A case study presentation on Sanofi-Aventis initiative to make healthcare accessible to the Bottom of Pyramid in India through Prayas. The questions focused on the Strategic Intent, Value Proposition, Customer Insight, Sales and Marekting and Future Outlook associated with Prayas.

1. TAS
TAS 2016 In-house
Selection Process
Prayas by Sanofi-Aventis in India

2. TAS
Scheme of the presentation
STRATEGIC INTENT
 Please comment on the
strategic intent behind
conceptualisation of the
Prayas Initiative by Sanofi-
Aventis.
 What do you think were
the risks involved in this
initiative right from the
beginning?
• Leaders in the market.
• Involve partnerships
within all service
providers.
• Stagnant growth in
urban market.
• 2nd biggest pharma
market after US -
USD 55 bn by 2020 .
 Rising income level
in rural areas.
 Growing Patient
base.
 Improvement in
healthcare
infrastructure.
 Wider Insurance
Cover.
 Bridging
Diagnosis-
Treatment gap.
 CME to doctors
for Awareness
to Advocacy to
Adoption.

3. TAS
Scheme of the presentation
STRATEGIC INTENT
 Please comment on the
strategic intent behind
conceptualisation of the
Prayas Initiative by Sanofi-
Aventis.
 What do you think were
the risks involved in this
initiative right from the
beginning?
Universal
Risks
Specific to
Prayas
• Low Govt. spend.
• Poor Healthcare
infrastructure.
• Poor basic
hygiene and living
conditions.
• Extensive
availability of
spurious drugs.
• Tangible returns from
a socially based
model.
• Presence of players -
variety of products,
high cost advantage,
very high penetration
reach and coverage
• Unorthodox/Unethica
l promotional
practices

4. TAS
Scheme of the presentation
VALUE PROPOSITION
 What were the value
propositions for each of
the key stakeholders of
Prayas initiative?
 Distinguish between the
approaches of value
creation by MNCs and
Indian companies in this
specific industry sector.
Support your arguments
with statements from the
case.
KOLS
• Name associated
with a Social
Objective.
MENTORS
• Network and collaborate
with the experts.
• Certification by ACP
MENTEES
PATIENTS
SANOFI-
AVENTIS
• Promotion of brand
in Rural areas,
• Mentee Doctors
prescribe Sanofi’s
Productions out of
gratitude.
• Opportunity to upgrade medical
knowledge and practice
• Advanced treatment
• Diagnostic treatment than
symptomatic treatment.

5. TAS
Scheme of the presentation
VALUE PROPOSITION
 What were the value
propositions for each of
the key stakeholders of
Prayas initiative?
 Distinguish between the
approaches of value
creation by MNCs and
Indian companies in this
specific industry sector.
Support your arguments
with statements from the
case.
The GAME PLAN of Competitors:
• Disease education focus :Focus on disease education
rather than health education.
• Smaller packs since usage was in small quantity but
frequent. Many are daily wage earners/low income
consumers and could not afford to buy in bulk.
• Medical awareness directly to end users (patients) -.
(Novartis)
• Entering with established product portfolio (Chronic
care products) eg Eli-lilly and Novo
• Mobile clinics to promote drugs (Novo-Novardisk)
• Collaborating with NGOs (Eli-lilly, Nicholas Piramal)
• Traditional Advertising eg hoardings, promotional
event eg by Strepsils
• Unethical practices by some local players.

6. TAS
Scheme of the presentation
CUSTOMER INSIGHT
 What customer insight
did Sanofi-Aventis
leverage to address the
target market in India?
 Are any of these insights
applicable to other
products and services
across industry sectors?
Customer Insights:
• Doctors in rural areas:
• Doctors enjoyed “godlike Power”.
• Preferred certain brands
• Doctors Unaware- leading to misdiagnosis.
• No specialist doctors. All for one doctors
• Latent demand for Knowledge:
• Lacked advanced knowledge.
• Not up to date with the recent developments.
• Did not have opportunity to network and
enhance their knowledge as compared to
doctors in Tier 1 cities.
• Sales in rural areas was in acute diseases rather than
chronic (used to decide on product portfolio)
• Customer Profile : Low income - Small but frequent
purchases
• Role of Chemists: Patients not always went to doctors.
For small ailments they used medicines given by
chemists.

