Report on Konica Minolta Healthcare market in Delhi & U.P. East

Symbiosis Institute Of Management Studies 2015

SHASHANK TRIPATHI 1

Increasing Brand Awareness and Sales promotion Schemes of

Konica Minolta Health Care India Pvt. Ltd. In Delhi & UP East

A project Report submitted in partial fulfillment for the degree of Masters of

Business Administration

Submitted By

Shashank Tripathi

14020441186

Marketing & Operations (B-27)

Under the guidance of

Project Guide Project Mentor

Dr. Praveen Kumar Mr. Tanveer Siddique


SHASHANK TRIPATHI 2


SHASHANK TRIPATHI 3

Executive Summary

Konica Minolta Healthcare India Pvt. Ltd. is into the business of supplying imaging solutions for

medical purpose. There are various other players which are in the same domain. Since Konica

Minolta is the late entrant in the market because of legal issues in Japan, the Brand Awareness is

low in the sub-urban region, though the brand is well known globally. My project was to

promote the brand in UP-east & Delhi region by identifying the prospects and making them

aware about the various solutions offered by the brand in the medical imaging needs. The second

part of the project was to generate leads and if possible convert them into customers. Third part

of the project included what are the key decision making points which customers takes into

consideration when they buy a medical equipment.

This project report covers the deliverables in all the three aspects of the project and is specific to

the area mentioned above. This project report covers the various aspects of brand awareness

programs that Konica Minolta expected from us to deliver and the prospecting method which I

used to identify the potential customers. My internship started from product training in Mumbai

followed by market study in Delhi office under the guidance of my Mentor Mr. Tanveer

Siddique. We went to various existing customers and interviewed them to understand what their

expectations are with the products offered by the company and their future requirements. The

products offered by the company are more engineering intensive and customers understanding

about the product is also very high as the company operates in the B2B segment, it was very

important to understand the products working thoroughly. So I have also included some of the

situations where I felt the importance of the same.

The last part of the report contains the findings and the suggestions which I believe should be

applied to increase the Brand awareness in the specific region and will ultimately help the

organization to earn more customers.


SHASHANK TRIPATHI 4

DECLARATION BY STUDENT

I hereby declare that the project entitled “Increasing Brand Awareness and Sales promotion

Schemes of Konica Minolta Health Care India Pvt. Ltd. In Delhi & UP East” submitted for

the MBA Degree is my original work and the project has not formed the basis for the award of

any degree, fellowship or any other similar titles.

Name of the student: Shashank Tripathi

Signature of the Student:

Place: PUNE

Date: 31/07/2015


SHASHANK TRIPATHI 5

Acknowledgement

Apart from my personal efforts, the success of any project depends largely on the encouragement

and guidelines of many others. I would take this opportunity to express my gratitude to the

people who have been instrumental in the successful completion of this project.

This project could not have been completed without the guidance of my mentor Mr. Tanveer

Siddique who not only encouraged and helped me in understanding the business but also

challenged me throughout my internship. I would like to thank him for his tremendous support

and help.

I would like to thank Faculty Guide Prof. Dr. Praveen Kumar for his continuous support at

each and every step of my internship.

I would also like to thank Mr. Monil Kumar and Miss. Jenifer Dsouza my colleague at Konica

Minolta Healthcare India, for their efforts, opinion and understanding.

In the end I would like to thank Konica Minolta Healthcare India for providing me with an

opportunity to work on a project that gave me valuable exposure to the Marketing & Sales world.

The experience is certainly going to help me in my professional career.


SHASHANK TRIPATHI 6

Table of Content:

S.No. Topic Page No.

1. Introduction 7

- Konica Minolta, Inc. 7

- Sonoscape Company Profile 8

- DNP 9

- Products consider for study 10

2. Objectives 12

- Limitation of study 12

3. Research Methodology 13

- Prospecting through cold calling 14

4. Analysis & Interpretation 15

- Sales promotion schemes 16

- Comparison of products 17

- Analysis of New Delhi Market 18

- Analysis of Kanpur Market 20

- Analysis of Lucknow & Allahabad Market 23

5. Conclusion 25

6. Suggestion 28

7. Turnitin Report 29


SHASHANK TRIPATHI 7

Chapter 1

Introduction

Industry Overview:

The Indian medical device market is valued at USD3,226.0 mn in 2013. Despite strong

market growth rates, the market remains small with per capita spending of less than

USD3.0 which is a sign of huge potential in the market. The market is forecast to grow at

a 2013-2018 CAGR of 14.9% in local currency terms, equal to a US dollar CAGR of

15.0%, making India one of the fastest growing markets in the world.

Medical device imports supply around 77% of the market. Between 2009 and 2014,

imports grew at a CAGR of 11.5% in US dollar terms. It is believed that medical device

import performance will remain same as last year during 2015.

Konica Minolta

Konica Minolta Healthcare India Pvt. Ltd. (KMHI) is a sister concerned company of Konica

Minolta, Inc. which is a Japanese technology company headquartered

in Marunouchi,Chiyoda, Tokyo, with 49 offices around the globe. The company is into the

manufacturing of business and industrial imaging products, including copiers, laser printers,

multi-functional peripherals (MFPs) and digital print systems for the production printing market.

The company also makes medical and graphic imaging products, such as X-ray image processing

systems, color proofing systems, and X-ray film; photometers, 3-D digitizers, and other sensing

products used in healthcare business around the world and most of them are FDA approved: A

Third party medical equipment certifying agency from USA.

https://en.wikipedia.org/wiki/Marunouchi

https://en.wikipedia.org/wiki/Chiyoda,_Tokyo

https://en.wikipedia.org/wiki/Tokyo


SHASHANK TRIPATHI 8

Business Domains of M/s. Konica Minolta, Inc.

Konica Minolta Vision

To be acknowledged by our customers as a leader, utilizing innovative technology, quality

services and unique solutions, to add unmatched value to the global society always focused on

protecting the environment for a prosperous future generation.

We can understand from the vision statement of the company about their values and key focus

areas to achieve it which are Innovation, Quality, value and environment protection.

Konica Minolta Healthcare India Pvt. Ltd.

KMHI is a joint venture company between M/s. Konica Minolta Inc, and Mumbai based

healthcare company headed by Mr. Nikunj Gada & Mr. Jigar Gada who are also heading the

KMHI business in India. The major shareholder in the JV is M/s. Konica Minolta, Inc. hence the

marketing activity in India is all approved by the higher management at corporate office in


SHASHANK TRIPATHI 9

Japan. To monitor and oversee all the marketing activity in India they have designated one Sr.

Marketing manager from corporate office, who sits at Mumbai office in India.

KMHI imports X-ray imaging equipment’s and peripheral devices from Konica Minolta, Inc. and

sells all over India. The company has two offices in India i.e. one in Delhi and the other in

Mumbai. Company caters the pan India demand through dealer network.

The Company also promotes other brands product in the Ultrasound (Sonography) & printer

category in India and is the authorized importer of SONOSCAPE and DNP.

SonoScape has specialized itself in ultrasound diagnostic systems and probes. In 2004

SonoScape released the world’s first 15 inch LCD portable color Doppler Ultrasound System.

Shortly afterwards SonoScape’s product received FDA approval and CE certification and started

to be catering other markets all over the world.

Vision

The company has a vision of “caring for life through Innovation” and in working towards that

has developed and manufactured high quality medical equipment which has benefited the

society.

Mission

Inspired by the medical needs of the world the company wishes to dedicate itself in delivering

meaningful and accessible medical solutions to change lives for the better.

Awards and Recognitions:

1. Received "European Entrepreneurial Company 2008" award from FROST & SULLIVAN

2. Received "Flagship Company" award in the Medical Equipment Industry in China’2008

3. Received "Product Quality Leadership Award 2009" from FROST & SULLIVAN

4. Received the Reddot 2011 Product Design Award for S20 in Essen, Germany

5. Received "Ultrasound Market Growth Leadership Award, 2013" from FROST &

SULLIVAN

6. Received the iF product design award 2014 for S9 in Munich, Germany

7. Received "Company Of The Year In Ultrasound Market 2014" from FROST & SULLIVAN


SHASHANK TRIPATHI 10

DNP is a Japanese printing company established in 1876. The company caters to printing needs

in three areas which are as follows:

Information Communications

Lifestyle

Industrial Supplies

Electronics

Products Offered by KMHI in India

KMHI offers products from all the three above mentioned brands in the medical imaging,

printing, and sonography applications to software solutions for centralized medical image

database systems.

Some of the key products which were studied thoroughly for meeting the objective of the project

are mentioned below with their key differentiating features.

