Sell out 360°


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Our sell-out process, combining brand strategy, commercial tactics and implementation.

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Sell out 360°

  1. 1. Sell-out 360°<br />IM Associates<br />-<br />DATE<br />LOGO CLIENT<br />IM Associates | Leuven – Paris – Dusseldorf |<br />
  2. 2. Agenda<br />Who is IM Associates<br />Introduction about our company and our sales & marketing excellence services<br />Sell-out 360°<br />© 2011 IM Associates: Sell-out<br />2<br />
  3. 3. IM Associates is a leading international solutions provider within the healthcare industry focusing on Commercial Excellence.<br />We increase customer value for our clients by offering a unique blend of analytical skills, innovation, a relevant experience and a bridge from vision to implementation.<br />IM Associates takes project ownership and focuses on execution, regardless of the product life cycle stage.<br />Our goal is to establish a preferred partnership with our clients by building trust in a continuously evolving healthcare environment.<br />IM Associates consults to deliver Commercial Excellence<br />3<br />© 2011 IM Associates: Sell-out<br />3<br />
  4. 4. Consultancy company created in 1997, currently a team of 15 consultants specialized in implementing sales & marketing excellence.<br />Offices in Leuven (B), Düsseldorf (D) and Paris (F).<br />Active in business-to-business sales & marketing organizations, with a focus on healthcare & pharmaceuticals.<br />Main focus on Belgium, The Netherlands, France and Germany, but also active beyond.<br />IM Associates: who we are<br />© 2011 IM Associates: Sell-out<br />4<br />
  5. 5. In the current complex and dynamic healthcare environment, it’s mandatory to be wakeful about the possibilities to increase efficiency, effectiveness and the innovative character of your commercial approach. This requires out-of-the-box thinking, integration of a broad healthcare experience and insights into: <br />your competitive environment, <br />state of the art processes, <br />possibilities offered by the latest technological developments, <br />etc.<br />What can IM Associates bring you?<br />© 2011 IM Associates: Sell-out<br />5<br />
  6. 6. IM Associates’ clients (healthcare industry) maximize their return on investment and minimize the delay for success by applying strategic concepts based on strong analytics and deep insights, with a constant focus on change. <br />IM Associates combines a long healthcare experience with strong analytical skills, high flexibility, short time to action, ownership and a high involvement which results into a result driven project implementation in a close partnership<br />IM Associates: an added value for your business<br />© 2011 IM Associates: Sell-out<br />6<br />
  7. 7. IM Associates: Product/portfolio life cycle management<br />Launch<br />Pre marketing<br />Growth<br />Maturity<br />Established<br />Customer Value Management (CVM)<br />Customer & consumer driven sell-out approach<br />Internal customer organization<br />Customer healthcare mapping<br />Commercial innovation program<br />Vision & Implementation<br />Analytics<br />Innovation<br />© 2011 IM Associates: Sell-out<br />7<br />
  8. 8. IM Associates: Product/portfolio life cycle management<br />Launch<br />Pre marketing<br />Growth<br />Maturity<br />Established<br />Stakeholder management<br />Category management<br />Forecasting<br />CVM<br />Account Management<br />GEO targeting<br />Sales action planning<br />Market access<br />Territory optimization<br />Multichannel integration<br />Consumer Insights<br />Sell-out training<br />Sales force sizing<br />Change management<br />© 2011 IM Associates: Sell-out<br />8<br />
  9. 9. IM Associates: pharma references<br />© 2011 IM Associates: Sell-out<br />9<br />
  10. 10. Agenda<br />Who is IM Associates<br />Introduction about our company and our sales & marketing excellence services<br />Sell-out 360° <br />An Introduction<br />© 2011 IM Associates: Sell-out<br />10<br />
  11. 11. The worldwide CHC environment is in transition<br />The CHC market grows faster than the Rx market since 2008, which brings about a renewed interest for the CHC business as margin and profitability driver.<br />© 2011 IM Associates: Sell-out<br />11<br />
