Marketing for Mature Pharmaceutical Products
Investing in R&D is common when a product is in decline. But there are marketing methods for extending the life of mature products.
We commonly associate newly developed and approved products - which are soon to be launched - with product marketing strategies. But we often neglect older and more mature products which also require marketing strategies to generate sales of the product offering.
Mature products will have received significant marketing investment early on in the product life cycle during its offensive into a given market. What is required now, however, is a more defensive marketing strategy where market share (once gained in the growth stage) is preserved with the decline is eased.
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Decreases in revenues from mature products, resulting from the launch of new drugs and generic/biosimilar drugs, as well as internal constraints, are also major challenges for pharmaceutical organisations. Pharma organisations often make the mistake of assuming that a mature product has the ability to self-promote and sustain the level of sales required without marketing investment and product strategies. This is a mistake, especially since many large pharmaceutical organisations will have a range of products in the latter stages of the life cycle that can be revived via a number of product marketing strategies.
Therefore, product life cycle management is a necessary task to breathe new life back into mature products - the potential is there for success. The life cycle of any product commonly falls within 4 categories: Development, Growth, Maturity and Decline (below). This post will focus on the maturity phase in relation to pharmaceutical products, and how marketers can revive those products, essentially extending this maturity period and breathing new life into the product.
10 TIPS FOR MARKETING MATURE PHARMACEUTICAL PRODUCTS
Here are ten marketing avenues for promoting mature pharmaceutical products.
1. TRACK THE PERFORMANCE OF THE MATURE PRODUCT
Before making the decision of allocating marketing budget in the direction of mature products, it’s worth tracking the current performance of the product. Mainly, to understand the value of the product to the pharmaceutical organisation, as well as whether the product is actually in maturity. Identifying any curves (anything other than a predominantly flat trend) in the trend over a monthly or quarterly period would suggest that the product might not be in a mature stage. Sales or revenue might be used to determine its performance, and subsequent value the product creates to the market as well as the organisation itself. Regular review of product performance will enable to make the appropriate decision of how much marketing investment the mature product will require if any.
2. ENHANCE THE PRODUCT/ADD NEW FEATURES
A common tactic for rejuvenating mature products is to add value to the product by adding new features and capabilities, so the product “does more.” Often, organisations will identify core features of competing products and add those to the mature product, with the view of relaunching the product with a new hook. Manufacturing and formulation features can also be enhanced, so that the mature product is created more efficiently (so the price drops) or is manufactured by more eco-friendly means or via eco-friendly materials (so it appeals to new markets). Confusingly, removing features might have the same effect as you simplify or declutter the product to make it more user friendly or combining products to create combinations of products. Altering the product in this way can enhance the perception of the product, and what it provides customers, and extend its cycle in the maturity stage.
3. INTRODUCE REVITALISATION STRATEGIES
“Revitalisation strategies for mature brands depend on the task at hand. Product innovation is one way out,” says R.B. Smarta on Mint. “This could involve reformulation, a shift in product composition to deliver added benefits, or a new drug delivery mechanism. New markets could also be identified. Many brands have gained from a rural push. The generation of new data from recent clinical trials, accompanied by scientific papers, meta-analysis and repurposing molecule could also grant a brand a fresh lease of life.”
“Realigning the product proposition to suit today’s digital era could be part of the marketing thrust. A company may also try playing up a legendary brand story by using its heritage to its advantage. Some medicine manufacturers prefer to outsource the sales and marketing of a brand to an external agency, which may have fresh ideas on how it can be repositioned to regain its relevance.”
4. FOCUS MESSAGING ON QUALITY AND REPUTATION
Should your product reach a maturity phase, and is well-known - meaning that the organisation is also potentially well-known - it’s likely your product is familiar and trust is associated with the product. In light of newer alternatives entering the market, you can focus your messaging on stability, quality and reliability - linking your product to positive associations from the past. Although, the maturity stage requires a new marketing strategy and for competing more effectively, reverting to the past can be a positive source for this new strategy.
Tweaking price is often a legitimate strategy during this stage, but doing so can negatively affect your strategy should you be leaning towards quality. Alternatively, you might raise prices. Higher prices, alongside a marketing campaign to stress the benefits and superiority can extend the life cycle. Maturity can be presented as a positive and should be considered for the marketing message - survey the market to understand perceptions of your product which will help you steer your direction.
5. TAKE THE MATURE PRODUCT INTO A NEW MARKET
Other avenues for mature pharmaceutical products, where possible, are new markets. Accessing new demographics and geographics will create new users (and potentially uses) of the mature product. Is there a subset of potential users that, if the marketing message is reframed, could become viable prospects? Strategies that involve new markets and audiences might not mean that the product itself requires adjusting in any way. Similarly, a product that might have an image of being tired or appealing to an older audience can be revived by showing younger, energetic people using it. Again, achieved without altering the product. The presumption here is that consumers want to emulate a different customer base, and even though the product is familiar, through using it they can be more like the people they aspire to emulate. New markets with current products is a classic strategy (from the Ansoff Matrix) used within the pharmaceutical sectors.
