General Introduction 11
Vision and Objectives of the project
Abbott Diagnostics is a leading global provider of in vitro diagnostics (IVD), specializing in innovative instrument systems and tests across immunology, hematology, and clinical chemistry The company is renowned for its advancements in immunology assays, particularly for infectious diseases such as AIDS and Hepatitis Unlike its pharmaceutical and nutrition divisions, Abbott Diagnostics operates in a B2B model, targeting hospitals, reference labs, blood banks, physician offices, and clinics IVD products are regulated by health authorities worldwide, which restricts marketing efforts to scientific activities such as symposia, seminars, and sponsorship of scientific studies.
The core differentiation of an IVD product lies in its innovative technology and scientific applications An IVD product remains relevant in the market until advancements in science or technology emerge to enhance healthcare, which can take anywhere from several years to decades.
In early 2012, Abbott Diagnostics initiated a strategic plan aimed at maintaining its market leadership by focusing on "protecting ID," "growing IA," and leveraging "HEMA and CC." A key component of this strategy involves the launch of new hepatitis diagnostic assays, specifically the Hepatitis B surface antigen (HbsAg) quantitative assay and the Hepatitis C virus core antigen (HCV core Ag) assay Previously, these tests were conducted using a more expensive method that required 1 to 2 days for results Abbott's new approach reduces costs by 30% and significantly shortens the turnaround time for results.
With a significantly reduced processing time of just 45 minutes, the new assays offer comparable quality to traditional methods, enabling physicians to monitor patient changes more frequently and effectively This advancement not only enhances patient care but also addresses the high costs and lengthy procedures of older techniques However, Vietnam Abbott Diagnostics operates as a sales-oriented division, relying on direct sales activities to introduce new products to customers While some global marketing events are conducted, their effectiveness is limited, often leaving users unclear about the benefits and value of the products To improve the launch of new products like HbsAg quantitative and HCV core, a standardized marketing plan is essential.
Ag assays With a lot of advantages, these products will come to the physicians to support their treatment and the patient will be cared better
The marketing plan for Abbott Diagnostics’ new IVD products is usually set up for
The product life cycle spans 3 to 5 years, encompassing the entire growth stage before experiencing market decline due to potential substitutions Notably, the launch year is crucial, as it significantly influences the success of the marketing strategy.
The project is set up a marketing plan to launch HbsAg quantitative and HCV core
Between 2012 and 2014, Abbott Laboratories introduced innovative Ag assays in Vietnam, aiming to establish itself as a leader in the immunology sector With a focus on infectious disease diagnostics, particularly in hepatitis assays, Abbott seeks to leverage its advancements to gain recognition as a pioneer in this critical field.
Company
Abbott's Diagnostics Division boasts a remarkable history of innovation, marked by pioneering products and significant technological advancements This legacy of progress is upheld by a steadfast dedication to diagnostic research and development.
Abbott Diagnostics is a global leader in in vitro diagnostics (IVD), providing a wide array of innovative instrument systems and tests for hospitals, reference labs, blood banks, physician offices, and clinics With over 69,000 installations, Abbott emphasizes automation, convenience, cost-effectiveness, and flexibility The company has revolutionized medical diagnosis, transforming it from an art into a science and significantly contributing to the modern diagnostics industry through its dedication to enhancing patient care and reducing overall healthcare costs.
Abbott Laboratories established its resident representative office in Vietnam in 1995, and for over 15 years, the Abbott Diagnostics Division (ADD) has remained a leader in the Vietnamese IVD market, particularly in the immunological segment With representative offices in both Hanoi and Ho Chi Minh City, Abbott effectively serves the IVD market across the entire country, from North to South.
Abbott Diagnostics is one of the 19 business lines under Abbott Corporation, adhering to the company's branding system The Abbott Corporation is recognized for its distinctive "A" logo, accompanied by the tagline "A Promise for Life."
• Brand promise: "A Promise for Life - Turning Science into Caring "
Caring is central to the work we do and defines our responsibility to those we serve:
- We advance leading-edge science and technologies that hold the potential for significant improvements to health and to the practice of health care
We prioritize diversity in our products, technologies, markets, and workforce, recognizing that varied perspectives, when aligned with common objectives, foster innovation and enhance our ability to meet evolving health demands.
- We focus on exceptional performance – a hallmark of Abbott people worldwide – demanding of ourselves and each other because our work impacts people’s lives
We are dedicated to building trust with our clients by upholding the highest standards of quality and fostering personal relationships rooted in honesty, fairness, and integrity.
Our commitment to success for both our business and the communities we serve is rooted in the core principles established over a century ago: a focus on innovative care and a genuine desire to create a meaningful impact in everything we undertake.
The promise of our company is in the promise that our work holds for health and life
“Pioneering” - Leading-edge science and commercialization
“Achieving” - Customer-focused outcomes and world-class execution
“Caring” - Making a difference in people’s lives
Abbott is ranked among the top companies in the world for financial strength and workplace excellence by leading national publications, including:
Barron’s Ranked 24th on Barron’s “World’s Most Respected
Business Week Named one of the “Best Places to Launch a Career.”
DiversityInc Named one of the “Top 10 Companies for Diversity.”
Forbes Ranked 118th on the Forbes Global 2000 list (ranked by
2008 sales, profits, assets and market value)
Fortune Ranked 1st among the “Most Admired Companies” in the pharmaceutical sector
Ranked 80th on the Fortune 500 list of the largest U.S.- based corporations (ranked by 2008 revenue)
The Scientist Named one of the “Best Places to Work in Industry.”
