Market Segmentation Aids a Company Specializing in Industrial Biotechnology to Develop Better Marketing Campaigns for the Target Segments
Industrial biotechnology is one of the most promising fields for resource conservation, pollution prevention, and cost reduction. It is every so often referred to as the “third wave in the healthcare industry.” Rising demand for new technologies such as recombinant technology, DNA sequencing, fermentation, tissue engineering is expected to drive the popularity of industrial biotechnology […]
Industrial biotechnology is one of the most promising fields for resource conservation, pollution prevention, and cost reduction. It is every so often referred to as the “third wave in the healthcare industry.” Rising demand for new technologies such as recombinant technology, DNA sequencing, fermentation, tissue engineering is expected to drive the popularity of industrial biotechnology among various industries, including the pharmaceutical industry.
Our recent analysis shows that the companies specializing in industrial biotechnology for the pharmaceutical industry are facing challenges such as:
- The Current Investment Environment: Given the weakened economy, investors are wary of investing in industrial biotechnology companies given the absolute amount of money they need to start-up and come on line. However, getting to scale, involves more time and money than in other industries such as information technology. Also unique to industrial biotechnology investment is the need for companies to take feedstock requirements into account in their investment plans.
- Cost Containment and Cost Cutting: Trends in this area indicate industrial biotechnology companies are increasing their outsourcing in the regions that improve productivity and reduce costs. Moreover, company budget increases are not being directed toward rebuilding an in-house staff that had been reduced or eliminated in recent years.
Many such factors are compelling companies to leverage the use of market segmentation solutions. Market segmentation solutions help companies in the pharmaceutical industry to segment their marketing efforts based on demographic data and improve their performance. These solutions help companies in the pharmaceutical industry to create robust marketing campaigns to improve customer loyalty which, in turn, increases the lifetime value of the customers. Furthermore, market segmentation solutions help firms specializing in industrial biotechnology to gain insights into the latest pharmaceutical industry trends.
The Business Challenge
- The Client: Industrial biotechnology company
The client, a leading industrial biotechnology company, wanted to improve their business strategy to enter new market segments and achieve better bottom-line results. The client also wanted to re-strategize their branding strategy without comprising on their offerings. The company wanted to gain an understanding of their current market position and profile different consumer groups.
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Infiniti’s market segmentation experts followed a blended approach, comprising interviews and discussions with leading stakeholders in the industrial biotechnology market to help the client identify the key market segments and allocate their marketing budget effectively. The experts further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client identify lucrative opportunities in the pharmaceutical industry.
The Solution and the Business Impact
With the help of Infiniti’s market segmentation solution, the industrial biotechnology company was able to segment the market in terms of demography and geography and accordingly allocate resources to increase their performance. Additionally, the client was able to gain an understanding of the product portfolios and subsequently develop a focused marketing strategy to maximize their potential in the pharmaceutical industry.
In contrast with some mainstream pharmaceutical industry segments, industrial biotechnology today is trending toward increased growth and profitability. Trends affecting the industrial biotechnology industry include increased state, regional and local initiatives aimed at developing and maintaining a skilled workforce and increasing company budgets and having an expanded presence of biotechnology-centered incubators and economic development centers. This will increase the number of industrial biotechnology companies and products present in the market in coming years.