Zimmer: The Gender-Specific Knee

1. What are the threats to this business?
Competition stealing share, inventing a new, revolutionary product. Threat is also that consumers are living longer, healthier lives and may try alternative therapies like eastern medicine (acupuncture & yoga). Also, insurance issues may cause threat by not allowing coverage in future. Threat is also a completely new treatment in the future, like a drug that may generate cartilage.

Doctors do not want to switch products so hard sell. Knee may not work well so doctors never come back to Zimmer.

2. Should Zimmer invest in the gender-specific knee?

No. Customers did not define this need and will not realize the need for it b/c there is no marketing direct to consumers. Women were only 60% (+10%) more than men, so not worth the investment and inventory storage costs. Would also be expensive to market and push with sales teams (who like status quo). Surgeons are obviously very comfortable with tradition and longevity of product relationships, so it will be difficult to get them to switch, esp. for reasons like ‘shape’.

If Zimmer is serious about this, they will need to invest a great deal of money on direct to consumer marketing to make women “feel” like they need a female knee and build brand recognition so that patients can request a Zimmer female knee. Focusing on the older demographic, memory recollection may be tough.

3. What is the likely impact on prices?
These specialized knees will most likely be more expensive to produce and will cost more up front to recoup development, storage and marketing expenses.

4. How will competitors respond?
If Zimmer starts going direct to consumer, I think competitors will feel need to go there as well, to keep market share by highlighting their specialty products. It will be a long education curve since consumers will not