Presented by:

Sabujima Malla
Pooja Punjabi
Sonam Kardam
Nikhil Kumar Gupta
Nirav Sarvaiya

KRAMER
PHARMACEUTICALS INC.
CASE ANALYSIS
Problem Statement
How could a fine detailer like Bob Marsh be
dismissed from a reputed firm like Kramer
Pharmaceuticals, Inc?
Kramer Pharmaceuticals Inc.
Major manufacturer- Medical and dental
Hierarchy:
prescription drugs

Sales in 1977 exceeded 400 million USD

Attrition rate <= 8%

Average earnings for detailers (1978)
28000 USD+ 15% bonus + incentives

VICE
PRECIDENT
ZONE
MANAGER(6)
DISTRICT
MANAGER (35)
DETAILERS
(500)
Bob Marsh
32 year old man, active in community
Good academic record
Successful drug store experience of 12 years in Ohio
Experienced naval pilot fair service record
Aspiring to join Kramer for over a year
Personally knew many physicians and hospital personnel
in his territory
Bobs Tenure

John Meredith
(1966-1971)

Meredith content with Marsh's basic selling skills.

Sales grew steadily.
He focussed Marsh's improvement towards organization, planning and tendency to
prejudge customers.
Marshs salary hiked from $14000 to $20000.

Bill Couch
(1971-1974)

Couch was impressed with Marsh's customer rapport.

Kramers products were used in every hospital pharmacy.
Marsh finished his 5 years in the company.
Marsh got the responsibility of mentoring a distributor.
Marshs salary increased to $24000.

Jim Rathbun
(1974-1976)

Rathbun dissatisfied with Marsh's record in establishing new products.

Pointed out more opportunities of increased sales.
Rathbun figured out the discrepancies in Marsh's reports.
Marsh was put on probation for 90 days post which his performance was recorded as
Satisfactory.
Salary of Marsh was increased to $25000.



Bobs tenure (continued..)

Vince Reed
(1977)

Reed was happy with Marsh's customer rapport.

Reed too pointed out improvements in the areas of planning and organization.
Marsh's overall performance slipped from Satisfactory to Completely Unsatisfactory.
He got a salary hike of $1000.
Marsh was put on probationary period.

Tom Wilkens
(1977-1978)

Wilkens confirmed the observations made by the previous managers.

Marsh's probation status was evaporated.
He had no salary increase.

Tom Franklin
(1977-1978)

Franklin pointed out that Marsh's records were not good.

Marsh had to successfully accomplish a survival procedure-weekly assignments,
questionnaires etc.
Franklin remarked Marsh to be moody, unfriendly and lethargic.
Marsh was finally fired from the job.



Bobs areas of improvements
A catch-as-catch can attitude
Deficiency in new product placement
No definite plan of action
Unplanned visits to the hospitals
Prejudged customer interests
Disinterested in companys management
policy-Adopted own promotional programs


Kramers areas of improvement
No standard company policy for evaluation
No provision for customer feedback
No follow-up training plan post evaluation
Some DMs were less experienced than the
Detailers
Frequent changes of DMs in the last few
years.
Overburdened DMs and detailers.


Bob Should be reinstated
because
A hard worker-loyal and dedicated
Well received by physicians and hospital
personnel
Passionate for the job
His shortcomings in initial years were written
off to inexperience rather than providing
intensive training






Bob Should NOT be reinstated
because
Will set a bad precedent to other detailers
Careless attitude of others towards company
policy
Detailers will start pleasing customers thinking
that they wont be harmed
Decision making and authority of managers
will be challenged
Analysis of Bobs case
0
5
10
15
20
25
30
1964 1966 1968 1970 1972 1974 1976 1978 1980
Performance review
Salary in USD
Manager's Experience
Years