was daily communication between the
trainer and the trainees to support their sales efforts and address any concerns.
The four week training concluded with a day of observation by the trainer. One was
observed on Sunday, March 25th, and the other on Monday, March 26th. It was determined that
both were proficient and were scheduled as a team to open their first solo promotion on
Thursday, March 29th.
Operational objective two.
In January of 2012 work began on the third and final operational objective. When
selecting promotions for previously unopened markets, consideration was given to three
accounts; Giant Eagle grocery stores, Sam’s Club, and BJ’s Wholesale Club. Giant Eagle
accounts were excluded because of a lack of representation in the markets that were targeted.
Seven two-week promotions were scheduled in the previously unopened locations:
1. March 29, 2012 - Sam’s Club, Toledo (Holland), Ohio.
2. April 12, 2012 - Sam’s Club, Sandusky, Ohio.
3. April 26, 2012 - Sam’s Club, Chillicothe, Ohio
4. May 10, 2012 - Sam’s Club, Granville, West Virginia.

5. May 24, 2012 - Sam’s Club, South Charleston, West Virginia.
6. June 7, 2012 - BJ’s Wholesale Club, Tonawanda, New York.
7. June 21, 2012 - BJ’s Wholesale Club, Victor, New York.
Four of the seven promotions were staffed by the two demonstrators who had gone
through the new training process and three promotions were staffed by demonstrators who were
hired prior to March 1st, 2012. Assignment of the promotions were based on the demonstrators
ability to travel during the scheduled times, though a successful effort was made to schedule the
demonstrators that had gone through the new training at least 50% or more of the time. The most
senior demonstrator used for this objective had been employed by Hessler Worldwide for 28
months and the average tenure for all demonstrators used for these promotions was eleven
months. There were no issues with absenteeism or scheduling and all seven promotions took
place as planned.
Unapplied operational objective.
An additional operational objective consisted of recommendations for changes and
enhancements to the pay-plan. These recommendations included adding a permanent $8.00 tier
to the commission structure, demonstrator access to all GoogleDocs pertaining to final unit sales
to cross reference pay, and a 1% annual longevity bonus based on personal sales to be paid
annually as an additional incentive to remain employed by Hessler Worldwide. All
recommendations were summarily rejected without discourse by Hessler Worldwide.
Analysis of Results
Evaluation objective.
The objective of the intervention was to increase unit sale in the second quarter of 2012
by 15% when compared to unit sales data collected from the second quarter of 2011. The 2nd

quarter of 2011 included seven weeks starting on March 24, 2011, through June 30, 2011. The
2nd quarter of 2012 includes the seven weeks beginning on March 29, 2012, through July 5,
2012.
The first operational objective was achieved by hiring two new demonstrators and putting
them through an intensive four week training program before working their own promotions. The
new demonstrators who received additional training out-performed their seasoned counterparts
with a +53.6% increase in sales versus a decline of -1.4% in sales in the previously unopened
markets.
Total 2nd Quarter Unit Sales – New Hires vs. Veteran Salespeople
0
200
400
600
800
1000
1200
1400
1600
1800
2000
New Hire Sales Veteran Sales
2011
2012

Fig. 1 Sales – New Hires vs. Veteran Salespeople
Though Fig. 1 illustrates an increase in sales for the new hires and stagnant sales for
veteran salespeople, a Paired t-Test was done to determine if the new training program had a
significant impact on sales. To achieve an even number of promotions between the two sets of
data, the largest new hire variable was removed.
Veteran Sales New Hire Sales
Promo 390 436
Promo 297 478
Promo 262 394
t-Test:PairedTwoSample forMeans
Veteran Sales New Hire Sales
Observations 3 3
df 2
t Stat -3.032912507
P(T<=t) one-tail 0.046842858
t Critical one-tail 2.91998558
Fig.2 Paired t-Test of Veterans v. New Hires
Because the absolute value of the t Stat is greater than the t Critical one-tail and because
the probability that the null hypothesis is true and smaller than the Alpha, the null hypothesis is
rejected. The alternative hypothesis that the new training program significantly increased sales is
accepted.
The second operational objective was achieved by successfully scheduling promotions in
previously unopened points of sale in the 2nd quarter of 2012 to compare to existing points of
sale in the 2nd quarter of 2011. Overall unit sales increased by 29.2%, thus exceeding the
objective of 15%.

