BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 1Market Research& New ProductDevelopmentwww.gene2drug.com
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 2Agenda•  About BioInformatics, LLC•  About Market Research•  The R...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 3About BioInformatics, LLC§  Founded in 1994§  Support clients ac...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 4About BioInformatics LLC•  Conducting market researchexclusively o...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 5About BioInformatics LLCProject team includes scientists,statistic...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 6Market Research
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 7Purpose of Market Research§  Market research is the process of ga...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 8Why Conduct Market Research inNew Product Development?§  The prod...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 9When NOT to Conduct Market Research§  Research results not action...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 10Intelligence FocusBusiness EnvironmentMarket TrendsCompetitorsCus...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 11Customer IntelligenceCustomersIdentityLocationNeedsMotivationsBud...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 12CustomersCompetitor IntelligenceCompetitorsIdentityFinancial Stre...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 13CompetitorsCustomersMarket IntelligenceMarket TrendsSizeStructure...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 14Environmental IntelligenceBusiness EnvironmentPolitical EventsEco...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 15Off the Shelf ReportsPros Cons•  Offers a quick overview of amark...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 16Custom ReportsPros Cons•  Can offer powerfulinsights in competiti...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 17TheResearchProcess
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 18The Market Research ProcessDefining theproblem & theobjectivesDev...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 19Defining the Research Objectives§  Establishing the project’s pu...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 20Choose the ApproachSecondary Research/Desktop Research•  Data tha...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 21Sources of Secondary Information•  Publications/journals•  Meetin...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 22Value of Secondary SourcesPros Cons•  Depth of information:Enhanc...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 23Primary Sources§  Academics§  Clinicians§  Science Journalists...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 24Value of Primary SourcesPros Cons•  Generally cooperative•  Speci...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 25Identifying the SampleWho or what type? Where should they be from...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 26Types of Primary ResearchIn-Depth Interviews§  Exploring complex...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 27In-Depth Interviews!
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 28Focus GroupsChief, Molecular Diagnostic & EpidemiologyColumbia Un...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 29Quantitative Survey – Collecting DataMarket SegmentRegionApplicat...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 30Quantitative Survey - AnalysisNorth America EuropeUnqualifiedResp...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 31Types of Primary Market ResearchAnalyses§  Market Estimation§  ...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 32Market Estimation§  Market Size: Measurement of the total volume...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 33Concept Testing§  Concept Testing: This is the process of utiliz...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 34Pricing Studies§  Price Elasticity Testing: Consumer sensitivity...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 35Customer Satisfaction and LoyaltyStudies§  Determine whether a c...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 36Market Segmentation Research§  Segmentation divides a market int...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 37Brand Performance Evaluation•  Brand Positioning Research: Ascert...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 38New ProductDevelopment
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 39Why Develop New Products?§  New product development is critical ...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 40Types of New Products§  Improvements and Revisions of Existing P...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 41Factors Common to SuccessfulNew Products§  Early product definit...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 42Challenges in New ProductDevelopment§  Shortage of new product i...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 43Causes of New Product Failure§  Design Failure§  High developme...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 44The Stage-Gate ProcessLaunchImplementationFeasibilityIdeasGATE 1E...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 45Use Market Data to Reduce Risk45HighLowProject TimeProject RiskPr...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 46Generate and Screen Ideas (Stage 1)•  Generate ideas for new prod...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 47Research Options in Stage 1Involve Customer Input into the Design...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 48Parallel Activities Fuel Feasibility(Stage 2)R&D activities: doin...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 49Determine Product Feasibility•  Build business case: estimate mar...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 50Market Test New Product ConceptOnline SurveyDetermine “Must-have”...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 51Determine the Number of PotentialCustomersReal-Time PCR(qPCR)West...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 52Aligning Unmet Needs and ProductFeaturesIllumina/Solexa Sequencin...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 53Cross-Functional Teams ComeTogether in Development (Stage 3)Techn...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 54Activities that Occur in Development•  Confirm end-user receptivi...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 55Research Options in Stage 3Identify Beta-test SitesScreening Surv...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 56Price Sensitivity AnalysisVan Westendorp PriceSensitivity Analysi...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 57Unit Demand Estimation0.05.010.015.020.025.030.0 $500,000$450,000...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 58Market Adoption Modeling
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 59RateMyProduct™
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 60RateMyProduct™60
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 61RateMyProduct™$1,500•  You quickly learn what’s working – and wha...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 62Product Launch (Stage 4)•  Measure awareness•  Fine-tune pricing•...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 63Post-Launch Research OptionsDetermine Awareness of New ProductInt...
