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MKT 548/549 UNIMED SDN BHD

COMPETITOR ANALYSIS

Unimed sdn bhd produce their product with own strategies than focus on sales and profit.
Past strategies is to trained their sales force to achieve company goals and objective. A
Current strategies is to make sure all the company sales people maintain their achievement
and at the same time company do a continuous training and retraining to developing a sales
force. Future strategies for Unimed is enter international market and try to take get much
more customer and percentage of market share.

CUSTOMER ANALYSIS

WHO ARE THE


CUSTOMERS

(All pharmacies and private clinics.)

Peninsular Malaysia –
Region
East Cost: - Kelantan, Terengganu, Pahang.

Sothern : Johor, Melaka Negeri Sembilan.

Central : Klang Valley, Selangor.

Northern : Perak Penang, Kedah, Perlis.

East Malaysia –
Sabah, Sarawak..

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DEMOGRAPHIC
The person that needed
Age

Gender Male and Female

Race All races.

PSYCHOGRAPHIC

Social Class All type classes

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Competitor Analysis

Other medical company who provide a same product in product line . such as Ranbaxy,
Pahang Pharmacy, Pharmaniaga, CCM pharmacitical, Jet Pharma, and Apex that have their
own product under the same product line. Beside that medical company, Unimed also
compete with traditional medicine. People nowadays focusing on health more than other
convenient product .

Customer loyalty also become one of the reason why customer choose the product and never
try the new product introduced . This becomes the competitors strength .

That company became a nearest competitor because of market share compete for the same
product. Each company try to get their own loyal customer by giving them variety offer such
as discount, bonus pack of product, gift and special services for delivery and returnable.

The strength of unimed compared with competitor is the price itself, and the long term using
a medicine from manufactured to expiry date. Unimed also have their specific medical
representative post at each location and area covered all the pharmacy and clinic under their
responsibility. Each medical representative always in action when customer need and Unimed
itself always ready with stock of product. Some medical company have a stock problem
especially during seasonable. For example; Nowadays, H1N1 become top fever that needs
some kind of specific medicine. As a medical company unimed are ready for any action.

Others strength is about one of antibiotics manufactured by unimed. This is the product
strength that Unimed can get potential market compete with company who sell the same
product. Antibiotics known as the sub-group of anti-infectives that are derived from bacterial
sources and are used to treat bacterial infections. It can action in only two days after taken,
compared with antibiotics from other medical company patient need to eat for at least 5 days
and till the medicine finish. In this situation sales force are very easy to talk about this
medicine strength compared to other.

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Sales Update August 2009

29/08/2009

Region Wise Sales Total


Central Region 253499.74
East Cost Region 115955.16
South Region 138787.22
North Region 142478.83
SAB/SAR (East Malaysia) 72594.30
Hospital Sales 4062.50
Direct 660187.66
Grand Total 1387565.41

REGION TARGET QUOTA


CENTRAL
Sales Manager 20,000
Medical representative 1 50,000
Medical representative 2 50,000 240,000.
Medical representative 3 40,000
Medical representative 4 40,000
Medical representative 5 40,000
EAST COST
Sales Manager 60,000 100,000.
Medical representative 1 40,000
SOUTH
Sales Manager 20,000
Medical representative 1 40,000 150,000
Medical representative 2 40,000
Medical representative 3 50,000
NORTH
Sales Manager 20,000
Medical representative 1 50,000 150,000
Medical representative 2 40,000
Medical representative 3 40,000
EAST MALAYSIA
Sales Manager 60,000 110,000.

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Medical representative 1 50,000

Market Share

23%

Unimed
Other medical Company

77%

Other medical company such as pharmaniaga, jetpharrma, Ranbaxy, Pahang pharmacy

CHAPTER 3

SWOT Analysis

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The following SWOT analysis captures the key strength and weaknesses within the company,
and describes the opportunities and threats facing the product that produce.

