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Pharma secondary packaging market

Infiniti’s Competitive Intelligence Solution for A Prominent Company in The Pharma Secondary Packaging Market: Exploring Key Packaging Innovations And competitive landscape Insights

In pharmaceuticals, secondary packaging constitutes the packaging which does not come in direct contact with the dosage form. Pharma secondary packaging is becoming widely adopted and essential as they offer critical functionalities, such as, for physical and barrier protection, secondary containment, adherence to regulations, and consumer safety. It also creates a buffer and protects primary packages from each other during transportation.

Business challenge

A prominent pharmaceutical company headquartered in San Francisco, CA sought to explore the changing trends in the secondary pharma packaging market by focusing the research on major design/technology innovations and best practices adopted by leading players in the pharma secondary packaging market. Through the engagement, the client wanted to support their future packaging developments and track industry trends over time. By leveraging Infiniti’s competitive intelligence solution, the pharmaceutical company wanted to understand the competitor landscape in the US and European pharma secondary packaging market, new features of secondary packaging being incorporated by competitors, product portfolio descriptions, and competitor strategies to promote adherence.   

Want comprehensive insights into the market drivers, challenges, key industry players, and more in the pharma secondary packaging market? Request a complimentary proposal.

Our Approach

Experts at Infiniti Research started by delving deeply into the pharma secondary packaging market transformation over the past decade in the US and Europe. This involved a well-balanced combination of primary and secondary research. Telephonic discussions were undertaken with over 45 respondents with expertise in the development, sales, marketing, and usage of products and services related to secondary packaging market such as pharmaceutical packaging specialists, packaging engineers, and packaging development experts. The secondary research undertaken by our analysts included comprehensive research materials from company websites, industry news CPA, HCPC, CHPA, packaging digest, and public database.

Through extensive competitive intelligence study and research methodologies, experts at Infiniti Research were able to identify the top pharma secondary packaging designs that are predominantly used. This includes medication adherence packaging, extended labels, and increasing use of sustainable materials in pharma secondary packaging. Furthermore, Infiniti’s competitor landscape assessment also identified some of the key competitors in the US and Europe, their respective packaging initiatives, and critical initiative undertaken to promote adherence.

With a focus to ensure product integrity, better manufacturing efficiency, and enhancing customer satisfaction, experts at Infiniti Research have identified that companies are developing innovative technologies such as thermochromic indicators and contemporary cartons designs. Furthermore, with Infiniti’s recommendation, the client adopted robotics and process automation that significantly improves production output, lowers operating cost, and enhances worker safety.

Business Impact

By leveraging Infiniti’s competitive intelligence solution, the client was able to successfully track their key market competitors and identify some of the most innovative and viable trends in the pharma secondary packaging market. Apart from this client was also able to:

  • Increase investments on their primary and secondary packaging lines by adopting technologies which result in faster turn-around time, fewer errors, and higher adaptability to incorporate and reproduce design changes
  • Collaborate with the CPO to formulate innovative packaging designs which are senior-friendly, child- resistant, medication adherence promoting, and offers unique dispensing mechanisms
  • Expedite early market entry for biologics and personalized medicine by identifying advancements such as 3D printing in pharmaceutical packaging
  • Reduce operational cost by 30% within this first quarter by adopting RPA into packaging operations
  • Focus on packaging designs that are cost-effective and have shorter production turnaround times
  • Incorporate adherence features in the secondary packaging design to help practitioners promote the use of the drugs to the patients
  • Build an effective planning and production process to minimize packaging errors and prevent product recalls, saving the company over $1.2 million within six months

For similar engagements for your business, get in touch with an industry expert

pharma M&A

Capturing Value from Pharma M&A: Critical Considerations for Success

The pharmaceutical industry is one of the major sectors that is actively involved in huge mergers and acquisition (M&A) deals, both in terms of numbers of deals and the amount of money spent. Most companies in the sector, especially the big pharma consider pharma M&A as a major factor to bolster innovation and overall growth. A recent research by our pharma industry experts shows that revenues coming from innovations sourced outside of Big Pharma is currently stands at over 45%. Over the years, several large, game-changing deals have continuously and profoundly changed the competitive landscape of the sector, while smaller yet significant transactions remain an integral part of pharma industry operations.

