i UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business --------------------------- NGUYEN HA HOANG OANH HOW TO ENHANCE COMMUNICATION SKILLS OF SALESPEOPLE AT CUREWEL INTERNATIONAL COMPANY IN VIET NAM ID: 22130053 MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. TRAN HA MINH QUAN Ho Chi Minh City – Year 2016 TIEU LUAN MOI download : skknchat@gmail.com ii TIEU LUAN MOI download : skknchat@gmail.com i ACKNOWLEDGEMENT First of all, I would like to express my sincere gratitude to my supervisor, Dr. Tran Ha Minh Quan, for his professional guidance, positive encouragements and helpful guidance during the time of doing my thesis. Further, I would like to thank all the members of the committee, who gave the helpful comments for me to complete the thesis in the right direction.
My sincere thanks are also given to all of the professors at International Business School – University of Economics Ho Chi Minh City for their teaching and guidance during my master course. In addition, I would like to say thanks to all the board of director, staffs and customers of Curewel International Company Limited, who provided documents, answered the questionnaires and gave the feedback for completing this thesis. Finally, my deepest gratitude goes to my classmates in MBUS 4.2 and my family for their support and encouragement so that I can complete this thesis. TIEU LUAN MOI download : skknchat@gmail.com ii EXECUTIVE SUMMARY Curewel International (Vietnam) Co., Ltd in Vietnam (CIV) established in 2004 and is one of eight subsidiary companies of Curewel International Group.
CIV represents for many manufacturers from many countries and delivers healthcare products from four segments such as Pharmaceutical, Orthopedic, Dentals and Pharma-Cosmetic to customers. In Orthopedic, Dentals and Pharma-Cosmetic, the customers are the distributing companies while in pharmaceutical, the customers are the hospitals, clinics and pharmacy shops in whole of Vietnam. The main channel of CIV is to approach such customers by introducing and selling products directly through the sales force. So far, CIV mainly bases on the brand name of the manufacturers or the quality of product to push the business in local.
The segments of Orthopedic, Dentals and Pharma-Cosmetic are developing sustainably, but the developing rate of Pharmaceuticals is reducing recently. Nevertheless, in recent years, sales revenue has been decreased; sales time for completing any business is longer comparing previously; number of exploited customers dropped down and the rate of new customers is less increasing which having influence on the sales revenue of the foreign manufacturers to Curewel International in general and CIV in particular. Withdrawn from the failed business and feedback from customers and sales force, we recognized that sales force of CIV have poor communication skills. The purpose of this thesis is to find out the roof of problem that make CIV have those bad symptoms.
After researching the real situation at CIV, we found that CIV had a problem at communication skills of their salespersons to the customers, comparing with competitors. Because CIV’s concentration is in B2B, so almost business of CIV is through the sales force, TIEU LUAN MOI download : skknchat@gmail.com iii but the sales force when approached new customers or take care of old customers, they either not convey sufficient products’ information to customers, or listen to the customers properly, or understand the customers, or build CIV brand awareness to customers to persuade customers to buy products through their communication skill. To solve problem of low communication skills of sales force of CIV, researcher discussed in-depth with the Board of Directors and found three alternative solutions: Training, Teamwork, and Dismissal & Recruitment to solve the problem. Comparing these three solutions each other, we found that training brings more benefit and less time and cost than the two remained solutions, so we selected training as a best solution for the problem.
It takes two and half months for this solution. The Admin-Sales Department will take one week for preparing documents for training information about CIV including introduction about CIV in general, products categories of CIV, the partners of CIV, the role as well as the high responsibility of CIV to sales people. The Board of Directors and Products Directors will be responsible for training products knowledge like types of products, dosage, indication, contraindication, side effects, products category and training skill of listening, understanding, empathy customers and training behavior for the sales force in one month and three weeks. Also, the company will invite the expertize trainers to equip solid foundation in effective communication for sales force in the aim of branding for CIV in two weeks.
Training programs will apply on sales force in 2017 to enable CIV to increase business effectively. TIEU LUAN MOI download : skknchat@gmail.com iv TABLE OF CONTENTS ACKNOWLEDGEMENT .ii TABLE OF CONTENTS. iv LIST OF TABLES AND FIGURES. vi LIST OF ABBREVIATION .vii CHAPTER 1: PROBLEM IDENTIFICATION.
Background of problem. Justify the existence of the central problem. Justify the importance of the problem. Potential causes of the problem.
20 CHAPTER 2: ALTERNATIVE SOLUTION ANALYSIS. Dismissal and recruitment. Select the best solution. 27 CHAPTER 3: ACTION PLAN.
Cost and benefit of three alternative solutions. Detailed implementation plan. 29 CHAPTER 4: SUPPORTING INFORMATION. Interview sales people to identify the most important causes of the problem.
Interview sales people to identify the most important causes of the problem. Interview sales people to identify the most important causes of the problem. 33 TIEU LUAN MOI download : skknchat@gmail. Interview sales people to identify the most important causes of the problem.
Interview customers to identify the most important causes of the problem. Interview customers to identify the most important causes of the problem. Interview customers to identify the most important causes of the problem. Interview customers to identify the most important causes of the problem.
Survey questionnaire: Interview pharmaceutical salespersons of CIV to find out symptoms. Survey questionnaire: Interview pharmaceutical customers to find out possible problems. Survey questionnaire: Interview pharmaceutical customers to identify the existing of problem. Survey questionnaire: Interview sales people of CIV to identify main causes of problem.
Survey questionnaire: Interview pharmaceutical customers to identify main causes of problem. Survey questionnaire: Interview board managers to select the best solution for the problem and detailed implementation plan. Customers’ assessing about communication skill of CIV’s sales people. 55 TIEU LUAN MOI download : skknchat@gmail.com vi LIST OF TABLES AND FIGURES Table 1.
