LAHORE SCHOOL OF ECONOMICS

Sales Force Management

MBA II
Section: A

Assignment

Title of Case Study

National Foods

Names and ID
Muhammad Tanzeel
Mustafa Sethi 14P01551
Nayab Hanif
Yumna Rehman

Group No

Submission Date
8.2.16

Contents
Introduction................................................................................................................ 3

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Introduction
This case is about National Foods Limited. Mr Rana Muhammad, the GM of the company, called
a meeting. The RSM, ZSM, SZSM and 4 other area managers were present where the GM
complained about the low sales of March 2013-14. The primary target of food and kitchen
division wasnt being met with both categories showing declining growth rates. The GM wanted
to know the reasons behind the poor performances of both the divisions.
National food was founded in 1970. It has above 150 different products and above 100 S.K.Us.
With changing times, National foods brought innovative products that were quick and convenient
to carry for the customers. National foods products included Recipe masalas, ketchups, jams, rice
alongside many others.
National foods vision had to become a Rs 50 billion food company by the year 2020 by
launching different products and services in the domestic and international markets. The
company had been growing at an average rate of 12% and to fulfill their vision, they had to grow
annually at a rate of 22%.
The company was divided into 2 categories
1. Food division (43% of sales)
2. Kitchen division (57% of sales)
The food division accounted for 4.35 billion of the total 12 billion sales of company
Distributors role was very important in meeting the targets. He worked in collaboration with
RSMs and ZSMs to meet the targets. The order bookers and suppliers reported directly to them.
Pakistan had been divided into 6 regions geographically and a RSM was responsible for every
region. Every region was further divided into 4 zones that was based on the business they
generated.

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Exhibit Analysis
Exhibit 1: This exhibit discusses the mission and vision statement of the company, which was to
be a 50 billion company by 2020. It also discusses the different founders philosophies along with
the different core values the company stood for.
Exhibit 2: This exhibit discusses Lahore zones and its sub-divisions 2014 March targets. It also
shows the sales as compared to previous years March sales. The company suffered a 36% decline
in sales as compared to last years in the food division. Up till 21st March the company had
achieved only 52.69% of the months target and to fulfill the target, Lahore region had to sell
more than 5.7 million rupees of products a day.
Exhibit 3: This exhibit has the same information as exhibit 2, only this tells about the kitchen
division of the company. The company had only achieved 54.33% of the sales up till 21st March
and to meet the target of kitchen division, they had to sell more than 6.4 million rupees of
products a day.
Exhibit 4: This exhibit shows the sales structure of the company. There was one GM who had 5
managers under him. The NSM had an RSM, ZSM, and sales executives, order bookers and
deliverymen. The distributor collaborated with the RSM and ZSM.
Exhibit 5: This exhibit shows the sales team. Under GM were 2 NSMs. One was of rural and
one of urban. Under each NSM were 4 RSMs and under each RSM were 4 ZSMs. Under each
ZSM was a supervisor who had 4 order bookers and suppliers to control.
Exhibit 6: This exhibit shows the territory plans, which areas would be covered on which day.
On one day in an area the booking takes place by the order bookers, the next day the supplier
vans deliver the products.
Exhibit 7: This shows the different towns in the Lahore zones.

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Improper Territory Design:

Territory design is not proper. The areas assign to territories are not right as they assign
Sheikhupura to DHA zone.
Analysis
The areas under zones dont make sense i.e. how can Sheikhupura come in Lahore DHA zone.
High Reliance on Distributors
There were 1-2 merchandisers in sales team their work had to be done by Order Bookers, Sales
supervisors and there team members should have been the one involved in calling the real shots
and doing the major work
Sales targets
Targets were made solely by GM, there was no bottoms up approach no consensus upon which
forecasting and targets could have been set.
38464860 was achieved growth was -36%, according to exhibit 3 as well target was not achieved
and growth was -40%

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