MedicinMan August 2012                    >>> Lead ArticleIS THERE BUSINESSIN RURAL MARKETS?                              ...
MedicinMan August 2012                          >>> Lead ArticleIncome from non-farming sector is increasing. Nowaround 50...
1                      MedicinMan August 2012                          >>> Lead Article3. Making use of annuals fairs, wee...
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Pharma Market in Rural India

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Indian Government is aggressively spending for rural development. Active steps are being taken to improve healthcare. Rashtriya Swasthya Bima Yojna (RSBY) was launched in 2008. Its purpose is to cover all BPL families with a health insurance of Rs. 30,000/ (government or private hospital treatment, no age limit and pre-existing ailments are also covered).
One thousand more PG seats are sanctioned for private medical colleges, and 4000 more seats are created in existing government colleges. Land required to open a medical college is being reduced from 25 to 20 acres. To meet the shortage of teachers in medical colleges, age-bar for faculty posi- tion is being increased from 65 to 70 yrs. To encourage rural healthcare, 50% PG seats are allocated to doctors working in rural areas

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Pharma Market in Rural India

  1. 1. MedicinMan August 2012 >>> Lead ArticleIS THERE BUSINESSIN RURAL MARKETS? Dr. Surinder Kumar Sharma “According to census 2011, 91.21 million households in rural India have access to phone, compared to 64.67 mil- lion households in Urban India. Internet usage in rural India has overtak- en usage in urban India.” users in rural India than in urban. TV and dish antennas are common sight inMedicin Man rural India. 56 millions households have a TV, compared to 60 million urban households. Government is aggressively spending for rural development. Active steps“India lives in its villages.” are being taken to improve healthcare. Rashtriya Swasthya Bima Yojna- Mahatma Gandhi (RSBY) was launched in 2008. Its purpose is to cover all BPL families withAnd after so many years, we still wonder – is a health insurance of Rs. 30,000/ (government or private hospital treatment,there a business in rural markets? no age limit and pre-existing ailments are also covered).According to census 2011, out of 1.2 billion One thousand more PG seats are sanctioned for private medical colleges,Indians, 68.84% live in Rural India. and 4000 more seats are created in existing government colleges. Land required to open a medical college is being reduced from 25 to 20 acres. ToRural India is undergoing a tremendous meet the shortage of teachers in medical colleges, age-bar for faculty posi-change – machines are replacing man and tion is being increased from 65 to 70 yrs. To encourage rural healthcare,tools and as a result farmers and their families 50% PG seats are allocated to doctors working in rural areas.have a lot of time for non-farming activities. There is narrowing of rural urban divide due to:According to census 2011, 91.21 millionhouseholds in rural India have access to 1. Better income from farmingphone, compared to 64.67 million households 2. Increasing income from non-farming avenues and immigrantsin Urban India. Computer is not a magic-box 3. Industry projects in rural areasor a genie for a rural folk anymore. There are 4. Infrastructure development8.64 million households with a computer inrural India. Internet usage in rural India has 5. Increase in literacy and awarenessovertaken usage in urban India - more Internet 6. Affordability of technology & white goods Read the complete issue online at www.medicinman.net
  2. 2. MedicinMan August 2012 >>> Lead ArticleIncome from non-farming sector is increasing. Nowaround 50% income in rural India is being generated fromtrade, food processing, industry, and money brought backby emigrants. Better procurement prices for crops, a run ofgood monsoons, cash crops, etc. have increased disposableincome. Rural folks are buying cars, flat screen TVs, mi-crowaves and high-end mobile phones. Rural income is43% of national income. In terms of absolute numbers dis-posable income and middle class is more in rural India.Literacy is improving in rural India - there are 493 millionliterates in rural India, 285.4 million in urban.In spite of its huge potential, as indicated by various pa-rameters mentioned earlier, rural markets‟ contribution topharma remains abysmal; even its growth, over the pastfew years, has been suboptimal. What are the factors thatare preventing the rural pharma market to achieve its po-tential?Road BlocksInadequate Infrastructure interiors one needs strategic approach, rather than tactical,There are gaping holes both in government as well as pri- as ROI period is long.vate sector‟s initiatives to create a good healthcare infra- What is the way forward?structure. There are gross inadequacies - be it the numberof hospitals, dispensaries, staff, or doctors (only 1 doctor To develop rural markets, one needs a multipronged ap-per 3000 people in rural area, compared to 2/3000 in ur- proach, and need to:ban). Quacks rule the roost. 