Pricing Strategies the outlook for Medical Device and Diagnostic Companies

Table of Contents

1. Executive Summary

2.An Introduction To Pricing

• The target audience
• The price is right?
• Pricing strategies
  • Price sensitivity
    • The unique value effect - peripheral stents
    • The substitute awareness effect - syringes
  • Conjoint analysis
  • The strategy clock
  • Economy pricing
  • Price skimming
  • Penetration pricing
    • Premium or prestige pricing
    • Cost-based pricing
    • Cost-plus pricing
    • Experience curve pricing
    • Demand-based pricing
      • Product line pricing
      • Pricing differentiation
• Competition-based pricing
• Competitive parity
• Cost-benefit pricing strategy
• Market segmentation
• Company example - Chiron Behring GmbH & Co
• Company example - Tyco Healthcare

3. Customer Value, Competition And Cost. Their Role And Influence On Development For Effective Pricing

• The therapy
• The customer
• Value pricing
  • The effect of the changing medical device market on value pricing
  • Value pricing for consumer markets
    • Uniqueness
    • Scarcity
    • Trust
    • Proximity
    • Opportunity
  • Integrating value pricing into a company
    • Customer research
    • Translation of the customer response into value components
    • Anchoring
    • Equip the sales force with tools that support value-based pricing
    • Company example - Varian Medical Systems
• Impact of branding and loyalty
  • Creating a brand
  • Branding/price questions
  • Company example - Hill-Rom
• The competition
  • Price points
  • Price wars
  • Price leaders and followers
    • Barometric price leadership
    • Dominant firm and competitive fringe
    • Collusive price leadership
    • The dynamic view
  • Company example - Omron Healthcare
• Pricing strategy examples in different medical device sectors
  • Pacemakers
  • PTCA catheters
  • Wound care

4. Current issues and changes impacting on pricing

• Reimbursement
• Health technology assessment issues

5. Global and Regional Pricing : Drivers and Trends, Market Challenges

• Market facts
• USA
  • Company example - Baxa Corporation
• Japan
• Europe
  • The Czech Republic
  • France
  • Germany
    • Company example - Bien-Air
  • Italy
    • Company example - Smith & Nephew
  • Poland
  • Spain
    • Company example - Synthes, Inc
  • The UK
    • Company example - Smith & Nephew

6. Alignment of Pricing Strategies with Overall Corporate Business Strategies

• Incorporation of pricing strategies into company strategic objectives
• Company logistics
  • Discounting
  • Improving the pricing structure

7.Conclusions and Strategic Recommendations

• The company
  • Streamline electronic systems
  • Advertise and disseminate the goals of the company
• The product
  • Value pricing
  • Market dynamics