Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Onco Care Pharmaceuticals
1.
2. Introduction of the Company
Core function is to import market medications
internationally
Onco Care is built upon the philosophy of quality service,
reliability and added value.
We have targeted a niche and neglected market i.e.
‘Oncology’
It is basically a company that imports and markets Anti-
cancer medications from South Korea.
3. Mission
“Our mission is to provide safe ,
effective and affordable medicines
to millions of people who are in
need"
4. Organizational Hierarchy
NavaidM.Khan
CEO
Hamza Azeem
VP Marketing
Marketing Manager
Shayan Tejani
VP Sales
Mujtaba Sheikh
Product & Training Manager
Zainab Sarwar
RSM Karachi
RSM Multan
RSM Lahore
RSM Islamabad
RSM Peshawar
Sabah Ashraf
HR Manager
Zarlish Usmani
Finance Manager
Cashier
Business Analyst
Distribution Manager
Accountant
PersonalSecretary
7. Azafrine Tablet
Azafrine is used with other medications to
prevent rejection of a kidney transplant.
It works by weakening your body's defense
system (immune system) to help your body
accept the new kidney
Selling Price is Rs: 1,230/Box
Competitors: GSK, AHP
8. Blenco - Injection
Bleomycin is used to treat cancer. It works by slowing or
stopping the growth of cancer cells.
This medication may also be used to control the build-
up of fluid around the lungs caused by tumors that have
spread to the lungs. For this condition, bleomycin is
placed in the space around the lungs through a chest
tube.
SellingPrice is Rs: 1,245/(Vial/Box)
Competitors: Cipla Pharma, Atco Pharma
9. Carbotionol - Injection
Carboplatin is used to treat various types of cancer. It is a
chemotherapy drug that contains platinum.
It is used alone or in combination with other medications
to slow or stop cancer cell growth.
Selling Price is Rs: 2,225/Box
Competitors: Atco, BioPharma, Pfizer, Cipla
10. Daunocin
Daunorubicin is used to treat leukemia and other
cancers.
It works by slowing or stopping the growth of cancer
cells.
Selling Price is Rs: 637/Box
Competitors: No Competition
11. Duticin Injection
Dacarbazine is used to treat certain types of cancer,
such as skin cancer that has spread (metastatic
malignant melanoma) and Hodgkin's disease.
It is a cancer chemotherapy drug that is used alone or
with other medications to slow or stop cancer cell
growth.
Selling Price is Rs: 556/Box
Competitors: Medinet, Al Habib Pharma
12. Etopul Injection
Etoposide is used alone or in combination with
other chemotherapies to treat certain forms of
cancer (e.g., small cell lung cancer).
Etoposide works by slowing cancer cell growth. It is
also commonly known as VP-16.
Selling Price is Rs: 6,265 (10Apm/Box)
Competitors: Bio, Atco, AHP, Pfizer
13. Gemcit Injection
Gemcitabine is used alone or with other
treatments/medications to treat certain types of cancer
(including breast, lung, pancreatic).
It is a chemotherapy drug that works by slowing or
stopping the growth of cancer cells.
Selling Price is Rs: 10,100/Box
Competitors: AHP, Ely Lille, Novartis, Ferozsons
14. Kunyrin Injection
This medication is used to treat or prevent
serious blood cell disorders caused by high
toxicity drugs.
It may also be used with a certain cancer drug
to treat patients with colon cancer.
Selling Price is Rs: 5,562/box (10amp=1box)
Competitors: AHP, Atco, Bio Pharma
15. Onfran Injection
This medication is used alone or with other
medications to prevent nausea and vomiting
caused by cancer drug treatment
(chemotherapy) and radiation therapy.
It is also used to prevent and treat nausea and
vomiting after surgery. It works by blocking one of
the body's natural substances (serotonin) that
causes vomiting.
Selling Price is Rs: 3,840/Box (5vial/box)
Competitors: GSK, Bio Pharma, Novartis, Zafa
16. Unistin Injection
Cisplatin is used to treat various types of cancer. It
is a chemotherapy drug that contains platinum.
It is used alone or in combination with other
medications to slow or stop cancer cell growth.
