Diploma in Marketing Program

For Group and Individual Assignements

Subject Details
Subject Sales Management
Subject Code HDMKT22053

Students Details
No Group Name
Student Name Student Number Signature
1 A S I Perera DM/2017/006
2
Nature of the Assessment Report

Assignment topic Analyzing the role of sales, personal selling

strategy, sales and marketing policies,
competition and differentiating both sales
and marketing in a Pharmaceutical
company.

Learning Outcomes
To understand the role of sales and
marketing in pharmaceutical industry.
Word count 2500-3000
Time for the presentation (Eg: 10 Min & 5 min
Q &A)
Due date / Time 3rd Jun 2018
Individual / Group Declaration
We (Group) certify that the content of the above assignment is one of our original work
and not copied from any of the published or internet based documents. Without
references we have not used any of the other person’s original work or ideas. So the
report or the work we have done is free of plagiarism.
Group leader’s Dat
Signature e
Signature Dat
(Individual e
Assignment)
Individual Assignment – Sales Management
(HDMKT22053)
Student Name: A. S. I. Perera
Course Instructor: Mr. Nilantha Perera

DIPLOMA IN MARKETING
Department of Marketing Management
Faculty of Commerce and Management Studies
University of Kelaniya
Acknowledgement

Special thanks go to,

Mr. Prasad Mendis
MCIM, MBA(UK)
Country Head
0773632229
prasad@emerchemie.lk

Mr. Anton J. Sebagany

MBA(UK), EDM (Col), CPM(Asia), MIM (SL),
AMSLIM
Head – Specialty Business
0772649400
anton@emerchemie.lk

Mr. Lalith Gonalagoda

Manager – Distribution and Sales
0718739351
lalith@emerchemie.lk
Table of Contents
Executive Summary...................................................................................................................1

1. Introduction to the Organization............................................................................................2

1.2 Emerchemie’s Product Portfolio......................................................................................2

1.3 Emerchemie’s Revenue Building Products......................................................................3

1.4 Emerchemie’s Human Pharmaceutical Partners..............................................................4

1.5 Emerchemie’s Vetnerary Partners....................................................................................5

2. What is Sales Management?..................................................................................................6

3. Unique Aspects of Pharmaceutical Marketing and Sales......................................................7

4. Role of Sales & Marketing in Pharmaceuticals.....................................................................8

4.1 Prescribers/ Doctors by Medical Delegates.....................................................................8

4.1.1 Detailing....................................................................................................................8

4.1.2 Sample Management.................................................................................................8

4.2 Facilitators/ Chemists (Pharmacies) by Sales Representatives........................................8

4.3 Key Opinion Leader Management...................................................................................8

4.4 Medical Scientific Professionals (Medical Science Liaisons).........................................9

4.5 Tender and Institutional Sales..........................................................................................9

5. Role of Sales in Emerchemie NB Ceylon ltd.......................................................................10

6. Personal Selling Strategy.....................................................................................................11

7. Marketing and Sales policy in Emerchemie.........................................................................13

7.1 Product Policy................................................................................................................13

7.2 Distribution Policy.........................................................................................................13

7.3 Marketing policies of the company................................................................................14

8. How the company competes in the market..........................................................................15

9. Differentiating Sales and Marketing in Pharmaceuticals.....................................................16

Conclusion................................................................................................................................17

References................................................................................................................................18
Executive Summary

Emerchemie NB Ceylon ltd is the 3 rd largest pharmaceutical company in Sri Lanka with the
monthly turnover of 500 million Sri Lankan Rupees and employs over 500. With a multiple
agency portfolio, the company has achieved many milestones within its relatively short span
of existence in the industry, Marketing a wide range of products both innovator and branded
generics at affordable prices with emphasis on quality.
This report provides they key elements of its operations in both Sales and Marketing,
especially in the role of sales in the organization, personal selling strategies, marketing and
sales policies, how they compete in the market and how they differentiate both sales and
marketing as a pharmaceutical company.
In order to find those elements, I conducted interviews with our senior colleagues to get the
awareness in depth.

1
1. Introduction to the Organization

Emerchemie NB Ceylon Ltd was established in 1999, the company has grown to be one of
the largest pharmaceutical marketing companies within Sri Lanka. From a monthly turnover
of 25 million Sri Lankan Rupees with a staff contingent of 25 in 1999, the company currently
records a monthly turnover in excess of 500 million Sri Lankan Rupees and employs over
500.
With a multiple agency portfolio, the company has achieved many milestones within its
relatively short span of existence in the industry, Marketing a wide range of products both
innovator and branded generics at affordable prices with emphasis on quality[ CITATION
www161 \l 1033 ]

1.2 Emerchemie’s Product Portfolio

The company propagates both Human and Veterinary pharmaceuticals covering many
therapeutic areas and aligns itself with leading global pharmaceutical manufacturers with
enviable reputations. Even though the company was initially providing Pharmaceutical
services align with many global giants, they were able to start their own manufacturing in
year 2014 by Emergen. Their Suppliers are spread across Europe, The Americans and Asian
Continent.

