A medtech optimizes pricing across 150+ SKUs to revamp its legacy division’s pricing strategy while onboarding new assets into the portfolio.
L.E.K. worked with this client to establish an updated portfolio pricing strategy in order to build a comprehensive, integrated, near- and long-term pricing strategy to maximize adoption of its products. The strategy was designed to enhance value capture and contracting consistency across the revamped portfolio while also accounting for customer expectations, based on both the legacy of the medtech’s brand and its new asset pricing strategies.
Approach
We performed a range of analytical assessments to support this client’s goal and:
- Assessed current market perceptions of the relevant legacy and new asset portfolio(s) in terms of technical, clinical and economic value
- Leveraged internal sales data, market data and customer interviews to understand current usage and revenue by product, size, call point (specialty), procedure and site of care along with key barriers to adoption
- Articulated optimal deployment and positioning of (subsets of) the combined portfolio, and associated pricing
- Designed and fielded multiple quantitative surveys leveraging a combination of Gabor-Granger and conjoint pricing analyses, along with quantifying customer purchasing criteria, to determine optimal pricing and positioning of portfolio
- Estimated incremental value that could be created and captured by the client’s portfolio with revamped pricing strategy, including product fencing, discounting and rational product bundle offerings
Results
L.E.K.’s work helped the client unify an optimal pricing strategy for implementation across the newly combined organization, from new recommended price points to thematic updates to protocols/processes and new product offerings.
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