INTRODUCTION
GLOBAL MEDTRONIC CORPORATION
Medtronic PLC is a leading medical device company primarily generating its sales and profits from the U.S healthcare system, while being headquartered in Ireland for tax advantages The company maintains an operational and executive headquarters in Fridley, Minnesota, USA In 2015, Medtronic completed the largest U.S corporate tax inversion in history by acquiring Irish-registered Covidien, allowing it to transfer its legal registration from the U.S to Ireland Operating in 140 countries and employing over 86,000 people, Medtronic’s global presence underscores its significance in the medical device industry.
Founded in 1949 in Minneapolis by Earl Bakken and Palmer Hermundslie, Medtronic initially operated as a medical equipment repair shop Bakken’s connections with Dr C Walton Lillehei, a heart surgeon at the University of Minnesota, led to the development of innovative solutions after the limitations of existing pacemakers became evident A blackout during Halloween 1957 resulted in the death of a pacemaker-dependent pediatric patient, highlighting the urgent need for reliable, battery-powered devices The following day, Lillehei collaborated with Bakken to create the first battery-powered external artificial pacemaker by modifying a transistorized metronome, revolutionizing cardiac care.
In the 1950s, the company expanded by selling equipment from other manufacturers and developing custom devices, including a small, battery-powered pacemaker that could be strapped to the body This innovation laid the groundwork for the invention of the implantable pacemaker in 1960 Medtronic established its headquarters in St Anthony, Minnesota, in 1960 before relocating to Fridley in the 1970s The company's main competitors in the cardiac rhythm management sector are Boston Scientific and St Jude Medical In 1998, Medtronic strengthened its market position by acquiring Physio-Control for $538 million.
In fiscal year 2019, revenue increased by 2% to $30.557 billion, reflecting steady growth The company reported net earnings of $4.631 billion, or $3.41 per diluted share, demonstrating solid profitability Additionally, the non-GAAP earnings provided further insight into the company's financial performance, highlighting its strong operational results.
Medtronic, the largest Medical Device Company in the world, reported a net income of $7.089 billion, translating to $5.22 in diluted earnings per share The company's cash flow from operations reached $7.007 billion, highlighting strong operational performance Additionally, Medtronic's free cash flow significantly increased by 62% year-over-year, totaling $5.873 billion compared to $3.616 billion previously, underscoring robust financial health and growth.
VIETNAMESE MEDTRONIC CORPORATION
Vietnamese Medtronic Corporation was established in 2016 as a subsidiary of the global Medtronic organization, focusing on innovative healthcare solutions The company concentrates on four key therapeutic areas: Cardiovascular Group (CVG), Diabetes, Restorative Therapies Group (RTG), and Minimally Invasive Therapies Group (MITG), with further subdivision into specialized sub-groups In the Cardiovascular Group (CVG), Medtronic has four sub-groups: Aortic, Peripheral & Venous (APV), Cardiac Rhythm and Heart Failure (CRHF), Cardiac Surgery (CS), and Coronary This article specifically focuses on the Aortic, Peripheral & Venous (APV) sub-group.
(Source: Medtronic internal structure) For the current group, as above figure, Medtronic has 12 salespeople, including 02 sales managers and 01 national sales manager (Mr Jason Dang) Total other 9 sales representative will cover national wide but mainly focus on Hanoi, Ho Chi Minh, Da Nang and Can Tho tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
PINNACLE HEALTH EQUIPMENT CORPORATION
Under Pharmaceutical & Medical Device Regulation, foreign companies are restricted from participating in the supply and distribution sectors of the pharmaceutical industry in Vietnam Only fully Vietnamese-owned corporations with 100% Vietnamese capital are authorized to engage in sales and distribution activities Consequently, the Vietnamese pharmaceutical distribution market offers significant growth opportunities, with an expanding annual potential for local distributors.
Pinnacle Health Equipment Corporation, founded in 2013, is a dynamic distributor specializing in pharmaceuticals and medical devices Despite its relatively recent establishment, the leadership team possesses over 20 years of expertise in pharmaceutical business operations The company’s strategic plan for 2020-2025 and its vision for 2030 focus on expanding as a distributor for multinational companies, with a strong emphasis on both trading and services to provide high-quality, affordable products across Vietnam Additionally, Pinnacle is committed to enhancing its import capabilities to meet growing market demands.
& Exports (Exclusive import and distribution of World-class medical equipment and Supplies)
(Source: Pinnacle internal structure) For the collaboration with Medtronic Vietnam, currently, Pinnacle is the distributors dedicated to managing the Medical Device Business in the Middle (18 Provinces) &
The southern region of Vietnam comprises 17 provinces, with a total workforce of 13,000 employees Our sales team, consisting of 8 members, primarily focuses on expanding our market presence across this vibrant region We are committed to providing tailored solutions and strengthening our customer relationships in the South of Vietnam to drive business growth and community development.
SYMPTOMS
This FPS project involves conducting intake and external exploration to assess its potential, with the intake meeting supported by thorough external research For Fiscal Year 2020, the company's target revenue is set at $4.3 million USD, reflecting a 7.4% growth rate, with an EBIT of $2.2 million USD The project’s success is measured using two key performance indicators (KPIs): the ratio of actual revenue against the target and the ratio of actual profit (PnL) versus the planned profit As shown in Figure 1, revenue performance appears to be on track, with a cumulative performance rate of 117% in Quarter 1.
& Quarter 2) For the second KPI, we see the reduction between the actual figures and the targeted one
The profits and loss is the most paramout importance for Medtronic APV Vietnam
Vietnamese leaders at Vietnam Company, an independent branch of Medtronic Global, have control over budget spending and revenue, but must ensure their Profit and Loss (P&L) targets, particularly Operating Profit with Allocations, are met Despite achieving revenue targets in FY2020, the branch did not receive incentives due to a profit shortfall, highlighting a negative profit gap This was reflected in budget overruns during the fiscal year.
Table 1: APV Profit & Loss (PnL) – Actual vs Target
Aortic and Peripheral Vascular (APV)
Total Other Operating (Inc)/Exp 6.0 2.0 3.0 4.0 15.0
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Table 2: APV Profit & Loss (PnL) – Gap
(Source: Medtronic internal structure) The number of this table belongs to FY20 (Feb 2019-Jan2020), therefore, the data was not impacted by COVID 19 situation.
PROBLEM IDENTIFICATION
POTENTIAL PROBLEMS
The internal data analysis reveals that the Profit and Loss, including operating profit with allocations, fell short of targets in the first quarter by -131.0K USD Although there was a recovery with a positive increase of +122.3K USD in the second quarter, it was insufficient to fully close the quarterly gap.
