The Rx factor

The Rx factor
The Factor Strategic Creativity in Pharmaceutical Marketing PAVAN CHOUDARY W V P D Wisdom Village (Publication Division) Knowledge is information. Wisdom is transformation.
AWVPD PRESENTATION Books from Wisdom Village (Publications Division) envision to enhance and enrich their readers with life changing experiences from the business, mind, body andsoul genres.Theystrivetowardsholisticdevelopment. Editorial&Production CharushillaNarula Copyright©PavanChoudary,2009 All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publisher. ISBN 978-81-906555-8-3 This 2ndEditionof The FactorisPublishedby: WVPD is a part of Wisdom Village 164, Aravali Apartments, Alaknanda, New Delhi – 110019 To BookYourOrders: Email:wisdomvillageindia@gmail.com,wvpdindia@gmail.com Or Call:+91 9811514287, 9810800469 FirstPublishedin1997by Response Books (Adivisionof SagePublicationsIndiaPvtLtd) M-32, GreaterKailashMarket-1,New Delhi110 048. LibraryofCongress Cataloging-in-PublicationData Choudary, Pavan1965- The factor:StrategicCreativityinPharmaceuticalMarketing/PavanChoudary. Includesbibliographicalreferencesandindex. 1.Pharmaceuticalindustry—India. 2.Drugs—India—marketing. 3.Pharmaceuticalpolicy—India.I.Title. HD9672.I52C48 615.1' 068'8—DC21 1997 97-18645 ISBN: 0-8039-9378-1 (US-HB) 81-7036-626-7 (India-HB) 0-8039-9379-X (US-PB) 81-7036-627-5 (India-PB) W V P D Wisdom Village (Publication Division) Knowledge is information. Wisdom is transformation.
Pavan Choudary Brief Introduction Pavan Choudary is the author of path breaking books like Broom & Groom (co- author Kiran Bedi), A Trilogy of Wisdom, Machiavelli for Moral People and The Rx Factor. Pavan is also the Managing Director of Vygon, a leading French Multinational, hosts the TV program Hum Aise Kyun Hain on Doordarshan, and has written columns for The Times of India and Financial Chronicle. Today, Pavan is considered one of the most original Indian socio-political thinkers and management strategists. To know more visit www.pavanchoudary.in You may reach the author at pavan2000pc@yahoo.com
Other Books by Pavan Choudary 1. How a Good Person can Really Win 2. A Trilogy of Wisdom a. Chanakya’s Political Wisdom b. Confucius’ Social Wisdom c. Kabir’s Spiritual Wisdom 3. When you are Sinking Become a Submarine 4. Machiavelli for Moral People 5. Broom & Groom (on Hygiene and Manners) co-authored with Kiran Bedi 6. Uprising 2011- Indians Against Corruption co-authored with Kiran Bedi
Comments on “I strongly recommend this book for all pharmacy students and marketing professionals…it gives a creative landscape for Pharmaceutical marketing filled with innovative and practical marketing strategies…ausefultoolfor thesalesforceinthepharmaceuticalindustry.” Dr. B. Suresh, President, Pharmacy Council of India “Written in a racy, 'un-put-downable' style (which one rarely comes across in a book emanating from India), one reaches the end only 'asking for more' and wishing that the author had included some more marketing examples and cases to reinforce many of his imaginative ideas. A book not to be missed.” Express Pharma Pulse (Indian Express Group) “Such examples abound and that is what makes the book refreshing and interesting.” The Business Standard “He offers marketing wisdom distilled from studying communication strategies behind brand successes and flops.The case study format makes it lively.” Advertising & Marketing (A & M) "Brilliant, bright, blasphemous ....Blows much of what we have held to be sacrosanct—USP, marketing warfare, positioning—to smithreens…The author has captured the essence of successful marketing in this readable text,focusingon thepharmaceuticalindustry.” Elsa Davies (Fellow, Institute of Management, UK) The Factor
Praise for the Author and his Books The Rx Factor Kip Piper, Senior health Advisor to the White House Office, USA, has included The Rx Factor in his list of Top 10 books on Pharmaceutical Marketing. To view the list you may visit amazon.com at http://www.amazon.com/Pharmaceutical-Marketing-Bookshelf- Recommended-Piper/lm/2RUHJCQM7ERX0 How a Good Person can Really Win This book is for real people in the real world with insights, practical wisdom and a fresh perspective for everyone…the alternative of course, is to read up hundreds of books over tens of years! - Carolyn Marcille (Barnes & Noble, NewYork, USA) Pavan Choudary's passion for dwelling deep into the questions one feels remain unanswered, has ensured him a place amongst the foremost thinkers of the world. - The Times of India An invaluable, timeless treasure. Pavan is a megamind taking Indian thinking to refreshing new heights in the global arena. His works should be made compulsory reading for leaders, teachers and parents. - Dr. Kiran Bedi A Trilogy of Wisdom (on Chanakya, Confucius and Kabir) Each book in this collection of mini books has great depth…there is great insight on political sharpness, social gain and spiritual intelligence - to aid the ambitious soul. - Hindustan Times This book has been able to capture the spirit of Confucianism. It is most appropriate that it dwells on the social aspect of Confucianism. It talks of Social Harmony, which is key to Confucius. - Mr. Xei Fei (Cultural Head, Chinese Embassy)
