Impact of Target Market Segmentation on Consumer Demand: A Success Story on How We Assisted a Leading Biopharmaceutical Products Manufacturer
Biopharmaceutical products play a significant role in enhancing the lifestyle and reducing death rates in patients with cancer, HIV, rheumatoid arthritis, and cystic fibrosis. The efficacy and safety of drugs drive the growth of the global biopharmaceutical products manufacturing sector. In the pharmaceutical industry, the biopharmaceutical segment deals with the manufacture of drugs using living […]READ MORE >>
Biopharmaceutical products play a significant role in enhancing the lifestyle and reducing death rates in patients with cancer, HIV, rheumatoid arthritis, and cystic fibrosis. The efficacy and safety of drugs drive the growth of the global biopharmaceutical products manufacturing sector. In the pharmaceutical industry, the biopharmaceutical segment deals with the manufacture of drugs using living biological systems. Therefore, the production of biopharmaceutical products requires specialized equipment and devices that can support these biological systems.
Also, the costs associated with the procurement of this equipment is high when compared with the ordinary manufacturing equipment. Several such factors act as a restraint, adding to the requirement of more resources and time to set up a biopharmaceutical manufacturing facility.
The global biopharmaceutical industry subsegments include:
- Generic drugs
- Chemically derived drugs
- Over-the-Counter (OTC) drugs
The Business Challenge
The client– A prominent manufacturer of biopharmaceutical products.
Revenue– >$250 billion/year
Area of engagement– Target market segmentation
Objective– To help the biopharmaceutical products manufacturer leverage market segmentation based strategies to identify target markets and develop targeted products rather than generic ones.
A pharmaceutical industry client, specializing in the manufacture of biopharmaceutical products, wanted to leverage market segmentation based strategies to gain detailed insights into the target market groups. The client was looking at identifying the most profitable way to segment end-user groups into different segments. The client also wanted a detailed report on the demographic, geographic, and psychographic variables of the end-users in various segments. Also, by using target market segmentation strategies, the client wanted to outline their business plans to reach end customers.
Additionally, the biopharmaceutical products manufacturer was looking at enhancing their marketing strategy to improve product reach. They also wanted to identify potential customers in every target market and focus on developing personalized strategies using market segmentation solutions.
Results– Offered detailed insights into the different market segments and helped the client analyze consumer demand based on a robust market segmentation strategy.
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Infiniti’s target market segmentation experts carried out extensive research comprising interviews and discussions with leading stakeholders in the biopharmaceutical products manufacturing industry to help the client develop an integrated customer development process. The market segmentation experts also compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.
The Solution and the Business Impact
With the help of Infiniti’s target market segmentation strategy, the biopharmaceutical products manufacturer was able to divide and gain detailed insights into the various market segments. Leveraging market segmentation strategies also helped them to focus on developing a heterogeneous approach to meet the needs of several different sub-targets.
The market segmentation strategy also offered detailed information on the psychographics and demographics of the target markets while taking into account the consumer demand for different segments.
The global market for biopharmaceutical products continues to evolve with the expectation of a positive future with several growth opportunities. The growing demand for bioprocessing technologies will prove to be a significant growth driver for this market segment in the coming years. In response, several leading pharmaceutical establishments are now increasing development efforts on biopharmaceuticals products. Moreover, technological innovations are driving several industry trends, leading to better innovations in drug development.
Biopharmaceutical industry trends:
- Demand for single-use systems and disposable devices- Several leading pharma products manufacturers are now adopting disposable devices. Breakage and loss of production material may cause significant problems to their usage and adoption rate. However, since breakage is a relatively rare occurrence, such hurdles are becoming increasingly less of a problem.
- Demand for continuous processing- There’s a growing demand for the continuous processing technologies from the end-user segments. Suppliers in the pharmaceutical industry have also increased their investments in R&D to develop such systems. This also resulted in many companies introducing chromatography and other multi-column systems for continuous purification.
Trends in the biopharmaceutical products manufacturing sector remain very positive, with no significant threats on the horizon and healthy industry growth occurring globally. The industry will continue to grow at a steady pace, providing new growth opportunities for those who recognize the regulated nature of this industry.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the pharmaceutical industry.