bioinformatics llc corporate capabilities
DESCRIPTION
Since 1994, BioInformatics LLC has provided critical market intelligence to major suppliers serving the life science, medical device and pharmaceutical industries. We support clients across the entire market spectrum — from scientific research to diagnostics and therapeutics — providing high-level management with strategic market insights. Our multi-disciplinary team of scientific experts and business analysts creates value for our clients by combining market research experience with scientific knowledge. We offer a variety of services that enable executives to see themselves, their market and their competitors through the eyes of the most important information source of all—the customer. BioInformatics offers both custom market research services as well as off-the-shelf recent research reports. Our custom research is tailored to the specific needs of the client’s management team, guiding product development, marketing, sales and executive strategy. Our published reports allow marketing professionals to share in the results of broad-based market studies that provide access to high quality research at an affordable price. As one of the first firms to recognize how the Internet has transformed market research, in 1997 BioInformatics established The Science Advisory Board, an online panel of thousands of life science researchers, physicians and biomedical professionals. This global community of scientists provides direct, qualified access to the life science market. Because of this innovative approach, we can gather critical market data in days, rather than weeks, reducing costs by pulling qualified survey respondents directly from our advisory board. For over a decade, we have been consulting to leaders in the life science market, including large diversified manufacturers and distributors, smaller specialty suppliers, financial institutions, advertising agencies, non-profit societies and major scientific publishers. Find out what we can do for you. For more information about BioInformatics' product and service offerings, please call 703.778.3080 x 13 or email [email protected].TRANSCRIPT
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 1
Market Research & New Product Development
www.gene2drug.com
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 2
Agenda
• About BioInformatics, LLC • About Market Research • The Research Process • New Product Development
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 3
About BioInformatics, LLC § Founded in 1994
§ Support clients across the life science industry—from research product suppliers to pharmaceutical companies
§ Use a variety of research techniques: • Surveys • Focus Groups • Expert Interviews
§ Conduct custom research, including: • Markets • Products • Marketing Communications • Sales Channels • Brand Health
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 4
About BioInformatics LLC
• Conducting market research exclusively on scientific markets:
– Lab products – Analytical instrumentation – Biotechnology research
& bioprocessing – Drug discovery & development – Molecular diagnostics
manufacturing & material science
chemical, food & beverage
environmental testing
clinical diagnostics
pharmaceutical agriculture biotech
laboratory products
life sciences
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 5
About BioInformatics LLC
Project team includes scientists, statisticians and business analysts.
Instant access to a 73,000 member scientific online panel.
An Overview of Your Epigenetic Research
© 2009 BioInformatics, LLC www.gene2drug.com 3-17
* Totals are based on number of times an item was selected.* Percentages are based on number of respondents.
68%
57%
55%
47%
23%
20%
14%
10%
10%
5%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Gene regulation
Disease mechanisms
Biomarkers
Basic biology of epigenetics
Therapeutic targets
Stem cells
Genomic imprinting
Transgenerational epigenetic
inheritance
Tissue repair/regeneration
X chromosome inactivation
Respondents 200
Gene regulation 135
Disease mechanisms 115
Biomarkers 110
Basic biology of epigenetics 94
Therapeutic targets 46
Stem cells 41
Genomic imprinting 27
Transgenerational epigenetic
inheritance 21
X chromosome inactivation 10
Question 9*
(check all that apply)
Conduct market research for all major suppliers in the industry.
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 6
Market Research
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 7
Purpose of Market Research
§ Market research is the process of gathering and interpreting data about customers and competitors within a target market.
§ Market research is carried out to:
• Support decision making • Reduce risk
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 8
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”
§ If you are going to fail — fail early
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 9
When NOT to Conduct Market Research
§ Research results not actionable
§ Closed mindset
§ Vague objectives
§ Cost outweighs benefits
§ Data documenting the obvious
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 10
Intelligence Focus
Business Environment
Market Trends
Competitors
Customers
Strategic
Tactical
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 11
Customer Intelligence
Customers Identity
Location
Needs
Motivations
Budget
Purchasing Authority
Technical Requirements
Segment
Suppliers
Perceptions
Satisfaction
Constraints
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 12
Customers
Competitor Intelligence
Competitors Identity
Financial Strength
Annual Sales
Customer Base
Strategies
Target Markets
Alliances
R&D Focus
Strengths
Weaknesses
Costs
Performance
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 13
Competitors
Customers
Market Intelligence
Market Trends Size
Structure
Segments
Barriers
Typical Margins
Growth Rates
Cost Structures
Distribution Channels
Product Diversity
Regions
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 14
Environmental Intelligence
Business Environment Political Events
Economic Conditions
Social Priorities
Ethical Considerations
Technological Advances
Market Trends
Competitors
Customers
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 15
“Off the Shelf” Reports
Pros Cons • Offers a quick overview of a
market
• Confirms what one already knows
• Provides a starting point on a market, product, etc.