CR systems:

- Regius 110: This is an X-ray scanning systems which removes the process of developing

an x-ray with conventional manual method. The key differentiating feature of the product

is its rigid plate technology which reduced the no. of moving parts in the system which in

turn increases the durability of the product. The customer enjoys the benefit of low after

sales service cost. The product comes up with 2 years of warranty.

- Regius 110 HQ: This system has almost all the features of Regius110 plus has the

capability of scanning mammography based X-ray with highest resolution in the

category.

Printer:

- DRY PRO 873: This is an X-ray printing device capable of printing 180 plates per hour

at the resolution of 580 dpi (dots per inch) which is highest in the industry. The printer is



available to the customers in the two & three tray options. The trays are dedicated to the

customized size of the plates as per customer’s requirement.

Scanner & Printer Packages

- Regius-Sigma 25/60 : This system comes with the combo package of scanner, printer

and communication software. The nos. indicate the speed of scanning per hour. The

winning feature of the product is reduced moving parts and openable case which reduces

the after sales service cost to customer.

DR Systems:

- AERO DR ADVANTAGES

a. Both Wireless and Wired Possible

b. Light Weight – 2.9 kgs including battery

c. Easy Roaming due to wireless technology

d. Retrofit with existing X-ray system without modification

e. Low Power consumption

f. Improved Workflow – Image preview –less than 2 sec

Ultra Sound Equipment’s:

- Sonoscape A5: Company’s affordable budget ultrasound machine for basic gynecology

application. The equipment has one probe connectivity.

- Sonoscape SSI 4000: This is company’s mid-range ultrasound equipment with 3 probe

connectivity.



Chapter 2

Objectives

Objectives of the Project

To understand the Sales and Marketing process in the Business to Business segment.

To understand the different markets in UP-east and Delhi in terms of Brand awareness

and Product knowledge.

To find out the key order qualifying features which customers take into account while

selecting a medical equipment.

To find prospects in the respective markets and lead generation.

Limitation of the study:

This study is limited to the area (markets) of Delhi-East, Kanpur, Lucknow & Allahabad Only.

The products considered in the study are limited to the medical Imaging and printing category.

The study has also the limitation of time period as the study was conducted only for 2 months i.e

April & May of 2015.



Chapter 3

Research Methodology

Methodology: The RM technique used for the study is the Descriptive research.

Explanation: In the descriptive research methodology the method used for the study is survey

based where the researcher has to interview respondents personally and ask them questions to

come to a finding. As the medical equipment category is less explored area in the B2B segment,

the above method serves the purpose by taking primary data for the research. To meet the other

objectives of the study cold calling and focus group discussions were used as one the method to

meet the objectives of the study.

The survey was conducted in the month of April & May of 2015. The respondents interviewed

were all decision makers in top- or middle-management positions, typically marketing Managers,

Medical directors, Radiology Head or the promoters of their Business typically Doctors.

Sampling Plan

The sampling plan used for the study is selecting a small area in the city and contacting most of

the suspects in the area and then qualifying them as prospects. This method suits the research

best as you can cover all kind of hospitals, Diagnostic centers in a particular area and a better

picture of the situation can be chalked out.

Type of data used for research: Primary data

The objective of the study is such that to reach to certain findings and lead generation ultimately

it was the best suited method as per organizations marketing plan to address specific markets.

Data Bifurcation as per Industry type for the completion of project collected is as follows:

Type of Prospects No. beds in

Hospital/Center

No. of Respondents

Interviewed

Orthopedic Surgeons -NA- 37

Hospitals >=100 32

Hospitals <100 54

Diagnostic centers -NA- 14

Dealers -NA- 4

Tools used: the tools used for analyzing the data are basic analytical skills and MS- Excel



Prospecting through Cold calling

To find the suspect in a particular market internet search plays important role in getting their

contact nos. Some of the websites/App which were very useful in getting contact nos. was

www.Justdial.com, www.Sulekha.com & https://www.practo.com.

Once the contact no. of the suspect is searched then call the suspect as per below script.

INTRO:

Hello Mr./Mrs. [Name] if the name is known otherwise Sir/mam, This is Shashank Tripathi

from KMHI with emphasis on Konica.

Give slight pause and wait for their acknowledgement, continue after intro

I had called to understand about the current X-ray/Ultrasound equipment you are using and then

ask for the concerned person if he/ she is free for 2 minutes just want to inform them about the

various schemes KMHI is offering in the market for limited period.