Working Named one of the “Top 10 Best Employers Mother for
Source: Abbott Fact Book 2010 – www.abbott.com
Abbott Diagnostics aims to be the top in vitro diagnostic company, prioritizing customer satisfaction and economic profit We strive to establish ourselves as a trusted laboratory partner for clinical laboratories, hospital administrators, physicians, and technicians by delivering innovative science, diagnostic solutions, and services Our commitment ensures that laboratory professionals and clinicians have the essential tools to excel in their work, ultimately enhancing patient management and care.
Our extensive collection of diagnostic tools and tests is utilized globally in hospitals, reference laboratories, small labs, and clinics to assist in diagnosing critical health conditions, including infectious diseases, cancer, and diabetes, while also monitoring vital health indicators.
Source: Abbott Laboratories – www.abbott.com
Automation: ACCELERATOR Automatic Processing System (APS)
Software: Instrument Manager, Informatics Services
Transfusion: ABBOTT PRISM, Commander, Quantum II
Hematology: CELL-DYN Family instruments have provided efficient, flexible and dependable hematology products and solutions to laboratorians world wide for over
The ARCHITECT family of analyzers revolutionizes immunochemistry by offering an integrated portfolio of advanced immunoassay and chemistry instruments With innovative features such as the Robotic Sample Handler, FlexRate, and CHEMIFLEX, ARCHITECT systems streamline the process, allowing you to focus on essential scientific outcomes Contact your Abbott representative to learn more about our expanding range of solutions.
Abbott Diagnostics offers comprehensive assay menus:
Cancer Cardiac Drugs of Abuse/Toxicology
Fertility/Pregnancy General Chemistry Infectious Disease Congenitals Hepatitis
Special Chemistry Specific Proteins Therapeutic Drug Monitoring Thyroid
The following graph compares the change in Abbott’s cumulative total shareholder return on its common shares with the Standard & Poor’s 500 Index and the Standard & Poor’s 500 Health Care Index
Source: Abbott Financial Report 2009 – www.abbott.com
Figure 2.1: Performance graph of Abbott Laboratories in 2004-2009
Assuming $100 invested on 12/31/04 with dividends reinvested
Abbott generates its revenue mainly through the sale of a diverse range of healthcare products, utilizing short-term receivable arrangements Notably, around 50 percent of its consolidated net sales come from international markets.
For over a decade, ADD Vietnam has established itself as a leader in the immunological market for in vitro diagnostics (IVD) in Vietnam, consistently growing alongside the evolving market In the past five years, the company has achieved impressive sales growth, maintaining a double-digit percentage increase annually.
Figure 2.2: Sales growth of ADD Vietnam in 2005-2010
Source: ADD Vietnam Sales Report 2005-2010
Product
The ARCHITECT HBsAg assay is a chemiluminescent microparticle immunoassay (CMIA) on the ARCHITECT i System* for the quantitative determination of hepatitis B surface antigen (HBsAg) in human serum and plasma
HBsAg assays play a crucial role in diagnosing suspected hepatitis B viral (HBV) infections and monitoring the infection status in patients, determining whether the infection has resolved or if the individual has become a chronic carrier of the virus.
The ARCHITECT HCV Ag assay is a Chemiluminescent Microparticle Immunoassay (CMIA) designed for the quantitative detection of Hepatitis C virus core antigen in human serum and plasma This assay serves as a valuable tool in diagnosing suspected Hepatitis C infections and monitoring the infection status of affected individuals, helping to determine whether the infection has resolved or if the patient has become a chronic carrier.
Our comprehensive assay offerings will be available to customers as complete reagent sets, which include a Reagent kit, Calibrator, and Control To cater to the specific needs of our target audience, the Reagent kit will be offered in multiple packaging sizes: 100 tests per kit, 500 tests per kit, and 2000 tests per kit.
Source: Abbott Laboratories – www.abbott.com
*These assays are offered to run on Innovative and Quality Abbott integrated systems
Source: Abbott Laboratories – www.abbott.com
Situation analysis 19
External analysis
3.1.1 The Vietnamese IVD market overview
In 2010, the Vietnamese medical equipment and supplies market was valued at approximately US$515 million, equating to US$6 per capita Projections indicate a robust annual growth rate of 15.3%, which is expected to elevate the market to over US$1 billion by 2015, despite the per capita expenditure remaining relatively low.
The medical device market in Vietnam is experiencing rapid growth, with imports constituting approximately 86.5% of the sector In 2008, Singapore, China, and Japan emerged as the top suppliers, collectively accounting for 43.1% of the imports Although Vietnam's in vitro diagnostics (IVD) market is relatively small within Asia, it is expanding swiftly, showcasing double-digit growth rates.
In 2009, Vietnam's healthcare system comprised 1,063 governmental hospitals and 94 private hospitals, all equipped with medical testing laboratories, alongside numerous medical testing clinics and centers The Department of Diagnosis and Treatment Administration reported a significant increase in Immunochemistry tests, rising from 98,006,230 in 2008 to 124,228,570 in 2009, marking a remarkable growth rate of 126.8%.
In the coming years, the government will prioritize enhancing the healthcare system, leading to a rising demand for medical imaging equipment, intensive care tools, patient-monitoring devices, operating theater instruments, cardiac treatment technologies, laboratory diagnostics, and consumables As living standards and incomes improve, healthcare spending is expected to increase, particularly with more Vietnamese individuals participating in regular health check-ups.
(Source: Vietnam Business news - www.vietnambusiness.asia)
Vietnam, a young nation with a population of approximately 88 million, adds 1.2 million people annually while experiencing significant evolution in wealth and healthcare, leading to increased life expectancy Family sizes are shrinking, with the average now at 3-4 children, down from the previous norm of 10-12 The current birth rate of 1.9 children per woman falls below the 2.1 needed for generational replacement As of now, about 20.3% of the population, or 10.208 million people, are aged 50 and above, and by 2050, it is projected that 26% will be 60 years or older These demographic shifts will greatly influence Vietnam’s healthcare needs, the prevalence of diseases, and future pension schemes.
