Medical Plastic Data Service Magazine



Our 31st Year of Publication
Page  1 of 1


Global Market - Medical Devices

Marketing Strategies By The Indian Medical Devices Exporters : Continuation

Mr. Amit Dave,
M. Pharm, MBA,
Former CEO - Brazil Operations/ Vice President Export – Zydus Cadila/Claris Lifesciences

As mentioned in the last article in this series, we found a very interesting and relevant Ph D thesis written by Mr. Abhishek Agrawal from GLS University, Ahmedabad (under the guidance of Dr Hitesh Ruparel). This doctoral thesis has analysed some highly pertinent issues for Medical Devices industry from the Export perspective and this will provide very useful decision tool for our readers. Mr. Agrawal has collected data from 163 medical devices companies of India which is a substantial number considering total Medical Devices companies’ universe being of around 1000 in India. Again, out of these close to 1000 players, companies involved in Export activity will be further limited, reducing the universe size and so, 163 number is a significant number giving high reliability to this study. As also mentioned last time, these companies represent a cross section of all the subsectors of turnover as well as almost all the subgroups of Medical Devices industry. This heterogenous universe of medical devices makes the study more useful. This data was collected by means of questionnaires administered to the right people of these companies. International trade fairs was coming out to be the most common means of export product promotion (for 97% companies!) followed by one-to-one meeting with clients (92.6%).


As also mentioned last time, this dissertation mentions very interesting study about overseas Distribution channels and Pricing models followed by the Medical Devices companies for Exports market and we will see that part in the current issue of Medical Plastics Data Service magazine.


Distribution channels for overseas markets


Distribution channels decision is an important decision for exporters of Medical Devices. Not only the distribution channel selection is important, this strategy also influences all the other decisions of marketing mix being adopted by the Companies, as widely known.


The study confirms that in Medical Devices sector, alternative distribution channels being used frequently are -


- Direct distribution to the client overseas
- Distribution to agents/buying agencies.


Alternatives like Regional logistic warehouse, and Online sales are not preferred nor practiced.


Readers will quickly appreciate that digital sale (on line sale) is not suitable for Medical Devices in India also due to the nature of these products and the same dynamics apply to the outside markets also. This new and upcoming channel, which is highly effective for consumer products, has limited significance for Medical Devices sector in the export market.


Pricing policies and practices for overseas markets


A very large majority of the companies approached for understanding their overseas pricing policies (97 % of respondents) confirmed that their companies go for “volume slab-wise pricing” – higher the volume, lower the price. The second choice in this pricing area model is “Competition oriented pricing” (91.4% respondents). Here, the seller checks the goingon price or competitors’ price and then offers pricing in line with that price.


The third choice was “penetration price”, where the seller offers a really low price to get an entry. The last choice was “cost-plus price” where a company decides a margin and that margin is added to cost and the final price (cost + margin) is the offer price for an overseas buyer.




As the readers know quite well, many of the medical devices are going to the hospital users and tender buyers. These two major segments are always least brand oriented segments, where brand value is working at its lowest. In such a situation, pricing models like quantity-oriented price (slab-wise price) or competition-oriented price will work well.


Distribution channels also affect pricing models. As mentioned above, channels being adopted most frequently are supply to hospitals or users, and supply through an agent or a distributor. These channels also direct the Indian sellers to adopt the pricing models which suit a generic product.

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