Asclepius

Consulting Case
GROUP 10
F013

RAVI CHAWLA

F014

MAYUR DADIA

F020

SONIYA GUNJIKAR

F027 ASWATI MARIA JOSE

F055
F067

DEEP SHAH
IPSHA GHOSH

What makes a Market Attractive?

High Growth Rate

Healthcare sector growing at 14%

Healthcare spending : growing at 15%

HMIS Market growing at CAGR 22% to INR 9.8bn in 2015

Lack of specialized products

No focused strategy by major players

Q1

Wipro/Infy/TCS no focused reach

Making way for small specialized players

Market comprising of First Time Users

No compete/replacement strategy

Looking to set up basic infra

Identification of a Gap

Blue Ocean

Threat of New
Entrants
L
Supplier Power
L/M

Competitor
Rivalry
L/M

Buyer Power
L/M

Threat
Substitutes
L

Porters 5 Forces

H : High
M : Medium
L : Low

Segmentation of Healthcare
System Market in India

Segmentation by :

Type of Hospital
Day Care Centres
Nursing Homes
Charity Hospitals
Single-specialty
Hospitals
Multi-specialty
hospitals
Corporate Chains

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

Charity
Corporate
Day Care
Single Specialty Multi-specialty Nursing Homes
Hospitals
Chains
Centres
Hospi
Mkt
Mkt
Mkt
Mkt
Mkt
Mkt
tal/Be
Shar
Shar
Shar
Shar
Shar
Shar
ds
Mkt Cust
e Mkt Cust
e Mkt Cust
e Mkt Cust
e Mkt Cust
e Mkt Cust
e
115
223
30-100 614
25
4% 245
2
1%
5
25
2% 95
8
8% 19
3 16%
5
32
1%
100300
345
14
4% 271
0
0% 415
12
3% 178
3
2%
9
1 11% 275
21
8%
>300
50
8 16% 75
1
1% 25
5 20% 25
2
8%
5
0
0% 45
9 20%

Q1

- Sales Strategy Deciding

Factors
- With relevance to Asclepius
Market
Segmentation

Market Segmentation
1) Based on the number of hospital bed

Customer
Offering
Sales Process

2) Target market for company comprised

large and small hospitals
single to multi to super specialty hospitals
nursing homes
charity hospitals
day-time healthcare centres
public and private hospitals
corporate chains of hospitals and healthcare centres

Q2

Identify the same with relevance

to Asclepius and its target
market.
Customer Offering
Basic System of Billing. Add Ons as per request
No Standard pricing model
Smaller Deals first for trial. Larger deal followed after building of
trust
Sales Process
Process selling approach
Standard sales cycle for Charak was over two months
Selling agreements with 20 resellers across metros and Tier-2
cities due to cost considerations.
Resellers had basic knowledge of software. Asclepius would get
involved once client was interested.

Q2

Identify the same with relevance

to Asclepius and its target
market
Customer Segments

Multi
Speciality Nursing Homes Charity Hospitals

Single Speciality

Customer
Offering

HealthCare IT Products,
Implementation and
Lifecycle management All

Sales
Process

Q2

Internal Sales force

HealthCare IT
Products

Internal
Sales force Reseller

Corporate
Chains

HealthCare IT Products,
Implementation and
Lifecycle management All

Reseller, Internal Sales

force

Day Care centres

HeakthCare IT Products,
Implementation and
Lifecycle management

Internal
Sales force Reseller

DMU at a Large Hospital

Economic
Buying
Influence
Top Management

Advocate
Admin

User Buying
Influence
Dept. Heads

Technical
Buying
Influence
IT

Q3

How DMU is Relevant to Sales

Strategy of Asclepius

DMU affects the Sales Process of the Sales Strategy

In Top-down Vs. Bottoms-up approach Top-down won

No bureaucratic hurdles

Transparency

Value justification instead of feature justification

Vendor Evaluation Criteria for each DMU

TOP MGMT

DEPT. HEADS

Utility value of products and ease of use

IT DEPT.

Total expenditure, benefits of the process optimization, improvement in

quality of care

Integration ease

ADMIN

L1/T1

Decision Facilitators

External Consultants

Referrals

Q3

Purchase behavior of various

segments

Q4

No of Beds

Price
Sensitivity

No of Modules

Over all Process

Improvement End to End
Solution

Robustness &
Scalability

Complexity of
decision
making

30 to 100

High

Limited

Medium/Low

Medium

Medium/Low

100 to 300

Medium

All

High

High

High

300+

Medium

All

High

High

Very High

Formulating a Go to Market Strategy

For a particular segment, its characteristics and these purchase parameters can be analyzed and a decision can be
made regarding the type of channel to be employed

Example: A Day Care Center is characterized by tight budget and generic basic requirements. These combined with
above parameters can lead us to a conclusion that using resellers might be a better strategy for this segment

Go-to-Market Strategy
Alternatives Inside Sales Force

Q5

1
2

Resellers

Combination of Both

INSIDE SALES FORCE

Pros

Cons

COMBINATION

RESELLERS

Higher product knowledge

Better scalability

Best of both

Greater managerial control

Lower costs

Direct customer feedback

Competitor information
availability

Scalability as well as
focused sales

Lower control

Conflict of interest

Training investment

Dual lines of control

Higher personnel expense

Scalability issues

Number of salespeople or resellers

to: a) break even
Fixed costs

Inhouse sales executives

Software

1,000,000

Avg deal size

R&D

2,500,000

number of deals per quarter'

Other expenditure

5,000,000

Annual deal value

total

8,500,000

Q6

Resellers

1,000,000
1
4,000,000

avg deal size

number of warm leads
total deals(@10%)
total deal value

500,000
20
2
1,000,000

Recruitment Costs

42,000

Variable commission

Training

50,000

training

50,000
50,000

Salary

500,000

empanelment

Other overheads

200,000

reseller support rep incentive

Travel Reimbursements

24,000

total variable cost

Mobile bill Reimbursements

12,000

Contribution per year

Incentive

80,000

50000

10000
160000
840,000

Number of salespeople or resellers

to: b) effectively cover the market.
In-house sales executive
Target sales
sales per rep
variable costs

Reseller

5,00,00,000

Target sales

4,000,000

sales per reseller

contribution per rep

3,200,000

total fixed costs

8,500,000

number of sales rep required

number of reps for effective

coverage

5,00,00,000
1,000,000

800000
number of resellers required for effective
market coverage

number of reps for break even

Q6

3
13

50
5