Clef Company: Turnover

Frank V. Cespedes

Teaching Note | HBS Case Collection | October 2015

Clef Company: Turnover

Abstract

Clef Company sells keys and other products to retail outlets, which then sell these products to consumers. The case concerns turnover in Clef's sales force in the context of company strategy, financial performance, and a day in the life of a Clef salesperson. Among other things, the case is about managing people but also a certain aggregate call capacity. It illustrates important links (in many companies, not just Clef) between consumer buying behavior, a firm's strategy, and the role of personal selling in that strategy. In turn, analysis of those links places the turnover issue in a new light while raising additional issues concerning the human-resource implications of management's (very profitable) sales policies.

Keywords: Sales; Marketing; Strategy; Marketing Strategy; Performance Evaluation; Retail Industry; Consumer Products Industry; United States;

Language: English

Format: Print

15 pages

Purchase

Citation:

Cespedes, Frank V. "Clef Company: Turnover." Harvard Business School Teaching Note 816-046, October 2015.

Fred Shilmover and Sam Clemens prepared for their fourth quarter board meeting. They were excited to have scaled their software startup, InsightSquared, to $2 million in revenue and secured an $8 million round of venture capital. However, they disagreed on the path ahead, specifically on the sales and marketing plan. Shilmover preferred a sales-centric approach to growth while Clemens preferred a marketing-centric one. Which strategy was optimal for their venture’s next phase of growth?

Shindigz provides party and celebratory items for various occasions and events through its branded online channel, through third-party retail and wholesale channels, and external online marketplaces. The case focuses on pricing challenges facing a venture with an historically premium-priced strategy in an ecommerce environment where promotions and discounts have become the norm. The case concerns the interaction of branding, channel, and pricing in a firm as well as the impact of Amazon Prime on consumer expectations for “free” shipping from vendors.

In 2011, Canibal launched a machine that could sort and compress aluminum cans, plastic bottles, and cups. Users could play a jackpot-style game on the machine’s digital display, while disposing of their beverage containers and earning coupons or other rewards. The machine could also display advertising or serve as a communication tool. In 2016, the company's new machine, the i3, had more potential than earlier models, due to enhanced reliability and displays that could allow Canibal to pursue new markets. Benoit Paget, CEO and founder of Canibal, must choose a growth path: which customer segment should he focus on? How should he position his product? What would be the implications of these choices for marketing and sales requirements, pricing, and funding?

Faculty & Research

Clef Company: Turnover

Abstract

Citation:

About the Author

More from the Author