Guido Sandulli Director of Marketing Merit Medical Agenda Background Academia vs Real World Marketings Role PreLaunch Upstream Marketing Product Launch Lifecycle Management Background ID: 782305
Download The PPT/PDF document "Product Launch and Lifecycle Management" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Product Launch and Lifecycle Management
Guido Sandulli
Director of Marketing – Merit Medical
Slide2Agenda
Background
Academia vs Real World
Marketing’s Role
Pre-Launch – Upstream MarketingProduct Launch Lifecycle Management
Slide3Background
Decision Resources - Boston MA 1995-1999
Pharmaceutical Industry Market Research and Strategy Consulting
IBM Life Sciences – San Francisco CA 2001-2005
Product Management/Marketing Management – Life Sciences ITApplied Biosystems / LIFE -- Foster City CA 2005-2012
Strategic Planning/Product Management – molecular testing
Merit Medical – South Jordan UT 2012-current
Director of Marketing – Medical Devices
Slide4Academia vs Real World
How to apply academic concepts?“It works in practice….but does it work in theory?
How to learn from real world experience?
“This one time, we did this thing….”
Slide5Role of Marketing
Marketing vs Sales vs R&D – Marketing is often the last one to the partyR&D already has an idea about what they want to build
Sales already has an idea about who they want to sell to
Marketing – identify where the value is being created – and plan the most efficient way to communicate and deliver it
Slide6Market – Human Identity DNA assays
DNA tests used by law enforcement – DNA profile from criminal suspects put into databases
Samples from crime scenes analyzed and matched to suspects
Used to generate evidence and investigative leads
Slide7Market Background – Human Identity DNA testing products
Public and private contract labs use reagents, instruments and software to perform DNA analysis and deliver usable DNA profiles
Testing reagents are extremely profitable – pharma-like margins
Quantitation
Amplification
Detection
Data Analysis
DNA
Extraction
Customers are employees of government law enforcement agencies
Typically from science PhD background, often with long term government service
Slide8Pre-Launch – Upstream Work
Understand customers’:SegmentsProblems
Priorities
Build Value Proposition and Targeting Plan
Which segment are you targeting?How can you reach them?What do you say to them?
Slide9Challenges facing forensic laboratories
More and more samples
Difficult and damaged samples
Political pressure to reduce backlogs
Shortage of trained scientists
Increasing quality standards
Workflow bottlenecks
System validation
Sample preparation
Data analysis and report writing
Slide10Upstream Work – Customer Segmentation
Databasing
Predictable
Standardised collection
High yield, high quality DNA
High throughput, continuous-flow processing
Casework
Unpredictable
Highly variable samples
Low yield, low quality DNA
Mixed source
AgedBatch or custom processing
Slide11Upstream Work – Example: Identifiler Plus
Market research is your friend – use it early and oftenReview the user specs – the value designed into the product is what you need to communicate
Key Requirements of a Forensic Casework Analysis Kit
Slide12Identifiler® Plus
Example
Better results from tough samples
Old Kit
New Kit
Enable more uses for tests
Slide13Pre-Launch – Value Proposition
What is the value your product is delivering?Solve more cases, fewer wasted reagents, enable more DNA investigations
Who is realizing the value?
Society at large? Political leadership? Lab Management?
Who is the decision-maker and who gets to weigh in?Lab Management? – Law enforcement leadership?
Slide14Setting the Price
Value Extraction – how do we keep the value we created?
Pricing on value – how do we calculate this?
Forensics -- investigation time saved –
$500,000 for successful rape investigation$40,000 for successful burglary investigationPharma – clinical benefit and cost savings over current gold standardMedical Device – Procedure time saved Typical cardiac cath lab costs $1600 per hour
Slide15Setting the Price
Value extraction – what additional value are customers getting?
Price
discrimination – can we package the value in a differentiated way to different customers?
Competition will try to commoditize – how to prevent?Package hardware
, software, and services together
Price at Premium to gold standard
Avoid price war with competition
Slide16Know your channel
Sales Channel Selection -- do your sales teams know the right people?
What if the channel you have isn’t the right one?
Crime lab staff often not allowed to have access to email or web access
Travel budgets for crime lab staff extremely limitedHow do you reach your target audiences?