Vietnam's healthcare sector is poised for significant growth, particularly in the demand for testing and treatment of Hepatitis B and C With a rising population and increasing awareness of these diseases, there is an urgent need for improved healthcare services The country's evolving demographics further highlight the importance of addressing these health challenges, making Vietnam a critical frontier for healthcare advancements.
Hepatitis B and C are responsible for chronic diseases affecting hundreds of millions globally, making them the leading causes of liver disease and cancer Vietnam is classified among the countries with an intermediate to high prevalence of these infections.
Hepatitis B affects approximately 2 billion individuals globally, with around 350 million suffering from chronic infections Each year, an estimated 600,000 people succumb to the acute or chronic effects of this virus.
Hepatitis B infection affects 10% to 20% of the population in Vietnam, contributing to over 80% of liver diseases and cancers in the country Additionally, co-infection rates among individuals living with HIV are approximately 10%.
(Source: http://www.who.int/countries/vnm/en)
Figure 3.1: Worldwide Hepatitis B prevalence map
(Source: CDC Travelers’ Health - Yellow Book 2012)
Hepatitis C is a viral infection of the liver that is contagious and currently lacks a vaccine Globally, approximately 130-170 million individuals are chronically infected with hepatitis C, leading to over 350,000 annual deaths from related liver diseases.
Hepatitis C in Vietnam is a growing concern People who inject drugs have especially high prevalence of hepatitis C infection, with up to 98.5% of them infected with the virus in Vietnam
(Source: http://www.who.int/countries/vnm/en)
Figure 3.2: Worldwide Hepatitis C prevalence map
(Source: CDC Travelers’ Health - Yellow Book 2012)
The increasing incidence of hepatitis B and C in Vietnam highlights the urgent need for testing in blood and transplant donor screening, as well as in the monitoring of patient treatment.
The Ministry of Health's governmental management units include several key departments, such as the Diagnosis and Treatment Administration, Medical Preventive Department, Medical Environment Administration, Food Safety and Hygiene Department, and the HIV/AIDS Preventive Department These departments oversee medical testing laboratories along professional lines; however, there is currently no dedicated department responsible for the comprehensive management of these laboratories Additionally, the absence of a quality control center, reference laboratories, a legal framework, and standardized testing procedures highlights a significant gap in the Ministry's operational structure.
The enhancement of medical testing services, alongside other healthcare offerings, has not received adequate attention and care Additionally, there is a lack of integration among medical testing professionals regarding management practices and the differentiation of their services across various levels.
(Source: National Action Plan to improve managerial competence for medical testing laboratories from now until 2020 – Chapter 3)
Vietnam has emerged as one of Asia's fastest-growing economies, achieving an impressive average GDP growth of 7.6% annually from 2000 to 2009 This economic surge has significantly reduced poverty, with the official poverty rate declining from 58% in 1993 to just 20% in 2004.
(Source: CIA – The World Fact Book – Vietnam 27 Sep 2011)
In the coming years, Vietnam can keep this GDP growth rate The Economist estimates that GDP growth rate will stably increase until 2023 as shown in the figure below:
$276.6 billion USD (2010 est.) country comparison to the world: 42
6.8% (2010 est.) country comparison to the world: 40
$3,100 USD (2010 est.) country comparison to the world: 166
GDP - composition by sector: agriculture: 20.6% industry: 41.1% services: 38.3% (2010 est.)
Figure 3.3: Vietnam real GDP growth rate and Inflation rate in 2007-2023 ̇ Healthcare expenditure & investment
According to the World Health Organization's report on health expenditure, Vietnam has seen a significant rise in total health expenditure as a percentage of its gross domestic product (GDP), exceeding 7% Notably, the government's share of total health expenditure is lower than that of private sources.
Figure 3.4: National Medical budget in 2000-2008
Internal analysis
Abbott Diagnostics has experienced a decline in its market share within the Immunological segment of the IVD market, dropping from approximately 50% in 2009 to 33% in 2011 This decrease is accompanied by slower sales growth compared to the overall market development, impacting the current revenue of Abbott's Immunology segment.
Abbott Diagnostics' Immunological segment stands out as the leading business in the global IVD market and in Vietnam, where the company maintains a strong competitive edge.
In fact, the revenue of this segment brings to 78% ($11M) of total Abbott Diagnostics revenue in 2011 ($14M) And the Immunological business has kept the growth of 20-30% in 2007-2009: 2008 = 29% ($8M); 2009 = 22% ($9.4M) and 10% in 2009 – 2011: 2010:10% (10M); 2011 = 10% (11M)
According to ADD's 2011 annual Immunological sales report, the hepatitis assay group achieved the highest growth rate of 20% from 2010 to 2011, despite representing only $3.4 million of the total $11 million revenue This growth outpaced other groups in ADD Vietnam's Immunoassay menu, which averaged around 10% The hepatitis segment is projected to continue its strong growth due to an increasing number of complex patients.
Awareness: 100% current hospitals and clinics know ADD brand name
ADD product brands, particularly in the field of immunological instruments and assays, have a significant presence in Vietnam's IVD market Nearly 70 government and private hospitals and clinics across major cities such as Hanoi, Ho Chi Minh City, Da Nang, Hue, Nha Trang, Can Tho, and Haiphong, as well as in key provinces like Binh Duong, Dong Nai, Soc Trang, Binh Dinh, and Phan Thiet, are utilizing at least one of ADD's product brands.
