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Boomerang – Market Analysis
3.1. Market Analysis Methodology
BOOMERANG’s market analysis is based primarily on needs stated during personal interviews of pharmaceutical company decision-makers (product managers and marketing executives) & market research on its customers (medical practitioners, patients, and the general public).
3.2. Needs Facing Pharmaceutical Industry Communications Programs
Although the market for pharmaceutical communications providers is attractive, this fact alone is not sufficient to provide the basis for a company launch. New “state of the art” concepts need to be developed that meet the communications needs of the pharmaceutical industry.
3.2.1. Need to Close the Gap with the Patient
There is a very poor awareness of pharmaceutical companies/products among patients and the general public. This is caused by the saturation of standard mass-market communications media (print, TV, radio). These standard communications media are one-way and low-impact. Although pharmaceutical companies are beginning to explore the innovative medium of Internet, there is currently a lack of effective product communications programs tailored to the patient. There is also a need for “quality of life” information that is user-friendly to the patient. Therefore, the opportunity exists to rethink and improve the communications process between pharmaceutical companies and the patient.
Closing the gap with the patient is imperative because the patient is becoming more educated regarding healthcare issues and the patient-physician relationship is evolving from one of authority to one where the patient participates in the therapeutic decision making process. The patient will, by influencing the prescriber, be impacting the sales of pharmaceutical products to a greater and greater extent.
BOOMERANG has identified the clear need for the extraction of patient quality of life information from clinical trials which currently focus exclusively on the generation of data demanded by regulatory agencies. By interviewing clinical investigators and impacting the questions asked during the clinical trial, BOOMERANG will be able to generate quality of life data which:
- Will be used for direct-to-patient “pull” marketing campaigns on Day I of product launch.
- Will be used for the prediction of likely areas for additional drug indications, which present opportunities for product differentiation and significantly increased sales.
- Will reinforce the customer-driven aspect of BOOMERANG’s communications services, since “quality of life” information generated during clinical trials can be broadcast to patients. Patients demand product information on their quality of life, not on detailed scientific data or empty product slogans.
3.2.2. Need to Close the Gap with the Practitioner
Practitioners need up-to-date, low-cost medical education/training programs rather than marketing campaigns. Pharmaceutical company communications programs to practitioners can be improved because they are currently broadcast via standard communications methods which suffer from the following drawbacks: standard communications media are one-way and low-impact, and sales/personal relationship efforts by pharmaceutical sales forces/medical visitors suffer from a very crowded environment, and therefore are often resented by practitioners.
This gap with the practitioner needs to be rapidly closed, because OTC and generics inroads are causing prescribers to begin to drift away from highly profitable ethical medications.
3.2.3. Need for Customer-Driven, Interactive Internet Sites
Each of the top 30 global pharmaceutical companies in the world will want an Internet site which broadcasts product-based healthcare information. The reason is that pharmaceutical companies cannot afford to be left behind from a medium whose international outreach is exploding. The problem is that current pharmaceutical sites, if they exist at all (see BOOMERANG’s study of the Internet sites of the top 30 pharmaceutical companies in the world presented in Appendix C), are typically data-driven, so that the information contained within does not necessarily correspond to the information that the customers of pharmaceutical companies need.
3.3. Benefits of Using Internet as the Communications Medium
It is useful to first present the drawbacks of standard communications media so that the benefits of Internet can be drawn in comparison. These drawbacks include:
- Expensive to update and to distribute therefore the message they carry is rarely current.
- Mass-market outreach which lacks the benefits of micro-marketing.
- Communications message is carried passively, which diminishes the impact, awareness, and retention of the message.
- Market growth rates of these media are stagnant.
- Communications message is diluted by the saturation of standard media.
In reaction to the above reasons, BOOMERANG has chosen Internet to broadcast the programs it develops in conjunction with its pharmaceutical clients. Internet has the following advantages:
- The message contained in this medium is inexpensive to update (compared to physical media) and can be broadcast cheaply and rapidly on a massive scale.
- It has both mass-marketing characteristics and micro-marketing characteristics, since users can either be passively tracked through statistical methods, or they can actively respond quickly and cheaply via electronic questionnaires.
- The communications medium lends itself easily to interactivity with the end-user, which greatly increases the impact, awareness, and retention of the message.
- The newness of this medium provides the opportunity for the pharmaceutical company to assist the end-user in maximizing the potential benefits of the medium.
- The market growth rate of this medium is exploding (see Internet market growth data in Appendix Q.
3.4. Market Analysis Conclusion
BOOMERANG has identified an attractive market for the provision of innovative medical communications programs to the pharmaceutical industry. Based on the expressed needs of pharmaceutical companies, we have found room for a new concept that will close the gap between the pharmaceutical company and its customers.
This concept is based on the imperative that pharmaceutical companies ensure that their communications links with its customers are efficient, value-added, and well received. Because of industry pressure to externalize non-core areas such as communications services and the need to solve its communications challenges, pharmaceutical companies will increasingly look to external providers who offer innovative communications programs that strengthen the bond with its customers. BOOMERANG’s pharmaceutical company relationships have responded enthusiastically to BOOMERANG’s concept. A graphical representation of this concept follows.
3.5. Market Case Study
In order to turn BOOMERANG’s communications concept into reality, we are currently developing an Internet site prototype with Novartis, the largest pharmaceutical company in the world, that includes:
- Differentiated content for the practitioner, patient, and general public
- Incorporation of patient-friendly (quality of life data) & practitioner-friendly programs (educational/training programs)
- Usage of a high-impact, interactive media (Internet)
- Internet site adapted to languages/regulations of each major pharmaceutical market
|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
9. Financial Analysis
Internet Site Study
Letters of Intent
|All information herein is confidential and proprietary to Boomerang.|