Pharma Sales and Distribution Management in India - Overview

T E A M S T R U C T U R E

S A L E S F O R C E

General

Manager

BU Head

Diabetes

BU Head

Hospitals

BU HeadInternal

Medicine

BU Head

Cardiology

BU HeadCentral NervousSystem

Area Sales Manager

Regional Sales Manger

Territory Manager

Chief Operating

Officer

National

Sales Manager

(1 per BU Head)

(5 per NSM)

(5 per RSM) (5 per RSM)Scientific Sales Executive

Scientific Sales Executive

M A R K E T I N G

General

Manager

Marketing Manager

Diabetes

Marketing Manager

Hospitals

Marketing Manager

Medicine

Marketing Manager

Cardiology

Marketing Manager

Central NervousSystem

Chief Operating

Officer

Product Manager(2-3 per Marketing

Manager)

T R A I N I N G

General

Manager

Training Head

Diabetes

Training Head

Hospitals

Training Head

Medicine

Training Head

Cardiology

Training Head

Central NervousSystem

Chief Operating

Officer

Regional Training Manager

(5 per Training Head)

REGIONAL MANAGER

JOB DESCRIPTION & RESPONSIBILITIES

JOB DESCRIPTION

•To achieve the financial goal of the company with available resources

•Maintain the gross profit margins of the region

•Manage top end customers in the region

JOB RESPONSIBILITIES

•Coach the area managers to manage the SSEs

•Keep the sales team motivated

•Plan the training need analysis of the team

•Recruit right people for the roles

Ensure Right Drug to Right Patient

AREA MANAGER

JOB DESCRIPTION

•Work 6 days a week

•Joint Field Work – accompany SSEs every day

•Work with key opinion leaders to learn NEEDS of patients

•Meet 9-10 doctors everyday

JOB RESPONSIBILITIES

•Coach and develop SSEs

•People Management : 5-7 executives

•Provide people right environment to achieve targets

•Identify areas of improvement for each SSE Ensure Right Drug to Right Patient

JOB DESCRIPTION & RESPONSIBILITIES

E V A L U A T I O N O F S S E

E V A L U A T I O N

Data collected every week and consolidated over the periods for appraisal

at the end of the year

PARAMETERS FOR MEASUREMENT

-Monthly sales objective

-Providing best solutions to the patients

-Adherence to dress code / professional practices

-Daily Schedule and monthly chart

-Daily Coaching Score

-Improvement Indicators

Fortnightly

Monthly

Quarterly

Half yearly

Yearly

P R O M O T I O N O F S S E

P R O M O T I O N

EVALUATION PARAMETERS

-Understanding of the market-Analysis done on data received from distributors

and pharmacies

-Conduct of daily activities

-Assessment of patients’ needs

-People Skills

-Desire to learn and adaptability POLICIES

-Appraisal once a year

-Based on the aforementioned parameters and competency of the employee

-One round of interview with the AM and RM

R E C R U I T M E N T

R E C R U I T M E N T

Preferred Qualification :B.Pharm / Biology background

GK Test:Anatomy and physiology

Technical Interview round

with ASM and RSM

HR Interview Round

Final Interview with

BU Head

Probation Period:

6 months – 1 Year

Focus on:Attitude

Communication

“We are a Women Empowered Organization with

45.4% of our Workforce comprising of

women employees”

Number of leaves:

30 Casual Leaves per year

P R

O C

E S

S

T R A I N I N G

T R A I N I N G

‘COACHING CULTURE’

• ‘Listen Ask Probe’ Philosophy

• Regular Training Programmes, Modules, Exams

• Focus on Commitment, Confidence and Quality

COMMUNICATION DEVELOPMENT PROGRAM

Regional Training and Development Manager

• Skills Development• Understand Territory,

Science, Communication

National Training Manager

• Teach Managers how to Manage

INITIATIVES

• MBA Programs for ASMs

• Internal Education Policy

• Socio – Cultural Events like Epilepsy Drives, Polio Drives, Biopsy

• Awareness Camps

• Bonding sessions with Physicians, Pharmacists, Doctors

• Understanding Internal Functioning of Organization

S U P P L Y C H A I N M A N A G E M E N T


Manufacturing UnitsGoa | Ankleshwar

Clearing & Forwarding Agents(28)

