Marketing Models

Ventana® Market Models focus on the customer response to new or existing product or service offerings, often in the context of competing offerings and substitutes. They segment the ways customers choose among competing options, and the customer behavior and use patterns that shape demand over time. They are used to make design, price, packaging, marketing and advertising decisions, as well as to understand likely future performance and its causes.

Sales Growth of Generic Drugs

On advantage of Ventana modeling is a better understanding of the root causes of market dynamics. This allows the models to make contingent predictions of unprecedented or unusual market behavior despite using seemingly ordinary assumptions about future market evolution. One example of this was the predication that the generic form (lovastatin) of a mediocre branded

Feedback in Epidemiology for Market Sizing

When the behavior of a pool of customers for a new product is strongly influenced by feedback phenomena, small, almost unobservable changes can signal profound differences in the size of a potential market.  One situation in which feedback (chicken-and-egg) phenomena are common is the evolution of an infectious disease.  In early 1995 data showed that

Calculating Liability Reserves for Loyalty Programs

The finance department of a large hotel chain was concerned that it was understating the size of the financial liability incurred when it awarded “frequent guest” points that guests could redeem in the future for free room nights. The sales department found its loyalty program very effective in improving business hotel occupancy and revenue, and

New Product Decision Process

For a research pharmaceutical company, Ventana designed and built a decision-support model to help manage the development of a new drug. When the modeling was started, over $120 million was committed to the development of a new drug to better treat a fatal infectious disease. The drug had been under development for two years, and

Software Licensing Policy

For a major computer company, Ventana developed a model to evaluate software licensing policies. The specific project objectives were to predict the financial results and side effects of alternative licensing policies, provide policy insights, optimize strategies, quantify risk and identify the best ways to reduce it. Through the use of policy simulation, Ventana discovered a

Marketing New Pharmaceutical Products

Starting in 1997 and continuing over more than a decade, Ventana built a number of different models for one of the world’s best known pharmaceuticals companies. These models were designed to make contingent predictions of drug sales using inputs such as the attributes of products and the mix of promotion alternatives available. Several of the

Computer Peripherals

For a worldwide supplier of computer peripherals, Ventana predicted the effects of alternative price-package options on costs and sales. Starting with a detailed understanding of dozens of ways consumers use the products, the model was used to find the optimal product design and pricing, to meet market share and profitability targets.