Commercial outsourcing, or outsourcing of sales and marketing of pharmaceutical products to a third party, is not just a buzzword in the pharmaceutical industry. It is an essential business practice, feasible, and efficient way to launch new products. It also helps in growing market share, reducing costs, and increasing revenue.
New product launches typically require a lot of planning, time, people, infrastructure, and collaboration. New product launches also carry certain risks from marketing risk (whether promotional messages appeal to the target audience) to distribution risk (unforeseen circumstances like lockdowns during the COVID-19 pandemic) that may prevent the product from achieving success.
This is where commercial outsourcing comes into play. It is not an option, but a necessity that helps businesses reach their goals. Here are five advantages of commercial outsourcing and how they can save costs and help businesses grow.
The healthcare industry is in a constant state of flux with significant changes in consumer behavior, business models, technology, and innovation. Commercial outsourcing companies can provide businesses with more flexible services and adapt to market dynamics, offering diverse approaches to product launches, as no extra capital expenditures are required for building new sales and marketing teams or investing in technological advances.
With a team of experts and advanced technology, outsourcing companies can increase efficiency in new product launches, while businesses can focus on what they do best such as product development or invest their resources into other areas that will increase revenue for their business.
A commercial outsourcing partner has a deep understanding of the market dynamics, behaviors, preferences of healthcare professionals, and consumer purchasing patterns thanks to a plethora of data and insights from sales reps across the medical and pharmacy channels, as well as patient services.
Therefore, businesses can develop a better strategy for the stages of planning, execution, and analysis. Commercial outsourcing partners can help businesses define target users, develop a go-to-market strategy, and review post-launch success to gain additional data for businesses to improve their products or adjust their strategies.
3. Single Team
When it comes to new product launches, there is always a need for experts to develop a strategic plan and execute and manage along said plan. Outsourcing allows businesses to gain access to a team of professionals where knowledge, experience, and understanding of customers are combined.
An outsourced team is a group of experts in the local market, with a network of customers, and comprehensive data to develop and execute an effective strategic plan to serve clients better. Therefore, businesses do not need to invest time and budget on recruiting, training, and retraining talents for their businesses, and can dedicate their resources to be redirected to other functions or new projects.
4. Common objective
Your commercial outsourcing partner shares your revenue targets, margin growth, and growing market share. An outsourcing company works as a team to set marketing and sales goals and track progress towards them.
With a shared goal, team members understand that if they contribute more, they will be rewarded and are likely to be motivated to hit the team goals.
5. Digital Infrastructure
In this data-driven world, ready-to-deploy infrastructure including data and analytics platforms is of utmost importance. The right partner can provide data-driven standard operating procedures and strategies that can facilitate growth that outpaces competitors.
From launching new products in a new market or expanding channel reach, DKSH is perfectly positioned to be your commercial outsourcing business partner for your healthcare business’ marketing and sales needs. Together with our proven eCommerce channels, we can help you reach consumers offline and online.
Reach out to us to learn more about how outsourcing can help your business reach new heights ahead.