Asclepius

Consulting: The
Salesforce
Dilemma
Group-4
Debashish Hota H018
Gaurav Kumar H030
Logarajan H032
Akshay Mathur H035
Namarta Narang H038

Market Attractiveness & Segments

Type of
Hospital
A market is
high growing
or stagnant

Market
Potential
Long term
growth
potential

Market
Accessibility

Scalability

Single
Speciality

No. of Beds
30 100
100 300
>300
30 100

Multi Speciality

100 300
>300
30 100

Nursing Homes

Market Size

>300

Size of the total market

Charity
Hospitals

Competitive Rivalry
Threat from
Competitors

Barriers to
entry

Threat from
Substitute
products

100 300

Suppliers/Retai
lers Power

Corporate
Chains

Day Care
Centres

30 100
100 300
>300
30 100
100 300
>300
30 100
100 300
>300

Segments & Attractiveness

Market
Attractiveness

HIGH

MEDIUM

LOW

Current Position
Day-Care(100-300,
>300)

Good

Average

Day-Care(30-100)

Nursing
Homes(>300, 30100, 100-300)
Charitable
Hospital(30-100,
100-300, >300)

Single Specialty
(100-300)

Single Specialty(30100, >300)

Weak

Multi-Specialty
(100-300)

Multispecialty
(>300)

Child Care(30-100,
100-300, >300)
Multi Specialty(30100, >300)

Asclepius Consulting: Considerations for sales

strategy
Question 2: What are the factors that you will take into account while
deciding on a sales strategy? Identify the same with relevance to
Asclepius and its target market.

Long term sales goal

Business sales cycle
Competitive scenario to decide type of sales strategy Direct or indirect
Target market requirements Product based selling, process based selling,
consultative approach
Target market buying behavior
Organization's competitive advantage

DMU At A Large Hospital

A decision making unit (DMU) at a large hospital usually comprises of not just
the hospital administrators, but also the doctors.

DMU

Top Management
Specialised
Departments, Labs
& Pharmacy
Administration &
Internal IT team

Evaluation
Basis

Total expenditure
Benefits of process optimization
Significant improvements in the quality of
care offered
Daily utility of the product
Ease & convenience of use

Specifications of the product

Quality of integration with existing hospital
processes

Asclepius Consulting: The Sales Force Dilemma

Relevance of understanding the DMU to the sales strategy for
Asclepius:

Need recognition

Focus on explaining the uses & benefits of the product

Helps in influencing Doctors, IT team & other department

Search for product

or supplier

Influencers play an important role here

Focus on increasing recommendation by consultants,
doctors, other hospitals etc.

Evaluation of
choices

Focus should be on the top management and consultants

Basis of evaluation: robustness, scalability, ROI, tech
specs etc, of the system

Buying Decision

Focus on top management or purchase department as

they are the final negotiators

Implementation of
contract

Focus on providing the best delivery & consistent support

to the IT department for installation & integration of the
system

Post-purchase
evaluation

Ensure customer feedback and provide post-purchase

support
Query-handling, free updates etc.

Purchasing Behaviour
30<100
Hospitals with
limited IT
knowledge

CEO is Chief doctor and hence will be unavailable

IT and administrative staff handle the purchase process
and majority of customer contact spent with them

Independent consultants help the hospital in the buying

process
Maintaining a strong relationship with the independent
consultants plays a major role

Corporate chains

They follow the formal process of rolling RFPs and provide

same platform for the vendors
Having the well established effective sales person will give
an edge

Extensive buying
centre

Few hospitals setup a committee involving various

stakeholders to decide the vendor
In-house product specialist would be required to convert
this deals

Go To Market
A full-fledged team of outbound salespeople

Pros
Full time employees better accountability
They would be in charge of the entire sales process
Working at specified locations better accessibility to the clients and better route map to generate
leads
They would report directly to the National Sales Head
Cons
They would draw huge salaries and would need office space which means more cost to the company
To meet the cost they would have to generate a sizable amount of revenue

Scale up reseller channels

Pros
Low cost/ Better reach and so more leads
Major portion of the incentives were covered by the Annual Maintenance Contracts
After installation they became the face of Asclepius
Cons
Not equipped enough to handle complex queries of the client
Usually a senior manager from Asclepius was called upon to close the deal/ they couldnt sell the
product on their own
Lower average deal size
For every 10 reseller the company still needed to provide the sales support of one inside salesperson

Our recommendation increase the current sales force

Estimate of Salespeople or Resellers

Case

In-house
Sales
Exec

Resellers

Inside
Salesperso
n

Existing Scenario

20

Breakeven - Resellers

17

Breakeven Inhouse Sales Execs (Average Deal of INR 5 lacs)

Breakeven Inhouse Sales Execs (Average Deal of INR 10 lacs)

Breakeven Inhouse Sales Execs (Average Deal of INR 15 lacs)

3 in-house sales execs or 17 resellers are needed for breakeven sales when the average
revenue earned per sales exec per deal is taken INR 10,00,000

Case

In-house
Sales
Exec

Market Size of INR 4.17 billion (Resellers)

Market Size of INR 4.17 billion (In house sales exec)

Resellers

Inside
Salesperso
n

4372

442

1093

1093 in-house sales execs or 4372 resellers are needed to cover a market of
INR 4.372 billion

Appendix- Calculations

Estimates