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Medical Devices: Labs

Updated 2 yrs ago | 18 minutes

Overview

Laboratories are a minor distribution channel for the AdvaCare Pharma medical device product range in terms of a percentage of our total medical device sales, but are a necessary channel for some of our products that do not crossover to any other channels as many of our products do. In this way, many of the products for the lab channel are unique to the lab channel. Some of our products do crossover, that are used in labs as auxiliary products, such as PPE (Personal Protective Equipment) including face masks, gloves, medical caps, shoe covers, protective coveralls, etc.

Labs generally do not consume large quantities of medical devices, depending on the size of the lab, but it is important to note that there are different kinds of labs. However, our products are positioned for clinical labs. There are many types of labs, including research labs, pharmaceutical labs, food testing labs, forensic labs, etc., which may use some of our disposable medical device products, the actual equipment that we supply to our distributors is focused on clinical labs. Such equipment is for performing diagnostic tests on patient samples, such as blood, urine or tissue samples.

Patients may go to a lab themselves to have their samples collected and tested. Also, samples could be taken at a hospital or clinic and sent to a lab for testing if an in-house lab does not exist or the testing requirements cannot be conducted in the in-house lab.

Product Range: Which products apply to this channel and why?

A small part of our medical device range is positioned for the lab channel, meaning we can only provide a limited number of products that would be used in labs. Some products are specifically for labs while others are used for other channels and labs as well.

Note: Most hospitals will have an in-house (internal) clinical lab, but sales to these labs would be considered through the lab channel and NOT the hospital channel.

The following medical device divisions and product categories in each division are distributed through the labs channel:

MEDICAL DEVICES IN THE LAB CHANNEL
AccuPoint Injection Instruments	Injection instruments and devices are mostly specific for the hospital channel. Pharmacies would not be selling many of the products in this range. Generally low value and low price point per unit, can be difficult to compete based on price. Except for syringes and blood collection, only for hospital use and not for lab use.
Injection & Precision	Class II medical devices that are invasive injecting medications, withdraw blood or perform incisions including syringes, needles, blood collection bags, scalpels, etc. Syringes, specifically insulin syringes, would be sold in pharmacies. Other syringes might also be sold in pharmacies, but depends on regulations of country. Only syringes are used in labs, but in low volumes.
IV Infusion	Class II medical devices that are invasive, used in the veins for drug delivery and blood sampling including infusion sets, IV cannulas, scalp vein sets, guidewires, etc. Only for hospital use, not for lab use.
Blood Transfusion	Class II medical devices that are invasive and used for blood collection, storage and filtration, including blood collection bags, blood collection sets, hemodialysis products, etc. Blood collection bags and sets may be used in labs.
Enteral Feeding	Class II medical devices that are invasive and used for supplying and storing nutrients for direct delivery into the gastrointestinal tract, including enteral feeding sets and EVA infusion bags. Only for hospital use, not for lab use.
AccuQuik Diagnostic Detection	Diagnostic devices are widely used in the lab channel. Diagnostic products are well suited for future growth, even though our products are low-tech and meant to be fast, convenient and inexpensive, the diagnostics industry will see growth given technology will make telemedicine more and more common, eventually reaching developing markets as well. ~80-90% of this product range is sold in the lab channel, mostly being rapid tests and portable devices.
Rapid Test Kits	Rapid test kits are class I and II medical devices that are simple yet effective and inexpensive for testing for infectious diseases, drugs and other medical conditions by blood, urine, saliva or other sampling methods. As these tests have a margin for error, they are often used for screening purposes opposed to an absolute diagnosis for which other more comprehensive testing will be used. Rapid test kits are generally low value, but margins are generally good and branding is effective as test kits have strong brand recognition. Given ease of use, inexpensive and fast results, rapid tests are often used in clinical labs , especially labs in hospitals for fast results. However, rapid tests might also be used at home depending on regulations of country.
Portable Devices	Portable devices are class II medical devices that are small, portable electronic devices that test for blood sugar, blood pressure pressure, pulse or other basic diagnostics. Only sold through pharmacy channel for at home use, not for lab use.
Diagnostic Supplies	Diagnostic supplies are mostly class II medical devices that are disposable and used for specimen collection and testing, including blood collection tubes, urine & stool specimen cups, vaginal speculums, etc. Mostly for use in clinical labs, many of these labs are in hospitals for fast results.
StaySafe Medical Disposables	Medical disposables include PPE, anesthesia equipment and other products that are mostly positioned for the hospital channel for patient care and surgical procedures. Medical disposables are used in high volume and disposed of readily. 30% of this product range is used in labs.
Protective Equipment (PPE)	Some PPE products can be class I medical devices, but other products are not classified as medical devices but rather as personal protection. Exam gloves, caps, face masks, shoe covers, face shields, disposable coveralls, medical scrubs, and other body protection equipment are used in labs , and although used on a daily basis, sales volumes will be less than hospitals.
Anesthesia Equipment	Anesthesia and respiratory equipment are both class I and II medical devices including different types of respiratory masks and tubing. Mostly for use in hospitals, not for lab use.
Biohazard & Waste	Class I medical devices for disposal of waste includes biohazard bags, vomit bags and waste containers. Biohazard bags and waste containers used in lab channel .
Condoms	Condoms are a class I medical device including both male and female condoms, as well as lubricant which is a personal care or sexual wellness product. Only for pharmacy/retail channel, not for lab use.
StayGuard Skin & Wound Care	Our largest medical device division includes a very wide range of products spanning wound care, disinfectants, first aid and orthopedics. Products include disposable, reusable and also invasive medical devices. ~20% of this product range is sold in the pharmacy and retail channel.
Wound Dressings	Class I medical devices that are non-evasive and used for minor to moderate wound treatment, including various kinds of bandages, dressings and swabs. Only for hospital and pharmacy/retail channels, not for lab use.
Wound Closure	Class II medical devices that are invasive and used to close wounds, including surgical sutures, skin staplers and wound drainage systems. Only for hospital and pharmacy/retail channels, not for lab use.
Medical Tapes	Adhesive tapes are class I medical devices that adhere to the skin, usually holding in place another device. Medical tapes are used in labs, but in small volumes.
Disinfectants	Disinfectants are generally not considered medical devices, but rather biocidal products. Disinfectants including antiseptic and antibacterial wipes, pads and sprays are used in labs .
First Aid	First Aid Kits are not medical devices, but many of the contents included in the kit are medical devices. First Aid Kits can vary in size, more simple kits including >20 items, and other more complete kits can include over 150 items. Only for pharmacy/retail channels, not for lab use.
Orthopedics	Class I medical devices include orthopedic braces, supports, elastic bandages, splints, etc. Only for hospital and pharmacy/retail channels, not for lab use.
StayDry Incontinence & Urology	Our smallest range of medical devices includes class I, II and personal care products. Most incontinence and urology products are disposable and high volume. ~0-10% of this product range is sold in the pharmacy channel.
Incontinence	Incontinence products include class I medical devices and personal care products such as diapers, sanitary pads, under pads, disposable bedsheets and exam table paper. Only for hospital and pharmacy/retail channels, not for lab use.
Urology	Urology products are class II medical devices including colostomy bags, urinary bags, catheters for urology, etc. Only for hospital and pharmacy/retail channels, not for lab use.

Target Audience

B2B: Primary Target Audience

As labs cannot purchase large volumes of medical devices to meet our MOQ per product, they will purchase through domestic distributors.

See:

Distribution Channels: An Overview > Labs > Why don’t labs buy directly from AdvaCare?

These distributors are our customers, the direct purchasers of our medical device products, and therefore our primary target audience.

