Parkin Laboratories Case Solution
Background:
Parkin laboratories was an Indian pharmaceutical company, founded in 1987. It provided various drugs to the medical community and its core business, and that foundation was built by selling large volume to low-priced medicine to take advantage of both affordability and popularity. Since Parkin’s inception, the innovative generic pharmaceutical company has managed and successfully developed a range of 75 medications, which comprised: antibiotics, anti fungal drugs and much more. Moreover, it was identified that they have high sales representatives at each level that included district, regional and medical representatives were benefiting from Parkin's strong portfolio of products and its distribution network, which provided the sales team with a strategic advantage in the market.
Moreover, initially, the owner started the business on a small scale with around ten employees and small investment invested by his saving. Furthermore, it was expected that Parkin laboratories had a strong sales process that produced substantial sales growth and more accurate forecasting.
The company has missed growth target by 9.4% and only managed to grow by 10.6%, which led the executive to question the efficiency of the current sales force structure. Moreover, it was identified that at each level of management, unique skills were required to ensure the company’s competitiveness among the competitors. Furthermore, the company provided the specific training program that was assisted the manager and to focus on the essential skills needed to perform in the pharmaceutical industry.
The long-term goal of Parkin laboratories was to create the high-quality medicine with low-priced therefore, the consumers could avail it easily and get the fast recovery. Moreover, it was mainly focused on the targeted sales to cover many sectors of India and provide the best among their competitors.
Problem statement:
Parkin pharmaceutical faced difficulty in finding possible alternatives to increase its regional sales manager's productivity and efficiency to decide to either change the strategies or follow the same path it was currently using to achieve its sales target. In addition to this, the owner was unsure of whether it was the right time to launch Parkin's new product in the market.
Core issues:
Moreover, the consistency changes in the pharmaceutical industry decreased the sales volume and profitability ratio as compared to previous year. The company was using the oldest business models to forecast the portfolio. Furthermore, the management required effective workforce which would increase the sales volume and meet the desired targets. Moreover, it was expected that the company had faced few main core issues and these were listed below:
- Medical Laboratory Education
- Health care’s Professional Shortage
- Lack of government's Clinical Laboratory Improvement Adjustments
- Quality and safety.
Analysis:
It was expected that Parkin pharmaceutical was one of the leading organization of India with 625 pharmaceutical representatives and was widely spreadin the medical industry. Moreover, it was expected that the company had provided the basic selling processes training to all newly joined representatives to make sufficient sales in the market.
It was anticipated that the services offered by the laboratories were increased and perceived as homogenous because many tests were performed in an automatic device that used commercially obtainable chemicals and these changes were the signs of the commoditization of laboratories practice. Moreover, it was expected that external regularities were highly affected by the organization’s working pattern and pricing strategies. Furthermore, the government provided a certain amount of percentage to sell the product and accumulated revenue of every product.
After the analysis of Parkin's current lab comprising to its competitors, Parkin slowed down its sales revenue growth while its competitors were decreasing the sales revenue by offering high-quality products in the market at low price. Moreover, it was identified that the company had strong product line and best sales team. However, its sales force did notwork efficiently and effectively. Significantly, a detailed investigation found that some MRs did not allocate their focus on each class of customer properly and managed their time efficiently such as too much time spent waiting and that MRs did not implement the making plan correctly..................
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