Sales Potential

The sales department indicates that the sales potential for products 1 and 2 exceeds the maximum production rate and that the sales potential for product 3 is 20 batches per week. The profit per batch would be 20, 6, and 8, respectively, on products 1, 2, and 3. 

It is important to understand the quantitative theory of rNPV, because it provides insight into the elements that contribute to a positive investment decision. In the case of biotech, two components of a technology strategy usually overshadow all other variables, the sales potential and the risk of failure. 

Actual, respectively potential size of the business. If there is only a small sales potential in a given country, let s say in Taiwan, an agent is the distribution channel of choice. The minimum sales proceeds that are needed to justify a local representative is about 5 million per year. 

Depending on the business model(s) chosen, companies need to define their specific innovation headroom . This includes answering questions such as how important are innovations in the segment What do strategic customers need Should companies go for innovation in technology, service offerings, or in the value chain What does that imply for R D capacities and skills How can R D best collaborate with marketing and sales, (potential) customers, and external research institutes What level of external versus internal R D is required ... 

Design data and other process information are obtained during the development stage. This information is used as the basis for carrying out the additional phases of the design project. A complete market analysis is made, and samples of the final product are sent to prospective customers to determine if the product is satisfactory and if there is a reasonable sales potential. Capital-cost estimates for the proposed plant are made. Probable returns on the required investment are determined, and a complete cost-and-profit analysis of the process is developed. 

The list of indications will be the same for all clinical candidates considered to interfere with TNF and its actions. The primary indication (i.e., the therapeutic area with the biggest market and greatest sales potential as well as suffering where the TNF response is excessive) is rheumatoid arthritis (RA). The secondary indication is inflammation, the tertiary psoriasis and sepsis, and it is also involved in muscle wasting and implicated in cancer. 

Performance measure pitfalls. What gets measured reflects system values. If clinical groups are measured on the ability to meet targetfiling dates, then peak sales potential will be ignored. Relevant clinical indicators of performance may not be known, neither is it the best combination of data. 

Driven by sales potential, each development campaign therefore concentrates on a single outstanding compound. Its biological activities and patented chemical structure define an unmistakable objective. The certainty associated with the fixed structure and specified activities lends to development work an appeal absent from discovery research. From outset of their project, chemical developers have clear goals important to their employers. Discovery research, by contrast, is more uncertain. Its scientists labor to identify their best compound until shortly before it enters clinical trials. 

Frequently, customers do not want a complete job. They prefer to adapt our work to their own peculiar conditions. The smaller companies, of course, representing the smaller sales potential, more frequently want a complete research job, for most of them have no research facilities of their own. 

Applications research cannot be measured by factors involving immediate return on the investment. This type of service is aimed at broad industrial fields, rather than specific customers and as such must be exploited over a longer period of time. Through applications research uses and applications must be found for old line, modified, and new products. This group must determine the needs of industry and try to meet those needs with old or new products. If a completely new chemical is needed to satisfy a requirement, the project is turned over to the research department. In this way, applications research functions as a guide to the research activities. Conversely, new products generated by basic research must be turned over to applications research to develop uses, markets, and sales potential. Just as technical service is the... 

How do we go about educating an industry where our material has considerable sales potential To assure the success of the industry approach it is essential to develop industry experts who, with the passage of time, become completely familiar with the make-up, operations, and problems of their assigned industry and particularly with the key personnel therein. Once these experts have gained the technical and economic background and the close... 

By function and/or end-use product Major accounts Location of material selectors Sales potential... 

The first part of the industry study defines the structure, calling points, sales potential, development goal forecast, development manpower requirement, and total budget. 

Biolitec pharma ltd (2002). Biolitec expects approx. EUR 100 million sales potential of approved cancer drug. Press Release, 30 September. 

In the past 5 years, at least six or seven products a year, each with peak sales potential of more than 1 billion annually, were terminated in late-stage phase III development or at the new drug application (NDA) filing stage, resulted in market value loss of tens of billion dollars for the affected companies. All big pharma companies like Merck, Lilly, BMS, GSK, and Novartis had their share of phase III failures, regulatory delays, NDA rejections, and requests for additional data [16, 17]. During the past 5 years, 15 drugs with peak sales potentials of a combined 11 billion a year were withdrawn from the market for safety reasons, some of which... 

Commercialization is a major issue for our industry. We re going to be developing a lot of new products, which is very good news. The bad news is that we estimate it costs about 200 million USD to bring a new product to market The time frame is ten to 12 years. So, there is a lot of investment to be made up front to bring in new products. At DuPont, we decided that unless a product had 150 million USD sales potential, we would not pursue it. 

Since diflumetorim was developed for use in ornamentals seemingly confined to the Japanese market only and not as a cereal fungicide (an unfavorable price/ activity ratio may be a major reason), sales potential will remain limited. 

Approval Mark on product is visible to customers for increased marketing and sales potential. 

Premarket testing Procedure that uses syndicated data and primary consumer research to estimate the sales potential of new product initiatives. 

Consider a production planning problem with N products such that the th product requires a fixed production or set-up cost Kj, independent of the amount produced, and a variable cost Cy per unit, proportional to the quantity produced. Assume that every unit of product requires imits of resource i and there are M resources. Given that the product , whose sales potential is dj, sells for p per unit and no more than units of resource i are available i = 1,2,..., M), the problem is to determine the optimal product mix that maximizes the net profit. 

After a few months operating experience, TLC came to believe there were several additional attractive markets — beyond designers and their customers with good sales potential ... 

We describe a methodology for resolving the key decisions in designing a merchandise test how many and which specific stores in which to conduct the test and how to create a season forecast for the entire chain based on test store sales. We assume the retailer has (1) identified a set of products within a classification that they would like to test, (2) specified the time interval within which the products will be sold (the sales season), and (3) determined a test period during which the products will be offered for sale in selected stores to test their sales potential. 

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