Medical Aesthetics Devices Industry - Assignment Example

? Chapter MEDICAL AESTHETICS DEVICES INDUSTRY INTRODUCTION of America is the most tech-savvy and innovative nation in the world. In the field of medical and research, USA is the largest market for all pharmaceutical products and also the leader of bio-pharmaceutical research, holding 80% of the world research in biotechnological; aspects. This did not however happen to the nation from the ancient periods (Weinger, 2010). All this development has been meant to increase in a period dating back to 35 years ago. In this period, there has been a drastic change in the need to develop new medical facilities due to the changing trends in the medical sector. Fashion specialists indicate that fashionable trends start in big cities as centers of invention. However, developed societies like America have shown a big trend in the way the market has responded to the changes in the customer tastes, preferences and need for new devices in the industry (Mei~data, 2012). To this cause, medicine field had evolved from the aspect of just treating diseases to more sophisticated operations like changing the actual form of the human body. Specifically, the medical field has moved to the aesthetic level of changing the physical appearance, whole or in part of the concerned person (Moretti, 2009). With the current generation endeared towards fashion and beauty, the medical aesthetic devices industry has become very interesting although it is still very young, having started just close to 35 years ago. By 2012, the annual industry growth had grown to an all-time high of 11.9%. The devices used earlier on were based on medical use in which case high risk devices such as lasers were used. However, the needed changes raised the need to have better devices leading to introduction of other devices such as IPL, Electroporation and RF devices. Much safer devices have since been introduced into the market. Beauty salons, Spas and aestheticians then decided on the need to have these devices for their customers. They created a very important market segment (GBI, 2012). Over the years, the complexity of the industry has seen simpler operations carried out at homes and non-specialized places (Jesitus, 2008). This was a market niche that had developed leading to a more rampant consideration as another segment in the industry. These home-based aesthetic medical services became a center of consideration since there had to be pricing, assurance of efficiency of these products, product regulation and marketing (Frentzen, 2013). A strategic direction has to be therefore identified in the market that would effectively and efficiently not only be profitable to the companies in the industry but also serve the market well. Three niche markets are identified therefore for service by this industry; the medical field, home use and the beauty section. Companies have come up and focused in the market through different strategies that have allowed them to venture into different markets as stated by the niches above (Jassal, 2013). There are companies that have concentrated on any of the three choices the companies have come up with aspects of production aiming at devices that; hair removal, acne treatment, skin rejuvenation and many other aesthetic services (Kuechel, 2004). Research Aim Taking a reference at the research question, we get the idea that companies require a strategic choice for their medical aesthetic devices in the three identified market niches. The aim will therefore direct the companies on whether there is need to make changes to their current marketing strategy, expand them or invent new ones. This will also lead to the invention of the need to either segregate the market or come up with a clearer way of operating. Research Question and Objectives From the hypothetical statement indicated in the proposal, the research questions look to determine whether there is a need for a strategic change for market segmentation for a medically focused aesthetic company considering that there are recent changes and opportunities in the market. The paper will therefore seek to address the following research questions based on the above understanding; Is it necessary to have market segmentation for products in the medical aesthetic devices industry? What expected benefits to companies will be projected if the projected changes are effected in the industry? What specific changes are needed in the industry and how can these changes be effected? Should a company focus on a definite section of the segment or apply its operations in all the identified segments? From the above questions, a collection of objectives can be created; Objectives are made so that they can give support to the aims that have been formulated earlier. The objectives of this research paper are as follows; To find out if there is a need for a strategic change of market segmentation in the medical aesthetics industry To investigate the expected problems to companies if such changes take place. To find out the specific changes that are required and the means of achieving these changes without necessarily hurting either the business or the companies To verify whether companies need to stick to a single segment or vary the segments To ascertain the reasons for such an urgent change in segmentation niches in the industry. Background of the Research The aesthetics medical industry did not start as an independent industry. It was solidly part of the larger pharmaceutical industry that carries a larger section of the medical industry