Improving Wallet Share with Market Segmentation Analytics – A Success Story on How a Pharma Company Improved ROI by 3x

Sep 17, 2019

The client is a renowned player in the European pharmaceutical industry specializing in the manufacturing and supply of specialty drugs. The dynamism in the European pharma industry combined with the sky-rocketing prices of drug production and the rapid growth of biosimilars proved to be a major challenge that resulted in a decline in their overall profit margins.

The Business Challenge

In today’s dynamic pharma market scenario, being able to target your promotional activities towards market segments that drive higher profits is crucial to succeeding in the long-run. Businesses that leverage market segmentation analytics to do so have been successful in driving higher returns by concentrating their marketing efforts toward specific, high-potential market segments. Our advanced market segmentation analytics solutions designed for the pharma sector focus on leveraging advanced analytics and statistical techniques to identify market segments with high growth potential.

With diverse drug categories and multiple channels to market them, pharma companies may find themselves in a fix when it comes to targeting specific market segments. Quantzig’s value-based market segmentation analytics solutions empower businesses to understand their customers better thereby helping them identify the right customers to target through the right channels. This helps organizations improve customer engagement through smart marketing programs thereby optimizing spend and improving RoI.

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Though the European pharma industry continues to thrive, several challenges are poised to hinder the pharms industry’s growth in the coming years. With the drug prices at an all-time high, players in the pharma industry have just begun to scale up their R&D initiatives to develop new drugs and address the issues arising due to the disruptions in healthcare. The client, a specialty drug manufacturing company based out of Europe faced several challenges due to the growing popularity of biosimilars and the costs associated with drug manufacturing. To tackle such challenges the client decided upon leveraging market segmentation analytics. To do so, they approached Quantzig to leverage its expertise in market segmentation analytics and ensure they cover core variables such as demographic, geographic, behavioral, and psychographic segmentation.

The challenges faced by the client included:

  • Growth of biosimilars
  • Sky-rocketing costs
  • Dynamic business landscape

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Solution Offered and Value Delivered

To help the client address their challenges we adopted a comprehensive three-pronged approach that leveraged market segmentation analytics to segment the target market based on various factors such as demographics, geography, and behavior. This helped the client to segment their target markets to identify its true potential and devise suitable strategies to drive growth. The market segmentation analytics solutions offered also enabled the client to improve reach and achieve a 3x improvement in the ROI generated from target market segments.

Market segmentation analytics also enabled the pharma client to:

  • Invest in R&D and focus on developing new drugs to cater to the needs of different market segments
  • Drive ROI and value from each segment
  • Target individuals based on their requirements

Gain limited-time complimentary access to our analytics platform to gain deeper insights into the benefits of market segmentation analytics.

Quantzig’s market segmentation analytics solutions also empowered to answer the following questions:

  • Which market segments offer the greatest potential?
  • What promise or value proposition should we look to deliver for consumers in our key market segments?
  • How do we invest in R&D and allocate resources to drive value from each market segment?

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