Building reputation to secure future
success for life sciences: Key aspects for
successful stakeholder relations
Dr. Herma...
The global challenges
Since we started the conference, we are 6,777 people
more.
In 2050 we expect more than 9,000,000,000...
The UN Millenium Goals 2015
 Gap Task Force
 What happens beyond 2015 ?
Conference Reputation Management – Prague 2013 –...
Life Sciences are more than pharma
Life sciences are innovation-driven and complex
Conference Reputation Management – Prag...
But Life Science Reputation is critical
Conference Reputation Management – Prague 2013 – # 5
http://www.youtube.com/watch?...
Power of public opinion
“It takes 20 years to build a
reputation and five minutes to
ruin it. If you think about that,
you...
It is not an easy way for decision-makers
Receptor Transmitter
Facts
Correct
Abstract
Complex
Emotions
Comprehensive
Perso...
Focus crop sciences:
Challenges – stakeholder – strategy – communication
Conference Reputation Management – Prague 2013 – ...
Challenges: Food – Fuel – Biodiversity
World population growth
Wealth increase
Rising demand for
bio-feedstocks
 Renewabl...
Key topic: Innovation Drivers
To increase tolerance of plants to climatic variability
 Develop new varieties using state-...
Key topic: Sustainable Agriculture
Sustainability
Environment
SocietyEconomy
Sustainable Agriculture is the only way to me...
The Global Food Crisis is Not Over
“I urge International Fund of Agriculture,
FAO and WFP to work together to create
a glo...
Pesticides and GMO: A Dilemma
 Coexistence of diverse forms of agriculture is vital, whereby the use of pesticides, plant...
Stakeholder Model Agriculture
Life
Science
Company
Distributors
seed companies
Retailers
Advisers
Farmer
Trader
Food
Proce...
Target group: Media Relations
 Intensify existing media relations approaches and
strengthen dialogue with journalists
 P...
Target group: Media Relations
Core topics:
 Agriculture: how is farmer‘s daily work
 New technologies (innovation, plant...
Innovation Communication
Developing a comprehensive and convincing line of argumentation vis-a-vis the so-called
„World Fo...
Bayer CropScience: Sustainability strategy
Source: Bayer CropScience / * Integrated Crop Management
Ecology
 Conserving b...
CSR: Examples in agriculture
 Bayer‘s Baylab for students: Discover science.
Be researcher for a day. Not only for school...
Focus health care:
Current reputation – challenges – stakeholder –
strategy – communication
Conference Reputation Manageme...
Pharma: “Big Business”, but trust …
Conference Reputation Management – Prague 2013 – # 21
Source: Edelman Trustbarometer 2...
Reputation Attributes and Drivers
Product Quality
Product Transparency
Safety
Pharmacovigilance
Research Transparency
Supp...
Why is Reputation so important?
 Need for differentiation from competitors
 Leverage momentum of product launch to posit...
Attractiveness of
employer
The Reputation-Trust-Behaviour Model
Source: pharma marketing, M. Renner, 4/2012, p. 18-21
Qual...
Key Stakeholder
Conference Reputation Management – Prague 2013 – # 25
Influencer
• Payors
• Regulatory bodies
• Politician...
Targeted stakeholder communication
Patients, Doctors
Quality of Products
and Services
Ethical Behaviour Research and
Innov...
Communication Tools
What? How?
Corporate Messaging Credible and meaningful storylines, presentations,
speeches („One voice...
Further ideas for tools and touch points
Patients’
needs
Creative
process Research
Develop-
ment Production
Marketing
& Sa...
Social Media – from now on …
Conference Reputation Management – Prague 2013 – # 29
Global Pharma Issues toward 2020
Conference Reputation Management – Prague 2013 – # 30
Financial crisis: Pricing / skrinki...
Product’s Life-Cycle: potential issues
Launch Maturity DeclineGrowthPre-Launch
First country
registration
Global
Market La...
