ASCLEPIUS Consulting

Group 7
C Abhilash Reddy
Prateek Vadodaria
Yash Sawant
Uday Kumar
Sachin Sanghvi

(E044)
(E053)
(E057)
(E061)
(F045)

1.What makes a market attractive? How will you segment the healthcare information systems
market in India and which segments would you recommend to Asclepius?

Market Attractiveness
Health care industry growing at more than 14% in 2012
Health care spending in india increased by 15% yoy
Also the HMIS industry growth rate was expected to grow at 22%
reaching INR 9.8 billion by 2015
Leading Indian IT companies considering HMIS as a niche segment,
hence not much competition from IT services companies
No strong Indian player, only few local players with command over their
region.
Hence, a chance to become pan-india player in healthcare software
industry

Based on need for IT and decision making process

Day Centres, Nursing Homes and Charity Hospitals (<100 beds)
Charity Hospitals (100+ beds)
Single and Multi Speciality hospitals
Corporate Chain of hospitals
Single speciality hospitals

Segment Recommendation
Keeping the current scenario of sales force in view, it will be easy to
persuade hospitals where the sales process is easy or moderate so that
the company could achieve its targets.
Hence we recommend ASCLEPIUS to persuade
Nursing Homes & Day care centres
- Sales process is Easy to Moderate
- Moderate Avg deal value
- Maximum customers are situated here.

 Single Speciality and Charity Hospitals

- Average deal size is high
- Sales process in moderate to tough
Multi Speciality and Corporate
Could be concentrated at a later stage when the sales force has been
completely set and gained certain level of expertise

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

The Sales Strategy consists three components:

Customer Segmentation
Customer Offering
Sales Process
Segmentation has been discussed above and the offerings are
mentioned in the case, we can discuss the important facets in the sales
process.

The 8 step sales process can be stated as:

Prospecting
Pre-approach
Approach

Needs Identification
Presentation
Handling Objections

Closing the sale

Implementation/ Follow-up

The firm must include these participants in their consideration set for the
sales process:
Resellers vs. In-house employees
Resellers should suffice in case of smaller accounts. Adequate product
training must be provided. Resellers must come out of their roles as merely
lead generators.
Who to contact in the organization
Top-down approach is preferred for a lead. Tie ups with
consultants may help.

 Criteria for evaluation Asclepius proposal

Asclepius offerings are of superior nature. the firm must provide
training/literature about cost benefits, streamlining of processes and
improvement in quality of care.
Consulting Service
The company can suggest process improvements to cross-sell other
modules. Consultative selling is an important revenue driver from an
account, since software upgrades and patches are provided free, per the
company policy.

3.Describe the decision making unit at a large hospital. How is understanding the decision making
unit relevant to the sales strategy for Asclepius?

Decision Making at Large Hospitals

MD or CEO is the chief decision maker. In most hospitals they are

doctors who had established the hospital
If they can be convinced to buy the product, convincing other Technical
and Administrative staff would be a easier task for ASCLEPIUS
Top management evaluates proposals on basis of
- expenditure
- benefits to organization in terms of process optimization
- improvement in care offered to patient.

 Other departments would evaluate utility of product in day to day lives

and ease of use.
Admin and IT team would evaluate with regards to
- specification
- quality of integration of system with existing hospital processes
Thus the sales process is
- complex process
- involves interaction with various departments at various levels during
the sale.
Hence for handling these accounts, a better strategy would be to
appoint Individual Sales representatives who are well trained, to handle
the Sales process in a better way.

4.Discuss the purchasing behaviour of the various segments. How will you utilize
this information to devise your go-to-market strategy?

Nursing Homes & Day care centres

- Would buy only the basic version of the product
- Doesnt involve much decision making process, or is very simple
- Even a reseller can address this segment as even the service is easy to
do.
The Speciality and Charity hospitals
- Have a well established committee which takes purchasing decisions
after considering all aspects.
- Here the User, Economic influencer, Advocate, technical expert are all
different and needs to be convinced individually
- A company sales person can do a better job as it is a complex process
and requires product knowledge in depth

Corporate Chain hospitals

- Similar to speciality hospitals but a single deal here is worth many times
that of a speciality hospital as all the hospitals of the chain will purchase
-

A senior sales person of Asclepius can handle this effectively as he will

have extensive product knowledge and can handle the account and
relationship with them in a better way

5.What are the various go-to-market alternatives for Asclepius? What are their pros
and cons and which model would you recommend?

