Protecting your healthcare brand’s position in the face of commoditization
What do you do when your healthcare brands are leaders in their respective categories, yet their lead is constantly threatened by lower-priced competitors and lack of perceived differentiation in the market? We helped Bracco Diagnostics, Inc. successfully defend its brands and industry relationships under these challenging conditions.
Bracco Diagnostics, Inc.
Bracco Diagnostics, Inc. is a global developer of diagnostic imaging solutions. It produces and markets various contrast agents designed to be introduced into a patient’s body to help radiologists capture accurate medical images from scans by X-ray/Computed Tomography (CT), Nuclear Medicine, Magnetic Resonance Imaging (MRI) and Interventional/Diagnostic Radiology.
Studies show Bracco’s imaging agents offer better image quality and flexibility than competing products. While many of their products lead the market and represent a significant share of the U.S. diagnostic contrast media market, the company constantly faces challenges to their market position, including intense competition, perceived commoditization (some hospitals and radiologists perceive Bracco’s imaging agents as interchangeable with competitors) and intensely cost-conscious health providers (as hospital executives and radiologists seek lower-priced imaging agents to bring down healthcare costs, Bracco’s premium imaging agents and sales to providers are often targeted).
These conditions of intense competition and price pressure created serious challenges for Bracco management to maintain the position and value of key brands.