Sales System Effectiveness - A Key Theme To Drive Growth

The iSite team surveyed the delegates at the Annual PMI event in Druids Glen in March 2010.

The survey was designed to reflect some insights into the top priorities of Sales and Brand Managers, Finance Directors and Managing Directors.

Over thirty sales managers and managing directors in leading pharmaceutical companies across Ireland told us about their priorities. Here are the common themes they highlighted:

• Better sales forecasting capability
• More focused sales activity in key product areas
• Better visibility of daily sales vs target
• To spend less time managing spreadsheets
• To retain key accounts and strengthen relationships

(Sales Themes - Source iSite Pharmaceutical Practice Insights 2010)

Click here for a summary of the report

Ongoing Challenges

The pharmaceutical industry is undergoing many changes and there are significant challenges for Sales and Managing Directors in this sector.

1 Sales and marketing ROI under scrutiny

2 Blockbuster Drugs coming off patent

3 Parallel Importing (PI)

1. Sales and marketing ROI under scrutiny

In 2005 the spending on Sales and General Administration rose to 33% of total corporate spending. From this peak the corporate spend on Sales is now declining, and in 2008 the number of working sales reps in the US dropped below 93,000, from an all-time high of 102,000 in 2005. This is a global trend and very relevant to the market in Ireland.

Key challenge: Sales Managers have to manage a reduction in sales resources, combined with margin pressures and flat or declining sales.

How can iSite help? With our Synergy solution we can merge complex data and present easy to use sales reports

"iSite facilitate the effective use of complex business information to maximise return on investment and to optimise sales force resource allocation. Through a single reporting system we can cross compare sales versus call activity to ensure our sales team can effectively concentrate their efforts with maximum rewards."

- Phillip Kerney, Bristol Myers Squibb

Synergy

Synergy was designed and developed for Sales people in Pharma.

Using call frequency and call coverage reporting, the sales representative is alerted when they have achieved certain planned target metrics. Knowing how they can achieve these targets, the sales force can focus their calls into key accounts at the right call rate, covering the audience more effectively through less calls. This can free their time on territory so they can cover larger territories with increased effectiveness, reducing the need for large sales teams.

With increased visibility on how the overall sales team: primary or secondary care, nurse teams or contract sales resources, we can analyse the entire team's effort. This ensures the no overlap between different teams or shared territories with more than one representative. Efforts in the secondary care environments and also be reinforced more effectively in general practice.

2. Blockbuster Drugs coming off patent

Pharmaceutical companies will lose between 14% and 41% of their existing revenues as a result of patent expires over the next 3 years. Pharma now spends far more on research and development and produces far fewer new molecules than it did 20 years ago. Drug companies will need to protect existing niche product sales and drive product sales into areas where sales are comparatively low compared to regional / national averages.

Key challenge: There is a strong need for clear and timely visibility of Sales performance. Sales Managers also have to plan for a reduction in sales on brands coming off patent.

How can iSite help?  With our Synergy solution we can present trends and sales forecasts updated daily

Synergy's design empowers the user to group products strategically to ensure products can be reported on with the appropriate level of importance. Our approach helps users visualise and understand information with a focus on products of key importance (over tail products). "Other Divested" products can appear as totals with further drill down features provided. Advanced filtering by therapy area, strategic product grouping or business unit is also available.

Technical forecasting models are supported in graphs and reports to ensure sales trends are mapped and analysed on a daily basis.

Advanced Forecasting techniques can be added to the data to facilitate more accurate sales forecasting.

Data from sources such as IMS, Sales Management and ETMS systems can be integrated with transactional data to allow the impact of patent expiry to be analysed. Combining these datasets gives visibility of the overall market (including leading competitors) while also highlighting the performance of the sales team.

3. Parallel Importing (PI)

Parallel trade involves non-counterfeit products imported from another country without the permission of the intellectual property owner. Advocates of Pharmaceutical parallel trade argue that it stimulates price competition and drives prices down in destination (importing) countries. A study from the London School of Economics rejects this stating:

"Direct savings to statutory health insurance organisations from the conduct of parallel trade are modest both in absolute and relative terms. Parallel traders are the main beneficiaries of parallel trade; their direct maximum benefits exceed considerably those accruing to statutory health insurance providers. No (measurable) direct benefits accrue to patients due to the structure of user charges in the study countries. Consequently, patient access to medicines is unaffected".

Key challenges: There is a strong need for increased visibility of sales data across the distribution value chain.

How can iSite help?  We can help your sales team really understand their sales landscape with regular presentations, sharing industry expertise.

Our pharmaceutical practice (formerly Cresselle) provides specialist services and sales tools to:

• Reduce the time spent preparing and reviewing sales reports by up to 75%
• Identify parallel importing threats, and help identify opportunities to protect revenue
• Using sales forecasting and What If Analysis, users can plan the impact of sales price reductions to counteract the PI activity.
• Access and measure sales data that affects forecasting in real time
• Extend the use of Sales and CRM systems to improve effectiveness of field sales activity

We are engaged by clients to manage, support and deliver solutions in the following areas:

• Sales forecasting
• Sales tracking and territory performance improvement
• Sales & CRM system reviews
• Sales system user workshops
• Sales system implementations
• IMS extensions
• Territory breakdown planning