Professional Documents
Culture Documents
ON
GLAXO SMITH KLINE
SUBMITTED TO: SIR EKHLAQUE AHMED
COURSE: SALES MANAGEMENT
DATE: 22ND APRIL 2021
GROUP MEMBERS:
AIMEN AGHA
ATEEB AHMED
HAFZA AZAM
KANZA FATIMA
RIJA AVAIS
UZAIR
WARISHA IMRAN
2
TABLE OF CONTENT
SERIAL CONTENT PG NO
NO
1. COMPANY PROFILE 3
2. PHARMACEUTICAL INDUSTRY IN PAKISTAN 6
3. ORGANIZATIONAL CHART 9
4. MARKETING AND SALES DEPARTMENT OF GSK 11
5. SALES ORGANIZATION CHART 12
6. SELLING PROCESSES AND SYSTEM 13
7. SALES PLANNING AND BUDGETING 15
8. TERIITORY MANAGEMENT 15
9. SALES LEADERSHIP 16
10. SALES TEAM MOTIVATION 17
11. SALES TEAM KPIs 18
12. SALES TEAM COMPENSATION 20
13. SALES TEAM PERFORMANCE MEASUREMENT 21
14. OBSERVATION ON GAPS AND RECOMMENDATION 22
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COMPANY PROFILE:
GSK Pakistan:
1.1. History:
GSK Pakistan was created in 2001 in the month of January. GSK was the first pharmaceutical
company to be listed on Karachi Stock Exchange. GSK Pakistan’s two major business divisions
are pharmaceutical products like medicines, vaccine and consumer healthcare like oral and
nutritional care.
ENO
DuoFilm
Eye-Mo
GlaxoseD
Iodex
Panadol
Zentel
Zovirax
There are many other several products that are sold in different countries to tackle different
needs according to the region.
1.5. Sales:
In 2020, GSK Pakistan made a revenue of 35,090,112 from contracts with customers. The Cost
of sales was about 27,555,732 and the gross profit was 7,534,380.
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GSK Pakistan strategizes to be Different from its competitors, provide the best quality to its
customers and fulfill all the needs in pharma sector with three global businesses and a diversified
and talented workforce.
CIBLER Tabs
CITRAGIC Tabs
CITRAGIC Syrup
CLORAMIDINA Eye Drops
DOLGIT Tabs
DUOMYCIN Tabs
FAMDIN Tabs
FORZID Inj
FOVEL Tabs
GASTRUSIL Tabs
HADENSA FORTE Oint
KATIFEN Syrup
LOPERAM Caps
LORATEL Tabs
LUMINA-FORTE Tabs
MALTIRON Syrup
MAXIMUS TABLET Tabs
MINCOF Syrup
NECLOF Tabs
OXATEP Tabs
PIMERA Inj
ROZIFER Inj
SALMAX Syrup
SEPTEM Syrup
SKEL FEN Tabs
SOPRA INJECTION Inj
SOPRA INJECTION Inj
THEORON Syrup
VITAFER Caps
Over the last four years, Pakistani pharmaceutical firms have experienced a compounded annual
growth rate (CAGR) of 13.1%.
Marketing Human
Management Resource
Department Department
Strategic
Management selection and
Dept recruitment
Department
Product
Management
dept
Audit Department
Product O.C
department
Sales Management
Trade Net Dept
International Trade
National Sales dept
Dept
The highest level of the GSK organizational chart is the Board of directors under which comes a
CEO and chairman, they get reporting from the deputy, who compiles all the data and looks after
Executive directors and committee on administration. Under the Executive department comes six
main departments of GSK, each of which deals with a separate purpose.
Area sales dept is on the least rank in the sales dept structure. Above it comes the
provisional sales dept, which collects and assemble all the data from the area sales dept
and supervise sales on the provisional level then above provisional sales comes the
National sales dept.