Strengths

 A current business-environment-appropriate business model.


 Excellent staff who are highly trained and very customer attentive.
 Great prices.
 The ability to scale rapidly for the mail order side of the business.
 Government intervention/regulation into medicine is possible.

Weaknesses

 Unimed product same with other competitor product.


 Very minimum capital to support all sales force expenses.
 Material cannot keep fulfill the processing.
 Not enough stock in certain time to complete order in large number
 Sales force cannot achieve the high quotas too small territories or place and a very
low skills.

Opportunities

 The constant growth of the number of people taking medication.


 Widespread advertising help unimed to enter international market and get space in
market share

Threats

 The entry into the mail order market by an established company.


 Regulatory legislation that curtails the mail order medicine industry.
 Unimed enter the market after the competitor already existing

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Sales quota

Unimed set a quotas for the sales people to meet. Each salespeople are given target number of
sales to be achieve. From the target unimed can analyze the problem of why, when, what, are
the problem that the salespeople facing in doing a sales. It’s maybe because of the weakness

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from company itself, quotas too high, too small territory/place or low skill of salespeople.
Unimed using sales quotas to control the sales effort. For example;

To provide Incentive – This is one of the most obvious purpose of the sales quota, that is to
provide incentive for reaching a goal. This goal may be measured in term of dollar volume of
sales, physical units, contribution to profit, decrease expenses display put up, new account
opened, ect.

Quotas motivate sales personnel, distributive outlets, and other engaged in the sales operation
to achieve assigned performance level. Some companies use quotas solely for inspirational
purpose based on what they think individual can be inspired to achieve sales personnel should
feel that they must reach assigned quotas, and they should be confident that management will
recognize their achievements. For maximum effectiveness in motivating desired
performance, quotas cannot be based solely on judgment or sales potentials. Quotas should
not be too high or too low in order to encourage individual to response.

Basis for compensation – For many companies the quota is the sales level at which the
salesperson’s salary has been covered. If a salesperson performs more than minimum
requirement, he/she will receive incentive such as commission or bonus. If quota are used as
a basis for compensation, they should be realistically obtainable, otherwise salespeople
turnover is going to be high.

Sales people and expense control – some companies use quotas to control expenses. For
example, company reimburse sales expenses only up to a certain percentages of sales volume.
Others set dollar expense and appraise sales personnel, in parts by their success in staying
within assigned expense limits.

Evaluating performance – Quotas are often used as benchmark in comparing performance


(which sales personnel, other unit of the sales organization, or distributive outlets are doing
average, below average or above average). However it should be noted that sales
performance vary product by product, territory by territory and salesperson by salesperson.

Method of company in organizing the salespeople. The incremental method

This method is useful for examining the major cost of selling – the salespeople. It suggest
that salespeople be added to selling team , up to the point at which the cost of hiring one more
salesperson equals the marginal revenue from that salesperson’s efforts. Any additional

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salesperson hired beyond this point would actually result in declining profit as the marginal
(additional)costs of that salesperson would exceed the marginal revenue that salesperson
could generate.

b) Territory design

East cost – Kelantan, Terengganu, and Pahang

Southern Region – Johor, Melaka, Negeri Sembilan

Central – Selangor

Northern Region – Perak, Penang, Kedah, Perlis

East Malaysia – Sabah, Sarawak

c) Benefit and company compensation plan

Normally all company that have salesperson will give benefit to them, when they achieve
their goals and make the company statistic increase. Bonus also depends on sales target. For
example their sales RM40,000.00 and the company will give the bonus around
RM400.00.Beside that company also provide other incentive, for example the sales force
must go outstation, and company will provide incentive for accommodation, petrol and
others.

Benefits & Compensation

Unimed's compensation and benefit plans work together to create a Total Rewards Program 
for our employees that is among the best in our industry.  As a global organization, we work
hard to achieve our goal of providing flexible and competitive compensation and benefits
packages in each local market in which we operate.  Our goal is to exceed average market
practices for our performers.

