Final-Term Exam Summer – 2021

Department of Business Administration

Name : Muhammad Shoaib Id : 13158

Subject: Sales Management Submission Duration: 3 Hours
Instructor: Tauseef Iqbal Khan Submission Date: Sep 05th, 21
Submission Time: 8:30-11:30 AM
Program: MBA Max. Marks: 40

Please follow the instructions carefully:

1. Submit word document having your name and registration ID.

2. Attempt all questions in sequence.
3. You are strongly encouraged to write your answers in bullet points or small
paragraphs.
4. Each part must be separately highlighted.
5. Kindly check presentation of your exam before submission.
6. Use standard formatting, font size and font style.
7. Highlight your key points in your answers.
8. You need to produce organic material based on your learning.
9. Answer scripts can only be uploaded on Blackboard any time before its deadline.
10. To avoid any unforeseen problems, you are advised NOT to wait for the last hour to
upload your answer script.
11. Submission of answer copy will be considered acceptable through Blackboard only.
Therefore, do not submit your document through email or any other medium.
12. Provide relevant, original and conceptual answers, as this exam aims to test your ability to
examine, explain, modify or develop concepts discussed in class.
13. Do not copy answers from the internet or other sources. The plagiarism of your answers
may be checked through Turnitin.
14. Double check your word file before uploading it on Blackboard to ensure that you have
uploaded the correct file with your answers.
Q1) Case- Maha Research Lab- Sales Force Expansion

Please refer to the case given along with this paper and answer the following. (Marks-35- each part of
05 marks)

a) Prepare synopsis and key takeaways of this case

1. The objective for growth should be aggressive.

2. Business expansion requires a clear goal and effective planning.

3. To increase reach, numerous distributors should be used.

4. Investing in salespeople is good to the company.

5. For a cost-effective location-based sales structure, the sales force should be highly managed and
structured.

b) What factors should Maha Research Labs Private Limited (MRL) consider when deciding on its
sales targets?

 Past Performance:

When determining a realistic sales target, Maha Research Lab Private Ltd (MRL) should consider the
following factors: Performance in the Past MRL must assess its sales performance over the previous
few years (company/Zonal Managers/ ASM's/ POS's) and, based on this, reach a logical conclusion
after considering other aspects.

 Account Strategic Planning

MRL must plan numbers based on strategies for targeting certain location, categories of
physicians or pharmacies, or operational styles in order to provide better service/product.

 New Terriotries:

MRL has already made the decision to expand to North, South, and East India. MRL will have to
start over in these areas. They will initially have a small pool of clients in these regions, therefore
targets should be set accordingly.

 Seasonity and Sales Cycle

MRL's sales executives have been with the company for a few years, so they have the necessary
experience to anticipate sales for specific periods of the year. They must also consider the
seasonality of the sales projection in the new location.

 Size of Target Account

 Account size of the target Sales MRL leaders must evaluate a variety of variables and equations
to ensure that POSs/ASMs have a balanced portfolio of accounts in order to avoid missing
targets by large margins. This must be considered while setting targets so that a buffer/plan B
may be accommodated.

 On boarding OF New Sales Professional:

MRL needs to onboard new team members and provide them with necessary tools and
resources as company expands into new locations. Because new joiners' productivity is unclear,
setting time and goals for them should be carefully evaluated.

c) Outline the different steps in designing a sales organization for a company such as MRL.

1-Analyzie the potential of each territories.

2-Draw a map of possible physician distributors who will be covered by the plan.

3-Decide on the type of product to be pitched and hire salespeople accordingly, such as general
groups for generic drugs or specialized groups for specialty drugs. Patented, difficult-to-use drugs

 Assign a frequency of meeting those categories to the physician in the Class A.B.C category.
A-Grade A has the highest frequency, followed by B and C.
 For the Sales Team, the number of sales calls for physicians and retailers should be fixed /
per week / per month.
 Assign the KPI’s of the sales team which covers the average, frequency, customer
development ratio, customer relations Etc.
 Target the market divide the segments for achieveing maximum sales
 Bloom incentives plans for the employee to work with motivation and courage and achieve
their desire targets.
 Assign the effective sales force structure to gain a better results.
d) Discuss the different kinds of sales force structures and suggest an appropriate structure for
MRL
There are two kinds of sales .
Specialist and Generalist.
First we discuss generalist Pros and Cons

Generalist Specialist What MRL Adopted

For all types of By concentrating on a specific most appropriate sales force
consumers, selling all product market and selling MRL has a hybrid sales force
products and doing all activity, you can increase your structure, with Type A Market
selling duties is sales. Specialists working 50% of
required. the time and Type B and C
Generalists working 20% and
30% of the time, respectively.
 Travel Time and Cost are 1-Experienced Product
Reduced Knowledge
Be adaptable in your sales
efforts. 3- Concentrate on products
that are critically important.
there is no duplication of - lack of client focus
effort.
A lack of product expertise and Missing Cross-Selling
a thorough understanding of Opportunities
the consumer
An excessive amount of -Optimal When the product
flexibility may result in fewer line is extensive and
attempts. complicated
Administrative work effort duplication
overburden

e) Compare generalist and specialist sales forces. Which structure should MRL follow?
Genarlist:

Selling a wide range of products and engaging in a variety of sales activities for a diverse range
of customers.
1- There will be no effort duplication.
2- Travel time is reduced and costs are reduced.
3- When it comes to sales efforts,
4-be flexible.
5- Inadequate product knowledge and client understanding 5- An excessive amount of
adaptability As a result, less effort may be required.

