Anjali Arora

STUDENT ID: 219323922

MARKETING MANAGEMENT –
MKTG 5200 I

INDIVIDUAL Written CASE

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PROBLEM STATEMENT

Protégé Biomedical’s discovery of Clottit, a product that accelerates blood clotting to help wounds
heal faster, has reached a stage where they need to define the company’s long-term strategy. As
part of the decision, Susie and Mike Wuollet, the President and the CEO have to determine the
company’s optimal target audience, brand positioning in the market, and resource disposal. The
main problem faced is deciding the target industry: either continue operating in the animal/vet
market or move into human wound treatment. Further, the segmentation needs to be done from the
lens of proper usage of BPM’s resources.
SITUATION ASSESSMENT
Analyzing the current market through a marketing mix
Product: Clottit, an accidental delivery made up of two chemicals mullite and aluminum sulfate
causes blood to clot five times faster than no treatment and twice as fast as other alternatives on
small and extreme wounds. It is available in powder format can be used through gauze
application and is a triple-action, all-natural and non-staining compound available for animals.
Price: The price of Clottit is not explicitly stated in the case, but the premium pricing paid by the
top market groomers suggests that the product might be on the higher end in this industry due to
its unique properties and benefits. Pricing depends on the value of the product provided to the
consumer and the cost involved in the production.
Place: In the human market, the product is still awaiting FDA approval but it is being sold in the
companion animal veterinary market which makes up 65.7% + 9.1% = 74.8% of the animal
market through a contractor who had an existing sales network serving veterinary clinics. They
also discovered a niche within the market of expert grooming.
Promotion: No promotional or marketing efforts from Protégé Biomedical has been indicated
for Clottit. The only mention of promotion was the interest from the military which would have
allowed them to capture the market and gain an advantage but were restricted due to
unsuccessful FDA approvals. There was also no dedicated salesforce for the veterinary market.
MICRO ASSESSMENT
Heavy competition restricting its full potential
Being a Startup, it was extremely difficult for Protégé to tap into the human retail wound care
market which is expected to show a 4-5% CAGR growth as there were limited funds, and staff
and the market was predominately controlled by 3M Company and Walmart. The alternative
would have been damping for the company as building an independent retail network would cut
into manufacturing costs due to either building a sales network or gainsharing with distributors
which does not make sense as due to heavy competition analysis the market allowed them to
capture 10%. This struggle to tap into the market pays a strong restriction as the company might
never be able to meet its full potential to generate revenue which is 50% of the wholesaler prices.
Limited Brand Promotion
Shifting to the veterinary market gave the company some traction, generated sales of 350k, and
allowed them to put the product to practical usage showcasing its usage. Even in this market,

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there was no sales force and distribution was through contractors which seemed to limit the
capability of the organization as animal veterinary is also a $0.95b market in 2017. With 53,000
establishments and the U.S. representing 40-50% of the market, no promotion was done to
market the brand. In the surgical segment, non-surgical treatments make up 27% and surgical
treatments make up 20% of the market totaling 47% which if captured could also be a billion-
dollar market.t If proper promotion was done, the product could easily capture the market with
its uniqueness.
Macro Assessment
Regulatory struggle in the human wound care market
The human wound care market serves as the best for generating revenue and had an overall profit
of manufacturing across all sectors at 5.1% with about a 35million patients per the year 2012-
2015 if Clottit could have successfully entered this market and created a position for themselves
they would have been able to tap into a billion-dollar industry. Due to regulatory issues (FDA
approval), these aspirations were halted as the military and hospitals were already interested in
collaborating with them to generate enough revenue for the company as it could take up to 7
years to obtain.
Limited to a segment of the animal wound care
The companion animal market was a portion of the whole segment which can be easily captured
as the products might be sold at premium rates to groomers if sold as one product in the retail
market then has the potential of capturing 100% of the animal market segment as 80% of the cost
of surgical treatments are overhead which will be limited if end-consumers have these products
at their disposal and will not be required to visit a doctor.
DECISION CRITERIA
1. Add a B2B model to pioneer in the field and showcase the uniqueness of the product
2. Funds should be used carefully and no longer wasted on getting approvals rather focus on
generating more sales
3. Increase brand promotion to properly capture the veterinary market
4. Expand in the veterinary market and keep the human market on hold for a while.

ALTERNATIVES

1. Maintain the status quo and continue using contractors for distribution
2. Building positive image and working on the new application in gauze form for the usage of
human wound care
3. Focus completely on the animal segment and reject the human wound care segment

REJECTED ALTERNATIVES
1. Maintaining the status quo and continuing to use contractors for distribution

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It is already evident from the case that the company is struggling to tap into the market due to
limited promotion and distribution channels. Maintaining the status only limits the capability of
the company to expand its reach within the market. This hampers the growth potential of the
company leading to limited revenue and profits. Generating sales is also crucial as it directly
measures the company’s value in $$.

