What is my dollar opportunity if I increase my brand's store penetration?
How can I evaluate my sales team's effectiveness?
Case:
Running Sneakers Inc. would like to know how its sales divisions are performing against their goal (achieve a 50% store selling distribution rate).
Findings:
The company determined that there is a significant revenue opportunity ($1 million per sales rep) if all sales divisions are able to increase their percent of stores selling Running Sneakers Inc. products to 50%, which would also mean an increase in the number of stores that Running Shoes Inc. is in by 912 stores.
Action:
Running Sneakers Inc. decided to increase the number of reps in the Northeast and the West, where the store opportunity is the greatest. The company is working with NPD to evaluate if this strategy is providing the right balance of revenue gain and profitability.
GOAL:
To increase distribution of Running Sneakers Inc. products in all divisions to 50% stores selling, and understand the dollar opportunity that would represent.
Running Sneakers Inc. Sales Division Performance Information
12 months ending January 2008
Total Dollar Opportunity Per Sales Rep On Average: $1,026,420
| Division | Total # of stores | # of Sales Reps | % Stores Selling | Store Opportunity | $/Store |
$ Opportunity Per Sales Rep |
| Midwest | 2113 | 2 | 42% | 169 | 14,491 | $1,224,747 |
| Northeast | 2478 | 3 | 38% | 297 | 10,508 | $1,041,525 |
| Southeast | 2365 | 4 | 45% | 118 | 16,466 | $486,761 |
| Southwest | 1985 | 2 | 48% | 40 | 14,990 | $297,553 |
| West | 2054 | 3 | 36% | 288 | 21,393 | $2,050,612 |
For more information, please contact Charles Camaroto at 866-444-1411 (contactnpd@npd.com).
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