1
1.1) Siemens Healthineers………………………………………………………………………………………………………………..3 1.2) Current Situation of Market and Market Data…………………………………………………………………….3 1.2.1)Global Condition………………………………………………………………………………………………………. 3 1.2.2)In Turkey……………………………………………………………………………………………………………………….5 1.3)SWOT Analysis…………………………………………………………………………………………………………………………….. 10 10 1.4)PESTEL Analysis……………………………………………………………………………………………………………………………. 11 1.5)PEST Analysis of Domestic Medical Device Market……………………………………………………………. 11 1.6)Competitors………………………………………………………………………………………………………………………………….. 13 1.7)Customer Analysis………………………………………………………………………………………………………………………. 13 13 2.1)Segmentation and Targeting………………………………………………………………………………………………….. 14 2.1.1)Segmentation……………………………………………………………………………………………………………..14 2.1.2)Targeting…………………………………………………………………………………………………………………….. 16 2.2)Positioning Statements……………………………………………………………………………………………………………….16 3.1)Marketing Mix……………………………………………………………………………………………………………………………… 17 3.1.1)Product…………………………………………………………………………………………………...…………………………………. 17 3.1.1.1)Existing Product……………...……………………………………………………………………… 19 3.1.1.2)New Product………………………………………………………………………………………….. 19 3.1.2)Price…………………………………………………………………………………………………………………………….. 19 3.1.3)Place……………………………………………………………………………………………………………………………. 20 3.1.4)Promotion………………………………………………………………………………………………………………….. 20 3.1.4.1) Promotion For Existing Products …………………………………………………… 20 3.1.4.2) Promotion For New Pro ducts ……………………………………………………………21
2
What does a marketing department do? This course is very helpful to able to describe the philosophy and task of marketing deparment. In that study I tried to incorporate all the information and data we have learned during this lecture. This project is prepared on the basis of a multinational company which is Siemens Healthineers Medical Imaging. I have been working more than 8 years in Medical Imaging area. In this project, the first part discusses company, current market data at global and national, SWOT analysis, PESTEL analysis, PEST analysis of Turkish medical device industry, Competitors and Customer analysis. Second part, about segmentation of medical imaging devices and targeting of the company and positioning statement of the company. And the third part discusses marketing mix. Additionally, there is a reference part which includes all related references.
Siemens Healthineers (formerly Siemens Healthcare, Siemens Medical Solutions, Siemens Medical Systems) is a medical technology company and is headquartered in Erlangen, Germany. The company dates its early beginnings in 1847 to a small family business in Berlin, co-founded by Ernst Werner von Siemens. Siemens Healthineers is connected to the larger corporation, Siemens AG. The name Siemens Medical Solutions was adopted in 2001, and the change to Siemens Healthcare was made in 2008. In 2015, Siemens named Bernd Montag as its new global CEO. In May 2016, Siemens Healthcare was renamed "Siemens Healthineers." Globally the company has 45,000 employees, most of them in Germany.
Molecular imaging market has grown manifold during the course of time, primarily due to increasing demand for detection and monitoring of disease such as cancer and other rare genetic disorders. Molecular imaging is one such technique which has helped to understand the disease complexities in a more efficient manner. Molecular imaging is a biomedical discipline that provides detailed visualizations and measurement of biologic processes taking place inside the body at molecular, cellular and genetic level. The prime function of molecular imaging is to interrogate biological processes in the cells of the humans or other living organisms to understand the abnormalities and malfunctioning that cause or form the basis of disorders. Various techniques that have been used in molecular imaging includes Magnetic Resonance Imaging (MRI), Magnetic Resonance Spectroscopy (MRS), X-ray Computed Tomography (CT), ultrasound, optical imaging, single photon emission computed tomography (SPECT) and several others. Amongst all other techniques photon emission tomography (PET) especially SPCET are most commonly used techniques due to their ability to allow interrogation at detailed tissue depths. PET and SPCET scanners generate images of lungs, livers, and hearts and also provide information about the organ’s metabolism and other functions.
Substantial increase in demand for molecular imaging has been reported across the globe. Moreover, developed markets registered highest growth; these markets also represents the largest pie in the global molecular imaging services and devices market. Currently, US tops the global demand for molecular imaging services as well as devices, if countries taken into consideration. In 2013 US accounted for around one half of the global molecular imaging services and devices market. Molecular imaging helps to detect the illness or disease at the earlier stage and is proved to be very effective to analyze the cardiovascular disease conditions, neurological conditions and cancer stages. 3
Imaging systems enable medical professionals to make processes within the human body visible so that they can diagnose pathological changes and precisely target therapeutic procedures. According to market experts, such imaging methods have substantial growth potential. For example, an analysis conducted by Research and Markets in 2016 forecasts that the market for medical imaging systems will grow from $30.2 billion in 2013 to $94 billion in 2016. To date, the associated market revenue has been mainly concentrated in industrialized countries and generated by a few international corporations. The market experts from Frost & Sullivan state that GE, Philips and Siemens accounted for 78 percent of the global market revenue from medical imaging equipment in 2016.
