Pharma Franchises: Promoting Multiple Similar Products to Cut Launch Costs, Leverage Efficiencies

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With the “Age of the Blockbuster” on the wane, healthcare companies must find ways to maximize revenue from every corner of their portfolios. Pharma companies large and small are thus under great pressure to cheaply launch and promote each new product.

In this climate, brand managers are always on the look out for ways to cut costs associated with launch or adopt efficient new tactics for selling a product. When a company supports multiple similar products for the same indication or in the same therapeutic area, one proven approach for accomplishing both goals is via a “franchise” model.

How does a franchise approach work? Well, as a global benchmarking leader, it is our job to look into every corner of the healthcare world – to uncover the insights that drive superior performance.

Here’s some of what we found, from a recent press release:

According to new research from Best Practices, LLC, a franchise approach is paying tangible dividends for many companies, enabling franchise users to cut overall promotional costs, boost efficiencies across product support teams, and accrue the reputational benefits of being seen as a treatment leader in a given therapeutic area.

For example, our latest research reveals that:

•The highest net franchise cost savings come in reducing average sales force size & training (58% of franchises), increasing sales force effectiveness (57%), and enhanced customer targeting (57%).

•74% of franchises effectively removed redundancies in customer targeting, enabling greater rep effectiveness during key lifecycle stages – keeping territories smaller and shrinking rep-to-customer ratios during launch.

•From a risk perspective, the chances for launch failure within a franchise expand exponentially when multiple launches occur w/in a short window (i.e., less than 6 months). Poor rep execution in messaging and product differentiation is the greatest liability in rapid multiple launches.

This research can be easily previewed here: Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products & Indications

To learn more about how leading pharma and life science organizations are leveraging product franchises for maximum efficiency and cost savings, visit our website at www.best-in-class.com and search “franchise.”

3 Responses to Pharma Franchises: Promoting Multiple Similar Products to Cut Launch Costs, Leverage Efficiencies

  1. AnchitAgrwal says:

    This is nice and good written blog for all Pharma franchise companies

  2. Radico Remedies says:

    Thank you for writing this informative article that succintly describes in brief the benefits accruing to a pcd company in India, by using the franchise model. Look forward to reading more articles.

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