Hi,
Let me break it down the case, so that I can have a better understanding:
Problem statement: Pharma company is aiming to increase revenue (in other words - to find growth in their revenue stream)
Key issues: No data about demand-side (e.g. market share, customer, etc)
Based on my experience, it would be very rare to do the REVENUE GROWTH case with having minimum data on the demand-aspect. It is definitely possible, but the answers will be just too theoretical.
I like the way you approach it using Ansoff Matrix, although one might argue using the matrix will also require a piece of better information on the demand-side to determine the right use. For instance, for market development, we should have proper knowledge of the market size/share/potential on the new market(s) to recommend the most suitable way to enter (either JV, M&A, subs, strategic partnership, online distribution, local partner, etc).
Nevertheless, if I were asked that kind of case, I would use this approach to get a suitable recommendation in getting growth thru internal capabilities (with no demand data) :
Approach to focus on
Production limit from the value chain
This is essential to understand if we should solve the volume or pricing aspect in the revenue. if there is any production limit then you know we need to look at that in more granular. Ask questions such as (not limited to):
- Do we know if our current suppliers are able to increase their production capacity?
- Is there any logistic problem if we increase our purchases?
- Do we have enough warehouse to store the new increased inventories?
- How many people do we need to hire every x% increase in purchasing/inventory?
Distribution channel effectiveness
Okay, now you got a better understanding of what is going to happen if we increase our volume of inventory. Now, we need to know how to sell and distribute the product more effectively.
Ideally, it will be very helpful if data that shows the current and future customer distribution based on each channel is present. Let's just say it's not there, then what we can ask for is the following questions:
- Do we have the %proportion data of each distribution channel (historically - last 1 or 2 years) and the trend?
- What are the top 3 channels that the company is currently focusing on? why?
- What is the most expensive channel to maintain? and why?
- What is the cheapest channel to maintain? and what's the %?
- Which channel does have the best conversion ratio (USD 1 generating X customers)?
Product Innovation or Development
You are able to increase the volume, you know where to sell the most - now, how to sell it? how do you package it? So that your current or new segments will buy that once it hits the market.
But, you have to ask these questions first:
- Does the company have a budget to do product development? and what are the top priorities to be implemented from the budget?
- What are the top 3 key issues/complaints from the customers on the current product?
- What are the top 3 key USPs of the current product?
- Is there any key technology/R&D focus from the company to improve the current product?
- What are the top 3 market needs that we haven't been able to deliver? and why?
I think from those 3 factors alone, you would be able to conclude if the company is able to get the growth based on their internal/supply capabilities. And, yes the questions do not require any data nor number on demand-side.
Yet again, the framework should be expanded or even follow the Ansoff matrix if we have a better understanding on the demand-side.
Happy to explain further, should you have any questions. Thanks!
