Poor sales target achievement in american standard project sales team at Lixil Corporation

Abstract

LIXIL Group is a pioneer in housing and water products and the group is considering Vietnam as an important market of LIXIL Group due to the growing of middle class. The corporate philosophy of LIXIL Vietnam is to deliver superior products and services to the customers and therefore contributing to the comfortability and lifestyles of people. However, the project sales performance of the company during 2019 and 2020 was decreased dramatically because of lower sales revenue of American Standard brand at Project Sales Department. Through interviewing relevant stakeholders, using data provided by internal report of the company as well as using related literature review, theories, the author has found out serveral problems such as COVID-19 pandemic, poor target achievement rate of the sales team, poor product quality, lack of communication marketing campaign, and the customer behavior shifting. After validating these potential problems, the main problem is identified as poor sales target achievement. The potential causes are poor employee motivation, poor employee skills, poor role perception, poor work environment. During the interviews with relevant stakeholders and reviewing theories, the main cause is poor employee motivation with sub-cause is less attractive financial motivation. Based on that, the alternative solution related self-selected incentive scheme and sales contest scheme are confirmed by BOD and relevant stakeholders.