In today’s marketplace, launching multiple products for a common therapeutic area is both resource-intensive and strategically challenging. Managing similar products or an integrated product portfolio is a complex balancing act for bio-pharmaceutical companies — especially those that want to reduce the costliness of launching and promoting multiple products simultaneously. Maximizing the potential of each product requires well-crafted Sales alignment and improved access and reputation. Best Practices, LLC conducted this benchmarking study to identify evidence-based benchmarks on the pros and cons of managing multiple products via a franchise approach. The study focused on uncovering proven tactics for efficiently deploying Sales and Marketing resources to reduce the costliness of launching and promoting multiple products simultaneously. Research findings can serve as a reference point for portfolio managers to most efficiently manage multiple products and indications in the same therapeutic area. Topics addressed in this report include: Managing Similar Products or an Integrated Product Portfolio Optimizing Sales Resources within Franchise Operations Leveraging Resources for: Sales Force Alignment & Training Sales Samples & Collateral Management Efficient Customer Targeting Better Territory Alignment Sales Force Effectiveness & Span of Control Sales Management & Analytics Combining Resources for Efficiently Marketing Multiple Products with Similar Indication Optimal Brand Team Approaches for Product Franchise

1. BEST PRACTICES,
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Best Practices, LLC Strategic Benchmarking Research & Analysis
Best Practices in Launch Optimization:
How Promotional Efficiency can be Leveraged to
Support Multiple Products & Indications

2. BEST PRACTICES,
®
LLC
Table of Contents
 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
 Research Overview
 Participating Companies
 Key Trends Observed
 Franchise Value Pyramid
 Detailed Key Findings & Insights
 Level 1: Reducing Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
 Level 2: Gaining Efficiencies & Boosting Productivity Levels. .35
 Level 3: Growing the Top-Line. . . . . . . . . . . . . . . . . . . . . . . . . . . 57
 Level 4: Enhancing Corporate Reputation. . . . . . . . . . . . . . . . . 73
 Critical Franchise Risk Points. . . . . . . . . . . . . . . . . . . . . . . . . . . 79
 Appendix: Participant Demographic Data. . . . . . . . . . . . . . . . . 82
 About Best Practices, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
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3. BEST PRACTICES,
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Key Topic Areas Examined Include:Study Overview
 Managing Similar Products or an Integrated
Product Portfolio
 Optimizing Sales Resources within Franchise
Operations
 Leveraging Resources for:
 Sales Force Alignment & Training
 Sales Samples & Collateral Management
 Efficient Customer Targeting
 Better Territory Alignment
 Sales Force Effectiveness & Span of
Control
 Sales Management & Analytics
 Combining Resources for Efficiently
Marketing Multiple Products with Similar
Indication
 Optimal Brand Team Approaches for
Product Franchise
Project Overview and Research Methodology
Best Practices, LLC conducted this benchmarking study to identify evidence-based benchmarks on the
pros and cons of managing multiple products via a franchise approach. The study focused on
uncovering proven tactics for efficiently deploying Sales and Marketing resources to reduce the
costliness of launching and promoting multiple products simultaneously.
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Research Objective: The study distills effective
approaches to leveraging and pooling launch and
promotional resources, employing efficient sales
and digital marketing technologies and applying
other innovative promotional approaches to
support integrated product portfolios or franchises.
Research findings can serve as a reference point
for portfolio managers to most efficiently manage
multiple products and indications in the same
therapeutic area.
Methodology: Best Practices, LLC engaged 65
Sales, Marketing, and Commercial leaders at more
than 50 companies through a benchmarking
survey instrument.

