The Rx factor


Published on

The Book has received the Pharmacy Council of India Endorsement by the President. It gives a creative landscape for Pharmaceutical marketing filled with innovative and practical marketing strategies for all pharmacy students and marketing professionals.

For the first three years since its publication, The Rx Factor stayed among the top three titles, from among 665 books on Healthcare marketing and advertising worldwide. It has also been judged as one of the most reviewed Pharma-marketing books, has figured among the best books in its genre and even been recommended by Kip Piper- perhaps the best known Healthcare strategists in the world, who has even served as Advisor to the US Presidential committees on healthcare.

Published in: Education
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

The Rx factor

  1. 1. The FactorStrategic Creativity inPharmaceutical MarketingPAVAN CHOUDARYW V P DWisdom Village (Publication Division)Knowledge is information. Wisdom is transformation.
  2. 2. AWVPD PRESENTATIONBooks from Wisdom Village (Publications Division) envision to enhance andenrich their readers with life changing experiences from the business, mind, bodyandsoul genres.Theystrivetowardsholisticdevelopment.Editorial&Production CharushillaNarulaCopyright©PavanChoudary,2009All rights reserved. No part of this book may be reproduced or utilized in any formor by any means, electronic or mechanical, including photocopying, recording or byany information storage or retrieval system, without permission in writing from thepublisher.ISBN 978-81-906555-8-3This 2ndEditionof The FactorisPublishedby:WVPD is a part of Wisdom Village164, Aravali Apartments, Alaknanda, New Delhi – 110019To,wvpdindia@gmail.comOr Call:+91 9811514287, 9810800469FirstPublishedin1997byResponse Books (Adivisionof SagePublicationsIndiaPvtLtd)M-32, GreaterKailashMarket-1,New Delhi110 048.LibraryofCongress Cataloging-in-PublicationDataChoudary, Pavan1965-The factor:StrategicCreativityinPharmaceuticalMarketing/PavanChoudary.Includesbibliographicalreferencesandindex.1.Pharmaceuticalindustry—India.2.Drugs—India—marketing.3.Pharmaceuticalpolicy—India.I.Title.HD9672.I52C48 615.1 0688—DC21 1997 97-18645ISBN: 0-8039-9378-1 (US-HB) 81-7036-626-7 (India-HB)0-8039-9379-X (US-PB) 81-7036-627-5 (India-PB)W V P DWisdom Village (Publication Division)Knowledge is information. Wisdom is transformation.
  3. 3. Pavan ChoudaryBrief IntroductionPavan Choudary is the author of path breaking books like Broom & Groom (co-author Kiran Bedi), A Trilogy of Wisdom, Machiavelli for Moral People and The RxFactor. Pavan is also the Managing Director of Vygon, a leading FrenchMultinational, hosts the TV program Hum Aise Kyun Hain on Doordarshan,and has written columns for The Times of India and Financial Chronicle. Today,Pavan is considered one of the most original Indian socio-political thinkers andmanagement strategists. To know more visit www.pavanchoudary.inYou may reach the author at
  4. 4. Other Books by Pavan Choudary1. How a Good Person can Really Win2. A Trilogy of Wisdoma. Chanakya’s Political Wisdomb. Confucius’ Social Wisdomc. Kabir’s Spiritual Wisdom3. When you are Sinking Become a Submarine4. Machiavelli for Moral People5. Broom & Groom (on Hygiene and Manners) co-authoredwith Kiran Bedi6. Uprising 2011- Indians Against Corruption co-authoredwith Kiran Bedi
  5. 5. Comments on“I strongly recommend this book for all pharmacy students andmarketing professionals…it gives a creative landscape forPharmaceutical marketing filled with innovative and practical marketingstrategies…ausefultoolfor thesalesforceinthepharmaceuticalindustry.”Dr. B. Suresh, President, Pharmacy Council of India“Written in a racy, un-put-downable style (which one rarely comes acrossin a book emanating from India), one reaches the end only asking for moreand wishing that the author had included some more marketing examplesand cases to reinforce many of his imaginative ideas. A book not to bemissed.”Express Pharma Pulse (Indian Express Group)“Such examples abound and that is what makes the book refreshing andinteresting.”The Business Standard“He offers marketing wisdom distilled from studying communicationstrategies behind brand successes and flops.The case study format makes itlively.”Advertising & Marketing (A & M)"Brilliant, bright, blasphemous ....Blows much of what we have held to besacrosanct—USP, marketing warfare, positioning—to smithreens…Theauthor has captured the essence of successful marketing in this readabletext,focusingon thepharmaceuticalindustry.”Elsa Davies (Fellow, Institute of Management, UK)The Factor
  6. 6. Praise for the Author and his BooksThe Rx FactorKip Piper, Senior health Advisor to the White House Office, USA, has included The RxFactor in his list of Top 10 books on Pharmaceutical Marketing. To view the list you mayvisit at a Good Person can Really WinThis book is for real people in the real world with insights, practical wisdom and a freshperspective for everyone…the alternative of course, is to read up hundreds of books over tensof years!- Carolyn Marcille (Barnes & Noble, NewYork, USA)Pavan Choudarys passion for dwelling deep into the questions one feels remain unanswered,has ensured him a place amongst the foremost thinkers of the world.- The Times of IndiaAn invaluable, timeless treasure. Pavan is a megamind taking Indian thinking to refreshingnew heights in the global arena. His works should be made compulsory reading for leaders,teachers and parents.- Dr. Kiran BediA Trilogy of Wisdom (on Chanakya, Confucius and Kabir)Each book in this collection of mini books has great depth…there is great insight on politicalsharpness, social gain and spiritual intelligence - to aid the ambitious soul.- Hindustan TimesThis book has been able to capture the spirit of Confucianism. It is most appropriate that itdwells on the social aspect of Confucianism. It talks of Social Harmony, which is key toConfucius.- Mr. Xei Fei (Cultural Head, Chinese Embassy)
