Strategy development.

1. How to increase Big Pharma’s sales
effectiveness.
Marek Golebiowski
@StoryReasoner
PROPRIETARY
Any use of this material without specific permission of Marek Golebiowski is strictly prohibited

2. Copyright©MarekGolebiowski.Allrightsreserved.
Contents
2
How to increase Big Pharma’s sales effectiveness:
I. Data Sources
II. Gross Profit Square & Pyramid
III. Selling/Rapport & “Hunting”time
IV. Strategic SKUs
V. Pocket Price
VI. Sales Effectiveness
VII. Work Plan

3. Copyright©MarekGolebiowski.Allrightsreserved.
Data Sources
3
Data
Sources
Paid Market data
Field Work
Partial Market
Euromonitor Report : Vitamin &
Dietary Supplements in 2014
PMR Report : Dietary Supplements market
in 2014
External
Employees Interviews:
Room Access Required!
Interviews
Sales Director
Marketing Director
Finance Director
Production Director
System X
Financial/Accounting Reports
System Y
Salesman
Trips
Internal
Secondary
Primary

4. Copyright©MarekGolebiowski.Allrightsreserved.
Gross Profit Square & Pyramid
4
“Hunting”
Selling/
Rapport
Highest
Margin
NPD
Volume
Travel
Expenses
(2)StrategicSKUs
(1) Selling Time
(4)Effectiveness
(3) Pocket Price
Price Support
Discounts
Performance
Discounts
Customer
Marketing
(1)
(2)
(3)
(4)

5. Copyright©MarekGolebiowski.Allrightsreserved.
Selling/Rapport & “Hunting” time
5
Salesman
Time
“Hunting”
“Farming”
Calls
Average
Distance
Customers
Visited
Traveling
Regular
Orders
Answering
Questions
Selling/
Rapport
Face Time Small/Big
Accounts
New/Old
Products
Maximize Selling/Relationship
Building Time
Maximize Selling/Relationship
Building Time

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Strategic SKUs
6
Strategic Sales Objectives: Product Type, Volume, Net Price.
Market
Share
Price
Volume
1+Market Value
Growth in %
1+Market Share
Growth in %%
Sales
Growth
Market
Value
Market Share
Growth
Strategic
SKUs
Other SKUs
Price
Volume
Highest
Margin
NPD
Competitor’s
Stockouts
Cheaper
Alternative
Net Sales = Gross Sales - Returns
Net Sales =Market Value
Maximize Strategic SKUs

7. Copyright©MarekGolebiowski.Allrightsreserved.
Pocket Price
7
Diet System Problem’s Solution
PharmaciesOtherPOS
PMR
Euromonitor
Volume
Segmentation
Price
Waterfall
Market
Value
Net
Price
Performance
Discounts
Contract
Price
Retail
Price
Retailer’s/
Wholesaler’s
Margin
Big Pharma’s
Price
Price
Support/
Discounts
Customer
Marketing
Pocket
Price
Maximize Pocket Price

8. Copyright©MarekGolebiowski.Allrightsreserved.
Sales Effectiveness
8
Historic Performance 2009-2014
Fuel
Car Repairs
Underlying
Metric
Commission
Bracket
Gross Profit
[Output]
Sales Costs
[Input]
Sales Force
Effectiveness
Base Salary
Commission
Travel
Expenses
Net Sales
COGS
Volume
Price
Maximize Volume
Minimize Travel
Expenses

9. Copyright©MarekGolebiowski.Allrightsreserved. Work Plan
9
Hypothesis Analyses Data Sources End Product Days
(1)Can we increase Gross
Profit by increasing
Selling Time?
(2)Can we increase Gross
Profit by focusing on
Strategic SKUs?
(3)Can we increase Gross
Profit by changing
pricing?
(4)Can we increase Sales
Force Effectiveness by
increasing sales volume
and decreasing average
travel distance?
Salesman Time
breakdown: Selling vs.
Non sales activities
Strategic SKUs
identification: Highest
Margin, New Products
development.
Retail Price Breakdown:
Retailer’s Margin, Price
Support Discounts,
Performance Discounts,
Customer Marketing
Individual Salesmen
Effectiveness Dissection
Sales & Marketing
Directors Interviews
(2x2x1h), Salesmen Field
Trips (2 whole days)
Finance, Production
Directors, Sales, Marketing
Interviews
(4x2x1h), Systems X and
Y, Production Costs
Reports, Finance,
Accounting Department,
PMR, Euromonitor
Reports
Systems X and Y, Finance,
Accounting Department
Systems X and Y,
Salesman Commission
Policy& Master
Employment Contract
Salesman Time Chart
(2)A - Strategic SKUs
Profitability Waterfall
Chart
(2) B - Strategic SKUs
Volume Charts vs. Non-
strategic
(3) A Pocket Price
Waterfall
(3) B Pocket Price vs.
Market Segment
(3) C Pocket Price vs.
Distribution Channel
(4) A Salesman
Effectiveness Chart
(4) B Loop Back/Forward
to (1)-(3) : List
X days
Y days
Z days
Q days
---------------------
T days