4. BEST PRACTICES,
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Universe of Learning: Participating Companies
Many organizations have faced the “good problem” of a rich pipeline featuring multiple
similar products to support and promote. Sixty-five executives from 52 leading healthcare
organizations participated and provided experience-based insights for achieving optimal
franchise management.
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Building a “Franchise Value Pyramid”
Franchise managers maximize the value of portfolio assets in four distinct but
complementary ways: 1) reducing the average cost of supporting each product, 2) gaining
efficiencies across the franchise, 3) driving revenue growth across products, and 4) reaping
the reputational rewards of therapeutic area leadership.
Level 2. “Gain Efficiencies &
Boost Productivity”
Level 1. “Reduce
Costs”
• Greatest Cost Savings Area =
The Field Sales Force (Size, Training, & Effectiveness)
Leverage
technology
Level 3. “Drive Top-Line Growth”
Level 4. “Enhance Corporate Reputation
as Therapeutic Area Leader”
• Smarter Sampling
• Better Customer Targeting
• Single Brand Team
• Shared Performance Analytics
The Franchise Value Pyramid:
•Improved
Access &
Reputation
• HCPs willing to use
portfolio products
• Shrink Territories at Launch
• Supplement SF w/
Specialist Teams
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6. BEST PRACTICES,
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Key Findings: Reducing the Cost of Supporting
Multiple Products
• Franchises Are Highly Successful in Driving SFE, Credibility, Access, & Lower Promotional
Costs: 62%of companies have been highly successful in increasing SFE, and a majority have
had strong success in bolstering rep/company credibility and improved access to physicians.
Almost 90% of research partners rated “enhanced sales for all products” and “greater therapeutic
area market share” as modest franchise successes.
• Sales Force Size, Training & Effectiveness Offer Greatest Cost Savings Opportunities: The
greatest factor affecting the cost of supporting any pharma product is sustaining a sales force.
Thus, companies achieve the greatest net cost savings in an integrated product franchise by
improving sales force effectiveness (58% of benchmark respondents), reducing sales force size
(57%), and improving customer targeting (57%).
• Remove Redundancies in Sales Force Size & Customer Details: The most effective
redundancy-removal areas to explore include sales performance analytics (48% highly effective),
rep training (42%), and customer targeting (40%). Companies can benefit from redundancy
removal in sales force size (i.e., not adding another full sales force for new products) and
customer details – which received strong effectiveness ratings.
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The following key findings regarding cost reduction through superior franchise
management emerged from this research.
1.0 Reducing Costs:

7. BEST PRACTICES,
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Franchises Are Highly Successful in Driving SFE,
Credibility and Access
Sixty-two percent of companies have been highly successful in increasing SFE, and a majority have had
strong success in bolstering rep/company credibility and improved access to physicians. Almost 90%
of research partners rated “enhanced sales for all products” and “greater therapeutic area market
share” as at least moderate franchise successes.
Q. Please indicate in which areas you have been successful as a result of managing similar products as part of an
integrated product franchise.
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Evaluating Franchise Benefits:
4%
4%
4%
4%
15%
8%
15%
19%
12%
8%
8%
12%
28%
35%
35%
19%
31%
31%
27%
42%
50%
52%
58%
48%
42%
46%
62%
58%
54%
54%
46%
42%
36%
31%
24%
23%
15%
Increase effectiveness of Sales organization
Increased credibility for company and sales rep within therapeutic
area
Improved physician access
More motivated Sales team
Enhanced corporate reputation within marketplace
Lower costs of launching and promoting each product
Enhances sales momentum for all products
Greater market share in franchise therapeutic area
Better formulary access
Reduced overall size of field sales force required
Easier to enroll physicians/patients in clinical trials for that
Therapeutic Area
Unsuccessful Neutral Somewhat Successful Highly Successful
26
26
26
26
26
26
26
26
25
26
26
(n=)

