In this simulation we are learning about ways to boost sagging sales. In my company, we are a large OEM that sells directly to the customer, and when we have sagging sales, the first thing we do is an depth market analysis to try to determine what is causing this. Our selling prices are largely driven by the market, and therefore sometimes we can have bad sales numbers just due to price erosion in the market. Also, in the medical device industry, the sales force is a very dynamic organization, and it is very difficult for companies to hold onto their sales reps, as they are constantly being called by our competitors and being offered much more money. Last year all the sales reps in one of our regions went over to a competitor, and that really hurt our sales numbers for the year.
What has your experience been in the company you work for when your sales aren't looking so good?
During my time at my company, I have not experienced a period when sales were on a decline. However, coworkers have told me what the company did in the past when the sales weren’t good. Upper management met up and discussed funding a new R&D project which would increase sales. Meetings were held to figure out how we could maintain or increase our sales. Sales representative went around to hospitals and gave seminars on how to utilize our products. As a result, sales began to increase, the new R&D project launched which increased sales drastically. But for one product line was not picking up sales regardless of all the efforts made, therefore, marketing decided to obsolete the product line.
A procedure that I have noticed that has seemed to work is market research on each product line the company offers. The research is presented to of concern departments and an assessment is taken. Products that have shown a decline and no real strategy for change are usually had obsolete. Which makes sense, why waste resources on a product that is declining in revenue and something that the company cannot improve. For the flagship products, a strategy that works is a marketing revamp that targets the customers and shows more value towards them. In addition, more resources from R&D towards that product can also help keep competition for other companies. I think it is important for companies to keep product information up to date not just when there is a sales crisis. R&D should also always be active in innovation both in new technologies and tech that already released.
We usually use passive marketing techniques where people come to us for a license and we usually have consistent sales. However in the last year in order to increase sales, we have created a catalog of all of products available for licensing and instituted a one-click license. The one-click license allows the licensee to select the product from the catalog on our external website and with "one click" sign a license and pay for the license/material using a credit card method. The idea of credit card payments is new to our licensees and some still prefer invoices and alternative payment methods (check/wire transfer), but its slowly catching on. To increase sales we look to every quarter see if there are new materials and every 6 months we will update our marketing materials.
From my experience if sales numbers are lagging, there needs to be a way to compensate that by finding ways to SAVE money. Usually if sales at my company are falling behind for the year I have noticed the engineering department initiates more Lean projects to try and cut cost within manufacturing. I believe this is a very good way for a team outside of sales to get involved and help pitch in toward the lack of money coming in from selling product. From my experience, we usually try to cut cost and initiate projects that directly effect the yields of our products and try to increase the yields of production so we are not wasting resources and material. Just by saving a lot from being scrapped can go a long way toward helping this type of effort.