  12. 12. … and different trends will impact its future development<br />Different regulatory and market dynamics drive the development of ‘Selfcare’ in all its aspects, and shift the decision power even more than before towards the consumer. This consumer empowerment is, amongst others, defining the way CHC environments will be structured. <br />© 2011 IM Associates: Sell-out<br />12<br />
  13. 13. More pharmacies are integrating in chains<br />Competition is increasing<br />Important pharmacies are becoming increasingly important<br />Margins and profitability are under pressure<br />Pharmacies are looking to increase their profitability, and their core business – prescription medicines – is no longer able to generate this<br />More and more pharmacies understand that CHC can help them (partially):<br />Nevertheless, it is not all about good news…<br />More than a half of all sold products in a pharmacy are OTC products<br />OTC<br />© 2011 IM Associates: Sell-out<br />13<br />
  14. 14. A consolidation and vertical integration wave is ongoing and mass market business principles are being applied<br />France: the CHC distribution channel is undergoing important changes:<br /><ul><li> ‘Grossistesrepartiteurs’:
  15. 15. Affiliation or franchising systems
  16. 16. Development of private label
  17. 17. Arrival of new buying groups (‘CAP’ and ‘GIE’)
  18. 18. Parapharmacies and drugstores
  19. 19. Mass market </li></ul>Increasing importance of the online channel in the Germany in tough market circumstances<br />Evolution of privately owned and chain pharmacies in the Netherlands<br />© 2011 IM Associates: Sell-out<br />14<br />
  20. 20. There is a need for a strong consumer orientation and selling-out focus in the Consumer Healthcare industry, and more in particular in the pharmacy channel. E.g.: professor Lies Leemans (Professor pharmacotherapy OTC at the ULB) in her recent book about pharmacy management:<br />Need for consumer orientation among pharmacies<br />Pay attention to visual communication inside and outside your pharmacy.<br />Use GEOmarketing. It will influence your sales positively without impacting your scientific pharmacist image.<br />Pay attention to merchandising principles such as hot/cold spots, routing, shelf management…<br />Define clear priorities in your pharmacy. Take them into account in your communication style and in the pharmacy’s organization. <br /> Source: Lies Leemans “Van winkel tot apotheek”<br />© 2011 IM Associates: Sell-out<br />15<br />
  21. 21. Success, top as well as bottom line, in these rapidly changing market circumstances will depend on the extent one is able to adapt its commercial strategies to these different (new) stakeholders and their business processes.<br />Therefore one needs to understand:<br />the importance of each of the stakeholders<br />the relationships between each of these stakeholders<br />the decision making processes they apply<br />… and not only now, but also with a clear vision for the mid and long term!<br />This will require a strong focus on:<br />Commercial excellence in each of the different market settings<br />An added value partnership<br />Mastering all profitability drivers<br />Flawless implementation of identified best practices<br />The industry needs to adapt its commercial strategy to these rapidly changing market circumstances<br />© 2011 IM Associates: Sell-out<br />16<br />
  22. 22. Agenda<br />Who is IM Associates<br />Introduction about our company and our sales & marketing excellence services<br />Sell-out 360° <br />Our Services<br />© 2011 IM Associates: Sell-out<br />17<br />
  23. 23. The traditional product approach enriched with an innovative consumer approach<br />18<br />© 2011 IM Associates: Sell-out<br />Product<br />Client segmentation<br />( Client = Pharmacy)<br />Client <br />= <br />Consumer<br />Client <br />= <br />Consumer<br />Commercial tactics<br />Client type 1<br />Client type 2<br />Client type 3<br />Client type 4<br />Pharmacyapproach<br />Consumer approach<br />
