Mixed performance was hard to analyze
A pharmaceutical company had nine priority A1 brands in a mix of primary and secondary care, managed until recently by national, regional and global brand managers. Brand performance was mixed, with no consistent method for recognizing the company’s global bottom line across all brands.
Data collection was difficult because the company operates in 107 countries. This presented them with a bewildering range of product, category, and country combinations. Plus, most of these countries did not have strong data.
Engaging at the local level
Because of the difficulty, the company turned to us for help.
Having spoken to the company to assess its needs, we decided to analyze the client’s brand performance, as well as their marketing spend by channel. We gathered data on the client’s priority markets and analyzed them in terms of sales volume and growth potential.
It was important to get the local affiliates to participate and give their opinions on their biggest challenges. So we began by working with local marketing teams to identify the most pressing local issues. Only then did we begin conducting our research.
Having done the research, we applied our process to uncover the major growth drivers within product categories. Then we used predictive algorithms for every brand in each country and analyzed them together to uncover the greatest growth opportunities.
The brands and countries with the highest potential were subjected to even more in-depth analysis, right down to the marketing messaging and tactics used to engage physicians, payers and pharmacists. We discovered some serious mismatches between allocation and potential.
Over-investing in the wrong markets
The client was significantly over-investing in areas with lower growth potential, like North America and Japan. While these were important markets, they did not justify the high percentage of the marketing budget they were getting.
The client was also under-investing in high growth-potential markets in Asia and Latin America. Together these received only 24% of the global marketing budget when they our analysis suggested they should receive closer to 34%.
Three brands had the lion’s share of the marketing budget. But these brands were already mature and likely to grow much less than some of the smaller A1 brands.
Reallocating budget for a higher ROI
Our client reallocated their spending across portfolios and countries – as well as across specific sales and marketing activities for each brand in each country – as recommended by the analytics. They freed up some of the U.S. budget and reinvested it where it would yield a bigger return.
The process was not easy, but the Global Chief Financial Officer persevered in order to maximize revenues and shareholder value.
Consistent high growth and easy access to information
Two years later, results had improved. The client achieved consistent high growth in priority A1 brands and countries that was significantly higher than their key competitors.
Pre-tax profits grew in line with sales, which impressed investors and led to a rising share price despite a gloomy market outlook for Pharma firms. Now the company displays Eularis’ global results in an Intranet. Individual teams in any country can look at their data and compare performance with other brands and other markets within the company whenever they need to.