GranuLab: positioning GranuMaS
in the bone graft substitute industry
Khairul Akmaliah Adham, Rosmah Mat Isa, Zizah Che Senik and Norjaya M. Yasin
Khairul Akmaliah Adham
and Rosmah Mat Isa are
Associate Professors at
UKM-Graduate School of
Business, Universiti
Kebangsaan Malaysia,
Bangi, Malaysia.
Zizah Che Senik is an
Associate Professor at
Faculty of Economics and
Mangement, Universiti
Kebangsaan Malaysia,
Bangi, Malaysia.
Norjaya M. Yasin is an
Associate Professor at
UKM-Graduate School of
Business, Universiti
Kebangsaan Malaysia,
Bangi, Malaysia.
The study was funded by a
UKM-GSB operational research
grant, code DPP-2013-148/3,
titled ‘‘Aligning MBA Programme
to Meet Graduates’ and
Industries’ Expectations without
Sacrificing Quality - An
Exploratory Study’’. The authors
wish to thank Mr. Romli Ishak of
Granulab for access to the
company’s information. The
authors also wish to thank Siti
Khadijah Mohd Ghanie, MBA
candidate at UKM-GSB, for her
research assistance, and Nur
Sa’adah Muhamad for her
administrative assistance. It is
intended exclusively to facilitate
the teaching and learning of
marketing management and
strategic marketing theories and
does not imply effective or
ineffective managerial decisions.
Disclaimer. This case is written
solely for educational purposes
and is not intended to represent
successful or unsuccessful
managerial decision making. The
author/s may have disguised
names; financial and other
recognizable information to
protect confidentiality.
DOI 10.1108/EEMCS-07-2013-0158
Synopsis
GranuLab is a private limited company based in Shah Alam, about 30 km from Malaysia’s
capital city of Kuala Lumpur; it was a producer of synthetic bone graft substitute GranuMaS.
GranuMaS was launched in the Malaysian market in late 2010. At that time, the company
aimed to capture 50-70 percent of the Malaysian bone graft substitute market by the end of
2015. However, by the end of 2012, GranuLab was experiencing low sales and the company
had suffered a two-year loss due to manufacturing at low capacity. GranuLab also faced stiff
competition from multinational competitors that had penetrated the Malaysian market earlier
with competitive product offerings. The pressure to increase the sale of GranuMaS was
mounting for Mr Romli Ishak, the Managing Director of GranuLab, Mr Fadil Dalal, the new
General Manager of Marketing, and the rest of the company’s management team members.
This is especially so since the company’s contract to supply GranuMaS to government
hospitals under the MOH program would end soon. These situations forced the company to
make a quick decision. In December 2012, Mr Romli and his team pondered upon the best
strategy that the company should pursue to achieve its objective of being a dominant player
in the Malaysian bone graft substitute industry. This teaching case is designed to stimulate
case analysts’ thinking on positioning a medical device product in a market which was
already conquered by established multinational companies.
Selling GranuMaS
GranuLab, a private limited company based in Malaysia, was established in May 2005 with a
mission to manufacture and market synthetic bone graft substitute product, GranuMaS.
GranuMaS was invented by a group of researchers from five universities and research
institutions, and was led by a team from Standards and Industrial Research Institute of
Malaysia Berhad (SIRIM). The research began in the year 2000 and by 2005 the team had
successfully conducted a series of clinical trials necessary to determine if GranuMaS was
safe for use in humans. Incidentally, in 2005, GranuLab’s founders identified a huge
business opportunity for GranuMaS, which at the time was awaiting commercialization at the
SIRIM lab. After a series of negotiations which took about a year, in late 2006, SIRIM granted
GranuLab the sole license to commercialize GranuMaS. Sindora Berhad, a member of Johor
Corporation agreed to provide funding for GranuMaS’ commercialization, and by 2007
GranuLab became a subsidiary of Sindora. In late 2010, GranuLab had completed the
development of GranuMaS and launched it in the Malaysian market.
By the end of 2012, GranuMaS was available in granule form and was packed in various
sizes. Exhibit 1 shows the picture of GranuMaS’ packages. Generally, bone graft substitutes
products such as GranuMaS were used in hospital surgeries, especially in orthopedic
operations. GranuMaS could be used in patients with orthopedic problems, especially as
filler or to augment bone repair or construction in the cases of bone defects, malfunction,
fractured, or loss. Its small size (granules form) made it suitable for surgeries involving
smaller bones such as in dental, ear, nose and throat (ENT), and maxillofacial-related
VOL. 3 NO. 4 2013, pp. 1-21, Q Emerald Group Publishing Limited, ISSN 2045-0621 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 1
 surgeries. Thus, GranuMaS was positioned in the bone graft substitute market which
particularly served the needs of orthopedic surgeries at government hospitals. GranuMaS
was also positioned for use in dental surgeries. Exhibit 5 shows the application of GranuMaS
in orthopedic and dental surgeries.
GranuMaS was produced at GranuLab’s own medical grade production plant. The main
ingredient in GranuMaS was hydroxyapatite (HA) was derived from limestone that was
widely available in Malaysia. As such GranuMaS could be manufactured in large quantities
for domestic as well as international market. Moreover, since GranuMas was a synthetic, its
use could reduce the risks of transmission of diseases from allograft bones (bones derived
from human cadavers). The use of GranuMaS also addressed religious concerns regarding
the use of bone grafts, the alternative of which included bones derived from animals which
were forbidden in certain religions.
At the end of 2010, the company set a long-term goal of generating a profit after tax of more
than RM5 million (USD1.6 million) by the end of 2015. This goal was to be achieved through
several objectives, including controlling 50-70 percent of the Malaysian bone graft substitute
market. By the end of 2012, however, the sale of GranuMaS was not encouraging. At that
time, the company had suffered a two-year loss due to low production volume. The pressure
to increase the sale of GranuMaS was mounting. This was especially so as the company’s
contract with the MOH would draw to a close soon, forcing the company to make a quick
decision. Mr Romli Ishak, the Managing Director of GranuLab, Mr Fadil Dalal, General
Manager of Marketing, and GranuLab’s management team pondered upon the best strategy
to promote GranuMaS in the market. Failure to take swift action would cause the company to
experience more losses and which would then dash the founders’ dream of becoming a
dominant player in the bone graft substitute industry.

