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Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications
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Best Practices in Launch Optimization: How Promotional Efficiency can be Leveraged to Support Multiple Products and Indications

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In today’s marketplace, launching multiple products for a common therapeutic area is both resource-intensive and strategically challenging. Managing similar products or an integrated product portfolio …

In today’s marketplace, launching multiple products for a common therapeutic area is both resource-intensive and strategically challenging. Managing similar products or an integrated product portfolio is a complex balancing act for bio-pharmaceutical companies — especially those that want to reduce the costliness of launching and promoting multiple products simultaneously. Maximizing the potential of each product requires well-crafted Sales alignment and improved access and reputation.

Best Practices, LLC conducted this benchmarking study to identify evidence-based benchmarks on the pros and cons of managing multiple products via a franchise approach. The study focused on uncovering proven tactics for efficiently deploying Sales and Marketing resources to reduce the costliness of launching and promoting multiple products simultaneously.

Research findings can serve as a reference point for portfolio managers to most efficiently manage multiple products and indications in the same therapeutic area.

Topics addressed in this report include:

Managing Similar Products or an Integrated Product Portfolio
Optimizing Sales Resources within Franchise Operations
Leveraging Resources for:
Sales Force Alignment & Training
Sales Samples & Collateral Management
Efficient Customer Targeting
Better Territory Alignment
Sales Force Effectiveness & Span of Control
Sales Management & Analytics
Combining Resources for Efficiently Marketing Multiple Products with Similar Indication
Optimal Brand Team Approaches for Product Franchise

