SDM Project

Presentation

Group 8
Satwik Addepalli
1501102
Anuj B Shah
1501071
Akhil C
1501011
Siva Sudheer D
1501077

Company Background
1849 Started as a manufacturer of fine chemicals by Charles
Pfizer and Charles Erhart in New York
2016 Among the worlds largest pharmaceutical
companies; Ranked #1 in sales
1980s and 1990s saw huge growth by the discovery and
marketing of popular medicines
Popular Products Liptor, Lyrica, Diflucan, Zithromax,
Viagra, Celebrex
Revenues of $49bn and Net Income of $7.7bn in
2015

Company Background
Major divisions: Pharma/Vaccine, Consumer, Nutrition, Animal
Health
Competitors: Merck, Glaxo, SmithKline, Novartis
Increased its global presence through the acquisitions of
Warner-Lambert and Pharmacia
Entered India in the year 1950
Pfizer India had a turnover of Rs1828 crores in 2015
Sales force of over 4000 spread across India

Organizational Structure
MD

BU Head

BU Head

BU Head

National Sales
Manager

National Sales
Manager

National Sales
Manager

Regional
Business
Manager

Regional
Business
Manager

Regional
Business
Manager

District
Manager
PSOs

District
Manager
PSOs

District
Manager
PSOs

Each District Manager has

8-9 Professional Service
Officers under his belt
Multiple regional business
Managers
report
to
National Sales Manager
Each Division is head by a
National sales Manger
Multiple Divisions fall under
the BU Head

Distribution Structure
Country

Diverse distribution strategy for

every country
Regions are divided not by state
geographies but by the density of
chemists across the country
Every region has one or two C & F
agents
Each C & F agent has a bunch of
stockists mutually exclusive to
C&F A under his belt
Each Stockist can reach out to any
number
of
Chemists/pharmacies/Hospital

Region 1

Region 2

Region 3

C&FA
Stockist
s

Stockist
s
Chemist
s
Chemist
s

Stockist
s

How is it different?
Doctor
Prescriptions
Complimentary
gifts to the
stockists
Sale/Revenue
based.
To Analyse the
Dynamic situation
and set according
targets
Failure Analysis

Medical Department,
Product Usage Benefits
and Information
Leadership Trainings &
Annual Meets for
Managers

Intensives and Appraisals

Slab wise
incentives
Ex:100-102;102104 etcNo for
>110%
Dynamic
Product & Segment
specific targets(Not
overall)
Annual growth rate
10%

Sales
Medical
Knowledge
Team Work

Problems identified

Overlapping of stockists
sales territories are not exclusive to stockists. One region can have
multiple stockists
Pros competition among stockists to boost sales
cons conflicts among stockists
Untapped regions(mainly remote areas)
Unethical practices due to severe competition
Flexible targets for sales force
Sales people are not fired even after missing the monthly targets for
2 years continuously which is very unique in this industry.
Pros Low stress on sales people, low attrition rate
Cons lethargic sales force(Hit on companys top line)
Only cash based incentive mechanisms

Recommendations
A specific territory can be divided in to multiple areas based on
the market potential
All the chemists/Pharmacies in a certain area will be given a list
of stockists from which they make a purchase
New performance measure system where a sales person would
receive deficit points when the targets are not met and vice
versa(alongside incentives)
The system will ensure sales persons to reach their full potential
and rewards those who fulfill their targets
Implement a proper recognition where each designation is
divided into different cadres and incentive or bonuses would
depend upon the order of the cadre

Thank You