  7. 7. Broom & Groom co-author Kiran BediBroom & Groom by proud Indians Kiran Bedi and Pavan Choudary is a collector’s item. Amust on every book shelf.- Deccan ChronicleIndians and civic sense don’t often go together. That may change if our worthy countrymentake broom & groom to heart.-The TelegraphIt addresses separate categories- students, government officials, and so on and theillustrations help make it a useful handbook for people who badly need it.-The Times of IndiaMachiavelli for Moral PeopleWant to read a politician like a book…read Machiavelli for Moral People.– The Tribune
  8. 8. PHARMACY COUNCIL OF INDIA(Constituted under the Pharmacy Act. 1948)Prof. B. Suresh, M.Pharm., Ph.D., D.Sc.,PresidentCombined Councils’ BuildingKotla Road, Aiwan-E-Ghalib MargP.B. No. 7020, New Delhi-110 002Gram : FARMCOUNCILTel. : 011 23239184, 23231348 Fax : 011 23239184Vice-Chancellor, JSS UniversityJSS Medical Institutions CampusS.S Nagar, Mysore, 570 015Tel. : 0821 2548391Fax : 0821 10, 2009FOREWORDIndian Pharmaceutical Industry with more than 26,000 companies and more than alakh formulation need innovative and creative marketing strategies to sell them.Marketing, sales and distribution of Pharmaceutical Products are different fromthat of other overseas countries and most of the books available on pharmaceuticalmarketingaretheorybased.Pavan Choudary in this book, The Rx Factor gives a creative landscape ofPharmaceutical Marketing filled with innovative and practical marketingstrategies. Many national and international journals have applauded his creativeideas in The Rx factor. Rating the book as one of the top three titles among 665books on marketingexplainsitsstrengthandpopularityinternationally.The book is systematically divided into easily readable sections to understand theconcepts of pharmaceutical marketing tinged with Hindu mythology. The way Mr.Pavan puts the concepts of marketing bubbled with lots of creative ideas, easilygrabs the attention of the reader and creates an interest to complete the book. Istrongly recommend this Rx Factor book for Pharmacy students. I am sure thepharmacy students will easily understand the concepts listed in the book anddefinitely make use of the creative ideas during their career in pharmaceuticalmarketing. I also recommend this book as a useful tool for sales force in thePharmaceuticalIndustry.I congratulate Mr. Pavan Choudary for his successful efforts in putting the conceptsin a systematic and creative fashion. The book is written in a breezy style whichmakesiteasytoreadandunderstand.Dr.B.SureshPresident
  9. 9. he pharmaceutical industry in India has a lot to teach astudent of marketing. The competition, which has becomeTfiercer in recent years, has sharpened the marketing styles ofmany companies. At the same time, the dissociation of the industryfrom advertising agencies, market researchers and other market-support organizations has left many noticeable chinks in pharma-ceutical marketing. Owing to my background in both advertisingand marketing, perhaps, I have been able to discern these gaps moreclearly.Thisbookisanattempttofillsomeofthem.The foremost thing which a marketing professional needs tounderstand is his consumer, very much in the same way as a gooddoctor must understand his patient.The doctor can dispense the rightprescription (or, in pharmaceutical parlance, the ) only when he hascorrectly understood the nature of the problem afflicting the patient.A successful is one that meets the intended purpose, namely, treatthe patient by tackling the problem at hand. Similarly, the corner-stone of a successful marketing endeavour is an astute understand-ing of the market, which leads to a solution to the problems orexploitationoftheopportunitiesthemarketthrows up.A successful marketer must know the pulse of the market. He mustbe totally cognizant with the social and psychological profile of thecustomer. This knowledge and understanding of the market and thecustomer will determine what he needs to do to get his product9Introduction
  10. 10. 10accepted in the marketplace. It will govern his choice of prescrip-tion. This knowledge is the key to a successful marketing strategy,the correct prescription. A successful strategy is one that emanatesfrom market realities and one that enables the marketer get hisproduct prescribed or accepted. What distinguishes a successfulmarketing strategy from one that fails is precisely what I havechosentocallthe factor.For a marketing strategy to succeed in todays highly competitivemarketplace, it is imperative that you adopt a strategy that is unique,innovative and creative, which will enable your product to standapart. Without creative strategies you do not stand a chance ofmeeting the unprecedented levels of competition. But differentnessalone will not give results. Different-ness with a purpose willcertainly yield great dividends. What is therefore important is to bestrategically creative with a predetermined purpose, not merelydifferent. Thus, the factor is a purposive creative endeavour thatemanates from a deep understanding of the realities of the market-place.For convenience, I have divided the book into two parts. The firstpart, I hope, will provide you with an appreciation of the factor.The first three chapters in this part provide some of the vital charac-teristics of the factor as I understand it. Here I have given examplesof both successful marketing strategies and those that have failed,and have shown how the distinguishing feature in all cases has beenthe factor - its presence or absence as the case may be. Here I havestressed on the need for adopting the right communication strategyand the importance of being truly creative in a strategic and purpos-ive way, rather than being wayward or eccentric merely for the sakeof wanting to be different. In the next two chapters I have discussedsome techniques for generating strategically creative ideas and theimportanceofthemarketplaceasareservoirforyourcreativity.The second part focuses on the creative execution of the factor.While Chapters 6 and 7 explore options to the commonly acceptedconcepts of unique selling proposition (USP) and marketingIntroduction