Total 2nd Quarter Unit Sales - 2012 vs. 2011
Fig. 3 Unit Sales - 2012 vs. 2011
0
500
1000
1500
2000
2500
3000
2012
2011

Though Fig. 3 illustrates an increase in sales in previously unopened points of sale, a
Paired t-Test was done to determine if promotions in these previously unopened points of sale
had a significant impact on sales.
2011 Unit Sales 2012 Unit Sales
Promo1 264 537
Promo2 412 390
Promo3 282 297
Promo4 310 436
Promo5 357 478
Promo6 270 394
Promo7 268 262
t-Test:PairedTwoSample forMeans
2011 Unit Sales 2012 Unit Sales
Observations 7 7
df 6
t Stat -2.304065745
P(T<=t) one-tail 0.030380456
t Critical one-tail 1.943180274
Fig. 4 Paired t-Test of 2011 sales v. 2012 sales

Because the absolute value of the t Stat is greater than the t Critical one-tail and because
the probability that the null hypothesis is true and smaller than the Alpha, the null hypothesis is
rejected. The alternative hypothesis that scheduling promotions in previously unopened points of
sale significantly increased sales is accepted.
Summary
Three operational objectives were proposed to increase unit sales by 15% at seven
selected points of sale in the mid-Atlantic zone of the Sharp Select division of Hessler
Worldwide, LLC, during the second quarter of the sales calendar (April, May, and June). The
first operational objective dealt with implementation of an intensive and more comprehensive
training program for new demonstrators. The second operational objective dealt with scheduling
promotions in previously unopened points of sale to maximize sales opportunities and avoid
market saturation. An additional operational objective dealt with proposed changes and
enhancements to the demonstrators commissions pay plan was not implemented. Though only
two of the three operational objectives were enacted, the project was successful because the
actual increase in unit sales for the second quarter of 2012 was 29.2% which exceeds the
proposed goal of 15%.

Chapter V – Conclusions and Recommendations
Introduction
This chapter reflects on data gathered from two of the three proposed operational
objectives. Conclusions and recommendations are made based on comparisons of before and
after sales by unit. The operational objects were put in place in an effort to determine if the 2nd
quarter 2011 unit sales could be increased by 15% when compared to unit sales in the 2nd quarter
of 2012. The 2nd quarter of 2011 included seven weeks starting on March 24, 2011, through June
30, 2011. The 2nd quarter of 2012 includes the seven weeks beginning on March 29, 2012,
through July 5, 2012.The operational objectives were tested in seven selected markets that had
not previously been open in the Midwest zone of the Sharp select division of Hessler Worldwide,
LLC.
Conclusions
Conclusion one.
The first operational objective was achieved by hiring two new demonstrators and putting
them through an intensive four week training program before working their own promotions. The
new demonstrators who received additional training out-performed their seasoned counterparts
with a +53.6% increase in sales versus a decline of -1.4% in sales in the previously unopened
markets. Total unit sales reached 2794 units in 2012 versus 2163 units sold during the same
period in 2011 for a 29.2% increase over-all. Sales were then broken down by new-hire versus
veteran demonstrators. Because the new-hires sales occurred over a eight weeks and the veteran

sales occurred over six weeks, a comparison of total sales could be misleading, however when
compared by percentage of difference it was discovered that new-hire unit sales increase over
2011 was stunning 53.6% and veteran unit sales were virtually stagnant at -1.4%. The results of a
Paired t-Test supported the alternative hypothesis that the new comprehensive training of
demonstrators had a statistically significant impact on sales.
Conclusion two.
The second operational objective was achieved by successfully scheduling promotions in
previously unopened points of sale in the 2nd quarter of 2012 to compare to existing points of
sale in the 2nd quarter of 2011. Overall unit sales increased by 29.2%, thus exceeding the
objective of 15% and a Paired t-Test supported the alternative hypothesis that unit sales would
increase if a focused effort was made to hold promotions in these previously unopened points of
sale.
However, even though unit sales met and exceeded the objective, further scrutiny of the
results reveals no growth in new points of sales for the veteran demonstrators. This poses a new
question: Did overall unit sales increase because of comprehensive training or because of
comprehensive training AND previously unopened points of sale? When considering the unit
sales of veteran demonstrators only, the operational objective would fail to reject the null
hypothesis and previously unopened points of sale would have no statistically significant impact.
Recommendations

