Marketing in Medical Devices

For those of us living in New England this has been a pretty easy winter. In the past wintertime in New England has meant lots of snow, cold temperatures and icy roads -- basically a pain in the neck. NOT this winter though  . . . so far this year we have had very little snow, temperatures have been mild and we have not been subjected to dangerous roads to drive on. For some people -- like the skiers in the area -- this is not the weather they like but for most of us we are enjoying this lack of winter conditions. Either way, it is clear that Old Man Winter has taken some time off this season!

How would you like to be able to take a season off?

Unfortunately, marketing professionals are not able to take a season off like Old Man Winter. The Allied Group defines Marketing as "The combination of strategic plans and specific tactical actions done intentionally and consistently to influence the perceptions of a target audience or individual buyer in order to create, maintain or grow revenue." This definition can be broken down in a number of ways but a critical component to that definition is the word consistently.

Allied works with various industries: Life Science Marketing. Marketing in Medical Devices. Higher Education Marketing. For these industries, the messages and methods to reach prospects might differ but they all rely on on thing: Consistency. Marketing is not a "quick hit" strategy; rather a successful marketing program requires strategic planning, precise execution, and a strong follow-up plan . . . a successful marketing program should always have a "next step" and a consistent flow of efforts to reach your clients and prospects.

Very few (if any) marketing messages can be successful with one approach or attempt. A great example of consistent messaging in a restaurant that all of us have eaten: McDonalds. It is safe to say that everyone knows McDonalds, knows what they serve and knows what kind of experience you will have going there. Yet you are consistently exposed to their advertising: television, radio spots, billboards, newspaper ads, direct mail coupons to our homes.

Direct Mail. Email Campaigns. Web Design Branding. Social Media. QR Codes. There are many ways to communicate your marketing message. Just like a carpenter uses the tools in his tool belt, the marketing professional has many "tools" to create their consistent messages.

So going back to our original question of "How would you like to be able to take a season off?" - The answer is NO.

What will be your next step in your marketing efforts?

The FDA has steadily increased its enforcement focus on supplier controls – a critical potential weak link in medical product manufacturing. Manufacturers can outsource goods and services but not regulatory responsibility or product liability.

Devices pose a unique set of challenges because of the exceptionally wide range of supplied products and services and a reliance on suppliers from other fields, who have limited knowledge of medical risk factors and regulatory requirements.

Another hot-button issue in all segments of the life sciences industry is full service fulfillment outsourcing. In the medical device sector, outsourcing initially took hold in the manufacturing phase, and companies raced across borders and oceans to capitalize on low-cost labor for potentially large profit gains.

Several trends are driving the need for single-source partners. Among these trends are rapid market growth and the emergence of new industry-spanning market segments. New markets, such as those for combination products and advanced drug delivery, are more complex than traditional markets.

Top business thinkers have known for some time that logistical success often equals business success. If you can find a better way to move goods in and out of your
organization and put the right things in the right people’s hands at the right time—your chances of success go up dramatically!

As the logistics outsourcing model continues to mature, companies are realizing that outsourcing key areas of sourcing, kitting and fulfillment can impart large productivity gains that translate into competitive advantages.

Medical device companies and medical marketing consultants, in turn, expanded their universe of external partners. But problems arise when too many outsourced firms are involved. Relying on a number of different suppliers to get a medical device to market can be inefficient and time-consuming. In response, medical device manufacturers have begun seeking partners that can provide full-service outsourcing and mail order fulfillment services.

Partnerships typically begin with a formal assessment process that helps evaluate the strategic elements of an organization’s outsourcing needs and short or longer-term “consult-to-action” retainer relationships often develop.

Programs for a formal logistics assessment look at an integrated supply-chain management approach to ensure more efficient movement of materials in and out of an organization including: procurement, warehousing, packaging, assembly, kitting, distribution, returns management, quality inspections and tracking with the ultimate goal of improving inventory visibility and velocity. 

By storing, assembling and distributing all manner of goods more efficiently, you will be able to positively impact your bottom-line. To learn more about how you can capitalize on low cost outsourcing, click here.



Jon Nugent | Director Client Services
Business Intelligence Solutions | www.busintellsol.com

A comprehensive global report on medical devices outsourcing titled “Medical Devices Outsourcing: A Global Strategic Business Report” projected the outsourcing market to reach $42.6 billion by the year 2015.