  11. 11. 11warfare, Chapters 8 and 9 discuss two issues that appear to beextremely significant when introducing any new product in themarket. The first focuses on the importance of giving the right brandname. The second deals with correctly pricing the product based ona proper understanding of the market and the consumer. The nextchapter discusses the importance of credibility in advertising.Chapters 11 and 12 give ways to generate more productive flipchartsandpromotoolsandways toselectthemostpotentialdoctors.In this book, it has been my endeavour to suggest new, practical andcreative directions in pharmaceutical marketing. My idea is to openthe minds (and hearts) of the readers to creative thinking by chang-ing the mindset. The issues I have discussed by no means cover allthe areas in pharmaceutical marketing. But I do hope that I havebeenabletoplaceafingeronthepulseofmarketingthought.Though the book has pharmaceutical marketing as its basic content,1 have drawn freely from consumer marketing and advertising toinfuse fresh ideas or to elaborate some points. As such, I hope thatboth pharmaceuticaland non-pharmaceuticalmarketing profession-als, as well as people in the advertising profession will find some-thinginthisbookthatwould beofuse tothem.Introduction
  12. 12. PART AUnderstanding theFactor
  13. 13. The Creative Legacyndian marketing came of age, ages ago. If you delve into thehistory of religion in India, you will be amazed at the marketingIacumen of the propagators of Hinduism. Many of the conceptsof marketing as laid down in the West in this century, possibly firstfoundtheirapplicationinRigvedictimes.Though the term unique selling proposition (USP) was coined inAmerica in the 1960s, its first application can perhaps be traced toHindu mythology. The Hindu pantheon consisted of innumerablegods and goddesses. Many had a specific function and weresupposed to satisfy a distinct need that they were called upon tofulfil. For example, Laxmi for wealth, Indra for rains, Saraswati forknowledge,andso on.Moreover, the process of product augmentation (a buzzword todayin marketing circles) is exemplified beautifully when one sees thatsome Hindu gods have moods or profiles that can adjust to the needsof the supplicant or enhance the versatility of the deity. So, we haveDurgatobestowgrace,Kalitodestroyevil.Hinduism thus offered a composite package of innumerable gods-one or more of whom could be chosen by the devotee. Now came thethreat of cannibalization. (Cannibalization, as we know, is aphenomenon where the sales of one product eats into the sales ofanotherproductofthesamecompany.)CHAPTER 115
  14. 14. 16Understanding the FactorHindu religion had to now ensure that the appeal of one god did notinterfere with the popularity or acceptability of another. Thisdelicate problem was beautifully resolved by the marketers of yoreby bringing in the concept of Avataars. That is, the supreme deity isborn a number of times and the number of births matches the numberof gods in the religion (even if this number runs into thousands!).This concept of Avataars ensured that in the same household two ormore gods could be worshipped by different members of thehousehold without religious differences cropping up. Thus, familymembers worshipping different gods could live in harmony. (SeeFigures 1.1, 1.2 and 1.3.) The concept of Avataars helpedconsolidatethecorporatemonopolyofHinduism.Creatively speaking, the imagination of our forefathers knew nobounds.Take Lord Shiva, for instance.What a versatile collection offeatures! He has three eyes, one of which opens only to destroy evil.He also has a serpent coiled around his neck, while a river springsfromhishead.Perhaps,heistheonlygodintheworldwho dances.The legacy is rich with a future that holds promise. During a recentvisit to the Kashivishwanath temple in Varanasi, as I walked up thestairs, an eleven-year-old boy approached me. He was selling lotterytickets. His spiel went something like this-. Sahib, lottery ticket lelo. Bhagvan muradein puree karega, kismat chamkayega (Sir, buy alottery ticket. God will grant your wishes. It will make Fortune smileonyou.) Manyboughtlotteryticketsfromhim.Iwas noexception.The pitch was compelling. This little boy knew that the averageHindu has a contractual relationship with God.You give something,feed the brahmins, offer a cbaddar, and you can ask God for thingsin return. The boy knew that most visitors ask God for things. Thehopes of a Hindu are high when entering a temple. Our youngmarketing man had chosen this strategic place to hawk his wares.Instead of harping on what attractive prizes could be won, the boyused a strategy that was different - he beckoned God. Heinstinctively knew his customer. Unknown to him, the factor was
  15. 15. The concept of Avataars helpedconsolidate the corporatemonopoly of HinduismFIGURE 1.1FIGURE 1.3FIGURE 1.2
  16. 16. 18Understanding the Factorat work. No wonder, then, that he turned out to be one of the largestsellersoflotterytickets.Creative marketing genius is native to India. Marketing runs in ourblood. But are we utilizing this inherent instinct in us to its fullestpotential? Is the present-day marketer as brilliant as his forefathers?Can we do better? This book tries to find an answer to some of thesequestions. The context is pharmaceutical marketing. The contentdraws also from marketing of over the counter (OTC) and consumerproducts.
