kramer pharamceuticals case study
KRAMER PHARMACEUTICALS CASE STUDY Juanita K. Beam November 26, 2001 Professor James Walsh FACTS • Kramer Pharmaceuticals was a major manufacturer of prescription drugs • Sales force of over 500 detailers (35 district managers, 6 zone managers) • Detailers were salaried employees • Evaluation methods meant to increase sales volume and improve customer relations • Bob Marsh hired June 1966 (starting salary @ $14K annually) • Salary increases of $1K for the first five years of employment; annual salary of $24K within 9 years of employment. ... In the case of Bob Marsh, the case study notes that immediately his first zone manager noted is lack of organizational skills, but chalked it up to inexperience. • Poor sales plan implementation Kramer Pharmaceuticals’ recruitment and selection process may have worked well for their organization. ... According to the case study, each of Bob’s managers were well-qualified individuals, presumably with the skills necessary to be effective managers. ... The motivations of Marsh’s various zone managers are not made clear in the case study. ... May begin acting robotic and doing “according to” or “by the book” ISSUE #2 LACK OF EFFECTIVE SALES TRAINING The case study states all detailers were given the necessary training upon hire and occasionally brought up to speed with the company’s goal. Increased sales and improved relationships with customers were at the top of Kramer’s training objectives. ... Most importantly though, Kramer was sorely lacking a formal program which would analyze and assess needed areas of improvement for its detailers. ... Thus, instead of being motivated in a positive manner, Marsh was motivated for fear of losing his job and even that in the end was not enough motivation for Marsh to change Solution: to adequately motivate its sales force, Kramer might consider clear job descriptions, implementing effective sales management practices (issue #1) and compensation, incentives or other awards other than monetary (sales man of the month, for example). ... ) were above average if only focusing on sales, and not his methods, which was also a point of concern at various times throughout his career at Kramer. ... In Marsh’s case, his lack of organizational skills apparently went from bad to worse and was beyond his ability, obviously, to improve in this area without guidance or training. Additionally, Kramer needed to take active steps to motivate its sales force so that it would obtain better performance either by financial or non-financial incentives, improved means of measurement and performance appraisals with specific plans of action and training readily available.