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 64www.gene2drug.comGreg ThompsonBusiness Developmentg.thompson@gene...
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BioInformatics LLC Corporate Capabilities

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Since 1994, BioInformatics LLC has provided critical market intelligence to major suppliers serving the life science, medical device and pharmaceutical industries. We support clients across the entire market spectrum — from scientific research to diagnostics and therapeutics — providing high-level management with strategic market insights.

Our multi-disciplinary team of scientific experts and business analysts creates value for our clients by combining market research experience with scientific knowledge. We offer a variety of services that enable executives to see themselves, their market and their competitors through the eyes of the most important information source of all—the customer.

BioInformatics offers both custom market research services as well as off-the-shelf recent research reports. Our custom research is tailored to the specific needs of the client’s management team, guiding product development, marketing, sales and executive strategy. Our published reports allow marketing professionals to share in the results of broad-based market studies that provide access to high quality research at an affordable price.

As one of the first firms to recognize how the Internet has transformed market research, in 1997 BioInformatics established The Science Advisory Board, an online panel of thousands of life science researchers, physicians and biomedical professionals. This global community of scientists provides direct, qualified access to the life science market. Because of this innovative approach, we can gather critical market data in days, rather than weeks, reducing costs by pulling qualified survey respondents directly from our advisory board.

For over a decade, we have been consulting to leaders in the life science market, including large diversified manufacturers and distributors, smaller specialty suppliers, financial institutions, advertising agencies, non-profit societies and major scientific publishers. Find out what we can do for you.

For more information about BioInformatics' product and service offerings, please call 703.778.3080 x 13 or email information@gene2drug.com.

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BioInformatics LLC Corporate Capabilities

  1. 1. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 1Market Research& New ProductDevelopmentwww.gene2drug.com
  2. 2. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 2Agenda•  About BioInformatics, LLC•  About Market Research•  The Research Process•  New Product Development
  3. 3. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 3About BioInformatics, LLC§  Founded in 1994§  Support clients across the life scienceindustry—from research product suppliersto pharmaceutical companies§  Use a variety of research techniques:• Surveys• Focus Groups• Expert Interviews§  Conduct custom research, including:• Markets• Products• Marketing Communications• Sales Channels• Brand Health
  4. 4. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 4About BioInformatics LLC•  Conducting market researchexclusively on scientific markets:– Lab products– Analytical instrumentation– Biotechnology research& bioprocessing– Drug discovery & development– Molecular diagnosticsmanufacturing  &  material  sciencechemical,  food  &  beverageenvironmental  testingclinical  diagnosticspharmaceutical agriculture  biotechlaboratory  productslife  sciences
  5. 5. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 5About BioInformatics LLCProject team includes scientists,statisticians and businessanalysts.Instant access to a 73,000member scientific online panel.An Overview of Your Epigenetic Research© 2009 BioInformatics, LLC www.gene2drug.com 3-17* Totals are based on number of times an item was selected.* Percentages are based on number of respondents.68%57%55%47%23%20%14%10%10%5%0% 10% 20% 30% 40% 50% 60% 70% 80%Gene regulationDisease mechanismsBiomarkersBasic biology of epigeneticsTherapeutic targetsStem cellsGenomic imprintingTransgenerational epigeneticinheritanceTissue repair/regenerationX chromosome inactivationRespondents 200Gene regulation 135Disease mechanisms 115Biomarkers 110Basic biology of epigenetics 94Therapeutic targets 46Stem cells 41Genomic imprinting 27Transgenerational epigeneticinheritance 21X chromosome inactivation 10Question 9*(check all that apply)Conduct market research for allmajor suppliers in the industry.