2. Building and focusing on creating a positive image in human wound care

This could probably be a good long-term strategy as the care is a bigger target human wound
care market a 35billion patients compared to the animal wound care market which is at $ 0.95
billion market in 2017. However, given the regulatory struggle and the long period, it will take to
achieve FDA approval for the new product- up to 7 years, a considerable amount of time for a
startup with limited funds. Additionally, though the human market if focused on becomes a long-
term win by reducing 70% the cost of healthcare due to no certainty in the matter focusing on the
human market now would distract the company from developing its existing product line in the
animal wound care segment.
RECOMMENDATION
Focus completely on the animal segment and reject the human wound care segment
STEP 1 – Shift focus to the animal wound care segment and work on its development
One of the biggest deterrents for Protégé Biomedical was that it was not able to focus on one
market segment due to regulatory issues that had to shift from the market to which they were
more attracted leading to a divided focus between the two.

What is also there to notice is that the animal wound care market even though smaller still carries
a lot of potentials and can be tapped through technology as competition even though the present
is not as fierce as it is in the human wound care market. The competition is set apart through
consumer brands and pricing.
• Primary: Companion animal veterinary market (65.7%+9.1% =74.8%)
• Secondary: Mixed animal practices (6.3%)
• Tertiary: Equine Practices (5.8%)
STEP 2 – Increase value for shareholders and investors

The company is an unproven small startup with limited funding, no manufacturing capabilities,
limited experience in the market, and no sales network and if these limited time and attention and
leader are not applied properly the company will end up losing the initial funding of $650000 and
with no proven results will not be able to gain more funding which will lead to a decline in the
evaluation of the organization from $4MM.

Brands like Johnson&Johnson, Bayer, etc. have focused on capturing a particular market and then
venturing which should be the goal of the organization. If the initial sales move up then the value
of the company will go up increasing value for investors and shareholders.

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STEP 3 – Utilizing the Various Ps of Marketing Mix to Initiate better Brand Promotion and
Position
Protégé Biomedical can use various marketing vehicles to change the perception of the nuts
• Product and Market Research
Clottit can begin by conducting intensive market research to correctly measure the depth
to which it can penetrate the veterinary market and customer preferences. This will help
stay competitive and identify any new opportunities.
• Packaging Clottit
Once the product research confirms the claims and the target audience is expanded, the
same can be showcased by way of packaging. The product packaging can highlight these
qualities and change from highlighting just dogs to all animals benefitting from this. This
is where the Protégé biomedical campaign can be leveraged as the packaging highlights
the benefits of the product for all. (Exhibit 2)
• Competitive Pricing and Placement of Sales

With the market already dominated by brands, even though the product is unique they
need to set competitive pricing to set them apart and expand their sales from distributors

a) Strategic pricing – Since the majority of the cost is overhead (80%), the product
itself can have priced in a way that it reduces the overhead cost through faster
healing but still makes a profit.
b) Initiate B2B sales – Clottit can add a vertical of becoming a provider to all their
competitive brands, especially the ones that might want to acquire them. This
will be a fantastic source of new revenue for Protégé Biomedical and increase
dependency on its competitors.

• Promotion Techniques and Brand Positioning

With the target audience expanded in Step 1, Protégé biomedical now need to do
promotions as it is at a negligible state and restricts them from reaching the targeted
customer audience. One way to properly position the brand and promote it is through
social media i.e., Twitter, Linkedin, and Youtube – this will help spread awareness about
the brand at a faster scale and also build a professional network for the brand.

CONCLUSION
The recommendation focuses on selecting a market segment: animal wound care and correcting
the promotion of the brand in the mentioned segment. Protégé Biomedical needs to invest in
marketing strategies to ensure that the knowledge about the brand is no longer limited and hospitals
and clinics are aware of them. They should also focus on collaborating with such hospitals and
pharmacies. The final touch will be the B2B model to help them enter the market and penetrate it
while generating revenues.

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 Exhibit 1: SWOT ANALYSIS

Strengths Weakness Opportunities Weaknesses

Unique and innovative Lack of branding and Expansion into Competition from
product with patent marketing efforts international market established brands in the
approval addressing a market
crucial need of the market

Strong potential for Limited funds and Increased demand in the Economic changes or
growth and expansion in distribution channel healthcare industry downturn that might
various markets specifically for military affect the demand
segment

Competitive advantage in Not able to venture into Potential for partnerships Legal issues like stringent
the animal market due to the human market due to with hospitals for regulatory requirements
no staining and all natural restriction on FDA premium product
approval led to changing placement
the market segment

Exhibit2: Alternatives

Pros Cons
Maintain status quo and • Established network of contractors • Limited opportunity for
continue using contractors and distributors growth
for distribution • Cost-effective in terms of funding • Cannot monitor quality all
• Sense of familiarity the time
• Could led to delivery issues
Building and focusing on • Opportunity for growth as bigger • Stringent regulatory issues
creating a positive image in market • High production cost
human wound care • Create a positive image when • Uncertainty of demand due
competitive with other brands to competition
• High profit-margins
• Potential to capture large market
Focus completely on the share • May miss out on high profit
animal segment and reject
• Low regulatory barriers – easy • Growth might be limited
human wound care
market entry after a while
segment
• Opportunity to create a strong
brand and capture the market