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BACKGROUND

CHALLENGE

IMPACT

The Client, an international medical device and technology leader, is a major player in the U.S. medical imaging device market. Its flagship product is a premium intra-operative imaging system that utilizes state-of-the-art features. With pressure from the sales department to reduce the device’s price, the Client wanted to re-evaluate its optimal pricing. By understanding competitive brand perceptions and the value of product features, the client can understand the impact on market performance.

The Client required a better understanding of the consumers’ purchasing process and the choice drivers impacting product options vs. price. Specifically, the Client wanted to understand how much price affected customers’ willingness to buy relative to the percep-tion of the brand and product features. It was important to identify which features were key determining factors for consumers to purchase the device.

SOLUTIONThe MarkeTech Group (TMTG) recommended a 2-phase approach. In Phase I, In-Depth Interviews (IDIs) were conducted to identify the elements that drive decision-making and to verify key decision-makers. This information was used to design the phase II web survey, which was then administered to 201 physicians, OR managers, and imaging directors. The data collected from the survey was then analysed and also used to develop a preference simulator, which allowed the Client to run “what-if” scenarios to model price sensitivity, feature configurations, and brand perception.

The Client realized that its strong brand, product reliability and uptime, and comprehensive technical support were key factors in consumers choosing the Company’s products. TMTG’s analysis revealed several device features that drove choice, and that price was elastic only in a small range. TMTG’s simPRO™ preference share model suggested that lowering price below an identified level will have little impact on preference and therefore, act to simply reduce margins with minimal impact on market share. The Client used TMTG recommendations to become more disciplined about pricing, resulting in improved profitability. The analysis also allowed the Client’s development team to focus on and develop key device features to maximize adoption.

EUROPE / FRANCE3 rue Emile Péhant

44000 NantesFrance

Tel: +33 (0)2 72 01 00 80www.themarketechgroup.com

MARKET

METHODOLOGY MIX

South AmericaEurope

Qualitative ResearchStrategic Consulting

Quantitative

Asia

PROFILECLIENT TYPE

PROJECT CATEGORY

PRODUCT CREATION

LAUNCH PREPARATION

Medical DeviceMedical Imaging

Medical DiagnosticsMedical IT/eHealth

BiotechnologiesPharmaceuticals

Technology AssessmentOpportunity Analysis

Customer and Product RequirementsProduct Concept Testing

Segmentation AnalysisBrand Positioning

Packaging and Materials Testing

Go to Market PlanningPricing

PRODUCT MONITORINGCustomer Satisfaction and Loyalty

Post Launch Acceptance

MARKET RESEARCH AND PLANNINGCustom Market Analysis

Market Mix Analysis

OR Equipment – Don’t Leave Money on the Table

TECHNOLOGY GO / NO GO

North America