Milton Bradley company

Develop a PPT presentation for a case about the Milton Bradley company.  Your assignment is to develop a sales plan to sell a new board game.   Use all of the information and concepts that we cover in class as part of your analysis.   Feel free to do outside research if you think it would help your analysis.     There are a number of issues for you to consider, including:

  • Ethics
  • Compensation
  • Size of the sales force
  • key account planning
  • Selling techniques
  • Other topics we covered in the course

Here is more detailed information for you:

Situation Description: 

The R&D group at Milton Bradley (MB) Corporation, a global company that makes toys and games, has come up with a new online and board game called “Can you Graduate from Business School?”  The game requires the players to make decisions over a 2-year period that a typical business school student faces – e.g., difficult assignments, unpredictable professors, endless parties, increases in living expenses, etc. The channel for the new game will be both the “bricks & mortar” retail stores as well as the online sellers. Examples of potential channel partners for the physical board game will include department stores, toy stores, department stores near colleges, and online websites like Amazon and Pogo.  In addition, MB will create and sell a mobile app of the game.

Assignment:  

As VP of Sales for MB, develop an outline for a presentation to the company’s executive team explaining your plan to generate $3,750,000 million in incremental sales from this new game prior to and during the upcoming Christmas holiday season.  The suggested retail price would be $24.99 and the wholesale price would be $15.  The total cost for selling the new game is estimated to be 20% of total revenues.

Here are some additional facts and issues to consider:

  • MB sells its products through bricks and mortar stores in all of North America, 8 countries in South America, 80% of the European countries, and mainly India, China, Australia and New Zealand in Asia Pacific.  For this analysis, only consider sales in the US.
  • The company has:
    • 30 telesales – About half their time would be allocated to selling the new game.  They sell to small gift shops, boutiques and toy stores and normally generate 20-25% of total sales, and supplying the agents with leads.
    • 25 key account directors —  They sell to the large department stores i.e., WalMart and Target) and wholesale clubs (i.e., Costco) and normally generate at least 50% of total sales.
    • Indirect agents — The total cost for the agents would be 20% of wholesale price per game.   They normally sell to small shops,  colleges and universities and generate 25-30% of sales and follow up on telesales leads.
  • Average compensation for the sales force includes:
    • Agents: $100-140K
    • Telesales: $65-85K
    • Key account directors: $120-160K
  • The best performing sales teams make it into the President’s Club and take a trip to a vacation destination with other salespeople in their region.
  • Both sales management as well as the sales staff will need to have customized sales tools, training and systems. The channel partners need to be linked into these tools and systems, also.
  • Sales leadership will need to work closely with marketing in the go-to-market plan; sales will need some marketing support, and marketing will likely need some input from sales in order to be able to design an effective campaign
  • Sales leadership will need a plan to work with all of the different departments within MB.
  • The sales campaign and responsibilities will need to reflect the sales organization; consider what would the best way to organize the sales force.

Apply as many concepts and tools that you learn in during the course to come up with your sales management strategy.  Feel free to address other issues that aren’t bulleted above if you think they are relevant and important.    Also, make as many assumptions as you want – just make a note in your presentation about the assumptions.   Don’t let a lack of information stop you from putting a thoughtful plan together.

Prepare a PPT presentation  with 15- 20 slides.    You can put additional slides in an appendix if you want to. 

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