This case concerns the bonus structure for a representative sales team. Pharma Talent, a contract sales company for pharmaceutical companies across Canada, promised its clients that its representatives would drive sales at a lower cost than what the client would incur if it had its own sales force. Historically, it had contracts with products that targeted physicians (e.g., prescription drugs or medical devices); however, a new contract in Ontario involved an over-the-counter (OTC) product. Pharma Talent currently had a pay-for-performance bonus structure that had already been revised three times. Nevertheless, due to the structure of the different territories in Ontario, many sales team members thought the bonus was unfair and very discouraging, while its pay-for-performance structure did not meet the clients' needs.
Since 1988, Nouveau Event Planning has been operating the largest wedding expo in Windsor, Canada, an event called the Wedding Extravaganza. In 2001, the Wedding Odyssey became the second wedding expo in Windsor, and started to pose a significant threat to the Wedding Extravaganza. Now in 2011, the owner of Nouveau Event Planning must make strategic decisions involving pricing, customer retention, and selection of an appropriate target market. She must also determine the best course of action for the exhibition through analysis of the competitive landscape and future potential of the wedding industry.
The owner of Inspiratica Web Services was about to graduate from university and devote all his time to his web design and hosting company. Since Inspiratica’s founding in 2006, annual sales had gone from a few thousand dollars to nearly $100,000. Furthermore, it had hired six staff and expanded its product offering to a complete web services package. However, the owner was scrutinizing the company’s product portfolio and wondering which products and target markets had the most potential for success. Most customers had been acquired through word of mouth, but new ways were needed to expand the company’s client base. Finally, he wondered if Inspiratica’s strategy of premium pricing for high quality was the best option for the future.