  17. 17. Market-based Communicationow many pharmaceutical companies do you think there arein India? 10 ... 100 ... 10,000 ...? There are more thanH26,000 pharmaceutical companies operating in the countrytoday.And how aboutthenumberofbrands?5,000...15,000...50,000?The landscape is, in fact, dotted with more than 100,000 brandswhich are being marketed in India. This does give an indication ofhow fiercelycompetitivetheindustryis.Why must a doctor prescribe your brand and not the hundred otherscontaining the same salt? How can you ensure that your approach isstrategic and yet different from what the others have tried?Especially, when it is likely that the communication strategy thatyou decide to choose could be akin to what quite a few othercompanies have been using.And to compound it all, the doctors yougotoarethesame.Theracebeginsnow.But let us not get off the starting block just yet. Before that let usexamine what we really mean by a communication strategy, andwhy itisimportanttoadopttherightone.The Right Communication StrategyLet us look at the communication strategy of one of the most well-marketed antibiotic, ciprofloxaxin. Cost per tablet - Rs.8.50 for19CHAPTER 2
  18. 18. 20Understanding the Factor500mg. Exorbitant!? Some marketers predict doom. However,companies such as Cadila, Cipla and Ranbaxy go ahead and launchtheproductaggressivelyalloverIndia.Whowins?Ranbaxy. This company forged ahead and became the undisputedleader, cornering a market share of 27.3 per cent for its brand,Cifran. Cipla became runner-up with 18.8 per cent market share(see Table 2.1). If you compare the two companies in terms of thenumber and calibre of their representatives, their stockist network,promotools deployed, etc., there would be little to choose betweenthem.Thenwhatmadeoneperformbetterthantheother?TABLE 2.1ComparativeperformanceofthethreeleadingciprofloxacinbrandsProduct MAT (Crs) MS (%) CHG (%)Group totalcipro.oralsolids 275.5 100.0 -6.2Cifran(Oct.1989)* Ranbaxy 75.3 27.3 6.1Ciplox(May 1992)* Cipla 51.8 18.8 16.4Ciprobid(August 1989)* Zydus 30.4 11.0 1.8MAT—MovingAnnualTotalMS —MarketShareCHG—Change LaunchdatesSource:ORG IMS, 2009.Perhaps, it was the communication strategy that did it. Cadila andCipla, both of which have histories of success, slipped up on thisoccasion. Ranbaxy established superior efficacy and justified theprice (Figure 2.1). They positioned Cifran (a quinolone) againstcephalosporins,aclassofexpensiveantibiotics.Rajiv Gulati, the man behind Cifrans success, feels that thisjuxtaposition was so strong that some doctors started thinking ofciprofloxacin as a fourth-generation cephalosporin. It was factuallyincorrect,butappearedrightperceptually.Their base line, Cifran—a reflection of your concern was meantto handle objections to the high price. In fact, they used the highprice to provide the doctor with a means to show his concern for his
  19. 19. 21patient. In turn, the doctor too, in his own mind, needed to justify thechoice of such an expensive product. The base line was bang ontarget.The factorhadworked.Cifran was adjudged the best marketed product by the ProductManagement Group. Marketing pundits still scratch their heads indisbelief as the sales of this product reflects Rs 75.3 Crs annually(ORG 2009).Let us take another example. Revital, the Ginseng from Ranbaxywas launched when the total market for Ginseng was about Rs 10million. A couple of companies which had entered this market inhaste were repentant. Owing to poor positioning and because theirproducts did not have extensive clinical trials to back them, theycouldnotpenetratethemarket.Ranbaxy spotted a hole in the market. Conventional tonics had beencatering only to the body and not mind. Revital was positioned as atonicforboththemindandthebody.Thepositioningpaidoff.To tackle the lack of clinical data, Ranbaxys first communicationwas: Revital—better experienced than explained. The doctorswere asked to try the product themselves. Doctors have for longrecognized the placebo effect. (The placebo effect demonstrates thatcertain symptoms respond as much to the ritual of taking medicineas to the physical substance itself. In other words, it is the mindsinfluenceoverbodilyprocessesthatisatplayhere.)Several doctors tried the product. The presentation by therepresentative was strong, backed by premium pricing and goodpackaging (Figure 2.2.). The product seemed to work. Or was it justthe placebo effect enhanced by the representatives aggressivespiel?In any case, the demands for clinical trials did not wane. Ranbaxythen commissioned a small clinical trial and went to town with itsaying: We dont meet standards, we set them. A few scepticmedicine men laughed. But the rest of the world bought Revital. Itwas the story of one great piece of down-to-earth communicationMarket-based Communication
