Augustines Medical Case Analysis Essay - 1761 Words

AUGUSTINE MEDICAL, INC. CASE ANALYSIS THE BAIR HUGGER PATIENT WARMING SYSTEM I. Factual Summary: * The United States does not currently have an established warm-air technology blanket market. * The Bair Hugger Patient Warming System product is not a consumer device. The main users of this product consist of businesses and hospitals. * Hospitals will always be provided funding necessary to prevent hypothermia and other diseases; as a result a demand will consistently be common. * Augustine Medical, Inc. is using a push strategy. They are relying on distributors to push their products on to their prospective buyers. * Approximately there are 5,500 hospitals that have operating rooms and postoperative recovery†¦show more content†¦Augustine could set premium prices on the heater/blower unit as well as the plastic/paper covers to induce a sense superior quality. Being that the Bair Hugger Patient Warming System is an answer to many of the drawbacks hospitals incur from other treatments, the value proposition of these products could very easily sup port this proposed pricing strategy. Second Option – There are many methods currently being used to attack postoperative hypothermia. The Bair Hugger Patient Warming System must compete with these other techniques. Conversely to option one, Augustine Medical, Inc. could use a penetration pricing strategy to enter into the United States market of air-circulating blankets. Penetration pricing involves setting a lower price in order to achieve a large and possibly dominant market share. Augustine could set very low prices on both the heater/blower unit and plastic covers. This option focuses more on the ability to sell more products at a lower profit margin (quantity vs. quality approach). Third Option – The next pricing strategy involves a pricing strategy where a low price on one product, boosts sales on a separate, but complimentary product. More specifically, Augustine Medical, Inc. could give the heater/blower unit away free of charge. In turn, the organization could set a price on the plastic covers that would yield a highShow MoreRelatedHaving Our Say Essay9582 Words   |  39 Pageshttp://www.bookrags.com/studyguide-having-our-say/ Copyright Information  ©2000-2011 BookRags, Inc. ALL RIGHTS RESERVED. 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