  24. 24. Sales & Marketing Excellence through Sell-out 360°<br />Marketing plan<br />Go-to-market Structure<br />Target group<br />Sell-out 360°<br />Sell-out coaching & training<br />Sales tactics<br />PoS excellence<br />Change management<br />Campaign management<br />Geo reporting<br />Bonus setting<br />Marketing tactics<br />Sell-out Impact analysis<br />Sell-out activity plan<br />Sell-out objectives<br />Awareness workshop<br />Geo targeting<br />Qualitative segmentation<br />© 2011 IM Associates: Sell-out<br />19<br />
  25. 25. What is your brand strategy?<br />Are you sure that your target group and corresponding strategy are optimized?<br />What are your target group’s needs, lifestyles,…?<br />Do you knowyourconsumer/ patient flow and do you act on it?<br />Is your go-to-market strategy optimized and in line with your consumer/ patient flow? <br />…<br />1. Brand strategy<br />© 2011 IM Associates: Sell-out<br />20<br />Marketing plan<br />Go-to-market Structure<br />Target group<br />
  26. 26. Consumer insights allow optimizing your Marketing plan!<br />1. Brand strategy<br />The consumer is playing a more important and central role in the purchase and decision taking process for CHC products. Therefore, the first step to improve sell-out results, is knowing the end-user! <br />A thorough evaluation of your current target group and their needs, lifestyles, … will be necessary. If needed, the target group and corresponding strategies will be modified.<br />© 2011 IM Associates: Sell-out<br />21<br />
  27. 27. Our consumer insights solutions are based on the most extensive consumer data source<br />1. Brand strategy<br />Based on WDM data:<br />(Socio-) demographic data from the National Institute for Statistics.<br />Life Style information based on questionnaires.<br />Delivered on statistical sector level (+/-20.000 sectors in Belgium) and translated towards consumer information on an individual pharmacy level for all Belgian pharmacies.<br />Pharmacy-level information has been developed in cooperation with I-Biostat (university Leuven/ Hasselt) with an R2 = 94%.<br />© 2011 IM Associates: Sell-out<br />22<br />
  28. 28. Consumer insights allows us to optimize your Marketing plan!<br />1. Brand strategy<br />Prevalence<br />Choosing the ideal go-to-market strategy will be crucial! <br />In order to maximize results, the available budget needs to be optimized by choosing the best go-to-market strategy.<br />Based on an in-depth analysis, the best strategywill be defined:<br />Depending on factors such as the current product portfolio, your patient flow, customer feedback, possible synergies and budgetary restrictions we will analyze your sales channel mix (e.g. OTX structure).<br />Awareness<br />GP<br />Treatment/ Purchase<br />© 2011 IM Associates: Sell-out<br />23<br />SP<br />Pharmacies<br />
  29. 29. Which sales tactics do you apply?<br />Which POS do you target?<br />Is there a link between your sell-out rep objectives and your segmentation?<br />Is your structure adapted to your strategy choice (Rx/ OTC/ OTX/ Direct–to–consumer)?<br />…<br />Which marketing tactics do you apply for the different target groups?<br />Is your channel structure optimized?<br />Do you optimize your trade marketing?<br />Do you align your above and below the line activities?<br />…<br />2. Commercial tactics<br />Sales tactics<br />PoS excellence<br />Campaign management<br />Marketing tactics<br />Sell-out objectives<br />Geo targeting<br />Qualitative segmentation<br />© 2011 IM Associates: Sell-out<br />24<br />
  30. 30. A qualitative segmentation model through consumer insights<br />2.1. Sales tactics<br />1<br />© 2011 IM Associates: Sell-out<br />25<br />A qualitative segmentation model with the possibility to combine pharmacy segments with other POS information (e.g. physicians’ potential).<br />Arrive at the best possible synergy between the efforts on the pharmacy level, and the investments for other communication levels!<br />
  31. 31. Combination of consumer information and sell-out data!<br />Typical topics which we treat:<br />Does your consumer target group overlap with your high potential customers?<br />Fine-tune your segmentation and targeting approach using consumer insights<br />2.1. Sales tactics<br />Market potential value on IMS147 brick level for category X:<br />Potential based on product target group: e.g. women between 35 and 60 in a higher social class:<br />© 2011 IM Associates: Sell-out<br />26<br />
