project report of summer internship program
DESCRIPTION
A CRM PROJECT AND MANY MORE ON VETENIARY INDUSTRYTRANSCRIPT
A
PROJECT REPORT
ON
1. CUSTOMER RELATIONSHIP MANAGEMENT MODULE FOR2000 KOMs.
2. SECONDARY SALES MONITORING SYSTEM.
3. PRODUCT MARKETING PLANS MONITORING SYSTEM.
FOR
Submitted By:
Indranath ChatterjeeRoll No.:
06 - JI -125Under the Guidance of:
Mr. Satwinder Singh GrewalProduct Manager [Livestock]
Vetnex, RFCL LimitedAnd
Mr. Rajneesh BhatiaProduct Manager [Livestock]
Vetnex, RFCL Limited
Institute of Marketing & Management
MARKETING TOWER, B-11, QUTAB INSTITUTIONAL AREA, NEW DELHI 110016Phones: 26520892-6, 26520900 Email: [email protected] Website:
www.immindia.com
Undertaking
This is hereby stated that this report is very original inevery sense of the term and it carries a sense of
creditability and strength and that I have taken noshortcuts and remained both rigorous and scholarly.
I have tried my best to keep this work as watertight andsqueaky clean as possible.
It may be further stated here that in the preparation of thisreport and projects undertaken some aid has been taken
from a pool of professionally shared knowledge, a detaileddescription of which has been mentioned in the
bibliography section of this report.
Dated _27.07.07___________New Delhi. Signature
Indranath Chatterjee
Acknowledgement
First of all I would like to place on record my gratitude toall concerned respectable executives of Vetnex [SBU] ofRFCL limited forgiving me this opportunity of internship
which has been a pure learning experience and which haveenlightened my knowledge and skills about the animal
health care [livestock] industry.
I would also like to express my gratitude towards theInstitute Of Marketing & Management for giving me the
opportunity to undergo Summer internship atVetnex,RFCL limited
I am specially thankful to my mentors Sir Satwinder singhGrewal and Rajneesh Bhatia for guidance and cooperationduring this internship and infact without their navigational
assistance life would have been very difficult as far asstructuring the projects are concerned. I would be always
grateful to them for their help and support.
Lastly but not the least I would like to thank the HR deptfor inducting the module of internship programmes at
RFCL Limited without which I shouldn’t have ever learntwhat I had during my internship at Vetnex.
Executive Summary
The purpose of this report is to literally act as a window to the projectsundertaken as a part of the Summer Internship with the OrganizationVetnex (SBU) RFCL Limited that aims to define the breadth depth andscope of the various thinking processes and mechanics that actuallysynthesized the projects undertaken.The Objective of the projects that have been assigned as a part of theinternship is:
1> To develop & design a CRM Module for 2000 Key OpinionMakers for Livestock Business.
2> To develop & design a Secondary sales Monitoring System.
3> To develop & design a Monitoring system for Productmarketing plans.
Each of the above mentioned objectives required a marketing surveyin order to diagnose the various parameters that are infact essential totransform the project to a coherent body. This Survey aims to definethose essential parameters for the individual projects like the tastesand the preferences of the KOMs for the CRM model, the attitude ofthe Stockists regarding importance and benefits if secondary sales are
being monitored and so on. All these are being crystallized insynthesizing the projects.
It may be stated here that in case of animal health care industry theVetenarians and the paravetenarians are infact the real mover of theproduct in a sense that they actually design the decision makingprocess that goes into buying by the ultimate consumer and thereforethey are recognized as Key Opinion Makers. This survey of 213 vetsand paravets clearly stated their individual tastes and preferences andvarious other parameters and thereafter they are being segmented onthe basis of their business potential and these constituted the pathwayfor developing the customer relationship management module.As far as the Monitoring system for secondary sales is concerned thesurvey of 36 Stockists clearly demonstrated the perception and theattitude about the importance and benefits of monitoring secondarysales and at the same time it also investigated about the view and theamount of flexibility of the Stockists about updating the companyfrequently. However the survey results revealed an importantinterpretation that the role of vetenary sales executive (VSE) is verycrucial in this regard as he is someone who can facilitate themonitoring plan and also the Stockists attitude about it and thereforeaccordingly an orientation programme has been designed.
And as far a monitoring plan for product marketing plans is concerneda market survey is being conducted which assessed the performanceof the various companies in this regard and their monitoring ways anddevising the flaws associated with these systems thus structuring amonitoring plan and at the same time the report also interveneswhether both the push and pull strategy about the product marketingplans should be implemented correspondingly or not as becausedevising an monitoring plan involves certain parameters or thedynamics involved actually may better work if both are notimplemented correspondingly and infact the management logiccoupled with business sense also raises its queries against itsimplementation.
For the benefit of understanding and presenting this report in anorganized fashion this report has been organized into Various sectionswhere certain sections has been sub divided catering to need of properorganization of the report.
INDEX
1. Introduction…………………………………….. 22. Methodology of Research ……………………… 3
3. CRM Modulea) Introduction and Objective………………………5-6b) Segmentation of Vets and paravets……………... 7c) Survey Results for all Segments………………… 8-25
4. The CRM Model…………………………………… 26-27a) Steps involved in CRM Model………………….. 27- 28b) Model Application………………………………. 28-30c) CRM Strategies for all Segments………………. 31-34
5. Secondary Sales Monitoring Systema) Introduction and Objective……………………….. 36-37b) Key findings Survey on Stockist……………….... 37-43c) Monitoring system ………………………………..44-46
6. An Orientation Programme for VSEs……………. 47-50
7. Product Marketing Plans Monitoring Systema) Introduction & objective …………………………. 52-53b) Survey results & analysis ………………………… 54-55
c) Monitoring system…………………………………...56-598. Appendices
a) Questionnaires …………………………………... 60-66b) CRM Model Application Excel sheets……………67-73
9. Limitation of the study………………………………………….74
10.Bibliography……………………………………………………75
Introduction
This report is being prepared as a part of the Summer InternshipProgram at Vetnex (SBU) RFCL. Ranked 4th in the Indian animalhealth industry, Vetnex offers an extensive product range coveringimportant therapeutic areas such as antimicrobials, anti-parasitics,NSAIDs and supportive therapy products, performance promotersincluding Nutritional, Antibacterial and Toxin Binders for Livestock,Poultry and Canines. Vetnex has long-standing marketing tie-ups withAlpharma, & CEVA Sante Animale of France.
The projects entrusted during the program are as follows:
1> to develop & design a CRM Module for 2000 Key Opinion Makers forLivestock Business.
2> to develop & design a Secondary sales Monitoring System.
3> to develop & design a Monitoring system for Product marketingplans
All these projects required the diagnostic ability of a market survey tointervene the certain dynamics involved.
The survey is being carried at the following places of the States ofPunjab, Haryana, and Uttar Pradesh.
Amritsar, Ludhiana, Moga, Bhatinda, Abhor, Muktsar, Kotkapura,Fazilka, Mansa, Rampura, Malerkotala, Barnala, Nabha, Maudmandi,Sriganganagar, Hanumangarh, Meerut, Bulandsehar, Aligarh, Agra,Sirsa, Fatehabad and Hisar.
It may be mentioned that duration of the survey was from 16th May to11th of June’2007 and Total number of respondents are as follows:
Total number of Vets and Paravets: 213
Total number of Stockists : 42
Total number of Retailers : 78
Total number of Respondents : 333Surveyed
Methodology of Research
The purpose of the market survey was to intervene the differentparameters and dynamics involved with the different projects whichserve as a foundation for the project to be structured upon. Therefore itwas very important to obtain the right information from the rightsource and efforts were taken to record all the data in a methodical waywhich can be compatible according to the required method of analysis. Accordingly different questionnaires were prepared in line with thedifferent projects and each question serves a particular purpose. Threequestionnaires were prepared [the questionnaires are attached in theappendices section of the report] which were meant for different targetedaudience. The source of data was the primary data only which were collected andinterpretated from the cross section of the different sources ofinformation. The sources of information for the project of CRM were theVets and Paravets. A sample size of minimum 200 was decided to targetupon from the different places of States of Punjab, Harayana, and UttarPradesh. However for the purpose of Secondary sales project a samplesize of 35 was decided and the source of information were the Stockistsfrom the different places. And for the product marketing plans thetarget sample size was 50 covering different places of the state ofPunjab.
Customer Relationship Management [CRM]Module for 2000 KOMs
Customer Relationship Management [CRM]
Introduction:
CRM is a business approach that seeks to create, develop and enhancerelationships with carefully targeted customers in order to improvecustomer value and corporate profitability and thereby maximizeshareholder value.
