When a company is developing several important new compounds and one is facing challenges in formulation development, it is important to establish whether the potential for the product with an alternative formulation would be viable in sales terms. The market research investigation, which was conducted in the United States, Japan and Europe with an overall total of 298 respondents, used an adaptive conjoint approach (ACA) together with several interesting interlocking questions to assess the importance of the dosage form. It was possible to assess and model market penetration which clearly showed the impact of not having the oral formulation. Despite this, the product based on the conjoint work backed up by evaluation of an outline profile, demonstrated a very significant sales opportunity. The project was a high profile study within Zeneca which helped to enhance the standing of marketing research input.
The paper describes a case study carried out in 1994 to examine the potential for a number of new possible line extensions (formulations) of an existing product. Management required an extremely accurate forecast of the likely impact of the new forms on existing business, the degree of cannibalisation that would result and the impact on other competitors. Major investment decisions were likely to hinge on the outcome. Qualitative focus groups conducted in four countries with patients and physicians were able to identify four possible line extension candidates for the Janssen product. A major quantitative study involving 758 physicians and 489 patients was later conducted. A variety of novel approaches were used in order to address the marketing objectives. These involved doctors actually mapping themselves the likely market positions of the new forms, the use of a Choice Based Conjoint approach and the association of the new forms with various words and phrases. The new forms were assessed on the basis of: a written concept -photographs of packaging -placebo forms to taste a series of market scenarios, the preference shares for the new forms were established and converted into an approximate market share estimate. A multi data source modelling process was then set up in order to convert the primary research data into a market model which takes into account pricing, promotion, demographics of the population, etc. The forecasting model was installed at both the local offices of Janssen and at the corporate headquarters to facilitate increased understanding of the impact of each form, taking account of the local market situations. Despite the complexity of the marketing objectives, it was possible to prioritise the range of opportunities which existed, and identify the impact on the existing brand. Over the longer term, the result highlighted the value of certain line extensions as a means of broadening the product range to reduce the vulnerability of the brand to generic alternatives.
The downward pressure on pharmaceutical product prices and the level of profitability is already forcing companies to consider how to cut costs and to gain the most out of the money that is spent. An improvement in the way resources are allocated will be the focus of all companies in the latter half of the 1990's and beyond. Although a great deal of information via audits and primary research is available, it is still surprising that relatively few companies are interrogating the data via econometric analysis to help understand the marketing and advertising forces that affect a specific brand's behaviour and the magnitude of these effects - a procedure used in the consumer area since the 1960's. It is vital to know what the likely effects will be on brand performance when considering a change in the promotional spend and the allocation across different media. It is also essential to understand the pricing dynamics in the market to assess the likely response to price changes. Short to medium term forecasting can be made much sharper and resources used more wisely if these issues are better understood. Furthermore, the need to review the return on the promotional investment from different brands within the company becomes a logical step for the marketing director. In future, despite the changing customer base, the attitudes of managed care groups towards different scenarios can be monitored via primary research using "choice-based conjoint" investigations to provide additional input for short to medium forecasting accomplished by econometric analysis. Creating great efficiency and helping to save valuable resources can also help to save jobs.
With the increasing demands on health care expenditure due to a rise in the proportion of people aged 65 or more. Governments are and will continue to explore ways of reducing costs. It is likely that their focus will be towards the drugs bill rather than reducing the number of hospitals, beds or staff levels. Cost benefit studies can be a useful means of demonstrating to Government departments, insurance companies, budget holders and physicians that the higher cost of a product may be justified if other aspects of expenditure are reduced or eliminated. Although cost benefit studies are not necessary for registration purposes they can be of value in persuading insurance organisations to accept the product for reimbursement. Cost benefit studies should not be seen as an "easy option" for success for companies with products which have little if any benefit over competitive products. Companies should also be aware of difficulties associated with such studies and the problems of effectively communicating their results. The results of cost benefit studies should be examined as part of the process for calculating a new product's price. Assessing the price which could be charged for a new product has taken on greater significance. Marketing research can play a vital role in assisting management in its pricing decision, bringing together the physicians perceived value of the product with the product positioning and image strategy. Public opinion will also need to be taken into account in the future as more and more patients become aware of the price of drugs and the possibility of having to contribute directly or indirectly (via insurance) to the cost of new high priced products. Companies will need to take more account of public opinion of the industry and their own specific activities.
The developments in micro networks have already begun to have an effect on the communication of information between the pharmaceutical industry and the medical profession. However the links between the different groups of the medical profession e.g. hospital doctors, GPs and pharmacists have only recently began to show signs of the potential which has been outlined in this paper. The next step will be a micro network which links not only those groups mentioned but the general public too.
Brand mapping is being discussed at the 1981 ESOMAR conference when as a marketing research approach it could be argued that the technique is old fashioned and therefore ill-suited to the needs of pharmaceutical management personnel in the 1980's. In giving this paper I will attempt to demonstrate why I do not believe the above statement to be true. The paper will point out the improvements which have been made in: 1. Data collection methods; 2. Data interpretation both having lead to a significant advance in the overall value of the technique. However emphasis will be given to the different case histories which will illustrate the types of marketing problems for which brand mapping can be used.
This paper sets out to examine the methods of communicating with doctors open to the pharmaceutical manufacturer . Although it is important to examine the use of the traditional methods of communication e.g. representatives, mailings and journals, attention will also be given to other approaches to the doctor which companies are now using. The paper explores the research methods which can be used to establish the effectiveness of some of these approaches.