MAHA RESEARCH LABS: SALES

FORCE EXPANSION

Submitted by: Group 7

Anish Girdhar (281067)

Anubha Gupta (281068)
Arun Balhara (281070)
Ayushi Vohra (281071)
Chhavi Duggal (281073)
Chhavi Khurana(281074)
 1. FACTORS TO CONSIDER FOR SALES TARGETS

WORKFORCE GROWTH RATE OF INDUSTRY GROWTH

EFFICIENCY. TERRITORY PERCENTAGE AND
BENCHMARKING
2 4 6

1 3 5

PAST MARKET (DEMAND UNHINDERED SUPPLY

PERFORMANCE GENERATION) OF PRODUCTS
 2. SALES ORGANISATION
= SALES HACKER

On the basis of Mission Target Market Strategy Specialisation-

and Vision- Functional Segments- Location Compensation &
Sales Organisation based sales structure Incentive System

Choosing the right Span of Control &

Implementation + Organisational
sales force structure=
Execution Structure
Efficient + Effective
 A

3. TYPES OF SALES
FORCE
STRUCTURES
C B

HYBRID
 4. SALES FORCE STRUCTURE

Generalist Specialist Most suitable

Selling all products and performing all Selling by focusing on a particular sales force
selling tasks for all types of product, market and/or selling
structure for
customers. activity.
MRL is a
Benefits Benefits
● No duplication of effort ● Expert product knowledge Hybrid Sales
● Lesser travel time and cost ● Optimal when product line is force structure.
● Clear responsibility and broad and complex Type A:
accountability ● Focus on strategically Market
● Flexibility in sales effort important products Specialist (50%
Disadvantages Disadvantages of time)
● Lesser product expertise and ● Lack of customer focus Type B and C:
deep customer knowledge ● Duplication of efforts Generalist
● Overburdened with ● Missed opportunities for cross- (30% and 20%
administrative work selling time required
● Too much flexibility can lead to ● Increased co-ordination respectively)
less efforts requirements
 5. Optimal Sales force Size
CATEGORY TARGET FREQ./ TOTAL NO. OF TOTAL SALES
PHYSICIANS YEAR CALLS DOCTORS/ CALLS/PSO FORCE
PSO REQUIRED

A-CLASS 10,000 24 2,40,000 50 1200 90.91

B-CLASS 18,000 12 2,16,000 100 1200 81.82

C-CLASS 7,000 8 56,000 30 240 21.21

TOTAL 5,12,000 2640 193.94

 Optimal Sales force Size (CONT.)
CATEGORY NO.OF TIME TOTAL HRS. HRS./PSO TARGET TOTAL TIME SALES
PHYSICIANS/PSO DEVOTED AVAILABLE / REQUIRED FORCE
HRS./PSO PSO FOR TARGET
OF 8 HRS IN
5:3:2

A-CLASS 50 3.2 845 16.896 10,000 168960 200

B-CLASS 100 1.92 507 5.0688 18,000 91238.4 180

C-CLASS 30 1.28 338 11.264 7,000 78848 233

TOTAL 1690 35000 339046.4 200.7

 6. IMPORTANCE OF SALES TERRITORIES

● To thoroughly cover the market: The salespeople can identify and analyze the potential
customers to achieve better sales potential.
● To improve customer relations: When regular calls are made to the customers, then
goodwill and sales can be increased.
● To establish responsibility of salesman: They are the managers of their territories and
when their responsibilities are clearly defined in the given territory, it enhances the
performance.
● To evaluate the performance: In a specified territory, the actual performance can be
compared with the expected performance goals to analyze the efficiency of sales people.
 PROCESS MRL SHOULD FOLLOW FOR
DESIGNING SALES TERRITORY

1. Select Basic Control Unit: Since the objective of the company, is to have a pan India
presence, it will have to go for multiple basic control units in north, south and east India
and it already has a strong foothold in west.
2. Analyze Salespeople’s Workload: Since the role of PSO is that of a missionary, it will not be
possible to cover a larger geographical area alone.
3. Determine Basic Territories: Here the breakdown approach can be used to find out the
number of territories after taking into account various factors like sales, population and
number of customers of MRL.
 PROCESS MRL SHOULD FOLLOW FOR
DESIGNING SALES TERRITORY

4. Assign To Territories: The territories will be requiring experienced salespeople with

comprehensive knowledge of the products that are being offered by the company.

5. Customer Contact Plan: This will involve “scheduling” the sales calls and “routing” the travel
pattern to minimise the expenses, duplicacy and maximising the efficiency.

6. Evaluation and Revision of Territories: Here, the actual goals achievement will be compared
with the expected goals for evaluation and any discrepancy needs to be resolved through new
plans for the development of the territory.
THANK YOU