CSR: Examples closed to MDGs
 Acces to medicine: Daiichi Sankyo in
cooperation with PLAN-International
(NGO) examined the...
High Reputation is the
licence to operate
Conference Reputation Management – Prague 2013 – # 33
 http://www.grassrooter-online.de
 http://www.facebook.com/grassrooter
 http://www.twitter.com/juppi007
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Building reputation to secure future success for life sciences

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Building reputation to secure future success for life sciences is a big challenge. Life science means more than Pharma but also Agribusiness. Grassrooter is a PR agency who works on strategies to support companies and institutions in enabling successful stakeholder relations

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Building reputation to secure future success for life sciences

  1. 1. Building reputation to secure future success for life sciences: Key aspects for successful stakeholder relations Dr. Hermann-Josef Baaken
  2. 2. The global challenges Since we started the conference, we are 6,777 people more. In 2050 we expect more than 9,000,000,000 people on the earth. Conference Reputation Management – Prague 2013 – # 2 http://www.youtube.com/watch?v=kvRyO9vldx0&list=PL84A454F7C122B376&index=20
  3. 3. The UN Millenium Goals 2015  Gap Task Force  What happens beyond 2015 ? Conference Reputation Management – Prague 2013 – # 3
  4. 4. Life Sciences are more than pharma Life sciences are innovation-driven and complex Conference Reputation Management – Prague 2013 – # 4 http://www.youtube.com/watch?v=wvy2X-KY0uY&list=PL84A454F7C122B376
  5. 5. But Life Science Reputation is critical Conference Reputation Management – Prague 2013 – # 5 http://www.youtube.com/watch?v=Hy5fsnhRcuQ
  6. 6. Power of public opinion “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” Warren Buffet Conference Reputation Management – Prague 2013 – # 6
  7. 7. It is not an easy way for decision-makers Receptor Transmitter Facts Correct Abstract Complex Emotions Comprehensive Personal Simple  Media and public perceptions have high impact on stakeholders who decide about medications / marketing authorization. Conference Reputation Management – Prague 2013 – # 7
  8. 8. Focus crop sciences: Challenges – stakeholder – strategy – communication Conference Reputation Management – Prague 2013 – # 8
  9. 9. Challenges: Food – Fuel – Biodiversity World population growth Wealth increase Rising demand for bio-feedstocks  Renewable energy and biofuels  Growth in biomaterials (“white biotech”)  Increase in caloric intake per capita  Rise in meat consumption and need for feed  Rise in food demand  Less farmland per capita  Increasing acceptance of biotech 9.4 Demand 2030 Required agricultural output growth Billion tons Production 2007 7.0 +40% Productivity barriers  Rise in yield losses through adverse weather conditions  Disease/insect migration  Water scarcity Conference Reputation Management – Prague 2013 – # 9
  10. 10. Key topic: Innovation Drivers To increase tolerance of plants to climatic variability  Develop new varieties using state-of-the-art technologies  Improve plant health and nutrient uptake Safeguard and increase yields from constant land area  Better resource management (targeted use of crop protection, irrigation technology, fertilizers and resistance management)  Increase yields through innovative technologies (modern seeds, plant biotechnology / GMO) Expand agricultural production in marginal areas  New crops with greater tolerance of drought and extreme temperatures Climate change Limited arable land coupled with rising demand Research and innovation are the key to mastering the challenges of agriculture Conference Reputation Management – Prague 2013 – # 10
  11. 11. Key topic: Sustainable Agriculture Sustainability Environment SocietyEconomy Sustainable Agriculture is the only way to meet the challenges of the future There is a consensus between industry, governmental organisations and society: Conference Reputation Management – Prague 2013 – # 11 “Sustainable agriculture is the efficient production of safe, high quality agricultural products, in a way that protects and improves the natural environment, the social and economic conditions of farmers, their employees and local communities, and safeguards the health and welfare of all farmed species.” Source: Sustainable Agriculture Initiative (www.saiplatform.org)
  12. 12. The Global Food Crisis is Not Over “I urge International Fund of Agriculture, FAO and WFP to work together to create a global productivity target for small farmers – and a system of public scorecards to measure how countries, food agencies, and donors are contributing toward the overall goal of reducing poverty.” Bill Gates (2012) Conference Reputation Management – Prague 2013 – # 12 . Bill and Melinda Gates https://www.facebook.com/photo.php?v=10151451477371784&set=vb.40113361783&type=2&theater
