Case Study - Parkin Laboratories

Case study - Parkin Laboratories

Manoj Kumar, general managers of sales at Parkin Laboratories established in India, was faced with a difficult task in finding possible alternatives to increase its regional sales managers (RSM) productivity and efficiency, in order to decide, to either change the corporate strategy or follow the same path they’re currently using to achieve its sales target. Additionally, Kumar was unsure of whether it was the right timing to launch Parkin’s new product in the market. Sales growth were unevenly dispatched; South Zone 9,2% growth, whereas the West zone achieved 14% growth, therefore unable for Parkin to implement an incentive program, due to unequal demographical growth and thus unfair for sales people working in the South zone.

Parkin Laboratories is a Hindu pharmaceutical company, founded in 1987. They provided combination drugs to medical community and their core business foundation was built on the basis of selling large volumes of low-priced medicines to take advantage of both affordability and popularity. Since Parkin creation, the innovative generic-pharmaceutical company has managed and successfully developed a range of 75 medications, which included; antibiotics, antifungal drugs, gastrointestinal and many more. Its sales representative at each level; district, regional and medical representative were benefiting from Parkin’s strong portfolio of products and its distribution network, which provided the sales team with a strategic advantage in the market place.

As Chaudhary, CEO of Parkin Laboratories suggested, strong sales process produced solid sales growth and more accurate sales forecasting.  The company has missed growth target by 9,4% and only managed to grow by 10,6%, which lead executive to question the efficiency of the current sales force structure.  At each level of management, unique skills are required to ensure the companies competiveness among its competitors, trough a specific training program that will enable the manager to focus on the essential skills needed to preform in the pharmaceutical industry. However all trainee attending the program will be reminded of the fundamentals basis of the selling process; Pre-Interaction – pre call planning skills, engage in an effective relationship with the costumer, Interactional – ability to related the product to the costumer needs and Post-Interaction process which determines whether or not the managers has the means to safeguard its clients happiness.   The company sales organization structure, which enables MR, DSM and RSM interaction among them, is an effective measure to retain overall communication among each department of the organization. The greater connectivity will facilitates Parkin’s objectives in reaching its sales target; for example sales department can work closely with the marketing department to be sure the product is being advertised effectively to the correct target audience.