Case Studies

Healthcare Products Channel Development Analysis

A hospital equipment manufacturer engaged nxtMOVE to assess how best to establish a successful direct-to-consumer distribution channel


Client Situation & Objectives

Gain an understanding of the market opportunities and barriers associated with opening and maintaining a direct-to-consumer channel in the home healthcare market.

  • Determine market size and growth rates
  • Identify which competitors have tried or have a retail distribution channel
  • Assess delivery logistics, financing, and technical services offered by competitors
  • Identify key success factors and lessons learned
  • Deliver tactical recommendations to guide the client’s creation of a direct-to-consumer channel
nxtMOVE evaluated several hospital equipment segments to assess retail distribution strategies and tactics

The approach

Healthcare Products Channel Development Analysis Figure 1

nxtMOVE determined that an online web channel offered the greatest opportunity at the lowest cost

The results

  • Although the existing retail market is relatively small, only a very small number of competitors sold directly to the end-customer

  • The client’s existing infrastructure allowed it to easily service the end-customer with almost no additional capital investment

  • Establishing an online “retail store” allowed field sales personnel to passively react to end-customer questions and purchase requests

  • Offering service contracts and home delivery are key components to success

The Client established its online retail channel, through which Individuals could purchase a select group of hospital products
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