Leave me alone! The pharma sales force that performs yet does not

Abstract

Learning outcomes After completion of the case study, students will be able to appreciate the challenges in managing a pharma sales team by learning the nuances of business hygiene, learn how new managers taking over a pharma sales team analyze data of a sales territory by balancing both quantitative and qualitative factors, evaluate the challenges of performance management of sales teams and balancing the expectations of various stakeholders, understand the approach of sales and effort hygiene – correlating data points that may not be directly connected but have a dependency and learn to forecast and build a business projection Case overview/synopsis Innov-Health’s dermatology (skin and hair) division in West Bengal, an Eastern state of India, recently hired Pradeep Vir as the area business manager. Innov-Health, a leading 100-year-old global healthcare player, was headquartered in the USA, with categories spanning oncology, immunology, neurosciences, metabolic, dermatology and pain management. Its brand Acnend, an acne cream, the only product in the division, was a market leader in India. Acnend required doctors’ prescriptions to be bought and was sold by pharmacies via distributors. In India, Acnend was doing well at the end of the first quarter (January–March) of 2022 in a highly competitive product category. Vir had just joined the West Bengal territory with four major cities, each with a district manager (DM). The position had been vacant for the past three months, but the DMs had done well in their sales performance for Quarter 1. All of them had achieved their targets, so Quarter 2, when he joined, started on a high note. But Salil Govind, the regional sales manager, his boss, was very concerned that a territory that had no manager had been consistently doing so well. He was concerned that the territory had far greater potential than the Quarter 1 projections had laid out. Govind now wanted Vir to re-work the Quarter 2 projections of West Bengal on priority since April had already begun. As Vir started working on the data, he was perplexed. While at a very obvious level, all four DMs were outperforming, there were gaps in varying degrees in the effort levels of each. The cumulative key performance indicators such as inventory, call average and doctor coverage and the data essentials for business hygiene[1] were worrisome and needed to be addressed. In addition, the doctor coverage, resulting in conversion, left a lot to be desired. However, he was conscious that he was new to the organization and would have to tread carefully. He wanted to do well. Vir got down to analyzing and taking action. Complexity academic level This case study is suitable for use in graduate-level management programs. It can be useful in courses such as sales management, marketing strategy and marketing analytics. The case study is also well suited to introducing students to the basics of sales, sales productivity, territory management, managing a team and business forecasting. The case study provides students a step-by-step understanding of business hygiene, and how just looking at overall sales numbers may not be conclusive, but a deep dive into effort and productivity is far more useful for forecasting. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing.