2Majed Alansari
Abdulla FoolathChris HagedornPeyton Lambert
Charles ShellyYaser ZamanB A
Agenda Situation analysis Competitive situation Targeting OB/GYN segment Sales & Marketing
recommendations Financial Forecasts
SituationalAnalysis
Team B2ASWOT Analysis – Zeltiq/Coolsculpting Strengths
Solid financial position Excellent product – Patented, FDA
cleared, high satisfaction levels Non-surgical fat reduction procedure
with no downtime
Subscription-based usage provides steady cash flows
Effective salesforce, marketing and training programs
Weaknesses Limited brand recognition, but
growing faster than competition (Around 30%)
Operation is not covered by insurance
Opportunities Growing markets domestically and
globally Expansion into new segments e.g.
OB/GYN Expansion into new global markets that
are less saturated e.g. Middle East Product can be developed to achieve
shorter procedure times, and cover more parts in the body
Threats Highly competitive and saturated
markets can lead to slow sales Other non-invasive technologies
entering the market are catching up with CoolSculpting features
Losing price-setting power
Company/Market Product
CompetitiveSituation
Team B2AThe non-invasive fat reduction Market
72%
28%
CoolSculpting Competition
U.S. Body Sculpting Market
CoolSculpting is the market leader in non-invasive fat reduction segment.
Great opportunity to capture growing demand: Shift from invasive to non-invasive treatments
in many segments (anti-aging, fat reduction, etc.)
Increasing number of male patients Global medical aesthetics market is
expected to reach $12.6 billion in 2020, at 10.8% CAGR
Global Non-invasive Market
Impressive CAGR~27%
(2016-2020)
5th most
popular cosmetic
procedure
After Botox, laser hair removal, fillers etc.
Male patients
Global Market Trends
Team B2ACloser look at competitors Vanquish
(BLT Industries)Liposonix
(VRX)UltraShape (Syneron Medical)
CoolSculpting(Zeltiq)
Technology Radiofrequency waves Radiofrequency energy to heat and kill fat cells Ultrasound Controlled Cooling
Perception by customers (practitioners)
Same results
Easier to use (no touch), require fewer treatments, covers wider treatment
areas.
Cheaper, better pricing system (no per use fees)
Less pain/discomfort
Hurts too much, but performs better at precision targeting
4 out of 5 doctors prefers CoolSculpting
over it
Didn’t produce same results as Vanquish and
CoolSculpting
Good results, but can be fluctuating between different practitioners
Low recognition by end users
Strong results
Effective and responsive salesforce, strong marketing and training programs (CS
University)
Recognized brand
Sessions take longer times
Perception by end consumers(realself.com)
67% worthwhile rating 67% worthwhile rating 88% worthwhile rating 83% worthwhile rating
Brand awareness Less than 10% N/A Less than 10% Nearly 30%
Threat level Medium-High Low Low
ThreatsCompetitors are improving
Some competitors can gain advantage by offering cheaper, faster, more comfortable,
solutions which also covers more body areas
Losing price setting power Lower priced alternatives (with no per use fees) are entering the non-invasive market
Slow growth Saturated markets, availability of cheaper
alternatives, and high prices can slow sales
OpportunitiesFocus on R & D
Catch up with some competitors and reduce treatment time, increase the productivity of the
device, as well as cover more body areas.
Expand the pieStay ahead of competition and reach new markets (type, geographic) with our active
salesforce and marketing program
Strengthen the brand More B2C to make the product the #1 trusted
choice for end consumers, the stronger the brand the more likely practitioners will select it
among alternatives
Team B2ACompetitive Threats (and Opportunities)
TargetingOB/GYN
Team B2ASWOT Analysis – Targeting OB/GYN segmentStrengths
Always around our potential end customers (Post-delivery)
Intimate relationship with their patients – well established trust
Available in every town, every market
Weaknesses Low-medium frequency of visits Usually understaffed and
overwhelmed – short appointments Only see female patients Usual clientele, marketing to new
customers can be challenging
Opportunities CoolSculpting provides a new
revenue stream to OB/GYNs (High operating margins which reach 60%)
It’s possible to reach new clients through offerings outside of OB/GYN domain – 60% of Americans are considering aesthetic treatments
Can target accompanying males (husbands)
Threats Marketing to new practitioner
segments can disappoint early adaptors (plastic surgeons) as this will affect their sales potential
Some OB/GYNs could be reluctant to risk current and future relationship with their patients in case they were not happy with the new fat-reduction offering
Team B2AValue and competitive differentiation
1 Considered an out patient procedure
Skin and surrounding area stay safe
High patient satisfaction FDA approval for abdomen,
flank, thigh, and chin Only needs oversight from
Medical professional
• Will allow patient to have alternative to Liposuction, which is a surgical procedure
• Allows patient to continue their lifestyle immediately
• Won’t take doctor out of the office• Can be done by non-medically
trained professional
Non-Invasive Surgery 2 • Expands your procedural
offerings • Allows you to become the one
stop shop for your patients
• New procedural offering giving your patients more options
• The new offering will give you another form of revenue to drive your cash flows
• New patients average four cycles and normally add one to two more Completes
the “mommy
makeover”
Team B2AValue and competitive differentiation
3 • Zeltiq continues to add area applicators and improve procedure time
• CoolSculpting University • Co-Op marketing
• Your patients will be coming back for more cycles at a faster procedure time
• Continue to innovate with new treatment areas
• Give best practices in terms of Marketing your procedures and practice, Training, Sales
• Can be reimbursed up to 50% of Marketing costs
Continued Growth
and Help from Zeltiq
Team B2ATargeting our customers
Team B2ATargeting our customers
Western Region
Team B2APositioning Statement Who?
TargetCosmetic OB/GYN who perform vaginoplasty
within the Western Region (AZ, CO, NV, NM, UT, CA, OR, WA) where the highest percentage
of liposuction procedures performed
What?Frame of Reference
A non-invasive procedure (CoolSculpting) allowing
the complete post pregnancy makeover
(35-55 years old)
Why?Point of Difference
Proof?Reasons to Believe
Additional revenue through new procedure that aligns with
current offering
$260,000 average additional practice revenue for a CoolSculpting provider
Co-op Marketing program to strengthen your brand
Following our proven Marketing Methodology we will reimburse 50% of your marketing costs
Shorter procedural time allows for more patients to be seen
Average procedure last 45 minutes compared to liposuction (1-2
hours)
Through training at CoolSculpting University sales
potential can increase
CoolSculpting University graduates saw an increased patient
treatments by 60%
Sales and MKTRecommendations
Team B2ASales Strategy
Channel Selection Use current direct sales
team (Senior Area Sales Manager, Area Sales Manager and Practice Development Manager) but assign team members to Cosmetic OB/GYN market within their geographic territories
Women salesforce allows ease when entering into a women-only OB/GYN market
How to sell? Sell product as add-on to
current procedures “Mommy makeover” Increase OB/GYN revenue
260k Increase current salesforce
tenacity by potentially making payment structure more commission based
Saleswomen need to visit practices and develop relationships w/ Dr. or Office Manager
Team B2AMarketing and Promotions Use or implement marketing automation tool such as Marketo or Eloqua to supplement Salesforce/SAP
Industry-specific One-pager and Whitepapers allows for education of OB/GYN customers
Should be added to Zeltiq website and tracked when downloaded
Can also be emailed to potential customers and tracked
SEO/SEM marketing to “pull-in” cosmetic OB/GYN’s and generate interest
Attend Conferences
2nd international Conference for Cosmetology and Cosmetic Gynecology, ISCG World Conference X, OB/GYN Nursing Conference, COGI, ACOG, etc.
Create CoolSculpting Ad for OB/GYN’s to be emailed and put in magazine
Cosmetic Surgery Times, Contemporary OB/GYN, etc.
Team B2AAd example
Bring sexy back after having a baby We help transform your body with the coolest way to lose fat – No pain, surgery or downtime.
Ask your OB/GYN doctor today!
Team B2AImplementation / Launch
Pre-launch LaunchFirst 6 months
Post-LaunchFirst 18 months
Build list of Cosmetic OB/GYN practices within sales territory
Create and educate female salesforce on cosmetic OB/GYN market
Establish a cross-functional team to expand OB/GYN market (include sales and marketing members)
Create promotional marketing material (one-pagers, fliers, whitepapers, etc.)
Make CoolSculpting ad in OB/GYN mag
Attend conferences
Direct salesforce uses marketing automation tool to reach OB/GYN practices and gauge interest on adding CoolSculpting
Call and email offices to speak to Office Manager or Doctor in charge of adding programs
Set meetings and visit clinics
Establish CoolSculpting U for areas and invite cosmetic OB/GYN’s to view demonstration and discuss benefits
Focus on sales a customer service to increase customer satisfaction and retention
Be weary of oversaturation of markets
Expand to other cities using our target recommendation
Focus on upselling every add-on to the machine
FinancialForecasts
Team B2AU.S. OB/GYN Market Information
Change in demand2010-2020 10% or more 3% to 9% – 2% to 2% – 3% to –9% – 10% or less
Currently, there is a total of 20,090 OB/GYN practitioners in the USA. Out of the those, 23% (4,680) practice in the Western Region.
Demand for OB/GYN in the United States is expected to increase by 6% from 2010 to 2020.
A ratio of 27.1 OB/GYNs to 100,000 Females needs to be sustained to fulfil women’s health requirements.
Study also suggested that there needs to be at least 50,000 Ob/Gyns to cover 364 million population.
Team B2ACoolSculpting Product Development (Western USA)
CooSculpting is offered in 14 OB/GYN Clinics the Western Region.
Total Revenue growth for the Western Region was 478% from Q1’2015 to Q2’2016.
#of procedures in the Western Region increased from 81 in Q1 ‘2015 to 807 procedures in Q2 ‘ 2016
Q1' 2014 Q2' 2014 Q3' 2015 Q4' 2015 Q1' 2016 Q2 ' 2016 -
100
200
300
400
500
600
700
800
900
# of Cool Sculpting Procedures
# of
pro
cedu
res
Western Region
Team B2AMarket Penetration Forecast (5 Years)
Market Penetration 2017 2018 2019 2020 2021
Women Population (Age 30 to 55) Western United States
20,147,064 20,301,955 20,458,036 20,615,317 20,773,808
OB/GYN Forecast based on (27.1/100,000 Ratio) 5,460 5,502 5,544 5,587 5,630
Average Revenue Per OB/GYN 15,400 15,400 15,400 15,400 15,400
Expected OB/GYN Market Share 0.5% 0.75% 1.00% 1.25% 1.50%
Expected # of OB/GYN that will distribute CoolSculpting
27 41 55 70 84
Total Forecasted Revenue (WESTERN REGION) 420,409 635,461 853,796 1,075,450 1,300,461
Growth 51% 34% 26% 21%
2B AThankYou