  32. 32. Linking customer and consumer information will help to close the gap between sales & marketing<br />2.2. Sales & Marketing tactics<br />Marketing people tend to target on consumer level, while sales <br /> people target pharmacies.<br />Marketing target group: e.g. Women between 35 and 60, in the higher social classes.<br />Sales target group: e.g. High potential pharmacies with whom we have a low market share.<br />Sector with a high density of women with a good profile<br />Sector with a high density of high potential pharmacies<br />Awareness<br />Knowledge<br />Preference<br />Purchase<br />27<br />Where to put priorities and how to translate this into concrete actions towards the reps? <br />
  33. 33. Linking customer and consumer information will help to close the gap between sales & marketing<br />2.2. Sales & Marketing tactics<br />Need for a pragmatic approach to define your targeting and to translate national objectives towards rep sell-out objectives. <br />© 2011 IM Associates: Sell-out<br />28<br />National objective: + 11%<br />Objective region 1: <br />+10%<br />Objective region 2:<br />+ 6%<br />Objective region 3:<br />+12%<br />Brick 1: + 6%<br />Brick 2: + 5%<br />Brick …<br />Brick 50: + 5%<br />Brick 51: + 5%<br />Brick …<br />Brick 90: + 9%<br />Brick 91: + 8%<br />Brick …<br />We developed a concrete methodology based on geo-shares, potential and market shares to distribute sell-out objectives in line with your strategy over different territories. <br />Sales & marketing will agree on this in the national sell-out activity plan.<br />
  34. 34. A national sell-out activity plan should contain specific marketing tactics (besides sales tactics).<br />Different POS / consumers can be reached by different communication channels. The channel mix used should depend on the POS’ consumer profile:<br />A well balanced communication mix will increase your ROMI, when it’s adapted to the POS preferred communication channels.<br />Sales & Marketing activities are defined to fulfill next years objectives<br />2.2. Marketing tactics<br />Current Mix<br />Optimized Mix<br />Getting the right balance between aboveand below the line activities, generating the highest return.<br />© 2011 IM Associates: Sell-out<br />29<br />
  35. 35. Sales & Marketing activities are defined to fulfill next years objectives<br />2.2. Marketing tactics<br />POS Excellence (below the line activity): <br />Our consumer insights should impact your trade marketing(e.g. Category Management, Space Management, visibility…)<br />Activities will be adapted to the consumer profiles present in the POS.<br /> E.g.: displays in the pharmacy, folders in the doctors waiting room,…<br />Direct to Consumer communication (above the line activity):<br />Different channels will be applied in different regions or for different target groups:<br />In which magazine shall I advertise to reach my target group?<br />Can I invest in regional TV campaigns instead of more expensive national TV campaigns?<br />…<br />© 2011 IM Associates: Sell-out<br />30<br />
  36. 36. Sales & Marketing activities are defined to fulfill next years objectives<br />2.2. Marketing tactics<br />Align all your activities according to the consumer profile (and channel mix) in order to create a synergy.<br />Campaign management: Make sure POS visibility is aligned with above the line visibility. <br />Be present in POS serving the target audience of your above the line communication.<br />Align the visit planning with the planning of marketing actions.<br />© 2011 IM Associates: Sell-out<br />31<br />
  37. 37. Bus stop campaign: How to regionally invest in bus stop campaigns? <br />Concrete action points:<br />Pharmacy potential levels based on “which are the pharmacies with a lot of customers corresponding with the target group?”.<br />Identify pharmacies with a lot of customers in line with the target group AND a limited (sell-out) market share.<br />What is the reason? What are the drivers? <br />Set-up of a concrete action plan in order to increase the market share.<br />Set-up of a visit action plan aligned to an above-the-line activity.<br />Which pharmacies to visit during the months of our bus stop campaign?<br />Optimize our above-the-line investments in order to realize maximum growth.<br />Where is the target group allocated?<br />Regional activities (e.g. regional bus stop campaign) can be proposed instead of national campaigns in order to use limited budgets but realize maximum results!<br />An example: Product X for women between 25 – 35 in the highest social class (target group)<br />32<br />© 2011 IM Associates: Sell-out<br />
