Marketing Spend Optimization For Pharmaceutical Enterprise


Client is a US based global, research-driven bio-pharmaceutical company committed to developing innovative advanced therapies for some of the world’s most complex and critical conditions.

Problem Context:

Physicians or Health Care Professionals (HCPs) are the most significant element in pharmaceutical sales as their prescriptions determine which drugs will be used by patients. Therefore, the key to pharmaceutical sales for any pharmaceutical company is influencing the physician. The in-house FOS team is an expensive and long-term of the options that pharmaceutical giants use to market their product.

Therefore, maximising sales rep efficiency requires more insights such as the optimum calls that should be made to a physician to achieve maximum profit. Our client is catering to three therapeutic areas: Dermatology, Gastroenterology, and Rheumatology. The company’s sales reps were involved in the following types of marketing tactics: Closed Loop Marketing (CLM), Non Closed Loop Marketing (Non-CLM), Internet Live Seminar and Lunch & Learn.

Business Need:

The key business objective which client wanted to meet with our solution was:

  • What is the optimum spending that a company should make into its marketing activities?

Data has monthly prescriptions from 2016 to 2018 and also, it has number of calls made for three specialities: Dermatology, Gastroenterology and Rheumatology. The calls are made from 2 categories: CLM and Non-CLM

Marketing Spend Optimization

Solution Approach

Advanced analytics such as multivariate regression was performed on sales and marketing tactics to estimate and forecast the impact on sales. Using Monte Carlo simulation, response curves were built to define the contribution of the investment to the sales i.e. the Return on Investment. The figure below was one such output for a specific sales tactic.

Marketing Spend Optimization

NPV (Net Present Value) curve for a sales tactic to find the optimum marketing spend to generate maximum sales

It shows that currently a marketing spend of 1.85 Million Euros is not resulting into optimum sales. The ROI will be max when an investment of ~0.30 Million Euros is made in this sales tactic.


Optimized marketing efforts and measured increment in the revenue and profit.

I agree to have my personal information transfered to MailChimp ( more information )
Join over 3.000 like minded AI enthusiasts who are receiving our weekly newsletters talking about the latest development in AI, Machine Learning and other Automation Technologies
We hate spam. Your email address will not be sold or shared with anyone else.