The following paper will discuss a new product produced by the Cook Company that was originated by Bill and Gayle Cook in the early 1980s in the USA. The first part of the paper will concentrate on the description of this new product. I will provide the information about the product and show its significance to the world of medicine. In the second part of the paper I will try to estimate the funds needed for the production and distribution of the product as well as by means of which advertising channels it should be promoted.
Cook Inc is a company with a two-decade experience that has contributed greatly to the development of cardiovascular diagnosis equipment. The production of such equipment is essential for the successful practice of doctors and the wellbeing of patients because only with cardiovascular equipment the heart and blood vessels can be examined. In fact, the examination of the above mentioned can be done only by injecting radiopaque dye. Cook Inc specializes in producing the needed dye for injections, thus enabling doctors all over the United States and other countries to conduct appropriate diagnosis.
Cook Inc, as of now, produces four basic products used in cardiovascular catheterization: the plastic catheter, the spring shaped wire guide, the needle used to insert the catheter and the wire guide into the vessel, and the injector instruments to keep the dye and have it ready for rapid injections. Of course, Cook also manufactures small medical equipment like tubes and needles. Cook Inc is constantly looking for new products to add to the product line and currently it is in the process of producing a new product. Actually, the idea of this product was developed by one of the doctors working as distributor of Cook Inc products. The name of the new product is endarterectomy oscillator. This machine would help surgeons remove the unneeded material from the artery and insure the blood circulation through the collateral vessels.
It is not easy to estimate the profit this new product will bring, however it can be said that 3000 hospitals all over the United Stated perform operations that would require this machine, thus, for sure, the demand for it will be high. As for the cost of production, one oscillator would cost Cook Inc around $450. Under the circumstances it would be possible for Cook Inc to either engage in “skim the cream strategy” and sell the product for high prices, or conduct “market penetration” and set an affordable price.
When it comes to advertising, the company authorities have decided that in the case of the product they would need more marketing activities than just including the product in catalogues and introducing it at fairs. It has been decided that the sales people would be offered a 10% commission from every sale of the product that will encourage them to be more active. Additionally, Cook Inc. would start a direct mailing campaign and representation in journals. The costs of advertising will be high, though they are expected to generate high returns, thus advertising campaign for this particular product is a very worthy investment.
Already more than ninety operations have been performed using the discussed new product, and for sure many more will be performed in the future. Furthermore, not only this new product will be useful for the humanity, but it will also strengthen the position of Cook Inc as an innovative leader on the market and ensure future high revenues.