Human Resource dept, they control all the selection and recruiting process basically
regulates the employee lifecycle and manage employee benefits.
Finance dept, under them, comes to the audit depts, which is responsible for assessing
operational procedures, risk management, and governance processes.
Quality control dept, below them, are Product line departments. They ensure that that
product quality is maintained or improved.
Overseas and Domestic branch office is on the least rank in trading net dept. They report
to the planning and finance dept above them comes General administration dept and later
international trade dept. At last, the Trade net dept manager gathers all the info from the
international trade dept. basically, they look after the opportunities to expand business
and distribution networks.
Marketing management dept, it is further divided into strategic management and product
management. The head of MM dept make plans about how they will define their brand in
the market and how they will produce marketing and promotional materials and deliver it
to the Strategic and product department and later monitor them and proclaim it to
executive dept.
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They are also responsible for the following roles and responsibilities:
5. SALES ORGANIZATION:
Area / Category
Director
Regional Sales
Manager
Area Development
Manager
Territory Manager
Distributor Salesman
/ Representative
Step 1 of the selling process is ‘Prospecting’. GSK doesn’t have to out much effort into this step
because there are limited IMTs and LMTs in Pakistan so not much prospecting is required.
However, for Key Accounts relationship building and meeting/ interacting with them is highly
important which is done, for example, by offering unique promotional schemes, discounts that
are not given in general market. This is mainly because they are bulk buyers of GSK’s products
and contribute to 30% of the total sales (the rest 70% is done through GT channel). By building
relationships, GSK aims to keep its product ‘higher’ for example it will strive to keep Sensodyne
higher than Colgate or Parodontax over Medicam i.e., over the competitor’s products which are
in the same category.
Step 4 of the selling process- Demonstrating Value- is followed by providing promotional
schemes (as discussed above) and are made business partners i.e. if they require investments then
GSK will provide it to them, for instance, if Imtiaz is opening a branch in Bahria Town and it
needs a lot of investment then GSK will agree to investing a certain amount and in return Imtiaz
has to buy certain quantity of GSK’s stock, keep its products in front at eye-level, provide greater
shelf space and will allow GSK to run its BTL activities at Imtiaz’s premises. GSK’s Key
Account Managers are highly qualified personnel because their job specification includes
relationship building with customers, people management and good communication skills.
If a Sales Manager sees that a Key Account is shifting from Top End Retailer (TER) to Modern
Trade (MT) then it will be considered as a business partner for GSK Sales and will be provided
market competitive promotional schemes and discounts and also elongate its credit term policy
and flexibility in payments because it is buying millions worth of products therefore it is
necessary to allow flexibility and good relations.
The Expert Teams which are comprised of Pharmacists and Doctors who deal with prescription
products such as Augmentin and different Injections. These experts are responsible for
promoting the prescription products. Here the Key Accounts are Agha Khan Hospital, Liaquat
National Hospital, i.e., Institutional sales. The expert teams visit these institutions, even though
they are doctors, they have to bring orders for the company by convincing them. It is equally
important here as well to build relationships, for example, GSK’s Sensodyne has a competitive
edge over Colgate because it is a pharmaceutical company and has good relationship with
doctors and several others in the medical field.
This is the general process of GSK; no conventional method is followed. Considering the high
demand for the company’s products, GSK Sales team doesn’t need to follow-up with the key
accounts (step 8) instead they themselves contact the company. However, GSK does have
weekly visit plans as per Permanent Journey Plan (PJP).
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Since GSK has 3-month journey cycles so they evaluate their sales planned on the end of each
cycle. These plans are made annually are reviewed after each journey cycle. Should the forecast
indicate that the budget will not be met, then the management responds accordingly and changes
their strategy for the upcoming cycle.
Sales planning is done by observing the last annual year. The last target was, a minimum of 5%
and a maximum of 20% margin is maintained and then a sales target is developed accordingly.