2
1.3 Emerchemie’s Revenue Building Products

Logo Brand Name Product Supplier Molecule Indication

Status Name
Omez Branded Dr. Omeprazole Gastritis and
Generic Reddy’s 20 mg other anti
Capsules/ ulcerant
40mg IVs conditions

Gluchophage Inovator/ Merck Metforming Diabetes

Originator 500mg/850mg
tabs

Evion Inovator/ Merck Vitamin E Anti Oxident

Originator Caps

T4 Branded Bago Levothyroxin Thyroxin

Generic associated
complication
s
Zithrin Branded Renata Azithromisin Antibiotic
Genaric for Infections

Reditux Branded Dr. Retoximab Cancer

Generic Reddy’s

3
1.4 Emerchemie’s Human Pharmaceutical Partners

Merk Pakistan and India Ltd

Ferozsons Laboratories Ltd- Pakistan

Emcure Pharmaceuticals Ltd- India

Renata Ltd- Bangladesh

Janssen Pharmaceuticals USA

Sante Pvt Ltd - Pakistan

Jewim Pharmaceuticals Ltd- China

Actavis PLC USA

Laboratories Bago S A Argentina

Alkem Laboratories Ltd- India

Dr. Reddy’s Laboratories Ltd- India

Sun Pharmaceutical Industries Ltd- India

4
1.5 Emerchemie’s Vetnerary Partners

Beiging Centre Biology Co Ltd-China

Dox- AL-Italy

Monge S A S- Italy

VMD- Belgium

5
2. What is Sales Management?

The American Marketing Association’s definition made Sales Management synonymous with
management of the sales force, but modern sales managers have considerably broader
responsibility but according to AMA, Sales management is all about “the planning, derecting
and controlling of personal selling, including recruiting, selecting, equipping, assigning,
routing, supervising, paying and motivating as these tasks apply to the personal sales force”
[ CITATION Ric88 \l 1033 ]

6
3. Unique Aspects of Pharmaceutical Marketing and Sales

 Influence of non-purchasers on the purchasing habits of the consumer. (Pharma

promoters are influencing the influencer by detailing, differentiating the product from
competitors and showing the latest studies.)
 Authorization power of physicians-consumers needs an authorized document to
purchase a prescription drug.
 Importance of the disease to identify and classify markets.
 Professional license required to stock and sell pharmaceutical products.
 Record of every transaction and kept that are specified to
 Patient
 Physician
 Product[ CITATION Muh \l 1033 ]

7
4. Role of Sales & Marketing in Pharmaceuticals

4.1 Prescribers/ Doctors by Medical Delegates

4.1.1 Detailing
 Face to face visits to physicians to present new Rx drugs
 Influencing the prescribing habits.
 Increase current prescription usage.
 Deliver samples
 Build relationship with doctors
 Get drug into formulary( Pull through)

4.1.2 Sample Management

 Track delivery of prescription drug samples to physicians.

4.2 Facilitators/ Chemists (Pharmacies) by Sales Representatives

(Please note that the medical delegates also must visit the chemists to make sure availability
and get the feed backs and to build relationships with them.)
 Introducing new products
 Make sure the availability
 Increase the current usage through OTC( Over the counter)
 Looking into expiries and other issues
 Build relationships
 Get more sales through Push activities.

4.3 Key Opinion Leader Management

 Expert physicians who can play a critical role in driving pharmaceutical sales.
 They have privileged access to medical information and company sponsored featured
speaking engagement at prestigious conferences.
 Exchange ideas with other physicians regarding new products or indications or
adverse effects.
 Helps convince other doctors to prescribe new products.

8
4.4 Medical Scientific Professionals (Medical Science Liaisons)

 Can be Pharmaceutical PhDs, Pharmacists and Physicians

 Generally have more scientific knowledge than sales representatives
 Their main roles are supporting and expanding sales representative’s marketing of a
product
 Be able to speak to the purchaser on a more scientific level, not on a marketing level
 Will focus on clinical information.
 Organize symposia , conferences and focus group
 Training and continuing education programs and maybe involved in setting up post
launch.

4.5 Tender and Institutional Sales

 Mainly look after tender and institutional sales ( SPC and other private hospitals)
 Maintain and builds rapport with institutional heads and decision makers.

