Nipro's New Wearable Wristwatch for Student Health Monitoring: Innovation in Medical Technology
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Introduction: Nipro's New Wearable Wristwatch for Student Health Monitoring
Nipro is a Japanese-based multinational healthcare organisation with a focus on pharmaceutical and medical device goods. Nipro creates cutting-edge solutions in fields including dialysis, infusion treatment, and diabetes care with a dedication to enhancing the quality of life for people around them (Companies, Nipro Europe Group, 2023).
Figure 1: Company Logo
Asia, Europe, North America, and Latin America are just a few of the global locations where Nipro conducts business. The business's activities include the production and distribution of medicines and medical equipment, with a focus on dialysis, infusion treatment, and diabetes care products. Considering the year 2022 it has been seen that the company scored a net sale of ¥494,789 million where 9% goes to Pharma Packaging business, 15% of expense goes to pharmaceutical-related business and most percentage of the share goes to medical-related business that is 76% (Nirpo, 2022).
Figure 2: Annual Report 2022
New Product Background
Brief about the new product
Nipro is a company that deals in medical devices, thus keeping the same theme they are planning to launch a new kind of wearable wristwatch specially designed for students. The main theme of the Wearable wristwatch will be used for monitoring the body temperature and will also give sound alarms to let parents or school teachers know that a kid has a fever. The device will also be designed in such a way that it can be linked with parents’ phones and smartwatches to monitor their kids. The wristwatch could include other functions like reminders to take medicine, reminders to drink more water and also to have lunch on time (Zehrung, 2021).
Figure 3: New Product sketch image
Key attributes of the new product
Attributes
Functions
Benefits
Body temperature monitor
Continuous temperature monitoring
Early detection of fever or illness
Sound alarm notification
Alerts parents/teachers of fever
Prompt action and care for the student
Link with parents' phone
Real-time data sharing
Parents can monitor their child's health remotely
Link with parents' watch
Health updates on parents' watch
Convenient health monitoring for parents
Medication reminders
Timely alerts for taking medicine
Ensures medication adherence and well-being
Hydration reminders
Prompts to drink water regularly
Promotes healthy hydration habits
Mealtime reminders
Alerts for timely meals
Encourages regular and balanced eating habits
Internal (Micro Analysis): Customer, Competitor and Company
Company
Micro analysis is the study of particular components inside a business setting. To obtain knowledge and make wise business decisions, it also covers the study of consumers, rivals and the organisation itself (ENVIRONMENT, 2020). The two strengths of the company are:
Some consumers have been frustrated by Nipro's limited product improvements (Mrs. Ahuja, 2019).
Competitors
The direct competitors of the Nipro Company are explained in detailed below with their proper market share:
Terumo Corporation: Terumo is known for its products that include blood transfusion, infusion, and cardiovascular systems. As of Financial Year, Ended March 31, 2023 the total revenue earned by the company is 820,209 (¥ million).
Figure 4: Total revenue of Terumo Corporation
Olympus Corporation: Olympus creates a wide range of goods, including equipment and medical gadgets. As of Financial Year, Ended March 31, 2023 the total revenue earned by the company is 881,923 (¥ million) (IFRS, 2023).
Figure 5: Olympus Corporation
Sysmex Corporation: Sysmex, is a significant participant in the healthcare diagnostics market. As of Financial Year, Ended March 31, 2023 the total revenue earned by the company is 45,784 (¥ million) (Corporation, 2023).
Figure 6: Total profit of Sysmex Corporation
One major competitor of Nipro is Terumo Corporation and two of its strengths and weakness are listed in detail below:
Strengths
Weakness
Strong overall in Japan.
Focal point of technological innovation.
Intense competition with other major player like Olympus Corporation and Sysmex Corporation.
Significantly depends on the Japanese market, which may be a drawback if There have been any negative changes to the domestic market or regulatory environment.
