OTC – Pakistan & Afghanistan OU

Special Monthly Incentive Plan for Sales Force (July – December 2008)
In addition to the Quarterly incentive scheme currently in place, a special incentive scheme for
the balance of the year 2008* is being proposed to help close the sales gap. Prizes in the form of
selected household electrical appliances (e.g Steam Iron, Fan Heater, Juicer etc) would be given
out to those Field Force members who achieve 100% of their respective sales targets in a given
month. At the end of the year a “Consistency Award” will be given to those members who have
consistently achieved 100% Target for each of the six months. Cash awards are proposed for
first and second level sales managers.
The cost estimation is given below:
No. of Average cost Percentage of Total Cost
Level Personnel per prize personnel (P.M)
PKR eligible for
prize** PKR
MONTHLY ACHIEVEMENT AWARD
Medical Channel:
Medical Information Officer 190 1,500 60% 171,000
Zonal Sales Managers 23 5,000 60% 69,000
Regional Sales Manager 5 10,000 60% 30,000

Institutional/Hospital Business:
Medical Information Officer 7 1,500 60% 6,300
Zonal Sales Managers 1 5,000 60% 3,000

Trade Marketing Channel:

Area Sales Manager 5 5,000 60% 15,000

Total NCH Field Force 231 294,300

Months (BOY) x6
Total estimated cost for year 1,765,800

CONSISTENCY AWARD
Total NCH Field Force 231 5,000 10% 115,500

Estimated Cost for NCH Field Force Scheme 1,881,300

Estimated freight cost @ 5% 94,065
Estimated Cost for NCH Field Force Scheme (including freight) 1,975,365
USD 31,157

In order to build the momentum required, it is proposed to extend the incentive scheme to cover
Distributor Representatives (employees of our appointed Distributors). Under the extended
scheme cash awards of PKR 1,000 would be given to each Distributor Rep achieving their
monthly target. Given the prevailing inflationary pressure at this time and the fact that the
compensation paid to the Distributor Reps is below the current remuneration level of our NCH
Field force, we believe that this extended scheme would further help our cause.
PKR
EXTENDED INCENTIVE SCHEME - CASH
Distribution sales Rep -1 80 1,000 60% 48,000
Distribution Sales Rep – 2 80 1,000 60% 48,000
Sales Supervisors 16 1,000 60% 9,600
105,600
Months (BOY) x6
Total estimated cost for year – Distributor level 633,600
USD 9993

TOTAL COST OF INCENTIVE SCHEME 2,608,965

TOTAL COST OF INCENTIVE SCHEME (@ 63.4/USD – LE 2 RATE) USD 41,151
* Additional Incentive Scheme cost not reflected in LE 2 submission.
**Based on previous history around 52% of the personnel achieve their respective monthly target under the current
quarterly scheme.