Presentation 1

Overview of Pakistan Pharmaceutical Industry
There are over 400 licensed pharmaceutical companies in Pakistan. Approximately one-third of Pakistan s total consumption of pharmaceuticals is imported. Market potential is good for antibiotics, vaccines, analgesics, tranquilizers, hormones, anti-hypertensive, anti-ulcer ants, cardiovascular, anti-cancer, psychiatric, contraceptives and birth control drugs.
In Continuation
The advantages of establishing the drugmanufacturing units in Pakistan, is that the country has a low-cost base and the cost of converting generic drugs into their more famous derivatives is among the lowest in the world.
The Economy Drivers

External economic factors include:
A very large population - 160 million people. An increase in per capita income which has provided greater disposable income for health related expenditures A cut in Government duties on pharmaceutical raw materials and packing materials. Manufacturing and marketing of cheaper new generic drugs by National Companies.
Internal economic factors

New generation of educated entrepreneurs in local companies. Availability of cheap raw material sources from abroad. Availability of Chinese machinery which is much cheaper as compared to other countries. Availability of trained manpower of Multinationals, to National Companies, because of merger related layoffs in MNCs. Production processes' rationalization and improvements. An increase in sales and marketing spending.
Glaxo Smith Kline Pakistan Limited

GlaxoSmithKline Pakistan, is one of the leading pharmaceutical companies in Pakistan and it's the world's second largest company with high ranking stands for Employee Care. GlaxoSmithKline Pakistan Limited was created on January 1st 2002. As a leading international pharmaceutical company GSK makes a real difference to global healthcare and specifically to the developing world.
Business Segments
GSK Pakistan operates mainly in two industry segment: Pharmaceuticals (prescription drugs and vaccines). Consumer healthcare (over-the-countermedicines, oral care and nutritional care).
key brands include:

Augmentin Panadol Seretide Betnovate Zantac and Calpol in medicine
Renowned consumer healthcare brands include:

Horlicks Aqua Fresh Maclean's Toothpaste ENO
GSK s business goal is to become the indisputable leader in the pharmaceutical industry. GSK requires to meet three key challenges that are: Improving productivity in research and development. Ensuring patients access to new medicine Reaching consumers beyond the traditional healthcare professionals.
The strategies to meet these challenges focus on several business drivers that are
Build the best product pipeline in the industry. Achieve commercial and official excellence. Improve access to medicines. Be the best place for the best people to do their best work. Global manufacturing and supply. Marketing and distribution.
Mission Statement
Vision Of GSK
The opportunity to make a difference to the lives of billions of people
GSK Products
GSK Standing Against Competitors With Market Share

COMPANY NAME GlaxoSmithKline Pakistan Ltd MARKET SHARE OF COMPANY AS PER NUMBER OF PRODUCTS (%) 11.15 TOP 10 COMPETITORS OF GSK Abbott Lab Pakistan Ltd. Novartis Pharmaceutical Pakistan Ltd. Sanofi-Aventis Pakistan Pfizer Inc Getz Pharma Merck Marker Roche Sami Hilton Searle
5.71 4.67 4.42 4.32 3.23 3.15 3.03 2.70 2.56 2.04
Target Market of GSK
GSK s Sales Objective

GSK focuses on increasing its sales volume Ministry of Health of Pakistan does not allow pharmaceutical companies to increase the prices of their products for the welfare of the public. Thus,it is one of the Business Strategies of GSK to improve the access of its medicines to people. GSK talks about this Business Strategy as:
Personal Selling As Major Promotional Tool

The percentage ratio of the use of Personal Selling and Sales Promotions by GSK is 80:20. As mentioned earlier, GSK has two target markets for the sale of its products: Healthcare Professionals (General Practitioners, Consultants/Specialists, Paramedical Staff), and Chemists.
Personal Selling For Healthcare Professionals:

The potential of a physician is determined based on the factors such as: physician s education and experience level, number of patients being treated the type(s) of diseases being cured by the physician locality of the physician s clinic/hospital financial background of the visiting patients, etc.
3-Star (Class A) 2-Star (Class B) 1-Star (Class C) 4-Star/Null-Star (Class D)
Personal Selling For Chemists:

GSK has Sales Representatives who aim their Personal Selling efforts at Chemists. These Sales Reps visit the chemists twice a week to: promote GSK s products take feedback from chemists about the effectiveness of distribution system solve complaints of chemists assess the market potential, etc.
How Is Sales Promotion Done At GSK?