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The
Franchise
Reducing Costs across the Franchise: Where
to Begin?
Marketing
Patient
Support
Training
Zocor
Customer
Targeting
Centers
of
Excellence
New
Product
Planning
Sales
Force
Market
Research
No two franchises are exactly alike. There are many ways and many areas in which to
cut costs. The biggest driver of absolute cost reduction for a franchise involves the field
Sales force.
Managed
Care
Med EdDigital
Thought
Leaders
Therapeutic
Area
Business
Intel
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“Develop a one, three & five year plan to avoid
making sales force changes too often as a
reaction to market changes.”
-- Senior Director, Marketing Operations
“Reduce sales force size!”
-- Commercial Excellence Mgr
““Define the
organization
based on
customer
needs.”
-- Nat’l Sales
Manager
Reducing
Cost 1.1

9. BEST PRACTICES,
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Newly
Launched
Product
New
Compound
Mature
Product
Use Shared Sales Visual Aids to Drive SFE across
Franchise & Reduce Costs
Cost Reduction:
“Less cost with better
impact & higher efficiency”
-- Country Manager
“Saved cost , improved
efficiency” – President
“Decrease platform costs” -
- Senior Product Manager
“Using the same agency to
produce several digital
assets saved money.” --
Marketing Innovation
Manager
Increased SFE:
“Only tool to increase our
SOV” -- Head Marketing
“It improves the overall
branding” -- Key Account
Manager
“Since it’s the same
molecule, makes sense to
combine the sales
aid/selling story” --
Director, US Marketing
Sciences
“To make it easier for
doctors understand the
portfolio approach.” --
Product Manager
“Enables focus on a lead product and supporting products, limits duplication of
therapy area/ disease awareness messages. Enables better positioning of
products within the same indication.” -- Product Manager
Shared sales visual aids are a proven way to economically boost Sales Force
Effectiveness. As one executive said: “[They are] the only tool to increase our Share of
Voice.”
Reducing
Cost 1.13

10. BEST PRACTICES,
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Common & Modular Training Combined w/ Disease State
Education Can Leverage Sales Force Training Resources
More than half the benchmark class is effectively using common resources for both core
and modular training. Using shared disease state education information and other
curriculum for multiple indications across sales forces was also rated effective by virtually
all respondents.
(n=21)
Q. Please rate the effectiveness of combining and leveraging resources for the following tactics for promoting multiple
similar products in the same therapeutic area.
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Efficient Sales Force Training:
57% 57%
48% 43%
19%
38%
29% 48%
48%
62%
4%
5%
10%
5%
14%
4% 10%
Common Training +
Breakout Training:
Core training for all
sales forces +
differentiated
breakouts by customer
or patient type
Modular Training:
Insert spot materials
for unique differences
by indication/product
rather than new
courses
Disease State
Education: Same
materials to cover
multiple indications
Sales Curriculum:
Same materials for all
sales forces
Trainer-to-Rep Ratios
rise / fall depending on
launch or performance
(e.g., 1:200 at launch
and 1:500 post launch)
Highly Effective Somewhat Effective Ineffective Don't Use
Efficiencies
2.2

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Primary Care Franchises Can Carry Larger
Spans of Control for DMs & Trainers
Franchise regional directors manage an average of 26 people, DMs manage 10, and sales
trainers oversee 24. Primary Care sales forces are better suited for leaner span of control
ratios – averaging 15 personnel managed by DMs and 50 by trainers (compared to 10 and 12,
respectively, for Specialty Care).
Q. Please estimate the number of people managed at each level in your sales organization serving your multi-product
portfolio.
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Sales Span of Control Ratios
(Total Benchmark Class):
Regional
Directors
District Managers Sales Trainers
Max 1 : 100 1 : 56 1 : 200
75th Percentile 1 : 34 1 : 10 1 : 20
Mean 1 : 26 1 : 10 1 : 24
Median 1 : 7 1 : 8 1 : 6
25th Percentile 1 : 3 1 : 4 1 : 2
Min 1 : 1 1 : 2 1 : 1
1 : 80-100 1 : 8-12 Not Sure
Efficiencies
2.8
Research Note:
Primary Care Segment
RDs – 1 : 31
DMs – 1 : 15
Trainers – 1 : 50
Specialty Care Segment
RDs – 1 : 31
DMs – 1 : 10
Trainers – 1 : 12
(n=7)
(n=7)
(n=18) (n=16) (n=15)

