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Case Study
Mediquip SA
Introduction
Mediquip was a subsidiary of a French company named Technologie Universalle. However, the subsidiary dealt in production of CT scanner, X-ray, ultrasound and nuclear diagnostic equipments. The company adapted to technology rapidly and was known for its good after sale services. The company competed usually with European competitors, however, its most serious and intense rival was Dutch based company Sigma. On the other hand, the second organization involved in the case is a Stuttgart based Lohmann University hospital. It was a general teaching facility and possessed a number of X-ray equipments.
Problem Statement
The generic problem for the company had been the low number of sales probably due to ineffective marketing and sales strategy. Lohmann University hospital (LHU) solicited Mediquip for the purchase of a CT scanner. After long negotiations, LHU decided to purchase it from Sigma. The main issue for the company had been ineffective sales negotiations. They need to develop a new sales strategy and improve the sales team in order to avoid such events in future.
Analysis
Mediquip SA
The company lost the deal with LHU apparently because of the ineffective dealing. If we look deep in to the situation, we would get to know that there had been a number of problems which caused the loss.
First Impression
Mediquip had low number of sales because they dont have a good first impression. In return, it jeopardizes the companys reputation. To elaborate more, the companys first impression is not good because of bad preparedness, communication and lack of knowledge. The company does not have price estimates on hand and does not show a customer as the companys key account. The sales team is not prepared; for example, they lowered the prices several times which jeopardized the companys reputation. Moreover, there had been lacks in the communication skills of the sales team. There had been excessive calls to the representatives in LHU which probably annoyed them. Moreover, the interval between calls sometimes had been too short and other times too long. This caused the deficiency of trust between two organizations and they could not understand each others needs. Last but not least, the sales team did not have adequate knowledge; they did not know what features differentiate Mediquips CT scanner from its competitors. Moreover, in case of LHU, they also did not have background knowledge of the needs of LHU. It also gave the Lohmann University an impression that Mediquip did not have enough knowledge about medical equipments supply industry.
Price Negotiations
Most importantly, what let Lohmann down was that last price quoted was way far than the original price. In the greed of carrying out sales, they decreased the price greatly. It basically
Mediquip SA
contradicted the argument of the company for their scanner of superior value. Moreover, it also shows that Mediquip was trying to take advantage of Lohmann by boasting off their quality. Hence, it gave a mixed message about the quality of the product.
Recommendation
I would like to recommend implementation of CRM to the company for its better future:
Mediquip SA
warehouse, they would store the information about the potential customers around the globe. Then, with the help of data mining, the company would be able to get the desired information at the time of sales (Vincent Rainardi).
Mediquip SA
Appendices
Mediquip SA
References
1. Kotler, P., Managing Customer Relationships: Lessons from the Leaders, The Economist Intelligence Unit, 1998 2. Reinartz, W. and Kumar, V., The Mismanagement of Customer Loyalty, Harvard Business Review, July 2002 3. Vincent Rainardi, Jan 2010. Using a Data Warehousing for CRM. Extracted from: http://dwbi1.wordpress.com/2010/01/28/using-data-warehouse-for-crm/ 4. Lee Ann Obringer, Money.howstuffworks. How building a sales team works. Retrieved from: http://money.howstuffworks.com/business-communications/sales-hiring6.htm