MARKETING PLAN
MARKETING PLAN
2 Introduction: Cortex Cast
The professionals within the Los Angeles County will no longer have to worry about the hassle of a broken bone ever again! The Cortex Cast is a super light, ventilated, advanced 3D printed model cast that allows patients to easily recover from a broken bone without the hassle of a bulky, smelly original cast. Features
Benefits
Fully ventilated cast
Allows air to easily circulate within the cast, which eliminates itchiness, irritation, unpleasant scent, discomfort, and reduces risk of infection.
Super light weight
Allows the patient to easily move and continue many everyday activities.
Shower friendly
Allows patient to maintain personal cleanliness and to swim.
Recyclable
Will drastically reduce the percentage of waste in the landfills. The material can be recycled and reused if needed. This eco-friendly product not only benefits the consumer, but the world.
Stylish, unobtrusive Because the exoskeleton frame is generated from a 3D printer the cast is exoskeleton frame form fitting, which allows patients to easily wear it underneath their clothing. The unobtrusive stylish frame allows patients to feel confident when entering the workforce with a fractured/broken arm instead of an embarrassing bulky, smelly, old style cast.
•
Unfortunately many individuals experience the hassle of having a broken arm; the Cortex Cast is designed to allow professionals to go back to work the very next day and contribute to the workforce. Is also the perfect cast for practically anyone who will purchase the cast out of pocket. The Cortex Cast utilizes an X-ray and a 3D scan in order to generate a 3D model cast in relation to the point of fracture. It is convenient and super lightweight, which allows it to fit under your choice of clothing.
MARKETING PLAN •
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We will be utilizing the most advanced technology in healthcare in order to produce the Cortex Cast. The market environment will be physicians, surgeons, or any other professionals that provide casting to their patients. We will serve the Los Angeles County and put our focus on major physician offices in those communities where the citizen’s average income is over $75,000. Although we have a major focus, we will be competing for every doctor’s office to carry our product to distribute to patients in need.
MARKETING PLAN
4 Demand Analysis:
Geographic Service Area •
Los Angeles is the most populous county in United States. Over 9,962,789 people reside in the county lines, (Los Angeles, California, 2012).
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6.5% of the population is below the age of 5 years old and 11.5% of the population is above the age of 65 years, (Los Angeles County Quick Facts, 2013).
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According to City-Data.com, in 2009 the estimated median household income is $46,148. 32% of the populations have a household income higher than $75,000.
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Children in LA County have a high rate of obesity. There has been a recent push for children to play outside leading to more accidents, fractures and bodily harm. Kids play hard and don’t like being on the sidelines.
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Arthritis is the leading cause of disability in the United States. In Los Angeles County nearly one in five adults have been diagnosed with arthritis. The estimated total number of diagnosed adults is 1,313,000 or 19.5% of the population, Public Health, 2006.
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LA city is the entertainment capital of the world. It is home to the major film studios, music industry and professional sports teams, thus providing many outlets to market a new product.
Market Size •
According to the National Health Statistics Report of 2010, there are 6.3 million fractures annually in America.
MARKETING PLAN •
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The most common fracture prior to age 75 is a wrist fracture. In those over age 75, hip fractures become the most common broken bone. (Factures and Broken Bone Data)
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Approximately one-third of children will have sustained a fracture by age 18. The peak incidence of fractures in girls is 10 to 12 years and boys around 13 to 15 years. (Staff)
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15% of all injuries in children are fracture injures. (Staff)
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The National Ambulatory Medical Care Survey and American Academy of Orthopedic has estimated there are 2.4 fractures per 100 people per year. For the purpose of this assignment we will estimate there are 239,107 fractures annually in the County of Los Angeles. o If the totally population of the county is divided by 100 it is 99,628 groups of 100. Then in each group there 2.4 fractures, which equates of 239,107 fractures annually.
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For this assignment we will assume 40% of the fractures are wrist fractures totaling to 95,643. o 40% is estimating from wrist factures being most common fracture in the age group up to 75 years, which is 80% of the county population.
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Casts are used to support and protect injured bones. Almost all fracture sites are either casted or splinted. (Ortho Info-AAOS)
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LA County 17,556 licensed doctors. For every one hundred thousand persons there are 176 physicians. . (Fewer and More Specialized).
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There are around 3,665 physicians who will benefit from Cortex
MARKETING PLAN
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Type of Physician Family Medicine Geriatrics Neonatal
# of Physician 1,205 127 116
Other Medicine Physical & Rehabilitation Medicine Sports Medicine (Fewer)
194 182
Type of Physician General Surgery General Practice Orthopedic Surgery Pain Medicine Rheumatology
# of Physician 398 590 465 119 116
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There are 137 licensed general acute care hospitals in LA County. (Hospital Annual Utilization Data)
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An arthritis patient can also benefit from the reusable Cortex cast by using it to decrease pain, encourage proper positioning and support the Arthritic joint.
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In Los Angeles County there are over 1,313,000 people who have been diagnosed with arthritis according to the 2005 Census. For the purpose of this project we will estimate 12% have Arthritis in the wrist which is 157,560
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It has been estimated at 294,000 children have some form of arthritis which is approximately 1 in every 250 children in the U.S. In LA County, there are approximately 10,003 children who suffer from some type of arthritis. (How many children live in Los Angeles).
Demand Estimates •
We are looking for physicians who provide their patients with the most medically advanced treatments.
MARKETING PLAN
7
Type of Physician Est. of Physician using (Percent) Family Medicine 37%
Est. of Physician Using
Type of Physician
Est. of Physicians using
Est. of Physician Using
446
25%
100
Geriatrics
39%
50
32%
189
Neonatal
10%
12
29%
135
Other Medicine Physical & Rehabilitation Medicine Sports Medicine
11% 23%
22 42
General Surgery General Practice Orthopedic Surgery Pain Medicine Rheumatology
10% 40%
12 47
15%
6
•
This estimate of potential physician users would be 1,061 physicians within a three-year during our beta test year and 44 hospitals.