4
There are about 2 thousand 350 high tech medical imaging devices ( MRI, CT, PET/CT) in Turkey. High tech medical imaging devices number of every one million people is just 28. Turkey has no high tech imaging devices in many provinces.
High Tech Medical Devices Number per 1 million people in Turkey Computed Tomography (CT)
15
Magnetic Resonance Imaging (MRI)
14,3
Positron Emission Tomography/Computed Tomography (PET/CT)
1,2
Linear Accelerator (LINAC)
2,3
In 2009, Siemens established a new 76 million $ valued manufacturing site in Gebze Organized Industry Area.Turkey has more than 6 thousand Siemens high tech medical imaging devices, and 200 thousand patient treat by these devices every day.
PET/CT
65%
SIEMENS
MRI
CT
63%
OTHERS
27%
37%
35%
SIEMENS
73%
OTHERS
SIEMENS
OTHERS
5
Device Distribution
Device Distribution
6
Europe Average Comparison
Device Distribution
7
Device Distribution
Europe Average Comparison
8
Device Distribution
Device Distribution
9
Device Distribution
This SWOT Analysis of Siemens Healthineers, Inc. provides a strategic SWOT analysis of the company's businesses and operations. -experienced business units -barriers of market entry -reduced labour costs -existing distribution and sales networks -high profitability and revenue -high growth rate -brand portfolio -investments in research and development -competitive market -cost structure -growth rates and profitability -new products and services -venture capital -rising cost of raw materials -increasing costs -tax changes -government regulations -cash flow -financial capacity 10
Siemens Healthineers does not franchise or spread the company in regions that are in war time, thus you would not find Siemens Healthineers serving in Pakistan, Syria, etc. and Iran because of political embargo on Iran.
As the economic crisis is still running into many countries, Siemens Healthineers can be less demanded by customers into poor regions like Egypt, India, etc. Thus the company's main target markets nowadays are the Americas, Europe, and the Middle East.
Siemens Healthineers is perceived by customers as a stable, powerful company with good reputation.
The company is always up to date with new solutions, ideas, and devices to beat the competition with technology on the way of saving lives.
Differs from a country to another, depending on the economy, culture, and people. In some countries like Egypt, the environment is not always stable as the economy is not.
Siemens Healthineers is the kind of company that can hardly be put into judging court for copying rights or stealing ideas. Siemens Healthineers legal history is very clean, and the company always avoids troubles and courts. Siemens Healthineers primary goal is to establish a high end network of qualified employees who know exactly how to gain the biggest market share.
The Turkish government started Health Transformation Program in 2003 and vision 2023 are both mapping Medical Device Sector. Current government liberal policies offer the sector opportunities. The medical device products that we plan to launch have to be approved by the appropriate bodies according to the TURKISH MEDICINES AND MEDICAL DEVICES AGENCY (TMMDA) under control of Minister of Health. The conditions can differ depending on the type of a device. Mostly the CE mark is needed to be able to sell the device in Turkey. It is the task company to successfully complete the process of gaining the CE mark, without the CE mark, no medical devices can be sold. For the launch of any medical device, medical devices directives should be followed. All of service engineers should have achievement certificate on the training depending on directives of Ministry of Labour and Social Security.
The Turkish economy has shown good performance with its steady growth in 2002-2013. A sound macroeconomic strategy in combination with prudent fiscal policies and major structural reforms in effect since 2002 has integrated the Turkish economy into the globalized world, while transforming the country into one of the major recipients of FDI in its region. And then last two years, Statistics from the International Monetary Fund show that Turkish economic growth looks set to become worsening. Statistics show that long-term threats to the Turkish economy come less from the November 24, 2015 Russian warplane incident and recent terroristic bombing and attacks. 11
Medical devices are not being sold to the end users but to the doctors and the management of hospitals. Generally, the end users (patients) do not care about the medical devices as such that are used to diagnose and treatment. Very few patient are surfing on Web to see what kind of machines be over the world. They are focused on being healthy again, regardless of the brand of the medical device used. For this reason, the values and beliefs of the end users are not for the marketing strategy as relevant as the physicians’ beliefs. Therefore, it is more important to know the physicians and to be
in contact with the management of the hospital. This is the task of the sales representatives in Turkey. They have to know the physicians, their beliefs and values in order to impress them with the offering. Company should be perceived by customers as a stable, powerful company with good reputation.
