Background
A pharmaceutical company has nine priority A1 brands in a mix of primary and secondary care, managed until recently by national, regional and global brand managers. Performance of the brands was mixed, and there was no recognition of the company’s bottom line across brands. To understand this using traditional analytics is a difficult feat. The company operates in 107 countries and, taking into account different product/category/country combinations, the quantity of data to collect is significant.
Process
We undertook an intensive four month data collection project, researching the priority markets in terms of volume and/or growth potential. It was imperative to get the full participation of local affiliates, so research was conducted only after identification of local issues with the local marketing teams.
After the research was done, the Eularis process was applied. Firstly, validation within categories to uncover growth drivers, then predictive algorithms for each and then individual brands in each country were analyzed together to uncover where the real growth opportunities were. Out of all the brands and countries analyzed, the ones with the highest growth potential were subjected to even more in-depth analytics right down to the level of messages and tactics with key stakeholders. It was discovered that the company had some serious mismatches between allocation and potential.
Insights
- The client was significantly over-investing in areas with lower growth potential, North America and Japan, which, whilst important markets for the brands, did not justify the percentage of spend they were getting if the company’s bottom line was considered.
- There was under-investment in high growth potential markets such as Asia and Latin America; together receiving only 24% of the global marketing when they should be receiving closer to 34%.
- Three of its brands had the lion’s share of the marketing budget but these were the brands that had already grown and were less likely to grow as much as some of the smaller A1 brands. Imbalances across both the portfolios and regions emerged and if these were addressed, the potential increase in profitable growth could be considerable.
Actions
To address these issues, our client started to reallocate overall budgets across portfolios and countries as recommended by the analytics, as well as across individual sales and marketing activities for each brand in each country for optimal global growth. They freed up some of the investment in the U.S. and put it into where it would provide more return. It was not necessarily an easy process but the Global CFO saw it as a necessary one, given all the issues the industry and the company were facing with investors.
Results
Two years later, results were good. They had continued high growth in priority A1 brands and countries which was higher than their key competitors. Importantly, not only their sales grew but so did the bottom line profit. The investors were also impressed and the share price increased despite a gloomy market. Now the company is displaying the Eularis global results in an Intranet so that individual teams in any country can look at their data and pull out different cuts of data to compare it in different ways.