Infact the emergence of CRM as a management approach is aconsequence to the fact that Nowadays customers represent a movingtarget and even the most established market leaders can be oustedQuickly from their dominant positions. It is no longer enough to offerexcellent products but the key differentiator is exceptional serviceprovided on a consistent and distinctive basis. Competitive advantagecan therefore be gained by leveraging knowledge of customers’expectations, preferences and behaviour.
CRM is aimed at increasing the acquisition and retention of profitablecustomers by, respectively, initiating and improving relationships withthe customers.
Thus CRM approach holds significance for any corporate entity thatwants to flourish and hold the grip on the market as otherwise thecompany may suffer as customers of this century are moving targets.As such it holds key importance in Veterinary Livestock business. As incase veterinary business the ultimate mover of the product are theVeterinarians and the Para veterinarians who infact design thepurchase decision making process and therefore they are rightlyregarded as Key Opinion Makers [KOMs].Therefore it is very importantto design and develop a CRM module for the KOMs from the businessprospective that aims to create an ongoing dialogue with KOMs andand manage and utilize the information and insights obtained at everyCustomer[KOMs] touch point thereby Acquiring and Retaining theProfitable KOMs by respectably initiating and developing long termrelationship with them so as to increase the profitability of LivestockBusiness of Vetnex,RFCL Ltd
Objective for the CRM module:
Mechanism to evaluate Potential KOMs. To develop integrated Database.
Assessing the need of Potential KOMs.
Ways to meet those needs.
Identify the softer elements.
Devising a way to Retain and grow with those KOMs.
Moving further aheadSatisfaction Delightment LOYALITY
To develop Strategy and action plan on qtr. & annual basis.
In order to design a CRM module that fulfills the above mentionedobjectives the need and guidance of a market survey is being mostfelt. Accordingly a market survey was carried on with the primeobjective of building a framework that satisfies that abovementioned objectives and also carves a way for the strategies ofCustomer Relationship Management.
The survey was carried from16th May to 11th June ‘2007 and 213 vets and paravets wereinterviewed of the following places covering the states of Punjab,Haryana and Uttar Pradesh.
Amritsar,Ludhiana,Moga,Bhatinda,Abhor,Muktsar,Kotkapura,Fazilka,Mansa,Rampura,Malerkotala,Barnala,Nabha,Maudmandi,Sriganganagar Hanumangarh, Meerut, Bulandsehar, Aligarh, Agra, Sirsa, Fatehabad and Hisar
Survey results & Analysis
As it has been mentioned that the survey included 213 Vets andParavets but after the process of initial screening of the questionnaires202 questionnaires were selected for the final analysis. The entire datahas been worked upon properly with the help of excel spreadsheetsand the resultant analysis was built upon.
However in order business sense to the analysis and also to synthesizedifferent CRM strategies, the 202 Vets and the Paravets were furtherclassified or segmented on the basis of their individual businesspotential in the following manner:
Segment-A: - Most important segment dealing with maximum no. ofcases. They basically occupy higher position in the hierarchy andconsist of more qualified Vets and a very less no of Paravets. Thissegment act as a reference group for other segments particularlysegment-c.
Segment-B: - Although Potentiality on the basis of no. of cases is lessthen Segment-A, but they are equally important because they are theemerging group and consists of Vets and Paravets almost at equilibra.
Segment-C: - This segment consists of Vets and paravets who treat toa maximum of 10 cases per day. Their potentiality is less compared tothe seg A & B, but these group also consists of considerable no offresher’s and there holds the importance of this group.
Total Vets=202
Segment-A{No. of cases 15 & above}
Strength=107 Vets
Segment-B{No. of Cases 11-14}
Strength=63 Vets
Segment-C{No. of Cases=10 & less}
Strength=32 Vets
Survey Results for Segment AStrength=107
Most Preferred Company
M os tly P re fe re d c om pa ny
Pf iz e r21% Sar ab h a i
3%
V e tn e x20%
V ir b ac25%
W o ck h ar d t1%
L o ca lC o m p an ie s
5%In te r ve t7%
In tas18%
Objective: - Here objective was to find out the which companies are being most preferred by the Vets and which one are leastpreferred and thus the market share of company would be exhibited.
Result: - As is shown in the fig. the major Market share (25%) isenjoyed by Virbac followed by Pfizer (21%), Vetnex (20%) and Intas(18%). These are the major players and rest of the market is dividedbetween Intervet, Sarabhai, Wockhardt and Local companies.
Criteria for Preference
C r i te r i a o f P r e fe r n c e
A V A IL A B IL IT Y2 %
Q U A L IT Y6 7 %
S ER V IC E2 4 %
N EW P R O D U C T6 %
P R IC E1 %
Objective: - The objective here was to find out the most importantcriteria which Vets generally take into consideration before prescribinga particular product i.e. the medicine
Result: - As is evident from the fig. the criterion which is must isindeed Quality. The core benefit of any product related to veterinaryand Pharma are Results. If any product not capable of giving resultscustomer never use those products. If the perceived quality of products of two companies issimilar in the minds of Customers then they look for Services andother criteria’s.In this segment most preferred criteria is Quality (67%) followed byServices (24%), Innovative products (6%) Availability (2%) and Price(1%).
Change in Company Preference
Cha nge in Bra ndNO
21%
YES79%
Objective: - The objective here was to find out the Loyalty factoramong the Vets.Results: - As is evident in fig. the Loyalty among Vets and Paravets inLivestock Business is very less. 79% of them have changed theirBrand preference and only 21% stick to the same Brand. From thispie the importance of CRM for the Companies is quite clear. Loyalty is like inertia unless and until some external force isapplied, it remains as it is, keeping this fact in view Companies canprovide exceptional services and quality products to build Loyalty andattract customers of other Companies.
Previous Company
PREVIOUS COMPANY
INTAS10%
AUR VET1%
INTERVET6%
WO CKHARDT6%
LO CALCO MPANY
2%
SARABHAI42%
VIRBAC12%
VETNEX5%
PFIZER16%
Objective: - The objective here was to find the proportion ofCompanies from which the Vets have changed their preference andultimately to find out those factors which cause dissatisfaction amongVets. In order to build long term relationship with these vets nocompany can afford to compromise on those factors.
Result: - 42% of the Vets have changed their preference fromSarabhai to some other Company Intas (10%) Pfizer (16%) Virbac(12%) have the major share of pie.
Reason for Change
Reason for Change
NEW PRODUCTS18%
AVAILABILITY4%
ECONOMIC PRICE7%
BETTER QUALITY24%
SERVICE47%
Objective: - The objective was to find out those factors the absence ofwhich can create dissatisfaction among Vets and they switch to some
other Brands. No company can even think of compromising on thesefactors.Results: - Absence of Exceptional Services (47%), Better Quality(24%) are the major reasons of dissatisfaction among the Vetsbecause of which they have changed their preference from onecompany to another.
Customer satisfaction index
Customer Satisfaction Index(CSI)
020406080
100120140160
VIRBAC
VETNEXIN
TAS
INTERVET
PFIZER
OTHERS
Company Name
CS S
cale
Satisfaction LevelSatisfaction ScaleNo. of Vets
Objective: - The objective here was to find out the satisfaction levelamong the Vets with the Companies which they currently prefer.Results: - Here a Customer satisfaction scale was built by adding thetotal no. of points (5 for each vet) and this scale is then compared withthe points a particular company has secured. As is shown in fig. thesatisfaction level with almost all the companies is up to the mark.Improvement Factor
IM R O V E M E N T FA C T O R
A V A IL A B IL IT Y4 %C O S T
C O M P ET IT IV EN ES1 1 %
N EW P R O D U C T S2 8 % Q U A L IT Y
2 5 %
S ER V IC E3 2 %
Objective: - The objective here was to find out that what accordingto Vets are the areas of improvement upon which Companies
should work so as to change their Satisfaction level to Delightmentand pull them up in the Loyalty ladder.
Result: - 32% of Vets are expecting exceptional services, 25% gofor Quality.28% new products, 11% of them asking for Costcompetitiveness.
Inputs
ATTRACTIVE INPUTSOTHERS
4%NONE7%
COMPLIMENTS37%
FREE SAMPLES52%
Objective: - In Livestock business the major part of services renderedto Vets include the Inputs given to them by the Company. Thereforethe Idea here was to find out that which Input Vets consider most.Result: - The major share of pie is enjoyed by free samples (52%)followed by Compliments (37%) others (4%) and 7% of them saidnothing is attractive.