Selling Price is Rs: 4,250/Box (10Vial/Box)
Competitors: AHP, Atco, Cipla, Pfizer
17. Unitaxel - Injection
Paclitaxel is used to treat various types of cancer.
It is a cancer chemotherapy drug that works by slowing
or stopping cancer cell growth.
Selling Price is Rs: 5936/box (1vial/box)
Competitors: Atco, BioPharma, Ferozsons
18. Utoral Injection
Fluorouracil is used to treat various types of cancer.
It is a chemotherapy drug that is used alone or in
combination with other medications to slow or stop
cancer cell growth.
Selling Price is Rs: 1,335/box (10Vial/Box)
Competitors: AHP, Atco, Bio Pharma
19. Vinracine Injection
Vincristine is used to treat various types of
cancer.
It is a cancer chemotherapy drug that is usually
used with other chemotherapy drugs to slow or
stop cancer cell growth.
Selling Price is Rs: 3,393/Box (10vial/box)
Competitors: Pharmatech
20. Zycram Injection
Zycram is used to treat various types of cancer. It is a
chemotherapy drug that works by slowing or stopping cell
growth.
Zycram also works by decreasing your immune system's
response to various diseases. It is used to treat a certain type
of kidney disease in children after the failure of other
treatments
Selling Price is Rs: 358/Box
Competitors: No Competitors
27. Cancer Awareness Seminars
Cancer Awareness Seminar In Collaboration with SIUT and Agha
Khan Hospital.
Venue: Pearl Continental Hotel, Karachi
Invitation to 30 A Class Doctors all over Pakistan
Invite all the students of Medical University to create awareness
about the cancer related diseases.
28. Sponsorship To Global Educational
Conference
Sponsoring our A Class Doctors to attend Global Cancer
Seminars/Conference:
31. Responsibilities of VP Sales
Onco Care is striving to cure cancer with breakthrough medicines
that have been produced abroad in world-class laboratories
The Oncology Unit and Business Unit have been designed to work
with a mutual commitment to delivering highly innovative and
commercially viable cancer therapies
The VP Sales is responsible for achieving the company’s revenue
and growth targets
The VP Sales manages multiple Regional Sales Managers (RSM) who
supervise their individual sales team within their territory
Pharmaceutical sales representative is in charge of developing
relationships with pharmacists and doctors
Division of customers on the basis of geographic territories is most
apt for Onco Care Pharmaceutical
31
33. Target Institutions – REGION 1
REGION 1
KARACHI HYDERABAD
Aga Khan University Hospital Nuclear Institute of Medicine &
Radiotherapy (NIMRA)
Liaquat national hospital LARKANA
Jinnah post medical centre Larkana Institute of Nuclear Medicine &
Radiotherapy (LINAR)
Ziauddin Hospital QUETTA
Baqai Hospital Centre for Nuclear Medicine &
Radiotherapy (CENAR)
Karachi Institute of radiotherapy and
nuclear medicine (KIRAN)
Bolan medical complex
Civil Hospital NAWABSHAH
Children Cancer Hospital NORIN HOSPITAL
SIUT (Oncology unit)
34. Target Institutions – REGION 2
REGION 2
MULTAN BAHAWALPUR
Nishter Hospital Victoria Hospital
Multan institute of nuclear medicine
and radiotherapy (MINAR)
Bahawalpur Institute for nuclear
Oncology (BINO)
DERA ISMAIL KHAN
Dinar Hospital
35. Target Institutions – REGION 3
REGION 3
LAHORE FAISALABAD
Shaukat khannum Memorial Hospital Allied Hospital
Institute of Nuclear Medicine and
Oncology (INMOL)
Punjab Institute of Nuclear Medicine
(PINUM)
Mayo Hospital GUJRANWALA
Jinnah Hospital GINUM Hospital
36. Target Institutions – REGION 4
REGION 4
RAWALPINDI / ISLAMABAD ABBOTABAD
Nuclear Medicine Oncology &
Radiation Institute (NORI)
INOR Hospital
Combine Military Hospital
Shifa International Hospital
37. Target Institutions – REGION 5
REGION 5
PESHAWAR SWAT
Khyber medical college and hospital SINOR Cancer Hospital
Institute of Radiotherapy and nuclear
medicine (IRNUM)
39. Sales Forecasting Technique
An assessment of the general economic conditions of Pakistan has
been carried out
According to the State Bank's Annual Report on the State of
Economy for the year 2012-13, Pakistan’s economy grew at 3.6 per
cent and inflation fell to single-digit in Fiscal Year 2013
The Real GDP growth rate in Fiscal 2014 is likely to remain between
3%-4%
Industry sales have also been taken into account and 20% market
share target has been identified
The Jury of Executive Opinion was employed to determine the Total
Market Potential all over Pakistan
The first year annual market share target has been developed and is
forecasted
39
44. Selling Process
Phase 1
1. Prospecting and Qualifying
2. Pre Approach
3. Approach
4. Need Identification
5. Presentation
6. Objection Handling
7. Closing the Process
8. Follow up
45. Phase 1:
1) Prospecting and Qualifying
Region 1: 27 doctors.
