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Cochlear's aggressive marketing working

cochlear.jpgCochlear has just announced a 25% rise in net profit after tax to a record $100.1 million for the year ended 30 June 2007, while core earnings were up 24 per cent to $107.56 million. Global sales of Cochlear's implants jumped by 24 per cent on last year, with 15,947 units sold.

A Revenue Breakdown:

Americas: 26% to $249.8 million
Europe: 23% to $213 million.
Asia-Pacific: 34% to $80.1 million (strong growth in China, India, Korea and Australia)

Total revenue: $559.4 million, up 24 per cent.

Cochlear holds about 70% of the global implant market, with more than 90% of sales and 50% of expenses in foreign currency.

As a side note, within all this profit there's been a lot of press this year around Cochlear worker's threatening to go on strike due to pay / working conditions.

Beyond forecasted growth

This year's figure has beaten the target 20% growth figure that was set back in March.

The really scary thing is, Cochlear sees the company as a "start up", even though its been on the scene for 25 years!

"In the product life cycle, we're still in the early stages," Dr Roberts said.

"If you look at Cochlear implants, the outcomes that people are getting are improving all the time, and the clinical outcomes are improving because the technology improves.

"I view the company as a 25-year-old start up."

Cochlear has forecast core earnings growth of 15 to 20 per cent in 2008, but this is small pickings compared to a strategy at the forefront of Dr Robert's mind - doubling the size of the Sydney-based company.

Scary stuff. So more aggressive marketing coming soon! Without persuading people to have implants, their sales are hardly going to take a hike.

How are medical decisions influenced?

Recently Cuba announced that it had carried a CI on a child at 8 months, to quote:

The Spanish physician highlighted the Cuban attention and priority, treatment and solution given the curable illness [....]

So we are all ill then, and can be cured, become hearing! One immediately has to question where this aggressive strategy comes from? Do parents actually have time sort out their own feelings, and such a decision takes place whilst a baby even starts to communicate. The other thing, throwing around false claims such as cure, where does it come from: the manufacturers, the medics, or the media? A lethal mixture of all?

Can the surgeon's advice impartial, and free from bias? Are they receiving free gifts from Cochlear, and other such companies? Perhaps not the same incentives as far as alternatives go, since there's no money there either in the form of free gifts or dissemination of ideas.

Cochlear's new business model

Cochlear says it has come up with a new model:

"We've been changing our business model, moving away from just being a medical device company selling a device to a clinic, to also thinking about consumer advocacy, and indeed a world-class service company looking after the recipients."

On the surface of this, looking after recipients is good. However, one has to ask what exactly does this mean, an inventive way for covering up mistakes? Or is is to convince the shareholders this is an ethical investment to make? Or even an indirect marketing technique: look after those who have been implanted to go sell some CIs for you. Okay, I'm possibly being cynical here, but I don't take anything on face value and always question motives when money is the driving force.

When are people going to realise that market economics can't be the determining factors over changing a group of people. Economics partaking in a new form of ethnic cleansing?

See also:
Cochlear set to grow 20% in 5 years
Cochlear takeover bid by Medtronic possible

Sources:
Shaw Stockbroking: Cochlear’s 25% rise in profit sounds good
Cochlear reports 25% jump in profit
Sky News Australia: Cochlear sales rise

Comments (9)

They paid us thou$and$ to hand out just a few copies of their videos and brochures at the OC-Fair some years ago.

Is there a point to this particualr blog ? We don't use dollars, it is in Australia, try Canada, they are MUCH more aggressive at marketing CI's, perhaps they use dollars too, who knows...... methinks Grumpy protests rather too much about CI's, which are almost as normal as hearing aids now.... Canute springs to mind....

did you notice all the Ads by Google are for cochlear implants? FYI, I have a CI and love it so stop with the bashing already. It's a high-tech hearing aid, period.

My bashing was to do with aggressive marketing strategies, and money pushing the entire agenda. Money dictating the agenda. I don't agree with corporations deciding what's what, most of them won't even have met a person with broken ears.

Bit like Walmart wanting to increase the sale of guns, must have a 50% increase because its good for the profit. No care if it suits.

That is AMERICA it isn't here... we don't have a system in place like their insurances which can be used to pay for CI's, thus a market is there to be exploited, we haven't this, but the NHS, which simply cannot afford them, just a handout now and then from the Euro funds. If the deaf can have millions in funding for sign language where is the balance anyway ? CI users in Wales you KNOW got £300k from the Euro funds, the sign users got £2.7m bit of an imbalance don't you think ? Is this 'Aggressive marketing' of sign language ? or 'meeting a need' ? Who is to say people do NOT want CI's.

To quote MM:

"Is there a point to this particualr blog ?"

MY Reply:

"If you don't like this blog, offer constructive criticism or fuck off!"

Hi Tony N.... :-)

Tony B.

You are a lovely bloke, you are so nice. So even tempered where MM is concerned. So, be nice to MM for the both of us. I will be the evil, foaming denizen from hell!

Deal?

Thanks for this important piece of very very useful (and scary) information and for directing the attention to the company itself and not on the Deaf people themselves. I've always looked at the marketing of CIs as an economical motive more than caring about Deaf people, but didn't have the figures to show that so this is helpful.

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