Disadvantages of appointing manufacturer representatives

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Reference no: EM132897647

Tata Timken markets heavy equipment ball bearing in India. They had a countrywide sales network of 120 salespeople but the sales were stagnant and the organization was in the red. As a restructuring practice, the company decided to follow a different selling model and fired the entire sales staff. They appointed 55 independent manufacturer's representatives. Manufacturer's representatives were not employed in the company and they sold goods of other companies as well. The representatives sold various other items with the ball bearing equipments. The sales picked up, old customers came back to the company, and new customers also started buying. What reasons can be attributed to this development? What were the advantages and disadvantages of appointing manufacturer's representatives compared to the company's salespeople?

Reference no: EM132897647

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