1 and Quarter 2, the Profit and Loss is still miss 8.7K USD
Table 1 shows the data in Q3 &Q4 when the Operating Profit with Allocations still went down to minus 11K and minus 143K respectively Therefore, the total PnL landed at minus 162.7KUSD
Our analysis reveals that the primary negative impacts on performance stem from marketing expenses, specifically Marketing – Training & Education and Marketing – Product-related costs Conversely, other expenses such as direct overheads—including staff salaries, incentives, travel, and work-related expenses—are not significantly affected and do not critically impact the Profit and Loss statement This highlights key areas for Medtronic to focus on for improving key performance indicators (KPIs) and optimizing overall financial health.
Aortic and Peripheral Vascular (APV)
Total Other Operating (Inc)/Exp 6.0 2.0 3.0 4.0 15.0
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To identify the reasons behind the excessive costs compared to the planned budget, we conducted interviews with two sales managers from the APV portfolio According to Mr Thao Pham, the Northern Sales Manager of Medtronic APV, the high expenditure is primarily due to increased marketing activities to boost product awareness and market share.
We need have many aspects to concentrate in order to drive the APV performance in Hanoi, especially Aortic Franchise, currently, we have only 10-
We feature 15 key opinion leaders in aortic therapy, many of whom require ongoing education to stay current with the latest advancements To facilitate short-term engagement, we organize educational activities focusing on thoracic endovascular aneurysm repair (TEVAR) and endovascular abdominal aneurysm repair (EVAR), where these KOLs serve as expert speakers sharing their experiences These events not only enhance the reputation of the KOLs but also play a crucial role in advancing knowledge within the field However, engaging these influential professionals involves significant costs.
For the southern part of Vietnam, Mr Khai – Sales managers have a similar idea but adding more point for the excessive expense of operating
Investing heavily in marketing activities for Peripheral and Venous therapy is essential due to the high number of inexperienced doctors in this field In Vietnam, the lack of local proctors to train Vietnamese physicians necessitates sending them abroad to centers in Singapore, Malaysia, and Thailand, which increases both the training quality and the overall marketing costs.
Based on two sales managers, there are 02 potential problems that APV could bear at this moment, and one of them is “Over-focus on Long-Term activities as Training &
Training new doctors is essential to support Medtronic's performance, but it will not generate immediate sales returns, as it takes at least 6-12 months for them to perform enough implantations and obtain licenses from the Ministry of Health Similarly, in Aortic Therapy, new doctors require a minimum of six months to become licensed implanters, which may delay revenue growth Additionally, there is a concern regarding the low cost-effectiveness of ongoing training and education efforts, potentially impacting overall business efficiency.
Marketing activities” that reflex in the excessive amount of allocated budget per engaged customer With those current activities, to average money for each engaged customer will exceed $3000 per time
Research by Sharma A highlights the significant impact of effective key account management on the success and cost-efficiency of marketing activities Studies by Homburg et al and Workman illustrate that companies implementing strong key account programs achieve superior performance, particularly in the pharmaceutical industry Key accounts typically refer to large customers, such as high-demand hospitals and clinics, which serve numerous patients and are crucial for business growth.
Low management of key accounts reflects in reduced quotas and a limited number of advocated doctors within those accounts For example, at Bach Mai Hospital, a lower number of advocated implanters compared to competitors like Cook or Boston Diagnostic can lead to a short-term decline in market share This discrepancy underscores the importance of strategic account management to maintain and grow market presence in key healthcare institutions.
A significant challenge in international marketing is the risk of not satisfying customers' academic requirements, as marketers often focus on superficial concerns rather than in-depth customer insights This misalignment can cause marketing efforts to target the wrong client needs, leading to inefficient use of budget and resources To succeed globally, marketers must prioritize deep understanding of customer insights to develop more effective strategies that truly meet client expectations.
Initially, there appears to be conflicts among these issues; however, in-depth interviews with sales leaders and reps reveal clear gaps between them For instance, a disconnect exists between an over-focus on long-term activities and immediate sales priorities, highlighting the need for balanced strategies to optimize sales performance.
Medtronic Vietnam’s long-term marketing activities are vital for building sustainable relationships with hospitals and doctors, aligning with Vietnamese strategic goals to ensure long-term growth However, concerns arise regarding the cost-effectiveness of these initiatives, prompting questions about the optimal level of expenditure and whether Medtronic is overspending on such activities.
This article examines the low cost-effectiveness of current marketing activities, analyzing whether Medtronic’s contemporary approaches effectively target the right customers It questions if these strategies deliver the appropriate key messages to engage their audience and achieve optimal marketing ROI.
Based on in-depth research and interviews, key issues contributing to the phenomenon include an overemphasis on long-term activities such as training and education, the low cost-effectiveness of routine marketing efforts, inadequate management of key accounts, and failure to meet customers’ academic requirements.
3.1.1 Over-focus on long-term activities
Long-term activities aligned with the company's KPI are crucial for ensuring sustainability and sustained revenue growth These initiatives focus on maintaining momentum over time, highlighting their strategic importance Insights into these activities can be drawn from empirical analysis of business challenges and comprehensive literature reviews, which provide valuable evidence and best practices to support long-term success.
In terms of Empirical analysis, we analyze the ratio between the Long-Term and Short-Term Impact Activities
Medtronic's long-term educational activities encompass specialized programs such as Medtronic Endovascular Aneurysm Repair (MedEVAR), Medtronic Thoracic Endovascular Aneurysm Repair (MedTEVAR), Medtronic Peripheral Artery Disease (MedPAD), and Medtronic EndoVenous (MedVenous), focusing on specific therapeutic treatments Through our Training & Educating Programs (T&E Program), newcomers gain comprehensive knowledge, from basic anatomy and physiology to current clinical guidelines and treatment methods for these disorders These programs also include product education and hands-on practice using advanced Simulator Systems, with real-sized demo products to replicate actual procedures Successful participation in workshops allows clinicians to earn certifications or licenses, enabling them to perform these procedures independently in their hospitals.
PROBLEM VALIDATION
One of the primary marketing objectives is to achieve profit and loss goals As shown in Table 6, diverse sponsorship options across various practice groups help maximize the firm’s resources to reach clients effectively Allocating marketing funds specifically for targeted practice groups and key segments can be an efficient strategy to generate strong returns and enhance overall marketing performance.
According to Table 6, the coverage rate of doctors in Medtronic is notably low, indicating potential for improvement The engagement budget per customer for third-party congresses and proctorships is significantly higher than for other activities, raising concerns about their cost-effectiveness This suggests that reallocating resources toward more efficient activities could enhance overall effectiveness and improve company profits.
Based on interviews with the sales representative and two sales managers, it is evident that current engagement activities lack cost-effectiveness, as they involve high expenditure but reach a limited number of doctors This highlights the need to optimize promotional strategies to improve outreach and return on investment in the healthcare marketing sector.
