PARKIN LABORATARIES SALES FORCE EFFECTIVENESS Case Solution
The Parkin Company has facing difficulties in finding option in order to increase its regional sales. The company is concerned over the performance of the sales manager and team. The company fails to meet the target of sales in recent year. The company is considering for new strategies for sales and marketing of the products so that its revenues will be increase.
Parkin laboratories are the fastest growing company of India’s Pharmaceutical industry. The company started with little capital investment of just $1 million but the innovative products range leads the company to better position in market place. The company’s revenues grow at the rate of 21.4% over the past years.
In the developing economies the price moderator has the advantage over high priced products. The prospective consumers attracts towards the company which provides the high quality products in the reasonable price. Therefore the company has to minimize its operating cost and improving efficiencies for the development of quality product in reasonable price.
The operations of the company can be improved by thorough review of manufacturing process and identification of any bottleneck in the process. The proper course of action should be taken by an organization to the indentified bottleneck to address the problems in the processes so that the company improves its efficiency.
A part from operating efficiency the company has to reduce its cost in order to increase its market share. The cost reduction can be done through removing of hidden cost and examination of irrelevant cost. The company should spend its fund strategically no funds should be spend on value destroying activities. (Zoltners, 2009)
Currently the company faces challenges from the large competitors in the Pharmaceutical industry. Competitors of the company have good research and development which provides them new ideas and suggestions for the product development. The older player of the market has strong distribution networks so that they can distributes their product quickly and less costly as compare to the Parkin.
The pharmaceutical industry of India is growing at just 1% which indicates that the industry is at mature phase where growth rates are very low and in this case there are fewer opportunities for new entrants as the existing market player has strong market share. Slow industry growth leads to fewer opportunities but on the same time the company can increases its market share by improving its marketing and operating activities.
As the case indicates that major competitors of the Parkin has increased there revenue by 30% which indicates that market leaders increases their sales revenue by acquiring smaller companies in the pharmaceutical industry. Moreover the Pharmaceutical industry of India has good future prospects as indicated in the case. (accenture, 2013)
The brand equity foundation estimates that the industry will grow at the rate of 15% annually which provides great opportunities for the existing producers and new entrants. The purchasing power of the Indian consumer is improving and they are intended to spend on its healthcare which improves their standard of living.
The central government invests large funds for the infrastructure for improve health care mechanism in the country which provide the citizen better services with enhanced quality. The large competitors reduce their prices heavily in order to increases their market share. The Parkin can select different pricing strategy from the industry practices such as price skimming which improves the company’s profitability.
The company consistently in spends more funds in requirement of new sales staff which provides the company much advantage like improve distribution network. The company has to promote its products with the assistance from physicians and medical representative as the consumer trust on the medical representatives. The company should advertise those products which are effective in its core objective so that the consumer needs were fulfilled.
The company should focus on its product developments with the appropriate testing before market the product. The core objective of the business should be the providence of quality product to the customer base which in turn generates profitability. The company has to offer benefits to the sales representatives which are adding value to the company.
The training offered by the company to the sales staff improves their competencies and skills for selling the product. The products range of the company selling is anticipated that they are similar characteristic due to the test performed by the automatic devices. The company has to adopt appropriate testing machine for the specific product so the differentiation in the products range would be maintained and the company would sustain its position in the market.
The company’s pricing strategies would be highly affected by the government pricing control over the health care products. The company does not enhance their profit margins due to the regulatory requirement and certain percentage of profit is fixed by the author to justify the margin and profitability.......................................
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