Developed a market potential assessment framework for a large medical devices company

  • September 27th, 2018

What We Did:  Built a framework to determine the market size and positioning across geographies for launching new therapies

The Impact We Made:  Scalable market assessment model was used to create many customized market models tailored for unique set of market definitions

Summary – Estimating market potential to launch a new therapy

The client was launching adjuvant therapy (for cancer treatment) and had conducted several primary research studies for launch strategy. However, a complete market definition was needed to gauge the market demand for their upcoming therapy in various geographies across US.

Mu Sigma was approached to develop a robust market sizing framework to help the client make go/ no-go decision for their new adjuvant therapy.  Detailed quantitative analysis of market opportunities was carried out to forecast volumes, revenue and market shares for specific market segments. The market sizing framework enabled the client to conduct market analysis through a bottom up as well as a top down approach. The client then, designed the launch strategy by identifying and prioritizing the market segments based on the analysis.

About The Client – Medical devices major

The client is a multinational medical devices and pharmaceutical company with more than 50 subsidiaries which run operations in over 55 countries. It also has numerous household names of medications and first aid supplies.

The Challenge – Incomplete market definition

To make a launch plan for their new therapy, the client had conducted several research studies, mostly secondary research. Due to this, the plan was incomplete and lacked accuracy Also, the adjuvant therapy under study was a radically new therapy that sought to replace a well-entrenched procedure. The target market was also not well defined.

The Approach – Developed market-sizing models

A structured approach was followed to develop a market sizing framework:

  • The team identified potential segments by studying medical literature and consultation with the client. The size of each market was quantified and segmented by specified geographies.
  • Robust data sources for estimating market potential were identified. A combination of library and online research was leveraged and in some cases, wherein very specialized information was needed, some primary researches were also conducted.
  • Based on the identified data sources, market potential assessment model was developed for each of the identified segments in 5 countries/regions including size of each market, growth potential, and key variables to change.
  • Market size estimates were then derived based on the characteristics of various market segments.

The Outcome – Market potential assessment framework

The framework provided the client with:

  • Key inputs into their business planning initiatives including business case development, market opportunity assessment, market entry strategy and financial analysis
  • Ability to create customized market models tailored for unique set of market definitions, objectives, or parameters
  • Recommendations to build the launch plan for the new therapy