Roche Diagnostics

ROCHE DIAGONOSTICS SYSTEMS CASE STUDY DATE – 15/09/09

Presented by:-

AVICK BISWAS I.S.B&M, BANGALORE

SUMMARY OF THE CASE • Roche Diagnostics systems Is the US affiliated, Swiss based Roche group. • It specializes in medical and testing equipments used by medical staff for diagnostics purposes and by pharmaceutical firms for product testing. • The case focuses: 1. Developing measures of customer satisfaction. 2. The link between customer satisfaction and profitability. • The concept of market research. • The learning object of the ROCHE group. • The innovative approach. • Customer centric vision of the group.

HISTORY OF ROCHE GROUP • • •

Roche ltd was founded on 1st oct 1896 by Fritz Hoffmann. Roche is one of the world's largest research-based healthcare groups. For more than 113 years Roche has played a pioneering role in healthcare.

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It has around 80,080 employees active in more than 150 countries.

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In 1905, Roche opened its first office in the united states.

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In 1933, Roche introduced Saridon, a pain reliever.

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In 1969 started a Global Division of F. Hoffmann- Roche , with Headquarter in Switzerland.

COMPANY STRUCTURE

BUSINESS AREAS OF DIAGNOSTICS

DIAGNOSTICS SHARE

ROCHE GROUP SALES

GROWTH & DEVELOPMENT •

Innovators of the product.

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Services for early detection, prevention diagnosis and treatment.

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Contribute on a broad range to improve people’s health and quality of life.

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Roche Diagnostics is the World’s leading service provider of diagnostics systems.

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Roche is providing the first product that are tailored to the needs of specific patient groups.

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Roche has Pharma Research centers around the world with more than 2500 scientists.

MARKET SHARE

ORIGIN OF MATERIALS

COMPANIES INTERNAL STRENGTH & WEAKNESSES INTERNAL STRENGTHS: •

Valuing our employees.

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Providing training to the employees.

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Respect for individual efforts.

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Continuous improvement.

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More focus on R & D.

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Commitment to Responsibility.

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Commitment to Performance.

COMPANIES INTERNAL STRENGTH

COMPANIES INTERNAL WEAKNESSES INTERNAL WEAKNESS: •

High pressure of cost.

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Pressure of developing new Unmet medical needs.

CORPORATE LEVEL STRATEGY •

To develop innovative productive products and services that address unmet medical needs.

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Creating value for all our stakeholders.

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Use of molecular insights and diagnostic tests to better tailor medicines and manage a patient’s disease.

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Roche's commitment to all stakeholders is reflected in its operating businesses' focus on value creation.

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Roche’s competitive edge is driving personalized healthcare in-house and with selected partners.

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Improved research and development.

IMPROVED INNOVATIONS

BUSINESS LEVEL STATEGY • Service to patients and customers- A prime objective of Roche is to meet the patients’ and customers’ needs for high quality products and services. • Respect for the individual- They believe that the success of their company depends on the combined talents and performance of dedicated employees. • Commitment to performance- They aim to continuously create value for their stakeholders and to achieve sustainable, high profitability. • Continuous Improvement- They are committed to benchmarking their principles and achievements against the industry and best practice. • Commitment to Innovation- Innovation against all aspects of their business is the key to their success. They see change as an opportunity . • Responsible Marketing- The promotion and sale of pharmaceutical and diagnostics products is highly regulated.

BENEFITS FOR ALL

EXTERNAL ENVIROMENTAL SOURROUNDINGS • Improvement in Lifestyle of People. • Improved Education facilities. • Rising Government Responsibility. • Increase in Substitutes . • Commitment to Society. • Commitment to the Environment.

SWOT ANALYSIS • STRENGTH : • A new, innovative product or service. • Quality processes and procedures. • Roche monopoly “KING” in the production and distribution of the drug known as Tamiflu. • Roche is the only drug company authorized to manufacture the drug “Tamiflu”. • First time in history they brought Diagnosis & therapy to one common level i.e.. “Molecular level”.

COMPETITIVE ADVANTAGES

WEAKNESSES • Lack of marketing expertise. • Customer care unit was not up to the mark. • Initial customer satisfaction research was not transparent. • Online method of feedback was time-consuming.

OPPORTUNITIES • A new international market. • Growing, Aging population • Emerging markets • Demand for personalized healthcare • Demand for faster services. • Demand for automation and process optimization.

THREATS • Challenging market environment with large no of competitors : • • • • • •

Siemens. General Electrics. Philips. Sanyo. Abbott laboratories. Sanofi Aventis.

RECOMMENDATIONS •

Availability of more toll-free numbers for customers to interact.

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A better customer support service.

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Take the feedback from the customer and take the actions as soon as possible.

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Eliminate the automated voice response system completely.

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Make personnel available to answer to all queries 24*7.

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Keep on calling existing customers on regular intervals.

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Competent customer care executives/technical staff to handle customer queries.

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Quick and instant reply to customer queries & messages.

1. Analyze Roche diagnostic approach for improving customer satisfaction… • Descriptive approach. • Set up of new position. • Focus on direct interaction between company personnel and customer. • Conduct of market research. • Implementation of key driver analyze. • Initiating single group of service representative to where cross trained to provide ordinary consistent.

2. WHAT ARE PROS AND CONS OF BENCHMARKING SPECIFIC PERFORMANCE MEASURE… PROS : 1.It help in setting target. 2.It help in finding out how company is doing. 3.It help in finding out company going on right direction or not. 4.it help in setting performance standards of company. 5.Measure strength and weakness. 6.Increase efficiency and productivity. 7.Creating new business development strategies.

CONS : • Time consuming and expensive. • Tough process which needs expertise knowledge. • High risk. • My eat up significant resources of company .

3. WHY WOULD A LINKAGE BETWEEN CUSTOMER SATISFACTION AND PROFITIBILITY BE EXPECTED • If customers are satisfied with the company, then it will increase the sale and which will result in increase of profits for the company. • If customers are satisfied with the company, then they will be loyal to the company. • More satisfied customers help in creating goodwill for the company.

4. Develop a ten item vertical marketing audit on customer satisfaction for Roche diagnostic… •

Are you satisfied with Roche diagnostic?

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Are you satisfied with services after installation?

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Are you satisfied with customer support system?

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Are you satisfied with price of equipments?

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It is easy to handle the product?

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What do you recommend to others about our product?

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Would you purchase our product again?

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How long you have been customer of our company?

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Where you put our company on scale of 1 to 10?