Increasing Circuit City sales through gift card-based employee incentives

Mock Grant Proposal

We are supposed to pick a current problem area at work, describe the problem and propose a solution to that problem. It is a proposal for research that I would like to do and does not involve running subjects or analyzing data.

The problem I chose for a work situation is poor sales performance and the research I would like to do is for which solution will increase motivation to sell and prove the most effective in increasing sales. Some possible examples of different solutions could be increased incentives (bonuses, contests, etc.)

or more thorough training programs.

The object of the paper is to pretend you are running the experiment and are testing a hypothesis you have developed. It needs to be written in standard APA

format. It will have a title page, abstract, intro, method, results, references, and expenditures section.

references to past relevant research articles (peer reviewed) must be incorporated in the intro portion of the paper.

here is the breakdown of what is needed in each section:

Proposal for a Sales Employee Motivation Plan: Gift Card-Based Incentives for Circuit City Retail Employees in a Major City

Course Number and Section

Abstract

The problem addressed within this pilot project is that, for the past six months (February 2005 through July 2005) sales at the Circuit City Stores in my city have been declining. Specifically, total sales revenue on average, between February 2005 and July 2005 have ranged from 4.2% lower to 7.7% lower, than sales during those six months in 2004. Construction has been going on near some of the stores (many roads, on-ramps, and off-ramps are currently being constructed or reconstructed throughout the city), making access at some stores. However, sales are slow at all stores. Further, managers of all five stores have been reporting that sales force morale is low. Further, absenteeism and employee turnover have been higher than usual in the past five months. Recently, for those reasons the Corporation 0 ffice set aside "Idea Grant" funds for managers, assistant managers, and management trainees who have ideas about how to increase sales throughout the city. For my proposed project, I would like to implement, city-wide, on a trial basis, a month-long Gift Card Bonus Program, in order to ascertain whether gift card incentives, in $25 increments for each $1,000 in sales, would help to boost Circuit City sales overall at stores in my area.

The method used for the project will be quantitative. Total sales revenue for the month would be tracked, and then compared, with that of the same months in 2004, and also with average sales each month for the first 6 months of 2005, to ascertain whether the Gift Card Bonus Incentive Program could benefit Circuit City sales, overall, in my city on a permanent basis. The hypothesis for the proposed study is that for the month that the Gift Card Bonus Incentive Program is in place, sales per employee, and overall sales, will increase.

Introduction

Research Methods

Research methods for the study will be quantitative in nature. Research methods will consist, first, of gathering quantitative data comparing sales figures of all five Circuit City stores within the past six months (February through July 2005), second, comparing them with sales figures for those same six months in 2004, and third, comparing those figures with the sales figures, for separate stores and citywide, during the month that the trial Gift Card Incentive Program was in place.

Procedures. Procedures for the study will be that all sales employees at each of the five stores participating in the pilot project will be given an incentive of a $25 gift card, for every $2,500.00, to either Target; Pet Smart; Home Depot; Applebee's; Wal-Mart; or Blockbuster Video for each $2,500 worth of merchandise sold that month. During the month, sales will be tracked, on both a per-store and a per-employee basis, in order to ascertain, at the end of the month, if sales per employee and per store increased as a result of the month-long trial Gift Card Incentive Program.

Research design. The research design for the study is that of a developmental model of an incentive program designed to motivate sales personnel of five Circuit City stories, within the same city. All five stores are currently experiencing decreased sales. The proposed developmental model in progress will be used to determine the efficacy, for the employees of these five stores, of using gift card incentives to increase sales, among employees and at all five stores.

Independent variables. There are three independent variables for the study. These three independent variables are:

The types of gift cards

The amounts gift cards are worth

The amount of sales necessary to receive gift cards

Dependent variables. There are three dependent variables for the study. These three dependent variables are:

Number of employees who make sales goals entitling them to gift cards

Amount of sales per employee

Amount of sales per store

Confounding variables. There are four confounding variables of the study. These four confounding variables are:

Individual motivation levels of employees

Employee desire to receive types of gift cards offered

Non-job related employee reasons for lack of sales motivation

Reasons besides lack of employee motivation for weak sales.

Study participants. Participants in the study will be employees of all five Circuit City stores within the city. These stores and names of their managers are listed below:

Store 1 (Manager: Kushica Ahlers)

Store 2 (Manager: Jona Crandall)

Store 3 (Manager: Davis Clayton)

Store 4 (Manager: Mitch Jowers)

Store 5 (Manager: Jeon Ju Kim)

Results

The hypothesis for the study was that for the month that the Gift Card Bonus Incentive Program is in place, sales per employee, and overall sales, will increase from previous months this year. Confounding variables within the study were: (1) Individual motivation levels of employees; (2) Employee desire to receive types of gift cards offered; (3) Non-job related employee reasons for lack of sales motivation; (4) Reasons besides lack of employee motivation for weak sales.

Follow-up studies of this one might include (1) additional, longer studies of Circuit City employee motivation within these stores using gift card incentives; (2) comparative studies of Circuit City sales performance, within stores and/or across stores and regions, with some employees in some stores, areas, or regions receiving incentives and others not receiving them; and (3) studies of Circuit City employee sales performance using other types of incentives; and (4) studies of Circuit City employee sales performance using negative incentives.