Why Pharma M&A is a driver of strategic repositioning?

Pharma M&A has become a common practice for companies that have non-diverse pipelines or have top revenue drugs that are nearing patent expiration and subsequent generic erosion. According to industry experts at Infiniti Research, some of key reasons why companies favor pharma M&A include:

  • The critical size requirements across various market segments have increased exponentially over the years. At this rate, it becomes nearly impossible for a single company for companies to survive on their own. This made strategic pharma M&A a necessity for most companies
  • Large mergers in the pharma industry allow bundling of sub-critical businesses, and thereby change the culture and to build new platforms
  • Another motivation for pharma M&A is to capture annual cost synergies by scaling up

For more insights on our portfolio of services for companies in the pharma industry

Consideration for successful M&A

Achieving Successful Integration Post Pharma M&A

Approximately only 60% of pharma merger deals succeed in the long run. A successful merger is one wherein the resulting company achieves the strategic intentions driving the merger when the deal was initially formed. Mergers that fail often show traits including focusing more attention on back-office integration, cost control, and systems consolidation.

Creating business synergies

Revenue increases during pharma M&A can often more difficult to achieve and take longer than expected. During pharma mergers and acquisitions teams must develop strategies such as the degree to which the existing portfolios need to be rationalized, how teams can be used to increase efficiency, how salesforce can be consolidated to remove overlap, and how the projects of each of the brands can be enhanced.

Defining the integration strategy

The successful integration of two companies largely depends on having a consistent approach with strategic intent. Guiding principles, priorities, and governance must reflect the logic behind the merger. A reliable integration strategy must be efficient in articulating both financial and nonfinancial goals, as well as risk-mitigation strategies.

Request a free proposal for more insights on how we can support your pharma M&A efforts.

Pharmaceutical blister packaging

Devising a Proprietary Procurement Model to Reduce Procurement Spend for a Pharmaceutical Blister Packaging Market Client

The global pharmaceutical blister packaging market is expected to expand through 2022, owing to the growth in over-the-counter (OTC) drugs, rising focus on health management, and outbreak of new diseases. Also, the rising demand for safe and tamper-evident packaging is anticipated to propel the pharmaceutical blister packaging market growth. In addition to this, the development of super barrier coating for blister packaging to protect ultra-sensitive drugs is boosting the demand for blister packaging in the pharmaceutical industry. However, with consumers becoming more conscious about the quality of pharmaceutical products and its visual appearance, companies in the pharmaceutical blister packaging market are in the need to ensure quality packaging while balancing the costs of production.

Top Markets: Europe holds the largest share in the pharmaceutical blister packaging market and is expected to retain its dominance through 2025. The experts at Infiniti Research predict that Latin American regions such as Brazil and Argentina will witness steady growth over the next two years.

In a world of complex supply chains and extreme price volatility, business leaders need valuable market insights to make smarter business decisions. Our procurement market intelligence solutions can help you achieve these business objectives. RFP for more insights.

Business Challenge

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The client is a pharmaceutical blister packaging firm based out of North America. Due to the complex nature of the North American pharmaceutical blister packaging market, assessing the company’s overall procurement competence, evaluating suppliers’ pricing and cost structure, and conducting price model analysis was becoming difficult for the company. The pharmaceutical blister packaging client, therefore, wanted to gather data on supply market capabilities, understand how their competitors are managing supply chain operations, and identify key trends driving the market. In addition, they wanted help in developing a better contract negotiation strategy with current suppliers, reduce maverick spend, and enhance operational efficiency. They approached the experts at Infiniti Research to leverage their expertise in offering procurement market intelligence solution.

