Documente Academic
Documente Profesional
Documente Cultură
Dickinson
Division:
Marketing
Organization
Syndicate 5:
Bibhushan Raj Joshi (29118701)
Hawa Firdausi K (29118145)
Jonathan Febrian (29118124)
1
Becton Dickinson (BD) Profile
2
BDD Products
B-D Reusable Syringes and Needles ACEv Brand Bandages and Elastic
Support Products
Distributors
4
Problem
U.S. government reimbursed hospitals decrease
● First, hospitals placed increased pressures on manufacturers to lower prices while reducing their supplies
inventories.
● Second, purchasing decisions had changed. (increased power f buyer)
● Third, the formation of group purchasing organizations (GPOs) and multihospital chains had
● accelerated
● Fourth, during the 1980s, the incidence of AIDS patients had increased the medical community's concern with
product quality and safety, especially in categories where accidents
● involving skin puncture were not uncommon (e.g., needles).
● A fifth factor was increased market interest in new product/service arrangements:
Question to Answer
● Competitors
○ Sherwood Medical
■ U.S. competitor
■ main emphasis was the hospital market, but it also sold to the dental, consumer and industrial sectors.
■ Primary line was known as Monoject, needle/syringe self-contained in plastic package
■ American Home Products emphasized the importance of being a low-cost producer in this business,
○ Terumo Corporation
■ a global competitor.
■ sold over 1,000 health care products worldwide.
■ 27% of the corporation's sales were from injection systems, 26%from pharmaceuticals, 17%from blood
transfusion equipment, and the remainder from a variety of clinical testing systems
■ Terumo, both in the United States and abroad, followed a low-price strategy
■ Created special distributor incentive programs which, as it offered guaranteed margin of around 15% regardless
of actual market or bid prices with a hospital or buying group
Current Structure
9
Disagreement between Sales and Marketing
Department
Complaints of Sales Manager about Marketing Complains Marketing
department
● When reps come to headquarters for sales
● They don't take customer complaints seriously training, it's clear that many haven't read the
enough. product release memos.
● will call sales people for information but gets ● Too many chiefs and not enough implementation
upset. people to help deal with sales, manufacturing,
● Sometimes marketing is successful in attaining finance and customer service
from other functions, not what the customer ● Marketing offers tools for sales, but there's no
wants. accountability to ensure that sales uses the
● Communications from marketing come through tools. Being outsold by competition is never
the "grapevine" or informal discussions. cited as the reason for an unsuccessful program.
● Frustration for sales rep is is lack of timely
information.
● For sales rep, Finance can shoot holes in what
we're doing because we lack the facts.
Marketing department
● Found it increasingly difficult to manage adequately across all the division's markets as buying groups became
more prominent in the hospital market, as new alternate care sites proliferated, and as the division began to
introduce new products and new product/service features.
● Current structure, each Product Manager had responsibility for various assignments as well as budgets and sales
goals for individual products and programs. Product assignments tended to cut across individual program
assignments.
● Structure fits the facts of our business and allows us to achieve focused responsibility for programs that reflect
specific opportunities and threats in a fast-changing environment."
Current Marketing Managers
Laureen Higgins Robert Short
● Job title: Senior Product Manager for ● Job title: senior product manager for the Hospital Market
● had been in sales with BD for 19 years
Hypodermic Programs ● He had three major responsibilities: forecasting, hospital
● six years in marketing positions in BD's conversion programs, and product development.
Consumer Products division ● Concerned am concerned both with units sold and average
● launch and coordinate end-user advertising selling price because prices and competition vary
programs for BDD's hypodermic product significantly in each segment."
● He found out that there is no such mechanism currently
● ad planning, concept development, direct mail, existed for tracking sales to non hospital accounts.
contests, and ● He was involved in Hospital “in-service” training programs
● sales force education regarding the use of these for all end users of BDD products
materials. ● He has worked in multifunctional teams of product
development ranging from new product research and
● gathering and disseminating competitive existing product modifications to worldwide
information using "Hot Line" (telephone standardization of divisional product codes.
exchange) and monthly newsletter from ● He has worked in different sales territories.
distributors. ● He realize that field Sales can realistically focus on only a
few strategic areas and programs at any one time. But
Marketing managers tend to proliferate lots of ideas,
programs, and segments
Current Marketing Managers
Greg Sutton Peggy Fero
● Job title: senior product manager for ● Job title : product manager for National Account
Distributor Programs Services
● developing BDD's distributor programs ● territory and distributor sales reps in selling and
servicing their as liaison between marketing and
BDD's three National Account Managers (NAM)
● improve our standing in the contract renewal
process
Current Marketing Managers
Roger Hankin John Kao
● Can easily tackle the development of additional new products without addition of any new Sr. Product manager.
● Is ideal for improving the speed and efficiency of a business.
● Allows the manager to work as a team rather than focusing on the individual goal.
● Easy track of performance of each manager
● Less complicated while making decision as the decision is based on single manager (unlike previous where any 3 manager can make
decision)
Changes in the Current Position
● Robert Short for Sales and Market Research (Because of his 19 years of
experience and knowledge)
● Hire New Sr manager
● Remaining Senior Manager and Product Managers are divided according to their
Knowledge and Skill under the Sr Managers.
Requirement for New Marketing Manager
● Yes, BDD should hire new Sr Marketing manager, who understands the needs of the new market and challenges.
● The new structure will help the organization to save money and use their existing resources more efficiently.
● Drastic change going in the market requires some significant changes in the organization structure as mentioned before.
● Create a better coordination between the Team to get effective output rather than working on individual objectives.
● Create a proper job description and assign HR team to find the best Manager to fill the position.
● Create a harmony between sales rep and marketing people.
● Invest on research of new market and global market to find new opportunities.
● Allow transfer of knowledge between employees and managers. So that, resignation of one manager doesn’t impact the
whole production under the manager.
● Competitor analysis and Market analysis to find new opportunities
● Use the skill of new manager to Implement Lean Six Sigma method to decrease waste and improve productivity using the
new structure which allows easier coordination between the whole department.
● In this structure no need to assign multiple budget for the each project but for a department as a whole to achieve its
objective.
● Take continuous feedback and make changes in the organization to improve performance.
Thank You