Ring Medical Case
Ring Medical Case Write-Up Central Issue: The Ring Group has to determine optimal positing, sales and distribution strategy of its newly developed product – HCS 100. ... Relevant Facts: Relationship with the parent company: Ring Group is only subsidiary of Scanvest Ring not located in Scandinavia. Given that parent company is focused on the Scandinavian markets, getting buy-in and hence additional resources to market HCS 100 in the US would be a challenge for Ring Group. ... Autonomy of Ring Medical: Right from the inception, Ring Medical has been an autonomous group. This might be a problem to implement a centralized sales plan as Ring Medical team might see it as a breach of independence and as a result fail to coordinate. ... This might be another big hurdle to get necessary resources from Scanvest and Ring Group to market the product. Customers of Ring Group in the past: Customers of Ring Group in the past had been hospitals, Brokerage Firms and public utilities departments. This might affect positioning and choice of customers for HCS 100 for two reasons – company would have some relationship built with these customers so it would be easy to sell to them and focus of the company in regards to target market would also be skewed as Ring Medical would fail to think beyond hospitals. ... Therefore it becomes very important for Ring Medical to find a niche and position HCS 100 right on the targeted niche. ... Before Ring Medical can expect customers to buy the system, it would have to educate them about the usefulness of the system. ... Revenue from add-on sales: Ring Medical is expecting huge profit from add-on sales. ... At the beginning Ring Group should target one particular market and should move on to other segments later on. ... Later on for growth purpose, Ring Group should take to products to other segments only after stabilizing the product in health care industry. ... Ring Group should deploy the direct sales force. Plan for Implementation As a target of selling approximately 3800 units in next five years, Ring Medical should recruit a direct sales force as pet the projections are shown in Exhibit 1.