IBSA Outlines Long-Term Strategy
Its recent short-term success notwithstanding, Indianapolis-based International Business Solutions Alliance is taking the long view when it comes to marketing, promotion and growth. The Alliance was awarded national contracts this year with health care group purchasing organizations Novation and FirstChoice Cooperative (FCC), and it announced a partnership with Xerox Corporation.
IBSA owners communicated their strategy for maximizing potential business from these accounts at the organization's annual meeting held July 18-20 at the Flamingo Resort in Las Vegas. The meeting also featured educational sessions, roundtable discussions, presentations by Novation representatives and an awards banquet honoring IBSA affiliates and suppliers.
Rodney White, vice president of health care sales for Indianapolis-based IBSA, updated attendees on the status of the Novation contract. He acknowledged that many affiliates experience frustration at penetrating accounts. Most hospitals that affiliates call on don't seem to know what Novation is or that they're part of its contract. One reason is because Novation is simply the contracting arm of VHA and University HealthSystem Consortium (UHC) and Healthcare Purchasing Partners International (HPPI), he said. Novation itself doesn't have members, but these organizations do, he explained. To raise the Alliance's profile and educate customers about the Novation contract, IBSA will initiate a direct-mail marketing campaign this month. "The main thing we have to look at is that this is a marathon," White says. "Nobody sees us as competition with Relizon, Moore and the majors. We will be competing with them in two years. I guarantee you. And we'll be beating them, too." He pointed out that IBSA affiliates have signed more than 100 accounts through the Novation contract already.
Barry Campbell, director for Novation, also addressed affiliates' concerns that the contract wasn't helping them instantly penetrate accounts. "We created and carved out in our bid process what we call Group 2 suppliers specifically to bring in someone to go after small to medium hospitals and non-acute accounts," Campbell says. He challenged IBSA affiliates to continue calling on those customers and sign up more than 400 accounts by the end of the year. To emphasize the opportunity for long-term success, Campbell compared IBSA with Relizon, which first received a Novation contract in 2000. At that time, Campbell said, the company was only doing $1.6 million worth of Novation business. Last year, Relizon generated over $50 million in sales with Novation members and picked up other GPO contracts as well.
A committee responsible for developing IBSA's long-term marketing plan shared its results. The plan emphasizes the Alliance's stated purpose—to win and maintain national accounts. IBSA will focus on Fortune 1000 accounts, said Michelene Bajakian, national account sales representative for IBSA. It will survey affiliates to determine which are currently working with national accounts, and research prospective accounts. Financial incentives are offered to affiliates who refer national accounts. Bajakian also announced that IBSA had freshened its logo and adopted a new slogan, "Local Expertise, Nationwide Strength."
Regarding its health care contracts specifically, IBSA's direct-mail campaign will be based on a targeted list acquired from Novation. The letters will focus on affiliates' products and services, capabilities. "It's designed around making sure that we correct the idea that they don't know who we are," White said. Mike Weinzierl, president of Professional Graphic Communications, Sewickley, Pa., coordinates the mailings. Long-term marketing efforts include training affiliates about the health care market, developing a standard IBSA PowerPoint presentation for affiliates' use, advertising IBSA in health care journals and sending regular news releases in key markets.
IBSA members learned about the opportunity to partner with Xerox Corporation from Carol and David Schwachenwald, owners of Integrity Document Solutions Inc., Indianapolis, and David Miller, account representative. They explained that Xerox provides document management services through a facility it maintains at Eli-Lilly and Company, Indianapolis. When the facility is overwhelmed with business, and when customers request products and services beyond the facility's capabilities, such as multi-part forms and promotional products, Xerox turns to Integrity Document Solutions to fill the orders. Over time, "they came to see us a single-source supplier," says Carol Schwachenwald. After learning about IBSA through Schwachenwald, Xerox executives grew excited about the idea of using IBSA affiliates throughout the country. An affiliate in Tennessee already has filled an order for Xerox, said John Heybach, COO of IBSA and president of Bold Business Graphics, Danville, Ill. Xerox also is interested in partnering with IBSA suppliers that use Xerox equipment to service accounts that it does not believe are cost effective to service directly. "We're very excited about the opportunity," says Mark McKinney, CEO at IBSA and president of Celtic Marketing, Dayton, Ohio. "This is what we're here for. Our affiliates can all sell by themselves, but if we can bring them all together, then we can compete with Relizon and Standard Register."
At the awards banquet, IBSA honored affiliates and suppliers who had contributed to the success of the organization. DSFI, Addison, Ill., and Block Graphics, Portland, Ore., were named Suppliers of the Year. Eagle, Orange, Calif., and Data Forms, Fayetteville, Ark., were named Affiliates of the Year.
