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Worlds No 1 Research Based Pharmaceutical Company UNDER GUIDANCE OF: PROF. RAHUL G. CHOUDHARY

By Group 1: Abhishek Jaiswal Amit Tehlani Anirudh Tulasiram Karthik N S Sakshi Saxena Tirthank Shetty


PAGE NO. 2 3-5 6 7 7 8 8 9-10 11 12-13 14-15

A. Nature of Sales management B. Levels of Sales manager positions C. Sales objectives and strategies


D. Sales process E. Planning & Sales Forecasting (methods) F. Sales budgetCOMPANY BACKGROUND AND PROFILE process G. Sales territories & methods H. Sales Quotas, Size of sales force Pfizer is worldsStaffing I. Sales force No 1 Research based pharmaceutical company J. Types of sales organization K. Sales training methods & motivations Pfizer Limited is incorporated in New York by cousins Charles Pfizer and Charles L. Expenses plans, audit, and evaluation Erhart in 1849 M. Sales analysis N. Marketing Mix O. Channels Pfizer has its offices and operation in more then 150 countries PFIZER IN FUTURE THANKS AND REGARDS 29 30

COMPANY BACKGROUND AND PROFILE Today Pfizer has about 3 million mix in its medicine library Its revenues for the year 2009 were about US$ 50 billion

It has about 122,000 employees worldwide Pfizer came to India through Dumex Limited in 1950. It had a record turnover of about US$ 172 million by November 2006 In India it has headquarters in Mumbai It has about 2300 employees in India Its State-of-the-Art manufacturing facility is at Thane, Maharashtra One of the highest spenders in pharmaceutical R&D globally Pfizer has made clinical research investments of US$ 6.05 million (November 2009) in India Produces more than 110 different type of products (medicines) for Consumer Health Care Products More than 40 different products for Animal Health Care Becosules (multivitamin) and Corex (cough formulation) are the top brands amongst all pharmaceutical drugs produced in India

KEY PERSON: Ian Read CEO & Chairman of the Board David.L Vice Chairman Frank dAmelio Chief Financial Officer & Sr Vice President Strategy and Business Development and Senior Vice President: William R. Ringo Jr.

5 General Counsel, Corporate Secretary and Senior Vice President: Amy W.

Schulman Chief Communications Officer (CCO) and Senior Vice President: Sally Susman Kewal Handa- Managing Director (India)

Key Products: Aricept Celebrex Diflucan Lipitor tablets Neurontin Norvasc Viagra tablets Xalatan Zithromax Zoloft Pfizer Top Products 2010 Lipitor Prevnar Enbrel (ex-U.S.) Lyrica Viagra Annual Sales (millions) $10,733 3669 3274 3063 1928

COMPITITORS Galxo Smithkline Ranbaxy Matrix Cipla Wanbury Limited

Wockhardt Limited

PFIZER BUSINESS Pfizer is into 2 different businesses: Consumer Health Care Products Animal Health Care Products Over 2,300 employees Rs. 2,573 Lac is III quarters Net Profit in year 2009 comparing to Rs. 3,023 Lac III quarter Net Profit of the year 2008

Prescription Drugs- Pfizer manufactures prescription drugs such as Viagra, Lyrica, Viagra, Dolonex Gel, Ponstan, Citralka Liquid and many more. Consumer Health- It produces over the counter formulations and drugs such as Benadryl cough, Coolmint Listerine Mouthwash, Rashfree, Caladryl, Sloans Balm, etc. Animal Health- It manufactures products for animal care namely Amoxisol, Vanguard 5/L, Stafac, Furea, Qualidrops, Catosal, Bayrocin, Nutrimilk, etc.

ETHICS & CORE VALUES: Pfizer conducts and channelizes itself under various ethics in order to achieve specific goals. Pfizer is committed to participating actively in improving the communities in which they do business. They strongly believe in the spirit of working together for a healthier world. The following are the few ethics which the company believes in: Support our communities Protect your safety and the environment Respect human life and the welfare of animals Respond to all public, media, and government inquiries appropriately

Conduct political activity responsibly Cooperate with our local host governments

VISION We will be recognized for meeting the diverse medical needs of patients in Emerging Markets around the world in an innovative, socially responsible and commercially viable manner.

