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Similar to Tycoon Medical Final Asia Practicum
Similar to Tycoon Medical Final Asia Practicum (20)
Tycoon Medical Final Asia Practicum
- 1. Stacci Barosso Owen Fayer Prepared for: Ilango Gopalan Visutha Vorasucha, Director – Tycoon Medical Vicky Patzer 10 March 2010 Holly Weston David Wroth
- 2. Company Overview Sales Volume 70% 60% • Mission: Providing quality 50% medical products and superior 40% medical engineering services 30% 60% 20% 40% 10% • Distributor of medical 0% Bangkok UpCountry equipment and supplies – 160M Sales Turnover (US$5M) – 50 employees, Founded 2000 Supplies, 30% – ~200 Customers Equip, 70 – Only serving the Thai market % Product Mix
- 3. Nebulizer and Compressor Incentive Laryngoscope Spirometer Modular Operating Theatre Operating Room Table
- 4. Market/Industry Trends Universal Health Care • Free Access for all Thai Citizens • Public Hospitals Struggling to Cope Influx of Medical Tourism • United States • Europe Sophistication of Devices • Disposable Products • Increasingly Complex
- 5. SWOT Analysis Strengths Weaknesses Synergistic Portfolio Limited Product Line Superior Customer Service Communication Staff Experience Limited Trend Analysis TYCOON MEDICAL CO., LTD Threats Opportunities Competitors’ Broader Product Line Enhance Product Line Government Restrictions Sales Lead Tracking New Entrants Employee Retention Website/Co-op Advertising
- 6. Sales Organization Dilemma Diverse Products & Sales Techniques Sales, General Administration Expenses & Coordination
- 7. Bangkok Sales Team (Existing) Sales Manager Bkk Metropolitan Area Product Specialist Sales Sales Sales Sales Public Hp = 10 Public Hp = 10 Public Hp = 10 Public Hp = 10 Private Hp = 25 Private Hp = 25 Private Hp = 25 Private Hp = 25 * Private Hospital >50 Beds
- 8. Potential Sales Structures Territory Hybrid Models Product Hospital Size / Type
- 9. Bangkok Sales Team (Proposed) Account Team Sales Account Pipeline Exec System Top Customers Product Inside Spec Sales Inside Sales Mid –Tier Customers Post Sales Support All Others
- 10. Sales Tracking & Follow Up Salesperson calls or faxes lead Sales Sales Coordinator Coordinator Updates enters data into database database Salesperson Periodic Reports informs sales to Sales coordinator of Manager result Salesperson Sales manager follows up contacts with lead salesperson
- 11. Breakeven Analysis 30,000.00 • 200 quotes/month Monthly Margin/Costs • Average size of Quote 25,000.00 – Supplies ( 15K) 20,000.00 – Equipment ( 700K) 15,000.00 • Incremental Conversion Ratio 10,000.00 (<10%) 5,000.00 • Gross Margin @15% 0.00 LESS Number of Incremental Orders • Cost of the additional resources ( 200K annual) Incremental Margin
- 12. Timeline JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Sales Tracking Pipeline Initial Metrics In Place Pilot Account Team Trial Period Review Implement Account Teams Implement Inside Sales Teams Year End Sales Review
- 13. Metrics Opportunities Quotes Orders Sales # of Opportunities # of Quotes # of Orders Total Value Average Value Average Value Average Value Average Value By Qualification Aging Conversion Ratio By Customer By Product By Product By Product By Product By Salesperson By Salesperson By Salesperson By Salesperson A sales metrics scorecard will assist Tycoon Medical to drive sales growth
- 14. Conclusion • Focus on top Tier Customers to drive growth through account teams – University Medical Centers – Private Hospitals catering to “medical tourists” • Sales pipeline system to measure and improve opportunity-to-order efficiency • Inside Sales organization to drive repeat business in the medical supplies area
- 15. Stacci Barosso Owen Fayer Prepared for: Ilango Gopalan Visutha Vorasucha, Director – Tycoon Medical Vicky Patzer 10 March 2010 Holly Weston David Wroth
- 17. Bangkok Sales Structure Existing Recommendation • Territory based • Account Team for top tier • Sales Exec manages customers prospects – Sales executive • Product Specialist – Product Specialist • Sales Admin – Inside sales person – Post sales support rep • Only 10% follow up • Mid to low level customers • Coordination Issues move to inside sales team • Increasing complexity will • Improve tracking and follow-up exacerbate problem process • Equipment Team not meeting sales targets
- 18. Sales Support and Compensation • Structured compensation for In-House Coordinator • Incentive Program based on company performance – Tiered system – Operating focus targets specific to job – Profit Sharing
- 19. Implementation 1. Sales Tracking and Coordinator a) Sales Metrics b) Result- Improved follow up rate 2. Pilot Account Team for One Top Tier Customer a) Three Person Team handles all aspects of the relationship b) Result – Proof of Concept for Account Team 3. Expand Account Team and Implement Inside Sales a) Account teams for all “Top Tier” Customers b) Inside Sales Team handles other customers with Priority to Supply Business c) Result – Increased sales and profits
- 20. Increase sales communication through widespread cell phone coverage 3G cell site network deployment growth driven primarily by Asia China, India, and Southeast Asia are big components of this growth Better cell phone coverage enables improvement in sales communication SMS-based communication enables 2-way access to/from headquarters and/or database link Asia 3G cell site deployment is the biggest component of growth
- 21. Kimberly Clark Customer Oriented Sales Plan - Understand the customers needs, goals, issues before introducing your product - Fit the product to the customer, not the customer to the product. - Follow the process - don't cut corners - Work multiple opportunities at different stages of the sales cycle - Maximize time when in accounts - Have group meetings - plan/execute/follow-up Position Follow Up The Call - Find internal champions - Introduce the product portfolio and prioritize products based on customer's initiatives Determine - Ask the right questions of the right person Get an Customer Agreement Objectives - Test assumptions by asking questions - Touch everyone involved in the sales process Propose an Action - Keep Materials Mgmt. in the loop Plan - Leverage/neutralize the distribution rep and/or mfg. rep. - Determine the meaning of success when selling and ensure compliance.