This means that the problem as “Low cost – effectiveness of marketing activities” has a high of potential chance to improve and would be considered to be the main one
Budget allocation for Training & Education (T&E) activities accounts for only about 25% of total marketing expenditure, despite their significant impact on Market Access and brand reputation Long-term activities, especially efforts to develop new customers, are essential for sustained business growth as they foster ongoing customer engagement and loyalty Overemphasizing short-term initiatives can have negative consequences, whereas marketing campaigns should aim for sustainable, long-term results T&E activities uniquely bridge the gap between long-term strategies and short-term objectives by supporting immediate sales performance and long-term development, such as nurturing young doctors and enhancing brand image Therefore, focusing on T&E is critical for avoiding disruptions, fostering innovation, and positioning Medtronic for future success.
Customer feedback on all assessed programs has been overwhelmingly excellent, highlighting the importance of customer satisfaction Measuring customer satisfaction remains a challenging task but is crucial for evaluating product success Overall, customers' positive experiences underscore the value of prioritizing customer needs and continuously improving service quality.
Customer satisfaction is high, with 17% of repeat business and recommendations from satisfied clients Positive reviews and testimonials highlight the overall quality of Medtronic’s products, their reliability, and their ability to meet customer needs Maintaining these high standards is essential for continued success in this competitive field.
Insufficient key hospital management is highlighted by the tender quota and hospital performance from Pinnacle, underscoring the current challenges Strengthening the hospital management role within the organization can expand its boundary-spanning functions and necessitate rapid reporting channels to top leadership Although some argue that key hospital management originates from sales activities, growing evidence suggests it should be established as a separate function at the general management level for better effectiveness Ultimately, excellent hospital management is reflected through sales-related relationships and tangible results.
In conclusion, the main problem is identified as “Low cost-effectiveness of marketing activities”
POTENTIAL CAUSES
SALES REPRESENTATIVES LOW COMPETENCIES, UNABLE TO
Currently, the trainings in Medtronic mostly have focused only in product-related topic as demonstrating below:
Our analysis revealed that the training programs primarily focus on technical skills, enabling sales representatives to perform Aortic or Peripheral Interventions alongside doctors However, there is a notable lack of training aimed at enhancing essential selling, social, and interpersonal skills, which are crucial for effective communication and relationship building As a result, sales reps lack awareness and proficiency in discussing marketing activities and follow-ups, limiting their ability to engage clients beyond technical support.
Moreover, as Mr Khai mentioned in the interview:
One of the main reasons our sales team does not follow up on activities is because they lack the necessary skills Initially, we did not provide training to enhance their selling skills, which has impacted their ability to effectively engage with prospects Providing targeted sales training is essential to improve follow-up activities and drive better sales performance.
1 Jan-19 How to Deal with Angled Neck?
2 Feb-19 Endovascular Suture Aneurysm Repair (ESAR) For Hositle Neck
3 Mar-19 Angulated Neck Treated with Endurant
4 Apr-19 ESAR For Short Neck / Conical Neck
5 May-19 Management of AAA + IIA Aneurysm (Coil, Occluder, Branched Devices, Sandwich)
6 Jun-19 Thoracoabdominal Aneurysm - Other Options: Sandwich & On-Table
7 Jul-20 Management of Vasculitis & Infected Aneurysm
8 Aug-20 Tips & Tricks for Iliac Rupture During EVAR Procedure
9 Sep-20 Spinal Cord Ischemia, Prevention & Management
10 Oct-19 Valiant Navion CoveredSeal – Ideal for Fragile Aortas
11 Nov-19 Very complex thoraco-abdominal aneurism treated by Hybrid techniques
12 Dec-19 Management Of Aortic Arch - Hybrid / Endovascular
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At this company, the number of doctors is quite limited, making the candidate's suitability crucial Sales representatives are primarily expected to excel in product knowledge, while distributor reps handle follow-up activities, ensuring effective client engagement and sales growth.
As response from Mr Khai, due to the total number of customers are limited (around
400 healthcare professionals), he did not build up a system training which support sales team to be confident in terms of selling skills and understanding customers’s insight properly
Our training sessions primarily focus on enhancing product knowledge, understanding detailed product specifications, and sharing case studies for in-depth discussion with overseas sales representatives These case studies often involve complex anatomy or challenging situations, providing valuable learning opportunities To ensure effective follow-up and continued support, this responsibility largely falls on the distributors' representatives, as our main role is to provide consultancy and technical guidance to doctors.
According to Mr Quang, the sales representative, the sales team received only one training course over the past year, which was conducted by the regional Singaporean team in English This limited training opportunity has posed significant challenges for the sales team in understanding the training content effectively.
Sales representative visits are crucial for effectively transmitting product information and enhancing branding efforts, especially in the Medical Device and Pharmaceutical industries Following up after calls and managing content delivery also fall under the responsibilities of sales reps, ensuring consistent and informative communication Additionally, distributors should be viewed as complementary rather than primary channels, serving as alternative solutions to support overall sales strategies.
4.1.2 Lack of content-cascading materials
Effective post-event follow-up of marketing materials is crucial for sustained impact Without consistent engagement after events like workshops or third-party congresses, the benefits quickly diminish, typically lasting only a few months Ensuring the sales team actively follows up and leverages the speeches and insights shared during these events can significantly enhance long-term brand visibility and sales growth.
The current materials that Medtronic have are demonstrated below: tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Currently, there are no additional materials available beyond existing product-based resources to effectively communicate specific event content These materials are primarily designed to support sales representatives in discussing product knowledge with customers, emphasizing product features and benefits to facilitate sales conversations.
Content-cascading materials like leaflets or emails serve as effective follow-up tools to reinforce key event messages and remind doctors of the main content For instance, after a workshop where Medtronic invests $5,000 to invite foreign doctors to share their expertise on complex aorta procedures, timely distribution of materials allows the sales team to reinforce the learning, increasing engagement and retention Utilizing these materials immediately after the event enhances overall effectiveness and frequency of communication without additional costs.
According to literature, event-related materials are crucial tools for effectively communicating the content of any event To utilize these materials successfully, sales teams must thoroughly understand the event details and possess strong selling skills However, Medtronic staff tend to avoid this task due to the challenges involved in mastering both the knowledge and sales techniques needed for effective delivery.
One of my perennial memory was that, after the National Heart Congress in Hanoi, we engaged total 6 speakers, all of them are our main KOLs, such as
Dr Nguyen Manh Hung and Dr Le Ngoc Quang are renowned experts in their respective fields, contributing significantly to current research and development Additionally, we have invited Dr Alex to collaborate on our ongoing projects, enhancing the quality and depth of our work For those interested in academic advancements, full doctoral theses and latest research papers are available for download via email at v bhtj mk@gmail.com Stay updated with the newest master's theses and research outputs to support your scholarly pursuits and stay ahead in your field.
