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Marketing Strategy for a medical device company

This is a marketing strategy for a leading medical device company for a new product launch. This presentation won the Babson Marketing Case Competition - 2012 with prize money of $5000. 16 schools across the globe were competing in this competition.

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Marketing Strategy for a medical device company

  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 incompetitive 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 andembrace innovation Marketing Plan License technology to hospitals Rent generator $1,500 / month Charge payment for disposables ($1,000 value) only wheninsurance 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 technologylicensing Efforts in changing the "surveillance" paradigmto "adoption" in GI associations magazines Making sure that it does not go in the hands ofcowboy doctors Cryotherapy: Competitive option if clinical trialsare 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 influenceinsurance reimbursement policy Phase 3 Go big Capture mass market