Overview of bone graft substitutes product characteristics and industry

Bone graft substitutes products could be broadly classified into two categories: natural
substitutes and synthetic substitutes. The former was derived from patient’s own bones
(autograft), human cadaver (allograft), or animal bone (xenograft) tissues, while the latter
was sourced from chemical-based substances, the properties of which were similar to
bones. The substances used to produce synthetics bone graft substitutes are HA and other
biomaterial substances such as ceramic and coralline HA. Other substances that had the
properties of bones and were compatible with human bodies were also used as substances
for synthetics bone graft substitutes.
Surgeries involving the use of bone graft substitutes must be performed by surgeons, who
used them as fillers in the repair or construction of bone defect, malfunction, fracture, or loss.
Bone graft substitutes could also be used as augments in similar operations. When used as
fillers and augments, bone graft substitutes served as bioactive agents that promote bone
and tissue growth. Used in this way, bone graft substitutes could help reduce the time taken
for bones to heal. Bone graft substitutes were also used as bioactive coatings in surgeries
involving implants as well as fusion and bridging in surgeries of joints and vertebra.
Unlike the use of autograft, which required double surgeries on patients, procedures
involving allograft, xenograft, and synthetics substitutes such as GranuMaS require patients
to undergo only one surgery. The use of synthetics also addressed some of the issues
related to religious preferences among patients. For example, Muslim patients would
generally prefer the use of synthetics over the use of bones derived from pigs, or other
ungulates which did not meet their religious requirements.
According to a report by GlobalData (2011), an increasing number of orthopedic surgeries
were being performed at hospitals globally. Of the total number of orthopedic surgeries
performed, it was estimated that 18-20 percent involved the use of bone graft substitutes.
The value of the bone graft substitute market was at US$1.9 billion in 2010, and GlobalData
predicted an increase of approximately 70 percent to about US$3.3 billion by 2017.
GlobalData also reported that the USA was the biggest consumer of the bone graft
substitute products, with a market value of US$1.3 billion in 2010, and this figure was

