Case Solution for Pharma Talent: Paying Sales Force Bonuses Within a Fixed Budget

Complete Case details are given below :

Case Name :      Pharma Talent: Paying Sales Force Bonuses Within a Fixed Budget
Authors :           Michael Taylor, Rocky Campana
Source :             Ivey Publishing
Case ID :            W12268
Discipline :        Sales
Case Length :    09 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
This case concerns the bonus structure for a representative sales team. Pharma Talent, a contract sales company for pharmaceutical companies across Canada, promised its clients that its representatives would drive sales at a lower cost than what the client would incur if it had its own sales force. Historically, it had contracts with products that targeted physicians (e.g., prescription drugs or medical devices); however, a new contract in Ontario involved an over-the-counter (OTC) product. Pharma Talent currently had a pay-for-performance bonus structure that had already been revised three times. Nevertheless, due to the structure of the different territories in Ontario, many sales team members thought the bonus was unfair and very discouraging, while its pay-for-performance structure did not meet the clients’ needs.
 
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