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MARKETING STRATEGYFOR NEW CANCERTREATMENT –SHARP THINKINGBEYOND RAZOR/BLADES              Eric Siegel              Fred El...
What is the problem?   Paradigm shift: Treating to Preventing Cancer   Concerned stakeholders       Providers – Doctors...
Benefits to Believers   Patient     Minimally              invasive     Reduced discomfort   Providers     Revenue   ...
Marketing Plan – Three PhaseApproachReaching out to different stakeholders at differentpoints in time in the course of nex...
Phase 1 – Get the EarlyAdopters   Get equipment in use at early adopters/influencer sites       Academic teaching hospit...
Phase 2 – The Blanket   Leveraging benefits from Phase I       Widespread success with early adopters       Journal pub...
Phase 3 – Going Big!   Insurance companies launch “Blanket” policies       Launch to mass markets       Increase licens...
Challenges   Time required per sell    Substantial initial investments in technology    licensing   Efforts in changing...
Summary   Sharp thinking beyond razor/blade sales   Three phase approach       Phase 1         Build credibility with ...
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Marketing Strategy for Medical Device Company

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The marketing strategy won the Annual Babson Marketing Case Competition ($5000 prize money) and involved participation from over 20 Business schools around the globe

Published in: Business, Technology
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Marketing Strategy for Medical Device Company

  1. 1. MARKETING STRATEGYFOR NEW CANCERTREATMENT –SHARP THINKINGBEYOND RAZOR/BLADES Eric Siegel Fred Ellis Saurabh Malani Aditya Thakur
  2. 2. What is the problem? Paradigm shift: Treating to Preventing Cancer Concerned stakeholders  Providers – Doctors, Hospitals  Limited time  Low budget for capital investment  Uncertain ROI  Patients  Awareness  Payers  Comparative costs  Reimbursement policy
  3. 3. Benefits to Believers Patient  Minimally invasive  Reduced discomfort Providers  Revenue stream compared to “wait and watch”  May replace colonoscopy treatments  Marketing opportunity on innovative treatment in competitive environment for patients Payers  Reduced long-term care expenses
  4. 4. Marketing Plan – Three PhaseApproachReaching out to different stakeholders at differentpoints in time in the course of next 2-3 years. Phase 1: (Months 0-8)  Early Adopters/Influencers  Hospitals Phase 2: (Months 9-16)  Insurance companies  Customers Phase 3 (Months 17-36)  Mass markets (Hospitals, Clinics, etc.)
  5. 5. Phase 1 – Get the EarlyAdopters Get equipment in use at early adopters/influencer sites  Academic teaching hospitals  Leading edge practices  Easier target because they keep up with journal publications and embrace innovation Marketing Plan  License technology to hospitals  Rent generator $1,500 / month  Charge payment for disposables ($1,000 value) only when insurance pays. Assuming 50% insurance reimbursement rate  Worst Case: $3,125 income to hospital / month  Best Case: $260,000 income to hospital / month  $0 gain/loss to Company for disposables
  6. 6. Phase 2 – The Blanket Leveraging benefits from Phase I  Widespread success with early adopters  Journal publications: GI Associations (PMC)  Generating critical mass for insurance Insurance Companies (Goal: Blanket coverage)  Citing cost advantages  Assumption: 58k patients get surgery – Cost $1.16 Billion  Set a bar for reimbursements  Only for Low & High grade Dysplasia: Population 240k x $1500 = $360 Million  Cost advantage – Potentially $800 Million Patients:  Marketing partners  AARP  Healthy food providers  Antacid
  7. 7. Phase 3 – Going Big! Insurance companies launch “Blanket” policies  Launch to mass markets  Increase license fees  Procedures are fully reimbursed New segments:  Towards community GIs  Reimbursement guaranteed  Easy to use and short duration process  Proven results with large patient population  Colonoscopy market replacement  Thoracic surgeons  Shrinking cancer market
  8. 8. Challenges Time required per sell Substantial initial investments in technology licensing Efforts in changing the "surveillance" paradigm to "adoption" in GI associations magazines Making sure that it does not go in the hands of cowboy doctors Cryotherapy: Competitive option if clinical trials are done within time.
  9. 9. Summary Sharp thinking beyond razor/blade sales Three phase approach  Phase 1  Build credibility with early adopters  Reduce objections to investment & reimbursement  Phase 2  Marketing partnership towards patients  Leverage treatment experiences and journals to influence insurance reimbursement policy  Phase 3  Go big  Capture mass market

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