• Dated information
• Limited depth and breadth
• Not customizable
Bottom Line • Can provide valuable insights when the report is specific
enough to meet your needs • When your budget is limited
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 16
Custom Reports
Pros Cons • Can offer powerful
insights in competitive strategies (i.e., product development, advertising, technical support) by measuring marketplace effects
• Highly customizable
• Expensive (>$10,000) • Time consuming (4 – 8
weeks) • Balancing internal
stakeholders and prioritization
Bottom Line • Useful when the cost of failure/inaction is high • When off the shelf reports are not specific enough for your
needs
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 17
The Research Process
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 18
The Market Research Process
Defining the problem & the objectives
Developing the research plan
Collecting the information
Analyzing the information
Presenting the findings
1 2 3 4 5
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 19
Defining the Research Objectives
§ Establishing the project’s purpose through effective communication between the decision maker (you) and the researcher (me)
§ Goal: Decide on clear cut research objectives § Accurate definition of a project’s purpose requires:
• Identifying all relevant issues • Deciding which of the issues are worth examining further • Prioritization
§ Effective Communication is essential – communicating the various
stakeholder’s perspectives § Higher level managers may want strategic information, you may
need tactical information. § Especially important when the purpose of research is exploratory
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 20
Choose the Approach
Secondary Research/Desktop Research • Data that are readily available from other
sources Primary Research
• Data obtained directly from knowledgeable sources to fulfill a specific purpose
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 21
Sources of Secondary Information
• Publications/journals
• Meetings/congresses
• Press releases
• Patent filings
• Business filing audits (e.g., revenues, units, prescriptions, sales force, product detailing, promotional spending, etc.)
• Advocacy groups
• Government agencies
• Industry groups
• Professional societies
• Academic sites
• Special interest groups
• Medical sites
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 22
Value of Secondary Sources
Pros Cons • Depth of information:
Enhance general understanding of industry
• Breadth of information: Multiple sources
• Price: Relatively low cost
• Accuracy: Conflicting information
• Timeliness: Data is usually 6 to 18 months old
• Time consuming: Huge volume of data
Bottom Line • Valuable when used in conjunction with other knowledge
to shape your understanding of a market • When a cursory view is all that is needed • Highly regulated markets.
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 23
Primary Sources
§ Academics
§ Clinicians
§ Science Journalists
§ Former Employees
§ Vendors
§ Consultants
§ Special Interest Groups
§ Industry Organizations
§ Wall Street Analysts
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 24
Value of Primary Sources
Pros Cons • Generally cooperative
• Specialized industry knowledge
• Good source of statistics
• Timely information
• More relevant insights than secondary sources
• Relatively low cost
• Often difficult to control – use a third party
• Cannot or will not provide specific data on target companies
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 25
Identifying the Sample Who or what type? Where should they be from?
How should they be chosen? How many?
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 26
Types of Primary Research
In-Depth Interviews § Exploring complex issues with thought leaders or highly
qualified responses. Focus Groups
§ In-person – handling tests, instrument evaluation § Online – Ad testing, provide stimulus § Telephone
Online Surveys § Great for collecting the opinions of a large number of
potential customers
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 27
In-Depth Interviews
!
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 28
Focus Groups Chief, Molecular Diagnostic & Epidemiology
Columbia University Medical Center
Academic Sequence Detection System
Core Facility Manager M.D. Anderson Cancer Center
Clinical iQ Real-Time PCR Detection System
Moderator Associate Scientist Altana Research Institute
Pharma Chromo4 Four-Color Real-Time System
• Highly targeted • Dynamic discussion • Real-time results • Great for showing
stimulus to potential customers (ads, concepts, websites, etc.)