2800 Distributors in 72 locations

HospitalsRetailer

Wholesaler

CFAs can sell to hospitals and wholesalers but not to retailers

The entire distribution system is Outsourced to an agency

0.5-1% of the company turnover Is paid to the agency

DISTRIBUTION MARGIN

1-1.5 %

69 %

The manufacturers sell the product at a

net rate of 69% on the MRP

8-16 %

Distributors sell at 10-20% for

non-NLEM medicines and 8-

16% for NLEM medicines [ This

varies depending on the size

of the distributor]

10-15 %Margins are represented as % on the MRP(Maximum Retail Price)

D I S T R I B U T I O N M A R G I N


COLD CHAIN

•Cold storage is maintained through

refrigeration at all levels

• Effort is made to ensure that no harm comes to the quality of the product for the lack of maintenance

EXPIRED PRODUCTS

•Stock documents include details about a product batch

•Stock taken back 3 months prior to expiry as

per FDA norms

•Expired stock returned to the sales team: At

full credit

•All the expired products are sent to a

destruction cell

DISTRIBUTOR

•Distributor maintains an inventory of 15 days

•Inventory capacity is calculated based on sale

of previous months and trends

•Supply period is 2-3 days

•21 days is the payment rotation

SALES TEAM

•The sales team meets the distributors every

week or every 15 days

•They discuss the following:•Volume of sales

•Closing inventory•Hospitals that need stock replenishment

•A sales plan is then shared which considers:•How to improve sales w.r.t. trends?•What are the pertinent market factors?•How the tactics used by the marketing team will impact growth?•What impact will other factors like seasons have on sales?


T R U S T W O R T H Y R E L A T I O N S H I P S

T R U S T W O R T H Y R E L A T I O N S H I P S

• Maintaining Ethical International Standards

• Scientific Basis to prove credibility

• Offer healthy variety of products

• Critical Patients in ICU: Discuss with Doctor; Ask how they are doing

• Check if there is any Adverse Reaction to Medicine: There is a Department for this.

Call the department --> Fill a Form. --> Communicate with Doctor --> Collect Patient Information

• Useful Information: Precautionary information

FOCUS ON

REPUTATION

PRODUCT QUALITY

CARE FOR THE PATIENTS WELL BEING

INTERNATIONAL STANDARDS

CONSTANT FEEDBACK AFTER SALES

DISSEMINATING USEFUL INFORMATION

D A Y I N L I F E

7AM

9AM

D A Y I N L I F E

Good

Morning!

Meet executives to

know how many

doctors to meet and

which medicines to

take

12NOONVisit doctors based on

appointments taken

earlier2PM

4PM

Done with

day

Some physicians meet

late at night

OPD

12 / 1 AMafter surgery

M O N D A Y

T U E S D A Y

W E D N E S D A Y

T H U R S D A Y

F R I D A Y

S A T U R D A Y

S U N D A Y

TASKS AVERAGE TIME SPENT (min)

Meeting executives 120 (Max 180)

Travel to doctor territory 30

Visit doctor (appointment based)

120 ( max 150)

Lunch 60

Visit physicians & take appointments

180 (max 210)

Night brief 60

Late night visit 60

TIME ESTIMATES FOR DAILY TASKS

D A Y I N L I F E

A N A L Y S I S & R E C O M M E N D A T I O N S

S W O T A N A L Y S I S

STRENGTHS

•10 Therapeutic Areas :10 year old international Brand

• Sales Force motivation :80-90% retention

• Strong Value System shared by all employees

• Credible and trusted among customers

•Favorable ethical position

WEAKNESSES

• No collaboration between Medical/Sales/Marketing

• Not ready for changing environment- no field structurefor new decision-makers

• Short range planning & lack of launch readiness

•Takes 2 years to break into a new market

OPPORTUNITIES

• Increased integration of medical + sales & marketing

functions

• Increase focus on new decision-makers : Medical +

Management professionals

• Focused approach to New product launches

• Implement SMART — take lead make SOPs more

structured within industry

THREATS

• Aggressive Competition - extreme cost reduction

• Government Regulations and Medical Associations restrictions

• No proactive measures to check and control

Counterfeit drugs in Rural/ less literate markets

R E C O M M E N D A T I O N S

• Last Mile Delivery: Ensure optimal conditions for drug through Cold Storage management.

• Pick and Choose customers and alter communications: Communicate over Mobiles, Internet for web-savvy customers, etc.

•Improve Inter-Department communication to strengthen sales•Send newsletters to improve the know-how of the company – for

employees of various levels

T H A N K Y O U

Pharma Sales and Distribution Management in India - Overview

Sales

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