  13. 13. Pesticides and GMO: A Dilemma  Coexistence of diverse forms of agriculture is vital, whereby the use of pesticides, plant biotechnology and modern breeding methods are important elements for safeguarding.  Studies confirm the safety of pesticides and genetically modified food for human health.  Safety of the environment, consumers and farmers is the top priority in all activities.  Europe has one of the most extensive and stringent systems in the world for evaluating and authorizing genetically modified products.  Authorization is scientific based but stakeholders ‘ influence is based on non-scientific aspects and public opinion Need for intensive stakeholder relations – Participation and transparency is the key Conference Reputation Management – Prague 2013 – # 13 (Safety & Advantages) (felt risk and not recognised advantages) Scientific & economic facts Public opinion based on perception & emotions http://www.youtube.com/watch?v=dsxFZ0rUCoM
  14. 14. Stakeholder Model Agriculture Life Science Company Distributors seed companies Retailers Advisers Farmer Trader Food Processor Food Retailer Consumer Stakeholder (e.g. Politicians, NGOs, GOs) / Media  Stakeholder mapping: From stable to table – from farm to fork Conference Reputation Management – Prague 2013 – # 14
  15. 15. Target group: Media Relations  Intensify existing media relations approaches and strengthen dialogue with journalists  Position the company as an innovation leader and create reputation for the company strategy  Generate additional media coverage to drive the public discussion Can Media Relations improve reputation?  Knowledge about agriculture (seeds, fertilizer, crop protection, meet production, etc.) is limited  Complex business, difficult to communicate  Public awareness of companies in agriculture compared with competitors could be improved (hidden players).  Media: important transmitter in the very special agriculture sector (b2b) for stakeholder How can messages be delivered? Conference Reputation Management – Prague 2013 – # 15
  16. 16. Target group: Media Relations Core topics:  Agriculture: how is farmer‘s daily work  New technologies (innovation, plant biotechnology)  World Food Supply („Second Green Revolution“) Actions:  Story-telling / Day-of-Live-Stories of researchers  Hotline „Expert from the field“: supporting complex topics which are communicated via press release  Invite journalists to media workshops with defined topics  Prepare and offer ready-to-use backgrounders, video footage and emotional pictures  Build Communications networks with foodchain partners  Social Media positioning (Twitter, Facebook, FlickR, Youtube)  Implement internal editorial board to better align existing tools Conference Reputation Management – Prague 2013 – # 16 http://www.youtube.com/v/KpUR2mS19MM?fs=1&hl=de_DE
  17. 17. Innovation Communication Developing a comprehensive and convincing line of argumentation vis-a-vis the so-called „World Food Crisis“: rising global demand for agricultural commodities can only be met by increasing investment into innovation Objectives:  Achieving thought leadership in the media with CEO Interviews & bylined articles, media briefings, press releases, input for key editorials, material beyond the news  Partnering with academia and key opinion leaders, i.e. positioning on conferences  Positioning of Bayer CropScience proprietary technology in the public  Supporting communications activities: print, online and internal communication  Presenting the ag companies as part of the solution to feed the hungry planet Source: Bayer CropScience AG Conference Reputation Management – Prague 2013 – # 17 Bayer’s strategic approach to strengthen stakeholder dialogue through business relevant topic
  18. 18. Bayer CropScience: Sustainability strategy Source: Bayer CropScience / * Integrated Crop Management Ecology  Conserving biodiversity through technologies for increased output  Using innovative technologies for adaptation to climate change  Promoting Good Agricultural Practices, sustainable land management  Agro-ecosystems’ health through knowledge transfer about ICP* Example: Bayer Tabela Direct Seed Rice Project in Indonesia Conference Reputation Management – Prague 2013 – # 18 Society  Striving to ensure quality and healthy food in sufficient quantities  Improving farmers’ livelihood and driving rural development  Transferring knowledge by providing farmer trainings  Enhancing living conditions through Public Private Partnerships Example: Childcare Program in India Economy  Securing harvests, reducing losses  Increasing agricultural efficiency and productivity  Optimizing natural resource use  Creating win-win solutions Example: > 200 Food chain partnership projects
