Project Report Of Summer Internship Program

A PROJECT REPORT ON

1. CUSTOMER RELATIONSHIP MANAGEMENT MODULE FOR 2000 KOMs. 2. SECONDARY SALES MONITORING SYSTEM. 3. PRODUCT MARKETING PLANS MONITORING SYSTEM. FOR

Submitted By: Indranath Chatterjee Roll No.: 06 - JI -125 Under the Guidance of: Mr. Satwinder Singh Grewal Product Manager [Livestock] Vetnex, RFCL Limited And Mr. Rajneesh Bhatia Product Manager [Livestock] Vetnex, RFCL Limited

Institute of Marketing & Management MARKETING TOWER, B-11, QUTAB INSTITUTIONAL AREA, NEW DELHI 110016 Phones: 26520892-6, 26520900 Email: [email protected] Website: www.immindia.com

Undertaking This is hereby stated that this report is very original in every sense of the term and it carries a sense of creditability and strength and that I have taken no shortcuts and remained both rigorous and scholarly. I have tried my best to keep this work as watertight and squeaky clean as possible. It may be further stated here that in the preparation of this report and projects undertaken some aid has been taken from a pool of professionally shared knowledge, a detailed description 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 to all concerned respectable executives of Vetnex [SBU] of RFCL limited forgiving me this opportunity of internship which has been a pure learning experience and which have enlightened my knowledge and skills about the animal health care [livestock] industry. I would also like to express my gratitude towards the Institute Of Marketing & Management for giving me the opportunity to undergo Summer internship at Vetnex,RFCL limited

I am specially thankful to my mentors Sir Satwinder singh Grewal and Rajneesh Bhatia for guidance and cooperation during this internship and infact without their navigational assistance life would have been very difficult as far as structuring 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 dept for inducting the module of internship programmes at RFCL Limited without which I shouldn’t have ever learnt what I had during my internship at Vetnex.

Executive Summary The purpose of this report is to literally act as a window to the projects undertaken as a part of the Summer Internship with the Organization Vetnex (SBU) RFCL Limited that aims to define the breadth depth and scope of the various thinking processes and mechanics that actually synthesized the projects undertaken. The Objective of the projects that have been assigned as a part of the internship is:

1> To develop & design a CRM Module for 2000 Key Opinion

Makers for Livestock Business.

2> To develop & design a Secondary sales Monitoring System.

3> To develop & design a Monitoring system for Product marketing plans. Each of the above mentioned objectives required a marketing survey in order to diagnose the various parameters that are infact essential to transform the project to a coherent body. This Survey aims to define those essential parameters for the individual projects like the tastes and the preferences of the KOMs for the CRM model, the attitude of the Stockists regarding importance and benefits if secondary sales are

being monitored and so on. All these are being crystallized in synthesizing the projects. It may be stated here that in case of animal health care industry the Vetenarians and the paravetenarians are infact the real mover of the product in a sense that they actually design the decision making process that goes into buying by the ultimate consumer and therefore they are recognized as Key Opinion Makers. This survey of 213 vets and paravets clearly stated their individual tastes and preferences and various other parameters and thereafter they are being segmented on the basis of their business potential and these constituted the pathway for developing the customer relationship management module. As far as the Monitoring system for secondary sales is concerned the survey of 36 Stockists clearly demonstrated the perception and the attitude about the importance and benefits of monitoring secondary sales and at the same time it also investigated about the view and the amount of flexibility of the Stockists about updating the company frequently. However the survey results revealed an important interpretation that the role of vetenary sales executive (VSE) is very crucial in this regard as he is someone who can facilitate the monitoring plan and also the Stockists attitude about it and therefore accordingly an orientation programme has been designed. And as far a monitoring plan for product marketing plans is concerned a market survey is being conducted which assessed the performance of the various companies in this regard and their monitoring ways and devising the flaws associated with these systems thus structuring a monitoring plan and at the same time the report also intervenes whether both the push and pull strategy about the product marketing plans should be implemented correspondingly or not as because devising an monitoring plan involves certain parameters or the dynamics involved actually may better work if both are not implemented correspondingly and infact the management logic coupled with business sense also raises its queries against its implementation. For the benefit of understanding and presenting this report in an organized fashion this report has been organized into Various sections where certain sections has been sub divided catering to need of proper organization of the report.

INDEX 1. Introduction…………………………………….. 2 2. Methodology of Research ……………………… 3 3. CRM Module a) Introduction and Objective………………………5-6 b) Segmentation of Vets and paravets……………... 7 c) Survey Results for all Segments………………… 8-25

4. The CRM Model…………………………………… 26-27 a) Steps involved in CRM Model………………….. 27- 28 b) Model Application………………………………. 28-30 c) CRM Strategies for all Segments………………. 31-34 5. Secondary Sales Monitoring System a) Introduction and Objective……………………….. 36-37 b) Key findings Survey on Stockist……………….... 37-43 c) Monitoring system ………………………………..44-46

6. An Orientation Programme for VSEs……………. 47-50 7. Product Marketing Plans Monitoring System a) Introduction & objective …………………………. 52-53 b) Survey results & analysis ………………………… 54-55 c) Monitoring system…………………………………...56-59 8. Appendices a) Questionnaires …………………………………... 60-66 b) 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 Internship Program at Vetnex (SBU) RFCL. Ranked 4th in the Indian animal health industry, Vetnex offers an extensive product range covering important therapeutic areas such as antimicrobials, anti-parasitics, NSAIDs and supportive therapy products, performance promoters including Nutritional, Antibacterial and Toxin Binders for Livestock, Poultry and Canines. Vetnex has long-standing marketing tie-ups with Alpharma, & 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 for Livestock Business. 2> to develop & design a Secondary sales Monitoring System. 3> to develop & design a Monitoring system for Product marketing plans All these projects required the diagnostic ability of a market survey to intervene the certain dynamics involved. The survey is being carried at the following places of 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. It may be mentioned that duration of the survey was from 16 th May to 11th 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 Surveyed

: 333

Methodology of Research The purpose of the market survey was to intervene the different parameters and dynamics involved with the different projects which serve as a foundation for the project to be structured upon. Therefore it was very important to obtain the right information from the right source and efforts were taken to record all the data in a methodical way which can be compatible according to the required method of analysis. Accordingly different questionnaires were prepared in line with the different projects and each question serves a particular purpose. Three questionnaires were prepared [the questionnaires are attached in the appendices section of the report] which were meant for different targeted audience.

The source of data was the primary data only which were collected and interpretated from the cross section of the different sources of information. The sources of information for the project of CRM were the Vets and Paravets. A sample size of minimum 200 was decided to target upon from the different places of States of Punjab, Harayana, and Uttar Pradesh. However for the purpose of Secondary sales project a sample size of 35 was decided and the source of information were the Stockists from the different places. And for the product marketing plans the target sample size was 50 covering different places of the state of Punjab.