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PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 3 NO. 4 2013
estimated to increase to US$2.2 billion in 2017. These numbers indicated that the US
market alone comprised about 70 percent of the total market value of the bone graft
substitute market.
The use of bone graft corresponded with the increase in the number of orthopedic
procedures performed in hospitals. Bone graft substitutes were used mostly in hospitals in
locations which had a high number of road accidents. Road construction problems and a
high number of motorcycles on the roads were among major contributors to the high rate of
road accident. These accident-related orthopedic cases were prevalent in the developing
countries such as Malaysia, Vietnam, and Indonesia.
Another factor that contributed to the increased use of bone graft substitutes was the
increasing number of elderly people all over the world. This group of people was prone to
bone-degeneration medical conditions, in which treatment using bone graft substitutes was
one option. GlobalData also pointed out that this situation was more obvious in developed
countries due to the rapid growth of older population. Meanwhile, the growth in the use of
bone grafts substitute was also due to the increased use of bone graft substitutes in
orthopedic surgeries. There was an increasing trend among surgeons to use bone graft
substitute as replacement and complementary materials for autograft procedures
(GlobalData, 2011). In addition to orthopedic surgeries, bone graft substitutes are also
used in dental surgeries and implant dentistry.
Worldwide, there were about 20 players in the bone graft substitute industry, 85 percent of
which were synthetic providers while the remaining were natural bone graft providers
(Khairul Akmaliah et al., 2012). According to GlobalData (2011), in 2010, Medtronic was the
dominant player in the global bone graft substitutes market, capturing about 44 percent of
the market share. Other main players in the market include synthes, wright medical,
orthovita, stryker and osteotech. GlobalData attributed Medtronic’s market leadership to its
control in the Bone Morphogenetic Proteins (BMPs) global market, in which the company
captured more than 90 percent market share. This indicated that carrying multiple product
lines in similar markets might increase the market share of companies operating in the
industry (GlobalData, 2011).
By mid-2012, the US bone graft substitute industry market share was led by Synthes, DePuy,
and Stryker. All three companies were spinal implant manufacturers, which indicated the
importance of the spinal markets for bone graft substitutes. Natural bone grafts were
competing directly with synthetics bone substitutes. Bone substitutes, in general, also had to
compete with stem cells and new growth and tissue engineering products (Zamanian and
Fung, 2012). In September 2012, Synthes merged with DePuy to create what was claimed to
be the largest orthopedic and neurological business in the world. The merged entity of
DePuy Synthes became a total solutions company with products, services and programs
related to joint reconstructions, trauma, spine, neurological, and craniomaxillofacial; its other
total solution products included sports medicine, power tools, and biomaterials (Orsinger,
2012).
By the end of 2012, the Malaysian bone graft substitute market was controlled by
multinational companies. The major supplier of bone graft substitutes was Synthes, a
Swiss-based implant company with its chronOS brand of bone graft substitute. Based on
GranuLab’s market research, at that time, Synthes controlled about 60 percent of the market.
The remaining market share was divided between several other multinational players.
Synthes and the other multinational companies marketed their bone graft substitute
products through their marketing and sales subsidiary in the country. Synthes was in the
businesses of biomaterials, including resorbable implants and bone graft substitutes; it also
offered a range of surgical tools which could be used on their own or with its implant
products. Synthes’ chronOS was marketed in various forms and shapes, including granules,
preform shapes, and strips (DePuy Synthes, 2013a, b).
Giant multinational companies of synthetic bone grafts typically provided comprehensive
offerings or service envelopment packages to hospital surgeons. These multinational
companies generally offered extended lines of bone graft substitute products or

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VOL. 3 NO. 4 2013 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3
 implants, and this provides them with the opportunity to offer a comprehensive value
proposition to surgeons. Mr Romli commented on multinational companies’ value
proposition:
These multinational companies packaged their bone graft substitute products with surgical tools
that are needed by surgeons in their patients’ operations. They also sponsored surgeons’ training
overseas, usually involving the use of their products. This strategy creates surgeons’ loyalty to
their products. The multinationals also give out certain funding for surgeons’ continuous medical
education programs or offer them fellowship opportunities. These are some of their strategies in
inducing purchase of their products by the surgeons and handcuffing them.

