Emerging Companies and Commercialization--Renaissance consultants

Commercialization/Acquisition

Successful commercialization usually requires research skills combined with technical knowledge. It requires an in-depth analytical ability, combined with a keen marketing insight. The ability to clearly communicate the rational and results of the findings is essential. The fact that the product has a perceived need does not necessarily mean that it will be a commercial success. Taken from our files, the following case history illustrates both this and Renaissance consultants' judgement.

Type of Company:	European manufacturer of biological testing products
Type of Ownership:	Public: Subsidiary of Major European Healthcare Company
Position:	Commercialization Consultants

Problem:	A leading European manufacturer of biological testing products had developed and was successfully marketing an analyzer system to the European market. Company was attempting to introduce it to the U.S. market, but was floundering.
Action:	Conducted in-depth market research which included interviews with a cross section of users, opinion leaders and competitive manufacturers. Reviewed and evaluated the market leaders in automation, their products, and their methods of selling. Evaluated the technical features and performance of the European product, and determined potential acceptance of the system versus other automated products in the U.S. market. Prepared a detailed report which included an analysis of the current overall market; current automated market; current manual market; future market; competition; and the perceived marketable differences between the European product and U.S. market leaders. Concluded that the European system had many desirable features, but was lacking an essential component to be successful in the U.S.. Recommended that the client delay introduction and redesign the system to include the essential component; and acquire an existing U.S. company to use as vehicle to launch the product.
Results:	The client aborted its U.S. market plan, thereby averting a costly premature market entry, and began a development program to include the needed instrumentation. The client acquired the existing U.S. market leader (36% market share) and launched the system through the U.S. company 18 months later.