Customer Relationship Management [CRM] Module for 2000 KOMs

Customer Relationship Management [CRM] Introduction: CRM is a business approach that seeks to create, develop and enhance relationships with carefully targeted customers in order to improve customer value and corporate profitability and thereby maximize shareholder value. Infact the emergence of CRM as a management approach is a consequence to the fact that Nowadays customers represent a moving target and even the most established market leaders can be ousted Quickly from their dominant positions. It is no longer enough to offer excellent products but the key differentiator is exceptional service provided on a consistent and distinctive basis. Competitive advantage can therefore be gained by leveraging knowledge of customers’ expectations, preferences and behaviour. CRM is aimed at increasing the acquisition and retention of profitable customers by, respectively, initiating and improving relationships with the customers. Thus CRM approach holds significance for any corporate entity that wants to flourish and hold the grip on the market as otherwise the company may suffer as customers of this century are moving targets. As such it holds key importance in Veterinary Livestock business. As in case veterinary business the ultimate mover of the product are the Veterinarians and the Para veterinarians who infact design the purchase decision making process and therefore they are rightly regarded as Key Opinion Makers [KOMs].Therefore it is very important to design and develop a CRM module for the KOMs from the business prospective that aims to create an ongoing dialogue with KOMs and and manage and utilize the information and insights obtained at every Customer[KOMs] touch point thereby Acquiring and Retaining the Profitable KOMs by respectably initiating and developing long term relationship with them so as to increase the profitability of Livestock Business 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 ahead Satisfaction Delightment 

LOYALITY

To develop Strategy and action plan on qtr. & annual basis. In order to design a CRM module that fulfills the above mentioned objectives the need and guidance of a market survey is being most felt. Accordingly a market survey was carried on with the prime objective of building a framework that satisfies that above mentioned objectives and also carves a way for the strategies of Customer Relationship Management. The survey was carried from 16 May to 11 June ‘2007 and 213 vets and paravets were interviewed of the following places covering the states of Punjab, Haryana and Uttar Pradesh. th

th

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 and Paravets but after the process of initial screening of the questionnaires 202 questionnaires were selected for the final analysis. The entire data has been worked upon properly with the help of excel spreadsheets and the resultant analysis was built upon. However in order business sense to the analysis and also to synthesize different CRM strategies, the 202 Vets and the Paravets were further classified or segmented on the basis of their individual business potential in the following manner:

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

Segment-A: - Most important segment dealing with maximum no. of cases. They basically occupy higher position in the hierarchy and consist of more qualified Vets and a very less no of Paravets. This segment act as a reference group for other segments particularly segment-c. Segment-B: - Although Potentiality on the basis of no. of cases is less then Segment-A, but they are equally important because they are the emerging group and consists of Vets and Paravets almost at equilibra. Segment-C: - This segment consists of Vets and paravets who treat to a maximum of 10 cases per day. Their potentiality is less compared to the seg A & B, but these group also consists of considerable no of fresher’s and there holds the importance of this group.

Survey Results for Segment A Strength=107

Most Preferred Company M o s tly P r e fe r e d c o m p a n y

W o ck h ar d t 1%

In t e r v e t 7%

L o cal C o m p a n ie s 5%

V ir b a c 25%

In t a s 18%

P f iz e r 21%

V e tn e x 20% Sar ab h ai 3%

Objective: - Here objective was to find out the which companies are being most preferred by the Vets and which one are least preferred and thus the market share of company would be exhibited. Result: - As is shown in the fig. the major Market share (25%) is enjoyed by Virbac followed by Pfizer (21%), Vetnex (20%) and Intas (18%). These are the major players and rest of the market is divided between 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 Q U A L IT Y 67%

S ER V IC E 24%

P R IC E 1% A V A IL A B IL IT Y 2%

N EW P R O D U C T 6%

Objective: - The objective here was to find out the most important criteria which Vets generally take into consideration before prescribing a particular product i.e. the medicine Result: - As is evident from the fig. the criterion which is must is indeed Quality. The core benefit of any product related to veterinary and Pharma are Results. If any product not capable of giving results customer never use those products. If the perceived quality of products of two companies is similar in the minds of Customers then they look for Services and other criteria’s. In this segment most preferred criteria is Quality (67%) followed by Services (24%), Innovative products (6%) Availability (2%) and Price (1%). Change in Company Preference Cha nge in Br a nd NO 21%

Y ES 79%

Objective: - The objective here was to find out the Loyalty factor among the Vets. Results: - As is evident in fig. the Loyalty among Vets and Paravets in Livestock Business is very less. 79% of them have changed their Brand preference and only 21% stick to the same Brand. From this pie the importance of CRM for the Companies is quite clear. Loyalty is like inertia unless and until some external force is applied, it remains as it is, keeping this fact in view Companies can provide exceptional services and quality products to build Loyalty and attract customers of other Companies.

Previous Company

PREVIOUS COMPANY WO CKHARDT 6%

AUR VET 1%

INTERVET 6%

VIRBAC 12% VETNEX 5%

LO CAL CO MPANY 2%

PFIZER 16% SARABHAI 42%

INTAS 10%

Objective: - The objective here was to find the proportion of Companies from which the Vets have changed their preference and ultimately to find out those factors which cause dissatisfaction among Vets. In order to build long term relationship with these vets no company can afford to compromise on those factors. Result: - 42% of the Vets have changed their preference from Sarabhai to some other Company Intas (10%) Pfizer (16%) Virbac (12%) have the major share of pie. Reason for Change Reason for Change ECONOMIC PRICE 7% AVAILABILITY 4% NEW PRODUCTS 18%

SERVICE 47%

BETTER QUALITY 24%

Objective: - The objective was to find out those factors the absence of which can create dissatisfaction among Vets and they switch to some

other Brands. No company can even think of compromising on these factors. Results: - Absence of Exceptional Services (47%), Better Quality (24%) are the major reasons of dissatisfaction among the Vets because of which they have changed their preference from one company to another. Customer satisfaction index

160 140 120 100 80 60 40 20 0

Satisfaction Level Satisfaction Scale

S O TH ER

R IZ E PF

RV ET IN TE

S IN TA

EX

No. of Vets

VE TN

VI R

BA C

CS Scale

Customer Satisfaction Index(CSI)

Company Name

Objective: - The objective here was to find out the satisfaction level among the Vets with the Companies which they currently prefer. Results: - Here a Customer satisfaction scale was built by adding the total no. of points (5 for each vet) and this scale is then compared with the points a particular company has secured. As is shown in fig. the satisfaction 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

C OST C O M P ET I T I V EN ES 11%

N EW P R O D U C T S 28%

A V A IL A B IL IT Y 4%

S ER V I C E 32%

Q U A L IT Y 25%

Objective: - The objective here was to find out that what according to Vets are the areas of improvement upon which Companies

should work so as to change their Satisfaction level to Delightment and pull them up in the Loyalty ladder. Result: - 32% of Vets are expecting exceptional services, 25% go for Quality.28% new products, 11% of them asking for Cost competitiveness. Inputs ATTRACTIVE INPUTS NONE 7%

OTHERS 4% FREE SAMPLES 52%

COMPLIMENTS 37%

Objective: - In Livestock business the major part of services rendered to Vets include the Inputs given to them by the Company. Therefore the 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 said nothing is attractive. Source of Information SOURCE OF KNOWLEDGE ANY OTHER 3%

WORKSHOP 7%

SEMINAR 31%

JOURNALS 27% PRODUCT CAT 32%

Objective: - The objective here was again to gauge the service needs of Vets that what exactly they seek from companies when it comes to the Source of knowledge to update themselves regarding the new products of Companies and other similar information. Result: - Here Seminars & Product catalogues shared the major portion of pie. Veterinary journals also hold a significant share in this category. Softer Elements SOFTER ELEMENTS FAME 2%

PERSONAL SATISFACTION 45%

RECOGNITION 51%

MONEY 2%

Objective: - The fact that behavioral sciences helps marketers in establishing strong Relations with Customers, objective here was to find 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 two elements cover almost all portion of pie. Brand recall BRAND RECAL L S Hiv it

52

A grimin c hilated

33

Neoprof en

40

Butox

21

No . o f Re s p o n d e n t

A lbomar

38

Enroc in

20

A mox irum f orte

29 0

10

20

30

40

50

60

Objective: - To find out that which trade names the Vets were generally recalling most and are at the top of their mind.