PFIZER STANDARDS As a Pfizer colleague, one shares the privilege and responsibility of upholding the Companys honourable reputation. You do this each time you act ethically and legally. While such conduct may be second nature, there are many situations where making the right choice can be challenging. It is a guide to the Companys compliance structure, applicable laws, and key policies and procedures that govern doing business in a legal and ethical manner. Performing with integrity and adhering to compliance standards is a shared responsibility between the Company and employees. The Company is responsible for defining how Pfizer will comply with applicable laws and regulations (through systems, policies, and procedures); monitoring efforts; and correcting any non-compliance. Pfizer also holds its vendors and contractors to high standards. Vendors and contractors are expected to comply with all policies that relate to work conducted on Pfizers behalf. All employees are subject to the laws and regulations of the country where they work.

PERFORMANCE WITH INTIGRITY Pfizer counts on you to uphold the Companys reputation and standards by always performing with integrity. To do so, keep in mind the following guiding principles:
Know and live the standards.

By knowing, understanding, and acting in accordance with Pfizers Values and the applicable laws and Company policies outlined herein, each of us can serve as a role model.

Know the law and ask tough questions. You are expected to be familiar with

the laws that apply to your specific job function and level of responsibility. If

you have any questions, ask your supervisor, a member of the Legal Division, or the Corporate Compliance Group.
Dont make assumptions.

Do not assume that senior management already knows or management doesnt care about this. Also, do not assume that no action will be taken. Pfizer management is dedicated to ensuring that the standards of legal and ethical behaviour are upheld. o In fact, responsible managers are obligated to respond to an employees concerns. Tell us if something is wrong.

Dont ignore violations. We all need to take the law and Company policies

seriously. If you think someone may be violating a law or policy, please take steps to address the situation by speaking with them directly or by notifying your supervisor, Human Resources or the Corporate Compliance Group.
Help improve controls and processes. Some violations may not be easy to

detect within our current controls and processes. If you have a suggestion for improvement, please do not hesitate to make it.
Always act with integrity. You are never expected to violate a law or policy, nor

should you ever feel encouraged or pressured to do so even if the violation will improve the bottom line or help meet a performance goal.

MERGER & ACQUISITION Pfizer acquired Wyeth at approx cost of $ 68 billion in Oct. 2009 Wyeth was into business of antibiotics, gynecological drugs, vaccines and steroids The company recorded revenues of $22,833.9 million during the financial year (FY) ended December 2008, an increase of 1.9% over FY 2007. The net profit was $4,417.8 million in FY 2008 Wyeths market capital of about $ 52 billion in FY 2008 Deal could create billions in cost savings through the combination of backoffice operations, research and development (R&D), sales and manufacturing Handling the intense competition from makers of generic drugs Protection from losing patent protection over the next several years





Pfizer adopts the above mentioned distribution channel which is EXTENSIVE, to make their products reach the end consumer. Initially, the goods are manufactured and are passed on to the CFA, which is an external player who forwards the goods to the Pfizer stockiest and works on a margin basis. Pfizer follows an advance cheque system for delivery of goods. Further, the goods are sent to the retailers, semistockiest and the dispensing doctors. Semi-stockiest are those stockiest which are not Pfizer official stockiest. The doctors who dispense medicines by their own are known as dispensing doctors. Through these people the goods reach the end consumer. Key characteristics of SCM of Pfizer Less inventory cost Optimal utilization of R&D department Decline in manufacturing expenses Less inventory management cost Decline in waste of material



STRENGHTS: Pfizer is a leader in the research-based healthcare industry Its strengths lie in its innovative R&D Marketing strength in major geographical and therapeutic areas Existing Patent protection for a number of years on key products Diversified business Pfizer is market leader in the pharmaceutical sector Brand recognition Pfizer is a trusted & reliable company, which is preferred and suggested by many doctors Known for its integrity, ethics, work culture & standards Follows Open Door Policy Co-branding (antibiotic Trulimax with Becosules) Efficient Sales force Greatest numbers of blockbuster drugs

