Feb 292012

Confidential cllientThis major multinational supplier to the healthcare sector had grown through multiple acquisitions. As a result, one of its product portfolios in surgical disposables contained a large number of partially overlapping product lines without a clear overall positioning. Issues included:

  • Sales staff hade difficulty with presentation of the value propositions, thus running the risk of being squeezed on price;
  • Some volume product lines were unprofitable;
  • One niche product line with clear clinical advantages was performing poorly in the market and achieving almost no volume.

The client was considering whether to reprice the latter product line to stimulate demand, but was concerned about possible cannibalisation of other product lines. Zebra reviewed the overall portfolio, including available clinical evidence, value propositions, pricing and cost structure. The review found that the niche product could be repositioned as a mainstream product and would vastly improve the company’s value proposition and profitability. Key to this was a value proposition based on minimising the risk of specific types of post-operative complication; this required a more strategic approach to selling this product portfolio.

Leave a Reply