Subject category:
Marketing
Published by:
Lagos Business School
Length: 10 pages
Data source: Generalised experience
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Abstract
Splendid Ruby Scents Limited was a local perfume company that aimed to capture a considerable size of the imported-products-dominated scents market in Nigeria. The company made some impressive sales when it started, earning about 40% net profit just in its second year of operation. Tunde, the CEO, motivated by the initial success, constituted a management board and expanded to other major cities in Nigeria with 30 different fragrances of perfume in stock. The increase in sales would not have been possible without the efforts of the sales force and the regional sales managers (RSMs) that covered the three major territorial hubs of the company - Lagos, Kano and Abuja. Chioma, the sales director, had the responsibility to increase the company's sales by 25% for the year 2018. As of June, the company's sales performance was about half of that of 2017 as at that time. The sales team believed the new compensation scheme designed by Chioma was responsible for their poor performance. Chioma, therefore, had the onerous task of trying to align the personal and business interests of her RSMs, and the motivation of the sales team with the goals of the company before the next board meeting. She had only a week to come up with action plans.
Time period
The events covered by this case took place in Jul-05.Geographical setting
Region:
Africa
Featured company
Splendid Ruby Scents Limited
Employees:
11-50
Turnover:
NGN 588,300,500 (First nine months of the fiscal year, 2017)
Type:
Self-owned
Industry:
Cosmetics
Featured protagonist
- Chioma Nwankwo (female), Sales Director
About
Abstract
Splendid Ruby Scents Limited was a local perfume company that aimed to capture a considerable size of the imported-products-dominated scents market in Nigeria. The company made some impressive sales when it started, earning about 40% net profit just in its second year of operation. Tunde, the CEO, motivated by the initial success, constituted a management board and expanded to other major cities in Nigeria with 30 different fragrances of perfume in stock. The increase in sales would not have been possible without the efforts of the sales force and the regional sales managers (RSMs) that covered the three major territorial hubs of the company - Lagos, Kano and Abuja. Chioma, the sales director, had the responsibility to increase the company's sales by 25% for the year 2018. As of June, the company's sales performance was about half of that of 2017 as at that time. The sales team believed the new compensation scheme designed by Chioma was responsible for their poor performance. Chioma, therefore, had the onerous task of trying to align the personal and business interests of her RSMs, and the motivation of the sales team with the goals of the company before the next board meeting. She had only a week to come up with action plans.
Settings
Time period
The events covered by this case took place in Jul-05.Geographical setting
Region:
Africa
Featured company
Splendid Ruby Scents Limited
Employees:
11-50
Turnover:
NGN 588,300,500 (First nine months of the fiscal year, 2017)
Type:
Self-owned
Industry:
Cosmetics
Featured protagonist
- Chioma Nwankwo (female), Sales Director