example of Impact - STRATEGY, DIGITAL & INNOVATION
Launching new productsdetails
Client background and situation:
Pharmaceutical client
Pharmaceutical client
Under pressure to deliver higher revenues and continue to provide value to its customers
Under pressure to deliver higher revenues and continue to provide value to its customers
THe past
Prior approach & challenges:
Had developed higher-end & more expensive pharmaceutical products to replace their existing set but did not have a strategy to migrate eligible customers to these products immediately while gradually upgrading those unwilling or unable to pay
Limited view on how competitors would react and how to respond accordingly
Had developed higher-end & more expensive pharmaceutical products to replace their existing set but did not have a strategy to migrate eligible customers to these products immediately while gradually upgrading those unwilling or unable to pay
Limited view on how competitors would react and how to respond accordingly
solutions
Coppertree Partners approach:
innovative design
Developed from scratch a proprietary war game simulation to help client anticipate and prepare for likely competitive responses to the new products
led workshops
Ran simulation over a 2 day workshop with the entire executive team
researched and modeled scenarios
Built a model using company data sets and outside research that delivered the potential economic scenarios and recommendations of how to phase in product launches and discontinue older ones
Impact:
- Successful product launches, higher customer satisfaction and client experienced a massive 25% increase in profitability from upgraded products
Additional insights and takeaways
Client understood that it was important to disrupt itself by creating new products from a position of strength and market leadership even if it meant accepting some risk of cannibalizing existing sales. It couldn’t afford to be complacent. A war game simulation can be a very effective and interactive tool to imagine a future state and impacts. The client discovered through this exercise that its competitors would likely smear its reputation and push physicians through its sales forces to switch consumers to their products that would be cheaper. The client would have to make a strong case and be much more proactive than originally planned to communicate and explain to physicians the improved efficacy of its new products. It would also have to provide options and support to help loyal customers unable to pay.
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