* The company is headquartered in Baroda.
* Mr. Ranjit Deshmukh holds the position of the Vice President. * Plants set up in Tamilnadu, Hyderabad and Gurgaon.
* Markets bulk and cancer drugs and formulations.
* Strong sales force of 700 people, supervised by 85 sales managers. * Salespeople have to compete with multiple competitors in different markets. * Competitors are from local manufacturers to large multinationals.
Factors affecting sales effort
* Sales effort is largely affected by the personal attitude of sales force towards the organization, job and the profession. * In pharma sector, success largely depends on the growth in market share. * A negative attitude is more detrimental to the organization rather than to the individual. * Moreover it leads to low morale- this creates more problems to the organizations and also to the sales managers.
Results of low motivation level
* Such salespeople are mere order takers.
* They do not think creatively to increase sales.
* They have a tendency to blame the marketing programme for poor sales. * They will never accept the lack of effort on their part. * They talk against the company.
* They hardly give confidence to customers on the company’s products. * Become argumentative with supervisors.
* Also start giving credit to the competitor’s firm for their own sales failure. * Highlight the products of the competitor as being far better than that of their firm. * Complain that the salary paid to them is low.
* Sales expenses are lower than other companies and it is restricting them from their goal achievement. * Some of them even quit the company and join other firms in the same sector.
* Sales policy was altered considerably by the time product reaches to the customer level. * Sales people were not able to give their best to the company. * People felt that there is something rotten happening in the field. * There was something that was grossly wrong with the sales staff.
Means to identify the problems
* Conducting a formal study to identify the problems of the sales staff. * They agreed upon hiring an independent consultant who can really talk to the salespeople to identify the problem. * They prepared a questionnaire containing 115 items covering 26 attitude areas. * Respondents had to give their opinion on a five point agreement scale.
To make any remedial plan it is very essential to know what went wrong. 1. Issues related to security-
I. Not a satisfactory compensation package.
II. Fear from competitors.
III. Inferiority Complex.
IV. Below average attitude towards the company.
2. Issues related to achievement-
I. No recognition or rewards for path breaking ideas
II. No response on suggestions
3. Issues related to approval-
I. Low status of job
II. No rewards or recognition from higher management.
4. Issues related to advancement-
I. No plan for growth or advancement from company’s side. II. Insufficient salary structure- lower than industry average. 5. Issues related to leadership-
I. Dissatisfactory leadership.
II. Failure of middle management to lead the salespeople and to give creative ideas. III. Higher management doesn’t want to listen to the problems of salespeople. IV. No cross functional co-ordination in the organization. 6. Issues related to Human Behaviour-
I. Very high dissatisfaction among employees.
II. Less coordial relationship with finance and account departments as the problems related to advances & expenses are knowingly created by these departments.
1. A compensation package directly related to the performance should be developed. 2. The training should be given regarding superiority of the products over competitor’s products...