Broom & Groom co-author Kiran Bedi Broom & Groom by proud Indians Kiran Bedi and Pavan Choudary is a collector’s item. A must on every book shelf. - Deccan Chronicle Indians and civic sense don’t often go together. That may change if our worthy countrymen take broom & groom to heart. -The Telegraph It addresses separate categories- students, government officials, and so on and the illustrations help make it a useful handbook for people who badly need it. -The Times of India Machiavelli for Moral People Want to read a politician like a book…read Machiavelli for Moral People. – The Tribune
PHARMACY COUNCIL OF INDIA (Constituted under the Pharmacy Act. 1948) Prof. B. Suresh, M.Pharm., Ph.D., D.Sc., President Combined Councils’ Building Kotla Road, Aiwan-E-Ghalib Marg P.B. No. 7020, New Delhi-110 002 Gram : FARMCOUNCIL Tel. : 011 23239184, 23231348 Fax : 011 23239184 Vice-Chancellor, JSS University JSS Medical Institutions Campus S.S Nagar, Mysore, 570 015 Tel. : 0821 2548391 Fax : 0821 2548394 sureshbhojraj@hotmail.com sureshjssuni@hotmail.com www.jssuni.edu.in October 10, 2009 FOREWORD Indian Pharmaceutical Industry with more than 26,000 companies and more than a lakh formulation need innovative and creative marketing strategies to sell them. Marketing, sales and distribution of Pharmaceutical Products are different from that of other overseas countries and most of the books available on pharmaceutical marketingaretheorybased. Pavan Choudary in this book, The Rx Factor gives a creative landscape of Pharmaceutical Marketing filled with innovative and practical marketing strategies. Many national and international journals have applauded his creative ideas in The Rx factor. Rating the book as one of the top three titles among 665 books on marketingexplainsitsstrengthandpopularityinternationally. The book is systematically divided into easily readable sections to understand the concepts of pharmaceutical marketing tinged with Hindu mythology. The way Mr. Pavan puts the concepts of marketing bubbled with lots of creative ideas, easily grabs the attention of the reader and creates an interest to complete the book. I strongly recommend this Rx Factor book for Pharmacy students. I am sure the pharmacy students will easily understand the concepts listed in the book and definitely make use of the creative ideas during their career in pharmaceutical marketing. I also recommend this book as a useful tool for sales force in the PharmaceuticalIndustry. I congratulate Mr. Pavan Choudary for his successful efforts in putting the concepts in a systematic and creative fashion. The book is written in a breezy style which makesiteasytoreadandunderstand. Dr.B.Suresh President
he pharmaceutical industry in India has a lot to teach a student of marketing. The competition, which has become Tfiercer in recent years, has sharpened the marketing styles of many companies. At the same time, the dissociation of the industry from advertising agencies, market researchers and other market- support organizations has left many noticeable chinks in pharmaceutical marketing. Owing to my background in both advertising and marketing, perhaps, I have been able to discern these gaps more clearly.Thisbookisanattempttofillsomeofthem. The foremost thing which a marketing professional needs to understand is his consumer, very much in the same way as a good doctor must understand his patient.The doctor can dispense the right prescription (or, in pharmaceutical parlance, the ) only when he has correctly understood the nature of the problem afflicting the patient. A successful is one that meets the intended purpose, namely, treat the patient by tackling the problem at hand. Similarly, the corner- stone of a successful marketing endeavour is an astute understanding of the market, which leads to a solution to the problems or exploitationoftheopportunitiesthemarketthrows up. A successful marketer must know the pulse of the market. He must be totally cognizant with the social and psychological profile of the customer. This knowledge and understanding of the market and the customer will determine what he needs to do to get his product 9 Introduction