Results: - As is shown in fig. the trade names like Hivit (multivitamin), Neoprofen (NSAID), Agrimin chilated (mineral mixture) are the major trade names which were top of the mind of Vets. Survey Results for Segment B Strength=63 vets Most Preferred Company WOCHARDT 2%

Company Preference LOCAL COMPANIES 8%

VIRBAC 34%

INTERVET 13%

INTAS 10% PFIZER 16%

SARABHAI 0%

VETNEX 17%

Objective: - To find out the Market competition, which companies are most being preferred by the Vets and which one are least preferred. Result: - As is shown in the fig. the major Market share (34%) is enjoyed by Virbac followed by Pfizer (16%), Vetnex (17%) and Intas (10%). These are the major players and rest of the market is divided between Intervet, Sarabhai, Wockhardt and Local companies. Criteria for Preference P r e fe r e nc e Cr ite r ia NEW PRODUC T 10%

PRIC E 2%

SERV IC E 19% QUA L IT Y 69%

Objective: - The objective here was to find out the most important criteria which Vets generally take into consideration before prescribing a 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 NO 29%

YES 71%

Objective: - The objective among the Vets. Results: - The loyalty factor again. 71% of them have company to some other one Previous Company

here was to find out the Loyalty factor among the Vets of this segment is missing changed their preference from previous and only 29% of them are Loyal.

Previous Company INTERVET 5%

WOCKHARDT 7%

VIRBAC 2%

VETNEX 2%

PFIZER 21%

LOCAL COMPANY 2%

SARABHAI 49%

INTAS 12%

Objective: - The objective here was to find the proportion of Companies from which the Vets have changed their preference and ultimately to find out those factors which cause dissatisfaction among Vets. Result: - 49% of the Vets have changed their preference from Sarabhai to some other Company Intas (10%) Pfizer (21%) Intas (12%) have the major share of pie. Reason for Change Reason for change NEW PRODUCTS 10%

SERVICE 55%

BETTER QUALITY 35%

Objective: - The objective was to find out those factors the absence of which can create dissatisfaction among Vets and they switch to some other Brands. No company can even think of compromising on these factors. Results: - Absence of Exceptional Services (55%), Better Quality (35%) and new products (10%) are the major reasons of dissatisfaction among the Vets. Customer satisfaction index C ustomer Satisfaction Index 120

CS Scale

100 80

Sa tisfa ction Le ve l Sa tisfa ction Sca le No. of Ve ts

60 40 20 0 VIRBAC

VETNEX

INTAS

INTERVET

Com pa ny Na m e

PFIZER

OTHERS

Objective: - The objective here was to find out the satisfaction level among the Vets with the Companies which they currently prefer. Result: -As is shown in fig. the satisfaction level with almost all the companies is Satisfactory. Improvement Factor Improvement Factor AVAILABILITY 2%

COST COMPETITIVENES 14%

SERVICE 35%

NEW PRODUCTS 24%

BETTER QUALITY 25%

Objective: - To know what according to Vets are areas of improvement upon which Companies should work so as to change their Satisfaction level to Delightment. Result: - 35% of Vets are expecting exceptional services, 25% go for Quality.24% new products, 14% of them asking for Cost competitiveness. Inputs Attractive Inputs OTHERS 8%

FREE SAMPLES 42%

NONE 13%

COMPLIMENTS 37%

Objective: - The Idea here was to find out that which Inputs given by Companies 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 the major parts of services rendered by the companies. Source of Information

Source of Knowledge ANY OTHER 3%

WORKSHOP 6%

SEMINAR 29%

JOURNALS 24% PRODUCT CAT 38%

Objective: - To know what Vets exactly seek from companies when it comes to their Source of knowledge. Result: - Product catalogue (38%), Seminar (29%), Journals (24%) and workshop (6%). In others category some of them were saying that companies should have these services available on internet.

Softer Elements Softer Elements FAME 2%

PERSONAL SATISFACTION 50%

RECOGNITION 46%

MONEY 2%

Objective: - The fact that behavioral sciences helps marketers in establishing strong Relations with Customers, objective here was to find 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 are two elements cover almost all portion of pie. Brand recall Brand Recall Hivit

26

Agrimin chilated

24

Neoprofen

29

Butox

24

Albomar

No. of Re s ponde nt

23

Terramycin

12

Amoxirum forte

10 0

5

10

15

20

25

30

35

Objective: - To find out that which trade names the Vets were generally recalling most and are at the top of their mind. Result: - As is shown in fig. the trade names like Hivit, Neoprofen, and Beutox are at the top of the customers mind. Survey Results for Segment c Strength= 32 vets

Most Preferred Company

INT ERV ET 6%

M o s t ly P r e f e r e d c o m p a n y L OC A L C O M P A NIES 3% V IRBA C 22%

INT A S 25%

P FIZ ER 19%

V ET NEX 25%

Objective: - To find out the Market competition, which companies are most preferred by the Vets and which one are least preferred. Result: - As is shown in the fig. the major Market share (34%) is enjoyed by Intas and Vetnex (25%) each Virbac (22%). These are the major players and rest of the market is divided between Intervet, and Local companies. Criteria for Preference P re fe re n ce C rite ria

NEW P RO DUCT 0%

P RICE 13%

S ERV ICE 16%

Q UALITY 71%

Objective: - The objective here was to find out the most important criteria which Vets generally take into consideration before prescribing a particular product. Result: - In this segment most preferred criteria is Quality (71%) followed by Services (16%), and Price (2%).

Change in Company Preference Ch a n g e in Co m p a n y NO 50% Y ES 50%

Objective: - The objective here was to find out the Loyalty factor among the Vets. Results: - The loyalty factor among the Vets of this segment is better as compared to previous two segments 50/50 is the proportion here.

Previous Company Previous Company INTERVET 6%

WOCKHARDT 6%

VIRBAC 19% VETNEX 6%

LOCAL COMPANY 6%

SARABHAI 31%

PFIZER 13% INTAS 13%

Objective: - The objective here was to find the proportion of Companies from which the Vets have changed their preference and ultimately to find out those factors which cause dissatisfaction among Vets. Result: - 31% of the Vets have changed their preference from Sarabhai to some other Company. Virbac (19%) Pfizer (13%) and rest of the pie is equally divided into Companies like Intervet, Wockhardt Vetnex and Local companies.