See:

Distribution Channels: An Overview > Distributors

B2B: Secondary Target Audience

The lab that our distributors sell our medical devices to are the secondary target audience - the next stage in the supply chain. It is important to note that many labs are in hospitals, in which case the procurement department and/or procurement officers of the hospitals would be the decision makers that decide the vendors and orders based on product prices, availability, quality and relationship with the distributor. If the clinical lab is separate and affiliated with a hospital, the decision maker could be the owner if it is a small lab.

It is important to understand the dynamics of this channel.

See:

Distribution Channels: An Overview > Labs > Types of Labs

Once our product is used by a lab, especially for labs inside hospitals which can crossover with the hospital and perhaps lead to orders for other AdvaCare products for the hospital channel, if the products are well accepted, the lab will ask our distributor to reorder the same AdvaCare medical device products and brands.

B2C

As clinical labs perform diagnostic tests on patient samples, such as blood, urine or tissue samples, patients are in fact the end users of our medical device products that are used in labs. Branding awareness and messaging are less important, but still relevant if the same people come to trust our products, they might buy the same or other AdvaCare brands in the future from the pharmacy or retail channel.

Supply Chain

Labs are the third to last stage in the supply chain before the product is used ultimately for a patient or consumer:

API Manufacturer > Finished Manufacturer > AdvaCare > Distributor/Importer > Labs > End Consumer (patient/consumer)

See:

Distribution Channels: Introduction > Understanding Supply Chains

Promotional Materials: Which materials apply to this channel and why?

Lab do not advertise specific brands or products as they are not in the business of selling products, but rather buying specific medical devices that are for lab use and usually in smaller quantities, except for labs in hospitals that might consume larger quantities given the high volume of testing and processing daily samples such as blood, urine and tissue samples..

The B2B, B2C, Distributor Sales Dept. channels reflect not for whom the specific promotional item is targeting, but instead to which channel it is provided to. Symbol “(TA)” and Context explains for whom each item is targeting:

✔ = Promotional item provided to this channel.

Who will receive this promotional item?

✘ = Promotional item not provided to this channel.

Who will not receive this promotional item?

❔ = Promotional item might/could be provided to this channel.

Who might or might not receive this promotional item?

(TA) = Intended Target Audience for this channel.

Who is targeted to see this promotional item?