10 accepted in the marketplace. It will govern his choice of prescription. This knowledge is the key to a successful marketing strategy, the correct prescription. A successful strategy is one that emanates from market realities and one that enables the marketer get his product prescribed or accepted. What distinguishes a successful marketing strategy from one that fails is precisely what I have chosentocallthe factor. For a marketing strategy to succeed in today's highly competitive marketplace, it is imperative that you adopt a strategy that is unique, innovative and creative, which will enable your product to stand apart. Without creative strategies you do not stand a chance of meeting the unprecedented levels of competition. But 'differentness' alone will not give results. 'Different-ness' with a purpose will certainly yield great dividends. What is therefore important is to be strategically creative with a predetermined purpose, not merely different. Thus, the factor is a purposive creative endeavour that emanates from a deep understanding of the realities of the marketplace. For convenience, I have divided the book into two parts. The first part, I hope, will provide you with an appreciation of the factor. The first three chapters in this part provide some of the vital charac- teristics of the factor as I understand it. Here I have given examples of both successful marketing strategies and those that have failed, and have shown how the distinguishing feature in all cases has been the factor - its presence or absence as the case may be. Here I have stressed on the need for adopting the right communication strategy and the importance of being truly creative in a strategic and purposive way, rather than being wayward or eccentric merely for the sake of wanting to be different. In the next two chapters I have discussed some techniques for generating strategically creative ideas and the importanceofthemarketplaceasareservoirforyourcreativity. The second part focuses on the creative execution of the factor. While Chapters 6 and 7 explore options to the commonly accepted concepts of unique selling proposition (USP) and marketing Introduction
11 warfare, Chapters 8 and 9 discuss two issues that appear to be extremely significant when introducing any new product in the market. The first focuses on the importance of giving the right brand name. The second deals with correctly pricing the product based on a proper understanding of the market and the consumer. The next chapter discusses the importance of credibility in advertising. Chapters 11 and 12 give ways to generate more productive flipcharts andpromotoolsandways toselectthemostpotentialdoctors. In this book, it has been my endeavour to suggest new, practical and creative directions in pharmaceutical marketing. My idea is to open the minds (and hearts) of the readers to creative thinking by changing the mindset. The issues I have discussed by no means cover all the areas in pharmaceutical marketing. But I do hope that I have beenabletoplaceafingeronthepulseofmarketingthought. Though the book has pharmaceutical marketing as its basic content, 1 have drawn freely from consumer marketing and advertising to infuse fresh ideas or to elaborate some points. As such, I hope that both pharmaceuticaland non-pharmaceuticalmarketing professionals, as well as people in the advertising profession will find some- thinginthisbookthatwould beofuse tothem. Introduction
PART A Understanding the Factor
The Creative Legacy ndian marketing came of age, ages ago. If you delve into the history of religion in India, you will be amazed at the marketing Iacumen of the propagators of Hinduism. Many of the concepts of marketing as laid down in the West in this century, possibly first foundtheirapplicationinRigvedictimes. Though the term 'unique selling proposition' (USP) was coined in America in the 1960s, its first application can perhaps be traced to Hindu mythology. The Hindu pantheon consisted of innumerable gods and goddesses. Many had a specific function and were supposed to satisfy a distinct need that they were called upon to fulfil. For example, Laxmi for wealth, Indra for rains, Saraswati for knowledge,andso on. Moreover, the process of product augmentation (a buzzword today in marketing circles) is exemplified beautifully when one sees that some Hindu gods have moods or profiles that can adjust to the needs of the supplicant or enhance the versatility of the deity. So, we have Durgatobestowgrace,Kalitodestroyevil. Hinduism thus offered a composite package of innumerable gods- one or more of whom could be chosen by the devotee. Now came the threat of 'cannibalization'. (Cannibalization, as we know, is a phenomenon where the sales of one product eats into the sales of anotherproductofthesamecompany.) CHAPTER 1 15
