PROPOSE STRATEGIC MARKETING INITIATIVES TO ACCELERATE MARKET SHARE TF MEDTECH COMPANY FOR TRAUMA IMPLANT DEVICE IN INDONESIA (CASE STUDY AT MEDTECH COMPANY)

• Main Author: Tri Nugroho, Aprianto
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85985
• Institution: Institut Teknologi Bandung

Trauma is a critical global health issue, causing approximately 1 million emergency department visits and over 200,000 treatments annually. It's a leading cause of death worldwide, with 20-50 million serious injuries, often from traffic accidents, which are a significant global and Indonesian problem. According to WHO, road traffic injuries are the top cause of death among young adults and the 12th overall. In Indonesia, traffic accidents are the fifth leading cause of death, with 116,000 incidents in 2023 alone. Despite the COVID-19 pandemic, trauma care remained essential, with trauma device market cases in Indonesia rising from 46,000 in 2020 to 53,500 in 2021, a 16.4% growth rate. MEDTECH's trauma portfolio grew by 34% in 2023 which is above market growth rate, however the revenue is very small compared with total market size. This research aims to analyze MEDTECH's challenges and develop integrated marketing strategies to boost sales and market presence. The research design consists of three phases. Phase I focuses on identifying and understanding MEDTECH Company's core business problem. Phase II establishes a theoretical foundation by reviewing relevant literature and theories, using external analysis tools like PESTLE and Porter's Five Forces, and internal analysis with STP and the Marketing Mix (4P’s). Phase III involves comprehensive data collection from secondary sources and semi-structured interviews as primary sources, leading to a SWOT analysis to formulate strategic recommendations. The PESTLE analysis highlights both opportunities and threats in Indonesia's trauma implant market, driven by strong economic growth, a favorable demographic profile, technological advancements, and substantial government healthcare investment. However, political challenges like local content regulations and supply chain issues pose significant barriers, especially for multinational companies. The legal landscape also presents both challenges and opportunities. The Porter analysis indicates that while the market faces challenges from intense competition and the need for continuous innovation, low entry barriers and substitutes present growth opportunities. Success depends on innovation, supplier relationships, and connections with decision-makers like physicians. The STP analysis shows MEDTECH's focus on Java and Sumatra, with Tier 1 hospitals being prime targets for advanced Variable Angle (VA) implants and Tier 2 hospitals for cost-effective Mono Angle (MA) implants. ii The Marketing Mix analysis reveals that MEDTECH needs to update its outdated MA implants, review its pricing strategy, expand its distribution network, and enhance promotional activities, especially in educational programs for Healthcare Professionals and teaching hospitals, to strengthen its market position. To boost market share, MEDTECH can implement two primary marketing strategies: Short-term Strategy: MEDTECH's short-term strategy focuses on the product development of the VA implant and market penetration of the MA implant. The VA implant will be launched in major cities, specifically targeting Tier I hospitals and teaching facilities, with a premium pricing strategy to attract top medical professionals. The promotional plan includes partnerships with hospitals, engagement with Key Opinion Leaders (KOLs), workshops, and comprehensive sales training. This approach aims to establish the VA implant as a leading option in advanced trauma care. Simultaneously, the MA implant will be positioned at competitive prices, particularly in Tier 2 hospitals, to increase usage among existing customers. The strategy includes building brand loyalty through clinical support, targeted sales, and marketing campaigns emphasizing the reliability and costeffectiveness of the MA implant. Long-term Strategy: MEDTECH's long-term strategy, termed the "Go Local Strategy," focuses on enhancing market presence and compliance with Indonesian TKDN regulations by establishing local manufacturing facilities or forming joint ventures. This strategy involves significant infrastructure investments, securing regulatory approvals, and forging partnerships with local entities for knowledge transfer and operational efficiency. The plan also includes customizing products to meet local needs and optimizing supply chains to ensure compliance and sustainability. This comprehensive approach not only aligns with regulatory requirements but also strengthens MEDTECH's competitive positioning and longterm sustainability in the Indonesian market.