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 29
Quantitative Survey – Collecting Data
Market Segment
Region
Application Area
Product Performance Attributes
Overall Product Satisfaction
Supplier Performance Attributes
Overall Supplier Satisfaction
Loyalty to Supplier
Expected Budget
Concept Receptivity
Preferred Supplier
Purchase History
North America Europe Unqualified Respondents*
Total Respondents
Count Count Count CountBiochemical assays 91 48 232 371Cell-based assays 124 83 327 534Hybrid assays 89 39 157 285Other 2 1 7 10None of the above 0 0 22 22Total Respondents 124 83 399 606
North America Europe Unqualified Respondents*
Total Respondents
% % % %Biochemical assays 73% 58% 58% 61%Cell-based assays 100% 100% 82% 88%Hybrid assays 72% 47% 39% 47%Other 2% 1% 2% 2%None of the above 0% 0% 6% 4%Total Respondents 124 83 399 606
1. Which of the following assay types do you use in your research/work? (check all that apply)
Geographic Region
1. Which of the following assay types do you use in your research/work? (check all that apply)
Geographic Region
Inclusion Criteria
Screening
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 30
Quantitative Survey - Analysis North America Europe Unqualified
Respondents*Total
RespondentsCount Count Count Count
Biochemical assays 91 48 232 371Cell-based assays 124 83 327 534Hybrid assays 89 39 157 285Other 2 1 7 10None of the above 0 0 22 22Total Respondents 124 83 399 606
North America Europe Unqualified Respondents*
Total Respondents
% % % %Biochemical assays 73% 58% 58% 61%Cell-based assays 100% 100% 82% 88%Hybrid assays 72% 47% 39% 47%Other 2% 1% 2% 2%None of the above 0% 0% 6% 4%Total Respondents 124 83 399 606
1. Which of the following assay types do you use in your research/work? (check all that apply)
Geographic Region
1. Which of the following assay types do you use in your research/work? (check all that apply)
Geographic Region
Pricing Models Market Size Estimation Demand Projections Brand Analysis Trending Analysis
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 31
Types of Primary Market Research Analyses
§ Market Estimation
§ Market and Concept Testing
§ Pricing Studies
§ Customer Satisfaction Studies
§ Market Segmentation Research
§ Customer Decision Research
§ Brand Performance Evaluation
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 32
Market Estimation
§ Market Size: Measurement of the total volume and/or value of all sales in a market.
— § Market Share: Proportion of the total market held
by a business, product or brand. —
§ Growth Rate: Annual increase in product sales or population within a given market.
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 33
Concept Testing
§ Concept Testing: This is the process of utilizing qualitative and quantitative methods to assess consumer response toward a product before introducing it into the market. It is also used to create communication designed to amend the attitude of consumers about existing products.
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 34
Pricing Studies
§ Price Elasticity Testing: Consumer sensitivity to changes in the price of a product is assessed.
— § Demand Estimation: Estimation is made about a
product's demand by conducting research. —
§ Sales Forecasting: The level of sales is determined according to the demand for a given product. Based on this, a business' future sales prospects are estimated.
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 35
Customer Satisfaction and Loyalty Studies
§ Determine whether a company’s products or services meet the expectations of customers and creating brand loyalty.
§ Satisfaction can be measured through multiple customer touchpoints:
• Quality of a particular product or service
• Customer-business relationship
• Price-performance ratio of a product or service
• Customer expectations
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 36
Market Segmentation Research
§ Segmentation divides a market into groups (i.e., segments) of customers with similar needs or characteristics who are likely to exhibit similar purchasing trends.
§ Specific customer groups may require different products, services, or marketing approaches.
§ Types of segmentation: • Geographical (region, country, etc.)
• Market (academic, industrial, etc.)
• Demographic bases (age, gender, etc.)
• Psychographic bases (values, personality, etc.)
• Behavior bases (usage, loyalty, etc.)
• Needs based segmentation
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 37
Brand Performance Evaluation
• Brand Positioning Research: Ascertain how a product stands in the market relative to a similar product by a competitor.
• Brand Equity Research: Determine what factors motivate people to select one product over another.
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 38
New Product Development
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 39
Why Develop New Products?
§ New product development is critical to long-term success
§ Changing environment creates new demands and
needs § A way of getting new and keeping old customers § Effective way of obtaining a competitive advantage § Source of growth
§ New market entry
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 40
Types of New Products
§ Improvements and Revisions of Existing Products (26%) § Additions to Existing Product Lines (26%) § New Product Lines/Functions/Applications (20%) § Cost Reductions (11%) § New-to-the-World Products (10%) § Repositioning (7%)
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 41
Factors Common to Successful New Products
§ Early product definition
§ Offer a strong relative advantage
§ Have stronger top management support
§ Reflect better understanding of customer needs, and beat the competition to market
§ Are launched with larger budgets
§ Quality execution of marketing, technological and production activities
§ Exhibit higher performance-to-cost ratios and higher contribution margins
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 42
Challenges in New Product Development
§ Shortage of new product ideas § Fragmented markets § High development cost § Shortage of Cash/Capital § Faster development time § Shorter product life cycle
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 43
Causes of New Product Failure
§ Design Failure
§ High development cost/price
§ Failure in market research findings:
• Overestimated demand and size of market
• Positioning problem
• Ineffective communication/promotion
• Unexpected reaction from competitors
• Poor timing
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 44
The Stage-Gate Process
Launch Implementation Feasibility Ideas
GATE 1 Establish
Project
GATE 2 Commit Major
Resources
GATE 3 Approval for
Launch
Marketing strategy development Finalize Manufacturing
Business case development Concept testing
Idea generation Idea screening Concept development
Monitor launch Make adjustments Product extensions
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 45
Use Market Data to Reduce Risk
45
High
Low Project Time
Project Risk
Project Knowledge
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 46
Generate and Screen Ideas (Stage 1)
• Generate ideas for new product development
• Ensure your customers are part of the innovation process
• Select the best ideas using market data
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 47
Research Options in Stage 1
Involve Customer Input into the Design Process
Customer Focus Group(s) On-site Customer Visits
Refine New Ideas with Thought Leader Interviews
In-Depth Interviews
Measure Receptivity to New Ideas Among Potential Customers
Short Online Survey
Determine Market Trends
Published Reports Focus Group(s)
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 48
Parallel Activities Fuel Feasibility (Stage 2)
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
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 49
Determine Product Feasibility
• Build business case: estimate market size, number of potential customers, pricing, demand and revenue estimates
• Understand product trade-offs, price implications and implications on demand based on product features
• Use market data to refine your concept to ensure success
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 50
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)
Research Options in Stage 2
Estimate Demand and Revenue for Concept Online Survey
Demand estimates, receptivity, likelihood to purchase, price elasticity can be generated very quickly and economically to determine market feasibility before R&D investment.
