Latrobe Valley Product Gallery Trade Fair Services

Discuss about the Latrobe Valley Product Gallery.

Latrobe Valley Product Gallery (LVPG) is in the business of conducting trade fairs for a variety of customers. They are assisted by sales representatives whose job is to sell space to the customer in the stand and spend time with them for providing value added services. Services include a) Exhibitor stand organized b) Exhibitor travel arrangements c) Exhibitor accommodation arrangements d) Exhibitor marketing material organized e) Exhibitor hospitality organized. Customers pay for these services in the form of fees. In addition LVPG gets commission for ticket sales and space sold. For the work the sales representative gets wages and commission as a % of space sold.

The analysis below contains information on the following

Analysis of the profit mix Sales representative wise trade fair wise

Analysis of the time spent by customer mix Sales representative wise trade fair wise

Analysis of the components of income generated by each sales representative for LVPG

Analysis of the components of expensed generated by each sales representative for LVPG

Findings and Discussion

Analysis of the sales mix Sales representative wise trade fair wise

The data shows that 84% of the profit comes from Books, Clothing, Computing, Food, Furniture, HRM and Wine with Wine and Food contributing the highest mix of profits at 19% each. The best sales persons generating this profit include Kylie and Shane whose total contribution to profit is 75%.

Sum of Profit (AUD)	Sales Representative
Trade Fair	Jarrah	Kylie	Shane	Sheila	Grand Total	Profit	Mix
Books		2,503	3,858		6,361	6,361	8%
Builders				3,805	3,805	3,805	5%
Clothing		3,410	6,150		9,560	9,560	12%
Computing		2,393	3,121	2,840	8,354	8,354	10%
Food	1,792	8,624	4,403	350	15,169	15,169	19%
Furniture		1,517	1,586	3,783	6,886	6,886	9%
Government		1,042	805	1,479	3,325	3,325	4%
HRM	2,977	1,267	1,995		6,239	6,239	8%
Manufacturing		544		663	1,207	1,207	1%
Sports		1,505	991	257	2,753	2,753	3%
Vehicles				2,016	2,016	2,016	2%
Wine		7,469	7,441	271	15,181	15,181	19%
Grand Total	4,769	30,274	30,349	15,463	80,855	80,855	100%

Profit	4,769	30,274	30,349	15,463	80,855
Mix	6%	37%	38%	19%	100%

Analysis of the time spent by customer mix Sales representative wise trade fair wise

The data shows that 73% of the time is spent in Clothing, Computing, Food, HRM and Wine. Here as well, Kylie and Shane have spent the maximum time 70% of the total hours spent by all sales representative. This data also shows that higher the time spent will generate higher profits since the trade fairs overlap the mix of time spent

Sum of Time spent by Sales Representative to complete sale (hours)	Column Labels
Row Labels	Jarrah	Kylie	Shane	Sheila	Grand Total	Time spent (Hours)	Mix
Books		1.58	1.17		2.75	2.75	4%
Builders				2.22	2.22	2.22	4%
Clothing		4.37	4.72		9.08	9.08	14%
Computing		0.93	2.02	5.28	8.23	8.23	13%
Food	1.37	5.63	4.50	0.77	12.27	12.27	20%
Furniture		0.82	0.65	2.73	4.20	4.20	7%
Government		0.45	0.22	0.75	1.42	1.42	2%
HRM	2.13	1.98	0.98		5.10	5.10	8%
Manufacturing		0.77		0.78	1.55	1.55	2%
Sports		1.78	0.87	0.42	3.07	3.07	5%
Vehicles				1.88	1.88	1.88	3%
Wine		5.53	4.62	0.75	10.90	10.90	17%
Grand Total	3.50	23.85	19.73	15.58	62.67	62.67	100%
Time spent hours	3.50	23.85	19.73	15.58	62.67
Mix	6%	38%	31%	25%	100%

Best 5 customers and worst 5 customers

Further analysis shows that the best 5 customers and worst 5 customers in terms of revenue generating are

Top 5	Sum of Total income (AUD)
bluetailwines	2030
jobsrus	2162
magazone	2372
onlyscotchco	2056
readit	2336
Grand Total	10956

Bottom 5	Sum of Total income (AUD)
berrydrinkco	418
BobsBits	440
Hick!	226
made4u	308
plonk2u	138
Grand Total	1530

Similarly, the best and the worst trade fair is as under

Best	Sum of Profit (AUD)	Worst	Sum of Profit (AUD)
Wine	15,181	Manufacturing	1,207
Grand Total	15,181	Grand Total	1,207

The best and the worst sales representative in terms of profit is as under

Best	Sum of Profit (AUD)	Worst	Sum of Profit (AUD)
Shane	30,349	Jarrah	4,769
Grand Total	30,349	Grand Total	4,769

Assuming an increase of 40% in the wages, the fall in profit will be only 2% or $ 1253

	Current Rate	New Rate	Change
Wages rate	50	70	20
Wages total	3133	4387	1253
Profit	80,855	79601
Fall in profit		-2%

Based on the above, LVPG has to concentrate on Wine Trade fair and the best customers to focus on are bluetailwines, jobsrus, magazine, onlyscotchco, readit

To improve decision making, the following extra information can be collected

The profit per hour spent by the sales representative. Since the driver is number of hours spent and it is positively correlated to profit generated, this metric will be very useful
The commission given to sales representative as a % of the profit generated by them. This will help in incentivizing those sales representatives who contribute more profit.

For record keeping and improvement in quality of data collection and management, swipe machines can be used by LVPG which will record the time spent by the slaes representatives. This will save in manual tabulation of data.

LVPG has to keep a bucket wise % fee to sales representative. Thus at higher levels of income generated by the sales rep more % should be given to them to motivate them to perform better. Similarly, laggards should be penalized by putting lower % at lower buckets. Currently, the company gives same % of fees to all sales representatives.

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