Sales management

report on Pfizer Pakistan

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 Final project

SUBJECT SALES MANAGEMENT

FACULTY SIR TAUSEEF IQBAL
PROGRAM MBA
GROUP ZAINAB YOUSUF ALI 11660
MEMBERS FATEMA AHSAN 11662
MUHAMMAD SHOAIB 13158

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 Sales Management Report On

Pfizer
Table Of Contents
Topics Page number

Section 1: Introduction
Company Introduction……………………………………………………………………… 6
Business model………………………………………………………………………………… 6
Brands Portfolio ………………………………………………………………………………. 6
PFIZER – Business ……………………………………………………………………………. 6
Products……………………………………………………………………………………………. 6
Leading categories in terms of market share……………………………………. 7

Section 2: Sales Management

Nature of Sales Management ……………………………………………………………. 8

Sales and marketing…………………………………………………………………………. 8
Sales Department …………………………………………………………………………….. 8
Sales Objectives and Strategies…………………………………………………………. 9
Sales process…………………………………………………………………………………….. 10

Section 3: Sales Team Hierarchy

Levels of Sales Manager Positions…………………………………………………….. 11
Sales Team Hierarchy………………………………………………………………………. 11

Section 4: Sales Planning and Forecasting mechanism

Sales Budget Process…………………………………………………………………………. 12
Sales Territories……………………………………………………………………………….. 12
Sales implementation……………………………………………………………………… 12

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 Sales Quota and Size of Sales Force…………………………………………………… 12
Field Sales Report …………………………………………………………………………….. 13

Section 5: Recruitment, selection and training of sales

team
Sales Force Staffing ………………………………………………………………………….. 14
Planning……………………………………………………………………….. 14
Recruiting…………………………………………………………………….. 14
Selecting………………………………………………………………………. 15
Sales Training & Motivation …………………………………………………………….. 15
Primarily there are three types of training for sales force………………… 15
1. Initial Training Program (ITP) ………………………………… 16
2. Induction Program- …………………………………………………. 16
3. Refresher Training Program……………………………………. 16
Other Trainings………………………………………………………………………………… 16
Sales Team Evaluation………………………………………………………………………. 17
Key Performance Indicators (KPIs) ………………………………………………….. 17
Performance Appraisal…………………………………………………………………….. 17
Phases and Steps in Performance Appraisal Cycle……………………………. 18
Performance Rating Procedures……………………………………………………….. 18
Personal Career Plan (PCP)………………………………………………………………. 19
Sales Team’s Compensation……………………………………………………………… 19
Incentives Program…………………………………………………………………………... 19
Awards/ Motivation………………………………………………………………………….. 19
Perks/Benefits………………………………………………………………………………….. 19
Other Benefits ………………………………………………………………………………… 20

Section 6: Customer Relationship Management and

Customer loyalty program
Customer Relationship Management………………………………………………… 21
Section 7: Challenges and Recommendations
Industry Challenge …………………………………………………………………………… 22
Recommendations……………………………………………………………………………. 23

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Acknowledgement
We are grateful to almighty ALLAH, the most gracious, merciful and beneficent

We wish to acknowledge our sincere gratitude and indebtedness to our teacher Sir Tauseef Iqbal
who helped us and give his expert advice, precious time and encouragement throughout the
semester. This project proved to be an innovative leaning experience. It has increased our
knowledge and awareness about sales management

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Section 1: Introduction
Company Introduction
Pfizer Pakistan has been working for the health and well-being of people in Pakistan since 1959.
Pfizer Inc. Chief Executive, Mr. John J Powers Jr. Laid the foundations for the first plant to be
established in the industrial port area of West Wharf on 5th of February, 1959.

The first collaboration was with local distributor, Dumex which led to the distribution of Pfizer
products as manufacturing fully started in the year 1961.

Pfizer Pakistan has always remained instrumental in addressing the healthcare challenges faced
by the country, meeting them by providing the expertise the company holds in this sector.