In today’s global marketplace, manufacturers are faced with intense competition, which is driving a demand for innovation, faster time-to market, and lower price premiums. Consequently, manufacturers must develop higher quality products faster and at a lower cost.

Primary drivers for medical device outsourcing include not only the growth pattern of overall medical device market, but also the extent to which device manufacturers choose to outsource their manufacturing, sourcing, kitting and assembly operations.

Medical device manufacturers face an even larger challenge by having to comply with strict regulatory requirements. Compliance requires that every decision and every step of the process be tracked and recorded, which adds a huge burden to medical device manufacturers trying to remain competitive.

When finished device manufacturers produce components specifically for use in medical devices they produce, whether in the same building or another location, such production of components is considered part of the device manufacturing operations, and the production should comply with the Quality System regulation.

The Quality System regulation is in Part 820 of Title 21 of the Code of Federal Regulations (CFR). This regulation covers quality management and organization, device design, buildings, equipment, purchase and handling of components, production and process controls, packaging and labeling control, device evaluation, distribution, installation, complaint handling, servicing, and records - full service fulfillment.

Companies that compete globally must assemble and label their medical device/diagnostic products to meet the specific regulatory requirements of the countries in which they are marketed. When you’re considering outsourcing, you need to address Quality System regulation regulations that pertain to the critical phases in the medical device development and production cycle.

Whether it is a few phases in the project cycle or the entire project, you need to work with a company that ensures the highest level of service and understands the regulatory requirements.

Growth in the market is especially driven by factors such as rising demand from device end market, an increased interest exhibited by OEMs on improving productivity and simplifying supplying chain network, emergence of one-stop shops, and ability of contract manufacturing to slash costs, an added impetus for adoption especially during tough economic and financial climate.

Concordia Medical, a medical device company that modernized their business practices, was driven by the need to remain competitive, and retain critical survival capabilities, agility and flexibility in a fast changing marketplace.


Jon Nugent | Director Client Services
Business Intelligence Solutions | www.busintellsol.com

According to a new article on third party logistics in Next Generation Pharmaceutical, “traditional pharmaceutical and medical device companies, along with newer biotech and equipment enterprises, are increasingly working together to produce systems that link drugs with devices and diagnostics. Their products are sent to consumers through multiple distribution channels: traditional wholesale, direct to pharmacies, to retailers for sale over-the-counter and directly to consumers’ homes”.

Bill Hook, UPS vice president of global strategy for healthcare logistics writes “These diversified channels can provide new revenue streams and new growth areas. However, manufacturers’ focus can be lost and critical errors made, particularly in transportation and distribution, when dozens of participants are involved”.

Outsourcing supply chain fulfillment operations is increasing for companies to regain their focus and remain competitive despite new market challenges. A third-party logistics (3PL) provider can help streamline the process – particularly in post-manufacturing handling and distribution.

In fact, more than two-thirds of pharmaceutical, medical device and diagnostics manufacturers surveyed in recent years by consultants at PRTM said they use or plan to soon use a 3PL. By using a 3PL, products can be moved quickly from manufacturing site to store shelf or dispensary. Quick market introduction is enabled because the distribution channels are already in place.

As the medical device industry continues to expand, companies are searching for ways to become more competitive. Medical device manufacturers are faced with intense competition, increasing regulatory pressures, shorter product life cycles, rapid new product introductions, globalization and higher quality standards. As a result, there is an increased focus on creating efficiencies in the supply chain similar to other industries.

Companies today are looking for Supply Chain Services and innovative technologies with proven best practices to improve service levels while reducing inventory and labor costs. In the process, customers gain end-to-end visibility to align their corporate business strategies and processes to their global supply chains.

Globalization

Perhaps the most prominent factor that medical device companies have embraced supply chain outsourcing has been the increase in the number of companies operating in the global marketplace.  Companies are embracing global sourcing, production, centralization of inventories and the centralization of information. 

The difficulties of operating in a global environment can’t be understated; logistics and supply-chain networks have become far more complicated.  Meeting the need to plan and manage logistics as a complete and integrated system has also become far more difficult. 
The best solution for a global company or a company wanting to become global is to outsource their logistics operations.

Jon Nugent | Director Client Services
Business Intelligence Solutions | www.busintellsol.com

• Research and Analysis:  who are your best prospects?
• Data Appending:   what is of interest to them?
• Nurture Marketing: how best to speak to them?
• Lead Generation:  how can they easily interact with you?

The need to evolve is the story of businesses all over America today. Companies are not just facing a turbulent economic climate; they are facing the impact of global competition. 

