Optimal Strategix Group: An Introduction
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1 Optimal Strategix Group: An Introduction November 6, No part of Optimal this publication Strategix may Group be reproduced, stored in a retrieval system, or transmitted in any form or by any means whether electronic, mechanical, photocopying, recording, or otherwise without the permission of Optimal Strategix Group. 1
2 Topics for discussion Introductions What is market research? How do PhDs fit in? Who is OSG? What makes us unique? Our methodology Advanced Analytics Examples Opportunities A peek at OSG s culture 2
3 Introductions Alyssa Klein, PhD Director, Delivery Services Satya Varagoor, PhD Head of Operations Denise Houser Director of HR Julie DiPopolo, PhD Project Manager, Advanced Analytics 3
4 Alyssa Klein, PhD Background BA in English, Nonfiction Writing (2001: UPenn) PhD in Communication (2011: Annenberg) Previous Experience Medical Publishing ( ) Gained interest in pharmaceutical industry through writing and editing for advertising agencies, pharmaceutical companies, and industry publications Research Experience ( ) Various health-related research teams (NIDA, CECCR, etc) Methods TA Dissertation Advisor: Joe Cappella Evaluating dimensions of messages exchanged in online support groups for breast cancer patients (and potential effects, though there weren t many!) 4
5 My market research journey At some point, I just needed to see what research could do in the real world. Modeling decision making behavior understanding how patient and product characteristics lead to physician s prescribing choices (mostly forecasting) Forecasting in pharma, but also exposure to the machine that is Nielsen power of data, data, data! OSG Innovation! Helping companies design new products or more effectively market their existing products by understanding the unmet needs of their customers 5
6 Topics for Discussion Introductions What is market research? How do PhDs fit in? Who is OSG? What makes us unique? Our methodology Advanced Analytics Examples Opportunities A peek at OSG s culture 6
7 What is market research? Market research is any organized effort to gather information about customer s needs and preferences Many forms (primary, secondary data) Many types (qualitative, quantitative) Many objectives (health of current brands? development of future brands? Who are my customers?) 7
8 How do PhDs fit in? The goals of most market research projects are very similar to academic research in the social sciences we are trying to understand how people are behaving and why Academic research, introduced into the marketing world, became the father of market research Therefore, the process is quite similar just faster! However, the applications are quite different We need people who have the rigorous research methods and analytical skills to drive design, analysis, and interpretation of our research projects 8
9 A few current examples of projects A client wants to design a patient rewards program to help encourage compliance. What are the potential benefits that would be most appealing and motivating to patients? A client wants to understand which product features will be best received by the target audience. What levels of safety and efficacy do they need to hit in order to be successful in the marketplace? A client wants to more effectively communicate to its customers about their various brands. Who are the segments in their customer base and what messages will be most motivating to each of them? A client wants to understand how to most effectively spend the dollars they have to sponsor medical education opportunities for physicians as they prepare to launch a new drug. What are the biggest gaps in what s available today? 9
10 Topics for discussion Introductions What is market research? How do PhDs fit in? Who is OSG? What makes us unique? Our methodology Advanced Analytics Examples Opportunities A peek at OSG s culture 10
11 Who is OSG? OSG is a Strategic Marketing Consulting and Analytics Firm with Global Resources and World Class Clients Primary offices in Newtown, PA and Bangalore, India Additional offices around the country/globe 11
12 We create value for our clients by focusing on the customer & building a fact base to drive strategic decision making and guide activation efforts Value Identification Determine Growth Potential Value Creation Design Strategy To Realize Opportunity Value Delivery Define Go-To-Market Approach To Capture Growth Opportunity Assessment What are the future sources of growth for business? How attainable are the identified growth prospects? What are the hypotheses for accessing growth? Can business satisfy requirements? Growth Strategy How does the market segment? Which segments should we target? What value proposition will create appeal & a sustainable competitive advantage with target(s) Go-To-Market Strategy What customer experience will deliver value proposition? Offering (Product & Service) Brand/Communication Channel Pricing Empirical Customer & Market Insights 12
