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Pilgrim Drug Company

This document summarizes a case study about reorganizing the sales territories in the Syracuse division of Pilgrim Drug Company. Key points include: - The Syracuse division was underperforming compared to other Pilgrim divisions. There was an opportunity to increase market share from 20% to 40% through reorganizing territories. - However, the division general manager was concerned this could damage sales force morale, as the existing territories heavily favored veteran reps over new reps. - A proper analysis of workloads, sales potential, and travel requirements should determine new basic territories, but the current system focused on seniority and geography. - In particular, the document examines reps like Miller, Donnelly and Nelson who

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Kriti Singh
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331 views10 pages

Pilgrim Drug Company

This document summarizes a case study about reorganizing the sales territories in the Syracuse division of Pilgrim Drug Company. Key points include: - The Syracuse division was underperforming compared to other Pilgrim divisions. There was an opportunity to increase market share from 20% to 40% through reorganizing territories. - However, the division general manager was concerned this could damage sales force morale, as the existing territories heavily favored veteran reps over new reps. - A proper analysis of workloads, sales potential, and travel requirements should determine new basic territories, but the current system focused on seniority and geography. - In particular, the document examines reps like Miller, Donnelly and Nelson who

Uploaded by

Kriti Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PILGRIM DRUG COMPANY

HEMANT
MOHANA
U RV I
TUSHAR
KRITI
NIMISHA

14P081
14P086
14P116
14P114
14P145
14P129

CASE BRIEF
Syracuse Division is not successful as other Pilgrim
divisions. It was below the median and mean for
other Pilgrim divisions(pg 2, para 4)
There was an opportunity for Thomas to look into
reorganizing the Sales Territories and getting reps to
adopt the corporations sales programs(pg 1, para
2)
In his opinion, the issues with present territories (pg
4, para 2):
No regard for the number of stores in the area
Sales potential
Travel involved

PROBLEMS AT HAND
There was a potential to increase Pilgrims share
of Syracuse division from 20% to 40% through
reassigning territories, as some other divisions
were functioning at 48%(pg 3, para2)
But Robert Jackson, the division general manager
had serious concerns about how reassignments
might damage sales force morale
There is a clear conflict in reactions from New
reps and old reps about the same

FACTORS TO CONSIDER WHEN


ORGANIZING SALES TERRITORIES
Select Basic
Control Unit

Analyze
Workload

Determine
Basic
Territories

Evaluate,
revise if
necessary

Customer
Contact
Plan

Assign to
Territories

BASIC CONTROL UNIT


Supposed to be divided using Sales and Market
Analysis Record System
Economics of selling costs
Transportation costs of delivery
Sales reps traveling expenses

Actually Divided by Seniority and Geography


This heavily favored the Vets and left the Newbies with
less than perfect accounts
(pg 3, last para)

ANALYZE WORKLOAD
Miller and Donnelly perform
poorly when compared to
others as
Miller has 43% of active
accounts and Donnelly has 53%,
where the average is 67.4%
(Exhibit 2)
Thomas believed that receiving
a larger share of the business
from each store would require
more selling time.. (pg 8, last
para)
all his sales reps skimmed the
cream from many of his
accounts..(pg 4, para 2)

Sales
as % of
PWPP
percentage
of assigned
I
Miller
Brooks
Murray
Nelson
Simpson
Subtotal

68.062
159.361
298.564
226.957
244.016
31.875

II
Howard
Taylor
Donnelly
Harrington

162.243
311.569
43.745
173.871

DETERMINE BASIC TERRITORIES


Since the
workload is not
evenly
distributed
We suggest
average no. of
active accounts
should lie
between 35 to 45
This should be
divided basis sales
and marketing
analysis record
system and
market potential

Accounts
1998
Active
Accounts
I
Miller
Brooks
Murray
Nelson
Simpson
II
Howard
Taylor
Donnelly
Harrington
Total

1998
Assigned
Accounts

Active
Accounts
as % of
assigned

39
49
33
46
29

90
55
44
53
48

43.33
89.09
75.00
86.79
60.42

32
29
56
26
339

44
29
104
36
503

72.73
100.00
53.85
72.22
67.40

42.375

62.875

ASSIGN TO TERRITORIES
Assignment of territories basis:
Equal Potential
Sales persons abilities
Sales potential of Territory

Currently, the assignment is biased on seniority,


disregarding the above factors
We suggest assigning territories based on sales
potential of the county and the ability of the
sales rep

NELSONS CASE
From Exhibit 3, we see Nelson is demanding
80% of the 80% of the 3 counties under Brooks
currently
Consequences:
Nelson has Sales % as PWPP as 36%(Ex 2), proving his
sales potential
He can be thought to assign few high performing
accounts but adding 16 accounts would increase his
workload. Hes already rushing calls (Pg 5), so a re
alignment clearly showing him the pros and cons would
be beneficial

THANK YOU

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