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SDRM Case Study #1

Maha Research Labs is an Indian pharmaceutical company founded in 2007 that is experiencing rapid growth. Currently, MRL has a location-based sales structure and generalist sales force. To achieve its goal of pan-India presence with Rs. 2 billion revenue by 2020, MRL is considering expanding its sales force. The document discusses different sales force structures and recommends that MRL adopt a market specialist structure to deal with its complex customers and increase sales force efficiency. It also provides guidance on designing sales territories to establish salesperson responsibility and improve customer coverage.

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Anshika
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78 views10 pages

SDRM Case Study #1

Maha Research Labs is an Indian pharmaceutical company founded in 2007 that is experiencing rapid growth. Currently, MRL has a location-based sales structure and generalist sales force. To achieve its goal of pan-India presence with Rs. 2 billion revenue by 2020, MRL is considering expanding its sales force. The document discusses different sales force structures and recommends that MRL adopt a market specialist structure to deal with its complex customers and increase sales force efficiency. It also provides guidance on designing sales territories to establish salesperson responsibility and improve customer 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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CASE DISCUSSION

MAHA RESEARCH LABS: SALES FORCE EXPANSION


Group 6
★ Sahil Ratan (281154)
★ Sankalp Rastogi (281155)
★ Sanya Sethi (281156)
★ Shivam Mishra (281157)
★ Shrestha Misra (281159)
★ Shubham (281160)
CASE BRIEF

● Maha Research Labs


● Founded in 2007
● Company is going through growth spree
● Company has a strong presence in western states of India
● MRL currently has a location-based structure and a generalist sales force
● MRL’s target is to have a pan-India presence with revenue of ₹2 billion by 2020.
ANSWER 1
❖ Indian pharmaceutical market growth opportunities
1. Demand Side- Standard of Living, Accessibility, health insurance penetration, lifestyle related
diseases, export market
2. Supply Side - Skilled workforce, customer information and cost of manufacturing
❖ Distribution Network - Presence over the regions
❖ Government Support- Reduced wait times for drug approvals, new facilities, lenient price control
policies reforms and investment commitment
❖ Sales Territories Designs
❖ Sales force structure - Different structure achieves different target
❖ Economics Factors - Rising incomes and high demand in rural market
❖ Past Performance
ANSWER 2
Steps to design a sales organization:

★ Figure out the company’s objectives and its sales strategy


★ Decide on the type of sales force specialization required
○ Generalists
○ Specialists (Market, Product, Activity, Hybrid Specialization)

★ Generate reporting, coordination and control choices


○ Command and control approach
○ Integrated approach
○ Organic network approach
ANSWER 3
Types of Sales Force Structures

Generalist Structure Specialist Structure

❖ Reduces duplication of efforts 1. Product Specialist


❖ Reduces confusion of responsibility and ❖ Direct sales effort towards strategically
accountability important products
❖ Minimized travel time and cost ❖ Can deal with broad or complex product line
❖ Flexible structure where salesperson can decide ❖ More product knowledge and accountability
which customer to focus their efforts on 1. 23
❖ Create trusting relationships with the customers 2. Activity Specialist
❖ Better knowledge and effectiveness
❖ Less ambiguity and more goal clarity
Disadvantages -
Single person handling all the responsibilities Disadvantages - Lack of customer focus, Duplication of
Tend to avoid strategically important products/consumers efforts, missed cross selling opportunities
ANSWER 3
Market Specialist Structure Hybrid Structure

❖ Ability to deal with complex needs and diverse ❖ Combines attributes of Generalist, Activity,
customer base Product and Market specialist structures
❖ Salespeople highly adaptable ❖ Able to deal with complex products, markets
❖ It creates clear accountability or customers
❖ Direct sales effort towards strategically ❖ High customer intimacy
important products
❖ Assigning work better
Disadvantages -
Disadvantages - more focused towards customer and High degree of internal coordination
markets and less product knowledge, avoid allocation of Complex learning of products, markets and customers
efforts towards strategically important products Diminished individual accountability
Flexibility is limited
Suitable for MHL
ANSWER 4

GENERALIST SPECIALIST SALES FORCE


STRUCTURE FOR MRL

❖ One salesperson calls on each ❖ Sales force becomes more ❖ The suggested sales force
customer and there is no accountable. structure for MRL is Market
duplication of effort. ❖ There is better knowledge & Specialist Structure.
❖ This approach benefits the effectiveness. ❖ Will help resolve complexity.
startups, and encourages ❖ There maybe duplication of ❖ Will help increase efficiency and
entrepreneurship. efforts. makes sales people highly
❖ Minimum travel time and cost. ❖ Sales force can direct their adaptable.
❖ Low Bandwidth of Sales efforts towards important ❖ Separate verticals for Retail
Persons. products, activities and pharmacies & Doctors.
❖ Salespeople might get into their customers. ❖ Increased bandwidth of sales
comfort zones & ignore ❖ There are some missed force.
strategic accounts. opportunities for cross-selling. ❖ More focus on strategically
important customers.
ANSWER 5
ANSWER 6
Sales Territory Objectives of using Sales Territory
A sales territory is composed ● To obtain thorough coverage of the market
of a group of customers or a
geographic area assigned to a ● To establish salesperson responsibility
salesperson. The area allocated
to salesperson contain the ● To evaluate performance
present and the potential
customer of the organisation. ● To improve customer relation
The territory may/may not
have geographic boundaries ● To reduce sales expense
ANSWER 6
How should MRL design its sales territory
Two method available:-

1. Build-up Method
2. Breakdown method

Use Breakdown method

Estimate sales Forecast sales Estimate sales Make Develop final


potential for potential for volume from tentative sales territories
total market each control each territories
unit salesperson

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