as a whole. Some of the market segmentation and operations in this industry have been adopted from the larger pharmaceutical industry and therefore the principles used are pharmaceutical principles. For instance, markets for Over the Counter Medicines (OTC), biologics and generics have all shown continuous growth over the year 2010 and have become very competitive (Quinn, 2005). OTC medicines were related with the elderly more than the youth. Relating to aesthetic values makes it not very relevant as the elderly have little need for beauty. Self-medication and home use was always needed for self-medication and first aid purposes. There was need to therefore create a difference between production and supply of these drugs leading to a need to see whether the companies themselves need to segment the market. As these changes took place, different trends arose leading to further considerations for the need to test segmentation. Frost and Sullivan (2013) identified five trends that generated the direction of the technology in the field. Wilkie and Moore (1999) also indicated that companies that find themselves in some unfamiliar market trends are usually forced to consider further breakdown in the segmentation in operations. First, the ability of the companies to create an improvement in interoperability through functionality as well as streamlining their flow of operations would make them operate easily. It should be known that clinical environments as stated consisted of use at home, for medical purposes and beauty. If the operability of these devices was increased through companies concentrating on given segments, would that lead to an increased efficiency? Secondly, there is the issue of big data kept by the companies based on non-breakage of the devices into segmented applications. This means that information about a given set of devices would be set to exist as separate data instead of setting all the data together (Maley & Saunders, 2007). It was stated that USA owns more than 80% of this industry and therefore the data would be overwhelming. Frugal innovation is another emerging trend in the industry that is trying to make the whole industry seek to consider segmentation of the devices. Companies have been put under pressure to keep the prices of the devices as low as possible although there is an observed increase in the demand of these devices (Sharma, Gopalkrishnan, & mehropa, 2010). Frugal innovation especially for the emerging markets that were initially never believed to known this information is therefore very crucial. The idea of multi-functionality as a trend that has affected the companies cannot be underrated. It has been noted that specialized devices are being ruled out of the market leading to the need for companies to venture into (or try to) segments that would involve provision of an aesthetic device for a collection of uses (Buntz, 2011). The US is greatest center of the aesthetics devices industry. Other countries stated coming into the business for production in the same industry. The market has however expanded to countries especially those in the emerging markets such as China and Brazil. The expansion of these markets, the niches and the segments has closed in on the companies involved in manufacturing in trying to create efficient and productive supply chains (Doole & Lowe, 2008). From the trends that have been witnessed over the years, market research analysts have indicated that target populations (middle income and upper income women) will be seen to double over the years as time goes and markets expand. The figures of market segments that have been able to develop by virtue of their ability to afford these devices have grown over the years and the future projections in the different countries are as follows. This is in view of the year 2015: Country Growth Rate (expected % growth by 2015) USA 3.7 Europe 8.9 Brazil 14.3 China 14.3 Source: BCC Research The above growth rates indicated a need to specialize in a specific area by the manufacturing companies or continue wholesome production. It would also be necessary for the companies to consider whether they would concentrate in any of the three niches of segmentation required; beauty, medical and home. This information therefore leads to the market companies planning to venture into practices that will see them decide on the choice of market segmentation that suits the medical aesthetics industry well (Capon & Hulbert, 2007). The complications created by the above named trends make it very difficult for operators to decide on the strategy and price that is necessary to be effective in the market. This paper therefore delves on the exodus of the industry from the pharmaceuticals industry, through the effective trends that shape its changes creating a need for effective study into market segmentation to manage them. Therefore the entire background information has been built along the lineage of the emerging markets. Rationale for the Research Topic Massive development to the current life and markets has been done by the aesthetics devices industry (Dominguez, 2012). Hospitals that are better equipped with better equipment to treat medical conditions that were impossible during the previous periods have become commonplace. This has been due to the research that has given rise to discovery of all equipment that would be used for all operations for the specific purpose. In recent years, the devices that have been used for normal operations have also been serving the purpose of providing aesthetic value to a person in