Segmenting the market of a mature-stage product helps contribute to increased sales

Background

The marketing team of a $90MM brand sought to better understand the market’s attitudes and behaviors toward their product in order to re-allocate commercial assets to maximize franchise profitability. The brand was entering the mature stage of the product lifecycle and the client wanted to audit the market’s attitudes in order to re-segment prescribers to better utilize sales and marketing efforts. The client commissioned bioStrategies to conduct an attitudinal market segmentation to uncover the key demand drivers that could increase future sales.

Analysis

bioStrategies employed a multi-step qualitative, quantitative research approach to audit the market relative to what their current attitudes, behaviors and usage levels were of the product. Armed with these insights obtained from the qualitative interviews, we designed the quantitative instrument to include the key demand drivers that would most likely segment the market into homogenous groups.

We fielded the survey to more than 300 oncologists, then conducted factor, latent class cluster and discriminant analyses to segment the market and develop subsequent scoring models to identify physicians by their segment affiliation. Our segmentation solution uncovered a high-commercial-potential segment that was currently under targeted by the client’s sales force. Our commercial analysis showed that by re-allocating the sales force to target this segment with greater focus would yield a potential increase in overall annual sales revenue of 10%.

Result

By optimizing sales, marketing and other commercial initiatives, along with leveraging the findings from our segmentation solution, the product’s Q1 sales in the next year were up 14% from previous year Q1.