INSTITUTE OF MANAGEMENT TECHNOLOGY HYDERABAD
CASE STUDY ON
“LAURS&BRIDZ:IMPLEMENTATION OF A CUSTOMER RELATIONSHIP MANAGEMENT SOLUTION”
VIJETH S 18A3HP603
YASH SHRIVASTAVA 18A1HP095
SIDDHARTH K 18A3HP638
SAI BHARDWAJ 18A3HP645
VIPAL PRASHANTH 18A3HP615
SAKSHI MUNDHRA 18A3HP611
SOWMYA ALUR 18A3HP626
Submitted to – Dr. Rambalak Yadav
Date – 29th July 2018
LAURS &BRIDZ:IMPLEMENTATION OF CUSTOMER RELATIONSHIP MANAGEMENT SOLUTION
In today’s time Customer Relationship Management(CRM) is an essential part of any business. Here we will be talking about CRM implementation in LAURS; BRIDZ, founded by Manoj Chaudhary. LAURS ; BRIDZ has been in the pharmaceutical business since 2011 with a team of 7 and an initial investment of ?10 Million. It has successfully grown with a revenue of ?402.7 Million in the Northern Indian in 2016 and aiming to grow up to ?550 Million in 2017. They further plan to expand their business in other parts of India by 2020.
Since the company grew exponentially over a period of time, it had to maintain a wide database of physicians, pharmacy retailers and stockists so that it could be used towards better business practices and this is where Customer Relationship Management came into picture.
With increase in competition and government regulations in place, it is important for pharmaceutical companies to position themselves in the market. Customer relationship management helped the company by giving them the database they require to manage all the customer data in a given amount of time which gives them a wide opportunity to cover many clients in a small amount of time. It was important for pharmaceutical companies to understand purchase patterns, stock cycles etc to have an edge over competitors which was very difficult.
CRM SOLUTIONS IN PHARMACEUTICAL INDUSTRY
CRM solutions provide essential tools to automate and integrate different process of pharmaceutical industry like sales and marketing. CRM enables companies to increase contact with customers (physicians, retailers, stockists) and health care providers. It helps to track clients and accordingly provide preferences.
CRM features allow centralized database system which is available to the marketing and sales team. Hence it enables representatives of the company to be up-to-date about customers and their demands. CRM gives new insights of sales and helps to eliminate inventory related issues. CRM empowers pharmaceutical company to enhance their sales target, productivity and relation with consumer.
Importance of CRM and the need to implement CRM by the pharmaceutical companies
Customer relationship management (CRM) helps the pharma companies to handle large amounts of client data.
With increase in competition and regulations imposed by the government, it is important for the pharma companies to monitor and optimize their processes, CRM helps to achieve this seamlessly.
It helps the pharmaceutical industry to generate more revenue as the business processes of the company can be automated and integrated.
CRM helps the companies to improve their engagement and relationship with physicians, retailers and stockists.
CRM aids Medical Representatives (MR) to record product awareness of the physicians which will in turn help them to present the features and details of the new product.
DIRECT EFFECT OF CRM ON THE COMPANY:
Before CRM After CRM
The company had aggressive product selling and promotions. The selling was seamless.
Traditional/missionary selling was followed which resulted in reduced sales. Sales increased by monitoring and measuring promotions and optimizing campaign management.
Less contact with the physicians, they couldn’t develop better relationships with them. They were able to network better and develop good relationships with the physicians.
They spent less time and failed to meet their sales targets. They spent optimal time per customer hence boosting their productivity.
INDIRECT EFFECT OF CRM ON THE COMPANY:
Medical Representatives(MR) were earlier frustrated and lacked insight in the organisation. After the introduction of CRM, they started understanding the consumers’ behaviour and needs.
It enabled the consumers and the physicians to learn more about their products.(Consumer awareness)
The company adopted technological methods for selling products which increased its competition at retail pharmacy and stocklist levels.
Year 2012 2013 2014 2015 2016 2017 (projected)
Total Revenue 70.4 128.3 212.55 278.8 402.7 550
Cost of Sales 19.01 33.36 54.2 71.02 95.22 125
Gross Profit 51.39 94.94 158.35 207.78 307.48 425
Salary and field expenses 24.64 51.32 88.35 118.5 160.2 210
Marketing and Business Development Expenses 5.63 11.5 17.4 24.1 32.6 42
Other Expenses 2.3 4.9 8.1 13.6 21.15 32
Net Profit/loss 18.82 27.22 44.5 51.58 93.53 140
Which CRM should the company select and why?
Since we have a projected profit of Rs.140 million for the year 2017 and a fixed budget of Rs.50 million for the CRM solutions, the company LAURS ; BRIDZ can easily afford any of the available CRM solutions while accounting for expenses relating to procurement of tablets, internet and training costs.
The available options are CRMNEXT, PROPHET CRM, ADAMI CRM and VEEVE CRM. Out of these, the main ones to be considered are
Large enterprise edition of CRMNEXT
Team edition of PROPHET CRM
But after analysing the above options, we conclude that the first one “Large enterprise edition of CRMNEXT” is the most suitable one as it provides not only the sub-module required by the sales and marketing team but also a services sub-module which includes additional features like SLA (service-level management), do-not-call management and account grouping.
What Possible challenges will the company face in implementing the CRM solutions, How can it mitigate potential challenges?
Might have to deploy a team solely for updating customer records and maintenance of those records.
Since CRM is a new technology being used, training is expected to be given to the medical representatives, area sales manager and zonal sales manager.
A special team working towards the redressal of customer grievances is to formed and maintained.
Mitigating the challenges:
To mitigate some of these challenges, the company can automate different business processes of marketing and sales, hence increase the efficiency of the company.
CRM solutions can be used to eliminate inventory issues.
Using CRM solutions also enables the company to track clients and map their preferences hence they can be targeted geographically.
CRM can also be used by the sales force to reduce the time spent on each call and thereby increase overall productivity.