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Parkin Laboratories: Sales Force Effectiveness Case Analysis

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Executive Summary

This analysis report offered a general overview and evaluation on current situation of Parkin Lab, an Indian innovative generic pharmaceutical company started in 1978. The report covered the main problem, which Parkin was facing was low sales revenue and decrease of profits due to the Drug Price Control Order (DPCO) 2013 and keeping increase of operating expense, and whether Parkin needs to implement a sales force effectiveness program to increase the sales volume.

After the analysis of Parkin's current lab comparing to its competitors, Parkin slowed down its sales revenue growth while its competitors were decreasing the sales revenue. And Parkin had strong products line and best sales team. However, its sales force didn't work effectively and efficiently. A thorough investigation found that some MRs didn't allocate their focus on each class of customer properly and manage their time efficiently such as too much on waiting, and that MRs didn't implement the marking plan correctly.

In order to improve the SFE, a new operating model should be implemented. Firstly, Parkin needed to find out the main drivers to SFE. Then it should testify if the main drivers and performance of high performer went towards its marketing plan. If so, Parkin could confirm that their marketing plan and strategies were at the right direction. Later on, Parkin should set up performance of high performer as a benchmark. By being trained and monitor, low and average performers can be pushed to learn from the benchmark and change their working habit and jump out their current comfort zone. Meanwhile, the timely evaluation and motivation should be provided during each performing review.

Moreover, the report analyzed the feasibility of SFE program from a financial standing. After comparison the investment and the benefits that the new model can bring, even in the

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