Our rewards strategy strongly adheres to our "pay for performance" philosophy by measuring
results and directly relating rewards to accomplishments.  We utilize a formal performance

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appraisal process which identifies goals and achievements that drive results and links
individual performance to company results.

The following provides an overview of our Malaysian benefit plans and arrangements.  If you
are seeking a position in any other country where we do business, our local staff can provide
you with a similar overview of the benefit plans for that country if you are invited for an
interview.

Unimed's flexible benefits program - "UnimedChoice" - gives you the opportunity to choose
the health care plans and financial protection to benefit you and your family during your
career at Unimed.  As your needs change, your benefits may change too.  UnimedChoice
benefits begin on the first month following 30 days of eligible service.  Unimed pays most of
the cost for your UnimedChoice benefits and you can often use tax-effective pre-tax to pay
your share of the cost.

Medical

The plans, including different PPO network plans and health maintenance organizations


(HMOs), are also available in many Unimed locations.  Your eligible dependents (your
spouse or qualifying domestic partner and children) may also be enrolled for medical
coverage when you are enrolled.

Dental

The dental plan encourages preventive care and covers most dental services.  Two point-of-
service options are offered in all Unimed locations with the option of a dental maintenance
organization (DHMO).  When you use network providers you can reduce your out-of-pocket
costs.  When enrolled in a point-of-service coverage option, you can obtain your dental care
from any dentist you wish and still have coverage.  Your eligible dependents (your spouse or
qualifying domestic partner and children) can be enrolled for dental coverage when you are
enrolled.

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Disability Coverage

After three months of service, Unimed's sick pay benefits, short-term disability and long-term
disability plans may continue your salary - in full or in part - if you are unable to work
because of illness or injury.

 Employee Life Insurance

You may choose from seven coverage amounts: RM100,000 or from one-half your annual
salary to five times your annual salary.  Unimed pays the full cost for term life insurance
equal to your full annual salary.  Non-smokers receive a discounted rate.

Dependent Life Insurance

You may purchase term life insurance for your spouse or qualifying domestic partner and/or
children.

Personal Accident Insurance

You may choose among several options from (RM100,000 to RM700,000 - coverage above
RM700,000 is also limited to ten times your annual salary) that will cover you and your
eligible dependents in the event of accidental death or certain serious injuries.

  

Financial Planning

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The financial planning option provides resources to help you meet your financial goals.  A
well-designed financial planning website and phone access to professional financial
counselors with expertise in Unimed's benefits will help you establish your personalized plan.

Business Travel Accident Insurance

In addition to the UnimedChoice benefits, Unimed automatically provides you with insurance
that will pay up to five times your annual salary (with a RM1,000,000 maximum) should you
be injured or die while traveling on company business.

d) Measuring and evaluating the sales performance.

Every company evaluates sales performance. It is a necessary part of sales compensation,


quota assignment and sales team performance. Data gathering, analysis and interpretation are
all vital. But, there's more to it than that...much more. You need to be thinking of individual
performance, aggregate team performance, and how well your sales strategy is performing.

"Past performance is the best predictor


of future performance."

One of the most important responsibilities of sales managers is to evaluate the performance of
the sales personnel. The performance appraisal period can become one of those times that a
salesperson dreads, unless the appraisal is effectively conducted. Ineffective performance
appraisal tends to become a time-consuming and unpleasant activity for the sales manager as
well as the sales personnel.

The factors affecting sales peoples' performance are many. Some of these are beyond the
control of the individual, while some can be modified. Aspects like motivation, skill-set, job
satisfaction, role perception, personal factors like age, sex, height, etc; the ego drive, and
empathy towards the customers are inherent in the individual salesperson. Environmental and
organizational factors, along with the different functions of sales management come under
external factors. It is difficult for the sales manager to predict the influence of the external

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factors on the performance of the sales force.