Over the past 15 years, the Vietnamese IVD market has experienced significant growth, with ADD emerging as a leader in the immunological segment The brand is recognized for delivering high-quality, innovative products backed by excellent after-sales service Despite higher prices compared to competitors, customers prefer ADD due to its commitment to quality, innovation, and exceptional customer support By choosing ADD, they gain confidence in their ability to provide accurate diagnostic results and meet evolving demands in treatment therapies through cutting-edge ADD solutions.
Hepatitis B and C are significant contributors to chronic liver disease and cancer, affecting hundreds of millions globally Vietnam ranks among the countries with an intermediate to high prevalence of these infections, raising concerns about the increasing number of Hepatitis B and C patients in the nation The HBsAg Quantitative and HCV Ag assays play a crucial role in monitoring and managing these diseases effectively.
Therefore, the demand of testing these assays in screening of blood & transplant donors and monitoring the treatment of patients are significantly high
The Abbott HBsAg Quantitative assay is an advanced monoclonal immunoassay designed for the detection of hepatitis B surface antigen (HBsAg) This innovative assay plays a crucial role in diagnosing suspected hepatitis B viral infections and monitoring the health status of individuals infected with the virus.
Figure 3.7: Clinical review of a Hepatitis B patient
Source: Abbott Laboratories – www.abbott.com
The Abbott HCV Ag assay is a cutting-edge monoclonal immunoassay designed for the detection of Hepatitis C virus (HCV) antigens This advanced diagnostic tool is routinely utilized to assist in diagnosing suspected HCV infections and to monitor the health status of individuals already infected with the virus.
Figure 3.8: Clinical review of a Hepatitis C patient
Serological Pattern of Acute HCV infection
Source: Abbott Laboratories – www.abbott.com
- High brand image and awareness
- Leading position in Immunological segment, especially in Infectious diseases with 33% of market share
- Full menu of hepatitis assays with the best quality within the current diagnostic companies
- The first quantitative assays in the market
- Few competitors such as Roche and Siemens
- HCV core Ag assay have the approval of FDA for screening in Blood Bank
- The cost is 30% lower than the current quantitative methods (PCR) but the quality is nearly the same
- Government is increasing the investment of healthcare industry
- New distributors have low experience and slow in getting approval of Ministry of Health for new assays
- Poor infrastructure of healthcare industry in Vietnam (personnel, knowledge level, equipment investment)
- It is hard to change the mindset of Vietnamese doctors for applying new techniques
3.2.4 Key success factors of Abbott HBsAg quantitative and HCV core Ag:
- Deep understanding in Vietnam market thanks to long office establishment time (>15 years) and experienced & well-trained personnel
- Build successfully brand image and awareness
- New methods with low cost (30% lower than PCR) and easy to use
(because immunology assays just need
2 hours to get the result comparing with 2 days of the current methods –
- Complete full menu for Hepatitis diagnostic assays and can be use for screening in blood bank
- Potential high growth of IVD market in Vietnam
- Government focus with increasing investment in healthcare industry
- Premium choice for customers based on ADD’s guarantee on quality, innovation and customer support service
- High customer loyalty (contract is valid is 5-10 years)
- Easy to apply to the hospitals because the assays can used in all current Abbott instruments in the hospitals
Marketing strategy 35
Targeting
IVD market in Vietnam includes 3 main segments which are based on type of specialized diagnostic service: Immunology, Clinical chemistry and Hematology
- Immunology: biochemical tests that measure the presence or concentration of a substance in body fluids (serum, plasma, urine…) using immunoassay methods (Antigen-antibody complex)
- Clinical chemistry: biochemical tests that measure the presence or concentration of a substance in body fluids (serum, plasma, urine…) using chemical methods
- Hematology: blood tests to analyze human blood cells including red-blood cells, white-blood cells, platelets (blood-count)
Products in these segments are provided with 3 types: Medical devices, reagents and service; they are not sold separately but they will be included as one package for the customer
E.g When the customer buy an immunological instrument (medical device), they will buy the reagents of immunological assays to run on this instrument and they need to pay service fee for maintenance and trouble-shooting
The customers in this IVD market are hospitals and diagnostic clinics / laboratories in Vietnam This chart below shows the segmentation criteria based on potential customer’s characteristics
Figure 4.1: The segmentation criteria based on potential customer’s characteristics
Hospitals and diagnostic clinics / laboratories
The number of in-patients
According to the statistic data of the Ministry of Health, in 2009 we have totally
1063 governmental hospitals, 94 private hospitals, and all hospitals have set up the medical testing laboratories; and thousands of diagnostic clinics & centers in
Vietnam’s diagnosis and treatment system (Source: The Department of Diagnosis and Treatment Administration – www.kcb.vn)
The IVD Immunological segment provides many kinds of immunological assays: Cardiac, Cancer, Hepatitis, Retrovirus, Congenital, Metabolic, Thyroid…
Abbott hepatitis assays encompass a range of tests including Anti-HBc, Anti-HBc IgM, Anti-Hbe, Anti-HBs, Anti-HCV, HAVAB IgG, HAVAB IgM, HbeAg, HBsAg confirmation, HBsAg qualitative, HBsAg quantitative, and HCV core Ag The primary target customers for Abbott's HBsAg quantitative and HCV core Ag tests are hospitals and diagnostic clinics or laboratories.
- Have hepatitis clinical departments for hepatitis diagnostic and treatment (area of specialty)
- Be Government or Private with high potential for hepatitis assays
- Be at National, City and Province level
- Have Medium to Large size (number of in-patients) ̇ Attractiveness (segment size and growth)
According to ADD’s sales report in 2011, the total revenue of IVD Immunological segment in 2011 is about $33M in which ADD’s revenue is of about 33% (about
$11M), and hepatitis assays are of about 31% (about $3.4M) of the Immunological revenue
Furthermore, hepatitis market is still attractive with total available market (TAM) are $7M and the increasing of yearly requirement is 15%
Abbott aims to establish a new market segment with its innovative HBsAg quantitative and HCV core Ag assays As the first company to introduce these high-quality hepatitis tests, Abbott sets a new standard in the industry, surpassing competitors in quality and reliability.