Reason for Change

R e a so n fo r C h a n g e A V A IL A B IL IT Y 6%

N EW P R O D U C T S 13%

S ER V IC E 47%

B ET T ER Q U A L IT Y 34%

Objective: - The objective was to find out those factors, the absence of which can create dissatisfaction among Vets and they switch to some other Brands. No company can even think of compromising on these factors. Results: - Absence of Exceptional Services (47%), Better Quality (34%) and new products (13%) are the major reasons of dissatisfaction among the Vets.

Customer satisfaction index

45 40 35 30 25 20 15 10 5 0 S E

E O

T

H

IZ F P

E IN

T

R

R

T E V R

T IN

T E V

A

E N

A B IR V

S

X

S atis fac tion Level S atis fac tion S c ale No. of V ets

C

C S S cale

C u s to m e r S a tis fa c tio n In d e x

C o m p a n y Na m e

Objective: - The objective here was to find out the satisfaction level among the Vets with the Companies which they currently prefer.

Result: -As is shown in fig. the satisfaction level with almost all the companies is Satisfactory. Improvement Factor Im p r o v e m e n t F a c t o r C OST C O M P ET IT IV EN ES S 26%

S ER V IC E 42%

N EW P R O D U C T S 3%

B ET T ER Q U A L IT Y 29%

Objective: - To know what according to Vets are areas of improvement upon which Companies should work so as to change their Satisfaction level to Delightment. Result: - 42% of Vets are expecting exceptional services, 29% go for Quality.3% new products, 26% of them asking for Cost competitiveness. Inputs A ttra c tiv e In p u t NO NE 31%

C O M P L IM EN S 13%

FR EE S A M P L ES 56%

Objective: - The Idea here was to find out that which Inputs given by Companies Vets consider most. Result: - Free samples (56%) followed by Compliments (13%) and 13% of them said nothing is attractive. These inputs are the major parts of services rendered by the companies.

Source of Information Source of Know le dge ANY OTHER 13%

SEM INAR 31%

JOURNALS 25%

PRODUCT CAT 31%

Objective: - To know what Vets exactly seek from companies when it comes to their Source of knowledge. Result: - Product catalogue (31%), Seminar (31%), Journals (25%) and in others category some of them were saying that companies should have these services available on internet.

Softer Elements

Softer Elements

FAM E 6%

RECOGNITION 16%

M ONEY 6%

PERSONAL SATISFACTION 72%

Objective: - The fact that behavioral sciences helps marketers in establishing strong Relations with Customers, objective here was to find 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 and Fame are sharing 6% each. Brandrecall B R AN D R EC ALLS H ivit

14

A g rim in c h ila t e d

14

m e lo n e x

14

H it e k

9

S u p ra z o le RC

N o . o f R e sp o n d e n t

7

F o rt e

4

C es tan

7 0

5

10

15

Objective: - To find out that which trade names the Vets were generally recalling most and are at the top of their mind. Results: - As is shown in fig. the trade names like Hivit (multivitamin), Melonex, Hitek Agrimin chilated (mineral mixture) are the major trade names which were top of the mind of Vets.

THE CRM MODEL

CRM Operational CRM

Customer Profitability Analysis (CPA)

Customer Base

SUSPECTS

Analytical CRM

CURRENT CUSTOMER BASE

PROSPECT

Product Interface Service Interface

INTERFACE

Indirect Interface

Data Base

Internal Data

External Data Base

Feed Back

Fig: Schematic presentation of the CRM model

The CRM model acts as a joint combination circuit of Operational CRM and Analytical CRM where each corresponds to one another and acts as a guide for each other.

Operational CRM: The operational CRM basically consists of those parameters and strategies that consists of formation of the customer base, their insights and information and the ways for managing them and ultimately utilizing them.I.e it confirms to the basic work of CRM module. Analytical CRM: On the other hand an Analytical CRM basically tries to test the business potential of the customers or rather the members of the Operational CRM and build a sense of hierarchy. Analytical CRM is been introduced so that we can frame different operational strategies for different Customers on the basis of their Profitability potential. Analytical CRM works on customer profitability analysis sheet (CPA sheet). It is also known as Strategy regulator as operational CRM is 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 before even thinking of CRM. Therefore first step of CRM Model is to know the universe of Customers (Suspect, Prospect & Current customer base.)  Suspect-Those who may or may not be profitable for the company business in future.  Prospect-Someone who has yet to do business with the company.  Current-Those Customers with whom the company Deal This step also includes the understanding of key parameters which encourage them to prefer a particular company and key drivers of their Behavior. This understanding is particularly important for and prospects to bring them up in Loyalty ladder.

Step2: Segmentation Segmentation

Potentiality Based

Segment A {No. of cases 15 & above}

Segment B {No. of Cases 1114}

Business Based

Segment C {No. of Cases 0-10}

CPA Analysis

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 Companies to find out the Business potentiality of a Customer. Eg. If a Vet belongs to Segment A, treating maximum no. of cases and have higher prescription value, but he is not prescribing company products, despite of applying CRM strategies then the company should treat him accordingly and on the other hand a vet belonging to the segment B ,but is serving more business to the company should be accordingly managed. Step3: Interface Analysis

Interface

Product Interface

Service Interface

Indirect Interface

Interface- The relationship of a customer with a Company depends to a considerable extent on his experience with the Company. This experience depends upon the different types of interfaces the Customer had or will have in the future with the company. In livestock business Vets generally have three major Interfaces with the Company. Product Interface:- Better quality, Economical prices, & Consistent Innovations leads to a better Product Interface and ultimately helps in gaining customer Loyalty. Service Interface: - Regular Visits of VSE (not less then competitors in any case.), Regular Sampling, &Innovative and personalized Compliments are the essentials of better service Interface. Indirect Interface; - Reference groups, Retailers and Stockist also indirectly helps in Image building of a Company through word of Mouth Marketing. Thus Companies can use their Loyal Customers to increase their Relationship network. Step4: Data Base • •

Internal Database:-The data base which Company is capturing about the Customer. This data base can be used effectively to increase the Profitability from Customers. External Data Base: - What is going on in the market placewhat are your competitors doing, How the needs and wants of KOMs are changing.

The consistent collection and updation of data is very crucial for the success of CRM strategies. Model Application To apply the CRM Model on operational level, seven excel worksheets have been prepared. With the help of these worksheets necessary information would be collected by Veterinary sales executive. Area Managers then will send the analyzed report of this information to Headquarters to frame effective CRM strategies. Sheet-1: - This is an Introduction sheet which includes personal information of VSE who is going to collect the information, Business details like HQ which he is covering, no. of KOMs, Stockist & Retailers

in that HQ. It also includes the no. of KOMs in different segments along with the Vulnerable segment {A-}. Vulnerable Segment {A-}: - This segment includes those Vets who are highly potential as far as the no. of cases treating/day and prescription values are concerned but then not giving profitable business to the Company despite of applying CRM strategies. Since companies can neither afford to drop these customers nor keep on adding service cost over 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 creation and updation of internal data base of the Company. This sheet will help in collecting the overall information about a KOM like his personal likings 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 business potentiality 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 is divided 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 a Vet would be drawn from the Retailers who are covering those Vets. The product wise sale details would be taken from Retailers and accordingly Revenue generation capability of different Vets would be calculated for different months. Sheet-4: - This is the Customer profitability analysis sheet. It is also divided into two parts.  Customer activity.  Profitability Analysis. Customer activity includes no. of active customers at the beginning of period in different segments. No. of Customers promoted (profitability increased after CRM) and demoted (profitability remains same or decreased), no. of new customers added and thus the active customers at the end of the period. The profitability analysis tests the total revenue generated per segment and also the cost of sales ultimately the profit or loss per segment can be worked out. Thus it will focus to the individual level where each member of the segment

contribution would be traced upon and accordingly strategies can be built upon.

