Sales Force Effectiveness in Pharmaceuticals - Cost Pressures Increase Pharmaceutical Companies Adoption of New Sales Models and Technologies


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120pages

GBI Research

$ 3500

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GBI Research’s report, “Sales Force  Effectiveness in Pharmaceuticals - Cost Pressures Increases Pharmaceutical Companies' Adoption of New Sales Models and Technologies”, provides in-depth analysis of trends, issues and challenges in this industry. The report analyzes the sales force effectiveness strategies that shape the industry dynamics for the key geographies: the US, the top five countries in Europe (the UK, Germany, France, Italy and Spain) and Japan. Further, the report provides competitive benchmarking for the leading companies and analyzes the licensing agreements that shape the global markets.

This report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research’s team of industry experts.

Scope

The scope of this report includes:

  • Annualized market data from 2009, forecast forward to 2016.
  • Analysis of the leading technology in this space
  • Analysis of the R&D models
  • Market characterization
  • Key drivers and barriers that have a significant impact on the market.
  • Competitive benchmarking of leading companies.

Reasons to buy

The report will enhance your decision making capability in a more rapid and time sensitive manner. It will allow you to:
  • Develop key strategies to reduce expenditure on sales force and by increasing efficiency
  • Develop and understanding of how companies use tools and models in order to improve the sales force productivity
  • Make informed decisions with respect to sales force effectiveness
  • Identify the leading technology providers for collaborations along with their key capabilities
  • Make more informed business decisions from the insightful and in-depth analysis of the sales force effectiveness and the factors shaping it.
Table of Contents

1 Table of Contents 3

1.1 List of Tables 5
1.2 List of Figures 6

2 Sales Force Effectiveness in the Pharmaceutical Industry Introduction 8
2.1 GBI Research Report Guidance 9

3 The Need for Sales Force Effectiveness 10
3.1 Introduction 10
3.1.1 Shift in product portfolio 10
3.1.2 Regulatory Tightening 11
3.1.3 Specialty care focus 12
3.1.4 Shift of power 12
3.1.5 Industry consolidation 12
3.1.6 Non-personal promotion 12
3.1.7 R&D Costs Increase against Revenue Growth for the Top 10 Pharmaceutical Companies 13
3.1.8 Layoff in the Pharmaceutical Companies 15
3.1.9 Shrinking Field Force Model 16

4 Sales Force Sizing 17
4.1 Introduction 17
4.2 Affordability 17
4.3 Workload build-up 17
4.3.1 Case 1 18
4.3.2 Case 2 19
4.4 Competitive Benchmarking 19
4.5 Promotion Response Modeling 20

5 Sales Force Recruitment 22
5.1 Introduction 22
5.2 Sales Force Recruitment Strategy 22
5.2.1 Recruiting Strategy 23
5.2.2 Business Objectives 23
5.2.3 Identify the specific metrics that will define success 23
5.2.4 Define Job Requirements 24
5.2.5 Establishing Assessment Validity 24
5.2.6 Implementation 24
5.3 Recruitment/Employment Process Outsourcing 25
5.3.1 Case Studies 25
5.4 The Diversity and Inclusion Imperative from Novartis 28
5.4.1 Improving Representation 29
5.4.2 Building Capability 29
5.4.3 Driving Ownership and Accountability 29
5.4.4 Ensuring Sustainability 29

6 Sales Force Training & Compensation 30
6.1 Introduction 30
6.2 Models 30
6.2.1 Survey on Sales Force Training 30
6.3 Specialty Care Training 31
6.3.1 Sanofi Aventis and their Specialty Care Training 31
6.3.2 Continuous Assessments 33
6.4 Leaders Take the Initiative 33
6.4.1 Five Step Model 34
6.4.2 Impact of Behavioral Coaching 34
6.4.3 Case Study 36
6.5 Tailored Incentive Management 37
6.5.1 Plan authoring and simulation 38
6.5.2 Schema Calculation 38
6.5.3 Credit Allocation and Payment 38
6.5.4 Reporting & Analysis 38

7 Sales Models 40
7.1 Introduction 40
7.2 Key account Management 41
7.2.1 Introduction 41
7.2.2 Key Account Management Process 41
7.2.3 Types of Key Account Management 47
7.2.4 Case Studies 48
7.3 Contract Sales Outsourcing 55
7.3.1 Contract Sales Representatives 56
7.3.2 Sales Team Recruitment and Training 56
7.3.3 Sales Data Analytics and Management 57
7.3.4 Shared Sales Teams and Telesales 57
7.3.5 Medical Science Liaisons 57
7.3.6 The Evolving Model 58
7.3.7 Case Study 59
7.4 Closed Loop Marketing 60
7.4.1 Benefits for Sales & Physicians 61
7.4.2 Benefits for Analytics 61
7.4.3 Benefits for Legal & Regulatory Departments 61
7.4.4 Benefits for Marketing 61
7.4.5 Case Studies 61
7.5 Examining Strategies 65
7.5.1 Promotional Response Model 66
7.6 Survey on Sales and Marketing Strategies 67
7.7 Sales Force Effectiveness Dashboards 71
7.8 Investment Priorities 72
7.9 New Sales Strategies Implemented 73
7.10 The Future Strategies to be Implemented 74