Customers
Hospitals, clinics, healthcare facilities, and medical professionals that use their goods and services for medical devices, medications, and equipment are some of Nipro Corporation's current clients. For Nipro Corporation, two key influences of buyer behaviour could be cultural factors and psychological factors. Cultural factors, such as the societal value placed on healthcare and medical innovation in Japan, can drive demand for Nipro's products. Psychological factors, such as the perception of quality and trustworthiness, can influence customers to choose Nipro over competitors ( Corporation,Nipro Medical, 2023).
Macro Analysis (PESTEL)
PESTLE analysis
Macro analysis is the study of the more extensive external elements, including as the economic, political, social, technical, environmental, and legal issues, that have an influence on an organization's business environment, which is also known as PESTLE in short(Buye, 2021).
Political
Constitutional monarchy and a democratic government coexist in a stable political context.
Government initiatives that support infrastructure growth, innovation, and foreign investment.
Strict laws and regulations in the financial, medical, and environmental protection sectors (Gerke, 2020).
Economic
Third-biggest economy on the planet with a booming technology and industrial sector.
Future economic development will be hampered by an ageing population and low birth rates.
Strong export-oriented economy, yet susceptible to changes in the global economy.
Social
A cohesive society that places a high significance on customs and cultural norms.
Growing healthcare and social security expenditures are a result of an ageing population and a declining labour force. (OECD, 2020).
Technological
Technologically advanced with a strong focus on research and development.
Leaders in robotics, electronics, and automotive industries. (OECD, 2020).
Environmental
High awareness and regulations for environmental protection.
Striving towards renewable energy sources and sustainable practices. (OECD, 2020).
Legal
Strict laws governing consumer rights, data privacy, and product safety.
Increasing attempts to overhaul the legal system in order to attract international enterprise. (Gerke, 2020).
Three of the above factors impact new product
Technology: Nipro has a large opportunity all due to the increased acceptance and use of wearable technology among Japanese students and parents
Social: The alignment of the wearable wristwatch with government initiatives and policies promoting healthcare and well-being among students is advantageous.
Legal: Ensuring compliance with data protection laws and addressing concerns regarding data privacy and security is crucial for Nipro.
SWOT
STRENGTHS
WEAKNESSES
The business may thrive in its understanding of medical technology and concentration on client-centric solutions.
Supplying state-of-the-art wearable equipment that enhances student health monitoring and promotes quick responses.
They stand out from the competition because to their commitment to quality, dependability, and user-friendly features, which enhances the quality of life for both students and their families.
The Nipro has weaknesses as a result of direct rivalry from three of its major rivals, Terumo Corporation, Olympus Corporation, and Sysmex Corporation.
Nipro has to improve how quickly they respond to customer care inquiries.
Customers have expressed dissatisfaction about obtaining replies that were delayed and about how long it took to answer their concerns or fix their issues.
Nipro's modest product enhancements, which lagged behind shifting market demands, have angered several customers.
OPPORTUNITIES
THREATS
The widespread acceptance and technologically advanced country with a strong focus on research and development is a significant opportunity for Nipro
The alignment of Leaders in robotics, electronics, and automotive industries is again one opportunity.
By prioritizing strong privacy measures and transparency in data handling, Nipro can build trust among customers, mitigating potential threats related to privacy breaches and negative perceptions about data security
Compliance with regulations related to medical devices, data privacy, and health monitoring is one of the major threats.
Growing healthcare and social security expenditures are a result of an ageing population and a declining labour force is also again one of the major threats
Marketing Strategy & Recommendations for the Future of the product
A complete plan and strategy for achieving marketing goals and successfully promoting goods or services is known as a marketing strategy. The marketing strategy usually comprises of segmentation, targeting, differentiation as well as positioning that will be explained in the below given segment (Furrer, 2006).
Segmentation: A market is segmented when it is broken up into several categories based on traits or behaviours that they have in common. Nipro could have divided the market for wearable wristwatches through a variety of strategies, including:
Geographic Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioural Segmentation
Where there are more schools or where there is a stronger need for health monitoring devices, Nipro could concentrate its efforts in particular Japanese cities or areas (Camilleri, 2017).
