Synthes Executive Summary

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In doing the above, you continue to maintain and possibly improve your existing 50% market share. A survey given to several orthopedic surgeons that currently use your metallic implants has indicated that 66% would be happy if they could purchase the bioresorbables they need from you. But with that, they indicated that they would be more comfortable with bioresorbables after extensive research and development and major improvements to the flawed second generation polymers.

Effects of Marketing Mix

Product: Synthes has the reputation of producing the “gold standard” of metallic implants. My recommendation for you will allow you to maintain that reputation while providing a desirable alternative. The bioresorbables directly align with modern technology and the growing need for more innovative implantation devices especially for use in children.

Price: Without the addition of bioresorbable implants, you’ve sold over $240 million total in trauma implants. While metallic implants are less expensive, there is often a need to remove them later resulting in an influx in the cost to the end customer. While bioresorbables are more expensive, if you get the 3rd generation “right”, the cost may be less for both the patient and insurance companies leaving everyone happier. Johnson & Johnson currently holds 90% of the bioresorbable market share and if your company were to offer competitive pricing to the customer, Johnson & Johnson will no longer have the monopoly and a hefty portion of the $26 million revenue will be owned by your company.

Place: Synthes has already proven its place in the market. Your company has the largest market share of all implantation devices and that is in part to your tremendous sales force. My recommendation will continue to allow you to build its sales force and relationships with hospitals, clinics and ortho surgeons. Based on the existing reputation you have with the orthopedic community, if perfection of the 3rd generation bioresorbables is accomplished, there should be no reason why infiltration of this new market would fail.

Promotion: Your company doesn’t need to promote the bioresorbables much as it currently has the attention of the orthopedic community. If your sales reps remain available to their end customers (as they are now), it should be relatively effortless for you to promote your bioresorbable products to their existing customers. Overtime, word of mouth, proof of concept and loyalty will undoubtedly push your company into the place of industry leader in the implantation market, with both metallic and bioresorbable products.