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Multiple stakeholder engagement - Encounters of a different kind Emerging Markets Commercial Excellence 2011,Berlin Satya MAHESH, India
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If that was not enough, more proof… Awareness 35 … 50… 70… Billion $ by 2020 Usage Use of fruits in daily life by Pharma execs (Apples and Blackberries!!) Incremental Number of visitors from Global HQ
Next 40 Minutes… India : First things first The Demigods : Doctors Key accounts...true potential Beyond traditional territories Supply chain snapshot
Vast : Country Diverse : Demographics Varied : Requirements Challenging : Market Life Lifestyle IIM Prof. SubhashMehta in his book "Indian Consumer"
Contradictions galore! 9th Rank GDP(nominal) 124th Rank PPP*.Pc.GDP 4.5% of Global Billionaires 400 Mio earn < $1 day 11% of Global Gold One thirds World’s poor High Quality medicines Low cost medicines 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 ~5,50,000pharmacy retail stores across ~1,00,000 pharma field force ~90,000 formulations ~65,000 distributors ~60,000Rx-brands ~23,000Orgs. ~78%OPE* ~ € 9.5 Billion Pharma Market *OPE: Out of Pocket Expenses
Indian Patent Act Bottom of the Pyramid Generic Storm Volumes over Values MNC to Indian Indian to MNC
Process Patent (1972) to Product Patent: 2005 FDI 100% in Pharma Sector to continue National list of Essential Medicines(348), 2011 National pharmaceuticals pricing policy, 2011 Government policies… Code of Marketing Practice for Indian Pharma,2011 No DTC in India : Family planning , health awareness
The playing field 30% of Population 60 % of Pharma 70% of Population 40 % of Pharma
Strategic imperatives…. MNC Indian Value Volume Class Mass Global Local Urban Rural
Vaidyo( Doctor ) NarayanoHari* ( The God ) The Demigods Brahmanical Restraint: Knowledge above money Offer Value – else it’s a sales call WIIFM? *WIIFM - What Is In It For Me? * In the right context and quote it means “ The God is the only Doctor”. However ,this is colloquial
Specialty : Competition intensity Rx ethos are influenced by Place of Practice Patient profiles Academic institutions and KOLs
Win the hearts, right and the left brain What worked… Right, left Brain and “the leg work” Specialist “Legwork” and then the Brain Consultant Generalist
Traditional representation still works ! What may work.. Frequency is understood as importance yet, face the question “What’s new?” SFE SFE Patients first .. you are still not a partner Training Training Marketing
Insights on the Indian version of Key Account Management: Discover the real potential in hospital and institutional business
Key accounts dynamics Partnership Quasi Govt. Corporate Quantum Per Account Price Government Private Profit Illustrative
Match opportunity with capability It’s right price and big Margins India KAM Version 1.0 Co-Creation of value Define KAs Local Partner
World class facilities : Class n mass dilemma Package deals for patient : Cut corners Corporate Hospitals Pharmacy is a profit center Corporates are going rural
~70%of India 40% of Pharma Lives here !
Rapid urbanization : awareness Rise in disposable incomes Drivers of growth Government sops Increased accessibility
Key stakeholder’s influence Urban Rural Urban Rural Urban Rural * Graphs are notional
40% Pharma has 4 key challenges! Knowledge gap Affordable Educate Go Local Doctor Drugs Patient Awareness Partner Disease Diagnostics Availability Prevalence
Shared FTEs: Reach to Doctors Shared CMEs , Digital media Profitable reach through partnerships Distribution : Rural penetration Local sourcing, pricing, discounting
Yet, face the perpetual question… • Is the brand Available ? Pharmacy Will the Doctor Prescribe?
Metro and Tier I Tier I and II Tier II to Rural Hospital Distribution is as busy and confusing as this slide Yet, ~ 50% of people can not access(not affordability) C&F Agent Stockiest Wholesaler
Costs around 4-6% of Total sales Vs. 2% in US and EU Respecting norms & relationship with associations Build network over a period of time : Cipla ,Mankind Supply chain Ideal admixture of Brands, Generics and OTC Innovations required to maintain cold chain
Individual and Image credits • My Wife,Syamala and • My collegues M/S Amlesh Ranjan , Venkatesan Subramanian • 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: SingamVenkataramana • 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
ThanQ ksatyamahesh@gmail.com Mahesh.Satya@Sanofi.com +91 9819 62 01 62
Emerging Markets commercial excellence ConferenceVenue: Hotel Bristol Kempinski , Berlin
Len StarnesDigital healthcare consultant, • @lenstarnesLen Starnes • 'Encounters of a different kind' Mahesh Satya, Sanofi Aventis, talking about pharmamkting challenges in India #emce2011 • 'Anything you say about india is true' Mahesh Satya#emce2011#india • 688,000 doctors in India, 90% GPs#emce2011#indiaRetweetedby AnnBartlett • Indian gov trying to align what is ethical with what is legal in pharma#emce2011#indiaRetweetedby 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