Segmentation and Position

Brand:
 Case study: Summary
• Expectation
• Rate: What is current status of the
Brand
• Diagnosis: Why it is like this.
• Action: what actions we need to take
» What actions we need to
prioritize
» What actions we need to restrict
or abondon.
» Rationale, support data
evidences.
» Based on Growth opportunity
 Brand:- Portfolio prioritization
matrix
Parameters
Market attratictiveness

• Market Size
• Category Growth
• Competitive intensty
 Market capabilities
• Market Share
• Brand Strength
• Market Access
•
Market Attractiveness Scorecard Seretide Example
Controls Previous Next Help Print
"Market Size" is brought forward from the Patient Segmentation screen
"Category Growth" figures are brought forward from the Target Market and Category Data screen

# Criteria and Definition Scoring

Market Size 2002

Current value of target segment(s) for your brand

1 Total current value of target patient (AUD 000):
segment(s)
683,456

Category Growth 2002 2005 2002 - 2005

Current and
predicted category Calculated
2 Predicted compound annual percentage value % CAGR
value growth rate of defined category 74,361 216,539 42.8%
(AUD 000):

Competitive Intensity Select Select Select Selected! Select

High level of unmet

medical need with
Prescribers highly Prescribers satisfied
old category
satisfied with existing with existing Key needs being High level of clearly
products,
products, many products, little satisfied by a recognised unmet
Level of competition (number and opportunity to
3 similar competing opportunity to number of category medical need, low or
resourcing) and degree of differentiation establish and
brands, little differentiate, high competitors, high no competitor
achievable in target segment(s), for sustain high
opportunity to levels of competitor levels of competitor activity, opportunity
defined category margins with new
differentiate and activity, price a key activity, future margin to establish and
category products,
relatively low and/or factor in prescribers' erosion a possibility sustain high margins
only one or two
declining margins decision
other category
competitors

Assumptions and Notes (Data Sources, References, Comments, etc.)

Criteria and Scoring
definition

Market size Current value of Target

segment for your brand

Category Growth Period 1 Period 2 Period 3 CAGR

  Current and predicted

category values

Competitive Intensity Select Select Select Selected Select

Level of Consumers highly Consumers Key consumers High lelve of High level of clearly
Competition( No and satisfied with the satisfied wit needs are unmet needs recognized un met need
resourcing) and current product the brand satisfied
degree of Many brands having Little brand High level of High scope of Low or no competitor
differentiation similar feature No differentiation competitor Brand activity
achieveable in the differentiation activity differentiation
target segment for declining margins High brand future brand Growing margins Opportunity to sustain
defined category) activity margin erosion and maintain high
margins
 Competitive Capability Scorecard
Competitive Capability Scorecard Seretide Example
Controls Previous Next Help Print
"Target Market Share" is brought forward from the Target Market and Category Data screen

# Criteria and Definition Scoring

Target M arket Share 2002
Volume share of
2002 Index
Your brand
1 Brand share relative to largest competitor volume share
largest competitor
in category 6.2% brand 45.8% 0.13

Brand Strength Select Select Select Selected! Select

Brand is clearly the most

Brand is capable of differentiated in the
Brand satisfies most key Brand is differentiated
2 Perceived brand delivery against key Brand satisfies all key being differentiated from market, satisfies key
medical needs, other from all other brands,
drivers of customer choice relative to key medical needs, several competitors, but unmet medical need(s),
brand profiles are and customers
competitors in your target segment(s) similar brands available customers do not always and recognised by
stronger understand this
understand this customers as being best
in class

M arket Access Weight 50.0% Select Select Select Select Selected!

GSK is becoming GSK has the strongest

Commercialisation GSK not established in GSK is established in GSK is well established reputation and
established in the
Capability: the therapy area
therapy area
the therapy area in the therapy area relationships i n the
therapy area

Weight 25.0% Select Select Select Selected! Select

GSK's capability to
access the market for KOLs openly support
KOL No or few KOLs support Some KOLs support the KOLs openly support the KOLs openly support the
3 the category, some
this brand relative to Advocacy: the category category category
support the brand
brand
key competitors in
your target Weight 25.0% Select Select Select Selected! Select
segment(s) Category is widely
Category is not widely represented in Category is well Brand is contained in Brand occupies very
Formulary represented in formularies, some represented in most most formularies, strong differentiated
Status: formularies, or has a specific references to formularies, many frequently i n a strong position on most
very restricted position the brand, restrictions reference the brand posi tion formularies
may apply

Assumptions and Notes (Data Sources, References, Comments, etc.)