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  • 1. BEST PRACTICES,®LLCBest Practices, LLC Strategic Benchmarking Research & AnalysisBest Practices in Launch Optimization:How Promotional Efficiency can be Leveraged toSupport Multiple Products & Indications
  • 2. BEST PRACTICES,®LLCTable of Contents Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Research Overview Participating Companies Key Trends Observed Franchise Value Pyramid Detailed Key Findings & Insights Level 1: Reducing Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Level 2: Gaining Efficiencies & Boosting Productivity Levels. .35 Level 3: Growing the Top-Line. . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Level 4: Enhancing Corporate Reputation. . . . . . . . . . . . . . . . . 73 Critical Franchise Risk Points. . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Appendix: Participant Demographic Data. . . . . . . . . . . . . . . . . 82 About Best Practices, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 852Copyright © Best Practices , LLC
  • 3. BEST PRACTICES,®LLCKey Topic Areas Examined Include:Study Overview Managing Similar Products or an IntegratedProduct Portfolio Optimizing Sales Resources within FranchiseOperations Leveraging Resources for: Sales Force Alignment & Training Sales Samples & Collateral Management Efficient Customer Targeting Better Territory Alignment Sales Force Effectiveness & Span ofControl Sales Management & Analytics Combining Resources for EfficientlyMarketing Multiple Products with SimilarIndication Optimal Brand Team Approaches forProduct FranchiseProject Overview and Research MethodologyBest Practices, LLC conducted this benchmarking study to identify evidence-based benchmarks on thepros and cons of managing multiple products via a franchise approach. The study focused onuncovering proven tactics for efficiently deploying Sales and Marketing resources to reduce thecostliness of launching and promoting multiple products simultaneously.3Copyright © Best Practices , LLCResearch Objective: The study distills effectiveapproaches to leveraging and pooling launch andpromotional resources, employing efficient salesand digital marketing technologies and applyingother innovative promotional approaches tosupport integrated product portfolios or franchises.Research findings can serve as a reference pointfor portfolio managers to most efficiently managemultiple products and indications in the sametherapeutic area.Methodology: Best Practices, LLC engaged 65Sales, Marketing, and Commercial leaders at morethan 50 companies through a benchmarkingsurvey instrument.
  • 4. BEST PRACTICES,®LLCUniverse of Learning: Participating CompaniesMany organizations have faced the “good problem” of a rich pipeline featuring multiplesimilar products to support and promote. Sixty-five executives from 52 leading healthcareorganizations participated and provided experience-based insights for achieving optimalfranchise management.4Copyright © Best Practices , LLC
  • 5. BEST PRACTICES,®LLCBuilding a “Franchise Value Pyramid”Franchise managers maximize the value of portfolio assets in four distinct butcomplementary ways: 1) reducing the average cost of supporting each product, 2) gainingefficiencies across the franchise, 3) driving revenue growth across products, and 4) reapingthe reputational rewards of therapeutic area leadership.Level 2. “Gain Efficiencies &Boost Productivity”Level 1. “ReduceCosts”• Greatest Cost Savings Area =The Field Sales Force (Size, Training, & Effectiveness)LeveragetechnologyLevel 3. “Drive Top-Line Growth”Level 4. “Enhance Corporate Reputationas Therapeutic Area Leader”• Smarter Sampling• Better Customer Targeting• Single Brand Team• Shared Performance AnalyticsThe Franchise Value Pyramid:•ImprovedAccess &Reputation• HCPs willing to useportfolio products• Shrink Territories at Launch• Supplement SF w/Specialist Teams5Copyright © Best Practices , LLC
  • 6. BEST PRACTICES,®LLCKey Findings: Reducing the Cost of SupportingMultiple Products• Franchises Are Highly Successful in Driving SFE, Credibility, Access, & Lower PromotionalCosts: 62%of companies have been highly successful in increasing SFE, and a majority havehad strong success in bolstering rep/company credibility and improved access to physicians.Almost 90% of research partners rated “enhanced sales for all products” and “greater therapeuticarea market share” as modest franchise successes.• Sales Force Size, Training & Effectiveness Offer Greatest Cost Savings Opportunities: Thegreatest 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 byimproving sales force effectiveness (58% of benchmark respondents), reducing sales force size(57%), and improving customer targeting (57%).• Remove Redundancies in Sales Force Size & Customer Details: The most effectiveredundancy-removal areas to explore include sales performance analytics (48% highly effective),rep training (42%), and customer targeting (40%). Companies can benefit from redundancyremoval in sales force size (i.e., not adding another full sales force for new products) andcustomer details – which received strong effectiveness ratings.6Copyright © Best Practices , LLCThe following key findings regarding cost reduction through superior franchisemanagement emerged from this research.1.0 Reducing Costs:
