Asclepius

Consulting
GROUP 2

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

Healthcare
Organizations
Private:
Charitable
Organizations

Sector
No. of Beds
Public

30-100

100300

>300

10-100

100300

Private:
Corporate
Houses
>300

10-100

100300

>300

Private organizations:
Resources to afford the systems
Incentive to improve processes and improve efficiency which can act as a differentiator
No. of beds above 100:
The hospitals having beds less than 100 can manage their processes manually as well and
might not see significant benefit from the HMIS
They are also not likely to have enough resources to afford the HMIS

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.

Cost
Technical
Knowledge
Scalability

Resource
Allocation
After Sales
Support and
Maintenance
Account
Management
Consulting

Creating companys own sales force was expensive than scaling

the reseller network
Company salesperson were required to close the deal as resellers
werent adept to sell the product on their own despite extensive
training
Asclepius goal was to sell the basic product to as many hospital as
possible. It was faster to scale up the reseller network. For every
10 resellers one sales support representative was allocated.
Creating companys own sales will drain limited company
resources.
Generally resellers provided maintenance and additional
incentives were given to them for support work. But serving could
be done remotely which would cut costs and ensure
accountability.
In order to earn profit, company had to sell more modules to a
single contact. The company had develop a good account
management program.
Asclepius had to provide insights to its clients to help improve

Describe the decision making unit (DMU) at a large hospital? How is

understanding the DMU relevant to the sales strategy for Asclepius?

Economi
c Buying
Influenc
e: MD or
CEO

Decisions are made by a committee

consisting of both Administrators and Doctors
It was believed that the top-down approach
of getting buy-in from the top management
was a better approach due to past
experience.
Convincing the IT and administrative staff
was easier after getting buy-in from the top.
Proposals were evaluated on the basis of:
Total expenditure
Benefits of process improvement
Any significant improvements in quality of care
to patients

Technical
Buying
Influence:
IT
Departmen
t

Buying
Centre

Advocate
: None

User
Buying
Influence:
Lower,
Middle
Levels and
Doctors

Discuss the purchasingbehaviorof the various segments. How will

you utilize this information to devise your go-to-market strategy?

Segment(Based on no of
beds)
30 to 100

100 to 300

More than 300

Purchasing Behaviour

Found value in Basic Administration, Billing, Pharmacy, OPD and IPD

Modules.
Price Sensitive
Hesitant to Change
Found value in all modules
Needed support in overall process management
Installation was of strategic importance
Robustness, Scalability and ease of use important.
ROI essential
Credibility of Vender important
Found value in all modules
Needed support in overall process management
Installation was of strategic importance
Robustness, Scalability and ease of use important.
ROI essential
Credibility of Vender important
Need management consulting service

Go to Market Strategy
No of Beds 30 to 100
100 to 300
Target
Contact CEO/MD
Contact CEO/MD
directly/through
directly/through referral, hire
referrals
consultants, RFC process
Product
Basic modules with Complete Package with
Portfolio
additional modules customization.
as per
requirements
Pricing
Module wise pricing Licence based pricing
Promotion Research and
provide CostBenefit Analysis for
addition modules.
Offer discounts for
each addition.
Selling
Leverage reseller
Strategy
network

More than 300

Contact CEO/MD
directly/through referral, hire
consultants ,RFC process
Develop an account
management process with
end to end process
management and support.
Licence based pricing

Focus on customization and

cost saving due to webbased system architecture
(10-15k per machine).

Provided initial offering at a

discounted price as the
revenue for maintenance and
support will be substantial

Apart from reseller use own

sales rep and referrals

Apart from reseller use own

sales rep, referrals and
experienced consultants

What are the various go-to-market alternatives in front of Asclepius?

What are their pros and cons and which model would you recommend?

Own Sales
Force

Re-Sellers

Control over the entire selling

process

More Cost effective when sales

volume is low

Opportunity to build relationships

with the clients for further sales

Wider reach and better network

of customers

Not cost effective when the sales

volume is low

Only basic knowledge of

products, could not address
complex queries

Additional source of revenue from

maintenance and service

Required the presence of a

senior manager from Asclepius
for site-visits and deal closure

Better knowledge of the products

and technical details

No relationships with clients for

selling more complex products

Selling
Costs

Independe
nt Agents
Own
Sales
Force

Sales
Volume

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

Assumptions:
Effort required for easy to medium sales
process =1
Effort required for Moderate to Tough sales
process =2
Effort required for Tough sales process =3

Rational:
Potential market value per effort is
highest for 30-100 beds Day care
centres at more than Rs. 44 crores

Average RevenueFixed Cost = Rs. 85,00,000 Variable Cost

earned per
per reseller=
Microsoft Excel
reseller per
1,82,800
Worksheet
At Breakeven:
Total potential leads= 2203
annum
= Rs. Fixed Cost =
Number of warm leads per reseller
9,30,000Contribution
Contribution per reseller = Rs.
7,47,200

Hence Number of resellers = 12

and number of sales person = 2

= 50

Hence, total resellers required to

effectively cover the market = 45
& number of salesperson = 5