Doing more with less.h.wilson

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  • 1. Hillary M. Wilson26 February20131

2. Todays Focus: The Mature Brand 2012 may be have been the year that the patent cliff reached its height with $33 billion of sales at risk but the impact of loss of exclusivity will continue to reverberate across the decade, with more than $290 billion of prescription drugs sales due to be exposed to generic competition between now and 2018. A series of products are near simultaneously going off patent. In years past, the rates of erosion were substantially less. Sales from a single new drug are insufficient to compensate for a series of existing ones expiring. No doubt, the patent cliff is reshaping the industry, but the good news is that the market for prescription drugs will grow by 3.1 percent per year between 2011 and 2018. What this means for efficiency experts? its time to work differently and with less.26 February 20132 3. Example Opportunities to Do More WithLess in Pharmaceutical Marketing Established Brands Agency Consolidation HOW: Working with Strategic Sourcing My Value Card Analysis HOW: Data Collection & Analysis A Mature Brand Model HOW: Redesign the Process Leveraging Service Representatives HOW: Value-add Analysis26 February 2013 3 4. 26 February 2013 4 5. Case Study An Established Brands (EB) team is organized so that one brand team memberhandles a certain Advertising area for all the Established Brands: for example, oneperson handles HCP Advertising, one person handles Consumer, one person handlesDigital, and so on. The dept. includes Brand A, Brand B and Brand C as well as othermature brands. Since each brand had their own Advertising agency for theseservices, this is a highly inefficient way to use agencies since each person handling theirarea has to deal with several Agencies that support each brand.Issues: Based on the size of the brands and the promotional budget there were redundancies inAccount Management and Fees that were costing a great deal of money. With a small team of marketers the responsibilities were siloed due to little collaborationbetween Agencies of Record (AORs). This was especially true in Consumer and HCP The EB team needed better collaboration across channels to be as efficient and resourceful aspossible with messaging and tactics Established Brands needed an agency with a proven track record of working with peri/postLoss of Exclusivity brands to support innovative non-personal selling models.26 February 20135 6. Straddling Multiple Agencies forDifferent Brands Brand A AOR#1 Marketer Brand B AOR#1HCP Brand C AOR#1 Brand A AOR#2 EstablishedMarketer Brand B AOR#2 Brands Consumer Brand C AOR#2 Marketer Brand A AOR#3 Brand B AOR#3 9 Managed Markets AORs Brand C AOR#326 February 20136 7. Actions Taken The Established Brands team put out a Request for Information (RFI) to identifyagencies that fit our criteria of being able to stretch from HCP to Managed Markets andConsumer. If they could not do it all then they were asked them to define how they wouldhandle covering all of the business (i.e. consultants, holding company partners) The RFIs were evaluated and a Request for Proposal (RFP) was issued to 5 agencies. The RFP gave specific assignments to the agencies including Case Studies from work onother Established Brands, how they would do internal branding of the EB team and aninnovation challenge based on having an imaginary slush fund. The agencies had the opportunity to come in and present to the team. The EB team was able to identify 1 AOR that both demonstrated a high level ofknowledge and experience with Established Brands and the ability to work across allareas of the business. Within 1 month all marketing assets had been transferred to the new AOR and they hadbegun handling all of our day to day business for all EB products.26 February 2013 7 8. Results Established Brands was able to identify 1 AOR that both demonstrated a highlevel of knowledge and experience with Established Brands and the ability towork across all areas of the business. Within 1 month all assets were transferred to the new AOR and they hadbegun handling all of our day to day business. Total agency fees were reduced by approximately $2m annually.26 February 2013 8 9. 26 February 2013 9 10. Case Study Established Brands was asked to give back promotional budget in 2012. Because of this many programs needed to be cut including the My Value Card patient savings program for Brand A. At the time, the My Value Card Program was viewed by the team as a necessity to keep the level of revenue Brand A was currently bringing in. Nevertheless, the brand decided to stop all dissemination of My Value Cards to the salesforce as of May 2012. The expectation was that the amount of activations of new cards would decrease. Thiswould be followed by a decrease in claims shortly thereafter. Instead claims continued to increase resulting in Brand A exceeding revenue targets. New Enrollments160,000PTD Cumulative Claims2,000 140,000120,0001,500 100,000 80,0001,00060,000 40,000 500 20,0000 026 February 2013 10 11. Actions TakenWorking with the co-pay card vendor and a third party analytics partner an Impact Analysiswas performed on the My Value Card Program.Finding: Most patients on the program were continuing patients. In addition, the continuingpatients were least impacted