IPM grew at a CAGR OF 17.5% between 2005 -2016 The maeket Projected to reach 55 billion in sales by 2020 with a CAGR of 16 % The growth was driven by factors such as increase consumer spending, rapid urbanization etc Branded products constituted nearly 80% of the Indian pharmaceutical industry in terms of revenues Equity master report ranked India 3rd in terms of volume and 13th in terms of value to become the 6th largest in terms of absolute value by 2020

1. PRECIA PHARMA:
PROMOTING ETHICAL
SALES PRACTICES
Group 6:
Hiranmayi: 21019
Krishna Ganapathy P B: 21022
Tanvi Mundra:21116
Thejas S:21117
Shubham Sanjay Chavan:21165
Sumukh R Prasad:21168
Submitted to : Jaya Krishnan S
SALES AND DISTRIBUTION MANAGEMENT

2. Industry Analysis
 IPM grew at a CAGR OF 17.5% between 2005 -
2016
 The maeket Projected to reach 55 billion in sales
by 2020 with a CAGR of 16 %
 The growth was driven by factors such as
increase consumer spending, rapid urbanization
etc
 Branded products constituted nearly 80% of the
Indian pharmaceutical industry in terms of
revenues
 Equity master report ranked India 3rd in terms of
volume and 13th in terms of value to become the
6th largest in terms of absolute value by 2020

3. INTRODUCTION
 Generic pharma company founded by Sanjay Pawar in
2010
 Based in Thane, Maharashtra; covering Western and
Southern India through a network of 300 distributors
 Product line includes Diabetic, Gastropathy, Neuropathy,
Obesity and Cardiovascular generic drugs
 22 product lines in 7 years – rapid growth

4. VALUES AND
POLICIES IN
PRECIA
PHARMA
 Founder Sanjay Pawar is a reputed leader in
Indian pharma industry; known for his
integrity and business acumen
 Pawar knew that increasing the efficiency
and effectiveness of sales force was crucial
to the growth
 Importance of hiring the right set of people
to be Marketing Executives (ME)
 Sales team had to be leaner, meaner and
strong in one on-one interaction with the
physicians
 He believed in ethical sales practices and
that the key driver to growth was an
effective sales-force strategy
Its okay if monthly targets are
accomplished ,but unethical
practices were not accepted

5. RECRUITMENT
CRITERIA
• Young, ambitious, flexible
• Strong communication skills
• Adaptive selling skills
• Science to market their product

6. LOGISTICS
PRODUCTION
DEPARTMENT
CENTRAL
WAREHOUSE
C & F AGENTS
DISTRIBUTORS RETAIL CUSTOMERS

7. SALES
MANAGEMENT
• Pawar had 23 years of experience in the pharmaceutical
industry
• Ethical sales practices
• Sales force strategy
• Raised the effectiveness of the sales team
• Strong product range and dedication to the advancement
and development of staff

8. SALES
ORGANIZATION
• Precia’s sales team
• Its legendary sales and product training
• The company has 28 ABLs reporting to eight
RBLs who in turn reported to the sales manager
• Sales team was trained to provide better customer
focus

9. ROLE OF
MARKETING
EXECUTIVES
• Required to have sound product knowledge
and good selling skills
• Dual role of agent and advisor
• ME’s job was to deliver company’s
marketing message to physicians,
distributors, and retail pharmacies
• Played the role of brand ambassadors in the
field
• Responsible for both demand creation and
fulfillment

10. SALES PROCESS
• Pharmaceutical selling was based on missionary selling
• Missionary salespeople
• Sales-force automation (SFA) software by GoGreenSFA
• Disciplined and planned calling system
• The company heldquarterly sales meetings

11. SALES TARGET
Yearly targets were based on the industry and segment
growth and previous year’s sales.
QTQ Technique
ABLs and RBLs guided MEs to achieve targets.
Precia offered performance-linked incentives.

12. POLICIES FOR
CHANNEL PARTNERS
10-20% margins
offered to
distributor and
20-30% margins
offered to the
retailers,
depending on
the product
category.
Sales
promotion
activities.
Credit policy
was based on
the location of
the distributor.
Precia followed
a proactive
relationship
management
policy.

13. PROMOTION TO
PHYSICIANS
Precia believed in ethical
promotion to physicians and
emphasized good customer
relationship management as
the core of selling strategy.
The different promotional
resources used by Precia for
physicians were as follows:
Physician’s Samples
Academic Initiative for
Physicians
Patient Program

14. ISSUES
• Market Issues
• Extensive Pressure on Sales Representatives
• “At any cost” approach
• False Expiry/Breakage claims
• Additional Credit Period in order to take orders of huge
amounts
• Providing physician samples to Distributors and Retailors
• Intra-Competition
• Unethical Practices
• Lack of Employee Integrity
• Issue of Quality

15. What strategies could his company adopt
to prevent his sales team from indulging
in unethical selling issues ?
1. Establish a strict code of conduct.
2. Strong leadership.
3. Appreciation/motivation.
4. Adopt to digital platform.
5. Reduce credit policy.
6. Strict auditing.
7. Welcome ethical speaker.
8. Encourage whistle blowers.
9. Hire for values.
10. Shift from quantitative to qualitative.

16. How should Pawar respond to the email from
marketing executive Munish Ladhha ?
1. Thanking him for reporting such unethical practices in the
organisation.
2. Should avoid quick explanation.
3. opportunities to raise their voice.
In the given scenario and keeping in mind the
company’s adherence to each practices, should
Pawar fire David or give him another
opportunity, as suggested by the RBL ?
1. Should talk with David Katoley.
2. Termination/ verbal warning.
3. Warning letter or email is the best option.
4. Further develop strategies that no one repeats the same act
again.

17. Thank you