PROMOTIONAL MATERIALS FOR LAB CHANNEL
Printed Materials
Promotional Item	B2B	B2C	Distributor Sales Dept.	Description
Poster and Signage	✔	✘ (TA)	✘	B2B: Only applicable for clinical labs that have customers that come to the lab. Signage, such as wall posters, should serve to primarily educate patients on health conditions, use of products, or other helpful tips that would make a lab want to display such a poster. Secondary purpose is for brand awareness of AdvaCare and possibly our distributor, but must make a lab want to display such signage. This secondary purpose is usually combined with the primary purpose in the same poster/signage. B2C: Does not apply to labs, only for retail purposes to promote product or brand.
Window Signage	✔	✘ (TA)	✘	B2B: Only applicable for clinical labs that have customers that come to the lab. Window signage is a bit less common for labs compared to pharmacies as labs are not stores or retail oriented, but could be possible if requested by our distributor. Purpose is same as Posters and Signage . B2C: Does not apply to hospitals or clinics, only for retail purposes to promote product or brand.
Flyer / Pamphlet	✔ (TA)	❔ (TA)	✘	B2B: Flyers, pamphlets and brochures for our distributors to give to lab decision makers (procurement dept, owner, etc.) to promote AdvaCare and our products. Purpose is to prove credibility and convince secondary target audience to buy AdvaCare products. B2C: Flyers, pamphlets and brochures serve to educate patients on the product or health condition, but challenge is budget usually limits the quantity that we can print. For example, if there is a quantity of 10,000 boxes of a tablet product, budget might only allow 2,000 flyers.
Shelf Wobbler	✘	✘	✘	B2B/B2C: Does not apply to labs, only for retail purposes on a shelf.
Aisle Signage	✘	✘	✘	B2B/B2C: Does not apply to labs, only for retail purposes on a shelf.
Standing Banners	✔	✘ (TA)	❔	B2B: Only applicable for clinical labs that have customers that come to the lab. Signage, such as large standing posters, should serve to primarily educate patients on health conditions (more likely), use of products (less likely), or other helpful tips that would make a lab want to display a large standing poster. Secondary purpose is for brand awareness of AdvaCare and possibly our distributor. B2C: Does not apply to labs, only for retail purposes to promote product or brand. Distributor: Can use for seminars, trade shows or other events.
Notepad / Notebook	✔ (TA)	✘	❔	B2B: Notepads are cheaper, usually given to labs for use by lab staff. Notebooks are more expensive, but ideal for labs as these would not be provided in such large quantities to each lab. Both are effective for brand awareness given it is useful and branding is on every page. Distributor: Can use but in small quantities.
Sticky Note	✔ (TA)	✘	❔	B2B: Inexpensive and widely used by lab staff. Effective for brand awareness given it is useful and branding on every page. Distributor: Can use but in small quantities.
Calendar	✔ (TA)	✘	✘	B2B: AdvaCare branded calendars are usually printed annually around July of every year and sent out in advance for the following year. Very strong brand awareness as it is used for a full year, it puts our products and brands in the user’s face for a long period of time.
Catalog	✔ (TA)	✘	✘	B2B: Distributor gives to lab procurement officers, doctors and key decision makers to showcase our products for that market and build credibility. Catalogs are usually custom designed and printed for a specific country and/or distributor.
Delivery Vehicle Decal	✘ (TA)	✘ (TA)	✔	Distributor: As most of our distributors have their own delivery trucks, large decals applied to their delivery vehicles are inexpensive and very effective to promote the AdvaCare name in local markets, but requires that the decal be well designed and fit the specific vehicle.
Physical Items
Product Display	✘	✘	✘	B2B: Does not apply to labs, only for retail purposes to promote product or brand.
Pen / Highlighter	✔ (TA)	✘	✔	B2B: Inexpensive and good for widespread brand awareness, but limited in messaging given only AdvaCare+Distributor logos or only AdvaCare logo can fit onto a pen. B2C: Does not apply to lab patients, lack of branding purpose. Distributor: Salespeople can use when in the field.
Desk Clock	✔ (TA)	✘	✘	B2B: Effective for reinforcing general brand awareness as a desk clock sits on someone’s desk for long period of time, but given small size, messaging limited to AdvaCare+Distributor logos or only AdvaCare logo.
Wall Clock	✔ (TA)	✘	✘	B2B: Useful promotional item, as labs have many areas to place a clock, with long life cycle, but messaging is limited to AdvaCare+Distributor logos or only AdvaCare logo.
Mouse Pad	✔ (TA)	✘	✘	B2B: Inexpensive and effective for brand awareness with many options for messaging. Useful in labs and there are likely many computers.
