Parkin Laboratories Harvard Case Solution & Analysis

Swot Analysis ofParkin Laboratories

Parkin Laboratories as a pharmaceutical industry it had many strengths, weaknesses, opportunities and threats in the pharmaceutical industry as shown in Exhibit 1.

Strengths

            The strengths of the company included the line of the medicines it provided in India. It was also ranked in the top 50 pharmaceutical companies with approximately 800 employees working in the organization. Parkin was had growth up to 29.9% in 2010 and $610 million sales were estimated in 2013.

Weaknesses

            The weaknesses of Parkin Laboratories were that the company was suffering from low growth in sales for a couple of years. The growth recorded in 2012 was recorded at 4.2%. The company recorded lower sales and revenue in the month of August and witnessed the lowest growth in a long time, which was 1.1%.

Opportunities

            Parkin Laboratories had many opportunities. They could hire different medical representatives for increasing the sales of the products. The operating cost and other expenses could be lowered if the raw materials bought in bulk from international suppliers. The increase in the volume of the products and marketing in international market.

Threats

            The threat for Parkin Laboratories, was the order which was imposed by the Indian Government to decrease the values of the medicines or drugs. This caused the organization to suffer a decrease in sales and growth. It was a threat to the organization as it was affecting the performance of the organization and also of its medical representatives.

The SWOT analysis, hence indicated the current strengths and weaknesses that the company was facing internally and the opportunities and threats it had from the external environment. Whereas it gives a clear picture that the strengths of the company are very good, but it is currently facing issues with low sales and revenues that are because of the threats and other factors. The company should look for the opportunities it have and also implement them for getting out of the phase.

Performance of Medical Representatives

            The general manager of sales in Parkin Laboratories found out that medical representatives were not performing very well or according to their tasks. Their overall performance was quite low. The performance appraisal showed the picture in which stated that the calls by MRs to the “C” class customers were lost because they did not have good coordination with the C class customers so their performance was low. Whereas, the situation was not better in terms of “B” class customers. The MRs did not spend enough time with the doctors and the chemists. Though they visited B class customers more, but it did not prove to be enough for the company. Moreover, MRs consulting to the “A” class customers had high performance. The A class customers were not too many, but they had met more with the A class customers than B and C. They spent more time with the A class customers that is why their performance was good.

            The company can improve the productivity of its MRs by giving them training to work according to the marketing plan, they should discuss around 3 products at a time to the customers. Whereas, the MRs should also make sure that they use all the resources of the company.

Marketing Mix (4 Ps)

Product/ Services

            The company had variety of product to offer to the customers (doctors, dealers and retailers). Parkin Laboratories, had 80lines of medicines that it offered to the customers and it was characterized into different categories.

Place

            Parkin Laboratory worked on distributing its products to all over the country with the strong system of its logistics and consisting of 35 carrying and forwarding agents and more than 2500 stockists which distributed its products all over the country.

Price

The price of the medicines was decided to lower down due to the legislations by the Indian Government and also the company should focus on the highest production of medicines rather than higher prices.

Promotion

            The medicines were promoted by Parkin Laboratories via its effective sales force. It made sure that the customers which are mostly doctors were having enough knowledge about their medicines and prescribing it as well.

Sales Force Effectiveness (Sfe)

            The sales force effectiveness can be termed as the success of the sales force of Parkin Laboratory. The sales force is meant to increase its effectiveness by increasing its productivity and increase the promotion of medicines, so that the end result is in favor of the company. The sales force effectiveness is very important for the company in terms of achieving sales and revenues.

Major Drivers of SFE

Sales force effectiveness is very important for the company and it is driven by list of forces such as providing the better attention and response to the customer, the sales force should enhance its capabilities of calls, the newer areas should be explored and targeted and increase in the utilization of the resources.................................

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