Wong from the USA cost us at least $10,000, but measuring the exact results remains challenging due to the lack of comprehensive presentation materials Having complete materials would enable us to improve the quality of our presentations, enhance audience engagement, and increase the frequency of successful interactions Investing in better resources could significantly boost our overall effectiveness and ROI.
As an interview from Mr Thao – North Sales Manager Once again, the potential cause were mentioned in the sales team perspective.
LACK OR LOW FREQUENCY OF FOLLOWING ACTIVITIES –
At this moment, the total customers that Medtronic have engaged by Med reps as below:
Table 8: Quantity of engaged implanters by sales rep
Each sales representative is responsible for covering at least 20-30 doctors to serve all 433 customers effectively To maintain a visiting frequency of twice a week, they need to meet 8-10 implanters daily, which is challenging when also required to conduct live cases in the Cath Lab This demanding schedule leads to an overloaded workload, leaving limited time for essential marketing follow-ups and relationship building.
We have around 400 Healthcare Professonals (HCP) But for PV portfolio and
To boost revenue through our EV portfolio, expanding the doctor engagement list is essential Currently, most of our sales efforts are concentrated in major hospitals such as Bach Mai, Hanoi Heart, Cho Ray, and the University of Medical Center in Ho Chi Minh City Increasing our outreach to a wider range of healthcare professionals will drive greater adoption and sales.
The primary objectives of third-party congresses are to expand market access and increase customer coverage However, with only nine sales representatives, our team can realistically reach approximately 500-600 healthcare professionals (HCPs), highlighting the need for strategic planning to maximize engagement within our limited reach.
No Sales Reps Company Portfolio Territory Number of implanters
1 Quang Vien Medtronic Aortic Bach Mai, 108 Hospital, 26
2 Hung Dao Medtronic PV/EV All Hanoi 41
3 Hien Nguyen Medtronic Aortic Viet Duc, E Hospital, Hanoi Heart Hospital 29
4 Denny Hoang Medtronic Aortic Cho Ray, UMC, Gia Dinh 27
5 Ngan Nguyen Medtronic PV/EV All HCM 43
Hai Trieu Le Medtronic Aortic Can Tho, An Giang, Soc Trang 30 7
Nam Dong Medtronic PV/EV Da Nang, Hue 22
Chau Nguyen Medtronic Aortic Thu Duc, Binh Dan, 115 Hospital 26 10
Other (8 sale reps) Pinnacle APV National wide 189
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Mr Thao emphasizes that current activity levels for event recaps are insufficient for future growth, especially as the company aims to expand into two new portfolios Currently, the majority of allocated budgets are dedicated to third-party congresses and honorariums, which serve to engage key speakers and enhance customer outreach Market access and customer coverage are critical factors for successful expansion Investing in high-cost activities can be more effective when customers are engaged through distributors or Medtronic staff, increasing the likelihood of valuable feedback and revenue opportunities without additional costs.
Good market access provides a clear roadmap for companies to optimize their investments, ensuring efficient coverage of healthcare professionals (HCPs) For instance, if the target market only offers access to approximately 500-600 HCPs, companies can strategically re-allocate their budgets towards smaller, cost-effective activities that still guarantee sufficient doctor coverage This approach maximizes resource utilization while maintaining impactful engagement with key healthcare providers.
FOCUS ON WRONG TYPES OF PROMOTIONAL ACTIVITIES
4.3.1 Focus on wrong customer segmentation
Current promotional activities primarily focus on 3rd party congresses and Proctorship, engaging only about 22% of healthcare professionals (95 of 433 HCPs), yet accounting for 68% of marketing budgets This strategy emphasizes targeting Key Opinion Leaders (KOLs) instead of implanters who have direct decision-making authority to implant Medtronic devices Such an approach may limit marketing effectiveness, as focusing solely on KOLs, who mainly influence their students through scientific knowledge, might not directly impact implant decisions Meanwhile, therapies for Aortic, Peripheral, and Venous conditions appear to be expanding and developing.
Both of Mr Khai & Mr Thao also mentioned in the interview
Since 2005, we have developed the Aortic portfolio, which has now been active for 15 years and serves approximately 100 healthcare professionals Promoting Aortic products requires specialized hospital infrastructure such as Hybrid Rooms, DSA machines, and CT scans, along with extensive training, as implanters must complete at least two years of preparation Our marketing efforts have expanded across at least 20 provinces in Vietnam, demonstrating our commitment to widespread adoption Given these efforts and resource investments, we are evaluating whether our spending aligns with our growth and market penetration goals.
KOLs instead of ordinary implanters The information of Aortic is not actually new nowadays
In the southern region, our Aortic and PV/EV portfolios have been developing for an extended period, prompting us to engage third-party congresses to invite Key Opinion Leaders (KOLs) and stay updated on the latest industry knowledge While this strategy has incurred significant costs, it has proven to be a valuable investment in maintaining expertise and market relevance To optimize our budget and enhance customer engagement, we are increasing the number of Round Table Discussions (RTDs), which serve as a cost-effective way to foster meaningful interactions with healthcare professionals.
The current quantity of customers is various in 3 portfolio, but the percentage of KOL is roughly 10-15% only
Table 9 Quantity of customers and KOLs by portfolio
To enhance customer targeting, companies are increasingly focusing on delivering highly personalized experiences rather than adopting a one-size-fits-all approach This shift enables businesses to better cater to diverse customer needs and deepen engagement Currently, Medtronic emphasizes Key Opinion Leaders (KOLs), who represent 15% of its total customer base; this targeted focus remains effective in driving strategic growth.
To improve their marketing campaign, it is essential to revisit and refine segmentation strategies to target different groups effectively Currently, the KOL (Key Opinion Leader) group is overly focused, which limits the cascading effects of information dissemination Analyzing and adjusting segmentation can enhance the campaign's reach and overall impact.
Companies utilize multidimensional segmentation to effectively target existing customers and attract potential new ones, enhancing their market reach Implementing strategic segmentation allows businesses to optimize their marketing budgets and achieve better returns This approach provides a competitive edge by ensuring targeted efforts reach the right customers, ultimately improving market coverage and driving growth.
No Portfolio Quantity of customers Number of KOL
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Therefore, in this case, Medtronic may need to change their way of allocation their budget to focus on other segments like Cardiac Sugeon, Interventional cardiologist, but not KOLs
4.3.2 Not clear interpretation about customers insights
Unclear interpretation of customer insights can lead to misguided content and activities, resulting in wasted time and expenditure, ultimately weakening the overall outcomes Accurate understanding of customer needs is essential for effective marketing strategies that drive better engagement and return on investment.
