Reference no: EM133587650

Analyzing Market Dynamics and Revitalizing Brand Strategy for Market Cannibalization of an Injectable Anesthesia Drug

Problem Statement:

The anesthesia drug market is a segment of the pharmaceutical industry that focuses on the development, production, and distribution of medications used to induce and maintain anesthesia during medical procedures and surgeries. The market for anesthesia drugs encompasses a wide range of pharmaceutical products, including general anesthetics, local anesthetics, and adjunctive drugs that support the anesthesia process. The demand for these drugs is closely tied to the healthcare industry, as the number of surgical procedures, including both routine and complex surgeries, continues to grow worldwide. Factors such as an aging population, increased healthcare access, and advancements in medical technology contribute to the expansion of the anesthesia drug market.

You are a Healthcare Commercial Analytics leader working for anesthesia drugs portfolio at a big pharma company. As an analytics leader, understanding market dynamics and making evidence-based decisions are crucial for the success of the business. Your company has a market leading brand (Product 1) in the anesthesia portfolio. Your company also has recently launched a variant of the same brand (Product 2) in the market which is supposed to cannibalize your leading brand. (Market cannibalization is a loss in sales caused by a company's introduction of a new product that displaces one of its own older products in the market. The cannibalization of existing products need not necessarily lead to an increase in the company's overall market share, but at least the sales growth for the new product should be at the expense of the drop in sales of the old product.)

However, the expected cannibalization is not happening in the market. It appears that instead of your new product capturing the dropping sales of your old product, one of your competitors (Product 3) is rapidly gaining market share, leaving your new product (Product 2) to lose its expected market share.

Your tasks are:

1. Perform data preparations using the datasets provided to have one analysis-ready dataset.

2. Analyze the provided Medicare CCLF claims data using the Key Business Questions provided below, and come up with strong data-driven, actionable business recommendations to gain market share for Product 2

3. Compile the above analysis and recommendations into a PowerPoint presentation.

4. Present your findings to a panel of judges using the presentation.

Key Business Questions:

1. Market Dynamics and Competitive Landscape Assessment:
Perform a comprehensive analysis of the injectable anesthesia market for the years 2016 to 2018. Identify and explain the trends in market share, growth rates, and other key indicators for Products 1, 2, 3, and 4. How have these trends evolved over time, and what insights can be drawn from them? Compare and contrast the performance of Products 1, 2, 3, and 4 in the market. What sets Product 3 apart as a competitor that is rapidly gaining market share while Products 1 and 2 are struggling?
Hints:
a. Calculate and analyze the share of claims, patients and the HCPs using the HCPCS/CPT codes of these 4 products.
i. Expected outputs:

1. A 100% stacked bar graph showing claims percentage of each product per year, where one bar represents one year.

2. A 100% stacked bar graph showing the number of patients of each product per year, where one bar represents one year.

3. A 100% stacked bar graph showing the number of HCPs (I.e., writers) writing claims for each product per year, where one bar represents one year.

4. What do you observe from the charts above? What would be your actionable recommendations based on your observations?
b. Calculate and analyze the number of claims per HCP (aka writer) and the number of patients per HCP for each product.
i. Expected outputs:

1. A line graph showing the number of claims per writer per year, where one line represents one product, and one set of vertical data points are for one year.

2. A line graph showing the number of patients per writer per year, where one line represents one product, and one set of vertical data points are for one year.

3. What do you observe from the charts above? What would be your actionable recommendations based on your observations?
c. Find the top 5 territories with the most drop in claims volume from year 2017 to 2018 for the variant brand and compare it with that of the competitor brand (Product 3 - J3010).
i. Find the territory-level claims volume per product per year.
ii. Calculate the year-over-year change % for the variant brand between 2017 and 2018.
iii. Sort the territories from smallest to largest value from above.
iv. Take the top 5 territories with the smallest value for year-over-year change % (I.e., biggest drop in claims volume from 2017 - 2018) and extract the claims count for the variant brand and the competitor brand for each year from 2016 - 2018 for these 5 Territories.
v. Expected outputs:

1. A clustered bar chart showing the number of claims from each of these 5 territories for each year from 2016 - 2018 for the variant brand, where one bar is for one Territory within each year and the bars for one year are clustered together.

2. A clustered bar chart showing the number of claims from each of these 5 territories for each year from 2016 - 2018 for the main competitor brand (J3010), where one bar is for one Territory within each year and the bars for one year are clustered together.

3. These charts should compare and contrast the relative growth of J3010 compared to the variant brand in these 5 territories for each year, especially between 2017 and 2018.

4. Strategic recommendations can be different for highly populated Territories and the less populated ones, as they can follow the similar claim volume trends, but the HCP and patient populations are totally different between them. Think about the solutions proposed for Mid Terms.

5. What do you observe from the charts above? What would be your actionable recommendations based on your observations?

Attachment:- Market Dynamics.rar