This section will cover the analysis of the glucose meter market in detail. The market analysis will focus on the market size, market growth and prospective and key players in the competition and market share in the industry.
The global self monitoring blood glucose market is forecast to grow annually at a rate of 10.8% for the next seven years to reach $19,685 million in 2015. The market is mainly driven by the increasing diabetic population, lack of cure for the diabetes disease, increasing awareness of the diabetes disease condition, positive reimbursement policies of the insurers, technological advances aiming at minimally and non-invasive blood glucose testing methods and availability of blood glucose meters at a very nominal or no cost (GlobalData, 2009). The growth has been caused due to high fees taken by healthcare professionals for glucose testing leading to more patients opting for self monitoring of blood glucose levels. In addition to this the Asia Pacific and South and Central American countries are forecast to grow annually at a rate of 15.2% and 13% respectively. China, Brazil, India, Taiwan, Korea and Japan are forecast to grow above the market rate of 10.8% for the next seven years. India and China are projected as the most diabetic populous countries in the world. The high market growth forecasted in the Asia Pacific and South and Central American countries is primarily driven by the increasing diabetic population, increasing patient awareness through diabetes screening programs, very low penetration of the glucose monitoring systems in countries like India and China and highly insured populations of Japan, Korea, Taiwan and Brazil.
The world health organisation (WHO) also expects the number of people with diabetes worldwide to reach to 300 million by 2025 (Jones & Harrison (2002). This could be resulting in to further growth opportunity for the glucose meter market. This indicates that the demand for glucose meter is going to increase in the future and companies entering the business can still have an opportunity to make profits in the long run.
According to Global Strategy Inc. (2008), the revenue structure within the blood glucose monitoring industry leads to a far higher level of sales visibility and predictability than exists in many medical technology markets. In the blood glucose monitor razor/razor blade business model, the company either gives away or sells (at a very low price point) its blood glucose meters (the razors). The meters then drive the majority of company revenues though the use of disposable strips (the razorblades). The price of the blood glucose monitor is not considered very important, as it often is reimbursed by insurance if prescribed by a physician. However, in contrast to this, the cost of test strips is considered a large expense, by the consumer. The blood glucose monitor manufacturers derive the majority of sales and profits, from the sale of "disposables" - test strips, lancets.
The diabetes blood glucose monitoring industry is dominated by a small number of players, making the industry difficult for new companies to penetrate. Roche Diagnostics was the overall market leader in 2002, with a 37% share of the blood glucose meter market, and a 35% share of the blood glucose testing strip market. LifeScan, a Johnson and Johnson company, was second, with a 29% share of the market, benefiting from sales of the ONE TOUCH Ultra introduced in 2001. Bayer and Abbott Laboratories are lesser, but important players in this market. In 2004, following the acquisition of TheraSense, Abbott Labs became the number 3 player, with an 18% share of the market, followed by Bayer, with a 14%market share (Global strategy Inc, 2008).In addition to this Epsom (2009) also reported that the main market leaders for blood glucose testing products in 2009 in the industry were: Roche, Johnson & Johnson's LifeScan business, Bayer and Abbott, accounting for almost 75% of the entire market.
The global market for Continuous Glucose Monitoring (CGM) systems is forecast to reach $210 million in 2015 with an annual growth rate of 17%. Abbott Laboratories, Medtronic, Inc and Dexcom, Inc CGM systems have FDA approval and are currently available on the market. Medtronic is expected to have a higher market share in the expansion of the CGM systems market because of its 200,000 strong insulin pump customer base. Apart from this, Medtronic's MiniMed Paradigm REAL - Time Insulin Pump and Guardian CGM system come as a single device making it easier for the patients to read the blood glucose levels and adjust the insulin dose delivery accordingly. Abbott and Dexcom product portfolios consist of standalone Continuous Glucose Monitoring (CGM) systems.
