Market Assessment, Valuation & Pricing Dental Device

Posted on: 17th June 2020

1. The Client & Business Challenge
Our client is a leading medical equipment company and was investigating the market opportunity for an innovative dental product, the company was not in the dental market, but had an innovative technology solution which they believed could be leveraged into this market. Within the company the European division was enthusiastic about the opportunity, the North American parent, needed convincing to invest.
Given the challenges of launching a product into the dental market, which is a key segment for IDR Medical, the client approached us to assess the opportunity of the desired indication of their product within the European market.
This multi-country study was structured across two distinct phases of research involving both qualitative and quantitative interviews. The key objectives of the project were:
• Identify the current use profile of existing products, the rational for using them and current trends in the market
• Identify unmet needs in the market and the purchase criteria for these devices
• Determine price points of existing products throughout the supply chain
• Measure the perceived value of the new product and capture data on price versus uptake to inform if the client should invest further and prepare a business case

2. Our Approach
In order to gather qualitative insights, a total of 30 telephone depth interviews were conducted as part of the first phase of research with dentists. This was done to better understand the current use profile of existing products, to identify key unmet needs, to explore the perceived value of the new product and its innovations and to identify which patient groups would present the best opportunity.
The qualitative phase was used to inform the development of the online quantitative survey. This second phase of research consisted of an online survey with N=150 respondents, made up of both dentists and patients, over 7 key European markets. Through the survey we explored how products used by both respondent groups differed across markets and what the key unmet needs with existing solutions were. We then assessed whether the different features of the innovative device resonated and to what extent they addressed these needs. To determine price and uptake we employed two different techniques – we first determined how price points differed across countries and what reimbursement landscapes looked like, we then employed the Gabor Granger method in order to asses price versus uptake at different price points.

3. The Results and Impact
The research allowed the client to understand the perceived value of their new product and determine the likelihood of adoption at different prices. We also identified some key steps the company had to take in order to increase its chances of success during launch – these were centred around how to position and price the product, what value propositions had to be developed in order to ensure innovative features resonated with potential users, which market segments to target and what other factors had to be considered as product development progressed. The results led the client to prepare a business case which was later presented to top management – the final decision made was to pursue the European launch of this new product.