16 Understanding the Factor Hindu religion had to now ensure that the appeal of one god did not interfere with the popularity or acceptability of another. This delicate problem was beautifully resolved by the marketers of yore by bringing in the concept of 'Avataars'. That is, the supreme deity is born a number of times and the number of births matches the number of gods in the religion (even if this number runs into thousands!). This concept of Avataars ensured that in the same household two or more gods could be worshipped by different members of the household without religious differences cropping up. Thus, family members worshipping different gods could live in harmony. (See Figures 1.1, 1.2 and 1.3.) The concept of Avataars helped consolidatethecorporatemonopolyofHinduism. Creatively speaking, 'the imagination of our forefathers knew no bounds.Take Lord Shiva, for instance.What a versatile collection of features! He has three eyes, one of which opens only to destroy evil. He also has a serpent coiled around his neck, while a river springs fromhishead.Perhaps,heistheonlygodintheworldwho dances. The legacy is rich with a future that holds promise. During a recent visit to the Kashivishwanath temple in Varanasi, as I walked up the stairs, an eleven-year-old boy approached me. He was selling lottery tickets. His spiel went something like this-. 'Sahib, lottery ticket le lo. Bhagvan muradein puree karega, kismat chamkayega' (Sir, buy a lottery ticket. God will grant your wishes. It will make Fortune smile onyou.) Manyboughtlotteryticketsfromhim.Iwas noexception. The pitch was compelling. This little boy knew that the average Hindu has a contractual relationship with God.You give something, feed the brahmins, offer a cbaddar, and you can ask God for things in return. The boy knew that most visitors ask God for things. The hopes of a Hindu are high when entering a temple. Our young marketing man had chosen this strategic place to hawk his wares. Instead of harping on what attractive prizes could be won, the boy used a strategy that was different - he beckoned God. He instinctively knew his customer. Unknown to him, the factor was
The concept of Avataars helped consolidate the corporate monopoly of Hinduism FIGURE 1.1 FIGURE 1.3 FIGURE 1.2
18 Understanding the Factor at work. No wonder, then, that he turned out to be one of the largest sellersoflotterytickets. Creative marketing genius is native to India. Marketing runs in our blood. But are we utilizing this inherent instinct in us to its fullest potential? Is the present-day marketer as brilliant as his forefathers? Can we do better? This book tries to find an answer to some of these questions. The context is pharmaceutical marketing. The content draws also from marketing of over the counter (OTC) and consumer products.
Market-based Communication ow many pharmaceutical companies do you think there are in India? 10 ... 100 ... 10,000 ...? There are more than H26,000 pharmaceutical companies operating in the country today.And how aboutthenumberofbrands? 5,000...15,000...50,000? The landscape is, in fact, dotted with more than 100,000 brands which are being marketed in India. This does give an indication of how fiercelycompetitivetheindustryis. Why must a doctor prescribe your brand and not the hundred others containing the same salt? How can you ensure that your approach is strategic and yet different from what the others have tried? Especially, when it is likely that the communication strategy that you decide to choose could be akin to what quite a few other companies have been using.And to compound it all, the doctors you gotoarethesame.Theracebeginsnow. But let us not get off the starting block just yet. Before that let us examine what we really mean by a communication strategy, and why itisimportanttoadopttherightone. The Right Communication Strategy Let us look at the communication strategy of one of the most well- marketed antibiotic, ciprofloxaxin. Cost per tablet - Rs.8.50 for 19 CHAPTER 2
