A multi-national pharmaceutical company recently launched a new non-generic drug. Since the company already owned the leading non-generic drug in that market, cannibalization was a concern. The goal was to create market share for the new drug, while maintaining or increasing market share for the well-established drug by modifying types of promotional spend.
Traditionally, the Analytics Department would employ a Marketing-Mix Model (MMM) to determine the impact of promotional spend, but the company was looking for further insight into the mechanics behind the MMM. After exploring multiple options, they determined agent-based modeling, and ultimately AnyLogic would allow for the greatest flexibility and visualization.
The AnyLogic model, built by Sterling Simulation showed the ideal time to stop Direct-to-Consumer (DTC) marketing spend and provided insight into the doctor-patient relationship. By delivering additional understanding into the market, AnyLogic Software continues to save the company at least $10M per year.