Eyeforpharma buenos aires edited version office 2007

Carlos Grzelak Jr.

South America SFE Congress

Buenos Aires2008,October

Carlos Grzelak Jr.

Theory Practice

3 years Sales Representative - Field6 months Training Associate - Internal2 years DM - Field2 years SFE Manager - Internal2 years Regional Manager - Field3 years Sr SFE Manager - Internal1 year Sales Force National Manager - Field

Sales process complexity

Targeting

Marketing Programs

Frequency Message

Sales ManagementCoaching

Data Utilization

Training

Com

pensa

tion

Alignment Marketing

Strategy

Territory

Management

DisruptionCall Planning

Internal Benchmarking

Meetings

Carlos Grzelak Jr.

Sales

Carlos Grzelak Jr.

Organizing the Key Elements – Sales Force approach

Internal factors

External factors

12

34

5

6

Sales Force size/ structure

Customers panel composition

Resource Allocation

Call Effectiveness

Results

Internal and External Customer’s

satisfaction

Carlos Grzelak Jr.

Metrics/tools may help to follow up all steps…

Sales Force

Stru

cture

Sales Force Size/StructureTools:RMCI,IMS,ZS, MDECS, internal

Territories Deployment Tools:TMS,MAPS,internalImportant:territories balance

Custo

me

rs panel

SegmentationRx profil. x PotentialLoyalty x PotentialBehaviour x potentialNeeds x potentialTools :Advizor,Excel,AccessSurveyTools:KXEN,SAS,Excel,Access

Resource Alloc

ation

Calls by segmentFrequency and Coverage

Samples by segmentGimmicks by segmentInvitations by segmentEducational support by segmentIncentive Plan

Carlos Grzelak Jr.

Metrics/tools may help to follow up all steps…

Cal

l Effectivene

ss

Message recall andMessage retentionSales skillsProduct knowledgeSR competenciesDM Field DaysDisruption level

Res

ults

Rx evolutionSOM evolutionDemand evolutionQuota coverageMarketing Prog ROI

Custo

mer s

atisfaction

Internal Customer survey

External customer survey

InternalSALES

Carlos Grzelak Jr.

Smart Resource Allocation project tackles 4 elements

Internal factors

External factors

12

34

5

6

Sales Force size/structure

Customers panel composition

Resource Allocation

Call Effectiveness

Results

Internal and External Customer’s

satisfaction

Carlos Grzelak Jr.

New metrics introduced to sales force

1.Calls by segmentFrequency and Coverage

2.Samples,invitations,gimmicks,... by segment

5.Rx evolution by moving quarters

6.SOM evolution by moving quarters

3.Message recall and Message retention

4.Disruption level

Resource Allocation Call Effectiveness Results

Carlos Grzelak Jr.

1.Calls by Segment - Frequency and Coverage

Frequency: % of MDs getting the desired number of calls in a selected period ( ex: three cycles)

Coverage : % of MDs getting the desired number of calls in one single cycle

Carlos Grzelak Jr.

Cycle 1

1 2 3 4 5 6 7 8 9 10

Coverage: Frequency:90% 90%

Frequency x Coverage


Carlos Grzelak Jr.

Cycle 2

1 2 3 4 5 6 7 8 9 10




Carlos Grzelak Jr.

Cycle 3

1 2 3 4 5 6 7 8 9 10




Carlos Grzelak Jr.

• Frequency – Tactical implementationFrequency at Chiesi Brasil is measured by moving quarters - Each Single call MD must be called 3 times in 3 cycles - Each Double call MD must be called 6 times in 3 cycles - 20% of MDs – Drs A - are currently double called

- Chiesi objective : 90% A 80% B 70% C

A new report was developed to allow DMs strict follow up , as seen below:


Carlos Grzelak Jr.

• Coverage – Tactical implementationCoverage is measured by cycle - Single call Drs are “covered” after being called once or more times in a cycle

- Double call Drs are “covered” after being called two or more times in a cycle

- Chiesi objective : 90%


Carlos Grzelak Jr.

Why is important to “tie” frequency and coverage?

• To avoid bad sequencing and long time with no calls for some Drs

• To assure a good level of calls per day and more calls by segment


Carlos Grzelak Jr.

No impact

More calls than

necessaryAn additional call generates impact

Ideal frequency

Calls

Rx

Is there a limit for the number of calls per MD by cycle ?


Carlos Grzelak Jr.

How to find the ideal one ?


• Depends on the market. When 3,4 or more calls per cycle makes sense:

• Market with high level of competitiveness +

• No relevant differences among competitors +

• Products /diseases with low level of complexity +

• MDs accept multiple calls

• Ex (for Brazil) : anti-inflammatory and anti-histaminic markets

Carlos Grzelak Jr.

Tracking


Rx share evolution

2007 x 2006

MDs calls/year

MDs 7 calls/year

MDs 10 calls/year

MDs 14 calls/year

MDs 20 calls/year

MDs 25 calls/year

0,5

1,0

1,5

2,0

Carlos Grzelak Jr.

What’s behind frequency ?• % of MDs “seeing” SReps and being impacted by the message with right

frequency – Analysis of the customer point of view

• Sales Rep : planning and organization skills are demanded

• Vacant sectors are considered (MDs are not being “impacted”)

• Hiring process must be accurate – bank of candidates


It can be adapted to your business needs – number of calls by segment,period for frequency evaluation,less or more rigid rules,...

Improving frequency = Sales Increase = ROI

Carlos Grzelak Jr.

