Case Study Vscribes

Case Study

Vasant Scribes
Product & Brand Management

Professor Dr. Sanjay Patro

Situation Analysis In the past 2 years V Scribes has diversified into two new streams of business namely Medical Billing and Market Analytics. Their core Medical transcription business has given them good growth in the initial years and is in the maturity stage with consolidations / acquisitions. Last year there was zero growth for V scribes in this line. The two new product lines are not giving returns as expected by the management. Medical billing is a forward integration business whereas Market Analytics is high end specialized sector Case Facts Small Firm in third tier, entered into this segment from chemicals in the initial phase of product life cycle. Enjoyed growth from repeat customers ( 62.5%), References ( 45%) and Associates ( 50% ). No other marketing activity (telemarketing, ads., Exhibitions & sales persons) gave them business. Entered Medical billing with a new brand name ( Vantage billing services ). All the product lines treated in same way. Problem Definition The Company is not getting expected business in the new product lines, their core product line is getting stagnant and people hired for new product lines are leaving. Reasons The Company’s growth in the Medical transcriptions came due to growth of market and timing, all the business came through without any marketing efforts for the business. With the similar approach the new product lines are introduced, which are in the matured phase of PLC. Medical billing which is a forward integration value added product line, introduced with different brand name. Customers will take time to accept a new brand. The employees (who have come from experienced companies) are seeing the difference approach of the

References: (  45%)  and  Associates  (  50%  ).  No  other  marketing  activity  (telemarketing,  ads.,  Exhibitions  &  sales  persons) gave them business.   Entered  Medical  billing  with  a  new  brand  name  (  Vantage  billing  services  ).  All  the  product  lines treated in same way.    Problem Definition  The Company is not getting expected business in the new product lines, their core product line  is getting stagnant and people hired for new product lines are leaving.   Reasons   The  Company’s  growth  in  the  Medical  transcriptions  came  due  to  growth  of  market  and  timing, all the business came through without any marketing efforts for the business.  With the  similar approach the new product lines are introduced, which are in the matured phase of PLC.  Medical  billing  which  is  a  forward  integration  value  added  product  line,  introduced  with  different brand name. Customers will take time to accept a new brand.  The  employees  (who  have  come  from  experienced  companies)    are  seeing  the  difference  approach of the company towards product lines and are leaving.            Observations and Corrective actions   Now the company has three product lines, one existing and two new. The new product lines to  be analyzed separately as they have different customer segments.    a) Market Analytics     Diversification to new product lines is a requirement of business to reduce the business risk.     While entering matured product lines, the growth is slow, marketing efforts to be put in, are  enormous.  The Marketing to be done in similar ways the competition is doing or better.     The  single  customer  for  Market  analytics  (High  end  product  line)  business  came  through  a  sales person; here the communication and marketing are the keys, to be handled differently.  The Company can look at hiring Product Manager and analyze the Market analytics business  with peers and not with existing product lines.    Company  to  utilize  the  experience  of  the  new  employees  hired  from  competition  to  build  systems & processes and have a separate identity for the customer confidence building     b) Medical Billing & Medical Transcriptions    The  Medical  billing  product  line  diversification  came  as  a  natural  progression  from  existing  customers.    Medical  billing  and  transcriptions  can  be  integrated  and  marketed  for  new  customers.     If  the  product  line  is  a  forward  integration,  introduce  with  same  brand  name  for  identity,  Existing brand image can enhance the customer confidence.     From Appendix 4, it is evident that there is a gap between supply and demand for the Medical  transcription  product  line.  Hence  company  can  continue  in  this  business  line  but  change  the  marketing style and get business from new customers.    Hence, the company can continue in the new diversification with changed strategy.