New Product Marketing: Capstone Scenario New Product Marketing: Capstone Scenari

Question

New Product Marketing: Capstone Scenario

New Product Marketing: Capstone Scenario:

A leading multinational firm operating within the medical industry is completing the development of adhesive drapes used primarily for pediatric burn victims. These surgical drapes reduce patient infections, are easy to use, and provide affordability and access within even the lowest of GDP emerging markets.

Currently, the only existing drapes cost the hospital $200 per set and can only be used for one procedure. It is estimated that this new product innovation will cost the hospital $10 per unit and the manufacturer will have a 20% variable cost. All products are shipped directly from the firm to the hospitals. Shipping and handling is factored into this cost-structure. Overall fixed costs are estimated at $3 million.

Miraculously, these new drapes will reduce the current infection rate of 9% by 66.67%. It is estimated that with the older drapes 20% of all such infections led to morbidity.

Based upon market analysis, it is estimated that the new product market share will be 66.67% of 30 million procedures annually. Currently, the market for drapes is segmented based upon type of application (e.g., burns, blunt injuries, and birthing), age of the patient, income/ability to pay, gender, and country of the hospital. Purchasing decisions are made by hospital buyers who are influenced by trained medical staff.

Scenario Assignment

As a newly hired product manager within this leading firm, you are requested to analyze and report the following to the leadership committee:

1. SLO1 - Demonstrate an understanding of marketing opportunity analysis in marketing decision making:

Question: Conduct a SWOT analysis making sure you address strengths, weaknesses, opportunities and threats.

2. SLO2 - Demonstrate an understanding of the role of product in planning and implementing a marketing strategy:

Question: Introduce and describe the steps involved in a new product development process to provide enhanced innovations within the scenario’s context. (Many textbooks take a 7 step approach to new product development).

3. SLO3 - Demonstrate an understanding of the role of distribution in planning and implementing marketing strategy:

Question: Describe two possibly optimal indirect supply chains that could rival the currently utilized direct channel approach.

4. SLO4 - Demonstrate the role of price in planning and implementing marketing.

Question: Determine the variable cost this leading multinational firm occurs when producing each drape, and how many units (and dollars worth) of drapes must this firm sell in order to obtain a $1 billion profit when each drape is sold to the hospital at $10.

Explanation / Answer

1.Demonstrate an understanding of marketing opportunity analysis in marketing decision making: Conduct a SWOT analysis making sure you address strengths, weaknesses, opportunities and threats.

SWOT ANALYSIS : New Product Marketing: Capstone Scenario

STRENGTHS

WEAKNESSES

OPPUTUNITIES

THREATS

2.Demonstrate an understanding of the role of product in planning and implementing a marketing strategy: Introduce and describe the steps involved in a new product development process to provide enhanced innovations within the scenario’s context. (Many textbooks take a 7 step approach to new product development).

STEPS - NEW PRODUCT DEVELOPMENT - Capstone Scenario

STEP I : Generation of new ideas - Validate targets

3. Demonstrate an understanding of the role of distribution in planning and implementing marketing strategy: Describe two possibly optimal indirect supply chains that could rival the currently utilized direct channel approach.

INDIRECT SUPPLY CHAIN APPROACHS:

Direct marking alone won't be helpful for successful marketing of any product. In the advanced development of technolgy using technology for promotiong product is important.

Following two indirect supply chain methods will be helpful for Capstone Scenario:

Both the methods leads Capstone Scenario to captur new demands in medical industry global wide.

STRENGTHS

• Reduces patient infections.
• Easy to use
• Cost competitiveness
• Low cost of innovation, manufacturing and operations.
• Direct marketing and distribution network
• Effective shipping and handling system
• Reduce the current infection rate
• Large pool of trained medical staff

WEAKNESSES

• Very competitive environment
• Marketing
• Follow up
• Additional administration effort
• Difficult distribution system
  

OPPUTUNITIES

• Reduction in cost and improved quality of drape
• Global demending
• Online drug retailing
• Rising population
• Medical tourism

THREATS

• Changing government regulations
• Global competition
• Inflation - wage
• No guarentee of immediate ROI
• Provider financial risk
• Direct marketing, distribution and delivery risks
  

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.