2.Samples,gimmicks,…, by segment

• Data is extracted monthly from ETMS – TARGET - to monitor resources

delivered to A,B and C MDs

• Smart Resource Allocation definition : A › B › C

• Segmentation was conducted by product (10 promoted products)

Improved resource allocation = ROI = Sales increase

Carlos Grzelak Jr.


PM SRs/DMs MD

Message leakageHow much (?)

Message leakageHow much (?)

Carlos Grzelak Jr.


Message Recall: % of MDs who recalled the core messages – unaided survey

Message Retention: grade obtained by Sales Rep/DSMs in a single test

Message – Tactical implementation

• Cross-functional teams to review product messages – Marketing, Medical, Training and Sales

• Message recall may be conducted – by phone - at least twice a year (1st wave/Baseline and 2nd wave)

• 30% of recall index is a standard

• 90-100% standard for message retention

Carlos Grzelak Jr.


There is a strong correlation between message and market shareSOM

Region 1

Region 2

Region 3

Region 4

Region 5

Recall index

Carlos Grzelak Jr.


Message recall is a very rich metric. The only way to have bad results linked to a high message recall is when the message is bad

High Message Recall = Sales increase = ROI

• Integration of Marketing, Sales, Training, Medical and Customer areas• Sales Reps more focused• Product Managers must follow a method before launch new detail pieces

( focus groups and field tests with detail pieces required ) • A very good way to diagnose the situation and promote adjustments :

Sales Rep?Detail piece?What changes are required to improve message transmission ? What changes are needed to sell more ?

What’s behind message?

Carlos Grzelak Jr.

4.Disruption level

Disruption : % of links MD-Sales Rep disrupted between two time periodsEx: Current cycle x previous cycle ; current year x previous year ; After restructure x before

Breakdown of different type of disruption:

• Disruption due to Sales Reps turnover• Disruption due to MDs that were changed between Reps• Disruption by territory,district,region,whole country• Distribution of disruption across the sales force (detect potential problems)

Carlos Grzelak Jr.

4.Disruption level

What’s behind Disruption?

• Impact of relationship between Sales Rep and MD on results

• Possibility of measuring the impact due to a restructure process

When everything seems to be good but results do not come up, maybe Disruption index may give you an answer.

Carlos Grzelak Jr.

5.Rx evolution by moving quarters

• Objective is to show progress in a dynamic way

• Aligned with frequency measurement (moving quarter)

• Focus on Rx share,not number of Rx

• Three last moving quarters available at Sales Rep handheld

Carlos Grzelak Jr.

6.SOM evolution by moving quarters

• Objective is to show progress in a dynamic way

• Aligned with frequency measurement (moving quarter)

• Territory SOM is compared to district,region and country

Carlos Grzelak Jr.

Smart Resource Allocation – Implementation status

1.Calls by segment G4 A B CClenil A Now 59% 24% 17%

Before 32% 29% 40%

Manivasc Now 38% 53% 9%

Before 28% 52% 20%

Zyxem Now 56% 35% 9%

Before 29% 54% 17%

2.Samples by segment G4 A B CClenil A Now 61% 24% 14%

Before 38% 29% 33%

Manivasc Now 46% 47% 7%

Before 33% 50% 17%

Zyxem Now 61% 32% 7%

Before 37% 47% 16%

Best implementation

Best implementation

Best implementation

Best implementation

Carlos Grzelak Jr.

3. Message• Key messages changed in June 08 (respiratory : only fine tuning)• Message recall to be conducted at the end of the year• Messages to be inserted on handheld screen

Smart Resource Allocation – Implementation status

4. Disruption• From over 10% in 2007 to less than 5% average

5. DDD by moving quarter• Monthly report to DMs in place• To be available also in the handhelds

6. Rx share by moving quarter• A tool was delivered to DMs to build all kind of analysis• Rx share by quarter(last 3 quarters) available to Sales Reps at handheld

Carlos Grzelak Jr.

Does it increase sales ?

G4

Clenil A

Manivasc

Zyxem

*Now : Mar/08-Jul/08*Before : Nov/07-Feb/08

SOM

Now* 69,00%

Before* 64,63%

Now 2,81%

Before 2,75%

Now 6,35%

Before 6,16%

Source:DDD/IMS

Rx share

Now* 78,5%

Before* 76,6%

Now 1,87%

Before 1,67%

Now 13,19%

Before 12,51%

Source:Audit Pharma / Closeup

Best implementation

Best implementation

Between 2008/May and July,all 3 products beat sales records !

Carlos Grzelak Jr.

Does it increase sales ?

Previous Period : Jun/08-Dec/08YTD 08 : Jan/08– Jul/08

Source:DDD/IMS

Product Previous Period YTD 08

Clenil A 71,57% 73,75%Manivasc 2,92% 2,96%

Zyxem 6,64% 6,74%Hipertil 0,59% 0,64%Bamifix 64,76% 67,77%

Estimoral 11,07% 11,13%Forten 4,96% 5,11%

*Clenil N. Aq 2,69% 2,58%

**Lipidil 14,57% 13,92% **Supply issues

*Gov. sales

YTD 08 Results

Carlos Grzelak Jr.

Critical Success Factors

• Show intermediate results to SF – quick wins • Sponsorship is fundamental

• Strong interaction between Sales and Marketing

• Implementation is key – pay attention to details!

The foundation of excellence is built on understanding, follow-up

and implementation

Carlos Grzelak Jr.

Eyeforpharma buenos aires edited version office 2007

Education

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