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SecB Grp1 B2B Dendrite

Dendrite International is a leading software supplier to the pharmaceutical industry that started in 1985. It has a presence in 11 countries with 15,000 salespeople across 40 companies. However, changing market conditions like increased healthcare costs and centralized buying are reducing the number of sales reps needed. The document analyzes Dendrite's customers, competition, and available alternatives to expand into new markets. It recommends Dendrite expand into other vertical areas within pharmaceutical firms like marketing and customer service to leverage their expertise and customizable software systems.

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Hrangbung Darthang
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151 views10 pages

SecB Grp1 B2B Dendrite

Dendrite International is a leading software supplier to the pharmaceutical industry that started in 1985. It has a presence in 11 countries with 15,000 salespeople across 40 companies. However, changing market conditions like increased healthcare costs and centralized buying are reducing the number of sales reps needed. The document analyzes Dendrite's customers, competition, and available alternatives to expand into new markets. It recommends Dendrite expand into other vertical areas within pharmaceutical firms like marketing and customer service to leverage their expertise and customizable software systems.

Uploaded by

Hrangbung Darthang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Business to Business Marketing

Dendrite International

Presentation by :
Group No-1

Hrangbung Darthang Anal


Sashank Dev
Mohd farhan
Sagar Rathee
Shray Yadav
Neha sheenam
Context

 Started in 1985 to develop software to assist with call planning and


reporting task.

 Decided from the outset to be a global supplier of both software and


service.

 Dendrite International is one of the world’s leading software supplier to


Pharmaceutical Industry.

 Presence of 15000 sales people in 40 companies in 11 countries, revenue


for 1993 $ 33 Million.

 As the market scenario is changing, Dendrite is looking at another way to


go to market.
Competition

 STI has strong presence in US(Sales of $ 48 Million)-40% share of installed


reps in US, but is encountering lengthy delays
 Walsh International , based in UK($ 100 Million sales)—main business sale
and analysis of industry data-have rigid system.
 Pharma system is a new company and small company with potential
 Cornet (13% Pharma rep)-mainly based on two large firms-had to develop
product service package.
 Other vendors offering stand alone software package for $ 100-400 / per
unit as compared to $ 300 -2000/unit for Dendrite
 Dendrite offered much higher level of service and product flexibility
 Dendrite currently only supplier with product in Japanese Kanji language.
CUSTOMERS
U.S.( about 30% Pharma sales)
 Largest sales force-500 to 3000 rep/firm
 Calling frequency-every four to six weeks
 Higher level of monitoring requirement
 Less price sensitive
Europe (about 32% Pharma sales)
 sale force of generally 100-200 reps
 Calling frequency once a year
 Government funding is large and presence of managed care organizations
 Cost sensitive
Japan(about 18% Pharma sales)
 Prescription and dispensing takes place simultaneously
 Social selling very important
 Prices have to be negotiated with individual physicians.
 Tracking expenses is a key task
Market Developments
U.S.
 Health care costs have gone over $ 900 billion.
 Coming up of managed care organizations.
 More centralized buying and formularies to lower costs.
 Activities of sales force to drop from 250000-300000 physicians to 35000
committees.
Europe
 Imposition of price control on drugs.
 Imposition on reimbursement regulations, More centralized buying.
 Activities of sales force to drop further.
Japan
 Fixed price invoicing mandated and whole seller rebating abolished.
 Imposition on reimbursement regulations.
 Movement towards separation of prescribing and dispensing
 More reps may be required now .
Implications of changing market

 Better account management required instead of better system design.


 Change in focus from strategic from tactical.
 Contacts should grow from beyond Information systems, sales
administrations to client functions, client customers and board of
directors.
 Less sales force required in US and Europe.
 More sales force requirement in Japan.
 Percent of Reps automated in Europe and Japan are less as compared to
US-scope of automation huge.(Exhibit 4)
 Dendrite penetration in US market is less. (Exhibit 4)
Available Alternatives

 Expand into other vertical markets


 Expand into other vertical areas within pharma firms
 Focus on sales applications and product enhancements
Evaluation of Alternatives
Recommendations

 We would recommend to expand into other vertical


areas within pharmaceutical firms
 It will be easier for sales team to close deals
 Investment is significantly low
 Even though the competition with multinational firms is
high , close competitors don’t have easily customizable
and optimized system to provide cross functional value
for clients
 They can hire operation manager to manage efficiency
of day-to-dayoperations

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