Medical devices market is a very competitive market and contains only a few strong players. All medical devices producers are investing large amounts of money in research, development and innovations. In this market, the company who brings the innovative technology the first, usually wins or has a considerable competitive advantage. Macro environment Political, Legal
Opportunities Health Transformation Program Vision 2023 Liberal Policies
Threats Russian aircraft incident Terrorism
Economic/Demographic
Increase GDP The Medical device industry is only moderately impacted by the economic crisis Medical Device Market is a growing market
Exchange Rate fluctuations
Social and Cultural
End customers are not familiar or loyal to brands, good personal relationships with doctors and hospitals will help the gain of market share and sales
Dependency on personal relationships with doctors and hospitals can provide a risk when relationship deteriorates
Technological
To have strong reputation concerning High Tech devices and innovative products
Competitive market new Innovative Technologies by competitors can provide a risk and loss of market share/sales Heavy R&D investments are needed but can way on margins
12
GE Healthcare expertise in medical imaging and information technologies, medical diagnostics, patient monitoring systems, drug discovery, biopharmaceutical manufacturing technologies, performance improvement and performance solutions services help our customers to deliver better care to more people around the world at a lower cost. In addition, GE partner with healthcare leaders, striving to leverage the global policy change necessary to implement a successful shift to sustainable healthcare systems. VISION, for the future invites the world to join us on our journey as we continuously develop innovations focused on reducing costs, increasing access and improving quality around the world. Headquartered in Chicago, IL, GE Healthcare is a unit of General Electric Company (NYSE: GE). Worldwide, GE Healthcare employees are committed to serving healthcare professionals and their patients in more than 100 countries. .
Royal Philips is a diversified technology company, focused on improving people’s lives th rough
meaningful innovation. Royal Philips health care business makes up 42% of our global sales revenue. With a century of history and more than 450 innovative products and services, Royal Philips is ready to meet today’s challenges in healthcare by cr eating solutions that deliver better care to more peo ple at lower cost. Their more than 37,000 employees, working in 100 countries, are committed to helping you create meaningful moments of care, whether in the hospital room, the living room or the boardroom. See how we are working to create a healthier future together.
Customers are Hospitals and Clinics. Hospitals are categorized by University Hospital, Public Hospital and Private Hospitals. Public Hospitals provide medical care free of charge. So their medical device procurements set basis on lower prices. If you can offer lower and long-term payment you have advantage. University Hospitals are institutions of training and research. Technological differentiation is the key determination factor for sale. If your product and you offer different technology and applications that university hospital can research and can train student so you can get advantage. Then, surely, lower price and long term payment options are preferable. Private Hospitals and clinics are the customer who are oriented on their customers (patient). Generally, the important factors are price and performance of the device. If they can do daily activities without a factor gives delay or cancel that satisfies them. So technical support and service is important. Lower price and long term payment options are preferable, also.
13
Every market consists of groups (segments) of customers with different needs and wants. Normally no company tries to sell to everyone and that is why it has to find its targeted groups of customers and find as much information about them as possible. The global medical equipment market has been segmented on the basis of product type, technology, and geography. Most medical devices can be classified by finding the matching description of the device in Title 21 of the Code of Federal Regulations (CFR), Parts 862-892. FDA has classified and described over 1,700 distinct types of devices and organized them in the CFR into 16 medical specialty "panels" such as Cardiovascular devices or Ear, Nose, and Throat devices. These panels are found in Parts 862 through 892 in the CFR. For each of the devices classified by the FDA the CFR gives a general description including the intended use, the class to which the device belongs (i.e., Class I, II, or III), and information about marketing requirements. Your device should meet the definition in a classification regulation contained in 21 CFR 862-892. The five major categories of imaging equipment studied in this report include X-ray, ultrasound, computed tomography (CT), magnetic resonance imaging (MRI) and nuclear imaging equipment. The market for each of these equipment has been analyzed on the basis of product types and technology. Market revenue in terms of USD million for the period between 2013 and 2023 along with the compound annual growth rate (CAGR %) from 2015 to 2023 are provided for all the segments, considering 2014 as the base year. The market overview section of this report explores market dynamics such as drivers, restraints, and opportunities that have strong impact on the medical imaging equipment market currently and could influence the market in future as well. The market attractiveness analysis has been provided in the market overview section in order to explain the intensity of competition in the market in different geographies. Porter’s five forces analysis is also explained in this section to understand the medical
