indian pharma - key stakeholders
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Presentation at Eyeforpharma’s Emerging Markets Commercial Excellence,Berlin,November,2011 on Key Stakeholder Management-Indian PharmaTRANSCRIPT
Multiple stakeholder engagement - Encounters of a different kind
Emerging Markets Commercial Excellence 2011,Berlin
Satya MAHESH, India
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Measure of economic activity...
If that was not enough, more proof…
Number of visitors from Global HQ
35 … 50… 70… Billion $ by 2020
Use of fruits in daily life by Pharma execs (Apples and Blackberries!!)
Awareness
Usage
Incremental
Next 40 Minutes…
India : First things first
The Demigods : DoctorsKey accounts...true potentialBeyond traditional territoriesSupply chain snapshot
Challenging : Market
Varied : Requirements
Diverse : Demographics
Vast : Country
IIM Prof. Subhash Mehta in his book "Indian Consumer"
Life Lifestyle
Contradictions galore!
9th Rank GDP(nominal) 124th Rank PPP*.Pc.GDP
High Quality medicines Low cost medicines
4.5% of Global Billionaires 400 Mio earn < $1 day
11% of Global Gold One thirds World’s poor
Pharma :3rd by Volume 14th by Value
*Purchasing Power Parity
~1,210,000,000 plus population of India across 28 states~6,88,000 qualified doctors ~ 90% are GPs in India
~5,50,000 pharmacy retail stores across ~1,00,000 pharma field force
~90,000 formulations~65,000 distributors~60,000 Rx-brands
~23,000 Orgs.~78% OPE*
*OPE: Out of Pocket Expenses
~ € 9.5 BillionPharma Market
Indian Patent ActBottom of the Pyramid
Generic StormVolumes over Values
MNC to IndianIndian to MNC
Government policies…
National list of Essential Medicines(348), 2011
Code of Marketing Practice for Indian Pharma,2011
Process Patent (1972) to Product Patent: 2005
National pharmaceuticals pricing policy, 2011
FDI 100% in Pharma Sector to continue
No DTC in India : Family planning , health awareness
The playing field
Metro
Class I
Tier II & Rural
30% of Population
60 % of Pharma
70% of Population
40 % of Pharma
Strategic imperatives….
Urban
Global
Class
Value
Rural
Local
Mass
Volume
MNC Indian
The Classic divide
MNC IndianCustomers ~ Specialty Oriented ~ CP, GP, SpecialtyGame Concept selling
ValueBrand Selling Volume and Value
Brands Mostly Research Molecules in focused Therapy Areas
Branded GenericsBrands across majorTherapy areas
Portfolio Small Extended PortfolioPrice and Margins
High and Low Low and High
Policies Global or Glocal Made In India
The Demigods
Vaidyo ( Doctor ) Narayano Hari* ( The God )
Offer Value – else it’s a sales call
* In the right context and quote it means “ The God is the only Doctor”. However ,this is colloquial
WIIFM?
*WIIFM - What Is In It For Me?
Brahmanical Restraint: Knowledge above money
Rx ethos are influenced by
Specialty : Competition intensity
Patient profiles
Place of Practice
Academic institutions and KOLs
What worked…
“Legwork” and then the Brain
Win the hearts, right and the left brainSpecialist
Consultant
Generalist
Right, left Brain and “the leg work”
What may work..
Traditional representation still works !
Patients first .. you are still not a partner
SFE
Marketing
Training
SFE
TrainingFrequency is understood as importanceyet, face the question “What’s new?”
Insights on the Indian version of Key Account Management: Discover the real potential in hospital and institutional business
Quasi Govt.
Government
Corporate
Private
Price
Profit
Partnership
Quantum Per
Account
Key accounts dynamics
Illustrative
India KAM Version 1.0
Match opportunity with capability
Co-Creation of valuePartner
Define KAs
It’s right price and big MarginsLocal
Corporate Hospitals
Package deals for patient : Cut corners
World class facilities : Class n mass dilemma
Pharmacy is a profit center
Corporates are going rural
~70% of India
40% of Pharma
Lives here !
Increased accessibility
Rise in disposable incomes
Drivers of growth
Rapid urbanization : awareness
Government sops
Urban
Rural
Urban
Rural
Urban
Rural
Key stakeholder’s influence
* Graphs are notional
Availability
Knowledge gap
Doctor Drugs
DiagnosticsDisease
Prevalence
Affordable
40% Pharma has 4 key challenges!
Patient
Educate Go Local
Awareness Partner
Profitable reach through partnerships
Shared FTEs: Reach to Doctors
Shared CMEs , Digital media
Distribution : Rural penetration
Local sourcing, pricing, discounting
Yet, face the perpetual question…
Pharmacy
Is the brand Available ?
Will the Doctor Prescribe?
Tier II to RuralTier I and IIMetro and Tier I
C&F Agent
Hospital
Stockiest
Wholesaler
Distribution is as busy and confusing as this slideYet, ~ 50% of people can not access(not affordability)
Supply chain
Respecting norms & relationship with associations
Ideal admixture of Brands, Generics and OTC
Costs around 4-6% of Total sales Vs. 2% in US and EU
Build network over a period of time : Cipla ,Mankind
Innovations required to maintain cold chain
!ndia
Individual and Image credits
Slide 2 : Earth at Night by NASA : Page Last Updated: April 2, 2009,Page Editor: Jim Wilson,NASA Official: Brian Dunbar
Slide 4: Mc Kinsey ,PWC Reports Slide 8 : Time Cover Photo by Arthur Hochstein. Woman by hill street studios-getty images
blend collection Slide 10 : Cover images from Alvyn Toffler’s books Published by Random House Slide 12 : Photo on Top: USA today Article : Indian doctor Praveen Chandra checks on
American patient Greg Goodell after his successful heart operation at New Delhi hospital. Photo on right :The Hindu Article Photo: Singam Venkataramana
Slide 17: Image: photostock / FreeDigitalPhotos.net Slide 24 : Publisher: Pearson Prentice Hall Icons : Iconarchive.com Slide 5,6,9,13,16,:25,28 : Unknown Photographers
My Wife, Syamala and My collegues M/S Amlesh Ranjan , Venkatesan Subramanian
Emerging Markets commercial excellence ConferenceVenue: Hotel Bristol Kempinski , Berlin
CDM Emerging Markets on Twitter@CDMinEM New York, NY
Len StarnesDigital healthcare consultant,
• @lenstarnesLen Starnes• 'Encounters of a different kind' Mahesh Satya, Sanofi Aventis, talking about
pharma mkting challenges in India #emce2011 • 'Anything you say about india is true' Mahesh Satya #emce2011 #india• 688,000 doctors in India, 90% GPs#emce2011 #india Retweeted by AnnBartlett• Indian gov trying to align what is ethical with what is legal in pharma#emce2011 #
india Retweeted by DocGlobal• 30% Indian pop live in cities but account for 60% of pharma business #emce2011 #
india• In India there are ' Visa Gods' ...Mahesh Satya #emce2011 #India• In india if pharma sales rep cannot offer knowledge to doc, he/she will ask: what's
in it for me #emce2011 #India• Partnerships are key to success for MNC pharmas in India #emce2011 #India
End of Presentation