Sales Territory Design: An Exercise



Case Code : CLMM131
Publication date : 2017
Period : 2016 - 2017
Subject : Marketing Management
Industry : FMCG
Organization :-
Length : 5 pages
Teaching Note : Available
Country : India


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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

Hushtek Corporation, a European FMCG company which was involved in selling detergents brands, entered the Indian market. The company wanted to gain a foothold in southern India before expanding to other parts of the country. A priority for the company was to enter Telangana state for which it recruited Mr. Desai as head of sales operations for the state. Desai’s immediate priority was to design the sales territories for the state of Telangana and recruit salespeople accordingly and present it to the country head. As an initial and immediate assignment, Desai had to design sales territories in one of the districts, Nizamabad. The case provides an overview of how a sales manager plans to design territories and the factors one needs to consider while designing sales territories and ensuring market coverage


» Understand the issues and challenges in designing sales territories.
» Familiarize the student with the ‘Built-up Method’ or ‘Work-load method’ adopted for designing sales territories and the process.
» Understand the concepts of sales potential, primary and secondary sales, types of channel, and market potential, along with the nuances of dealer management, market coverage, etc..
» Stimulate discussion on what could be a better way of managing the organization’s sales efforts and market opportunities.


Early in the morning on February 2, 2016, Mr. Baker, the Country Head of Hushtek Corporation, called Mr. Desai, the newly appointed Head-Sales of the South Indian state of Telangana, on the telephone to discuss and finalize issues related to the launch of Hushtek Brands in his territories. Baker planned to initiate the sales operations in Telangana state depending on how quickly Desai prepared the blueprint for the launch. The essence of Baker’s phone call was to get an update on the territory design. Two months earlier, Baker had presented his action plan to his boss in which he had indicated that the territory design for the state of Telangana would be completed by the end of February 2016. Baker felt that before proceeding with the appointment of channel partners, the territories had to designed and assigned. With Baker indicating on the phone that he was going to call Desai for a meeting on February 26 to review the progress, Desai had his task cut out for him. He started building up the logic for designing the territories that made business sense as well as fulfilled market coverage...

Key words:
Sales Territory Design; ‘Built-up Method’; ‘Work-load method’; Sales Management; Sales Force Management; Distribution management; FMCG">

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