13 OSG: Leading publications for thought leadership in marketing strategy and consumer research Forbes July Forbes August Chief Marketer, Sept HBR Nov OSG s leadership has been featured in numerous business magazines in recognition of their depth of knowledge in consumer marketing OSG s senior management have served as expert witnesses in highprofile US corporate law cases (e.g., Apple & Samsung patent case) thanks to their expertise in market research OSG outlines a comprehensive approach to understanding customer sentiment and drivers of purchase behavior OSG shares how CMOs work with CIOs to leverage organizational data to provide holistic customer insight 13
14 ASEMAP SM informs a spectrum of business questions Customer Choice Innovation Segments & Targeting Satisfaction & Loyalty Competitive Intelligence Pricing Value Proposition Validation Messaging & Positioning What features are most important to customers? What unmet needs exist? How do customers make purchase decisions? Which customers should we target that are most attractive? Which dimensions of the customer experience determine customer loyalty? How satisfied are our customers? How are competitors performing in the market? What are our competitive alternatives? What elements of customer choice contribute to the price they are willing to pay? How do we price to optimize profit and capture value? How do we differentiate in the market? What do customers value that we can address? Which messages resonate best? How are we perceived in the market? How can we convey our value? 14
15 The Adaptive Self-explicated Method (ASEMAP ) offers a more efficient and accurate approach to gaining insight Efficiency Each respondent is modeled in real time Results are available soon after field, since modeling doesn t require aggregate data Results tracked while project is in field partial results can be provided Smaller samples can be used in total, or to profile sub-groups Including more attributes does not require greater sample size Can be used as a module in qualitative research Accuracy Best-in-class predictive accuracy Adaptive software focuses respondents on attributes of their individual greatest interest, maintaining their interest and involvement Greater respondent engagement improves data quality with no increase in questionnaire length Insight Include all relevant choice drivers, as ASEMAP can include more attributes and levels than standard methods, and can consist of product characteristics as well as functional and emotional benefits sough Determine which drivers are most important, as ASEMAP generates greater differentiation among attributes Needs-based segmentation can be done since each respondent is modeled individually 15
16 ASEMAP - Adaptive Conjoint Trade-Off Exercise in practice Market Need 1 1. Review and Sort 3 3. Trade-off 2 2. Rank 4 4. Validation (optional) 16
17 Methodology: ASEMAP SM Adaptive Conjoint Trade-off Exercise Optimal Strategix Group uses a unique methodology (ASEMAP ) to derive a true understanding of the importance of the many factors of the offer that influence customer decisions. ASEMAP is a conjoint methodology that is proven to perform best at understanding customer decision making in the real world. The rich understanding of the customer is complimented by the addition of demographic, behavioral, perceptual and attitudinal data. This added context allows for more specific recommendations for growth. In ASEMAP, every respondent reviews all the stimuli in providing their preferences for drivers, providing more robust, detailed and actionable insights. Each respondent performs trade-offs between adaptively selected pairs of attributes, answering the question Which one is more important to you? By how much more? The smart algorithm adapts to responses given, and shows the pairs needed 1. Rank 2. Sort 3. Trade-off 4. Validate 17
18 ASEMAP > Methodology Key Step > Adaptive Pair-Wise Comparisons In ASEMAP, questions are asked using an adaptive self-explicated trade-off methodology Every respondent reviews all the stimuli in providing their preferences for drivers of equity, providing more robust, detailed and actionable insights Each respondent performs trade-offs between adaptively selected pairs of attributes, answering the question Which one is more important to you? By how much more? (see screenshot below) The smart algorithm adapts to responses given, and shows the pairs needed Which of the requirements below is more important to you when choosing a canine oncology drug? By how much more? The length of the bar represents how important each benefit is to you. If, for example, one message is twice as important to you as the other, click on the blue bar at it s right edge and drag it to make it twice as long as the other. Side Effects Efficacy Onset 18