Currently, most customer insights are derived solely from sales representatives' feedback, with little to no research or studies conducted to understand customer thoughts This reliance on anecdotal information can lead to misaligned messaging and ineffective communication strategies By implementing proper customer research, businesses can develop a clearer understanding of their audience, ensuring more accurate and impactful messaging that aligns with customer needs and preferences.
In some cases, when I invite some customers to join the meeting or event The content of the event actually is not perfectly fit with what the customer needs
When inviting a Cardiac Surgeon to speak, it is important to assign a moderator who is an Interventional Cardiologist, as they will focus on endovascular procedures rather than surgical techniques This ensures the presentation aligns with the expert's specialty, providing relevant and specialized insights for the audience Proper moderator assignment helps clarify the scope of discussions and enhances the event's overall coherence and professionalism.
According to Mr Quang, a sales representative, many Medtronic events are poorly designed to effectively communicate the intended messages to participants, leading to potential time and financial waste for both the company and its customers Additionally, numerous organizations overlook the importance of utilizing individual customer data related to purchasing behavior and specific event venues to enhance engagement and relevance.
Many companies tend to generalize their understanding of customer behavior across different segments, assuming that most customers share similar trends According to research, truly understanding customer insights involves comprehensive efforts to grasp both existing customers and non-customers Having a skilled insights team and collecting customer feedback is essential, as it enables businesses to identify barriers and environmental obstacles that influence customer behavior By leveraging these insights and data, companies can optimize their strategies to achieve desired outcomes efficiently and with minimal resources However, this common mistake of broad generalization remains prevalent across industries.
CAUSE VALIDATION
Based on literature (24,25,26,27), the researchers mentioned the effect of right promotion types of activities which relects the understanding of customer’s insights
With limited budgets, changing marketing strategies is essential for companies to enhance cost-effectiveness, increase revenue, and optimize resource allocation By diversifying and maximizing marketing channels, businesses can improve their return on investment while maintaining or reducing costs To effectively address these challenges, two strategic sub-approaches must be implemented to adapt and maximize marketing efficiency within budget constraints.
Based on discussions with Mr Khai and Mr Thao, the low sales team competencies, inadequate follow-up activities, and misaligned segmentation are identified as key factors impacting the P&L They highlighted that, due to the small size of the team, substantial changes such as restructuring or hiring new staff are unnecessary and could negatively affect short-term revenue According to Table 8, each sales representative manages approximately 20-40 doctors, which is manageable given the current workforce, indicating that the team’s size is sufficient and appropriate for their responsibilities.
Medtronic’s relationship with distributors is primarily based on their roles in sales and communication, where distributors must have dedicated sales representatives responsible for engaging with doctors These representatives discuss tender processes, quotas, product specifications, and address objections, ensuring effective sales negotiations Conversely, Medtronic sales reps are only authorized to provide clinical advice to physicians, as regulated by law and contractual agreements Additionally, both parties prefer to maintain the current operational structure established by global headquarters, making significant changes or improvements unfeasible at this time.
The primary cause identified for inefficacious marketing is the focus on incorrect types of promotional activities Addressing and eliminating this root cause can significantly enhance the cost-effectiveness of marketing efforts without exceeding the budget A comprehensive cause-and-effect analysis for Medtronic highlights the importance of targeted promotion strategies to optimize marketing outcomes and reduce resource wastage.
Figure 7 Cause-and-Effect map
ALTERNATIVE SOLUTIONS
ALTERNATIVE SOLUTION 1: RE-ALLOCATE EXPENDITURE TO OTHER CUSTOMERS’ GROUP BY DIFFERENT APPROACH
The total marketing budget was $546,900, with 44% allocated to third-party congresses and 24% to Proctorships (Honorarium for Speakers – KOL), indicating a significant investment in external engagement channels Despite this, only 95 out of over 400 doctors, primarily implanters, were actively engaged, suggesting that the majority of the target physicians have been rarely or not engaged at all Furthermore, the frequency of engagement per doctor appears to be insufficient to foster meaningful relationships or influence, highlighting a need to enhance outreach strategies for greater impact.
27 least 2 times per week) As a result, this solution will aim to increase the coverage rate without increasing the marketing funds
Research indicates that social networking sites like Facebook and Webex are cost-effective marketing tools that have significantly enriched the business landscape A recent advancement in Internet technology, “Virtual Customer Engagement,” enables companies to maintain customer interactions without additional costs Additionally, major global conferences in the medical device industry, such as those organized by the European Society of Cardiology (ESC), have transitioned to online formats This shift offers a valuable solution for companies like Medtronic and its distributors to sustain communication, retain regular contact, and effectively follow up with clients amidst changing circumstances.
Medtronic can enhance its market strategy by shifting focus from key opinion leaders (KOLs) to ordinary implanters, reallocating funds from costly third-party interventions and proctorships toward more affordable activities such as workshops and referral programs By reallocating approximately 30% of their marketing budget to these targeted activities, Medtronic aims to increase customer engagement, boosting the number of actively engaged clients by at least 40% This approach not only optimizes marketing expenses but also fosters stronger relationships with a broader customer base, ultimately driving greater adoption of their products.
The costs and benefits for this alternative solutions and the old allocating manner are pointed out as below:
Table 10 Cost & benefits for alternative solution 1
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Medtronic will maintain its overall budget but reallocate funds toward online workshops and cost-effective therapies The company's customer focus will shift from Key Opinion Leaders (KOLs) to Implanters, leveraging strategies such as Referral Programs, Round Table Discussions, and Webinars to drive engagement This strategic pivot enhances cost efficiency while targeting a broader audience through digital channels.
Based on Table 8, the total number of engaged customers is projected to be at least four times higher than in the past, which will increase engagement frequency without increasing the overall marketing budget The calculation indicates that 17 sales representatives can effectively manage approximately 15-30 roundtable discussions annually Transitioning to webinars will further reduce staff pressure, as vendor support will handle all logistics, including customer email communications and invitation design, streamlining the engagement process.
Online tools such as Webex and Microsoft Teams have proven effective in replacing physical meetings, offering benefits for both corporations and participants by eliminating the need for travel, expanding horizons, and reducing costs The trend of virtual meetings has been promoted by the regional marketing team, despite initial hesitation from Mr Khai and Mr Thao This technological shift enhances efficiency and accessibility for businesses and audiences alike.
Thus, this solutions is worthy of a try, which facilitate them to refresh their strategies and saving costs.
ALTERNATIVE SOLUTION 2: CONDUCT A SURVEY WITH DOCTORS TO
Currently, APV's customer insight data is primarily gathered through sales representatives' feedback during customer visits, as their portfolio has not yet completed any formal customer surveys This lack of standardized data collection methods introduces potential bias and limits the accuracy of understanding customer needs and preferences Implementing structured surveys will enhance data reliability and provide a more comprehensive view of customer insights.