Sheet-5: - This sheet is to find out the top 10 product on the basis of revenue generated and top 20 customers also on the basis of revenue generated. Sheet-6: - This sheet is to collect personal and Business information from different Retailers. Sheet-7: - This sheet is to collect personal and Business information from different stockists. CUSTOMER RELATIONSHIP MANAGEMENT STRATEGIES Segment-A Interface 1. Product Interface (Needs of Vets) • Better Quality •

Competitive Price

•

Product Innovation.

2. Service Interface (Needs of Vets) • VSE Visits.

Strategies • Their must not be any compromise with product quality as vets never compromise with results. • Their should be some quotes on the product labels from well recognized vets for good quality image. • Vets should deliver some value proposition charts so that they can be ensured about the value addition in the products. • R&D details of companies should be provided to vets or combined visits of Vets should be organized. • Company should improve the efficiency & effectiveness of production units to bring cost competitiveness and innovations in products. • As quality is must in products, no. of visits (more than competitors VSE) of Company’s VSE is must in services. • Compliments that serve to profession are widely

• Sampling & Innovative Compliments. • Addressing Softer Elements.(Recognit ion, personal Satisfaction)

preferred by vets so compliments should be profession oriented. • Consistent free samples should be provided particularly of new products so that vets can make a trial of new products. • To address the softer elements like Recognition Company should organize Award ceremonies for Vets. • Videos on doctors during their field visits can also be shown to villagers.

3. Indirect Interface Indirect interface plays an important role in decision making process of a customer to prefer you over others. Indirect interface stimulates the key drivers of consumer behavior.

• REFERAL GROUP {The group of Customers which can influence the buying decisions of other Customers} Companies must encourage the referral Marketing. It not only helps in building brand Image but also helps in converting prospects into Customers. • GET TOGETHER of Vets should be organized by the Company so that Para vets and Vets can discuss different aspects of their interest and can influence each others decisions to prefer a particular Company. These strategies must be guided by the CPA guide to ensure the successful implementation. Segment-B

Interface 1. Product Interface (Needs of Vets) • Better Quality • •

Strategies •

Since perceived quality of the product again plays an important role in this segment product detailing and product catalogue can help the Company.

•

As because this Segment is more price Sensitive, Companies can provide price charts of different products to the Vets of this Segment.

•

Company can’t afford any kind of compromise in product quality for this Segment as well.

Competitive Price Product Innovation

•

2. Service Interface (Needs of Vets) • VSE Visits. • Sampling & personalized Compliments. • Addressing Softer Elements.(Recognit ion, personal Satisfaction) 3. Indirect Interface Indirect interface plays an important role in decision making process of a customer to prefer you over others. Indirect interface stimulates the key drivers of consumer behavior.

Company should improve the efficiency & effectiveness of production units to bring cost competitiveness and innovations in products.

• For this segment again no. of visits of VSE are important to considerable extent. • Individualized gifts like Shirts, watches, Shoes are more preferred among the Vets of this Segment. • Wishes on Birthdays, Marriage Anniversaries etc. can successfully hit the softer elements and helps in building Relationship by satisfying the emotional needs of Costumers.

• As because of co-ordination with Retailers and Stockist, they can act as Referral groups for these Vets. • Companies should put in the efforts to capitalize the Benefits of word of mouth marketing to influence the decision of these Vets as much as possible.

Segment-C

Interface 1. Product Interface (Needs of Vets) • Better Quality

Strategies • •

No compromise with quality again. Because they are price sensitive, low priced products should be targeted more.

•

Price Sensitive

•

Availability

•

Innovative Products

•

•

2. Service Interface (Needs of Vets) • VSE Visits.

Addressing Elements.

Softer

3. Indirect Interface Indirect interface plays an important role in decision making process of a customer to prefer you over others. Indirect interface stimulates the key drivers of consumer behavior.

New products can again be a tactic.

•

As because of their proximity to the Interiors of villages most of the competitors do not give frequent VSE visit service to these vets but some of them have better prescription value and they can be targeted to get a competitive edge.

•

Compliments and gifts should be catering to personal needs and service to profession.

•

Loyal customers of segment-A Referral group to these vets.

•

These vets have some association with Retailers also .Therefore retailer margin can also influence the decision of these Vets.

• Sampling & Innovative Compliments. •

Easily available products also give the better product interface.

can

be

COMPANY

C&F AGENT

Primary Sales

STOCKIST

Dispensing

Final Customer

Secondary Sales

RETAILER

Secondary Sales Monitoring System

Introduction: As it is shown in the schematic presentation of the last page, the distribution system in veterinary livestock business involves a good deal of planning i.e. the company appoints a C&F agent which are strategically located across the nation and are separate legal entities and invest in creating warehouses to stock the companies goods. Now these agents sell these products to Stockists and invoice them in the name of the company which is known as Primary sales and the sales from the Stockists to the retailer is known as Secondary sales which is of vital importance as if secondaries are being properly monitored then the real pipeline information can be worked upon and the following benefits can be enjoyed leading to effective planning in business. Benefits 

    

Companies launching new products can exploit consumer data to lower their risks and quickly adopt those practices that boost their revenue. Trade marketing expenditures can get more focused on driving revenue due to quicker visibility on its effectiveness. More efficient finished goods management in the supply chain will release capital for better utilization for all its participants. Better control on oversupply or stock outs, leading to customer satisfaction and corresponding retention. A more organized manufacturing plan that allows predictability to 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 thus finished goods inventories get inflated because of slower consumption or returns from distributors. Therefore the need of an effective monitoring system arises. However in the animal health care industry this information is being collected by the VSE i.e. Veterinary Sales Executive from the Stockists in a monthly manner in the form of stock updates, but the problem area involved here is that first and foremost the if the information on secondaries is being collected at such a long interval [30 days] ,the benefits of proper planning of secondaries are not being derived satisfactorily. Therefore the frequency of updation about stocks need to increased.

Therefore in order to test all these parameters a market survey was conducted 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 to companies.

A Survey was conducted covering 36 Stockists for this purpose of the following 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. ove rs toc k ing proble m s N o . o f Sto ckist

16 14 12 10 8

Series 1

15

6

14

12

11

13 9

8

4 2

in

te

rv

rd ha k oc w

co m p an y

et

t

ai bh ra sa

p

fi z

er

s ta in

ex tn ve

vi

rb

ac

0

Objective: - The objective here was to find out with which companies the Stockists are generally facing the problem of stock mismanagement.

