Case Facts

1982- first artificial heart was implanted in Barney Clark. It was a large machine (Jarvik 7) that powered Dr. Clarks heart. This machine managed to prolong his life to another 112 days. Need of independent heart pump Levacor implantable heart pump

Contd..
2006 developed at worldHeart, Oakland, California
Working on magnetic levitation technology

the size of Jarvik-7

External device with small battery pack and controller

Question 1
Discuss the various phases during the process of launching a new product (Levacor Heart Pump)

Phases of new product launch

Opportunity identification and selection Concept generation Concept evaluation Development Launch

Opportunity identification and selection

80 million adults cardiovascular disease 50 million- suffers from heart disease. Heart pump industry is growing profitably Throatec - $201 million (HeartMate XVE) Need for independent heart pump

Concept Generation
Problem identification:
Size of the heart machine Longevity problem Risk of repeated surgery The same large machine cant be implemented to everybody

Problem solution: Magnetic Levitation Technology

Concept Evaluation
Concept test: Market size is given but nothing is mentioned about potential customer. 50 Million heart failures doesnt mean demand of 50 million heart pumps. Assumption: potential customers will like to buy the product but still do not know the exact potential market. Fully screened concept test: 3D version of the pump was made by CAD software Based on that a small prototype was made and used to watch a red colored liquid flow through it

Product Protocol / Definition

It gives an independent life to heart patients Magnetic levitation technology helps Reduction in friction and heat build up (ease in functioning)

Wear and tear of blood cells (Increase longevity)

It reduces the blood flow obstruction and thus reduces the life threatening blood clots

Development phase
Product test/ Field test: (Technical task)
2007 tested on a 67 year old Greek man
Man can climb the stairs on his own after 50 days of Levacor heart pump implantation Released from the hospital to live a normal life. In all it was a good success of the product

Assumptions and marketing Plan (Task)

Assumption: equipment cost is high as it is new and sophisticated technology Financials of the products is sustainable for premium customers. Need to segment customer on income basis to find out potential customers (Premium product) Data of approx. no of potential patients from different premium hospitals Target hospitals: premium hospitals like Fortis, AIMS etc. Advertising modes: medical magazines, Medical representative, presentations in medical conferences.

Question 2
What are the problem areas that company might face and what are the uncertainty that still exist?

Problems and uncertainties

Consistency in the success of the product can not be guaranteed (tested on 1 person only) Uncertainty about technology to meet long term industry standard Market acceptance problem New concept to market Fear of something external placed in abdomen Fear of tarnishing of doctors reputation as technology has never been implemented on small scale Forecasting of demand is very critical as it is not planned purchase

Question 3
What could company do to manage these uncertainties?

Solutions to meet this uncertainties

Increase the no of samples of product test to 10 and measure its success rate. Make appropriate stringent checks without which product cant be passed to insure the consistency in meeting industry standards. For patients Show the measured success rate to the patients Show videos of the treated patients and their opinion and experience about its both life.

Solutions to meet this uncertainties

For doctors: Presentation to individual and at annual doctors meet. Training to the doctors for handling the new product. Analysis of past records of the patients and then use proper forecasting technique (nave method) to forecast no of potential patients to have operational efficiency and avoid overheads. Can also to government to provide subsidies to middle class so than they can afford the product.

Conclusion
Product is good to launch Initially it may cost but with time it can be possible to reach upper middle class by having learning curve in producing the product

Questioning