  6. 6. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 6Market Research
  7. 7. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 7Purpose of Market Research§  Market research is the process of gatheringand interpreting data about customers andcompetitors within a target market.§  Market research is carried out to:•  Support decision making•  Reduce risk
  8. 8. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 8Why Conduct Market Research inNew Product Development?§  The product must appeal to the customer(however widely defined)§  Timely market research can help you mold theproduct to the consumer’s need/wants§  Market research tends to point out successes andfailures before products are launched “for real”§  If you are going to fail — fail early
  9. 9. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 9When NOT to Conduct Market Research§  Research results not actionable§  Closed mindset§  Vague objectives§  Cost outweighs benefits§  Data documenting the obvious
  10. 10. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 10Intelligence FocusBusiness EnvironmentMarket TrendsCompetitorsCustomersStrategicTactical
  11. 11. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 11Customer IntelligenceCustomersIdentityLocationNeedsMotivationsBudgetPurchasing AuthorityTechnical RequirementsSegmentSuppliersPerceptionsSatisfactionConstraints
  12. 12. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 12CustomersCompetitor IntelligenceCompetitorsIdentityFinancial StrengthAnnual SalesCustomer BaseStrategiesTarget MarketsAlliancesR&D FocusStrengthsWeaknessesCostsPerformance
  13. 13. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 13CompetitorsCustomersMarket IntelligenceMarket TrendsSizeStructureSegmentsBarriersTypical MarginsGrowth RatesCost StructuresDistribution ChannelsProduct DiversityRegions
  14. 14. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 14Environmental IntelligenceBusiness EnvironmentPolitical EventsEconomic ConditionsSocial PrioritiesEthical ConsiderationsTechnological AdvancesMarket TrendsCompetitorsCustomers
  15. 15. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 15Off the Shelf ReportsPros Cons•  Offers a quick overview of amarket•  Confirms what one alreadyknows•  Provides a starting point ona market, product, etc.•  Dated information•  Limited depth and breadth•  Not customizableBottom Line•  Can provide valuable insights when the report is specificenough to meet your needs•  When your budget is limited
  16. 16. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 16Custom ReportsPros Cons•  Can offer powerfulinsights in competitivestrategies (i.e., productdevelopment, advertising,technical support) bymeasuring marketplaceeffects•  Highly customizable•  Expensive (>$10,000)•  Time consuming (4 – 8weeks)•  Balancing internalstakeholders andprioritizationBottom Line•  Useful when the cost of failure/inaction is high•  When off the shelf reports are not specific enough for yourneeds
  17. 17. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 17TheResearchProcess
  18. 18. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 18The Market Research ProcessDefining theproblem & theobjectivesDevelopingthe researchplanCollecting theinformationAnalyzing theinformationPresentingthe findings1 2 3 4 5
  19. 19. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 19Defining the Research Objectives§  Establishing the project’s purpose through effective communicationbetween the decision maker (you) and the researcher (me)§  Goal: Decide on clear cut research objectives§  Accurate definition of a project’s purpose requires:•  Identifying all relevant issues•  Deciding which of the issues are worth examining further•  Prioritization§  Effective Communication is essential – communicating the variousstakeholder’s perspectives§  Higher level managers may want strategic information, you mayneed tactical information.§  Especially important when the purpose of research is exploratory
  20. 20. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 20Choose the ApproachSecondary Research/Desktop Research•  Data that are readily available from othersourcesPrimary Research•  Data obtained directly from knowledgeablesources to fulfill a specific purpose
  21. 21. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 21Sources of Secondary Information•  Publications/journals•  Meetings/congresses•  Press releases•  Patent filings•  Business filing audits(e.g., revenues, units,prescriptions, sales force,product detailing, promotionalspending, etc.)•  Advocacy groups•  Government agencies•  Industry groups•  Professional societies•  Academic sites•  Special interest groups•  Medical sites
  22. 22. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 22Value of Secondary SourcesPros Cons•  Depth of information:Enhance generalunderstanding of industry•  Breadth of information:Multiple sources•  Price: Relatively low cost•  Accuracy: Conflictinginformation•  Timeliness: Data is usually6 to 18 months old•  Time consuming:Huge volume of dataBottom Line•  Valuable when used in conjunction with other knowledgeto shape your understanding of a market•  When a cursory view is all that is needed•  Highly regulated markets.
  23. 23. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 23Primary Sources§  Academics§  Clinicians§  Science Journalists§  Former Employees§  Vendors§  Consultants§  Special Interest Groups§  Industry Organizations§  Wall Street Analysts
  24. 24. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 24Value of Primary SourcesPros Cons•  Generally cooperative•  Specialized industryknowledge•  Good source of statistics•  Timely information•  More relevant insightsthan secondary sources•  Relatively low cost•  Often difficult to control –use a third party•  Cannot or will not providespecific data on targetcompanies
  25. 25. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 25Identifying the SampleWho or what type? Where should they be from?How should they be chosen? How many?