With Infiniti’s procurement market intelligence solution, the pharmaceutical blister packaging market client also wanted to tackle challenges including:

  • Extending product shelf life, maximizing production efficiency, and improving speed to market
  • Improving patient compliance
  • Creating visually appealing and texturally pleasing designs
  • Increasing visibility and accessibility
  • Protecting drugs from physical damage during transit
  • Customizing packaging to fit the needs of the product

Access to timely, accurate, and actionable market insights is a huge strategic advantage. Our procurement market intelligence experts can help you to gather real-time market and competitive insights. Contact us today.

Our Integrated Approach

To address the business issues and meet the specific requirements of the pharmaceutical blister packaging market client, the experts at Infiniti Research carried out an approach comprising of primary and secondary research. The data gathered through primary and secondary research was validated with market experts and independent consultants. Also, Infiniti’s procurement market intelligence engagement involved tracking the latest developments and procurement trends in the pharmaceutical blister packaging market through secondary journals. The experts also reached out to key stakeholders, thought leaders, and end-users of consulting services to understand their views on the pharmaceutical blister packaging market.

With the help of the procurement market intelligence study, the pharmaceutical blister packaging market client was able to identify their supplier’s cost and pricing structure and develop a sound price model analysis. Additionally, the experts helped the pharmaceutical blister packaging market client to develop a list of suppliers in terms of their business profile, financial structure, and revenue. This helped them to identify the right suppliers for providing them with the raw materials for production.

The experts at Infiniti Research also focused on estimating the current market size, market segments, the latest market trends, drivers, and challenges in the North American pharmaceutical blister packaging market.

Results Obtained

With Infiniti’s procurement market intelligence engagement, the pharmaceutical blister packaging market client was able to evaluate key suppliers’ cost structure and identify the right suppliers. This helped them to increase efficiency, improve compliance, and reduce operating costs. Also, the client was able to accurately analyze spend data and trends, which helped them to efficiently allocate operating budgets.

The procurement market intelligence experts at Infiniti Research also helped the client devise a sound contract negotiation strategy. This helped them to make better decisions regarding new and current suppliers. The experts also helped the client to understand how their competitors are managing supply chain operations. This helped them to strategize their supply chain initiatives and reduce maverick spend across inventory.

Also, by undertaking initiatives recommended by the experts at Infiniti Research, the pharmaceutical blister packaging market client was able to maximize production efficiency and improve speed to market. Understanding customers’ needs helped them to create visually appealing and texturally pleasing designs and drive patient engagement. Also, by using transparent packaging materials, they were able to increase visibility and accessibility.

In addition, the pharmaceutical blister packaging market client was able to preserve the integrity of pills by sequestering each pill inside its own blister in the blister pack. As recommended by the experts at Infiniti Research, the pharmaceutical blister packaging market client also used slim medication blister packs to ease the storage of pills and protect them from physical damage during transit.

By devising a proprietary procurement model, the experts helped the client to identify new cost reduction opportunities and reduce procurement spend by 20%.

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Want to know more about our services for companies in the pharmaceutical blister packaging market? Request more info and our experts will get in touch with you with relevant insights.

Pharmaceutical industry

Generating Huge Sales and Realizing Profits of Over 29% for a Pharmaceutical Company Using Market Intelligence Engagement

Pharmaceutical Industry Analysis

The innovations in advanced biologics, rising population, and access to quality healthcare and pharmaceuticals to middle-class people worldwide are driving the growth of the global pharmaceutical industry. However, the fluctuating economy, legal issues, talent shortage, massive flow of generic medicines, and rising competition are expected to impact the growth prospect of the global pharmaceutical industry. Besides, companies in the pharmaceutical industry are facing decreasing return on investment due to price erosion in key markets. As such, companies in the pharmaceutical industry will need to foresee changing market dynamics and look for other markets to sustain growth.