Within the student body, Nipro may concentrate on particular age groups or grade levels that range from class 6 to 12.
Targeting families with active lifestyles and tech-savvy parents
Nipro may classify groups based on certain behaviours, such as parents who take an active role in managing their child's health.
Targeting:
Targeting is the practise of choosing particular client groups or market segments to concentrate marketing efforts and product offers on.
Based on the segments identified earlier, Nipro has targeted the following segment(s) for its wearable wristwatch product:
Demographic Segmentation: Nipro may target the student population within a specific age range, such as elementary, middle, or high school students.
For the detailed target customer description, Nipro's ideal target customer for the new product could be:
Age: Elementary and middle school students (age range of approximately 6-14 years)
Gender: Both male and female students
Lifestyle: active lifestyle, engaged in daily activities, including school, sports, and extracurricular activities
Education: Attending public or private schools in urban or suburban areas
Income: Parents or guardians and is not a direct consideration.
Differentiation
Differentiation refers to the process of distinguishing a product. Its medical devices and wearable technology offer dependable and cutting-edge solutions that satisfy customers' needs while remaining accessible and affordable.
Positioning
The process of developing a distinctive image and impression of a product or brand in consumers' minds is referred to as positioning.
For the new product, the following positioning statement is advised: "Introducing Nipro's innovative wearable wristwatch, combining accurate health monitoring, parental connectivity, and personalised reminders, providing students with a comprehensive and reliable solution for proactive health management, ensuring peace of mind for parents, and fostering student well-being."
Figure 7: Nipro's Quality, Cost and Quantity
Marketing Mix
The 4Ps (Product, Price, Place, Promotion) are a set of tactical marketing tools and methods that are referred to as the marketing mix.
Product
A real or intangible offering that fulfils client demands or wants is referred to as a "product" in the marketing mix.
Levels of the New Product
Description
How Nipro Manipulated the Levels
Core Customer Value
Proactive student health monitoring and well-being
Nipro designed the wearable wristwatch with features like body temperature monitoring, reminders for medication and hydration, and lunchtime alerts, addressing the core customer value of promoting student health and well-being (Companies,Nipro Europe Group , 2023).
Actual Product - Quality, Features, Branding, Packaging and Design, Brand Name, Nutritional Label
- High-quality materials and craftsmanship
Nipro ensures the wearable wristwatch is made with durable materials and undergoes rigorous quality control to provide a reliable product (Camilleri, 2017).
- Body temperature monitoring and reminders
The wearable wristwatch includes the ability to monitor body temperature and provides alerts to parents and teachers when a student has a fever (Dean, 2016).
Augmented Product/Support Services Provided
Warranty options
Nipro provides warranty options to ensure that customers have peace of mind and can receive assistance in case of any product issues.
Place:
Place in the marketing mix refers to the channels and methods through which a product or service is made available to the target customers.
Nipro primarily utilizes a three-level channel of distribution, which includes the manufacturer (Nipro), wholesalers, and retailers. Wholesalers purchase the wearable wristwatches in bulk from Nipro and distribute them to retailers who sell directly to the end customers.
Figure 8: Three-level channel of distribution
Nipro currently utilizes a selective distribution strategy for its products. This means that the company carefully chooses specific wholesalers and retailers to partner with in order to distribute its products. The selective distribution approach allows Nipro to maintain control over the distribution process and ensure that its products reach the intended target audience effectively. By selecting specific distribution partners, Nipro can ensure that its products are available in relevant retail outlets and healthcare facilities that align with its target market. This strategy also enables Nipro to provide adequate training and support to its selected partners, resulting in better product representation and customer satisfaction. Overall, selective distribution helps Nipro maintain a strategic and focused approach to reaching its target customers.
Price
The cost that consumers are willing to pay for a good or service is referred to as price in the marketing mix.
