Successful product launch depends on co-ordinated, cross-functional preparation and planning – activities on both HQ and local levels are necessary to reach success 1: HQ level – Several important activities need to be initiated to ensure anchoring, execution and follow-up 2: Local level – Preparation of launch team needs to be ensured through the development of well-thought-through local launch plans Common pitfalls should be addressed – Efficient planning based on six key success factors optimises product launch
Pharma product launch How to prepare a successful product launch
Introduction A successful product launch depends on co-ordinated, cross-functional preparation and planning • During the past couple of years, Quartz+Co has several times been asked to assist in planning for the commercial part of product launches within the pharma and med-tech industry. It is our experience that a global product launch must be carefully planned to ensure that the strategy developed globally is executed best possibly locally throughout the launch. There are common pitfalls that should be addressed through effective planning. For the planning to be efficient, there are six key success factors. These include – Integrated cross-functional view – Clear accountability and responsibility across functional areas and workstreams – Launch plan institutionalised with broad organisational buy-in • A product launch needs to be planned and co-ordinated at two levels with HQ being responsible for driving the development of the overall commercial plan and local organisations being responsible for planning and executing the local launches in accordance with the global guidelines • In order for HQ to prepare and plan the launch, several important activities need to be initiated to ensure anchoring, execution and follow-up on the developed plans. The HQ plans should include the commercial product strategy, plans to ensure steep sales trajectory, hereunder market-shaping activities, and activities to ensure organisational readiness • For the local organisations that execute the launch it is very important to ensure an prepared launch team and wellplanned activities to support the launch. This should be done through local launch plans which are developed in concordance with the global commercial strategy • To support launch-planning, it is recommended to co-ordinate the development organisations, the commercial organisations and the local executing organisations through boards like "Global Product Teams" and "Core Commercial Teams" 2
A successful product launch depends on co-ordinated and crossfunctional preparation and planning Key elements of a successful launch 1
Ensure early co-ordination between commercial and R&D in the product development • Through key opinion leader involvement and market research
2
Develop a solid product strategy • Including crisp segmentation, positioning within the existing portfolio and pricing
3
Ensure co-operative cross-functional planning and the right launch team to drive it • Through clear objective-setting, communication and effective collaboration
4
Plan for a steep sales trajectory • Through market-shaping activities and dedicated pipeline-building activities
5
Build organisational readiness • Through launch teams, crisp communication and training of all relevant stakeholders
6
Ensure successful local execution of global plans • Through careful local planning with global guidance and clear roles and responsibilities
3
Common pitfalls in product launches can be addressed through efficient planning based on six key success factors Common pitfalls in launch preparation
Key success factors for effective launch-planning
Integrated cross-functional view
Clear accountability and responsibility across functional areas and workstreams
Flexibility to adapt to contingencies
Understanding of key milestones across the organisation
Alignment and momentum around shared launch goals
Launch plan institutionalised with broad organisational buy-in
Inconsistent planning across functional areas
Lack of appropriate cross-functional communication
Inefficient or ineffective resource allocation
Limited institutional experience due to infrequent launches and personnel turnover
4
A product launch needs to be planned and co-ordinated at two levels Key responsibilities
HQ
Local
5
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Drive the development of the commercial strategy
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Plan the global launch
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Set overall targets and objectives for the launch
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Plan the local launch based on guidance given from HQ
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Drive local execution of the launch
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Execute to deliver the targets
EXAMPLE For HQ to prepare and plan the launch, several important activities need to be initiated to ensure anchoring, execution and followup of the plans developed
Key HQ activities
Identify and understand key milestones and critical path
Quickly set up HQ launch co-ordination office and launch task force (across functions involved in the launch)
Create clear governance structure and roles and responsibilities for HQ and local organisations
Establish modus and tools for follow-up and performance management
Activate and position the Core Commercial Team (CCT) from "day one"
Develop guidelines and templates for local launch plans based on the global product strategy
6
Element to include in HQ plans 1
2
3
Commercial product strategy
Marketshaping and pipelinebuilding
Organisational readiness
• • • • • •
Ambition and key success factors Market environment & segmentation Positioning and USPs Portfolio and sales strategy Price strategy Service and support strategy
• Market-shaping strategy and plan • Early pipeline-building • Sales and marketing material
• Launch timing and waves • Organisation, governance and modus • Roll-out plans for local launchplanning • Training • Internal communication
To the local organisations, it is very important to development of thoroughly prepared local launch plans Key local activities
7
Set up local launch teams in all local organisations participating in the launch
Develop overview of "top-20 activities" for each of the local organisations
Elements to include in local plans SWOT
Key challenges and opportunities • Internal strengths and weaknesses • External opportunities and threats
Key issues and CSF
Key considerations for success • Strategic questions and local issues • Critical success factors
Forecast
Forecast overview • Pipeline overview • Sales forecast
Activity plans
Local activities • Tactical marketing plans • Tactical sales plans & incl. training needs
Develop local launch plans with input and guidance from HQ
Integrate local portfolio strategies to maximise the value
Develop organisational set-up supporting dimensioning and development of sales force and customer service
Resource plans
Required resources • Overview of the sales set-up • Overview of the marketing budget
KPIs and follow-up
Launch execution-tracking • Local KPIs for tracking the plans developed
When planning a global product launch, co-ordination between functions and geographies becomes highly important Development
Commercialisation
Execution – locally
Sales GPT R&D
45 mill.
Denmark
10 mill.
Great Britain
30 mill.
France
50 mill.
Brazil
10 mill.
The USA
99 mill.
Japan
20 mill.
China
85 mill.
Mexico
50 mill.
Operation
Global Product Team
8
CCT
Germany
Marketing Communication
Core Commercial Team