Becton

Dickinson
Division:
Marketing
Organization
Syndicate 5:
Bibhushan Raj Joshi (29118701)
Hawa Firdausi K (29118145)
Jonathan Febrian (29118124)

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Becton Dickinson (BD) Profile

● BD manufactured and marketed a range of medical products, use

by health care professionals, medical research institutes, and the
general public.
● Organized into 2 products: medical (59% of sales) and diagnostic
(41%)
● 19 operating sectors (each with profit responsibility and most
with their own manufacturing, marketing, sales, and service
● resources) and the international sector.
● BD Division is the largest division in term of personnel and sales
volume.
● Strategic response: to continue to build our competitive
advantage through technological innovation. This allows BDD
differentiate the products (superior performance, enhance
reputation as a worldwide quality leader).

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BDD Products

Hypodermic Products Technique Products and Supplies

B-DT Single-use Syringes and Needle B-D Medical Gloves

B-D Sharps Collectors B-D Anesthesia, Radiology, and

B-D Insulin and Allergy Syringes Biopsy Needle Products

B-D Pharmacy Products B-D Thermometry Products

B-D Reusable Syringes and Needles ACEv Brand Bandages and Elastic

Support Products

A-VT Fistula Needles

BDD Targets
Buyers
● Hospitals
○ Key user’s: nurses, pharmacists,
physicians (radiologist)
○ Contact with BDD: director of
purchasing, director of nurses, director Sales Rep
of pharmacy, director of central supply,
director of standard control ● Educate buyers on products (especially
● Laboratories needle in increased awareness of AIDS)
● OEM (other manufacture) ● In-service build relationship and brand
● Government → sold by formal bid process image
● Care providers
● Non hospitals market: growing, higher margin

Distributors

● Take care the order fulfillment

● Distributor per area, cover hospital and/or non
hospital

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Problem
U.S. government reimbursed hospitals decrease
● First, hospitals placed increased pressures on manufacturers to lower prices while reducing their supplies
inventories.
● Second, purchasing decisions had changed. (increased power f buyer)
● Third, the formation of group purchasing organizations (GPOs) and multihospital chains had
● accelerated
● Fourth, during the 1980s, the incidence of AIDS patients had increased the medical community's concern with
product quality and safety, especially in categories where accidents
● involving skin puncture were not uncommon (e.g., needles).
● A fifth factor was increased market interest in new product/service arrangements:

Question to Answer

● Are the right people focusing on the right issues?

● Do any of these market developments warrant a reallocation of marketing responsibilities, or an additional
person, at this point?
● Does the marketing organization require significant changes or will small modifications be sufficient?
● Concern
● Avoid the danger the organization will allow either new opportunities or current responsibilities to fall between
the cracks
Market Trends and Problem

● 1983 Government regulation impact in Hospital growth:

○ The 1983 legislation mandated a prospective-payment approach based on "diagnosis-related groups" (DRGs)
○ The formation of GPO and multi hopital chains had accelerated
○ Increased concern of the incidence of AIDS patients
○ Hospitals increased pressure to lower prices
○ Patient's hospital stay declined, and hospital profit margins decreased inpatient services had represented more than
80% of total hospital revenues; by 1988, it accounted for 74% and was projected to drop to 68% in 1991
● Hospitals had increased the influence and power of the purchasing department.
● Group purchasing organizations (GPOs)and multihospital chains had accelerated. Both were intended to
increase the purchasing power of hospitals for equipment and
Supplies
● Incidence of AIDS patients had increased the medical community's concern with product quality and safety
Competitors

● Competitors
○ Sherwood Medical
■ U.S. competitor
■ main emphasis was the hospital market, but it also sold to the dental, consumer and industrial sectors.
■ Primary line was known as Monoject, needle/syringe self-contained in plastic package
■ American Home Products emphasized the importance of being a low-cost producer in this business,
○ Terumo Corporation
■ a global competitor.
■ sold over 1,000 health care products worldwide.
■ 27% of the corporation's sales were from injection systems, 26%from pharmaceuticals, 17%from blood
transfusion equipment, and the remainder from a variety of clinical testing systems
■ Terumo, both in the United States and abroad, followed a low-price strategy
■ Created special distributor incentive programs which, as it offered guaranteed margin of around 15% regardless
of actual market or bid prices with a hospital or buying group
Current Structure

● Traditional product-management lines

● Divisional structure where each product
manager had P&L responsibility and each
reported to one of three Group Product
Managers
● Within Hypodermics, there were three
product managers , each with P&L
responsibility

