The Sales Force

DILEMMA

SALES MANAGEMENT
GROUP 1
PROJECT GROUP 8

ARCHIT AGARWAL• HARSH AGARWAL

SRISTI GUPTA • ANKUSH PHUTELA
DEEP SHETH • ANKITA SINGHAL
What makes a market attractive?

GROWTH

PLAYERS
Market size is estimated Healthcare industry No strong competition,
to reach 9.8 billion by growing at more than small players with local
SIZE

2015 14% in 2012 command

Expected sales growth Health Care spending HMIS considered a niche

rate of 22% increased by 15% year on segment by top IT firms
year

How will you segment the HMIS market?

The size of hospital can be Hospitals can be divided into various types based upon the
decided based upon the no. of various services provided as follows:
TYPE
SIZE

beds:
1. Single Speciality 5. Corporate Chains
1. 30-100 Beds 2. Multi Speciality 6. Day Care Centres
2. 100 -300 Beds 3. Nursing Homes
3. 300+ Beds 4. Charity Hospitals

Group 8 Asclepius Consulting: The Sales Force Dilemma

Which segments do you recommend?

Single Charity Nursing Day Care Multi Corporate

Speciality Hospital Home Centre Speciality Chain

30 - 100 SS1 CH1 NH1 DC1 MS1 CC1

100 - 300 SS2 CH2 NH2 DC2 MS2 CC2

300+ SS3 CH3 NH3 DC3 MS3 CC3

Past Experience Easy to Moderate Process Tough Sales Process

Moderate Sales Process Large no. of entities Focused at a later stage
Bigger Deal Size Generic basic requirements

Recommended Segments
Avoidable Segments

Group 8 Asclepius Consulting: The Sales Force Dilemma

What will sales strategy be based on?

Single Speciality Charity Hospital

Customer Segments Nursing Home Day Care Centers
(100 -300 beds) (100 - 300 beds)

Enterprise level Enterprise level Price sensitive,

Tight budgets,
selling, Complex selling, Complex Resistance to
Characteristics Generic basic
DMUs, Depth of DMUs, Good process change, Generic
requirements
product knowledge framework basic requirements

Diet management, Nursing notes, Administration,

All basic modules
Scheduling, Billing & Appointment Pharmacy, OPD &
Customer Offering like administration,
Specialised modules management, IPD, Billing and more
billing etc.
like Radiology IS History & physical modules

Module Wise or Module Wise or

Pricing Module Wise Module Wise
User Based License User Based License

Price sensitive, End-to-end product, Fewer people in

Technically strong
effective selling bundled offers, top- buying centre,
sales force, higher
Sales Process through resellers, down sales difficult to initiate
level of training, top-
basic technical approach, More and mange change,
down sales approach
knowledge people involved price sensitive

Group 8 Asclepius Consulting: The Sales Force Dilemma

What will be the DMU at a large hospital?
Play the role of initiator Plays the role of Plays the role of buyer
IT & ADMIN

DOCTORS
and users gatekeeper and and decider

Bottom-up approach used
to influence the decision
making
Main parameter is ease
of use & quality of
integration
CEO/MD
influencer
Top-down approach used
Main parameter is the to influence decision
quality of patient care making
and utility of product in
their day-to-day lives Main parameter is return
on investment & process
optimisation

How is the DMU relevant to sales strategy?

Advantage of using the top-down Focus of parameters for Use of management
approach clarified each decision making consulting due to
unit is different. nature of buyer and
1. Setting up meetings with MD/CEO process involved can
with help of references will be more Therefore, a clearer be a tool used when an
relevant and time saving. understanding will help understanding of DMU
2. Resistance at lower levels could Asclepius use a different is clear.
lead to loss of effort, time & energy strategy for each unit.

Group 8 Asclepius Consulting: The Sales Force Dilemma

What is the purchase behaviour?

Customer Segments Behaviour / Need Sales Strategy

Inexpensive, price sensitive Target doctors

Day Care Centre &
Easy integration & operation Focus on process efficiency
Nursing Home
Basic modules Use of testimonials

Inexpensive, price sensitive

Target managers
Charity Hospital Focus on productivity
Cost-benefit analysis
Basic requirements

Specific knowledge Target managers

Single Speciality Complex products Focus on ROI and process
Selected modules optimisation

Complete solution package Target departments

Multi Speciality All necessary & add-on modules Focus on cost effectiveness, process
Smooth implementation optimisation & after sales support

Group 8 Asclepius Consulting: The Sales Force Dilemma

What are various go-to-market options?

In-House Sales Reps Resellers

Direct contact with customers

Higher conversion rate of warm leads
Better knowledge of local market
Highly concentrated sales effort
Easy entry into new geographic areas
Bigger average deal size
Pros Increased reach and penetration
Lower commission on final deals
Leverage upon the existing customer
Better product knowledge
base and prior experience in the field
No commission on providing support
service

No direct client contact

Very low conversion rate
Cost of selling the product is higher
Smaller average deal size
Cannot reach to masses in a short span
Cons Higher commission on final deals
Chances of geographic duplication
Less motivation to sell products
Waste of time due to travelling
Higher commission on providing support
service

Group 8 Asclepius Consulting: The Sales Force Dilemma

How many sales people are needed?

In-House Sales Reps Resellers

Annual Contribution (Rs.) per unit per year 3092000 840000

Variable Cost (Rs.) per unit per year 908000 160000

Total Sales (Rs.) per unit per year 4000000 1000000

Total Fixed Cost (Rs.) per year 8500000 8500000

Units required to Break-Even 3 11

Target Sales (Rs.) per year 50000000 50000000

Units required for Effective Selling 13 50

Total Variable Cost for Effective Selling (Rs.) 11804000 8000000

Cost to Income Ratio 23.608 16

For detailed calculations please refer to the Excel Sheet attached

Group 8 Asclepius Consulting: The Sales Force Dilemma