Companies at bio-pharmaceutical industry today managing multiple products for the same indication is a complex balancing act —especially those that want to prevent one of their brands from gaining market share at the expense of another. Maximizing the potential of each product requires well-crafted marketing strategies and smart resource allocation plans. Marketers must effectively launch and market a new product or brand in a way that challenges external competition yet sustains the sales and value of a legacy brand that the company controls. Best Practices, LLC conducted extensive research to identify successful strategies and tactics for marketing multiple brands for the same indication or area of use without cannibalizing an existing portfolio. Special attention was given to strategies for managing resources and for avoiding or controlling product cannibalization. Marketers can use the valuable insights and exhaustive data in this research study to carefully plan and implement their marketing strategies to create multiple, high-performing brands.

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Best Practices, LLC
Strategic Benchmarking Research
Best Practices in Expanding a Product
Portfolio Without Cannibalizing an
Established Pharmaceutical Brand

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Table of Contents
 Executive Summary
 Research Overview: Objective & Key Topic Areas
 Participating Companies
 Critical Success Factors in Marketing Multiple Brands
 Key Findings & Observations
 New Product Differentiators, Strategies & Impacts
 Marketing Spend & Budget Allocation
 Marketing Activities & Product Goals
 Qualitative Analysis
 Pitfalls to Avoid
 Best Practices
 Appendix
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Key Topics Covered
Research Overview: Objective & Key Topic Areas
Study Objective & Methodology
Objective:
This benchmarking study was designed to
identify effective strategies and tactics for
marketing multiple brands for the same
indication or area of use.
Special attention was given to strategies for
managing resources and for avoiding or
controlling product cannibalization.
Methodology:
Best Practices, LLC used an online survey
instrument to collect quantitative data.
Research analysts also conducted in-depth
interviews to collect executive insights and to
harvest best practices and lessons learned.
 Effective methods of differentiating
multiple brands
 Positioning strategies that minimize
product cannibalization
 Operational changes that drive success
when introducing a new brand into a
product family
 Positive & negative impacts of introducing
a new brand
 New product’s share of the combined
marketing spend during first three years
both are marketed
 Marketing mix for new & legacy products
 Marketing activities that drive continuing
success for legacy brand
 Best indicators of marketing effectiveness
 Pitfalls, failure points and best practices
BEST PRACTICES,
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Best Practices, LLC conducted this research to identify successful strategies and practices used by
biopharmaceutical and medical device company managers and executives to avoid uncontrolled
brand cannibalization and maximize the potential of multi-drug portfolios or franchises.

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30 Companies Participated in the Benchmark Study
Full Benchmark Class
This study engaged 37 brand leaders from 30 leading pharmaceutical, biotechnology, and medical
device companies. When appropriate, data in this report is presented separately for companies in the
pharmaceutical/biotech and medical device/diagnostic industry segments. Logos on this slide
represent participating companies, which are grouped by segment.
Medical Device Segment:Pharmaceutical/Biotech Segment:

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The following findings emerged from this benchmark study.
Key Findings & Observations
1. Benefits of New Brand: Most benchmark participants realized benefits from introducing a new
brand where they already had a legacy product. Top among those benefits were market
leadership, expanded market share and improved reputation with physicians and specialists.
2. Negative Impacts: There can be negative impacts in introducing a new brand for the same
indication or area of use as a legacy brand. The most common of those include creating product
confusion among internal and external stakeholders.
3. Minimizing Cannibalization: Benchmark partners successfully use more than a dozen different
strategies to control or minimize product cannibalization. Targeting different patient subtypes and
aligning with thought leaders are viewed as the most effective of these.
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11%
11%
78%
11%
22%
22%
67%
33%
44%
4%
11%
14%
21%
25%
29%
32%
39%
46%
82%
Other (specify)
Compliance
Health outcomes
Quality of life
Delivery method/ device
Ease of use
Frequency of use/ dosing
Price
Safety
Efficacy
Q4. Which three of the following options are the most effective for differentiating two or more brands within one
company for the same indication or area of use? (Select only three to indicate the top three most effective
differentiators.)
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Bio-Pharma Segment
Medical Devices
(n=28)
(n=9)
Efficacy Is Top Product Differentiator for Pharma Segment
Efficacy is by far the most effective product differentiator for potentially competing brands within a
pharmaceutical or biotech company. Within the medical device segment, health outcomes is the most
effective option for differentiating among brands.
Top 3 Differentiators: Pharma/Biotech Segment
% Responses

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Q18. Please indicate whether your company's marketing strategy was successful in achieving goals, forecasts and
objectives for its older and newer brands? (Choose one for each statement to indicate your level of agreement.)
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Benchmark Class: Success Level
New
Brand
Legacy
Brand
New Brands More Likely to Achieve Target Goals & Objectives
Goals and objectives appear much more likely to be achieved among new brands than legacy brands
as 96% of respondents believed that their new product sales goals were achieved, versus 93% for older
products. Respondents were also more likely to believe their new products achieved important
forecasts and objectives.
Total
Agree
96%
93%
93%
86%
89%
93%
43%
37%
43%
43%
36%
32%
54%
56%
50%
50%
54%
54%
Newer product achieved sales goals
Newer product achieved forecasts
New product achieved objectives
Older product achieved sales goals
Older product achieved forecasts
Older product achieved objectives
Strongly Agree Partially Agree

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Ten Critical Success Factors in Marketing Multiple Brands
Multiple Brand
Marketing
Excellence
1. Take a Franchise-
Centric Approach
3. Align Each Brand
with Distinct Customer
& Patient Segments
7. Align Marketing Mix
to Reflect Market
Entry Position
9. Price to Reflect
Values of Individual
Customer Segments
10. Plan for Migration
to Newer Brand
2. Clearly Differentiate
Each Product
on Attributes
4. Set Realistic Goals
& Objectives
8. Plan Early to Execute
Anti-Cannibalization
Strategies
5. Align Sales to
Brand Goals
6. Provide Sufficient
Resources for Each
Brand
Best Practices, LLC research identified a series of 10 critical practices or steps that lead to
excellence in marketing multiple pharmaceutical products for the same indication or area of use.
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Q22. What are the key pitfalls, or failure points, that companies need to avoid when marketing more than one brand for
the same indication or area of use?
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Pitfalls to Avoid
 Insufficient buy-in/ cooperation from the sales force
 Inadequate customer/patient segmentation
 Failure to clearly differentiate/position individual products and their values
 Unrealistic product goals
 Lack of effective pricing strategy
 Internal competition for limited resources
 Poor thought leader alignment
 Insufficient investment in the new brand
 Failure to align thought leaders
 Insufficient sales force training
Pitfalls to Avoid
Key pitfalls identified by the benchmark class in surveys and interviews are:

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Q23. Please share three best practices for successfully marketing more than one brand for the same indication or area
of use.
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Best Practices
 Provide clear product differentiation and unique positioning for each brand
 Segment patient/ customer groups
 Align sales force incentives with goals and
train reps to deliver message
 Focus on the whole franchise above individual brands
 Measure performance
 Align internal functions and objectives
 Collect and leverage segment-specific data
Best Practices for Managing Multiple Brands
Key best practices identified by the benchmark class can be grouped into seven general
categories.

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Best Practices, LLC
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About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet
profound principle that organizations can chart a course to superior economic performance by studying
the best business practices, operating tactics, and winning strategies of world-class companies.
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