20 Understanding the Factor 500mg. Exorbitant!? Some marketers predict doom. However, companies such as Cadila, Cipla and Ranbaxy go ahead and launch theproductaggressivelyalloverIndia.Whowins? Ranbaxy. This company forged ahead and became the undisputed leader, cornering a market share of 27.3 per cent for its brand, Cifran. Cipla became runner-up with 18.8 per cent market share (see Table 2.1). If you compare the two companies in terms of the number and calibre of their representatives, their stockist network, promotools deployed, etc., there would be little to choose between them.Thenwhatmadeoneperformbetterthantheother? TABLE 2.1 Comparativeperformanceofthethreeleadingciprofloxacinbrands Product MAT (Crs) MS (%) CHG (%) Group totalcipro.oralsolids 275.5 100.0 -6.2 Cifran(Oct.1989)* Ranbaxy 75.3 27.3 6.1 Ciplox(May 1992)* Cipla 51.8 18.8 16.4 Ciprobid(August 1989)* Zydus 30.4 11.0 1.8 MAT—MovingAnnual TotalMS —MarketShare CHG—Change Launchdates Source:ORG IMS, 2009. Perhaps, it was the communication strategy that did it. Cadila and Cipla, both of which have histories of success, slipped up on this occasion. Ranbaxy established superior efficacy and justified the price (Figure 2.1). They positioned Cifran (a quinolone) against cephalosporins,aclassofexpensiveantibiotics. Rajiv Gulati, the man behind Cifran's success, feels that this juxtaposition was so strong that some doctors started thinking of ciprofloxacin as a fourth-generation cephalosporin. It was factually incorrect,butappearedrightperceptually. Their base line, ' Cifran—a reflection of your concern' was meant to handle objections to the high price. In fact, they used the high price to provide the doctor with a means to show his concern for his
21 patient. In turn, the doctor too, in his own mind, needed to justify the choice of such an expensive product. The base line was bang on target.The factorhadworked. Cifran was adjudged the best marketed product by the Product Management Group. Marketing pundits still scratch their heads in disbelief as the sales of this product reflects Rs 75.3 Crs annually (ORG 2009). Let us take another example. Revital, the Ginseng from Ranbaxy was launched when the total market for Ginseng was about Rs 10 million. A couple of companies which had entered this market in haste were repentant. Owing to poor positioning and because their products did not have extensive clinical trials to back them, they couldnotpenetratethemarket. Ranbaxy spotted a hole in the market. Conventional tonics had been catering only to the body and not mind. Revital was positioned as a tonicforboththemindandthebody.Thepositioningpaidoff. To tackle the lack of clinical data, Ranbaxy's first communication was: 'Revital—better experienced than explained.' The doctors were asked to try the product themselves. Doctors have for long recognized the placebo effect. (The placebo effect demonstrates that certain symptoms respond as much to the ritual of taking medicine as to the physical substance itself. In other words, it is the mind's influenceoverbodilyprocessesthatisatplayhere.) Several doctors tried the product. The presentation by the representative was strong, backed by premium pricing and good packaging (Figure 2.2.). The product seemed to work. Or was it just the placebo effect enhanced by the representative's aggressive spiel? In any case, the demands for clinical trials did not wane. Ranbaxy then commissioned a small clinical trial and went to town with it saying: 'We don't meet standards, we set them.' A few sceptic medicine men laughed. But the rest of the world bought Revital. It was the story of one great piece of down-to-earth communication Market-based Communication
FIGURE2.1 Ranbaxyjustified Cifran'spriceby comparingitwith cephalosporins
23 Market-based Communication andonegreatmarketingsuccess. According to Christopher Adams, the head of marketing at Glaxo, UK, a drug is only one-third hardware (by which he means the chemicals encapsulated in a pill and swallowed by a sick person). The rest, according to him, is software or 'communications' made up of the knowledge about the drug, which persuades the doctor to prescribe it, and the monitoring and pushing of the drug, which persuadesthepatienttokeeptakingit. TABLE 2.2 Comparativeperformanceof leadingginsengbrands Product MAT(Crs) MS (%) CHG (%) Ginseng products (Evans) 121.6 100.0 22.7 Revital(Jan. 89), Ranbaxy 106.8 87.9 26.8 Riconia-G(May. 05), Ranbaxy 4.2 3.4 -2.3 Trinergic (July,96), Unichem 3.9 3.2 -5.3 MAT—MovingAnnualTotal MS —MarketShare CHG —Change Source:-ORG IMS, 2009. The medical community, when convinced, lends overwhelming support. The sky, then, is the limit for a brand. The doctors blessed Revital, and it was off to a flying start. Today, Revital whose equity allowed the company to make it an OTC (over the countr) brand reflectsRs 106.8 Crores. This may appear like wishful thinking, a pie in the sky. But markets such as this do exist. The trouble lies with us—we are content with scratching the surface. Revital's success was based on a perceptive understanding of the market. When a marketer does not respect the reality of the marketplace, the market shows no mercy.What follows is an illustration of a mission that failed owing to this very lack of understandingofthemarketplace. The Pucca Structure —An Open and Shut Case One multinational aid agency identified open defecation as the main
