|
Download
PDF
|
The Promotional Landscape in US and
Europe: Benchmarking promotional ROI and optimizing detailing
and journal spend relationships
Promotional activities
within the pharma industry operate through various sales and
promotional channels with the aim of convincing physicians,
patients and payors about the value and efficacy of products.
Return on investment (ROI) is the critical measure of success
for such initiatives. However, a clear understanding of the ROI
generated across various market and lifecycle settings is
essential for companies attempting to optimize their detailing
and journal advertising strategies in the future.
‘The Promotional Landscape in the US and Europe’ is a new report
published by Business Insights that provides detailed strategic
guidance for the preparation and execution of successful
promotion strategies. This report examines a number of case
studies of recent high profile promotional strategies and their
associated sales data to provide a comprehensive analysis of the
key success factors for detailing and journal advertising across
various stages of the product lifecycle. The impact of market
and product-level influences on promotional returns are assessed
and the most effective methods of measuring promotional
performance are also identified.
Improve the effectiveness of your promotional strategies by
examining the key factors affecting associated ROI and compare
the promotional activities of leading companies with this
report...
Some key findings from this report
- US detailing spend has fallen from 4.4% of promoted sales in
2005 to 3.9% in 2007. The proportion of sales revenues allocated
to promotional activities is relatively higher amongst EU5
countries than the US, amounting to 8.4% in 2007 compared with
4.2% in the US.
- Returns from detailing in the US have increased from 18.4 to
20.5 over the period 2005-2007. Returns from journal advertising
have recorded greater gains, rising from 11.2 to 19.1 in the
same period.
- Promotional spend during a product’s launch year typically
constitutes over 50% of first year sales in the US. This
proportion falls to less than 15% in year two and less than 5%
by year seven.
- Merck & Co invested the greatest proportion of sales into
promotional activities out of the top 10 pharma companies in
2007. This was largely due to new product launches, such as the
vaccine Gardasil and diabetes treatment Januvia. Eli Lilly and
Novartis were the next largest promotional spenders.
Top reasons to order your copy today
- Assess returns from pharmaceutical promotion in the US and EU5
with this report’s detailed breakdown of the ROI levels
associated with detailing and journal spend on promoted retail
sales by therapeutic category, relative innovation, price level
and lifecycle stage.
- Compare how successfully leading companies have executed their
promotional strategies with this report’s analysis of total
retail sales and proportional promotional spend in the US and EU
for major players including Pfizer, GSK, AstraZeneca, J&J and
Merck & Co.
- Evaluate the most effective promotional strategies for new
product launches with this report’s case study analysis that
includes a high profile launch into a new product category, the
introduction of a new drug class, the redefining of an
established product category and the launch of a
second-generation product.
- Identify the most effective promotional strategies for mature
products with this report’s case study analysis of the
promotional effectiveness of detailing and journal advertising
spend for products facing patent expiry, including lifecycle
management strategies involving reformulations, line extensions
and fixed dose combinations.
Key issues examined in this report
- Effectiveness of detailing. Product detailing continues to be
the most effective promotional channel despite increasingly
restricted access to physicians. However, improving
effectiveness and utilizing channels such as eDetailing will
continue to offer incremental returns.
- Promotion across product lifecycles. Although it is necessary
for companies to generate significant promotional activity in
the early stages of the product lifecycle, the ability to
balance these initiatives across various portfolios over time is
of great importance.
- New product promotions. New products require significant
educational promotion, particularly those launched into new
treatment settings such as Gardasil or Champix/Chantix.
- Protecting products close to patent expiry. The classic game
theory response to impending patent expiry involves maximizing
sales prior to expiry through continued aggressive promotion
before restricting all promotional efforts post patent expiry.
Brand-level promotion in light of new competition with
therapeutic equivalency and a significant price discount is
rarely considered to be of value.
Your questions answered
- What is the most appropriate measure for pharmaceutical
promotional returns?
- How do promotional strategies evolve across the product
lifecycle?
- What key market/product characteristics have the greatest
impact on promotional returns?
- Which companies are currently achieving above average
promotional returns and why?
- How can promotional activities help to establish market share
for new product launches?
- To what extent can promotional activities help to safeguard
market share following patent expiry?
- What are the key benchmarks/guidance available from real life
case studies that can be applied directly to my current
portfolio?
View
Table Of Contents >
|
