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    SecB Grp1 B2B Dendrite

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    Hrangbung Darthang
    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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    SecB Grp1 B2B Dendrite

    Uploaded by

    Hrangbung Darthang
    145 views10 pages
    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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    Dendrite case

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    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.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    145 views10 pages

    SecB Grp1 B2B Dendrite

    Uploaded by

    Hrangbung Darthang
    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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    © All Rights Reserved
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    You are on page 1of 10

    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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