Boc Ohmeda Channel Strategy

In order to achieve its target of 11% annual growth in a comparatively slower growth industry environment, Ohmeda has to aggressively gain market share for its high-tech products over the next 5 years; some of which have recently not been successful in their market launches. Ohmeda must shift its channel strategy to a primarily specialized, direct sales force that can effectively communicate the value of its high tech products to the industry’s opinion leaders. The current approach of selling to only the end users of equipment and hospital administrative staff is insufficient to meet Rountree's targets. The shift will result in a sales strategy for which a highly trained and specialized work force will be organized into three specialized product groups: Anesthesia, Critical Care, and Architectural Products.

As evidenced by recent failed product launches, Ohmeda’s current sales organization is not well suited to implement Rountree’s new business strategy of being a provider of high-tech equipment. Sales generalists and dealers are clearly unable to articulate the value and educate the end users about new innovations, even though these new products are uniquely targeted to address the user’s key concerns of precision, reliability, and safety. Two important indications are the recent disappointing rollouts of the respiratory product, CPU-1, and the infant care product, Intensive Care Incubator (ICI). These state of the art technologies provide valuable patient information and clinical efficiencies, but the sales force is unable to gain traction with the clinical staff for purchases despite price and technical advantages. These game changing products represent a transformation in how therapists provide health care, so Ohmeda must be able to educate and support clinical staff throughout the sales and implementation process. Education and training of the Ohmeda sales force for high-tech equipment is certainly a glaring gap, and Ohmeda can look to recent success of a