This essay is concerned with the global market for blood glucose monitoring systems and puts a special focus on the Accu-Check Mobile system by Roche.
In a first step, the global market is briefly discussed, before secondly, Roche's position is examined in more detail. Additionally, relevant stakeholders for the Accu-Chek Mobile system in the B2B market are considered, as well as the competitive advantages and disadvantages of the system for patients with diabetes. Lastly, possible changes to the marketing-mix to increase the success of the product are discussed.
Table of Contents
Description of the global market for blood glucose monitoring systems with respect to market structure, major players (competitors) active in this market as well as current and expected future developments
Accu-Chek’s (Roche, Diabetes Care) current position in this market
Relevant stakeholders for the Accu-Chek Mobile in the B2B market
Competitive advantage of the Accu-Chek Mobile and value proposition for Patients with Diabetes (PwDs)
Brand architecture pursued with the Accu-Chek Mobile by Roche
Changes to the Marketing-Mix in order to make the product a success, especially with re- gard to the communication management
List of references
Description of the global market for blood glucose monitoring systems with respect to market structure, major players (competitors) active in this market as well as current and expected future developments
To begin with, Diabetes is considered as one of the most serious chronic conditions and thus has a significant impact on economy as well as society. In order to avoid the occurrence of a too low or too high glucose level that can result in serious implications or even death, it is crucial for diabetic patients to monitor their blood glucose levels on a regular basis. Hence, the global de- mand for diagnostic devices is being driven by mainly two factors: rising prevalence of diabetes and growing awareness of the importance of blood sugar monitoring among patients. For this purpose, two different device types have been developed. Whereas self-monitoring of blood glu- cose (SMBG) devices interfere with regular testing among diabetic patients due to inconvenient and painful finger pricking, continuous blood glucose monitoring (CGM) devices overcome these challenges, as they are more effective than SMBG in diabetes management by reason of their faster results and minimally invasive nature. That is why it “is projected that a significantly large number of patients will shift from SMBG to CGM in the forecast period” (Fortune Business In- sights, 2019), whereby the forecast period represents the time between 2019 and 2026 in which the market share of CGM will continue to rise. Regarding future developments, the diabetes mon- itoring systems market is expected to be positively affected by current technological develop- ments in blood glucose monitoring devices, since recent advances have already made it easier, more user-friendly, more convenient and less invasive to monitor blood sugar levels. Apart from technological developments, another key driver to the blood glucose monitoring systems industry is the availability of reimbursement through public and private health insurance in developed countries. However, the market is restrained by the significant proportion of undiagnosed diabetes population in under-developed and developing countries (Fortune Business Insights, 2019).
Concerning key players in the blood glucose monitoring systems market, companies such as F. Hoffmann-La Roche Ltd, Abbot, LifeScan Inc. and Ascensia Diabetes Care Holdings AG dom- inate the market for SMBG systems whereas Dexcom Inc., Medtronic and again Abbott are the major players in the CGM device market. In addition, the competitive market environment in this industry is expected to change in the near future on account of novel non-invasive and wearable products associated with various benefits for the customers (Fortune Business Insights, 2019).
Accu-Chek’s (Roche, Diabetes Care) current position in this market
Because of their high performance and quality as well as their innovative character, Accu-Chek devices positioned their manufacturer Roche as a key player in the blood glucose monitoring systems market. The launch of the Accu-Chek Mobile as a next-generation strip-free system that simplifies SMBG and therefore is preferred by high-frequency testers strengthened Accu-Chek’smarket position. Accordingly, Roche with its Accu-Chek Mobile is a global leader, since no indi- vidual test strips or lancets need to be disposed.
Relevant stakeholders for the Accu-Chek Mobile in the B2B market
In contrast to the B2C market, the B2B market includes a larger number of stakeholders who are involved in the purchase decision-making process, resulting in multiple buying influences. In gen- eral, this group of individuals is designated as a buying center. Each member of the buying center takes on a certain role, namely decider, user, influencer, gatekeeper, buyer or initiator, whereby several people can have the same role, but one person can also have multiple roles. In this con- text, relevant stakeholders for the Accu-Chek Mobile in the B2B market are especially hospitals, which can be classified as public institutions with reference to type of organizational customer, but also pharmacies and medical centers with their health care professionals such as diabetes nurses, physicians and pharmacists. Another stakeholder that definitely needs to be considered are sick funds, as they decide upon the reimbursement of the device.
Competitive advantage of the Accu-Chek Mobile and value proposition for Patients with Diabetes (PwDs)
Although the blood glucose monitoring systems market is very commoditized and highly compet- itive with a low chance to differentiate yourself from competitor’s products, the Accu-Chek Mobile is very unique compared to other existing blood glucose monitoring systems available in the mar- ket, as the meter allows PwDs to test their blood sugar strip-free and 50 times in a row. According to this, benefits of this procedure are increased ease of use as well as reduction of waste. In this way, Roche aimed at reinventing the way PwDs test their blood sugar by providing a product with superior features. Owing to its unique ease-of-use experience, which has been empirically proven, the device creates high user satisfaction, i.e. expectations are met or exceeded (Roche, 2019). All factors mentioned previously are beneficial for PwDs and thus bring value to them. Thanks to the Accu-Chek Mobile, they are able to control their blood sugar flexibly and easily at any time, no matter where they are and what they are doing, because with the Accu-Chek Mobile they have an all-in-one blood glucose monitoring system. Consequently, their everyday life is not restricted at all, which is particularly important for high-frequency testers. In addition, the wide range of varicolored and differently designed stickers that are available to put on your Accu-Chek Mobile enables a personalized product that brings joy to its customers when using it. For this purpose, Roche is advertising bringing more colors in one’s daily life (Roche, 2019).
