Maha Research Labs: Sales Force Expansion
(5 pages of text)
In March 2018, the managing director of Maha Research Labs Private Limited, a pharmaceutical company in India, was charting his 2020 vision for the company. His ambitious plan was to achieve net revenue of ₹1 billion in 2018 and to have a pan-Indian presence and sales revenue of ₹2 billion in 2020. The managing director knew that the company would need to expand rapidly over the next year to meet these goals. First, however, he needed to assess several factors that would be key to deciding the sales targets. He also needed answers to some serious questions: How should the sales organization be designed? What sales force structure would be appropriate? Should the company opt for a generalist sales force structure or a specialist sales force structure? What was the optimal size for the sales force? What processes should the company follow to design the sales territories?
This case is designed for use in a graduate-level marketing course on sales force expansion or in a sales management course to introduce sales force sizing concepts and sales force budgeting. The focus on an expanding Indian pharmaceutical company allows students to analyze various ways of calculating the ideal sales force size and address issues regarding territory management. After working through the case and assignment questions, students should be able to do the following:
- Explain the different factors that affect sales management.
- Determine sales targets by assessing a firm's internal and external factors.
- Outline the steps in designing a sales organization.
- Describe various methodologies for calculating sales force size.
- Explain the process of allocating sales territories.
Health Care Services
India, Medium, 2018
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