How to enhance communication skills of salespeople at curewel international company in viet nam

  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   ii     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   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,   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   iv   TABLE OF CONTENTS ACKNOWLEDGEMENT i   EXECUTIVE SUMMARY ii   TABLE OF CONTENTS iv   LIST OF TABLES AND FIGURES vi   LIST OF ABBREVIATION .vii   CHAPTER 1: PROBLEM IDENTIFICATION   1.1 Company background   1.2 Background of problem   1.2.1 Symptoms   1.2.2 Possible problems   1.3 Problem justification 14   1.3.1 Problem definition 14   1.3.2 Justify the existence of the central problem 15   1.3.3 Justify the importance of the problem 17   1.4 Potential causes of the problem 18   1.5 Causes validation 20   CHAPTER 2: ALTERNATIVE SOLUTION ANALYSIS 22   2.1 Alternative Solutions 22   2.1.1 Training 22   2.1.2 Teamwork 24   2.1.3 Dismissal and recruitment 24   2.2 Solution comparison 24   2.3 Select the best solution 27   CHAPTER 3: ACTION PLAN 29   3.1 Business goals 29   3.2 Objectives 29   3.3 Cost and benefit of three alternative solutions 29   3.4 Detailed implementation plan 29   CHAPTER 4: SUPPORTING INFORMATION 31   Table 4.1 Interview sales people to identify the most important causes of the problem 31   Table 4.2 Interview sales people to identify the most important causes of the problem 32   Table 4.3 Interview sales people to identify the most important causes of the problem 33     v   Table 4.4 Interview sales people to identify the most important causes of the problem 35   Table 4.5 Interview customers to identify the most important causes of the problem 36   Table 4.6 Interview customers to identify the most important causes of the problem 37   Table 4.7 Interview customers to identify the most important causes of the problem 39   Table 4.8 Interview customers to identify the most important causes of the problem 40   APPENDIX 48   Appendix A Survey questionnaire: Interview pharmaceutical salespersons of CIV to find out symptoms 48   Appendix B Survey questionnaire: Interview pharmaceutical customers to find out possible problems 49   Appendix C Survey questionnaire: Interview pharmaceutical customers to identify the existing of problem 51   Appendix D Survey questionnaire: Interview sales people of CIV to identify main causes of problem 52   Appendix E Survey questionnaire: Interview pharmaceutical customers to identify main causes of problem 53   Appendix F Survey questionnaire: Interview board managers to select the best solution for the problem and detailed implementation plan 54   Appendix G Customers’ assessing about communication skill of CIV’s sales people 55     vi   LIST OF TABLES AND FIGURES Table 1.1 Revenue of CIV and RV Life from 2013 to 2016……………………………… Table 1.2 Average time to win customers………………………………………………….10 Table 2.1 Strategies evaluation…………………………………………………………… 25 Table 2.2 Cost and benefit of three alternative solutions………………………………… 26 Table 3.1 Detailed implementation plan……………………………………………………30 Table 4.1 Interview sales people to identify the most important causes of the problem… 31 Table 4.2 Interview sales people to identify the most important causes of the problem… 32 Table 4.3 Interview sales people to identify the most important causes of the problem… 33 Table 4.3 Interview sales people to identify the most important causes of the problem… 35 Table 4.5 Interview customers to identify the most important causes of the problem…… 36 Table 4.5 Interview customers to identify the most important causes of the problem…… 37 Table 4.5 Interview customers to identify the most important causes of the problem…… 39 Table 4.5 Interview customers to identify the most important causes of the problem…… 40   Figure 1.1 Structure of sales force of pharmaceutical industry…………………………… Figure 1.2 Number of Pharmaceutical Customer……………………………………………5 Figure 1.3 Number of Pharmaceutical Customer……………………………………………7 Figure 1.4 Cause - and - effect map……………………………………………………… 20   vii   LIST OF ABBREVIATION CIV……………………………………………Curewel International (Vietnam) Co., Ltd     CHAPTER 1: PROBLEM IDENTIFICATION 1.1 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 PharmaCosmetic   41   Ms Hanh (Chief of Pharma Department of Hong Duc Hospital) CIV's products better than competitors Yes Not really understand Salesperson listened when talked to me (Source: Interview customers)                                       42   References Annual report (2013, 2014, 2015, 2016), Curewel International Vietnam Applegate, M (n.d.) 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How many new customers could you find in each year 2013, 2014, 2015, 2016? What you to contact your clients and how you convince them to buy products? Thank you very much for your contribution!   49   Appendix B Survey questionnaire: Interview pharmaceutical customers to find out possible problems  What is your company name? What is your position in company?  Which product category does your company deal with?  When the salesperson first met you, what did they communicate about? a Product b Price c Other information  Did the salesperson compare CIV’s products with competitors’ products?  What you think about the communication skill of the salesperson? Did the salesperson clarify all your queries? Tell me what queries you still not get clarified?  How much time in average did the salesperson take to complete the deal with you? What you think about closing deal skill of salesperson of CIV?  How much time in average did the salesperson convince you to buy new product of CIV?  What you think about negotiation skill of CIV’s salesperson?  Is there any information about product or price conflict between the salesperson and manager you ever faced? 10   What difficulty you faced when the license of pharmaceutical products expired? 11   What did you when the license of pharmaceutical products expired? 12   Did you have any difficulty with the time of renewal/new registration process? 13   Which following company that you bought product from? a Curewel International Vietnam b RV Life   50   c Oval Import Export d Other company (name it) …… 14   Besides the salesperson of CIV, whose other following companies met you? a Curewel International Vietnam b RV Life c Oval Import Export d Salesperson from other company: 15   When you think of buying new pharmaceutical products in antibiotic/anti ulcerants category, what brand of supplier come to your mind? Why? Thank you very much for your contribution!   