– PROMOTING ETHICAL SALES

PRACTICES

GROUP 8 –
JEFFIN SHAJI
ANNA MARY SCARIA
MATHEW FEBIN CHARLES
SANDRA JOSHY
MOHAMMED WISHAH
 INTRODUCTION

Current Market Size - Key Market – USA,

$33 billion China, UAE

CAGR of 22.4% over INDIAN Major Players – Sun

2015-20 to reach $55
billion
PHARMA Pharma, Dr. Reddy’s
Laboratories, Cipla
INDUSTR
Domestic Market
Turnover - $20.03 billion
Y Value of Indian Pharma
Exports - $2.5 billion
 PRECIA PHARMA PVT LTD

• Precia Pharma Pvt. Ltd. is a pharmaceutical company based in

Thane, Maharashtra.
• It was founded in 2010 by Sanjay Pawar.
• It had a sales revenue of Rs. 2,212 million as of 2016.
• It manufactures generic drugs and focuses on innovative health
problems.
• It has currently 22 brands including diabetic, gastropathy,
neuropathy, obesity and cardiac arrests.
 CASE SUMMARY
 Precia Pharma Private Limited was considered one of the fastest growing
companies in the highly competitive Indian pharmaceutical industry.

 An email from the company’s star performing executive in March 2017,

highlighting sales pressures and unethical practices in the industry, forced the
managing director to face the reality of how the ills plaguing the pharmaceutical
sector might affect his company.

 He wondered what he must do to maintain the company’s ethical code of conduct

while striving for a healthy balance between ambitious targets and good selling
practices.

 The case explores the strategies of the company for managing the different ethical
issues in a pharmaceutical setting.
Q1. Discuss the role of a sales representative in pharmaceutical
selling.

• Assess clients needs and present suitable promoted products.

• Liaise with and persuade targeted doctors to prescribe products utilizing effective
selling skills and performing cost-benefit analysis.
• Provide product information and deliver product samples.
• Work with sales team to develop strategies and implement brand strategies.
• Build positive trust relationships to influence targeted group in the decision
making process.
• Keep accurate records and documentation for reporting and feedback.
• Keeps management informed by submitting activity and results reports.
• Monitors competition by gathering current marketplace information on pricing,
products, new products, delivery schedules, merchandising techniques, etc.
CONTD.

• Keeps management informed by submitting activity and results reports.

• Monitors competition by gathering current marketplace information on pricing,
products, new products, delivery schedules, merchandising techniques, etc.
• Resolves customer complaints by investigating problems; developing solutions,
making recommendations to management.
• Contributes to team effort by accomplishing related results as needed.
Q2. Analyze the different ethical challenges related sales
management in pharmaceutical selling.

There were various problems faced by Sales representatives in pharmaceutical

companies which includes:
• They lack knowledge about the medicine as a result they failed in
convincing doctors regarding the quality of medicines.
• They were underpaid and didn’t got enough motivation.
• High targets were set by the company that was unattainable.
• The company didn’t take any initiative to provide training to the
representatives to act ethically making them less aware regarding the
ethical and unethical practices.
• Because of all these reasons they started or forced to do unethical
practices which includes:
CONTD.
• Problem of false reporting; for instance, providing wrong information on ME's

travel and use of unethical statements to cheat the company.

• Providing wrong information of expiry/breakage for gaining orders.

• Giving out more than required credentials to the suppliers without the knowledge

of the authority

• Physician samples are being provided to the suppliers and retailers for taking

orders.

• Supply of goods between territories creates competition among the employees.

• Immoral acts like giving out motives and bribing physicians for orders.

• Small companies are linking with doctors for the promotion of their medicines.

• Giving additional credit periods to increase sales.

Q3. What strategies can Precia adopt to manage the various
ethical issues raised in the case?

 Establish a strict code of conduct

 Strict Consequences

 Establish a protocol

 Strong Leadership

 Develop the importance of Ethical Training

 Proper Audits

 Reduce the targets

 Timely Appreciation
Q4.How should Pawar respond to the email from marketing
executive Munish Laddha?
Unethical issues happens in an organization are not fair for the future of an organization. So

he has to respond to the mail by –

• Thanking him for reporting such unethical practices in the organization.

• Pawar should convince him that the company will responsible for every unethical practice

happens in the company and corrective measures will be taken for sure.

• He should also avoid offering quick explanations, justifications, or solutions and ask more

about the situations.

• He should also convey him that the HR departments are providing opportunities to every

employee to raise their voice against unethical practices in the organization and they must

feel free to approach them.

• Also discuss that we are making strategies to cop up the current industry situations as

discussed above.
Q5.How should Pawar manage the false reporting issue of
marketing executive David Katole ?

• Considering the effect on employee morale is important when exploring disciplinary

options. Come down too harshly, such as terminating the employment, you risk
alienating employees and losing their trust in the company.

• However, if someone found to be submitting false reports and merely gets a verbal
warning and no other action, this can have a devastating effect on morale for
employees.

• I think Pawar should warn ME David Katoley with warning letter or email describing
the consequences associated with this act on his job & company if he does this again.

• And Pawar should develop strategies & policies with his management & take such
actions so that next time no one will make false reports such as incentives on actual
daily reporting.
THANK YOU