Mediquip S.A.

(R)
Case Analysis

From: Group 10
Sneha Karanth N
Hardik Prakash Thakkar
Anup Munavalli

Siddhesh Shyam Rane

Problem statement: In what ways could Mediquip develop a sales strategy and ensure that sales
team could avoid such situation in future?
Situation analysis: Mediquip was renowned worldwide for its advanced technology and post
purchase services. Yet LHU made deal with its competitor Sigma for the CT scanner
requirement. The factors apart from inadequate deal were as follows:
1. Unable to define a Point of differentiation: Kurt Thaldorf was unable to define a point of
differentiation between Mediquip product and its competitors. He could not justify the
above average price of their equipment and not gauge proper benefits and values for the
extra price that the product demanded. Also he did not have proper knowledge of the
equipment as he mentioned that it fulfilled all the required specifications.
2. Bad first impression: Lack of preparation, communication and product knowledge during
the first sales pitch lead to bad first impression on the company repute. There were
numerous calls and the frequency was also not well defined. Although the product has
features from around 2 year future technology, it was not communicated with conviction
by the sales team.
3. Improper price negotiation: The price reduction was not justified when the product has
hi-tech features as compared to competitors. Reduction in the price made the product
look like a commodity and not worth. There was not coordination between Kurt and his
superior on price decision. There were multiple price reductions which gave mixed
messages regarding the quality of product.
4. Lack of co-ordination: Kurt had talks with each stakeholder separately. Also there was
information discrepancy between the initiator and decision maker. This made a negative
image regarding Kurt in the minds of the stakeholders like Prof. Steinborn and Director
Carl.
Solution alternative:
1. Revised Pricing Strategy
2. Restructuring and developing Sales Team
Action plan: Considering the advanced technology involved in product design the high price is
justified. So we recommend the second alternative. Accordingly.
1. Restructuring: The team should have members with defined roles. Thorough preparation
before a sales pitch is very important. This must include need assessment, competitor
analysis, information about stakeholders etc.

2. Communication: The communication strategy must be drafted. This should include welldefined number of calls and meetings, adequate follow-ups. Also the sales personal must
have ample knowledge of functional and financial benefits of the product. Overall
maintaining a relationship with stakeholders
Plan B: The contingency plan for tacking such issues is that sales executives can insist on a
product demo for the clients. Also joint meeting of all stakeholders from buyers side and sales
executive should be arranged to negotiate price of product in person.