  20. 20. FIGURE2.1RanbaxyjustifiedCifranspricebycomparingitwithcephalosporins
  21. 21. 23Market-based Communicationandonegreatmarketingsuccess.According to Christopher Adams, the head of marketing at Glaxo,UK, a drug is only one-third hardware (by which he means thechemicals encapsulated in a pill and swallowed by a sick person).The rest, according to him, is software or communications made upof the knowledge about the drug, which persuades the doctor toprescribe it, and the monitoring and pushing of the drug, whichpersuadesthepatienttokeeptakingit.TABLE 2.2Comparativeperformanceof leadingginsengbrandsProduct MAT(Crs) MS (%) CHG (%)Ginseng products (Evans) 121.6 100.0 22.7Revital(Jan. 89), Ranbaxy 106.8 87.9 26.8Riconia-G(May. 05), Ranbaxy 4.2 3.4 -2.3Trinergic (July,96), Unichem 3.9 3.2 -5.3MAT—MovingAnnualTotalMS —MarketShareCHG —ChangeSource:-ORG IMS, 2009.The medical community, when convinced, lends overwhelmingsupport. The sky, then, is the limit for a brand. The doctors blessedRevital, and it was off to a flying start. Today, Revital whose equityallowed the company to make it an OTC (over the countr) brandreflectsRs 106.8 Crores.This may appear like wishful thinking, a pie in the sky. But marketssuch as this do exist. The trouble lies with us—we are content withscratching the surface. Revitals success was based on a perceptiveunderstanding of the market. When a marketer does not respect thereality of the marketplace, the market shows no mercy.What followsis an illustration of a mission that failed owing to this very lack ofunderstandingofthemarketplace.The Pucca Structure —An Open and Shut CaseOne multinational aid agency identified open defecation as the main
  22. 22. FIGURE 2.2Market-sensitive communication, strong presentation, premium pricingand good packaging helped Revital take off.Better experienced than explained
  23. 23. 25Market-based Communicationreason for the poor rural health scenario in one of the states of India.So, it decided to sponsor a free pucca lavatory in each ruralhouseholdofsomevillages.A noble mission to curb defecation in the open. The lavatories werebuilt but nobody used them. For reasons that would appear strange tosomeonewho didnotunderstandtherealitiesoftheland:• In most houses this was the only pucca structure so it wasused to store grains which the normal structures withthatchedroofs couldnotprotectfromrain.• In some houses this free lavatory was covered up andconvertedintoanadditionalroom.• Most importantly, because all houses were given nearidentical structures, the upper castes did not use them as thiswould reduce the gap in status between them and the othercastes. They felt that their exclusive status would bejeopardized if they were to use the toilets. At the same time,the lower castes too did not use these because their referencegroup,theuppercastes,werenotusingthem.Such noble intentions, backed by big money!The scheme, of course,gotshuttered.And defecationstilltakesplaceintheopen.Ranjana Subberwal, an eminent sociologist, observed a similarphenomenon in Rajasthan when a high-yielding variety of seed wasbeing marketed to an audience of landless labourers! Out of syncwithmarketreality,such schemesarebound tofail.Market-sensitive CommunicationA brilliant piece of market-sensitive communication is that ofCalmpose. You know what it is for. So does the doctor. So do mostpatients. And there lies the rub. The brand is familiar; if the doctorprescribes Calmpose to a patient, he loses to some extent the aura ofmystery surrounding his profession. The ad for Calmpose says: Calmpose—thebestisalwaysfamiliar(Figure2.3)
  24. 24. 26Understanding the FactorDoctors know of the widespread awareness of the brand name. Bysaying, the best is always familiar you tell them why Calmpose isfamiliar.Few doctorswould desistfromprescribingwhatisthebest.FIGURE 2.3Calmpose making a strength out of a weaknessTABLE 2.3Comparativeperformanceof leadingdiazepambrandsProduct MAT(Crs.) MS(%) CHG%Tranquilizers 30.0 100.0 5.7Calmpose(Sep.1969),Ranbaxy 12.7 42.3 3.7Valium(Nov.1979),Piramal 11.1 37.1 7.8MAT—MovingAnnualTotalMS—MarketShareCHG —ChangeSource:ORG IMS, 2009.To reinforce this concept, one flipchart asked; Should your patientforego the best just because it is familiar? This communication thuswas able to extend the maturity stage of the product lifecycle ofCalmpose(Table2.3).These examples demonstrate that good communication strategiesspring from and take care of the realities in the marketplace. Mostcommunications from this company were impeccable. Having saidthis, take a look at the advertisement from Stancare, a Ranbaxy
  25. 25. FIGURE2.4Nocomments!Youdecide
  26. 26. Prescribe FasigynFIGURE 2.5Pfizer expands the amoebiasis market. Brilliant!
