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    Becton and Dickson Case

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    OliviaHovey
    This document discusses Becton Dickinson implementing a multidivisional marketing strategy to better serve their key customer, Health Medical Center. It would involve coordinating sales across BD's five divisions to reduce costs for HMC while increasing sales opportunities for BD. The circumstances seem right given HMC's size and current purchases from multiple divisions. Key players from both organizations would need to support the change. The recommendation is for BD to propose the new strategy to HMC executives by emphasizing long-term cost savings and avoiding a price war with their competitor, Terumo.

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    © All Rights Reserved
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    Becton and Dickson Case

    Uploaded by

    OliviaHovey
    411 views11 pages
    This document discusses Becton Dickinson implementing a multidivisional marketing strategy to better serve their key customer, Health Medical Center. It would involve coordinating sales across BD's five divisions to reduce costs for HMC while increasing sales opportunities for BD. The circumstances seem right given HMC's size and current purchases from multiple divisions. Key players from both organizations would need to support the change. The recommendation is for BD to propose the new strategy to HMC executives by emphasizing long-term cost savings and avoiding a price war with their competitor, Terumo.

    Original Description:

    Multidivisional Marketing

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    This document discusses Becton Dickinson implementing a multidivisional marketing strategy to better serve their key customer, Health Medical Center. It would involve coordinating sales across BD's five divisions to reduce costs for HMC while increasing sales opportunities for BD. The circumstances seem right given HMC's size and current purchases from multiple divisions. Key players from both organizations would need to support the change. The recommendation is for BD to propose the new strategy to HMC executives by emphasizing long-term cost savings and avoiding a price war with their competitor, Terumo.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    411 views11 pages

    Becton and Dickson Case

    Uploaded by

    OliviaHovey
    This document discusses Becton Dickinson implementing a multidivisional marketing strategy to better serve their key customer, Health Medical Center. It would involve coordinating sales across BD's five divisions to reduce costs for HMC while increasing sales opportunities for BD. The circumstances seem right given HMC's size and current purchases from multiple divisions. Key players from both organizations would need to support the change. The recommendation is for BD to propose the new strategy to HMC executives by emphasizing long-term cost savings and avoiding a price war with their competitor, Terumo.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Becton Dickinson and Company:

    Multidivisional Marketing
    Programs

    Olivia Hovey, Austin Bridgers, Nik Donlin, & Clay


    Killgore

    About Becton Dickinson


    (BD)
    Manufactures products for health care
    professionals, medical institutions, industry,
    and the general public
    Divided into two sectors:
    Medical
    Diagnostic

    Five Operating Divisions


    BDAC, BDD, BDMS, BDVS, & DM

    About Health Medical


    Center (HMC)
    Carrier of products bought from all five
    divisions of BD
    Leading teaching hospital in the southeastern
    United States
    Bought $252,000 of medical supplies
    $216,000 in needles and syringes in 1988

    Facing a severe budget deficit

    Attractiveness of multidivisional
    marketing
    Stress the importance of BD within their account
    Can help cut costs through Supply Chain
    Management along with cross-divisional
    coordination efforts
    BDD will also be able to better translate the
    value added services to the end users rather
    than administrative personnel
    Changes in managerial personnel will allow the
    start up of a new marketing program

    Factors that aid and inhibit

    Aid:
    John Gormally
    Gormally supports
    supports the
    the
    John
    idea
    idea

    Inhibit
    :
    HMC is
    is more
    more interested
    interested in
    in
    HMC
    price than
    than services
    services
    price

    Structured to
    to fit
    fit
    Structured
    multidivisional
    marketing
    multidivisional marketing
    strategy
    strategy
    Terumos low
    low pricing
    pricing
    Terumos
    Differentiated product
    product
    Differentiated
    offerings
    offerings
    Reduction in
    in cost
    cost amounting
    amounting
    Reduction
    to
    more
    than
    Terumos
    to more than Terumos
    discounted price
    price
    discounted

    HMC working
    working with
    with Terumo
    Terumo on
    on
    HMC
    discounted
    plan
    discounted plan

    Circumstances for implementation:


    Strategy
    A multidivisional strategy would increase the
    opportunity to raise awareness of unused
    products and services
    Multiple divisions selling to an account
    regularly
    Account size justifies increased attention
    Value-added services will increase BD
    attractiveness

    Do these circumstances apply?


    Yes
    Account size
    Currently buying from 5 different divisions
    Mutually beneficial
    Reduction in costs for HMC
    Increased sales for BDD

    Whats at stake?
    For BD:
    Undercutting one division would cause problems with
    other divisions
    A potential key account relationship
    Opportunity for growth in divisions

    For BDD:
    If no action is taken they will lose their account with HMC
    $252,000 in sales to HMC

    For various personnel at HMC?


    Layoffs 100+ hospital personnel
    $175,000 expense reduction from materials management

    Key Players
    BDD
    John Kmetz: Sales rep
    Ramon Gilmartin: CEO
    Robert Jones: VP Sales
    Robert Flaherty: President

    HMC
    Joanne Wilson: Purchasing Manager
    Stan Delaney: VP of Financial Services
    Phil Robinson: Administrator of Financial Services
    Judy Koski: Director of Material Management

    Recommendations
    Mr. Jones should recommend the
    multidivisional marketing strategy
    Discuss the long-term cost savings with the key
    HMC executives
    Avoidance of a price war with Terumo at all
    costs

    Implementation Process
    Identify target accounts in which the new marketing
    structure would be successful
    Identify communication channels within these
    accounts
    Ensure divisional managers support this process
    Determine which value-added services will be
    offered
    Have cost savings and specific financial information
    ready when meeting with account representatives
    Potential 25-30% reduction in supply chain costs

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