New therapeutic drug treatments are rapidly entering the market. They're designed to treat all sorts of diseases from headaches to diabetes. It's a multi-billion dollar industry that's highly competitive. The challenge is how do you stand out not only from the competition but also to the consumer. The answer is you license a well-known consumer brand.
That's just what one therapeutics drug company did. They recently announced a licensing deal for rights to sell its patented diabetes supplement under the Kathy Ireland health and wellness brand. The deal is projected to generate over $800,000 in marketing fees plus ongoing royalties. The agreement runs seven years, and includes an escalating royalty rate on gross sales of 5% that increases to 7.5% on sales exceeding $10 million.
The product is a chewable dietary supplement that helps reduce blood sugar elevation. Rather than market it as a treatment for diabetes (which is more complex type of product marketing), the company is using a well-known consumer “personality” brand to position and promote it as a health and wellness supplement for people with diabetes.
The licensed brand gives them immediate consumer recognition and helps catapult their supplement to the forefront of consumer awareness. The brands' established reputation with consumers means they will be more inclined to try the product. Rather than spending all their money on promoting their unknown new product and educating the consumer about its benefits, they can focus their marketing resources on selling into distribution channels.
This is an example of where medical devices, therapeutic treatments, and many other products in the health care industry are headed – and that is toward consumer marketing, branding and licensing. It also is a great example of how licensing leverages an established customer base, sets you apart from the competition, and with the right brand, is one of the fastest ways to build sales.
The question is what is the right marketing strategy for your medical product, technology or treatment? Is it direct to the consumer, selling to the doctors, or reaching both target customers at the same time? Use the right strategy and you build your business. The wrong one can cost you a lot of lost time and money.
So where do you go to find out the best strategies for marketing your medical products and technologies?
The best resource is the upcoming Med Tech Marketing Summit on October 22nd in Irvine Ca. This one day conference features top speakers in med tech marketing, branding, sales and licensing.
You'll learn about changing customer segments in the medical device market – such as “value customers” – and why medical technology marketing is no longer simply raising awareness and increasing brand visibility. You'll learn about trends in the fast changing medical device market, and what you must to remain afloat in this highly competitive marketplace.
Most important, you'll hear from industry experts who will discuss how to recognize these emerging trends and capitalize on them to grow and expand your business. I'll be speaking on licensing and how to use it as part of your marketing strategy.
You can find out more about the Med Tech Marketing Summit at www.MedTechMarketingSummit.com. And for a limited time LCG subscribers get a discount of $200 off the conference price of $295. Just enter the promotional code BRENNER when you register.
Click here to register for the Med Tech Marketing Summit.
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience run the gamut from medical devices to food technology to consumer products. He's licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the number one kid's action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges, and startup events. His first book, Hidden Wealth: The Money Making Power of Licensing was released in 2019 and is available on Amazon.com. He's also a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.