8 Sales Force Effectiveness Efficiency Analysis 77
8.1 Eli Lilly and Company 81
8.1.1 Overview 81
8.1.2 SG&A and R&D Spending 82
8.1.3 SG&A Analysis 83
8.2 Johnson & Johnson 84
8.2.1 Overview 84
8.2.2 SG&A and R&D Spending 85
8.2.3 SG&A Analysis 86
8.3 Pfizer, Inc. 87
8.3.1 Overview 87
8.3.2 SG&A and R&D Spending 88
8.3.3 SG&A Analysis 89
8.4 Merck & Co Inc 90
8.4.1 Overview 90
8.4.2 SGA and R&D Spending 91
8.4.3 SG&A Analysis 92
8.5 Sanofi-Aventis 93
8.5.1 Overview 93
8.5.2 SGA and R&D Spending 94
8.5.3 SG&A Analysis 95
8.6 Bristol-Myers Squibb 96
8.6.1 Overview 96
8.6.2 SGA and R&D Spending 97
8.6.3 SG&A Analysis 98
8.7 GlaxoSmithKline 99
8.7.1 Overview 99
8.7.2 SGA and R&D Spending 100
8.7.3 SG&A Analysis 101
8.8 Novo Nordisk 102
8.8.1 Overview 102
8.8.2 SGA vs. R&D Spending 103
8.8.3 SG&A Analysis 104
8.9 Allergan Inc. 105
8.9.1 Overview 105
8.9.2 SGA and R&D Spending 105
8.9.3 SG&A Analysis 106
8.10 Abbott Laboratories 107
8.10.1 Overview 107
8.10.2 SGA and R&D Spending 108
8.10.3 SG&A Analysis 109
8.11 Genzyme Corporation 110
8.11.1 Company Overview 110
8.11.2 Business Description 110
8.11.3 SGA and R&D Spending 111
8.11.4 SG&A Analysis 112
8.12 Teva Pharmaceuticals 113
8.12.1 Overview 113
8.12.2 SGA and R&D Spending 113
8.12.3 SG&A Analysis 114
8.13 Astrazeneca 115
8.13.1 Overview 115
8.13.2 SGA and R&D Spending 115
8.13.3 SG&A Analysis 116

