CASE DISCUSSION

MAHA RESEARCH LABS: SALES FORCE EXPANSION

Group 4:
★ Manvi Trehan(281029)
★ Muskan Sharma (281031)
★ Nandika Kaura (281032)
★ Nidhi Bansal(281034)
★ Rohit Ratan Jain (281038)
★ Sachin Joshi (281039)
FACTORS TO DECIDE SALES
TARGET
●Business Situation: MRL was started in 2007 and had a revenue of Rs. 500 million
by 2016 with a growth rate of 31.8%

●Economic Factors: Indian pharma market grew by 17.90% during 2005-2016

and was expected to become US$ 55 billion by 2020

Bandwidth of PSOs: The sales target decision will significantly be dependent

upon how the PSOs are able to execute the plan to fulfill the target

❖Government Support- Reduced wait times for drug approvals, new facilities,
lenient price control policies
 HOW TO DETERMINE SALES
FORCE STRUCTURE
Elements of Sales Force - ★Generate reporting,
Understand the Structure: Generalist / coordination and control
elements of sales force Market based / Product choices : Command and
structure Decisions and based / Activity based / control approach
its fit to overall Sales Hybrid ○Integrated approach
Design ○Organic network approach

Recruitment and Supervision and

Training of Sales Person Evaluation
CURRENT Isaquddin Kureshi
SALESFORCE (MD)

STRUCTURE
As of 2018, MRL’s sales force Zonal Sales
was made up of 50 Manager
Professional Sales Officers
(PSO), and 7 Area Sales
Managers (ASMs).

Eight PSOs grouped together

reported to one ASM.
ASM ASM

PSO PSO
 TYPES OF SALES FORCE STRUCTURES

Generalist Structure Specialist Structure Hybrid Structure

❖ Reduces duplication of 1. Product Specialist ❖ Combines attributes of
efforts ❖ Direct sales effort towards Generalist, Activity,
❖ Reduces confusion of
strategically important Product and Market
responsibility and
accountability products specialist structures
❖ Minimized travel time and ❖ Can deal with broad or ❖ Able to deal with
cost complex product line complex products,
❖ Flexible structure where ❖ More product knowledge markets or customers
salesperson can decide and accountability ❖ High customer intimacy
which customer to focus 2. Activity Specialist
their efforts on
❖ Better knowledge and
❖ Create trusting
relationships with the effectiveness
customers ❖ Less ambiguity and more
goal clarity
 COMPARE GENERALIST AND
SPECIALIST SALES FORCES

Benefits of Specialization: Generalist Benefits:

•Knowledge of a Product, Activity, or Vertical •Geographic knowledge
•Strategic Focus
•Role Clarity •Limited travel costs
•Customer Focus •No duplication of effort 
Disadvantages:
•More costly Disadvantages:
•Increase travel time •Less effective
•Customer confusion
•Risk of misplaced focus
WHICH STRUCTURE SHOULD MRL
FOLLOW?
Physicians
Specialist Product (A,B&C)
(Prescribed)
Hybrid Stockist or
Generalist Retail Pharmacy

(OTC)

• As discussed in the case most of the PSO’s role is similar to that of the missionary i.e. selling by persuading
physicians and giving them information. So for Prescribed Medicines, Specialist are a better option which will give
physicians more clarity about the product and hence increase the sales.
• For the Over the counter(OTC) products, Generalist sales force will be more suitable as they can be sold without
the prescription, so for these retail pharmacy can be directly targeted.
• Advantages: Enhance Efficiency and Effectiveness.
 OPTIMAL SALES FORCE SIZE FOR
PHYSICIANS
Calculations :
Total No of calls ● Calls made by a PSO per Year to a
Total no of needed for a
Physician= 10*22*12= 2640
Physician physicians Frequency physician
● Frequency of Calls for Physician :
A 10000 24 240000 ○ A = 360/15= 24
○ B=360/30= 12
B 18000 12 216000 ○ C= 360/45=8
C 7000 8 56000

Overall workload 512000

Calls/ PSO 2640

No of PSO's 194
 IMPORTANCE OF SALES
TERRITORIES
 Helps in planning and controlling the sales operations
 Helps to increase sales volume and market coverage
 Helps provide better services to customers
 Helps in creating salesperson’s accountability and
ownership
 Helps in evaluation of Salesperson
 Promotes Salesperson-to-Customer mapping
SUGGESTED PROCESS FOR MRL

ZSM

ASM

PSO
Urban 50 PSOs
900,000 Semi-urban 7 ASMs
doctors Rural * As per 2018 data

Alignment : Geographic ~ based on economic classification

Structure : Specialized salesforce structure ~ 7 physicians, 4 pharmacy retailers
and 160 doctors per day
Distribution method : Exclusive distribution ~ owing to direct relation with
physicians
Routing pattern: Cloverleaf pattern ~ to obtain thorough market coverage
Hierarchy : Structured ~ improves accountability and target gauging
THANK
YOU !