Case study on Pharma Talent - Sales & Distribution Management: Personal Selling & Sales Management

1. SM 4: Sales & Distribution Management: Personal Selling & Sales Management
Group G
Birju Naik | GopinaathV | Mohd Asif Mufti | Prihana Bhasin |
Srimoy Behera | Ronak Shah | Sayani Nandi

2. Scenarios Advantages Disadvantages
Incentive based on only sales 1. Bonus on merit of revenue generated
2. Internal competition amongst sales
representatives to sell more for higher bonus
1. Without much efforts, still some of the sales
representatives will be eligible for bonus
2. No incentive for other activities / efforts
made by sales representatives e.g. building
relationships, increasing outlets, etc.
3. To meet the targets, sales representative
might dump the products
4. It’ll be unfair to those who have been
assigned stores with low sales and beneficial
to those who have high sales store like
Shoppers drug mart
Incentive based on Sales + Product locations 1. This will result in sales representative
pushing for more product location and thus
will help in increasing the awareness
2. Will definitely help in increasing the sales in
long run
1. Sales representative might start focusing
more on Product locations and ignore the
actual sale
2. Might ask the shop owners to display
products only for sake of receiving additional
incentives
Incentive based on calls made to pharmacists,
and the number of pharmacist recommendations
and product availability and display (to patients)
1. It’s an overall approach and will results in
increasing sales in more systematic manner
2. Encourage timely distribution and regular
connect with the shop owners
1. Possibility of fake calls and reporting

3. Recommendations
• Incentives should not be based on only net sales but
should be a combination of various factors and each of
them should be given a percentage of weightage.
• Out of total payout 75% will be paid upfront and 25% will
retained and will be paid at the end of calendar year.
• It should be made mandatory to provide sales receipt and
images of the store.
• It should be a quarterly incentive plan and not monthly
• Suggested Incentive plan as under:
• 1 - $ 5000
• 2 - $ 4000
• 3 - $ 3500
• 4 - $ 3000
• 5 - $ 2500
• 6 - $ 2000
• 7 - $ 1000
Net Sales
30%
Timely
Daily
Reporting
10%Product
Branding
10%
Product
Availibility
25%
Recommen
dation Rate
25%
Incentives basis