Overview of UK Healthcare, retail and direct to consumer market by Jeremy Cummin and Steve Hazelwood. Includes description of the NHS buying process, alternative market entry strategies and key considerations for success in the UK retail and consumer sectors.

1. London's CALLING
- is your company
ready?

2. Introduction
The NHS is not a single organisation that will
deliver your solution to the entire UK market.

3. Business Opportunities
However:
• The UK is much more than ‘The NHS’
• There are a plethora of established and proven ways of
addressing both the public and private sectors of this enormous
market.
This presentation will explain the truth about how the UK market is
structured, and offer a step by step guide on how to penetrate it.

4. UK Market Share
• The UK market size for digital health is expected to
have reached £2.9bn in 2018
• The UK represented approximately 9% of the
global health market in 2015

5. About Us
Prof Jeremy Cummin
Jeremy founded his first company in 1978 and has built, grown and sold
multiple digital healthcare businesses. He advises early-stage, major
corporate and government in the sector. He is chairman of Digital Health
Consultants Ltd, one of the UKs leading digital health consultancies.
Jeremy also serves as Honorary Professor of Digital Healthcare and Co-
Director of the Health and Care Unit at De Montfort University and is a
Fellow of the British Computer Society.
Steve Hazelwood
Steve brings three decades of experience introducing products to the UK
DTC and retail markets. Steve Trained in sales at Procter and Gamble and
worked in toy business for 15 years. He was previously UK Managing
Director for Keter Plastics and General Manager Europe for PhotoMedex
(no!no! hair removal). He currently runs his own Sales and Marketing
business

6. The UK Clinical Market

7. Clinical commissioning groups 207
Acute non-specialist trusts (including 84 foundation trusts) 135
Acute specialist trusts (including 16 foundation trusts) 17
Mental health trusts (including 42 foundation trusts) 54
Community providers
(11 NHS trusts, 6 foundation trusts, 17 social enterprises and 1 limited company)
35
Ambulance trusts
(including 5 foundation trusts)
10
GP practices 7454
For-profit and not-for-profit independent sector organisations providing care to NHS
patients from 7,331 locations
853
NHS Organisations (2016)

8. Routes to Market – Public Sector – Subject to Change!
Secretary of State for Health
NHS England
CCGs
Hospitals
Mental Health
Community Services
CLINICAL CARE
Public Health England
Local Authorities
COMMUNITY CARE
GPs
Dentists
Specialist Services
£
£
£
£
£
£

9. NHS
Insurers
Community
Interest
Companies
Private
Sector
Providers
Pharma
Retail
Pharmacy
Market Opportunities
Public
Private

10. Routes to Market
1 Pilots in NHS Sites
Generally perceived by those remote from the market at the only or best
way to access the market BUT
• Pilots always STOP
• Pilots always COST
• Pilots rarely result in sustainable business
Example: COPD/CHF near patient testing solution piloted
on remote UK island. Exceptional ROI as 80% reduction in acute
admissions. Trial huge success and presented on national tv
news as example of NHS groundbreaking services. Budget changes
resulted in no funding for rollout and programme discontinued 1

11. Routes to Market
The Tender Process
• Any sale over €221,000 must currently go out to public tender.
• Most public sector procurements tend to employ tendering for
procurement below this figure also, and are almost certain to continue to
do so post Brexit.
• Working with advisors cognisant with the relevant tender process will
significantly improve the chances of a successful tender document build.
Example: Bedside patient communication system supplied to
tertiary centre through tender. Cheapest was winner although
not able to optimally deliver service, as this was not weighted
in tender scoring model. Only viable provider failed to win
and procurement was not successful 2

12. Routes to Market
Partnerships
• Principals of grant-funded public sector projects are often
required to include multi-national partners in their tenders.
• Existing providers are frequently in a position to subcontract
services under their own approvals.
• Working with such principals often gives access to the
project without going through the full tender or approvals
process.
Example: Patient check-in terminals supplied to
PCTs/CCGs in partnership with GP patient
management system suppliers. Volume
Deployment achieved3

13. Routes to Market
Community Interest Companies
• A community interest company (CIC) is a type of UK
company designed for social enterprises that want to use
their profits and assets for the public good. These have
boards, and operate outside of the public sector.
• NHS Providers can be CICs and are not necessarily bound by
NHS processes and procedures
Example: Specialist patient remote communications
system sold to CIC and company eventually
purchased by CIC4