Brand architecture pursued with the Accu-Chek Mobile by Roche
For starters, Roche defines its brand architecture as “the verbal and visual expression of how our products and services are branded, and how they relate to each other or are differentiated withinthe Roche Group” (F. Hoffmann-La Roche Ltd, 2020). The goal of their brand architecture is to maximize the value of their corporation and their offerings in a competitive market landscape, since a higher variation of their interactions with stakeholders and customers results in an in- creased importance of their consistent brand architecture. Moreover, Roche follows a hybrid brand architecture model that is a mixture of two brand architectures, namely the branded house and house of brands approach. While the branded house approach focuses on establishing the reputation and equity of the company brand at all levels of stakeholder interaction, the house of brands approach concentrates on creating distinct, strong product brands in which they invest separately. Although Roche Diagnostics approaches a branded house underlining a powerful Roche-led value proposition, Pharmaceuticals is moving towards a house of brands that empha- sizes strong individual product value propositions, whereby the company value proposition acts as a supporting feature. Since the Accu-Chek Mobile pertains to Diabetes Care and thus to Roche Diagnostics, Roche pursues the branded house architecture with this device. At the product level, Roche sustains product and platform brands with their own particular identities. Nevertheless, marketing materials will also comprise specific Roche design elements such as the Roche strip or the Roche grid. Apart from that, the knowledge of their brand architecture fosters not only their brand management, but also marketers and communicators in determining how to efficiently al- locate resources. Supervised by brand and reputation management, the brand architecture is owned by the Roche Corporate Executive, which is the only authority that can make modifications. Thanks to this concept, customers, stakeholders and other employees are able to orient them- selves quickly without confusion. In addition, positive experiences associated with Roche help the company to leverage their existing reputation and to create trust and engagement in the Roche brand (F. Hoffmann-La Roche Ltd, 2020).
Changes to the Marketing-Mix in order to make the product a success, especially with re- gard to the communication management
As previously stated, the Accu-Chek Mobile has a great potential due to the fact that it creates a high degree of satisfaction among users, which typically leads to customer loyalty. But how can Roche benefit from this potential in order to make the product a success? To achieve this, B2B marketing must come up with adequate marketing strategies, appropriate marketing mix and a focus on sales and customer relationship management (CRM), which is very important in the B2B market because companies need to work very closely with their clients in order to provide top quality products and solutions in today’s competitive B2B environment. On this account, the uniqueness of the Accu-Chek Mobile needs to be emphasized. I think that Roche has already been doing a great job in offering a solution to customers, as by means of the Accu-Chek Mobile Wireless Adapter the meter can be easily connected with the mySugr App that provides several benefits. Beyond that, there is also the possibility to upgrade to mySugr Pro at no charge (Roche, 2019). As a consequence, this value-added service enhances differentiation as well as customer loyalty. If I was a product manager of the Accu-Chek Mobile, I would implement several changes. First of all, I would not constantly chance sales representatives in order to establish long-lasting relationships, mutual trust and customer knowledge, since they develop a supplier-customer re- lationship. Furthermore, another key concept is lead management which describes the actual transaction of turning potential customers into ‘real’ customers. This concept is essential for the B2B market in particular by reason of complex products, small product ranges and only few po- tential buyers. Beyond that, especially in saturated markets, it is crucial to identify the few ‘correct’ customers and to win them over so that the aspiration of successful customer acquisition, for which segmentation is the basis, can be fulfilled. Hence, the potential to create a permanent com- petitive advantage arises by development and expansion of a profitable customer base as well as diversification of the customer portfolio. As a result, growth objectives that are essential for investments in the future can be achieved. For this purpose, the principle of lead generation needs to be applied. Defined as the process of acquiring and evaluating potential customers, thanks to the digital transformation accompanied by high data availability and improved analysis methods, new lead sources such as data based and automated lead generation offer new potential. Con- sidering that, a distinction is made between two different methods. For one thing, one could use external company databases. Otherwise, there is the possibility to analyze the behavior of your own website’s visitors. After conducting this analysis, the right contact persons and decision-mak- ers need to be identified and contacted personally, since different informational needs of different members of the buying center need to be addressed. That is why I would make an effort in order to convince hospitals, pharmacies, medical centers and sick funds of the medical value of the Accu-Chek Mobile by providing relevant technical information as well as demonstrating that the device is easy to handle and highly demanded by end customers. Besides, I would provide video tutorials that explain step by step how to use the blood sugar meter. Another possibility would be to implement training sessions so that PwDs learn how to use the Accu-Chek Mobile correctly. Once they have had a little bit of practice, they will acknowledge its clear advantages compared to other devices. Consequently, sick funds should prefer the Accu-Chek Mobile over rival products such as the Abbott Libre and thus reimburse Roche’s device instead. Analogous to the buying center, Roche could establish a selling center in order to correspond well to the demands of a buying center. In this way, communication and information flow between the contracting partners can be improved and maximum customer satisfaction can be achieved. Finally, I would select key accounts who are the company’s most important customers. That is why you give them special treatment and want to develop them by practicing personal selling and in terms of pricing, by negotiating with them as well as giving them discounts. This makes clear that key account man- agement, proper lead generation and value-added services are indispensable in order to make the product a success.
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- Quote paper
- Laura Hins (Author), 2020, Business-to Business-Marketing. How to Reinvent the Accu-Chek Mobile by Roche?, Munich, GRIN Verlag, https://www.grin.com/document/987379
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