Dendrite Case Study

Dendrite Case Study

Q1

United States

In US; the preparation of an adequate customer profile database is essential for the managerial decision making process.

The size of the sales force is significant factor, as the average size of the sales force is comparatively much larger than other countries, with 500-3000 sales people.

The level of customer service is not as “Personal” in US, compared to Japan. Hence support service to sales reps ratio is only 1:200.

In US only 80% of the pharmaceutical reps have access to the ETM system; judging by the advantages that the system provides, there is potential 20% market which can adopt the ETM system.

In order to build relationships with the prescribing physicians, the sales reps called the medical personal every 4 to 6 weeks and left relevant literature, samples and perform service tasks.

The Dendrite share of the US automated service market is 17.9%, and this share can be further increased by enhancing the software and support services.

The overall productivity is judged by focusing on the customer profile and relevant factors such as: call frequency, along with the processing patterns of the doctors.

Japan

In Japan there is a strong influence of the personal service factors, hence the service to sales per ratio is 1:100. The Japanese sales individuals are very persistent and hardworking, as they seek to achieve more than the job requirements (Domingo, 2003).

The average size of the sales force that exists in Japan is lower as compared to other countries, where the size is 100-200.

There is one pharmaceutical salesperson available for every 6 physicians in Japan. The workers feel that they have to perform beyond their job descriptions to satisfy the clients (Organ, 1988).

The Dendrite share of the Japan market is at a relatively low level of 5.5%, hence there is an opportunity to significantly increase the market share.

Only 6.6% of the pharmaceutical reps access to ETM, hence there is an opportunity to switch 93.4% of the reps to ETM.

The reps try to obtain the relevant information, such as: customer profiles, sample tracking and entertainment/travel details.

Western Europe

In Western Europe the pharmaceutical reps are allowed to meet the doctors only on an annual basis, through a formal meeting. As the management style in Europe is drastically different than that of US and Japan (Roland and Bruno, 1995).

The role of advertising is very significant in this market.

The average size of the sales force is relatively higher, and is similar to the US sales force.

Only 8.1% of the pharmaceuticals reps have access to the ETM system, hence there significant room for growth.

The Reps usually require integrated information marketing systems and key account systems.

The market is generally price sensitive and the average sales force size is smaller, as compared to other countries.

Q2

1-Expand into other Industries

Pros

Dendrite already has established a strong brand name in the pharmaceutical industry, and it can be adequately modified to fit into different industries.

Considering the high cost of development, the benefits from penetrating into new market segments will outweigh the costs in the long run ...