imaging equipment market considering different parameters that have an impact on the sustainability of the companies operating in the medical imaging equipment market. The competitive scenario between different market players is evaluated through market share analysis in the competitive landscape section of the report. All these factors would help the market players to take strategic decisions in order to strengthen their positions and expand their shares in the global market. Geographically, the medical imaging equipment market been categorized into five major regions namely North America, Europe, Asia Pacific, Latin America, Middle East and Africa. Market revenue in terms of USD million for the period between 2013 and 2023 along with the CAGR % from 2015 to 2023 are provided for all the regions, considering 2014 as the base year. Each geography market is further split to provide market revenue for select countries such as the U.S., Canada, U.K. Germany, China, Japan, Brazil, and GCC countries. The recommendations section included in the report would 14
assist existing market players in expanding their market share and new companies in establishing their presence in the global medical imaging equipment market. The global medical imaging equipment market is segmented into the following categories:
o
o
o
o
o
o
X-Ray Devices
Stationary
Portable
Ultrasound Systems
Cart/Trolley Based Ultrasound System
Compact/Portable Ultrasound System
Computed Tomography (CT) Scanners
Stationary
Mobile
Magnetic Resonance Imaging (MRI) Equipment
Closed
Open
Nuclear Imaging Equipment
SPECT Scanner
PET Scanner
X-Ray Devices
o
o
o
Analog X-ray Technology
Digital Radiography
Computed Radiography
Ultrasound Systems
2-D
3-D & 4-D
Doppler
High Intensity Frequency Ultrasound (HIFU)
Lithotripsy
Computed Tomography (CT) Scanners
Stationary
Mobile
Magnetic Resonance Imaging (MRI) Equipment
Low-Slice 15
o
Medium-Slice
High-Slice
Nuclear Imaging Equipment
SPECT Scanner
PET Scanner
North America o
U.S.
o
Canada
Europe o
UK
o
Germany
o
Rest of Europe
Asia Pacific o
China
o
Japan
o
Rest of Asia Pacific
Latin America o
Brazil
o
Rest of Latin America
Middle East and Africa (MEA) o
GCC Countries
o
Rest of MEA
Siemens Healthineers Medical Systems’ targeting is in the fields of radiotherapy, radiosurgery, X-ray tube technology, digital image detectors, cargo screening, and non-destructive testing depending on strenghtness of company portfolio and all around the world except countries have embargo or war threats.
Siemens Healthineers wants to make healthcare providers succeed in an ever-changing healthcare industry – by helping them deliver better outcomes at lower costs. This purpose drives our focus: to lead the transformation of healthcare together with the ones delivering it. In healthcare, change is rapid and ongoing, and we understand the challenges and pressures that come along with it. Check out our perspectives and learn more about consolidation, industrialization, and managing health
16
o
We put customers first. Our customers trust us to deliver solutions, products, service, and performance that enable them to do vital work for people. o
We are united by purpose to help save lives. We collaborate with one another and our customers to make patient care and imaging solutions more effective, affordable, and accessible everywhere. We serve within all parts of the world with equal care — we are a multi-domestic company. o
We turn great ideas into practical realities. We have always been inspired and energized by the challenge of finding new and better ways to do things. Innovation drives our success. o
We grow our business while acting with integrity. Each of us is responsible for meeting the highest standards of ethics, quality, and safety. We care for our customers, our colleagues, and our communities.
The Company's marketing tactics is based on mission and values. The strategy will be determined in the light of the marketing mix as follows.
Product portfolio is giving too much options for customer needs. Company product features and price in the context of evaluating products and competing products that create a positioning map was made as follows.
17
18
Existing Products portfolio is at appendices.
The largest potential of the company will be the new product PET/MR system therefore the future is evaluated in the strategy through market research will do the marketing plan within the scope of the results.
Company acts with products based on the principle of variable pricing. Implementing pricing policies differ according to the purchasing conditions. After a detailed study on the cost price according to the purchase and competition situation, determining the price depending on the product life cycle will be delivered to the customer. Under the difficult competition conditions, training which was developed by the R&D team, options such as support information systems into putting quotes free of charge, will aim to stand out from the competition with differentiation strategy. Marketing PET/MR at the beginning of the product life cycle, price will be set without applying competitive pricing policy.
