Covidien

Building substance behind a corporate re-branding

When Tyco Healthcare was “re-branded” Covidien (NYSE: COV), a complex collection of businesses and product brands still existed below the surface. One high-growth business unit, focused on sleep apnea diagnosis and therapies, decided to take the lead in turning the corporate re-branding into a business driver.

In the previous ten years, Tyco Healthcare had acquired all the companies needed to provide complete solutions to the sleep labs and home medical equipment providers that diagnosed and treated sleep apnea. Unfortunately, however, they hadn’t integrated the offerings of the acquired companies nor their approaches to the market. In fact, research revealed that the broader care structure around sleep apnea was also highly fragmented. Not only did fragmentation make marketing inefficient, it limited the quality of care and complicated therapy compliance.

The goal was to unite the companies, clarify the combined value proposition and take a leadership role in uniting the care structure. The positioning strategy was a call to “unite,” challenging Covidien people, channel partners and physicians, to “unite to treat sleep apnea.”

In less than two months, the strategy was implemented in each area of the Quadric framework. Together with a committed internal team, we simplified the brand portfolio, enrolled the organization, developed a focused set of sales collateral and created a global campaign that captured attention in the most influential journals and trade media.

Recognizing the success of the Sleep business unit, the remaining businesses in the Respiratory & Monitoring division hired us to do the same for them. Scenario testing revealed that they too could be united around a positioning strategy focused on their unique approach to improving outcomes. This strategy is now guiding brand management, product development and how they address their markets.

Company description

Formerly known as Tyco Healthcare, Covidien is a healthcare company with 41,000 people and 2006 sales of $10b. Our work is in the Respiratory & Monitoring division, a global leader in numerous device categories. (Division with $1b sales, 2,000 employees)

Quadric scope

• Positioning strategy
• Brand portfolio optimization
• Marketing and media strategy and planning
• Global launch and ongoing communications

Outcome

• Took the lead and established best practices for the conversion to Covidien
• Clarified the value proposition within targeted therapeutic areas
• United multiple operating companies and removed legacy brands
• Improved financial performance

• Ten Cate - Integrating 22 companies into one global brand
• Luvata - Launching a division as an independent global company
• Vozrozhdenie Bank - Repositioning a bank facing increasing competition
• CFS - Repositioning a manufacturer after a series of acquisitions
• Consumer Electronics - Repositioning a business function to drive a strategic transformation
• F-Secure - Strengthening the consumer focus and brand of a B2B leader
• Covidien - Building substance behind a corporate re-branding
• Sleep Pointe - Launching a new company to help save lives

See how Quadric also helped accelerate growth of one of Covidien’s largest customers: Sleep Pointe Case