biomed presentation
TRANSCRIPT
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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
`
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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