The Contract Sales Organization (CSO) Market Outlook to 2015: Emerging markets, leading players and future trends

Date: June 22, 2010
Pages: 85
Price:
US$ 3,835.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: CD4B22A2F5CEN
Leaflet:

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The Contract Sales Organization (CSO) Market Outlook to 2015: Emerging markets, leading players and future trends
The Contract Sales Organization (CSO) Market Outlook provides a detailed analysis of the demands on CSOs in the evolving pharmaceutical sales and marketing environment. Outsourcing is growing in the context of an industry which is increasingly reducing its footprint by cutting fixed costs. CSOs which are dependent on short-term arrangements have suffered from cancellations and unrenewed contracts as large pharma companies cut their internal sales teams. The emerging model of key account management is explored through a case study, and the report includes an in-depth examination of eDetailing. Building on interviews with pharma industry executives and industry experts, the report explores opportunities in emerging markets and describes strategies for success in the future outsourced sales market.

Key features of this report
  • Builds on detailed interviews with industry experts and senior executives.
  • Examines opportunities in emerging regions including India and China.
  • Reviews the changing dynamics of the sales environment including evolving guidelines and physician access issues.
  • Analyses the drivers and resistors of the CSO industry.
  • Explores the future of the contract pharmaceutical sales and promotion.
Scope of this report
  • Assess the opportunity for CSOs in emerging markets including China and India.
  • Learn what is changing in the pharmaceutical sales and marketing environment.
  • Track the CSO market to 2015, including predictions across different markets.
  • Identify the capabilities and feature of the leading CSOs.
  • Develop strategies to succeed in the future CSO market.
Key Market Issues
  • Pharmaceutical outsourcing is increasing in the context of rising industry pressures such as the drop in numbers of approvals, negative pricing pressures and expirations of patents.
  • Codes on interaction between sales representatives and physicians have become more stringent placing extra restrictions on hospitality and promotional items.
  • High competition for share of voice and rising access barriers to physicians have created an imperative for pharma companies to find new sales and marketing approaches.
  • Larger medical practices and health system owned practices are most likely to require representatives to make appointments or restrict access entirely.
  • The key account management model places additional demands on CSOs, entailing longer and more strategic relationships with sponsors.
Key findings from this report
  • The pharmaceutical industry will spend around $200bn on product promotion in 2010.
  • The number of sales representatives in the US peaked in 2007, and is expected to decline to 73,000 in 2015.
  • The global CSO market was estimated at $2,712m in 2009, and is expected to exceed $5,600m by 2015.
  • Currently only a handful of CSOs operate in China. Leading operators include NovaMed which has 500 representatives and Invida which aims to increase from 400 to 600 representatives by the end of 2010.
  • While India has a thriving pharmaceutical outsourcing market, sales outsourcing penetration is low, creating a large opportunity as the pharmaceutical market grows.
Key questions answered
  • What are the drivers and resistors of the CSO market?
  • Who are the leading players in the CSO market?
  • What opportunities exist for CSOs in China and India?
  • How is the pharmaceutical sales and marketing environment changing?
  • What strategies are necessary to succeed in the future CSO market?
The Contract Sales Organization (CSO) Market Outlook to
Executive summary
The pharmaceutical sales environment
Evolving pharmaceutical sales strategies
The global contract sales organization market
Leading players in the CSO market
Emerging regions in the global CSO market
The future of contract sales

CHAPTER 1 THE PHARMACEUTICAL SALES ENVIRONMENT

Summary
Introduction
Rising industry pressures
Outsourcing as an industry strategy
Overview of pharmaceutical sales
Sales force sizes
Diminishing returns from larger sales forces
Sales codes of practice evolving
Barriers to physician access are high
Need for new marketing and sales approaches
Conclusion

CHAPTER 2 EVOLVING PHARMACEUTICAL SALES STRATEGIES

Summary
Introduction
Key account management
Takeda UK case study
eDetailing
Live virtual eDetailing
Scripted eDetailing
Website linked eDetails
The benefits of e-Detailing

CHAPTER 3 THE GLOBAL CONTRACT SALES ORGANIZATION MARKET

Summary
Introduction
Sales outsourcing strategies
Advantages of using CSOs
Barriers to using CSOs
Market drivers
Cost pressures drive outsourcing
Imperative not to increase sales headcount
Emerging market growth
Market resistors
Physician access barriers rising
Pharma industry consolidation
Rise of new promotion models
Market size

CHAPTER 4 LEADING PLAYERS IN THE CSO MARKET

Summary
Introduction
Quintiles
Company overview
Business description
Partnering collaborations and recent deals
Case study: Takeda market entry to Spain
Ashfield
Company overview
Business description
Partnering collaborations and deals
inVentiv
Company overview
Business description
Partnering collaborations and deals
PDI
Company overview
Business description
Partnering collaborations and deals
Publicis Selling Solutions
Company overview
Business description
Partnering collaborations and deals
Invida
Company overview
Business description
Partnering collaborations and deals

CHAPTER 5 EMERGING REGIONS IN THE GLOBAL

CSO market
Summary
Introduction
China
The Chinese pharmaceutical market
CSOs in China
India
The Indian pharmaceutical market
CSOs in India

CHAPTER 6 THE FUTURE OF CONTRACT SALES

Summary
Introduction
Towards outsourced key account management
Increasingly specialized sales reps
CSOs will continue to diversify into multi-channel promotion
CSOs will become strategic partners
Emerging markets are the key opportunity for CSOs
Conclusions
Appendix
Methodology statement
Selected bibliography
Index

LIST OF FIGURES

Figure 1.1: Number of FDA approvals 1990-2009
Figure 1.2: US promotional spending ($bn), 1989-2008
Figure 1.3: US pharmaceutical sales force numbers (thousands), 2004-2012e
Figure 1.4: Major pharmaceutical sales force layoffs, 2008
Figure 1.5: Pharma sales rep funnel
Figure 2.6: Stakeholders influencing prescribing decisions
Figure 2.7: Survey of doctor attitudes towards electronic promotion
Figure 2.8: Merck & Co. website linked eDetailing portal
Figure 3.9: Global CSO market ($m), 2009-2015e
Figure 3.10: Relative size and potential of regional CSO markets
Figure 4.11: Quintiles recruitment process for Takeda Spain project
Figure 4.12: UK primary care sales force sizes
Figure 5.13: Quintiles presence in Middle East and Asia via joint ventures
Figure 5.14: NovaMed coverage of China
Figure 4.15: The expected shift in marketing and sales efforts

LIST OF TABLES

Table 3.1: CSO services
Table 3.2: Survey of US medical practices, February 2009
Table 4.3: Invida Asia-Pacific sales forces, 2010
Table 5.4: Tier 1, 2 and 3 Chinese cities, 2008
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