Nobel Group 4

Sales Force
Management
at Nobel Ilac
By Group 4
01 Market Overview
Content 02 About Nobel
Outline 03 Sales Strategy Transformation
Topics for discussion 04 Decision dillema and their comparison
05 Recommendations
Pharma Market Overview Of Turkey
Economic Growth was there 99% of population were covered

Population is increasing Per Capita Spend on healthcare by insurance for Health
Increase in population group of was only 4% Transformation program
14-65+ Projected sales to reach $4B by Ministry of Health have a complex
Average life expectancy got 2020, CAGR 7.5% set of regulation for Turkey’s
increased from 68 to 78 Growth of overall Turkey pharma pharma market
Lowest Price among 5 EU 88% Retail Sales Chanel 12 % Turky had geographical advantage
countries is fixed hospitals to host many international brand
No promotional discount allowed No online/mail-order pharmacies In 2016, 55 more company got
Free goods for generics products Pharma companies gives their onboarded newly to operate
Fixed exchange rate (1.9595 product to distributors Originator companies were in
lira/euro) further reduced price Doctors & Pharmacists are imp global brand, generics were local
Founded in 1964 as a subsidiary of Ulkar Holding, which was
established by the Turkish Ulusoy family, the company was chaired by
Nobel’s History Hasan Ulusoy

By 2001, the company had expanded into Central Asia and the
Balkans, operating in over 20 countries and marketing more than 100
at a glance different drugs
Nobel operated production facilities in four countries, including
Turkey, Kazakhstan, and Uzbekistan, with a total workforce of over
2,500 employees
Nobel was impacted by the Government’s 2009 pricing policy, leading
to declining margins, reduced profitability, and cash flow challenges
The new pricing policy prompted them to focus on local growth and
expand export markets to offset the decline in profitability
In 2013 Nobel consulted McKinsey for optimizing its commercial
strategy and revisiting their organizational structure and drawing a
roadmap for future growth
Hakan Sahin, previously a Product Lead at McKinsey, joined Nobel in
2013 as an executive board member during a period of declining sales
and negative EBITDA
In 2014 Nobel got Turkey’s first biosimilar grant
S W O T
Strength Weakness Opportunity Threat

Sales were increasing Voluntary turnover rate • Healthcare reforms • Pharma sales dropped
• EBITDA was in double 23%, more than industry Inc per capita spending on from SIIbn to $7.6bn
digit Million standards healthcare • Exchange rate
• Company has started • Per capita spending on Government regulations-> instability
using scientific method of healthcare was only 4% of GDP world's 16th largest Competitive operated on
giving away free gifts • Strict regulations for pricing pharma market->$7.6bn global level
• Sales t 16.5% and Free • Poor personal • Predicted inc in drugs
development training
goods 14.7% sales by 2020
Current Structure
Recruitment Process Training Coaching

Mass Hiring 2009-13 - No trainings Observation and Feedback
4000 Applied, 80 selected 2013-16 - Yearly Trainings Input for Rep's SC
60 days training 2016 onwards - Increased RM evaluated for Coaching
Onboarding budgets performance
Promotions Culture
Compensation Plan
Beyond Quota twice in a row Survey-suggestion-action
Base Salary
Delegation,decisions,results Flexible working hours
Bonus
Nobel's sales in a region Breakfasts with CEO
Overachievement
>30% internal promotions Nobel of the year in 6 cats.
Morning: Doctor Visits
A Day in the Life Visit 15-20 doctors.
Present drug info, adapt
of a Nobel Ilac’s messaging, record
feedback.
Sales Rep
Start of Day (8:00 AM) Afternoon: Pharmacy Visits
Check Monthly Plan Visit 5-7 pharmacies.

Review Doctors' Visiting Discuss performance,
Hours explain deals, take orders.
End of Day
Enter feedback into
CRM.
Plan for the next day.
Sales Strategy Transformation
Free Goods Database Unstructured Increasing High Turnover

Management Approach frequency of visit
Without Scientific Nobel was relying on Field force managers Nobel increased 61% of the employees
Judgement, they their own database were incentivized by frequency of visit to were leaving the
were giving out free of 13000 sales, not profitablility. pharmacies which company because od
products. 38% of pharmacies, but in They followed resulted into reducing low payment. This
their product sales 2016, they worked unstructured approach amount of free goods. resulted into very high
were given out as with QuantilesIMS to and regional managers Sales were up by turnover ratio while
free goods access 99% of the decided pharmacies 16.5% and free goods compared to the
market data and campaigns distribution were down industry standards
by 14.7%
Decision Increase Base Pay
Dillemas The result from exit interview suggested tp increase base

pay and even the employees and director of commercial
group Karin Soydan wants it
Increase Variable Pay

Sahin, CEO of Nobel wanted to increase variable pay as a
measure to reduce the attrition rate
Change in Training and Hiring modules with same

compensation range
Sengun, the HR director feels that the compensation was
at per with the competitors, rather she wanted to focus
more on training and career planning opportunities
Evaluating Alternatives of The available alternatives to fix the turnover rate
Don’t change the compensation,

Increase fix payment Increase variable payment
work on training
Improved retention rate Motivates high performers Long term solution

and low turnover rate Aligns with company’s goal Internal promotion will
Boosts Morale of the Cost effective policy increase motivation
employees Will attract competitive Employees will feel more
Increased loyalty talents valuable because company
Can drag down the cost of More inclined towards will invest on their
hiring better performance of the development and growth
comany Improve performance
High increase of cost will
Sense of security won’t be High initial cost
directly impact on profit of
increased with this Impact will come on long run
the organization
Doesn’t align with the exit Employees might show
High performing
interview feedbacks rigidness to the change
employees may not
Demotivates average Initially employees might not
perform well as interest
performers understand the benefir and
will reduce
Short term solution leave the organization
Demand for more hike
Recommendations
After evaluating the three alternatives we can come to a conclusion that:
1- Improved Training Process- A better corporate training structure can help the employees to grow more.
A steamlined HR analytics can help the organization to steamline dedicated training program
2- Improved promotion procedure- Internal promotions to motivate the employees. This will improve the
3- Better Hiring Practices- A proper hiring practice should be implemented so that they can filter the
candidates who are willing to grow and learn with the company
The Team
Akshata Raghuwanshi Ankit Kumar Muskan Goyal Bharvi Nagvekar

23PGP024 23PGP037 23PGP172 23PGP176
Ritish Nandan Pradhan Sabitabrata Chatterjee Soumyadeep Ghosh

Tanish Pant
23PGP262 23PGP274 23PGP339
23PGP364

Nobel Group 4

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Sales Force

Content 02 About Nobel

Outline 03 Sales Strategy Transformation

Topics for discussion 04 Decision dillema and their comparison

Economic Growth was there 99% of population were covered

Nobel’s History Hasan Ulusoy

Strength Weakness Opportunity Threat

Recruitment Process Training Coaching

Check Monthly Plan Visit 5-7 pharmacies.

Free Goods Database Unstructured Increasing High Turnover

Dillemas The result from exit interview suggested tp increase base

Increase Variable Pay

Change in Training and Hiring modules with same

Don’t change the compensation,

Improved retention rate Motivates high performers Long term solution

Akshata Raghuwanshi Ankit Kumar Muskan Goyal Bharvi Nagvekar

Ritish Nandan Pradhan Sabitabrata Chatterjee Soumyadeep Ghosh

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