AUGUSTINE MEDICAL, INC. CASE ANALYSIS
THE BAIR HUGGER PATIENT WARMING SYSTEM

I. Factual Summary: * The United States does not currently have an established warm-air technology blanket market. * The Bair Hugger Patient Warming System product is not a consumer device. The main users of this product consist of businesses and hospitals. * Hospitals will always be provided funding necessary to prevent hypothermia and other diseases; as a result a demand will consistently be common. * Augustine Medical, Inc. is using a push strategy. They are relying on distributors to push their products on to their prospective buyers. * Approximately there are 5,500 hospitals that have operating rooms and postoperative recovery
Fourth Option –The last pricing strategy is directly related to the previous option. The main difference is that the products prices are flip flopped. In detail, rather than giving the heater/blower unit away for free, Augustine Medical, Inc. could market the policy of giving a specific number of blankets away for free. If a hospital were to purchase the heater/blower unit for a pretty substantial investment, Augustine Medical would supply the plastic/paper covers free of charge for certain duration of time.

IV. Selected Solution:
Whether or not it is understood in great depth, pricing is one of the most crucial decision functions in marketing. To a large extent, pricing decisions determine the types of customers and competitors an organization will attract. With all that being said, I believe that option three will yield the best results for Augustine Medical, Inc. in the years to come.

The Bair Hugger Patient Warming System consists of a blower heating unit and a patented disposable blanket. Since the two products work together as one joint system, the demand for the blanket will be plentiful. As a result, I would recommend that Augustine Medical give the heating/blower unit away for no charge for a specific promotional period of one year and focus the majority of their selling efforts on the