9
5. Role of Sales in Emerchemie NB Ceylon ltd

According to Mr. Mendis (Country Head) , the role of sales is basically canvassing orders
from chemists and stockiest and make sure the product availability by building relationship
with those customers including institutional sales and tender business. Further Mr. Anton
Sebagany (Specialty Care Head) mentioned that the sales are doing a major impact on growth
done by sales force and back them by the company strategies.

10
6. Personal Selling Strategy

According to Kotler & Armstrong, Personal selling is the personal communication between
firm’s sales force and customers for the purpose of making sales and building customer
relationship. Sales people are the primary way for providing paid personal communications to
customers[ CITATION Phi081 \l 1033 ]
When it comes to personal selling strategies, first of all you should be able to get a clear
understanding about the personal selling process. There are several steps of personal selling
process[ CITATION inf \l 1033 ]
 Identifying prospects
 The approach
 Assessing needs
 The Presentation
 Handling objectives
 Getting the commitment
 Follow up

According to those steps, Prospecting is the first step where Sales people/Medical reps
determine Leeds or prospects. After they figure out potential customers, they must determine
Leeds or prospects. After they figured out potential doctors whom they can prescribe the
products and whether they have the potential patients whom they have the affordability
accordingly. Next, Pre approach is used for preparing for the detailing or the presentation.
For this, you need to do a background search, visit chemists to get an idea about his
prescription pattern, habits …etc
Further if you can preplan or schedule an appointment to ensure capturing the doctor’s
attention since the first contact leaves an impression on the doctor’s mind. Further first
impression leaves an impression on you; professional conduct including attire, a hand shake
and the eye contact is advised. Then while you asses or evaluating the customer whether he is
interested in continuing the discussion, one the rep knows the needs of the doctor, he is ready
for introduce or detail of the product. The aim is to get the doctor’s ATTENSION then
gaining INTEREST, Kindling DESIRE, inducing ACTION and finally building
SATISFACTION or AIDA model[ CITATION Ric88 \l 1033 ].
The representatives can do this through detailing, differentiating the product from
competitors and showing the latest studies…etc. After that the sales person will face the

11
objections. Customers who are interested will voice their concerns by questioning of the
price, quality…etc or they refuse or the difficulties of prescribing the product or refuse may
be due to a unknown factor. Medical representative should be able to anticipate those
objections and respectfully respond to them. After that gaining commitment comes next.
Finally they can close the sales by convincing him to prescribe by continuous follow ups.
Since pharmaceutical business in to OLIGOPOLISTIC competition, using missionary selling,
The sales force should be able to strategize or customize their approach and personal selling
strategies accordingly and their strategies may differed to person to person, depending on the
relationship that they have with the customer. They can build relationship from Prospects to
Customers and Clients where they can maintain long lasting professional relationship.

According to Mr. Mendis, His personal strategy was face to face discussions with main
KOLs. For this they use a few approaches. Increase the prescription flow, Brand reminding,
Introducing new products and information to the customer. Further Mr. Sebagany elaborated
it as how they interact with the customers by relationship marketing. Further he explains, “In
digital marketing, they publish all the details to the web and you cannot see the end
customer’s reactions. But in pharmaceuticals they interact with the customer directly and by
looking at their reactions and reading their body language, the sales person can come to a
conclusion on what the impact that they have given to us”. That is the strategy that they use
in personal selling.

12
7. Marketing and Sales policy in Emerchemie

According to Sales related Marketing policies impact upon the functions and operation of the
Sales department. These marketing policies delineate the guidelines within which the effort to
reach personal-selling objectives is made. There are 3 major types.
 Product Policies (What to sell?)
 Distribution Policies (to whom to sell?)
 Pricing Policies.[ CITATION Ric88 \l 1033 ]

7.1 Product Policy

If you take Sri Lanka pharmaceutical industry, 90% companies are depending on import
pharmaceutical business (importing brands from other countries and market them here). But
Emerchemie had a plan to start their own manufacturing pharmaceuticals here and finally
they ended up by getting the first process patent which has been awarded for the manufacture
of a pharmaceutical product in Sri Lanka thus creating a history for Emerchemie and Sri
Lanka. They were awarded and themselves proud by winning a silver medal for their process
patent for a therapeutic in the treatment of Asthma/COPD at the Inventions Conventions held
in Geneva in April 2016 at which Exhibition more than 1000 inventions vied for
recognition[ CITATION www162 \l 1033 ]”

7.2 Distribution Policy

According to Mr. Lalith Gonalagoda (Manager Sales and Distribution), He emphasizes on his
distribution policy as they have some unique aspects.

 Distribution is done by company appointed regional distributors and they should be

responsible to make sure the availability of all company products in the particular
area.
 For that company should provide 6% as the distributer margin and 30 days of credit
period.

13
  Company should appoint a Sales representative and he should visit all the pharmacies
and get orders. Then the order should be delivered within 3 days depending on the
outstanding of the particular customer.
 Recovery and collecting the payments is handled by the distributor, for that the the
distributor should have the required man power.
 According to NMRA policy, the distributer should equip with necessary storing
facility (cool rooms), vehicles (with coolers) and a license to sell drugs in whole sales.

7.3 Marketing policies of the company

According to Mr. Mendis, he explains their marketing policy as “Not like the other industries
like FMCG and other industrials, we have limitations of advertising in marketing. We are
governed by the code of conduct as well as the global rules and regulations where the
pharmaceutical companies cannot advertise of their products to the end customer and very
minimal advertising in scientific forums and journals, so only method is personal selling”.
Further Mr. Sebagany added his views on policies as “Marketing is how you attentively listen
to our plans and how have you communicated to customers comes under selling and how you
plan your sales is marketing. So interacting with other department including finance,
production, distribution and operations, basically marketing plans and sales will proceed from
there”.

14
8. How the company competes in the market.

Competition is all about the rivalry between companies selling similar products and services
with the goal of achieving revenue, profit and market share growth[ CITATION Eli \l 1033 ].

According to Mr. Mendis, competition is all about “getting our brand prescribed by the
doctors. In order to do that we highlight our product’s features and benefits in quality
assurance, things like FDA approvals, UK MHR special approvals to ensure the quality as
well as the studies that we have done. So it’s not like any other advertise gimmick, there are
very scientific and documented evidence that we can prove our products are superior to
competitors” he further insisted.

Mr. Sebagany’s view on competition was “First you should know who and what your
competitors are...based on that only you should focus on your customers. First you should
keep your image with the existing customers and look for new markets. When you target new
markets, you should do your ground work first then you should be able to forecast. Further he
insisted that it is very difficult to forecast more than 2 years due to dynamic changes in the
market and direct influence by the government”.

15
9. Differentiating Sales and Marketing in Pharmaceuticals

Sales and marketing are similar functions yet also very different. Much of the confusion
comes from the perspective or ‘lens’ one uses when comparing them. From a communication
perspective, they both attempt to engage the target prospect or customer and build a
relationship.

Marketing focuses brand management, customer satisfaction/experience and market share

analysis, messaging, alignment with customers, conveying the company values are all
hallmarks of building and maintaining the brand.

Sales demonstrate these elements through their on-going work with the prospects and
customers. Sales brings the brand promise to like (or not) as they address questions, solves
problems and build relationship[ CITATION Jeo \l 1033 ]

According to pharmaceutical marketing, as Mr. Mendis said, “Sales basically getting and
providing the required quantity to the stockiest or the chemist linked activities where the sales
team handles. Marketing team then looks in to other things like, promoting the product,
generating prescriptions, doing campaigns, market research and especially after sales
services”.

According to Mr. Sebagany, “Marketing is focusing on internal activities based on market

research and its where you focus and forecast future budgets, but Sales is a day-to-day
activity which enable us to work accordingly with the marketing plan and it is important
because major impact or results coming from sales. Since we are not into Research and
Development; what we do is promoting what the R&D has produced in the process in
providing the right medicine to the needy. Therefore frontline sales will give us the
indications to plan and focus our future projections and way forward activities.”

16
Conclusion

Sales and marketing professionals should always ensure that the right message reaches the
right customers at the right time, which means we have to use the right marketing tools to
facilitate our patients.
It will guide our patients to understand our values of products and services which will
reinforce and improve a better service to them. It is our support services cycle will enable us
to improve our quality of services to the patients.
As I conclude we should understand that there are few undeniable activities, including
Personnel Selling Strategies, Marketing and Sales Policies, how we react to the market
(Competing and competition), Marketing Communications impact and leadership position
what is relished, sustained and creative.

17
References

Ali, M. (n.d.). Marketing and sales roles in pharmaceuticalindustry. www.slideshare.com .

Armstrong, P. K. (2008). Principals of Marketing 12th Edition.
Govoni, R. R. (1988). Sales Management Decision, Strategy and Cases. Pearson.
Ho, E. (n.d.). www.study.com .
info@sharonlechter.com. (n.d.). Personalselling process.
Jeo Candido. (n.d.). Consultant and trainer in Sales and Marketing. The University of
Vermont .
www.emerchemie.lk. (2016). Colombo: Emerchemie NB Ceylon Ltd.
www.timeslanka.com. (01 Jun 2016). Silver Medal Award for Emerchemie Ltd and
Scientists. The Times of Sri Lanka .

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