Our market intelligence analysts can help you to assess profitable opportunities in new markets and provide the information you need to expand operations and accelerate growth. Request a FREE proposal today.

Business Challenge

The client is a pharma company based out of the United States.

As Canada is known to be one of the most profitable markets for pharmaceutical companies, the client wanted to expand their business operations to Canada. Before investing a huge sum into their expansion plan, they wanted to determine their growth potential and assess market opportunities in the Canadian pharmaceutical industry. They approached the experts at Infiniti Research to leverage their expertise in offering market intelligence engagement.

Other challenges that the client encountered were:

CaptureGovernment and security: As policies regarding the use of medicines varied in different countries, the client wanted to understand the policies in the Canadian pharmaceutical industry. In addition, they wanted to understand in-detail the procedure for new drug launch in Canada.

Massive flow of generic medicines: Due to the massive flow of less expensive or generic drugs in Canada, the client wanted to identify strategies to cut down on their production costs and gain a competitive edge.

Identifying the right set of customers: Before expanding their operations to Canada, they wanted to identify the profitable customers to focus on to drive sales.

Need for new and effective medicines: The client wanted to analyze competitors’ product offerings and identify drugs gaining popularity in the Canadian pharmaceutical industry. By doing so, they wanted to invest into similar drugs.

By identifying the potential for a new product or service, we help companies to make strategic business decisions and accelerate growth. Contact us today!

Our Approach

The experts at Infiniti Research followed a four-phased approach that involved:

CaptureMarket scanning and monitoring analysis to understand the regulatory changes in the Canadian pharmaceutical industry. This also involved evaluating the market potential for the client’s offerings in Canada and identifying the capital requirement for setting up new production and distribution units.

Technology assessment to spot the next technological breakthrough and identify cost-effective technologies to enhance the client’s operational efficiency.

Customer segmentation analysis to segregate customers into distinct target segments and identify profitable customer groups.

Competitive intelligence solution to analyze the product and service offerings of the top pharma companies in Canada.

Results Obtained

By understanding the current market dynamics and forecasting the potential business opportunities in the Canadian pharmaceutical industry, the client was able to devise a sound market entry plan. Also, by thoroughly understanding the procedures for launching a new product in Canada, they were able to succeed  clinical trials in their initial attempt. In addition, the adoption of cost-effective technologies helped the client to automate their operations and reduce production costs. This further helped them to reduce the costs of their drugs and better compete with generic drug manufacturers.

By identifying the right set of customers, the company in the pharma industry was able to personalize their marketing and sales efforts for them and generate maximum sales. Also, a detailed analysis of their competitors’ offerings helped them to competitively price their products. Within two years of entering the Canadian pharmaceutical industry, the client was able to generate huge sales and realize profits of over 29%.

Capture

Want to know more about our services for pharma companies? Request for more info and our experts will get in touch with you with comprehensive insights.

Pharma logistics

Identifying Critical Pharma Logistics Challenges in Canada

Every business endures pressure in terms of strict delivery schedules and meeting production efficiency. But when it comes to pharmaceuticals and healthcare product manufacturers, these deadlines become a matter of life and death, due to which ensuring product quality and timely deliveries are paramount for companies operating in this sector. This necessitates them to incorporate a changeover from existing pharma logistics strategies and traditional supply chain practices to new and innovative techniques to improve efficiency. Furthermore, in order to be adequately equipped to distribute pharmaceutical and healthcare products across Canada, pharma companies must be fully aware of the pharma logistics pain-points that the market has to offer.

As research and technology continue to fundamentally transform pharma capabilities, pharma logistics is being forced to adapt to changes in the types of products brought to the market. Request a free proposal to know how our experts can help you adapt to the changing trends in the pharma industry.