1. If the response is a no or if he's not looking for X-ray equipment

It was great speaking with you. Would you know anyone who would be looking for affordable

X-ray equipment?

Can you share their details with me? And last question if they could help Konica Minolta on

understanding the deciding factors of purchase decision in a medical equipment purchase like

- After Sales service

- Cost

- Ease of Use

- Brand Name

- Film Cost

- Product Features

2. If the response is a yes:

Then ask for the suitable time when they will able to give some time for meeting to explain them

about the schemes and qualifying them as prospects.

http://www.justdial.com/

http://www.sulekha.com/

https://www.practo.com/



Chapter 4

Analysis & Interpretation

Product Training:

To do the research properly company provided me Product training in Mumbai and made me

understand how important it is to understand the features of the product and how to solve

customers’ problem by suggesting them the right product (Solution) as per their needs.

Importance of Product Training in B2B products

The first and the foremost important thing in the B2B segment is honing oneself with product

knowledge, its uses and how your product can solve customers’ problem. In B2B segment the

biggest advantage and disadvantage is that the customer knows about the products available in

the market to solve His/Her problem or at least He/She knows about the exact requirement of the

business. So to convince the customer you have to be very much through with the product

knowledge of your products and the competitor’s offerings in the same category.

What Product to be offered to whom matrix

Large

Hospitals

Middle

Hospitals

Small Hospitals

Imaging Centre

Orthopedic Centers

Suitable Products

Regius 210, Sonoscape A5 /

SSI-4000

Regius 110HQ, Sonoscape A5

Regius 110

Sigma 60 and Aero DR

Sigma 25



The above mentioned matrix was developed as a tool to pitch product to different types of

customers based on type of prospect.

Sales Promotion Schemes promoted for the Brand Awareness

- Regius Sigma with DRYPRO Sigma + 4 cassettes + 1 PC + Image pilot S/W

- Regius Sigma with 2 nos. DRYPRO Sigma + 4 cassettes + 1 PC + Image pilot S/W.

- Regius Sigma II with DRYPRO 873 and other peripheral devices

- Regius 110 with DRYPRO 873 and other peripheral devices

- Regius 110 with 2 nos. DRYPRO Sigma

- DRYPRO 873 free of cost with a commitment of using certain fixed amount of films per

year ( three year agreement with the customer)

- Exchange of current equipment with the new one from Konica (buy back offer)

Understanding:

KMHI understands the use of their products and hence promotes product through product

bundling and offers discount on the package. When surveying the market it was observed most

of the customers asked for the turn key solution for their imaging needs and in these scenarios

these customized packages come handy in convincing the customers.

The last promotion scheme gives a classical example of business revenue generated by the

company using the revenue from the consumable items used with the standard machine. The

printer was offered to the customer free of cost but with the commitment of using Konica’s film

for printing X-ray for the next 2-3 years based on the variant they wish to use.

Competitors of KMHI in India

In the product training we were made aware of various competitors which are operating in the

same category, some of which are KODAK also known as Carestream, Agfa, Fujifilm, Philips,

Cannon Inc, Samsung, KM, Perkin Elmer, Mindray etc.

Some of the key differential advantages of KMHI over the other brands are as follows:

- Highest resolution in the product category

- Best quality film and hence better X-ray images.

- Rigid Plate technology which ensures low maintenance cost.

- Original manufacturer of Scintillator technology used in digital radiography (DR).

- Mammography based X-ray technology available in the budget category CR.

- Oldest manufacturer of X-ray film and camera lens (scanner) which gives it edge over the

others.



Comparison of products by different manufacturers

Manufacturer Model Scanning speed

per hour First view time

No. of

cassettes

loaded at

once

Agfa CR25 72 75 1

Agfa CR75 100-116 75 10

Kodak-

Carestream

Directview CR

850 91 90 1

Kodak-

Carestream

Directview CR

950 76 75 8

Konica Regius 110 80 45 2

Konica Regius 210 110 45 4

Fujifilm Smart CR 56-90 60 1

Fujifilm XG5000 103-165 60 4



New Delhi

Since the market size of Delhi is huge and has lot of potential which we can see from the fact

that the number of hospital beds in Delhi increased from 23,000 in 1995 to over 40,000 in 2005

with the private sector accounting for almost 40% of the total healthcare industry .The

methodology used for the research is direct marketing and identification of prospects. In the

process of research more than 30 respondents were interviewed in the month of April’15 and

were asked about the feedback on the current system they are using for the X-ray imaging and

what are their future requirements. To understand the market from the dealer point of view 2

dealers were also interviewed.