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If 32% of the total patients who could benefit and afford the Cortex Cast bought the cast that would equate to 81,408 cast. o 1,200 children have wrist arthritis, 157,560 adults with wrist arthritis and 95,643 wrist fractures would equal 254,403 patients that would benefit from the cast.
Payer •
The buyers of this cast will be the physicians. They will charge the patients for the extra cost for the advance technology cost plus a markup on the cast.
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Insurances will cover the normal bulky, uncomfortable and cumbersome fiberglass or plaster cast but will not cover the sleek new Cortex Cast. The longterm objective is to have insurance cover the 3-D scan and the X-Ray Scan and the materials of the Cortex Cast as it would the materials of a normal cast.
MARKETING PLAN •
It is crucial before the launch that our company negotiates with insurance companies to see what will be covered under their policies.
•
The incentive for the physicians is Cortex Cast would sell the cast directly to them. Then the physician would sell and provide services for the Cortex Cast to the patient with an additional mark up.
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MARKETING PLAN
9 Competitor Analysis:
Market Leaders •
Plaster Cast o
Has traditionally been the more common type of casting material used because of its low cost. Plaster casts are used to immobilize injured limbs. Plaster has a slower drying time than fiberglass which allows doctors more time and ease when applying the material.
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Fiberglass Cast o
Casts are used for immobilization, more likely to be used for severe soft-tissue injuries and non-displaced fractures. The main benefits of choosing a fiberglass cast are that the application of the material is less messy and the cast is lightweight.
Complete Reimbursement Rates •
There are multiple CPT codes that are billed when a patient receives an arm cast. o
Reimbursement rates according to Medicare’s Part B Fee Schedule (Appendix 2):
Examinations ranges from $8-$220
Application of the cast range from $50-$110
Materials range from $4-$29
X-Ray reimbursement ranges from $8-$45
3D Imaging reimbursement ranges from $10-$92
Strengths •
All products provide immobilization of injured arm.
MARKETING PLAN •
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Maintain bone alignment and protect the injury.
Weaknesses •
Can cause itchiness. o Can be harmful or dangerous if a patient inserts an object in the cast. If an injury
results the patient is at risk for developing an infection. Are not waterproof.
• o
If cast becomes wet it may crack, soften, or become loose. This can result
in the cast not providing proper support to the injury. •
Difficult to apply and are not very forgiving if applied incorrectly. o
If cast is applied too tight, this may lead to decreased circulation, nerve
damage, and even paralysis. Comparative Chart for Strengths and Weaknesses
Weight
Waterproof? Wraps/Covers for bathing?
3D Cortex Cast Light weight compared to the other 2 types of casts. Yes No wrapping required.
Fiberglass Cast Plaster Cast Heavier than the 3D cast, Heaviest type of cast. but lighter than the plaster cast. No No Yes, requires some Yes, requires some wrapping or cover to wrapping or cover to keep cast from getting keep cast from getting wet. Covers can be wet. Covers can be costly and inconvenient costly and inconvenient to put on. to put on.
MARKETING PLAN
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Proper Fit?
Yes, doctors can Proper fit is not Proper fit is not take multiple scans guaranteed. Once guaranteed. Once and be confident that material is wet, the material is wet, the the cast that is made process of casting begins, process of casting will provide the and if mistakes are made begins, and if mistakes ultimate fit for the the material is not that are made the material is patient. forgiving. not that forgiving.
Comfort
Thin, easy to wear Bulky, doesn’t easily fit Bulky, doesn’t easily fit under long sleeves under clothing under clothing
Material
Nylon Plastic
Woven fiberglass coated with polyurethane
Plaster of Paris
Recyclable? Cost
Yes Luxury Item ($80)
No No More expensive than Cheap and affordable plaster but still relatively ($4-$13) affordable ($9-$29)
Differentiation •
A more hygienic cast for patients because it allows for ventilation and is
washable. •
Will provide patients with a more precise fit, decreased risk of infection, nerve
damage, and bone movement. • The 3D Cortex Cast is the first in the industry to provide patients with a convenient
and hassle free cast option. This product targets many weaknesses of the traditional market casts that are currently available to consumers and addresses them. No one is going to have to dread wearing the cast because it is light-weight, thin enough to fit under clothing, waterproof, and provides ventilation which reduces itchiness. Barriers to Entry • Higher Technology
MARKETING PLAN
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o
Requires a 3D scanner on site.
o
A 3D printer is needed to print the cast.
• Higher Start-Up Costs o
Since 3D printers are a new piece of technology, start-up costs are higher.
As technology advances and as the 3D printers become more popular, costs will decrease. Although there are high costs and more advanced technology that need to be used in order for patients to receive a Cortex Cast, the advantages of this cast outweigh the disadvantages. Our product’s competitive advantage relies on the new advancements in 3D printers to provide to consumers with an improved arm cast. Physician offices will have onsite X-Ray and 3D scanners that will take the necessary images that are needed to produce the cast. These images will then be sent electronically to a Cortex Cast Lab where the order will be processed and the cast will be made. FedEx will deliver the Cortex Cast back to the physician facility within a 24hour period.