To measure performance, it is necessary for the sales manager to put in place a performance
evaluation procedure. A proper evaluation process ensures that the organization is well
managed. It also provides the sales personnel with information on their performance and
gives recommendations for further improvement. Performance evaluation can also help in
improving the relationships between the sales force and superiors by minimizing suspicion
and improving interaction. The performance evaluation process generally involves five steps.
The first step is to determine the factors that affect the performance of the sales force. The
next step involves the selection of criteria that will be used to evaluate the performance. Step
three involves establishing performance standards that can be used as a basis to compare the
performance of the sales force. Step four involves monitoring actual performance. The last
step is to review and provide feedback to the sales personnel.

The purpose of conducting performance evaluation is to crosscheck whether the sales force
activities are in alignment with organizational objectives. It also helps monitor the sales force
activities and provide remedial action, if required. Performance evaluation also helps to
prepare a future action plan for the sales personnel and fulfill the organizational objectives. It
exerts an influence on the mode of compensation, fixing of sales quotas, and decisions on the
transfer or removal of the salesperson from the organization. In most organizations, it is the
immediate superior or the sales manager who conducts the performance appraisal. Sometimes
a team of people including the personnel manager and the department head, along with the
sales manager, appraise the sales personnel. The timing of appraisal also varies for different
organizations. It depends on the complexity of the sales plan, the costs involved, and the
current objectives of the organization. Periodic performance appraisal is necessary to identify
any discrepancies in the overall sales plan and correct them.

The sales manager or the concerned person involved in appraising the sales force can take the
help of quantitative or qualitative criteria. These are also termed the behavior and outcome
components. Qualitative criteria include sales skills, territory management skills, personality
traits, etc. The quantitative factors include the sales volume, average calls per day, sales
orders, etc. Quantitative criteria are those aspects that measure the sales performance in terms
of the end results whereas qualitative criteria involve all those activities that the sale person
does to achieve the end results.
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The sales manager must ensure that the performance standards are set to compare and
evaluate the actual performance of the sales force. The standards vary from industry to
industry and are different for different job profiles. Performance standards come under
quantitative standards, qualitative standards, time-based standards, or cost-based standards.
All the sales force activities can be segregated into one of these four categories and compared
with the base standard.

Many methods of performance evaluation have been developed over the years. Yet, there is
no single method that can be considered ideal for all organizations. Some of the commonly
used methods are essays, rating scales, rankings, management by objectives and behaviorally-
anchored rating scales. Several modern methods like critical incident appraisal, work-
standards method, family of measures, etc., have been developed to suit variations and other
requirements. Finally, regular monitoring and review of the sales force activities is also
necessary to ensure that the organizational activities are aligned to the sales plan.

CHAPTER 4

CONCLUSION

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Training and developing

Training and developing not only suitable for new candidates. But, it also important to
existing sales force to improve their performance as a brain wash. Sometimes charges of
competitors, customer and technology need a sales force to change their skills. So that, sales
force can work followed the environment changes with excellent. The result of customer and
competitor analysis all around the territories designed can be shared when training session
work on. Several reason why training is important, that is:

 To decrease turnover

 Increase Sales

 Enhance customer relationship

 To improve skill

 To get latest information

 Decrease cost

CHAPTER 5

Recommendation

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In doing sales, company have to measure their sales force are given a comfortable situation to
maintain and improve their sales performance. There are a few suggestion to Unimed Sdn.
Bhd to:

 Sales force are given compensation and benefit due to their effort. The sales manager
and others top management know the way to appreciate them. Sales manager joint to
analyze what are their problem in doing sales and give a support to them in way to
find the key problem.
 The company should understand sales force own problem especially in getting a new
customer for the company. As a medical representative, Unimed should already know
the percentage of supporting customer and power of buyer. The problem to covered
all of private clinic and pharmacy are very difficult to only 2 sales force in a very
large territories. Company have to intelligent in setting a territory region and sales
target for each medical representative.

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