The need to deliver maximum value from a declining number of innovative brands has increased the importance of speed to market as a source of competitive advantage. The priorities for achieving superior launch efficiency are clear, says Simon Holt, VP, IMS Management Consulting - having the right tools in place to create a central platform for fast, effective decision-making. In a new examination of successful product roll-out, Simon sets out the five key components for launch optimization.
1. Market Assessment and Sizing
At the heart of a good launch strategy lies a solid understanding of the market and its key stakeholders. Market sizing and assessment should be a key part of brand planning, and reflect a thorough assessment of patient populations as well as the competitive environment, including the impact of generics, price changes or new entrants. As part of this process it is important to identify the factors that determine physician choice in the treatment pathway and the level of interest in prescribing the new product. Converting this market knowledge into productive call lists is the critical next step and here an analysis of analogous situations can be invaluable.
2. Brand Planning
Optimizing the global brand means selecting the right profile for success, supported by a clinical trial strategy that ensures value statements are credible. To perfect brand planning it is important to use tools that can determine whether marketing resources are achieving maximum market penetration. Internally, it is also essential to set and stabilize a clear marketing strategy and competitive approach that allows all involved to buy into the brand message. Selecting the best indication for the product is critical. Says Simon, “IMS experience shows that launch failures are often due to not getting the indication right or sufficiently clear at the time of launch.” A review of the approach taken by AstraZeneca for Nexium (esomeprazole) reveals all the prerequisites for successful brand planning.
3. Pricing and Market Access
A realistic pricing and reimbursement strategy should be put into place very early in the development phase, and refined throughout the product development process. Simon emphasizes the power of a coherent P&R strategy in significantly speeding market access, a point well illustrated by a recent case study in oncology.
Accessing the key stakeholders and ensuring correct regulatory navigation underpins a fast and successful launch strategy. As regulatory pressures increase with the growing expense of development work, the shift to more personalized medicines, precipitated by progress in biotechnology and genomics, will require even more interaction with the authorities to ensure smooth progression of the clinical trial process. Equally, supporting product claims with the right clinical trial and health outcomes data that is tailored to local market needs is a growing challenge. Appropriate methodologies must be developed.
4. Promotion Management
Effective brand planning must ensure that promotional spend is at the appropriate level and allocated optimally. More specifically, companies must:
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determine the right promotional channels for a new product
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understand when these should be introduced
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and determine the threshold level of investment in sales and promotional mix that is required to optimize share
Market creation through key opinion leader discussions should start early, even prior to launch. With the current squeeze on sales and marketing budgets, however, more accurate market segmentation is required, and ruthless execution of promotional campaigns. In addition, caution must be exercised to ensure that therapeutic claims can be delivered, which requires constant clinical trial monitoring and safety vigilance. The critical factor is to determine the right levels of promotional spend in the context of the market environment. This means establishing whether physicians or healthcare payers are in a position to prescribe or finance the purchase of a product, by analyzing promotional responsiveness and influence networks.
5. Performance Management
Measuring and benchmarking performance allows managers to recognize when ground level decisions are deviating from the agreed strategy and to flag any slippages in the launch process. A performance management system should be in place at least six months prior to launch. Simon cites clear examples of the benefits this can bring. Key performance indicators need to be chosen carefully. Effective performance management should provide valuable insight into the impact of promotional spending strategy, achievement of desired outcomes, and greater understanding of the drivers that stimulate physicians to prescribe.
A working platform for success
By methodically going through these five key steps, total fluency and familiarity with best practice tools can be achieved, along with techniques for a clear, standardized and sequential approach to brand commercialization. Frameworks, templates, guidelines, checklists and tools will support the qualitative and quantitative analysis that needs to be undertaken, and will also provide the standardized documentation of results. “Working through this process once”, says Simon, “will give companies a working platform for fast, effective decision-making, both for current brand planning and future development.”
For more information about how IMS can help with launch planning, please contact Joëlle Rademakers or call +44 207 393 5757.