Region 2: 11 Doctors.
Region 3: 20 Doctors.
Region 4: 11 Doctors.
Region 5: 7 Doctors.
46. 2) Pre-Approach
Onco Care gathers the additional information about the
potential customers
The method that will be used to gather such information
is decided
47. 3) Approach
Representatives create good first impression
Males dress in a full sleeved white button shirt and tie with dress
pants
Women dress in traditional clothes
Hand shake
They come fully prepared with all the gathered information such as
the prospect’s company, products etc. eg: Agha Khan
They maintain interactive environment during presentation
48. 4) Need identification
Identifying the needs of prospects and then fulfilling those needs by
offering the right product
Side effects of cancer drugs include Nausea, Diarrhea, Hair loss,
Hearing loss, skin and nail changes and fatigue
Competitive advantage: low price, reduced side effects
49. 5) Presentation
Visual aid: Power Point (Bar Charts, Graphs)
Reports, Testimonials and Examples
Providing Drug Manual
Focus is on product features (competitive advantages; low price
and reduced side effects)
50. 6) Objection handling
Responding to the questions raised by the prospects
Questions asked regarding low price and ingredients of medicines
Objections (comparison method)
51. 7) Closing the process
Closing technique our sales force uses is the gift close
technique
The inducements provided by Onco Care are: Pens,
Card Holders, Calendars, USB and Planners
52. 8) Follow up
This step is to ensure that the medicines purchased are
being used by the hospitals/medical institutes
This is done via email, telephone and personal visits by
salesperson of Onco Care
54. Training of Sales Force
The purpose for carrying out sales training activities is to keep the
sales force inspired, motivated and enable it to continue to
produce results
Having a sound understanding of your product, your competition,
and the most effective sales techniques can make an average
sales rep into a star performer
They need training not only about their own products, services,
company history, and existing clients, but also about selling
techniques, technology, and software
54
55. Product Knowledge
Product knowledge is one of the most significant requirements of a sales force
RSMs will be trained in such a way that they will have adequate information
regarding Onco’s products and any special manufacturing process that might
be relevant to the doctor
TheProduct & Training Manager will deliver information to them through regularly
held meetings
This information will equip sales managers to be able to satisfy any possible
queries doctors might have
Proper knowledge regarding the product will keep them ahead of their
competitors
This will ensure that the RSMs have an internal driving force that will motivate
them to work harder
Product knowledge is vital as representatives of the company need to have
adequate information about their own products, and also those of competitors
55
56. Query Handling
Role clarity refers to a clear understanding of the responsibilities of one’s
job
Eliminate any ambiguities that exist amongst RSMs regarding their job by
outlining areas of responsibility
A “queries and possible concerns” session will be held every two weeks
to address any possible concerns that the managers may have
Establishing and managing an effective query process is an integral
component of ensuring data integrity
A query is defined as a question posed to a provider to obtain
additional and clarifying documentation to improve the completeness
of the data
Monthly seminars regarding Query Handling will be held where RSM’s will
be provided supplementary information
56
58. Compensation Plans
1. Chief executive officer:
Salary: Will be given a monthly salary of Rs235,000. (inclusive of allowances)
Bonus: The CEO will be given an annual bonus of approximately Rs: 50,000 for the first
year. It will going to increase in the second year if the company performs well
throughout the year and able to achieve the yearly targets.
Employee benefits and paid expenses:
Will be provided with a chauffeured car(Corolla).
