Pilgrim Drug Co.

Presented by Group 3:

Niharesh Gupta 19P028

Shivam Agarwal 19P049
Srishti Pandey 19P055
Yashi Mittal 19P060
Kartikeya Mittal 19P148
Pilgrim Drug Co. Background:
● Richard Topping (VP Sales) has posted Dave
Thomas as the new Divisional Sales
Manager in an underperforming Syracuse
Area
● Dave succeeds HL Schultz, who was holding
the post for more than 15 yrs now and held
great relations with all local druggists
● Bill Brooks, oldest Rep wants to retire,
despite requesting for an extension earlier
● None of the Young MBA trainees were
promoted to better positions in Syracuse
unlike other divisions
● Pilgrim is a wholesale operator and serves
retail druggists in the area
● ~18000 items in the product catalogue
● Achieves 20% of the wholesale market
● 2 competitors: One with similar line of
products, other has a limited range
● Potential Wholesale Purchasing Power is less
than the Mean for other divisions
● Dave Thomas aims at improving the Revenue
share of Pilgrim in the Syracuse division
● Plans to reorganize territories to sales reps
● Challenges from robert Jackson, superior and
senior Sales Reps
Syracuse Division Sales Force: Syracuse Sales
Force

Senior Sales Reps Young Sales Reps Trainees

● Last Phase of 12 months Training

● Expecting Territory Assignments
● Spend Time travelling with Senior Reps
●Oldest Rep since 1955 ●No Pdct Displays
●Developed Territory ●No use of Promotion
Bill Brooks ●Born Salesman material ●Registering Increase in
●Loss of Pharma Biz ●Good in Merchandising
●Not Friendly with Dave Sales
Techniques
Grace Howard
●2nd Oldest Rep since 1962 ●Used Want Books
Clifford Nelson ●Not Pushing Promotions
●Developed Territory ●Registering Increase in
●Covered some A/c in ●No focus on Sales Plan ●Most Ambitious &
●Not Friendly with Dave Michael Taylor Promising Sales, High Compliance
Brooks territory to Targets
●Generated Sales from
Allen Simpson Inactive Accounts
●Since 1972 ●Sales Management
●Father Pharmacist in area ●Warehouse Services Linda Harrington
●Raised Concerns to Dave ●Operating only on Salary ●Sales Fig, although
Basis rising, Insufficient
Walter Miller ●Uncontacted A/c
●Since 1979 ●Acknowledged Dave’s
●Easy Going, Very Popular Suggestions Matt Donnelly ●Overworked, Confused ●Acknowledged Dave’s
●Too many A/c; Too large Suggestions
John Murray ●Since 1974 ●Annoyed with Dave territory
●Excellent Sales Rep
Current Problems:
● Nelson wishes to take over Brook’s accounts as promised
● Comparative performance: Syracuse market for wholesale purchases underperforming by 28%
● Territory division: The territory is divided geographically also based on seniority and there is
prevalence of a diverse sales force
● Compensation:

o Commissions paid to the sales reps varied depending on the product mix being sold.
o Rolling commission rate. Paid on the basis of margins.
o Certain products are pushed with higher commissions

● Gaps in strategy and policy enforcement of workforce

● Maintaining a balance between reassignment and maintaining the morale
 Critical Areas:

● Conversion rate: Miller (39/90), Simpson (29/48), Donnelly

(56/104) need support

● Harrington needs to increase her sales volume

● Taylor (29/29) can take more workload

● Howard is structural in approach and follows sales

merchandising technique. Hence, traineeship can be given

● Miller has low number of active account (43.3%)

Problems:

Diverse Sales force: Sub par performance:

Veteran Sales Representatives : focused ● Underperforming by 28% as

immensely on relationship building compared to other divisions
Vs
Newer Sales Representatives : More ● Sales reps not working to their full
driven and aggressive in their approach potential

Gaps in planning and implementation of

sales strategy
● Division of territories - basis of sales
and market analysis -but division done -
basis of seniority
● Many sales reps refused to follow the
strategy decided upon
 Way Forward:
As Brooks is retiring his accounts must be re-assigned in order to create balanced
territories in order to compare the sales efforts and results fairly through:
● Balanced Workloads through evaluation of existing workforce
● Balanced Sales Potential
● Minimize disruptions during the redesign
● Maintain employee morale and motivation
● Selection and training of employees
 Distribution of territories:

Nelson allocated his previous areas + areas

previously shared with brooks thus Nelson + Trainee 1
respecting his wishes. Trainee with him due
to his seniority

Taylor’s areas increased due to 100%

active account situation thus utilising Taylor + Murray
full competence and along with Murray
who had seniority

Donnelly’s area reduced due to his

current state of confusion and allocated Murray + Donnelly
with murray for better improvement and
learning

Miller with low active account rate

allocated with Howard and a Trainee in Howard + Miller + Trainee 2
areas that they are geographically familiar
with

Harrington and simpson given areas

they were familiar with along with a
trainee
Harrington + Simpson + Trainee 3
Motivation:
1. It has been ensured that all newer sales
reps are with a senior sales rep, this has
been done to reduce the currently existing
issues amongst them by ensuring that they
work together in tandem
2. Distribution of territories has been done
distributing workload in accordance with
sales potential and geographical
familiarity
3. Clear expectations defined, monthly
review and quarterly or annual evaluation
performance awards
4. Seniors focus on managing current
accounts and newer reps on new accounts
Training:
1. Aligning the interests of senior sales
reps and newer sales reps by
allocating areas together
2. Compensation can be made
dependent on their individual
performance + Area wise performance
thus aligning their goals together
Individual Performance:
● Average Calls per day
● New clients
● Costs to sales
Area wise performance:
● Market share
● Percentage increase in sales
● Gross Profit
Thank you