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The learning outcomes are as follows: what tasks are to be done by medical representatives in pharmaceutical industry? This study also highlights various competencies required to do effective selling in this industry; analyzes and discusses different unethical practices going on in the market; explains why ethical norms are necessary in sales context when sales targets are already achievable with unethical means; and develops and comments on strategies Flori Pharmaceutical can make to overcome on these unethical issues. What should be the response of Dahar to the email of Naveed khan? What course of action should be taken by Dahar in the deceitful reporting case of Mohsin Ali?

Flori is considered a leading and growing multinational organization in the highly competitive environment of Pakistan pharmaceutical industry with over 40 years of experience. The company aims to command a leading position in developing new health-care products as it offers a wide range of diabetic, cardiovascular, respiratory and vitamin products based on quality as a result of high research and examination. Recently, an email to Bilal Dahar on March 2017 from Flori’s star sales person Naveed Khan has forced management to take some strong decisions regarding ethical norms and values to be adopted by medical representatives of Flori pharmaceuticals. The email highlighted the issues related to sales pressure which are leading toward unethical sales practices. Dahar just not have to maintain Flori’s ethical code of conduct but he and his team also has to work hard to achieve more than 26% growth rate in sales revenue as compared to last year. Dahar knew that the highly competitive environment of pharmaceutical industry has led most of the stake holders to indulge in unethical behavior to achieve their individual targets. He knew that this is dangerous in long term for the multinational organizations such as Flori pharmaceuticals as if the similar behavior continues, the sales culture and values of the organization would be on stake. He also has to decide what decision to be taken against deceitful reporting issue of one of the top-performer territory managers, who was key person in helping Flori to close the sales year 2016 with the revenue of Rs. 6.4bn, a 26% growth over the last year. The case is rich enough to provide a platform regarding management of several ethical challenges in pharmaceutical selling and developing strategies based on them.

BBA, MBA final year.

Teaching Notes are available for educators only.

CSS 8: Marketing.

Entrepreneurship.

The case can be used to teach behavioural perspective of the entrepreneurship theory for the students of Master of Business Administration (MBA) level. The case may be equally important to teach the marketing and operational context to discuss the perspectives of small- and medium-sized enterprises (SMEs).

A young Indian professional had left his lucrative job in the pharma industry to start his own business of a small training centre that trained and placed young graduates with various pharmaceutical companies as medical sales representatives (MSRs). Without borrowing anything from the financial institutions, he plunged into the business in a rented room of a school in Kolkata, India. With every sincerity and path-breaking strategy, his vocational centre, named Carreograph Institute of Management Studies (CIMS) became number one in eastern India in training and placing MSRs and managers. With a number of hand-picked professionals from the industry, this young entrepreneur changed the concept of training by introducing short-term courses like Diploma in Pharmaceutical Management to technically prepare pharmacy undergraduates with professional skills and industry overview, Post Graduate Diploma in Pharmaceutical Management to cater to the contemporary management needs of the pharma industry. For the first time in India, Carreograph launched MBA in Pharmaceutical Management in the distance learning mode, and this strategy revolutionised the concept of management teaching in India. With a huge success in MBA, Carreograph was on the verge of launching another path-breaking course, i.e. Bachelor of Business Administration (BBA) in pharma in the distance learning mode.

To analyse Tamal Chatterjee's entrepreneurial characteristics, motivations and expertise in the field and how these parameters support his proposed new venture, to consider the effectiveness of his entrepreneurial methods for finding out more about the proposed business area in which he is interested and to evaluate his idea of newly developed MBA and BBA programmes in terms of its expected acceptance among the student communities and consider if and when he should go ahead with expanding his current venture.

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This case was written to help students develop their analytical and decision-making skills with regard to sales force evaluation. It identifies a variety of issues – in the Pakistani context particularly – within the sales force environment, including union representation, sales force team conflicts and power dynamics between superiors and subordinates. The various case lessons will enhance students’ analytical, negotiation and team-management skills. This case can be used to discuss the following issues: the complexity of objective and subjective evaluations of a sales force, sales force perceptions and cultural nuances for succeeding in Pakistan. Distribution structures and management in Pakistan. Characteristic features of the Pakistani pharmaceutical market. Students will be able to explain how salesperson performance information can be used to identify problems, determine their causes and suggest sales management actions to solve them. Students will be able to differentiate between an outcome-based and a behaviour-based perspective for evaluating and controlling salesperson performance. Students will understand how to control one’s behaviour in conflict situations by identifying common interests and achieving a “win-win” situation.

