Customer Relationship Management Analysis - Research Paper Example

?CRM Research Paper Overview Relationship Management plays a significant role in every business organization in the modern perspective. In order to identify the influence of an effective CRM, the paper shall analyze the marketing system of a pharmaceutical company, the Hanmi Pharmaceutical. With this purpose the paper shall focus on two particular products of the company, i.e. Amodipine and Clari. These are the top selling products of Hanmi Pharmaceutical Corporation. Amodipine was created by Hanmi Pharmaceuticals which achieved record sales in the year 2003. Its market share has reached 20% in the hypertension drug market. The company wanted to raise the awareness about Amodipine brand through advertising it as nation’s hypertension drug (Hanmi, “Hanmi at Glance”). Clari is another major pharmaceutical product of Hanmi Pharmaceutical Company. It is a Macrolide Antibiotic. It is one the Hanmi’s first generic drugs which are used to cure infection. It has benefited Hanami with robust sales and has ranked second in the sales of drugs after amodipine. Its sales were above 10 million USD in the year 2009 (Hanmi, “Hanmi at Glance”). Hanmi Pharmaceutical Hanmi Pharmaceutical Company was established in the year 1973 and from then onwards it has grown remarkably. Hanmi incessantly showed 20% to 30% growth rate since its establishment. It has emerged as one of the largest pharmaceutical companies in Korea. In the year 2008 its sales was more than 558 million USD. By developing good R&D strategy Hanami Pharmaceutical has now been able to become a most competitive organization in the international market (Hanmi, “Hanmi at Glance”). Value of Customer Relationship Management (CRM) CRM is an approach to create, expand and maintain customer relationship. It provides a vision to an organization in order to deal with their valuable customers. To meet these visions, organization should implement effective CRM strategies that can increase the sales, develop the customer service, marketing and data analysis activities. Notably, the main objective of CRM is to maximize beneficial relationship with customer for both dealer and customer. Hanmi’s high quality marketing as well as sales based information technology is considered as the main driving force which has resulted in consumer growth. Hanmi Pharmaceutical is dedicated to develop and provide innovative and valuable drugs to the customer to maintain an effective customer relationship. Hanmi Pharmaceuticals has been producing Cephalosporin products since 1987 and supplies products in over 40 countries. Hanmi has a wide range of customers in many countries of the USA, Europe and Asia. Their new manufacturing plant has the ability to produce many ‘innovative drug APIs and intermediates’ (Hanmi, “Hanmi at Glance”). Hanmi Pharmaceutical also maintains efficient relationship with their global partners for exploring modified drugs such as esomeprazole, clopidogrel, clari, amodipine and others. Hanmi is also working to find business partners in other parts of the world where they have not established yet (Hanmi, “News Archives”). In the year 2007 Hanmi Pharmaceutical got “Forbes management first prize”. Forbes had put a high valuation on Hanmi because of adopting ERP IT technology and took the social responsibility through a sustainable management approach. Hanmi Pharmaceutical always supports society to help customers live better in a cleaner environment. For instance, for children Hanmi changed single cap medicine to double capped medicine. It planned and promoted various strategies to upgrade the quality of life of customers with efficient CRM strategies (Hanmi, “News Archives”). Customer Retention Program (CRP) Often organizations develop programs which offer purchase inducement, such as discounts on any purchase from any company or “soft benefits” which is referred to as Customer Retention Program (CRP). An effective CRP includes plans and methods for identification and registration of customer, customer segmentation, design reward system and program for maintenance operation. It provides simple observation of customer benefit and motivates them to purchase, repurchase, or purchase more regularly. Hanmi has developed the pharmaceutical market with low price product and high quality. It helped them to retain customers by lowering the price of the product and stopping the outflow of foreign currency. Hanmi also invests 80% in developing new drugs and 5% in developing generic products. It was a good and successful strategy to ‘shake’ the market by retaining customers towards Hanmi Pharmaceutical products (Hanmi, “Hanmi at Glance”). Hanmi Pharmaceutical performs various programs to create a good image and brand value compared to other competitors. The company participated in a NGO activity, whose objective was to support the children with facial deformity. That business was conducted by ‘Global Care’, a NGO of Korea. The new NGO business of Hanmi Pharmaceutical has supported almost 1000 children with medical surgery, hospitalization, transportation, and pharmaceuticals since 1997. The company has been performing these activities since 11 years (Hanmi, “Supporting children with facial deformity in Laos and Vietnam”). Customer Service (Call Center) Customer Service is the service to the customer before or after a product purchase. Good quality of customer service helps to maximize the customer satisfaction. It is the prime consideration of every business. Every time a customer contacts through call center, the company receive an opportunity to improve the relationship with the customer by providing them good and satisfactory service. Every business needs to provide good customer care to find out what are the needs of the customer. Several factors contribute customer satisfaction, such as: Matching the product or service according to the customer needs Accuracy of customer service The efficiency and reliability in accomplishing customer orders Promptness of response Staff attitude and behavior Handling the complaint of customer Hanmi pharmaceutical is dedicated to provide support and render services to its customers. The call center support Hanmi pharmaceutical company with good ‘market research and Customer care Solution’. Call center can provide Hanmi pharmaceutical information about valuable services to patients, sales force, physicians and customers. Customer use call center as a channel for marketing which provide information about any disease or provide product information to customer or physician. The call center of Hanmi pharmaceutical promotes brand loyalty and drive sales force. It improves effectiveness of selling efforts as well as saves cost. Hanmi pharmaceutical company has expanded their operation of call center for reaching customers and minimizes selling cost (Hanmi, “Hanmi at Glance”). Sales Force A sales force is a powerful asset for any organization. The importance of sales force goes beyond the costs. It is entrusted with company’s customers. It is an integral part of the product and the value which a firm brings to the consumers. In case of pharmaceutical industry, the physicians frequently rank the ‘Pfizer’ sales force at the top of the industry. Advertising, promotion, telemarketing, internet and value added resellers play significant role for creating sales. Certain companies rely entirely on direct sales force and others rely on telephone call center, while some sell through internet. Hanmi Pharmaceuticals also has effective sales force system. The company has approximately 600 sales people which constitute its largest sales force in hospital sector. Hanmi Pharmaceutical operates efficient and methodical training programs and generously supports their sales persons. “Amodipine” is the perfect example of Hanmi Pharmaceutical’s effective sales force. “Amodipine” is a generic version of Pfizer’s “Norvasc”. It covered almost 21% market share after three months of launching (Hanmi, “Hanmi at Glance”). Hanmi successfully develops the quality by closing all sales stores and allowing the sales representatives to do their work from home. Hanmi is the first company that applies the automatic sales system (SFA) in the pharmaceutical industry and has become successful. Hanmi has increased the sales by possible use of mobile office to get any orders and payment. With the help of their new strategy Hanmi expects sales of 1 Billion USD by the year 2015 and 3 billion USD by the year 2020 (Hanmi, “Hanmi at Glance”). References Hanmi. “Hanmi at Glance”. March 09, 2011. About Hanmi, 2004. Hanmi. “Supporting Children with Facial Deformity in Laos and Vietnam”. March 09, 2011. Press Center, 2011. Hanmi. “News Archives”. March 09, 2011. Press Center, 2007. Read More