Business model
 Pfizer’s current business model talks about a strong local presence, faster responses,
addressing the lower end of the market, and developing medicines specifically for emerging
markets
 Pfizer has embarked on a business recast exercise in India on the marketing front to align itself
with the business model followed by the parent company globally, as part of the exercise
 The company has created 7 strategic business units (SBUs) on the basis of the core therapeutic
categories it has been focusing on
 Pfizer India is actively looking at leveraging growing Indian market opportunity by offering
quality branded value offerings at a competitive price

Brands Portfolio
PFIZER – Business
Pfizer is into 2 different businesses:
 Pfizer essential health
 Pfizer innovative health

Products

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Leading categories in terms of market share

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Section 2: Sales Management
Nature of Sales Management
Nature of sales management is Relationship building which is integrated with marketing, as the
customers of pharmaceutical companies are Doctors and not the end consumers so they stress on
the relationship building with doctors instead of transactional so that it will help them in future as
well.

Sales and marketing

 Pfizer markets its products via doctors
 Pfizer approaches doctors through medical representative
 Company use to provide gifts to doctors on a sell of certain quantity predecided between
company and doctors
 Gives advertisement for general diseases like cholesterol, depression etc.

Sales Department
 The main objective of the Sales department at Pfizer is to implement marketing strategies in
such a manner that revenues are generated in order to achieve set organizational goals.
 The country has divided Pakistan into three geographic regions for the sales operations; these
divisions are supervised by the Regional Sales Manager.
1. Karachi Region
2. Multan Region
3. Lahore Region
4. Rawalpindi Region
 The total number of Sales Force of Pfizer in Pakistan is around 600 while 100 of them are in
Karachi.
 The company has a separate Head Office Sales team in addition to regional teams. • Each sales
person has to cater a minimum of 10 calls in a day.
 Every PSR has a laptop with internet connection and software application where they record
every sales related information.

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Sales Objectives and Strategies:

SALES OBJECTIVE
set by top management

STRATEGIES AND TACTICS

By managers in liaison with sales force

EVOLVES TACTICS & ACTION PLAN

IMPLEMENTATION

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Sales Process
Prospecting &
Qualifying

Preapproach /
Precall planning

Approach

Presentation
&Demonstration

Overcoming
Objections

Trail close /
Closing the sale

Follow-up &
Service

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Section 3: Sales Team Hierarchy
Levels of Sales Manager Positions
Pfizer is using combination of line and staff organization and product organization

Sales Team Hierarchy

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Section 4: Sales Planning and
Forecasting mechanism
For effective planning, operations, and control, Pfizer divides its major products into divisions /
strategic business units (SBUs)

 Each SBU has a separate business, a set of competitors and customers, and a manager
responsible for strategic planning, performance, and control.

 Pfizer generally follows Break down approach for the sales forecasting and they use
combination of 2 to 3 methods which mainly includes sales force composite and executive
opinion.

Sales Budget Process:

 Sales budget gives a detailed break-down of estimates of sales revenue and selling expenditure.
Purposes of the Sales Budget is Planning, Coordination & Control

 Company decide the sales budget on the basis of previous month and year budget and
performance

 Budget is increased or decreased on the basis of any extra sales promotion activities ex. Budget
of becosules is increased when company comes with any scheme such as 29+1 means 1 strip
of becosules is free with 29 strips this will enhance the sales of the product. Similarly they
reduce the budget during the off seasons.

 Company use to decide the overall budget which was further break down by middle managers
Region wise and then territory wise. In regions where individual budget is hard to give,
company use to give pool budget.

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Sales Territories
Pfizer is using Build-up method for the development of the sales territories, which provides equal
work load on sales force.
Company allot salespeople to geographic territories, consisting of current & prospective
customers.

Sales implementation
Sales Quota and Size of Sales Force:
 Pfizer use sales volume quota for its sales force. Since the company is having 7 SBU and many
products per SBU hence they are using Rupee Sales Volume Quota.

 Sales quota are defined individually for small territory and for big cities where individual is
difficult to define, company use to give pool quota.

 A combination of 2-3 methods is used for the determination of sales quota which includes past
experience method, expert opinion and territory potential method.

 Size of Sales force- As explained earlier size of sales force was determined on the basis of
potential of territory.

Field Sales Report

Field Sales Report is prepared at Pfizer through specially designed Intelligence software which is
used by each sales representative to record information. A field sales report is devised to serve
various purposes such as:
• Call Report or Progress Report
• Expense Report
• Sales Work Plan
• New Business Report
• Adverse Event/ Complaint Report
Sales forces is evaluated quarterly for incentives based on the results of this report

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Section 5: Recruitment,
selection and training of sales
team
Sales Force Staffing
Sales force Staffing Process includes following stages:
1) Planning
2) Recruiting
3) Selecting
4) Hiring
5) Socialization

Planning-
It includes no of sales person required and the outline i.e. Job analysis, Job description and Job
identification.

