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Winning Presentation - ZS Consulting Case Challenge

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Wiining presentation at the ZS Consulting Case Challenge at Kellogg

Wiining presentation at the ZS Consulting Case Challenge at Kellogg


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  • 1. Ariel Surgical Sales & Marketing Strategy ZS Case Competition 09 November 18, 2009 Case Challenge 09
  • 2. Goals & Strategic Imperatives 4 key imperatives will position Ariel Surgical better to achieve growth targets, addressing the opportunities and challenges Sales Projection (in $M) $285 OPPORTUNITIES $245 CHALLENGES $219 • $20 M Wound Care $193 • Under-penetration Market of existing accounts • New Innovative • Sales Force Product (Clot Sys) Effectiveness • Diverse Product • Competitive Portfolio Pressure (PurSang) 2009 2010 2011 2012 Key Imperatives Optimize Sales Enhance Account Identify Surgeon Increase Sales Process & Penetration Targeting Strategy Force Effectiveness Organization 1 Case Challenge 09
  • 3. 1. Adopt Value Assessment Framework to Assess Account Potential and Penetration Levels An Iterative Value Assessment 1 Determine targets and sales breakdown by procedure type Framework from product sales breakdown 3 Compare the potential sales to actual sales 2 Determine account potential by using decile breakdown 2 Case Challenge 09
  • 4. Using the Framework: Cardio & Valve Surgery Categories are Performing Below Decile Average Difference between potential & actual sales Key Observations: • 70% of accounts are below the decile average potential • BANDSeal and the Cardio/ Valve category shows the $1,400,000 most negative deviation from decile mean $1,200,000 $1,000,000 Above Decile $800,000 Average $600,000 Potential Causes $400,000 • Sales force prioritizing certain product types/ surgeons/ $200,000 accounts to achieve targets within their territory $0 • Misalignment of sales force efforts and company goals -$200,000 -$400,000 • Lack of sufficient training – differences in skill sets LEKStop BANDSeal GRAFTSeal required for different products/ accounts $500,000 Benefits of the Framework $400,000 • Segment customers by potential to determine resource $300,000 Below Decile Average allocation/ service levels $200,000 • Establish detailed sales targets by account/ $100,000 $0 surgeon/product -$100,000 • Prioritize – under-penetrated accounts with high -$200,000 potential vs. other existing/ new accounts -$300,000 -$400,000 Brain Hip/ Knee Valve Cardio Burn Procedures 3 Case Challenge 09
  • 5. 2. Ariel Should Target Cardiovascular, Thoracic & Neuro Surgeons Actual Sales per Surgeon (‘000) • Cardio, Thoracic and Neuro 391.57 Surgeons generate the highest sales per surgeon. 241.39 • Based on product relevance, Neurological, Thoracic and Cardiovascular generate 71% 79.49 45.70 of Ariel’s Revenues 3.78 2.96 Plastic Orthopaedic CV/ Thoracic Neurological Vascular Other • Return on sales effort is highest Surgeon for this segment Neurological Thoracic Cardiovascular LEKStop 20% 20% 25% BANDSeal 30% 70% GRAFTSeal ClotSys 10% 60% 4 Case Challenge 09
  • 6. 3. Sales Force Effectiveness: Deploy Additional Salespeople to Cover ClotSys Sales Force Deployment Plan for 2010 & Beyond +32 -16 • Moving forward, we calculated the sales force required as: • Centralizing • Focus on medium o2011 = 100 people administrative sized accounts 106 functions (6th, 5th, 4th Deciles) o2012 = 116 people 90 maximize sales to • Reducing travel time effort ratio. due to above • This also helps to • Customer achieve $13.9M Segmentation target in 2010 • Synergies with LEKStop Accounts Current Sales Optimization Deployment 2010 Sales Force for ClotSys Force 5 Case Challenge 09
  • 7. 3. Sales Force Effectiveness: Aligning Compensation Structure With Company Goals In ensuring sales force compensation is closely aligned with Ariel Surgical’s overall company goals, we must ensure the following factors are taken into account. How well are sales people How well are sales people growing Ariel’s market achieving the average share of existing products account targets for each Account & by successfully growing Portfolio decile – by product type existing/ new accounts? Performance and surgeon type Growing NPI Accounts Performance How well are sales people Customer How well are sales people Service performing on targets for performing on customer satisfaction and service new products such as levels – both for clinical ClotSys – over the first 1-2 and economic selling? years? 6 Case Challenge 09
  • 8. 4. Re-engineer Sales Process & Organization Involvement of central Standardize contracting and pricing group of product procedures to be performed by a specialists to support central administration group. Minimal clinical selling involvement by sales force. Clinical Targeting & Selling Account Needs Case After Sales Support Contracting Potential Assessment Coverage & Reinforcement Assessment Economic Selling Use Value Assessment Economic selling to occur Product specialists to handle Framework to assess concurrently with needs technical support and in- account potential and assessment and clinical house call center to provide target based on selling for better customer service, while sales segmentation relationship building reps focus on more penetration and new sales. 7 Case Challenge 09
  • 9. 4. Re-engineer Sales Process & Organization (contd.) High Level Organizational Model (Preliminary) Regional Regional Regional Regional Regional Sales Team Sales Team Sales Team Sales Team Sales Team Regional Regional Regional Regional Regional Sales Director Sales Director Sales Director Sales Director Sales Director Primary responsibility: Key Account Key Account Key Account Key Account Key Account Customer Managers Managers Managers Managers Managers Relationship and Growing Accounts Sales Sales Sales Sales Sales Executives Executives Executives Executives Executives Sales Reps Sales Reps Sales Reps Sales Reps Sales Reps Product Specialist Group Primary responsibility: Administration & Customer Service Group Central specialized support activities Finance Group – Pricing, Contract Mgmt, & After-sales Accounts 8 Case Challenge 09
  • 10. Prioritization & Implementation Plan UNDERTAKE PRIORITIZE Quick Wins • Optimization of existing sales Organization & force workload – by Q4 2009 Customer Process Changes HIGH Value Assessment Segmentation Framework Sales Force Within 6 Months BUSINESS IMPACT Deployment for Sales Force • Value Assessment Framework – ClotSys by Jan 2010 Compensation • Sales force deployment for QUICK WINS REJECT ClotSys – by Feb 2010 • Customer Segmentation – Feb 2010 LOW Optimization of Existing Sales Force Within 1 Year Workload • Sales Force Compensation – Q3 2010 • Organization & Process Changes LOW HIGH – by Q4 2010 COMPLEXITY OF IMPLEMENTATION 9 Case Challenge 09
  • 11. Next Steps • Form detailed project plan and project teams for short to medium term projects • Analysis on compensation structure – led by HR and Sales Director • Revisit marketing and promotion plans to ensure alignment with new targeting strategy – led by Marketing Director • Detailed assessment of the organizational structure and sales processes – led by cross-functional team 10 Case Challenge 09

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