60% of rural diseases do not 1. Improve Healthcare Systemget treated at all. 2. Create AwarenessLack of awareness 3. Provide AffordabilityLack of awareness towards diseases, even the highly prev- 4. Ensure Accessibilityalent ones, continues. Superstition and belief in witchcraft Improving healthcare systemis still rampant. Most of folks still believe that diseases are It shall be viewed as a community responsibility and cor-due to God‟s curse, and have fatalistic attitude towards porations shall take active responsibility. Various steps thathealth and disease. can be taken to develop and robust healthcare system in60000 rural India are:50000 10678 1. Partnering with government, NGOs and other key40000 7435 8725 10517 stake holders RURAL 951330000 6766 8392 CLASS II TO VI 2. Training rural doctors and supporting staff 16998 METROS 708420000 9937 12351 14728 CLASS I TOWNS 3. Providing microfinance to doctors, retails, etc. to cre-10000 17314 ate healthcare infrastructure 11686 13622 15291 0 Some of the initiatives taken in this area are: 2009 2010 2011 2012 1. MSD India launched Project Transcend, a program toLack of affordability train GPs on evidence based management of diabetes.Many drugs remain expensive. Rural masses have stronger 2. Sanofi Aventis‟ PRAYAS - a program to meet ruralvalue for money. A few days‟, or a little, suffering is pre- India‟s healthcare needs and to bridge the gap by train-ferred to spending money on medicines. ing rural doctors - plan to train 150,000 doctors across India.Poor accessibility Creating awarenessHighly disbursed markets make distribution expensive anda logistic nightmare. Maintaining cold-chain or special 1. Educating rural masses about safe and reliable reme-storage conditions is a challenge due to erratic electricity dies for common ailmentssupply. To establish a dependable distribution system in 2. Partnering with rural institutions and NGOs Read the complete issue online at www.medicinman.net
  3. 3. 1 MedicinMan August 2012 >>> Lead Article3. Making use of annuals fairs, weekly haats and man- Ensuring Accessibility dis to spread awareness Highly disbursed market and thinly populated area makeSome aspiring initiatives, which have done good to setting an effective distribution system a nightmare. Main-both company as well as masses are: taining cold chain etc becomes very difficult due to frequent1. Novo Nordisk Education Foundation is undertaking power failures. Various options could be: massive diabetes control program that involves 1. Company delivery vans screening, spreading awareness and training doc- 2. Pooling of resources by collaborations between compa- tors. nies to set up viable distribution channels2. SPARSH, a multilingual helpline for diabetics to 3. Developing products suitable for rough storing condi- support Januvia and Janumet. tions3. NPL had run „Teach more, reach more‟ campaign 4. Mobile clinics and mobile pharmacies to educate masses about epilepsy. 5. Post offices duplicating as pharmacies4. J&J‟s Mobile health for mothers helped many. Ranbaxy and Pfizer have formalized an alliance with ITC to Providing affordability penetrate the rural markets for their over-the-counter (OTC)1. Making medicine more affordable is very im- products. portant. Companies can think of differential pricing Traditionally Indian companies, especially mid- & small- strategy for rural areas, e.g. Microsoft has low pric- size, have a better penetration in rural and class II-VI mar- es for its products for students. kets. Now multinationals (Indian & foreign) are becoming2. Rural healthcare insurance can help decreasing the more aggressive in these markets. Every other day, there is burden of payment on the individuals news of some or other company hiring to enter into rural3. Training medical staff for cost effective disease markets. In view of these developments, mid- & small-size management may help in establishing trust in allo- companies need to be proactive to make the most of the new pathic medicines. markets created by these companies and, more importantly, to protect their current business in these markets.▌Arogya Parivar (Healthy Family), a low-profit socialinitiative developed by Novartis, is a good example. Dr. Surinder Kumar Sharma is Head - Strategy &This program is proved to be a commercially sustaina- Business Development, TTK Healthcare Ltdble program. BREAKFAST FOR THE BRAIN Where Pharma Business Leaders Brainstorm To maintain the tempo generated by Brand Drift and FFE 2012, MedicinMan will be hosting the 1st BREAKFAST FOR THE BRAIN on Friday 7th September 2012 in Mumbai from 0830 AM to 1000 AM. CONTACT Arvind @ 9870201422 or email - arvindnair@medicinman.net or Chhaya @ 9867421131 or email - chhaya@medicinman.net at Mumbai or Anup @ 09342232949 or email - anupsoans@medicinman.net at Bangalore
  4. 4. 1 st Special Offer AnniversaryField Force Excellence Tools to Empower You and Your Field Force Buy And get FREE MRP ` 799 MRP ` 599 To Avail this Offer: Send your orders to anupsoans@medicinman.net and make a payment of Rs 800/- to HDFC S.B a/c no. *07141000006761* of “Anup Soans” HDFC Bank, Mosque Road, Frazer Town Branch, Bangalore – 560005. RTGS/NEFT IFSC: HDFC0000714. Offer inclusive of Speed Post Charges Call: +91 93422 32949
  5. 5. What do you expectyour FLMs and SLMs to be good at? What are you doing to ensure that they gain proficiency in the desired skills?The Half-Time Coach A Psychometric Assessment-based Feedback and Feed-forward Program for FLMs and SLMs 1. Management Games  Relearning by Reflection,  Feedback by Observation 2. Case Studies 3. Movie ClippingsThe Half-Time Coach is delivered by Anup Soans, Editor MedicinMan &Author of SuperVision for the SuperWiser Front-line Manager, HardKnocks for theGreenHorn and RepeatRx Contact: anupsoans@medicinman.net Ph. +91 93422 32949

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