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Disagreement between Sales and Marketing
Department
Complaints of Sales Manager about Marketing
department
● They don't take customer complaints seriously
enough.
● will call sales people for information but gets
upset.
● Sometimes marketing is successful in attaining
from other functions, not what the customer
wants.
● Communications from marketing come through
the "grapevine" or informal discussions.
● Frustration for sales rep is is lack of timely
information.
● For sales rep, Finance can shoot holes in what
we're doing because we lack the facts.
Complains Marketing
● When reps come to headquarters for sales
training, it's clear that many haven't read the
product release memos.
● Too many chiefs and not enough implementation
people to help deal with sales, manufacturing,
finance and customer service
● Marketing offers tools for sales, but there's no
accountability to ensure that sales uses the
tools. Being outsold by competition is never
cited as the reason for an unsuccessful program.
Marketing department

● Found it increasingly difficult to manage adequately across all the division's markets as buying groups became
more prominent in the hospital market, as new alternate care sites proliferated, and as the division began to
introduce new products and new product/service features.
● Current structure, each Product Manager had responsibility for various assignments as well as budgets and sales
goals for individual products and programs. Product assignments tended to cut across individual program
assignments.
● Structure fits the facts of our business and allows us to achieve focused responsibility for programs that reflect
specific opportunities and threats in a fast-changing environment."
Current Marketing Managers
Laureen Higgins
● Job title: Senior Product Manager for
Hypodermic Programs
● six years in marketing positions in BD's
Consumer Products division
● launch and coordinate end-user advertising
programs for BDD's hypodermic product
● ad planning, concept development, direct mail,
contests, and
● sales force education regarding the use of these
materials.
● gathering and disseminating competitive
information using "Hot Line" (telephone
exchange) and monthly newsletter from
distributors.
Robert Short
● Job title: senior product manager for the Hospital Market
● had been in sales with BD for 19 years
● He had three major responsibilities: forecasting, hospital
conversion programs, and product development.
● Concerned am concerned both with units sold and average
selling price because prices and competition vary
significantly in each segment."
● He found out that there is no such mechanism currently
existed for tracking sales to non hospital accounts.
● He was involved in Hospital “in-service” training programs
for all end users of BDD products
● He has worked in multifunctional teams of product
development ranging from new product research and
existing product modifications to worldwide
standardization of divisional product codes.
● He has worked in different sales territories.
● He realize that field Sales can realistically focus on only a
few strategic areas and programs at any one time. But
Marketing managers tend to proliferate lots of ideas,
programs, and segments
Current Marketing Managers
Greg Sutton
● Job title: senior product manager for
Distributor Programs
● developing BDD's distributor programs
Peggy Fero
● Job title : product manager for National Account
Services
● territory and distributor sales reps in selling and
servicing their as liaison between marketing and
BDD's three National Account Managers (NAM)
● improve our standing in the contract renewal
process
Current Marketing Managers
Roger Hankin John Kao

● product manager for Safety Systems ● Manager of marketing research

● products and services that facilitated the ● Focus much more closely on specific hospitals'
storage and disposal of hypodermics at their needs, problems, opportunities and buying
point of use and, in particular, helped to reduce patterns
the incidence of accidental exposure.
● developed educational programs for safety
products.
● involved primarily two products (Sharps
Collectors and Safety Lok), which together
accounted for less than 10% of 1989 divisional
sales.
● established volume-based pricing guidelines for
his products
● won approval for a contest concerning Sharps
Collectors: sales reps received $1 for every sale
of a new unit and, at the end of a six-month
period, the rep with the most volume received a
trip to a resort
Market Developments (Changes in Medical
Industry)
● Hospital purchasing personnel and buying groups become more influential
● Competitors (Sherwood and Teruno) have become more aggressive in their
marketing efforts
● Increasing importance of non hospital/alternative-care markets
● New technologies emerged (substitute to needle)
● Increased market interest in new product/service arrangements
Recommended Organization Structure

Disadvantage of Previous Structure

● The divisional structure increases costs by New Sr. Robert

requiring functional specialists and better Manager Short
qualified managers for each division.
● There is an overemphasis on divisional
rather than organizational goals, the
divisional structure may result in
duplicating resources and efforts

Hypodermic Program, Distributor Hospital Market, National Accounts

Advantage of New Structure Program, Safety System Team Service and Marketing Research Team

● Can easily tackle the development of additional new products without addition of any new Sr. Product manager.
● Is ideal for improving the speed and efficiency of a business.
● Allows the manager to work as a team rather than focusing on the individual goal.
● Easy track of performance of each manager
● Less complicated while making decision as the decision is based on single manager (unlike previous where any 3 manager can make
decision)
Changes in the Current Position