Details of 30 respondents


Hospital/Center

No. of Respondents

Interviewed


Hospitals >=100 6

Hospitals <100 10


Dealers -NA- 2

- In response to the question about the current system they are using following data was

observed.

Manually 13%

Carestream 34%

Fujifilm 13%

Agfa 20%

Konica 7%

Outsource 13%

Different brands equipment %age- Delhi

Manually Carestream Fujifilm Agfa Konica Outsource



It was observed that the market was equally favorable to all the brands with Carestream leading

the share in Delhi east and Konica was having 7% of the share. The reason behind low market

share of Konica is actually the late entry in the market whereas Carestream (Kodak) is present in

the market from 2002.

- On asking about the future requirements of the hospitals/diagnostic centers, following

response were observed.

Most of the customers were satisfied with the current equipment.

Some of the customers who were having more than 4 year old equipment were

looking for change.

On informing about the various sales promotion schemes from Konica Minolta,

some of them showed interest and even two prospects actually asked for quotation

because they were looking for X-ray equipment.

It was also observed while talking to X-ray technicians that they find it very easy

to use Fujifilm equipment’s.

- When asked about the Key features they take into account while selecting an equipment

following response were observed

It was observed that product features, after sales service and film cost were few deciding factors

while selecting a medical equipment. Though most of them were little apprehensive about the

cost as one of the deciding factor but when asked specifically about the cost then most of them

said they consider cost as a deciding factor once they are satisfied with the other factors. So if

two brands are at par on the above mentioned factors then the cost plays a role in deciding the

purchase.

8

7

6

2

3

4

0 1 2 3 4 5 6 7 8 9

AFTER SALES SERVICE

PRODUCT FEATURES

COST

EASE OF USE

BRAND NAME

FILM COST

Deciding factors in purchase decision- Delhi



Kanpur

Kanpur is a business hub of U.P. and the Healthcare industry of Kanpur is in the growth stage.

There are lot of Pvt. Hospitals coming up in the city which are getting approvals from Govt. The

city is also home to various private practitioners in the field of Orthopedics and Gynecology. The

city attracts patients from the nearby small cities like Unnao and Fatehpur because of the

presence of latest technology with various Hospitals. Since the no. of Hospitals in the city are

larger in nos. the method of prospecting was done by cold calling, direct marketing & references

from the other prospects. In the process of meeting the objectives of the project 70 respondents

and one dealer were interviewed and were informed about the KMHI’s product offerings and the

sales promotion schemes.

Detail of 70 respondents


Hospital/Center

No. of Respondents

Interviewed


Hospitals >=100 15

Hospitals <100 28


Dealers -NA- 1


observed.

manually 46%

Fujifilm 31%

Agfa 3%

Carestream 17%

Konica 3%

Different Brand equipment %age- Kanpur

Kanpur

manually

Fujifilm

Agfa

Carestream

Konica



It was observed from the data that the Fujifilm was leading the market with the highest market

share and then 46 % of the respondents were doing X-ray manually. On observing the data in

details it was observed that most of the small hospitals/ orthopedic surgeons were doing the X-

ray manually as they were not having enough per day requirement i.e 3 to 12 X-rays per day.

Konica Minolta’s equipment were less known in the market and there were only two users who

were using our equipment. We can see from the data that Agfa has a very small market share in

the pie. We can deduce that as Agfa gives the thermal printing films which are not very good for

future reference and that is main cause of losing out on business.



Most of the customers were satisfied with the after sales service of Fujifilm and

hence were not looking for change. One of the respondent was even brand

advocate of Fujifilm but showed interest in the schemes promoted by KMHI.


looking for change and showed interest in the scheme of buy back offer from

KMHI.

Some of the prospects who were doing manual X-ray said they will change to CR

system in one or two years and hence asked for the product specs and price.

On surveying the city and promotion of schemes, total of 3 leads were generated and key

prospects were listed which can be converted to customers in the future.

- Diagnostic centers

1. Vishal Diagnostic centers

2. Paliwal Diagnostic centers

3. Vikas Diagnostic centers

4. Ratan Diagnostic centers

5. Gyan Diagnostic centers

- Nursing homes

1. Priya Nursing home

2. Anjali Nursing Home

3. Bhargava Hospital

4. Santosh Hospital

- Hospitals

1. Vandana Raj hospital

2. Krishana Hospital

3. North Star Hospital

4. Vedanta Hospital

5. Prakhar Hospital

6. Madhuraj Hospital

7. Madhulok Hospitals

8. Gasto liver

9. Regency Hospital



- When asked about the key deciding factor while selecting medical equipment the

following response was observed as the most critical features ranked as no. 1.