The Abbott HBsAg Quantitative and HCV Core Ag tests offer a significant advancement in hepatitis diagnostics, enabling physicians to obtain quantitative results for Hepatitis B and C efficiently With a turnaround time of just two hours, compared to the traditional two-day PCR method, these tests greatly enhance the speed of hepatitis monitoring and treatment Additionally, they provide a cost-effective solution for patients, reducing expenses by approximately 30% compared to current diagnostic methods.
The healthcare industry is witnessing a new trend that enhances physicians' flexibility and confidence in managing hepatitis B and C Innovative quantitative methods for measuring the viral load of these infections enable better risk assessment and treatment strategies.
To utilize Abbott HBsAg quantitative and HCV core Ag assays, customers must install Abbott immunology diagnostic instruments, specifically the Architect i1000SR, Architect i2000SR, or Architect i4000SR Additionally, the reagents required for these assays must successfully win the hospital's reagent tender, particularly in government hospitals Currently, there is a lack of comprehensive guidelines, which affects physicians' confidence in frequently using these assays.
The following table outlines the high-potential target customers in Vietnam for ADD's promotion of Abbott HBsAg quantitative and HCV core Ag assays over the next three years This focus will include existing hospitals and clinics nationwide, with plans to expand the target market to encompass new facilities that open in the future.
Table 4.1: The list of current high potential target customers in Vietnam
5 HA NOI FRENCH HOSPITAL Hanoi
13 NHAN DAN GIA DINH HOSPITAL Hochiminh
15 TRUNG VUONG EMERGENCY CENTER Hochiminh
23 NGUYEN TRI PHUONG HOSPITAL Hochiminh
28 HCM POST OFFICE HOSPITAL Hochiminh
30 HOA BINH GENERAL HOSPITAL North
31 BINH PHUOC GENERAL HOSPITAL South
35 BAC LIEU GENERAL HOSPITAL South
36 BINH DUONG GENERAL HOSPITAL South
37 THONG NHAT DONG NAI HOSPITAL South
40 DA NANG GENERAL HOSPITAL Central
4.2 Re-Positioning strategy in Vietnam IVD immunological market:
Abbott HBsAg quantitative and HCV core Ag global business strategy
1 Strengthen the pioneering role of Abbott in Hepatitis diagnostic and treatment to secure the leadership in Infectious diseases (ID) market
2 Use ID to growth Abbott IA market
3 Use strong position of IA to leverage Abbott CC and Hematology market Abbott HBsAg quantitative and HCV core Ag Positioning statement:
Abbott HBsAg quantitative and HCV core Ag
- is the simple solution for laboratories and physicians to diagnostic and monitor hepatitis B and hepatitis C
- that addresses the increased diagnostic cost and time;
- through provide the new faster and cheaper methods to quantitate the number of hepatitis B and hepatitis C virus in the hepatitis patients
ADD Vietnam aims to implement a re-positioning strategy for Abbott's HBsAg quantitative and HCV core antigen products within the Vietnamese IVD immunological market, aligning with Abbott's global strategy.
In a competitive market dominated by Roche, which offers a comprehensive range of hepatitis assays at approximately 30% lower prices than Abbott, the latter is focusing on its HBsAg quantitative and HCV core Ag strategy Abbott aims to introduce innovative solutions for accurately quantifying hepatitis B and C viruses, ultimately providing a valuable new diagnostic tool for hepatitis patients in Vietnam.
Figure 4.2: Value curve of Abbott hepatitis diagnostic vs competitor (Roche)
Our free instrument service offers competitive production costs, transparent packaging fees, and favorable sampling margins for distributors We prioritize assay performance and quality, ensuring our pricing reflects the scientific sponsorship of our innovative solutions Our products are fast and easy to use, catering specifically to the qualitative analysis of Hepatitis B and C.
From 2009, ADD Vietnam has begun to charge for service The customers have to pay or sign service contract for maintenance or repair their instruments
Reduce • Production cost (decrease dead fill volume):
Abbott has to change their production process to decrease the redundant volume
Abbott has developed an economic package design to save cost on packaging process
ADD Vietnam is enhancing its explanations for each request for free goods, aiming to minimize the distribution of complimentary items to customers for non-scientific purposes.
ADD Vietnam has changed their distributors to decrease margin and gain more profits
Abbott still focus in developing the quality of Abbott assays performance in precision, sensitivity, specificity
The product quality is always maintain as the top focus strategy to secure Abbott brand, image and reputation
To position itself as a premium brand, Abbott aims to set its product pricing above that of competitors, while ensuring customers perceive the cost as reasonable and affordable.
ADD Vietnam still keep their leadership in scientific activities and sponsorship including overseas and local scientific seminars, symposia, national scientific projects…
• Fast and easy to use:
Abbott prioritizes customer-centric solutions, emphasizing the need for innovative treatments that are both faster and easier to use than traditional methods With extensive laboratory work and a pressing demand for effective therapies, the development of new methodologies is essential for improving patient care.
Create Grid • New assays for quantitative hepatitis B and C :
Abbott introduces innovative HBsAg quantitative and HCV core Ag assays that enhance the monitoring and treatment of hepatitis B and C These assays offer significant value to customers by reducing both costs and time compared to traditional PCR methods, streamlining the overall process for better patient care.