Specailist:

You can enhance your sales by focusing on a specific product market and selling activity.

1-Product knowledge gained by experience

2-Optimal When there is a large and complicated product line

3- Focus on products that are crucial to your business.

4- a lack of customer focus

5- duplication of effort

6 Cross-Selling Opportunities That Go Unnoticed

MRL follow hybrib sales force that is best suitable MRL employs a hybrid sales force, with Type A market
specialists spending 50% of their time on the job and Type B and C generalists spending 20% and 30% of
their time on the job, respectively.

f) Estimate the optimal size of a company’s sales force using different calculation methods.

A sales rep was supposed to work 22 days in a month and meet 10 physicians and 6 retailers in a
day.
No of working days in a year 22 * 12 = 264 days.
Less 20% time in non-sales activity = 52 days
Active days for sales = 212 days

METHOD # 1

CLASS REACH FREQUENCY TOTAL CALLS

A 10000 15 150,000
B 18000 7 120,000
C 7000 5 35,000

METHOD # 2

CLASS TARGET FREQUENCY TOTAL NO OF TOTAL SALES

PHYSICIANS YEARS CALLS PER PSO CALLS PER FORCED
PSO REQUIRED
A 10,000 24 240,000 50 1200 90.91
B 18,000 12 216,000 100 1200 81.82
C 7000 8 56,000 30 240 21.21
TOATAL 512,000 2640 193.94
METHOD # 3

CLASS NO OF TIME TOATL HRS / TARGET TIME SALES

PHYSICIANS DECIDED HRS PSO REQUIRED FORCE
PER PSO HRS/PSO AVAILABL FOR
OF 8HRS E /PSO TARGET
5:3:2
A 50 3.2 845 16.896 10,000 168960 200
B 100 1.92 507 5.0688 18,000 91238.4 180
C 30 1.28 338 11.264 7000 78848 233
TOTAL 1690 35000 339046.4 200.7

g) Discuss the importance of sales territories. What process should MRL follow when designing its
sales territories?

Importance of Sales Territories

1- In order to completely cover the market, salespeople must be able to discover and assess
potential customers in order to maximise sales.

2- To enhance customer service:

When you phone your customers on a regular basis, you can build both goodwill and sales.

3- To define the role of the sales representative:

They are territorial managers, and having clearly defined responsibilities in a certain territory
improves performance.

4-To Assess the Work Productivity:

In a Particularly Defined Area To assess salespeople's efficiency, actual performance might be

compared to expected performance goals.

What process should MRL follow when designing its sales territories?
1- Go with the Basic Control Unit:

Because the company's goal is to have a pan-India presence, it will need to set up multiple basic
control units in North, South, and East India, where it already has a significant presence.

2- Examine the workload of salespeople:

 Because PSO's role is that of a missionary, it will be impossible for them to cover a bigger geographic
area on their own.

3- Establish the Basic Territory:

The breakdown approach can be used to determine the number of territories after accounting for
various factors such as sales population and MRL customers

4- Distribute territories:

The areas will require skilled salespeople with a thorough understanding of the company's products.

5-customer-contact strategy:

This will entail arranging sales calls and routing travel patterns in order to reduce duplication of
expenses while increasing efficiency.

6- Territorial evaluations and revisions:

Actual objective accomplishments will be compared to expected goals for evaluation, and any
discrepancies will need to be remedied through new territorial development plans.

Q2) Read the scenario given on next page and answer the question there. (Marks- 05)

Answer:

Some of the benefits with respect to retailers are given below

Optimal Growth:

To succeed in any profession especially in fashion, there is a need a team of extraordinary brilliant
people with innovative brains that can be imagined beyond their boundries. The continual challenge
encourages optimal growth and may drive a shop to heights that other retailers and brands dream to.
Being in the fast fashion business produces retailer consistently encouraged to push the boundaries of
your ability, and capabilities, and the results may be highly valuable.

Gaining Profits rapidly:

In fast fashion It's all about who gets it first. Because being first improves the chances of success.
Earnings from a rapid fashion trends are large and immediate. A fast fashion shop may also exhibit
significant development in the first few years and take over the market in a way that no one else has
been able to. One of the primary elements is to pulling individuals into the fast fashion business or
industry.

Recovery is simple.

Recovery from downside risk from the failure of a certain clothing item or fashion style which was
released by a fast fashion store is more easier and faster than it is for other fashion businesses. If a fast
fashion shop loses money, it may easily and rapidly introduce a new product that might be twice as
successful as the previous one.

Inventory turnover:

Because there is a high number of customer and high demand which indicates the healthy inventory
turnover. By seeing the popularity and market value of respected fashion in all over the world we cn say
that its inventory turnover will over 4.

Correct planning is essential:

Fast fashion's success may be explained by the fact that in-store items or products come rapidly and
generate their demand. It does not restock sold-out items, but rather replaces them with new fashions,
eliminating the need for discounting.