This Photo by Unknown Author is licensed
under CC BY
Example:
8. TERRITORY MANAGEMENT:
GSK has a vast network when it comes to territory management and this has proven to be a great
for the company and its profits.
GSK has three area of work
1. Pharmaceutical
2. Vaccines
3. Healthcare
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The main target area are the consumers from all ages,
• Sales team territorial managers allocated
• First by the Medical Representative
• Then comes the role of Senior Medical Representative/Product Specialist
• Regional Sales Manager
• Senior Sales Manage
• National Sales Manager
• Business Unit Head
• Director Sales/Marketing
• Managing Director
• SOUTHERN REGION
• CENTRAL REGION
• NORTHERN REGION
9. SALES LEADERSHIP:
The Territory sales managers is largely responsible for maintaining and monitoring the sales
force. When new recruits are hired, they go through an international training program that
focuses specially on compliance and following guidelines.
The leadership also monitors region, category, territory and channels to eliminate redundancy
and maintain efficiency throughout. Should a particular territory be found lagging then the
following two reasons are inspected:
If there is a demand and supply problem then the leadership quickly maneuvers to solve it
prematurely in order to reach its target.
However, in the case of disregard for competency or sales mismanagement, the leadership will
often find out why a particular sales force isn’t competent and what they can do to facilitate it.
Common solutions used for this is to re-admit the lagging salesman into the training program or
switch job roles in order to find a structured characterization with which the employee can relate
to further use his talents for the job required.
GSK being a successful company has many factors by which its teams are well oriented towards
their goals are well aligned various incentives are given:
Clear cut goals:
The sales team is motivated by giving a clear picture of the company goals and how their
incentive will help it achieve it.
Proper command:
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As the hierarchy is well formed and the right action helps the sales team to remain
motivated by having a proper check in balance.
Medical allowances:
The employees of GSK are given various medical allowances to its employees working
well in the sector.
Increment in stipend:
Increments are given quarterly by GSK to its employees and its sales teams when the
formulation of strategies take place.
Coordinated team: The sales team is very well coordinated with the other departments
like procurement. marketing. supply chain.
This KPI is use to determine the number of outlets being covered by the Direct Sales Manager.
For example, if the DSR is assigned to cover 90 outlets in the area of Tariq Road in one month.
Now it is measured by the no of outlets covered the DSR out of 90. If he has covered only 70
outlets then it is below average, if he has covered 85 outlets then he is about to complete the task
and if he has succeeded in covering all 90 outlets then he will be rewarded with some kind of
incentive because he has the ability to convert this dealing into productive shops.
2. BILL PRODUCTIVITY:
This KPI is use to determine the productivity of DSR how much he is proficient which is
regulated by the number of brands sold by the direct sales manager to the outlet and is he able to
convert this into bill productivity. It is measured by the line per productive calls which means
that the DSR has to sell at least 6-7 SKUs of GSK so that when the bill is created there are at
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least 5-6 brands of GSK on it. This KPI helps the company in keeping the track of its sales team
productivity which is indirectly affect the profitability of the company.
3. DROP SIZE:
This KPI is use to determine the total number of SKUs being sold at one shop. Now let’s
suppose that in LPPC there comes 3 brands Sensodyne, Parodontax and Eno but the number of
each brand being sold to the retailor actually determines the drop size. Now each channel has
their own target to meet for suppose there is channel A which have a target to meet 50 SKUs in
one day if that channel achieves the target, then he they will be provided with the incentives and
being evaluated according to it.
4. TARGET VS EXECUTION:
In this KPI the performance of DSR is measured that either they’re able to execute the target that
they have been assigned to or they’ve under achieved or over achieved it, incentives are given
according to the execution of the target.
5. ORDER VS EXECUTION:
This KPI is use to determine the execution of the orders. There is a kind of order known as ghost
orders which means that the person who gave the order for the brand backed up and refused or
DSR have created the orders in his imagination just to become no one in the eyes of his manager.