  27. 27. 29Market-based Communicationgroup company (Figure 2.4). Objectively speaking, how do youreact to its layout, its copy? Do you think such communication canpossiblyproduceresults?Letus moveon tosomethingmorepositive.We now turn the pages of marketing history to a communicationmessage that worked. 1992. The anti-amoebic segment was in thedecline, and Pfizers Fasigyn, though a late entrant. was the leaderhere (Table 2.4). Pfizer saw the downturn in 1992 and focused onexpandingthemarketby suchcommunication(Figure2.5).TABLE 2.4Comparativeperformanceofleadinganti-amoebicbrandsProduct MAT(Crs.) MS(%)Amoebicidesoralsolids 622.9 91.5Fasigyn(Sep.1988), Pfizer 94.7 13.9Metrogyl(Aug. 1972), Unique 83.5 12.3Tiniba(Feb.1980),Alidac 29.1 4.3MAT—MovingAnnualTotalMS—Market ShareCHG —ChangeSource:ORG IMS, 2009.Today, the market is robust. Surely, this is partly because of Pfizersefforts. Zydus Cadila, with its brand Tiniba, has beaten Pfizer inrecent times and this is commendable; but Pfizer did grow themarket. The company, with just 65 products, grosses Rs. 820 Cr.Remarkableindeed!To sum up, a successful communication strategy defines what is tobe said. It springs from the realities in the marketplace. But whilethis is a necessary foundation for success, it is not enough.You alsoneed a creative and unique execution of the communicationstrategy to succeed in the crowded pharmaceutical market. But is itpossible to be creative while working within the narrow confines ofstrategy? Can we be strategically creative? This is what we exploreinthenextchapter.
  28. 28. CHAPTER 7Marketing Peaceut all marketing is warfare, or so they have said so far. In myview, marketing is both war and peace. Marketing is bothBwarandlove.However, only one facet of marketing has been expanded upon -war, attack, aggression. It is win-lose only. This is where we gowrong. The most clearly visible facet of marketing has been taken tocovertheentiregamutofmarketing.One equally dominant, equally productive strain has not yet beendiscovered. The strain of peace - marketing peace. Marketing peaceisanalternativemarketingoutlook.The concept of marketing peace has been in use since time imme-morial. I first recognized this concept when I delved into the historyof religion in India. In the first chapter, we spoke of the concept ofAvataars. This concept says that there is one supreme deity who isborn again and again. Through this concept the Hindu religionensured that the appeal of one god did not clash with the appeal ofothers. Individuals and households worshipping different godscould live together without religious differences cropping up. ThisconceptofAvataars isanexampleofmarketingpeace.Changing the Frame of ReferenceTo understand the concept of marketing peace, we will look at theHero Puch advertising campaign. But before that let us trace the67
  29. 29. 68history of the Honda line of bikes because there is an importantlesson here. Remember the Hero Honda commercial, Fill It, Shut Itand Forget It ? What a roaring success the bike was! Some yearslater the line was changed. Earlier, the product was in its growthstage on the product lifecycle and the fuel-efficient message waswell communicated. Now, thousands of bikes were there on theroads to endorse the bikes credibility. Thus was born the You havegot a good thing going (Aap ka shandar hamsafar) (Figure 7.1).This commercial owes its genesis to a keen insight into buyingbehaviourand,ofcourse,somecommonsense.The advertiser understood that nobody bought a bike because of anadvertisement. The likely purchaser went to the existing owners ofbikes in his consideration set and sought their opinion. This behav-iour was recognized and exploited through the advertisement. Theadvertisement gave the existing owner words to mouth about hisbike. Later, the number of bikes sold was put up on hoardings so thatthe new prospect would feel very positive about the bike - so manypeople could not be wrong. Figure 7.2 shows the genesis of the HeroHonda advertisement and its progress. Note how the messagechangeswiththechangingstageoftheproductlifecycle.The next challenge before the company was to sell Hero Puch. Withno Hero Puchs on the road, who was going to endorse the bike? Thesolutionwas tochangetheframeofreference.Thus was born the advertisement, Akele hoti hai har nai shuruaat.Agar shakti hai pass tumhare to zammana dega saath. (Every newbeginning is made by an individual. Others will follow if you havethepower.)By making the buyer of a Hero Puch a pioneer, the advertisementtried to change the schema of the existing behaviour pattern (Figure7.3). You change the landscape rather than crowd the positioneverybody is rushing into. Thus by changing the frame of reference,you makeothersitesasattractive.Can you recall the Zara sa Rin advertisement that was aired someCreative Working of the Factor