Source of Information
SOURCE OF KNOWLEDGE
WORKSHOP7%ANY OTHER
3%
JOURNALS27%
PRODUCT CAT32%
SEMINAR31%
Objective: - The objective here was again to gauge the service needsof Vets that what exactly they seek from companies when it comes tothe Source of knowledge to update themselves regarding the newproducts of Companies and other similar information.Result: - Here Seminars & Product catalogues shared the majorportion of pie. Veterinary journals also hold a significant share in thiscategory.
Softer Elements
SOFTER ELEMENTS
FAME2%
RECOGNITION51%
MONEY2%
PERSONALSATISFACTION
45%
Objective: - The fact that behavioral sciences helps marketers inestablishing strong Relations with Customers, objective here was tofind out that which softer elements matters most for the Vets.Result: - Personal satisfaction of treating deaf & dumb animals (45%)and the Recognition given to vets by society and companies are twoelements cover almost all portion of pie.Brand recall
BRAND RECALLS
29
20
38
21
40
33
52
0 10 20 30 40 50 60
A moxirum forte
Enroc in
A lbomar
Butox
Neoprofen
A grimin chilated
Hiv it
No. of Re s ponde nt
Objective: - To find out that which trade names the Vets weregenerally recalling most and are at the top of their mind.
Results: - As is shown in fig. the trade names like Hivit (multi-vitamin), Neoprofen (NSAID), Agrimin chilated (mineral mixture) arethe major trade names which were top of the mind of Vets.
Survey Results for Segment BStrength=63 vets
Most Preferred Company
Company PreferenceWOCHARDT
2%LOCAL COMPANIES
8%
INTERVET13%
INTAS10%
PFIZER16%
SARABHAI0%
VETNEX17%
VIRBAC34%
Objective: - To find out the Market competition, which companies aremost being preferred by the Vets and which one are least preferred.Result: - As is shown in the fig. the major Market share (34%) isenjoyed by Virbac followed by Pfizer (16%), Vetnex (17%) and Intas(10%). These are the major players and rest of the market is dividedbetween Intervet, Sarabhai, Wockhardt and Local companies.
Criteria for Preference
Pre fe re nc e Crite r ia
SERV IC E19%
NEW PRODUC T10% PRIC E
2%
QUA L IT Y69%
Objective: - The objective here was to find out the most importantcriteria which Vets generally take into consideration before prescribinga particular product.Result: - In this segment most preferred criteria is Quality (69%)followed by Services (19%), Innovative products (10%) and Price(2%).
Change in Company Preference
Change in Preference
NO29%
YES71%
Objective: - The objective here was to find out the Loyalty factoramong the Vets.Results: - The loyalty factor among the Vets of this segment is missingagain. 71% of them have changed their preference from previouscompany to some other one and only 29% of them are Loyal.Previous Company
Previous Company
VIRBAC2%
WOCKHARDT7%INTERVET
5%
LOCAL COMPANY2%
SARABHAI49%
INTAS12%
PFIZER21%
VETNEX2%
Objective: - The objective here was to find the proportion ofCompanies from which the Vets have changed their preference andultimately to find out those factors which cause dissatisfaction amongVets.Result: - 49% of the Vets have changed their preference fromSarabhai to some other Company Intas (10%) Pfizer (21%) Intas(12%) have the major share of pie.Reason for Change
Reason for change
BETTER QUALITY35%
NEW PRODUCTS10%
SERVICE55%
Objective: - The objective was to find out those factors the absence ofwhich can create dissatisfaction among Vets and they switch to someother Brands. No company can even think of compromising on thesefactors.Results: - Absence of Exceptional Services (55%), Better Quality(35%) and new products (10%) are the major reasons ofdissatisfaction among the Vets.Customer satisfaction index
Customer Satisfaction Index
0
20
40
60
80
100
120
VIRBAC VETNEX INTAS INTERVET PFIZER OTHERS
Company Name
CS
Sca
le Sa tisfactionLevelSatisfactionScaleNo. of Vets
Objective: - The objective here was to find out the satisfaction levelamong the Vets with the Companies which they currently prefer.Result: -As is shown in fig. the satisfaction level with almost all thecompanies is Satisfactory.
Improvement Factor
Improvement Factor
AVAILABILITY2%COST
COMPETITIVENES14%
NEW PRODUCTS24% BETTER QUALITY
25%
SERVICE35%
Objective: - To know what according to Vets are areas of improvementupon which Companies should work so as to change their Satisfactionlevel to Delightment.Result: - 35% of Vets are expecting exceptional services, 25% go forQuality.24% new products, 14% of them asking for Costcompetitiveness.Inputs
Attractive InputsOTHERS
8%NONE13%
COMPLIMENTS37%
FREE SAMPLES42%
Objective: - The Idea here was to find out that which Inputs given byCompanies are being consider most by the KOMs
Result: - Free samples (42%) followed by Compliments (37%) others(8%) and 13% of them said nothing is attractive. These inputs are themajor parts of services rendered by the companies.
Source of Information
Source of KnowledgeWORKSHOP
6%ANY OTHER3%
JOURNALS24%
PRODUCT CAT38%
SEMINAR29%
Objective: - To know what Vets exactly seek from companies when itcomes to their Source of knowledge.Result: - Product catalogue (38%), Seminar (29%), Journals (24%)and workshop (6%). In others category some of them were sayingthat companies should have these services available on internet.
Softer Elements
Softer Elements
FAME2%
RECOGNITION46%
MONEY2%
PERSONALSATISFACTION
50%
Objective: - The fact that behavioral sciences helps marketers inestablishing strong Relations with Customers, objective here was tofind out that which softer elements matters most for the Vets.Result: - Personal satisfaction of treating deaf & dumb animals (50%)and the Recognition (46%) given to vets by society and companies aretwo elements cover almost all portion of pie.Brand recall
Brand Recall
10
12
23
24
29
24
26
0 5 10 15 20 25 30 35
Amoxirum forte
Terramycin
Albomar
Butox
Neoprofen
Agrimin chilated
Hivit
No. of Respondent
Objective: - To find out that which trade names the Vets weregenerally recalling most and are at the top of their mind.Result: - As is shown in fig. the trade names like Hivit, Neoprofen, andBeutox are at the top of the customers mind.
Survey Results for Segment cStrength= 32 vets
Most Preferred Company
M o s tly Pr e fe r e d co m p an y
V IRBA C22%
V ET NEX25%PFIZ ER
19%
INT A S25%
L OC A LC OM PA NIES
3%INT ERV ET
6%
Objective: - To find out the Market competition, which companies aremost preferred by the Vets and which one are least preferred.Result: - As is shown in the fig. the major Market share (34%) isenjoyed by Intas and Vetnex (25%) each Virbac (22%). These are themajor players and rest of the market is divided between Intervet, andLocal companies.
Criteria for Preference
P re fe re nce Crite ria
NEW PRODUCT0 %
SERVICE1 6 %
PRICE1 3 %
QUALITY7 1 %
Objective: - The objective here was to find out the most importantcriteria which Vets generally take into consideration before prescribinga particular product.Result: - In this segment most preferred criteria is Quality (71%)followed by Services (16%), and Price (2%).
Change in Company Preference
Cha nge in Com pa ny
NO50%
YES50%
Objective: - The objective here was to find out the Loyalty factoramong the Vets.Results: - The loyalty factor among the Vets of this segment is betteras compared to previous two segments 50/50 is the proportion here.
Previous Company
Previous Company
WOCKHARDT6%INTERVET
6%
LOCAL COMPANY6%
SARABHAI31% INTAS
13%
PFIZER13%
VIRBAC19%
VETNEX6%
Objective: - The objective here was to find the proportion ofCompanies from which the Vets have changed their preference andultimately to find out those factors which cause dissatisfaction amongVets.Result: - 31% of the Vets have changed their preference fromSarabhai to some other Company. Virbac (19%) Pfizer (13%) and restof the pie is equally divided into Companies like Intervet, WockhardtVetnex and Local companies.
Reason for Change
R e a so n fo r C h a n g e
A V A IL A BIL IT Y6 %NEW P RO DUC T S
1 3 %
BET T ER Q UA L IT Y3 4 %
S ERV IC E4 7 %
Objective: - The objective was to find out those factors, the absence ofwhich can create dissatisfaction among Vets and they switch to someother Brands. No company can even think of compromising on thesefactors.Results: - Absence of Exceptional Services (47%), Better Quality(34%) and new products (13%) are the major reasons ofdissatisfaction among the Vets.
