BIOMED CO.

LTD : Designing a
New Sales Compensation

Ganesh Birale (MS09A010)

Vinay Jawale (MS09A061)
Component
Existing Compensatation plan
Existing New
Base Salary THB 60000 THB 65000
Commission on sales volume Performance to Commission Rate Commission will be based only sales
Goal volume as well as profitability of each
product. Set a fixed minimum
contribution margin for each product.

Upto 100% 1.5% Upto 100%, with 2% + ( 10% of

Beyond 100% 3% every increase in profitability
profitability
percentage above the above the set
minimum value)
Above 100%, with 4% + ( 10% of
every increase in profitability
profitability
percentage above the above the set
minimum value)

Quarterly Bonus Bonus Same

Q1 Q1 THB 3000
Q2 Q1-2 THB 4000
Q3 Q1-3 THB 5000
Q4 Q1-4 THB 6000
 Comparison
Marketing strategy Existing New Suggested
Market focus Hospitals, Drugstores & Clinics Drugstores & Clinics
Drugstores & Clinics + Hospitals with
selected low-priced,
high volume drugs
Product Over 100 products 10-15 Products 10-15 Products
Price High-medium to Low-medium to Low to Low-
High medium medium
Channel Direct and Tenders Direct Direct and Tenders