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Roche Diagnostics – New Zealand |
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| Segment | Health Care |
| Scenario |
Diabetes Division, Boehringer Mannheim, 1996 Production of devices and test strips for monitoring the glucose level of patients with diabetes. The entry of new competitors, providing a new measurement system, caused Roche’s market share to fall from 80% to 50%. |
| Challenge> | To stop market share from falling and to raise it again. To develop a new monitoring system to challenge the competition. To start up a strategy of getting closer to customers. |
| Strategy | To segment the market into three categories: a) Recently-diagnosed patients => focus on the launch of new products => focus on the "affinity club" for diabetics. b) Doctors => product launch. c) Older users => focus on the product launch, focus on the "affinity club" for diabetics => relationship program. |
| Competitive Advantage | a) Recently-diagnosed patients => differentiation through a new product => "affinity club" b) Doctors => product launch. c) Older users => differentiation through a new product, "affinity club" and improved services. |
| Result | Market share recovered to 70% New product very well received by doctors. Recognition of added value brought about by the new product and relationship program, both by recently-diagnosed patients, and older users. |