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  • Medical Products, medications, chairs, notebooks, iv bags, just about everything you see in hospitals or pharmacies Price-Competitive pricing Promotion-grants, online pharmacy, internet advertising campaign Place-Several Distribution Channels— Medical supplies and services is the main distributor. Technology services, Rx Product Management, Consumer management, Brokerage services (pharmacy services, ordering, record keeping, billing)
  • People- sales person, delivery driver, service or call center or any other representative of the company that comes into contact with a customer or client Process- this is how well Cardinal will service their customer. If there is a billing discrepancy or other problem, how will the service be with that person? Physical Evidence- articles, surveys or other data that may shed light on how Cardinal does as a service company since service is intangible or cant be touched or seen.
  • Continual Attention-marketing division Creativity-Sage Frog Marketing Group Management Commitment- Hiring new Vice President of strategy and corporate development, Vivek Jain
  • Target Market- health care industry, pharmacies, hospitals, medical services Advertising-online effort Public Relations-$500,000 medical grant to urban low income areas Sales promotion-online pharmacy Personal selling-selling agents that travel from health care place to place to sell products and establish contracts
  • Pyxis-safety products-anesthesia Alaris-IV medication Supplies Medical Products and services-distributor of many safety, medications, etc SP Laboratory-blood collection supplies, microscopes, clean up kits

PowerPoint PowerPoint Presentation Transcript

  • Cardinal Health Kristina Garabedian Tommy Petramalo Steven Seelye
  • History
    • Began as Cardinal Foods in 1971
    • 1984 focused on Healthcare Distribution Industry
    • Since 1983 they have acquired over 60 companies
    • 2007 voted as Forbes most admired firm and Fortune 500 ranked 19th
  • Products/Services
    • Pharmaceutical distribution
    • Surgical masks, drapes and gowns
    • Fluid suction and collection products
    • OnSiteSM service surgical instrument repair
    • Interventional radiology products, special procedures
    • Products are used in 90% of hospitals
    • 50% of surgeries use Cardinal Health’s products
  • Stock Chart
  • Mission Statement
    • Cardinal Health, Inc. (NYSE: CAH) is a global company serving the health-care industry with products and services that help hospitals, physician offices and pharmacies reduce costs, improve safety, productivity and profitability, and deliver better care to patients. With a focus on making supply chains more efficient, reducing hospital-acquired infections and breaking the cycle of harmful medication errors, Cardinal Health develops market-leading technologies, manufactures medical and surgical products and is one of the largest distributors of pharmaceuticals and medical supplies worldwide
  • Target Market
    • Cardinal Health is a global healthcare company, serving:
    • Hospitals/Providers
      • Hospitals
      • Physician offices
      • Surgery centers
    •   Retail pharmacies
      • Retail chains
      • Community/Independent
    •   Suppliers
      • Medical suppliers
      • Laboratory suppliers
  • Future of Industry
    • Healthcare Distributors
    • Three major competitors
    • Forecasted market growth
  • Strengths
    • Large scale of operations
      • Four different operations; products and services, technology and services, pharmaceutical technology and services, and pharmaceutical distribution and services and operates in over 20 different countries.
    • High returns
      • Record high returns on assets, investment and equity compared to the industry averages in recent years.
    • Diverse product portfolio
      • The diverse range of offerings provided by the company meets the different requirements of manufacturers as well as health care providers.
    • Performance of clinical technologies and services
      • clinical technologies and services segment represented a strong performance in 2006.
  • Weaknesses
    • High dependence on few suppliers
      • High dependence on a few suppliers means Cardinal Health’s business would be severely affected if it loses any supplier.
    • Weak profitability of pharmaceutical distribution and services and pharmaceutical technologies and services
      • Decreased selling margins due to competitive pressures.
      • Higher costs within the nuclear pharmacy services business.
    • Costumer concentration
      • A significant portion of the company’s revenue growth has been derived from a limited number of large customers.
      • Any losses in sales from one of their few customers would effect their operations and financial condition.
  • Opportunities
    • Aging US population
      • Almost all revenues comes from the healthcare and pharmaceutical industries, the outlook for which is positive owing to the aging of the US population (baby boomers).
    • Increasing demand for patient monitoring systems
      • The demand for patient monitoring systems is expected to increase 5.4% annually to $9.1 billion in 2010.
    • Acquisitions
      • Medicap, Snowden Pencer Holdings, Geodax Technology, ParMed Pharmaceutical, a telemarketing business, Denver Biomedical, and MedMined are just a few examples.
  • Threats
    • Deficit Reduction Act
      • The government intends to cut its spending on Medicare and Medicaid as a part of its Deficit Reduction Act of 2005.
      • Demand for supplies would go down.
    • Regulations
      • The company is subject to various local, state, federal, foreign and transnational laws and regulations, which include the operating and security standards of the DEA, the FDA.
    • Strong competition
      • Some of Cardinal Health’s business segments operate in highly competitive areas.
      • In the pharmaceutical technologies and services segment, the company competes on several fronts both domestically and internationally
  • Elements of the Marketing Mix Price Promotion Place Product Four Ps
  • Additional Three Ps Service Ps People Process Physical Evidence
  • Techniques to Help Strategic Planning Continual Attention Management Commitment Creativity Effective Strategic Planning
  • Promotion in Marketing Mix Overall Marketing Objectives
    • Marketing Mix
    • Product
    • Price
    • Promotion
    • Price
    Target Market
    • Promotional Mix
    • Advertising
    • Public Relations
    • Sales Promotion
    • Personal Selling
    • Promotional Plan
  • Suppliers
    • Alaris Products
    • Medical Products and Services
    • Pyxis Products
    • SP Laboratory Products
  • Any Questions?