14. Retail Pharmacy
• Many non-clinical solutions are sold directly to consumers
over the counter.
• Increasing levels of clinical services are being offered by
retail pharmacy
• The are continually searching for innovations to differentiate
from competitors
• Lloyds Boots and Superdrug are the key players in the UK
Examples: Wearable health device stocked, distributed
and supplied by pharmacy chain. Volume sales achieved5
Routes to Market

15. Routes to Market
Insurance Companies
Insurers are continuously searching for differentiators and efficiency-
enhancing technical opportunities:
• Reduction in claims
• Improvement in efficiencies
• Improvement in risk evaluation
• Improvement in image for marketing purposes
Example: Activity integration and monitoring software
customised for insurance company and supplied by them
as part of marketing campaign. Volume deployments7

16. Routes to Market
Pharmaceutical Companies
• Pharmaceutical companies are continuously seeking ways of
improving drug safety, efficacy and adherence.
• Digital technology often provides a solution
• These products may be sold by the principal to the NHS and
other bodies
Example: Cancer patient and treatment management software
for onward supply to cancer centres as part of overall cytotoxic
distribution strategy. Business sold at substantial P:E6

17. Services Needed to Access Market
• Determine any key differences between offering and market
• Introductions to specialists where appropriate
• Assistance with local business set-up, recruitment and premises
• Assistance with determining regulatory requirement and obtaining if required
• Assistance in proofs of concept, evaluation programmes and trials if required
• Introductions to potential clients
• Assistance with meetings and sales
• Assistance with launch and post-launch execution

18. Support Partners
Grants , Private Equity and
Venture Capital
D-Health Business and
Research Services
IP Valuation ServiceSteve Hazelwood Associates

19. PE and VC
companies
Possible Support Requirements
Services
Required
Financing
Independent
Accredited
evaluation
Professional
services
IP Valuation
NHS
managed
real-patient
trials
Retail
Specialist
Market
Research
Regulatory
Services
NICE
Compliance
Sales
introductions
and support
Retail Specialists
Regulatory
Specialists
SUPPORT
IP Valuation
Specialists
Guidance available through all aspects of
your journey into the UK market
Retail Specialists

20. The UK Retail Market

21. • Trained in sales at Procter and Gamble
• Worked in toy business for 15 years
• Worked for Rubbermaid running distributor markets in EMA
• UK Managing Director for Keter Plastics
• General Manager Europe for PhotoMedex – no!no! hair removal
• Currently running own Sales and Marketing business

22. UK
Market
Selection
Warehouse
Retail stores
Information
Tracking and
performance
improvement
Web-site
creation
Brand strategy
TV
Training
Compliance
Stock
management
Internet clients
Shopping channel
Delivery
Social Media
Tracking
MEDIA BUYING
CREATIVE
MANAGEMENT
LOGISTICS
SUPPLY CHAIN
CLIENT MANAGEMENT
OWN WEB-SITE
CALL CENTRE
MANAGEMENT
Print campaigns and
direct mail
Ad creationPR

23. Television

24. Print Campaigns – National Press
Print campaigns copy

25. Print campaigns – National Press

26. Flyers

27. Advertising regulator
Advertising Standards Authority
In the UK, whilst marketing communications are subject to statutory regulation, the Advertising
Standards Authority (ASA) is recognised as the ‘established means’ for advertising regulation. The ASA
require advertising to adhere with the UK Advertising Codes, the central tenets of which are that
advertising should not mislead, cause harm or offence and must be prepared with a sense of
responsibility to society.
The ASA’s remit is wide and includes claims on websites under marketer’s control (e.g. social media).
Consumers and competitors alike can, for free, submit complaints to the ASA about advertising they
consider to be in breach of the Codes. The ASA can, and often does, investigate advertising based on a
sole complaint. Although a self-regulatory body, compliance with the ASA’s rulings is not voluntary and
the ASA has a range of sanctions it can seek to impose should advertisers refuse to amend their
advertising. Whilst these sanctions do not include fines or imprisonment they do include media refusal,
mandatory pre-vetting and, ultimately, referral to Trading Standards.

28. Retail routes to market
Retail
Stores
Direct
Response
On-line
Home
Shopping

29. Pharmacy
Home Shopping
High Street Retailers
Online
Retail routes to market

30. Retail: Summary
• Who are your customers?
• How do we market to them?
• What route do we use to sell to them? Physical stores? Internet?
Shopping Channel? Direct response marketing?
• How do we deliver the product? Where from? What means?
• How do we handle customer issues?
• How do we delight our customer?

31. Prof. Jeremy Cummin +44 7748 633500 jeremy@cummin.co.uk
Mr Steve Hazelwood +44 7802 626357 stevehzlwd@sky.com
Want to learn more? Questions now, call or email later: