BACKGROUND

Company

• 18% market share in the US industry of exercise equipment's

• Company held market share of
• 27% in retail
• 10% in Pvt.
• 17% in Commercial
• Competitive advantage- Products’ Quality and Effectiveness
• Revenue- $630 million (2011)

Customer Context

• • Lower bargaining power of the

Retail Products - Big Box Retailers,
buyers: Highly fragmented US health
Sporting Equipment Chains and
Online Retailers Competitors club industry,
Collaborators • Competition rivalry: Low (18%
• Private & Institutional Products –
market share)
Private Organizations such as Private • Other similar equipment
Clubs, Universities, Training facilities • CRM tool supplier • Threat from substitutes: Low
manufacturers (Increased usage of exercise
for sports and Residential property
• equipments required health clubs to
Commercial Products – Health clubs
replace them before the usually
charging fee
expected life)
 Criteria and Alternatives

Criteria for Evaluation

1. District sales of Step Smart’s Equipment.

2. Salesforce Productivity.
3. Cost Incurred.

Alternatives:

• Reassign existing salesperson to different territories- best salesperson to bad territory sales and vice versa
• Hire new salesperson for territory with bad sales and put those territory previous sales person under probation
• Fire bad performing salesperson and replace with new sales person