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    Pharma Talent

    Uploaded by

    Sunena Kumari
    The document discusses three different bonus structures used by a pharmaceutical company to reward its sales representatives. Bonus Structure 1 focused solely on sales amount in dollars and favored reps who processed large orders, while ignoring sales processed through store systems. Structure 2 considered dollars sales and increasing product locations in stores, but reps could falsely inflate metrics. Structure 3 incorporated elements like pharmacy calls and product placement, providing more transparency into reps' performance. While an improvement, Structure 3 still did not fully address customer needs. Overall, the third structure best balanced the goals of the company and sales representatives.

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    © All Rights Reserved
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    Pharma Talent

    Uploaded by

    Sunena Kumari
    220 views4 pages
    The document discusses three different bonus structures used by a pharmaceutical company to reward its sales representatives. Bonus Structure 1 focused solely on sales amount in dollars and favored reps who processed large orders, while ignoring sales processed through store systems. Structure 2 considered dollars sales and increasing product locations in stores, but reps could falsely inflate metrics. Structure 3 incorporated elements like pharmacy calls and product placement, providing more transparency into reps' performance. While an improvement, Structure 3 still did not fully address customer needs. Overall, the third structure best balanced the goals of the company and sales representatives.

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    Pharma Talent- PPT

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    The document discusses three different bonus structures used by a pharmaceutical company to reward its sales representatives. Bonus Structure 1 focused solely on sales amount in dollars and favored reps who processed large orders, while ignoring sales processed through store systems. Structure 2 considered dollars sales and increasing product locations in stores, but reps could falsely inflate metrics. Structure 3 incorporated elements like pharmacy calls and product placement, providing more transparency into reps' performance. While an improvement, Structure 3 still did not fully address customer needs. Overall, the third structure best balanced the goals of the company and sales representatives.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    220 views4 pages

    Pharma Talent

    Uploaded by

    Sunena Kumari
    The document discusses three different bonus structures used by a pharmaceutical company to reward its sales representatives. Bonus Structure 1 focused solely on sales amount in dollars and favored reps who processed large orders, while ignoring sales processed through store systems. Structure 2 considered dollars sales and increasing product locations in stores, but reps could falsely inflate metrics. Structure 3 incorporated elements like pharmacy calls and product placement, providing more transparency into reps' performance. While an improvement, Structure 3 still did not fully address customer needs. Overall, the third structure best balanced the goals of the company and sales representatives.

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    PHARMA TALENT

    Determining the bonus structure


    By: Sunena Kumari
    Std: 20171-22530
    BONUS STRUCTURE OF PHARMA TALENT
    Bonus Structure 1 Bonus Structure 2 Bonus Structure 3
    •The Bonus structure 1 was • The bonus structure 2 was •Bonus structure 3 was
    implemented for two weeks. implemented for next two weeks. implemented based on 2
    elements to get bonus
    •Bonus structure 1 model was •Bonus price were awarded to rewarded
    completely based on sales in sales rep based on the 1st element: Pharmacy calls:
    dollars amount , not the sales determination of two behavioral 1 point was awarded on
    generation in terms of factors which are equally divided calling pharmacists. 1 point
    percentage. into; was awarded for pharmacists
    1: increase the sales in dollars to recommend this product.
    •It included only 1 element : to through rep’s Ipad The calculation is based on
    generate sales in dollars means 2: increase the amount of Natural each month.
    the sales rep who processed Life’s product location in stores.
    highest amount dollars through 2nd element: focused on store
    their system will get top • Sales representative could take calls and products on shelf
    rewarded advantage by clicking on added share. 1 point was awarded on
    button just to get reward of bonus. making store calls and
    •Therefore, it favoured to those Therefore it showed no placement of Natural Life’s
    sales rep who were given large transparency of actual sales products at desired shelf
    volume stores generation location.
    BONUS STRUCTURE OF PHARMA TALENT
    Bonus Structure 1 Bonus Structure 2 Bonus Structure 3
    •Only those sales were • This structure was again •This structure gain could not
    recorded that were processed not in favour of those rep identify that Whether sales rep
    through their I Pad. who processed records have actually generated the
    through store’s system . sales or have only clicked on
    •This bonus structure did not added button to get the bonus.
    record the sales that were •It also ignored the efforts of Therefore it lacks the
    processed through the system added displays on store transparency in sales record.
    of stores. floor.
    • It was also unclear that
    •It was in favour of only those how sales representative
    •Sales rep were only
    sales rep who generated determined that pharmacist
    higher amount of sales in
    credited for increasing the have recommend the product
    dollars through their own shelf space
    system not through store’s
    system.
    BONUS STRUCTURE OF PHARMA TALENT
    Bonus Structure 1 Bonus Structure 2 Bonus Structure 3

    •.Sales representatives only •However, The Bonus structure •Conclusively, This bonus
    focused on generating higher 2 was aligning the objectives of structure 3 was better than
    sales in dollars amount to get Natural Life by increasing the BS1 and BS2. because it
    the reward. amount of Natural Life’s directly was making the
    product location in stores. contacts with stores in long
    •Sales rep did not focus on term which was the main
    making the potent customers or • Again, sales rep only focused objective of Natural Life
    providing customised solutions on generating the sales in company.
    according to customers’ needs
    dollars rather than focusing on
    •Therefore, BS3 did satisfy
    customers 'needs
    •Conclusively, this bonus Natural Life and partially was
    structure 1 was neither in favour in favour of sales
    of sales rep, nor did it meet the •Conclusively, It was partially representatives.
    objectives of Natural Life in favour of sales
    company. representatives ( because of two
    elements) and Natural Life’s
    goals as well.

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