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This latest strategic publication from HBS Consulting "Medical Device
Branding - Building Identity and Equity" provides:
- An analysis of the benefits and advantages various branding strategies can
offer.
- The mechanisms and models that can be employed to create a strong brand
for the medical device industry.
- Case studies reviewing branding experiences of companies within the
medical device and diagnostic sectors.
- Strategies for building and leveraging brand value.
The report is an invaluable resource illustrating - as it does with
regularity throughout - how not only the major medical device manufacturers but
also middle-tier and smaller players manage their brand strategy to garner
positive competitive advantage. Strategy review, "Medical Device Branding -
Building Identity and Equity", will be of particular value to business
development, marketing and top-line corporate personnel as well as to all
involved in brand development and management.
Executive Summary
In the late 19th and early 20th Centuries a brand was frequently little more
than the name that was attached to a product. The brand would normally consist
of the name of the company and a descriptive name for the device. Such an
example was the Rorstrand Inhaler introduced in 1874. This device was a ceramic
vessel (made by Rorstrand) that could be filled with water and aromatic herbs
and inhaled by people with chest disorders. Since this time the majority of
medical device manufacturers have done little to take on board the lessons
learnt from other consumer markets and many still label and brand their products
with as little thought to the procedure as occurred over a hundred years
previously. In the 20th and 21st Centuries the idea of what a brand is has
changed, and today the following statement is generally considered to be true: In
other markets the rewards of effective branding have been obvious for many
years, with examples like the Coca Cola company whose value of $14 billion is
almost entirely due to shrewd branding strategies leading the way. However,
within the medical device industry the principal reason for not placing
significant resources into branding campaigns has been that it was considered
that the customers for medical devices were physicians and physicians were not
thought to be affected by branding messages in the same way as other consumers
were. In every way this view is now being challenged. Firstly, the
idea of who the customer is has been changing and those companies with foresight
realise that, with regards to purchasing, physicians, technicians, nurses,
budget holders and patients can all influence the purchasing decision. In turn,
branding can influence all of these people. Secondly, the view that the effect
of branding messages on physicians differs from that placed on other consumers
has been proven to be false. A more accurate assessment is that there are a
number of other considerations that a physician has to bear in mind when making
a purchase and as long as these are also fulfilled by the brand then the
likelihood of making the sale is increased. Some medical device companies are
therefore beginning to change their attitude towards branding as they realise
that it can offer a number of rewards, not the least of which are:
- Decreased administration costs.
- Increased customer, investor and employee belief in the company.
- Increased sales.
- Increased company value.
Constructing, defining and communicating a company's brand message is not one
simple procedure that can be applied across all situations. Instead the task
comprises a number or set of related procedures. Figure 1.1 illustrates the
processes that are used within the medical device industry and which are
discussed in more detail throughout the report. | 
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