GROUP NO.

23
• Hewlett Packard(HP) was founded on
January 1, 1939.
• HP is an American multinational corporation
which provides technological and software
services.
• Its revenue is $14.5 billion in fiscal year 1991.
• Revenue of Medical Product Group(MPG) is
$900 million which is a sub division of HP.
• The Sono 100 b/w was launched in
December 1987.
• 1987 Interspec was the leader of non
hospital cardiology segment.
• Sonos 1000 did not perform well in the
market.
• Sono 100 C/F was launched to provide
colour flow technology and high reliability.
• Before the launch of Sonos 100 C/F, it had 3
competing products: Interspect Apogee
CX, Vingmed CFM and Bio sound Genesis
CFM which accounted for 90% sales in the
segment.
 MARKET SHARE (1990)
24.9 23.2

ACUSON

4.8 HP
ATL
6.3 20.6
TOSHIBA
16 DIASONICS
OTHERS

MARKET SHARE (1991)

28.6 24.6

ACUSON
HP
ATL
20.4
7.1 TOSHIBA
4.3
15 DIASONICS
OTHERS
YEAR DESCRIPTION

1980 HP entered imaging system division (ISY)

1987 SONO 100 B/W was introduced

1990 SONO 100 B/W failed due to delay in launch & meeting of
customer expectation

1991 SONO 1000 failed In the market & SONO 1500 launched

1992 SONO 100 C/F introduced

• Sonos 100 C/F is more technologically
advanced, easy to handle for non
hospital segments.
• Sonos 100 C/F uses mechanical arrays to
generate two dimensional colour images.
• Priced at $55,000/unit against
competitive products which were priced
from $68,000-82,000.
There are three basic channels:
1. Marketing communicational manager.
2. Product management and business
development.
3. Technical marketing
MARKET manager.
SEGMENTATION (1992)
Radiology

25% Cardiology
40%

35% Others
(OB/GYN)
1. Hospitals or imaging clinics (high and mid
performance ultra sound systems)
• In the united states 2000 hospitals with more
than 100 beds represented the core market fo
ultrasound systems.
• For cardiology systems the buying process us
began when the department perceived need
ultra sound machine.
2. Lower performance products were generally
purchased for physician offices, out patients
settings and except for some emergency roo
uses, other non-hospital settings.
• Direct sales force is more reliable
and economical then MRS
• Due to direct sale the profit
margin can be pushed it is very
important to have a dedicated
imaging sales force so that the
business prospers efficiently.
• Direct sales force can also attract
price sensitive costumers and non
hospital costumers because they
are trained on negotiations,
 Advantages Disadvantages
• Many marketing • Problems with MRS
managers favoured was that there were
use of MRS because spending a lot on
they were very training and
capable in monitoring. MRS and
demonstrating the customers desire for a
physicians long run.
• The MRS have • MRS were not under
greater knowledge the direct control of
of physician manager, the result is
reimbursement that MRS were treated
procedures as second class
• They are well citizen and were paid
 HP was late in understanding the customer
expectations
 Aggressive marketing is needed through dedic
MR to reach the wider market.
 Training your own sales team with good technic
marketing skills is equally important in order to
decrease the cost and increase the overall re
 Increase the investment in R&D to make produc
technologically advanced, less expensive and
‘reliable’ than the competitors.