  19. 19. CSR: Examples in agriculture  Bayer‘s Baylab for students: Discover science. Be researcher for a day. Not only for schools but for all stakeholder.  As part of Bayer’s Child Care Program in India, the Naandi Foundation has set up Creative Learning Centers. Children who previously worked in agriculture or other sectors are prepared for reintegration into the Indian school education system. In addition, Bayer has opened a Vocational Training Center, where former child laborers can attend one-year training courses to prepare them for more highly qualified employment in agriculture. Conference Reputation Management – Prague 2013 – # 19 http://www.cropscience.bayer.com/en/Commitment/Rural-development.aspx http://www.cropscience.bayer.com/en/Commitment/Agricultural-education.aspx
  20. 20. Focus health care: Current reputation – challenges – stakeholder – strategy – communication Conference Reputation Management – Prague 2013 – # 20
  21. 21. Pharma: “Big Business”, but trust … Conference Reputation Management – Prague 2013 – # 21 Source: Edelman Trustbarometer 2013Source: VFA Statistics, 2013 Health care market (global) Bn. US-Dollar Per region 77 69 66 65 62 62 59 58 53 50 0 20 40 60 80 100 Technology Automotive Food and beverage Consumer packaged goods Telecommunications Brewing and spirits Pharmaceuticals Energy Media Financial services / Banks Trust (global)
  22. 22. Reputation Attributes and Drivers Product Quality Product Transparency Safety Pharmacovigilance Research Transparency Supply Integrity Fair Pricing Value Comparative Effectiveness Price / Value Quality & Safety Economic Impact & Government Partnership Financial Strength Employee Investment Job Creation Government Partnership Innovation Bold Advancements Research Efficiency Sustainable Innovation Public Health Leadership Prevention Disease Awareness Drug Adherence Global Health Responsible Marketing Product Education Provider Partnerships Provider Outreach Compliance Transparency Environmental Responsibility Executive Engagement Ethical Business Practices Conference Reputation Management – Prague 2013 – # 22
  23. 23. Why is Reputation so important?  Need for differentiation from competitors  Leverage momentum of product launch to position early as an innovative company and reliable partner in a special field of therapy  Being recognized as a credible and preferred business partner in a changing and competitive health environment Conclusion:  Use a restricted number of touch points and opportunities to communicate with relevant key stakeholders  Establish and mobilize Key Opinion Leaders, third parties and patient advocacy groups to cascade the products’ awareness and support  Change from scientific to emotional driven communication Conference Reputation Management – Prague 2013 – # 23 http://www.youtube.com/watch?v=eJCiZ7J4Al4
  24. 24. Attractiveness of employer The Reputation-Trust-Behaviour Model Source: pharma marketing, M. Renner, 4/2012, p. 18-21 Quality of Products and Services Ethical Behaviour Research and Innovation Transparency Stakeholders´ behavioural intentions Stakeholder Trust Quality of Marketing and Sales Quality of Management Social Responsibility Success of business Conference Reputation Management – Prague 2013 – # 24 COMPANY... is competent COMPANY... is reliable COMPANY... is credible COMPANY... always acts in an open and honest way COMPANY... demonstrates high customer focus Take medicines/products made by COMPANY... myself in the case of illness Recommend my family/friends to take the medicines/products made by COMPANY... in the case of illness Recommend to my colleagues the prescription of medicines/products from COMPANY... in the case of illness Prescribe medicines/products from COMPANY... in the case of illness
  25. 25. Key Stakeholder Conference Reputation Management – Prague 2013 – # 25 Influencer • Payors • Regulatory bodies • Politicians • Science organisations • societies, e.g. European Society of Cardiologists • NGOs Customers and inciter • Key Opinion Leaders (e.g. specialized scientists) • Physicians in their special field (office), e.g. cardiologists • Physicians in their field (hospital), e.g. Cardiologists • Clinics • Primary care clinicians • Nurses • Pharmacists • Patient groups • Single patients Media • Business media • Core medical media • Key journals for special therapeutic areas • Primary and secon- dary care media • Nursing media • Pharmacy media • Consumer media • Social media Life Science Company
  26. 26. Targeted stakeholder communication Patients, Doctors Quality of Products and Services Ethical Behaviour Research and Innovation Governmental Bodies, Politicians TransparencySocial Responsibility Quality of Products and Services Conference Reputation Management – Prague 2013 – # 26 Payors ? Quality of Products and Services ?
