Pilgrim Drug Company

Chitwan Singh – 13P018 DivyaYadav – 13P020Tejaswi Kalisipudi – 13P052Vidushi Garg – 13P055Vikas Guleria – 13P056

Context• The Syracuse division was performing below the median and

the mean from of other pilgrim divisions• Brooks was retiring giving Thomas the opportunity to

reassign individual accounts among the divisions Sales Reps• Through reorganization, Thomas wanted to double Pilgrim’s

share of the Syracuse area wholesale drug business from 20% to 40%

• Robert Jackson had concerns about reassignments damaging sales force morale

• Thomas is faced with a possible sales rep revolt because of his proposed territory reorganization

Problem

• Reassigning Brooks Territories between Nelson and the newer sales reps

• Considerations : Sales force morale Selling expenses Increase in sales

Sales Rep AnalysisSALES REP ABILITY

INDEXEVALUATION

Nelson 0.36 Earnest, Conscientious and Hard working.Needs to update merchandising method

Miller 0.092 Even tempered , Cooperative

Simpson 0.24 Continuous complaining about trivial matter

Murray 0.34 Excellent sales rep and relationship with SchultzNot in alignment with Thomas

Taylor 0.424 Ambitious & aggressive ,Remarkable output (Generated sales of $50,000 from revival of 6 hospital accounts)

Howard 0.244 Increased Sales each year using Thomas’s merchandising techniques

Donnelly 0.115 Too large territory to handle, Needed proper guidance

Harrington 0.212 Potential to become an excellent sales person

Vete

rans

New

Alternatives

• The accounts requested by Nelson given to him and the rest given to Taylor

• Brooks accounts equally divided between Nelson and Taylor

• Geographic Distribution : Nelson gets St. Lawrence, Jefferson and OswegoTaylor gets Lewis, Onondaga and Oswego

Alternative 1County Brook’s Sale Market Potential Nelson’s

Estimated SalesIncrease in Sales

Jefferson 610,600 2,269,888 817,160 206,560

Oswego 1,479,250 5,499,071 1,979,665 500,415

% Sales increase 34%

County Brook’s Sale Market Potential Taylor’s Estimated Sales

Increase in Sales

Jefferson 119,572 444,506 188,470 68,898

Oswego 370,054 1,375,665 583,282 213,228

Lewis 432,072 1,606,216 681,035 248,963

% Sales increase 58%

Combined Sales Increase : 41%

Alternative 2

Sales Rep Brook’s Sales Market Potential Estimated Sales Increase in Sales

Nelson 1,505,774 5,597,673 2,015,162 509,388

Taylor 1,505,774 5,597,673 2,373,413 867,639

% Sales increase 46%

Total Territory Sales : 3,011,548 Market Potential: 11,195,346

Sales Increase : 46%

Alternative 3County Brook’s Sale Market Potential Nelson’s

Estimated SalesIncrease in Sales

Jefferson 730,172 2,714,394 977,181 247,009

Oswego 1,479,250 5,499,071 1,979,665 500,415

% Sales increase 34%

County Brook’s Sale Market Potential Taylor’s Estimated Sales

Increase in Sales

Lewis 432,072 1,606,216 681,035 248,963

Oswego 370,054 1,375,665 583,282 213,228

% Sales increase 58%

Combined Sales Increase : 40%

Recommendation

Alternative Sales Growth (%) Morale Territory Clashes

1 41 N ↑↑ T ↓ Least

2 46 N ↓↓ T ↑↑ High

3 40 N ↑ T↑↑ Medium

Geographic Distribution : Nelson gets St. Lawrence, Jefferson and OswegoTaylor gets Lewis, Onondaga and Oswego