19
Company products to be sold with very fast line setup and delivery operations will be used for product distribution channels is work that requires expertise. But the company's after-sales technical support for customers in hand because it is important for technical service delivery plan has been prepared and system failures occur in established service network that can intervene at least 3 hours. The new strategy will be the same in sales will be realized.
In this sector, which is experiencing intense competition and technology changes so fast promotion activities are important. The marketing of existing products and the company will carry out promotion activities for individual brands will represent new.
Industry magazines and periodicals for informational purposes related to the product innovations will be carried out each year advertising news.
The participation of all professionals in the sector and alternately held each year "molecular imaging" and "radiology and nuclear medicine" will be participating in the congress. Two congresses for the field of audience and participants vary; Congress made detailed plans before each congress, which will be featured on the characteristics of the products planned to be held during such promotions will be held within budget. Each year, there are cancer congresses in Europe and America. Key customers will be invited and display the new product(s) will be brought to this convention.
Facebook and LinkedIn page to be used actively and will be published informative videos and information cards regularly. In addition, customer birthdays of all members of the Facebook group to celebrate, the celebration will be held with graphics will be designed for special occasions and holidays.
Company website will be redesigned considering the future of the new product(s). Very detailed technical information about the product will not be given through the site via the contact form to reach the company sales staff will be provided. On the Web site, all announcements and disclosures will be carried out via other social media channels. Customers will be given in reference to the website and will be regularly updated. A web page will be published related with cancer and it will publish scientific articles on other sites under the name of a secret marketing management and announced by the superior side of the system and will continue to keep the channels active.
20
Company products under the strategy of increased demand by expanding the use of, a training center will be established for the implementation of software testing and training will be organized training programs at various times.
For the industry to enter a new, at least twice during two years in all the magazines accepted in the industry followed by the company to the forefront of professional remover especially advertising works will be carried out.
Detailed research about the congress will be held at a major industry conference that most exhibitors will be brought to the fore and organizations to do the necessary materials for the promotion of the distribution will be held.
Company will be carried out through social media accounts as well as to be informed about new products and existing users to search for new participants.
Company website will be constantly kept up to date on upcoming products and brands. At the same time we see under the domain name associated with PET/MR exam techniques, and detailed information about the product site will be created.
Siemens Healthineers offers a wide range of advanced molecular imaging systems that provide precise exam, personalized patient care, and clinical efficiencies. Siemens Healthineers treatment delivery systems are engineered to be easily customized, integrated and upgraded as your clinical needs grow –protecting your investment for the long run.
Powered by Siemens’ revolutionary FlowMotion™ technology, Biograph mCT Flow™1 is the world’s
first PET/CT system to eliminate the demand for stop-and-go imaging.
21
Siemens Biograph™ TruePoint™ PET/CT is a flexible, high -powered medical imaging platform. This
innovative system optimizes clinical throughput and increases sensitivity and resolution with LSObased detectors but is designed with budget in mind to make PET/CT a viable solution for your growing clinical practice.
BiographTM RT Pro edition is a comprehensive solution tailored for radiation treatment planning, providing clinicians the right image for the right plan. Biograph RT Pro edition offers reproducible patient positioning between the Biograph mCT family's TG-66 compliant patient handling system and the linear accelerator couchtop, full suite of motion management technologies and a comprehensive metal artifact solution, thus allowing clinicians to devise treatment strategies with confidence.
Get two steps ahead in Preventive Care with kidney-friendly scanning and low dose early detection. Get two steps ahead in Freezing Motion with "free-breathing" CT imaging and the industry's fastest, most versatile scan mode.
22
Confronted with increasingly complex clinical requirements and rising numbers of patients, medical institutions are expected to perform at the limits of capacity every day. The new SOMATOM Definition Edge helps you not only meet, but exceed these expectations by improving your institution’s process efficiency and patient outcome in all clinical capabilities – from contrast mediaefficient TAVI planning to precise therapy response management, from low dose therapy control to optimized emergency care workflow.
Healthcare providers worldwide are under increasing pressure to manage two contradictory forces: delivering highest-quality care with ever decreasing financial means. The number of MRI scans continues to rise, as MRI continues to prove its diagnostic value and expands growing clinical fields. At the same time, global reimbursements continue to fall. MAGNETOM Aera is 1.5T MRI designed to turn these challenges into opportunities.
Healthcare providers worldwide are under increasing pressure to manage two contradictory forces: delivering highest-quality care with ever decreasing financial means. The number of MRI scans continues to rise, as MRI continues to prove its diagnostic value and expands growing clinical fields1. At the same time, global reimbursements continue to fall. MAGNETOM Skyra is 3T MRI designed to turn these challenges into opportunities.
23
24