FIGURE 2.2 Market-sensitive communication, strong presentation, premium pricing and good packaging helped Revital take off. Better experienced than explained
25 Market-based Communication reason for the poor rural health scenario in one of the states of India. So, it decided to sponsor a free pucca lavatory in each rural householdofsomevillages. A noble mission to curb defecation in the open. The lavatories were built but nobody used them. For reasons that would appear strange to someonewho didnotunderstandtherealitiesoftheland: • In most houses this was the only pucca structure so it was used to store grains which the normal structures with thatchedroofs couldnotprotectfromrain. • In some houses this free lavatory was covered up and convertedintoanadditionalroom. • Most importantly, because all houses were given near identical structures, the upper castes did not use them as this would reduce the gap in status between them and the other castes. They felt that their exclusive status would be jeopardized if they were to use the toilets. At the same time, the lower castes too did not use these because their reference group,theuppercastes,werenotusingthem. Such noble intentions, backed by big money!The scheme, of course, got'shuttered'.And defecationstilltakesplaceintheopen. Ranjana Subberwal, an eminent sociologist, observed a similar phenomenon in Rajasthan when a high-yielding variety of seed was being marketed to an audience of landless labourers! Out of sync withmarketreality,such schemesarebound tofail. Market-sensitive Communication A brilliant piece of market-sensitive communication is that of Calmpose. You know what it is for. So does the doctor. So do most patients. And there lies the rub. The brand is familiar; if the doctor prescribes Calmpose to a patient, he loses to some extent the aura of mystery surrounding his profession. The ad for Calmpose says: ' Calmpose—thebestisalwaysfamiliar'(Figure2.3)
26 Understanding the Factor Doctors know of the widespread awareness of the brand name. By saying, 'the best is always familiar' you tell them why Calmpose is familiar.Few doctorswould desistfromprescribingwhatisthebest. FIGURE 2.3 Calmpose making a strength out of a weakness TABLE 2.3 Comparativeperformanceof leadingdiazepambrands Product MAT(Crs.) MS(%) CHG% Tranquilizers 30.0 100.0 5.7 Calmpose(Sep.1969),Ranbaxy 12.7 42.3 3.7 Valium(Nov.1979),Piramal 11.1 37.1 7.8 MAT—MovingAnnualTotal MS—MarketShare CHG —Change Source:ORG IMS, 2009. To reinforce this concept, one flipchart asked; 'Should your patient forego the best just because it is familiar?' This communication thus was able to extend the maturity stage of the product lifecycle of Calmpose(Table2.3). These examples demonstrate that good communication strategies spring from and take care of the realities in the marketplace. Most communications from this company were impeccable. Having said this, take a look at the advertisement from Stancare, a Ranbaxy
FIGURE2.4 Nocomments! Youdecide
Prescribe Fasigyn FIGURE 2.5 Pfizer expands the amoebiasis market. Brilliant!
29 Market-based Communication group company (Figure 2.4). Objectively speaking, how do you react to its layout, its copy? Do you think such communication can possiblyproduceresults? Letus moveon tosomethingmorepositive. We now turn the pages of marketing history to a communication message that worked. 1992. The anti-amoebic segment was in the decline, and Pfizer's Fasigyn, though a late entrant. was the leader here (Table 2.4). Pfizer saw the downturn in 1992 and focused on expandingthemarketby suchcommunication(Figure2.5). TABLE 2.4 Comparativeperformanceofleadinganti-amoebicbrands Product MAT(Crs.) MS(%) Amoebicidesoralsolids 622.9 91.5 Fasigyn(Sep.1988), Pfizer 94.7 13.9 Metrogyl(Aug. 1972), Unique 83.5 12.3 Tiniba(Feb.1980),Alidac 29.1 4.3 MAT—MovingAnnualTotal MS—Market Share CHG —Change Source:ORG IMS, 2009. Today, the market is robust. Surely, this is partly because of Pfizer's efforts. Zydus Cadila, with its brand Tiniba, has beaten Pfizer in recent times and this is commendable; but Pfizer did grow the market. The company, with just 65 products, grosses Rs. 820 Cr. Remarkableindeed! To sum up, a successful communication strategy defines what is to be said. It springs from the realities in the marketplace. But while this is a necessary foundation for success, it is not enough.You also need a creative and unique execution of the communication strategy to succeed in the crowded pharmaceutical market. But is it possible to be creative while working within the narrow confines of strategy? Can we be strategically creative? This is what we explore inthenextchapter.
