Years of underinvestment in marketing and lack of consistent processes undermined a medtech company’s ability to innovate and launch new products. Fragmented marketing roles and poor alignment with R&D and the supply chain compounded stagnation of a too-tactical approach.
- Reality check: ZS evaluated the company’s current capabilities using ZS’s proprietary Marketing Excellence framework of best practices and industry benchmarks. The company’s limited marketing budget of 2% of revenue (versus peers’ 5% to 9%) flagged a key gap, and opportunity to rethink investment to fund innovation.
- Gains from closing gaps: ZS quantified the magnitude of capability gaps and the positive business impact of closing those gaps to enhance visibility, collaboration, efficiency and effectiveness of marketing and product development.
- Portfolio strategy: ZS built a road map to transform the organization from a tactical, product-oriented mindset to a solutions-driven portfolio management strategy that aligns marketing, R&D, supply chain and regions.
- Product development prowess: A new product destined to fail in one country was re-examined, modified and launched successfully in 30 other countries, a feat made possible by the newly established portfolio management capability. In one year’s time, that new product generated 40% of the business unit’s total revenue.
- New view on spend: Working closely with company stakeholders, ZS ushered in progressive thinking about investment in marketing excellence and secured funding to drive innovation.
- Growth: The company’s stock price rose and market cap doubled in two years.