  • 7. BEST PRACTICES,®LLCFranchises Are Highly Successful in Driving SFE,Credibility and AccessSixty-two percent of companies have been highly successful in increasing SFE, and a majority have hadstrong success in bolstering rep/company credibility and improved access to physicians. Almost 90%of research partners rated “enhanced sales for all products” and “greater therapeutic area marketshare” as at least moderate franchise successes.Q. Please indicate in which areas you have been successful as a result of managing similar products as part of anintegrated product franchise.7Copyright © Best Practices , LLCEvaluating Franchise Benefits:4%4%4%4%15%8%15%19%12%8%8%12%28%35%35%19%31%31%27%42%50%52%58%48%42%46%62%58%54%54%46%42%36%31%24%23%15%Increase effectiveness of Sales organizationIncreased credibility for company and sales rep within therapeuticareaImproved physician accessMore motivated Sales teamEnhanced corporate reputation within marketplaceLower costs of launching and promoting each productEnhances sales momentum for all productsGreater market share in franchise therapeutic areaBetter formulary accessReduced overall size of field sales force requiredEasier to enroll physicians/patients in clinical trials for thatTherapeutic AreaUnsuccessful Neutral Somewhat Successful Highly Successful2626262626262626252626(n=)
  • 8. BEST PRACTICES,®LLCTheFranchiseReducing Costs across the Franchise: Whereto Begin?MarketingPatientSupportTrainingZocorCustomerTargetingCentersofExcellenceNewProductPlanningSalesForceMarketResearchNo two franchises are exactly alike. There are many ways and many areas in which tocut costs. The biggest driver of absolute cost reduction for a franchise involves the fieldSales force.ManagedCareMed EdDigitalThoughtLeadersTherapeuticAreaBusinessIntel8Copyright © Best Practices , LLC“Develop a one, three & five year plan to avoidmaking sales force changes too often as areaction to market changes.”-- Senior Director, Marketing Operations“Reduce sales force size!”-- Commercial Excellence Mgr““Define theorganizationbased oncustomerneeds.”-- Nat’l SalesManagerReducingCost 1.1
  • 9. BEST PRACTICES,®LLCNewlyLaunchedProductNewCompoundMatureProductUse Shared Sales Visual Aids to Drive SFE acrossFranchise & Reduce CostsCost Reduction:“Less cost with betterimpact & higher efficiency”-- Country Manager“Saved cost , improvedefficiency” – President“Decrease platform costs” -- Senior Product Manager“Using the same agency toproduce several digitalassets saved money.” --Marketing InnovationManagerIncreased SFE:“Only tool to increase ourSOV” -- Head Marketing“It improves the overallbranding” -- Key AccountManager“Since it’s the samemolecule, makes sense tocombine the salesaid/selling story” --Director, US MarketingSciences“To make it easier fordoctors understand theportfolio approach.” --Product Manager“Enables focus on a lead product and supporting products, limits duplication oftherapy area/ disease awareness messages. Enables better positioning ofproducts within the same indication.” -- Product ManagerShared sales visual aids are a proven way to economically boost Sales ForceEffectiveness. As one executive said: “[They are] the only tool to increase our Share ofVoice.”ReducingCost 1.13
  • 10. BEST PRACTICES,®LLCCommon & Modular Training Combined w/ Disease StateEducation Can Leverage Sales Force Training ResourcesMore than half the benchmark class is effectively using common resources for both coreand modular training. Using shared disease state education information and othercurriculum for multiple indications across sales forces was also rated effective by virtuallyall respondents.(n=21)Q. Please rate the effectiveness of combining and leveraging resources for the following tactics for promoting multiplesimilar products in the same therapeutic area.10Copyright © Best Practices , LLCEfficient Sales Force Training:57% 57%48% 43%19%38%29% 48%48%62%4%5%10%5%14%4% 10%Common Training +Breakout Training:Core training for allsales forces +differentiatedbreakouts by customeror patient typeModular Training:Insert spot materialsfor unique differencesby indication/productrather than newcoursesDisease StateEducation: Samematerials to covermultiple indicationsSales Curriculum:Same materials for allsales forcesTrainer-to-Rep Ratiosrise / fall depending onlaunch or performance(e.g., 1:200 at launchand 1:500 post launch)Highly Effective Somewhat Effective Ineffective Dont UseEfficiencies2.2
