BCG - The Boston Consulting Group

Situation

The client is a leading medical device multinational with a number of business units in China. Each business unit produced and marketed different products and had its own sales team and distribution network; but they all shared the same general management team. Sales and distribution issues needed attention: coverage was limited to large hospitals and top tier cities; because each business unit had its own sales force, few synergies were realized. The client wanted to improve the overall effectiveness of its sales force and create additional growth.

Approach

BCG conducted extensive market research to help the client better understand market potential and key growth drivers, as well as the extent to which its sales and distribution networks would need development. Next we thoroughly assessed the client’s current sales and distribution operations to pinpoint areas that needed improvement. We also benchmarked key competitors, relevant industries, and similar foreign markets to identify best practices and emerging trends. Finally, we designed an optimized sales and distribution structure which would support growth for each business unit, and ultimately for the company as a whole.

Impact and value created

The BCG team developed a well structured action plan for our client that outlined a number of  sales and distribution options. We made detailed recommendations to improve sales force effectiveness, including sizing, segmentation/allocation, and structural design for each business unit. In addition, we uncovered synergies that could be exploited across all units and created a comprehensive implementation plan. As a result, the client was able to achieve the improved sales effectiveness and distribution efficiencies it had been seeking.

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