Many of these companies adopted systems selling as their marketing strategy. In turn, many
hospitals preferred to purchase a total solution from implant vendors.

GranuMaS target market and customer characteristics

GranuMaS target markets were the Malaysian and international markets. The domestic
market for GranuMaS were the population of about 300 hospitals in Malaysia, about 60
percent of which were public hospitals, while the remaining 40 percent were private
hospitals. The main target customer group for the Malaysian market was public hospitals
because of the high number of orthopedic surgeries performed at these hospitals.
GranuMaS was also targeted for use in dental surgeries.
The decision to use bone graft substitute products was made by surgeons, and only
surgeons were allowed to use them in surgeries. The surgeons also chose the supplier or
brands of bone graft substitute to be used in the surgeries. Therefore, the sale of GranuMaS
was entirely dependent upon its acceptance by surgeons. In turn, a surgeon’s decision to
use bone graft substitute depended on many factors. One important factor was experts’
endorsement of the product. This was stated by Mr Romli:
In selling a medical device, identifying the key opinion leaders is important. For example, in
Malaysia, we know of this very prominent orthopedic surgeon. So, if he adopted GranuMaS, and
recommended it for use amongst his peers [. . .] saying that ‘‘I use this product’’, so, other
surgeons will likely follow his footsteps. And so securing the endorsement of the key opinion
leader is very important in helping us capture the market.

In regard to identifying the key opinion leaders, Mr Romli also noted the importance of
understanding the culture of hospital operation as well as the working culture of surgeons
and their teams. According to him, to get through to the hospitals’ team of surgeons,
GranuMaS’ competitors strongly capitalized on their salespeople as their marketing
strategy. These salespeople possessed good negotiation skills and used persuasive
marketing technique; they were also very well versed in the area of medicine and
pharmacology, which gave them the leverage to influence key opinion leaders and their
team. Thus, they were able to gain the trust of surgeons and were able to market their
products more competitively. Apart from that, product availability and visibility were also
critical elements in selling bone graft substitutes. According to Mr Romli:
In selling GranuMaS, we need to be close to the surgeons. For this purpose, we need to visit them
often. You see, the sales people of the multinational companies visit the surgeons, like [. . .]
everyday. Now, we don’t have the manpower to do that. These multinational companies also carry
many lines of products, which are more appealing to the surgeons, as they have a full line of
solutions to choose from. Some multinationals even offer complementary and alternative solutions
[. . .] so they are one-stop shop solution providers. Unlike us, we are a single-product company.
So, the surgeons who buy from us will have to deal with other companies, when GranuMaS does
not fit with their needs and demands.

GranuMaS marketing strategy, 2007-2012

Since the company was established, most marketing activities were done by the founders of
the company who at the same time were also managing the whole company. From mid-2007
(when GranuMaS was ready for the market) till the end of 2010, the company focused mainly
on creating awareness of GranuMaS amongst surgeons at Malaysian hospitals. Its main

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PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 3 NO. 4 2013
marketing strategy at that time was to secure a contract with the MOH under the ministry’s
adoption program. In this program, the Ministry of Finance would make payment directly to
GranuLab for hospitals’ purchase of GranuMaS. In this regard, hospitals got their supplies of
GranuMaS, and GranuLab was guaranteed of payment. In early 2011, the company was
accepted into the program and throughout 2011 the company was filling up the orders from
hospitals. Mr Romli related on the GranuMaS-MOH adoption program:
Actually, the demand of GranuMaS is high due to the high number of orthopedic surgeries
performed in the hospitals. However, the government requires the hospitals to save cost as much
as possible and only use GranuMaS in critical situations. So what happen was the hospitals used
only less than 10 boxes per months. This amount is very low as we cannot even cover the cost.
You know what, if the hospitals take 50 boxes per months, we are happy enough.

This indicates that, ultimately, in the MOH adoption program, the government played an
important role in determining the volume of GranuMaS to be supplied and used at hospitals.
However, the amount of consignment ordered by the MOH was used up by hospitals within a
few months and no new order was made from GranuLab; this forced the company to work
out a different strategy.