Large territories

Cold chains used for pharma logistics in Canada need to be highly robust due to the region’s vast territories. The region’s immense landscape provides challenging driving conditions including long distances, mountain winter conditions in the west, and unexpected weather scenarios that can result in roadblocks to effective delivery such as bridges ruined by rain, roads blocked by ice, and many other hazards. All of these factors have the potential to not only add to major transit delays but can also result in significant costs. Moreover, it can also prove to be difficult for pharma logistics providers to reach places up in the north due to limited infrastructure. In such territories, it may not be possible to place the pharmaceutical products on a direct flight to the required location, so the medicine may need to travel via truck for two days to complete the journey safely.

Extreme weather conditions

Temperatures can sometimes soar to extremes in Canada and this can sometimes compromise the quality of pharma products during transit. The pharma logistics facilities used must be able to protect the products from overheating in the hot climates or from freezing in the cold climates. This places a heavy burden on validating quality systems within the chain. The unpredictability of the weather conditions in Canada, in terms of their severity and duration, makes it extremely challenging for pharma logistics providers to preserve and ensure the quality and timely delivery of products.

Few industries face the scrutiny and demand for excellence as those engaged in pharma manufacturing. Get in touch with us to know more about our solutions for pharma companies and learn how we can help you stay in line with the advancements in the pharmaceutical industry.

Partnerships and collaborations

The pharmaceutical industry in Canada is rapidly moving towards an externalized R&D set up through partnerships and collaborations. A similar trend has been noted in the pharma logistics segment with several manufacturers outsourcing supply chain processes in an effort to benefit from the expertise of pharma logistics providers. However, this comes with challenges of its own. By delegating responsibilities externally, pharma manufacturers risk losing the end-to-end control that they once had on all their operations. Therefore, a stringent and robust quality agreement must be formed between all parties to protect the integrity of the product. Particularly well-defined standard operating procedures must be established regarding how the product and the raw materials will be treated. Cold chain partnerships with pharma logistics companies are largely a matter of trust. Once the cargo is handed to a forwarder or carrier, shippers must rely on their partners to safely steward their temperature-sensitive products through the cold chain. The success of these partnerships relies on effective communication. The best way to ensure effective monitoring of shipments is a truly collaborative approach, whereby all stakeholders charged with moving temperature-sensitive cargo work together to develop and implement the required programs.

Parallel Trade

The recent spate of selling pharmaceuticals from Canada into the US is only the tip of the iceberg. Canadian pharmaceutical companies were buying drugs at a lower price negotiated by the Canadian government and selling them across the border into the US where pricing is higher. This also occurs between borders in Europe between large wholesalers, as well as through black market transactions in developing countries. The danger here is that pharmaceutical companies lose the ability to know where these drugs are coming from. This can be largely avoided by the use of RFID technology.

Learn how you can enhance your pharma logistics capabilities.

Recent Posts

Trends in pharmaceutical industry

Analyzing the Market Innovations and Trends in Pharmaceutical Industry in the United States | Infiniti Research

Analyzing Trends in Pharmaceutical Industry

Rising healthcare costs and economic uncertainties have put US pharmaceutical companies in a state of turmoil. However, on the brighter side, with biosimilars gaining popularity and new drug pricing and reimbursement approaches, pharmaceutical companies will witness rapid transformations over the coming year. Hence, pharma companies are under the pressure to stay abreast with the latest market innovations and trends in pharmaceutical industry. This is where companies realize the need to leverage market trend analysis solution.

Want to know the latest trends in pharmaceutical industry and keep pace with the market innovations? Our market trend analysis can help. Request a FREE proposal today!

Business Challenge

The client is a Canadian pharmaceutical company. The client was looking to expand their operations to the United States. With rapid transformations happening in the US pharma market, the client wanted to identify the trends in pharmaceutical industry and keep pace with the market innovations. The client, therefore, partnered with Infiniti Research to leverage their expertise in offering market trend analysis solution.

Furthermore, the client wanted to:

Analyze the market potential

By analyzing the trends in pharmaceutical industry and understanding the market innovations, the client wanted to understand the market potential for their product and services in the United States.