Fuel allowance of Rs 15,000.
Cell phone service.
Office space.
Personal assistant.
Allowed leave of 15 days annually.
DELL laptop
59. 2. Personal Assistant:
Salary: A montly Salary of Rs65,000 (inclusive of allowances)
Bonus: The employee will be given an annual bonus of Rs30,000.
3. Compensation Plan of VP Sales:
Salary: Total Salary of Rs 155,000 (inclusive of allowances)
Bonus: The employee will be given an annual bonus of Rs30,000
Employee benefits and paid expenses:
VP Sales will be provided with a Honda City Car.
Fuel Allowance
Annual leave of 12 days.
Cell phone services.
Office space.
60. 4. Compensation plan of VP Marketing:
Salary: Total Salary of Rs155,000. (inclusive of allowances)
Bonus: The employee will be given an annual bonus of Rs30,000
Employee benefits and paid expenses:
VP Marketing will be provided with a Honda City Car.
Office Space
Cell phone services
Annual leave of 12 days.
Fuel Allowance
61. 5. Compensation plan of Finance Manager:
Total Salary: Rs100,000 (inclusive of allowances)
Bonus: A bonus of Rs15,000 will be given when financial statements
at year end have been formulated.
Employee benefits and paid expenses:
Office space.
Cell phone services
A Dell laptop for work related services
62. 6. Compensation plan of HR manager:
Total Salary: Rs80,000. (inclusive of allowances)
Bonus: An annual bonus of Rs15,000 will be given.
Paid expenses:
Office space.
Necessary equipment needed to design compensation plans and
packages.
Funds will be provided to conduct the training programs for the
employees
7. Compensation plan of Marketing Manager:
Total Salary: Rs 58,000. (inclusive of allowances)
Bonus: Annual bonus of Rs15,000 will be given.
63. 8. Compensation plan of RSM’s:
Total Salary: Rs55,000/Month will be given.
Incentive: A monthly incentive of Rs15,000 will be given on achieving
the targets
Paid expenses:
Fuel allowance
Cell phone services.
Travelling expenses.
64. 9. Compensation plan of the cashier:
Salary: A monthly base salary of Rs36,000 will be given.
Bonus: An annual bonus of Rs10,000 will be given.
10. Compensation plan of the business analyst:
Salary: A monthly base salary of Rs29,000 will be given.
Bonus: An annual bonus of Rs10,000 will be given.
11. Compensation plan of Accountant:
Salary: A monthly salary of Rs30,000 will be given.
Bonus: An annual bonus of Rs10,000 will be given.
65. 12. Compensation plan of the Distribution Manager:
Salary: A monthly Salary of Rs43,000 will be given.
Bonus: An annual bonus of Rs10,000 will be given.
69. Technology Cost
Technology Cost:
Laptops:
Higher Management --> HP Latops 7 60,000 420,000
Staff Fujitsu 10 35,000 350,000
Printers Samsung LaserJet 5 8,000 40,000
Internet Connection Wi-tribe 6 1500 9000
Scanner Genx Super Scan 5 3,990 19,950
Total cost for Technology: Rs. 838,950
70. Marketing Budget
S.No Description Total
Promtional Material
1 Pen 2,300
2 Planner Dairy 22,800
3 Calendar 15,200
4 Pen & Card Holder 34,200
5 Card USB (FREE)
74,500
Cancer Awareness Seminar (1Day)
1 Hotel Stay 320,000
2 Conference Hall (FREE) -
3 Lunch/Dinner 108,000
428,000
Global Educational Conference (7 Day Plan)
1 Hotel Stay 997,500
2 Conference Fee 1,500,000
3 Allowances (Per day) 525,000
3,022,500
TOTAL 3,525,000
71. Training Cost
Annual Budget for Sales training Program to be held at Pearl Continental Karachi
Per Day/Night Total for 3 Days
Booking Charges for meeting rooms Rs. 10000 Rs. 30,000
Per night charges for 5 rsms Rs. 6600 Rs. 19,800
Lunch and Dinner charges Rs 2000 Rs. 30,000
Miscelleneous Expenses Rs. 2000 Rs. 6,000
Total for One quarter RS. 85,800
Total for One Year Rs. 343,200