In August 2012, in the effort to rapidly increase sales and profits, the founders of GranuLab
recruited Mr Fadil Dalal as the General Manager of Marketing. Mr Fadil was formerly a Sales
Manager at a multinational pharmaceutical company in Kuala Lumpur. With Mr Fadil’s many
years of experience in heading the sales and marketing division of a multinational company,
Mr Romli and his management team was counting on Mr Fadil to turn GranuLab around and
boost its sales performance.

When Mr Fadil became the head of marketing at GranuLab, his job was to lead GranuLab
marketing operations and brand-building efforts in order to improve the firm’s sales
performance. According to Mr Fadil, one of the main problems faced by GranuLab at that
time was its lack of sales infrastructure:
At this point of time, sales infrastructure was not built to reach the true market potential of the
product. That is one of the reasons why the product is not selling well. To me, if a customer does
not see constant reminder about the product, there will be no sales. So, there is a gap. Second
thing is government does not have a dedicated budget for the purchase of synthetic bone grafts.
The current practice is, patients pay. If they can’t afford to pay, doctors will take the patient’s own
bones, and put them back in the damaged areas of the bones. Only certain hospitals are able to
allocate the money for bone substitutes by taking some money from other budgets. That is where
the limitation of usage of GranuMaS. Third, is the issue of perception. I’ve been working with the
doctors to change their perceptions that the product is expensive. The product is not that costly,
as the product is only taken once and it will be there the whole life. This is not like drugs, where you
have to make a purchase over and over again. This is the opportunity, if we can change the
perception [. . .].

When Mr Fadil took over the marketing position he had to supervise three sales
representatives, but by the end of 2012, he only had one sales representative. He knew that
he needed to develop a strong sales team to improve sales performance. He began to
aggressively look for potential candidates who were highly competent in sales to help him
reach the sales target. GranuLab’s target was to achieve the company’s goal of controlling
50-70 percent of the local bone graft substitute market to support the company’s target for
profit after tax of more than RM5 million (USD1.6 million) by the end of 2015. The company
also had plans to sell GranuMas to overseas’ markets, including those in Asia, Middle East,
Latin America, and Africa, within the next five years. By the end of 2012, GranuLab had
made GranuMaS promotional units available in hospitals in Indonesia, Vietnam, Colombia,
and Egypt.

Even though the company targeted international market to support its high-growth
expansions, Mr Fadil and Mr Romli were very well aware that the company’s bet on the
international market relied heavily on the company’s ability to first conquer the Malaysian
market. Mr Romli recounted his experience selling GranuMas in international market:

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VOL. 3 NO. 4 2013 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5
 When we go overseas, the customers ask us, ‘‘How many have you sold GranuMaS in Malaysia?’’
In selling to overseas markets, it is important that we sell in our markets in Malaysia. Otherwise it is
difficult for us to convince our targeted customers in the international markets. The logic of these
international buyers is simple. ‘‘If your own people are not buying from you, why would we?

GranuMaS sales strategies for the future

To maintain and capture a bigger market share, GranuLab needed to demonstrate that
GranuMaS is different from its competitors’ products. Mr Fadil realized that although the
obvious way to do this is by focusing on the product itself and its services, which were most
compelling to customers, there are other dimensions of differentiation that he could use in his
marketing strategy. For instance, personnel differentiation would allow the company to have
better-trained employees and sales teams to serve the customer efficiently and this, in turn,
would improve sales. According to Mr Fadil, a competent sales representative can close a
deal even after the first cycle, whereas a less competent sales representative might need
three to six cycles to close a deal. Additionally, GranuLab could differentiate its channel of
distribution. It could design its distribution channels more effectively and efficiently in terms
of coverage, expertise and performance. Another way for GranuLab to differentiate itself
from its competitors is to improve its image. GranuLab needed to craft powerful and
compelling images, not only of GranuMaS but also the image of the company, GranuLab.

