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B2B Group11

This document provides a case analysis for Dendrite International, a $23 million software supplier to pharmaceutical companies. It identifies that changes in the pharmaceutical industry could impact Dendrite's business model. The document analyzes three options for Dendrite's future growth: 1) target new markets, 2) expand offerings within pharmaceutical firms, or 3) continue focusing on sales applications. It recommends option 2 to expand within pharmaceutical firms by penetrating new verticals like clinical development and brand marketing, in order to increase value and evolve with changing market dynamics. It also recommends continuing with existing business manager roles rather than adding operations managers.

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Ambika Singh
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173 views4 pages

B2B Group11

This document provides a case analysis for Dendrite International, a $23 million software supplier to pharmaceutical companies. It identifies that changes in the pharmaceutical industry could impact Dendrite's business model. The document analyzes three options for Dendrite's future growth: 1) target new markets, 2) expand offerings within pharmaceutical firms, or 3) continue focusing on sales applications. It recommends option 2 to expand within pharmaceutical firms by penetrating new verticals like clinical development and brand marketing, in order to increase value and evolve with changing market dynamics. It also recommends continuing with existing business manager roles rather than adding operations managers.

Uploaded by

Ambika Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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B2B MARKETING

Case Analysis
Dendrite International
Under the guidance of:
Prof. Bipul Kumar
Professor, Marketing Area
IIM Indore

Submitted by: Group 11-Section A


Ambika Ratnoo
Anshik Yadav
Bhavna Manchanda
Jyotika Thawani
Rishi Raj
Sparsha C Raj
Sumit Kumar

INDIAN INSTITUTE OF MANAGEMENT, INDORE

Identification of problemDendrite International is a $23 million (1992 revenues) supplier of sales


automation software to pharmaceuticals companies in Europe, Japan, and the
United States. The firm's strategy has depended on being a full-service supplier
to multinational firms. Impending changes in the pharmaceuticals industry, as
well as technological and competitive developments, have raised issues
concerning the best means of future growth and accompanying accountmanagement procedures.
Following developments in United States, Europe and Japan, there are high
chances of reduction in sales forces US healthcare moving towards managed-care facilities,resulting in pharma
sales force downsizing in US
Price control on drugs in European countries
In Japan, fixed invoice pricing mandated and wholesaler rebating abolished
John Bailye, president of Dendrite International, is considering changes and has
to make decisions for firms further growth. The firm has to make decisions
regarding following issues:

Technology and customer concerns are dynamic. Pharmaceutical company


is poised for a shift in many companies. What can be done with the
product offering?
Restructuring the sales effort and its impact on product delivery, service
quality and cost.
Considering adding an operation manager to client teams to handle day to
day technical and customer support issue
Reconsideration of the role of BM manager

Analysis of situation and problem:

Option 1: Target multiple markets besides pharmaceuticals


Pros

Increasing opportunities
Focusing on long term growth
Customizable formats for various
industries
Changing economies of the

Cons
Cost: $10 Million
Lacks experience in other
industries and needs to build
capabilities
Threat from existing big players

current market (Diversifying


uncertainty)
Diversification can be beneficial
due to surge in the competition
in pharmaceutical sector

of the industry

Option 2: Expand into other functional areas within pharmaceutical firms


Pros

As interdependency among
different departments is
increasing, opportunities to
expand into various verticals of
pharmaceutical sector are
growing
Capabilities like Path
dependency and handling critical
notes in evolving networks
Opportunity due to need of
region specific products
Cost: $2-$5 million

Cons
Severe competition from bigger
firms
Rise in the indirect competition
due to the long standing
relationships, that competitors
have with large Multinational
Information Consulting Firms,
serving their clients
Operations are becoming
complex on the level of roles and
responsibilities

Option 3: Continue concentrating on sales application and product enhancement


Pros
Cons

Increased value of company to


clients
Europe and Japan still immature
for sales automation
Overprotective about database
and limiting the extent of
vendors into the organization
Restriction on long term growth
due to limited market
opportunities

Recommendations:
We recommend Option 2 i.e. Expand into other functional areas within
pharmaceutical firms. Opportunities are available in the different verticals of
the pharmaceutical sector in the long run. Penetration in categories such as
clinical development, brand marketing, customer management, sales
effectiveness and compliance management is essential taking into consideration

changing market dynamics and integrated sales requirement of different


categories. It will increase overall brand value of the firm in the pharmaceutical
sector and help in evolving from a sales planning to a management information
tool at clients.
Adding another level of Operations Manager will lead to one more layer of
manager. Thus , we recommend to continue with the existing job role of BMs and
not include Operations Manager.
A BM can impact the product configuration and deliverables, recognize the true
costs of postsale service, and establish relationships with the other client
personnel who get involved before a contract is signed but who tend not to
interact with our client teams after the contract is signed leading to stronger
client relationship.

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