  30. 30. Jingle: Hero Honda... Jingle continues: You’ve got agood thinggoing...Jingle continues: You’ve got agoodthinggoing...Hero Honda...MVO: Fill it. Forget it. (Musicunder)...Jingle continues: You’ve got agood thinggoing...Jinglecontinues:Hero Honda... MVO: Four-stroke makes all thedifference.(Music under)...FIGURE 7.1 (Contd)
  31. 31. FVO: I like it. (Music under)...Jingle continues: You’ve got agoodthinggoing...MVO: Gaari ho to aisi... (Musicunder)Jingle continues: You’ve got a goodthinggoing...Hero Honda...Jingle continues: You’ve got agoodthinggoing...Jinglecontinues:Hero Honda...MVO:Veryverysensible.(Music under)...MVO: What a bike! (Musicunder)...FIGURE 7.1Market-sensitive communication makes Hero Honda the leader
  32. 32. FIGURE7.2HeroHondachangingmessagesastheproductmaturesontheproductlifecycle
  33. 33. 72years back? If you have used the product you will know that the barmelts rapidly. That was a weakness. This advertisement changes theframe of reference by converting this weakness into a strength.According to Rajiv Vij, the Senior Product Manager at HindustanLever, the advertisement was a roaring success, because not onlydid it make the most of a weakness, it also was suggestive ofeconomyandpower.In the same league is a flipchart developed by American Remedies.Thecompanywas smallinsizebutbiginthinkinput.It had too small a range of products. This is how it changed thedoctors frame of reference.The following was the line the represen-tativewas tosaythroughtheflipchart.‘Sir, efficacy, safety and convenience are the three attributes whichyou look for in a drug. That is why, though there are hundreds ofmoleculesavailable,youwritejustafew.Similarly, Sir, efficacy, safety and convenience are the threeparameters we look for in a drug that we market. That is why thoughthere are thousands of formulations to market, we sell just a few.This isAmericanRemedies...In any product category where product lifecycles are short, productobsolescence common and new product introduction rampant,changing the frame of reference is a very useful though little usedtechnique. You keep your products appeal current and alive byredefining the prevailing schema. This also helps you avoid adogfight. Changing the frame of reference is thus one illustration ofmarketingpeace.Promotional CartelizationThe word cartelization has negative connotations. Cartelizationusually refers to price fixing, stock cutting, debarring other entrants,andso on.But it offers potent avenues for the use of marketing peace. If youCreative Working of the Factor
  34. 34. VO: Hero naye yug ka - AamirKhan(The new generation hero - AamirKhan)MVO: (A. Khan): Akele hoti haihar nayi shuruaat agar shakti haipaas tumhare to zammana degasaath (Every new beginning is madealone. If you have the power, theworld willbewithyou)Music: To zammana dega saath...(Theworld willbewithyou)Music continuedMusic: Akele hoti hai har nayishuruaat...(Everynewbeginningismadealone)Music: Tumhare pass hai shakti(If youhavethepower)FIGURE 7.3 (Contd)
  35. 35. Music:Hero haihero Hero Puch...(Hero Puch isahero)Music: Naye yug ka hero. HeroPuchnayayugnayishakti...(Hero Puch is the hero of the newgeneration. New generation. Newpower)MVO (A. Khan): Aur zammanadegasaath...(And theworldwillbewithyou)VO &Music:HeroPuchFIGURE 7.3Hero Puch - Beyond positioning. Changing the frame of reference
  36. 36. 75canthinkofanewtypeofcartelization-promotionalcartelization.Let us take a case. Typhoid can be prevented. There are at least twocompanies in India which are marketing typhoid vaccines which canprevent the disease for a particular number of years. But, unfortu-nately, typhoid is not considered as serious an infection any more bythemedicalcommunity.The doctor today has antibiotics that can take care of typhoid in justfive days, with the overall cost of therapy running to less than Rs 50.Moreover, many of these antibiotics virtually guarantee hundred percent results with no relapses. At present, the vaccines are pegged atRs 275 (for an oral dose of three tablets) and Rs 400 (for an injec-tion). Both companies are at each others throats to prove how theirformisbetter.A lot of energy is going waste. Can it be fruitfully channelized toprovide the marketers larger gains? Yes, through promotionalcartelization.How? Rather than fighting each other, if these companies were tofight the current perception in the doctors mind that typhoid is not averyseriousdisease,therewouldbesynergy.Therewillbesuccess.If the fact that it is much better for a patient not to suffer from theinfection (though it is controllable) could reach the doctors mindeffectively, far more sales for these companies could be generatedthantheycansnatchfromeachother.Teaming Up for Mutual GainA potent avenue for marketing peace is co-promotion. The pharma-ceutical industry has just begun to exploit this area. Companies arerealizing that product usage can be extended to market segments andgeographical areas not being effectively covered if they were toteam up with companies that are strong in areas where they areweak.Another area where the concept of marketing peace is working wellMarketing Peace