9 Sales Force Effectiveness in the Pharmaceutical Industry Appendix 117
9.1 Market Definitions 117
9.2 Abbreviations 117
9.3 Research Methodology 118
9.3.1 Coverage 118
9.3.2 Secondary Research 119
9.3.3 Primary Research 119
9.3.4 Expert Panel Validation 119
9.4 Contact Us 120
9.5 Disclaimer 120
9.6 Sources 120
Table 1: Pharmaceutical Industry, Global, Comparison of CAGR of R&D Expenditure and Turnover for the Top 10 Pharmaceutical Companies in 2009, 20042009 13
Figure 1: Pharmaceutical Market, Global, Number of NME Approvals by the FDA, 1996-2009 11
Figure 2: Pharmaceutical Market, The US, Specialty Care Focus, 2009-2016 12
Figure 3: Pharmaceutical Industry, Global, Comparison of CAGR of R&D Expenditure and Turnover for the Top 10 Pharmaceutical Companies in 2009, 20042009 13
Figure 4: Pharmaceutical Industry, Global, Layoffs by Pharmaceutical Companies, 2009 15
Figure 5: Pharmaceutical Industry, Global, Sales Force Layoffs, 2007-2009 16
Figure 6: Workload Build-Up Model Case Study , 2010 18
Figure 7: Competitive Benchmarking Model Case Study, 2010 19
Figure 8: Promotional Response Model , 2010 20
Figure 9: Optimal Promotional Response Model, 2010 21
Figure 10: Sales Force Recruitment Strategy ,2010 23
Figure 11: Advantages of Recruitment Process Outsourcing, 2010 25
Figure 12: AstraZeneca and Recruitment Process Outsourcing, 2010 26
Figure 13: Increasing Sales and Achieving Competitive Differentiation, 2010 28
Figure 14: Diversity and Inclusion Strategy of Novartis, 2010 28
Figure 15: Sales Force Training Survey, 2010 30
Figure 16: Incentive Compensation Functionality, 2010 37
Figure 17: Oracle Incentive Compensation Solution, 2010 39
Figure 18: KAM Process, 2010 41
Figure 19: Key Accounts Identification and Prioritization, Risk vs. Potential 42
Figure 20: Key Accounts Identification and Prioritization, Skill vs. Will 43
Figure 21: Key Accounts Primary Selection Criteria 43
Figure 22: Understanding Needs and Developing Customer Insights 45
Figure 23: Forming the Account Team 45
Figure 24: Developing Key Account Strategic Plan 46
Figure 25: Communicating and Implementing the Key Account Strategic Plan 46
Figure 26: Reviewing KAM Results 47
Figure 27: Lundbeck and KAM Principle, 2010 48
Figure 28: Abbotts Sales Force Optimization 49
Figure 29: Abbotts Account Strategy, 2010 50
Figure 30: Segmentation and Targeting Strategy of Abbott, 2010 51
Figure 31: Calculating Account Value, 2010 52
Figure 32: Positioning the Key Accounts 54
Figure 33: Contract Sales Organizations Major Services, 2010 55
Figure 34: Contract Sales Organizations and Evolving Sales Model 58
Figure 35: CLM Enabled Commercial Organization, 2010 60
Figure 36: Wyeths Target Selection Model, 2010 62
Figure 37: Wyeths Segmentation Model, 2010 62
Figure 38: Benefits of CLM for Wyeth, 2010 63
Figure 39: Customer Response Framework for CLM, 2010 63
Figure 40: Customer Response Success Rate for CLM, 2010 64
Figure 41: Wyeth and its CLM Process, 2010 64
Figure 42: Sales Index vs. Sales Strategy, 2010 65
Figure 43: Promotional Response Model, 2010 66
Figure 44: Promotional Response Model on Sales 66
Figure 45: Implementation vs. Importance, High Performers, 2010 67
Figure 46: Implementation vs. Importance, Aspirational Performers 68
Figure 47: Implementation vs. Importance, Over Performers 69
Figure 48: Implementation vs. Importance, Low Performers 70
Figure 49: Investment Priorities in Sales Force Effectiveness 72
Figure 50: Pharmaceutical Market, Global, Implemented Sales Strategies in Pharmaceutical Companies, %, 73
Figure 51: Pharmaceutical Market, Global, Sales Strategies to be Implemented in Future, %, 74
Figure 52: Physician Satisfaction Vs. Decrease in the Sales Force, The US, 2009 75
Figure 53: Traditional Outsourcing Applications 76
Figure 54: Modern Outsourcing Applications 76
Figure 55: Pharmaceutical Market, Sales Force Effectiveness Analysis for Selected Companies, 2009 77
Figure 56: Pharmaceutical Market, Sales Force Effectiveness Analysis for Selected Companies, 2008 78
Figure 57: Pharmaceutical Market, Sales Force Effectiveness Analysis for Selected Companies, 2007 79
Figure 58: Sales Revenues Vs. SG&A Expenses, 2009 80
Figure 59: Sales Revenues Vs. SG&A Expenses, 2008 80
Figure 60: Eli Lilly and Company, SG&A and R&D Spending, %, 2009 82
Figure 61: Eli Lilly and Company, SG&A Analysis , %, 2007-2009 83
Figure 62: Johnson & Johnson:, SG&A and R&D Spending, %, 2009 85
Figure 63: Johnson and Johnson, SG&A Analysis, 2007-2009 86
Figure 64: Pfizer,Inc, SG&A and R&D Spending, %, 2009 88
Figure 65: Pfizer, Inc., SG&A Analysis, 2007-2009 89
Figure 66: Merck & Co, SG&A and R&D Spending, %, 2009 91
Figure 67: Merck & Co, SG&A Analysis, 2007-2009 92
Figure 68: Sanofi-Aventis, SG&A and R&D Spending, %, 2009 94
Figure 69: Sanofi Aventis, SG&A Analysis, 2007-2009 95
Figure 70: Bristol-Myers Squibb, SG&A and R&D Spending, %, 2009 97
Figure 71: Bristol-Myers Squibb, SG&A Analysis, 2007-2009 98
Figure 72: GlaxoSmithKline, SG&A and R&D Spending, %, 2009 100
Figure 73: GlaxoSmithKline, SG&A Analysis, %, 2007-2009 101
Figure 74: Novo Nordisk, SG&A and R&D Spending, %, 2009 103
Figure 75: Novo Nordisk, SG&A Analysis, 2007-2009 104
Figure 76: Allergan, SG&A and R&D Spending, %, 2009 105
Figure 77: Allergan, SG&A Analysis, 2007-2009 106
Figure 78: Abbott Laboratories, SG&A and R&D Spending, %, 2009 108
Figure 79: Abbott Laboratories, SG&A Analysis, 2007-2009 109
Figure 80: Genzyme Corporation, SG&A and R&D Spending, %, 2009 111
Figure 81: Genzyme Corporation, SG&A Analysis, 2007-2009 112
Figure 82: Teva Pharmaceuticals, SG&A and R&D Spending, %, 2009 113
Figure 83: Teva Pharmaceuticals, SG&A Analysis, %, 2007-2009 114
Figure 84: Astrazeneca, SG&A and R&D Spending, %, 2009 115
Figure 85: Astrazeneca, SG&A Analysis, 2007-2009 116