Editor's Notes
- Thailand #12 million foreign patients each yearEstimated 1000 public 400 private hospitals29% imported devices from U.S. overall 75% are importedReplacement promo campaign to entice foreign patientsCost = 1/10th of U.S.Foreign Dr. are local, but trained abroad – Easier to get appt with high end Dr.Nurses are abundant
- Government discourages installation of devices that are none critical
- Tycoon seeks to optimize its sales structure as it grows in size and in complexityIncreasing sales turnover by adding new products Diverse product set challenges sales team to be knowledgeableSuppliesEquipmentBangkok sales team is organized by product line and territory, UpCountry team is organized strictly by territoryConcern about communication and coordination between sales teamsWant to maintain a coordinated image to their customersTycoon would like to improve the tracking and follow up of quotationsIssue approximately 40-60 quotations per week“only about 10% are followed up on”
- This slide doesn’t reflect the distinction between medical supplies sales people and medical equipment sales people.The product specialist has in depth knowledge of all the equipment. There is only one product specialist. He is called on the assist whenever there is a customer question that the sales person cannot answer.This slide was taken directly from the Tycoon Medical overview presentation.
- We examined several types of sales structures. A Territory is where a sale person had a specific geography.A product structure entails that a designated salesperson be assigned by product type ie. Medical supplies or medical equipment.Hospital – could assign a salesperson to a specific hospital size (ie. Greater than 250 beds) or hospital type (public vs. private).We have chosen a hybrid structure that incorporates a tiered customer approach.
- We are concentrating on the Bangkok sales force only. A sales team will be implemented that will focus on the top tiered customers.The team will consist of an account exec., a product specialist who has knowledge of the products and will play this role on several teams, an inside sales person who will deal with the medical supply orders and a post sales support specialist who will continue with ongoing customer support after the sale is complete.The mid – tier and all other customers will be supported by an inside sales team. This is mainly for the medical supplies and smaller equipment customers.We have identified a simple sales tracking and metrics system that both teams will provide input to. In turn the system will provide data back to the teams.
- This slide shows a simplified process for sales lead trackingMS Access database template No cost for download Possible cost of 9900 Bhat per Access license We recommend that a dedicated sales coordinator be hired to administrate the system Cost of 17,000 – 20,000 Bhat per year We further recommend email for all employees so that the system can automatically send SMS messages to field sales rep. cellular phones to identify which lead to follow up on. This system can provide various metrics to monitor and improve sales performance.Show demoShow form for new opportunityFilled in opportunities listOpportunities by category Opportunities by employee Opportunities by employee pivot
- Our breakeven analysis shows that even with minor improvement in conversion ratio, the Sales Coordinator position pays for itself.Refer to spreadsheet provided to adjust the model if necessary.
- We agree this is a good idea. We understand that 10% of the 400-600 quotes are actually contacted. The in house coordinator will have a structured compensation plan based on the % of quotes that are filled over the average 10%. The plan will be layered to incentivize the coordinator to achieve specific targets (Example is 30%, 60%, over 80% of quotes). Here are the specific duties of a sales coordinator:Analyze the prospects that the reps have met with, also the current customers. Example, in house coordinator (IHC) will access the reports that sales reps are keeping to determine exactly which clients should receive quotes first, which prospects should gain priority (based on hospital size, etc...)The sales coordinator will be incentivized based on the success of lead generation.The IHC will perform follow up calls to the current customers on a daily/weekly basis (this suggestion is based on us not knowing what the customer satisfaction is currently). This will free up time for the sales reps, but is NOT to replace the sales reps monthly follow ups. These calls will serve to prioritize problem clients that the reps are unaware of. A simple tracking software can incentive the IHC:Number of outgoing dialsNumber of minutes on the phoneIn house coordinator, based on their conversations with the customers, can suggest possible upsells to the sales reps.Sales coordinator will be will required to have relationship with every customer