GranuMaS product strategy

At the end of 2012, GranuMaS was the only product offered by GranuLab. Since GranuMaS
was a platform technology, GranuLab should be able to generate many new derivative
products. Hence, GranuLab began to develop several derivative products from the
GranuMaS platform. For example, it launched GranuMaS in injectable paste form, which was
especially suitable for dental and small bone surgeries (Exhibit 2 shows the injectable paste
form of GranuMaS). As part of its efforts to increase the sale of GranuMaS, GranuLab also
had repackaged GranuMaS, even though according to Mr Fadil multiple packaging (as
shown in Exhibit 1) was not critical for bone graft substitute; instead the sale of GranuMas
would mostly be determined by its availability. The company also began to test market other
forms of GranuMaS, including blocks, cubes, and pins. These new forms would allow for
GranuMaS to be used more effectively in various kinds of surgeries. Mr Fadil also realized
that in order to remain competitive, GranuMaS must be offered together with other
augmented products. This means selling GranuMaS in a package, that is, to offer systems
selling, rather than a standalone product or basic product. However, this strategy would
incur extra costs and may affect the firm’s short-term profitability.

GranuMaS pricing strategy

By the end of 2012, GranuLab’s pricing strategies were aligned with the company’s
commitment to market ‘‘high quality’’ product. According to Mr Romli, although the cost of
manufacturing GranuMaS was not high, the product was sold at a premium price because
medical products were normally highly priced to reflect its high quality and functionality.
Comparatively, GranuMaS was 15 percent cheaper than the product offered by its main
competitor, Synthes; however its price was 30 percent higher than products from India,
which was the lowest-priced amongst bone graft substitute products in the market.

GranuMaS promotion strategy

When selling GranuMaS, the company communicated with its customers through personal
selling either by its marketing staff or appointed agents in the states of Kelantan and
Terengganu. The marketing of bone grafts substitutes relied more on relationship marketing
rather than promotional activities such as advertising. GranuLab, however, had allocated
10 percent of its sales for some promotional activities. By the end of 2012, Mr Fadil began to
combine GranuMaS’ offering with some stationeries with GranuLab logo on it to increase
GranuMaS and GranuLab’s visibility amongst the surgeon group.

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PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 3 NO. 4 2013
 GranuMaS distribution strategy
By the end of 2012, GranuLab’s sales unit marketed GranuMaS to Malaysian public
hospitals. Since the company’s inception until early 2012, the founder of the company and
his marketing officer did all the marketing (Exhibit 4 shows the value/supply chain of the
company). The position of marketing officer, which was created in 2007, had a very high
turnover. As a result, the marketing was mostly done by the company’s two founders.
After being recruited into the company in August 2012, Mr Fadil and the company’s
management team devised several sale strategies to capture a bigger market share in the
Malaysian market. Among others, the company put GranuMaS on consignment on hospital
shelves to be used by the surgeons when there was a need to use bone graft substitute
products in their surgeries. In this sales plan, hospitals would pay GranuLab based on the
amount of GranuMaS used. Since GranuMaS was readily available at hospitals, the
GranuLab team expected that surgeons would be inclined to use it. Moreover, selling
GranuMaS on consignment carried little risks since GranuMaS could only be used by
surgeons. Since payment is made by hospitals, the use of GranuMaS was dependent on the
budget allocation for bone substitutes at each hospital.
At the end of 2012, Mr Fadil was the only dedicated sales staff in the company; hence, the
company needed to recruit more salespeople. The sale of GranuMaS relied mostly on the
relationship between the sales staff and the surgeons. To build a strong network, GranuLab
needed a capable marketing team that could build trusting relationships with key opinion
leaders and their teams. Mr Fadil indicated that the sales culture based on networking was
prevalent in this industry worldwide due to the knowledge intensive and distinctive nature of
the product such as it being medical and invasive product.
Mr Fadil mentioned the importance of creating a sales culture in GranuLab, especially in
facing competition from multinational companies. He expressed his views regarding
marketing strategy:
These multinational companies have a top-notch sales culture. In these companies, the sales unit
is king. The salespeople pay are based on commission. They really give good incentives to their
sales staff. When I was working in the multinational, we know that if we perform, we can achieve
anything [. . .] a car, a house. And to the point that if we are not making our numbers, we feel bad.
So, for GranuLab to move further in this situation, we must institute a proper sales infrastructure.

