A new product launch strategy

A new product Launch is always a complex process which requires planning, alignment and actions driven by different functions within an organization. The external challenges of the environment in which a new product is launched add complexity; therefore, a successful product launch requires thoughtful data driven planning and disciplined execution. Launch success is usually driven by the focus given on a powerful value proposition, effective stakeholder engagement and alignment behind the launch. Early and thorough launch preparation is crucial to maximizing the potential of a new addition to your portfolio, but also continuous tracking of the process secures success of the launch.

Building a strong foundation around these elements and supporting them with data-driven facts, from planning to the actual launch, will enable your organization to set realistic targets and achieve goals.

The success of a launch is measurable and should be part of the preparation stage, which will also guide execution.

Methodological approach – outline

Based on the above principles, Sinopsis provides an outline of the methodological approach which covers the evaluation, planning and execution of a successful new launch. The approach is data driven and relies on Sinopsis expertise and specialization in market research for the pharmaceutical market in Cyprus and Malta.

Phase I : Understand current market realities/ opportunities

The development of an effective launch strategy is directly related to identifying strategic challenges and opportunities. Facts and supportive evidence provide necessary input to shape your marketing strategy by capitalizing on the strengths of your products and differentiating from direct competition.

During the planning stage, Sinopsis will utilize existing data from its market estimates to generate insights on:

1. Market size, structure and SWOT analysis
2. Competitive Benchmarking: Understanding the target market by comparing your product to be launched against direct competitive brands – SWOT analysis.
3. Competitor Analysis: Analyze current brand preposition and competitors performance (Market share analysis and Trend development). During the competitive benchmarking process, the products’ attributes of the brands to be launched will be used to identify similar brands already in the marketplace (direct competitors). This analysis helps better understand strong and weak areas to shape the product launch preposition.
4. Channel analysis: A channel analysis beyond the traditional pharmacy channel will be conducted to identify other opportunities worth exploring, either for creating awareness for the product to drive sales (physicians or other medical function) or for alternative channels of distribution.
5. Market strategies: Analyze current market strategies covering pricing and promotional activities for the category in scope. This will include current practices related to distribution performance, promotion, and other promotional mix.
6. The market analysis can set the groundwork for future consideration of other products to be include in a company’s portfolio.

Phase II: Goals setting

Goal setting adds clarity and is an essential part of any successful product launch strategy. Based on a cohort analysis Sinopsis will examine other launches in the same or similar product categories measuring the launch uptake curve which define a realistic estimation of the market share gain.

It’s wise to establish profit margins as one of your product launch phases. Based on the ‘foreseen’ products’ performance as defined from the cohort analysis brand item sales and revenue generated will be defined with break-even item sales and net profit earned. Working backward these numbers will help define numerical goals.  This in return will justify the investment and provide insights on the return of the investment over time. If the launch uptake is steep and sustained will lead to substantial market share achievement.

The above approach will be instrumental in setting the right financial goals for item sales items to cover production/ marketing goals and define the cut of point reaching profitability.

Distribution analysis of similar products will be instrumental in defining the number of selling points to achieve (ND) but also the importance of these selling points to target (WD).

It’s also vital to measure your brand awareness and track progress over time so you can evaluate and optimize your strategy on a regular basis. This part of the process will set realistic goals for the launch and will help plan step by step the launch strategy. Goals can be:

1. Financial defining the number of product units needed to sell in order to cover production and marketing costs but also indicating the turning point when profitability is expected to be achieved. The Return on Investments based on estimated launch cost and estimated market share to gain with quantities and values will be part of the investigation process to enable realistic financial target goals.
2. Market penetration goals (how many selling points to achieve) measured through distribution development,
3. Operational goals: An objective, transparent and quantified focus on performance, measuring results and responding rapidly to issues as they arise should be part of the goal setting.

Market awareness goals: An effective communication strategy will feature a mature multichannel communication model that includes strong digital components, to enable consistent and seamless communication across a broad spectrum of channels.

Phase III: Measure success

Practice has shown that the first 6 months from a launch set the tone and define the lifecycle and success of a product launch. The first six months of a launch has a disproportionate influence on later success. Therefore, Sinopsis will continue assisting on understanding the strengths and weaknesses from the first day from launch to the stabilization of the penetration of the new products into the appropriate channels. Measuring success will be based on the analysis of 2 pillars of information:

• External data: Sinopsis mission is to measure and evaluate the pharmacy channel ongoing. The insights generated from our continues market tracking are instrumental to understand market dynamics, trends and competitive pressure and achievements. Therefore, as a natural continuation of our current offering, Sinopsis will work closely with the sales team to guide them on how to read and evaluate the market response from the new launch. Metrics will be defined based on market research data driven by the goal setting as defined in part2 and continues monitor will enable corrective actions during the launch phase. Specific tools have been already agreed to be developed like the ‘Sales analytics’ tool aiming to measure progress at microlevel (analysis of name pharmacy data) therefore we have the means and methodology to measure your team performance beyond the macro level (the market research instrument)
• Internal data: Analysis of internal data against the goals set is the second source to measure success. Financial results against targets, revenue/ cost and profit analysis are the tools to define current status and give direction for the future development.

Sinopsis proven record on measuring and analysing the structure and trends of a given market provide the necessary ingredients for building a successful business plan and product launch instrument to follow and measure progress over time.