Past Winner Stories
Polymer Technology Systems
www.ptspanels.com
When people think of monitors and test strips, they’re usually associated with diabetes and glucose testing. That was one of the chief challenges facing Polymer Technology Systems (PTS). The company has developed products that provide whole blood chemistry information, but the original product launch was lost in the fold of competition and overshadowed by companies with a strong-hold in the consumer testing market. By the summer of 2001, funding was lacking and the marketing strategy needed a complete overhaul.
Robert Huffstodt, president and CEO,described those times as a fork in the road. “We knew we had a dynamic and marketable product but we had to change our approach,”he said. The product was originally targeted to diabetics. “We knew diabetics were used to a finger-prick test and our product tested for much more than blood sugar.” By providing whole blood chemistry information, a tiny drop of blood can be analyzed to measure:
Robert Huffstodt, president and CEO,described those times as a fork in the road. “We knew we had a dynamic and marketable product but we had to change our approach,”he said. The product was originally targeted to diabetics. “We knew diabetics were used to a finger-prick test and our product tested for much more than blood sugar.” By providing whole blood chemistry information, a tiny drop of blood can be analyzed to measure:
- Total cholesterol, including HDL (good cholesterol),triglycerides and LDL (bad cholesterol);
- Glucose (blood sugar);
- Ketones.
The flaw in marketing the product directly to diabetics was that the technology,while innovative,was not necessarily a step forward in glucose testing. The product was positioned against glucose monitors offered by several major corporations with substantial marketing budgets. Shelf space for the consumer market was hard to come by. The product wasn’t moving,the company’s cash reserves were drained and research and development funds had been depleted. By the time PTS management realized the error in strategy, they didn’t have the funds to craft and execute a new marketing course. The staff was frustrated and disillusioned. Financial backers were discouraged. The company had to take desperate measures to survive. “We recognized we had to change our focus and we had to do it fast,”Huffstodt said.
The solution was simple in theory. By reversing the product’s identity from “a glucose meter that also measures other things”to “a cholesterol meter that also measures glucose,”it could be marketed to doctors’ offices and the health fair markets, eventually leading to home use. Implementation was not as simple. “Our first priority was a major fundraising campaign,”Huffstodt said. Existing fundraisers either participated in the new financing or accepted dilution. The company raised $3 million in a nine-month period. New talent was hired and a new plan was crafted. Development activities were focused on finalizing a new meter that was better suited for healthcare professional users while rounding out the cholesterol test menu. The company’s management believed the cholesterol testing had a head start on the market,and the timetable to success would be accelerated due in part to the speed at which advances in healthcare are now implemented.
The new product was named CardioChek, to better reflect the purpose of the unit. Sales were first focused on the professional markets but within two years, sales were ramping up in the health screening market, i.e., health fairs. By using the Internet,the company was able to enter the consumer market. Large pharmaceuticals also became major consumers of the product.
After facing the fork in the road, Huffstodt said the revised strategy has paid off. To date, the net effect of the new plan has been a four-fold increase in sales and the company reached profitability at the 24-month mark. PTS has come full circle and is now poised to properly enter the retail consumer market.
The solution was simple in theory. By reversing the product’s identity from “a glucose meter that also measures other things”to “a cholesterol meter that also measures glucose,”it could be marketed to doctors’ offices and the health fair markets, eventually leading to home use. Implementation was not as simple. “Our first priority was a major fundraising campaign,”Huffstodt said. Existing fundraisers either participated in the new financing or accepted dilution. The company raised $3 million in a nine-month period. New talent was hired and a new plan was crafted. Development activities were focused on finalizing a new meter that was better suited for healthcare professional users while rounding out the cholesterol test menu. The company’s management believed the cholesterol testing had a head start on the market,and the timetable to success would be accelerated due in part to the speed at which advances in healthcare are now implemented.
The new product was named CardioChek, to better reflect the purpose of the unit. Sales were first focused on the professional markets but within two years, sales were ramping up in the health screening market, i.e., health fairs. By using the Internet,the company was able to enter the consumer market. Large pharmaceuticals also became major consumers of the product.
After facing the fork in the road, Huffstodt said the revised strategy has paid off. To date, the net effect of the new plan has been a four-fold increase in sales and the company reached profitability at the 24-month mark. PTS has come full circle and is now poised to properly enter the retail consumer market.