EXTRAPOLATING STRATEGIC INSIGHTS THROUGH MARKET SEGMENTATION- A CONCEPTUAL FRAMEWORK

Author(s)

Forster L, Wild LDouble Helix Consulting, London, United Kingdom

OBJECTIVES: Primary research is often only conducted in a limited number of key markets despite a product being launched across a wider range of countries. In order to understand the implications of research findings across geographies, markets can be grouped by common underlying factors.  METHODS: Market segmentation frameworks were developed based on key decision drivers which can be applied at different points in a product lifecycle.  Within each framework, markets can be segmented in up to two domains to distinguish segments. In-depth secondary research was conducted in EU27 markets to understand key pricing, reimbursement, access and uptake processes. Qualitative analysis of these findings permitted us to place markets in the segmentation framework, allowing extrapolation of findings across similar markets. RESULTS: Markets can be segmented in several domains, depending on areas of interest for the research in question. For example, in the case of peri-launch segmentation, most new pharmaceuticals aim to secure optimal pricing and reimbursement – therefore an understanding of similarities and differences in these areas are of greatest interest. Markets can be assessed in terms of HTA data requirement, degree of centralization of decision making, pricing regulations (fixed vs. ‘free’ pricing) or pricing decision drivers. This approach was applied to understanding market similarities for a novel, hospital administered product in a rare disease area. All 27 EU markets were segmented by level of price regulation into three groups: price set by manufacturer, price set through negotiation or strict price regulation. Understanding pricing drivers in each group allowed results from primary research undertaken in only 6 of these markets to be used by the manufacturer in all EU27 markets. CONCLUSIONS: Applying these conceptual frameworks to drive market segmentation, key similarities and differences between markets can be used to extrapolate findings from primary market research, or determine what strategic options are applicable to a given market.

Conference/Value in Health Info

2011-11, ISPOR Europe 2011, Madrid, Spain

Value in Health, Vol. 14, No. 7 (November 2011)

Code

PHP16

Topic

Health Policy & Regulatory

Topic Subcategory

Pricing Policy & Schemes

Disease

Multiple Diseases

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