19 A differentiated and powerful approach: ASEMAP Trade-Offs determine the true magnitude of importance in a choice decision Standard Approach Rate the following on a scale of 1 to 5, where: 1= Not at All Important and 5= Very Important OSG Approach Indicate the importance of each attribute in comparison to the other Eye Comfort Cost Eye Comfort 33% 66% Vision Clarity Eye Comfort 60% Long-Wearing Vision Clarity 40% Cost Long-Wearing Cost 30% 70% More noise: Less variability of response and differentiation Greater Signal: High variability of response and differentiation 19
20 RESULTS: What drives customer choice becomes apparent This requires modeling how customers make choices and serves as the underpinning across the commercialization process Concept Evaluation Innovation Pipeline Segmentation Messaging/Positioning Pricing Customer Satisfaction 20
21 Outcome Identify where the differentiated growth opportunities exist LOW HIGH Attribute Importance In comparing the importance of Need Attributes against how well they are currently met in the market, the approach to growth can be revealed. Areas where your organization leads competitors are green, where it lags are red (hypothetical) The size of the bubble reflects the magnitude of the opportunity (hypothetical) Maps can be created for each of the key stakeholders This provides the foundation for offerings that address the customer experience Entry Ticket: Brands are not differentiated, Needs are satisfied by at least some brands Brand Evolution: Benefits are important; Unmet needs exist Low ROI: Current treatments perform well and benefits are unimportant LOW Needs Addressed Market Development: Benefits are unimportant/unmet needs exist HIGH Note: The above chart is for illustrative purposes only and demonstrates possible output. It does not represent actual data or relationships. 21
22 ASEMAP Summary ASEMAP Adaptive Self-Explicated Method The Adaptive Self-Explicated Method (ASEMAP ) offers a simpler web-based approach for multi-attribute preference measurement By using the power of interactive computer data collection, ASEMAP allows for constant sum measurement of a large number of attribute importances ASEMAP produces greater variability in attribute importance relative to Adaptive Conjoint Analysis (ACA) ASEMAP provides a substantially higher predictive validity compared to ACA, Constant Sum and Maxdiff Advantages Best in class predictive accuracy Considers higher amount of factors/attributes Superior results with lower sample sizes Entire sample responds to all attributes Benefits Higher decision-making confidence Understand importance of all relevant choice drivers Specific views into profiles even with smaller samples More robust data set can be used for S/T/P and other analysis 22
23 Details About The OSG Approach OSG recommends a proprietary conjoint methodology for certain engagements because it offers the following advantages: This approach is more flexible, more accurate, and more respondent friendly as published in the AMA s Journal of Marketing Research. Allows for a larger set of benefits/attributes, and each attribute can have as many as 10 levels, creating a more actionable measure of customer preference. It has been proven to be more accurate at predicting the choices customers make. The approach was developed by thought leaders in the field of understanding customer decision making It has been published in literature such as the AMA s JMR 23
24 Julie DiPopolo, PhD Background BA in Psychology (2004: The Richard Stockton College of NJ) PhD in Psychometrics (2011: Fordham University) Previous Experience Teaching (9/2008-5/2010) Statistics, Research Methods, Consumer Behavior Nielsen BASES, PM&D (8/2010-9/2013) Supporting pharmaceutical team Segmentation Consultancy team Structural Equation Modeling team Current Role at OSG (9/2013-current) Project Manager on the Advanced Analytics team 24
25 Advanced Analytics Analytics: using inferences based on data to drive decisions This does not require a sophisticated statistical background (though it helps!) Involves all phases of a study: Questionnaire development Design Data analysis Report presentation Advanced Analytics at OSG: Project management and execution Research and development Best practices Innovative offerings and modeling solutions Big data 25
26 Topics for discussion Introductions What is market research? How do PhDs fit in? Who is OSG? What makes us unique? Our methodology Advanced Analytics Examples Opportunities A peek at OSG s culture 26
27 Topics for discussion Introductions What is market research? How do PhDs fit in? Who is OSG? What makes us unique? Our methodology Advanced Analytics Examples Opportunities A peek at OSG s culture 27
28 Opportunities Analyst Associate Project Manager Director Contact Denise Houser for more information, (P)
29 Topics for discussion Introductions What is market research? How do PhDs fit in? Who is OSG? What makes us unique? Our methodology Advanced Analytics Examples Opportunities A peek at OSG s culture 29
30 We Love to Have Fun 30
31 We Love to Have Fun OSG Team 31
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