HP SONOS

AIM

With SONOS 100, To re-establish itself in

the no-hospital segment.

Presented by
GROUP_E
PGPX-2016-17.

To use current DR or to recruit MRs

OR
to
go
with
both
?
Advantages
Direct Sales Representatives (DR)

Marketing Representatives (MR)

- A dedicated imaging sales force in -Experienced salespeople with great

place.
negotiating skills.
-Direct sales rep can put extra effort -Detailed knowledge of physician
in developing a new market.
reimbursement procedures
-Customers specially non-hospitals
prefer direct representation.

-MRs are locally recruited targeted

for a specific geography

-Build long term relationship with -Well equipped to sell in the nonclient.
hospital market.
-No need to train and monitor.
-42 Direct Sales Representatives.
-Expertise in demos & technicalities.
-Can capitalize on any trade-up
potential which is crucial to HP.

Future Road Map

85% of non-hospital market is concentrated in 15 major
cities for which Direct Sales Representatives should be
used.
For the rest of the market of 15% MRs should be recruited
locally.
To make the sale of SONOS 100 attractive for Direct Reps,
the commission and compensation package should be
modified.
The final commission for any Direct Rep should be
proportional to the number of SONOS 100 sold.
Sales of SONOS 100 should be at least 30% of total sales
for any Direct Reps to get 30% of commission.
MRs should be hired locally and trained

SWOT Analysis
S/O

-No. 2 as per survey

-Priced as best valued in its
class.
-Brand name.
-42
dedicated
sales
representatives.
-Market leaders in cardiology.
-Large and fast growing non
hospital segment
-SONOS 100 can be a
potential International product.
-Target hospitals running on
tight budget.
-15 cities contribute 85% of
sales revenue

W/T

-Sales are not streamlined.

-DR do not prioritize SONOS
100 sales as it is cheaper and
earns less commission.
-Budget constraints.

SWOT

-High Competition.
-Already lost market share.
-Price
fluctuation
from
competition

4Ps
Pricing

Product
-SONOS 100 is highly competent
product.
-No. 2 in a recent survey
-Best value by its price in its
class .

-$55000 per unit.

-Second cheapest product in
-category.
Placement

4Ps

Place
-Large and fast growing non
-hospital segment
-SONOS 100 can be a potential
International product.
-Target hospitals running on tight
budget.
-15 cities contribute 85% of
sales revenue

its

-Non hospital segment comprising

of physicians.
-Formulate DR, MR and a
combined sales path
-Revised
compensation/commission
structure for DR to increase focus
for SONOS 100.
-Rental/ EMI schemes for SONOS
100.
-Revised commission structure for

Revised commission structure for DR

Minimum 30% of sales for any DSR should come from SONOS
100.
To get 100% commission from all the total sales, Every DRs
sales revenue should be comprised of minimum 30% from
SONOS 100 sales.
In case a DR is able to sell only 25-29% of SONOS then he will
get only 90% of entitled commission.
In case a DR is able to sell only 20-24% of SONOS then he will
get only 80% of entitled commission.
In case a DR is able to sell less than 20% of SONOS then he will
get only 70% of entitled commission.