Finding The Perfect Product-to-Market Fit Shoulder Implant System
Summary
When an orthopedic implant company approached me for help, their shoulder product line was stagnating, and they faced the tough decision of exiting the market. Through careful analysis and strategic coaching, we identified a unique opportunity, repositioned their product, and achieved remarkable growth by targeting an unexpected customer base.
Problem
An orthopedic implant company had acquired a competitor to expand their shoulder product line. However, two years after the acquisition, their shoulder line was failing to gain traction. Sales were lackluster, and the company’s board and senior leadership were contemplating exiting the market entirely. Some executives believed it would be best to liquidate their assets in this segment and redirect resources to their core business of other medical devices.
The sales team was also disengaged, focusing more on the company’s flagship products. The Vice President of Marketing recognized the potential of shoulders, but was torn between allocating resources to their successful hip & knee products and revitalizing the shoulder line. The company sought my expertise to determine the best course of action: exit the shoulder market or invest strategically to make it a success.
Solution
Our approach began with an examination of potential customers and key stakeholders. We created comprehensive stakeholder profiles for shoulder specialists, hip & knee surgeons, the sales team, and the company itself. These profiles were crucial in defining the product’s target audience and understanding their primary needs.
To gain a deeper understanding of the market, we conducted thorough market research. Surprisingly, our findings contradicted the company’s assumptions. While they initially believed the primary target would be shoulder specialists, our research revealed that over 80% of shoulder replacements were conducted by hip & knee surgeons.
This shift in perspective reframed the shoulder market as a means to serve and generate additional revenue from the company’s existing customer base. Furthermore, not offering a shoulder solution risked inviting competitors into operating rooms during hip & knee surgeries.
We also discovered that shoulder replacements were considered complex and specialized, which made hip & knee surgeons anxious. Competitors targeting shoulder specialists had created intricate systems tailored to the needs of specialists. Our strategy was to simplify the product line to cater to hip & knee surgeons who do not have extensive experience with shoulder replacements.
Outcome
The leadership accepted our strategy, and the shoulder product line survived. The engineering team reimagined the instruments, technique guides, and clinical training to transform the system into a straightforward, user-friendly solution. After proper training and witnessing success stories, the sales team became adept at selling and supporting sleep apnea devices.
The company experienced rapid revenue growth in their shoulder segment, surpassing the growth rates of their core products. This was primarily due to targeting their existing customer base who were more inclined to adopt the simplified shoulder system. The unexpected success of this repositioning strategy not only prevented the company from exiting the market but also positioned them as a leader in the shoulder market.
In the end, the company achieved a perfect product-market fit by redefining their target audience and simplifying their product to cater to their core customer base.