The launch of new products in the pharma industry is one of the well-recognised ways of growing in value and Market Share. However, it is seen that only 20 to 30% of the new launches achieve the first year’s objective set for the launch year
The article below captures some of the pitfalls in the execution of the launch plan which prevents from achieving the objective
“The details on the process of selection of new product such as Ideation / preliminary assessment through Primary and Secondary research/conceptualisation / development and testing are beyond the scope of this article.”
1. Inadequate Sourcing
The fuel consumption by the Aircraft is maximum at the time of taking off from the ground. Thereafter the Aircraft sets itself in the orbit with minimal consumption of fuel to keep it Airborne.
Similarly, in order to accommodate multiple launches or due to urgency for launching the product many a time the new product is inadequately resourced which leads to
Poor take-off and an early crash where the product fails to deliver the desired response.
2. Inappropriate Targets
The target set for the new product is also a reflection of the confidence which organisation has the potential of the product and their ability to capitalise on the same
It is observed that sometimes the product is launched with lower targets and also in few instances, no targets are allocated to the new products. Such launches can just add incremental value to sales and not lead to exponential growth. The objectives are not benchmarked against the probable potential or the competition.
The second scenario, which can also be seen is disproportionately higher targets which are not likely to be achieved. While it is a good practice to aim high, but one should be able to distinguish between challenging and unrealistic objective. It should be realistic with an element of stretch.
Right targeting does justice to the product and also the represented market with identified potential
3. Launch Modus Operandi
One to one interaction with sales team during the launch meetings is of utmost importance. The practice of launching through webcast or by sales management team can diffuse the energy and enthusiasm within the team which is pre-requisite to get a buy-in from the team. This kind of actions undermine the significance of the launch and shows corporate’s interest in poor light.
Also, poor notes on new products not capturing the entire spectrum of disease management/therapy and competition or inappropriate input allocation are some of the other examples to derail the excitement.
The ambiance and atmosphere which you create around new launch will have a direct bearing on the enthusiasm and seriousness with which the product will be promoted by the team.
4. Launch in Quick Successions
Ideally, there should be a reasonable gap between two consecutive launches. If two products are launched in quick succession to an extent where the second launch Is planned even before the activities for the first launch are completed, there would certainly be a low or suboptimal response for both the products. This is disastrous, more so when you have the same set of customers targeted for both the products.
Even if the customers and therapy areas are different, one must bear in mind that the team executing the launch plan is the same, thus one can expect some kind of deviation from the plan as time available is a constraint for doing justice to launch and follow-up required.
You need to give time and nurture newborn growing into a healthy adult.
5. Inappropriate Pricing
Right pricing has a huge impact on both volumes and value generated through new products. There are multiple models available for arriving at the right price. It is found that pricing in many cases is inappropriate. However, it is acceptable to err on a slightly higher side as you don’t get an opportunity to make an upward correction if required before 1 year and that too is possible to an extent of 8 to 10% only. Thus, in this case, you tend to always trail behind the market in pricing for a long time. One has to align the pricing with the strategic intent to either skim or penetrate the market this aligning to the objectives
The Pricing must be debated thoroughly for the new product as this has direct impact on acceptability vis a vis competition and perception of targeted customers in addition to revenue generation
6. Lack of Coordination
While all stakeholders meet often before the launch of the product for identifying and planning the launch. It is equally important to continue with such meetings at least for 3 months after the launch. During infancy, it is mandatory to address the issues as and when they crop up post-launch in the marketplace. This is the duration when distribution/manufacturing/medical are as critical as sales and marketing to succeed with the launched product.
Lack of coordination post-launch might delay decisions and implementation, putting the new launch into peril of not realising its full potential.
7. Retail Inducement
There are trends to offer free goods or bonus to retail for the routine availability of the new product. While it might be of some use in a select group of products, which are prone to substitution or where retailers influence by pushing the goods on their own. Principally it should be driven through prescribers and prescriptions.
Such practice to offer bonus or free goods in case of new products may defeat the purpose of building the new product into a powerful brand
However, working around increasing RX and prescriber would lend strength to the product and make it more sustainable in the medium to long-term.
8. Lack of Monitoring
Eventually, it is the person in the field in contact with the Customer, who delivers the entire package prepared diligently by marketer for the new product
Lack of a system to monitor implementation will certainly lead to wide variations in execution against the planned activities. This is proven time and again with stalk difference seen in productivity across geographies with identical input provided to all
It is said that if you are not scoring you are just practicing. Therefore mandatory to track progress with quantifiable parameters to the extent possible
9. Response to Feedback
Last but not the least is the amendments which will have to be made invariably to the initial plan because the market is dynamic and sometimes would react differently than expected.
The feedback and response from customers might lead us into introducing some variations in pack/promo plan or communication etc, within first 3 months of execution. Hence, there is a need to collect feedback from the market.
These changes are vital for shaping the future of the brand. Marketing and other functions should demonstrate flexibility and humility in accepting the changes required to be made based on customer’s feedback post validation.
Rigidity and insensitivity at this stage would be detrimental to the product.
In conclusion, I would like to state that it is wiser to launch fewer products after careful consideration and build them into big brands instead of having multiple products with each one contributing incremental sales. The introduction of the similar products by many organisations at one time is known to all. The widespread access to information and technology coupled with a cut-throat competition with hardly any differentiation is the reality of today.
Despite the above-mentioned constraints, the organisations which keep a close vigil on the EXECUTION and avoid Pitfalls would emerge victorious.
