Professional Documents
Culture Documents
Outline
Background
Business
Case Issues
Analysis
Business
Solution
Problems
Company History
Radio-equipment retailer in 1935.
In the 1950s and 1960s, Arrow began
selling electronic components.
1977- main distributor in the United States
Industry growth in the 1970s
Growth from regional to national company
1993- Arrow had the highest sales in North
America.
Offerings
Competition
Sales Force Structure
Sales Force Compensation
Sales Strategy
Other Sales Force Issues
Customers
Arrow
Market Offerings
Extensive
relationships with
customers
Handled the suppliers goods.
Access to thousands of products from
hundreds of suppliers
Competition
Around
1) Commercial Semiconductors
2) Military and aerospace semiconductors
3) Passive and connector products
4) Computer systems, peripherals, and software
Sales Force divided into geographic divisions
-Each of which had a Branch Sales Office
Inside Sales
Manager
Marketing
Manager
Product Managers
(3-6)
Admin
Manager
Admin
Personnel
Manager (GM)
Field Sales Representatives (FSRs)
Sales and Marketing Representatives
(SMRs)
Product Managers (PMs)
Compensation
Average yearly
income
General Managers
(GM)
35% of salary is
bonus based on
branch performance
(measured by
operating profit)
$60,000-$120,000
Field Sales
Representatives
(FSR)
$300/week draw
against a commission
(8% of gross profit
dollars shipped to the
FSRs customers)
$60,000-$80,000
Paid entirely on
commission, earned
4-5% of gross margin
dollars generated
$40,000-$50,000
Product Managers
(PM)
25% of compensation
based on sales &
gross margin of
product lines
$35,000-$75,000
Sales Strategy
Relationship
based selling
- Sales strongly tied to individual
FSRs relationship with suppliers
-Sales Force of 300 people with no
formal sales training
-Sales Force used a lot of T & E
Sprout Background
Arrow
Objectives of Sprout
Training
Upgrade
professionalism of sales
force by hiring kids and molding
them into modern salespeople
Teach classic sales skills
Teach how to manage territory, cold
calss, overcoming objections, and
how to close sale
First Steps
Train
Sprouts Training
Went
Sprouts Compensation
New
Recruits - $18,500
First year Sprouts - $24,000
Second year Sprouts - $27,000
Competitors
- 30 to 60 percent more
Business Problems
Turnover
Rate
Arrow/Industry?
Initial Sprout Training
Existing/New Salesforce
Modified Sprout Training
Competitors move in on Sprouts
Solutions
Company
Loyalty
Regional
National
Compensation
Training