  26. 26. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 26Types of Primary ResearchIn-Depth Interviews§  Exploring complex issues with thought leaders or highlyqualified responses.Focus Groups§  In-person – handling tests, instrument evaluation§  Online – Ad testing, provide stimulus§  TelephoneOnline Surveys§  Great for collecting the opinions of a large number ofpotential customers
  27. 27. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 27In-Depth Interviews!
  28. 28. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 28Focus GroupsChief, Molecular Diagnostic & EpidemiologyColumbia UniversityMedical CenterAcademicSequence Detection SystemCore Facility ManagerM.D. Anderson Cancer CenterClinicaliQ Real-Time PCR Detection SystemModeratorAssociate ScientistAltana Research InstitutePharmaChromo4 Four-Color Real-Time System•  Highly targeted•  Dynamic discussion•  Real-time results•  Great for showingstimulus to potentialcustomers (ads,concepts, websites,etc.)
  29. 29. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 29Quantitative Survey – Collecting DataMarket SegmentRegionApplication AreaProduct PerformanceAttributesOverall ProductSatisfactionSupplier PerformanceAttributesOverall SupplierSatisfactionLoyalty to SupplierExpected BudgetConcept ReceptivityPreferred SupplierPurchase HistoryNorth America EuropeUnqualifiedRespondents*TotalRespondentsCount Count Count CountBiochemical assays 91 48 232 371Cell-based assays 124 83 327 534Hybrid assays 89 39 157 285Other 2 1 7 10None of the above 0 0 22 22Total Respondents 124 83 399 606North America EuropeUnqualifiedRespondents*TotalRespondents% % % %Biochemical assays 73% 58% 58% 61%Cell-based assays 100% 100% 82% 88%Hybrid assays 72% 47% 39% 47%Other 2% 1% 2% 2%None of the above 0% 0% 6% 4%Total Respondents 124 83 399 6061. Which of the following assaytypes do you use in yourresearch/work? (check all that apply)Geographic Region1. Which of the following assaytypes do you use in yourresearch/work? (check all that apply)Geographic RegionInclusion CriteriaScreening
  30. 30. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 30Quantitative Survey - AnalysisNorth America EuropeUnqualifiedRespondents*TotalRespondentsCount Count Count CountBiochemical assays 91 48 232 371Cell-based assays 124 83 327 534Hybrid assays 89 39 157 285Other 2 1 7 10None of the above 0 0 22 22Total Respondents 124 83 399 606North America EuropeUnqualifiedRespondents*TotalRespondents% % % %Biochemical assays 73% 58% 58% 61%Cell-based assays 100% 100% 82% 88%Hybrid assays 72% 47% 39% 47%Other 2% 1% 2% 2%None of the above 0% 0% 6% 4%Total Respondents 124 83 399 6061. Which of the following assaytypes do you use in yourresearch/work? (check all that apply)Geographic Region1. Which of the following assaytypes do you use in yourresearch/work? (check all that apply)Geographic RegionPricing ModelsMarket Size EstimationDemand ProjectionsBrand AnalysisTrending Analysis
  31. 31. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 31Types of Primary Market ResearchAnalyses§  Market Estimation§  Market and Concept Testing§  Pricing Studies§  Customer Satisfaction Studies§  Market Segmentation Research§  Customer Decision Research§  Brand Performance Evaluation
  32. 32. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 32Market Estimation§  Market Size: Measurement of the total volumeand/or value of all sales in a market.—§  Market Share: Proportion of the total market heldby a business, product or brand.—§  Growth Rate: Annual increase in product sales orpopulation within a given market.
  33. 33. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 33Concept Testing§  Concept Testing: This is the process of utilizingqualitative and quantitative methods to assessconsumer response toward a product beforeintroducing it into the market. It is also used tocreate communication designed to amend theattitude of consumers about existing products.
  34. 34. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 34Pricing Studies§  Price Elasticity Testing: Consumer sensitivity tochanges in the price of a product is assessed.—§  Demand Estimation: Estimation is made about aproducts demand by conducting research.—§  Sales Forecasting: The level of sales isdetermined according to the demand for a givenproduct. Based on this, a business future salesprospects are estimated.
  35. 35. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 35Customer Satisfaction and LoyaltyStudies§  Determine whether a company s products orservices meet the expectations of customers andcreating brand loyalty.§  Satisfaction can be measured through multiplecustomer touchpoints:•  Quality of a particular product or service•  Customer-business relationship•  Price-performance ratio of a product or service•  Customer expectations
  36. 36. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 36Market Segmentation Research§  Segmentation divides a market into groups (i.e., segments)of customers with similar needs or characteristics who arelikely to exhibit similar purchasing trends.§  Specific customer groups may require different products,services, or marketing approaches.§  Types of segmentation:•  Geographical (region, country, etc.)•  Market (academic, industrial, etc.)•  Demographic bases (age, gender, etc.)•  Psychographic bases (values, personality, etc.)•  Behavior bases (usage, loyalty, etc.)•  Needs based segmentation
  37. 37. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 37Brand Performance Evaluation•  Brand Positioning Research: Ascertainhow a product stands in the market relativeto a similar product by a competitor.•  Brand Equity Research: Determine whatfactors motivate people to select oneproduct over another.
  38. 38. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 38New ProductDevelopment
  39. 39. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 39Why Develop New Products?§  New product development is critical to long-termsuccess§  Changing environment creates new demands andneeds§  A way of getting new and keeping old customers§  Effective way of obtaining a competitive advantage§  Source of growth§  New market entry
  40. 40. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 40Types of New Products§  Improvements and Revisions of Existing Products (26%)§  Additions to Existing Product Lines (26%)§  New Product Lines/Functions/Applications (20%)§  Cost Reductions (11%)§  New-to-the-World Products (10%)§  Repositioning (7%)
  41. 41. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 41Factors Common to SuccessfulNew Products§  Early product definition§  Offer a strong relative advantage§  Have stronger top management support§  Reflect better understanding of customer needs, and beatthe competition to market§  Are launched with larger budgets§  Quality execution of marketing, technological andproduction activities§  Exhibit higher performance-to-cost ratios and highercontribution margins
  42. 42. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 42Challenges in New ProductDevelopment§  Shortage of new product ideas§  Fragmented markets§  High development cost§  Shortage of Cash/Capital§  Faster development time§  Shorter product life cycle
  43. 43. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 43Causes of New Product Failure§  Design Failure§  High development cost/price§  Failure in market research findings:•  Overestimated demand and size of market•  Positioning problem•  Ineffective communication/promotion•  Unexpected reaction from competitors•  Poor timing
  44. 44. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 44The Stage-Gate ProcessLaunchImplementationFeasibilityIdeasGATE 1EstablishProjectGATE 2Commit MajorResourcesGATE 3Approval forLaunchMarketing strategy developmentFinalize ManufacturingBusiness case developmentConcept testingIdea generationIdea screeningConcept developmentMonitor launchMake adjustmentsProduct extensions
  45. 45. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 45Use Market Data to Reduce Risk45HighLowProject TimeProject RiskProjectKnowledge
  46. 46. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 46Generate and Screen Ideas (Stage 1)•  Generate ideas for new productdevelopment•  Ensure your customers are part of theinnovation process•  Select the best ideas using market data
  47. 47. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 47Research Options in Stage 1Involve Customer Input into the DesignProcessCustomer Focus Group(s)On-site Customer VisitsRefine New Ideas with ThoughtLeader InterviewsIn-DepthInterviewsMeasure Receptivity to New IdeasAmong Potential CustomersShort Online SurveyDetermine Market TrendsPublished ReportsFocus Group(s)
  48. 48. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 48Parallel Activities Fuel Feasibility(Stage 2)R&D activities: doing experiments,scoping out the IP landscape,assessing the competition, settingspecificationsMarketing/Product Managementactivities: building the business case,estimate market size, number ofcustomers, pricing, competitiveenvironment, VOC
  49. 49. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 49Determine Product Feasibility•  Build business case: estimate market size, number ofpotential customers, pricing, demand and revenueestimates•  Understand product trade-offs, price implications andimplications on demand based on product features•  Use market data to refine your concept to ensuresuccess
  50. 50. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 50Market Test New Product ConceptOnline SurveyDetermine “Must-have” and “Preferred” featuresets of the new product concept.Understand end-user barriers to adoption andworkflow bottlenecks.Features and Benefits to CustomersFocus Group(s)Research Options in Stage 2Estimate Demand and Revenue for ConceptOnline SurveyDemand estimates, receptivity, likelihood to purchase, price elasticitycan be generated very quickly and economically to determine marketfeasibility before R&D investment.Determine Number of Potential CustomersIncidence data combined with secondary researchon the number of researchers