Understand technological trends in pharmaceutical industry

With the industry-wide proliferation of cloud technologies and artificial applications (AI) driving pharmaceutical industry growth, the client wanted to analyze all the technological trends in pharmaceutical industry in the United States.

Understand rising demand for biosimilars

With biosimilars gaining popularity in the US pharmaceutical market and providing cost savings for payers and patients, the client wanted to analyze how biosimilars are changing the US pharma market.

Analyze rising drug pricing

With the US government tightening up conditions for drug pricing and related instruments such as rebates and discounts, the client wanted to analyze the trends in pharmaceutical industry related to drug pricing.

Analyzing the latest trends in pharmaceutical industry is becoming vital for pharma companies that are looking to enter a new market or expand their business operations. CONTACT US to know how our market trend analysis can help you understand the latest market innovations and adapt to unexpected market fluctuations.

Solutions Offered

As a part of the trend analysis engagement, the experts at Infiniti Research conducted a thorough US pharmaceutical industry analysis and market sizing analysis. This phase of the trend analysis engagement helped the client to understand the recent market developments and estimate the market potential for their products and services. Also, the client was able to identify the market size of pharmaceutical industry in the US.

The experts also leveraged product research engagement to help the client analyze the complete product development lifecycle, trade-offs, and gain insights on product-specific revenues to boost the value proposition.  Furthermore, the experts analyzed technological trends in pharmaceutical industry and monitored how the client’s major competitors employed the latest technological trends in their business processes.

Furthermore, by leveraging Infiniti’s expertise in conducting industry trend analysis engagement, the experts helped the client to understand how biosimilars are transforming the US pharma industry and analyzed how top US pharma companies are spending on biosimilars.

By leveraging Infiniti’s expertise in offering market opportunity analysis, the experts also helped the client to review potential barriers to market entry and assess markets’ readiness for their product and service offerings.

Results Obtained

With Infiniti’s market trend analysis engagement, the client was able to efficiently analyze the trends in pharmaceutical industry and stay abreast with market innovations. Also, tracking emerging trends in pharmaceutical industry and assessing the regional market developments helped the client to devise a market entry plan to enter the US pharma market. Furthermore, within two years of entering the new market, the client was able to achieve a leading edge in the US pharma market and become one among the top 20 pharma companies in the United States.

Trends in Pharmaceutical Industry

pharma industry trends

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Pharmaceutical marketing

Developing a Winning Pharmaceutical Marketing Strategy | Infiniti’s Latest Success Story

Pharmaceutical Marketing Strategy Engagement

With the increasing competition from generic drug manufacturers and the entry of new players, pharmaceutical companies are facing difficulties in capturing the attention of customers. Moreover, the fast-paced transformations in the pharmaceutical industry have made it even more difficult for pharma companies to solely rely on their brand name and traditional advertising techniques to drive sales. With this, pharmaceutical companies are realizing the need to embrace digital transformation and leverage robust pharmaceutical marketing strategies to promote their product offerings.

In today’s competitive marketplace, traditional pharmaceutical marketing strategies can no longer help pharma companies drive sales and profits. Want to know how Infiniti’s marketing strategy solution can help pharma companies devise an efficient marketing plan to promote their product offerings? Request a FREE proposal today!

Business Challenge

The client is a pharmaceutical company based out of Ireland. The company was established in 1997. The company relied solely on TVs and print advertising techniques to promote their product offerings. However, these traditional sales and marketing approaches turned out to be costly for the company due to dynamically changing customer needs and requirements. With this, the company witnessed a huge loss in their marketing budget and this eventually impacted their sales rate. Furthermore, as customers accessed a multitude of platforms to make their purchases, the client’s inability to devise robust pharmaceutical marketing strategies resulted in revenue losses for the company. The client, therefore, approached the experts at Infiniti Research to leverage their expertise in offering pharmaceutical marketing strategy solution.

