Perceptions of Brand in the Life Science Market

Like most consumers, scientists want the products they buy for their labs to perform consistently, deliver reliable results and offer the best possible value for money. And, like most consumers, they tend to downplay the importance of brand in their purchasing decisions. But a new survey shows that the importance of brand changes based on the presence of other considerations related to product performance and the suppliers reputation.

ARLINGTON, VA -- January 8, 2003 -- Like most consumers, scientists want the products they buy for their labs to perform consistently, deliver reliable results and offer the best possible value for money. And, like most consumers, they tend to downplay the importance of brand in their purchasing decisions. But a new survey shows that the importance of brand changes based on the presence of other considerations related to product performance and the suppliers reputation.

BioInformatics, LLC (Arlington, VA), a leading provider of market research to the biotechnology industry, recently published these results in its report, Brand Awareness in the Life Science Market." Based on the responses of almost 2,200 life scientists to a detailed questionnaire, this unique report will help life science suppliers understand the role that brand perceptions play in a scientists decision to choose one supplier over another and benchmark top companies market position in ten separate market segments.

With fierce competition, industry consolidation and rapid technological changes, establishing and maintaining a strong brand identity in the life science marketplace is more critical than ever," says Bill Kelly, President of BioInformatics. By analyzing scientists expectations of product and supplier performance and correlating them with levels of importance, satisfaction and experiences with specific suppliers, this report is helping our clients understand where they currently stand and enabling them to refine their positioning strategy and develop more effective marketing communications."

For each of the ten segments analyzed, the scientific respondents rated the importance of eighteen product and supplier attributes in their purchase decision. They also answered questions regarding their area of research, the frequency with which they use certain laboratory products, their primary suppliers and overall levels of satisfaction.

Factor analysis was then used to sort through the enormous volume of data and identify the combination of product and supplier attributes that matter most to scientists in each segment. The 300-page report presents the findings in charts and quadrant maps" that clearly show the relative importance of each variable, how they vary by segment and how well they believe suppliers are currently meeting their needs. The leading suppliers in each segment are also analyzed with regard to product qualities, supplier attributes, levels of satisfaction and perceived personality traits, and compared to benchmark what combination of attributes and customer perceptions contribute to their success.

Out of hundreds of companies to choose from, the scientists surveyed showed a clear preference for a select few when asked to name their primary supplier for individual product categories. This elite group included Amersham Biosciences (NYSE:AHM), Applied Biosystems (NYSE:ABI), BD Biosciences Clontech (NYSE:BDX), Bio-Rad (AMEX:BIO), Invitrogen (NASDAQ 100:IVGN), Pierce Biotechnology (OMX:PBIO), Promega, Qiagen (NASDAQ:QGENF), Sigma-Aldrich (NASDAQ 100:SIAL) and Waters (NYSE:WAT). Other companies with strong showings in certain segments included BioWhittaker, Kodak Scientific, Molecular Probes, New England Biolabs, PerkinElmer Life Sciences, Roche Applied Science and Zeiss.

The results of this survey clearly show that only a relatively small number of suppliers have succeeded in planting themselves firmly in the consciousness of the life science market place. These companies dont just make great products-they have invested in all of the activities that go into building great brands that help grow and sustain market share. However, even those companies that received few selections as a 'primary supplier can benefit from this report because it points out the factors that drive brand value from the perspective of scientific customers. Managers can then use these insights to determine if they are focusing their efforts on the right factors in each segment," says Kelly.

For example, the data demonstrates that across most of the segments examined, scientists place great value on easy ordering procedures" and a helpful print/online catalog" and feel that their suppliers are meeting their needs in these areas. However, in the market for cell biology kits and reagents, excellent technical references/protocols", on-time delivery" and product availability" are supplier qualities considered critical by scientists but which are not being met by industry.

This report goes far beyond 'top-box answers and brings to bear advanced statistical techniques to go deeper into the data than ever before. In this way, we can analyze the complex interrelationships between the many factors that drive a scientists purchase decision. Senior managers can use this report to quickly help shape marketing communications and guide product development. Short-term actions might include changing advertising themes or revising special price discounts, while over the longer term, R&D might choose to incorporate product features specifically designed to enhance brand perceptions," says Kelly.

For a complimentary Executive Summary of this report, 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 14,000 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 1200
Arlington, VA 22201
703.525.3872 x358 (phone)
703.522.3685 (fax)
a.martin@gene2drug.com
http://www.gene2drug.com/

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