Direct Mail
Pros

Cons

-You can reach to many clients without

much cost
- A good way to approach big clients
- A detailed explanation of features
and benefits can be explained properly

- If the person who is accessing if s/he

is not convinced might not forward the
mail.
- It might act as Spam and hence will
be unnoticeable
If the communication is not proper it
will create negative impact

Telesales
Pros

Cons

- Cost will be relatively less

- Telesales are highly of intrusive
- Talking with the right person will nature
fetch to get an appointment
- Rejection is very easy
- Reaching to masses will be - No face to face Interaction
comparatively easier

Sales Force---Recommended
Pros

Cons

- More focused lead generation

- Better Customer relations
- Effectiveness will be higher and
conversion rate will increase
- Easy to push in new products
- As face to face communication takes
place reading client mind and
accordingly sales pitch can be adjusted
- Doubts can be cleared on the spot
and in few cases by demonstration as
well

- The cost of selling the product is

much higher compared to other
alternatives
- Time wastage in travelling and
Waiting
- Cannot reach to masses in short span
of time
- Geographic duplication

Specialized Sales Force

Pros

Cons

- Allows focus on sales effort

- Expertise developed in limited number
of products
- Salespeople becomes customer
expertise

- Most expensive to operate

- Duplication of sales calls to clients
- Reporting to multiple managers will
create confusion and sales will suffer

6. Based on the data provided in the case, how many salespeople or resellers would Asclepius need
to a) break even and b) effectively cover the market?

Total Fixed Cost : 8,500,000

Variable Costs
In house/ annum : 908,000
Deal per year per sales rep = 4,000,000
Contribution per Sales Rep = 3,092,000
Total No of In House Sales Reps = 3 (Breakeven)

Total Market Potential = 477,70,00,000

Total Number of Sales personnel = 1195

Variable cost
Reseller/annum = 160,000
Deal Value/Reseller/year = 1,000,000
Contribution per Reseller = 840,000
Total No of Resellers
= 10(Breakeven)
Total Market Potential = 477,70,00,000
Total Number of Resellers = 4777

Calculations
Break Even Analysis
Costs/annum
Fixed
Costs of Software
Total R&D Exp
Total Other Expenditure
Total Fixed Cost

10,00,000
25,00,000
50,00,000
85,00,000

Let
Avg Deal Size of Inhouse Sales Rep
Deals per Quarter expectd
Total quarters in a year

10,00,000
1
4

Deal per year per sales rep

40,00,000

Given
Avg Deal Size of Reseller
No of Warm leads/ year
conversion to business
Deals/reseller/year
Deal Value/Reseller/year

Variable
In House
Recruitment Costs
Training
Salary
Other Overheads
Travel Reimbursments
Mobile Bill Reimbursements
Incentive - % of Sale
Total Variable per Sales Rep
Contribution per Sales Rep
Total No of Sales Reps

42,000
50,000
5,00,000
2,00,000
24,000
12,000
2%
9,08,000
30,92,000
2.749029754
3

Resellers
Training
Empanelment
Variable Comission- % of Sale
Reseller Support Incentive - % of Sale
Variable cost per Reseller
Contribution per Reseller

50,000
50,000
5%
1%
1,60,000
8,40,000

50000
10000

10.11904762
1.00

10
1

80000
Total No of Resellers
Inside Sales Persons

5,00,000
20
10%
2
10,00,000

Calculations
Effective Market Coverage
Market Data

No of Beds
30 to 100
100 to 300
300+

Types Of Hospital
Single Speciality Multi Speciality Nursing Homes Charity Hospital Corporate Chains Day Care Centres
614
245
1155
95
19
2235
345
271
415
178
9
275
50
75
25
25
5
45
1009
591
1595
298
33
2555

To Realize Market Potential

Reseller
Avg Deal Size/ year
Total no of Resellers

10,00,000
4777

6081

Average Deal Size

No of Beds
30 to 100
100 to 300
300+

Types Of Hospital
Single Speciality Multi Speciality Nursing Homes Charity Hospital Corporate Chains Day Care Centres
5,00,000
10,00,000
2,00,000
10,00,000
20,00,000
2,00,000
20,00,000
30,00,000
7,00,000
20,00,000
30,00,000
5,00,000
30,00,000
50,00,000
10,00,000
30,00,000
50,00,000
1,00,00,000

Market Potential

No of Beds
30 to 100
100 to 300
300+
Total

Total Market Potential

Types Of Hospital
Single Speciality Multi Speciality Nursing Homes Charity Hospital Corporate Chains Day Care Centres
30,70,00,000
24,50,00,000
23,10,00,000
9,50,00,000
3,80,00,000
44,70,00,000
69,00,00,000
81,30,00,000
29,05,00,000 35,60,00,000
2,70,00,000
13,75,00,000
15,00,00,000
37,50,00,000
2,50,00,000
7,50,00,000
2,50,00,000
45,00,00,000
1,14,70,00,000 1,43,30,00,000
54,65,00,000 52,60,00,000
9,00,00,000 1,03,45,00,000

4,77,70,00,000

Inhouse Sales Rep

Avg Deal Size/ year
Total Required

4000000
1194.25
1195

Thank You