Solutions Offered

The experts at Infiniti Research followed a four-phased approach to formulating a pharmaceutical marketing strategy. The approaches undertaken by the experts involved determining the client’s target audience, analyzing the competition in the pharmaceutical market in Ireland, setting up a marketing budget, and formulating a pharmaceutical marketing plan based on the insights obtained.

The experts also conducted demo marketing and promotional campaigns and monitored the results. As recommended by the experts at Infiniti Research, the client focused on social media and marketing through influencers. This helped the client to improve their brand presence on social media. Also, as suggested by the experts at Infiniti Research, the client developed messaging apps and chatbots to have a one-to-one conversation with their customers. This helped the client in increasing customer experience and further improved the company’s sales rate. Infiniti’s pharmaceutical marketing strategy helped the client to efficiently utilize their marketing budget and attract new customer segments through targeted marketing and promotional campaigns. Furthermore, Infiniti’s pharmaceutical marketing strategy helped the pharma company to enhance their profit margins by 37%.

Are you facing difficulties in promoting your product or service offerings? Our experts can help you in formulating an efficient sales and marketing strategy plan. CONTACT US to know the best marketing strategies that suits your business needs.

Digital Marketing Strategies for Pharmaceutical Companies

Five Digital Marketing Strategies for Pharmaceutical Companies

To gain more insights into these digital marketing strategies for pharma companies, read the complete article here.

Five Types of Marketing Strategies for Pharmaceutical Companies to Boost Profits

 

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Market segmentation

Market Segmentation: A Key to Success for Pharmaceutical Companies

The idea of dividing a market up into homogeneous segments and targeting each of them with a distinct product or message is now at the heart of marketing theory.

Rising costs and demands for affordable health care continue to challenge the traditional business assumptions and economics of the pharmaceutical industry. Also, this is raising internal development risks, costs, and time requirements for clinical trials. To add to the complexity, pharma markets have become fragmented as providers, patients, physicians, and payers look for focused solutions that have optimal safety and efficacy profits for a narrower population of patients. Additionally, the role of greater transparency, reference pricing, and changes in decision-making are essentially shifting decision-making authority away from individual physicians to healthcare administrators and payers. These dynamics result in the complexity of product decision-making and continue to challenge the effectiveness of traditional commercial models in the pharmaceutical industry. This is where the role of market segmentation comes into play. Market segmentation process enables pharmaceutical companies to move beyond product features and benefits or brand position to see specific needs through the eyes of specific market segments and this is an essential component of success for pharmaceutical companies.

Copy of Copy of banner IR (1)What is Market Segmentation?

Market segmentation is the process of segregating a market of potential customers into segments, or groups, based on various characteristics. The segments created consist of customers who will respond similarly to marketing strategies and who share traits such as similar needs, interests, or locations. The sole objective of the market segmentation process is to be able to design a marketing strategy, mix or program that matches, and is as impactful as possible, for each specific segment. It helps companies spend their marketing and advertising budgets much more wisely. Also, it enables companies to refine their product or service offerings for specific segments. Businesses are more likely to be able to meet the needs of a smaller, targeted segment, and therefore be much more successful.

What are the Different Types of Market Segmentation?

Demographic segmentation

Demographic segmentation is one of the widest and simplest types of market segmentation used. Most businesses use it to get the right set of people to use their products or services. Target market segmentation generally divides a population-based on variables. Demographic segmentation also has its own variables such as gender, age, income, family size, occupation, race, religion, and nationality. This type of market segmentation is most commonly used due to the fact that it has readily accessible information through existing customer relationships and can easily eliminate unnecessary data of the audience with just a few inclusions.

