Case Study
Market Segmentation & Strategy: Turning Ambiguity into Actionable Insights for an EP Division
Client Profile:
The client is a global leader in medical technology, improving patient outcomes with innovative therapies in cardiovascular, neuroscience, diabetes, and surgical care with operations in 150+ countries and over 90,000 employees.
Client Challenge
The EP (electrophysiology) division of the client sought to refine its strategic direction and uncover high-growth opportunities to drive both innovation and market leadership in North America, Japan, and the European Union.
However, the company faced several challenges that required a comprehensive strategic realignment, which included:
1. Unclear Market Segmentation: Physician adoption patterns were not well-defined, and the division lacked a future-forward segmentation strategy.
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2. Limited Market Penetration Insight: The company had insufficient visibility into its current market share, penetration and market size within key geographies and indications.
3. Strategic Growth Priorities: With current indication 5 year CAGRs at 5%, leadership sought to identify indications with significant market potential to direct product development and commercialization efforts towards.
TransformEdge Solution
TransformEdge collaborated with a top medical device consulting firm to execute a six-month market analysis and segmentation initiative to address these challenges. The approach included:
1. Market Data Analysis: We leveraged advanced data sources, such as:
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IQVIA: For market size and physician adoption insights.
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Clarivate: For market profiles, historical trends, and projections.
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ECRI: For pricing structures and competitor nuances.
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Frost & Sullivan: For additional diagnosis prevalence and market share data.
2. Voice of the Customer (VoC): Field sales representatives and market development directors conducted interviews with national physicians facilitated to understand adaptation patterns and unmet needs, while insights were gathered from field representatives and key opinion leaders to provide qualitative context to the market trends.
3. Segmentation Framework Development: We focused on the following elements:
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Discrete EP indications: Supraventricular Tachycardia (SVT), Atrial Fibrillation (AF), Ventricular Tachycardia (VT), and Left Atrial Appendage (LAA) Management
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Physicians and healthcare systems were categorized as early adopters, mainstream adopters, or laggards. Their market share was analyzed within each indication.
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Diagnosis codes and payment structures were mapped across geographies, which enabled more precise market penetration analysis.
4. Market Opportunity Identification: We quantified market opportunities by assessing:
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Prevalence of diagnosis codes.
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Treatment medio methods and penetration rates.
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Indication-based payment code data and unit sales estimates.
We prioritized three indications with large disease prevalence, low medical device penetration, and untapped market potential for the company.
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5. Executive Alignment:
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We synthesized our findings into actionable recommendations and secured approval from V- and C-level executives across the wider cardiac and company portfolios.
Outcome
The project delivered measurable and transformative outcomes to the client via:
1. A Robust Market Segmentation Framework: This enabled the division to refine its strategic focus by targeting large, low penetration indication segments and geographies. The framework included . multiple voices, including patient market, customer and internal stakeholders.
2. An Indication Prioritization: Three identified key indications with significant market potential paved the way for future product development and market entry into indication segmentation projected at a 5-year CAGR of 7-15%.
3. Division Rebranding: The repositioned EP division reflected the client’s new strategic focus and aligned branding with high-priority indications.
4. A Strategic Roadmap: A data-driven roadmap for sustained growth was in place, built on the foundation of advanced analytics and qualitative insights
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TransformEdge Consulting Group created a comprehensive segmentation analysis and strategy redefined the direction of the client’s EP division. By integrating advanced analytics, physician insights, and strategic decision-making, the division achieved clarity on market opportunities, increasing business unit CAGR from 5% to 8.5% overall, aligning with their focus on innovative growth.
The project not only addressed immediate challenges but also laid the foundation for sustained strategic growth. With its rebranded identity and prioritized focus on high-potential indications, the division is well-positioned to lead in the competitive global electrophysiology market.