Retain or increase your product’s market share by knowing the market penetration of the Generic
Prof. Reza Bin Zaid, PhD
penetration is the measurement of the number of prescription of a generic
compared to the total theoretical prescriptions. Market penetration of a
generic focuses on measuring the relevance/ needs of a generic, in terms of
usage by a specific specialty, in a given period of time.
the market penetration for a generic indicates the potential for increasing
prescription by a specific specialty. In other words, smaller the market
penetration of the product, the more the company should invest, in its strategy
for marketing that product.
How could you use market penetration?
market penetration strategy involves focusing on selling your existing products
or services into your existing markets to gain a higher market share.
strategy is the concept of taking aggressive action to greatly expand
one's share of the total sales in a market. The resulting increased sales
volume typically allows a business to produce goods or obtain merchandise at
lower cost, thereby allowing it to generate a higher profit percentage.
penetration refers to the successful prescription of a product in a specific
market. It is measured by the number of doctors who prescribed a particular
brand divided by the relevant market size, expressed as a percentage.
example, if 500 doctors out of 100,000 prescribed a brand, the brand
penetration rate is 0.005 (500/100,000), or 0.5 percent.
aim of the market penetration is to use your product effectively, enter the
market as quickly as possible and seize a large market share.... Also, if there
is a business plan to increase market penetration, it is important to implement
certain tactics & strategies that will increase your sales and decrease the
Market penetration is one of the four alternative growth strategies in the Ansoff Matrix.
market penetration strategy involves focusing on promoting your existing brand
into your existing markets to gain a higher market share. This is the first
strategy most company will consider because it carries the lowest amount of
strategy of promoting more to the current prescribers and to the new
prescribers who can be thought of being in the same therapeutic purposes.
example, if your current prescriber base consists of Gastroenterologist for therapeutic indication of Rabeprazole then
this strategy would involve attempting to promote more of your existing brand
to the same group.
key constraint is that, you cannot allow anything in your drive, to grow your market
share to compromise your existing success. You need to be aware of, what has
made the product a success so far and ensure that nothing you do, that will
should give this strategy a careful consideration, if you are not in a position
to invest heavily or you are not comfortable with taking risks, as the amount
of risks associated with this strategy is relatively low.
are four approaches you can adopt when implementing this strategy:
or increase the market share of current products
can achieve this by adopting a strategy that is made up with a combination of
growth-share matrix in the BCG. MedAnalytics uses BCG matrix to understand the
necessity of investment of a brand- “When
and why need to invest for a brand” This would involve focusing
on investment, cash generation and part of PLC management. This part of
marketing is responsible for managing the promotion of the product to secure
dominance in the growth.
dominance of growth markets
approach you can take is to identify a new specialty for your product, for
example, you found in the market penetration report that Dentistry and Dental surgeon group need to prescribe Rabeprazole
with NSAIDS frequently. An excellent decision of such strategy would be to
invest in that new category of your brand prescribers and then aggressively
market your brand to that specialty group.
role in the discussion as a senior executive will be, to define their strategy
to provide the market intelligence to the executive team that helps the current
dynamics of the market. The data you provide will help the team to decide
whether a growth of the market is an extension of the current market or it is
truly a 'new' market. This decision of investment is likely to be based on, how
your organization is going to approach in this growth market.
a mature market by driving out competitors
may find your brand in a mature or saturated market but to achieve further
market share requires a different approach. This strategy requires an
aggressive promotional campaign, supported by a strategy that will be designed
to make the market unattractive for smaller competitors.
a mature market there are no more specialty sectors to exploit and the only way
to attain the market share is to take it from the competitors. Examples of this
strategy can be seen in some of the brands, where the larger players now
dominated. More recently there has been the introduction of loyalty campaigns,
where the company compete for the market share through doctors’ loyalty
usage by existing prescribers
approach of market penetration is to persuade your existing doctors to
prescribe your brand more frequently. There are several tactics you could use
to do this, including the loyalty schemes, adding value to the current brand by
promoting the “detailing mixture” or making brand extension to the generic that
encourage greater use.
aim of the tactics of this approach to 'tie in' your prescribers to your brand
by making it more difficult for them to move to another competitor’s brand. The
ability of your company to achieve higher usage by prescribers can be greatly
enhanced by rapidly changing technologies (brand extension) that encourage
prescribers to upgrade or offer more reasons to use the brand.
good example of this would be Multivitamins: extensions are now upgraded with
the addition of new features and capabilities like Multivitamin with minerals,
for old, for adult, for teen-him/ her, and for kids-chewable form. A successful
market penetration strategy requires to understand market situation of your brand
and competitor’s brand.
relies on you, having a successful product in the market which you already know
The key role you
are asked to perform is to capture the intelligence that is required to make
informed decisions. Understanding why this information is being asked will help
you to capture and deliver the most relevant and significant information’s.
Market penetration involves focusing
on promoting your existing brand into your existing market to gain a higher
This can be achieved in four ways:
maintaining or increasing the market share of current brand; securing the
dominance of growth markets; restructuring a mature market by driving out
competitors; or increasing the usage by existing customers.