The Portfolio Prioritization
Matrix
INDIA
INDIA PLAN
PLAN
P o rtfolio M atrix Portfolio Review - OU In dia P lan 2006-08 IN R M n - In d

# B rand Zo ne D ecision
1 A ugm entin IV B u ild
2 A ugm entin O rals B u ild
3 C e ftum D ile m m a B u ild
4 E ltro xin M ain tain
5 F efol H arvest
6 F lu tivate D ile m m a M ain tain
1 7 F ortum M ain tain
24 11 13 8 F raxiparine D ile m m a B u ild
12 2 3
8 9 P hexin D ile m m a M ain tain
15
17
10 S eretide D ile m m a B u ild
79 10
29 32 11 T im entin D ile m m a H arvest
26 27 12 V ozet B u ild
6
4 23 13 W india D ile m m a B u ild
18
16
31 14 Z im ig M ain tain
20 22
15 H a vrix B u ild
21
19 16 H ibe rix M ain tain
5 17 V arilrix B u ild
14 30
18 C a lp ol M ain tain
25 28 19 C e tzine D ile m m a M ain tain
20 N e osporin M ain tain
21 Z entel M ain tain
22 P iriton M ain tain
23 Z evit (incldg F t) D ile m m a M ain tain
24 S upacef D ile m m a M ain tain
25 T enovate H arvest
31 G laceX D ilem m a M ain tain 26 T -B act M ain tain
32 O ral C ontracep tives D ilem m a M ain tain 27 CCM M ain tain B u ild
28 D ilosyn H arvest
29 Z ovirax M ain tain
30 A lp ha D 3 H arvest

N o te s (D a ta S o u rces, R eferen ce s, C o m m en ts, etc.)

 Strategic Objectives
Strategic Objectives Effort Priorities

Build Manage for volume growth

Manage for share / profit consistent

Maintain with the defence of market position

Harvest Manage for cash flow

Strategic Options for “Build”
Increase
volume

Gain
Expand
Market
market share

Convert Enter Increase Same Adjacent

non - new usage Category Category
users segment rate Competito Competito
rs rs
 Strategic Options for
“Maintain”
Hold
Sacred Position Milk
Cow Cow

Increas
Defend e
Share
Profits

Reduce
Discretion Reduce
ary investment
Costs intensity
Maintain Maintain Continuing
customer communication product
value s improvement
presence
 Strategic Options for
“Harvest”
Maximise cash
flow

Slow Rapid Exit

harvest harvest

Rationali Curtail
se Increa Liquid
discretion se Divest
Reduce distribut ary ate
Improve ion prices
discretiona expenditur
ry sales e
expenditure mix
 Thinking flow- Market
Building

Identify greatest growth opportunities 

 Identify behaviour / Belief Shift

to deliver opportunity
Vision

Measure
 Identify Shaping Strategies
to achieve the Belief Shift

Select Levers / Tactics and sequence

 to implement strategy to create
momentum
 Thinking flow- Market
Building

Identify greatest growth opportunities 

 Identify behaviour / Belief Shift

to deliver opportunity
Vision

Measure
 Identify Shaping Strategies
to achieve the Belief Shift

Select Levers / Tactics and sequence

 to implement strategy to create
momentum
 Key steps for effective Segmentation

Step 1 Step 2 Step 3 Step 4

•Segment
the basis for segmentation : prioritisation: •Lifecycle:
•
he significant
the alternatives
market based •on
Make
real available
choices
differences
on which
that are •
to physicians
segmentand
( s ) patients
actionable
to target .
•Determine
•If pre - launch , decide entry point
how segment
prioritisat
ion will
change
through the
lifecycle
Segmentation Concepts &
Tools
 The Value Pyramid
Example Patient Profiles
Niche Market
•Specialists applications
•High value per patient Greater Need
•Low volume of patients • Risk of
•Sets premium pricing at start of lifecycle hospitalization
•Less competition
•More focused use of resources (high treatment
•Can establish credibility before entering
other segments
Segment 1 value)
ien e
Pat valu

•Risk of complications
t

Segment 2 (moderate treatment value)

per ing
l
Fal

Mass Market
•General purpose application
•Low value per patient •Symptoms only
•High volume of patients Segment 3 (low treatment value)
•Higher overall market value

Lower Need
 Segment Prioritisation
Matrix
Determining segment priority
••High
•
Attractiveness

Review how to improve

capability to win in this
segment
(e.g. new clinicals) Priority Segments
•Segment

Either
(i) Consider how segment

Avoid
attractiveness could be achieved,
or
(ii) pursue “profit maximization ”
strategy
•Low
•Low •Brand Strength •High
 Eg ;Market matrix- Windia
•
•Urban Priority Segments
•
SEC 1 & 2 patients
Prevalence
Diagnosis
•Market

Compliance

Avoid

•Rural
–Low •Income •M/H
Determine Belief Shift Required


Belief Mapping Tool

Brand & Patient Segment
Customer Type
Level of Patient Potential
Tower
Date

Current Behaviour DESIRED BEHAVIOUR

WHAT do they do? WHAT do you want them

to do?

Current Beliefs DESIRED BELIEFS

Belief Shift

WHAT do they believe? WHAT do you want them

to believe?
 Building Great Brands

Strategy
Strategy
Insight
Insight Positioning
Positioning Communications
Communications Development
Development

" I get it " " I do it " " I like it " " I live it "

Increased
Business

The Embedding Journey

 Definition of Positioning

lPositioning is the way marketers ensure their product /

service occupies a unique , distinctive and relevant
place in the mind of the target audience , so they
choose it in preference to its competitors

WHO •WHY
we are targeting the brandwe at
expect the Consumers to avail this brand in pref

Patient segment Differentiation elements

Driven by
insight