Pricing and Value Proposition Assessment for Ultrasound Machines In India - EMeRG

Pricing and Value Proposition Assessment for Ultrasound Machines In India

“45% of the non-owners of ultrasound interviewed were Obs/Gyn specialists, practicing for >16 years. Clearly, adoption of ultrasound in India would take more than just lowering price points…”

Overview: Ultrasound Market in India

Valued at $170Mn in 2016, the market for diagnostic ultrasound in India is characterized by immense fragmentation.

While on the one hand, adoption rates of 4D ultrasound and other advanced clinical applications is on the rise, low-cost manufacturers have been gaining market shares especially with standalone obs/gyn clinics and nursing homes.

Uptake of low-cost Color Doppler among Obs/Gyn is being driven by:

  • Need for quick diagnostic tools during emergency especially in late hours
  • Ability to diagnose complex anomalies
  • Improve overall reputation for the practice

 

Our Client: A global innovator of diagnostic imaging equipment.

Challenge Statement: Our client was looking to understand the optimal pricing for the launch of its Ultrasound machine in India. The client also wanted to understand the impact of the product launch on the rest of its ultrasound portfolio in similar price segments. In addition, the key value proposition statements for messaging and communication needed validation and refinement.

Research Design: The research design was based on the usage patterns of ultrasound among Obs/Gyn specialists in India. The potential customer segments were based on the current owners of black and white units, non-owners of ultrasound as well as non-users of ultrasound. With each segment representing specific needs and motivations, the research sampling was created to resonate with a market representative sample size of 60 obs/gyn respondents each. For pricing research, choice based conjoint was chosen to ensure granular understanding of customer’s key trade-off points. Value proposition statements were customized for individual customer segments before quantitative validation.

Research Methodology: Post creation of customized questionnaires for the individual customer segments, primary research was conducted across >11 cities in India including metropolitan cities, tier II/III towns as well.  Conjoint cards were created to simulate potential combinations of attributes and levels within the commercially available ultrasound brands. Gabor Granger was also designed with pre-set price points to understand the % shift in preference shares upon change in price points. With the Indian market demonstrating price sensitivity for every incremental INR50,000 cost to the machine, price-points for testing were chosen accordingly. The research methodology also ensured inclusion of value-added features such as training and other financing options.

Research Outcome: EMeRG’s research revealed distinct need-gaps and value drivers across current owners and non-owners of ultrasound. The dependence on sonographers was significantly high across all obs/gyn. The need to balance overall workflow at private clinics between consultation and ultrasound scan was observed to be one of the pressing concerns. While the demand for specific obs/gyn training was observed to be high, the overall propensity to pay for hands-on training was evaluated for distinctive scan-types. The findings helped internalize a detailed pricing strategy for short-term and mid-term future while ascertaining value proposition  statements for messaging and communication.

Need local insights for the Indian medical devices market?

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