Pharmaceutical Product Re-Launch Excellence

Product Re-Launch Excellence: Transforming Lackluster Pharmaceutical Products Into Market Success Stories

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Pharmaceutical Product Re-Launch Excellence

INTRODUCTION AND STUDY BACKGROUND

One of the most difficult marketing challenges in the pharmaceutical and biotech sector today is resuscitating underperforming products. Few market leaders even aspire to this marketing challenge. Yet as the cost of bringing new drugs to market escalates, pharmaceutical companies are increasingly exploring the option of re-launching existing products in an effort to increase the return on these assets. A hallmark of best-in-class pharmaceutical product management is the ability to successfully re-position and re-launch a product that has not achieved its projected return. The opportunity for potential re-launch occurs at two critical junctures in a products lifecycle: A realization of significant miscalculation or errors in the original product launch strategy; Pfizer's Zithromax is a prime example of a product offering that was incorrectly marketed and relaunched with an updated marketing mix and sales force support. Zithromax is now a multibillion dollar brand and a hall of fame candidate for re-launch excellence. Potential product combination or major line extension becomes viable. In this instance, two existing products are combined and must launch a new or complementary positioning in the market. Advair and Prevacid NapraPac are examples of creative combinations. Best Practices, LLC benchmark study focused on uncovering field-proven marketing strategies, practices and experiences in an attempt to provide our clients with a comprehensive template to guide relaunch efforts.

Study Overview
Best Practices, LLC conducted this benchmarking study to assist brand teams in understanding winning strategies and tactics for relaunching products in the U.S. and global marketplace.

Study Objective
This study seeks to benchmark the winning strategies, field-proven tactics and experiencebased pitfalls of pharmaceutical companies that have re-launched or repositioned a brand.

Key Topic Areas

Re-Defining Product Character Investment Levels Strategy & Structure Marketing Mix Optimization Sales Force Management Product Leadership

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Pharmaceutical Product Re-Launch Excellence

STUDY METHODOLOGY & BENCHMARK CLASS

This best practice benchmarking study employed a three-pronged data gathering approach. The field research team designed and conducted a performance benchmark survey that gathered statistical insights from 19 brand managers operating across 14 pharmaceutical and biotech companies. The following companies are profiled in this research study:

Benchmark Brands
Across 19 companies, this study covers such brands as:

Benchmarked Brands

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Universe of Learning
Best Practices, LLC distilled observations and insights from in-depth interviews, survey data and published reports on a total of 19 brand leaders within 14 leading pharmaceutical and biotech companies.

Benchmarked Companies
Abbott Laboratories AstraZeneca Aventis Bayer Biologics Baxter Healthcare DSM Pharmaceuticals Eli Lilly GlaxoSmithKline Merck Novartis Pfizer Roche Schering AG UCB Pharma
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Pharmaceutical Product Re-Launch Excellence

KEY FINDINGS AND INSIGHTS

Best Practices, LLC benchmark study revealed a range of practices which were refined to distill key findings and insights to guide re-launch efforts:

Key Findings and Insights

Successfully re-launching a product requires a smart mix of tactics and resources optimized to meet the challenges at hand.
1. Setting Re-launch Strategy: The pathway to re-launch success is paved by careful analysis of what went wrong during initial launch. 2. Selecting Your Pathway To Success: Assess each re-launch as a unique market situation that requires customized strategy fitting and tactical alignment. 3. Redefining Product Character & Position: Shape a new core message that serves as the catalyst for the revised product positioning. 4. Winning The Hearts & Minds of The Sales Organization: Sales force strategy needs to fit the re-launch approach and scope to place resources where they will make a difference. 5. Winning The Marketing Investment Resources To Succeed: Product re-launch success requires the coordination of multiple factors first of which is determining the marketing resources required to carry out the re-launch strategy.
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To bolster the studys key findings two successful drug re-launch case studies - Zithromax and Wellbutrin provide valuable real world insights:

Wellbutrin: Market Milestones

Re-launch activities alone did not make Wellbutrin a success. A combination of sales force expansion and new formulations enabled by the re-launch have been the key revenue drivers.
Combined Wellbutrin & Zyban Sales

$1,800 $1,600 US $ Millions $1,400 $1,200 $1,000 $600 $400 $200

1989

Wellbutrin Sales GlaxoWellcome merger enlarges sales force Patent expires. No immediate generic release 1992 1993 1998 1994 1995 1996 1997 1999 2000 2001 Wellbutrin SR Launched Zyban Launched Wellbutrin XL Launched

Wellbutrin $800 re-launched by BW

1991

1990

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2003

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Pharmaceutical Product Re-Launch Excellence

KEY FINDING: ASSESSING WHAT WENT WRONG

The first step in evaluating whether or not to re-launch is to determine what went wrong. In extreme cases, such as a product being pulled off the market, this is the easiest step. But most re-launched products will fall into a more murky category where pinpointing precisely what went wrong is less clear. Often, a failed initial launch is much like an aviation failure. It is not caused by one single catastrophic mistake but rather by a series of small errors and miscalculations in strategy and execution. Identifying and understanding the full array of missteps and then prioritizing their influence creates basis for successful solutions.