Recommendation one.
It is recommended that Hessler Worldwide implement a comprehensive training program
for newly hired demonstrators consisting of the steps outlined below:
1 A four hour orientation on the first day that will include completion of all personnel
paperwork and a review of company policies as they pertain to sales.
2 The last four hours of the first day will be spent observing the sales presentation being
done by the trainer.
3 New hires will receive training materials at the beginning of the second day and begin a
four-day work-study program.
4 Day six will include role-play, practicing demonstrations, and observation.
5 New hires will do live demonstrations on day seven through ten with huddles to discuss
progress and answer questions.
6 In the third week, the two new hires will be separated, assigned mentors, and work in
different locations for the next two weeks.
7 The trainer will communicate daily with new hires either in-person or by phone to
support their sales efforts and address any concerns.
8 On the last day of training, the sales trainer will observe and make recommendations for
placement to the zone manager.
This was the model implemented in the operational objective and was proven to
positively impact unit sales. All Zone managers and District managers across the United States
should be taught how to correctly use the new comprehensive training model. Zone and District
managers should also begin evaluating existing demonstrators to determine who consistently
performs well and would be competent mentors for the new hires. The comprehensive training

program should be modified for re-training existing demonstrators who would benefit from the
supplemental education.
Recommendation two.
It is recommended that Hessler Worldwide continue to expand promotions into
previously unopened points of sale. Though the analysis of the overall unit sales proved to be
statistically significant, it would not be an accurate statement based solely on the sales of veteran
demonstrators which remained stagnant. Expand promotions to these new points of sale in
concert with an expansion of the demonstrator force to staff the promotions. This would increase
unit sales by whatever units were sold in these new markets as long as existing staff was not
shifted out of existing points of sale for staffing.
Recommendations for Further Research
The discoveries of this independent research project reflect a statistically positive impact
on unit sales. Additional research would be needed using the guidelines of the second operational
objective and removing the variable of newly hired demonstrators. By using only veteran
demonstrators in previously unopened points of sales, it may be possible to determine the
statistical significance (if any) between existing and unopened markets.
It is also recommended that a study of newly hired, comprehensively-trained
demonstrators working in existing points of sales be performed. This would provide additional
perspective to the analysis of unit sales changes and determine if the increased unit sales could
be replicated in existing markets. It would also reaffirm or reject the alternative hypothesis
presented in this research project.

Summary
I. Conclusions
A. Two new demonstrators were hired and completed a four-week comprehensive
training program.
1. Overall unit sales were increased by 29.2% which is comprised of a 53.6%
increase by new hires and a -1.4% change by veteran demonstrators.
2. Operational objective one’s unit sales increase was statistically significant.
B. Seven new points of sales were opened in the 2nd quarter of 2012 and were staffed
by newly hired and veteran demonstrators.
1. Operational objective two’s unit sales increase was statistically significant.
2. When veteran sales are evaluated separately unit sales are stagnant.
C. Additional research is recommended removing the variable of newly hired
demonstrators in previously unopened market to fully understand the impact of
these new markets on unit sales.

References
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Chan, T. Y., Li, J., & Pierce, L. (2009). Compensation and peer effects in competing sales teams
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Cichelli, D. J. (2008). The seven rulesof salescompensation simplicity.
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Liu, Y., & Yang, R. (2009). Competing loyalty programs: Impact of market saturation, market
share, and category expandability. Journal of Marketing, 98-102. Retrieved January 13,
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Misra, S., Pinker, E. J., & Shumsky, R. A. (2002). Salesforce design with experience-based
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10.1080/07408170490487777
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Sands, S. (2011). Sales compensation year in review. Www.worldatwork.org. Retrieved January
12, 2012.
Strauss, J., & Frost, R. (2012). E-marketing. Boston, MA: Pearson/Prentice Hall.
The Alexander Group. (n.d.). 2011 global sales compensation practices survey results (pp. 2-5,
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What is market saturation, how it affects you and how to avoid it. (2010, February 11).
Www.biz2success.com. Retrieved January 12, 2012.
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