IMC-Situation Analysis

+

Presented By: Kate Ammerman, Elisha Brandenburgh,

Ryan Currier, Jamie Eisinger, Mike Livermon, Cassandra Muntz

Situation

Analysis

+

The History ofMedical Inventors Group

Think Tank

Designs, Develops, and Markets Medical Inventions

Purpose: Creating Innovations to Improve the Quality of Life

+ Product

Bandage

3 – 4 Differentiating

Attributes

Direct to Consumers

+ Project

Design IMC Plan

Directed Towards

Consumer Market

Aid in Research For Product

Design

+Background Research

Wound care market:

• $7 billion in 2007 to increase 4.6%

annually and reach $28.7 billion by 2013

• Largest sector of wound care market: dressings, sealants, and anti-adhesion products

• Wound dressings to see 5.4% growth annually to 2013

o55.6% of total revenues 1.8 Billion US 2008


• Advanced Moist Wound Dressing

market largest segment of wound dressing market with steady growth

• Increasing applications for minor to moderate injury to boost demand for bandages 4.2% annually


Price Range

Brand Name Bandages

$4.29-4.99 8 -60count

Generic Bandages

$2.99-6.99 10-100 count

Kids Cartoon Bandages

$3.99-2.99 20-26 count (one size/assorted)

Advanced Healing

$4.99-10.99 6-10 count

Neosporin $5.29-9.99 .5oz-1oz

Generic anti-biotic

$5.99 1oz


Product Type

Pros Cons

Plastic/Sheer Bandages

•Cheapest to produce•Adheres well wet/dry•Protects wounds from infection

•Inflexible•Suffocates wounds

Fabric Bandages

•Flexible•Breathable•Adheres well wet/dry•Protects wounds form infection

•More expensive•Limited breathability


Product Type

Pros Cons

Foam Bandages

•Maximum Comfort

•Flexible

•Protects from infection

•Most expensive material to produce

•Poor adhesion

Medicated •2-in-1

•Kills/prevents germs

•Prevents infection

•Prevents scarring

•Expensive

•Risk of developing immunity


Product Type

Pros Cons

Advanced Healing

•Moisture seal to mimic natural healing process•Seals out water and bacteria•Absorbs excess moisture to be evaporated

•Unnatural materials•Limited breathability

Antibiotic Ointment

•Kills germs•Prevents infection•Prevents scarring

•Chemicals•Risk of immunity and secondary infection

+ Industry Analysis

The Bandage product category has Inelastic Demand.

The Industry is relatively saturated. Band-Aid monopolizes market share at 60%, and it’s brand equity poses a major barrier to entry.

There are many small players in the market but all have relatively small market shares. (2-3% each)

+ Industry Analysis

The macro environment does not have much an an influence on consumers’ purchases decision, except for two dimension:

Economic State increasing/decreasing price sensitivity.

1. Organic/Sustainability Trend increasing the importance of organic attributes

+ Competitive Analysis

Primary Competitors:

Band Aid- Specifically Advanced Healing

Curad- Specifically Hydro Heal

3M Active Strips

Generic Brands

Secondary (Indirect) Competitors:

Neosporin Anti-Biotic Ointment

“Generic” Anti-Biotic Ointments

+ External Analysis

Competing Technologies:

1. Hydrocolloid

2. Polymer Membrane (multi-layer)

3. Moisture Seal

+Strengths & Weaknesses

Strengths:

Modern brand image- in a stale product category

Innovative technology

Accelerates natural healing process

Chemical Free

Distribution channels in place

Weaknesses:

Saturated Market

Need to change long-held attitudes/awareness that wounds need to breathe in order to heal.

S.W.O.T.

+Opportunities & Threats

Opportunities:

First-to-market advantage

Patent ownership

Threats:

Alternative emerging technologies

Imitation by competitors

Short technology lifecycle

Consumers resistant to change

Switching Costs

S.W.O.T.

+ Research Objectives

What is the demand among American parents for a bandage that promotes healing (without chemicals touching the skin) and allows the wound to breathe?

What are the best avenues for contacting/communicating with the parent bandage market?

When and how often do parents purchase bandages?

How much money are parents willing to pay for a healing bandage, in comparison with the Band- Aid brand (per unit cost)

+ Primary Research• Conducted initial primary research by using Individual Depth Interviews with

consumers who fit the high user demographics.

