RoTech WoundVac Marketing Plan 2020

Healthcare Marketing 3020 - Group 8

David Mecham
Joshua Anderson
Sachin Sunny Mallick
Executive summary
The executive summary is a summary of the entire plan written in such a way that it can be
quickly read. It is similar to the abstract of a research paper. It is straight narrative and ​should
be more than one page (double spaced) but not more than three pages​. It should contain
highlights from most sections of the plan but not go into detail (not much on the budget except
the total, and little if any on the evaluation). This is what the CEO reads. If he or she likes it,
then he/she reads on. DO NOT start by writing the Executive Summary even though it will
appear first in the completed plan. It is a summary of the highlights of the plan and therefore
cannot be written until the rest of the plan is finished. This is another important skill for your
career. Unfortunately, you will encounter bosses, clients, committees, and the like who will not
take the time to read an entire report, plan, or proposal that you have prepared. For those folks,
you need to have the skill to choose the key elements for inclusion in an executive summary
that will satisfy their interests and perhaps cause them to want to look at the details.

This marketing plan is for Rotech Healthcare’s newest product, the RENASYS GO
Wound Vac. The following categories will illustrate a comprehensive plan for this new product.
They will include a complete overview of the Wound Vac, sales objectives, evaluation of the
competition, awareness strategies and a budget.

Rotech’s newest offering is an innovative method for treating wounds. This method is
meant to reduce recovery time for patients, while overall reducing pain. The target audiences for
this product are varied, but they best benefit patients with diabetes. This plan begins with an
in-depth situational analysis, designed to illustrate the background of Rotech Healthcare and the
services that they provide. The situational analysis lists the primary and secondary audiences
that should be targeted. A visual SWOT analysis is included to examine the competition for
Rotech Healthcare along with a summary of what Rotech can offer above their competition.

The subsequent section highlights our main objective for raising awareness of this new
product. There are included strategies for reaching this main objective along with tactics. This
section includes a timeline of our implemented materials complete with deadlines and a
comprehensive budget.

Situation analysis

Internal

Rotech Healthcare specializes in providing home medical equipment along with services
for sleep apnea and respiratory issues. Rotech contracts to hospitals and other healthcare
services along with providing to consumers as well. This is a national company with locations
across the country, including three major locations in Utah. Rotech offers products such as
home medical equipment and respiratory services. They have partnerships with large
healthcare organizations such as the VA and are currently working on additional partnerships
with Humana Insurance and the U of U. Rotech’s mission is to, “Get it Right the First Time by:
being a team and operating as such everyday and in every location, being an organization
devoted to clinical and service excellence, and by putting our patients and referral sources
above all else.” Since Rotech is a national company with a strong sales staff, they have the
resources necessary to market new products.
Wound Vac is a product that minimizes wound recovery processes. This product is new
to the Utah area as another way of treating wounds. The device works to decrease air pressure
on the wound, allowing for faster healing. The specific product that Rotech is using is called
RENASYS GO. RENASYS GO is a negative pressure wound therapy device that is applied to
your wound, which draws out excess fluid and protects it from outside contaminants to
ultimately help promote a healing environment. This is a widely used treatment in the hospitals
and at home.
RENASYS GO consists of a canister with tubing and a wound dressing kit. The dressing
is applied to the wound bed and covered with an adhesive transparent film that is attached to
the therapy device using the tubing and canister. The therapy device then draws excess fluid
from the wound into the canister while the adhesive film helps to prevent bacteria from entering
the dressing. It will improve blood flow to the wound via the vacuum, which can help progress
towards healing. This therapy device is electrical and can be plugged into a power outlet.
Primary and Secondary Markets
The primary market we would target is home care agencies treating older adults ages 45
to 64 living in the Salt Lake Valley. This is the market that would most benefit from a device
such as the wound vac. The customers of these home care agencies usually have some form of
health insurance and on average earn $54,009 annually. The approximate size of the population
within this age range is 237,117. While the wound vac can assist patients with different forms of
wounds, it can provide benefits for patients with diabetes. 12.2% of adults aged 45 to 64 in Salt
Lake County have diabetes. Therefore, approximately 28,929 of these adults have diabetes in
Salt Lake County have diabetes. Secondary markets we aim to target in the State of Utah
include: skilled nursing facilities, major hospital organizations, long term care facilities and the
general population ages 45 and older. Both of these markets will be able to fully utilize the
capabilities of the wound vac.

