Marketing Case Study: Therachem
Context
Executive summary
Smythe model
Consultant model
Alternatives
Recommanda tions/Limits
Therachem is a pharmaceutical company created in 1950, and has a portfolio of 7 different products Performance: The company has a significant revenue growth of 68% over the last 3 years, driven mostly by Arthroquell
Salesmen team: the sales rep’s job is to visit physicians and encourage them to prescribe Therachem drugs for their patients For the past 3 years Therachem has been growing its sales force by about 40 representatives per year and has expected this year to increase the number of reps from 433 to 473
Therachem is wondering if it has to maintain its 40-rep hiring per year rhythm or invest in human capital: A consultant report is suggesting Therachem to increase its sales force by 322 rep over the next 3 years, however is it opportune to do such a significant increase or is it too unrealistic?
Context
Executive summary
Smythe model
Consultant model
Alternatives
Recommanda tions/Limits
Goals
- Find the optimal solution for Therachem, taking into account strategic dimensions on the hiring rythm
Methodology
- Optimize number of reps and the allocation of reps between products -Resource Allocation analysis of the zero growth model, the Smythe model and the consultant model - Creation of alternative models
Assessement
- Smythe model is not optimal - The consultant recommandation may be optimal it shows some risks in terms of hiring a lot of new rep - There is an alternative with an optimal net contribution per new rep compared to the zero growth model
Recommandations
- Do not increase more than 40 person hiring per year - Do a more optimal allocation of human resource through the products
Context
Executive summary
Smythe model
Consultant model
Alternatives
Recommanda tions/Limits
Zero growth model
Arthroquell
Proxinil 144,0 $109,5
Executive summary
Smythe model
Consultant model
Alternatives
Recommanda tions/Limits
Therachem is a pharmaceutical company created in 1950, and has a portfolio of 7 different products Performance: The company has a significant revenue growth of 68% over the last 3 years, driven mostly by Arthroquell
Salesmen team: the sales rep’s job is to visit physicians and encourage them to prescribe Therachem drugs for their patients For the past 3 years Therachem has been growing its sales force by about 40 representatives per year and has expected this year to increase the number of reps from 433 to 473
Therachem is wondering if it has to maintain its 40-rep hiring per year rhythm or invest in human capital: A consultant report is suggesting Therachem to increase its sales force by 322 rep over the next 3 years, however is it opportune to do such a significant increase or is it too unrealistic?
Context
Executive summary
Smythe model
Consultant model
Alternatives
Recommanda tions/Limits
Goals
- Find the optimal solution for Therachem, taking into account strategic dimensions on the hiring rythm
Methodology
- Optimize number of reps and the allocation of reps between products -Resource Allocation analysis of the zero growth model, the Smythe model and the consultant model - Creation of alternative models
Assessement
- Smythe model is not optimal - The consultant recommandation may be optimal it shows some risks in terms of hiring a lot of new rep - There is an alternative with an optimal net contribution per new rep compared to the zero growth model
Recommandations
- Do not increase more than 40 person hiring per year - Do a more optimal allocation of human resource through the products
Context
Executive summary
Smythe model
Consultant model
Alternatives
Recommanda tions/Limits
Zero growth model
Arthroquell
Proxinil 144,0 $109,5