Customer satisfaction index
C ustom er S atisfaction Index
05
1015202530354045
V IRBAC
VETNEX
INTAS
INTERVET
PFIZER
OTHERS
Com pa ny Na m e
CS
Sca
le S atis fac tionLevelS atis fac tionS c aleNo. of V ets
Objective: - The objective here was to find out the satisfaction levelamong the Vets with the Companies which they currently prefer.
Result: -As is shown in fig. the satisfaction level with almost all thecompanies is Satisfactory.
Improvement Factor
Im p r o v e m e n t F a c t o rC O S T
C O M P ET IT IV ENES S2 6 %
NEW P RO DUC T S3 %
BET T ER Q UA L IT Y2 9 %
S ERV IC E4 2 %
Objective: - To know what according to Vets are areas of improvementupon which Companies should work so as to change their Satisfactionlevel to Delightment.Result: - 42% of Vets are expecting exceptional services, 29% go forQuality.3% new products, 26% of them asking for Costcompetitiveness.
Inputs
A ttra c tiv e In p u tNO NE3 1 %
FREES A M P L ES
5 6 %C O M P L IM ENS1 3 %
Objective: - The Idea here was to find out that which Inputs given byCompanies Vets consider most.Result: - Free samples (56%) followed by Compliments (13%) and13% of them said nothing is attractive. These inputs are the majorparts of services rendered by the companies.
Source of Information
Source of Know ledgeANY OTHER
13%
JOURNALS25%
PRODUCT CAT31%
SEM INAR31%
Objective: - To know what Vets exactly seek from companies when itcomes to their Source of knowledge.Result: - Product catalogue (31%), Seminar (31%), Journals (25%)and in others category some of them were saying that companiesshould have these services available on internet.
Softer Elements
Softer Elements FAM E6%
RECOGNITION16%
M ONEY6%
PERSONALSATISFACTION
72%
Objective: - The fact that behavioral sciences helps marketers inestablishing strong Relations with Customers, objective here was tofind out that which softer elements matters most for the Vets.
Result: - Personal satisfaction of treating deaf & dumb animals (72%)and the Recognition (16%) given to vets by society and Money andFame are sharing 6% each.
Brandrecall
B R A N D R E C A L L S
7
4
7
9
1 4
1 4
1 4
0 5 1 0 1 5
C e s ta n
R C F o rte
S u p ra z o le
H ite k
m e lo n e x
A g rim in c h ila te d
H ivit
N o . o f R e sp o n d e n t
Objective: - To find out that which trade names the Vets weregenerally recalling most and are at the top of their mind.Results: - As is shown in fig. the trade names like Hivit (multi-vitamin), Melonex, Hitek Agrimin chilated (mineral mixture) are themajor trade names which were top of the mind of Vets.
THE CRM MODEL
Product Interface Service Interface
Indirect Interface
Internal Data
External Data Base
Feed Back
Fig: Schematic presentation of the CRM modelThe CRM model acts as a joint combination circuit of Operational CRM
and Analytical CRM where each corresponds to one another and actsas a guide for each other.
CRM
Operational CRM
Analytical CRM
Customer Base
SUSPECTSCURRENT
CUSTOMERBASE
PROSPECT
Customer ProfitabilityAnalysis (CPA)
INTERFACE
DataBase
Operational CRM: The operational CRM basically consists of thoseparameters and strategies that consists of formation of the customerbase, their insights and information and the ways for managing themand ultimately utilizing them.I.e it confirms to the basic work of CRMmodule.
Analytical CRM: On the other hand an Analytical CRM basically triesto test the business potential of the customers or rather the membersof the Operational CRM and build a sense of hierarchy. Analytical CRMis been introduced so that we can frame different operationalstrategies for different Customers on the basis of their Profitabilitypotential. Analytical CRM works on customer profitability analysis sheet(CPA sheet). It is also known as Strategy regulator as operational CRMis regulated on the basis of feed back given by CPA guide.
“Steps Involved in CRM Model”
Step 1:-To understand the Customers
Since its imperative to first of all understand the customers beforeeven thinking of CRM. Therefore first step of CRM Model is to know theuniverse of Customers (Suspect, Prospect & Current customer base.)
Suspect-Those who may or may not be profitable for thecompany business in future.
Prospect-Someone who has yet to do business with thecompany.
Current-Those Customers with whom the company Deal
This step also includes the understanding of key parameters whichencourage them to prefer a particular company and key drivers oftheir Behavior. This understanding is particularly important for andprospects to bring them up in Loyalty ladder.
Step2:Segmentation
Feed Back
Segmentation is based upon two criteria. Potentiality Based {on the basis of no. of cases as already
discussed in the survey analysis.} Business Based- As because the ultimate aim of CRM is to
increase the share of Wallet it is very important for Companiesto find out the Business potentiality of a Customer.
Eg. If a Vet belongs to Segment A, treating maximum no. of cases andhave higher prescription value, but he is not prescribing companyproducts, despite of applying CRM strategies then the company shouldtreat him accordingly and on the other hand a vet belonging to thesegment B ,but is serving more business to the company should beaccordingly managed.
Step3: Interface Analysis
Interface
Product Interface
Service Interface
IndirectInterface
Segmentation
PotentialityBased
Business Based
Segment A{No. of cases 15
& above}
Segment B{No. of Cases 11-
14}
Segment C{No. of Cases
0-10}
CPAAnalysis
Interface- The relationship of a customer with a Company depends toa considerable extent on his experience with the Company. Thisexperience depends upon the different types of interfaces theCustomer had or will have in the future with the company. In livestockbusiness Vets generally have three major Interfaces with theCompany.
Product Interface:- Better quality, Economical prices, & ConsistentInnovations leads to a better Product Interface and ultimately helps ingaining customer Loyalty.
Service Interface: - Regular Visits of VSE (not less then competitors inany case.), Regular Sampling, &Innovative and personalizedCompliments are the essentials of better service Interface.
Indirect Interface; - Reference groups, Retailers and Stockist alsoindirectly helps in Image building of a Company through word of MouthMarketing. Thus Companies can use their Loyal Customers to increasetheir Relationship network.
Step4: Data Base
• Internal Database:-The data base which Company is capturingabout the Customer. This data base can be used effectively toincrease the Profitability from Customers.
• External Data Base: - What is going on in the market place-what are your competitors doing, How the needs and wants ofKOMs are changing.
The consistent collection and updation of data is very crucial forthe success of CRM strategies.
Model Application
To apply the CRM Model on operational level, seven excel worksheetshave been prepared. With the help of these worksheets necessaryinformation would be collected by Veterinary sales executive. AreaManagers then will send the analyzed report of this information toHeadquarters to frame effective CRM strategies.
Sheet-1: - This is an Introduction sheet which includes personalinformation of VSE who is going to collect the information, Businessdetails like HQ which he is covering, no. of KOMs, Stockist & Retailers
in that HQ. It also includes the no. of KOMs in different segmentsalong with the Vulnerable segment {A-}.
Vulnerable Segment {A-}: - This segment includes those Vets who arehighly potential as far as the no. of cases treating/day and prescriptionvalues are concerned but then not giving profitable business to theCompany despite of applying CRM strategies. Since companies canneither afford to drop these customers nor keep on adding service costover them, they need different kind of strategies. This sheet also includes the information about the sales figures,the Revenue targeted and generated on monthly bases.
Sheet-2: - This sheet is designed for the purpose of consistent creationand updation of internal data base of the Company. This sheet willhelp in collecting the overall information about a KOM like his personallikings so as to customize the service gifts more close to his desires.
Sheet-3: - The basic aim of this sheet is to find out the businesspotentiality of each and every Vet so that we can find out those 20%of the Vets who are giving us the 80% of the business. This sheet isdivided into two parts.
1. Personal Information.2. Business Information {Hospital address, CRM activities
performed, what activities competitors are performing.}The information regarding the Revenue generation capability of aVet would be drawn from the Retailers who are covering those Vets.The product wise sale details would be taken from Retailers andaccordingly Revenue generation capability of different Vets wouldbe calculated for different months.
Sheet-4: - This is the Customer profitability analysis sheet. It is alsodivided into two parts.
Customer activity. Profitability Analysis.
Customer activity includes no. of active customers at the beginning ofperiod in different segments. No. of Customers promoted (profitabilityincreased after CRM) and demoted (profitability remains same ordecreased), no. of new customers added and thus the activecustomers at the end of the period.
