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Performance Benchmark: Optimizing StaffLevels to Drive Growth in Medical Devices                    1            BEST PRAC...
Research Objectives and PrioritiesBest Practices, LLC conducted this research to identify Marketing Staffing and Performan...
Probe Multiple Dimensions of Marketing ProductivityThe field research study engaged 16 executives at medical devices compa...
Field Research Overview:                  The Universe of Learning &                       Benchmark ClassCopyright© 2006 ...
Universe of Learning: Medical Device LeadersSixteen executives representing either full-company or business unit perspecti...
Sales Growth Rates Reflect Product TypeSuccessful medical device products have the potential to grow rapidly, thereby winn...
Medical Device Portfolio GrowthGrowth rates in the Medical Device segment typically range between eight and fourteen perce...
Medical Device Tactical Marketing StaffingMedical Device tactical marketing appears to be more labor intensive than device...
New Product Development Dominates Strategic ActivityMedical device strategic marketing staff invest their time across mult...
About Best Practices, LLCBest Practices, LLC is a research and consulting firm that conducts work based on the simpleyet p...
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Performance Benchmark Optimizing Staff Levels to Drive Growth in Medical Devices Report Summary

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In a dynamic business environment where an organization’s growth goals shift rapidly, companies review and modify their marketing strategy, tactics, time and activities on a timely basis to match the product and business requirements. Data gathered through this study will aid organizations to benchmark strategic and tactical marketing activities with top companies in the medical device-healthcare sector, to support their product portfolio in driving corporate growth and profitability.

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Performance Benchmark Optimizing Staff Levels to Drive Growth in Medical Devices Report Summary

  1. 1. Performance Benchmark: Optimizing StaffLevels to Drive Growth in Medical Devices 1 BEST PRACTICES, ® LLC
  2. 2. Research Objectives and PrioritiesBest Practices, LLC conducted this research to identify Marketing Staffing and Performancelevels across the Medical Devices industry. Research partners participated in a benchmark fieldstudy that identified performance levels across a broad range of key business performancefactors. Study Objective & Methodology Key Study Factors Benchmark research examined the What staffing and productivity Marketing Staffing and Performance levels exist across healthcare levels of health care business units business models? to understand optimal performance What growth and profit margin ranges. levels characterize high Analysts segmented benchmark performance? participants into three groups with What strategic marketing activities different business models and are most important and consume dynamics. the greatest resources? The benchmark field work developed and analyzed the importance of more than 15 critical performance factors. 2 BEST PRACTICES, ® LLC
  3. 3. Probe Multiple Dimensions of Marketing ProductivityThe field research study engaged 16 executives at medical devices companies in the fieldresearch and probed twelve critical marketing productivity factors across three broad businesssegments. 16 Survey Respondents Branded Generic Medical Pharma Pharma Devices products Products Strategic Tactical Strategic Tactical Strategic Tactical Marketing Marketing Marketing Marketing Marketing Marketing Product Category Benchmarks Staffing Levels Benchmarks Profit Margin Benchmarks Strategic Activity Benchmarks Customer Segment Unit Sales Benchmarks Time Allocation Benchmarks Tactical Activity Benchmarks Benchmarks Organizational Structure Product scope & coverage Growth Rate Benchmarks Activity Impact Benchmarks Benchmarks benchmarks 3 BEST PRACTICES, ® LLC
  4. 4. Field Research Overview: The Universe of Learning & Benchmark ClassCopyright© 2006 4 BEST PRACTICES, ® LLC
  5. 5. Universe of Learning: Medical Device LeadersSixteen executives representing either full-company or business unit perspectives sharedbenchmark data for eleven companies for marketing resources and activities supporting medicaldevice products. 5 BEST PRACTICES, ® LLC
  6. 6. Sales Growth Rates Reflect Product TypeSuccessful medical device products have the potential to grow rapidly, thereby winning marketingresources to create demand. Sales Growth Rate Benchmarks for Product Categories R e v e n u e G ro w th R a te s 19% 16% 17% 15% 12% Mean 13% 11% 15% 11% Median 9% 10% 7% 8% 5% Generic Product Medical Device Branded Rx ProductN = 57 6 BEST PRACTICES, ® LLC
  7. 7. Medical Device Portfolio GrowthGrowth rates in the Medical Device segment typically range between eight and fourteen percentaveraging between ten and eleven percent. High-growth portfolios, being smaller and morefocused, can reach as high as twenty-five percent annually while the lowest-growth portfoliolagged at 3 percent. Please provide the approximate growth rate for your product portfolio. Max 25% 75th Percentile 14% Mean 11% Median 10% 25th Percentile 8% Min 3% 0% 5% 10% 15% 20% 25% 30% Growth Rate(n=16) 7 BEST PRACTICES, ® LLC
  8. 8. Medical Device Tactical Marketing StaffingMedical Device tactical marketing appears to be more labor intensive than device strategic marketing. Theaverage benchmark for tactical marketing staff is approximately four FTEs per $100 million in revenuegenerated, twice that of strategic FTE benchmarks. The most efficient tactical performer supports $100 million inrevenue with less than one FTE. Number of Tactical Marketing FTEs per $100 Million Revenue Max 16.2 75th Percentile 7.0 Mean 4.9 Median 3.5 25th Percentile 2.4 Min 0.7 0 2 4 6 8 10 12 14 16 18 FTEs per 100 Million Revenue(n=13) 8 BEST PRACTICES, ® LLC
  9. 9. New Product Development Dominates Strategic ActivityMedical device strategic marketing staff invest their time across multiple marketing fronts. Newproduct commercial development wins greatest time investment with more than 43% of timeallocated here – followed by managing product enhancements, branding and other variedmarketing activities. Time & Activity Benchmarks for Device Strategic Marketing Staff Medical Device Strategy Groups Benchmark ClassNew product commercial development 44%Troubleshoot new product issues (post-launch) 6%Branding 9%Managing product enhancements and / or changes 15%Marketing communication & promotion 6%Medical education, events and promotion 7%Data management 4%Communicating product changes and 5%enhancementsSupply management 4%(n=15) 9 BEST PRACTICES, ® LLC
  10. 10. About Best Practices, LLCBest Practices, LLC is a research and consulting firm that conducts work based on the simpleyet profound principle that organizations can chart a course to superior economic performanceby studying the best business practices, operating tactics and winning strategies of world-classcompanies. Best Practices, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517 919-403-0251 bestpractices@best-in-class.com www3.best-in-class.com 10 BEST PRACTICES, ® LLC

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