6. The basic pharma playing field What Clients General Standardised Approach Account Focus Detailing by Reps to individual doctors Communication One-way Push Product based Value Product profile Organisation Silos Medical Marketing Sales
9. Pharma excellence: make a choice… R&D Product Innovation Administration and Distribution Infrastructure management Sales and Service Customer Relationship Management Core question: What is the USP of producing new drugs? how to exploit that to create business? The key factor to success is: exploitation of the knowledge about the drug, gathered in R&D, in health care itself.
10. III. What then, is the perspective of Value Innovation?
11. Value Innovation is more than sales adaptation . It takes a process of repositioning to customer and consumer in the process of care delivery that makes the distinction to USP. Positioning is all about choosing a distinctive customer value proposition “ A (marketing) strategy must start with a different value proposition. Strategy delineates a territory in which a company seeks to be unique. It is about making choices. “ You can’t be all things to all people” Porter, M. (2001), Interview in Fast Company (March 2001)
12. Shifting perspectives in the basic playing field What Clients General Standardised Approach Differentiated activities for different segments Account Focus Detailing by Reps to individual doctors Integrated coordinated multidisciplinary account specific management Communication One-way Push Product based Multi channel interactive platforms on health care Value Product profile Outcome of health care for consumers Organisational Change Silos Medical Marketing Sales Integrated account focused units
19. Goals for Sales /Account management: Differentiated Network approach and covering the individual GP’s within. - + Access to network -/- +/+ Network relevancy -/- +/+ 1.B Enlarge the ROI of the network 1.C Cover all GP in the network 1. Get access to or develop the networks with the highest potential and relevance 1.A Get to a healthcare based relationship based on your product 1.D Continue and warrant your health care relationship by practice and patient support 2 Access those networks with less but still relevant potential O. Stay away from networks with low potential , or migrate at least through your contact to the related network with a larger potential 2.A Enlarge the acknowledgement of your product 2.B Enlarge the group of GP’s using your product Commercial potential A
20. Marketing Synergy between Targeting and Added Value Indication Orientation Company orientation Product Orientation Customer Oriented Consumer Driven Customer Defined B Product Support services Customer Individualizing surplus value Customer Individualizing surplus value 1 Relation getting - No relation - Selling 3 Extended Rx 5 Enhanced Long term and Life time 4 Long term 2 Ad hoc Rx E General practice and partnership D Therapy enhancing support packages C Implementation and consumer directed support Services General and Selling Communication and tools B Product support services Customer Individualizing added value 1 Relation Building - No relation - Selling 3 Extended Rx 5 Enhanced Long term and Life time 4 Long term 2 Ad hoc Rx E General practice and partnership D Therapy enhancing support packages C Implementation and consumer directed support services General and selling communication and tools Conditions of Relation ship A Brand Driven I Commercial Promotion II Support to medical doctor III Support to patient IV Partner
22. Account segmentation, Focus and Management is crucial: Everything must be seen fit to the account Account Segment type Data and characteristics Targeting Investment: volume Commercial action plan Account management Related professional functions Process structures Monitoring Effects and output Information and communication Means and channels
26. Van Spaendonck’s BU “Value Innovation in Medical and life Sciences” is a focused consultancy firm. Van Spaendonck management consultancy supports and directs parties and professionals to proper choices and processes to create and develop their USP , a better market position and performance. In the dynamics of health care systems, pharmaceutical industry, health care insurers, social parties, and health care professionals will be challenged more and more to their added value. The business unit “Value innovation for Medical and Life Sciences,” has the needed expertise and experience to initiate and develop processes and clinics for health care, marketing, sales and management systems, professional development, and strategic organisational change. 20 years of consultancy expertise to pharmaceutical and medical industry, life sciences and health care. Actual research and publications in health care and marketing developments. Rob Halkes BU Van Spaendonck – Value innovation in Medical and Life Sciences T +31 418 578000 F +31 418 578010 M+31 653 420722 Postbus 2005 E r.halkes@VanSpaendonck.nl Hogeweg 85 W www.medicalandpharmamarketing.com 5300 CA Zaltbommel the Netherlands Rob Halkes BU Van Spaendonck – Value innovation in Medical and Life Sciences T +31 418 578000 F +31 418 578010 M +31 653 420722 Postbus 2005 E r.halkes@VanSpaendonck.nl Hogeweg 85 W www.medicalandpharmamarketing.com 5300 CA Zaltbommel T www.twitter.com /@ rohal the Netherlands
Welcome all. Thanks for attending this symposium. I am pleased to welcome you to this interactive symposium about value innovation in the pharma business As you all be aware, things in farma business have changed structurally in the last years and the main question it poses is : What is the next profit zone in the pharma industry Of course this means that the current business of pharma is under threat which poses the question to us all: Can we go on as we do? In other words: do we have to change the business model of pharma which is dmonanty based on research-new compounds, developing medicine and then getting it across to doctors and patients so as to get the prescription. In this symposium I want to discuss with you: Does the concept of value innovation present the next zone of sustainable profitability it means : does it present a better way of doing our business, better in the sense of sustainability in the long run, and of course, better in ROI! To answer this question we have to look at the following issues: Back to basics: what is the business of pharma ? And do the current market circumstances allow us to go as we do? What would be the conditions or consequences if we were to do that? Then I like to present the concept of value innovation to pharma and show you what this concept might present to you in terms of sustainable performance in care What are the inplications to businees and how should we impelment them Then: what would be the changes to the organization I making the new business model of how to earn our money true. The symposium is to be interactive, So I will progress to our discussion In asking you questions and trying to discuss with us all, the definitions, consequences and implications. So as to make it a practical discussion by which you by yourself will be able to judge the qualities and the prospect of the concept of value innovation. I:: just to give us a common framework for our discussions II Has the business been the same: can we go on doing what we did
So to give us a frame of reference what is the business of Pharma
Let me give you some examples of how to ear our money in Pharma – some classical examples: Commodities: things every one needs, but there’s plenty of it: generic drugs just like cheap cars, less priced products etc.
So to give us a frame of reference what is the business of Pharma
NB: Sales and srvices to both customers and consumers/patients… Innovation Directed at R&D: Rebuild the organisation of R&D, Garnier ( Harv Buss Rev): build on professional passion and small scale centres of excellence Specialize Select and cooperate with small specilalized research companies Follow the generics strategy Search and buy
With the development of tailor made, individualised medicine this ciritcal USP to our customers and consumers will rise! At least for specialty drugs…..