The profitability analysis teststhe total revenue generated per segment and also the cost of salesultimately the profit or loss per segment can be worked out. Thus itwill focus to the individual level where each member of the segment
contribution would be traced upon and accordingly strategies can bebuilt upon.
Sheet-5: - This sheet is to find out the top 10 product on the basis ofrevenue generated and top 20 customers also on the basis of revenuegenerated.
Sheet-6: - This sheet is to collect personal and Business informationfrom different Retailers.
Sheet-7: - This sheet is to collect personal and Business informationfrom different stockists.
CUSTOMER RELATIONSHIP MANAGEMENT STRATEGIES
Segment-A
Interface Strategies
1. Product Interface (Needs of Vets)
• Better Quality
• Competitive Price
• ProductInnovation.
• Their must not be any compromise with productquality as vets never compromise with results.
• Their should be some quotes on the productlabels from well recognized vets for good qualityimage.
• Vets should deliver some value proposition chartsso that they can be ensured about the valueaddition in the products.
• R&D details of companies should be provided tovets or combined visits of Vets should beorganized.
• Company should improve the efficiency &effectiveness of production units to bring costcompetitiveness and innovations in products.
2. Service Interface (Needs of Vets)
• VSE Visits.
• As quality is must in products, no. of visits (morethan competitors VSE) of Company’s VSE is mustin services.
• Compliments that serve to profession are widely
• Sampling &InnovativeCompliments.
• Addressing SofterElements.(Recognition, personalSatisfaction)
preferred by vets so compliments should beprofession oriented.
• Consistent free samples should be providedparticularly of new products so that vets can makea trial of new products.
• To address the softer elements like RecognitionCompany should organize Award ceremonies forVets.
• Videos on doctors during their field visits can alsobe shown to villagers.
3. Indirect InterfaceIndirect interfaceplays an importantrole in decisionmaking process of acustomer to preferyou over others.Indirect interfacestimulates the keydrivers of consumerbehavior.
• REFERAL GROUP {The group of Customerswhich can influence the buying decisions of otherCustomers}
Companies must encourage the referralMarketing. It not only helps in building brand Imagebut also helps in converting prospects intoCustomers.
• GET TOGETHER of Vets should be organized bythe Company so that Para vets and Vets candiscuss different aspects of their interest and caninfluence each others decisions to prefer aparticular Company.
These strategies must be guided by the CPA guide to ensure thesuccessful implementation.
Segment-B
Interface Strategies
1. Product Interface (Needs of Vets)
• Better Quality
• Competitive Price
• ProductInnovation
• Since perceived quality of the product againplays an important role in this segmentproduct detailing and product catalogue canhelp the Company.
• As because this Segment is more priceSensitive, Companies can provide pricecharts of different products to the Vets ofthis Segment.
• Company can’t afford any kind ofcompromise in product quality for thisSegment as well.
Segment-C
Interface Strategies
1. Product Interface(Needs of Vets)
• Better Quality
• No compromise with quality again.
• Because they are price sensitive, low pricedproducts should be targeted more.
• Company should improve the efficiency &effectiveness of production units to bringcost competitiveness and innovations inproducts.
2. Service Interface (Needs of Vets)
• VSE Visits.
• Sampling &personalizedCompliments.
• Addressing SofterElements.(Recognition, personalSatisfaction)
• For this segment again no. of visits of VSEare important to considerable extent.
• Individualized gifts like Shirts, watches,Shoes are more preferred among the Vets ofthis Segment.
• Wishes on Birthdays, Marriage Anniversariesetc. can successfully hit the softer elementsand helps in building Relationship bysatisfying the emotional needs of Costumers.
3. Indirect InterfaceIndirect interface playsan important role indecision making processof a customer to preferyou over others.Indirect interfacestimulates the keydrivers of consumerbehavior.
• As because of co-ordination with Retailersand Stockist, they can act as Referral groupsfor these Vets.
• Companies should put in the efforts tocapitalize the Benefits of word of mouthmarketing to influence the decision of theseVets as much as possible.
• Price Sensitive
• Availability
• InnovativeProducts
• Easily available products also give the betterproduct interface.
• New products can again be a tactic.
2. Service Interface (Needs of Vets)
• VSE Visits.
• Sampling &InnovativeCompliments.
• Addressing SofterElements.
• As because of their proximity to theInteriors of villages most of the competitorsdo not give frequent VSE visit service tothese vets but some of them have betterprescription value and they can be targetedto get a competitive edge.
• Compliments and gifts should be catering topersonal needs and service to profession.
3. Indirect InterfaceIndirect interface playsan important role indecision making processof a customer to preferyou over others.Indirect interfacestimulates the keydrivers of consumerbehavior.
• Loyal customers of segment-A can beReferral group to these vets.
• These vets have some association withRetailers also .Therefore retailer margin canalso influence the decision of these Vets.
Secondary Sales Monitoring System
COMPANY
C&FAGENT
RETAILER
STOCKIST
Final Customer
Primary Sales
Secondary SalesDispensing
Introduction:
As it is shown in the schematic presentation of the last page, thedistribution system in veterinary livestock business involves a gooddeal of planning i.e. the company appoints a C&F agent which arestrategically located across the nation and are separate legal entitiesand invest in creating warehouses to stock the companies goods. Nowthese agents sell these products to Stockists and invoice them in thename of the company which is known as Primary sales and the salesfrom the Stockists to the retailer is known as Secondary sales which isof vital importance as if secondaries are being properly monitored thenthe real pipeline information can be worked upon and the followingbenefits can be enjoyed leading to effective planning in business.
Benefits
Companies launching new products can exploit consumer data tolower their risks and quickly adopt those practices that boosttheir revenue.
Trade marketing expenditures can get more focused on drivingrevenue due to quicker visibility on its effectiveness.
More efficient finished goods management in the supply chainwill release capital for better utilization for all its participants.
Better control on oversupply or stock outs, leading to customersatisfaction and corresponding retention.
A more organized manufacturing plan that allows predictabilityto the companies as well as their suppliers.
Complete visibility of and control on movement of the field force.
But the information often inaccurate follows in sporadically thusfinished goods inventories get inflated because of slower consumptionor returns from distributors. Therefore the need of an effectivemonitoring system arises. However in the animal health care industrythis information is being collected by the VSE i.e. Veterinary SalesExecutive from the Stockists in a monthly manner in the form of stockupdates, but the problem area involved here is that first and foremostthe if the information on secondaries is being collected at such a longinterval [30 days] ,the benefits of proper planning of secondaries arenot being derived satisfactorily. Therefore the frequency of updationabout stocks need to increased.
Therefore in order to test all these parameters a market survey wasconducted which core objective are as follows:
To assess the perception of stockist about stock management.
To understand the policy of competitors in this regard
To examine stockist view about giving frequent stock updates tocompanies.
A Survey was conducted covering 36 Stockists for this purpose of thefollowing places:
Amritsar,Ludhiana,Moga,Bhatinda,Abhor,Muktsar,Kotkapura,Fazilka,Mansa,Rampura,Malerkotala,Barnala,Nabha,Maudmandi,Sriganganagar Hanumangarh, Meerut, Bulandsehar, Aligarh, Agra, Sirsa, Fatehabad and Hisar.
Key Findings of the Survey
Overstocking problem with Companies.
overstocking problem s
811
1512
14 139
02468
10121416
virbac
vetnex
inta
s
pfi zer
sarabhai
wock hardt
inte
rvet
com pany
No
. of
Sto
ckis
t
Series1
Objective: - The objective here was to find out with which companiesthe Stockists are generally facing the problem of stock mis-management.
As the major problem which stockists face is that of overstockingproblem, therefore proportion of different companies in this problem isfound out.
Result: - As we can see most of the Stockist are facing this problem ofoverstocking with Companies like Intas, sarabhai, wockhardt, Pfizerand Vetnex.
Problem of under stocking with Companies
understocking problems
1 1 1
3
2
0
0.5
1
1.5
2
2.5
3
3.5
ve tne x inta s pfize r sa ra bha i inte rve t
com pa ny
No
. o
f st
ock
ist
S eries1
Objective: - Another major problem of stock mis- management isproblem of under stocking. Thus the aim here is to find the proportionof different companies in this problem.
Result: - Unlike the problem of overstocking, this problem was notmuch common with the stockists. Only 3 of them have said that theyare facing this problem with Sarabhai, 2 with Intervet and 1 each withVetnex Intas and Pfizer. However it is very significant to note thatVirbac Is missing in the chart, an indication of good transportationsystem leading to accurate lead time .
