Value Drugs will employ the use of manufacturers’ representatives, rather than an in-house sales force, to sell it’s products to retailers in the local market.  The manufacturers’ representatives will use a direct sales strategy to penetrate the retail market.  While it will lose some control over the selling function, the company will still coordinate the selling process so that it is consistent with the company’s marketing objectives.  Joe Formulary will also work closely with the representatives on such policies as pricing, area, distribution and order-handling procedures.

The company’s primary sales goal is to win shelf space at discount retail chains, as well as supermarkets, drug stores and gift shops.  Mr. Formulary believes that using this selling tactic will have two main benefits in helping to achieve this objective.  First, the company will not incur the costs of directly employing a full sales force.  Second, the manufacturers’ representatives have a sales network in place at the retail level.  This will allow the company to move it’s products into the retail outlets faster than if it sold the products itself.  It will also give Value Drugs access to retailers it might not otherwise have.

The following table (Sales Targets) illustrates the expected results of the planned sales effort: