Go to Market Strategy - dabf.dk Consulting Presentation.pdf · Go to Market Strategy • We must: – have the “problem solving” product or service.

Go to Market StrategyThi t B C id dThings to Be Considered

BioPeoplePresented by: Patrick Kullmann

12012‐CG3 Consulting‐All Rights Reserved

Greetings from Minneapolisg p


Our GoalOur Goal

Alleviate Pain Restore Health Extend LifeAlleviate Pain, Restore Health, Extend Life

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Develop a Self Sustaining Medical Technology Industry $$


Patrick Kullmann MBAPatrick Kullmann, MBA

• Founder and Lead Strategist at CG3 Consulting• Author of the book: "The Inventor's Guide for Medical Technology".

30 t f th di l t h l fi ld • 30 year veteran of the medical technology field. • He has successfully exited two start medical technology companies for a combined

value of $220M S i di t t M dt i k l d t B t S i tifi J h & J h • Senior director at Medtronic, a key leader at Boston Scientific, Johnson & Johnson, EV3 and Baxter International.

• Founded CG3 Consulting in 2008 with offices in Minneapolis, Boston and San Diego. C t ib t b i l i t d h f• Contributor as a business plan reviewer, mentor and coach for:– LifeScience Alley– BioBusiness Alliance

Mi t A l N t k– Minnesota Angel Network– Minnesota Technology Cup


The Inventor’s Guide for Medical TechnologyThe Inventor s Guide for Medical Technology

• The Inventor’s Guide for Medical Technology

M t b hi d th b k– My story behind the book– The need:

• Risk capitalRisk capital• Regulatory restraint• Skill and experience

• Free for you today!• Free for you today!


Go to Market StrategyGo to Market Strategy

• We must:– have the “problem solving” product or service.– understand the future customer adoption of your

product.– know the regulatory, reimbursement and clinical

landscape.– have the right launch and distribution strategy.– successfully execute the business!y– drive customer product adoption for growth and

sustainment!62012‐CG3 Consulting‐All Rights Reserved

Evaluation of the InventionEvaluation of the InventionWh t t d d i ti l ?• What unmet need does my invention solve?

• Is it an idea, product or company?• What is my value proposition? Our product is:

b tt th titi d t– better than competitive products– as good as competitive products, but less

expensive– as good as competitive products and the

same price– better and less expensive– differentiated by:

better servicebetter distribution

• What will my business proposition look like?– how do we make a profit?

• What does the regulatory and reimbursement pathway look like in the U S ?pathway look like in the U.S.?

• What is my IP situation-USA, EU etc.72012‐CG3 Consulting‐All Rights Reserved

Success in the U S MarketplaceSuccess in the U.S. MarketplaceTh h d t di f th • Thorough understanding of the

• opportunity• dynamics and drivers in the market

k i th t k h ld• knowing the stakeholders• regulations, requirements, distribution/

sales channels.• Getting the right people on board • Getting the right people on board

• Contractors (“virtual company”)• Employees

• Optimal strategy for entering U.S. market

• Integrated planning and execution g gacross the company functional areas

• Timely execution of the many steps to commercialization


Validating the BusinessValidating the Business• Most commonly neglected step in the Most commonly neglected step in the

start up• Why is it important?

– increase probability for success– manages risk

• We must determine market size– total market

potential market– potential market– available market

• What to validate?– customer needcustomer need– market size– regulatory, reimbursement and clinical areas– customer product adoption-what will it take?

t h l f ibilit– technology feasibility– competitive landscape– product, package, price, promotion and

positioningp g


Customer Product AdoptionCustomer Product Adoption• Adopters Adopters

– Early – Main stream (drives valuation)– Late

• Adoption analysis:t f d ti– rate of adoption

– the drivers for success– obstacles and opportunities?obstacles and opportunities?– be realistic, will investor believe?

• Will main stream customers buy it at a price where a profit can be realized?

• This is a leading source of failure!


Mainstream Buyers Drive ValuationMainstream Buyers Drive Valuation


Tools for Assessing the M k t/P d t Ad tiMarket/Product Adoption

• Primary research data via publications, professional guidelines market reportsguidelines, market reports.

• Future customer surveysOn line tools– On line tools

– Phone driven• Focus groups **Focus groups

– Main stream adopters panel format, 5-6 panelists

– Well scripted– Tightly managed/moderated


The Business PlanThe Business Plan• Executive Summary• Market Opportunity• The Company's Technology• Clinical/Regulatory• Reimbursement• Intellectual Property• Manufacturing/R&D• Market Penetration Strategygy• Financials• Summaryy


Importance of FinancialsImportance of Financials• Plan drives activities, activities

drive assumptions and ti d i th bassumptions drive the numbers

• Financial schedulesP fit d l– Profit and loss

– Water fall cash flow statementstatement

• How much money do I need and when do I need and when do I need it?

– Balance sheetBalance sheet


Selling Into U S HospitalsSelling Into U.S. Hospitals• Economic and clinical considerations• Hospital organizational buying structure

– Physician power and influence– New technology committees– Value validation committees– Executive review committees

• Hospital purchasing groupsHospital purchasing groups– GPO

• Group Purchasing OrganizationsOrganizations

– Amerinet– Health Trust

IDNs– IDNs• Integrated Delivery Networks

– MayoS f d H lth– Sanford Health

– Kaiser Permanente152012‐CG3 Consulting‐All Rights Reserved

Contractor TeamContractor TeamR&DR&D

Regulatory & Quality

Regulatory & Quality

Legal & Human Resources

Legal & Human Resources yy

Inventor &

General

Inventor &

General

Marketing, Sales &

Distribution

Marketing, Sales &

DistributionFund‐RaisingFund‐Raising

GeneralConsultant General

Consultant

ManufacturingManufacturingFinance & A iFinance & A i ManufacturingManufacturing

Cli i lCli i lReimbursement

&Reimbursement

&

AccountingAccounting

ClinicalClinical&Health Care Economics

&Health Care Economics

16

Free Planning Tools LibraryFree Planning Tools Library

S bj t t l• Subject tools:– Master tool list– Regulatory– Reimbursement– Research and Development– Clinical– Manufacturing– Financial and Raise Preparation Structuring– Intellectual Property– Healthcare Economics– Corporate Governance and SEC– Human Power Needs/Contractors– Marketing

Contact me at:pkullmann@CG3 Consutling compkullmann@CG3 Consutling.com


My Contact InformationMy Contact Information

Patrick KullmannCG3 Consulting LLCCG3 Consulting LLC3800 American Blvd West, Ste 1500Minneapolis, MN 55431Global Call Center: 866-CG3-8111Global Call Center: [email protected]

*Reach out to me on LinkedIn

2012‐CG3 Consulting‐All Rights Reserved 18

Approach to Getting StartedApproach to Getting StartedD t i th d h t i th bl ?• Determine the need, what is the problem?

• Will my invention solve this problem, clinically and y p , yeconomically?

• Make preliminary and realistic market size Make preliminary and realistic market size opportunity calculationsVisit your patent attorney’s office and start the • Visit your patent attorney s office and start the patent process

• Create the detailed financial schedules to determine the financial performance picture of your venture


Approach to Getting StartedApproach to Getting StartedE l t th fi i l h d l d th ti t f • Evaluate the financial schedules and the estimate of funding raise needed to commercialize.

• Conduct market and customer adoption research• Conduct market and customer adoption research.• Draft a business plan, create investor brief and slide

deckdeck.• Complete valuation work.

Hire an e perienced and accomplished management • Hire an experienced and accomplished management team, board of directors and advisory board.

• Raise capital $$$$• Raise capital $$$$• Operationalize and launch the business!


Early Due Diligence Assessment Early Due Diligence Assessment P t t• Patents

• Regulatoryg y• Reimbursement• Estimate of manufacturing costs• Estimate of manufacturing costs• Market and customer adoption• Financials• Research and developmentResearch and development• Go to Market Strategy


Minnesota Lake SuperiorMinnesota-Lake Superior


The Marketing and Launch PlanThe Marketing and Launch Plan• Executive Summary • Executive Summary • Market Opportunity • The Company

The Compan 's Strategic Marketing • The Company's – Strategic Marketing Plan Outline

• Overview of Market/Audience Segmentation Segmentation

• Product Positioning/Value Proposition

• Projected Market Adoption • Projected Market Adoption Phases/Timeline

• Commercialization Scenario(s) • Tactical Marketing and Sales Plan • Tactical Marketing and Sales Plan • Sales potential for the Company • Strategic Marketing Budget • Summary • Summary ••••


Go to Market Strategy - dabf.dk Consulting Presentation.pdf · Go to Market Strategy • We must: – have the “problem solving” product or service.

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