Reason for Problem
Reason ror problem
12
810
0
2
4
6
8
10
12
14
fa lse commitment byVSE
fluctuation in demand lead time
No.
of s
tock
ist
Series1
Objective: - As these were the major problems stockists were facing,therefore it was interesting to find out the reasons behind theseproblems and that was the aim here.Result: - The major reasons here were false commitment of VSEwith Stockist that he will help him in liquidating the stock so as toachieve his personal goals. Another reason was the problem of Leadtime with Companies.
Ideal frequency for stock updating (acc. To Stockist)
Ideal frequencyweekly
24%
15 days35%
monthly41%
Objective: - The objective here was to gauge the attitude of Stockisttowards giving Stock updates to companies. I.e. what he thinks shouldbe the Ideal frequency of giving stock updates to Companies.
Result: - 41% of them have said that stock updating exercise shouldbe monthly, 35 % for Bi-monthly and 24 % of them have said thatweekly exercise should be their. It is clear from this pie that 59 % ofthem are ready for bi-monthly and weekly stock updates.
Reason for monthly stock updating
Reason for monthly
Com panieschoice
21%
tim econstraint/cant
change36%
custom43%
Objective: - As because 41% of the stockists were comfortable onlywith monthly stock updates, it was important to find out that why theyfeel that ideal frequency should be monthly and not bi-monthly orweekly?
Result: - 43% of them said that since we have opened our business weare giving stock updates with this frequency and because every bodygives stock updates monthly so we do. 21% of them said that it iscompany’s choice. Company neither asks nor do they have any kind ofagreement with us for giving bi-monthly or weekly stock updates.
It is important here to note is that36% of them particularly big players have responded that because oftime constraint they are not comfortable giving frequent stockupdates.
Comfort Level with VSE, taking frequent stock updates
Co mfo r t le v e l w ith VSEs
m o r e th an ave r ag e24%
fu lly28%
n o t at all15%
a lit t le9%
ave r ag e24%
Objective: - Since Company does not have any ground level IT backupas such therefore much of the responsibility of taking frequent stockupdates from Stockist rests on the shoulders of VSE. Because of thisreason it is important to find out the comfortable level of Stockist withVSE taking frequent stock updates and that is precisely the objectivehere.Result: - only 15% not at all comfortable and 9% are littlecomfortable thus are the problem areas for the companies and rest24% average comfort ability is more than average each and 28%arefully comfortable and are ready to give frequent stock updates to theVSEs of Company.
E-mail preference regarding Stock updates
e-mail preference
yes29%
no71%
Objective: - Here objective was to find out that how many of themprefer to send an e-mail to the Company regarding Stock updates.Result: - Unfortunately only 29% of them prefer to send e-mail to thecompany and rest of them were indifferent towards this question.However it has been also interpreted that in six months time stockistsmay be found comfortable with this exercise, as they have softwaresto maintain stock updates but they are yet to be at home with them.
Outcome of Persuasion for frequent stock updates
O utc om e s of pe rs ua s ion
C o n vin ce d73%
Un -co n vin ce d27%
Objective: - As one of the objective of this project was to persuade thestockisits with the benefits of frequent stock updates and ultimatelysee whether they are encouraged to give stock updates after thispersuasion or not.
Result: - Good news for the Company here is that 73% of them wereconvinced wit these benefits and were encouraged to exercise thisactivity bi-monthly or weekly. 27% of them were not convinced andwere not ready to change.
Benefits Perceived
Benefit perce ived
9
15
10
02468
10121416
decrease in holdingcharge
prevent over/under-stocking
lower payment burden
No.
of S
tock
ist
Series1
Objective: - Since 73% of the Stockist were convinced with thebenefits of frequent stock updates it was important to find out thatwhat the benefits, which they are valuing most and that is what theobjective here.Result: - As we can see in the fig. prevention of over/under stocking iswhat they were valuing most. Lower payment burden and decrease inholding charges are some other benefits which can motivate them.
Major Interpretation
No doubt, Stockist are facing Problems associated with Stockmismanagement but at the same time they also understand theBenefits of Stock Management because of which they are readyto give us Bi-monthly or weekly stock updates.
Because of Lack of Ground Level IT backup as such, it’s only VSEwho can take us FORWARD.
Monitoring system:
As far as the monitoring system is concerned as it has come out in thesurvey that the environment at the stockists level is yet not ITfavorable therefore the lead role in this connection has to played bythe VSE. He is need to collect secondary sales information at thestockists level in a bimonthly manner that after every fifteen days andneed to be submitted to the area manager who can synthesize all theinformation of all the stockists in a more specified and analyticalmanner and then he can put this information in the system via internetand thus information would be available to the strategic group of thecompany.
The VSE need to collect the secondary sales at individual stockist’slevel and arrange this information in an excel spreadsheet in thefollowing manner:
STOCKISTS
VSEs
AREA MANAGER
COMPANY HEAD-OFFICE
Internet application
The Area Manager can synthesize all these information in ancomprehensive manner and can track the secondary sales per productand can set up these data in an excel spreadsheet.
However in order to track whether the information given by VSE aboutthe individual stockist is accurate or not and at the same to check theinformal distribution system that exists among the stockists[i.e As themajor stockist orders in bulk he gets a discount from the company say a medicinetrading at Rs 60 is offered to him at 55 ,he offers to the smaller ones at 57 and bothare now in profit, so the bigger ones always orders taking the smaller ones intoconsideration].
The monitoring chart may be as follows:
STOCK AND SALES STATEMENTNAME OF THE STOCKIST:ADDRESS:
PART OF THE MONTH & YEAR:
Opening Stock Receipts
StockReturnfrom
Retailer
Breakages& DateExpiry
ClosingStock
ClosingStock
SecondarySales
Price (Units) (Units) (Units) (Units) (Units) Value (Units)
ProductCode Product Pack
71(=5 of last
month) 2 3 4 5 = 5x76=1+2+3-
4-5
C&F Agent Name:Name of the Stockists:Month:
PRODUCT PRODUCT CODE PACK PRICE
SALE FROMC&F[ primarysale]
SALE FROMSTOCKISTS [secondarysales] VARIANCE
However the area manager can represent the data in the followingmanner:
STOCK & SALES STATEMENT FOR AREA MANAGERNAME OF THE AREAMANAGER:H.Q.
PART OF THE MONTH & YEAR:
Product code Product Pack Price
Openingstock
Closingstock
Closingstock
Secondarysales
Secondarysales
(Units) (Units) (Value) (Units) (Value)
Total
An Orientation Programme
for the VSE
This perhaps is the most important part of this project. As because ofthe fact almost all the responsibilities of successful implementation ofrecommendations and strategies suggested in this report for thepurpose of Secondary sales Monitoring System lies on the shouldersof VSEs, Their moral and high motivational levels are crucial for theCompany. Keeping this fact in view an orientation programme hasbeen prepared for the VSEs so that they can understand the benefitsand logic of working on Secondaries.
The major aim of this orientation programme is to makethem understand that how work on Secondaries can simplify their Joband help them in achieving their own Objectives. Unlike traditionalemployees 21st centaury employees are not interested in knowingWHAT they are doing? They are more interested in knowing WHY theyare doing? Let us see how this Orientation programme is going toexplain to VSEs the reason, logic and Benefits of working onSecondaries.
The first step of this orientation programme is to make them (VSEs)understand that what is the process of Secondary sales and how it’smonitoring is essential for the successful functioning of onOrganization.
After explaining this process of Secondaries one can ask a simplequestion to all VSEs present here.
• How many of us here do care for secondaries? YES NO
Obviously most of the answers will come in ‘no’. Although VSEs dowork on Secondaries but most of them they just do it as a paper work.To make it more efficient and effective for both company and VSEitself, it is very important that they care for this job and do it moreefficiently. For this it’s very important to make them understand whatcan be the consequences if they do not work or work on SecondarySales.
What if no work on Secondaries…………………………..????????
COMPANY
C&FAGENT
STOCKIST
RETAILER
Primary Sales
Secondary Sales
Final Customer
Dispensing
Fig1: Various problems if a secondary sale is not being worked upon inan appropriate manner.