MARKETING PLAN
13 Distribution Channel Analysis
Distribution Channel For our product, our distribution channels are the physicians. They would purchase our product and then service it to the patients (end-users). We have a physician group as the intermediary between our company and the consumers. The physician group will take the role of playing middleman. •
Primary Care Physicians’ Role o
Entry point for patients’ needs
o
General offices for primary or preventive care
o
Problem origin, organ system, or diagnosis
o
Gatekeepers for referrals to specialists
PCP’s are trained to interpret patients’ x-rays
Upon determining a fracture, they would refer the patient to an orthopedic
When patients experience complications, they would adjust, remove, and change the cast
•
•
Physician Offices of L.A. County (CHCF, 2010) o
General Practitioners/Family Physicians: 590
o
Pediatrics: 1,982
o
Internal Medicine: 190
o
Multi-specialty: 976
o
Orthopedic Specialty: 291
Demographics of Distribution Channel- Physicians o
Active physicians by specialty in L.A. County
MARKETING PLAN
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General Practitioners- 815 (AAMC, 2012)
Family Practitioners- 725 (CHCF, 2010)
Pediatricians- 620 (AAMC, 2012)
Internal Medicine- 280 (AAMC, 2012)
Orthopedic Surgeons- 465 (AAMC, 2012)
Orthopedic Physicians- 362 (AAMC, 2012)
General- 590 (CHCF, 2010)
Preventive Physicians- 24 (AAMC, 2012)
Critical Care Specialists- 46 (AAMC, 2012)
Multi-Specialty Groups- 227 (Cattaeno & Stroud)
Missing- 1,730 (CHCF, 2010)
Physician Shortage (Family Physicians, Pediatricians, Multi-Specialty Groups) o
“The number of primary care physicians actively practicing in C.A. is at the very bottom range of, or below, the state's need” (AAMC)
176 physicians per 100K patients (AAMC)
17,600 doctors to serve a population of 9,962,789 (AAMC)
Due to shortage, low-income families cannot afford the cast
Our product works with patients with $75,000+ income
5,000 Physicians targeted and an estimate of 2,500 expected to buy our product within the 1st year
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Services: Arm, forearm, elbow, wrist, hand injury o
Broken bones
o
Fractures
MARKETING PLAN
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o
Sprains
o
Soft tissue damage
o
Displaced bone
o
Arthritis: Casting will temporarily straighten the affected joint. Then, the patient goes through physical therapy and a new cast is applied with the joint stretched a bit more.
•
Demographics of Orthopedic Physicians in L.A. County (IBJI, 2013) o
Physicians that specialize in orthopedic surgery
Traumatic or repetitive motion injury to a bone, joint, tendon or nerve
Chronic joint or bone pain, diagnosed with a rheumatic disease, or have arthritis
Ratio of 4.48 physicians to 100K patients
MARKETING PLAN
16 Implementation of Marketing Plan
Marketing Objectives •
To promote Cortex Cast for the 5,000 Physicians in Los Angeles County by reaching 50% of sales to the market by November 2014 (Target number of 210 PCP’s per month or 2,500 PCP’s annually)
Strategies •
Establish Our Company in the Industry Via Advertisements
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Establish a Strong Relationship With Physicians
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Brand Awareness
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Distinguish from Competitors
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Evaluate the Qualities of Our Product
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Conduct Follow Ups with Physicians
Tactics •
Establish Our Company in the Industry Via Advertisements o
Our own website would allow physicians access to product information without the burden of speaking to a representative
o
TV commercial so as to have a wide range of time during which to reach viewers as well as to draw the viewer into our ad
o
Invitation to an Open House would let people experience and see how we work as well as the product features
o
Group of reps who have had experienced themselves or whose family or friends have had the cast will speak to individuals in-person and persuade people to give “the new way to cast” a try
MARKETING PLAN
•
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Establish a Strong Relationship With Physicians o
Begin a long-term investment into a network, including business colleagues, professional acquaintances, prospective customers, family, friends, and people at school, church, and in our community. This will make a lot of them our potential customers waiting for us to connect with their needs.
o
Begin an early and frequent communication. Make the connection immediately. Send a friendly e-mail or let these new contacts know we’ve added them to our newsletter list and then send them the latest copy. Immediately reinforce who we are, what we do, and the connection we’ve made.
o
Utilize Facebook and blogs to keep relationships strong while containing costs. Say interesting things and give insight to build our reputation as an expert. Briefly post tips and advices showing prospects why they should buy from us. This can result in an easy way to stay on their minds and for them to mouth market by forwarding our site and blogs to others.
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Brand Awareness o
Become recognized by building e-presence on the Internet. Create professionallooking designs, including a carefully planned layout, well-designed graphics, and a consistent look across the site. Our site will reflect our traditional corporate image so it can ingrain in the customers’ minds that there is a “new way to cast.”
o
Consider navigability so that customers can easily access our product. On our website, make no more than four clicks to get to the information they may seek. Use menus, site maps, and shortcuts to achieve this.
MARKETING PLAN o
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Advertise across other sites in the form of banner ads that reflect our brand. Even when surfing elsewhere, Web users can recognize our logo, tag line, and familiar colors that represent our site and business.
o
Become known for providing updates. Current information, such as publishing news, brochures, mails, and flyers will mean something to them in terms of how our product will make their lives easier.
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Distinguish From Competitors o
Analyze the industry of cast so as to find weaknesses in the traditional casts and other types of casts. Research their information by using the internet and interviewing people who have used the competitors’ products. Take notes on ideas for setting our business apart.
o
Set a good price for the value of the product so that the customers will find contentment in the use of the product despite the costs.
o
Build the trust that many companies lack. Keep a clean biography of our company and staff as well as our acquired customers’ experiences that the prospective customers may learn about. Keep track of consumer opinions posted online and always comment back showing appreciation or explanation or how we can make up for their dissatisfaction.
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Evaluate the Qualities of Our Product o
Build a group of testing employees to assess the promised qualities of our product. Proofread that the ventilation, lightweight, sturdiness, and durability are found in
MARKETING PLAN
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each printed cast. This group with be compensated through 3D printed paraphernalia o
Design diagrams specifically dedicated to product quality evaluation
o
Establish quality indicators to determine what characteristics we need to have, demonstrate, maintain, or discontinue. Track specific, quality criteria on a monthly basis.
