Question

New Product Market Capstone Scenario

A leading multinational firm operating within the medical industry is completing the development of adhesive drapes used primarily for pediatric burn victims. These surgical drapes reduce patient infections, are easy to use, and provide affordability and access within even the lowest of GDP emerging markets

Currently, the only existing drapes cost the hospital $200 per set and can only be used for one procedure. It is estimated that this new product innovation will cost the hospital $10 per unit and the manufacturer will have 20% variable cost. All products are shipped directly from the firm to the hospitals. Shipping and handling is factored into this cost-structure. Overall fixed costs are estimated at $3 million.

Miraculously, these new drapes will reduce the current infection rate of 9% by 66.67%. it is estimated that with the older drapes 20% of all such infections led to morbidity.

Based upon market analysis, it is estimated that the new product market share will be 66.67% of 30 million procedures annually. Currently, the market for drapes is segmented based upon type of application (burns, blunt injuries, and birthing), age of the patient, income/ability to pay, gender, and country of the hospital. Purchasing decisions are made by hospitals buyers who are influenced by trained medical staff

Scenario Assignment

As a newly hired product manager within this leading firm, you are requested to analyze and report the following to the leadership committee:

1. Demonstrate and understanding of marketing opportunity analysis in marketing decision making:

Question: Conduct a SWOT analysis making sure you address strengths, weaknesses, opportunities and threats.

2. Demonstrate and understanding of the role of product in planning and implementing a marketing strategy:

Question: Introduce and describe the steps involved in a new product development process to provide enhanced innovations withing the scenarios context. Take a 7-step approach to new product to new product development.

Answer 1

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1. Demonstrate and understanding of marketing opportunity analysis in marketing decision making - Conduct a SWOT analysis making sure you address strengths, weaknesses, opportunities and threats.

SWOT analysis:-

Strengths:

(i) Reduces diseases in patients.

(ii) Easy to use.

(iii) Productivity And low cost of innovation, development, and operations.

(iv) Clear marketing and distribution network.

(v) Active shipping and handling program.

(vi) Decreasing the existing infection rate.

(vii) Wide pool of skilled healthcare staff.

Weaknesses:

(i) Quite competitive climate.

(ii) Marketing.

(iii) Follow-up.

(iv) Additional administration effort.

(v) Delivery network difficult.

Opportunities:

(i) Cost reduction and enhanced quality of drape Global demending.

(ii) Online drug retailing.

(iii) Growing population.

(iv) Medical tourism.

Threats:

(i) Changing policy regulations.

(ii) Global competitiveness.

(iii) Inflation-pay.

(iv) No guarantor of immediate ROI.

(v) Financial risk Provider.

(vi) Direct marketing, distribution and delivery risks.

2. Demonstrate and understanding of the role of product in planning and implementing a marketing strategy - Introduce and describe the steps involved in a new product development process to provide enhanced innovations withing the scenarios context. Take a 7-step approach to new product to new product development.

7 steps are as follows:

Step I : Generation of new ideas - Validate targets.

Step 2 : Preliminary assessment - price, drug, commercial opputunities in the market.

Step 3 : Laboratorial developmet - Phase 1 ( with healthy voluntiers), Phase 2 ( with patients receiving drugs) , Phase 3 - ( with individuals).

Step 4 : FDA review.

Step 5 : Manufacturing Drugs.

Step 6 : Register and Launch.

Step 7 : Post marketing And Monitoring - Collection of date regarding adverce reactions.