External
KCI and Apria manufacturer most of the same equipment Rotech does. Apria is a small
company that has a deal through Humana, forcing all Humana users to go through Apria as
well. That gives them a solid foothold with a lot of companies in the market. They are also local
and other companies like to work with locals. Intermountain and University of Utah hospital
systems are using KCI. They are a national company with a hold on both the manufacturing
and distributing ends, allowing for more control of the market.

Rotech KCI Apria

Strengths Local support from Contracts with U of U Exclusive contract with

DME offices and Intermountain Humana for now

Processes orders in Distribution and Local

hours compared to Manufacturing
days

Taking over Humana

contract

Weaknesses Launching new product Slow at processing Slow at processing

in crowded space orders orders

Not a manufacturer Not local Losing major contract

with Humana

Opportunities Exclusive contract with Exclusive with a major Long history of working
Humana coming Utah healthcare directly with patients
around provider
Continues to be a
Not a lot of DME’s Potential market for small, local provider
providing equipment in home health care
Utah agencies
 Not a ton of Home care
adoption of the Wound
Vac yet

Threats KCI has a stronghold Rotech under KCI has a stronghold

on the big hospitals negotiations with U of U on the big hospitals
right now to take away KCI’s right now
exclusive contract

Summary of Key Outcomes: KCI currently has a stronghold on the major Utah
healthcare providers, but Rotech has an exclusive contract with Humana coming soon. Rotech
has the ability to take a stronghold on the home healthcare market with their introduction of the
Wound Vac and are in talks with the U of U for an exclusive contract. Rotech also has the
means to process orders quickly, compared to KCI and Apria. Orders can be processed in a
number of hours with Rotech, compared to a number of days with KCI or Apria.

Objective(s), Strategies, and Action Plans

Objective1: Increase the total dollar amount of wound vac sales in Utah by 10% by December
31, 2020 as compared to December 31, 2019.

Strategy 1: Promote quality, value and effectiveness of Rotech Wound Vac to Home
Health Agencies and DME providers.

Actions:
● Host quarterly luncheon for company executives and buyers we
aim to sell to at our company headquarters on a weekday. Set
appointments at luncheon for sales reps.
● Send a sales representative out to facilities to demonstrate product
about three times a week.
● Develop a web page specific to Utah that has basic wound vac
information, prices, special discounts, and contact info.
● Demonstrate Wound Vac at medical conferences.
● Implement payment options and plans such as leasing and
payment plans.
● Partner with manufacturer rep. to provide training to all the clinical
staff. This to further be used as a selling point, i.e. you get
manufacturer training on the product if you buy through us.

Strategy 2: Promote quality and effectiveness of Rotech Wound Vac to general customers.
 Actions:
● Place free pamphlets in medical centers and diabetic supplier
facilities throughout the state to be replaced and refilled every 6
months with new information and design.
● Take Wound Vac booth to local health fairs and put on
demonstrations.

Calendar

January 2, 2020 - February 2, 2020 Create website and promotional pamphlet

material. Implement new payment
options and plans. Partner with
manufacturer rep. to provide training to all
clinical staff of buy facilities.

March 2, 2020 Host first luncheon

March 3, 2020 Place free pamphlets in medical

centers and diabetic supplier facilities

March 4, 2020 - June 1, 2020 Sales rep. appointments and cold calls 3
times a week.

March 4-5, 2020 MedTrade conference demonstration.

TBD (Optimally 1 week upon final Provide training to medical facilities

purchase of Wound Vac supplies) upon purchase of wound vac.

June 2, 2020 Host Second Luncheon

July 1 - July 27, 2020 Create new pamphlet material

August 3, 2020 Refill free pamphlets in medical centers

and diabetic supplier facilities with new
pamphlet material.