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Conduct Follow Ups with Physicians o
Make phone calls pointing out to customers what excellent product we are providing them. Mentioning all the things will push customers to notice the benefits of the product and the detailed work we have done to please them. Let them know how simple it is to order from us or do extra steps for them such as filling the order requests ourselves- one less thing they have to do.
o
Provide optional surveys so we can be aware of the suggestions of our customers and ways to improve our company.
o
Reward loyal customers so they can reward us back. Maintain retention by focusing on repeat customers as the profitable ones. Stay in touch, give them attention, and show them the appreciation in exchange for their time. Tickets to trade shows, coupons, or news they can use can be provided.
o
Remember special occasions. Send them holiday and greeting cards so they can feel we took the extra step to reach out to them during special times.
o
Keep a personal touch by sending them the message that we want to meet and talk to them directly or that we may stop by their offices at their preferred time.
MARKETING PLAN o
Make follow-up calls so that when we talk to established customers, they may have referrals to give back to us, which can lead to new business
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MARKETING PLAN
21 Promotional Mix
Advertising •
The biggest attribute about this product is it is visually intriguing. It is like nothing anyone has seen before and it makes potential consumers question. It is very important to create a buzz and awareness about this innovative cast and influence them to look into it. During the few first years it is crucial to have an integrated advertising campaign that hits all of our target markets. It is critical to get users testimonials to persuade insurance companies and persuade potential clients.
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Social Media •
Website o These days most people will go online and research products and companies before they make a purchase. It also can help establish credibility as a business. (Superweb) This is a very inexpensive way to advertise as it would be a set up fee and a annually server fee.
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Facebook o This is to connect with the younger generation who can “Like” and spread the word about the Cortex Cast. A big plus is it is free.
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Blog or Tumbler o This is also an inexpensive way to create awareness. As a company we would encourage patient do photograph themselves wearing the Cortex cast doing actives that traditional casts could not. o Have a contest that would be, “What can you do in your cast that you couldn’t in a traditional cast.”
MARKETING PLAN •
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Digital Banners o These are an inexpensive way to get the product name and purpose out while maximizing reach and frequency. These banners can be placed on Pandora, Facebook, Google, Yahoo, WebMD and many other sites.
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Events •
Trade Shows o The Cortex Cast will be appearing at many trade shows and venues to create awareness and interest that can turn into trial and possibility adoption by physicians. (Medical Trade Shows) o At these venues we will have a booth, video, prototypes, and slides so the tradeshow goers can truly experience what it would be like using a Cortex Cast
•
American Academy of Orthopedic Surgeons
American Orthopedic Society for Sports Medicine
American Academy of Family Physicians Scientific Assembly
American Medial Group Association
International Medical Expositions, Inc.
World Forum for Medicine International Trade Fair
Open House/Seminar o We will be unveiling the Cortex Cast during an open house at our 3D printing facility. The public as well as physicians are welcome. This will also serve as a Q&A session. Through this event there will be journalist, which will continue to create the awareness.
MARKETING PLAN
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o We will open our facility to school tours. 3D printing is a fascinating technology, which can get children excited about a product that will help create buzz about Cortex Cast. •
Television •
Commercials o These commercials will air on FUEL, Spike and other action channels to attract sport enthusiast who don’t want to be held back by a bulky traditional cast.
•
Print Advertisement •
Brochures o This will be one of the most effective advertisements because it gives enough information to the customer and the consumer but not enough to satisfy their curiosity. These will be distributed at trade shows and participating doctors offices and hospitals. These will be costly but the business return is projected to be exorbitant.
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Magazines o Magazine ads are becoming obsolete but the older cliental continues to read them. We plan on advertising in Newsweek, AARP, Modern Healthcare, Orthopedics and Arthritis Today.
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Flyers o Flyers are an inexpensive way to get the Cortex Cast brand out into the public’s eye. These can be passed out at sporting events, schools, professional conferences and many other events.
MARKETING PLAN •
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Newspaper o Most newspapers are online, however our older target market still read the morning paper. This is an inexpensive way to build buzz about what this product can do and build curiosity. We would advertise in LA Times, which has a daily readership of 1,672,803 people, and that number doubles on Sunday to 2,682,935. (Advertising Reach) o Another point of Public Relations is having a future story where we make a story that is delivered to the public for a more personal testimonial approach to create a buzz.
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Outdoor Advertisement •
Billboard o We believe this will be the most effective advertisement because this cast is visually captivating and raises the awareness very fast. These billboards would be near hospitals, major sporting centers, freeways and professional business parks.
Sales Promotion •
As a company we have decided to forgo sales promotion because we want to keep this products image as a luxury item. Also we want to have prestige pricing to project an image of exclusivity and value.
Personal Selling •
Before our open house of our printing facility and grand reveal of the Cortex Cast we want a strong sales team to go to all doctors offices and hospitals promoting the cast.
MARKETING PLAN •
After the Event we will have the sales team return to the facilities and insurance companies to begin selling and creating contracts.