● Robert Short for Sales and Market Research (Because of his 19 years of
experience and knowledge)
● Hire New Sr manager
● Remaining Senior Manager and Product Managers are divided according to their
Knowledge and Skill under the Sr Managers.
Requirement for New Marketing Manager

1. Can create proper strategy for Sales Rep and Distributors.

2. Have good knowledge about the changes in the market and new rules being implemented.
3. Financial Capability and vision to set a budget for the whole department.
4. Knowledge in Competitor and market analysis.
5. Knowledge about Lean Sigma Model of Production.
6. Make strategy for Competitors in national and international market.
7. Make strategy for distributor and sales to overcome competitors strategy.
8. Key objectives: Ensure customer loyalty, Educate end-users , Take opportunity of
Increasing market share, Improve profit
9. Should be able to to do Market forecasting, planning research, sales fill the missing space in
marketing department
10. Be able to resolve existing issues and misunderstanding within the department.
HR steps to hire a New Sr. Marketing manager
1. Identify hiring need: The hiring staff should meet to generate a prioritized list of job requirements including
special qualifications, characteristics, and experience wanted from a candidate.
2. Plan: The plan should include a timeline, recruitment plan, criteria for initial candidate screening, selection
committee, interview questions, and instructions for taking notes.
3. Create a job description: The necessary information includes essential functions to be performed in the role
and the advantages of working for the company (i.e., workplace environment, compensation and benefits, perks, etc.).
4. Post and promote job openings: Job listing should be advertised internally so current employees can apply
and make referrals. Other avenues for promotion are the company’s website, online job boards, social media, job fairs,
and industry publications.
5. Recruiting: Beyond passive recruitment via job posts, the hiring staff should seek out qualified candidates via
newspaper, other media and industry events.
6. Applicant screening: As job applications arrive by email or via an applicant tracking system(ATS), the hiring
staff reviews résumés/CVs and cover letters based on the criteria established in the planning step.
7. Screening interview: Initial interviews with applicants are typically phone calls with HR representatives. These
interviews determine if applicants have the qualifications needed to do the job and serve to further narrow the pool of
candidates.
HR steps to hire a New Sr. Marketing manager
8. Interviews: Depending on the size of the selection committee, several interviews are scheduled for each
candidate.
9. Applicant talent assessment: Before, during, or after interviews, hiring staff often assign applicants one or
more standardized tests to assess personality type, talent , physical suitability for the job, cognition (reasoning,
memory, perceptual speed and accuracy, math, and reading comprehension), and/or emotional intelligence.
10. Background check
11. Decision: The hiring staff confers and evaluates applicants based on the interviews, job experience, skills and
talent assessments, and all other relevant information (recommendations, e.g.).
12. Reference checks
13. Job offer: Offering the job includes providing an offer letter stating the position’s salary, start date, and other
terms and conditions of employment that are based on the agreement between the company and the candidate.
14. Hiring: Once the candidate accepts the job offer, he or she is hired.
15. Onboarding: Should involve making the new employee feel welcome even before he or she officially joins the
organization. Preparing his or her workspace, providing necessary access credentials for work applications and
networks, and outlining an orientation and training schedule can significantly speed up the process.
.
HR Process required in New Organization Structure

1. Analysing Organizational Objectives

2. Inventory of Present Human Resources
3. Forecasting Demand and Supply of Human Resource
4. Estimating Manpower Gaps
5. Formulating the Human Resource Action Plan
6. Continuous Monitoring, Control and Feedback
7. Training and Learning Opportunities to improve the skills of the current
employees
Recommendation

● Yes, BDD should hire new Sr Marketing manager, who understands the needs of the new market and challenges.
● The new structure will help the organization to save money and use their existing resources more efficiently.
● Drastic change going in the market requires some significant changes in the organization structure as mentioned before.
● Create a better coordination between the Team to get effective output rather than working on individual objectives.
● Create a proper job description and assign HR team to find the best Manager to fill the position.
● Create a harmony between sales rep and marketing people.
● Invest on research of new market and global market to find new opportunities.
● Allow transfer of knowledge between employees and managers. So that, resignation of one manager doesn’t impact the
whole production under the manager.
● Competitor analysis and Market analysis to find new opportunities
● Use the skill of new manager to Implement Lean Six Sigma method to decrease waste and improve productivity using the
new structure which allows easier coordination between the whole department.
● In this structure no need to assign multiple budget for the each project but for a department as a whole to achieve its
objective.
● Take continuous feedback and make changes in the organization to improve performance.
Thank You