ADAPTATION 
Selling Diabetes Medicine in India
Sameer Mathur 
BuddingMarkets.com 
Indian Institute of Management, 
Lucknow 
Marketing Professor 2013 – 
Asst. Professor (...
About Novo Nordisk 
Novo Nordisk’s Business Model 
Novo Nordisk in India 
Concluding Remarks
• Novo Nordisk was founded in 1923 by Danish medical 
researcher August Krogh 
• The largest company in Denmark based on m...
PRODUCT PORTFOLIO 
• Modern insulins 
• NovoRapid 
• NovoMix 
• Levemir 
• Human insulins 
• MixTard 
• Protein-related pr...
BUSINESS MODEL 
• Value Proposition 
• Core Competencies 
• Management Model 
• Market Participation
NOVO NORDISK: CREATING VALUE 
• Product Leadership 
• $1.6 billion on R&D in 2011 
• Customer Intimacy 
• “Insulin treatme...
CORE COMPETENCIES 
• Innovation and R&D 
• Established R&D centres globally (clinical trials) 
• New product development i...
NOVO NORDISK R&D CENTERS
CORE COMPETENCIES 
• Innovation and R&D 
• Established R&D centres globally (clinical trials) 
• New product development i...
MANAGEMENT MODEL 
• Think in long-term 
• Emphasis on corporate social 
responsibility 
• Centralized organizational 
stru...
MARKET PARTICIPATION 
• 51% Market Share in Europe 
• 51% Global Market Share 
• Compared to the 2nd biggest competitor 
E...
GLOBAL STRATEGY IN INDIA 
• The Indian Market 
• AAA Framework 
• Value Disciplines in India
THE INDIAN MARKET 
• Largest population of people 
living with diabetes 
• 62.4 million people with Type II 
diabetes in 2...
AGGREGATION 
• 1994: Novo Nordisk India Private Limited 
• Regional hub for the Asia-Pacific region 
• Clinical trials 
• ...
AGGREGATION 
• By centralizing key components of the value chain, 
Novo Nordisk can: 
• Provide more affordable insulin pr...
ADAPTATION 
• Lower prices compared to developed countries 
• 60% of diabetic patients pay for their own medication 
• Low...
ADAPTATION 
• Offers different product range more suitable to low-income 
patients 
• Certain products that have been with...
VALUE DISCIPLINE IN INDIA 
• No longer focuses on being a Product Leader 
• Emerging markets cannot afford innovation 
• M...
NOVO NORDISK AND BEYOND 
http://www.youtube.com/watch?v=xa_FNmeGIVQ
Over 1 Million views 
from more than 100 countries 
Prof. Sameer 
Top 1% most viewed 
Mathur Over 250 presentations on 
Ma...
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Novo Nordisk - Selling Diabetes Medicines in India

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Novo Nordisk - Selling Diabetes Medicines in India

  1. 1. ADAPTATION Selling Diabetes Medicine in India
  2. 2. Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Asst. Professor (Marketing) 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009
  3. 3. About Novo Nordisk Novo Nordisk’s Business Model Novo Nordisk in India Concluding Remarks
  4. 4. • Novo Nordisk was founded in 1923 by Danish medical researcher August Krogh • The largest company in Denmark based on market value • 70% of the company’s revenues come from pharmaceutical products for diabetics • 43% of its employees are in Denmark, while 57% are spread all over the world ABOUT NOVO NORDISK
  5. 5. PRODUCT PORTFOLIO • Modern insulins • NovoRapid • NovoMix • Levemir • Human insulins • MixTard • Protein-related products • Victoza • Oral antidiabetic products ABOUT NOVO NORDISK
  6. 6. BUSINESS MODEL • Value Proposition • Core Competencies • Management Model • Market Participation
  7. 7. NOVO NORDISK: CREATING VALUE • Product Leadership • $1.6 billion on R&D in 2011 • Customer Intimacy • “Insulin treatment is generally characterized by strong brand loyalty and limited switching between therapies.” – Novo Nordisk • Broad Product Range BUSINESS MODEL
  8. 8. CORE COMPETENCIES • Innovation and R&D • Established R&D centres globally (clinical trials) • New product development in domestic R&D centres BUSINESS MODEL
  9. 9. NOVO NORDISK R&D CENTERS
  10. 10. CORE COMPETENCIES • Innovation and R&D • Established R&D centres globally (clinical trials) • New product development in domestic R&D centres • Experience as a competitive advantage • Well established distribution network • Brand Reputation BUSINESS MODEL
  11. 11. MANAGEMENT MODEL • Think in long-term • Emphasis on corporate social responsibility • Centralized organizational structure BUSINESS MODEL
  12. 12. MARKET PARTICIPATION • 51% Market Share in Europe • 51% Global Market Share • Compared to the 2nd biggest competitor Eli Lilly – 23%
  13. 13. GLOBAL STRATEGY IN INDIA • The Indian Market • AAA Framework • Value Disciplines in India
  14. 14. THE INDIAN MARKET • Largest population of people living with diabetes • 62.4 million people with Type II diabetes in 2011 • $222 million industry • Growth opportunities: • Developing in medical infrastructure • Increases in insurance coverage • Indians are more accepting to modern medicine GLOBAL STRATEGY
  15. 15. AGGREGATION • 1994: Novo Nordisk India Private Limited • Regional hub for the Asia-Pacific region • Clinical trials • Data Management • Financial services • Exclusive agreement with Ahmedabad-based Torrent Pharmaceuticals Ltd. • Formulation, manufacturing and packaging facility • Seek opportunities to collaborate with local firms GLOBAL STRATEGY Novo Nordisk India Bangalore Office
  16. 16. AGGREGATION • By centralizing key components of the value chain, Novo Nordisk can: • Provide more affordable insulin products • Offer faster delivery rate • Solidify presence in the market • Current Market Share: 61% GLOBAL STRATEGY
  17. 17. ADAPTATION • Lower prices compared to developed countries • 60% of diabetic patients pay for their own medication • Lower average prices compared to competitors • Novo Nordisk: USD 3.48 • Eli Lilly: USD 4.99 GLOBAL STRATEGY
  18. 18. ADAPTATION • Offers different product range more suitable to low-income patients • Certain products that have been withdrawn from developed markets are still offered in India • Ex. Mixtard • Special Case: Victoza • Focus on niche segment GLOBAL STRATEGY
  19. 19. VALUE DISCIPLINE IN INDIA • No longer focuses on being a Product Leader • Emerging markets cannot afford innovation • More on Customer Intimacy to build brand loyalty • Changing Diabetes In Children (CDIC) • Free insulin for poor children • TakeAction! India • Awareness campaign for school children, teachers and parents from four local schools in Bangalore • Prevention of diabetes and lifestyle modification GLOBAL STRATEGY
  20. 20. NOVO NORDISK AND BEYOND http://www.youtube.com/watch?v=xa_FNmeGIVQ
  21. 21. Over 1 Million views from more than 100 countries Prof. Sameer Top 1% most viewed Mathur Over 250 presentations on Marketing www.BuddingMarkets.com

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