CASE STUDY IN DISTRIBUTION MANAGEMENT FOR HCPI

1. What was the problem in this case? (Please state two (2)
2. What are the alternative solutions? State four (4) possible alternative solutions.
3. What is your best solution in terms of the most effective channel network and how it will answer the problems identified in # 1. Illustrate.
   

Health Care Products, India, (HCPI), is a new company in the healthcare and lifestyle I wellness products. The parent company of HPCI in the US is a global leader in these product categories. The company focus is on mothers, children and infants. HCPI planned to enter the Indian market with a unique product. It is a low-cost infant warmer used for vulnerable babies born premature and of low weight. Normally, such babies are put in an incubator for a limited number of days till they gain weight and get close to normal weight. Use of such incubators in hospitals and nursing homes is quite expensive for the parents of the babies. After years of extended research, HCPI has developed this unique instant warmer branded as "Warmhug" and priced about 10 percent of the cost incurred on using an incubator. This product is a boon to mothers of premature babies and will become popular due to its simplicity in usage. The Warmhug baby warmer looks like a small sleeping bag and is easy to handle and transport. The company has created a robust sales organization in India. The sales set-up includes: . Sales Relationship Managers to build strong ties with doctors, hospitals, and nursing homes . The relationship managers have the support of product usage trainers to work directly with customers . A 24x7 helpline to handle customer queries. HCPI has also developed an efficient back office department to register and manage customer orders. Mr Balaji, the national sales Manager (a 15-year veteran in the pharma and healthcare business) was delighted with the efforts so far. He was confident that with the sales organization and the supporting order management system, HCPI was ready to flood the market with Warmhug- The market reality came as a shock to Balaji. He was not able to get "dealers" for the product, Warmhug. Even though salespeople met prospective dealers and tried to convince them about the US parent company of HCPI and the wide range of international products in its repertoire, dealers were still not interested. Balaji was also not sure how to educate customers (mothers in the select set) on how to use the product. Mothers (in a simple market research conducted by HCPI) seemed reluctant to depend on an unknown product to protect their precious new-born. Balaji was thinking seriously of the most effective channel network to be created and developed for HCPI in India