Why Re-Launch?
There is no single reason why companies re-launch. Rather, it is a combination of factors. Poor execution, brand identity and off-target product positioning trigger the majority of all product re-launches.
What were the rationales for the re-launch of the brand(s)?
Poor Execution Off-Target Brand Identity/Product Positioning Brand Identity Was not Meaningful or Relevant Brand Identity Became Dated and Ineffective Target Customers Preferences Changed Other Unexpected Product Profile Feature Brand Identity Targeted Limited/Shrinking Market Incorrect Pricing N =19
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47% 47% 42% 37% 16% 16% 11% 5% 5% Percent of companies

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Pharmaceutical Product Re-Launch Excellence

SAMPLE FINDINGS: POSITIONING AND BRANDING

There is no concise recipe for re-launching failed products; executives caution that each scenario must be planned with great care and attention to the unique opportunities and challenges that are present. Benchmark partners reflected that their failure analysis helped them identify what tactics needed to be adjusted. The scope and extent of re-positioning and tactical change determined which approach subtle or radical they pursued to re-launch. From benchmark interviews and data analysis, a conceptual model emerged that describes the spectrum along which brand teams inevitably plot their re-launch strategy. The marketing and sales tactics that best address the brands needs tend to reflect the scope and scale of the repositioning.

Mapping Re-launch Strategy

Assess first-launch mistakes and current market opportunities to map re-launch strategy on the spectrum of possible approaches and differing tactics.

REFINE POSITION
Refine First Launch message Sharpen target groups Fine-tune mix Refine field tactics to win first trial use

REFOCUS POSITION
Refocus message Refocus on different target group(s) Shift mix Some new training

EXPAND POSITION
Expand message to greater positioning Expand targets Expand sales force Shift Mix New training

REPOSITION COMPLETELY
Change team Change position Shift targets Change or expand sales forces Revise marketing plan Major new training

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However, underlying every successful product re-launch is a core message that supports and enforces the re-defined brand character. Savvy brand leaders clarify and revise messaging at re-launch to emphasize the products strongest new features or most viable new markets. Successful core message changes in this study are most frequently based upon product efficacy, improved quality of patient life or new population groups that could benefit from using a drug.

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Pharmaceutical Product Re-Launch Excellence

Brand Character
When re-defining brand character, benchmarked companies communicated the importance of re-setting product positioning. This includes re-setting core promotional messages and positioning for unmet medical need. In addition, executives consistently stressed the importance of focusing on product benefits instead of features. Rate the effectiveness of different techniques for redefining brand character and brand story in the market place.
Not Used Not Effective 5% 32% 17% 12% 6% 11% 17% 12% 6% Highly Effective Somewhat Effective

Re-set Core Promotional Message Re-set Positioning for Unmet Medical Need Re-articulate Benefits Re-articulate Positioning
Vis--vis Core Competitor(s)

58% 58% 44% 41% 39% 39%

37% 11% 39% 29% 44% 44% Somewhat Effective

Clarify the Target Patients Re-set Marketing Materials

& Details Somewhat Ineffective

N =19

Not Used

Ineffective

Highly Effective

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Of a dozen factors companies use to underpin their core messaging at re-launch, product efficacy is the most common and is judged by the benchmark respondents to be the most beneficial. Partners also frequently employ safety, unmet medical needs, targeting new patient sub-populations, ease-of-use, therapeutic treatment differences, and quality of life / patient compliance to support new messages.

Core Message
The products core message must align with the re-defined brand character. Consequently, unmet medical need is not only instrumental in re-defining the brand character but also in re-setting the core message. In addition, efficacy is also a top factor contributing to re-defining the products core message.
Which factors were most helpful in re-defining the products core message at re-launch?
Not Used Not Effective 5% 32% 17% 28% 21% 17% 21% 28% 26% 22% 11% 18% 35% N =19 Not Used 28% 16% 6% 11% 28% 18% 18% Ineffective 17% 11% 5% Efficacy Unmet medical need Targeting new patient sub-population with clear target patient description Differences from current therapies Safety Patient quality of life Ease-of-use/patient compliance No/reduced side effects Duration Cost effectiveness Dosing Health outcomes Somewhat Ineffective Highly Effect. Somewhat Effect. 74% 47% 44% 39% 37% 33% 32% 22% 21% 21% 22% 22% 37% 22% 32% 44% 42% 16%

17% 22% 6% 6% 59% 41% Somewhat Effective

Highly Effective

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SAMPLE BEST PRACTICES:

The raw data captured in Best Practices, LLCs study provides a sound basis for benchmarking, yet the true value of the study is embodied in the best practices harvested during field research with benchmark partners. The distilled best practices provide executives not only with the operational insight to prioritize areas where improvement will deliver the greatest value, but also, act as a template to guide the development of effective re-launch strategies. Some of the notable best practices with emerged in the study include:

Carefully orchestrate all communication tools to help physicians understand the products new position relative to the target market of patients who will benefit from the medicine.
One of the most critical aspects of a successful re-launch is communicating new messages to the physician population. Brand teams want physicians to understand thoroughly which patient-type, segment or subpopulation the product treats in order to win initial physician trials. Benchmark partners find that communicating the targeted patient type by diagnostic name or segment is the most effective method of winning physician understanding for a new message. Over half the benchmark class rates this method highly effective and, of brand managers who had used the method, the rating of highly effective increased to 56 percent. No other method garnered above a 29 percent rating of highly effective.

