Becton Dickinson &

Company Case Analysis

Becton Dickinson & Company

Problem Statement:
How to respond to the changing buying behavior of customers across different market segments ?
BDVS Growth Drivers: Quality (R&D), Low Production Cost (Market Share), Brand (Product Range, Response Time & Quality)
Hospitals ( V-state, Modified Re-buy): Basis of Purchase 1. Cost-Benefit Analysis 2. Quality of Supplies 3. Availability of Supplies

Recommendation:
Reject APGs demands for private-label and distribution demands and stick with the proposed contract
Target hospitals through Z-contracts and compete on the basis of product quality, availability and responsive to
user demands
Design dedicated contract terms pertaining to the need of small and large hospitals. Ensure symmetric
margins.
Structure efficient distribution network to reduce logistical expense ( which is equal to raw material expense)
Develop the growing physician market with the help of distributor to expand the network to cater to these
Cons
customer
Loss of market share and revenue
Pros
New selling techniques to be developed for the
Premium pricing for higher quality
untapped market
Maintain Brand Identity
with large distributors
Challenges
Relationship

Increased R&D costs to justify product

differentiation

Convince DMUs of larger hospitals to buy through Z contracts

Control
on distribution network

Set pricing for the changed market scenario

Catering to the requirements of the new market segment

BDVS