As the major problem which stockists face is that of overstocking problem, therefore proportion of different companies in this problem is found out. Result: - As we can see most of the Stockist are facing this problem of overstocking with Companies like Intas, sarabhai, wockhardt, Pfizer and Vetnex. Problem of under stocking with Companies

u n d e rs to c k in g p ro b le m s

No . o f sto ckist

3.5 3 2.5 2

2

1 0.5

S eries 1

3

1.5

1

1

ve tn e x

in ta s

1

0 p fiz e r

sa ra b h a i

in te rve t

co m p a n y

Objective: - Another major problem of stock mis- management is problem of under stocking. Thus the aim here is to find the proportion of different companies in this problem.

Result: - Unlike the problem of overstocking, this problem was not much common with the stockists. Only 3 of them have said that they are facing this problem with Sarabhai, 2 with Intervet and 1 each with Vetnex Intas and Pfizer. However it is very significant to note that Virbac Is missing in the chart, an indication of good transportation system leading to accurate lead time .

Reason for Problem Reason ror problem

No. of stockist

14 12 10 8 6

Series1

12 8

4

10

2 0 fa lse com m itm e nt by VSE

fluctua tion in de m a nd

le a d tim e

Objective: - As these were the major problems stockists were facing, therefore it was interesting to find out the reasons behind these problems and that was the aim here. Result: - The major reasons here were false commitment of VSE with Stockist that he will help him in liquidating the stock so as to achieve his personal goals. Another reason was the problem of Lead time with Companies. Ideal frequency for stock updating (acc. To Stockist)

w eekly 24%

Ideal frequency

m onthly 41%

15 days 35%

Objective: - The objective here was to gauge the attitude of Stockist towards giving Stock updates to companies. I.e. what he thinks should be the Ideal frequency of giving stock updates to Companies.

Result: - 41% of them have said that stock updating exercise should be monthly, 35 % for Bi-monthly and 24 % of them have said that weekly exercise should be their. It is clear from this pie that 59 % of them are ready for bi-monthly and weekly stock updates. Reason for monthly stock updating

Reason for m onthly Com panie s choice 21%

cus tom 43%

tim e cons tr aint/cant change 36%

Objective: - As because 41% of the stockists were comfortable only with monthly stock updates, it was important to find out that why they feel that ideal frequency should be monthly and not bi-monthly or weekly? Result: - 43% of them said that since we have opened our business we are giving stock updates with this frequency and because every body gives stock updates monthly so we do. 21% of them said that it is company’s choice. Company neither asks nor do they have any kind of agreement with us for giving bi-monthly or weekly stock updates. It is important here to note is that 36% of them particularly big players have responded that because of time constraint they are not comfortable giving frequent stock updates.

Comfort Level with VSE, taking frequent stock updates C o m fo r t le v e l w ith V S E s n o t at all 15%

f u lly 28%

a lit t le 9%

ave r ag e 24%

m o r e t h an ave r ag e 24%

Objective: - Since Company does not have any ground level IT backup as such therefore much of the responsibility of taking frequent stock updates from Stockist rests on the shoulders of VSE. Because of this reason it is important to find out the comfortable level of Stockist with VSE taking frequent stock updates and that is precisely the objective here. Result: - only 15% not at all comfortable and 9% are little comfortable thus are the problem areas for the companies and rest 24% average comfort ability is more than average each and 28%are fully comfortable and are ready to give frequent stock updates to the VSEs of Company.

E-mail preference regarding Stock updates e-mail preference yes 29%

no 71%

Objective: - Here objective was to find out that how many of them prefer to send an e-mail to the Company regarding Stock updates. Result: - Unfortunately only 29% of them prefer to send e-mail to the company and rest of them were indifferent towards this question. However it has been also interpreted that in six months time stockists may be found comfortable with this exercise, as they have softwares to maintain stock updates but they are yet to be at home with them. Outcome of Persuasion for frequent stock updates

O u tc o m e s o f p e r s u a s io n Un - c o n v in c e d 27%

C o n v in c e d 73%

Objective: - As one of the objective of this project was to persuade the stockisits with the benefits of frequent stock updates and ultimately see whether they are encouraged to give stock updates after this persuasion or not.

Result: - Good news for the Company here is that 73% of them were convinced wit these benefits and were encouraged to exercise this activity bi-monthly or weekly. 27% of them were not convinced and were not ready to change.

Benefits Perceived Be ne fit pe rce iv e d

No. of Stockist

16 14 12 10 8 6 4 2

Series 1

15 10

9

0 decrease in holding charge

prevent over/understocking

low er payment burden

Objective: - Since 73% of the Stockist were convinced with the benefits of frequent stock updates it was important to find out that what the benefits, which they are valuing most and that is what the objective here. Result: - As we can see in the fig. prevention of over/under stocking is what they were valuing most. Lower payment burden and decrease in holding charges are some other benefits which can motivate them. Major Interpretation  No doubt, Stockist are facing Problems associated with Stock mismanagement but at the same time they also understand the Benefits of Stock Management because of which they are ready to give us Bi-monthly or weekly stock updates.  Because of Lack of Ground Level IT backup as such, it’s only VSE who can take us FORWARD.

Monitoring system:

As far as the monitoring system is concerned as it has come out in the survey that the environment at the stockists level is yet not IT favorable therefore the lead role in this connection has to played by the VSE. He is need to collect secondary sales information at the stockists level in a bimonthly manner that after every fifteen days and need to be submitted to the area manager who can synthesize all the information of all the stockists in a more specified and analytical manner and then he can put this information in the system via internet and thus information would be available to the strategic group of the company.

STOCKISTS

VSEs

AREA MANAGER Internet application

COMPANY HEAD-OFFICE

The VSE need to collect the secondary sales at individual stockist’s level and arrange this information in an excel spreadsheet in the following manner:

STOCK AND SALES STATEMENT NAME OF THE STOCKIST: ADDRESS: PART OF THE MONTH & YEAR:

Opening Stock Product Code

Product

Pack

Stock Breakages Return Closing Closing Secondary & Date from Receipts Stock Stock Sales Expiry Retailer

Price

(Units)

(Units)

(Units)

(Units)

(Units)

Value

(Units)

7

1(=5 of last month)

2

3

4

5

= 5x7

6=1+2+34-5

The Area Manager can synthesize all these information in an comprehensive manner and can track the secondary sales per product and can set up these data in an excel spreadsheet. However in order to track whether the information given by VSE about the individual stockist is accurate or not and at the same to check the informal distribution system that exists among the stockists[i.e As the major stockist orders in bulk he gets a discount from the company say a medicine trading at Rs 60 is offered to him at 55 ,he offers to the smaller ones at 57 and both are now in profit, so the bigger ones always orders taking the smaller ones into consideration].