Understanding customer insights is crucial for driving successful marketing activities Conducting surveys is an effective way to gather valuable feedback and deepen your understanding of customer needs Implementing regular customer research helps tailor marketing strategies, increase engagement, and ultimately improve your business results.
To effectively understand customer needs, Medtronic conducts randomized surveys with a sample size of at least 100 implanters This approach helps identify the specific content customers want to hear and uncovers current obstacles or hesitations they face regarding Medtronic products By analyzing this feedback, Medtronic can tailor its communication and address customer concerns more effectively, ultimately enhancing customer engagement and satisfaction.
Online surveys are an optimal choice for companies looking to efficiently utilize time and resources, making them an essential tool for organizations like Medtronic Conducting targeted online surveys to identify top KOLs and key implanters can significantly enhance their cost-effectiveness and strategic outreach While online surveys may have some limitations, literature suggests they should be prioritized over traditional face-to-face methods due to their broader reach and efficiency.
The cost and benefits for this alternative solution are mentioned below:
Table 11 Cost & benefits for alternative solution 2 Benefits:
Conducting a survey offers several key benefits, including providing Medtronic staff and distributors with opportunities to engage directly with customers and invite them to participate via online platforms, which also facilitates the collection of consent forms for future communication Additionally, survey data captures valuable insights into customer behaviors such as product awareness and service feedback, as well as actionable recommendations from doctors to enhance customer satisfaction and improve overall service quality.
SOLUTION JUSTIFICATION
During discussions with Mr Thao and Mr Khai regarding the optimal budget solution, Mr Thao highlighted that with a net revenue of approximately 4.4 million USD, there is a viable budget capacity to proceed with the proposed plans, as detailed in Table 1.
Vendor to analyze/implement survey 600,000,000 26,846 Participation fee (n0) 50,000,000 2,237 Survey questionaire design 5,000,000 224 Invitation printing/emailing 5,000,000 224
For a successful long-term strategy, conducting comprehensive customer surveys is essential to gather valuable insights Combining multiple methods, such as sales representative interviews during quarterly call visits, can provide a more in-depth understanding of customer needs This investment, estimated at around $10,000, will help businesses develop informed decisions and strengthen their market positioning.
In the short term, he emphasizes optimizing budget allocation and conducting online workshops to enhance efficiency His team will assess the effectiveness of these changes through initial measurements before implementing them on a larger scale, ensuring data-driven decision-making.
Compared to the second solution, the first one is quite affordable Actually, It doesn’t require extra fees for the changes The total required actions is to re-allocated budgets from conventional congresses and KOL engagement to Implanter engagement through workshops, Round Table discussion Moreover, online platform will be utlized in order to maximize the coverage without extra costs More importantly, the online platform will help current structure (with only 17 sales reps) can reach more customers with proper frequency If not, two managers will need to expand their workforces, increasing costs and no-promising results down the road
Among two solutions, I prefer changing the way that we allocate our budgets, as I mentioned before, currently, Doctor’s awareness about Aortic, Perpheral
The endovenous portfolio is well-developed, and with an investment of $30,000 in research, we have the potential to increase revenue significantly Implementing referral programs could help us earn approximately $300,000, given our profit margin of around 10% However, there is no guarantee regarding the effectiveness of the research, which introduces some level of uncertainty to our projections.
According to Mr Quang, a Sales Representative, and supported by relevant literature (34, 35), online platforms are essential for attracting new customers and maintaining relationships with existing clients Leveraging these digital channels is a cost-effective strategy that helps businesses retain their customer base and foster long-term growth.
Given the high cost and uncertain applicability of the second solution, the priority should be to focus on the first option within Medtronic's budget constraints It is essential to evaluate solutions that are both cost-effective and feasible for successful implementation in the business context.
CHANGE PLAN DESIGN
OBJECTIVES
The objectives to implement the selected solution are:
- Providing necessary tools for sales rep to maximize their ability to reach customers
- Create a effective way to help sales rep to manage their customer relationship effortlessly
- Saving costs while retaining the customer reach.
TARGETED OUTCOMES
An in-depth interview was conducted with Mr Thao and Mr Khai to understand their expectations regarding the proposed change plan Their insights provide valuable perspectives on the anticipated outcomes, highlighting key areas of focus and potential challenges This feedback is essential for aligning the change strategy with stakeholder needs and ensuring successful implementation Addressing these insights will help optimize the plan's effectiveness and foster stakeholder support.
- Number of customer can be engaged new years will increase at least 4 times
- The time that sales rep spend to follow up or conduct an event will be reduced, which does not pose stress for sales team
- Feedback from customers about new way of approach: at least 80% of doctors satisfy with new method
After 6 months working, the feedback from customers will be gathered and recorded for later check whether the aforesaid actions plan positively impacts their business or not.
ACTION PLAN IMPLEMENTATION
Based on the selected optimal solution, a comprehensive 180-day action plan has been developed, spanning from July 1, 2020, to December 30, 2020 This plan comprises nine key tasks designed for effective implementation The project involves dedicated personnel working collaboratively to ensure successful execution and achievement of objectives within the specified timeframe.
Mr Khai, Mr Thao, and the sales team members are implementing an action plan outlined in the attached Gantt chart, designed to enhance project efficiency and ensure timely completion For more detailed information and the latest updates, please download the full document from our email at uyi.pl.aluan.van@gmail.com.