Plastic Folder / Envelope	✔ (TA)	✘	✔	B2B: Inexpensive and useful for any documents that need to be stored or transported in a lab. Distributor: Can use but in small quantities.
Mug	✔ (TA)	✘	✘	B2B: Useful for long term use, given to lab staff.
Water Bottle	✔ (TA)	✘	✔	B2B: Less common for lab use, water bottles are most common to give to farmers for our veterinary range. However, these could be a useful item for lab staff. More premium steel if for admin or higher level staff, less premium plastic if for general staff. Distributor: Salespeople can use when in the field, small quantity.
Desk Organizer	✔ (TA)	✘	✘	B2B: Less requested but generally good for reinforcing general brand awareness as this sits on someone’s desk for long period of time, but given small size messaging limited to AdvaCare+Distributor logos or only AdvaCare logo.
Shirt	✔ (TA)	✘	✔ (TA)	B2B: Inexpensive polo style shirts are ideal for less formal and lower level staff, more expensive button-down shirts ideal are admin or higher level staff. Distributor: Button-down shirts ideal for distributor’s salespeople while in the field, strong brand association and awareness.
Laboratory Coat	✔ (TA)	✘	✘	B2B: Our distributors request lab coats for use by lab staff. These are relatively inexpensive and bring a level of credibility as lab coats are always connected with healthcare, so it is especially credible if labs are wearing lab coats with the AdvaCare logo.
Cap	❔ (TA)	✘	✘	B2B: Not used in the lab setting, but possibly provided by distributors to lab procurement or other staff. as a gift.
Waist Bag	❔ (TA)	✘	✘	B2B: Generally not used in lab setting, but it is possible to be used or could be provided by distributors to lab admin, procurement or other staff as a gift.
Padfolio	✔ (TA)	✘	✔ (TA)	B2B: A preferred promotional item by many distributors, often given as a gift to lab admin and procurement staff. Distributor: Ideal for distributor’s salespeople when in the field for brand awareness.
Backpack / Laptop Case	✔ (TA)	✘	✔ (TA)	B2B: Expensive and usually given to distributors with larger promo budgets in lower quantities as gifts for lab admin and higher level staff. Distributor: Ideal for distributor’s salespeople while in the field for strong brand awareness.
Fabric Bag	❔ (TA)	✘ (TA)	❔	B2B: More expensive than plastic bags, but can produce in smaller quantities. Distributors use for a variety of purposes, and considering these are often kept and reused by those who receive them, these do create some brand awareness. However, note that labs do not sell products, so not used at a point of sale. B2C: Not ideal for B2C use as labs do not have a point of sale. Distributor: Might be used by distributor to give samples or other materials, must find out intended use.
Plastic / Paper Bag	✘	✘	✘	B2B/B2C: Does not apply to labs, only for retail purposes.
USB Stick	❔ (TA)	✘	✘	B2B: Expensive but can be given as a gift for lab managementor staff in smaller quantities. Limited brand awareness, should only give if large budget or specially requested and good reasoning to provide.
Pill Organizer	❔ (TA)	✘	✘	B2B: More suitable for pharmacies and B2C use, but could be given as a gift to lab staff.
Mask Holder	✔ (TA)	❔ (TA)	✘	B2B: Inexpensive and can provide larger quantities for lab staff use as they are required to wear a mask in the lab setting. B2C: Possible to be given to patients given inexpensive and large quantities are possible if budget allows.
Umbrella	✔ (TA)	✘	✘	B2B: Expensive with some brand awareness, ideal for gifts to lab staff.
Raincoat	❔ (TA)	❔ (TA)	✘	B2B: Usually umbrella more suitable for lab staff, but possible if more expensive raincoats. B2C: Inexpensive raincoats could be possible to provide to patients. For general brand awareness.
Phone RIng	✔ (TA)	✘	✘	B2B: Inexpensive with limited brand awareness, possible gifts to lab staff but not many requests.
Digital Activations
Online Banner	✘	✘	✘	B2B: Limited application as not much added value to run ads for any specific lab.
Digital Catalog	✔ (TA)	✘	✔	B2B: Possible application for distributor’s salespeople to show or send a digital catalog to lab procurement officers.
Digital Flyer / Signage	✔ (TA)	✘ (TA)	✔	B2B: Applies only if distributor will print our design in their country, usually results if we cannot send physical promotional materials or budget is not sufficient.
Power Point Presentation	✔ (TA)	✘	✔	B2B: Case specific, usually requires significant time to prepare. Depends on distributor priority.
Website Development	✘ (TA)	✘ (TA)	✔	B2B: For priority distributors, with approval we can design and host a website. We use a template for this, showcasing our products and controlling the hosting, domain and access to the website.
Extended Search Ads	❔ (TA)	✘ (TA)	❔	B2B/B2C: We can run Google Ads and other PPC campaigns targeting specific demographics in our distributor’s country. Such campaigns are for priority distributors and must serve a strategic purpose.

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