Transport Corporation of India (A): The Cross-selling Conundrum
Transport Corporation of India was a logistics company that provided multi-modal transport solutions to its customers. Set up in 1958, TCI had grown from a one man, one truck, one office' set-up to a company with revenues of $400 million in half a century. TCI's growth had been assisted by the creation of individual divisions that provided specialized services to its clients - Freight, Express, Supply Chain Solutions, Seaways and Global. In 2012, the company renewed it efforts to foster cross-selling across the divisions with the hope that this would increase customer-stickiness and foster growth. However, as the company tried to push the cross-selling agenda across its various divisions, it faced myriad issues. It needed to educate its divisional sales-staff about the services provided by divisions other than their own; to motivate them to cross-sell; and to create intra-division confidence to facilitate cross-selling. While the Joint Managing director, Vineet Agarwal, under the guidance of his father D.P. Agarwal, Vice-Chairman and Managing Director, TCI, and in conjunction with TCI's Executive Committee, had introduced initiatives like training across divisions, competitions on cross-selling, and tracking of cross-selling leads, he was not sure that these were enough. Were there other ways in which TCI could successfully cross-sell? Could they put in place a system that specifically incentivized cross-sales to motivate sales staff? The (A) case focuses on TCI's cross-selling efforts and the strategic decisions before it. Cases (B), (C), and (D) discuss specific situations that demonstrate issues related to the cross-selling initiative.