LONDON, July 16 2001 - In an increasingly complex and competitive environment, European pharmaceutical companies recognize that industry winners will concentrate on a handful of key marketing and sales operations, according to new Accenture research.
Specifically, the research found that, if a US$300 million European pharmaceutical business improved four of its marketing and sales capabilities from average to high performance, it could gain as much as $43 million in additional operating margin.
“Excelling at a small number of marketing and sales capabilities is critical for winning in the European marketplace, particularly since these account for up to 45 percent of the pharmaceutical cost base,” said (local market spokesperson), partner, Accenture Pharmaceuticals & Medical Products practice. “Our research findings willl help guide pharmaceutical companies toward more effective spending of their marketing and sales dollars--enabling them to move aggressively towards becoming effective ‘customer-centric enterprises.”
Specifically, the four marketing and sales capabilities that can lead to superior performance derive from effective management of:
The study, “How Much are Marketing and Sales Capabilities Really Worth? Driving Company Performance by Enhancement of Key Capabilities,” is the first of its kind in Europe to explore these capabilities in a systematically, i.e., by quantifying the value and impact of marketing and sales capabilities on financial performance. The study results offer a practical tool for identifying marketing and sales opportunities and efficiently prioritizing related business initiatives.
“The European pharmaceutical market is intensely competitive, with no room for miscalculation,” said (local market spokesperson), said, (local market spokesperson). “This research proves that industry leaders will recognize and capitalize on those marketing and sales capabilities that add true value--as measured by bottom line impact.”
Europe versus North America
This European research supports and complements a similar North American study undertaken by Accenture in 2000. While these new findings underscore the trend toward globalization of the pharmaceutical market, they highlight the significant differences that still remain between continents:
Conversely, three marketing and sales capabilities were found to exert a strong financial impact in both European and North American companies. These were:
Accenture researched 20 ethical pharmaceutical companies in Europe, including 34 sales subsidiaries. Each executive assessed his/her business unit’s performance by completing the section of the research relevant to his/her area of responsibility. Twenty-eight marketing and sales capabilities were included in the research. In total, 267 questions were answered by 77 executives.
Accenture is the world’s leading provider of management and technology consulting services and solutions, with more than 70,000 people in 46 countries delivering a wide range of specialized capabilities and solutions to clients across all industries. Accenture operates globally with one common brand and business model designed to enable the company to serve its clients on a consistent basis around the world. Under its strategy, Accenture is building a network of businesses to meet the full range of any organization’s needs -- consulting, technology, outsourcing, alliances and venture capital. The company generated revenues of $9.75 billion for the fiscal year ended August 31, 2000 and $5.71 billion for the six months ended February 28, 2001. Its home page is www.accenture.com.
Note to editors: “How Much are Marketing and Sales Capabilities Really Worth? Driving Company Performance by Enhancement of Key Capabilities” is one in a series conducted by Accenture to assess the relationship between Customer Relationship Management (CRM) capabilities and financial performance. In the Pharmaceutical industry, the current research focuses on marketing and sales (M&S) capabilities in Europe. Accenture published a U.S. version of this research in September 2000.