51   Appendix C Survey questionnaire: Interview pharmaceutical customers to identify the existing of problem Please answer following questions about by cycle the appropriated answer about CIV’s sales people (with for totally disagree, for disagree, – slightly agree, – neutral, – slightly agree, agree, totally agree) CIV’s sales people CIV’s sales people give full attention when they talk to you CIV’s sales people keep eye contact throughout conversation with you CIV’s sales people treat you respectfully CIV’s sales people ask the best questions to invite the best answers from you to understand your need CIV’s sales people ask for clarification of whatever they don't fully understand about your need of pharmaceutical product CIV’s sales people ask the best questions to invite the best answers from you to find your problem CIV’s sales people encourage you to talk about your problem you faced in your pharma business CIV’s sales people consult you with appropriated product 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 CIV’s sales people apologize you because they could not handle renewal of expired products license in time or could not arrange 1234567 new license of products to replace the expired licenses 10 11 CIV’s sales people discover what is in the best interest of you CIV’s sales people deal optimally when you complain, criticize, blame and make excuses about product Thank you for your contribution! 1234567 1234567   52   Appendix D Survey questionnaire: Interview sales people of CIV to identify main causes of problem   How long have you worked for the company?   Was your sales revenue increased or decreased over the years from 2013 to 2016? Tell me about pharmaceutical products that are being provided by CIV a How many pharmaceutical products are being provided by CIV? b How many pharmaceutical product categories CIV is dealing with? c Did you explain well to your customers about indication of products? d Did you explain well to your customers about dosage of products? e Did you explain well to your customers about contraindications? f Did you explain well to your customers about side effects? g Did you talk to your customers clearly about price? How did you compare CIV’s products with competitors’ products (such as RV Life, Oval and other competitors) while introducing products? Were you enthusiasm in explaining your customer’s queries? How is level of your understanding about your customers’ need? Did you listen to your customers while talking? What did you to contact with your customers and how did you convince them to buy product? Thank you very much for your contribution!   53   Appendix E Survey questionnaire: Interview pharmaceutical customers to identify main causes of problem  What is your company name?  What is your position in company? Tell me how the CIV’s sales people talk about CIV’s pharmaceutical products? a How many pharmaceutical products are being provided by CIV? b How many pharmaceutical product categories CIV is dealing with? c Did sales people explain well to you about indication of products? d Did sales people explain well to you about dosage of products? e Did sales people explain well to you about contraindications? f Did sales people explain well to you about side effects? g Did sales people talk to you clearly about price? How did the CIV’s sales people compares CIV’s products with competitor’s product (such as RV Life, Oval and other competitors) while introducing products? Were CIV’s sales people enthusiasm in explaining your queries? How is level of CIV’s sales people understanding about your need? Did CIV’s sales people listen to you while talking? What did CIV’s sales people to contact with you and how did they convince you to buy product? Thank you for your contribution!   54   Appendix F Survey questionnaire: Interview board managers to select the best solution for the problem and detailed implementation plan We all know communication skills about information of CIV’s sales people is the main problem at CIV right now and the causes of this problem is lack of product knowledge Training will enhance knowledge of product, you agree? How can communication skill of the sales people be enhanced after training implementation? What are the disadvantages and advantages of training? How can CIV implement the solution? How much does it cost? What are the benefits in term of dollar and non-dollar values of this solution? Are there any constraints for CIV to implement this solution? Additonally, CIV also need to conduct teamwork for their sales people, which help improve knowledge of product Do you agree? Why you think so? How can communication skill be developed after solution implementation? What are the disadvantages and advantages teamwork? How can CIV implement the solution? How much does it cost? What are the benefits in term of dollar and non-dollar values of this solution? Are there any constraints for CIV to implement this solution? CIV can also dismiss old sales people and recruit the new ones to enhance communication skill of sales people staffs Do you agree? Why you think so? How is communication skill enhanced? What are the disadvantages and advantages of dismissal and recruitment? How can CIV implement the solution? How much does it cost? What are the benefits in term of dollar and non-dollar values of this solution? Are there any constraints for CIV to implement this solution? Would we make the detail plan for each solution together? Thank you for your contribution!   55   Appendix G Customers’ assessing about communication skill of CIV’s sales people Descriptive Statistics Maxim Std N Minimum um Mean Deviation CIV’s sales people give full attention when they talk to you CIV’s sales people keep eye contact throughout conversation with you CIV’s sales people treat you respectfully 60 2.00 4.00 3.1537 89765 60 2.00 4.00 2.7265 75621 60 2.00 3.00 2.4331 53526 CIV’s sales people ask the best questions to invite the best answers from you to understand 60 2.00 4.00 2.8613 89899 your need CIV’s sales people ask for clarification of whatever they don't fully understand about 60 2.00 4.00 3.1002 81235 your need of pharmaceutical product CIV’s sales people ask the best questions to invite the best answers from you to find your 60 2.00 4.00 2.8613 89899 problem CIV’s sales people encourage you to talk about your problem you faced in your pharma 60 2.00 5.00 3.1537 1.07786 business CIV’s sales people consult you with 60 2.00 4.00 2.5625 78507 appropriated product CIV’s sales people apologize you because they could not handle renewal of expired products license in time or could not arrange 60 2.00 4.00 2.7265 94217 new license of products to replace the expired licenses CIV’s sales people discover what is in the best 60 2.00 4.00 2.8613 89899 interest of you CIV’s sales people deal optimally when you complain, criticize, blame and make excuses 60 2.00 5.00 3.7254 94217 about product Valid N (listwise) 60 (Source: Statistic from interviewing customers) ... Piercy (2010) indicated communication is one of four factors that are “internal” to the sales and marketing interface Within the interface, creating effective communications is used to improve 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,... 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