This activity effects the morale and motivation and gives the supervisor the insights about the
intentions and seriousness of DSR towards the company.
GSK has built its roots in the technology in last five years. They know how to use technology
and what benefit will it give in the near future. So, taking the advantage of technology GSK sales
survives in fact it increased with a large percentage. When covid-19 hit Pakistan GSK was
already prepared for it, when the lockdown was implemented and everything including shops,
retail stores, companies at that time GSK was well prepared and they didn’t let their sales fall
down. Each and everything that DSR needs for closing the sales was all updated online on their
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applications. So, to conclude the pandemic situation didn’t impact the employee’s performance
or their morale instead employees worked harder, they showed their motivation towards their job
which means that the KPIs remained unchanged during the pandemic situation.
One of the most motivating factors for sales representative is their sales compensation or bonuses
as t helps in boosting the morale of sales team and it also help companies to attract create the top
sales talented team. There is different type of compensations based on the sales quota. In GSK
the direct sales representatives get monthly incentives, there are no yearly sales bonuses or
incentives for sales representatives. The non-sales employees working in other departments like
employees of HR, Finance, Procurement and other department employees get yearly bonuses but
sales representatives only get monthly bonuses or incentives. Another reason of providing sales
team with monthly incentives is because their salaries range between 15k-25k, so in order to
keep their morale high, keep them motivated and support them they are provided with monthly
sales compensation.
Now there are different type of compensation that are given to direct sales representatives which
includes:
• TRANSPORT FACILITY:
Every sales representative has a bike or something on which they rode around the city
to make the sales deals. So, in GSK the sales representatives are provided with
monthly fuel allowance, so that they remain free
of burden of fuel prices.
• INTERNET FACILITY:
In GSK the direct sales representatives use an
application for automated order booking, so they
This Photo by Unknown Author is
licensed under CC BY-NC
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are provided with the internet allowance which is monthly which includes data
package, call package and SMS package.
• JAZBA PROGRAM:
If the sales representatives let’s suppose is allotted with the target to close the deal
with 10 distributors or big retail stores and if he over achieves this target and closed
the deals with 13 retailers then he will be provided with a large percentage of basic
pay that will make around his salary to 22k. this program is not only for DSR but the
territory sales manager and area development manager will also get this percentage of
extra pay if he over achieves his target.
The performance of the sales team is measured through the KPI system which is a key
performance indicator. The basic criteria for setting the KPI is ECO, effective coverage of outlet.
If one DSR has to cover 90 shops in the vicinity and only manages to target 75% of the total
shops then he has underperformed. If he achieves 85% of the target, then he has achieved his
target. If he achieves 100% of the target i.e., all 90 shops then he will get incentive. GSK also
measures performance by bill productivity. Whatever he is selling on the shops, is his LPPC is
matching with GSK’s LPPC? LPPC is line per productive call. Last and the most important KPI
is target Vs Execution. Did the sales team achieve the target that they were given? For example,
if sales team was instructed to sell 100 bags of Panadol, were they able to sell all hundred bags?
Did you achieve the target or did you under achieve?
13.1. Training:
Vast training programs are innated by GSK. These programs are held in Movenpick and Pearl
Continental hotels in Karachi. GSK has dedicated a separate department for this purpose which
is called ‘’Training and Institution” which was initially started by Unilever, a Fmcg company.
GSK also provides online training which provides flexibility and mobility. Online trainings are
also cost effective and they stay in the hard drives of the employees. They also provide offline
training, on premises training is provided and help employees to build new skills, develop
existing skill sets, and gather new knowledge about products and services that will boost their
on-the-job productivity. These training sessions are carried out through the year and provided
from the top to lowest levels in the hierarchy.
14.1. Recommendations:
• GSK needs to work on their data base and make it strong as good data will lead to good
analysis and forecast.
• They need to implement and take use of artificial intelligence.
• Improvements in their channel management.