Role of Pricing Analytics in the Pharmaceutical Industry
In the pharmaceutical industry, clinicians, KOLs, payers, and patients play a crucial role in building an effective pricing strategy for new products. The pharma companies need a strong understanding of their customers and current market conditions before setting an optimal launch price. The implementation of the pricing analytics tool offers holistic insights on the product value, competitors, payer strategies, and customers’ willingness to pay.
One of the major challenges that pricing managers in the pharma industry deal with is getting all the internal stakeholders to agree on the pricing strategy. With pricing analytics, this is tackled as the assessment is a robust way of analyzing data. Quantzig’s pricing analytics assessment identifies the value drivers for products in the same segment and understands how it was perceived to recommend the optimal price. It also offers a solution to get a 360-degree view of the client’s sales to optimize price points.
According to our experts, the ongoing developments are poised to transform pricing decisions and market access in the pharma industry. Get in touch with them to know how this can impact your business.
The Business Challenge of the Pharmaceutical Client
A leading pharma retailer in Europe was facing challenges in setting prices for its products. The client lacked a robust pricing strategy, and mechanisms to track, monitor, and manage the prices across different websites in different geographies. They wanted Quantzig’s pricing analytics assessment team to benchmark prices of existing retail products across various categories – personal care, beauty, household, grocery -against competitor products in the same categories in the market, and identify which products would form the key price benchmarks.
Our Approach
By assessing sales data, customer feedback, product data, pricing data, and social media data, Quantzig’s analytics team analyzed the business problem. The team captured price adjustments from different websites and systems for consolidation and aggregation to perform price optimization on the client’s various products.
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Pharma Pricing Startegies – Assessment Benefits
- Shared real-time visibility of product prices, market share, and discounts
- Created analytical capability to monitor and benchmark prices across geographies
- Benchmarked product prices against competitor offerings to gain insights into industry-standard pricing
- Analyzed online data for 1000+ price points across the client’s business product portfolio
Pharma Pricing Analytics Predictive Insights
- Tracked the effect of discounts on sales and the performance trends for top products online
- Analyzed sales sensitivity of each product based on the unit discount
- Developed pricing strategy based on comparable products from different brands online
- Analyzed social chatter about products prices and performance
- Forecasted sales for the client’s products based on current prices
