Development and implementation of performance based salary system for sales force of Coca Cola Bangladesh

Abstract

Abdul Monem Ltd. is one of the leading business enterprises in context of Bangladesh. Incepted back in 1956, Abdul Monem Ltd. has evolved today as one of the biggest group of industries and is a major player in many industries including beverage industry. Abdul Monem Ltd. acquired the license from Coca Cola Company, USA in 1982 and started their operation in the same year. The turnover of this company is 1000 crore. For many years, Abdul Monem Ltd. enjoyed the privilege of being the lead player of a monopolistic industry since new enterprises begun to join in during the early 90s. The enterprise adopted couple of serious strategic measures to maintain the market leadership and in many cases they succeeded. Abdul Monem Ltd. has successfully created an efficient and loyal distribution channel throughout the nation and has managed to integrate its value chain process both in forward and backward direction. The marketing policy of Abdul Monem Ltd. has always been its weakness which the rivals have always capitalized, but yet, from time to time, Abdul Momen Ltd. showed good level of aggressive moves. Though at current scenario, it is losing its market shares in many fronts to its rivals, it is showing great commitment to its clients and the retailers. The distribution operation of AML Beverage Unit is currently managed through 262 PSR’s (Pre-Sales Representatives) nationally; AML employed them for respective distribution houses. The sales force comprises of PSR (Initially Paid by Distributor and AML provide the bill) and Distributor Sales Representative (Paid by Distributors). AML introduced a standard Salary, Incentive and others benefits for its sales force back in February 2014, which is still maintained without any sort of revision. Company has grown its business by 40% but there was no increment in their salary for last 3 years. PSR attrition rate was as high as 50% in 2016. With this poor retention of qualified people in the field company is struggling to manage its Annual Business Plan – Volume Target Committed to Coca Cola. To achieve the vision of the beverage unit, it is high time to revise the salary structure of pre-sellers who basically brings money for the company. In addition to the revision, company needs to ensure a pay for performance model to drive the performance oriented sales culture.