In the diagnostic market, the primary factor influencing customer decisions is product quality High-quality diagnostics significantly impact assay performance, quality control, reported results, and overall product stability, making it essential for customers to prioritize quality when selecting diagnostic solutions.
The second important thing is the Assay performance characteristics This
Fast and easy to use
New methods for quantitate hepatitis B and C virus
Innovative Best quality Leading-science
Ag quantitative and HCV core Ag
Objectives of the marketing plan
Regards to the re-positioning strategy above, the objectives to achieve in the first 3 years 2012, 2013, 2014 when launching Abbott HBsAg quantitative and HCV core
At the beginning of 2012, Abbott's HBsAg quantitative and HCV core Ag assays in Vietnam aimed for significant milestones over three years By the end of 2014, brand awareness was projected to reach 100%, with target customer recognition increasing from 70% in 2012 to 90% in 2013 Additionally, the perceived value of these assays was expected to rise to 70%, starting from 50% in 2012 Market penetration was also set to grow, with an anticipated 80% usage by target customers by 2014, up from 50% in 2012 Yearly profitability was projected to increase, with immunology revenue rising by 12% in 2012, 13% in 2013, and 14% in 2014 compared to the previous years Furthermore, Abbott aimed to enhance ADD Vietnam's market share in the immunology segment from 33% in 2011 to 48% by 2014.
Figure 4.4: Objectives of the marketing plan
Br an d aw ar e n e ss (R e c o gni ti on % ) B ra nd i m a ge (% ) M a rke t sh ar e%
Marketing planning 445
Marketing program
Abbott Diagnostic Division (ADD) operates as a B2B entity within the healthcare sector, specifically focusing on in vitro diagnostic (IVD) products regulated by the Vietnam Ministry of Health Consequently, the marketing of Abbott's HBsAg quantitative and HCV core Ag products is restricted to scientific endeavors, including symposia, seminars, and sponsorship of scientific studies, with public advertising and promotion being prohibited The initial year following product launch is critical for the success of the marketing strategy.
Abbott HBsAg quantitative and HCV core Ag: A new assays to quatitate the number of hepatic B and C virus of hepatitis patients
Applying Levitt‘s Total Product concept, Abbott HBsAg quantitative and HCV core Ag has major characteristics based on the re-positioning strategy as follows:
Figure 5.1: Abbott HBsAg quantitative and HCV core Ag assays’ major characteristics
ADD Vietnam is set to revolutionize hepatitis diagnostics in Vietnam by introducing innovative assays for quantifying hepatitis B and C viruses, specifically HBs Ag quantitative and HCV core Ag tests With Abbott's advanced hepatitis diagnostic assays, ADD Vietnam will emerge as a leading player in the immunological segment of in vitro diagnostics (IVD) for hepatitis.
Abbott HBsAg quantitative and HCV core Ag are two best in class quality assays
Generic (core benefits): assay performance, quality, fast and easy to use
Expected: application training, good inventory, ontime delivery, package design
Augmented: support service, scientific sponsorship activities, ready-to-use reagent composition
Potential: new markers for hepatitis B & C diagnosis of hepatitis
B & C patients for hepatitis diagnostic Therefore, The marketing plan will focus on the quality and assay performance as this is a key tool to create core differentiation of Abbott
HBs Ag quantitative and HCV core Ag assays
HBsAg quantitative is a crucial marker for measuring the antigen present on the surface of the hepatitis B virus, allowing lab technicians to quantify the virus in hepatitis patients Recommended by the WHO for screening blood donors, early detection of HBsAg through quantitative assays enhances the diagnosis and awareness of Hepatitis B status.
Table 5.1: the comparison of Abbott HBsAg quantitative with competitors
Company Abbott Siemens Roche Roche Assays name Architect
Recombinant of HBsAg mutant (positive/total test)
Total positive score (%) 93.87 91.57 85.82 73.18 (source: Sensitivity of five new hepatitis B surface antigen assays – Dr Ly Thoai
Duong – ISBT symposium in Taiwan 2011)
Table 5.2: Abbott HBsAg quantitative product generation
ARCHITECT HBsAg Qualitative II Sensitivity 0.041 to 0.049 IU/mL 0.017 to 0.022 IU/mL
Mutant Detection Great overall mutant detection
Great overall mutant detection with Better “123” mutant sensitivity
Specificity Initial reactive blood donors: 99.94%
(Source: Research Stage Gate 5 Review DR60973_v1 ARCHITECT HBsAg 1P97
ANS 2G22 Package Insert Ly et al Sensitivity of Four New Hepatitis B Surface
Antigen Assays Poster Hanoi ISBT 2007)
HCV core antigen (Ag) serves as a crucial biomarker for detecting the hepatitis C virus, enabling lab technicians to quantify viral presence This test is particularly beneficial for high-risk groups, including patients undergoing hemodialysis, immunocompromised individuals, and those living with HIV Compared to HCV RNA testing, the HCV core Ag assay is more cost-effective, requires only a single sample, provides rapid results, and involves a straightforward testing procedure, making it an ideal choice for confirming active hepatitis C infections (source: Journal of Clinical Virology, 2011).
Figure 5.2: The comparison of Abbott HCV core Ag assay with PCR – HCV RNA method
(source: schematic representation adapted from S.Muerhoff Viral Hepatitis - 2004,
Miedouge et al, J Clinical Virol - 2010 and Georgre Dawson Jpurnal Medical
- Product comparison: show the strong points and weak point of hepatitis assays in the market
The company aims to establish a competitive yet affordable pricing strategy for Abbott HBsAg quantitative and HCV core Ag assays, leveraging its first-mover advantage in the market with innovative quantitative methods for hepatitis B and C virus detection With a strong brand reputation built on leading science and superior quality in the IVD market, the company holds a prominent position in the immunological segment Additionally, the pricing will align with the acceptable range for hospital tenders as stipulated by Vietnam's Ministry of Health regulations.
