GlaxoSmithKline's New Sales Force Compensation System in the US

            
 
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Case Details:

Case Code : MKTG258
Case Length : 10 Pages
Period : 2009-2010
Pub Date : 2010
Teaching Note : Not Available
Organization : GlaxoSmithKline Plc
Industry : Pharmaceutical
Countries : US

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Introduction Contd...

"The changes we are making to our sales compensation system will enable us to align our financial incentives to activities that offer appropriate value that is consistent with our company values,"4 said Deirdre Connelly (Connelly), President, North America Pharmaceuticals, GSK. However, industry observers were divided in their opinion regarding the effectiveness of the new sales force compensation system.

About GSK

GSK was formed in 2000 by the merger of two research-based pharmaceutical companies ¾ Glaxo Wellcome and SmithKline Beecham. Headquartered in Brentford, London, UK, the company has a rich history that dates back to the 18th century.

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This new system was to be implemented from 2011. There were four main companies in the history of GSK: Burroughs Wellcome & Company, Glaxo Laboratories, Beecham, and SmithKline & French.

With this merger, GSK became the largest pharmaceutical company in the world. But as of 2010, it was the world's fourth largest pharmaceutical company. GSK had a diverse product portfolio covering anti-infectives, central nervous system (CNS), respiratory, gastro-intestinal/metabolic, oncology, and vaccines products. It also had a Consumer Healthcare operation with oral healthcare products, nutritional drinks, and over the counter (OTC) medicines5.

Excerpts >>


4] "GlaxoSmithKline to Implement New Compensation Program for U.S. Sales Professionals," http://us.gsk.com/html/media-news/pressreleases/2010/2010_us_pressrelease_10067.htm
5] Over the counter medicines are medicines that could be sold without a prescription.


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