2008-12-03 10:05:00 -

Research and Markets (www.researchandmarkets.com/research/ce01cd/the_promotional_la) has announced the addition of the "The Promotional Landscape in US and Europe: Benchmarking Promotional ROI and Optimizing Detailing and Journal Spend" report to their offering.
Promotional activities within the pharma industry operate through various sales and promotional channels with the aim of convincing physicians, patients and payors about the value and efficacy of

products. Return on investment (ROI) is the critical measure of success for such initiatives. However, a clear understanding of the ROI generated across various market and lifecycle settings is essential for companies attempting to optimize their detailing and journal advertising strategies in the future.
'The Promotional Landscape in the US and Europe' is a new report published by We provide detailed strategic guidance for the preparation and execution of successful promotion strategies. This report examines a number of case studies of recent high profile promotional strategies and their associated sales data to provide a comprehensive analysis of the key success factors for detailing and journal advertising across various stages of the product lifecycle. The impact of market and product-level influences on promotional returns are assessed and the most effective methods of measuring promotional performance are also identified.
Improve the effectiveness of your promotional strategies by examining the key factors affecting associated ROI and compare the promotional activities of leading companies with this report.
Some key findings from this report
- US detailing spend has fallen from 4.4% of promoted sales in 2005 to 3.9% in 2007. The proportion of sales revenues allocated to promotional activities is relatively higher amongst EU5 countries than the US, amounting to 8.4% in 2007 compared with 4.2% in the US.
- Returns from detailing in the US have increased from 18.4 to 20.5 over the period 2005-2007. Returns from journal advertising have recorded greater gains, rising from 11.2 to 19.1 in the same period.
- Promotional spend during a product's launch year typically constitutes over 50% of first year sales in the US. This proportion falls to less than 15% in year two and less than 5% by year seven.
- Merck & Co invested the greatest proportion of sales into promotional activities out of the top 10 pharma companies in 2007. This was largely due to new product launches, such as the vaccine Gardasil and diabetes treatment Januvia. Eli Lilly and Novartis were the next largest promotional spenders.
Top reasons to order your copy today
- Assess returns from pharmaceutical promotion in the US and EU5 with this report's detailed breakdown of the ROI levels associated with detailing and journal spend on promoted retail sales by therapeutic category, relative innovation, price level and lifecycle stage.
- Compare how successfully leading companies have executed their promotional strategies with this report's analysis of total retail sales and proportional promotional spend in the US and EU for major players including Pfizer, GSK, AstraZeneca, J&J and Merck & Co.
- Evaluate the most effective promotional strategies for new product launches with this report's case study analysis that includes a high profile launch into a new product category, the introduction of a new drug class, the redefining of an established product category and the launch of a second-generation product.
- Identify the most effective promotional strategies for mature products with this report's case study analysis of the promotional effectiveness of detailing and journal advertising spend for products facing patent expiry, including lifecycle management strategies involving reformulations, line extensions and fixed dose combinations.
Key issues examined in this report
- Effectiveness of detailing. Product detailing continues to be the most effective promotional channel despite increasingly restricted access to physicians. However, improving effectiveness and utilizing channels such as eDetailing will continue to offer incremental returns.
- Promotion across product lifecycles. Although it is necessary for companies to generate significant promotional activity in the early stages of the product lifecycle, the ability to balance these initiatives across various portfolios over time is of great importance.
- New product promotions. New products require significant educational promotion, particularly those launched into new treatment settings such as Gardasil or Champix/Chantix.
- Protecting products close to patent expiry. The classic game theory response to impending patent expiry involves maximizing sales prior to expiry through continued aggressive promotion before restricting all promotional efforts post patent expiry. Brand-level promotion in light of new competition with therapeutic equivalency and a significant price discount is rarely considered to be of value.
Your questions answered
- What is the most appropriate measure for pharmaceutical promotional returns"
- How do promotional strategies evolve across the product lifecycle"
- What key market/product characteristics have the greatest impact on promotional returns"
- Which companies are currently achieving above average promotional returns and why"
- How can promotional activities help to establish market share for new product launches"
- To what extent can promotional activities help to safeguard market share following patent expiry"
- What are the key benchmarks/guidance available from real life case studies that can be applied directly to my current portfolio?
Key Topics Covered:
- Promotional spend and return on investment
- Product-level promotional benchmarks
- The promotional landscape by company
- Promotional strategies for new product launches
- Promotional strategies for mature products
Companies Mentioned:
- EU5
- Pfizer
- GlaxoSmithKline
- AstraZeneca
- Johnson & Johnson
- Merck & Co
For more information visit www.researchandmarkets.com/research/ce01cd/the_promotional_la
Source: Business Insights

Research and Markets

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