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 Boomerang – Market Characteristics

2.1. Strong Growth for the Global Pharmaceutical Industry & its Vendors

The pharmaceutical industry has historically been one of the healthiest sectors in the world. Global pharmaceuticals sales increased 7.5% (Source IMS) annually over the last four years. Forecasts of annual growth rates for the next four years continue to show excellent growth rates of 6.75% (Source IMS). The market for vendors to the pharmaceutical industry is therefore expected to share these same strong growth rates.

2.2. Communication Program Externalization by Pharmaceutical Cos.

Large pharmaceutical companies externalize portions of business sectors that do not fit their core competencies of R&D and production, particularly peripheral sectors such as communications. Reasons for this outsourcing include the fact that small product marketing teams cannot hope to handle in-house the marketing/communications needs ofsophisticated, heavily regulated products. In addition, pharmaceutical companies cannot internally master the need for constant review of market trends, government regulations & new technologies.

The externalization rate of communications programs by pharmaceutical companies is accelerating because 1) pharmaceutical companies save money by eliminating expensive internal communications/marketing staffs, 2) price pressure on “me too” drugs is forcing pharmaceutical companies to enrich the pipeline of innovative drugs, placing increased emphasis on R&D which further encourages the subcontracting of non-core competency areas, and 3) corporate reengineering and M&A activities are consolidating the industry and its activities (focus on core competencies), increasing the need for communications service externalization.

The pressure to outsource communications services presents an excellent opportunity for providers of medical communications programs to the European pharmaceutical industry.

2.3. Client Categories

There are two basic client categories of interest to BOOMERANG.

CATEGORY 1: These are the largest global pharmaceutical companies, with headquarters primarily in France, Germany, Switzerland, the UK, and the US. These companies undergo intense pressure to develop rich drug pipelines and therefore typically subcontract communications programs to a large extent. They can afford to finance and expect world-class communications programs. This segment demands quality, creativity, innovation, and on-time delivery of programs; expectations which tend to reduce the importance of cost.

CATEGORY 2: This category contains medium-sized pharmaceutical companies. These are typically nationally-based, have a limited number of affiliates, and market their product to a limited number of countries. These companies do not have the internal competencies to implement high-performance, innovative communications programs and therefore have to fully subcontract these services. The downside is that their external marketing budgets are limited compared to CATEGORY 1. Cost is therefore an important factor in the purchasing decision.

BOOMERANG has chosen initially to target CATEGORY 1 based on its extensive contacts within this category and its desire to provide top-notch communications programs that are insulated from cost priorities. BOOMERANG plans to focus on the following individual targets:

Boomerang Pharmaceutical Company Targets

Company Location 1995 World Ranking 1995 Sales in Millions of Dollars Existing BOOMERANG Contacts
Novartis (HQ) Basel, Switzerland 2 11,207 YES
Hoffinann-La Roche (HQ) Basel, Switzerland 7 7,100 YES
Hoechst (affiliate) Paris, France 4 10,000 YES
Lipha (HQ) Lyons, France 12* 578** YES
Bayer Pharma (affiliate) Paris, France 16 4,728 YES
SmithKline Beecham (HQ) London, England 9 6,603 YES
Rhone-Poulenc Rorer (HQ) Paris, France 15 5,142 YES
Pfizer Pharmaceuticals (HQ) New York, USA 8 7,072 YES
Glaxo Wellcome (HQ) London, England 1 12,600 NO

*Ranked number 12 in France, no world data available.
**Sales converted to dollars from French francs at a rate of 5.7 francs to 1 US $.

Through our extensive research on the structure of the pharmaceutical industry, we have demonstrated that the above categories are the most useful for the following reasons:

  • Our personal competencies and those of the people we are going to hire make it unnecessary to distinguish between OTC and Ethical drugs, since we have the competencies to develop communications programs for both of these product categories.
  • Creating geography-based categories are not relevant for our particular positioning, because the technological vehicles (Internet) we use transcend geographical boundaries. The services are global by essence, and therefore our offer will reflect the image of this global approach.


Table of Contents Appendices
0. Executive Summary
1. The Company
2. Market Characteristics
3. Market Analysis
4. Competitive Strategy
5. Company Strategy
6. Marketing Plan
7. Production Plan
8. Management
9. Financial Analysis
The Offer
Resume Highlights
Internet Site Study
Letters of Intent
Financial Statements
All information herein is confidential and proprietary to Boomerang.
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