WEAKNESS: No presence of company people on front end (Medical Representative) Forward distribution channel Decrease in profit by Rs. 450 Lac where as sales increased by Rs. 1,872 Lac (Quarterly figures) Lack of feedback system Lack of Indian management models Products are expensive because of high cost involved in R&D Marketing penetration is less Few Generic products Spends more on R&D than promotional activities They follow global policy (Not local)

Diversity in products is less (As compared to generic market)


OPPORTUNITIES: Large reserves available i.e. Rs. 96,326 Lac Acquisitions & Mergers Developing market (Cost of Production) Emergence of integrated global markets and globalization for new products Only market which is not affected by Recession (Life saving drugs) Huge scope for launching generic products Increase product portfolio by launching generic products By launching generic products cost of product can be reduced, so everybody can afford Pfizer medicines Market share can be increased by merging generic drug company Can launch non medicated products as Personal care, Baby care etc (only few players in market )

THREATS: Major threat is generic market

Poor people cant afford Pfizer products(costly Drugs) High cost on R & D Less expenditure on marketing & sales promotion Application of global policy Limited product portfolio Market capture by other players by merger & acquisitions


Pfizer markets its products via doctors Pfizer approaches doctors through medical representative Company use to provide gifts to doctors on a sell of certain quantity predecided between company and doctors


Gives advertisement for general diseases like cholesterol, depression etc. BUSINESS MODEL
Pfizers current business model talks about a strong local presence, faster responses, addressing the lower end of the market, and developing medicines specifically for emerging markets Pfizer has embarked on a business recast exercise in India on the marketing front to align itself with the business model followed by the parent company globally, as part of the exercise The company has created 7 strategic business units (SBUs) on the basis of the core therapeutic categories it has been focusing on Pfizer India is actively looking at leveraging growing Indian market opportunity by offering quality branded value offerings at a competitive price

Pfizer in India has three business divisions: Pharmaceutical Division: This division markets both prescription and OTC products. The key brands of Pfizer are Corex, Becosules, Gelusil and Benadryl Animal Health Division: This division caters to animal pharmaceuticals and is amongst the top four players in the Indian market with revenues of US$ 12 million Research and Development Division: This division includes Pfizers clinical research operations as well as the biometrics division. Over the years, Pfizer India has participated in Phase II, III and IV global trials and has contributed significantly to advancing standards and the research culture in India. The biometrics group also performs statistical and data management activities on behalf of Pfizer Global Research and Development centres in the United States, Europe and Japan.

Further Pharmaceutical division is divided into following division-- PROXIMA







A. Nature of Sales management B. Levels of Sales manager positions C. Sales objectives and strategies

D. Sales process E. Planning & Sales Forecasting (methods) F. Sales budget process G. Sales territories & methods H. Sales Quotas, Size of sales force I. Sales force Staffing J. Types of sales organization K. Sales training methods & motivations L. Expenses plans, audit, and evaluation M. Sales analysis N. Marketing Mix O. Retailing P. Channels

A. NATURE OF SALES MANAGEMENT Nature of sales management is Relationship building which is integrated with marketing, as the customers of pharmaceutical companies are Doctors and not the end consumers so they stress on the relationship building with doctors instead of transactional so that it will help them in future as well.


Pfizer is using combination of Line and staff Organization and Product Organization


C. SALES OBJECTIVES AND STRATEGIES-: The sales objectives are set by the company top managers which were further divided into territories wise, after getting sales objective manager with sales force forms strategies and tactics to achieve the given target and then sales force implement those strategies to achieve the target.

SALES OBJECTIVE Set by Top management


STRATEGIES AND TACTICS By managers in liaison with sales force



D. THE SALES PROCES The sales process used by Pfizer is given below this is done by the sales representatives/ Medical representatives of the company, it involves 7 steps which are subjected to change depends on the condition. Out of all 7 steps precall planning, presentation and follow ups are most important steps of the sales process.