CHAPTER 7 Marketing Peace ut all marketing is warfare, or so they have said so far. In my view, marketing is both war and peace. Marketing is both Bwarandlove. However, only one facet of marketing has been expanded upon - war, attack, aggression. It is win-lose only. This is where we go wrong. The most clearly visible facet of marketing has been taken to covertheentiregamutofmarketing. One equally dominant, equally productive strain has not yet been discovered. The strain of peace - marketing peace. Marketing peace isanalternativemarketingoutlook. The concept of marketing peace has been in use since time imme- morial. I first recognized this concept when I delved into the history of religion in India. In the first chapter, we spoke of the concept of Avataars. This concept says that there is one supreme deity who is born again and again. Through this concept the Hindu religion ensured that the appeal of one god did not clash with the appeal of others. Individuals and households worshipping different gods could live together without religious differences cropping up. This conceptofAvataars isanexampleofmarketingpeace. Changing the Frame of Reference To understand the concept of marketing peace, we will look at the Hero Puch advertising campaign. But before that let us trace the 67
68 history of the Honda line of bikes because there is an important lesson here. Remember the Hero Honda commercial, 'Fill It, Shut It and Forget It' ? What a roaring success the bike was! Some years later the line was changed. Earlier, the product was in its growth stage on the product lifecycle and the fuel-efficient message was well communicated. Now, thousands of bikes were there on the roads to endorse the bike's credibility. Thus was born the 'You have got a good thing going' (Aap ka shandar hamsafar) (Figure 7.1). This commercial owes its genesis to a keen insight into buying behaviourand,ofcourse,somecommonsense. The advertiser understood that nobody bought a bike because of an advertisement. The likely purchaser went to the existing owners of bikes in his consideration set and sought their opinion. This behaviour was recognized and exploited through the advertisement. The advertisement gave the existing owner words to mouth about his bike. Later, the number of bikes sold was put up on hoardings so that the new prospect would feel very positive about the bike - so many people could not be wrong. Figure 7.2 shows the genesis of the Hero Honda advertisement and its progress. Note how the message changeswiththechangingstageoftheproductlifecycle. The next challenge before the company was to sell Hero Puch. With no Hero Puchs on the road, who was going to endorse the bike? The solutionwas tochangetheframeofreference. Thus was born the advertisement, 'Akele hoti hai har nai shuruaat. Agar shakti hai pass tumhare to zammana dega saath.' (Every new beginning is made by an individual. Others will follow if you have thepower.) By making the buyer of a Hero Puch a pioneer, the advertisement tried to change the schema of the existing behaviour pattern (Figure 7.3). You change the landscape rather than crowd the position everybody is rushing into. Thus by changing the frame of reference, you makeothersitesasattractive. Can you recall the Zara sa Rin advertisement that was aired some Creative Working of the Factor
Jingle: Hero Honda... Jingle continues: You’ve got a good thinggoing... Jingle continues: You’ve got a goodthinggoing...Hero Honda... MVO: Fill it. Forget it. (Music under)... Jingle continues: You’ve got a good thinggoing... Jinglecontinues:Hero Honda... MVO: Four-stroke makes all the difference.(Music under)... FIGURE 7.1 (Contd)
FVO: I like it. (Music under)... Jingle continues: You’ve got a goodthinggoing... MVO: Gaari ho to aisi... (Music under) Jingle continues: You’ve got a good thinggoing...Hero Honda... Jingle continues: You’ve got a goodthinggoing... Jinglecontinues:Hero Honda... MVO:Veryverysensible. (Music under)... MVO: What a bike! (Music under)... FIGURE 7.1 Market-sensitive communication makes Hero Honda the leader
FIGURE7.2HeroHondachangingmessagesastheproductmaturesontheproductlifecycle
72 years back? If you have used the product you will know that the bar melts rapidly. That was a weakness. This advertisement changes the frame of reference by converting this weakness into a strength. According to Rajiv Vij, the Senior Product Manager at Hindustan Lever, the advertisement was a roaring success, because not only did it make the most of a weakness, it also was suggestive of economyandpower. In the same league is a flipchart developed by American Remedies. Thecompanywas smallinsizebutbigin'thinkinput'. It had too small a range of products. This is how it changed the doctor's frame of reference.The following was the line the represen- tativewas tosaythroughtheflipchart. ‘Sir, efficacy, safety and convenience are the three attributes which you look for in a drug. That is why, though there are hundreds of moleculesavailable,youwritejustafew. 'Similarly, Sir, efficacy, safety and convenience are the three parameters we look for in a drug that we market. That is why though there are thousands of formulations to market, we sell just a few. This isAmericanRemedies...' In any product category where product lifecycles are short, product obsolescence common and new product introduction rampant, changing the frame of reference is a very useful though little used technique. You keep your product's appeal current and alive by redefining the prevailing schema. This also helps you avoid a dogfight. Changing the frame of reference is thus one illustration of marketingpeace. Promotional Cartelization The word 'cartelization' has negative connotations. Cartelization usually refers to price fixing, stock cutting, debarring other entrants, andso on. But it offers potent avenues for the use of marketing peace. If you Creative Working of the Factor
