The Strategic Importance of the Reverse Transcriptase Market
If the increased use of gene expression technology for a broader set of applications is any indication, reverse transcriptase (RT) ranks with taq polymerase and restriction enzymes as one of the most essential enzymes in a life scientist's toolkit. From a product strategy perspective, reverse transcriptase is all the more critical because it serves as an entry point into a supplier's profitable kits and reagents (as well as instrumentation) for the RT-PCR and real-time PCR markets. Dominance in such an important market foothold can secure a key competitive advantage for a supplier. However worthwhile, attaining and maintaining such a position in the reverse transcriptase market is difficult due to the presence of several key players. An effective competitive strategy requires a thorough and nuanced understanding of market dynamics that this report is designed to provide. Customer Behavior, Brand Warfare, Pricing Strategy and Market Growth Potential
Based on a survey of 500 life scientists in the U.S. market for reverse transcriptase, Securing A Competitive Advantage in the Reverse Transcriptase Market by BioInformatics LLC provides insight into customer behavior, brand warfare, pricing strategy, and market growth potential in this complex and important market. Using sophisticated statistical analysis, including Van Westendorp Price Sensitivity analysis and Brand Asset Valuator (BAV) Methodology, the study provides a bottom-up analysis of the market, resulting in a set of basic strategic leverage points that any competitor can use to take share from current leaders in the reverse transcriptase market. Customer Behavior:
Opportunities to differentiate on the basis of product attributes and brand exist, but remain relatively unexploited. According to this study, most respondents have been using their primary brand of reverse transcriptase for 4.2 years and only 7% have changed their primary brand of reverse transcriptase in the past 12 months. And yet, paradoxically, 68% of respondents would consider changing to another brand. Although 42% of respondents consider one particular supplier to be their primary source of reverse transcriptase, this report highlights vulnerabilities and customer-cited reasons for brand switching. It also unravels this paradox in customer behavior, giving niche players opportunities to win market share from more entrenched players. Brand Warfare and Segmentation:
Given the challenge of establishing differentiation in this market, corporate brand seems highly important, but customer satisfaction and pricing remain critical to competitive strategy. The customer segmentation in this report also indicates variances in brand preferences by reverse transcriptase usage and technique-allowing marketers to target and define customers in the key niches of this market. Pricing Strategy:
It is extremely telling when 74% of respondents say they would not increase the number of reverse transcriptase reactions even if the enzyme's price were 20% lower. Suppliers face multiple challenges when setting actual prices. Acceptable prices vary by customer type, channel, and other kinds of segmentation. Changes in the market due to competition and technological enhancements of the enzyme make it critical to continually assess customers' price response to a particular product. Furthermore, suppliers pursuing a particular pricing strategy will need to adjust based on their objective (i.e. pricing to maximize market share, pricing to maximize revenues, or pricing to maximize profits). The analysis presented in this report serves as a guide for suppliers interested in evaluating the appropriateness of their current pricing strategy. Market Growth Potential:
Not all segments of the reverse transcriptase market are poised to grow at high rates. Projections that do not consider the diverse set of customer types, techniques, throughput, and brand perceptions are of limited usefulness. Therefore, this report breaks out market growth potential in the next 12 months by specific market segments as reported by reverse transcriptase customers. This allows marketers to plan the right investment of their time and resources in combination with the right pricing and brand strategy to secure a competitive advantage in this critical market. |
