Optimizing Sales Force Levels for Gamesa
Client: Frito Lay
Team: Rodrigo Cantu, Sergio Hueck, Rafael Virzi
Faculty Advisor: Dr. Barr
Year: 2012
Documents: Presentation, Report, Video
Gamesa, a subsidiary of Frito-Lay, is a Mexican Cookie company that sells its product in many different countries, including the United States. Their products, which includes different types of cookies and crackers, are targeted to the Mexican population. The company’s United States sales force consists of 38 representatives in 16 different regions, organized by their different routes to market, location of warehouses, and population density. Today, they dominate the U.s. Hispanic cookie market occupying 50 percent of the market.
The problem we address for Gamesa is: should they should deploy more sales representatives and, if so, where would their optimal locations be? With the current economic recession and the entering of Gamesa’s main competitor, Bimbo, sales have been dropping in the different regions. This resulted in Gamesa asking themselves if they needed a bigger sales force. They also wanted to know what regions could be good to add representatives in the future depending on the migration of the population or the strategy of the competition. We used different types of data to come up with a solution. Our three main data point that we focused on were the Mexican population throughout the US, Gamesa’s Sales, and the number of sales representatives per region. We had to take into account all other factors that could affect our analysis, like the economic recession or the Arizona Immigration Law that affected the Hispanic population in the south.