Physician Communication
Communicating patient diagnostic type by name/segment is critical to help physicians identify the best target patients. Most benchmarked companies leveraged a combination of the following tactics to help physicians understand the best target population or the product to win initial physician trial. Which factors most helped physicians understand the patient type, segment or sub-population best for the new product to win initial physician trial?
Not Used Not Effective 22% 18% 29% 22% 6% 22% 22% 71% 47% 6%12% 11% 22% Patient Type by Diagn. Name/Segment Patients Needs/Wants from Patients View Symptom Classification Patients Needs/Wants from Physician View Classif. by Non-Respond. for Current Therapies Other Classification by Side Effects 29% 28% 28% 22% 14% 14% 35% Highly Effective Highly Effective 56% 24% 44% 39% 33% Somewhat Effective 22% Short/Long term cost effectiveness Long term benefits for the patient category Needs & wants from third party payer's view Needs & wants from caregivers/patient family's view Somewhat Effective

N =19

Not Used

Ineffective

Somewhat Ineffective

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Pharmaceutical Product Re-Launch Excellence

Successful re-launch requires significant investment usually above the levels of the entrenched market competition and the companys own first launch.
Re-launches require an enormous amount of resources. In fact, the majority of the benchmark class spent more than 100 percent of the initial launch and market leader investment. While the actual investment levels vary by brand, the amount remains substantial. To be heard in a competitive marketplace, relaunched products need to promote themselves above the established levels of the competition. Benchmark partners revealed that 60 percent of the class invested at 100 to 200 percent relative to the existing competitive landscape during re-launch.

Re-launch Investment Levels

Majority of participants invested more in the re-launch than the initial launch.

What percent of a core brands investment levels are required for a re-launched product to successfully establish its own brand identity?
151%-200% 5% More than 200% 5% 40-60% 26%

121%-150% 32%

"Unless you have an incredible amount of resources you can bring to bear, you need 12-24 months to have the effect you want. - A leading Pharmaceutical Company

N =19

101-120% 11%

81%-100% 5%

61%-80% 16%

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Sales force strategy needs to fit the re-launch approach and scope to place resources where they will make a difference.
Re- invigorated sales force support is crucial to the success of any re-launch effort. Field force adjustment tactics must fit the product teams strategy to re-position or re-focus the brand. In some circumstances, the key to success may lie in expanding sales resources. In other instances, sales force effectiveness may lie in enhanced training. For example, a re-launch product requiring relatively modest changes such as a sharpened image may not require a larger sales force but rather better training for the sales organization or a higher product position among more sales reps. A product that is being expanded to cover new indications might require training

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Pharmaceutical Product Re-Launch Excellence

but also increased staffing. Benchmark partners identified various factors to consider when evaluating sales force changes: Should the sales force size be expanded? Should the product position be elevated within a sales force? Will different customer segments need to be targeted and penetrated? Will new incentives be required to win support? Will new training be essential to sales force success?

The study attempts to support all best practices harvested with valuable real world experiences from the case studies. In the Zithromax re-launch Pfizer innovatively leveraged the expertise of two former competing sales forces to support the re-launch effort:

Zithromax: Sales Force Changes

Pfizer leveraged the merger of two formerly competing sales forces to put new talent in the field.

Sales Force Effectiveness

Pfizer changed the mix of the Zithromax field force, drawing on expertise gained from the internal merger of two divisional sales forces. The Pfizer Labs division launched Zithromax, but the Roerig division had a large hospital selling team, which brought strong relationships with key infectious disease specialists. Pfizer put the hospital selling team and a top antibiotics expert behind Zithromax. The company also brought in an additional field force.

All managers went through a training process to ensure that the sales force would be up to speed for a re-launch.
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Pharmaceutical Product Re-Launch Excellence

ABOUT BEST PRACTICES: Capability Summary

Best Practices, LLC is a research and consulting firm that conducts work based on the principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class organizations. Executives at top companies turn to Best Practices, LLC for actionable and insightful solutions based on the worldclass operations of other leading organizations. Let our researchers uncover the next great insights for you!

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ACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE

This study presents research from Best Practices, LLCs pharmaceutical marketing practice study titled, Product Re-Launch Excellence: Transforming lackluster Pharmaceutical Products Into Market Success Stories. Additional pharmaceutical marketing studies include: Building Pharmaceutical Brand Identity Through Internet Presence Best Practices in Pharmaceutical Brand Management Launching Pharmaceutical Megabrands: Best Practices in Marketing Blockbusters Developing a High-Performance Market Research Function

Contact Best Practices at (919) 403-0251 or bestpractices@best-in-class.com for more information about this research or on how to apply our insights and capabilities to optimize your medical affairs activities.

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