6. PRODUCT DISTINCTIONS THROUGH PACKAGING AND ADVERTISING (REBRANDING)
When products tire, with the perceptions of those products changing, often a rebrand with a shift in branded elements can energise a mature product. A new name, term, symbol, design and concept (or combination of them all) can be created for an with the intention of developing a new, differentiated identity in the minds of customers. Changing the image of the mature product can alter perceptions and extend the maturity phase, potentially even growing the sales of the product. Wellspring, for example, suggests: “Packaging changes may also be examined to extend the life cycle of drug products, typically these are changes to physician samples that lead to better patient compliance. Typically physician samples of solid dose products are dosed in single blistered units. If, for example, a seven-day regime is given to the patient, then multiple units are provided. By moving to a seven-unit blister or a 7 count bottle may assist the patient to adhere to the regime. In addition, by moving to the alternate packaging format, cost efficiencies may be identified.”
7. OUTSOURCE WHERE POSSIBLE
Pharmaceutical marketing managers are often pre-occupied with launching new products - involving brand development and offline and online promotions, amongst other tactics that help get new products off the ground, as well as other continuous tasks. This is in addition to the extra workload that COVID-19 has created. Therefore, a viable option is to outsource the commercialisation and marketing of a mature product. Outsourcing partners can take full control of the promotion of a mature pharma product or brand - from strategy to marketing and all the way to sales - so that pharmaceutical marketers can focus on the areas which the board or management deem most important for the pharmaceutical organisation.
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8. MANAGED MATURE PRODUCTS LIKE MATURE BRANDS
Novasecta has identified four critical success factors, as organisations get a better understanding of what works and what doesn’t with mature brand and product management, to make the most from the maturity stage: Early planning, cross-functional team structures, innovative strategies and knowing when to stop. “Executives took the view that once the loss of patent exclusivity occurred, sales fell and that a battle with generic manufacturers was one not worth fighting – the juice was not worth the squeeze.”
“On closer inspection, however, a number of executives realised that with the right approach, revenue could be maintained and in some instances, growth achieved. Today, most companies accept the value of mature brands and invest significantly to maintain or grow revenue, often at greater margins that in-line brands. However… companies sophistication in mature brand management is highly variable, with few organisations truly maximising the opportunities such products provide.” With effective management, using a sophistication curve (below) as a guide, and focusing on the areas that have the most potential, mature pharmaceutical products can significantly extend their life cycle.
Mature brand management sophistication curve - Novasecta.
9. INCREASE SUPPORT FOR HCPS
Depending on your product offering, accessing and focusing on HCPs might be a potential avenue for growth. Sales reps are finding it hard to get through to HCPs to promote the organisation’s product offering but HCPs do place value on solutions that help them treat their patients and run their practices better. HCPs will already be aware of your mature product offering, but should the organisation provide HCPs with the appropriate education materials, resources and practical tools, they can help strengthen the value of the mature product and increase HCP engagement and prescriptions. All educational-based materials, which is made readily available on-demand and via digital means, can help HCPs make product decisions and extend the life cycle of a mature product.
10. CLOSELY MONITOR THE ENVIRONMENT
Regardless of the type of pharmaceutical organisation you operate within, you will be faced with a peculiar set of challenges. Such barriers exist on varying levels of sophistication, as well as the maturity of the product itself. Pharmaceutical organisations must closely monitor the environment, paying attention to the potential actions of regulators, payers and competitors, and the needs of other stakeholders (such as HCPs) to anticipate the best scenarios and define the best product and marketing strategy. Mature pharmaceutical products stagnate for reasons out of our control, such as changing tastes of consumers, a loss of differentiation in a crowd of other brands and declining appeal among younger consumers and doctors. As well as monitoring the performance of your product marketing strategy, monitor external forces as it will likely hold the key to the future of your mature pharmaceutical marketing product.
EXTENDING THE MATURITY PERIOD…
…if you don’t already have new products in the pipeline that will replace the mature product.
Generally, and despite popular belief, mature products do not always decline; perhaps the opposite is true - mature products are growing if they are managed efficiently. If your organisation is seeing a decline in the performance of its mature products, assess whether this decline could be reverted with some marketing investment. Are those mature products experiencing in-house neglect?
There will be times where the product itself is declining as it no longer has use with its intended audience, where R&D is the only option. But you can maximise the value of your mature product, turning it into a “cash cow” and extending the maturity phase with some of the ideas in this post. A proactive approach combined with careful marketing management is, therefore, required.
For more on strategic marketing approaches in the pharmaceutical sectors, and how we can help you, visit our section on strategy.