Companies need to be innovative and agile in the face of constant change; finding new markets, retooling and reinvention requires partners outside your organization to help you cut cost in order to compete in a global environment.

Concordia Fibers, a leading manufacturer of engineered fibers for a wide range of technical fabrics and one of the few textile mills still operating in Rhode Island that has survived, was looking to and needed to evolve.

Concordia Fibers wanted to create a separate and distinct business focused exclusively in the medical field yet keep it connected to its original industrial fiber roots and still under the Concordia name.

The management team at Concordia Fibers had determined that the right course was for the company to extend its textile expertise to other areas, with particular focus on the medical and bioscience industries.

THE Issues

Concordia Fibers had a name, a seasoned business leader, a strong team, a smart business plan, a unique product, and some well-established connections in the medical device industry. Now, it needed help defining the company and bringing it to life—the company needed a marketing communications plan and someone to oversee and execute all of the key elements.

THE Solution

Concordia Manufacturing, the parent company, chose The Allied Group to help them define a look and feel similar to Concordia Fibers, and then develop marketing materials to help launch this new subsidiary.

Allied:

• Created a new logo
• Designed, developed and built a new website
• Designed and printed pocket folders and marketing materials
• Created a new tradeshow booth
• Developed an ongoing and targeted media relations outreach to the medical community, high tech community, RI community highlighting new hires, new products, and new partnerships
• Coordinated an open house event to debut its new facility
• Researched and wrote case studies
• Designed lobby art/graphics for new facility

To read the case study on Concordia - The Evolution of one Life Science Company, click here.

THE Results

Art Burghouwt, Executive VP Concordia Medical, has said that “The Allied Group has been instrumental in creating our new brand and corporate identity including our new logo, marketing collateral, our web site, as well as helping us to write our press releases and communication to our customers."

Since the new web site went live Concordia received a number of high quality inquiries from corporations who specialize in the orthopedic, spine and urology markets who are interested in engaging Concordia Medical on some of their larger projects.

So what’s the bottom-line of the top-line?—Evolving Gives You Competitive Advantage

To compete globally, identify the appropriate strategic elements (who and why) and combine all the tactical (what, where, when and how). Chose a partner that can support your efforts to cut costs and provide an integrated business model that allows you to evolve and compete economically. 


Jon Nugent | Director Client Services
Business Intelligence Solutions | www.busintellsol.com

An international market leader in the development, manufacturing and distribution of medical devices approached The Allied Group with an issue they were experiencing concerning the distribution of an adjunct product necessary in the demonstration of their device.

In other words, they needed help with third party fulfillment.

Their primary selling tool is to invite physicians to a weekend workshop to explore how they can expand their practices by offering new revenue streams. The company conducts approximately 80 workshops per year, avoiding the summer months and December. Typically, thirty-five to forty physicians will attend a workshop (the smallest being twenty and the largest being close to one hundred).

During the workshop, they demonstrate a variety of equipment and have testimonials from local doctors who have expanded their practice by offering these services. There are extensive hands-on demonstrations during break-out sessions that allow the physicians to see the tools in action.

Download the case study

ISSUES:

The Marketing Department at this company is responsible for the determination and coordination of these workshops. Marketing and Sales are responsible for the logistics of where and when to conduct the meetings, who to invite, and how to drive attendance. They are also responsible for coordinating the contracts for the locations and making sure all the participant materials are in place for a successful workshop.

• The company had tried several approaches to solve this issue and there was confusion among the ranks on how to return the protective eye wear.
• Some thought they were to forward to the next workshop in the area and others thought they needed to be returned but weren’t sure where
• Many times protective eye wear were mixed in containers and nobody was checking them before they went back out.

Click here to read about the other issues.

SOLUTIONS:

The Vice President of Marketing came to the realization that the coordination and distribution of the supplies was neither a core competency nor a focal point of their company and looked to an outside resource for help.

The company was experiencing issues with the coordination of protective eye wear needed and with properly conducting demonstrations at the workshops. Allied investigated what was happening and spoke to numerous workshop leaders, sales reps and other stakeholders in the process. The Allied Group was invited to help with the coordination and distribution of the supplies and marketing materials for each of these workshops.

To learn more about how The Allied Group’s Turn key Supply Chain Services helped an international market leader make continued improvements and save $70,000 in one year download the case study.

Jon Nugent | Business Intelligence Solutions
www.busintellsol.com | 1.800.782.0580 ext 6