The Al-Ain case describes sales force management and sales force evaluation in a situation that involves a high-performing team operating in a hostile environment. Al-Ain eye centre (Al-Ain), located in the city of Karachi in Sindh state of Southern Pakistan, is a small-scale hospital that has diversified into the pharmaceutical business. Al-Ain’s product portfolio includes analgesics, antibiotics, ophthalmology products and cardiology products. This case focusses on team management and the relationship between a sales manager and subordinate salespeople in the context of Pakistani culture. A sales representative has received a poor performance assessment, which he perceives to be an unfair evaluation of his efforts. As a result of the situation, he subsequently joins a union and creates problems for his superiors. As they explore these management issues within a sales force, students will develop an appreciation for objective methods of sales force evaluation, as well as for the complexity of handling high-performing teams, the importance of employee perceptions and the scope of subjective biases in sales force evaluation that can emerge in practice.

The case is suited to undergraduate or MBA courses on sales management, organizational behaviour, distribution management, marketing/strategy and pharmaceutical industries. It addresses issues of sales force management, sales territory allocations, sales target fixation, team conflict, promotion, team bonus and distribution management in the pharmaceutical industry in Pakistan.

Teaching Notes are available for educators only.

CSS 8: Marketing.

In September 1990, the financial controller of this Italian subsidiary of a large pharmaceutical company must analyze the implications of two different strategies for introducing a new product into the Italian market: co-marketing distribution, in which Glaxo would permit another company to market the same product but under a different brand name; and direct sales, under which Glaxo's own sales force would be the sole channel of distribution. The tasks for the student are to scrutinize and correct financial forecasts contained in the case and then value the alternative cash flow streams. The purpose of the case is to exercise students' forecasting and valuation skills and to illustrate the application of discounted cash flow analysis to the choice of marketing policies.

Learning outcomes (objectives and outcomes) are as follows: to understand the brand positioning, brand building and category extension decisions of a pharmaceutical brand (operative in one of the most competitive and regulated industries in a developing country); to analyze the outcomes of decisions pertaining strategic sales, branding, marketing and strategic restructuring to overcome the challenges of growth; and to design strategic solutions for developing brand equity.

This case explores the strategy of launching and establishing a pharmaceutical brand in an industry that tends to be a highly technical and the most regulated industry. It depicts market research data, industry analysis, stiff competition and regulatory affairs, and elaborates various strategic decisions taken by the company. The primary data for the case is accumulated through in-depth interviews from six industry experts on pharma marketing who were well acquainted with Maple Pharma and secondary data is gleaned from substantive literature. Maple Pharmaceuticals launched Starpram, a high-growth, high-potential generic antidepressant brand (in the central nervous system category) containing Escitalopram molecule/chemical. It had expertise cum competitive advantage in cardiovascular and anti-diabetic streams, but such initiative appeared category extension, with the intention to diversify risk and expand the company to achieve greater economies of scale. The first year sales revenue for Starpram appeared too bleak to spur further product inaugurations. Consequently, strategic overhaul transpired to establish the brand in the highly fragmented pharmaceutical industry. The firm lacked experience in anti-depressants category, coupled with poor sales, marketing mix and overall marketing strategy. Eventually, the management exercised strategic restructuring to establish brand equity and observed growth.

Study levels/Applicability graduate (MBA), MS, PhD (management sciences).

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CSS 8: Marketing.

Prayas is a unique healthcare initiative, launched in India by Sanofi-Aventis, a French multinational pharmaceutical company, with the objectives of updating the medical knowledge of doctors in semi-urban and rural areas, bridging the gap between diagnosis and treatment, and making available quality medicines at affordable prices. This case discusses the evolution of the Prayas model from its inception to its current state, and the company's business strategies around it. Cognizant of the success of Prayas, many competitors of Sanofi-Aventis are actively developing and implementing similar models. The company's top management team has to respond to the competitive threat.