As the chart shows there would be various problems arising if thesecondaries are not worked upon.Infact one can say that life would bevery difficult to deal with and even if one of the blocks above continueto grow the results could be very lethal. If secondaries are not beingproperly monitored the operational needs cannot be properlyestimated which would result in unnecessary and huge dumpingenvironment which in turn would result in hefty credit notes .all thesewould result in backorders or receivables back from the stockist if thedumped stock is not being cleared and the vse will have to undergothe pain of cheque and claims settlement whereby he will be in a fixposition between the company and the stockist .Moreover he will notbe able to increase the ROI of Stockists and ultimately hisrelationship would be hampered. On the other hand life and businesscan be very enjoyable if one works on secondaries as because thenevery thing would be very systematic and proper and there would bevery less problems as all the evils associated above will not arise at all
UNCONFIRMEDSALE FORCAST
LEASTMONITORING
OF PROMOTIONALEFFORTS
NO IMPROVEMENTIN ROI OFSTOCKIST
PAINSOF CHEQUE &
CLAIMSETTLEMENTS
MOREBACK ORDERS
ORRECEIVABLES
HEAFTY CREDITNOTES
DUMPINGON RISE
UN PLANNEDOPERATIONAL
NEEDS
What if No work on
Secondaries………??????????
would be ultimately result in profits which is the main crux of anybusiness and perhaps the righteous parameter to define success.The Orientation programme ends with a very interesting picture whichactually summarizes the entire concept and once again focuses thekind of situation if secondaries are not being properly monitored.
As the picture shows the one who works on secondaries is enjoying lifeat the top of the mountain i.e. he is enjoying a top market share asevery thing is proper whereas the one who has not cared for thesecondaries has been losing the grip on the market and now is in avery lethal position and feeling that he must had worked onsecondaries but perhaps he understood it at much latter stage whenvery little can be done. The picture ends with a query “where I want tobe?” As one has to decide how he would carry his work and face theresultant consequence.
Works on Secondaries
Doesn’t Care for Secondaries ?????????????
Losing the gripon the market
W is h , I h adw o rk e d o ns e c o n d a rie s
Where I want to be ???
Product Marketing Plan Monitoring System
Product Marketing Plans
Introduction and objective:
Product Marketing plan may be rightly regarded as the most appliedand successful marketing strategies .It directly impacts on thebehaviour of customers targeted, and the desired attitude to theproduct will follow. However it may be defined as:
Product Marketing Plans may be defined as a range of tacticalmarketing techniques designed within a strategic framework to addvalue to a product in order to achieve specific sales and marketingobjectives.
It may be further mentioned that the objective that actually designsthe product marketing plans may be varied,however some of the coreobjectives are as follows:
Increasing Volume Increasing trial Increasing repeat purchase Increasing loyalty Widening usage Creating interest Creating awareness Gaining intermediary support Seasonal need
However for the benefit of discussion a brush up on the keyparameters of a product marketing plan is stated below.
A product marketing plan is a very structured and logical processwhich can be basically divided into three stages:
1> Feasibility.
2>Checking.
3> Implementation.
Fig: stages of product marketing plans
Short listing the concepts, creating the outlineplans and finalizing copy and design, settingsuccess criterion, communication materials, offermaterials, administration and so on.
IMPLEMENTATION
Structuring the concepts and checking its feasibilityagainst the following vital parameters:
BUDGET, TIMINGS, COMMUNICATION, LOGISTICS, LEGALITIES.
FEASIBILITY
Making a detailed operational plan, running theoperations and monitoring and evaluating resultsagainst the success criterion and brief.
CHECKINGCHECKING
CHECKINGCHECKING
Monitoring is a part ofthe Implementationstage of the productmarketing plans.
Survey Results [Product Marketing Plans]
1. The different product marketing plans meant for the retailers whichare currently in the market are described below in a tabular mannerstating the company and the product on which the plan is on, thedetails of the plan and the reach i.e. the no. of retailers who knowabout these schemes, the total sample size in this survey is 50.
2. As far as the source of information is concerned the survey raisesthat the stockist is the major source of information [70%] while theVSE has only managed to secure 14% as a source of information tothe retailers and 16% has been the company‘s leaflets .
company product Scheme details Source[No. ofRetailers]
Virbac OsteovetNilverm
6 cases: steel glass/ 5cases :flask50 units:6 steel glass
45/11
VetnexCapsola
Flupor
6 cases:umbrella,12 cases:lunch box
Pearl pet on purchase ofRs.3500
44
403
Intas Cal shaktiI.V.Fluid
5 cases: I kg basmati rice2 cases: 1 kg basmati rice
141
Intervet Butox Duke T-shirt on purchase ofRs.4500
44
…….. Biomilk 5 cases= blanket of Rs.525 12
Teneta Tinacal DS 6 cases= gift of Rs.285 01
Ayurvet exapar 6 cases= shampoo 01
Alembic Scalp 24 UNITS OF 5 Litres=jug set 01
3. The controlling parameter more or less has been the proof ofpurchase i.e. the bill.
4. As far as the likeability of the gifts is concerned, the respondentshave been asked to allocate marks out of 5 to the various companiesaccording to their choice. The results are as follows:
As it is shown in the figure the red line justifies the full marks for theindividual companies which infact is the indicator of reach i.e. itdenotes the no of retailers who have raised their choice for the saidcompany eg if the red line shows marks of 230 it means 46 retailers[230/5=46] have information about the marketing plan of the saidcompany and accordingly the have allocated marks.
S ource of inform a tion
le tte r16%
re pre se nta tive14%
stockist70%
89
174
127
67.5
167
16
63
230 230 230 230 230
50
185
0
50
100
150
200
250
Virbac
Vetnex
IntasPfiz
er
Interve
t
Sarabhai
Others
marks secured full marks
Product marketing plan monitoring system:
Thus Monitoring is a part of the Implementation stage of the productmarketing plans.
The principal objective of structuring a monitoring system is to notonly observe but to provide specific and meaningful feedback to theplanners on the marketing promotions by accessing the strengths andweakness of the specific promotions in terms of:
Awareness and perception of promotion among the targetedgroup
Stated behaviour of the targeted group.
Stated Effect of the Marketing Promotions on targeted groupBehavior.
Competitor’s reaction to the said marketing promotion.
comparison of the sales figures and proper evaluation of the authencity of source & reason of the sale.
Infact it may be citiedhere that for better implementation of the marketing promotionalplans each of them has some specific key performance indicators[KPI] which is in tune with the objective of the promotional planand thus the monitoring system would be much more specific inthat case.
The monitoring system is basically a step by step process which isconstituted to logically observe and provide analytical feedback to theplanners the various steps are as follows:
Step 1: the first step is to observe the targeted group i.e. eachproduct marketing plan has a specific group and therefore monitoringthe targeted group is of vital importance. Here their past purchasebehaviour regarding the product is being analyzed which can executedthrough their past sales records and accordingly a comparison can beconstituted right from the initial stages of the plan.i.e their avg
business generation to the company and the figures during theexecution of the marketing plans.
Step 2: the second step is about monitoring the reach of themarketing plans, i.e. whether the information about the plans hasbeen properly communicated to the targeted group or not.As it is veryevident from the survey results that flow of communication is beingdistorted at the Stockists level therefore its is very significant for theproper implementation of the plan that the communication about theplans is being reached.
Step3: observing the competitors reaction to the product marketingplan is of outmost importance. As because if the plan is being able togenerate objectives competitor would definitely react and if he doesn’tit means that the marketing plan is not well enough to knock hecompetitors pie of market share.
Step 4: a comparison of the sales figures would actually give the cruxof the story i.e. to evaluate the pull of the plan on the sales figuresand also a comparison of the figures before the implementation andduring and after the plan would result in understanding the basics ofthe performance of the plan.
Step 5: Checking the authencity of the source and the reason of sale isalso very important to estimate the proper functioning of themarketing plan.
Implementation.
As far as the implementation of this monitoring system is concerned itwould rests on the shoulders of the field staff i.e. the VSE as he is theperson who actually can monitor these plans at the niche level and canalso transfer this information in an analytical manner .The first step ofobserving the targeted group the vse may collect the needed datafrom the previous records and can prepare a comparatative sheet [acomparatative sheet in excel spreadsheet is being attached in the ‘appendices’section of this report]whereby he can analyze the performance indicatorsand can accordingly design his plan of action. Secondly in order tomonitor the reach of the plan the vse has to make sure that thetargeted group is being properly communicated. Regarding these hemay arrange a trade show where at one go the entire group is beingapproached or feedback may be taken from the individual members byadopting the questionnaire methodology and accordingly he may
collect information about the competitor’s reaction to the specificproduct marketing plan. In addition to these a excel sheet can besysthesized to make a study between the avg sale of the said product,the total sale in that product category and the sales that is generatedduring the time of the plan and accordingly the vital information canbe stressed.This entire activity needed to carried at a niche levelwithin a time frame of 3o days and designing the period as the plangrows. For this purpose simple a simple excel spreadsheet is beingprepared which is being attached in the appendices section, howeverthe main crux is being presented here in a tabular manner
NAME OF THERETAILER
MOBILENO REACHED?
