the life science product manager's toolkit

Product Manager Toolkit

gene2drug.com Life Science Industry Market Research

Life Science Industry Market Research

gene2drug.com

Questions?

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gene2drug.com

About BioInformatics LLC

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A full-service market research firm since 1994:

• Consulting and strategy development

• Expert interviews

• Focus groups

• Surveys

• RateMyProduct™


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Conducting market research exclusively on scientific markets:

• Lab products

• Analytical instrumentation

• Biotechnology research & bioprocessing

• Drug discovery & development

• Molecular diagnostics

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Project team includes scientists, statisticians and business analysts.

Instant access to a 71,000 member scientific online panel.

Conduct market research for all major suppliers in the industry.


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Bill Kelly

President

Robin Rothrock, Ph.D.

Director of Publications

Mary Follin

Marketing/Sales Manager

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BioInformatics LLC Presenters


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Why Conduct Market Research in New Product Development?

The product must appeal to the customer (however widely defined)

Timely market research can help you mold the product to the consumer’s need/wants

Market research tends to point out successes and failures before products are launched “for real”

Being first to market pays dividends

If you are going to fail — fail early

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Classifying New Products

Improvements and revisions of existing products

Additions to existing product lines

New Product lines/functions/applications

Cost reductions

New-to-the-world products

Repositioning

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26%

26%

20%

11%

10%

7%


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Tell Us

A. Improvements and revisions of an existing productB. An addition to the existing product lineC. Whole new product lines/functions/applicationsD. Production cost reductionsE. New-to-the-world productsF. Repositioning

How would you classify the new product that is commanding MOST of your attention right

now?

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Causes of New Product Failure

Design failure

High development cost/price

Gaps in knowledge of market:

• Overestimated demand and size of market

• Positioning problem

• Ineffective communication/promotion

• Unexpected reaction from competitors

• Poor timing

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Launch(Stage 4)

Development(Stage 3)

Feasibility(Stage 2)

Ideas(Stage 1)

GATE 1Establish Project

GATE 2Commit Major

Resources

GATE 3Approval

for Launch

The Stage-Gate Process


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Use Market Data to Reduce Risk

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High

Low

Project Time

Project Risk

Project Knowledge


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Tell UsIs your company using a Stage-Gate new product development process?

A. YesB. NoC. Not technically, but we are borrowing concepts from Stage-GateD. Not yet, but we are planning to make the switch

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Generate and Screen Ideas (Stage 1)

Generate ideas for new product development

Use VOC to ensure your customers are part of the innovation process

Select the best ideas using market data

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Use Data to Support Go/No Go Decisions

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High

Low

Project Time

Project Risk

Project KnowledgeProject Cost

Stage 1


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Research Options in Stage 1

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Conduct VOC to Capture Customer Input into Design Process

Customer Focus Group(s)

Refine New Ideas with Thought Leader Interviews

In-Depth Interviews

Measure Receptivity to New Ideas Among Potential Customers

Online Survey


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Focus Groups

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Moderator Associate ScientistAltana Research Institute

Pharma

Chief, Molecular Diagnostic & EpidemiologyColumbia University

Medical CenterAcademic

Core Facility Manager M.D. Anderson Cancer Center

Clinical


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So if I have limited funds to

dedicate to the Stage 1

Screening of Ideas, what would

be a recommended method of

feeling confident that a new

idea is worth pursuing?


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Live Focus Groups

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1X~$5,000

2X~$8,000


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Virtual Focus Groups

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Moderator Associate ScientistAltana Research Institute

Pharma

Chief, Molecular Diagnostic & EpidemiologyColumbia University

Medical CenterAcademic

Core Facility Manager M.D. Anderson Cancer Center

Clinical


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Parallel Activities Fuel Feasibility (Stage 2)

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R&D activities: doing experiments, scoping out the IP landscape, assessing the competition, setting specifications

Marketing/Product Management activities: building the business case, estimate market size, number of customers, pricing, competitive environment, VOC


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Determine Product Feasibility

Build business case: estimate market size, number of potential customers, pricing, demand and revenue estimates (this can be an iterative process)

Understand product trade-offs, price implications and implications on demand based on product features

Use market data to refine your concept to ensure success

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Market Test New Product Concept

Online Survey

Determine “Must-have” and “Preferred” feature sets of the new product concept.

Understand end-user barriers to adoption and workflow bottlenecks.

Features and Benefits to Customers

Focus Group(s)


Estimate Demand and Revenue for Proposed Concept

Short Online Survey

Demand estimates can be generated very quickly and economically to determine market feasibility before R&D investment.


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?Obviously, the feasibility of a new product is a critical stage where the size of a potential market needs to be determined.

So back again to the cost issue — aren’t market size estimates one of the most expensive types of market research projects?

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Relative Number of End-Users

Number of researchers performing specific techniques in a given region

Number of researchers


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Conjoint Analysis

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Product Feature

A

Product Feature

B


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Tell UsHave you ever used conjoint

analysis to determine the desirability of specific product

features?

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A. YesB. NoC. Not sure


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Cross-Functional Teams Come Together in Development (Stage 3)

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Technical Market

Financial

Operations


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Activities that Occur in Development

Confirm end-user receptivity

Finalize product design: size, packaging and performance-specifications

Determine pricing

Develop (tactical) marketing plans and prepare for launch

Validate the business case

Transfer to operations: scale-up, production and quality control

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Identify Beta-test Sites

Screening Survey and Follow-Up

Assess Pricing Strategy to Determine Appropriate Price Positioning

Structured Questionnaire

Utilize the van Westendorp pricing method and/or Juster Probability Scale to understand pricing.

Test Marketing Messages

End-User Market Survey

Assess end-user receptivity to concept names, message, logos and advertisements.


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?Let’s say I want a “gut-check” on all of the above: customer receptivity, pricing and marketing effectiveness.

And let’s pretend I don’t have the budget to do it all.

In fact, at this point I don’t have the budget to do ANY of it.

What are my options?

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RateMyProduct™

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RateMyProduct™

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$1,500


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Product Launch (Stage 4)

Measure awareness

Fine-tune pricing

Calibrate sales strategy

Assess customer satisfaction

Monitor inventory

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Post-Launch Research Options

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Determine Awareness of New Product Introduction

End-User Market Survey

Assess end-user awareness to product name, message, logos and advertisements.

Focus Group(s)

Understand Customer Perceptions of Launched Product, Assess Follow-on Features


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What does a systematic program look like?

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Tracking and monitoring

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RateMyProduct

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RateMyProduct

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Questions?

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gene2drug.com

Contact

Mary Follin

Marketing/Sales Manager

703.778.3080 x13

[email protected]

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the life science product manager's toolkit

Business

molecular

market data

research options

product

amp

based

customers

pricing