Brand Preference Mix. -How to boost brands sales? - Principles & practical implementation April 2012

Transcription

1 Preference Mix -How to boost brands sales? - Principles & practical implementation

2 . Introduction The Preference Mix developed by is part of the Performance Booster which aims at optimizing sales dynamics How to boost brand sales? To help pharma companies optimize their sales dynamics, has developed the Performance Booster (BPB) The Performance Booster is an approach that includes the three following components: The Preference Mix (BPM), which drives market share gain The Behavioral Prescriber Segmentation (BPS), which improves the efficacy of promotional investments The Individual Customer Plan (ICP), which formalizes tailor-made promotional activities for an optimal efficiency This document describes how the Preference Mix can be used to: Evaluate the level of preference of prescribers (or other clients) vs. key competitors Understand the factors that determine this level of preference Define the actions to be implemented to reinforce the three components of the Preference Mix (i.e. the corporate, the brand, the service ) Source: Preference Mix How to boost brand sales? 2

3 . Introduction The Preference Mix is a means to create superior customer preference to brands and therefore get a faster sales growth compared to competitors The Preference Mix Preference Mix * Based on an article published by J.-M. Peny in 993 The Preference Mix (BPM) has been developed by * As the great majority of prescribers use several brands for a given pathology: The challenge for pharma companies is to increase the preference of prescribers for their brands to get a bigger share of their prescriptions (vs. competitors) Strengthening the preference of a prescriber for a brand goes beyond securing brand loyalty only To reinforce brand preference, pharma companies should optimize their Preference Mix: The perceived value of their brand (product) The perceived of the services they offer and deliver to physicians Their corporate The links between the three components of the Preference Mix should be well established in the minds of prescribers Source: Building prescriber loyalty, J.-M. Peny et al., SCRIP Magazine, September 993 Preference Mix How to boost brand sales? 3

4 2. Measurement of the Preference Mix Index The Preference Mix Index evaluates the brand performance on each of its preference components, over time and compared to its competitors The Preference Mix Index: Principles 0 BPM Index calculation 74% 5% % Visual Analog Scale 5 x 6.4 x x (74% x 8.2) + (5% x 6.4) + (% x 8.0) = 7.9 The Preference Mix Index (BPM Index) is a measurement tool that takes into account: The relative importance of the BPM components (i.e. corporate, brand and associated service ) per brand The score of the brand, on a -point scale, for each of its preference components The BPM Index can be defined per client (i.e. physicians, pharmacists, nurses, etc.), per indication, per form, etc. The BPM Index scores the clients perception at a given point in time, making it possible to track the evolution of this perception over time and to compare it to competitors, considering: External events (i.e. related to health authorities, competitors and clients behaviors) Internal events (i.e. related to promotional activities, of service offered, new communication strategy, etc.) Source: Preference Mix How to boost brand sales? 4

5 2. Measurement of the Preference Mix Index The BPM Index can be assessed at national level through market research studies and at hospital/department and individual levels through interviews by sales forces The Preference Mix Index: Method National level Hospital/Department level Prescriber level Illustrative Illustrative Illustrative The Preference Mix Index (BPM Index) should be measured, at the national level through face-to-face or phone interviews by Smart Pharma Consulting The number of interviewees should be approximately 50 for specialists and 0 for GPs, in medium to large markets such as France, Germany, Italy, UK, Spain, etc. The rationale behind the marks obtained for each dimension of the BPM Index must be investigated The BPM Index can also be measured at an hospital or hospital department level (i.e. cardiology, oncology, etc.) through interviews carried out by the field forces (i.e. medical reps, KAM, MSL, etc.) of pharmaceutical companies Interviews can be either concentrated on key institutions and/or departments or carried out on all those that have been targeted The reasons that support the evaluation should be captured The BPM Index should be measured at the level of each targeted prescriber through face-to-face interviews carried by medical reps or other field force collaborators Prescribers should be interviewed, ideally twice a year, or at least once a year The medical reps should carefully and precisely identify the reasons that motivate the marks granted by the prescribers for their brands and those of their most important competitors Source: Can be alternatively carried out by in a limited number of hospitals and/or medical departments Preference Mix How to boost brand sales? 5

6 3. Optimization of the Preference Mix Index To optimize the Preference Mix Index of their products, pharmaceutical companies should address a number of key issues Key issues to be addressed How to create a superior corporate image? How to build an appealing corporate identity? How to maintain a corporate that induces the preference of stakeholders? How to deliver innovative services highly valued by customers? How to ensure a sustainable excellence in the execution of these services? How to install a perception of uniqueness? How to generate preference from stakeholders by highlighting specific product? How to leverage corporate and service offering? s Preference Mix How to select and design services that will lead to corporate/brand preference? How to make sure that the proposed services are recognized and memorized as produced by the company and related to the brand? Source: Physicians, patients, pharmacists, nurses, payers, health authorities, etc. Preference Mix How to boost brand sales? 6

7 4. Key benefits of the Preference Mix Index The BPM Index provides pharma companies with tangible information to set strategic priorities and the corresponding tactics to strengthen brand preference From diagnosis to the action plan National level Hospital / Department level Prescriber level The Preference Mix Index will provide precise and relevant information to identify: The strategic levers The corresponding medico-marketingsales initiatives to reinforce the three dimensions of the Preference Mix Each action intended to strengthen these three dimensions should be part of: The national Plan The hospital/medical department Customer Plan The Individual Customer Plan The of execution of these actions will be monitored with specific ABIs and their impact with specific KPIs 2 Objective Strategic lever # Strategic lever #2 Strategic lever #3 Key Actions Medical Marketing Sales Key Actions Medical Marketing Sales Impact on Impact on Impact on Key Actions Medical Marketing Sales Preference Mix Source: Activity-Based Indicators 2 Key Performance Indicators Preference Mix How to boost brand sales? 7

8 5. Preference Mix in practice Ventoline, Symbicort and Seretide are the most prescribed brands for asthma, while Tahor, Crestor and Lipanthyl are the most often quoted for hypercholesterolemia Asthma & Hypercholesterolemia: Spontaneous awareness What are the three brands you most often prescribe for asthma or hypercholesterolemia? Asthma Hypercholesterolemia Ventoline Seretide Symbicort Innovair Bécotide Airomir Singulair Foradil Flixotide Maxair Pulmicort Spiriva Order of quotes: st 2nd 3rd Tahor Crestor 5 4 Lipanthyl 2 5 Zocor 3 Simvastatine 3 Elisor 2 2 Lescol Order of quotes: st Fractal Vasten 2nd Pravastatine 3rd Ezetrol Inegy Generics Number of respondents: 2 Number of respondents: 22 Source: Phone interviews with 43 GPs (March 20) analyses Preference Mix How to boost brand sales? 8

9 5. Preference Mix in practice are a prerequisite to be prescribed but the of associated services and corporate may also play a role to drive brand preference Relative importance of the Preference Mix dimensions What relative importance (%) do you give to the three components of the brand preference mix for your preferred brands? Case Study Efficacy/ of the product (9), tolerability (6) and easiness of use (9) seem to be the key drivers of the brand preference respondents are exclusively sensitive to brand The company has no importance; the only thing I care for is the product (5) I try to ignore pharma companies when I prescribe () I do not prescribe a company () GPs preference for a brand also lays on their experience (9), their habits (8) and promotional efforts (6) 74% 5% % Based on 22 answers from 42 respondents Most interviewees agree that services offered play a role to drive their preference, and for some of them it is even an essential criterion after brand (5) For me, after efficacy and scientific evidence, the 2 nd criterion is the of the relationship with Sales Reps () 3 respondents specifically link their preference for a brand to services provided by the company It is a general rule in my prescription choice. I attach importance to prescription aides, items for patient education and adherence aides provided by pharma companies () Without the support of pharmaceutical companies there are no CME programs () GPs do not seem to consider corporate unless it is a bad In this matter layoffs may have a disastrous impact (2) respondent thinks that it is true that the relationship with the company is still important () Source: Phone interviews with 43 GPs (March 20) analyses (x) : Number of respondents Preference Mix How to boost brand sales? 9

10 5. Preference Mix in practice If brand are the main driver of preference, the of associated services and corporate should also be leveraged for asthma brands Relative importance of the Preference Mix dimensions - Asthma What relative importance (%) do you give to the three components of the brand preference mix for your preferred brands? Case Study Rationale 0 5 Rationale Efficacy and Experience, hindsight only Image of brands based on their own objective or on individual experience of the prescribers with the product appears to be the main driver of brand preference % 70% 4% Based on 63 answers from 2 respondents Presence with physicians Promotion Associated services No associated services No education/training or learning programs Some of the interviewees declare that promotion and relationship with the company especially regarding services offered drive their preference (6) Besides, some of them regret a lack of services (3) Positive quotes Negative quotes Moreover, some of the respondents declare that they only focus on the products and do not pay attention to the pharma company marketing the brand (4) Rationale Image and of a company or its employees Confusion due to M&A Source: Phone interviews with 43 GPs (March 20) analyses (x) : Number of respondents Preference Mix How to boost brand sales?

11 5. Preference Mix in practice In hypercholesterolemia, brand play a key role to drive preference while service comes second Relative importance of the Preference Mix dimensions - Hypercholesterolemia What relative importance (%) do you give to the three components of the brand preference mix for your preferred brands? Case Study Rationale Rationale Efficacy and only Tolerability According to respondents, brand is the main factor driving preference and especially efficacy and effectiveness % 78% 9% Based on 59 answers from 2 respondents Presence with physicians Associated services No associated services Quality of the relationship with the sales reps, availability and presence with physicians and associated services may play a role according to a few respondents (5) Besides, some respondents regret that services are no longer provided (3) Positive quotes Negative quote For 9 of them it is even the only criterion of choice Rationale Image and of a company or its employees Source: Phone interviews with 43 GPs (March 20) analyses (x) : Number of respondents Preference Mix How to boost brand sales?

12 5. Preference Mix in practice A minority of respondents is able to link brands to the company they are marketed by and recognition is higher for asthma drugs, because players are few & well-known Link between brands and companies What are the companies that commercialize those brands? Case Study Asthma Hypercholesterolemia Do not know (40%) Wrong answer (%) Number of answers: 62¹ (Number of respondents: 2) Correct answer (50%) Do not know (62%) Number of answers: 60¹ (Number of respondents: 22) Correct Answer (35%) Wrong answer (3%) Mergers & acquisitions phenomena, license cessions and co-promotion seem to create confusion in GPs mind On genericized markets like hypercholesterolemia several companies have reduced or stopped promoting their brands and especially through face to face calls This may explain the difficulties faced by GPs to associate a brand to the corresponding marketing company Source: Phone interviews with 43 GPs (March 20) analyses Several answers per respondent, depending on the number of brands named Preference Mix How to boost brand sales? 2

13 5. Preference Mix in practice Seretide benefits from a better corporate than Symbicort, while the service of Crestor is perceived as superior to that of Tahor, according to interviewees BMP Index results BPM Index = BPM Index = 7.2 7,8 Corp. 8,0 0 number of quotes: 3 Seretide Corp. 7,3 0 number of quotes: 9 Crestor 6,4 6,7 Asthma BPM Index = 7.7 8,0 Hypercholesterolemia BPM Index = 7. 7,6 Corp. 6,9 0 number of quotes: 3 Symbicort Corp. 7,3 0 number of quotes: 9 Tahor 6,5 4,6 Case Study Seretide s good BPM profile indicates that it is appreciated by respondents Symbicort corporate is lower than Seretide. Thus, it is recommended that AstraZeneca find out the reasons that explain this gap vs. GSK and develop the appropriate solutions to fill it up Crestor seems to be well appreciated by interviewees regarding its effectiveness. Furthermore, AstraZeneca has a strong image among GPs who also appreciate the services provided by the company. Nevertheless during the survey several GPs expressed fears or doubts regarding its tolerability (lack of hindsight) Tahor appears to be appreciated for its effectiveness which results in the scores. In addition, Pfizer benefits from a good among interviewees. However, the service associated with Tahor is significantly lower than the one associated with Crestor. It could be in the interest of Pfizer to concentrate its efforts to become rapidly perceived as good as AstraZeneca in terms of service Source: Phone interviews with 43 GPs (March 20) analyses Average score of the brand of each component of the Preference Mix which is weighted according to its relative importance as stated by respondents Preference Mix How to boost brand sales? 3

14 6. Recommendations The BPM Index should be calculated at national, hospital/department or prescribers level to define strategic priorities and tactics likely to reinforce the brand preference Value of the Preference Mix The Preference Mix (BPM) is a reliable indicator to estimate the relative growth potential of brands Actually, market share gain is function of the practitioners preference for a brand relative to competing ones Amongst the three components of the BPM: are the most important driver with a relative weigh of 74%, followed by Quality of services associated, 5%, and Reputation of the marketing company, % The relative importance of these 3 components differs across and within therapeutic areas, and by brand By measuring the performance of their brand vs. competitors on these 3 dimensions, marketers will be able to: Define their strategic priorities to leverage their strengths and address their weaknesses Evaluate the impact of their strategies and corresponding tactics on the different dimensions of the preference mix Smart Pharma Company recommends that the BPM Index be calculated for each targeted client (e.g. GPs, specialists, KOLs, etc.), once or twice a year, at national level through a market study and at hospital/hospital department or individual level through sales force interviews Based on the analyzed results, a series of customized actions will be defined and implemented by client, following the Behavioral Prescribers Segmentation (BPS) principles developed by Smart Pharma Company Source: Phone interviews with 43 GPs (March 20) analyses Pharma Marketing Tool box, J.-M. Peny,, 2008, 23 p. Preference Mix How to boost brand sales? 4