Question
Sicker Rx is a leading pharmaceutical manufacturer and distributor within the North American and Latin American markets. The company sells 3 main pharmaceutical products. The
Sicker Rx is a leading pharmaceutical manufacturer and distributor within the North American and Latin American markets. The company sells 3 main pharmaceutical products. The first product is Xenocel, which is used as a post-surgical heart medication. This medication is for patients immediately following a hear procedure to quickly get the heart back into normal rhythm. The target market for this drug is Cardiologists. The second drug is Zylogam, which is a general antibiotic used for viral and bacterial infections and is mostly prescribed by general practitioners. Finally Sicker Rx manufacturers and distributes Cenophel, a beta blocker used for stroke victims immediately after they have had a stroke. This beta blocker reduces the chance of a second stroke by over 85%. The target market for this drug is Neurosurgeons.
Given the success of these drugs in North America and Latin America the company wants to expand distribution into the European market. They are using a sprinkler approach to distribution and have targeted 6 countries to launch their products. The six countries are as follows:
- United Kingdom
- Germany
- Switzerland
- France
- Austria
- BelgiumSicker Rx is a leading pharmaceutical manufacturer and distributor within the North American and Latin American markets. The company sells 3 main pharmaceutical products. The first product is Xenocel, which is used as a post-surgical heart medication. This medication is for patients immediately following a hear procedure to quickly get the heart back into normal rhythm. The target market for this drug is Cardiologists. The second drug is Zylogam, which is a general antibiotic used for viral and bacterial infections and is mostly prescribed by general practitioners. Finally Sicker Rx manufacturers and distributes Cenophel, a beta blocker used for stroke victims immediately after they have had a stroke. This beta blocker reduces the chance of a second stroke by over 85%. The target market for this drug is Neurosurgeons.
Given the success of these drugs in North America and Latin America the company wants to expand distribution into the European market. They are using a sprinkler approach to distribution and have targeted 6 countries to launch their products. The six countries are as follows:
- United Kingdom
- Germany
- Switzerland
- France
- Austria
- Belgium
You are the European Country Manager for Sales for Sicker Rx. You must set up a sales team for the initial 6 countries. Then, depending upon the success of the launch in these countries you have the authority to expand into other European countries.
There are many challenges facing the structure of a sales force, one being the language barrier. The other major challenge is the number of physicians that the sales force must call on, as well as the geographical distance. The following table gives some detail regarding the target market and potential market of the 6 countries.
Country | Cardios | GPs | Neuros | Potential |
UK | 150 | 1200 | 100 | $30 mill |
Germany | 150 | 1500 | 120 | $45 il |
Swiss | 50 | 750 | 30 | $18 mil |
France | 110 | 1000 | 70 | $27 Mil |
Austria | 60 | 500 | 30 | $15 Mil |
Belgium | 30 | 250 | 50 | $11 Mil |
The other major challenge is economics. You have an annual budget of $1,750,000, which you must use to hire a sales team to cover the 6 countries.
Your salary is $210,000 and does not figure into the budget for the sales team. In addition, your expense line also does not figure into the budget. You can live in any of the countries or you can choose to remain in the US and travel as needed.
Each outside Sales Rep costs $100,000 fully burdened. (IncludingSalary, Expenses and Benefits)
Multi Lingual outside sales reps cost $150,000
Inside Sales Rep costs $60,000 fully burdened (all multilingual)
Constraints
- YOU MUST STAY UNDER BUDGET
- Only 1 Rep per Drug
- Xenocelhas a profit margin of $50 per dose
- Zylogamhas a profit margin of $5 per dose but is much more widely used
- Cenophelhas a profit margin of $70 per dose
- Xenocel and Cenophel are much more complex and require much more intensive selling.
- An outside drug rep can make 4-5 calls per day and should work on a rotation of 5 weeks. (In other words they need to call on the practitioners once every 5 weeks.)
- An outside drug rep can not be in the field 5 days per week. (You must estimate how many calls an outside rep can make in a week.)
- Inside reps are required to make 30 calls per day
Assignment
You are to set up your sales team and determine:
- How many outside reps?
- How many inside reps?
- Where are the reps going to be located (Country and City?)
- How many are going to sell each drug and in what countries?
- How many are going to be multilingual
- Where is your call center going to be (country and City?)
- Where will you live?
You must add up your budget and make sure you have coverage.
Answer the full assignment if you can
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