By the end of 2012, the company was focused on marketing GranuMaS to public hospitals in
Peninsular (West) Malaysia (Exhibit 3 shows the map of Malaysia). The company distributed
GranuMaS directly to all public hospitals in the Peninsular Malaysia, except for two east
coast states, i.e. Kelantan and Terengganu; these states are noted by the shaded areas in
Exhibit 3. Exhibit 4 shows the value/supply chain of the company. GranuLab appointed two
agents, who were manufacturer representatives for orthopedic-related products, to
distribute GranuMaS in these two states. These agents offered GranuMaS packages in
their lines of products. By appointing agents GranuLab was able to reduce the number of
times its salespeople need to travel to these two states. Moreover, marketing through the
agents allowed GranuLab to capitalize on the agents’ expertise and experience in serving
the two orthopedic markets.

Beyond 2012
Mr Fadil realized that a keen understanding of the competition as well as the customers is
crucial in order to improve sale performance and build a strong brand of medical product.
He also knew that the intensity of competition they faced would increase each year and that
Keywords: global competitors were growing fast and eager to increase their sales in new markets.
Marketing, Mr Fadil was well aware that he was facing a daunting task, but with his 20 years of
Malaysia, experience in sales he was confident that he would be able to turn the company around.
Medical device, Contemplating the challenges ahead, Mr Fadil needed to operationalize a comprehensive
Medical technology, marketing program for GranuMaS. However, Mr Fadil and the rest of the management team
Strategic marketing, first needed to decide on the best strategy to promote the GranuMaS brand in the market.
Synthetic bone graft substitute They knew that they needed to act fast to prevent more losses to the company.

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 References
DePuy Synthes (2013a), chronOS, available at: www.synthes.com/sites/intl/Products/Biomaterials/CMF/
Pages/chronOS.aspx (accessed 8 January 2013).
DePuy Synthes (2013b), ‘‘Overview of Company’’, available at: www.synthes.com/sites/intl/Company/
Pages/Company.aspx (accessed 8 January 2013).

GlobalData (2011), Bone Graft Substitutes – Global Pipeline Analysis, Competitive Landscape and
Market Forecast to 2017, available at: www.marketresearch.com/GlobalData-v3648/Bone-Graft-
Substitutes-Global-Pipeline-6459509/ (accessed 11 December 2012).
Khairul Akmaliah, A., Mohd Fuaad, S., Nur Sa’adah, M., Saida Farhanah, S., Zizah Che, S. and Rosmah
Mat, I. (2012), ‘‘GranuLab (C): internationalizing GranuMaS’’, Emerald Emerging Markets Case Studies
Collection, Vol. 2 No. 8, pp. 1-15.
Orsinger, M. (2012), Michel Orsinger Announces DePuy Synthes Merger, available at: www.
depuysynthes.com/letter (accessed 8 January 2013).

Zamanian, K. and Fung, D. (2012), ‘‘Market drivers: US orthopaedic bone graft substitute market’’,
Medical Device and Diagnostic Industry, 19 June, available at: www.orthotec.com/article/bone-graft-
substitute-market-2012 (accessed 8 January 2013).

Exhibit 1

Figure E1 GranuMaS packaging, 2012

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PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 3 NO. 4 2013
Exhibit 2

Figure E2 GranuLab’s injectible paste

Notes: Illustration shows product concept of bone

graft substitute in injectible paste form, a new
GranuLab’s product in the pipeline. The ready-to-use
solution requires no pre-mixing, and can be used as
foundation support for bone regeneration by adapting
to the shape of the defect or bone fracture

Exhibit 3

Figure E3 Map of Malaysia

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VOL. 3 NO. 4 2013 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9
 Exhibit 4

Figure E4 GranuMaS’ supply chain, end of 2012

Basic
Research/ Distribution
End
R&D/ Production: by GranuLab
Hospitals Customers
Product In-house staffs or
(Patients)
Development Agents

Exhibit 5

Figure E5 Use of GranuMaS in orthopedic and dental surgeries

A. Use of GranuMaS in orthopedic surgery

Fractured bone GranuMaS Healed bone

granules

Before After

GranuMaS is utilized to promote bone growth in the case of a fractured bone to promote bone
healing and growth

B. Use of GranuMaS in dental surgery

GranuMaS is utilized to promote bone growth to close a hole resulted from a tooth extraction

Corresponding author
Norjaya M. Yasin can be contacted at: norjaya@ukm.my

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PAGE 10 EMERALD EMERGING MARKETS CASE STUDIES VOL. 3 NO. 4 2013