view of body value services as indicated in the introduction (Broncair, 2009). This was a period when the devices were used only for aesthetic devices. However, more discoveries into the field have led to discovery of devices specifically to be used for home use and beauty purposes (Eby & Myra, 2009). This destroyed the market homogeneity for supply of these goods leading to companies requiring a modality to re-plan their strategic objectives. According to Transparency Market Research ()2013, the medical aesthetic devices industry has shown a great level of vibrancy when it comes to customer responses leading to modified uses as opposed to the previous homogeneous uses that were witnesses earlier. An increment in this use diversity is bound to affect the operations of the market if not well checked. Such a crash in the market can only be checked if the industry players check on their marketing abilities and segmentation probabilities. From the basis of the need to make modifications in the running of the industry, we get the rationale for this research paper. Research and Markets (2012), a consulting firm indicated that a confusion in the market had been realized and there was need to research for a way of streamlining it clearly so that there is effective running. Strategic choices therefore need to be adopted by the players in the industry so that there remains a balance as far as customer satisfaction is concerned and also keep the profits of the companies intact for continual operations (Fill & Fill, 2004). The rationale also lies in the assessment of the impacts of the strategies on the existing market. This lies in view of either the market expanding to other countries such as China, India, Brazil and Europe. Scope of the Research The scope of any research piece of work must always consider the effective value to be included from the beginning to the end. The extent to which the work covers must be indicative of an identified set of objectives and must therefore be very comprehensive. In this aspect, this report is supposed to provide an exemplary relationship between the differences that have taken place since the innovation of this industry. As has been seen, the medical aesthetics industry has undergone a very drastic change and from the table in the background section, the foreseeable future indicates strategic growth rates in sample countries of the world. Research is considerable of a collection of resources to be effective (Ascher, Brones, & Chignon, 2013). In this interview, information will be collected by interviewing a collection of executives in which case the interview questions will remain in the scope of the objectives. This is indicative of primary research that will give first-hand information about the levels of segmentation in the industry. To remain within the same objective scope, secondary research will be done so that published information can be obtained about the same industry. This involves a large amount of time, hard work and financial input. From the set objectives, the research at hand has a collection of information, tangible to the market, companies and other stakeholders in the market. Therefore, reaching out to all these is important for the cause of the research work and the amount of information obtained as well as work requirement as per the objectives stated. The paper therefore has a very wide scope as per the verified information in asserting the future of the medical aesthetic devices industry. The findings of the paper will effectively help in determination of whether the strategic implementation will be effected. Given the large market that has been seen to develop, research along the scope will help create a specific operation route for each company and effectively develop the roles that each stakeholder must play to enable effective development. Outline of the Dissertation A research paper needs to have a very systematic flow depending on the arrangement of the whole piece of work. This paper will constitute five chapters. A collection of sub-chapters will accompany it to oversee explanation of the main ideas. The outline will be as follows: Chapter 1: Introduction This provides a start to the paper. This introduction provides the ideas and basic concepts to the whole topic about segmentation of the aesthetic medical devices industry. It also explains the objectives and as well as the questions that target to explain the aim. It also provides the background for the paper and puts in place the actual arrangement of all the ideas in the paper. Chapter 2: Literature Review This chapter will provide a widespread knowledge on aesthetic medical devices industry. It will give the ideas that other writers have expressed on the same topic and in-depth knowledge that has already been found on the industry. Chapter 3: Research and Methodology This section will present an overview of the research methods that will be used for collection of both primary and secondary information in the industry. Chapter 4: Findings and Analysis In this chapter, the findings as found out in the research above will be analyzed based on the findings realized. Chapter 5: Conclusion and Recommendation This chapter provides a key development about the whole piece of work as provided in the whole research paper. The conclusion will present a summary of the whole paper and the subsequent recommendations for the industry to adopt. References Ascher, B., Brones, L., & Chignon, T. (2013). International Master Course on Aging skin. 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