Biomed Presentation

8/8/2019 Biomed Presentation

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` Top 5 generics manufacturers

` 175 Thai companies accounted for more than 50

% of the market

` Rest market was shared among 170manufacturers


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` Hospitals

` Drugstores

` Doctor Clinics


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` Difference between existing strategy and the

changing market environment


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` Market focusTargeted all the three markets

` Products Offered more than 100 items of generic products covering all types of drugs, eg.

Analgesics, antibiotics, etc.

` Price Medium high to high ranges Volume discounts were offered Seldom uses aggressive price promotions with its customers Could not afford price discounts because of its lack of economies of scale in

production

` DistributionThird party transportation companies to deliver products directly to customers.

` Communication Sales force was the only means of contact No other means of transportation


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` Sales role Generate sales according to quota

Find new accounts

Build and maintain relationships between customers andBiomed

Negotiate prices with customers within a given range

Decide whether customers should receive 30-day credit or60-day credit

Take orders

Listen to customer complaints and provide feedback tomanagement

Gain and share market intelligence


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` Three components:Salary

Current salary: THB5,000 per month

Commission

o Sales rep: 1.5% of sales volume with a progressive ramps

o Sales above 100% of targeted annual sales were compensated at3%

o Average targeted annual sale per rep : THB2 million

Quarterly bonus

o Year-to-date sales quota


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` Basic allowance of THB380 per day per sales rep.including:

x Fuel

x Hotel

x Entertainmentx Cell phone

` If year-to-date sales reach some level, daily allowanceincreases as follows:

Sales volume YTD(THB) Allowance/day

0-500,000 THB380

500,000-1,000,000 THB420

1,000,000-2,000,000 THB460

2,000,000 and above THB500


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` Medical insurance plan

` Company contribution of 7% of salary to the

Provident Fund


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` Two major flawsLack of direction in terms of product/market focus

Price

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No discipline in approaching the three marketsegments

` Sales rep called any person where they thoughtcould be converted to sale

` Management believed Biomeds product notsuitable to hospitals as there is a bidding process


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` Target marketx Doctor clinicx Drugstores

` Incentive plan Sales Service

- Targets should be short time targets- Covering areas more specifically- Pre approach & Approach

` Divide sales persons on the basis of- Product type

- Area wise- Doctors profile- Experience division

High profile doctors more experienced sales rep

Low profile doctors less experience doctors


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Sales contest Basis of approach

Doctor

Drug stores

Week day off

Children education plans


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` Two slabs

` 10-15 products

` Commission on sales volumex 10 well established products

90% - 100% of sale - 1% commission

100% - 150% of sale 1.5 % commission

150% and above of sale 2% commission

x 5 products competitive 80-90% of sales 2% commission

90-100% of sales 2.5% commission

100 and above 3% commission


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Component Base Salary with commission and bonus

Base Salary THB60,000 (1 THB = 60 paisa)

1.Quarterly bonus Q1 Achieve 100% ofQ1 YTD Goal THBQ2 Achieve 100% ofQ1-2 YTD Goal THB4,000

Q3 Achieve 100% ofQ1-3 YTD Goal THB5,000Q4 Achieve 100% ofQ1-4 YTD Goal THB6,000

2.Quarterly bonus Q5 Achieve 100% ofQ1-5 YTD Goal THB3,000Q6 Achieve 100% ofQ1-6 YTD Goal THB4,000Q7 Achieve 100% ofQ1-7 YTD Goal THB5,000

Q8 Achieve 100% ofQ1-8 YTD Goal THB6,000


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` 1. Quarterly bonus All fourQuarter

- Star performer + 3% incentive

- Base salary + THB2,000

` 2. Quarterly bonus Q1-Q6 bonus + 2 days trip

- 2 people

- 2 day + 1 night free stay

Q1-Q7 bonus + Electronic purchase(upto THB50,000 of which

company will pay 50% of it) Q1-Q8 bonus + Promotion/Amount of THB15,000


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Biomed Presentation

Documents

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