Orthopedic industry kathryn barbe


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Orthopedic Marketing growth

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Orthopedic industry kathryn barbe

  1. 1. Orthopedic Industry Presented by Kathryn Barbe
  2. 2. Sustainability Emissions to Air Hazardous Waste Non-hazardous Waste Total Energy ISO 14001 Water usage Kathryn Barbe
  3. 3. Analyst Forecast Earning Growth 12% 10.5% 8% 4.6% 4.2% 4% 3.7% 3.4% 0% Dec 2010 Dec 2011 Dec 2012 Dec 2013 Long Term 5 Years Kathryn Barbe
  4. 4. Competitors• Zimmer Inc.• Stryker Corporation• Johnson & Johnson /DePuy Inc.• Biomet Kathryn Barbe
  5. 5. Stryker• Trident Alumina Ceramic Bearing• Press-Fit Stems• Exeter• Secur-Fit Max• Acetabular Cup System Kathryn Barbe
  6. 6. Zimmer• Versys• Trabecular Metal Primary Hip• ZMR Hip• Trilogy Cup• Longevity Polyethylene Kathryn Barbe
  7. 7. Biomet• E1• M2a-Magnum™ Metal-on-Metal Hip• Taperloc® Hip Stem• Taperloc® Reduced Distal Stem• Taperloc® Microplasty™ Stem Kathryn Barbe
  8. 8. DePuy• Tri-lock Bone Preservation Stem• Pinnacle• ASR XL Acetabular• AML Total Hip System Kathryn Barbe
  9. 9. Structures of the Hip Kathryn Barbe
  10. 10. Common Causes of Hip Pain and Loss of Hip MobilityOsteoarthritis• Usually occurs after age 50 and often in an individual with a family history of arthritis. In this form of the disease, the articular cartilage cushioning the bones of the hip wears away. The bones then rub against each other, causing hip pain and stiffness. Kathryn Barbe
  11. 11. Rheumatoid Arthritis Causes Rheumatoid Arthritis • a disease in which the synovial membrane becomes inflamed, produces excessive synovial fluid, and damages the articular cartilage, leading to pain and stiffness. Kathryn Barbe
  12. 12. Traumatic Arthritis CausesTraumatic Arthritis• Can leads to a serious hip injury or fracture. A hip fracture can cause a condition known as avascular necrosis. The articular cartilage becomes damaged and, over time, causes hip pain and stiffness. Kathryn Barbe
  13. 13. Osteoarthritis Osteoarthritis Fracture Fracture Kathryn Barbe
  14. 14. Implant Packages: Component PiecesHip Package• Metal Cup• Plastic Liner• Femoral Head• Hip Stem Kathryn Barbe
  15. 15. Implant SelectionRelies upon Hips• Patient’s Activity Level High Demand • Porous Hip• Age• Bone Quality Medium Demand • Cemented Hip• General Health Low Demand• Life Expectancy • Cemented/Poly cup• Weight Kathryn Barbe
  16. 16. Moving on….
  17. 17. Market DriversTarget• Aging population (Baby boomers) estimated to double by 2020• Demand on arthroplastics to rise with increasing osteoarthritis• Rising rate of obesity• Treatment alternatives/new technologyPatient Selection• Age and activity level• Isolated hip disease• Excellent bone quality• Normal kidney function Kathryn Barbe
  18. 18. Pieces of One Puzzle – 4 P’s + 1 Price Product People Place Promotions Kathryn Barbe
  19. 19. Technology Trends TechnologyMinimallyInvasive (MIS) Computer Robotics Surgery Kathryn Barbe
  20. 20. Marketing BalanceOpportunity & Challenge Opportunity Challenge Marketing Kathryn Barbe
  21. 21. Who or What determines which productsare used in the Hospital?Is product choice determined by: • The physician? • The agreed/desired outcome for the patient? • The desires of the patient? • The vendor? • The GPO? Kathryn Barbe
  22. 22. Hip Surgery - Innovation SystemCompetition • Surgeons- prosthesis named after them, own research program, company benefits, autonomy and prestige • Companies- stay ahead of market with innovative products unique to them • Critical role of surgeon preference in product selection Kathryn Barbe
  23. 23. The Medical Device Industry TodayInvestors beginning to show much more interest in medical device companies: • Straight-forward business model • Quicker product turn around • Incremental innovation • VC’s willing to investInnovation rate will still likely be slowed by the adoption rate of physicians: • Training takes time • Conversion slower due to current successful treatment • Conservative Mind Set/Comfort Zone Kathryn Barbe
  24. 24. Orthopaedic TrendsIndustry growth slowing (pricing), but demographics are completely compellingKey Issues affecting both surgeons and industry • Medical Legal Liability • Intellectual PropertyObesity continues to drive • Break more bones • Have more joint problems • Have more spine related disordersJoint products and treatments gaining the attention of surgeons and industryRegulatory requirements increasing worldwideFDA/Health Canada proposal to track medical devices Kathryn Barbe
  25. 25. Marketing in the 21st Century• Shift in Marketing Mix Doc, I already diagnosed myself on• Internet opportunities the internet, I am here for a second opinion.• Changing aspects of training• E-marketing• Increase patient knowledge• E-learning Kathryn Barbe
  26. 26. Internet Pros and Cons • Misleading information • Bad press • Privacy/ Security • Costly• Access Information• Patient referrals• E-learning (physicians)• Advertising & Publicity Kathryn Barbe
  27. 27. New Product Development Process Idea Generation Idea Screening Concept Development Marketing Strategy Business Analysis Product Development Market Testing Commercialization Kathryn Barbe
  28. 28. Idea Generation Customers Employees Distributors Competitors R&D Sources ofNew Product Consultants Process Creative Thinking Kathryn Barbe
  29. 29. Influencing FactorsMarket environment • Regulations • Customer • Competition • Geography • Product Kathryn Barbe
  30. 30. Deliver Marketing Excellence Marketing Excellence Capture the voice of the customer Create innovative solutions Champion growth and strategy Brand Development Communicate brand story to drive growth Outcomes Growth Innovation Brand Talent Kathryn Barbe
  31. 31. Star Model Planning Growth Innovation Brand Talent 1) Strategic Direction Alignment 2) Process & Systems What does success look like? What’s the specific work (key actions) that How does this align to the key objective? needs to be accomplished? What’s the current environment? What core processes & systems are needed? Who are the key stakeholders? How will the work be created & delivered? How does this support our brand? What type of decision process is required? How will success be measured? Payoff for: Customer Smith & Nephew 5) Communication You 3) People What common information What are the roles & responsibilities? needs to be shared? What are the right skills & knowledge? Who needs the information? What cultural norms & behaviors are required? How and when will the information What are the reporting relationships? be shared? What’s the distribution of power & decisions? 4) Resources How will performance be measured? Do we have people’s commitment? Where will the work be accomplished? What is the budget & timeline? How will people be recognized and rewarded? Kathryn Barbe