Essay About Valley Winery And San Francisco Region

The Valley Winery Case
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Pat Waller, recently hired as sales manager of the San
Francisco regions chain division, was lamenting the
problems he inherited. Despite favorable sales results for
the San Francisco region, turnover was so severe Waller
could not understand how sales increased during the past
several years. He was surprised to learn the average sales
rep had been with the San Francisco division of Valley
Winery for only seven months and sales force turnover
neared 100 percent a year. In fact, only one sales rep had
more than two years experience. Waller had heard that
high turnover was a problem nationwide but did not expect
such high figures for San Francisco.
Waller supervises two area managers, who in turn direct
nine district managers. District managers supervise
five to six sales reps, of which there are 50 in the San
Francisco division. Approximately 50 new sales reps are
hired each year, but the sales force size remains relatively
constant. Waller knew the increased competitiveness
in the market would make it more difficult to
continue to obtain future sales increases. The excessive
turnover problem would command immediate attention.
THE COMPANY
The Valley Winery, founded in 1933 inNapa, California,
is the largest domestic producer of wine in the United
States. Started with only a $7,500 investment at the end
of Prohibition, it has become the leading producer of
low-priced, consistent-quality wines. Favorite brands include
Santo Key and Valley premium table wines, Astral
sparkling wines, Valley brandy, and most recently the
Cool Valley line of wine coolers. As is true with most
other wineries, Valley produces a low-grade, fortified
sherry known in the streets as “Sneaky Pete.” This product
appeals to a small market niche and receives virtually
no marketing support. The Valley name does not even
appear on the label, a practice followed by other wineries
as well. Brand names for this low-end product include
Snake-Eye, 20/20, and Acey-Deucy. Valley also bottles