A Top 20 biotech manufacturer had a brand that was grossly underperforming in New York City and a few other East Coast markets. While all brands have market variation in their share, it is often worse to underperform in a “mega-city” like New York as the impact is so much greater.
Upon examining the criteria for territory alignment for the NYC district, it became apparent that the current territories and sales force were based on existing business, rather than potential business. Although the NYC district ranked first in the number of potential prescribers as well as disease-state prevalence, it ranked dead last in Rx volume. Because the sales force was assigned based on Rx volume, there was not sufficient manpower to realize the potential within the district. An even more complex problem was defining a root cause for the generally poor performance of this district in comparison with other districts and determining strategies to reverse this trend.
A realignment of the existing territories within the NYC district was implemented as a quick fix to the resourcing shortage. To expose the driving factors behind the consistent underperformance of this district, a quantitative Strategic Market Assessment (SMA) was performed. Examination of market conditions revealed that the NYC district was in fact very unique. Many of the national marketing strategies in place were failing because they neglected to take into account specific local conditions.
There were 3 specific local conditions that were uncovered by the SMA.
Realigned territories under the short-term plan allowed for greater reach within the NYC district in 2013. Revelation of the 3 local market conditions led to greater understanding of the unique drivers in the NYC district, leading to the development and implementation of corresponding tactics. Since the results are so promising, the second biggest opportunity, the Florida district, is now being evaluated for a similar SMA analysis.