  27. 27. Communication Tools What? How? Corporate Messaging Credible and meaningful storylines, presentations, speeches („One voice“) internal and external Employer Branding Communicate existing talent programs, enter ranking lists, position stories („best“ employers) Media Relations Press briefings, press releases, monitoring Issue and Crisis Management Monitor health topics and support business, develop Q&A material, train relevant managers Public and Governmental Affairs Network with political influencers in closed cooperation with Market Access team, representing the company in associations’ committees Corporate Social Responsibility Identify existing and create new projects, coordinate communication based on global strategy Corporate Publishing and Branding External publications and Internet; execute Branding and ensure consistency with Corporate PR
  28. 28. Further ideas for tools and touch points Patients’ needs Creative process Research Develop- ment Production Marketing & Sales Acceptance in general population Story-telling for new medicines: making patients the heroes and stars  Doctor’s Innovation Club  Think Tank  „White Book“ about the future of health  Add-on mini brochure on innovation  Reporting on success in emerging countries  Roundtable with stakeholders  workshops Traditional focus of innovation  Fully integrated new a.i. Comm. and communications about therapeutic fields  Innovation events  “Lecture on Innovation”  Visits behind the scene
  29. 29. Social Media – from now on … Conference Reputation Management – Prague 2013 – # 29
  30. 30. Global Pharma Issues toward 2020 Conference Reputation Management – Prague 2013 – # 30 Financial crisis: Pricing / skrinking margins Re-evaluation national healthcare systems Patents: Generics vs. innovative medicine Managing regulatory compliance Need for intensive stakeholder relations – Participation and transparency is the key
  31. 31. Product’s Life-Cycle: potential issues Launch Maturity DeclineGrowthPre-Launch First country registration Global Market Launch Announcement of Peak Sales Target New indications / applications 2 3 4 5 Product hits peak sales 7 3rd Party Licensing Deals 10 11 Generic Defense Divestment 12 Emergency registrations 6 Sales Development / Phase III Conference Reputation Management – Prague 2013 – # 31 1 Safety / Compliance 8 Product Issue / Crisis? 9
  32. 32. CSR: Examples closed to MDGs  Acces to medicine: Daiichi Sankyo in cooperation with PLAN-International (NGO) examined the situations of specific countries in Africa to identify those where progress on the MDGs was lagging and decided to focus its efforts on Cameroon and Tanzania.  Family Planning: The Jadelle Access Program, developed and supported through a partnership between Bayer HealthCare AG, Bill & Melinda Gates Foundation and other NGOs in developing countries with contraceptive access  Education: Novartis International Biotechnology Leadership Camp for top university students Conference Reputation Management – Prague 2013 – # 32 http://www.bayer.com/en/family-planning.aspx
  33. 33. High Reputation is the licence to operate Conference Reputation Management – Prague 2013 – # 33
  34. 34.  http://www.grassrooter-online.de  http://www.facebook.com/grassrooter  http://www.twitter.com/juppi007

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