[Solved] waters chromatography

Marketing II – Group Assignment Waters Chromatography Division: US field Sales Submitted by: Group 5,Section D ArkayanBagchi (2010PGP063) Harveer Singh (2010PGP449) Kaushlendra Singh (2010PGP150) Krishna Kishore Burugula (2010PGP163) Loveneesh Solanki (2010PGP170) RohanWagh (2010PGP311) Sameer Morey (2010PGP325) Protagonist The cases does not give any specific issues to be solved by any specific individual,the detail description of Ray Burnett’s day on job is to apprise the readers of the kind of issues involved in selling the HPLC instruments and related products.

It also highlights the concerns of salesman about the targets, how to achieve them and performance linked bonuses and incentives. It is an organization wide issue and the head of worldwide business operations needs to come up with the organization structure and policies to address the issues. The Vice president of worldwide business operations, Chane Graziano is responsible for the field operation worldwide and hence he is the protagonist of the case. Situation analysis Company and the competition

Waters chromatography is a worldwide leader in providing high performance liquid chromatography instruments and chemicals. It introduced the concept in the market and made the idea commercial. It delivered high performance system backed by strong technical sales and support force. It enjoyed the first mover advantage for the next ten years since its inception but with the entry of new players the competition increased and it was sold off to Millipore Corporation, where it acted as independent division under the company.

The newly entered competitors were also premium vendors and some of them were the arms of big corporations such as IBM, HP. The increasing presence of small, low-cost manufacturers is also a cause of concern. The worldwide market for HPLC is estimated at $350 million and expected to grow at 15% for the coming decade. Market and Customers Waters sold directly to the end users, most of which were technical and hence a need for technically capable sales person to interact with them. It sold mainly to Pharmaceutical companies, which was mature market and life sciences/biotechnology, which is a growing market.

It targeted analytical, research, clinical and quality control laboratories in these organizations. The customers not only demanded high performance products but were also looking for after sales service and maintenance. There has been an increased sensitivity to price in the market and overall image of Waters in the market is of a high premium product, which is not true for all of the company products, some products are actually more capable and cheaper than competitor’s products.

The customer purchase decisions are made on the basis of equipment capabilities, service and support and price. Issues The management’s view of the sales issue and field-based perceptions are different. For example, the management believes that the company has kept pace with the business but he market perception is that it has not and still a premium company which only a few can afford. Though there are products, which are priced competitively, but this has not been communicated to the customers adequately.

The sales people were technically equipped to begin with but with the increased competition the sales people hired did not have as much technical expertise as required and these affected the sales. There were training session for new hires but only a part of the training was imparted in the beginning and rest of the training was done in new few years. These people were effective only in short term and stayed only for 12 to 18 months, starting the entire cycle of training and giving a setback to rapport building with customers, which usually required one to three years.

The territories divided among the division were based on the fair division approach and hence no single division can have most of the developed territory. The business growth requires that the territory be divided into two or to enhance the job the sale people were rotated among the territories these causes a loss of rapport which the earlier sales force has built. The customer support was providing the technical support, request for information services and receiving the order over phone.

Despite the customer support, the sales representatives were spread thin in providing the support and resolving customer issues. This left a very little time for them to pursue new business development and the vacancy in National accounts manager (NAM) position added to the burden of the sales people. Chane Graziano intends to fill the NAM vacancy internally and make it a training platform for senior sales representative. The salary structure is also up for revision but nothing has been implemented yet. He has approached Ray Burnett for the same. Alternatives ) Hire more number of sales people and provide comprehensive training to decrease the burden on sales force along with filling up NAM vacancy 2) Hire additional service technicians to support the maintenance and services 3) The sales force that developed a particular territory to stay in charge on the territory after the division with additional hires and 4) Reorganize to separate sales and service operations along with further bifurcation of sale people that cater to technical and non-technical customers so that sales can pursue new business development. Hire more service technicians and sale people

Evaluation of Alternatives Hiring more number of sales people alone would not decrease the burden of sales force. The separation of sales and services is required to provide the sales force with the opportunity to pursue new business development opportunities to increase the market share. The hiring of sales and services should be backed by a comprehensive in-house training that will enable them to perform the job with desired standard and quality. Allowing sales force to keep there territory would keep the rapport with customers intact but with a considerable increase in the size it would not be possible to manage.

Reorgainzing the sale force and service as separate functions along with bifurcation of sales team in to teams that handle technical customers and non-technical customers will help in resolving the sale force issues. Proposition Waters chromatography should reorganize to separate sales and service operations along with further bifurcation of sale people that cater to technical and non-technical customers so that sales can pursue new business development. Hire more service technicians and sale people to support the functions. This will enable it in increasing the customer satisfaction, reach and generating sales.

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