Road Shows
Celebrity Endorsements
Conferences
Slide17Test Launch
Limited release in 1 region vs. mass global launch
Test the assumptions in your plan
Extract the info you need
Adjust and scaleTest Sites candidates were prioritized based on Access to compelling casework samples
Threat
to existing
business
Opportunity for competitive
winData from
test sites confirm superior performance in difficult DNA casework samples.
Slide18Launch Roll-Out
Repetition!
Launch
Plan from
2009:NA sales training scheduled for week of July
6 2009.
Communicate to US customers during roadshows in July-August 2009 Customer-facing presentation and Forensic News article distribution to field by end of August
Formal US Launch at ISHI in Oct
Follow-on presence at ISFG and AAFS in Seattle in Feb 2010.
Old Kit
New
Slide19Launch - Logistics
“Amateurs talk tactics – Professionals talk logistics”. -- Old Army sayingGoals
Support launch
– but limit
inventory carrying cost and scrapLimit risk of quality failureLimit risk of backorder1st Lot– only enough to support test site evaluation2
nd
Lot– enough to support test site adoption
3
rd Lot – support single-region launch
Additional builds over next year to support additional regions.Manage expectations of executive team!
Slide20Product Lifecycle – Growth
Establish strong market share as quickly as possible by:
Global
Expansion – China, Russia, South
AfricaMarket Development – New applications enabled by new productLine extensions -- additional product R&D
Slide21Product Lifecycle – Growth
Geographic Expansion
Large countries with focus on security
Channel development needs to be done very carefully!
Focus marketing on localized needs
China – trafficked children
Russia – terrorism
South Africa – sexual assault
Training and Lab set-up are bigger needs
Needed to develop professional services team to support
Slide22Product Lifecycle - Growth
Market Development – Property CrimeNew Product enabled the analysis of more samplesMade analysis and investigation of property crime much easier than before, however…..
Average property loss from burglary is $2,000 – investigation and prosecution cost of over $40,000.
How to convince law enforcement to use DNA in property crime?
Pilot programs to demonstrate value – can catch one perpetrator for multiple crimes!Once a program is started, likely to stick with our product.
Slide23Example: Denver Burglary DNA Project
Denver focused on the use of DNA in solving property crimes and found:
$36.8 million
in
property loss was avoided and $5 million in police costs were saved over 2 years.
$
90.50
was saved for every $1 spent on DNA
testing.
Cases with DNA:Eight times more likely to be prosecutedThree times more likely to result in a conviction
10 times longer prison sentences for home burglars and 6 times longer for commercial burglarsThe burglary rate in Denver dropped 26%. Prior to the Burglary DNA Project, property crimes had increased by about 5% annually.
SOURCE: “Using DNA to Solve High Volume Property Crimes in Denver: Saving Money, Lowering Crime Rates and Making Denver Safer.” The Prosecutor, July/August/September 2008, ISS No. 0027-6383, National District Attorneys Association)
Slide24Product Lifecycle – Maturity
Fight commoditization – preserve value extractionHighly profitable assay business draws strong competition
As later entrants, try to mimic performance and compete on price
Attempt to commoditize market as much as possible
As global economies slowed, governments seek cost savings aggressively
How to prevent head-to-head price comparisons?
Slide25Product Lifecycle - Maturity
Delay commoditization by building/buying the workflow components competitors didn’t have:
Instrumentation:
Services:
TrainingValidationLab set-upInstrument service contracts and warranties
Lab Automation
Offered together at bundled price – difficult to break bundle or
compare line-item
pricing
Slide26Product Lifecycle – Decline
Goal – maximize value extraction prior to end-of lifeRepurpose:
different application
different customer/geography
different channel
Slide27AuthentifilerTM Example
Old Product discontinued
Components reassembled, rebranded for new application
New Channel
New Pricing
Value proposition and marketing plan completely different
Slide28Product Lifecycle – End of Life
Raise prices!Offset operational inefficiencies
Help
motivate users to move to new generation product
Make available as build to order onlyLimit inventory carrying costMotivate users to move to new generation productProvide advance notice of discontinuation and offer introductory offer on new
product
Be disciplined enough to go through with it!
Slide29Thank You
Questions?