Nipro primarily utilizes a value-based pricing strategy for its current products. This approach involves setting prices based on the perceived value and benefits that the products offer to customers. Nipro emphasizes the unique features, quality, and benefits of its medical devices, positioning them as superior and valuable solutions in the market. By aligning prices with the perceived value and customer expectations, Nipro can justify premium pricing and effectively communicate the value proposition to customers, resulting in increased customer satisfaction and brand loyalty.
Promotion
The actions and communication strategies used to educate, convince, and influence clients about a product or service are referred to as promotion in the marketing mix.
Currently, Nipro includes digital marketing and advertising in its mix of promotional strategies(Eram, 2020).
Example:
Advertising: Nipro uses television commercials and print advertisements in medical publications to showcase the features and benefits of its medical devices. This approach helps create brand recognition among healthcare professionals and target audiences, leading to increased trust and preference for Nipro products (Veleva, 2020).
Advantage: Advertising reaches a broad audience and allows for creative storytelling, increasing brand visibility and generating awareness.
Disadvantage: Advertising can be costly, and its effectiveness in driving direct sales may be challenging to measure accurately.
Recommendations
Aspect
Recommendation
Product
Continuously innovate and enhance the new wearable wristwatch by incorporating advanced features, such as biometric sensors or integration with health tracking apps, to stay ahead of competitors and meet evolving customer needs (Lee, 2019).
Place
Explore partnerships with online retail platforms or e-commerce websites to reach a wider customer base and leverage their strong distribution networks and digital marketing capabilities (Evolution, 2023).
Price
Implement a market penetration pricing strategy for the launch of the new product, offering competitive pricing to quickly gain market share and attract a larger customer base (Dean, 2016).
Promotion
Incorporate influencer marketing as a new promotional method for the new product, collaborating with relevant influencers in the health and parenting sectors to increase product visibility and credibility among the target audience (Kadekova, 2018).
References
Corporation,Nipro Medical. (2023). HIGH-QUALITY PRODUCTS FOR HIGH-QUALITY TREATMENTS AND CARE. Retrieved May 19, 2023, from https://nipro.com/info/
Buye, R. (2021). Critical examination of the PESTEL Analysis Model.
Camilleri, M. A. (2017). Market Segmentation, Targeting and Positioning. University of Malta.
Companies,Nipro Europe Group . (2023). Product and Service. Retrieved May 19, 2023, from https://www.nipro-group.com/en/our-offer/products-services
Companies,Nipro Europe Group . (2023). We're experts across different expertises. Retrieved May 19, 2023, from https://www.nipro-group.com/en
Corporation, S. (2023). Summary of Consolidated Financial Results [ IFRS ] . IFRS.
Dean, J. (2016). Pricing Policies for New Products. Harvard Business review.
ENVIRONMENT, T. M. (2020). THE MARKETING ENVIRONMENT. Gasha Technical Institute.
Eram, M. (2020). Importance and Efficacious of Advertisement. Bhagwant University of Ajmer.
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Furrer, O. (2006). Marketing Strategies . Université de Fribourg.
Gerke, S. (2020). Ethical and legal challenges of artificial intelligence-driven healthcare. Artificial Intelligence in Healthcare, 295–336.
IFRS. (2023). Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 <under IFRS>. IFRS.
Kadekova, Z. (2018). Influencer marketing as a modern phenomenon creating a new frontier of virtual opportunities. Slovak University of Agriculture in Nitra - Slovenska posnohospodarska univerzita v Nitre.
Lee, J. (2019). Sustainable Wearables: Wearable Technology for Enhancing the Quality of Human Life. MDPI.
Mrs. Ahuja, R. (2019). Medical Device Industry: At Present and the Road Ahead. Scholars Academic Journal of Pharmacy (SAJP) .
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Veleva, S. S. (2020). Characteristics of the digital marketing advantages and disadvantages. IOP Conference Series Materials Science and Engineering 940(1).
Zehrung, R. (2021). Investigating Opportunities to Support Kids' Agency and Well-being: A Review of Kids' Wearables. College Park: University of Maryland.