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MARKETING PLAN
26
Budget Total Marketing budget: $235,000 (See Appendix Table 4) Item Description Amount Staff
•
•
• •
Equipment Advertising
• • • • •
• •
• Events
• •
• • •
3 Marketing specialist- $25 per hour and 40 hours per week Insurance Benefits per employee is $12,000 (Bostick, 2013) Mileage: 56.5 cents per mile Miscellaneous travel expenses: maximum of $20/ day
•
3 iPad 2 Trade Show Booths Brochure- 2500 at $0.17 per copy Flyer- 2500 at $0.07 per copy Website-One-time creation fee of $1000 then $20 maintenance fee per month Digital web banner Small Billboards- 5 at $750 for 4 week periods Magazine Adds
• • •
$399 $7,000 $425
•
$175
•
First year cost of $1,240
• •
$1,000 $3,750
•
$4,000
Booths at Health Fairs Lunches provided to doctor’s staff upon visits Open House Annual Appreciation Party Seminars
•
$2,000
•
$1,000
• •
$4,000 $4,000
•
$10,000
Total Cost Under Budget: $4,197, 1.79%
• •
•
Annual pay for Marketing Specialist is $48,000 Annual insurance cost $36,000 Mileage: estimating 100miles/week for the 3 marketing specialist; $8,136 Miscellaneous travel, 3 days/week: $2,880/year
Total & % of Operating Cost • $191, 016 • 81.28%
• • • •
$8,197 3.49% $10,590 4.51%
• •
$21,000 8.94%
•
$230,803
MARKETING PLAN
27 Time Line
First Quarter: January- March • Inventing ideas to Create brand awareness through promotional mix/advertisement • Conduct a numerous amount of seminars around the community in order to promote our product. o Hold seminars in nursing home facilities, doctor offices, orthopedic offices, and hospitals. • Start developing marketing materials such as website, Facebook, digital banners, seminars, television, brochure, magazine, direct mail, flyers, newspaper, billboards, etc. • In our website create a login where our company and our clients can communicate in order for the doctors, surgeons, etc. can order their cast online quickly and easily Second Quarert: April-June •
Address companies that have ordered cast from us and ask them for their feedback.
•
Survey them to find our faults.
•
Continue holding seminars in new offices and different areas of the Los Angeles county
•
Excessively start distributing our marketing materials around the community to recruit
more clients (the ones we have completed) •
Inform our clients about the website that makes ordering a cast easy and quick.
•
Have representatives teach physicians, surgeons, etc. how to use this website by going
to their offices •
Distinguish from our competitors by building trust and keeping the costumer informed
and keeps track of customer opinion. Third Quarter: July-September
MARKETING PLAN •
Keep our current clients well informed and happy to continue building our trust.
•
Advisors will consistently be checking in at every office making sure our clients are
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happy and satisfied with our product and service. •
Continue trying to recruit more clients through advertisement and word of mouth.
•
For our new clients we will hold seminars and business functions for the clients to attend
and learn more about the product and its benefits. •
Since our cliental is building up our company will be cutting the amount of seminars
being held in half by 50% •
Conduct follow-ups for our patients. We will be providing surveys and sending clients
festive cards for holidays. •
Plan and Send out invitations to a Christmas party where there will be food, dancing,
music, and a short presentation about the product and thanking our clients from switching over to the use of the Cortex Cast. Fourth Quarter: October-December •
Review the current fiscal year budget plan and start next fiscal years planning.
•
Continue sending representatives to every office to make sure our cliental is satisfied.
•
Continue reviewing surveys from our clients
•
Continue marketing in order to gain more clients. Start preparing the presentation that will be given at the Christmas party
•
Get decorations, music, food, etc. ready for the Christmas party in December and host
event.
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Performance Assessment Our goal is to allow our local physicians and surgeons to provide their patients with the best quality of care. We hope to establish a whole new way of healing broken bones. Our success will be measured by how many physicians, surgeons, etc are using our product. When providing our product to the physician we will ask the physician where they heard about our product. This will be in a form of a survey. The physician will be able to pick from a variety of choices: website, Facebook, blog, seminar, television, brochure, newspaper, billboard? This will allow our company to keep track of what promotional mixes are working and which are not so effective. On every advertisement our company will also promote a call to action. We our contact info and sometimes a promo code will be left on advertisements as incentives for clients to contact us. We will check the effectiveness of the call to actions by asking clients where did they hear about our product? Every time a client calls our company it will be mandatory that our phone staff ask the individual where they heard about our product; whether it be from television, a flyer, the newspaper, a billboard, a seminar, or online. If the individual is a non-physician our staff will enthusiastically explain to the person the process in which getting a cortex cast. They must first see their physician, and from there the physician way order your cortex cast. We will also test the effectiveness of our website by seeing how many people visit our site a day. This will allow us to see how many individuals are interested in our product and to see how many people are doing their research on our company/product. The website will allow us to see the ratio between how many clients are putting in orders online vs. how many people are visiting the website. We will test the effectiveness of Facebook by how many likes our company has. We will also be adamantly posting statuses and pictures on Facebook. By doing this we will be able to calculate
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how many people are responding to our post and how many people are ‘liking’ our information. In conclusion, our overall mission is to provide professionals with a product that will give their patients comfort during a difficult time in life.
MARKETING PLAN
31 References
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MARKETING PLAN Care of Casts and Splints
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Surgeons . Retrieved November 10, 2013, from http://orthoinfo.aaos.org/topic.cfm?topic=a00095 Cattaneo& Stroud, Inc. - Medical Group Reports. (n.d.). Cattaneo& Stroud, Inc. - Medical Group Reports. Retrieved November 10, 2013, from http://www.cattaneostroud.com/medgroup_reports0.htm Child Bone Fractures. (n.d.). Wikipedia. Retrieved November 10, 2013, from http://en.wikipedia.org/wiki/Child_bone_fracture#cite_note-2 Childhood Fractures: When to Worry. (n.d.). Mayo Clinic. Retrieved November 10, 2013, from http://www.mayoclinic.org/medicalprofs/childhood-fractures.html Clover Pricing: It’s all about value. (n.d.). Retrieved from http://www.cloversites.com/websitepricing/. CORTEX. (n.d.). JAKE EVILL. Retrieved November 10, 2013, from http://jakevilldesign.dunked.com/cortex Current Procedural Coding Expert 2009. (2008). USA: Ingenix. DeMerceau, J., (n.d.). Difference Between Fiberglass & Plaster Cast.Retrieved from http://www.ehow.com/info_8333262_difference-between-fiberglass-plaster-cast.html. Demographics of Los Angeles County. (n.d.). Los Angeles County Economic Development Corporation. Retrieved November 10, 2013, from http://laedc.org/demographics-of-losangeles/ Digital Banner Display Price Trends. (n.d.). Retrieved from http://www.aliexpress.com/price/digital-banner-display-price.html.