12. BEST PRACTICES,
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Most Franchises Use a Single Brand Team for
Each Indication
A majority of companies (58%) use just one brand team to manage multi-product franchises
serving a single indication. If a company uses a separate brand team for each product
indication, it is much more likely to work closely with the other brand teams in the franchise
than it is to operate in a vacuum.
(n=40)
Q. How does your organization structure the brand teams associated with a product /molecule that treats multiple
indications?
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Brand Team Structure Used for Multiple Products/Indications:
A separate brand
team for each
product/indication,
with no interaction on
the franchise level,
8%
A separate brand
team for each
product/indication,
with significant
collaboration on the
franchise level, 30%
One brand team for all
products/indications,
58%
Other , 5%
Efficiencies
2.16

13. BEST PRACTICES,
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40% of Benchmark Franchises Have Multiple
Products Competing Under One Indication
Multi-product franchises come in different shapes and sizes. Forty percent of benchmark companies
have franchises which consist of multiple products competing to serve the same indication, while
others support products derived from the same molecule but with different brand names or indications.
Regardless, all franchise managers seek to maximize market share through shrewd resource allocations
that give each product the best chance to succeed.
(n=62)
Q. Which of the following best describes your product franchise profile?
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Franchise Type:
2%
6%
11%
11%
13%
16%
40%
Same molecule / same brand name formulated for
different patient sub-populations (e.g., extended release;
pediatric, etc.)
Same molecule / different brand names marketed for
different therapeutic areas
Multiple products sharing a common method of drug
delivery
Fixed Dose Combination (same molecule combined with
other active ingredients, e.g. Cholesterol reducer +
Hypertensive)
Same molecule / same brand name formulated for
different indications
Different products under different brand names developed
from same molecule
Multiple products competing to serve same indication
Growth
3.1

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Benchmark partners give voice to the importance of targeting – in multiple dimensions –
as a critical success factor. Superior targeting drives reduced costs, increased efficiency,
and better uptake at launch.
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Voices From The Field: Superior Targeting Is
Key to Cost Efficiency & Growth
“Increased promotional effort on higher
decile targets at launch in specialty
offices. Added extra resources at PCP
level required a re-alignment of
territories.” -- Senior Director, Marketing
Operations
“Smaller territories with more number of
specialties & higher frequency of
coverage” -- Country Manager
“Expanded to cover extra urban space to explore the
potential by reducing low/no contributing customers
within the urban space” -- Head of Marketing
Growth
3.7

15. BEST PRACTICES,
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Marketing & Business Units Play Chief Role in Leading
Franchise – with Some Sales Backing
While drawing on the skills and insights of many other groups, franchises are generally led by
Marketing (72%) and Business Units (59%). New Product Planning, Global Product Strategy, and
especially Sales also help lead franchises at one-third of organizations. As one Senior Marketing
Director told us: “Get sales leadership buy in from the start - involve them in every aspect , from market
research through tactical support creation.”
(n=)
Q. What role does each of the following groups play in managing your integrated product portfolio?
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Portfolio Team Structure:
64
61
64
60
60
62
61
62
2%
7%
9%
13%
7%
6%
26%
6%
27%
34%
53%
52%
63%
74%
56%
77%
72%
59%
38%
35%
30%
19%
18%
16%
Marketing
Business Unit / Therapeutic Area Leadership
Sales
Global Product Strategy
New Product Planning / Commercialization
Business Intelligence
Managed Markets
Market Research
No Involvement in Product Portfolio Management Support Role Lead Role
TA Leader
4.1

16. BEST PRACTICES,
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Best Practices, LLC
6350 Quadrangle Drive, Suite 200
Chapel Hill, NC 27517
www.best-in-class.com
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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