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Joana Tou, Philips Healthcare, together with Jemma Lampkin and Jeroen Hardon, SKIM, co-presented at the 2014 PBIRG annual general meeting. In their session, they shared how Menu-based Conjoint (MBC) analysis was utilized to develop the global pricing strategy for a new portable device from Philips.
Using Menu-based Conjoint to Price and Position a New Medical Device
Presented by:
Joana Tou, Market Intelligence Analyst, Philips Healthcare
Jemma Lampkin, Senior Executive Consultant, SKIM
Jeroen Hardon, Senior Executive Consultant, SKIM
In today’s healthcare world, competition is fierce and the pressure to innovate continues to increase. This is especially true for multinational companies like Philips Healthcare, a leading supplier of diagnostic imaging equipment. As a frontrunner in the global medical device industry, Philips Healthcare has to develop products with special value to its key customers: hospitals and clinics around the world. Maintaining a leading position in the industry requires targeted pricing and positioning strategies; in order to command reasonable prices, they must also campaign to prove the benefit of their products and the associated features.
In the past, companies like Philips Healthcare typically evaluated the pricing and positioning of developed products in terms of the overall product picture. Market research studies would examine customers’ willingness to pay for complete solutions and configurations. However, with products that offer the ability to add solutions or features, it has become increasingly important to determine independently which features and benefits drive the value of the product and to quantify the willingness to pay for specific features. Understanding price sensitivity at the feature level, rather than the overall product level, as well as identifying any price barriers in the market, becomes critical in this situation.
This co-presentation shared how menu-based conjoint (MBC) analysis was utilized to develop the global pricing strategy for a new portable device from Philips. The presentation addressed the following topics:
- Background on Philips Healthcare’s new device and the business question
- How MBC works, what one can expect out of it, and how it differs from other conjoint techniques
- How Philips implemented the results of the study to plan for launching the device globally
- Additional tips – the benefits and drawbacks of using such an approach
- Additional applications for MBC – medical devices and beyond