  • 11. BEST PRACTICES,®LLCPrimary Care Franchises Can Carry LargerSpans of Control for DMs & TrainersFranchise regional directors manage an average of 26 people, DMs manage 10, and salestrainers oversee 24. Primary Care sales forces are better suited for leaner span of controlratios – averaging 15 personnel managed by DMs and 50 by trainers (compared to 10 and 12,respectively, for Specialty Care).Q. Please estimate the number of people managed at each level in your sales organization serving your multi-productportfolio.11Copyright © Best Practices , LLCSales Span of Control Ratios(Total Benchmark Class):RegionalDirectorsDistrict Managers Sales TrainersMax 1 : 100 1 : 56 1 : 20075th Percentile 1 : 34 1 : 10 1 : 20Mean 1 : 26 1 : 10 1 : 24Median 1 : 7 1 : 8 1 : 625th Percentile 1 : 3 1 : 4 1 : 2Min 1 : 1 1 : 2 1 : 11 : 80-100 1 : 8-12 Not SureEfficiencies2.8Research Note:Primary Care SegmentRDs – 1 : 31DMs – 1 : 15Trainers – 1 : 50Specialty Care SegmentRDs – 1 : 31DMs – 1 : 10Trainers – 1 : 12(n=7)(n=7)(n=18) (n=16) (n=15)
  • 12. BEST PRACTICES,®LLCMost Franchises Use a Single Brand Team forEach IndicationA majority of companies (58%) use just one brand team to manage multi-product franchisesserving a single indication. If a company uses a separate brand team for each productindication, it is much more likely to work closely with the other brand teams in the franchisethan it is to operate in a vacuum.(n=40)Q. How does your organization structure the brand teams associated with a product /molecule that treats multipleindications?12Copyright © Best Practices , LLCBrand Team Structure Used for Multiple Products/Indications:A separate brandteam for eachproduct/indication,with no interaction onthe franchise level,8%A separate brandteam for eachproduct/indication,with significantcollaboration on thefranchise level, 30%One brand team for allproducts/indications,58%Other , 5%Efficiencies2.16
  • 13. BEST PRACTICES,®LLC40% of Benchmark Franchises Have MultipleProducts Competing Under One IndicationMulti-product franchises come in different shapes and sizes. Forty percent of benchmark companieshave franchises which consist of multiple products competing to serve the same indication, whileothers support products derived from the same molecule but with different brand names or indications.Regardless, all franchise managers seek to maximize market share through shrewd resource allocationsthat give each product the best chance to succeed.(n=62)Q. Which of the following best describes your product franchise profile?13Copyright © Best Practices , LLCFranchise Type:2%6%11%11%13%16%40%Same molecule / same brand name formulated fordifferent patient sub-populations (e.g., extended release;pediatric, etc.)Same molecule / different brand names marketed fordifferent therapeutic areasMultiple products sharing a common method of drugdeliveryFixed Dose Combination (same molecule combined withother active ingredients, e.g. Cholesterol reducer +Hypertensive)Same molecule / same brand name formulated fordifferent indicationsDifferent products under different brand names developedfrom same moleculeMultiple products competing to serve same indicationGrowth3.1
  • 14. BEST PRACTICES,®LLCBenchmark partners give voice to the importance of targeting – in multiple dimensions –as a critical success factor. Superior targeting drives reduced costs, increased efficiency,and better uptake at launch.14Copyright © Best Practices , LLCVoices From The Field: Superior Targeting IsKey to Cost Efficiency & Growth“Increased promotional effort on higherdecile targets at launch in specialtyoffices. Added extra resources at PCPlevel required a re-alignment ofterritories.” -- Senior Director, MarketingOperations“Smaller territories with more number ofspecialties & higher frequency ofcoverage” -- Country Manager“Expanded to cover extra urban space to explore thepotential by reducing low/no contributing customerswithin the urban space” -- Head of MarketingGrowth3.7
  • 15. BEST PRACTICES,®LLCMarketing & Business Units Play Chief Role in LeadingFranchise – with Some Sales BackingWhile drawing on the skills and insights of many other groups, franchises are generally led byMarketing (72%) and Business Units (59%). New Product Planning, Global Product Strategy, andespecially Sales also help lead franchises at one-third of organizations. As one Senior MarketingDirector told us: “Get sales leadership buy in from the start - involve them in every aspect , from marketresearch through tactical support creation.”(n=)Q. What role does each of the following groups play in managing your integrated product portfolio?15Copyright © Best Practices , LLCPortfolio Team Structure:64616460606261622%7%9%13%7%6%26%6%27%34%53%52%63%74%56%77%72%59%38%35%30%19%18%16%MarketingBusiness Unit / Therapeutic Area LeadershipSalesGlobal Product StrategyNew Product Planning / CommercializationBusiness IntelligenceManaged MarketsMarket ResearchNo Involvement in Product Portfolio Management Support Role Lead RoleTA Leader4.1
  • 16. BEST PRACTICES,®LLCBest Practices, LLC6350 Quadrangle Drive, Suite 200Chapel Hill, NC 27517www.best-in-class.comAbout Best Practices, LLCBest Practices, LLC is a research and consulting firm that conducts work based on thesimple yet profound principle that organizations can chart a course to superior economicperformance by studying the best business practices, operating tactics, and winningstrategies of world-class companies.16Copyright © Best Practices , LLC

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