Pharmaceuticals - Project Example

Development of a Marketing Strategy for a New Analgesic

Situation

A company developed a new analgesic for the treatment of abdominal pain. Initial results of clinical trials were very promising and the company approached SIMON - KUCHER & PARTNERS to develop a marketing strategy for this product in 4 European countries. Since no other imminent product launches of the company were expected at this time, the market success of this particular drug was crucial in order to ensure sufficient mid-term cash inflow.



Approach

1. Understanding the Strategic Framework and Market Environment

In a first step, the classic framework of a marketing strategy for a pharmaceutical product was analyzed with regard to the market environment of the new particular drug in all 4 European countries. An in-depth understanding of these factors were the basis to develop a successful business plan which fully exploits the market potential of the drug.

2. Research and Data Analysis

For the understanding of the strategic framework, comprehensive primary and secondary research was carried out. The collection of detailed data as well as highly sophisticated data analysis were necessary for optimizing marketing functions and thus adequately forecasting sales. In order to provide the most reliable information, our research based on a multimethod-multisource approach. This allowed for data cross-checks and thus ensured valuable input for the process of building strategic intelligence.

A first view on the data showed that the drug’s positioning with regard to competitive products, an adequate communicative approach to the target groups (physicians, sick funds and authorities) and pricing were likely to be the most important (and most challenging) determinants for a successful launch of the drug in all 4 considered countries.

The condensed information of the research phase and the initial analyses served as input for the building of strategic intelligence.

3. Building Strategic Intelligence

The process of building strategic intelligence started with optimizing marketing functions for the pharmaceutical product. Particularly the development of alternative action steps for the drug’s positioning, communication measures and pricing were central tasks in this phase of the project.

These marketing functions were then incorporated into a simulation model that allowed us to forecast and to compare the sales impact of various strategic alternatives, e.g. premium pricing and strong sales force support vs. me-too pricing and low sales force support.

Based on the insights from the sales forecasting model, optimal business plans were developed for a all 4 European countries. These business plans comprised precise forecasts on the necessary investment, the drug‘s net present value and the break-even point. Clear recommend¬ations and decision support were provided with regard to the optimal marketing strategy and its implementation.



Results

• The manufacturer implemented all central recommendations of SIMON - KUCHER & PARTNERS in all 4 European countries.
• A central element of the developed strategy encompassed a split marketing approach of different physician groups. This strategy turned out to be successful since considerable market shares were achieved in both physician groups after the product launch.
• Free from other unexpected market influences, the drug reached the peak market share and the break-even point in the projected time in all 4 European countries. The drug turned out to be the expected “cash cow” and bridged the company’s dry spell before other new products could be launched.

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