Recruiting-
Recruitment is done mainly by internal source includes employee referrals and current employee
until and unless huge no of sales persons are required such as during business expansion etc.
During that time few external source as Ads in newspapers etc. are used.

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Selecting-
Selection process includes

Screening Resumes

Written test (Aptitude and subject knowledge)

Initial Interview

Technical Interview

H.R Interview

Reference check

Medical test

Sales Training & Motivation

Primarily there are three types of training for sales force:
1. Initial Training Program (ITP)
It is the initial training which is given to new hire sales persons; it starts just after the hiring
process.
Duration-15 days
Key Areas –
a. Company Knowledge
b. Product Knowledge
c. Market Knowledge
d. Competitors Knowledge
e. Selling skills
f. Behavior and etiquettes

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2. Induction Program-
Induction is also known as Field training it starts just after a sales person completes its ITP and
joins the sales field. It’s one of the important training as sales person come across with real
issues of the market. It is given by an experienced sales person and will go for 2 weeks.
Key Areas
a. Sales territory Knowledge
b. Customer Knowledge
c. Practical aspects of sales

3. Refresher Training Program-

This training was conducted after 6 months after joining the sales field, duration of training is 1
month and it mainly emphasize on core product knowledge and selling skills. It is usually done in
training center of headquarters.

Other Trainings:
1. Internet and computer usage Training:

Training for the usage of internet and computer programs such Microsoft presentations, excel use
etc.
2. Optima Training-

This is an online reporting software program used by Pfizer for reporting daily work by the sales
force. This is one of the effective tools used by Pfizer for evaluating the effectiveness of sales force,
no of sales person required etc.
3. Special Trainings-

It includes specific trainings

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Sales Team Evaluation
 Pfizer believes that to retain the best talent, they must reward talented and dedicated
individuals who deliver excellent results.
 The company has introduced both monetary and non-monetary rewards and incentives.
 The company evaluates its Sales Force on regular basis through Field Sales intelligence
software that has well-defined parameters to measure Sales Force performance.
 The Sales Force at Pfizer is evaluated every quarter for several incentives that include Cash
Prizes.
 Salary increments depends upon the evaluation of the Sales Force.

Key Performance Indicators (KPIs)

Sales Team at Pfizer is evaluated on the following performance indicators:
 Sales Target
 Number of Sales Calls
 Daily Reports
 Reach and Frequency
 Management Information Systems
 Knowledge Areas: Product, Disease, Competition
 Selling and Soft Skills

Performance Appraisal
 Pfizer Pakistan adopts 360 degrees evaluation strategy in which each sales force is
evaluated by his superiors, juniors and peers.
 The major part of evaluation consists of reviewing employee’s performance against
determined KPIs and pre-set objectives.
 The PA cycle is basically divided in 4 major areas; these areas are further divided in 9 steps.
Cycle runs round the year for each employee.
 PA cycle runs for each particular year, which means that the PCP of 2013 will not be
impacted by the PCP of 2012 of that employee. Yearly targets are set and monitored.

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Phases and Steps in Performance Appraisal Cycle
Goal Setting Phase (Beginning of year)
1. Employee Draft Goals
2. Manager Approve Goals

Interim Review Phase (Mid-Year)

1. Employee Interim Review (Employee rate his/her own performance)
2. Manager do the half yearly review (Manager high light/review the performance of the employee)

End of Year Phase

1. Employee review his/her full year Performance
2. Manager review Employee’s full year Performance
3. Manager of Manager (Skip level/WL3) review and rate employee performance
4. Manager Sign Off
5. Employee Sign off

There is a midyear review on PCP where the supervisors evaluate their sub ordinates, tracks the
progress with reference to the initial goals.

At the end of a year again the PCP is closed on the same document and entire year progress is
documented. All KPI’s, all goals etc are measured and then a rating is awarded. On the basis of that
rating employees are assigned an increment.

Performance Rating Procedures

Like many other organizations, Pfizer also has a rating scale of 1 to 5 where the Line managers
rate the team members based on performance against:
1.) Sales Targets
2.) Job Fundamentals, and
3.) SOL Behaviors (Standard of Leadership)

Budget is allocated to each manager to disperse that budget into its employees as per the
performance. Once the rating is finalized by the LM, they put it in an online tool for measuring
the increment of the employee.