The monitoring chart may be as follows:

C&F Agent Name: Name of the Stockists: Month: PRODUCT

PRODUCT CODE

PACK

PRICE

SALE FROM C&F[ primary sale]

SALE FROM STOCKISTS [secondary sales]

VARIANCE

However the area manager can represent the data in the following manner:

NAME OF THE AREA MANAGER:

STOCK & SALES STATEMENT FOR AREA MANAGER

H.Q. PART OF THE MONTH & YEAR: Product code

Total

Product

Pack

Price

Opening stock

Closing stock

Closing stock

Secondary sales

Secondary sales

(Units)

(Units)

(Value)

(Units)

(Value)

An Orientation Programme for the VSE

This perhaps is the most important part of this project. As because of the fact almost all the responsibilities of successful implementation of recommendations and strategies suggested in this report for the purpose of Secondary sales Monitoring System lies on the shoulders of VSEs, Their moral and high motivational levels are crucial for the Company. Keeping this fact in view an orientation programme has been prepared for the VSEs so that they can understand the benefits and logic of working on Secondaries. The major aim of this orientation programme is to make them understand that how work on Secondaries can simplify their Job and help them in achieving their own Objectives. Unlike traditional employees 21st centaury employees are not interested in knowing WHAT they are doing? They are more interested in knowing WHY they are doing? Let us see how this Orientation programme is going to explain to VSEs the reason, logic and Benefits of working on Secondaries. The first step of this orientation programme is to make them (VSEs) understand that what is the process of Secondary sales and how it’s monitoring is essential for the successful functioning of on Organization.

COMPANY

C&F AGENT

Primary Sales

STOCKIST Dispensing Secondary Sales Final Customer RETAILER

After explaining this process of Secondaries one can ask a simple question 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 do work 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 VSE itself, it is very important that they care for this job and do it more efficiently. For this it’s very important to make them understand what can be the consequences if they do not work or work on Secondary Sales. What if no work on Secondaries…………………………..????????

UNCONFIRMED SALE FORCAST

LEAST MONITORING OF PROMOTIONAL EFFORTS

NO IMPROVEMENT IN ROI OF STOCKIST

UN PLANNED OPERATIONAL NEEDS

What if No work on Secondaries………?? ????????

PAINS OF CHEQUE & CLAIM SETTLEMENTS

DUMPING ON RISE

HEAFTY CREDIT NOTES

MORE BACK ORDERS OR RECEIVABLES

Fig1: Various problems if a secondary sale is not being worked upon in an appropriate manner. As the chart shows there would be various problems arising if the secondaries are not worked upon.Infact one can say that life would be very difficult to deal with and even if one of the blocks above continue to grow the results could be very lethal. If secondaries are not being properly monitored the operational needs cannot be properly estimated which would result in unnecessary and huge dumping environment which in turn would result in hefty credit notes .all these would result in backorders or receivables back from the stockist if the dumped stock is not being cleared and the vse will have to undergo the pain of cheque and claims settlement whereby he will be in a fix position between the company and the stockist .Moreover he will not be able to increase the ROI of Stockists and ultimately his relationship would be hampered. On the other hand life and business can be very enjoyable if one works on secondaries as because then every thing would be very systematic and proper and there would be very less problems as all the evils associated above will not arise at all

would be ultimately result in profits which is the main crux of any business and perhaps the righteous parameter to define success. The Orientation programme ends with a very interesting picture which actually summarizes the entire concept and once again focuses the kind of situation if secondaries are not being properly monitored. Works on Secondaries

W is h , I h a d w o rk e d o n s e c o n d a rie s

Losing the grip on the market

Doesn’t Care for Secondaries ?????????????

Where I want to be ???

As the picture shows the one who works on secondaries is enjoying life at the top of the mountain i.e. he is enjoying a top market share as every thing is proper whereas the one who has not cared for the secondaries has been losing the grip on the market and now is in a very lethal position and feeling that he must had worked on secondaries but perhaps he understood it at much latter stage when very little can be done. The picture ends with a query “where I want to be?” As one has to decide how he would carry his work and face the resultant consequence.

Product Marketing Plan Monitoring System

Product Marketing Plans

Introduction and objective: Product Marketing plan may be rightly regarded as the most applied and successful marketing strategies .It directly impacts on the behaviour of customers targeted, and the desired attitude to the product will follow. However it may be defined as: Product Marketing Plans may be defined as a range of tactical marketing techniques designed within a strategic framework to add value to a product in order to achieve specific sales and marketing objectives. It may be further mentioned that the objective that actually designs the product marketing plans may be varied,however some of the core objectives 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 key parameters of a product marketing plan is stated below. A product marketing plan is a very structured and logical process which can be basically divided into three stages: 1> Feasibility. 2>Checking. 3> Implementation.

FEASIBILITY Structuring the concepts and checking its feasibility against the following vital parameters: BUDGET, TIMINGS, COMMUNICATION, LOGISTICS, LEGALITIES.

CHECKING

CHECKING CHECKING

Short listing the concepts, creating the outline plans andCHECKING finalizing copy and design, setting success criterion, communication materials, offer materials, administration and so on.

IMPLEMENTATION

Making a detailed operational plan, running the operations and monitoring and evaluating results against the success criterion and brief.

Fig: stages of product marketing plans

Monitoring is a part of the Implementation stage of the product marketing plans.

Survey Results [Product Marketing Plans] 1. The different product marketing plans meant for the retailers which are currently in the market are described below in a tabular manner stating the company and the product on which the plan is on, the details of the plan and the reach i.e. the no. of retailers who know about these schemes, the total sample size in this survey is 50. company

Virbac

product

Osteovet Nilverm Capsola

Vetnex Flupor

Intas

Cal shakti I.V.Fluid

Intervet Butox

Scheme details

Source [No. of Retailers] 6 cases: steel glass/ 5cases : 45/1 flask 1 50 units:6 steel glass 6 cases:umbrella,12 cases: 44 lunch box 40 Pearl pet on purchase of 3 Rs.3500 5 cases: I kg basmati rice 2 cases: 1 kg basmati rice

14 1 44

……..

Biomilk

Duke T-shirt on purchase of Rs.4500 5 cases= blanket of Rs.525

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

12

2. As far as the source of information is concerned the survey raises that the stockist is the major source of information [70%] while the VSE has only managed to secure 14% as a source of information to the retailers and 16% has been the company‘s leaflets .

S o u rce o f in fo rm a tio n

le tte r 16% re p re se n ta tive 14% sto ckist 70%

3. The controlling parameter more or less has been the proof of purchase i.e. the bill. 4. As far as the likeability of the gifts is concerned, the respondents have been asked to allocate marks out of 5 to the various companies according to their choice. The results are as follows: 250

230

230

230

230

230

200 174

185

167

150

127 67.5

i

t ab ar S

In

te r

ha

ve

fi z er P

ta s In

x et ne V

irb

ac

0

V

63

50 16 rs

50

th e

89

O

100

marks secured

full marks

As it is shown in the figure the red line justifies the full marks for the individual companies which infact is the indicator of reach i.e. it denotes the no of retailers who have raised their choice for the said company eg if the red line shows marks of 230 it means 46 retailers [230/5=46] have information about the marketing plan of the said company and accordingly the have allocated marks.

Product marketing plan monitoring system: Thus Monitoring is a part of the Implementation stage of the product marketing plans. The principal objective of structuring a monitoring system is to not only observe but to provide specific and meaningful feedback to the planners on the marketing promotions by accessing the strengths and weakness of the specific promotions in terms of: 

Awareness and perception of promotion among the targeted group 

Stated behaviour of the targeted group. 

Stated Effect of the Marketing Promotions on targeted group Behavior. 

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 citied here that for better implementation of the marketing promotional plans each of them has some specific key performance indicators [KPI] which is in tune with the objective of the promotional plan and thus the monitoring system would be much more specific in that case.

