Establishing Territories and

Assigning Quotas to the Sales Team

For Stationary
BY CREATIVE BUGS
Zone: North Product: Pen
Territory: Delhi
Categories of pen
Ball
Point Gel Pen
Pen
Use and Normal
Rs. 3 Throw Pen Gel Pen Rs. 5

Normal Water-
Rs. 5 Ball Point proof Gel Rs. 10
Pen Pen

Rs. 10 Pen with

Refill
 Assumptions

 Establishing Territories and Assigning Quotas for existing company and product.
 Number of retail stores in each block = 9,375
 Working hour for a sales associate = 9 hours
 Number of stores covered by a sales associate in a day = 15
 Number of stores covered by a sales associate in a month = 375
 Average times taken by sales associate to travel and pitch the retailers = 30mins.
 For the company a unit is equals to a packet.
 Number of pen in a packet = 5 pens
 Took help from internet for figures like population, area etc.
 How will you go about establishing territories?

 Delhi is selected for the basic geographical control unit.

 Due to huge population.
 Availability of Government Offices are more.
 Availability of universities and colleges are more. (5 central universities, 7 State
universities, 13 deemed universities, and more than 90 colleges)
 More than 5700 schools in Delhi.
 Due to the highest number of start-ups. (more than 7000 start-ups between 2009-
2019)
 Private market valuation of the start-ups in Delhi is more than Bangalore and Mumbai.
 Number of retail stores are 1.5 lakhs
 Market size for stationary products is rupees 609 bn
 Control units
 North West Delhi (3 blocks)
 South West Delhi (3 blocks)
 South Delhi (2 blocks)
 West Delhi (1 block)
 East Delhi (1 block)
 North East Delhi (1 block)
 North Delhi (1 block)
 New Delhi (1 block)
 Central Delhi (1 block)
 Shahdara (1 block)
 South East Delhi (1 block)
 Sales Target for Direct Sales Team

Volume Based Sales Quota

Annual Sales Quarterly Monthly Sales

Target Sales Target Target

Ball point pens

Use and throw 4,50,000 1,12,500 37,500
ball pen (Rs.
3)
Normal ball 2,70,000 67,500 22,500
pen
(Rs. 5)
Pen with refill 1,80,000 45,000 15,000
(Rs. 10)

Gel pens
Normal gel 2,25,000 56,250 18,750
pen
(Rs. 5)
 Continue . . .
Activity Based Sales Quota

Penetrated Market (existing retail stores as customers)

Annual Target : 7875 retail stores

Target Market (new retail stores as customers)

Annual Target : 1500 retail stores

Total Annual Target : 9375 retail stores

 Sales Target for Each Direct Sales Associates

Volume Based Sales Quota

Monthly Sales Weekly Sales Daily Sales

Target Target Target

Ball point pens

Use and throw 37,500 9,375 1,500
ball pen (Rs. 3)
Normal ball pen 22,500 5,625 900
(Rs. 5)
Pen with refill 15,000 3,750 600
(Rs. 10)

Gel pens
Normal gel pen 18,750 4,688 750
(Rs. 5)
Waterproof gel 15,000 3,750 600
pen (Rs. 10)
 Continue . . .
Activity Based Sales Quota

 Penetrated Market (existing retail stores as customers)

 Annual Target : 4200 retail stores
 Monthly Target : 350 retail stores
 Daily Target :14 retail stores

 Target Market (new retail stores as customers)

 Annual Target : 300 retail stores
 Monthly Target : 25 retail stores
 Daily Target : 1 retail stores

 Total Annual Target : 4500 retail stores

Basis for assigning sales targets

 Number of product unit sold.

 Market potential : Number of retail stores available in an area.
 Penetrated Market and Target Market.
 Performance of competitors.
Sales Hierarchy
General Manager 1
& Sales Head

Team Leaders 5

Sales Associates 25
 Team Members

Anshul Ajmera Khushbu Bansal

Vishal Ajmera
(Team Leader)

Madhulika Leena Visora Subrat

Chouhan Dhal