Determine Number of Potential Customers
Incidence data combined with secondary research
on the number of researchers
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 51
Determine the Number of Potential Customers
Real-Time PCR(qPCR)
Western Blotting
Cell/Tissue Culture
DNA Microarrays
Transfection
Cell-Based Assays
Mass Spectrometry
NGS
High-ThroughputScreening (HTS)
Stem Cells
BisulfiteConversion
BioInformatics maintains a proprietary incidence estimation of the % of researchers performing specific techniques in a given region. This data combined with population sizes determined through secondary data collection can be used to estimate the number of potential customers and market size.
% of life science researchers
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 52
Aligning Unmet Needs and Product Features
Illumina/Solexa Sequencing (n=68-132)
Brand name/company
Citations in peer-reviewed publications
Customer
Customer training
Financing
Level of technological innovation
Maintenance/service warranty
Promotions/discounts
Sales reps
Technical support
Der
ived
Impo
rtanc
e
Satisfaction More Less
Less
M
ore
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 53
Cross-Functional Teams Come Together in Development (Stage 3)
Technical Market
Financial
Operations
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 54
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
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 55
Research Options in Stage 3
Identify Beta-test Sites
Screening Survey to potential customers to recruit those most interested
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.
RateMyProduct Affordably and quickly assess market
receptivity, marketing communications, pricing and differentiation
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 56
Price Sensitivity Analysis
Van Westendorp Price Sensitivity Analysis provides the optimal price point for virtually any product. In addition, this powerful analysis uncovers the points at which customers will perceive your product as “too cheap”, “too expensive” or “price indifferent”.
Van Westerndorp Price Sensitivity Analysis
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 57
Unit Demand Estimation
0.0
5.0
10.0
15.0
20.0
25.0
30.0
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
LCMS Clinical Analyzer Price (USD)
Estim
ated
Pur
chas
e Q
uant
ity p
er 1
00 L
abs
North America (n=102)UK/Ireland/Netherlands (n=76)Germany/Austria/Switzerland (n=68)France/Belgium (n=41)Sweden/Finland/Norway/Denmark (n=25*)Spain/Italy (n=43)
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 58
Market Adoption Modeling
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 59
RateMyProduct™
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 60
RateMyProduct™
60
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 61
RateMyProduct™
$1,500
• You quickly learn what’s working – and what’s not…
• 100 potential customers learn about your product
• Can be used to test receptivity amongst different regions (US vs. EU)
• Price testing (run two using different price points)
• Evaluate receptivity amongst different customer groups
• Determine the product features respondents are most excited about – tailor your marketing message
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 62
Product Launch (Stage 4)
• Measure awareness
• Fine-tune pricing
• Calibrate sales strategy
• Assess customer satisfaction
• Monitor inventory
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 63
Post-Launch Research Options
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
RateMyProduct Measure awareness over time and continue to
introduce new customers to your branded product using RateMyProduct
BioInformatics, LLC • www.gene2drug.com • ©2013 • Page 64
www.gene2drug.com
Greg Thompson Business Development [email protected] 703.778.3080 x22 Mary Follin Marketing and Sales [email protected] 703.778.3080 x13
BioInformatics LLC is the premier research and advisory firm serving the life science tools industry. By leveraging our online professional network of tens of thousands of biomedical researchers, we have supported more than 300 companies and provided insights that lead to better business decisions. Our expertise includes assessing the size and attractiveness of markets, optimizing product configurations and pricing, validating corporate acquisitions, measuring customers’ brand loyalty, and evaluating brand strength and positioning. Since 1994, BioInformatics LLC has been providing off-the-shelf reports, custom-designed studies and market analysis that enable companies to understand their market and competitors through the eyes of the most important information source of all—the people who buy their products.