Revenue of CIV and RV Life from 2013 to 2016………………………………. Average time to win customers…………………………………………………. Cost and benefit of three alternative solutions…………………………………. Detailed implementation plan……………………………………………………30 Table 4.
Interview sales people to identify the most important causes of the problem…. Interview sales people to identify the most important causes of the problem…. Interview sales people to identify the most important causes of the problem…. Interview sales people to identify the most important causes of the problem….
Interview customers to identify the most important causes of the problem……. Interview customers to identify the most important causes of the problem……. Interview customers to identify the most important causes of the problem……. Interview customers to identify the most important causes of the problem…….
Structure of sales force of pharmaceutical industry……………………………. Number of Pharmaceutical Customer……………………………………………5 Figure 1. Number of Pharmaceutical Customer……………………………………………7 Figure 1. Cause - and - effect map……………………………………………………….20 TIEU LUAN MOI download : skknchat@gmail.com vii LIST OF ABBREVIATION CIV……………………………………………Curewel International (Vietnam) Co., Ltd TIEU LUAN MOI download : skknchat@gmail.com 1 CHAPTER 1: PROBLEM IDENTIFICATION 1.
Company background Curewel International Company is one of the leading companies involved in multifaceted business in India. The company is most dynamic and diversified business conglomerate in its operations. Curewel International business includes Pharmaceuticals, Orthopedics, Dentals and Pharma-Cosmetic products. Curewel International Company committed to provide quality products and services to its customers through constant improvement and innovation.
Curewel International Company founded in 2001 in India and has its presence in eight different countries which are Singapore, Malaysia, Philippines, Myanmar, Sri Lanka, Mauritius, Cambodia and Vietnam in various businesses like Trading and Distribution; and associates with many reputed manufacturers in India, Italia, UK and Malaysia. Curewel International is on behalf of foreign manufacturers who want to introduce and occupy the market in locals without spending much expenses in importing, distributing and positioning their products. The mission of company is to enhance the quality of life for humankind globally, with quality and affordable products and services, specifically: • Customer satisfaction is ultimate goal in our business. • Offer products and services of the highest quality.
• Provide opportunities to our people to excel their full potential. • Foster mutually beneficial relations with all our business partners Curewel International (Vietnam) Co., Ltd (CIV) was established since 2004. CIV also operate business on four segments Pharmaceutical, Orthopedic, Dentals and Pharma- Cosmetic. TIEU LUAN MOI download : skknchat@gmail.com 2 In the orthopedic industry, CIV associated with Dynamic Techno Medicals for the orthopedic products like cervical collar, lumbar sacral corset, abdominal corset, wrist splint and knee immobilizer corsets.
In dental industry, CIV associated with Eucare Pharmaceuticals India and Group Pharma Private Limited India manufacturers for toothpaste, mouthwash, sterile absorbable membranes, sterile absorbable collagen and gelatin sponges, etc. And in the pharma-cosmetic industry, CIV associated with Lee-ford Healthcare India, Claps Industries Pvt. Ltd India, Medical-life Italia and Ken-rich Malaysia. These such three segments CIV has their sole marketing and distributing customers who are distributing and have their own sales team.
So, CIV based on the brand name of such manufacturers or the quality of product to push the business in local. And the revenue also grows steadily. In pharmaceutical industry, CIV associated with the following India manufacturers for three products categories that are Antibiotic/ Anti-bacterial/ Antifungal, Anti-inflammatory/ Analgesics and Anti-ulcer/ Anti-acid/ Anti-Emetics with total 75 products. • Zee Laboratories • Lanark Laboratories • Swiss Parenterals • Amol Pharmaceuticals • Mednext Pharma The customers of the pharmaceutical industry are the hospitals like Cho Ray Hospital, University Hospital, 115 Hospital, Hong Duc Hospital, Hoan My Hospital, Tu Vu Hospital, etc., general clinics and pharmacy shops in whole of Vietnam.
In this segment, CIV approach such customers through the sales force - 22 sales peoples including 18 Medical TIEU LUAN MOI download : skknchat@gmail.com 3 Representatives and 4 Managers in three regions north, central and south of Vietnam. The structure of the sales team of this segment is as below: Figure 1.1: Structure of sales force of pharmaceutical industry Sales Director Regional Sales Regional Sales Regional Sales Manager (North Manager (Central Manager (South provinces) (1) provinces) (1) provinces) (1) Medical Represenatives Medical Representatives Medical Represetatives (5) (5) (8) (Source: Structure of pharmaceutical department of CIV) 1. Background of problem 1. Symptoms The existing symptoms at CIV are that: • Total sales revenue of Pharmaceuticals segment reduced comparing with the rest of segments; • Number of current customers lose annually; • Increasing new customers is ineffective Total sales revenue of Pharmaceuticals segment reduced comparing with the rest of segments TIEU LUAN MOI download : skknchat@gmail.com 4 Total sales revenue of CIV comes from four segments Pharmaceuticals, Orthopedics, Dentals and Pharma-cosmetic.
Sales revenue of the Orthopedics, Dentals and Pharma- Cosmetic segments where CIV through the Vietnamese distributing companies who has their own sales team to sell products, increase steadily. But sales revenue of pharmaceuticals segment went down. In specific, in orthopedics segment, the sales revenue increased slightly 385 million VND from 2013 to 2014, from 2014 to 2015 sales revenue increased 2,068 million VND and went up 1,417 million VND from 2015 to 2016. In dental segment, the sales revenue increased around 8% to 10% over the years from 2013 to 2016.