The pricing strategy is flexible enough to follow the objectives to gain market penetration and sales volume as high as possible
The price is set up by the Regional Finance department (South Asia) and ADD Vietnam’s Country Manager
Target volume of hepatitis assays Discount type
Over 16,000 USD/month Buy 10 get 2 free (tests) 8,001- 16,000 USD/month Buy 10 get 1 free (tests)
4,000-8,000 USD/month Buy 20 get 1 free (tests)
- Pricing increase: No pricing increase in first 3 years, but the price will be updated
The communication strategy will follow the objectives of this marketing plan to gain high brand awareness and high perceived brand value
- Brand awareness: Launching events like Round table discussions, Symposia & Seminars
Examplus is dedicated to enhancing healthcare through science by organizing scientific seminars that focus on innovative medical applications and clinical practice guidelines for hepatitis diseases Additionally, we sponsor both national and international scientific events aimed at improving hepatitis diagnosis and treatment.
Abbott is committed to enhancing hepatitis diagnosis by launching high-quality and innovative HBsAg quantitative and HCV core Ag assays, completing a comprehensive testing menu The company actively sponsors the Vietnam Hepatitis Organization to promote these assays and supports scientific studies to evaluate the performance of HCV core Ag compared to the PCR HCV RNA method Additionally, Abbott adheres to a robust quality assurance management system that meets FDA requirements, ensuring improved manufacturing processes and product stability.
Communication message : nnewew mmeetthhooddss ffoorr ququaannttiittaattiinngg tthhe enunummbbeerr ooff HHeeppaattiittiiss BB a annd d CC vviirruuss
Communication tools: Advertising materials (posters, brochures, guidebooks, white paper – proof source, ), PR (round table discussions, symposia, sponsoring…)
Stages of the communication strategy: ̇ Stage 1: Hold round table discussions with the invitees of top KOLs in hepatitis fields
(3 separate round table discussions with top KOLs in Hanoi, Central and Ho Chi Minh City, 1 final round table discussions with integration of top KOLs in Vietnam)
Introduce new assays of hepatitis B and C diagnosis in international healthcare industry (clinical studies and successful stories);
Introduce Abbott HBsAg quantitative with new value “nneeww memetthhooddss foforr q quuaannttiittaattiinngg tthhee nnuummbberer ooff HHeeppaattiittiiss BB aandnd CC vviirruus”; s
The application of Abbott HbsAd quantitative and HCV core AG assays in Vietnam's healthcare industry is being discussed through round table discussions, which aim to enhance the understanding of these tools among key opinion leaders (KOLs) in the field This initiative will provide valuable reference information for clinical physicians specializing in hepatitis Additionally, scientific symposia are planned, targeting top clinical physicians in the hepatitis field across three regions: North, Central, and South Vietnam.
Introduce new trend of hepatitis diagnosis in international healthcare industry (clinical studies and successful stories);
Introduce Abbott HbsAg quantitative and HCV core AG assays with new value
“nneeww mmeetthhooddss ffoorr qquuanantitittaattiinngg tthhee nnuummbbeerr ooff HHeeppaattiittiiss BB aanndd C C vviirruuss”;
Highlight the Quality – Productivity – Cost characteristics Abbott HbsAg quantitative and HCV core AG assays :
Abbott's diagnostic solutions demonstrate exceptional clinical sensitivity and consistent reliability in performance Recent international research, including Dr Ly’s studies, highlights the superior accuracy of Abbott's HBsAg quantitative test compared to competitors Additionally, Abbott's HCV core antigen testing shows promising results when compared to PCR for monitoring hepatitis therapy, reinforcing its role in effective patient management.
Productivity: The comparison of Abbott HBsAg quantitative and HCV core
Ag with PCR in result delivering time
The cost-effectiveness of Abbott HbsAg quantitative and HCV core AG assays compared to PCR methods is a critical consideration for healthcare providers Through demand creation symposiums, top clinical physicians are informed about the benefits of these assays, enhancing their decision-making for future hepatitis diagnosis and treatment To further this initiative, a national utilization symposium will be organized, inviting lab managers from immunological testing laboratories in targeted hospitals and clinics to discuss the implementation of these advanced diagnostic tools.
Introduce new trend of hepatitis diagnosis in international healthcare industry (clinical studies and successful stories);
Introduce the innovative Abbott new assays which are Abbott HBsAg quantitative and HCV core Ag assays to complete Abbott hepatitis diagnostic menu
Choosing Abbott products offers customers significant benefits, including high quality, innovative technology, and a robust product portfolio, resulting in reliable outcomes, stable reagents, and excellent assay performance Abbott’s strong support services help save on total operating costs and optimize personnel efficiency through innovative systems The utilization symposium has raised awareness among sub-clinical laboratories about the advantages of Abbott’s HBsAg quantitative and HCV core Ag assays, encouraging clinical physicians to increase their usage Additionally, ADD Vietnam has focused on sponsoring international and national scientific events in the hepatitis field from 2011 to 2013, leveraging these PR strategies to capture the attention of target customers and stimulate market demand.
ADD Vietnam will handle marketing activities and support services, while distributors will adhere to ADD Vietnam's pricing strategy Distributors are responsible for negotiating with customers, signing contracts, importing products, managing inventory, and delivering to clients.
To effectively implement the marketing strategy following the launch of Abbott's HBsAg quantitative and HCV core Ag assays, ADD Vietnam must enhance its distribution systems by improving relationship management within the distribution network.