The monitoring system is basically a step by step process which is constituted to logically observe and provide analytical feedback to the planners the various steps are as follows: Step 1: the first step is to observe the targeted group i.e. each product marketing plan has a specific group and therefore monitoring the targeted group is of vital importance. Here their past purchase behaviour regarding the product is being analyzed which can executed through their past sales records and accordingly a comparison can be constituted right from the initial stages of the plan.i.e their avg

business generation to the company and the figures during the execution of the marketing plans. Step 2: the second step is about monitoring the reach of the marketing plans, i.e. whether the information about the plans has been properly communicated to the targeted group or not.As it is very evident from the survey results that flow of communication is being distorted at the Stockists level therefore its is very significant for the proper implementation of the plan that the communication about the plans is being reached. Step3: observing the competitors reaction to the product marketing plan is of outmost importance. As because if the plan is being able to generate objectives competitor would definitely react and if he doesn’t it means that the marketing plan is not well enough to knock he competitors pie of market share. Step 4: a comparison of the sales figures would actually give the crux of the story i.e. to evaluate the pull of the plan on the sales figures and also a comparison of the figures before the implementation and during and after the plan would result in understanding the basics of the performance of the plan. Step 5: Checking the authencity of the source and the reason of sale is also very important to estimate the proper functioning of the marketing plan. Implementation. As far as the implementation of this monitoring system is concerned it would rests on the shoulders of the field staff i.e. the VSE as he is the person who actually can monitor these plans at the niche level and can also transfer this information in an analytical manner .The first step of observing the targeted group the vse may collect the needed data from the previous records and can prepare a comparatative sheet [a comparatative sheet in excel spreadsheet is being attached in the ‘appendices’ section of this report]whereby he can analyze the performance indicators

and can accordingly design his plan of action. Secondly in order to monitor the reach of the plan the vse has to make sure that the targeted group is being properly communicated. Regarding these he may arrange a trade show where at one go the entire group is being approached or feedback may be taken from the individual members by adopting the questionnaire methodology and accordingly he may

collect information about the competitor’s reaction to the specific product marketing plan. In addition to these a excel sheet can be systhesized to make a study between the avg sale of the said product ,the total sale in that product category and the sales that is generated during the time of the plan and accordingly the vital information can be stressed.This entire activity needed to carried at a niche level within a time frame of 3o days and designing the period as the plan grows. For this purpose simple a simple excel spreadsheet is being prepared which is being attached in the appendices section, however the main crux is being presented here in a tabular manner

NAME OF THE RETAILER

MOBILE NO

REACHED?

AWARENESS LEVEL

COMPETITORS REACTION

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 to the planners as the can analyze it and can bring logical modifications if needed. For example if we present some hypothetical figures in a comparatative chart the strength of the plan can be easily accessed.

R E VE N U E 7 0 ,0 0 0 6 0 ,0 0 0 5 0 ,0 0 0 4 0 ,0 0 0 3 0 ,0 0 0 2 0 ,0 0 0 1 0 ,0 0 0 0 A V G SA LES

TO TA L SA LES

REV ENUE

SA LES D U R IN G C A M P A IG N

QUESTIONARRIES

Institute of Marketing & management Qutab Institutional Area, New Delhi-110016 QUESTIONNAIRE

Please 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? Type Bacterial Infection Deworming Cases Uterine Infection Infertility due to Nutritional Deficiency Any Other Disease Total

No. of cases

5. In case of following classes which product do you prescribe most in Your Practice? Classes Premium-Antibiotics Antibiotics Endo parasites Ecto parasite NSAIDS Mineral Mixture Multi Vitamins

Pref-1

Pref-2

6. Which Company’s products do you generally prefer most in your Practice? a) Virbac b) Vetnex c) Sarabhai d) Pfizer e) Intas

f). Intervet

Pref-3

7. Please Rank (on a scale of 1-5) the following criteria for your Preference. (1-not important, 2-least important, 3-important, 4-more important, 5-Extremely important) Criteria Services Availability Quality Product Range Price

Ranking

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 Stationery Free Samples Any other

Ranking

13. How do you Rank (on the scale of 1-4) the following sources of knowledge and information? (1-least important, 2-important, 3-more important, 4-extremely important) Sources Veterinary Journal Product Catalogue Seminars Any Others______________

Ranking

14. Please Rank the Representative of the following companies on the following Parameters. (1-poor, 2-average,3-good,4-V.good,5-excellent) Parameters No. of Visits Behavior Product Knowledge Appearance

Virbac

Vetnex

Pfizer

Intas

Sarabhai

15. In your view in order to improve the services which are areas of improvement (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-more important, 4-extremely important) Recognition Money Fame Personal Satisfaction Personal Information Name_______________________ Address________________________ _____________________________

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 e) Intas

b) Vetnex

c) Sarabhai

d) Pfizer

f). Intervet

4. How often the companies take stock updates from you/Tick the Problems you have ever faced with respective companies as mentioned in Table. (eg.Monthly, weekly, twice in a month, etc.) Company

Frequency

Overstocking

As per need

UnderStocking

Virbac Intas Sarabhai Pfizer Vetnex Intervet Natural Remedies Himalaya Drugs Indian Herbs Wockhardt Ayurvet

5. Why so (Regarding problems mentioned in table) a) Time of order d) Any other

b) lead time

c) fluctuations in demand

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 stock up dates? a) Yes

b) No

9. How comfortable are you with the Representative recording your stock updates frequently? a) Not at all

b) A little

d) More than average

c) Average e) fully

10. Rank (on the scale of 1-4) the following benefits of giving frequent stock updates to the companies (1-least important, 2-Important, 3-more important, 4-extremely important) Benefits Decrease in lead time Decrease in holding charges Preventing over/under-stocking Save interest Improve relation with customer Lower payment burden Personal Information Name___________________ Contact No._________________

Ranking

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 of prescriptions on per day basis? Preferences Preference-1 Preference-2 Preference-3

Name

Contact No.

No. of Prescription

3. Which Medicines do you sell most for the following Classes? Classes Premium-Antibiotics Antibiotics Endo-parasiticides Ecto-parasiticides NSAIDs Mineral Mixture Multi-Vitamins

Preference-1

Preference-2

4. Can you suggest us some information about new veterinarians in your region? ____________________________________________________________

Name of Retailer ________________ Address_______________________ _____________________________

Institute of Marketing & management Qutab 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 during last 4 Months? Company Name

Product

Scheme Details

Monitoring parameter

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? Please give the marks out of 5? Company Name Virbac Vetnex Pfizer Sarabhai Intervet Any other

Rank

5. Please suggest some reasons for your above markings?

Name of Retailer ________________ Address_______________________ _____________________________

Limitation of the study

As far as limitation is concerned it may mentioned here that time frame was a major constraint particularly for the market survey as because studying and diagnosing the market needs a lot of time but the time constraint made the survey suffered a bit. It may be also mentioned here that as the survey includes a lot of traveling problems were faced regarding the travel conveyance, as in the villages mostly it was a great problem and it made the work suffer a lot.

Apart from all these there has been quite a few problems face which acted as a limitation for the study e.g. on monetary grounds, and also the different strikes and riots in Punjab also offered resistance for the study to be undertaken.

Although efforts have been taken to meet and overcome these limitations yet perhaps if they had not been there more life colud be brought 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.