Situation: SonoSite™ wanted to commercialize a new technology that made high-quality ultrasound imaging available in a miniaturized, hand-carried unit at a fraction of the cost of conventional machines. But, in spite of a $10 million launch campaign and rave industry reviews, sales simply did not take off.
Core Strategy Group’s Approach: SonoSite™ needed to reverse this trend quickly and test new procedures and concepts for future profitability. We soon realized that for SonoSite™ to grow, it had to make some changes. Primary and secondary usage and trend data were immediately evaluated to identify issues and growth opportunities. Research revealed that certain technological benefits SonoSite™ had been emphasizing were, in fact, not key purchase drivers with its target audiences while other audiences motivated by these benefits were being overlooked. More than 800 patients and 300 physicians were surveyed to identify the segments most receptive to the technology, to determine the drivers of purchase intent and to quantify the market potential offered by each. Five highly actionable groups rose to the top, and a new marketing strategy was developed that specifically targeted these audiences and leveraged their most compelling purchase drivers to accelerate revenue growth.
Results: After the new marketing strategy and programs were implemented, business results accelerated dramatically. SonoSite’s™ North American revenues nearly tripled, while the firm’s stock price nearly doubled from $14 in March 2001 to $25 in December 2001, adding over $125 million in shareholder value to the firm’s market capitalization.
The Core Strategy Group Difference: The problem that most companies face is that while markets have changed fundamentally, the practice of marketing has barely changed at all. Core Strategy Group combines traditional business focused marketing discipline with the aggressiveness and drive of an insurgent strategic model. It is a model built for clarity, speed and impact. This is the new model for companies who are serious about improving their market performance, revenues, share and return on marketing investment. It provides the most effective way for any organization to compete—and win.