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Personal Career Plan (PCP)

 Personal Career Plan (PCP) is another tool for setting up long term development plans for
employees.
 PCP helps in measuring that how well employees are doing with their long term development
plans
 Pfizer thinks that that it is important to tell Sales forces about what is been expected from
them and what should they do in order to meet Sales targets and develop themselves for
higher positions within the organization.

Sales Team’s Compensation

 Pfizer make sure that whatever they offer as compensation and benefits should be market
competent.
 A simple process of compensation
 Normal salary and incentive program.
 No Yearly Bonus.
 There is an annual increase of salary which is established considering employee performance
and inflation rate of the country.

Incentives Program

• Individual performance
• Team performance.
• Quarterly incentives
• Annually incentives.
• Performance of the sales representatives.

Awards/ Motivation

• Annual competition awards are also awarded to best performers

• Awards range from 40k to 500k.
• Group discussions are also carried out to appreciate team members for their efforts.

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Perks/Benefits

• All sales representatives have Motor Bikes

• Sales managers and above have company maintained cars.
• Insurance of employees has been done.
• Separate laptops have been given to all sales representative and managers.
• Medical Assistance
• Leave fare assistance is given to the sales team.
• Paid leaves are part of the package of the sales force.

Other Benefits

 On-Site Gym equipped with a selection of fitness machines to promote a healthy lifestyle
 Bank at Work to facilitate employees carry all cash transactions in a secure, hassle-free
environment.
 Company library
 Maternity (paternity) benefits : 5 days free taken by fathers upon the birth of the child

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Section 6: Customer
Relationship Management
and Customer loyalty
program
Being in FMCG and pharmaceutical verticals, Pfizer relies heavily on up-to-date customer and sales
data to run daily sales operation. There lies the challenge to keep sales data updated and always
in-sync between backend system and sales representative’s mobile devices.

To resolve the underlying issue, a Consulting company implemented Claritas™ CRM solution on
customer master data management (CDM). CDM consolidates Pfizer buying and non-buying
customer data from multiple sources into single application, allowing information sharing and
collaboration across various departments on premise and on the field. With CDM, we have enabled
a feature to merge similar customer records and eliminate the product team alignment issues
faced by sales team on annual basis.

Consulting company also built a CRM mobile sales force automation solution on top of CDM
system, called Sales-Data-on-The-Go! (SDOTG). This system is deployed on Microsoft Mobile
Platform Framework and compatible with all mobile devices running on Windows Mobile 6.0 and
above. On daily basis, SDOTG consolidates all backend sales and product data and sync updated
copy to sales representative for a refresh start every working day.

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Section 7: Challenges and
Recommendations
Industry Challenge
 High fixed costs and long –lead time
 Discovering and developing a new medicine takes at least 12 years and an average cost of more
than $1B(including cost of unsuccessful compounds)
 Cost drivers for the innovative pharmaceuticals , R&D and SG&A account for approx.45% of
revenue
 Wave of patent expiration
 Slowdown in product introductions
 Increasing pricing pressure

Recommendations
 360 Degrees evaluation strategy has many benefits, while it requires critical review as well.
Feedback from subordinates and peers may help in identifying nepotism but may also skew
the results incase if there is lobbying against some person.
 Pfizer has incentive policy for sales force, which is purely sales target based. We believe that
this should not be only on sales target achievement as there could be externalities may result
hampering the sales while sales person is applying his/her best efforts.
 There should be more clarity in incentive policy and its amount determination. There could be
differences between general sales and specialty sales but the difference should be negligible as
most of the times it’s not in the control of employee that what products be assigned to him/her.
 Although there is an institutional sales team but still we found key account management,
emergent concept in Pharma sales all over the world, was not fully adopted.
 Individuals should be given incentive even of team has failed to achieve their target.
 The level of compensation should be less than what he/she would have got in the case of team
achievement.

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 Annually or bi-annually grand function should be arranged by the company.
 This activity is helpful in motivating sales force to perform their best in order to feel hero in
front of their beloved ones.
 Considering current security situation of the Pakistan in general and Karachi in particular,
Sales force security plan should be in place. Currently company does not have any security plan
for its sales force.

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