Winning Share in the Market for Protein and DNA Purification Kits

The market for protein and DNA purification kits is maturing, and the pace of technological innovation has slowed, but dozens of companies continue to fight for market share. BioInformatics, LLC (Arlington, VA), a leading provider of market research to the biotechnology industry, recently announced the publication of two reports that explore the dynamics of the purification market: Protein Purification Systems: Market Opportunities for Research Product Suppliers" and The DNA Purification Market: Keys to Success for Commercial Kit Suppliers" (http://www.gene2drug.com/reports). Each report is designed to help suppliers develop satisfied, loyal scientific customers in a market where switching costs have been shown to be low.

ARLINGTON, VA (PRWEB)October 24, 2003 -- The market for protein and DNA purification kits is maturing, and the pace of technological innovation has slowed, but dozens of companies continue to fight for market share.

BioInformatics, LLC (Arlington, VA), a leading provider of market research to the biotechnology industry, recently announced the publication of two reports that explore the dynamics of the purification market: Protein Purification Systems: Market Opportunities for Research Product Suppliers" and The DNA Purification Market: Keys to Success for Commercial Kit Suppliers" (http://www.gene2drug.com/reports). Each report is designed to help suppliers develop satisfied, loyal scientific customers in a market where switching costs have been shown to be low.

The first report-based on a survey of over 580 researchers who purify proteins-examines the protein purification segment in terms of its value chain: cell lysis, vectors, resins/columns and primary antibodies. Companies with complete protein purification systems reap the rewards of unified technologies in their ability to maintain their customer base throughout all areas of the value chain. This is best exemplified by companies such as Qiagen (Nasdaq:QGENF) that implement an 'integrated solutions approach to their product portfolio," notes Dr. Robin Rothrock, Director of Market Research at BioInformatics, LLC.

With offerings in all four product categories, Qiagen supports a loyal following of customers at each phase of the protein purification process. Invitrogen (Nasdaq 100:IVGN) and other leading companies are pursuing a similar strategy of product integration. The report shows how suppliers who fail to offer an end-to-end solution make themselves vulnerable to customer defections.

In the second of the two studies, over 1,000 life scientists were surveyed on their use of DNA purification kits. With almost two-thirds of the market, Qiagen continues to dominate the DNA purification kit market. Qiagens success can be attributed to many factors including their strong focus on the nucleic acid purification market, first-mover advantage and broad product offering. Qiagen cultivates loyalty by satisfying customer needs and then reinforces its position through a ubiquitous presence in labs and stockrooms that stresses convenience and availability.

The report shows that scientists are extremely reluctant to switch suppliers once they begin using a DNA purification kit, with only 6% of respondents having switched to a different kit in the last six months. The scientists participating in the survey also answered a series of questions designed to evaluate the relationship between satisfaction, loyalty and the barriers to switching suppliers. Highly satisfied customers are the norm-a large majority of scientists stated they would happily recommend the kit they currently use to a colleague.

However, the top suppliers have not yet created a situation where customers are locked in"-consequently, opportunities still exist to win new customers. Preferential pricing is often a major barrier to switching, yet we found that most scientists dont feel theyre getting low prices as a result of being a loyal customer," says Rothrock. Most of these highly satisfied customers also believe that its easy to find competing products that offer similar value-another sign that on any given day some segment of a suppliers customer base is at risk."

For complimentary Executive Summaries of both reports, please visit:

http://www.gene2drug.com/reports

ABOUT BIOINFORMATICS, LLC

BioInformatics, LLC is a market research firm located in Arlington, Virginia. BioInformatics supports marketing, sales and R&D executives in the life science, medical device and pharmaceutical industries through published research reports, custom research and consulting. BioInformatics sponsors the worlds largest market research panel of scientific customers-The Science Advisory Board (http://www.scienceboard.net)-which consists of more than 16,500 scientists, physicians and other life science and medical professionals from 62 countries who participate in surveys that address emerging technologies, test customer reactions to new product concepts, measure brand awareness and assess advertising effectiveness.

For more information, please contact:

Alyssa Martin

BioInformatics, LLC

2111 Wilson Blvd., Suite 250

Arlington, VA 22201

703.778.3080 x12 (phone)

703.778.3081 (fax)

a.martin@gene2drug.com

http://www.gene2drug.com/

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