Introduction_to_sales_territory in Pharmaceutical

This presentation provides a detailed overview of sales territory management in the pharmaceutical industry — a crucial aspect of optimizing field force productivity and maximizing prescription coverage. It explains how pharmaceutical companies design, allocate, and monitor sales territories to ensure balanced workloads, cost efficiency, and strong doctor engagement.

The slides cover key areas such as:

Introduction to sales territories and their importance

Factors influencing the size and allocation of territories

Step-by-step territory design process using real pharma examples (Sun Pharma, Cipla, Dr. Reddy’s, Lupin)

Use of data-driven tools like IQVIA, AWACS, and Salesforce CRM for monitoring

How effective design leads to stronger market presence and sales growth

Perfect for students, pharma professionals, and marketers looking to understand strategic territory planning in a competitive healthcare landscape.

1. SALES TERRITORY MANAGEMENT IN THE PHARMACEUTICAL INDUSTRY Presented by - MD. Latif Presented to - Dr. Ubada Aqeel Sir

2. INTRODUCTION TO SALES TERRITORY A sales territory is a defined area or customer group assigned to a Medical Representative (MR). The main goal is to achieve balanced workload, complete market coverage, and maximum prescription generation. In the pharma industry , territories are commonly divided by: 1. Geography : State, region, or district 2. Doctor specialty : Cardiologists, pediatricians, orthopedists 3. Healthcare setup : Private clinics, government hospitals, or institutions Example : A Sun Pharma MR in Delhi covers 120 cardiologists in South Delhi hospitals and clinics.

3. IMPORTANCE OF SALES TERRITORY 1. Ensures Market Coverage: Every doctor, chemist, and hospital is covered regularly without duplication. 2. Balances Workload: Equal distribution of effort and potential among all field reps. 3. Improves Doctor Relationships: Regular visits enhance trust and prescription consistency. 4. Reduces Travel and Operational Cost: Planned routes minimize travel time and expenses. 5. Supports Performance Evaluation: Territory-based tracking helps assess MR productivity and sales growth. Example: Dr. Reddy’s improved doctor coverage by 22% after realigning overlapping territories.

4. FACTORS INFLUENCING THE SIZE OF SALES TERRITORY 1. Market Potential: Indicates revenue or prescription demand in a region. High potential → smaller, focused territory; low potential → larger coverage area. Example: Cardio-diabetic drug sales are higher in metros like Mumbai and Delhi, requiring smaller territories. 2. Customer Density: Number of doctors, hospitals, and chemists in an area. High doctor density → smaller territory; low density → larger territory. Example: In Chennai city, one MR covers 80 doctors, while in rural Tamil Nadu, one MR covers 200.

5. 3. Travel Time and Distance: Longer travel reduces productive time for doctor visits. Poor infrastructure areas require smaller, manageable territories. Example: In Uttarakhand, MRs make 6–8 calls per day; in Delhi, 12–15 calls due to better connectivity. 4. Frequency of Doctor Visits: Key Opinion Leaders (KOLs) require frequent visits (weekly or biweekly). More frequent visits = smaller territory. Example: Oncology MRs visit oncologists multiple times per week to maintain strong engagement.

6. 5. Nature of Product Line: Specialty drugs: smaller, more focused territories. Generic or OTC drugs: larger, wide-spread territories. Example: Abbott’s specialty (gastro) division has smaller zones than its general medicine division. 6. Competition Intensity: Highly competitive therapy areas need tighter control and smaller territories. Example: Cardiac-diabetic segments in metros have dense competition; smaller focused zones are assigned.

7. 7. Salesperson’s Capability: Experienced MRs handle complex, high-value territories. New MRs are assigned smaller or developing areas. Example: Senior Cipla MRs manage hospital coverage in Tier 1 cities. 8. Company Policy and Strategy: Internal standards determine doctor coverage, visit frequency, and sales targets. Example: Glenmark’s MR handles ₹1 crore annual potential with 10–12 doctor calls per day.

8. FACTORS AFFECTING ALLOCATION OF SALES TERRITORIES 1. Equal Market Potential Allocation: Ensure all MRs have balanced sales opportunities. Example: Dr. Reddy’s allocates ₹80–90 lakh annual potential per MR. 2. Doctor Specialty Matching: Assign representatives based on therapeutic expertise. Example: Cardiac MRs visit cardiologists; dermatology MRs handle skincare specialists.

9. 3. Salesperson’s Skill & Experience: Senior reps get metro zones; new reps start in smaller towns. 4. Workload Distribution: Equal number of doctors and chemists ensures fair performance evaluation. 5. Accessibility and Logistics: Remote areas with long travel routes need smaller customer loads. Example: In North-East India, one MR may cover two towns instead of four due to travel time.

10. DESIGNING SALES TERRITORY Step 1: Market Analysis Study doctor population, prescription trends, and existing sales performance. Identify high, medium, and low potential areas. Use tools like IQVIA, AWACS, or SMSRC for data-driven mapping. Example: Sun Pharma used IQVIA data to segment markets in Rajasthan based on prescription volume.

11. DESIGNING SALES TERRITORY Step 2: Set Design Criteria Define the base for territory division: Geography: State, district, or zone Customer type: Doctor specialty or hospital segment Product line: Therapy-based divisions Establish performance metrics: calls/day, coverage %, and sales targets. Example: Cipla divides teams into Respiratory, Cardiac, and Diabetic Care divisions.

12. DESIGNING SALES TERRITORY Step 3: Group Customers and Areas Classify doctors into A/B/C categories based on prescription potential. Cluster nearby hospitals and pharmacies to reduce travel time. Ensure balanced doctor mix (specialists + GPs). Example: Lupin’s MRs in Lucknow plan routes by locality — Alambagh , Hazratganj , Gomti Nagar — for time efficiency.

13. DESIGNING SALES TERRITORY Step 4: Assign Sales Representatives Allocate based on experience, therapy knowledge, and area potential. Provide proper training, maps, and doctor lists. Maintain fairness and consistency in assignments. Example: Every Pharma company provides orientation and mapping support before assigning new MRs.

14. MONITORING AND EVALUATION OF SALES TERRITORIES Use CRM/SFA software (like Veeva CRM, Salesforce) to track: Doctor coverage percentage Visit frequency Territory-wise sales growth New doctor additions Conduct quarterly or half-yearly territory reviews. Example: Dr. Reddy’s conducts “Territory Health Checks” every 6 months to adjust plans based on sales analytics.

15. CONCLUSION Sales territory design is the foundation of effective pharma marketing. A well-structured territory leads to: Maximum market coverage Efficient MR productivity Lower operational cost Stronger doctor relationships It aligns field execution with marketing strategy, ensuring consistent growth. Quote: “Right doctor, right time, right message — that’s how effective territories deliver results.”

16. THANK YOU