by the co-pay program in remaining adherent. The conclusion wasthat continuing patients were Adherent patients already and the card was not drivingincremental revenue. The data showed 2 things:There would be minimal impact to the Brand A business by shutting down the offering to Continuing patientsThe focus of the co-pay card program needed to be on New Patients, a smaller group and less expensive to support with a savings card.26 February 201311 12. Results A decision was made to continue the offer the My Value Card on-line to all patients.On-line enrollment into the My Value Card program is low, but it still offers theperception of affordability of the brand on a high traffic brand.com, which is especiallyimportant for new patients. We changed the My Value Card offer to only be available through our Live CallAdherence program which only reaches out to NBRx patients limiting the use of the cardto New Patients. To continue to build our RM database we are offering a one-time coupon through Pointof Sale programs in Pharmacy to patients that are presenting with a new Rx (defined asnot filling at that pharmacy for the past 180 days) to avoid abandonment at the Point ofSale. The savings from this change in program was approximately $4.5m on a $12m budgetwith no forecasted negative revenue impact. Learning: Challenge Assumptions Test Hypotheses Take Risks26 February 201312 13. 26 February 2013 13 14. Case StudyBrand B, a mature brand close to its patent cliff, developed investment scenarios with the followingobjectives and guiding principles in mind:ObjectivesGuiding Principles Identify options to: Brand B, although important, is Determine optimal spend not a Company priority Optimize profitability Grow revenue Unless a business case can be made for additional Determine growth potential ofinvestments, the plan is to lookthe brandprimarily at scale-back scenarios Identify how Company shouldapproach the brand long-term Options will focus only on Brand B26 February 201314 15. Brand B Investment ScenariosNo Change in Current DP or FF (Field Force through JuneBase Case 2012) Scenario 1 Remove majority of DP and all FF (October 2011)Retain DP, Remove FF, Initiate Non-Personal Promotional Scenario 2 Activities (January 2012)26 February 201315 16. Actions Taken Completedinternal andIdentifiedDefined Key external PotentialPromotionalaudit of bestScenarioscategoriesin class non-personal tacticsIdentified ReviewedGathered appropriatepromotionaladditional vendors andresponse insights fromtactics peranaloguesinternal scenariowith AORteams Analyzed andDesigned Brand B refinedpromotionalMature targeted level mix for each Brand Model of detailing scenario26 February 201316 17. RecommendationBase Case: No Low risk optionChange in Current Maintain current planDP or FF (Field Mix of direct field forceForce through Junepromotion and non- 2012)personal selling initiatives High risk optionScenario 1: Removemajority of DP and Success of Walk awayall FF (October scenario unknown2011) Medium risk optionScenario 2: Retain Full non-personal promotionBrand B DP, Removetactics to replace directMature FF, Initiate Non-promotional efforts Personal Brand Net sales close to Base CasePromotional Modelwith increased profitabilityActivities (January 2012)26 February 2013 17 18. Optimizing Efficiency Late in the Life Cycle First ever Mature Brand business model established at the Company. Multi-channel non-personal business model developed utilizing tele-sales, web/internet, mobile apps,e-sampling, and direct mail to maintain prescriber awareness and loyalty without field sales representatives Direct to Pharmacist programs aimed at minimizing switches to generics Enhanced Patient and Caregiver support via website, RM, pharmacy and savings programs to foster loyalty and improveadherenceKey TacticsTeleSales Non-PersonalE-Sampling Digital PatientHCP Non-PersonalPrograms/RMPharmacistPrint& PatientMM Access Pharmacy26 February 201318 19. Results Finished well over 100% of revenue target for Brand B Gave back almost $3m in promotional budget26 February 201319 20. 26 February 2013 20 21. Case Study A certain therapeutic market has always been crowded and is now becoming highlygenericized. There was a massive reduction in direct promotion by most major brandeddrugs in 2011. With a market that was not very sensitive to promotion the decision to pullback on promotional spend was the right one. However, samples continue to be the single largest driver of business for Brand C. Withthe launch of a second product in the same therapeutic space Brand C share of voice wasdeclining rapidly. There was still a business case to deliver samples, but detailing was notopportunistic enough nor value-added for prescribers.26 February 2013 21 22. Actions Sales force leadership still perceived value in sampling Brand C which allowed their representatives to gain access to present the new launch product. Target physicians still perceived value in receiving a sample, but not a detail of a mature product. In 2012, Brand C moved to a 100% Service Rep model where delivery of samples to ~40,000 targets was the only promotional activity by the field force.26 February 2013 22 23. Results Brand C was well sampled in 2012 Brand C finished at over 108% to goal with a direct promotional budget that was cut bynearly 50% in 2011.26 February 2013 23 24. 26 February 2013 24