Leading Global Vision Care Organization
Quota setting for their Pharma business unit
Situation
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Quota Setting for a leading global vision care organization operating in 60 nations with customers in over 140 nations.
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Unique problems faced by the client in their Pharma business unit:
- Ownership of glaucoma eye drops transferred from a leading global pharmaceutical organization in mid-2021.
- Product promotions suspended during the transition, leading to a gap in market presence and trajectory.
- Quota-setting strategy dilemma: whether to treat the product as a launch or almost mature, as historical sales history didn’t fit either.
- Historical sales impacted by lack of promotion, showing a downward trend in most territories.
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Client engaged Aurochs via professional services partner to:
- Access end-to-end automation of quota-setting process with change agility and responsiveness.
- Incorporate local guidance and knowledge to improve quota quality and provide flexibility for scenario modeling.
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Key objectives included:
- Agility and flexibility to test different permutations and combinations of historical sales and potential parameters for quota allocation.
- Define markets at granular level and incorporate factors like demographics, patients, physicians, spending, etc.
- Allocate configurable quotas through a user-friendly system allowing simulation of various scenarios without technical expertise.
- Use sales and non-sales-based parameters, considering local knowledge for quota allocation.
- Implement rule-based quota refinement accessible across hierarchy levels with pre-configured restrictions.
- Analytical visualizations and statistical summaries to assess fairness and performance alignment of set quotas.
- Customize historical periods and add caps and floors to handle outliers and ensure quota distribution aligns with company goals.
- Define scenarios using different forecast scenarios.
- Deploy integrated quota management platform with backup support and service operations.
- High levels of automation and repeatability allowing focus on business rather than quota calculations.
Approach
- Aurochs developed a comprehensive approach to ensure high-quality and repeatable quota allocation.
- Analyzed historical sales with and without promotions to determine key factors influencing quota allocation.
- Segmented territories by size (small, medium, large) based on historical product volume and sales performance trends.
- Observed significant variations in behavior among territory segments, with some showing higher downward trends in volume and market share.
- Identified potential factors for different territory segments and incorporated them into quota allocation.
- Simulated several scenarios using different factors and associated weights to refine quota allocation.
- Utilized in-built analytical visualizations to identify bias in quotas for different segments and align with strategic business objectives.
- Implemented caps and floors to ensure fair consideration of outliers and avoid bias.
- Project duration: approximately 6 weeks, with weekly touchpoints to discuss findings and results.
Quota Manager Platform Rollout
- Data collected from various sources, primarily in-house data warehouse, sanitized, and ingested automatically using proprietary Data Manager.
- Aurochs Quota Manager configured to accommodate various scenarios including historical performance data periods, different sales factors, caps, and floors.
- Testing scenarios configured to assess methodology quality by allocating quotas across different historical periods.
- Summary calculation workbooks and reports designed for quota communication.
Outcome
- Project completed within 6 weeks.
- Comprehensive quota cycle management instilled high stakeholder confidence.
- Achieved end-to-end automation of quota allocation process.
- Capability to assess quota quality at individual and role levels.
- Ability to leverage diverse sales and non-sales-based factors.
- Facilitated easier identification of bias in quotas linked to geographical performance trends.