Standard discounting analysis for ethical products across the competitive landscape

As pharmaceutical companies navigate pricing and market competition, discount analysis serves as a strategic compass. By unveiling critical insights into discount dynamics, pharmaceutical companies can shape their pricing strategies, market positioning, and financial planning. From calculating average discounts across therapeutic areas to identifying trends specific to public and private healthcare institutions, discount analysis is an indispensable tool for pharmaceutical companies that seek a competitive edge. 

When a leading pharmaceutical company wanted to unravel the intricate dynamics of discounting within the pharmaceutical sector, they partnered with Netscribes. Explore how we provided them with actionable insights for navigating the competitive landscape with a finely tuned pricing strategy. 

Objective and challenges 

Our client, a leading pharmaceutical company, sought assistance in conducting a comprehensive study to analyze the discount rates being offered on ethical products across the value chain.

The main aim of this competitive research was to calculate the average discounts provided by various pharmaceutical companies in the target countries on their ethical products. The focus would lie on the top five therapeutic areas/product lines across the top five multinational pharmaceutical companies to arrive at the average.

These five pharmaceutical companies would be of similar employee strength and client size in terms of revenue. The target therapeutic areas were acute and chronic pain, antibiotics (Oral and Injectable), anti-coagulants, oral anti-diabetics, and respiratory – Antiasthmatic & COPD. The study spanned five countries, namely, Indonesia, Philippines, Singapore, Thailand, and Vietnam.

Approach and solution

Netscribes used a fusion of extensive secondary and primary research to gather accurate insights on the discounts offered across these geographies.

Secondary research:

• The assignment involved 15-20% desk research, essentially to identify the major pharmaceutical companies, specifically those with similar client size in terms of revenue, distribution channel partners, respondent details, industry trends, etc.
• The team developed an in-depth understanding through a thorough discounting analysis across the value chain in the Philippines and Indonesia.
• We also referred to company websites and various public and private databases for this study.

Primary research:

• We conducted 40 in-depth interviews in the Philippines and Indonesia with pharmaceutical companies, wholesalers, distributors, retailers/specialty pharmacies and industry experts. The objective was to understand the types of discounts being provided.
• We also included telephonic interviews each lasting an average of 10–15 minutes.

Results delivered

After gathering data-rich insights about the prevalent discount dynamics across the competitive landscape, Netscribes provided a detailed report with the following key highlights:

• Various discounts being provided across the value chain in both the countries and across various therapeutic areas
• Discount trends specific to public and private hospitals
• Several monetary benefits being provided, in addition to the regular discounts