AWARENESSLEVEL
COMPETITORSREACTION
Table 1: to be collected at the retailer’s level
AVG. SALE OF THE PRODUCT/MONTH
TOTAL SALES IN THE PRODUCT CATEGORY
TOTAL SALES IN THE PRODUCT DURING PLAN
TOTAL NO.OF PRESCRIPTIONS BEFORE PLAN
TOTAL NO OF PRESCRIPTIONS DURING PLAN
VARIANCE
NO.OF NEW VETS ADDED
Table 2: information of the sales figures and also monitoring the behaviour of Vets.
All this information need to collected and should be made available tothe planners as the can analyze it and can bring logical modifications ifneeded. For example if we present some hypothetical figures in acomparatative chart the strength of the plan can be easily accessed.
R E V E N U E
01 0 ,0 0 02 0 ,0 0 03 0 ,0 0 04 0 ,0 0 05 0 ,0 0 06 0 ,0 0 07 0 ,0 0 0
A V G S A L E S T O T A L S A L E S S A L E SD U R IN G
C A M P A IG N
R E V E N U E
QUESTIONARRIES
Institute of Marketing & managementQutab Institutional Area, New Delhi-110016
QUESTIONNAIREPlease tick one of the Boxes, wherever appropriate.
1. What makes you proud to be in this Profession?
___________________________________
2. Are you engaged in any other social Activity apart from your Profession?
_________________________________________
3. What is the population of Livestock in the Area that you are covering?
a). Less than 1000 b). 1000-1500 c). 1500-2000
d). More than 2000
4. How many no. of cases do you treat in relation to following per day?
5. In case of following classes which product do you prescribe most inYour Practice?
6. Which Company’s products do you generally prefer most in yourPractice?
a) Virbac b) Vetnex c) Sarabhai d) Pfizer
e) Intas f). Intervet
Type No. of cases Bacterial Infection Deworming Cases Uterine InfectionInfertility due to Nutritional Deficiency Any Other Disease Total
Classes Pref-1 Pref-2 Pref-3Premium-Antibiotics AntibioticsEndo parasitesEcto parasiteNSAIDSMineral MixtureMulti Vitamins
7. Please Rank (on a scale of 1-5) the following criteria for your Preference. (1-not important, 2-least important, 3-important, 4-moreimportant, 5-Extremely important)
Criteria RankingServices
Availability Quality
Product Range Price
8. Have you ever gone for a change as far as your preference for a Company is concerned?
Yes No If Yes, Name of previous Company__________
9. Why so?
a). Availability b). New Innovative products
c). Good Quality d). Services e). Any other___________
10. How much are you satisfied with the company that you generally prefer Most?
Not At All a Little Average More Than Average Fully
11. Which is the area of improvement to reach your expected level of Satisfaction?
a). Availability b). Services c). Quality
d). any other___________
12. Among following which Inputs from companies attract you most? Rank (On the scale of 1-4) 1-least attractive, 2-avg. attractive, 3- attractive, 4-extremely attractive
Inputs Ranking Stationery Free Samples Any other
13. How do you Rank (on the scale of 1-4) the following sources ofknowledge and information? (1-least important, 2-important, 3-moreimportant, 4-extremely important)
14. Please Rank the Representative of the following companies on thefollowing
Parameters. (1-poor, 2-average,3-good,4-V.good,5-excellent)
Parameters Virbac Vetnex Pfizer Intas SarabhaiNo. of VisitsBehaviorProduct KnowledgeAppearance
15. In your view in order to improve the services which are areas ofimprovement (please suggest)
_____________________________________________________
________________________________________________________
16. For you as a professional Doctor which among these matters to you most(Rank on the scale of 1-4) (1-least important, 2-important, 3-moreimportant, 4-extremely important)
Personal Information
Name_______________________Address_____________________________________________________
Sources RankingVeterinary JournalProduct CatalogueSeminarsAny Others______________
RecognitionMoneyFamePersonal Satisfaction
Date of Birth___________________Phone No.___________________
“THANK YOU FOR YOUR CO-operation.
Interactive Sheet[For Stockist]
Please tick the Boxes, wherever applicable.
1. Since how long you have been in the business? _________________________________________
2. What is your experience with this business?
a) Excellent b) Good c) Average d) Poor
3. Which are the companies that you deal with?
a) Virbac b) Vetnex c) Sarabhai d) Pfizer
e) Intas f). Intervet
4. How often the companies take stock updates from you/Tick theProblems you have ever faced with respective companies as mentionedin Table.(eg.Monthly, weekly, twice in a month, etc.)
5. Why so (Regarding problems mentioned in table)
a) Time of order b) lead time c) fluctuations in demandd) Any other
Company Frequency Over-stocking
As perneed
Under-Stocking
VirbacIntasSarabhaiPfizerVetnexIntervet
Natural Remedies
Himalaya Drugs
Indian Herbs
Wockhardt
Ayurvet
6. What according to you is the ideal frequency of taking stock updates?_____________________
7. Why you feel so? ____________________________________________________
____________________________________________________
8. Would you prefer making an e-mail to the company about your stockup dates?
a) Yes b) No
9. How comfortable are you with the Representative recording your stockupdates frequently?
a) Not at all b) A little c) Average
d) More than average e) fully
10. Rank (on the scale of 1-4) the following benefits of giving frequentstock updates to the companies
(1-least important, 2-Important, 3-more important, 4-extremelyimportant)
Benefits RankingDecrease in lead timeDecrease in holding chargesPreventing over/under-stockingSave interestImprove relation with customerLower payment burden
Personal Information
Name___________________ Contact No._________________
QUESTIONNAIRE for RETAILERS
1. Name 3 companies whose selling is very high from your counter.
a) ______________ b) _______________ c) _______________
2. Give your Preference for the Veterinarians on the basis of number ofprescriptions on per day basis?
3. Which Medicines do you sell most for the following Classes?
4. Can you suggest us some information about new veterinarians in yourregion?
____________________________________________________________
Preferences Name Contact No. No. of PrescriptionPreference-1Preference-2Preference-3
Classes Preference-1 Preference-2Premium-Antibiotics AntibioticsEndo-parasiticidesEcto-parasiticidesNSAIDsMineral MixtureMulti-Vitamins
Name of Retailer ________________
Address____________________________________________________
Institute of Marketing & managementQutab Institutional Area, New Delhi-110016
[Questionnaire for evaluating Product Campaign Efficiency]
1. What are the different Kinds of Schemes that have been offered by Companies duringlast 4 Months?
Company Name Product Scheme Details Monitoringparameter
2. From where did you get the Information ?( Please Tick)
a). Letter from the Company b). Representative c) Stockist
d). Any other (please specify) ________________________
3. How often the companies generally Introduce such kind of Schemes?
______________________ Are they Seasonal a).Yes/No Please Specify______________
4. What is your Satisfaction Level with the following Companies regarding gifts? Pleasegive the marks out of 5?
5. Please suggest some reasons for your above markings?
Company Name RankVirbacVetnexPfizerSarabhaiIntervetAny other
Name of Retailer ________________
Address____________________________________________________
Limitation of the study
As far as limitation is concerned it may mentioned here that timeframe was a major constraint particularly for the market survey asbecause studying and diagnosing the market needs a lot of time butthe time constraint made the survey suffered a bit. It may be alsomentioned here that as the survey includes a lot of traveling problemswere faced regarding the travel conveyance, as in the villages mostlyit was a great problem and it made the work suffer a lot.
Apart from all these there has been quite a few problems face whichacted as a limitation for the study e.g. on monetary grounds, and alsothe different strikes and riots in Punjab also offered resistance for thestudy to be undertaken.
Although efforts have been taken to meet and overcome theselimitations yet perhaps if they had not been there more life colud bebrought in the project.
Bibliography
1. A handbook on CRM by Adrian Payne
2. No more limits on CRM by Peppers & Rogers Group.
3. A report on ABC healthcare Secondary system by Arun Sharma.
4. A handbook on Sales Promotions by Julian Cummins & Roddy Mullin.
5. Designing and integrating Ict Campaign Strategy by AIIA.
6. Marketing Research by Naresh .k. Malhotra.
7. Consumer Behaviour by Leon G.Schiffman.