  51. 51. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 51Determine the Number of PotentialCustomersReal-Time PCR(qPCR)Western BlottingCell/Tissue CultureDNA MicroarraysTransfectionCell-Based AssaysMass SpectrometryNGSHigh-ThroughputScreening (HTS)Stem CellsBisulfiteConversionBioInformatics maintains a proprietary incidence estimation of the % of researchers performingspecific techniques in a given region. This data combined with population sizes determinedthrough secondary data collection can be used to estimate the number of potential customersand market size.% of life science researchers
  52. 52. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 52Aligning Unmet Needs and ProductFeaturesIllumina/Solexa Sequencing (n=68-132)Brandname/companyCitations in peer-reviewed publicationsCustomerCustomer trainingFinancingLevel of technologicalinnovationMaintenance/servicewarrantyPromotions/discountsSales repsTechnical supportDerivedImportanceSatisfaction MoreLessLessMore
  53. 53. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 53Cross-Functional Teams ComeTogether in Development (Stage 3)Technical MarketFinancialOperations
  54. 54. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 54Activities that Occur in Development•  Confirm end-user receptivity•  Finalize product design: size, packaging andperformance-specifications•  Determine pricing•  Develop (tactical) marketing plans and prepare forlaunch•  Validate the business case•  Transfer to operations: scale-up, production andquality control
  55. 55. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 55Research Options in Stage 3Identify Beta-test SitesScreening Survey to potential customers torecruit those most interestedAssess Pricing Strategy to DetermineAppropriate Price PositioningStructured QuestionnaireUtilize the van Westendorp pricingmethod and/or Juster Probability Scaleto understand pricing.Test Marketing MessagesEnd-User Market SurveyAssess end-user receptivity to concept names,message, logos and advertisements.RateMyProductAffordably and quickly assess marketreceptivity, marketing communications, pricingand differentiation
  56. 56. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 56Price Sensitivity AnalysisVan Westendorp PriceSensitivity Analysis providesthe optimal price point forvirtually any product. Inaddition, this powerful analysisuncovers the points at whichcustomers will perceive yourproduct as “too cheap”, “tooexpensive” or “priceindifferent”.Van Westerndorp Price Sensitivity Analysis
  57. 57. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 57Unit Demand Estimation0.05.010.015.020.025.030.0 $500,000$450,000$400,000$350,000$300,000$250,000$200,000$150,000$100,000LCMS Clinical Analyzer Price (USD)EstimatedPurchaseQuantityper100LabsNorth America (n=102)UK/Ireland/Netherlands (n=76)Germany/Austria/Switzerland (n=68)France/Belgium (n=41)Sweden/Finland/Norway/Denmark (n=25*)Spain/Italy (n=43)
  58. 58. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 58Market Adoption Modeling
  59. 59. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 59RateMyProduct™
  60. 60. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 60RateMyProduct™60
  61. 61. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 61RateMyProduct™$1,500•  You quickly learn what’s working – and what’s not…•  100 potential customers learn about your product•  Can be used to test receptivity amongst differentregions (US vs. EU)•  Price testing (run two using different price points)•  Evaluate receptivity amongst different customer groups•  Determine the product features respondents are mostexcited about – tailor your marketing message
  62. 62. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 62Product Launch (Stage 4)•  Measure awareness•  Fine-tune pricing•  Calibrate sales strategy•  Assess customer satisfaction•  Monitor inventory
  63. 63. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 63Post-Launch Research OptionsDetermine Awareness of New ProductIntroductionEnd-User Market SurveyAssess end-user awareness to productname, message, logos and advertisements.Focus Group(s)Understand Customer Perceptions of LaunchedProduct, Assess Follow-on FeaturesRateMyProductMeasure awareness over time and continue tointroduce new customers to your brandedproduct using RateMyProduct
  64. 64. BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 64www.gene2drug.comGreg ThompsonBusiness Developmentg.thompson@gene2drug.com703.778.3080 x22Mary FollinMarketing and Salesm.follin@gene2drug.com703.778.3080 x13BioInformatics LLC is the premier research and advisoryfirm serving the life science tools industry. By leveragingour online professional network of tens of thousands ofbiomedical researchers, we have supported more than300 companies and provided insights that lead to betterbusiness decisions. Our expertise includes assessing thesize and attractiveness of markets, optimizing productconfigurations and pricing, validating corporateacquisitions, measuring customers’ brand loyalty, andevaluating brand strength and positioning.Since 1994, BioInformatics LLC has been providing off-the-shelf reports, custom-designed studies and marketanalysis that enable companies to understand theirmarket and competitors through the eyes of the mostimportant information source of all—the people who buytheir products.

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