Finding out about Your Market
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Purpose of Market Research
Market Knowledge
 Time to Market
 The Product
 Defining the Market
Implementation of Marketing Strategy
Sources of Information
Preparing for Q & A
Summary
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Purpose of Market Research
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Targetted Product Design & Development
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Product Value
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Market value
Rate of uptake
Return on investment
Portfolio fit
Investor Confidence
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the consumer
address a specific need
impact on established practices
Return on investment
Market knowledge
Competitor analysis
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Market Knowledge - Timing
Requirements for market knowledge at start-up
depends upon the time to market for different
sectors.
New drug discovery
Diagnostics
Engineering products
IT/e-commerce
10 - 15 years
3 - 5 years
1 - 3 years
1 - 2 years
However, the principles remain the same
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Product/Market SWOT Analysis
Aspects to know and understand
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Your product - benefits (& limitations)
The consumer
The target market and its potential
Your competitors: current products/pipeline products
The product positioning and USP’s
Follow-up support & products
The market dynamics:
 Growing vs Mature vs Declining
 The generic phenomenon
 Tagamet/Zantac effect
Effect on positioning of company
Keep a history file with decision tree
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Product Positioning
Features versus Benefits
FEATURES
High-tech
Valuable Intellectual Property
Novel Approach
“new is Nice”
BENEFITS
Consumer/end-user
Distribution network
Competitive edge
CLAIMS
Credible
Proven
Cost to deliver
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Product Benefits (Cont)
Cost Benefit
If the only clear benefit is cost, project risk is
high, investor confidence will be low.
Competitive edge lost if:
- raw material costs increase
- Manufacturing/distribution costs increase
- Low cost competitor enters market
- Brand leader reduces price.
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Define the Market (The niche)
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“Our product targets a total world market
valued at £8 billion annually and at a
conservative estimate we shall capture 0.5% of
that market within 12 months”
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“Our product targets a niche market valued at
£120 million annually, within a total world
market of £8 billion. We expect to build sales to
capture 25% of our niche market progressively
by year 3 with the potential to achieve 40% at
peak”
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Define the Market
Market values in £millions
800
7,700
30
120
90
Analgesic agents
Opioid Analgesics
Niche
Opportunity within niche
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Implementation of Marketing Strategy
4 Main Options
Own marketing/distribution
Full sales dollar
Slow penetration
Marketing Partnership
30-40% of sales dollar
Rapid penetration
License-out
Lump-sum plus royalty
Loss of control
Sell Product
Lump-sum
Considerations
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The added-value chain
Exclusivity vs non-exclusivity
Territories
Variations in value from market to market
Performance criteria
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Sources of Information
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Credible public information
 Journals/Newspaper articles
 Internet
 Competitor annual reports
 Questionnaires
Professional memberships
Peer reviews  endorsement
Company partnerships  endorsement
“In-house”managed Focus Groups
Management experience
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Sources of Information (Cont)
Market Research
 A large number of organisations (Internet)
Connect Pharma, Data-Monitor, FT Reviews, Scientific Generics,
IBM-Wilkersons, PA Consulting, Scrip, Andersen
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Market Research Reports
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Commission Focus Group Report
Commission Research
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Relevance?
Quick
Variable cost
Customised
Takes time
Expensive
Focussed approach required
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Preparing for Q & A
Management knowledge & understanding
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Market/Product SWOT analysis
Market intelligence
Investor’s portfolio
Marketing strategy
Fit with company strategy
Resources and cost to achieve
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Summary
Product Concept
Product Benefits
Customers
Territories
Credible
Market
Opportunity
Competitors
Market Positioning
Market Value
Marketing Strategy
Investment
Resources
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