Agile Planning in the Face of Market Uncertainty
By Guillaume Corpart
Whether it was COVID-19 a few years ago, the resulting supply chain issues that followed or the current trade battles that are reaching their global apex, medical supply and equipment companies are certainly no stranger to market uncertainty. In fact, you could argue that recent years have indicated that the only thing certain in this business is uncertainty.
The most recent uncertainty on many people’s minds, of course, is the looming threats of tariffs from the United States. The current proposal is a 10% baseline tariff on goods sent to the U.S. from most countries, with even higher tariffs threatened for countries such as Mexico, Venezuela, Nicaragua and a few others. Of course, this has created the additional possibility of reciprocal tariffs on U.S. exports to other countries, as well, further muddling the medical device market. Compounding the issue is the volatility of the tariff negotiations themselves—often on-again, off-again—which makes it even more difficult for companies to plan with any degree of certainty.
Though it hasn’t made as many waves, currently the EU and China are going through a similar battle over medical device restrictions that may have far-reaching implications, as well. The EU recently voted to ban Chinese companies from participating in public procurement tenders for medical device contracts valued at more than 5m Euros, which resulted in a similar ban for EU-based companies in China.
What all this means isn’t exactly clear yet, other than procuring devices or supplies from other countries, or sending them to other countries, without penalty is becoming increasingly difficult. Add those challenges to the usual supply chain issues, regulatory hurdles and inexpensive foreign competitors, and staying successful in the market is now more challenging than ever.
How to Stay Ahead
Of course, markets have always been fluid: That’s not a new phenomenon. But the current rate at which changes occur requires even more fluidity on your part as you craft your business strategy for winning contracts. The bottom line is that agility in your planning and objectives is more important than ever.
Strategy #1: Review plans and objectives frequently
Does your company have a sales plan that gets reviewed on an annual basis to meet your goals and objectives for the coming year? It might be time to revisit those plans more frequently: Quarterly, monthly, or even ad hoc as new situations arise. With all the volatility currently in the market, your company needs to be able to pivot as new challenges arise without it sinking an entire year of progress.
If your operation is large, then you should have even more opportunities for agility simply based on who you can turn to for supplies, manufacturing, distribution and other key facets of your manufacturing process. “Global supply chains are always under pressure, and the recent news regarding potential tariffs in the United States has only complicated issues,” says Marc Duocastella, General Manager of Philips Mexico. “Phillips handles these challenges by diversifying our manufacturing with factories all over the world. If one site has an issue, we have other alternatives.”
Of course, whether your company is large or small, it takes a concerted effort to truly make your company agile in the face of uncertainty. But by prioritizing it and making it a part of your day-to-day operations, even the largest brands with the most established processes can build more agility into their workflow. Today’s market environment just might demand it for continued success.
Strategy #2: Build brand loyalty
While being able to adapt is key to coping with market uncertainty, another core strategy for weathering the storm is a bit of a throwback, and that’s relying on strong client relationships. If you have developed true loyalty with a strong customer base, that tends to stick regardless of what market fluctuations occur — within reason.
While developing brand loyalty is an age-old tenet of any business, the methods for fostering those relationships have changed. One new approach that some companies have adopted is letting sales grow organically by recruiting select healthcare providers as “brand ambassadors” and letting them do some of the heavy lifting for evangelizing the value of your products.
Think of these brand ambassadors as social media influencers on a larger, more strategic scale. If you hand-pick the right people who are plugged in and can spread the good word about your products in the proper channels, that goodwill tends to grow all on its own even without heavy involvement from your sales team. Having someone outside your company as a proponent of your product also lends an air of authenticity to the proceedings and may bend the ear of others who are less likely to be receptive to conventional sales methods.
Regardless of your approach, market experts agree that a wide footprint of loyal customers is key to weather any market uncertainty. “We have a footprint of more than 400 people across Mexico, some who have been working with our company for over 30 years,” says Duocastella. “Our stakeholders are more like family than clients.”
Strategy #3: Research and share results
While positive word of mouth certainly doesn’t hurt in fortifying your brand during uncertain times, the other thing that resonates with medical professionals is hard data. Clinical evidence of sound reliability, strong performance and good safety all speak volumes to people considering your product. Specifically, improved outcomes over existing market solutions are also a key driver of sales and tenders.
Clinical research is likely a critical part of your company’s process already, so the key for your sales and tenders strategy is sharing those results with potential clients. If this data can be designed and distributed effectively for a more compelling impact, even better.
Strategy #4: Rely on quality
Ultimately, any effective sales strategy relies on a strong product at its core. Compelling products that fill a legitimate market need have a good chance of surviving the ebbs and flows of the market, regardless of how turbulent the waters may be. By starting with good products, evangelizing their benefits through clinical evidence and brand ambassadors, and being agile in your strategy for handling market fluctuations, you’ll be well-positioned for success in the ever-evolving marketplace.
Next Steps
Contact GHI to learn more about international sales trends and their potential impact on the healthcare industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.
