ASCLEPIUS Consulting

Group 7
C Abhilash Reddy (E044)
Prateek Vadodaria (E053)
Yash Sawant (E057)
Uday Kumar (E061)
Sachin Sanghvi (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.
• Closing the sale
• Implementation/ Follow-up
• Needs Identification
• Presentation
• Handling Objections
• Prospecting
• Pre-approach
• Approach
The 8 step sales process can be stated as:
 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
- Doesn’t 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
- 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
Cons
- 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 - Most expensive to operate

- Expertise developed in limited number - Duplication of sales calls to clients
of products - Reporting to multiple managers will
- Salespeople becomes customer create confusion and sales will suffer
expertise
 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

Given

Costs/annum Avg Deal Size of Reseller 5,00,000

No of Warm leads/ year 20

Fixed

Costs of Software conversion to business

10,00,000 Let 10%

Total R&D Exp Deals/reseller/year 2

25,00,000 Avg Deal Size of Inhouse Sales Rep 10,00,000

Total Other Expenditure Deals per Quarter expectd 1

50,00,000 Deal Value/Reseller/year 10,00,000

Total quarters in a year 4

Total Fixed Cost 85,00,000

Deal per year per sales rep 40,00,000

Variable

In House Resellers

Recruitment Costs Training

42,000 50,000

Empanelment
Training 50,000 50,000

Salary Variable Comission- % of Sale 50000

5,00,000 5%

Reseller Support Incentive - % of Sale 10000

Other Overheads 2,00,000 1%
 Calculations

Effective Market Coverage

Market Data

Types Of Hospital To Realize Market Potential

Single Speciality Multi Speciality Nursing Homes Charity Hospital Corporate Chains Day Care Centres
No of Beds

614 245 1155 95 19 2235

30 to 100 Reseller

345 271 415 178 9 275 Avg Deal Size/ year

100 to 300 10,00,000

50 75 25 25 5 45
300+ Total no of Resellers 4777

1009 591 1595 298 33 2555

6081

Average Deal Size

Types Of Hospital

Single Speciality Multi Speciality Nursing Homes Charity Hospital Corporate Chains Day Care Centres
No of Beds

30 to 100 5,00,000 10,00,000 2,00,000 10,00,000 20,00,000 2,00,000 Inhouse Sales Rep

Avg Deal Size/ year 4000000

100 to 300 20,00,000 30,00,000 7,00,000 20,00,000 30,00,000 5,00,000

300+ 30,00,000 50,00,000 10,00,000 30,00,000 50,00,000 1,00,00,000 Total Required 1194.25

1195
Thank You