  37. 37. 76is that of strategic alliances in research, Glaxo and Searle haveformed such an alliance which is working for the advantage of both.IBM, Motorola and Apple Computers have been collaborating onthe power chip. Hewlett Packard has a partnership with Canon forlaser printers - Canon develops the engines for splitting ink on thepage, while Hewlett Packard develops software, microcontrollers,customerresearchandmarketing.Claiming Higher GroundMarketing peace is a valuable concept because there is muchunclaimed territory in the market today. However, how often do weindulge in expensive and wasteful fighting to snatch what is some-one elses? It happens in all industries. Take the example of media.Magazines the world over have been trying to take on televisionchannels. However, if a magazine group could instead tie-up with atelevision channel to offer special rates to those who subscribe toboth, it could be a win-win situation. Peace! In fact the largestmagazines in USA is one which tells people about programs whichwillappearonTVintheforthcomingweek.Many markets all over the world are in their infancy. Unclaimedgreen pastures are waiting to be acquired. This fact is overlooked.We assume full adulthood of the market. It is wrong to believe that itis necessary to fight to win. But mostly, one must have the sight, thevision, to win. With vision most wars can be avoided and preciousresourcesconserved.The markets are not saturated. Our minds are saturated withtheideathat allmarketingiswar.Take the example of the Carefree advertisement - Dhona, sukhona,banana ab gaya vo zamana (Washing - drying - gone is that era.)(See Figure. 7.4.) Also note how the line Akhir unhe bhi to patachale ki hum bhi modern hai (Let them also know that we too aremodern) taps into a common Indian instinct of status. It may beargued that though you are not fighting these categories, you arefighting others. But you need to understand that times have changed.Creative Working of the Factor
  38. 38. Video:Ayoung girl is being teased abouthermarriage.Audio: Aur Pooja, naye ghar mein jaakarapnipuranimausi komathbhoolna(Pooja, don’t forget your old aunt whenyougotoyournewhome.)FIGURE 7.4 (Cond)Video:HereldersisteraddsAudio: Jahaan itni nayee baaten sunraheehai...(Where you’re hearing so many newthings...)Video:Close-upofCarefreePackAudio: Ek zaroori baat sun! Yeh haiCarefree(Listen to something important. This isCarefree.)Video:Hereldersistercontinues...Audio: Kyonki main janti hoon... Vahaannahi chalega purane style ka dhona,banana...(Because I know that there the old stylewillnotdo.Washing,making...)Video:Sheshows aCarefreenapkinAudio: Carefree ek readymade napkinhai...(Carefreeis areadymadenapkin...)
  39. 39. Video:Aclose-upas she continuesAudio: Jo zyada sokhe aur poora saafdryfeelingdey(Which soaks more and give a clean anddryfeeling)FIGURE 7.4Another example of marketing peaceVideo:Sheshows theelasticbeltAudio: Aur saath main yeh napkin kohilneynadey(And thiswillkeepthenapkininplace)Video:ThebridetobegigglesAudio:Didi!(Sister!)Video:TheeldersisterretortsAudio: Aakhir unhe bhi to pata chale kihum bhimodern hain(Let them also know we too are‘modern’)Video:PackshortsuperAudio: Carefree belted sanitary napkindhona, banana, sukhana ab gaya wohzamana(Carefree belted sanitary napkins... Goneare the days of washing, drying andmaking...)
  40. 40. Bahadurbachchonkipehchaan(Thesymbolofbravechildren)Antarrashtriya Handyplast(InternationalHandyplast)HandyplastDuniya bhar mein bahadurbachchon ki pehchaan -Handyplast(The symbol of brave childrenthe world over - Handyplast)FIGURE 7.5Handyplast - A medal for bravery. Ingenious!
  41. 41. 80We have moved from the disposable concept of income to thediscretionary concept of income. There is greater purchasing poweravailable today. Most small-ticket purchases are impulsive. Youdont always buy one thing and then have to go without the other. Insuch a scenario, is it necessary to battle head to head with yourcompetitor?Isnt thereahigherground thatisabovestreetfighting?Take a look at this ingenious Handyplast bahaduri ki patti adver-tisement (Figure 7.5). It exploits the fact that every child likes to feelthat he is brave and display his valiance to the world. Therefore, heuses a plaster even when it is not called for. It is his way of showingoff. The advertisment exploits this and tries to market Handyplast asa cosmetic - a medal of bravery for the child - without attackingother products. Marketing peace. (I only wish they used the brandnamemoreoften.)But, all said and done, marketing peace is a path of great resistancewhich is difficult to find. It needs a high degree of creative search. Itneedscourage.Bahaduri.Creative Working of the Factor