Behavioral segmentation

This is a type of target market segmentation that divides the population on the basis of their usage, behavior, and decision-making patterns. Behavioral segmentation divides your customers by their previous behavior in relation to your brand. It checks parameters including:

  • Previous purchases
  • Awareness of the business
  • Patterns of purchase
  • Usage level
  • Knowledge of the product
  • Rating of product or service

Psychographic segmentation

Psychographic segmentation is a type of market segmentation which uses activities of people, lifestyle, opinions, as well as interests to define a market segment. Psychographic segmentation is very similar to behavioral segmentation. But it also takes into account the psychological aspects of consumer buying behavior. These psychological aspects may be consumers social standing, his lifestyle as well as his activities, interests, and opinions.

Still, want to know more about market segmentation and how it can help companies build robust route-to-market strategies? We’d love to help! Contact us today.

Contact USWhat are the Benefits of Market Segmentation?

Benefit #1: Enhances the focus of the company

Target market segmentation is an effective method to enhance the focus of a firm on market segments. Better focus means better business. This helps in designing campaigns specifically for the target segments and aids in better returns and profitability.

Benefit #2: It boosts competitiveness

Naturally, if the focus increases, competitiveness in that market segment will also increase. This can also help in increasing market share and the chances of a new competitor entering might get low. Additionally, brand loyalty increases. Thus, market segmentation also boosts the competitiveness of a company from a holistic view.

Benefit #3: It helps in market expansion

Market segmentation can help in the immediate expansion of the market of any firm. If your market strategy is based on geography, then while catering to a particular territory, you can immediately expand to a nearby territory. Thus, the market share of business increases resulting in more revenue and profits.

Market Segmentation Strategies: Tick the Checklist

Measurable:

A good market segmentation strategy is one which is able to easily measure leads, sales figures, and engagement rates for any single market. If it’s not, then it probably overlaps too much with different segments and needs to be checked.

Clearly identifiable:

If any single segment overlaps too much with another, then probably it shouldn’t be a segment in its own right. A good market segmentation strategy requires every single segment to be substantially different and unique.

Accessible through promotional and communication channels:

If you are able to communicate with your target segments easily, then you can expect your market segmentation strategy to be effective. It does not matter whether this promotion or communication occurs via social media, advertising, telemarketing or e-marketing. As long as you can reach the consumers within it, you can expect to maximize your ROI.

Durable:

Market segmentation strategies can work effectively if market segments are not fluid but durable. How can you possibly expect to meet the demands, and communicate with, a segment that is consistently shifting and changing? It would be very difficult and would require infinite resources. Therefore, you need to ensure that your market segments are durable and stable in order to maximize your profits.

Responding differently:

For your target market segmentation process to yield maximum benefits you need to check if all of your market segments are responding in the same way to the marketing mix or differently. If the response is the same, then it is likely that they are actually not different segments.

For more information on our portfolio of market segmentation solutions, request for more information.Get More Info

How can Market Segmentation Help Pharmaceutical Companies?

In order to stay competitive in today’s transforming healthcare environment and engage better with physicians and patients, pharmaceutical companies need to shift from being product-focused to being customer-focused. They need to improve the effectiveness of communications and interactions with customers, including both physicians and patients, to meet objectives of marketing and help promote better health outcomes. Market segmentation can help them doing so in the following ways:

#1: Market segmentation in pharmaceutical marketing provides a better way to understand your target customers. This makes it easy for pharmaceutical companies to create marketing campaigns that really resonate with customers.

#2: Market segmentation provides detailed information on consumer personalities, emotions, values, interests, beliefs, and attitudes. This, in turn, can help pharmaceutical companies to identify their issues correctly and provide the required solutions.

#3: Market segmentation in pharmaceutical marketing is a very powerful tool as it looks more closely at the attitudes and motivations of consumers, providing pharmaceutical companies with important information on what customers want and why they want it.

#4: Psychographic type of market segmentation provides crucial information on the factors driving behavioral change among customers. Messaging based on customer attitudes and motivations are more likely to activate desired behaviors and strengthen the relationship between patient and brand.

#5: Target market segmentation helps pharmaceutical companies to analyze augmenting behavioral and demographic data with key insights on consumer personalities and motivations.

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