No Task Duration Start date Personnel involved
1 Revise segmentation for Aortic, Peripheral & Endovenous portfolio
4 days 1 st July 2020 Mr Tu –
2 Divide cutomers list into level of potential
O: Key opinion leaders only A: Highest potential for sale B: medium potential for sale C: lowest potential for sale
4 days 6 th Jul 2020 Mr Khai &
3 Prioritize those customers into each types of marketing activities:
3 days 11 th Jul 2020 Mr Tu –
4 Create plan KOLs for 3 rd party congresses
4 days 15 th Jul 2020 Mr Tu –
5 Creat plan referreal hospitals (focus on A & B doctors) and satellite hospitals of big accounts like Bach Mai, Cho Ray, etc
7 days 20 th Jul 2020 Mr Tu –
6 Create plan for engage A & B doctors for workshop
5 days 28 th July 2020 Mr Tu –
7 Create plan for engage A, B, C doctors by online platform
5 days 3th Aug 2020 Mr Tu –
8 Implement and feedback – Wave 1 57 days 9 th Aug 2020 Mr Khai &
9 Implement and feedback – Wave 2 90 days 6 th Oct 2020 Mr Khai &
Table 12 Action plan (Author synthesis) tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Figure 8 Gantt-chart for action plan (Author synthesis)
Detailed description and objective for specific task are listed below:
1 Revise segmentation for Aortic, Peripheral
Review the segmentation which need to focus on
Going deep-dive into customer information like current behaviors, current treatment mindsets… inorder to identify potential barriers
2 Divide cutomers list into level of potential
Level by their influence and sale impact
List down all number of patients per months that they have Building their influence map which helps to analyze the current influence of them to others
3 Prioritize those customers into each types of marketing activities: KOLs for
Select each doctors to the suiTable engagement activities
Divide those doctors into suitatble engaged activities Like KOL will be engaged in 3 rd party only Doctor level C will be focused by online platform
Build clear picture for KOLs, individually in this Fiscal year
Select each program to engage each KOL
Set KPI to engage clearly in order to save cost but maintain the coverage of all KOLs
Company Name: Medtronic Project Lead
Divide customers list into level Mr Khai & Mr Thao 7/6/20 7/10/20 5
Prioritize customers into each type of activities Tu 7/11/20 7/14/20 4
Create plan KOLs for 3rd party congresses Tu 7/15/20 7/19/20 5
Creat plan referreal hospitals Tu 7/20/20 7/27/20 8
Create plan for engage A & B doctors for workshop Tu 7/28/20 8/2/20 6
Create plan for engage A, B, C doctors by online platform Tu 8/3/20 8/8/20 6
Implement and feedback – Wave 1 Mr Khai & Mr Thao 8/9/20 10/5/20 58
Implement and feedback – Wave 2 Mr Khai & Mr Thao 10/6/20 1/4/21 91
Display Week: Jul 27, 2020 Aug 3, 2020 tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
5 Creat plan referreal hospitals (focus on A
& B doctors) and satellite hospitals of big accounts like Bach Mai, Cho Ray, etc
List down all potential referral hospitals
Select list of satellite hospitals that will be referral hospitals from big accounts like Bach Mai & Cho Ray
Set KPI (Number of patients, number of proceduce will conducted during the event Etc)
A&B doctors will prioritized to be speakers
6 Create plan for engage A & B doctors for workshop
Build clear picture for A&B Doctors
Select each program to engage A&B doctors
Those A&B doctors will be prioritized to be speakers
7 Create plan for engage A, B, C doctors by online platform
Build clear picture for A&B, especially C doctors
Get plan to engage C doctors ( mostly in provinces like Hau Giang, Hai Phong, Can Tho, Quang Ninh, etc)
Pivot activities – get feedback through online survey about the activities and improvement
Pivot activities phase II – enrich from phase I and get feedback
Table 13 Detailed description & objectives for specific tasks
CONCLUSION
The study begins by examining Medtronic's recent financial downturn, primarily driven by increased marketing budgets Through interviews with key company personnel, analysis of internal data, and review of relevant marketing theories, the core issue identified is the low cost-effectiveness of Medtronic's marketing activities Addressing this challenge is crucial for improving the company's profitability and ensuring more efficient allocation of marketing resources.
The primary issue of low cost-effectiveness stems from three potential causes Addressing these factors is crucial to improving overall efficiency and achieving better economic outcomes By identifying and mitigating these underlying problems, organizations can optimize resource utilization and enhance financial performance Implementing targeted solutions based on these causes will lead to more sustainable and profitable operations.
The primary issue identified was the focus on the wrong types of promotion activities, leading to ineffective marketing efforts To address this, the company plans to re-allocate expenditure towards different customer groups using targeted approaches This strategy aims to expand customer coverage and boost employee productivity As a result, marketing cost-effectiveness will improve, enhancing the overall efficiency of promotional activities and contributing to a positive future P&L.
SUPPORTING INFORMATION
METHODOLOGY
This study aims to identify the primary issues and root causes contributing to inaccuracies in Medtronic's accounting reports, considering time and cost constraints of the problem-solving project By pinpointing these key factors, the research provides targeted solutions to improve reporting accuracy and ensure financial transparency Implementing these recommendations will enhance Medtronic's accounting processes, optimizing efficiency within project limitations.
- Secondary data: Medtronic company structure, Pinnacle company structure, financial reports, literatures in journals and researches
- Primary data: qualitative research and quantitative research Type of research tools to collect primary data:
- Quanlitative research: in-depth interview and focus group.
INTERVIEW GUIDE
Vietnam has low cost-effectiveness of regular Marketing activities in this years and propose solutions to solve it
# Key sessions Objectives Timing tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
To understand the current situation of business activities in Medtronic
Explore the cause of high-cost marketing activities and define the main reason
To explore the main reasons that lead to the problem
3 The solution To find out solutions 5-10 minutes Detail interview content:
1 Could you introduce something about yourself and the position you are working in this company X X
2 Do you think that Medtronic business in APV
Market is potential or not? X
3 Could you please share your opinion about sales results of APV Medtronic in this year 2019? X X
4 Could you share the reason why Medtronic APV company do not meet the EBITA target? X X
In your own opinions which are the most important causes lead to low sales results of Medtronic company? And why do you think so?
What are solutions that the company has taken to improve the situation X X
What are your opinions about the effectiveness of the solution? Could you share any alternative you think should be taken to solve this problem?
8 Among all solutions, what is the best way to do?
Why do you think so? X X tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
TRANSCRIPTS
- Time of interview: 9:00, 20th February 2020 in Hanoi Duration for each interviewer: 10-20 minutes
Address: Medtronic Office, 11th Gelex Tower, 52 Le Dai Hanh, Hanoi City
Interviewer: Luc Tuan Tu Interviewee: Mr Pham Thao Title: North Sale Manager Age: 47
Working experience period: more than 14 years as sales manager in Medical
Status: currently working at Medtronic in Hanoi
Luc Tuan Tu: Good morning Could you introduce something about yourself and the position you are working in this company
Pham Thao: My name’s Thao, I had 5 years working for Medtronic company and 9 years with Biotronik And I’ve been a sales manager of Medtronic from the beginning time in 2015
Luc Tuan Tu: over 5 years with a lot of experience Do you think that Medtronic business in APV Market is potential or not?
Pham Thao expresses confidence in Medtronic's future success, highlighting the company's strong position with its APV portfolio amidst limited competitors She emphasizes that the market is rapidly expanding, presenting significant growth opportunities for Medtronic in the near future.
Luc Tuan Tu: Sound great! Could you please share your opinion about sales results of APV Medtronic in this year 2019?
Pham Thao: To tell the truth, I see that this year acted as a milestone for APV
Vietnam has successfully launched new products such as NAVION, expanding market access in 3-4 key accounts This strategic growth has contributed to a positive revenue outlook and strong business performance by the end of the year.
Luc Tuan Tu: Could you share the reason why Medtronic APV company do not meet the EBITA target?