In Kanpur it was observed that after sales service, Film cost and product features were ranked as

no. 1 by various respondents. The film cost is actually the cost of the film which gets used for

printing X-rays. As the patients in Kanpur come from various small cities it was compulsory for

the hospitals to give them the printed report of their X-rays for future reference.

22

18

11

5

5

9

0 5 10 15 20 25

AFTER SALES SERVICE

PRODUCT FEATURES

COST

EASE OF USE

BRAND NAME

FILM COST

Deciding Factors in purcahse decision- Kanpur



Manually 36%

Fujifilm 46%

Carestream 5%

GE 3%

Konica 10%

Different Brand Equipment % age - Lucknow & Allahabad

Manually

Fujifilm

Carestream

GE

Konica

Lucknow & Allahabad

Lucknow is the capital city of UP and the health sector in Lucknow is in the mature phase on the

other hand Allahabad is relatively a small city with lesser no. of hospitals and clinic. The purpose

of considering these cities for the study is to understand the difference in the market

requirements and how the customers decide while buying a medical equipment. Based on the

research a marketing campaign can be conducted to increase the sales. In the process of research

for the project 39 respondents and one dealer were interviewed and were informed about the

KMHI’s product offerings and the sales promotion schemes.

Details of 39 Respondents


Hospital/Center

No. of Respondents

Interviewed


Hospitals >=100 11

Hospitals <100 18


Dealers -NA- 1


observed.

Here also the same pattern was observed Fujifilm was the market leader with 46% of the share in

the selected sample and Agfa was having very low presence in this market. Most of the prospects

who were doing manual x-ray were tapped and given product knowledge about Konica’s Brand.





Most of the customers were unaware of the brand Konica and their knowledge

was limited to Konica as a Film manufacturer.

Some of the prospects were aware of the quality of manual films manufactured by

Konica in the past and the general perception was good about the brand.

Few customers were unhappy with the after sales service from the organizations

and hence others were little skeptical about the same.


looking for change and showed interest in the buy back and free of cost printer

schemes.

Some of the prospects who were doing manual X-ray said they will change to CR

system as soon they will be able to arrange for the funds or were waiting for the

business to increase.

In the process of Brand awareness 2 leads were also generated.

- When asked about the key deciding factor while selecting medical equipment the

following response was observed as the most critical features ranked as no. 1.

It was observed that after sales service and Film cost were again the main deciding factor by the

customers in purchase of medical equipment. It was also seen that some of the customers were

taking Brand name also a deciding factor.

0 2 4 6 8 10 12 14 16 18

After sales Service

Product features

Cost

Ease of use

Brand Name

Film cost

Deciding Factor in Purchase decision- Lucknow & Allahabad



Chapter 5

Conclusion

Understanding of B2B marketing process in UP-east and Delhi

From the study it was understood how B2B buying situation is different from B2C buying

situation where in B2C buying scenario you easily woo a customer through branding, features

and other marketing tactics to sell the product. Whereas on the other hand in B2B segment the

decision maker is different from the user of the product, the no. of people involved in the

decision process are more or equal to one. The decision of buying a particular product depends

on lot of things and it is utmost important to for the supplier/Seller to understand the intended

use of the product and the value which it will offer to the customer.

Following things were noted while working on the project in the B2B marketing scenario

- Apart from Brand name, other factors like after sales service and consumable items cost

also plays an important role in the purchase decision.

- The no. of people involved in the purchase decision are greater in no. & sometimes it is

very hard to directly meet with the decision maker.

- It is very important to target the end user of the product in medical equipment category

which is the X-ray technician. They also play a very important role in influencing the

decision maker. They also help you in climbing the ladder up to decision maker.

- Dealers also play a very important role in B2B segment as they interact with customers

directly and the involvement of customer is also high, so it is very important to maintain

strict rules in appointing dealers with some pre-requisites.

- In medical equipment sales one need to know that product demonstration plays a very

important role and once you convince the customer for product demonstration that it

means half the battle is won.