Mutual support (training their sales staff about new product information, training warehousing staff about ADD quality management system…);
Engage with them by a bilateral marketing action plan to ensure the coherence, control the execution by monthly meeting;
Well cooperation in maintaining a good inventory management to ensure enough stock for selling ̇ Review the distribution agreement:
Add stricter terms to decrease risks in inventory management, warehousing & QA management and pricing changes due to instable currency exchange rate;
Re-calculating the margin by balancing the total revenue with the total expenses in distribution process
The final phase of Abbott's marketing strategy for HBSAG Quantitative and HCV Core Ag involves persuading target customers to purchase these products through a focused direct marketing action plan aimed at enhancing the sales force team.
Training carefully on selling skills, product information
Motivation & control (interesting incentive and bonus scheme based on quarterly performance evaluation) ̇ Field action plan:
Distribute brochures, guidebooks about Abbott HBsAg quantitative and HCV core
Weekly plan to visit target customers: clinical physicians and sub-clinical laboratories
Local seminars for clinical physicians and sub-clinical laboratories in each hospital if necessary to educate much more about the product knowledge as well as hepatitis diagnosis solutions
Explore & customize their needs by offering an appropriate assay menu and price based on the company’s flexible pricing strategy and strong product portfolio
In the B2B sector, effective customer relationship management (CRM) is crucial for achieving customer satisfaction and loyalty Abbott Global emphasizes the importance of maintaining up-to-date customer information, including total available market (TAM), action plans, customer segmentation, target customers, and competitor insights Each Abbott member worldwide is required to contribute to this effort by updating the website database daily ADD Vietnam is also expected to adhere to this strategy, ensuring that the sales and marketing teams provide valuable input through their daily activities.
Budgeting
Abbott's immunology revenue in Vietnam is projected to grow significantly, with an estimated increase of 12% in the first year of launch (2012), reaching approximately $1.3 million This growth is expected to continue with a 13% rise in the second year (2013), totaling around $1.6 million, and a further 14% increase in the third year (2014), bringing the revenue to about $1.9 million.
Table 5.4: Budget for the communication campaign
Revenue Budget (%) Remarks Year 2011 est.$1.3M (+12%) 10% Very strong communication campaign with many events to gain high brand awareness
Year 2012 est.$1.6M (+13%) 4% Strong communication campaign to gain high brand identity (perceived brand value)
Year 2013 est.$1.9M (+14%) 2% Limited communication campaign to maintain brand identity and image
1% is the average percentage of total expenses for all communication campaigns per total ADD Vietnam’s revenue every year.
Implementation and control
Timeline: The marketing plan starts on 1 January 2012 and lasts till 30 March
2015 The financial year of ADD Vietnam starts from 1 April this year to 30 March of the following year
Table 5.5: The implementation of Abbott HBsAg quantitative and HCV core Ag
Planned deadline Preparation Scientific Prepare 1 Jan 2012 30 Jan 2012
Financial year 2011 Financial year 2012 Financial year 2013
Affairs team, Product Specialists advertising materials (posters, brochures, guidebooks, brand video ) Finance department and the management team
- Set up target sales and incentive/bonus scheme
Scientific Affairs team, Product Specialists &
Trainings about selling skills, product information
Sales team - Create special team to train on how to measure customer satisfaction index
- Assign one person as Key account manager
- Analyse to give directions for setting price range and detailed communication plan
- Select the list of the invitees
- Prepare for the round table discussions
(3 separate round table discussions with top KOLs in C,
M, R fields, 1 final round table discussions with integration of top KOLs in all
Scientific Affairs team, Product Specialists &
Sales team (North, Central, South)
- Select the list of the invitees
- Prepare for the scientific symposia with the invitees of top clinical physicians in HEPATITIS
28 Feb 2012 20 Mar 2012 fields (1 in North, 1 in Central, 1 in South at the same time)
Scientific Affairs team, Product Specialists &
- Select the list of the invitees
- Prepare for the national utilization symposium with the invitees of lab managers of sub-clinical departments (immunological testing laboratories) of target hospitals and clinics
Scientific Affairs team, Product Specialists &
- Analyse and evaluate the results/ ideas from 3 stages
- Discuss detailed Field action plan
Field action plan (bilateral with distributors)
- Weekly plan to visit target customers
- Coordinate with logistics team to prepare inventory
Special team Measure customer satisfaction index
- Evaluate and correct the field action plan
- Evaluate customer satisfaction index and give corrective & preventive actions
- Review key customer relationship management
- Review business achievements of a whole year
- Identify the gaps and update the plan
30 Mar 2015 (end of financial year) ̇ Tracking
Weekly meeting: Sale and Marketing team report the customer feedbacks and discuss about objection handling
In the monthly review, Regional Sales Managers, Market Specialists, Finance Managers, Operations Managers, and Service Managers assess sales growth, analyze market trends, identify key issues, and outline priorities for the upcoming month to evaluate and refine the marketing plan.
The yearly business review kick-off meeting focuses on identifying gaps and updating strategic plans Additionally, post-market surveys conducted annually from 2012 to 2014 assess brand identity metrics, including awareness and perceived values, as well as market penetration in terms of usage percentage, comparing these results against established objectives.
Problems to solve Recommendations Decisions Revised deadline
6 6 C Co on nc cl l us u si io on ns s
Abbott Diagnostics introduces innovative assays for the diagnosis and treatment monitoring of hepatitis B and C, providing physicians with a more flexible and efficient healthcare solution This new method not only enhances the speed of service delivery but also offers significant cost and time savings for patients.
Abbott Diagnostics Vietnam aims to uphold its leadership in the Immunology segment while regaining a competitive market share of 50% In alignment with Abbott Diagnostics' global marketing strategy, this plan focuses on safeguarding the infectious diseases market, expanding the Immunology assays, and subsequently leveraging opportunities in Hematology and Clinical Chemistry.