MARKETING PLAN
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Eustice, C. (2013, February 22). Wrist Fracture - What You Need To Know. About.com Arthritis & Joint Conditions. Retrieved November 10, 2013, from http://arthritis.about.com/od/wrist/a/wristfractures.htm Facts about Los Angeles. (2013, May 5). Discover Los Angeles. Retrieved November 10, 2013, from http://www.discoverlosangeles.com/press-releases/facts-about-los-angeles Fewer and More Specialized: A New Assessment of Physician Supply in California - CHCF.org. (n.d.). California Healthcare Foundation. Retrieved November 10, 2013, from http://www.chcf.org/publications/2009/06/fewer-and-more-specialized--a-newassessment-of-physician-supply-in-california Forearm Fractures in Children-OrthoInfo - AAOS. (n.d.). Forearm Fractures in ChildrenOrthoInfo - AAOS. Retrieved November 10, 2013, from http://orthoinfo.aaos.org/topic.cfm?topic=a00039 Fracture bracing systems: an interview with Steve Ingel, President for the Bracing & Supports Division of DJO Global. (n.d.). Fracture bracing systems: an interview with Steve Ingel, President for the Bracing & Supports Division of DJO Global. Retrieved November 10, 2013, from http://www.news-medical.net/news/20121106/Fracture-bracing-systems-aninterview-with-Steve-Ingel-President-for-the-Bracing-Supports-Division-of-DJOGlobal.aspx Fractures and Broken Bone Data. (n.d.). National Ambulatory Medical Care Survey and American Academy of Orthopaedic. Retrieved November 10, 2013, from http://www.schwebel.com/userfiles/files/Fractures%281024%29.pdf
MARKETING PLAN
34
Golgowski, N., (2013, July 14).Revolutionary 3-D Printed Cast Could be the Future of Comfort and Design. Retrieved from http://www.nydailynews.com/news/world/3-d-printed-castfuture-article-1.1398383. Gray, Bev. (2011, September 1). Trade Show Exhibiting- How to, How much, and Where to Find. Retrieved from http://juniorbiz.com/trade-show-exhibiting-how-cost. Hospital Annual Utilization Data. (2013, November 8). OSHPD. Retrieved November 10, 2013, from http://www.oshpd.ca.gov/hid/Products/Hospitals/Utilization/Hospital_Utilization.html How many children live in Los Angeles County, Ca?. (n.d.). FInd the Data. Retrieved November 10, 2013, from http://census-statistics.findthedata.org/q/209/1836/How-many-childrenlive-in-Los-Angeles-County-Ca Illinois Bone & Joint Institute, (2013). What is Orthopedics and What do Orthopedic Physicians Do? Retrieved from http://www.ibji.com/blog/2011-12-08/what-is-orthopedics List of Hospitals in Los Angeles County. (n.d.). Healthcare Atlas. Retrieved November 10, 2013, from http://gis.oshpd.ca.gov/atlas/places/list-of-hospitals/county/los%20angeles Los Angeles County Profile of Community Clinics and Health Centers. (n.d.). California Primary Care Association . Retrieved November 10, 2013, from http://www.cpca.org/cpca2013/assets/File/Data-Reports/2010-Profiles/2011-05-24LosAngeles-County-Profile.pdf Los Angeles County QuickFacts from the US Census Bureau. (2013, June 27). United States Census Bureau. Retrieved November 10, 2013, from http://quickfacts.census.gov/qfd/states/06/06037.html
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Los Angeles County-Details. (n.d.). Healthcare Atlas. Retrieved November 10, 2013, from http://gis.oshpd.ca.gov/atlas/places/county/los%20angeles Los Angeles, California. (n.d.). (CA) profile: population, maps, real estate, averages, homes, statistics, relocation, travel, jobs, hospitals, schools, crime, moving, houses, news. Retrieved November 10, 2013, from http://www.city-data.com/city/Los-AngelesCalifornia.html M.D., J. C. (2013, November 7). All About Broken Bones.About.com Orthopedics. Retrieved November 10, 2013, from http://orthopedics.about.com/cs/otherfractures/a/fracture.htm Magazine Advertising Rates. (2013). Retrieved from http://www.quirks.com/advertise/print/adrates.aspx. MakerBot Replicator 2x. (n.d.). Retrieved October 28, 2013, from http://store.makerbot.com/replicator2x.html. Marketing Specialist Salaries in Los Angeles, CA. (n.d.). Retrieved from http://www1.salary.com/CA/Los%20Angeles/Marketing-Specialist-salary.html. MD, K. G., PhD, A. C., &Bindman, MD, A. B. (n.d.).California Healthcare Foundation.Fewer and More Specialized: A New Assessment of Physician Supply in California - CHCF.org. Retrieved November 10, 2013, from http://www.chcf.org/publications/2009/06/fewerand-more-specialized--a-new-assessment-of-physician-supply-in-california Medical Trade Shows & Conventions Calendar Schedule. (n.d.). Medical Trade Shows Conventions Calendar Schedule Medical Expos Category. Retrieved November 10, 2013, from http://www.dremed.com/medical-trade-shows/?cat=15&paged=3 Medicare Physician Fee Schedule (MPFS) [Excel document]. (n.d.). Retrieved from https://med.noridianmedicare.com/web/jeb/fees-news/fee-schedules/mpfs.
MARKETING PLAN
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Mytko, C., (2013, July 3).Cortex: The 3D Printed Cast. Retrieved from http://talesofa3dprinter.blogspot.com/2013/07/cortex-3d-printed-cast.html. National Hospital Discharge Survey: 2007 Summary. (n.d.). National Health Statistics Reports. Retrieved November 10, 2013, from http://www.cdc.gov/nchs/data/nhsr/nhsr029.pdf Number and Rate per 100,000 Poisoning-Related Treatment and Released Emergency Department Visits. (n.d.). Public Health of LA County. Retrieved November 10, 2013, from http://publichealth.lacounty.gov/ivpp/pdf_reports/5Year%20injury%20by%20mechanism%20tables/2012%20ED/Poisoning%20ED%20Dat a%20Sheet%20Feb%202012.pdf Prevalence and Incidence of Wrist fracture. (2013, May 7). - RightDiagnosis.com. Retrieved November 10, 2013, from http://www.rightdiagnosis.com/w/wrist_fracture/prevalence.htm. Primary Care Physicians in LA County. (n.d.). Yelp.com. Retrieved November 10, 2013, from http://www.yelp.com/search?find_desc=primary+physician&find_loc=Los+Angeles%2C +CA&ns=1#start=10. Reasonable Charge Update for 2013 for Splints, Casts, and Certain Intraocular Lenses. (n.d.). Retrieved from https://www.cms.govOutreach-and-EducationMedicare-LearningNetwork-MLNMLNMattersArticlesdownloadsMM8051.pdf. Select an iPad 2. In Shop iPad. (n.d.). Retrieved from http://store.apple.com/us/buy-ipad/ipad2. Snead M.D., D. S. (2011, March 5). Wrist Fractures: When Is Surgery Required?.MyHandHurtsinfo RSS. Retrieved November 10, 2013, from http://myhandhurts.info/hand/?p=103
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Staff, M. (2011, July 7). Definition. Mayo Clinic. Retrieved November 10, 2013, from http://www.mayoclinic.com/health/broken-wrist/DS00971. Statistics by Country for Wrist fracture. (n.d.). - RightDiagnosis.com. Retrieved November 10, 2013, from http://www.rightdiagnosis.com/w/wrist_fracture/stats-country.htm. Superweb. (n.d.). The Importance of Having A Website for Any Business. Retrieved November 10, 2013, from http://www.superwebanalyst.net/Importance-of-Having-a-Website-forAny-Business.php. The Heavy Burden of Arthritis in the U.S.. (n.d.). Arthritis Foundation. Retrieved November 10, 2113, from http://www.arthritis.org/files/images/AF_Connect/Departments/Public_Relations/Arthriti s-Prevalence-Fact-Sheet--3-7-12.pdf Travel and Business Expense Reimbursement Guidelines. In Purchasing Department. (n.d.). Retrieved from http://purchasing.vassar.edu/policies/travelpolicy.html. Vital and Health Statistics. (n.d.). Types of Injuries by Selected Characteristics United States 1985-1987. Retrieved November 10, 2013, from http://www.cdc.gov/nchs/data/series/sr_10/sr10_175.pdf What is Rheumatoid Arthritis?. (n.d.). What is Rheumatoid Arthritis (RA)?. Retrieved November 10, 2013, from http://www.humira.com/ra/what-is-ra.aspx
MARKETING PLAN
38 Appendix
Appendix 1: According to the Centers for Medicare & Medicaid Services, the reimbursement for casting materials for 2013 is as follows: Code
Description
Reimbursement for Materials
Q4005
Long arm cast, adult (11 years +)
$12.45
Q4007
Long arm cast, pediatric (0-10)
$6.23
Q4009
Short arm cast, adult (11 years +)
$8.31
Q4011
Short arm cast, pediatric (0-10)
$4.15
Q4006
Long arm cast, adult (11 years +)
$28.05
Q4008
Long arm cast, pediatric (0-10)
$14.02
Q4010
Short arm cast, adult (11 years +)
$18.70
Q4012
Short arm cast, pediatric (0-10)
$9.36
Material Type
Plaster
Fiberglass
Referenced from (Centers for Medicare & Medicaid Services, January 1, 2013 Appendix 2: Reimbursement rates are according to Medicare’s Part B Fee Schedule for Southern California, Area 18 (Los Angeles), Effective January 1, 2013 Application Description
Facility Setting
NonParticipatin g Physician
Code
Description
Participating Physician
29065
Shoulder to hand (Long Arm)
$74.21
$70.50
29075
Elbow to finger (Short Arm)
$67.89
$64.50
29085
Hand to lower forearm
$72.99
$69.34
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39
29086
Finger (contracture)
$56.97
$54.12
29065
Shoulder to hand Arm)
$108.37
$102.95
Non-facility Setting
29075
Elbow to finger (Short Arm)
$97.73
$92.84
(ex. Physician office)
29085
Hand to lower forearm
$107.14
$101.78
29086
Finger (contracture)
$89.95
$85.45
Participating Physician
NonParticipatin g Physician
(Long
E & M Level Exam: New Patient
Facility Setting
Code
Description
99201
A problem focused history and examination with straightforward medical decision making. Typically physicians spend 10 minutes with the patient. $27.22
$25.86
99202
An expanded problem focused history and decision making with straightforward medical decision making. Physician typically spends 20 minutes with the patient
$51.58
$49.00
99203
Detailed history and examination with medical decision making of low complexity. Physician typically spends 30 minutes with the patient
$78.63
$74.70
99204
A comprehensive history and examination are performed with Medical decision making of moderate complexity. Physician typically spends 45 minutes with the patient
$134.26
$127.55
99205
A comprehensive history and examination with a medical decision making of high complexity. Physician typically spends 60 minutes with the patient
$172.60
$163.97
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Non-facility Setting
40
99201
A problem focused history and examination with straightforward medical decision making. Typically physicians spend 10 minutes with the patient. $48.02
$45.62
99202
An expanded problem focused history and decision making with straightforward medical decision making. Physician typically spends 20 minutes with the patient
$81.03
$76.98
99203
Detailed history and examination with medical decision making of low complexity. Physician typically spends 30 minutes with the patient
$116.72
$110.88
99204
A comprehensive history and examination are performed with Medical decision making of moderate complexity. Physician typically spends 45 minutes with the patient
$176.27
$167.46
99205
A comprehensive history and examination with a medical decision making of high complexity. Physician typically spends 60 minutes with the patient
$217.75
$206.86
Code
Description
Participating Physician
NonParticipatin g Physician
99211
Visit may not require a physician. Typically 5 minutes are spent performing or supervising these services
$9.31
$8.84
99212
Requires 2 of 3 components: a problem focused history, problem focused examination, or a straightforward medical decision making. Physician typically spends 10 minutes with the patient.
