The Sales Force

DILEMMA

SALES MANAGEMENT
GROUP 1
PROJECT GROUP 8

ARCHIT AGARWAL HARSH AGARWAL

SRISTI GUPTA ANKUSH PHUTELA
DEEP SHETH ANKITA SINGHAL

Expected sales growth

rate of 22%

Healthcare industry
growing at more than
14% in 2012
Health Care spending
increased by 15% year on
year

PLAYERS

Market size is estimated

to reach 9.8 billion by
2015

GROWTH

SIZE

What makes a market attractive?

No strong competition,
small players with local
command
HMIS considered a niche
segment by top IT firms

Group 8

The size of hospital can be

decided based upon the no. of
beds:
1. 30-100 Beds
2. 100 -300 Beds
3. 300+ Beds

TYPE

SIZE

How will you segment the HMIS market?

Hospitals can be divided into various types based upon the
various services provided as follows:
1.
2.
3.
4.

Single Speciality
Multi Speciality
Nursing Homes
Charity Hospitals

5. Corporate Chains
6. Day Care Centres

Asclepius Consulting: The Sales Force Dilemma

Which segments do you recommend?

Single
Speciality

Charity
Hospital

Nursing
Home

Day Care
Centre

Multi
Speciality

Corporate
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
Moderate Sales Process
Bigger Deal Size

Easy to Moderate Process

Large no. of entities
Generic basic requirements

Tough Sales Process

Focused at a later stage

Recommended Segments
Avoidable Segments

Group 8

Asclepius Consulting: The Sales Force Dilemma

What will sales strategy be based on?

Customer Segments

Single Speciality
(100 -300 beds)

Nursing Home

Characteristics

Enterprise level
selling, Complex
DMUs, Depth of
product knowledge

Tight budgets,
Generic basic
requirements

Enterprise level
Price sensitive,
selling, Complex
Resistance to
DMUs, Good process
change, Generic
framework
basic requirements

Customer Offering

Diet management,
Scheduling, Billing &
Specialised modules
like Radiology IS

Nursing notes,
Appointment
management,
History & physical

Administration,
All basic modules
Pharmacy, OPD &
like administration,
IPD, Billing and more
billing etc.
modules

Pricing

Module Wise or
User Based License

Module Wise

Module Wise or
User Based License

Module Wise

Sales Process

Technically strong
sales force, higher
level of training, topdown sales approach

Price sensitive,
effective selling
through resellers,
basic technical
knowledge

End-to-end product,
bundled offers, topdown sales
approach, More
people involved

Fewer people in
buying centre,
difficult to initiate
and mange change,
price sensitive

Group 8

Charity Hospital
(100 - 300 beds)

Day Care Centers

Asclepius Consulting: The Sales Force Dilemma

Bottom-up approach used

to influence the decision
making
Main parameter is ease
of use & quality of
integration

Plays the role of

gatekeeper and
influencer

CEO/MD

Play the role of initiator

and users

DOCTORS

IT & ADMIN

What will be the DMU at a large hospital?

Main parameter is the

quality of patient care
and utility of product in
their day-to-day lives

Plays the role of buyer

and decider
Top-down approach used
to influence decision
making
Main parameter is return
on investment & process
optimisation

How is the DMU relevant to sales strategy?

Advantage of using the top-down
approach clarified
1. Setting up meetings with MD/CEO
with help of references will be more
relevant and time saving.
2. Resistance at lower levels could
lead to loss of effort, time & energy

Group 8

Focus of parameters for

each decision making
unit is different.
Therefore, a clearer
understanding will help
Asclepius use a different
strategy for each unit.

Use of management
consulting due to
nature of buyer and
process involved can
be a tool used when an
understanding of DMU
is clear.

Asclepius Consulting: The Sales Force Dilemma

What is the purchase behaviour?

Customer Segments

Behaviour / Need

Sales Strategy

Day Care Centre &

Nursing Home

Inexpensive, price sensitive

Easy integration & operation
Basic modules

Target doctors
Focus on process efficiency
Use of testimonials

Charity Hospital

Inexpensive, price sensitive

Focus on productivity
Basic requirements

Target managers
Cost-benefit analysis

Single Speciality

Specific knowledge
Complex products
Selected modules

Target managers
Focus on ROI and process
optimisation

Multi Speciality

Complete solution package

All necessary & add-on modules
Smooth implementation

Target departments
Focus on cost effectiveness, process
optimisation & after sales support

Group 8

Asclepius Consulting: The Sales Force Dilemma

What are various go-to-market options?

Pros

Cons

Group 8

In-House Sales Reps

Resellers

Direct contact with customers

Higher conversion rate of warm leads
Highly concentrated sales effort
Bigger average deal size
Lower commission on final deals
Better product knowledge
No commission on providing support
service

Better knowledge of local market

Easy entry into new geographic areas
Increased reach and penetration
Leverage upon the existing customer
base and prior experience in the field

Cost of selling the product is higher

Cannot reach to masses in a short span
Chances of geographic duplication
Waste of time due to travelling

No direct client contact

Very low conversion rate
Smaller average deal size
Higher commission on final deals
Less motivation to sell products
Higher commission on providing support
service

Asclepius Consulting: The Sales Force Dilemma

How many sales people are needed?

In-House Sales Reps
Annual Contribution (Rs.) per unit per year

Resellers

3092000

840000

908000

160000

Total Sales (Rs.) per unit per year

4000000

1000000

Total Fixed Cost (Rs.) per year

8500000

8500000

11

50000000

50000000

13

50

11804000

8000000

23.608

16

Variable Cost (Rs.) per unit per year

Units required to Break-Even

Target Sales (Rs.) per year
Units required for Effective Selling
Total Variable Cost for Effective Selling (Rs.)
Cost to Income Ratio
For detailed calculations please refer to the Excel Sheet attached
Group 8

Asclepius Consulting: The Sales Force Dilemma