Competitive strategy.

Post-Graduate (MBA/Doctoral) level courses.

This paper aims to examine the evolution of Himalaya Drug Company (hereinafter referred to as Himalaya), an Ayurveda-based pharmaceutical-wellness company. Over the eight decades of its history, Himalaya has built a reputation for Ayurveda-based formulations that conform to allopathic standards and are accepted globally. In the recent years, Himalaya dramatically strengthened its competitive position of “scientific Ayurvedic products” through its entry into fast-moving consumer goods (or consumer-packaged goods), categories of wellness products as well as over-the-counter (non-prescription) drugs. This case describes the focused differentiation strategy of Himalaya and sets out the challenges it faced/would face in sustaining its focused differentiation strategy, as it enters into highly penetrated categories such as toothpastes and soaps (that were traditionally dominated by broad differentiators and broad cost leaders).

The outcomes are as follows: to exemplify the logic of focused differentiation, where a competitor commands a higher willingness to pay than its average competitors, by narrowing its target segments; to illustrate how the firm’s entire set of activities are tailored to meet the specific needs of a set of carefully chosen products, narrow customer segments, of defined geographic markets; to highlight how a combination of tradeoffs and fit helps protect the firm’s competitive position from its potential imitators; and to demonstrate the limits of a focused strategy, specifically relating to growth, and how a company such as Himalaya can overcome such limits.

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CSS 11: Strategy.

Pharmaceutical marketing, brand protection.

It could be used with the pharmaceutical marketing students and MBA students for analysing counterfeit medicines' menace in developing countries and positioning of a disruptive technology. The case could be used for marketing consultants, Brand managers and executive development programmes to explore issues such as protecting brands through technology, pharmaceutical packaging marketing, competitiveness of counterfeit drugs, global harmonisation.

Against the backdrop of rising menace of counterfeit drugs in developing countries, the case talks in particular about an innovative pharmaceutical packaging company. The company has developed a unique security technology called non-ClonableID™ which can enable products to be authenticated throughout the supply chain, thus protecting brands and preventing misuse. Despite a promising technology, it poses challenges regarding its adoption and commercial success.

Counterfeiting as an inevitable result of Globalization has become a global nuisance and has to be dealt at global level. Brand protection could be one of the lowest cost tools for pharmaceutical companies to restore public confidence in their products and themselves. While all methods for anti-counterfeiting are known to have short lives the menace still must be dealt with. For this, companies need to deploy anti-counterfeiting strategies that set up various layers of security.

Teaching note.

Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. The firm's patent for Prilosec (active ingredient omeprazole) was expiring. Severe cost-based competition from generic drug manufacturers was inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm, but Prilosec was the firm's most successful drug franchise, with global sales of US$6.2 billion. How could the company innovate its way around the generic cost-based competition and avoid the drop in revenues associated with generic drug market entry? AstraZeneca had other follow-on drugs in the pipeline—namely Nexium, an improvement on the original Prilosec molecule. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an OTC version of omeprazole that might tap into other markets. Ideally, AstraZeneca would like to move brand-loyal Prilosec customers to Nexium. In this market, direct-to-consumer advertising has remarkable efficacy. Classical marketing challenges of pricing and promotion need to be resolved for the Nexium launch as well as possible product and place challenges for the generic or OTC opportunity. Which combination of marketing options will allow the firm to best sustain the value of the original omeprazole innovation?

The central objective of the case is to teach students how marketing variables can be used by first movers with diverse product portfolios to fend off severe price competition. These variables include pricing, promotion, product, and place (distribution) options as considered in the context of branded, generic, and OTC pharmaceutical market segments.

The HR President of Lupin and the Head of Learning and Development, were looking with satisfaction at the latest attrition figures. The annualized attrition rate for managers had been showing a steady decline, and was pegged at 1% for the first quarter of 2010–11, much lower than the industry average of 35%¹. It had been a long, arduous journey and figures were looking decent for now. However, the HR President knew that this was just the beginning. With competition intensifying in the industry, the war for talent was going to heat up further. He wondered how they were going to manage talent in an industry which was fast-growing, insular and obsessed with domain knowledge.