$25.65
$24.37
E & M Level Exam: Established Patient
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Facility Setting
Non-facility Setting
41
99213
Requires 2 of 3 components: an expanded problem focused history, expanded problem focused examination, or a medical decision making of low complexity. Physician typically spends 15 minutes with the patient. $52.21
$49.60
99214
Requires 2 of 3 components: a detailed history, detailed examination, or a medical decision making of moderate complexity. Physician typically spends 25 minutes with the patient.
$80.58
$76.55
99215
Requires 2 of 3 components: a comprehensive history, a comprehensive examination, or a medical decision making of high complexity. Physician typically spends 40 minutes with the patient.
$113.55
$107.87
99211
Visit may not require a physician. Typically 5 minutes are spent performing or supervising these services
$22.66
$21.53
99212
Requires 2 of 3 components: a problem focused history, problem focused examination, or a straightforward medical decision making. Physician typically spends 10 minutes with the patient.
$48.02
$45.62
99213
Requires 2 of 3 components: an expanded problem focused history, expanded problem focused examination, or a medical decision making of low complexity. Physician typically spends 15 minutes with the patient. $78.91
$74.96
99214
Requires 2 of 3 components: a detailed history, detailed examination, or a medical decision making of moderate complexity. Physician typically spends 25
$115.52
$109.74
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42 minutes with the patient. Requires 2 of 3 components: a comprehensive history, a comprehensive examination, or a medical decision making of high complexity. Physician typically spends 40 minutes with the patient.
$153.99
$146.29
Code
Description
Participating Physician
NonParticipatin g Physician
73070
Elbow, 2 views
$33.21
$31.55
73080
Elbow, complete, minimum of 3 views
$39.02
$37.07
73090
Forearm, 2 views
$32.38
$30.76
73100
Wrist; 2 views
$37.14
$35.28
73110
Wrist; complete, minimum of 3 views
$44.12
$41.91
73120
Hand; 2 views
$31.99
$30.39
73130
Hand; minimum of 3 views
$37.84
$35.95
73140
Finger or fingers; minimum of 2 views
$39.57
$37.59
73070
Elbow, 2 views
$8.25
$7.84
73080
Elbow, complete, minimum of 3 views
$8.96
$8.51
73090
Forearm, 2 views
$8.61
$8.18
73100
Wrist; 2 views
$9.44
$8.97
73110
Wrist; complete, minimum of 3 views
$8.96
$8.51
73120
Hand; 2 views
$8.61
$8.18
73130
Hand; minimum of 3 views
$8.96
$8.51
99215
X-Ray:
Billed with No Modifier
Billed with Modifier 26
MARKETING PLAN
Billed with Modifier TC
3D Imaging
Not requiring image post processing on an independent workstation
43
73140
Finger or fingers; minimum of 2 views
$7.16
$6.80
73070
Elbow, 2 views
$24.95
$23.70
73080
Elbow, complete, minimum of 3 views
$30.06
$28.56
73090
Forearm, 2 views
$23.78
$22.59
73100
Wrist; 2 views
$27.70
$26.32
73110
Wrist; complete, minimum of 3 views
$35.16
$33.40
73120
Hand; 2 views
$23.38
$22.21
73130
Hand; minimum of 3 views
$28.88
$27.44
73140
Finger or fingers; minimum of 2 views
$32.41
$30.79
CPT Code
Participating Provider
NonParticipatin g Provider
76376
$68.34
$64.92
76376
TC
$58.33
$55.41
76376
26
$10.02
$9.52
$91.37
$86.80
76377 Requiring image post processing on an independent workstation
76377
TC
$51.26
$48.70
76377
26
$40.11
$38.10
Retrieved from (Noridian Healthcare Solutions JE Part B, 2013)
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Appendix 3: Cost of Cortex Cast: Equipment & Materials
Cost
xMakerBot Replicator 2x
$3,308/3D printer
ABS Filament
$48/kg
Cast weight
500grams
Total Estimated Cost for cast
$80
Appendix Table 4 Description Marketing Specialist Salary Insurance Benefits for employees Mileage Miscellaneous Travel 3 iPad 2 Trade Show Booths Brochure Website Digital Web Banner Small Billboard Magazine Adds
Reference (“Marketing Specialist,” n.d.) (Bostick, 2013) (“Travel and Business,” n.d.) (“Travel and Business,” n.d.) (“Select an iPad,” n.d.) (Gray, 2011) (“Business Brochures,” n.d.) (“Clover Pricing,” n.d.) (“Digital Banner Display,” n.d.) (“Billboard Advertising,” n.d.) (“Magazine Advertising Rates,” 2013)