Medical Device companies must regularly find ways to manage similar products within the same business units. It is a complex balancing act that requires companies' marketing functions and product teams to grow new brands, while trying to extract market share from competitors without depleting the market for their own current products. Maximizing the potential of each product (new and legacy) requires well-crafted marketing strategies and smart resource allocation plans. Marketers need to make sure of launching and marketing a new product or brand in a way that challenges external competition while sustaining the sales and value of the internal legacy brand. Best Practices, LLC conducted extensive research to identify successful strategies and tactics for marketing multiple brands for the same indication or area of use without cannibalizing an existing portfolio. Special attention was given to strategies for managing resources and for avoiding or controlling product cannibalization. Marketers can use the valuable insights and exhaustive data in this research study to carefully plan and implement their marketing strategies to create multiple, high-performing brands.

1. Best Practices, LLC
Strategic Benchmarking Research
Best Practices in Expanding a Medical
Device Product Portfolio Without
Cannibalizing an Established Brand

2. Table of Contents
 Executive Summary pp. 3-9
 Research Overview: Objective & Key Topic Areas pp. 4
 Participating Companies pp. 5-6
 Critical Success Factors in Marketing Multiple Brands pp. 7
 Key Findings & Observations pp. 8
 New Product Differentiators, Strategies & Impacts pp. 10-17
 Marketing Spend & Budget Allocation pp. 18-22
 Marketing Activities & Product Goals pp. 23-27
 Qualitative Analysis pp. 28-48
 Pitfalls to Avoid pp. 49-51
 Best Practices pp. 52-54
 Appendix pp. 55-57
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Key Topics Covered
Research Overview: Objective & Key Topic Areas
Study Objective & Methodology
Objective:
This benchmarking study was designed to
identify effective strategies and tactics for
marketing multiple brands for the same
indication or area of use.
Special attention was given to strategies for
managing resources and for avoiding or
controlling product cannibalization.
Methodology:
Best Practices, LLC used an online survey
instrument to collect quantitative data.
Research analysts also conducted in-depth
interviews to collect executive insights and to
harvest best practices and lessons learned.
 Effective methods of differentiating
multiple brands
 Positioning strategies that minimize
product cannibalization
 Operational changes that drive success
when introducing a new brand into a
product family
 Positive & negative impacts of introducing
a new brand
 New product’s share of the combined
marketing spend during first three years
both are marketed
 Marketing mix for new & legacy products
 Marketing activities that drive continuing
success for legacy brand
 Best indicators of marketing effectiveness
 Pitfalls, failure points and best practices
BEST PRACTICES,
®
LLC
Best Practices, LLC conducted this research to help medical device companies in maximizing
potential of their product portfolios or franchises. It identifies successful strategies and best practices
used by managers and executives to minimize brand cannibalization.

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30 Companies Participated in the Benchmark Study
Full Benchmark Class
This study engaged 37 brand leaders from 30 leading pharmaceutical, biotechnology, and medical
device companies. When appropriate, data in this report is presented separately for companies in the
pharmaceutical/biotech and medical device/diagnostic industry segments.
Medical Device Segment:Pharmaceutical/Biotech Segment:

5. The following findings emerged from this benchmark study.
Key Findings & Observations
1. Benefits of New Brand: Nearly 80 percent of medical device companies said they were viewed
as thought leaders after introducing a new brand where they already had a legacy product. Top
benefits identified were expanded market share, market leadership, and improved reputation with
physicians and specialists.
2. Negative Impacts: Twenty-two percent medical device participants indicated there can be
negative impacts in introducing a new brand for the same indication or area of use as a legacy
brand. Cannibalization, confusion in channel and sales priorities were some of the common
concerns.
3. Minimizing Cannibalization: Medical device benchmark partners successfully use more than a
dozen different strategies to control or minimize product cannibalization. Targeting different patient
subtypes and delivery method /device are viewed as the most effective of these.
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6. 78%
67%
44%
33%
22%
22%
11%
11%
11%
0%
Health outcomes
Price
Efficacy
Safety
Delivery method/ device
Ease of use
Quality of life
Compliance
Other (specify)
Frequency of use/ dosing
Q4. Which three of the following options are the most effective for differentiating two or more brands within one
company for the same indication or area of use? (Select only three to indicate the top three most effective
differentiators.)
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(n=9)
Health Outcomes Most Important Product Differentiator for
Medical Device Companies
Health Outcome is seen as the most effective product differentiator for potentially competing brands
within a medical device company. As medical devices entail huge investments, price is also considered
as an effective differentiator by 67% of medical device companies.
Top 3 Differentiators: Medical Device Segment
% Responses

7. 11%
22%
44%
44%
56%
67%
67%
67%
78%
No change occurred
Realigned sales force/ Changed sales…
Expanded sales force size
Revised sales coverage plan to…
Shifted marketing resources from…
Increased portfolio management…
Revised sales force incentives
Revised/expanded sales training
Added new marketing funds for new…
Multiple-Brand Marketing Spurs Many Operational Changes
The sales and marketing groups often add training and revise incentives, while marketing adds and
shifts resources to handle the complexities of product promotion. Medical device companies most often
invest their new marketing funds in new product.
Q8. What operational changes did your organization undergo in order to effectively manage more than one brand for a
single indication or area of use when a new product was introduced? (Choose all that apply.)
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Medical Device: Operational Changes That Drive Success
% Responses(n=9)

8. Ten Critical Success Factors in Marketing Multiple Brands
Multiple Brand
Marketing
Excellence
1. Take a Franchise-
Centric Approach
3. Align Each Brand
with Distinct Customer
Segments
7. Align Marketing Mix
to Reflect Market
Entry Position
9. Price to Reflect
Values of Individual
Customer Segments
10. Plan for Migration
to Newer Brand
2. Clearly Differentiate
Each Product
on Attributes
4. Set Realistic Goals
& Objectives
8. Plan Early to Execute
Anti-Cannibalization
Strategies
5. Align Sales to
Brand Goals
6. Provide Sufficient
Resources for Each
Brand
Best Practices, LLC research identified a series of 10 critical practices or steps that lead to
excellence in marketing multiple products for the same indication or area of use.
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9. Q22. What are the key pitfalls, or failure points, that companies need to avoid when marketing more than one brand for
the same indication or area of use?
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Pitfalls to Avoid
 Failure to clearly differentiate/position individual products and their values
 Internal competition for limited resources
 Poor thought leader alignment
 Insufficient sales force training
Pitfalls to Avoid
Key pitfalls identified by the medical device class in surveys and interviews are:

10. Q23. Please share three best practices for successfully marketing more than one brand for the same indication or area
of use.
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Best Practices
 Provide clear product differentiation and unique positioning for each brand
 Segment patient/ customer groups
 Align sales force incentives with goals and
train reps to deliver message
 Focus on the whole franchise above individual brands
Best Practices for Managing Multiple Brands
Key best practices identified by the medical class can be grouped into four general categories.

11. Best Practices, LLC
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Chapel Hill, NC 27517
USA
919-403-0251
www.best-in-class.com
About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet
profound principle that organizations can chart a course to superior economic performance by studying
the best business practices, operating tactics, and winning strategies of world-class companies.
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