  38. 38. How do you implement your sell-out strategy to guarantee success?<br />How will this be implemented in the field?<br />Is your sell-out strategy translated into concrete action points for the Field Force?<br />Has your Field Force the necessary skills?<br />Is your bonus system in line with your strategy?<br />…<br />Did you define KPI’s regarding to sell-out?<br />Did you identify short term action points with regard to sell-out?<br />3. Implementation<br />Sell-out coaching & training<br />Change management<br />Geo reporting<br />Bonus setting<br />Sell-out Impact analysis<br />Sell-out activity plan<br />Awareness workshop<br />© 2011 IM Associates: Sell-out<br />33<br />
  39. 39. Translation of a national sell-out activity plan in a rep plan and foresee the necessary training/ motivation<br />3.1. Execution<br />Each rep receives specific guidelines based on his/her own portfolio: <br />Which POS to target.<br />Marketing & Sales tools at his/her disposal.<br />Sell-out objectives to realize.<br />Motivation: One of the key factors to have a success story!<br />The bonus plan needs to be in line with the national strategy.<br />Development of a sell-out bonus plan will be necessary in order to motivate the reps and to change their behavior.<br />© 2011 IM Associates: Sell-out<br />34<br />
  40. 40. Translation of a national sell-out activity plan in a rep plan and foresee the necessary training/ motivation<br />3.1. Execution<br />From sell-in to sell-out (consultative selling)<br />Product <br />+ <br />Assessment of needs related to the activity<br />+ <br />Proposals<br />(volume-visibility-advice/SO)<br /> + <br />Support during implementation<br />= <br />Added value<br />Product <br />+ <br />Rebate<br />+ <br />Expertise<br />+<br />Relationships<br />= <br />Seduction<br />© 2011 IM Associates: Sell-out<br />35<br />
  41. 41. Translation of a national sell-out activity plan in a rep plan and foresee the necessary training/ motivation<br />© 2011 IM Associates: Sell-out<br />36<br />3.1. Execution<br />
  42. 42. Integrate sell-out in your KPI setting<br />37<br />© 2011 IM Associates: Sell-out<br />3.2. Performance<br />
  43. 43. KPI1:Sell-out market share per region compared to the average sell-out market share.<br />Action:Performance analysis in under and over performing regions to define the motors of sell-out to work on and to set-up an action plan.<br />An example: KPI setting for sell-out market share<br />38<br />© 2011 IM Associates: Sell-out<br />3.2. Performance<br />
  44. 44. Identify room for improvement throughout a Sell-out Health Check <br />3.3. Health check<br />Look for quick wins and for room for improvement concerning sell-out excellence within your company. <br />By executing our Health Check assessment, ‘low hanging fruit’ and axes for development will clearly be identified.<br />© 2011 IM Associates: Sell-out<br />39<br />
  45. 45. Sales & Marketing Excellence through Sell-out 360°<br />Marketing plan<br />?<br />Go-to-market Structure<br />Target group<br />Sales tactics<br />PoS excellence<br />Sell-out coaching & training<br />Change management<br />Campaign management<br />Geo reporting<br />Marketing tactics<br />Bonus setting<br />Sell-out Impact analysis<br />Sell-out activity plan<br />Sell-out objectives<br />Geo targeting<br />Awareness workshop<br />Qualitative segmentation<br />© 2011 IM Associates: Sell-out<br />40<br />
  46. 46. Bart Bierinckx<br /><ul><li>Email:
  47. 47. Tel: +32 16 22 47 43
  48. 48. Gsm: +32 473 89 52 43
  49. 49. Lien Vynckier
  50. 50. Email:
  51. 51. Tel: +32 16 22 47 43
  52. 52. Gsm: +32 494 45 05 96</li></ul>Website:<br />Address: Brusselsesteenweg 52, <br /> 3000 Leuven (Belgium)<br />Questions & Answers<br />© 2011 IM Associates: Sell-out<br />41<br />