This is a marketing strategy for a leading medical device company for a new product launch. This presentation won the Babson Marketing Case Competition - 2012 with prize money of $5000. 16 schools across the globe were competing in this competition.

1. MARKETING STRATEGY
FOR NEW CANCER
TREATMENT –
SHARP THINKING
BEYOND RAZOR/BLADES
Eric Siegel
Fred Ellis
Saurabh Malani
Aditya Thakur

2. What is the problem?
 Paradigm shift: Treating to Preventing Cancer
 Concerned stakeholders
 Providers – Doctors, Hospitals
 Limited time
 Low budget for capital investment
 Uncertain ROI
 Patients
 Awareness
 Payers
 Comparative costs
 Reimbursement policy

3. Benefits to Believers
 Patient
 Minimally invasive
 Reduced discomfort
 Providers
 Revenue stream compared to “wait and watch”
 May replace colonoscopy treatments
 Marketing opportunity on innovative treatment in
competitive environment for patients
 Payers
 Reduced long-term care expenses

4. Marketing Plan – Three Phase
Approach
Reaching out to different stakeholders at different
points in time in the course of next 2-3 years.
 Phase 1: (Months 0-8)
 Early Adopters/Influencers
 Hospitals
 Phase 2: (Months 9-16)
 Insurance companies
 Customers
 Phase 3 (Months 17-36)
 Mass markets (Hospitals, Clinics, etc.)

5. Phase 1 – Get the Early
Adopters
 Get equipment in use at early adopters/influencer sites
 Academic teaching hospitals
 Leading edge practices
 Easier target because they keep up with journal publications and
embrace innovation
 Marketing Plan
 License technology to hospitals
 Rent generator $1,500 / month
 Charge payment for disposables ($1,000 value) only when
insurance pays.
 Assuming 50% insurance reimbursement rate
 Worst Case: $3,125 income to hospital / month
 Best Case: $260,000 income to hospital / month
 $0 gain/loss to Company for disposables

6. Phase 2 – The Blanket
 Leveraging benefits from Phase I
 Widespread success with early adopters
 Journal publications: GI Associations (PMC)
 Generating critical mass for insurance
 Insurance Companies (Goal: Blanket coverage)
 Citing cost advantages
 Assumption: 58k patients get surgery – Cost $1.16 Billion
 Set a bar for reimbursements
 Only for Low & High grade Dysplasia: Population 240k x $1500 = $360 Million
 Cost advantage – Potentially $800 Million
 Patients:
 Marketing partners
 AARP
 Healthy food providers
 Antacid

7. Phase 3 – Going Big!
 Insurance companies launch “Blanket” policies
 Launch to mass markets
 Increase license fees
 Procedures are fully reimbursed
 New segments:
 Towards community GI's
 Reimbursement guaranteed
 Easy to use and short duration process
 Proven results with large patient population
 Colonoscopy market replacement
 Thoracic surgeons
 Shrinking cancer market

8. Challenges
 Time required per sell
 Substantial initial investments in technology
licensing
 Efforts in changing the "surveillance" paradigm
to "adoption" in GI associations magazines
 Making sure that it does not go in the hands of
cowboy doctors
 Cryotherapy: Competitive option if clinical trials
are done within time.

9. Summary
 Sharp thinking beyond razor/blade sales
 Three phase approach
 Phase 1
 Build credibility with early adopters
 Reduce objections to investment & reimbursement
 Phase 2
 Marketing partnership towards patients
 Leverage treatment experiences and journals to influence
insurance reimbursement policy
 Phase 3
 Go big
 Capture mass market