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Maha Research Lab

Maha Research Labs (MRL) is organizing its sales force to achieve a revenue target of $2 billion by 2020. It plans to use a hybrid sales force structure with generalists handling pharmacies and specialists focusing on physicians. The document discusses factors for setting sales targets, steps to organize the sales force including setting objectives and strategies, specializing and sizing the sales organization, and setting performance reviews. It recommends MRL design sales territories and assign them to salespeople based on account potential and importance to establish responsibility and thorough market coverage.

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Anshika
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235 views

Maha Research Lab

Maha Research Labs (MRL) is organizing its sales force to achieve a revenue target of $2 billion by 2020. It plans to use a hybrid sales force structure with generalists handling pharmacies and specialists focusing on physicians. The document discusses factors for setting sales targets, steps to organize the sales force including setting objectives and strategies, specializing and sizing the sales organization, and setting performance reviews. It recommends MRL design sales territories and assign them to salespeople based on account potential and importance to establish responsibility and thorough market coverage.

Uploaded by

Anshika
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MAHA

RESEARCH
LAB Group - 2
Anshika Aggarwal
Anubhuti
Arun Narayan
Ayushi Verma
Bhamini Nayal
Bhavye Goyal
Factors Determining Sales Target

1. Industry growth & Company growth


2. Expansion of territory and product line
3. Forecasted Demand
4. Past Performance
5. Number of potential customers (Class A,B and C
physicians) based on geography i.e Size of
potential customers
6. Sales force structure
Different steps in organizing a sales organization for MRL
1. Setting sales force objective: Achieving sales revenue worth ₹2 billion in 2020.
2. Determining sales force strategy/process: Missionary selling (detailing)
discussing features and benefits, dosage, side effects and prices.
3. Deciding sales force specialization: Location based and a generalist sales force
for a product range of MRL’s and specialized sales force if there are new, complex
and high margin drugs.
4. Setting sales territories: 10 sales territories in MRL
5. Sizing the organization: 75 PSOs in north, 70 in south and 60 in east with yearly
sales target of ₹8 million yearly.
6. Setting coordination and control, reporting relationships: PSOs reported to
ASMs, ASMs answerable to zonal sales officer and ZSM reported to MD.
7. Recruiting, training and performance review: 14 days of training at company’s
facility, annual week refresher course. ASMs worked with PSOs 3 days a month for
field training and performance reviews.
Types of Sales Force Structure
Generalists

● Territories generally determined by geography,


flexible structure
● No duplication of work, time and cost efficient 3. Activity specialization

Specialists ● Better knowledge, skills and


effectiveness for specific sales activity
1. Market specialization ● Efficient work distribution
● Better knowledge for complex needs of diverse
customer base
● Adaptable to dynamic customer needs
4. Hybrid specialization
● Focus on strategically important customers
● Different expertise salespeople
working together for complex needs
2. Product specialization ● Builds customer intimacy
● Better product knowledge of complex products ● Provides competitive advantage
● Focus on strategically important products ● Complex and challenging to implement
● Increase accountability for product based
business units
What is better for Maha Research Labs Private Limited (MRL)?
Hybrid Structure: Currently the objective of company is to increase revenue and bring it to $2 Billion. For achieving it
company should use a mixed structure (generalist + product specialization) at lower level where all the Pharmacies
would be handled by generalist whereas all the Physicians would be handled by specialist and will be able to
convincing them which their detailed product knowledge.
PSO Requirement
Objective: To find the number of Professional Sales Officers required
Given: 1 PSO = 22 days/month
Selling = 80% time
Non-Selling= 20% time
1PSO >= 10 physicians
Select Basic Control Unit: In order to start territory designing
Sales Territory process, MRL needs to select new basic unit or review fitness of
existing ones.
Designing Process Analyze Salesperson workload: Since MRL PSO’s work was similar
to missionary, time taken for the lead generation and post selling
activities needs to be considered,

Benefits: Determine basic territories: MRL needs to calculate potential sales in


northern and eastern regions in accordance with expected sales and plan
1. Improves customer relations size and number of territories
2. To reduce sales expense
3. To evaluate performance Assign to Territories: MRL needs to assign territories as per the
4. To establish responsibility salesperson’s potential and importance of accounts and territories
5. Thorough coverage of
market
Customer Contact Point: MRL needs to schedule and plan the sales call
and movement of the salesperson to ensure efficient outcome.

Evaluate, revise if needed: After implementing its process for a time


period, MRL needs to reevaluate and revise if reqjuired.

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