Market Development Exercise for Medical Device Company
Updated: May 21, 2020
In a country where healthcare is 100% government funded, the gradual decline of in-patient healthcare expenditure (as a % of GDP) forced the OEMs to shift their channel strategy before it gets too late. The intention of federal government, to do more (work) with less ($$), resulted in swift movement of funding from costly acute care to economic home healthcare. For the firm who has been enjoying the position of market leader in acute care services, it became the need to proactively tackle and strategically win the situation. The question remained - how?
Analysis started from reading the trend, across the healthcare industry, for over past a decade. This helped establish the data trend defining the impact on healthcare sector over next a decade.
Primary research, including the executive interviews from home healthcare service providers, long-term care service providers, funding agencies and supply chain bodies, helped establish the drivers and influencers of the market.
Primary research combined with deep dive secondary research shaped the size of the market both in volumetric and monetary terms.
Evidence Backed Recommendations
Strong emphasis on outpatient market, to catch-up with the upcoming trend, before the competition establishes its foothold making it difficult to enter at a later stage.
Understanding of key points, impacting decision influencers and decision drivers, to re-define entire value chain for the out-patient (non-acute) segment.
The total cost of training health professionals, to use any new medical device, was way too higher than the total cost of device itself. So now it was imperative to strategically negate this cost aiding to the decision-makers’ approval process.
Determination of marketing budget based on the total addressable market.
The shift towards economic home healthcare, aimed at reducing overall cost of healthcare delivery. To facilitate this a strategic product development and vertical integration, across the value chain, was necessary. The trainings and workshops were to be arranged for all stakeholders and members of value chain. The result of which was the market development in the out-patient healthcare segment.
Implementing the recommendations, the client gradually increased its market share in the outpatient market.
New product developments reduced the effective healthcare cost.
The vertical integration across value chain and strategic channel access partnerships resulted in widespread availability through efficient market access.
The training workshop programs took away cost of training from the books of government funding agencies.