Kramer's Pharmaceutical case study. Analyzing Bob's Performance in the company

1. KRAMER’S PHARMACEUTICAL CASE
STUDY
By

2. About Kramer Pharmaceuticals
 Major manufacturer of prescription drugs
(medical & dental)
 Sales exceeded $400 million in 1977
 Headquartered in Denver

3. Kramer’s Hierarchy
SalesVice
President
Zone
Manager 1
Zone
Manager 2
Zone
Manager 3
District
Manager 15
Detailers 15Detailers 16
District
Manager 16
District
Manager 17
Zone
Manager 4
Zone
Manager 5
Zone
Manager 6

4. Sales Force Team
 Over 500 detailers
 Job Description
 Regularly called on hospital personal, doctors, and
dentist on products
 Each detailer was responsible for about 200
physicians (in his/ her territory)
 6 to 9 calls per day to doctor or hospital

5. Sales Force Team (contd..)
 Job Specification
 Pharmacy School Graduate
 Few year experience
 ReceivesTraining
 Product characteristics
 Selling skills
 On the Job training

6. Sales Force Team (contd..)
 Composition of SalesTeam(experience basis)
 60% of detailers have 10 or more years experience
 25% had less than 5 years experience
 Age basis
 50% were 40 years or above
 25% were below 30

7. Sales Force Team (contd..)
 Remuneration
 Salaried and annual bonus based on performance
 Bonus amounts to 15% of total earnings
 Company’s automobile
 General fringe benefits

8. Sales Force Team (contd..)
 Evaluation
 Once a year (formal)
 Whenever necessary (informal)
 Done on basis of
 Sales volume
 Improvement in relationship with customers
 Evaluation from District Mgr

9. About Bob Marsh
 Graduated from top-flight pharmacy
 1966, manager of prescription department in a
major drug store,Toledo, Ohio.
 Became detailer for Kramer Pharmaceuticals in
1966
 Initial Salary offered was $14000 a year
 Assigned to a territory inTeledo.

10. About Bob Marsh (contd)
 Worked under
 John Meredith (1966-71)
 Bill Couch (1971-1974)
 Jim Rathbun (1974-1976)
 Vince Reed (1976-77)
 TomWilkens (1977-78)
 Tom Franklin (1978)

11. Working under John Meridith
 Favorable Report
 Hard worker
 Well received by Physicians
 Anxious to do well
 Appreciates and follows instructions
well
 Cooperative
 Unfavorable View
 Prejudging Customer
 Not much responsive to
management directives
 Not much planning and organization
• Hired him
• Performance and Salaries
– Below Standard in 1968 and salary was raised to $16000
– Substantial improvement in 1969 & salary was raised to $17000
– Complete Satisfactory in 1970-71 & salary was raised to $20000

12. Working under Bill Couch
 Favorable Report
 Outstanding reception in physician offices & drug store
 Gratifying improvement in drug store sale
 Good acceptance by fellow associate
 Excellent attitude and company loyalty
 Work performance and attitude was graded well above average
• Performance and Salaries
– Gave Satisfactory performance from 1971-1974 and salary was raised to $24000
– Received additional duty

13. Working with Jim Rathbun
 Report
 Poor attitude and careless organization
 Inattention to planning and follow up
 Failing to attend set goals
 Performance and Salaries
 Overall satisfactory; though was on probation period
 No increase in salary in 1975, later increased to $25ooo in 1976

14. Working with Vince Reed
 Report
 Slow acceptance of new products among Marsh’s customer
 Physician sale was not up to the mark
 Marsh’s organization was still deficient
 Performance and Salaries
 Initially favourable
 Later performance slipped and has become completely
unsatisfactory
 Marsh had an salary increase in 1977 to $25000

15. Working with Tom Wilkens
 Observations
 Spend few days on field with Marsh
 Confirmed the observation made by earlier supervisors
 Salary and Performance
 Probation period was removed
 No increase in salary for 1978

16. Working with Tom Franklin
 Report
 Not good record
 Has less time to show improvement
 Survival Procedures
Improvement in
 Sincerity
 Loyalty
 Cooperation
 Work habits
 Franklin’s Program
 Call him for the review of progress at
appointed time each week
 Weekly reading assignment(technical
and Promotion literature
 Submit written summary of report
 Complete questionaires on his major
hospitals
 Salary and Performance
 Bad start of the program
 Effect of removal became less
 Finally at 44 he was asked to resign

17. Bob’s Performance at Kramer
 Hard working
 Good in personal selling
 Anxious to do well
 Cooperative
 Unplanned
 Unorganized
 Less Sincere

18. Bob’s Salary in Kramer’s
0
5
10
15
20
25
30
1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978
Salary
Salary

19. Bob’s Salary in Kramer’s
0
5
10
15
20
25
30
1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978
Salary
Salary
No hike in Salary

20. Bob’s Performance
Years Review District Managers
1966 Excellent Meredith
1967 Below Standard Meredith
1968 Below Standard Meredith
1969 Standard Meredith
1970 Above Average Meredith
1971 Satisfactory BillCouch
1972 Satisfactory BillCouch
1973 Satisfactory BillCouch
1974 Well above average BillCouch
1975 Satisfactory Jim Rathbun
1976 Satisfactory Vince Reed
1977 Completely Unsatisfactory Tom Wilkens
1978 Asked to Resign Tom Franklins

21. Bob’s Performance
Years Review District Managers
1966 Excellent Meredith
1967 Below Standard Meredith
1968 Below Standard Meredith
1969 Standard Meredith
1970 Above Average Meredith
1971 Satisfactory BillCouch
1972 Satisfactory BillCouch
1973 Satisfactory BillCouch
1974 Well above average BillCouch
1975 Satisfactory Jim Rathbun
1976 Satisfactory Vince Reed
1977 Completely Unsatisfactory Tom Wilkens
1978 Asked to Resign Tom Franklins
Frequent change
of District
Manager

22. Analysis of Bob’s
Performance
 Performed and improved well under Meredith and
Bill Couch
 Salary constantly increased upto 1974
 Excellent references and credentials
 Had an outstanding image on client’s mind

23. Management’s Role
 Kept focusing on weakness rather than
strength
 Punishment instead of motivation
 Frequent change in supervisor
 Younger supervisors

24. Suggestion
 Relocating Bob
 Introducing a new detailer to assist Bob
 Use of motivation (other than monetary
benefits)
 Send him for training Programs

25. Thank You