The following content is excerpted from the keynote speech "Winning at the Starting Line, the Gain and Loss of New Products in the Market".
In the face of severely competitive and fasting changing markets, whether the highly-expected new product launch, which is deemed to be the most important business lifeline, can be successfully commercialized still remains an uncertainty. So how should pharmaceutical companies develop its new product launch strategy "early, fast, accurate, and sensitive" to bring profits for enterprises sustainably?
Based on the four dimensions of medical strategy, brand strategy, pricing strategy, and innovative business models, the MEDX pharmaceutical and medical consulting team of Illuminera has summarized the gains and losses behind the launch of new drugs, assisting pharmaceutical companies to clearly understand the market, make early marketing designs, accelerate marketing decisions, and formulate effective new product launch strategies, and continuously optimize execution plans.
When facing the challenges of launching new products, pharmaceutical professionals often struggle with the following issues: the advanced mechanisms and technologies are not aligned with market demand, it is difficult to clearly identify the differentiated advantages of new products compared to existing competitors, and it is hard to translate the differentiated advantages into patient benefits and actual sales performance…
These pain points may reflect lacks or mistakes in new product launch strategy, particularly in medical strategy. A reasonable, forward-looking and precise medical strategy can have a profound impact on new product launch, especially in supporting and guiding key issues such as product value positioning, early customer education, and drug market access.
Our MEDX team further found, from numerous cases we’ve done, that powerful medical strategies can create differentiated clinical layouts, shape positioning advantages in advance, and help shape market perception and expert consensus in the early stages of customer education. Moreover, medical strategies can also accelerate the subsequent process of entry, hospitalization, and insurance inclusion through smart market entry.
A clear brand strategy requires three key steps: awareness, strategy, and execution, among which establishing an objective and accurate market perception is the "first button" in formulating a strategy. Pharmaceutical companies need to minimize cognitive biases to clearly identify their own strengths, competitive positioning, and the overall market situation. This will help shape and update customers’ perception, rather than simply conveying product information. In addition, with the dual support of clinical guidelines and medical evidence, pharmaceutical companies can more clearly realize market pain points and adhere to the implementation and execution of brand strategies, which will help the building and landing of brand value propositions.
For the pharmaceutical industry, most strategies have a certain room for error, but there are two decisions whose failure often becomes fetal for a product—team disbandment and/or price reduction. Among them, pricing, no matter whether it’s value-based or market access-based, is a crucial part of the new product launch. Pharmaceutical companies need choose a pricing model suitable for the development of their own products first, and then follow the relevant pricing logic and focus for effective planning, comprehensively considering various external factors such as volume procurement and medical insurance negotiations. The pricing strategy is a highly strategic and thrilling part of marketing, but it is not unpredictable. Through sufficient, objective, and meticulous strategic consideration and forward-looking layout, pharmaceutical companies can navigate the price dilemma of "soul-cutting bargaining" and "die quickly without price reduction" successfully.
Whether it is products or marketing, pharmaceutical companies need to continuously explore innovation in order to secure new breakthroughs in the complex business environment, and create a new business model centered on patients throughout the entire product lifecycle, with the rise of pharmaceutical consumerization.
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