Lectures In Annual Conferences Of Physicians Societies Exhibitions/Stalls In Annual Conferences Of Physicians Societies Stand-Alone:
SALES TERRITORIES
SALES TERRITORIES
SALES TEAMS DIVISION
DESIGNATION
REWARDS FOR TERRITORY PERFORMANCE

Three types of incentive systems: 1. Incentive For Achievement Of Overall VolumeBased Sales Target:
% OF SALES TARGET ACHIEVED INCENTIVE GIVEN
100-101 102-105 105-107 108 -110 Above 110
Rs. 1000 Rs. 4000 Rs. 7000 Rs. 10,000 Rs. 10,000
2 Incentives For Overall Sales Growth: Membership of Star Club:

Product Star: A gold medal is given in this incentive
type.
Regional Star: A gold-plated medal and a household

item worth Rs. 3000 is given to the winner.
Zonal Star: a cash of Rs. 50,000 are given to the winner.
3. Exceedership Award/Super Star: A prize of 1000 cc car is given to the winner.
PERFORMANCE EVALUATION OF TERRITORIES

Every sales territory has a volume-based sales target National Sales Targets General Teams Sales Target Zonal Sales Targets Regional Sales Targets Territory Sales Targets Targets are given for the annual sales which are the divided into the monthly sales targets.
PERFORMANCE EVALUATION OF TERRITORIES

National Sales Target
Sales Target of General team
Zonal Sales Target
Regional Sales Target Territory Sales target
Sales Force Training

The new sales person is hired on MSC basis, and given an initial training of 40 days before he actually starts his field work The person is given complete information about the products and their use, information about different disease areas, knowledge about territory management and customer handling skills, the information about the competitors, etc. After this training field work of the sales person starts and onthe job training is given to him.
Corrective Measures To Overcome Weak Territory Performance

A Root-Cause Analysis is done to find the reasons of the poor territory performance. Once the problems are identified, actions are taken accordingly to solve the problems. MSEs are responsible for the analysis of territory performance. Sometimes the reason of poor territory performance is the competition. This is the local and common problem. In case of strong competition in a particular territory, MSE asks their managers about ways of dealing with competition. Whatever strategies he suggest, are implemented by MSEs. Sometimes the territory performance is weak due to some side-effects of the products
Distribution System Of GSK

The entire distribution system of GSK is computerized. GSK has special software, which has been taught to all the distributors, to quickly and efficiently deal with It The distributors take purchase order from chemists, and then deal with the company for the shipment of required items. All the dealings between the company and the distributors are computerized and the purchase order quantity and price are also calculated by the software.
The computer generated program ensures the availability of products with the distributors and the chemists. Hence there is never a shortage of GSK products with the middle men, except for the newly launched products whose sales forecast differs from the actual sales.
Credit Terms And Trade Offers

GSK offers no credit terms to its distributors as GSKs payment receiving system does not work on accrual basis. Products are shipped to the distributors only when they send a payment draft to GSK.
RECOMMENDATION
Incomes of sales person in GSK are fixed. They are given few additional incentives depending their level of performance. There is no concept of commission which in our opinion should be present. This commission will enable them to motivate and develop more accounts and thus helps in increasing sales volume which is the sales objective of GSK. It will highlight: High performing employees !

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Overview of Pakistan Pharmaceutical Industry

The Economy Drivers

Internal economic factors

Glaxo Smith Kline Pakistan Limited

key brands include:

Renowned consumer healthcare brands include:

GSK Standing Against Competitors With Market Share

Target Market of GSK

GSK s Sales Objective

Personal Selling As Major Promotional Tool

Personal Selling For Healthcare Professionals:

3-Star (Class A) 2-Star (Class B) 1-Star (Class C) 4-Star/Null-Star (Class D)

Personal Selling For Chemists:

How Is Sales Promotion Done At GSK?

SALES TEAMS DIVISION

SALES TEAMS DIVISION

SALES TEAMS DIVISION

SALES TEAMS DIVISION

SALES TEAMS DIVISION

REWARDS FOR TERRITORY PERFORMANCE

100-101 102-105 105-107 108 -110 Above 110

2 Incentives For Overall Sales Growth: Membership of Star Club:

Regional Star: A gold-plated medal and a household

Zonal Star: a cash of Rs. 50,000 are given to the winner.

3. Exceedership Award/Super Star: A prize of 1000 cc car is given to the winner.

PERFORMANCE EVALUATION OF TERRITORIES

PERFORMANCE EVALUATION OF TERRITORIES

Sales Target of General team

Zonal Sales Target

Regional Sales Target Territory Sales target

Sales Force Training

Corrective Measures To Overcome Weak Territory Performance

Distribution System Of GSK

Credit Terms And Trade Offers

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