SDM Batch 1

Parkin
Laboratories
Sales Target
Dilemma
GROUP 2
Critically review the sales performance of different zones and
target settings of Parkin.

NORTH
Growth Compared to other zones, there has been a
Percentage respectable growth rate of 11.6%.

Achievement
In terms of percentage of aim reached (87%), it is the lowest.
Percentage

It has historically performed well (95 dollars in 2011), but

Condition
not this time.

Review The North Zone is in disarray. Compared to the sales during the first
three quarters of the previous year, it has a good growth rate.
However, it has only met 87 percent of its three-quarter goal and
will have to meet a challenging 34 percent of the yearlong goal in
the upcoming quarter.
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Critically review the sales performance of different zones and
target settings of Parkin.

SOUTH
Growth 9.2% is a very low growth rate compared to the
Percentage other zones.

Achievement One of the zones that performs the best in terms of

Percentage objectives reached (97.2 percent )

It has had the biggest sales (98 in 2011)

Condition Since the target growth rate allotted is lower, they can
be met. Goal growth rate need to have been higher

Review This area is in good condition. Because it generated more sales

than expected (76) in the first three quarters of the previous year,
the growth rate was lower (73.5). Given that it has already
accomplished 97% of its goals, it can complete all of its objectives
by the end of the year if it works a little harder.
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Critically review the sales performance of different zones and
target settings of Parkin.

EAST
Growth lowest growth rate (only 7.8%) compared to the
Percentage other zones

Achievement The percentage of goals met falls within the typical range
Percentage (90.2 percent )

Condition It has had mediocre performance (84 in 2011) and has

fallen short of expectations.

Review Also in terrible shape is the East Zone. Only a small portion of its
Jan.–Sept. goals were met due to the weak growth rate. It would be
challenging to achieve the annual objectives if it were to generate
32% of the expected revenues in the last quarter.

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Critically review the sales performance of different zones and
target settings of Parkin.

WEST
Growth Compared to other zones, this zone has achieved
Percentage the highest growth rate of 14%

Achievement
Percentage of target achieved is 88.4%
Percentage

The West Zone has set a target higher than it should

Condition
have and thus, is not able to perform as per the target,
however, it shows growth potential.

Review The targeted growth rate of this zone is the highest and
hence, it has not been able to achieve its targets. The
area has shown good amount of growth

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Critically review the sales performance of different zones and
target settings of Parkin.

CENTRAL
Growth Compared to other zones, there has been a
Percentage respectable growth rate of 11.1%.

Achievement
In terms of percentage, the target achieved is 92.6%
Percentage

The target allocated should have met the industry

Condition
standards of 16%. The area is performing well and has
potential for growth

Review ICentral zone has been able to deliver growth beyond the desired
rate despite maintaining a targeted growth rate that is lower than
the industry norm. It will be able to meet its objectives if this trend
continues.

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Is it a good time to revise the targets? If yes, then how
should Parkin revise the targets?

Yes, this is an excellent moment to update the goals for the following reasons:
The goals must be carefully chosen in accordance with the zones' strengths and growth
prospects.

It makes no sense to keep the same objectives for the upcoming quarter because the
individuals are already losing motivation as a result of the incorrect target setting.

The following criteria should be used to determine the growth targets:

Target growth rate should be dropped from 24% to 20%, since

NORTH
it has not performed well this year

Target growth rate should be dropped from 21.6% to 18-19%,

EAST
since it is not able to meet the current targets
Since it is the second least earning zone, the target should be
WEST
dropped to 20% from 25.6%

Since it is the highest earning zone, the target should range

SOUTH
between 20-24%
Target growth rate should be increased from 10.8% to 12-14%
CENTRAL
since it has growth potential
What will be the role of sales promotion strategies
to achieve targets?

It is a widely held belief in the pharmaceutical sector that sales promotion methods
increase sales.

Giving appropriate gifts and inducements to doctors, pharmacists, dealers, and

other professionals or institutions who may market their products is one of the
regular sales promotion efforts of pharmaceutical companies. Such rewards for
physicians, pharmacists, and merchants will aid in boosting sales and achieving
desired targets and growth.

To keep customers interested in our business, we may also treat them to some
contests or engagement activities that are specific to their location.

Sampling may also be used to entice pharmacists and physicians to recommend

the product. Samples can be provided to those who are hesitant to purchase the
company's medicine so that they can try it first and form an opinion before
making a purchase, adding another kind of product promotion.
Is it the right time to launch a new product?

The pharma industry is Therefore, if the new product

growing very well, and the is introduced, business sales
firm is aiming for a growth of would likewise increase, and
16 percent while its the growth percentage for
competitors are aiming for 28 the next year would also rise.
to 30 percent growth,
indicating that there is room
for the market to go even
further. Therefore, it is the
appropriate moment to
introduce the product.
THANK YOU