7. TAS
Scheme of the presentation
CUSTOMER INSIGHT
 What customer insight did
Sanofi-Aventis leverage to
address the target market
in India?
 Are any of these insights
applicable to other
products and services
across industry sectors?
Applicable in other sectors as well:
• Purchases in rural areas are “influenced” rather
than “informed” - Target influencers
• Retailers influences purchases in rural
markets, especially in FMCG markets.
• Building an intangible brand value goes a
long way in customer loyalty and retention.
• Products such as mobile and computers had
very little penetration until recently, resulting
in high bargaining power of some few
shopkeepers.
• Create a different product portfolio to address
the unique needs of BoP market
• Smaller packs used by CavinCare to penetrate in
daily wage earners market. (First company to
introduce sachets packing in India)

8. TAS
Scheme of the presentation
SALES AND MARKETING
 What challenges of
marketing to the Bottom
of Pyramid does this case
highlight.
 What innovative
approaches for product,
sales, marketing, and
distribution does this case
highlight.
 How could businesses of
Tata group companies
apply these learnings?
Take any business and
detail your proposal.
Challenges of marketing to BoP:
• Logistics
• Local competition
• Need Quick fix solutions
• Don't go to doctor - symptomatic treatments
• Customised product portfolio that is attractive to the
target segment
• Emotional purchases

9. TAS
Scheme of the presentation
SALES AND MARKETING
 What challenges of
marketing to the Bottom
of Pyramid does this case
highlight.
 What innovative
approaches for product,
sales, marketing, and
distribution does this
case highlight.
 How could businesses of
Tata group companies
apply these learnings?
Innovative approaches:
• Workshop Solution - creating an intangible brand
• Develop a product portfolio suitable for BoP
• Acute Product Care Portfolio
• Careful branding
• Encashing Hoechst legacy
• 3rd party manufacturers for cost advantage
• Added a new sub-channel to distribution network

10. TAS
Scheme of the presentation
SALES AND MARKETING
 What challenges of
marketing to the Bottom
of Pyramid does this case
highlight.
 What innovative
approaches for product,
sales, marketing, and
distribution does this case
highlight.
 How could businesses of
Tata group companies
apply these learnings?
Tata group company
• Tata Chemicals - Tata Swachh
• Sensitisation
• Product portfolio
• Branding
• 3rd party manufacturing
• Distribution network

11. TAS
Scheme of the presentation
FUTURE OUTLOOK
 Identify the key
challenges in sustaining
the success of “Prayas” in
and after 2011.
 What would be your
recommendations to
address the challenges
mentioned above.
 Was the top management
of Sanofi-Aventis right in
wondering if such social
models would yield profits
similar to mainstream
business models? How
would you respond to
such a dilemma?
Key Challenges & Recommendations in sustaining
Prayas
• Growing Competition - competitors adopting similar
measures aggressively
• Scaling and expanding the initiative : vying for funds
• Retaining and adding more KOLs/mentors/mentees
• Retaining sales force
• Digital interface - poor digital infra
• Extending initiative to patients and pharmacies
• Expanding product portfolio and increasing
prescriptions

12. TAS
THANK YOU!

13. TAS
Annexure 1
Key features
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PureIt Compact PureIt classic PureIt Autofill Swach Swach Smart Swach Magic
Availability of different
ranges and variety
Three different varieties are available in the range Rs. 1000
to Rs. 3200
Three different varieties are available in the range Rs.
499 to Rs. 1498
Technology It is a 4 stage purification technology comprises of
microfiber mesh for dirt, compact carbon trap for parasite &
pesticide, germkill processor for bacteria & virus removal
and a polisher for making the water tasty and odourless.
TATA Swach® TSRF™ technology is based on
nanotechnology efficient for removal of bacteria and
viruses. Built around a bulb-like water purifier made of
natural elements like rice husk ash impregnated with
nano-silver particles,
Cost Rs. 1000 Rs. 2000 Rs. 3200 Rs. 1498 (including extra
bulb)
Rs. 1213
(including
extra bulb)
Rs. 499
Refill / operational cost Rs. 280/ 1000 litres Rs. 550/ 2250 litres Rs. 550/ 2250
litres
Rs.299 / 3000 litres
Capacity of the purifier 14 litres 23 litres 18 litres
Time taken for purification 9litres/1-5 hours 3-4litres/hour
Purification life of the
bulb/germkill kit
1000 litres 2250 litres/1500 litres 3000 litres
End of life indicator Yes Yes
Auto shut off when unsafe
to use
Yes Yes
Running water Not required Both with &
without
Not required
Water wastage No No
Clear taste, removes odour Yes, other than high saltiness Yes, other than high saltiness
Gas/electricity/any
additives/boiling
Not required Not required
Plumbing or expensive
installation & maintenance
required
Not required Not required
Removal of salt / TDS Not done Not done
Certification CTFTRI, Mysore, IPHA, Kolkata, IPHE,
NEERI,SPDL, Glasgow, SHTM, University of London
etc.
CTFTRI, Mysore, IADFAC, Bangalore,Microtech
Services (Wessex) Ltd, UK,AES, UK, Vitens
Laboratory, Netherlands etc

14. TAS
Annexure 2: Sanofi performance
• Market capitalisation of INR 10k crores currently
• Ranked 17 among Indian pharma firms