Launching & Growing Multiple Brands in the Same Therapeutic Area
Challenge: How does an organization launch & grow multiple products for a common therapeutic area while keeping costs down & efficiently deploying Sales & Marketing resources?
Launching and growing multiple products for a common therapeutic area is a challenging proposition. While it is typically a “good problem” to have such a rich pipeline, organizations must understand how to keep costs down, especially when hiring and training a new sales force to promote these products. As a result, many organizations have found an approach that is helpful in managing multiple products in an effective way & can control costs by leveraging and pooling resources.
Solution: Use a franchise approach!
Utilizing a franchise approach when marketing similar products in the same therapeutic area can help organizations in three key areas:
- Reducing Costs: The greatest factor affecting the cost of supporting any pharma product is sustaining a sales force. Thus, companies achieve the greatest net cost savings in an integrated product franchise by improving sales force effectiveness (noted 58% of benchmark respondents in a recent BP study), reducing sales force size (57%), and improving customer targeting (57%).
- Gaining Efficiencies & Boosting Productivity: Next to cost-heavy promotional components like the field sales force, many of the high-leverage, lower-cost product support, such as Digital Marketing, promise less cost savings as a percentage of launch and promotional budget. However, they are efficient and therefore useful for efficiency rather than cost reduction.
- Enhancing Corporate Reputation in Therapeutic Area: A key point that is worth noting is how integrated portfolios can be highly effective for improving access to healthcare providers, KOLs, and physicians who might serve as effective speakers or investigators. 60% of therapeutic area specialization in one portfolio is highly effective at increasing access.
Organizations are always on the hunt for the most effective and efficient way to conduct business. Generating the most value out of multiple similar products is a challenge, but using a franchise approach can help to boost productivity of portfolios & cut costs.