September 2, 2020 Host Third Luncheon

December 1, 2020 Host Fourth Luncheon

*Attendance at other ​local health fairs will vary based on TBD dates and times submitted
by conference officials.
Budget

● To create and run a website is $22 a month on Wix which works out for a total of
$264 for the year.
● We can print 1000 pamphlets for $280 through seagull printing. 1000 pamphlets
will allow us to place 50 pamphlets in 10 facilities 2 times in the year.
● We will have one sales rep. to represent the product to our prospective buyers.
His cost won’t be included in this report because his salary is already calculated
into other company costs outside this marketing plan.
● Mileage reimbursement for the sales rep. $0.58 per mile. The average drive for
the rep. will be 60 miles a day. That works out to be $38.40 a day and at an
average of 22 work days a month it’s $765.60 a month. We will spend
approximately $9,187.20 for the year.
● Luncheon involving 30 people at $100 per person equates a total of $3000.
Hosting those luncheons quarterly, we will have 4 throughout the year bringing
the total cost of $12,000 for the year.
● The Medtrade conference will cost $1000 per day for front door distribution of
pamphlets.
● Costs at other conferences will vary based on TBD prices from conference
officials.
● Implementation of payment options and plans such as leasing and payment
plans won’t cost the company anything other than salary of those employees
making decisions about plans and options. Those costs are already calculated
into other company costs outside this marketing plan.
● Partnership with manufacturer rep. to provide training to all the clinical staff won’t
cost the company anything because the manufacturer is invested in selling
product as well and will benefit mutually in the effort.

Grand Total for the Year: $22,731.20

Outcome Evaluation

Our outcomes are based on achieving the objectives that we have set. The main
objective that we set is to increase the total dollar amount of Rotech’s Wound Vac sales by
10%. The sales manager will assess the sales numbers throughout the year on a monthly report
to discover whether or not our goal of a 10% dollar amount increase is being met. This is based
on the new payment plans and options that we will provide. We believe that home care
agencies will be more responsive to a comprehensive leasing plan that is more affordable to
them. We will also evaluate the number of visitors to the website. This will allow us to see who is
following up from the salesperson visits and learning more about the Wound Vac. After each
luncheon, a questionnaire will be handed out for the attendees to complete. This questionnaire
will ask about their satisfaction of the product and their willingness to purchase the product. For
customers who purchase our product, we will send surveys after a few months to evaluate
facility satisfaction. The survey will ask about overall usage and customer satisfaction with the
product.

Process Evaluation

The effectiveness of our processes are based on the achievement of timely completion
and the quality of created material. Our web developer will report to the regional manager
weekly on the progress of the new website development until completion and then monthly on
the update of information and aesthetic changes as desired. Our marketing team will report to
our regional manager weekly on the progress of our marketing material. Our sales rep. will work
hand in hand with our marketing team to put on each luncheon and get invites out. They will
report on their progress weekly to the regional manager. The sales rep. will report how cold
calls and appointments went, number of sales, the amount of money brought in to date, etc.
weekly to the sales director. The sales manager will evaluate the process of having leasing
options for the Wound Vac. This will help us determine if we should continue offering these
different payment options.
References
Health, D. of. (2018). Complete Health Indicator Report of Diabetes Prevalence. Retrieved
October 5, 2019, from
https://ibis.health.utah.gov/ibisph-view/indicator/complete_profile/DiabPrev.html.

U.S. Census Bureau QuickFacts: Utah. (2019). Retrieved November 19, 2019, from
https://www.census.gov/quickfacts/UT.

Medtrade Spring: Home Medical Equipment Expo & Conference. (n.d.). Retrieved from
https://www.medtrade.com/index2/.

Services and Resources. (2019). Retrieved from https://www.rotech.com/.

Local Print Shop: Seagull Printing Services: Salt Lake City, Utah. (2018). Retrieved from
https://www.seagullprinting.com/.

Free Website Builder: Create a Free Website. (2019). Retrieved from https://www.wix.com/.

Negative Pressure Wound Therapy. (n.d.). Retrieved December 0AD, from

https://www.smith-nephew.com/key-products/advanced-wound-management/wound-therapy-are
as/negative-pressure-wound-therapy/.​