Ass 3

In Groups
Due by 22-12-21 Sec M1
Due by 24-12-21 Sec E1
HOECHST IN TROUBLE
Case Study

HOECHST Pharmaceuticals (Pvt.) Pakistan Ltd. [now Sanofi Avantis] a well reputed
multinational introduced an excellent research product “Frisium” in Pakistan in 1978.

Three training sessions were held where field force was trained in all aspects like
pharmacology, mode of action, types of patients to be treated, customer doctors segment
(Doctors selection) etc. Promotion tools, gifts and incentive for field force were also
given.

It was announced that one Medical Representative giving best sales performance, subject
to achieving his own target by 100% and similarly best field officer will be given free trip
to Bangkok.

Targets allocated for Lahore Region team were according the potential of each Medical
Representative area at the prevalent formula.

Area 3 month 6 Months Target Final Reduced target for 6 Months

achievement
A 12% 1000 Boxes 700
B 25% 2200 Boxes 1540
C 17% 1500 Boxes 1050
D 40% 3500 Boxes 2450
E 6% 500 Boxes 350
100% 8700 6090

After 3 months, review it was revealed that total achievement compared to the target on
Pakistan level was not even 25%. Lahore Region showed the same pattern. Realizing that
the targets fixed were too high, company reduced the target as mentioned above.
Situation did not improve even after reducing the target which was being viewed in every
weekly meeting by Lahore team.

Field officer, Lahore called a special meeting by mid of last month (June) to discuss that
the best of medical representatives were nowhere near the target achievement (reduced).

Following sales situation emerged where Medical Reps were short by:
A= 250 boxes (35.71%)
B= 470 boxes (30.52%)
C= 336 boxes (32.00%)
D= 490 boxes (20.00%)
E= 150 boxes (42.85%)

Mr. E suggested that since no one amongst the team can achieve the target, we should join
hands and help one colleague achieve his target, so that at least one of our Lahore team
members should qualify for Bangkok trip. Suggestion was accepted and all members
helped Mr. E to achieve relatively small target of 150 boxes, by showing their sale of next
15 days into his area chemists.

Doctors had accepted Frisium as a suitable addition in the pharmaceutical market of anti
anxiety products. Others pharmaceutical companies quoted examples of Frisium launch
and its success, because their anti anxiety products sales had suffered remarkably.

Mr. E went to Bangkok amid cheers from the management and applauds by his team
mates. On his arrival back form Bangkok, a party was thrown in his honor and the narrated
juicy stories of Bangkok trip.

After the historical success of Frisium launch, not more than a month passed when
management at Karachi, all sitting in sales manager’s room, discussing un-understandable
reasons of resignations of all Lahore field force with no signs of any en bloc activity.
Every one had resigned for his own personal (different) reason.

Help the management to understand the phenomenon and what remedial steps they can
take to avoid such situation in future.

Q- 1 What led the team to resign?

Q-2 Point out different factors which created problems not noticed earlier?
Q-3 What solutions come into your mind and Design systems so that such situation may
not occur in future?

Learning Areas Learning Outcomes

Motivation/ How Team may be motivated ensuring persistence?
HR Management Keeping all members motivated?
Target Allocation Principles of Target Allocation?
Team Management Managing different members motivation and high morale?
Incentive Policy How to keep everyone happy and willing to put in their best due to
incentive policy?