According to Jobber (2007), market segmentation can be defined as the identification of individuals or organisations with similar characteristics that have significant implication for the determination of marketing strategy. This section will cover the market segmentation of Glucose meter. It will identify groups of customers with similar requirement so that our organisation can supply the glucose meter effectively according to the specific needs of customers. The main aim of market segmentation is that by grouping individual customers with similar needs it will enable our company to create a marketing mix that satisfies the needs of the segmented customers. We will segment our consumers for glucose meter according to three main criteria. We will segment our market according to the behavioural, the psychographic and the profile methods.
The key behavioural bases for segmenting consumer markets of glucose meter can be according to the following criterion: benefits sought, purchase occasion, purchase behaviour, usage.
Accessibility and convenience to get the glucose meter is an important issue to these consumers as it is like a basic need to check their sugar level every time. We will target our consumers according to benefit sought as they are interested in accessibility. This segmentation will enable us to provide consumers with the benefit they value. People will also value the performance and effectiveness of the glucose meter. For example Bayer one of the largest self-test diagnostic companies targets its consumers who like simplicity.
Consumers of glucose meter can be segmented according the their purchasing behaviour, those people who are innovators who would like to test new products and switch brands, Solus buyers those consumers who are brand loyal to the existing glucose meters suppliers such as Roche, LifeScan, Bayer and Abbott Laboratories. Or some customers would simply swich from one brand to another for discount or lower cost potion. For example ReliOn glucose meters are offered exclusively at WalMart and Sam's Club. ReliOn is owned by WalMart , WalMart has decided to offer the meters as a super low cost option for its customers. A sample of customers found that they could do without the frills, but liked the inexpensiveness of the ReliOn meters, particularly the low cost test strips.
The customers of glucose meter can be segmented on the basis of product usage: Usage includes usage in hospitals, clinics, doctor's offices and at-home usage. For example Roche is segmenting its marketing according to the usage segment and is the only supplier of glucose meter with out strips in UK to home self testing service.
Glucose meter consumers can be segmented according profile which includes the demographic variables such as age, income level and geographic variables.
Glucose meter can be segmented according to the age range of consumers. For example gray people (old age) are mostly exposed to diabetes and companies can focus on this age group instead of focusing in all age groups. They can also focus on young consumers with obesity as they are high risk to diabetes.
Glucose meter market customers can be segmented according to their income level. Some companies like ReliOn are targeting to the low income people as they are supplying cheap price glucose meter. For example:
The glucose meters market customers can be segmented according to their geographic location. For example companies can focus on specific countries depending on the risk and prevalence of diabetes with in a country. Home Diagnostics company's glucose meters are primarily sold in the United States and Canada. The company is over 20 years old and is located in Ft. Lauderdale, Florida
Guys we can include this in our introduction part:
A glucose meter is a device that measures the blood glucose levels or blood sugar levels. It indicates whether or not a person is suffering from diabetes. Blood glucose monitoring can be performed at home using a variety of blood monitoring products available in the market, which usually include glucose meters and test strips. The number of diabetes population is increasing worldwide. According to Jones & Harrison (2002), there are three main reasons: firstly being worldwide population is ageing making the number of people susceptible to age-related deceases such as diabetes; secondly globalisation has resulted in new dietary habits for much of the world. This habit can lead to obesity (leading cause to diabetes) in the new population group and lastly advanced medical technology over the past century have increased the average human life span. The longer life span also tends to increase the prevalence of age related diseases such as diabetes.
If this essay isn't quite what you're looking for, why not order your own custom Marketing essay, dissertation or piece of coursework that answers your exact question? There are UK writers just like me on hand, waiting to help you. Each of us is qualified to a high level in our area of expertise, and we can write you a fully researched, fully referenced complete original answer to your essay question. Just complete our simple order form and you could have your customised Marketing work in your email box, in as little as 3 hours.
This Marketing essay was submitted to us by a student in order to help you with your studies.
This page has approximately words.
If you use part of this page in your own work, you need to provide a citation, as follows:
Essay UK, Analysis of the glucose meter market. Available from: <http://www.essay.uk.com/free-essays/marketing/analysis-of-the-glucose-meter-market.php> [24-08-16].
If you are the original author of this content and no longer wish to have it published on our website then please click on the link below to request removal: