Avoid High Operating Cost
Regionalization / globalization of sales & marketing efforts is driven by cost-benefit decisions across brands and countries
Sheer growth in top line is not the ultimate goal , a balanced growth in the bottom line is required.
Cost pressures are mounting up , it becomes more imperative to undertake efforts to reduce costs.
Market today is facing a price war and with inflation & eroding margins for capturing market share, cost of servicing is increasing.
It’s time to rethink on net profit
Accelerate the focus on cost management/containment.
Focus on ROI in every business decision.
Understand the forecast implications of all promotional activities and demonstrate the value for each dollar/rupee spent.
Various expense parameters play an important role in diminishing the gap of forecast vs actual and decreases the net profitability. Example, special offers, product discounts, senior management visits, domestic and international trips, educational materials, patient camps, customized and personalized inputs, screening camps, dinner meetings, workshops, club membership, trade discounts, dealer margins and various others.
Rethinking on penetration
Despite increasing Focus, Penetration and coverage are challenging targets.
Sales Reps are Fighting Harder for Less Physician Time.
As marketers, we face these questions everyday & they always bother each and everyone.
Is the 80:20 business rule still a myth.
Various global companies today believe that greater number of audiences have influence on more business uptake.
Call Planning and Coverage flows from product portfolio and proper execution of Sales Strategy.
Wide variance in coverage indicates a very meaningful opportunity to enhance sales effectiveness by increasing Penetration.
In general as the travel increases, there is a decline in the sales.
Industry estimates are that up to 30% of calls are ineffective (wrong physicians, wrong frequency, wrong product).
Proper penetration helps deriving what it takes to get there, particularly on sales leverage points.
Deep down penetration and coverage backed with market events enables to see impact on sales with different resourcing strategies.
Rethinking Forecast vs Actual
The products look good as it progresses through the various stages of life cycle, with increased expenses numerous questions will start running through your minds…
Starting from simple ones:
- What is the right way to reduce the gap of my forecast vs actual?
- What are the activities required, to get the return of the investment?
- What is the right sales force structure to promote my products and meet the demand of the market?
- What is the right way to think of optimizing my distribution network for better coverage, service and expenses?
- What would be the coverage plan for customers to get the right returns?
These questions are made even more challenging when launching more “targeted” therapies or into “niche chronic ” disease areas…
- Upgrading to business collaboration and strategies help in optimizing costs
- Will help to have wider market access and relationship management
- Will enable deep down key account penetration & coverage thereby increasing sales efficiencies
- Business efficiencies now require partnership, collaboration to optimize eco system cost equation
- Collaboration and Team work complement the expensive legwork with cost effective solutions for ground level field force
Rethinking Channel Sales
All organizations whether big or small face this challenge everyday
The present operation model needs to be relooked, re thought.