To drive APV performance in Hanoi, it is essential to focus on multiple aspects, particularly the Aortic Franchise Currently, we have only 10-15 Key Opinion Leaders (KOLs) in Aortic Therapy, most of whom require ongoing knowledge updates In the short term, we primarily engage these KOLs through educational activities on Thoracic Endovascular Aneurysm Repair (TEVAR) and Endovascular Abdominal Aneurysm Repair (EVAR) These activities feature KOLs sharing their expertise as speakers, which helps to elevate their professional reputation and reinforces our leadership in the field.
The cost of engaging those KOLs are significant As a result, the budget exceeds our proposed expenditure at the beginning of this year
Luc Tuan Tu: Among factors, in your own opinions which are the most important causes lead to low sales results of Medtronic company? And why do you think so?
Pham Thao believes that Medtronic's sales team has been effective in delivering strong performance To reduce marketing costs, he emphasizes the need for more efficient methods and activities, highlighting that follow-up is crucial; without it, activities become useless, such as the significant investment in sponsoring doctors to travel to the US which can be wasted if post-event follow-up is neglected He also points out that insufficient selling skills among sales representatives can negatively impact sales effectiveness, making continuous training and assessment essential A memorable example for him is after the National Heart Congress in Hanoi, where they engaged six main KOL speakers, including Dr Nguyen Manh Hung and Dr Le Ngoc Quang, showcasing their successful speaker engagement strategy.
Dr Alex Wong from the USA contributed a service valued at over $10,000, though measuring the exact impact remains challenging due to the lack of comprehensive presentation materials Having such materials could enhance the effectiveness of our efforts, improve the quality of presentations, and increase engagement frequency with healthcare professionals Currently, our network includes approximately 400 Healthcare Professionals (HCPs), and leveraging better resources could significantly boost our reach and influence within this audience.
To boost revenue, it is essential to expand the PV and EV portfolios strategically, focusing on increasing market share and diversifying product offerings Enhancing the scalability and innovation of these portfolios will drive growth and ensure sustainable profitability in the competitive energy sector.
Our sales team primarily targets major hospitals such as Bach Mai, Hanoi Heart, Cho Ray, and the University of Medical Center in Ho Chi Minh City to engage healthcare professionals effectively The main objectives of participating in third-party congresses are to expand market access and increase customer coverage However, with only nine sales representatives, our capacity to cover approximately 500-600 healthcare professionals (HCPs) remains limited Despite developing our Aortic portfolio in 2005—over 15 years ago—the total number of HCPs engaged within this portfolio is still around only 100.
Promoting aortic products in hospitals requires specialized equipment such as Hybrid Rooms, DSA machines, and CT scans, along with trained implanters who must complete at least two years of dedicated training Our marketing efforts have expanded to cover at least 20 provinces across Vietnam, ensuring broader geographical reach However, there is a concern that we might be overspending on top KOLs instead of focusing on ordinary implanters, especially since information about aortic products is now widely available and not particularly new.
Luc Tuan Tu: What are solutions that the company has taken to improve the situation?
Pham Thao suggests leveraging technology to reduce costs, proposing the use of webinars instead of traditional in-person gatherings By conducting meetings online, we can eliminate expenses related to hotel venue, meals, tea breaks, and meeting fees, while still effectively engaging speakers and educating participants through internet-based platforms.
Luc Tuan Tu: What are your opinions about the effectiveness of the solution? Could you share any alternative you think should be taken to solve this problem?
Pham Thao: We try the idea before, in June 2019, it was a webinar between Bach Mai
Dr Than shared valuable medical insights with Thai Binh Hospital via Webex, enabling Thai Binh’s doctors to ask questions virtually, which enhances remote medical education This virtual training approach benefits both parties by eliminating the need for travel to Hanoi, promoting cost-effective knowledge sharing To further improve interaction, increasing Round Table Discussions could be an effective alternative, especially beneficial for new accounts, fostering more dynamic and in-depth clinical discussions.
Luc Tuan Tu: Among all solutions, what is the best way to do? Why do you think so?
Pham Thao: As I said, there are not the best way, just the most suiTable way to do
Our application process is tailored to the specific characteristics of each hospital and aligned with the client's insights, ensuring a personalized approach that meets their unique needs We leverage detailed understanding of hospital requirements and customer preferences to optimize application success This strategic customization enhances the effectiveness of submissions, increasing the likelihood of favorable outcomes.
Understanding the customers’ insights will be foremost Therefore, we can apply both ways
- Time of interview: 16:00, 19 th February 2020 in Hanoi
Duration for each interviewer: 10-20 minutes
Address: Medtronic Office, 11 th Gelex Tower, 52 Le Dai Hanh, Hanoi City
Interviewer: Luc Tuan Tu Interviewee: Mr Vien Quang Title: North sale representative Age: 26
Working experience period: more than 4 years as sales representative in
Status: currently working at Medtronic in Hanoi
Luc Tuan Tu: Good morning Could you introduce something about yourself and the position you are working in this company
Vien Quang, a dedicated medical representative with four years of experience at Medtronic since graduating from university, now works for the Aortic Group He focuses on promoting Abdominal and Thoracic stent grafts at Bach Mai Hospital, leveraging his expertise in cardiovascular medical devices to serve healthcare providers and improve patient outcomes.
Luc Tuan Tu: Sound great! Could you please share your opinion about sales results of APV Medtronic in this year 2019?
Medtronic stands out from its rivals primarily due to its exceptional T&E (Travel and Expense) programs, which are highly valued by doctors Physicians prefer Medtronic because they know the company sponsors their participation in international conferences and training events, helping them enhance their knowledge and skills This strategic support significantly boosts customer engagement and reinforces Medtronic’s reputation as a leading medical technology provider The effectiveness of inviting healthcare professionals to third-party congresses and conferences plays a crucial role in strengthening relationships and advancing medical expertise.
Sharing experience and educating healthcare professionals about new therapies are essential components of medical advancement While regional congresses offer valuable opportunities, many benefits could be achieved more cost-effectively through local conferences, especially when experienced professionals, such as Vietnamese proctors with nearly a decade of expertise in aortic therapy, can lead training sessions By replacing some regional events with local ones, we can reduce costs without compromising the objectives of knowledge dissemination and skill development.
Luc Tuan Tu: Could you share the reason why Medtronic APV company do not meet the EBITA target?
In my territory, we primarily engage doctors through the T&E program, focusing on Bach Mai Hospital where many KOLs are main implanters Consequently, we allocate a larger budget to invite these key doctors Since regional congresses are not feasible, we mainly involve them as speakers at local congresses and participants in global events.
Luc Tuan Tu: In your own opinions which are the most important causes lead to low sales results of Medtronic company? And why do you think so?