Visit us on the web: http://www.themarketechgroup.com/?utm_source=SlideShare&utm_medium=Social+Media&utm_campaign=Case+Studies About Us: With offices in North America and Europe, The MarkeTech Group provides a unique combination of extensive marketing research methodology expertise, deep medical technology domain knowledge and value-added strategic marketing consulting to medical technology companies who seek high quality marketing research studies and professional marketing strategy consulting. The MarkeTech Group's team of marketing research and strategy experts take pride in integrating their leading voice of customer (VOC) research expertise and strategic consulting into their clients' marketing and R&D departments to help successfully launch and maintain profitable products in healthcare. The MarkeTech Group, LLC 502 Mace Blvd, Suite 15 Davis, CA 95618 Tele: (+1) 530-792-8400 Fax: (+1) 530-792-8447 The MarkeTech Group, SARL 3, Rue Emile Péhant 44 000 Nantes Tele: +33 (0)2 72 01 00 80 Fax: +33 (0)2 40 48 29 40 Contact Us: http://www.themarketechgroup.com/index.php?page=Contact_TMTG&utm_source=SlideShare&utm_medium=Social+Media&utm_campaign=Case+Studies

1. USA
502 Mace Blvd, Suite 15
Davis, CA 95618
United States
Tele: (+1) 530-792-8400
BACKGROUND
CHALLENGE
IMPACT
A dominant market-leading Client was challenged to identify an optimal pricing strategy for
a new product launch in an increasingly competitive market. Recognizing that the new
launch would cannibalize existing product sales, elicit substantial competitive responses,
and create an opportunity for customer brand-switching, the Client sought to identify
profit-maximizing price and pricing models. Nearly $1B in business was at stake.
Critical to the identification of optimal pricing was understanding the customer purchase
decision process and the relative influence of key stakeholders, including outside influenc-
ers like GPOs. Additionally, non-product pricing attributes such as lease-vs.-buy and
maintenance plans would change the involvement of different decision-makers. There was
also internal debate about the objectivity of the Client’s own sales force perspective.
SOLUTION
The MarkeTech Group (TMTG) recommended a combination qualitative and quantitative
study. TMTG completed 23 qualitative interviews which provided objective assessment of
buying decision factors. A quantitative survey was designed and fielded with 442
decision-making respondents, including clinical, economic, and operational stakeholders.
Data was used to collaboratively develop a market simulator to represent real-world
market movements..
Results were used by the Client to identify a preferred combination of profitability and
market share.
TMTG’s simPRO™ preference share model, Reactor™ market share model, and strate-
gic analysis demonstrated:
• Brand equity and switching costs are worth a 4% price premium to Client
• Client did not need to price-match or discount to retain and gain business
• Attribute importance was different than anticipated, prompting change to product
messaging
• An ideal mix of service and support options would incentivize upgrades and reduce Client
cost-of-sales
• An optimal portfolio of a single legacy product and the new product allowed segment-
specific offerings and premium pricing of the new product
• Optimized pricing of product and service plan were presented
Overall, the models provided optimized pricing for either profit or for market share, but not
both. For example, a profit-maximizing price would reduce market share by 6%, while a
market share-maximizing price reduced profitability by $51M.
EUROPE / FRANCE
3 rue Emile Péhant
44000 Nantes
France
Tel: +33 (0)2 72 01 00 80www.themarketechgroup.com
MARKET
METHODOLOGY MIX
South America
Europe
Qualitative Research
Strategic Consulting
Quantitative
Asia
PROFILE
CLIENT TYPE
PROJECT CATEGORY
PRODUCT CREATION
LAUNCH PREPARATION
Medical Device
Medical Imaging
Medical Diagnostics
Medical IT/eHealth
Biotechnologies
Pharmaceuticals
Technology Assessment
Opportunity Analysis
Customer and Product Requirements
Product Concept Testing
Segmentation Analysis
Brand Positioning
Packaging and Materials Testing
Go to Market Planning
Pricing
PRODUCT MONITORING
Customer Satisfaction and Loyalty
Post Launch Acceptance
MARKET AND BUSINESS PLANNING
Pricing Optimization
Business Model
Optimizing Pricing Strategy from
a Market-Leadership Position
TECHNOLOGY GO / NO GO
North America