Prospecting & Qualifying

Preapproach / Precall planning


Presentation &Demonstration

Overcoming Objections


Trail close / Closing the sale

Follow-up & Service


For effective planning, operations, and control, Pfizer divides its major products into divisions / strategic business units ( SBUs) Each SBU has a separate business, a set of competitors and customers, and a manager responsible for strategic planning, performance, and control

Pfizer generally follows Break down approach for the sales forecasting and they use combination of 2 to 3 methods which mainly includes sales force composite and executive opinion.


Sales budget gives a detailed break-down of estimates of sales revenue and selling expenditure. Purposes of the Sales Budget is Planning, Coordination & Control Company decide the sales budget on the basis of previous month and year budget and performance

Budget is increased or decreased on the basis of any extra sales promotion activities ex. Budget of becosules is increased when company comes with any scheme such as 29+1 means 1 strip of becosules is free with 29 strips this will enhance the sales of the product. Similarly they reduce the budget during the off seasons. Company use to decide the over all budget which was further break down by middle managers Region wise and then territory wise. In metros where individual budget is hard to give company use to give pool budget Ex. Delhi is a pool city and divided into 4 parts, so company use to gives total Delhi budget which full sales team have to achieve by the combined effort





G. SALES TERRITORIES Pfizer is using Build-up method for the development of the sales territories, which provides equal work load on sales force. Company allot salespeople to geographic territories, consisting of current & prospective customers

H. SALES QUOTA AND SIZE OF SALES FORCE Pfizer use SALES VOLUME quota for its sales force. Since the company is having 7 SBU and many products per SBU hence they are using Rupee Sales Volume Quota. Sales quota are defined individually for small territory and for big cities where individual is difficult to define company use to give pool quota ex. Quota for entire Delhi city where 23 sales person are working is Rs 1.5 Crores for month of may 2012. A combination of 2-3 methods is used for the determination of sales quota which includes past experience method, expert opinion and territory potential method. Size of Sales force- As explained earlier size of sales force was determined on the basis of potential of territory.


I. SALES FORCE STAFFING Sales force Staffing Process includes following stages: 1) Planning 2) Recruiting 3) Selecting

4) Hiring
5) Socialization

Planning- It includes no of sales person required and the outline ie Job analysis, Job description and Job identification.

Recruiting- Recruitment is done mainly by internal source includes employee referrals and current employee until and unless huge no of sales persons are required such as during business expansion etc. During that time few external sourse as Ads in newspapers etc are used.

Selecting- Selection process includesScreening Resumes Written test (Aptitude and subject knowledge) Initial Interview Technical Interview H.R Interview Reference check Medical test


J. ORGATIONIZATIONAL STRUCTURE Pfizer is using combination of Line and staff Organization and Product Organization

K. SALES TRAINNING & MOTIVATION Primarily there are three types of training for sales force: 1. Initial Training Program (ITP) 2. Induction Program 2. Refresher Training Program (RTP) 1. Initial Training Program (ITP) - It is the initial training which is given to new hire sales persons; it starts just after the hiring process. Duration-15 days Key Areasa. Company Knowledge


b. Product Knowledge c. Market Knowledge d. Competitors Knowledge e. Selling skills f. Behavior and etiquettes 2. Induction Program- Induction is also known as Field training it starts just after a sales person completes its ITP and joins the sales field. Its one of the important training as sales person come across with real issues of the market. It is given by an experienced sales person and will go for 2 weeks. Key Areasa. Sales territory Knowledge b. Customer Knowledge c. Practical aspects of sales 3. Refresher Training Program- This training was conducted after 6 months after joining the sales field, duration of training is 1 month and it mainly emphasize on core product knowledge and selling skills. It is usually done in training center of head quarters. OTHER TRAININGS: 1. Internet and computer usage Training: this basically training for the usage of internet and computer programs such Microsoft presentations, excel use etc 2. Optima Training- This is an online reporting software program used by Pfizer for reporting daily work by the sales force. This is one of the effective tools used by Pfizer for evaluating the effectiveness of sales force, no of sales person required etc 3. Special Trainings- It includes specific trainings MOTIVATIONS Performance based Incentives ( Budget wise & product wise)

Instant recognition program (IRP) Gift Vouchers Merit certificates Star competition Foreign trip for top 10 performers Recognition via success stories




TA (Travelling Allowances) Rs 175/- per day outstation Rs 400/ DA (Daily Allowances) Rs 50/- per day
Lodging Allowance Rs 750/- per day

Medical Allowance Insurance up to 4 lacks per annum Mobile Allowance Rs 1000/- per month Internet Allowance Rs 1000/- per month
LTA (Leave Travel Assistance) Rs 15000/- once in 2 year Maternity Up to Rs 50000/-

Entertainment etc AUDIT- Sales force audit is done regularly by the district managers and people from the headquarter to insure the effective working of sales persons. Strict action were taken if- Any sales person is absent from territory - Doing false reporting - Not covering his/her territory assigned - Using unethical means for sales - Involving in other unfair means EVALUATION- This is done to know the effectiveness of the sales force and action to be taken if required. Sales analysis is major factor to know about the sales force effectiveness.

M. SALES ANALYSIS Sales analysis done in Pfizer can be explained by the given chart-


Marketing mix tools are of four broad kinds known as 4ps of marketing: product, price, promotion and place


1. Product variety:
Pfizer offers a great variety of products ranging from hyper tension to cancer related diseases. They have a diversified global health care portfolio which includes human, animal biologic, small molecule medicines and vaccines.


2. Quality:
Pfizer promises a high level of quality to all its consumers. At Pfizer safety is number one priority and therefore they work diligently to understand the safety and tolerability of their products, so that they can provide products and information to medical professionals and patients. Quality ingrained in the work culture of their colleagues and all their values.

3. Brand name:
Pfizer stands as symbol for excellence and trust in the pharmaceutical sector. It carries the reputation of being a market leader and has lived up to its reputation. 4. Packaging: At Pfizer, packaging is well taken care and all the products are packaged and dispatched without compromising in the quality and therefore ensures that their packaging is strong and durable. Price: As we know, Pfizer spend a lot on R&D therefore, their products are costly but they also provide certain discounts at distributor and retailer levels. For example: on purchase of 8 boxes of becosules, they provide a travel bag as complimentary gift. They also offer few schemes during diwali and other festivals to attract their customers i.e. dealers and distributors.

Promotion: 1. Sales force and sales promotion: For every month they set a sales target for their sales force and those who achieve the target, they offer those good incentives and bonus based on their performance. They also reward their best sales person by attractive gifts such as gift coupons, mobile phones, digital camera etc. they select top 10 sales executive from each country and send them on vacation to abroad. Pfizer has some unique offer in order to boost its sales such as, on purchase of five strips of trulimax (anti-biotic) they provide another strip free of cost. They also provide attractive gifts to their retailers such as water bottles, lunch box, branded pens


etc. to push their product and increase their sales. They also reward their best retailer and distributor with a cash price and a certificate once in a year.

2. Advertisement: They advertise their OTC product by mean of newspaper and television. For example: Gelusil-MPS television ads They advertize by putting company name and brand name on pens, spiral pads dairies and perception pads etc. as we know, advertisement of pharmaceutical products comes under Drug and Cosmetic Acts. Pharmaceutical companies are allowed only to advertise their OTC brands.

Place: Coverage & locations: Pfizer is multinational company and operates in many countries across the world. It currently operates in 120 countries. In India, Pfizer is a very commonly known brand even in small towns and cities. For example: everyone is very familiar with cough syrup Corex and vitamin B-complex Becosules


Pfizer mainly use indirect channel- TWO LEVEL










Pfizer also use multi channel distribution system to reach out its customers ie

doctors, chemists and hospitals

Pfizer in the Future? Percent 2010 2015 change $67791$64532 -5% -23% -3%

Sales (millions) Research & Development 9338 7212 Adjusted Net Income 17983 17430


Earnings Per Share




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Working together for a healthier world