Ongoing through various markets of UP-east and Delhi a clear differentiation was observed in

the market and the point of common preferences were also noted. Based on the understanding of

the different markets, sales promotion schemes and marketing campaign can be planned.

Differences in the markets

The clear differentiation which was observed in the buying approach of prospects from Delhi

compared to the buying approach of a prospects in Up-east. The prospects in Delhi area are least

bothered about the funds or are too much worried about the after sales service, there biggest area

of concerned is how much value this equipment will add to their business, on the other hand the

deciding factor in UP-east is “whether this equipment is required for the business?” Because

customers in UP are concerned about their customers and the possibility of growth in the near

future. As Delhi is one of the mature market in terms of CR systems so most of the medical

imaging centers are already using CR systems provided by different-different vendors. In case of

UP-east market there are two kind of prospects i.e. one who are already using CR system and



looking for a change and the one who are either doing it manually or are coming up with new

facility and want to purchase a new one. The flow of money in UP-east market is slow and the

daily imaging needs are also low that is why some of them are happy doing it manually or

outsourcing it. The end-user or the end customers also have low awareness in comparison to

Delhi which is the biggest hindrance in the sub-urban market and people don’t understand the

quality difference b/w manual and digital X-ray.

Similarity in the markets

Some of the similarity which were noted in both the markets are as follows:

- Both the customers/prospects give importance to after sales service while selecting a

particular brand.

- Promotional schemes interests both the customers but it is very important to launch them

at the right time because the demand in this category is seasonal.

- One the factor which customers in every market have considered while selecting an

equipment was film cost, so it is very important to keep competitive pricing strategy

while deciding on the film cost as the customers generally tell you a reason for going

with other brand because of film prices. It’s like your maintenance cost for the equipment

and most of the customers want it to be as low as possible.

Key features which decides the purchase of an equipment

It was observed that after sales service was the biggest concern or the deciding factor in the

purchase of a medical equipment and that is why vendors who available locally have likely hood

of getting more orders than those who are not present in the city. On completion of study it was

concluded that all the parameters which were considered for the study were all important but in

this case the dealer network plays a critical role for in providing customers with best in class

46

28

20

9

12

24

0 5 10 15 20 25 30 35 40 45 50

AFTER SALES SERVICE

PRODUCT FEATURES

COST

EASE OF USE

BRAND NAME

FILM COST

Deciding Factor in Purchase decision



after sales service. Film cost also came into picture while talking to various customers. The

hospitals which are having separate purchase & marketing department consider film cost as one

the deciding factors in the purchase of medical equipment’s.

In the process of working on the project total of 7 leads were generated. Following learning were

also noted:

- Cyclicity of business in medical imaging equipment in the respective markets. It was

observed that business picks up in the month April, May & June for which the purchases

are planned in the month of December to April.

- A lot of persuasion is needed to convert a customer into prospect.

- To generate more leads new markets should be covered because metro cities have already

adapted this technology.

- The demand of CR equipment’s will again rise in the market (market under study) after

2-3 years.



Chapter 6

Suggestions

Following suggestions were given to the company after the completion of project:

- Company should concentrate on after sales service in the cities like Kanpur & Lucknow

because if they will make the existing customers happy then the possibility of reference

sales increases. As the customers are doctors and they have their own community it is

very important to have positive WOM (word of mouth) from the existing customers.

- Company should try to have competitive pricing of films as it is the recurring cost which

the customers have to pay once they buy the equipment and they keep that in back of

their mind while purchasing the equipment.

- Company should appoint a dealer in Allahabad on urgent basis to cater to the market of

Varanasi & Kanpur

- Social media engagement of existing customers to make a brand community, this will

create brand awareness and product knowledge among select consumer group.

Campaign

Suggested a marketing campaign for select city.

Campaign Info:

Problem identified

- Low brand awareness in the city.

- X-ray technicians have not used Konica’s equipment and find other brands easy to use.

- Lot of X-ray technicians in these markets were not certified.

- No proof of quality to the customers.

Solution Recommended:

A three day marketing campaign in the respective cities in the month of May when people suffer

from lot chest and bone problems.

The campaign shall be conducted on the weekends and information will flow through local

newspaper advertisement.

In the campaign company will organize a free of cost X-ray to local people. The X-ray will be

done by X-ray technicians in the city which will be called through advertisement and personal

invite.

X-ray technicians will in turn get the certificate from Konica certifying them as certified Konica

X-ray equipment users. This will help in increasing the brand awareness and preference in the

mind of consumers.

