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At DKSH we define commercial outsourcing as the contracting of sales, marketing, and other commercial services from an external partner, for some or all of the organization’s product portfolios.
Commercial outsourcing is not just another buzzword. It is a cost-effective way for companies to expand their business into new markets and increase sales for their new or current product lines.
With the right partner, commercial outsourcing provides brand-owning healthcare companies access to new markets and/or increased coverage in existing markets. Outsourcing part or the entire value chain also reduces costs while increasing efficiency and enabling deeper market penetration. This allows companies to focus on their core competency of research and development and innovation.
In our recent Route to Market survey conducted by DKSH, respondents from pharmaceutical, consumer health, and medical device companies shared what they thought about commercial outsourcing.
In this article, which is the second part of a four part-series, we highlight the top three reasons why healthcare brands consider commercial outsourcing and how outsourcing can benefit their businesses.
Commercial outsourcing allows brands to expand their geographical reach in existing markets while also penetrating new locations. By partnering with a commercial outsourcing provider such as DKSH, brands will also have access to a capillary distribution network of thousands of customers and partners in diverse channels; from medical centers and public and private hospitals to chain and mom-and-pop pharmacies.
An outsourcing provider will also have in-depth knowledge and understanding of local markets and regulations as well as regulatory restrictions, making market entry an easier process.
In a complex and competitive market, brands strive to successfully launch new products and quickly gain more sales. With support from a professional commercial outsourcing partner such as DKSH, brands can start penetrating new markets with their new products straight away without too much hassle.
Brands can skip the processes of conducting market research, planning, sales strategies, and forming new sales and marketing teams, hence, allowing businesses to reduce fixed costs.
Commercial outsourcing partners have experienced, high-performance teams of sales and marketing experts who know what strategies work best in particular markets and have developed healthy, long-term relationships with a network of customers. Allowing outsourcing partner to assist businesses in launching new products ensure their business growth and success.
When a product enters its maturity stage, sales often start to decline. But if managed properly, a mature product can still be a revenue generator.
Commercial outsourcing partners can support brands in reinvigorating products to grow by introducing products to new targets, retaining loyal customers, reviving sales through omni-channel approach as well as providing value-added services.
Enhancing patient care to patients to improve their positive experience of care and health outcomes such as Patient Support Programs offered under the DKSH PSPhere programs are a good example of this.
As patient centricity becomes more and more important, businesses need to stay focused on what they do best, while ensuring their products attain the maximum market potential.
Find out from us how commercial outsourcing can help you achieve faster market access, financial savings, increased revenue, and a more focused approach to running your business.