Introduction

Wooden furniture is attractive industry in Pakistan. Furniture market is mainly

segregate into home use and corporate clients markets. The maximum sales
occur in first and last quarter of year. The industry flourishes due to
specialized labor and indigenous wood available to produce world class
furniture.

Main competitors of Interwood are Heaven Furniture, Mohkam Designers &

furniture and Bashir Sons

The company produce high quality furniture through INTERWOOD WAY

handling things. Interwood categories its product into three category. Life
ware, Corporate and educational and hotels.

EXHIBIT ANALYSIS

1:
GUJRANWALA

quarter
Year q1 q2 q3 q4 total avg

10813 54069 27034 27034 675865.7

2009 85 3 6 811039 63 5

11354 56772 28386 28386 709659.2

2010 55 7 4 851591 37 5

11922 59611 29805 29805

2011 27 4 7 894170 68 745142

34090 17045 85226 85226

Total 67 34 7 2556800 68 2130667

3 year 11363 56817 28408 852266.666 28408 710222.3

avg 56 8 9 7 89 333

seasonal
index 160 80 40 120

LAHORE

quarter
Year q1 q2 q3 q4 Total avag

66084 33042 16521 16521

2009 66 33 16 4956349 164 4130291

74014 37007 18503 18503

2010 82 41 70 5551111 704 4625926

84376 42188 21094 21094 5273555.

2011 89 44 22 6328267 222 5

22447 11223 56119 56119 1402977

Total 637 818 08 16835727 090 2.5

3 year 74825 37412 18706 18706 4676590.

avg 46 73 36 5611909 363 833

seasoan
al index 160 80 40 120

2:
Lahore 2010
 PI
105

100

95
PI
90

85

80

75
Kamran Junaid Waqas Ahsan

3:

sal
es PI( befo PI
rep re) (after)

71.33(S 69.97(
hamsha Kamra
d) n)

Ali 73.44 72.04

Ra
shi
d 74.35 72.93

Um
ar 69.66 74.36
 75.00

74.00

73.00

72.00

71.00 PI( before)

PI (after)
70.00

69.00

68.00

67.00
Shamshad Kamran Ali Rashid Umar

4 & 5:
Gujranwala team was given 8 % commission on sales due to fact that the Gujranwala market is
new and in growing stage

The commissions are on sales and if the quota exceeds 100%, then 50% of the excess sales are
given to the sales personnel as bonus. Lahore team was given 2% commission on sales due to
fact that the Lahore market is well developed.

Problems/Issues

Gujranwala sales

One of the issue that company was facing is of low sales in Gujranwala region as sales persons in
region unable to generate sales target set by company as this accounts only for 5% of the
company sales, the bench mark region was Lahore and its sales accounts for 30% of company.

Sales Quota
The sales quota set for Gujranwala region was unrealistic and more than the market potential as
Gujranwala was a developing region and Lahore was developed region for particular industry
although much of experience sales person deployed to boost the performance.

Demotivated Kamran

Kamran was chosen as interim sales manager to turn up the sales of Gujranwala region, Kamran
was not motivated although the package which includes commission, income and responsibility
of team was an attractive offer but due to lack of motivation failed to achieve target set by
company.

Competition

The Competition in industry was not easy to cater easily competitors like interiors touchwood,
Heaven and Mohkam were major threats to company the competitive pricing in industry and
quality provided by competitors increase vast options for customers.

Job Offer to Kamran

Another problem was that Kamran was unable to meet the sales target given by GSM with his
ample knowledge and vast experience of the industry but his main focus was on the offer given
to him by renowned furniture company and he kept on thinking about that offer, due to sales
issue in company he was under pressure thinking about his repute.

Core Issue

Sales Quotas

The major problem that company faced was of sales quotas, the sales quota set for Gujranwala
region was unrealistic and more than the market potential as Gujranwala was a developing region
and Lahore was developed region for particular industry although much of experience sales
person deployed to boost the performance but unable to achieve the company targets, the same
sales person Kamran who has ample experience in industry has good performance in Lahore
even excess sales but fail in Gujranwala.
Solution

Relationship

Interwood should give more time to Kamran as he is new to Gujrawala market and he dont have
any relationship with clients. Relation building with clients are very important to make good
sales.

Quota

Quota allocation was impropriate as Gujrawala is less developed as compared to Lahore . So

Interwood should allot achievable quota with in consideration to Gujrawala potential.
Furthermore, they dont have to compare Lhaore and Gujrawal market its completely different.

Motivation

Sales force team was demotivated due to unachievable target. Company should motivate them by
giving achievable targets. Moreover, increase their marketing campaign in Gujrawal to give
relief to sales team.