-Andrea, Female, 47, Married, Mother of 2 young girls

-Alexandra, Female, 11, Middle School 6th Grader

-Cindy, Female, 51, School Teacher, Mother of grown up kids.

-Doug, Male, 55, Business general mgr, Grandfather of 6 yr old granddaughter (children are 20 & 34).

PARTICIPANT ROSTER

+ Primary Research

Ron, Male, 75, Retired business owner, Grandfather.

Susan R. Female, 50, Married, Mother of 2 college boys.

Sue M. Female, 49, C.P.A., 6 yr old granddaughter (children are 20 & 34)

Jenny, Female, 45, High School Teacher, Mother of a teenager.

Sunny, Female, 69, Luxury Spa Owner, Teenage granddaughter.

PARTICIPANT ROSTER

+ Quotes From Adults“what they told us”

“I prefer value. Price + quantity + quality = value. I would weight quality higher than price or quantity.” –Ron, 75-year old.

How many alternatives did you consider buying before buying your bandage?

”None. Johnson & Johnson Band-Aid. (She sang the song)” –Andrea, 47-years old.

“I prefer buying the colorful ones for the kids.” –Andrea, 47-years old

“My experience was the bandage didn’t stick as well as Band-Aid, so the healing time wasn’t as quick. “ –Sue, 49-years old.

+ Quotes From Kids“what they told us”

“I prefer a colorful bandage as opposed to a neutral one. I like the

ones with Sponge Bob on them, because I like Sponge Bob. I like

plain colored ones too, but not the plain skin colored ones.”

–Alexandra, 11-years old.

+Research Conclusions

Consumers- male & female, young & old, purchase Band-Aid Brand bandages.

-lack of awareness of other brands -lack of knowledge of what constitutes proper wound healing.

Brand loyalty to Band-Aid Brand is overwhelming.

Consumers cannot name alternatives that they consider unless using the term, “Generic”.


Younger users of the bandages prefer:

colorful bandages that stick strongly because of their active lifestyle.

Based on the MRI statistics about the actual users of bandages, it is clear that children are the highest users of the product (at 70%).

However these highest product purchase category is Mothers.


Adult users of the bandages prefer:

-Skin Colored bandages

Adult have a variety of needs. However, all state that “quality” is their top characteristic of bandages.

(However the components of quality are subjective and unique to the individual.)

All adults noticed that their wounds do get soggy or white under typical bandages.


When asked if they plan to switch brands to another bandage, they were reluctant to change.

However, most were open to trying a bandage that was “void of chemicals and allowed the wound to breathe”.

Band-Aid Brand has a strong following. is the top of choice appears to be the ONLY brand in their evoked set.


It is important to communicate to the target market the benefit of allowing the wound to breathe.

This is something that Band Aid does not do.

Sticking better, or staying on longer, does not promote healing.

+ Target Markets- Communications Strategy

Differentiated Marketing Strategy:

involves marketing in a number of segments, but developing

separate marketing strategies for each.

+ Bases For Segmentation

Demographic

Behavior

Benefits


Differentiated Marketing Strategy Segmented by product benefit:

Natural healing holistic, eco-conscious, mothers

Faster healing sports, industrial blue-collar, mothers

Advanced technology early adopters, trend setters

Chemical Free holistic, eco-conscious


Natural and healthier alternatives to traditional lifestyle options have become central to countless marketing campaigns – except Band-Aid.

True, their product has been modified over the decades to adapt to newer trends, however the product concept behind it has remained untouched.

Our product directly competes at this fundamental level.


LOHAS:

Lifestyles of Health & Sustainability.

A market segment focused on health, fitness, the environment, &

sustainable living.

ONE NEWLY IDENTIFIED TARGET MARKETBASED ON PSYCHOGRAPHIC SEGMENTATION THAT WE WANT TO AIM OUR COMMUNICATIONS AT IS:

+

New Product Innovation Adoption Model

+

Marketing & Communication Objectives

+ Positioning & Message Strategy

1. Band-Aid

2. Very brand loyal, people are unaware they prolong

healing

3. Family brand, classic

4. High preference for

band-aid


5. Consumers are open to

trying a bandage with our

attributes

6. Communication

needs to differentiate as:

-superior technology

-chemical free

-modern

-premium quality


Low Involvement products that are perceived to have high product differentiation often appeal to the consumers through cognitive messages.

Education

IMC-Situation Analysis