The client is one of the leading manufacturers of advanced wound care and cosmetic products in Egyptian market. The client is in the manufacturing and distribution of wound care products for medical professionals to maximize quality of care at affordable prices in 85 countries. The client was interested in geographical expansion opportunities in other countries. The client desired to start this expansion in Germany from 4th quarter (October to December). For expanding their presence, they needed to formulate the business strategy for introduction of wound care products in the German hospitals.
On August 2018, Meticulous Research’s consultants received a study scope from client. As per the study scope, the client was majorly interested in knowing the procurement procedure heavily adopted by German hospitals for wound care products. Moreover, the client wanted thorough qualitative information on reimbursement process for wound care products in German hospitals. In order to gain clarity on the procurement procedure, the client had asked Meticulous Research to provide recently published (2015 - 2018) wound care products tenders of all major hospitals.
Meticulous Research® Methodology:
After receiving the client requirements, research collected some raw data using secondary databases. This helped to define and build the proposal for the client. After thorough understanding from secondary data, the team shared the statement of work (SoW) and proposal with the client. After receiving the consents from client on the submitted proposal, actual research project was initiated. The client had given about 4 weeks (20 working days) timeline for the entire study. To complete this, Meticulous Research® Team adopted following research methodology:
The research process begun with collection of information from secondary sources such as from the published German hospital surveys, company presentations, regulatory websites, tender publication portals, white papers, magazines, wound care journals, and internal database. From these sources, team sourced the information regarding type of procurement, participation and list of regulatory bodies during the procurement, reimbursement scenario for wound care products, and other relevant matters.
For knowing the factors responsible for selecting the suppliers or switching the brands, company presentations, white papers, business magazines, blogs, and articles were referred. As these sources containing information specifically mentioned from the companies’ CEO or other experts, more specific data regarding factors helped during procurement procedure was retrieved. However, the data from secondary sources needed to be validated by the industry experts. Hence, after thorough understanding from secondary research, we moved towards primary interviews.
Primary research phase begun with the designing of the questionnaire as per the information required to be validated. Various websites such as German wound care associations, companies, articles, and other social platforms were referred to find and invite the right authorities for the discussion. The team was able to obtain details of key wound care association members, heads of wound care distribution companies, procurement heads of German hospitals, members of group purchasing organizations, and other industry experts through paid and social platforms. This helped to get specific data within stipulated time from interviewers. Approximately 130 industry experts were interviewed for validating the secondary research findings and getting more clarity on procurement & reimbursement procedure and other grey market areas. Thus, secondary and primary sources helped to understand the widely adopted procurement process by hospitals in wound care market.
Getting information on recent tenders was one of the major requirements of the client. For that, various wound care association; organizations; regulatory bodies; and private, public, or charitable trust hospital sites were referred. After completion of both secondary and primary research, a project report was prepared as presentation containing specific data deliverable to the client.
Key Challenges Faced and Strategic Approach Used to Overcome Them
Collecting the tenders specific to the German hospital line wound care products was major obstacle as most of the German hospitals purchases wound care products through group purchasing organizations (GPOs). Thus, tenders were not directly published on government sites. Moreover, very few GPOs were providing data related to tenders. To overcome this, Meticulous Research® team decided to gather information through GPOs and government websites, present across The European Union (EU). The EU specific portals and some of the primary interviews also helped to collect the German hospital specific tenders.
The study revealed that most of the German hospitals are procuring medical consumables including wound care products in groups. More than 90% of the German hospitals perform group purchasing and through tenders.
The study helped the client to know the widely adopted procurement procedure by German hospitals for wound care products. This highly specific data helped the client to develop marketing strategy and expand its product portfolio in Germany accordingly. Further, the study also supported the client to understand the major distributors of wound care products with which it can strategically partner for smooth distribution of its products in the German market. Apart from this, the study also helped the client to understand the changing regulatory landscape with respect to procurement of wound care products.