VO: Hero naye yug ka - Aamir Khan (The new generation hero - Aamir Khan) MVO: (A. Khan): Akele hoti hai har nayi shuruaat agar shakti hai paas tumhare to zammana dega saath (Every new beginning is made alone. If you have the power, the world willbewithyou) Music: To zammana dega saath... (Theworld willbewithyou) Music continued Music: Akele hoti hai har nayi shuruaat... (Everynewbeginningismadealone) Music: Tumhare pass hai shakti (If youhavethepower) FIGURE 7.3 (Contd)
Music:Hero haihero Hero Puch... (Hero Puch isahero) Music: Naye yug ka hero. Hero Puchnayayugnayishakti... (Hero Puch is the hero of the new generation. New generation. New power) MVO (A. Khan): Aur zammana degasaath... (And theworldwillbewithyou) VO &Music:HeroPuch FIGURE 7.3 Hero Puch - Beyond positioning. Changing the frame of reference
75 canthinkofanewtypeofcartelization-promotionalcartelization. Let us take a case. Typhoid can be prevented. There are at least two companies in India which are marketing typhoid vaccines which can prevent the disease for a particular number of years. But, unfortu- nately, typhoid is not considered as serious an infection any more by themedicalcommunity. The doctor today has antibiotics that can take care of typhoid in just five days, with the overall cost of therapy running to less than Rs 50. Moreover, many of these antibiotics virtually guarantee hundred per cent results with no relapses. At present, the vaccines are pegged at Rs 275 (for an oral dose of three tablets) and Rs 400 (for an injec- tion). Both companies are at each other's throats to prove how their formisbetter. A lot of energy is going waste. Can it be fruitfully channelized to provide the marketers larger gains? Yes, through promotional cartelization. How? Rather than fighting each other, if these companies were to fight the current perception in the doctor's mind that typhoid is not a veryseriousdisease,therewouldbesynergy.Therewillbesuccess. If the fact that it is much better for a patient not to suffer from the infection (though it is controllable) could reach the doctor's mind effectively, far more sales for these companies could be generated thantheycansnatchfromeachother. Teaming Up for Mutual Gain A potent avenue for marketing peace is co-promotion. The pharmaceutical industry has just begun to exploit this area. Companies are realizing that product usage can be extended to market segments and geographical areas not being effectively covered if they were to team up with companies that are strong in areas where they are weak. Another area where the concept of marketing peace is working well Marketing Peace
76 is that of strategic alliances in research, Glaxo and Searle have formed such an alliance which is working for the advantage of both. IBM, Motorola and Apple Computers have been collaborating on the power chip. Hewlett Packard has a partnership with Canon for laser printers - Canon develops the engines for splitting ink on the page, while Hewlett Packard develops software, microcontrollers, customerresearchandmarketing. Claiming Higher Ground Marketing peace is a valuable concept because there is much unclaimed territory in the market today. However, how often do we indulge in expensive and wasteful fighting to snatch what is some- one else's? It happens in all industries. Take the example of media. Magazines the world over have been trying to take on television channels. However, if a magazine group could instead tie-up with a television channel to offer special rates to those who subscribe to both, it could be a win-win situation. Peace! In fact the largest magazines in USA is one which tells people about programs which willappearonTVintheforthcomingweek. Many markets all over the world are in their infancy. Unclaimed green pastures are waiting to be acquired. This fact is overlooked. We assume full adulthood of the market. It is wrong to believe that it is necessary to fight to win. But mostly, one must have the sight, the vision, to win. With vision most wars can be avoided and precious resourcesconserved. The markets are not saturated. Our minds are saturated with theideathat allmarketingiswar. Take the example of the Carefree advertisement - 'Dhona, sukhona, banana ab gaya vo zamana' (Washing - drying - gone is that era.) (See Figure. 7.4.) Also note how the line 'Akhir unhe bhi to pata chale ki hum bhi modern hai (Let them also know that we too are modern) taps into a common Indian instinct of status. It may be argued that though you are not fighting these categories, you are fighting others. But you need to understand that times have changed. Creative Working of the Factor
Video:Ayoung girl is being teased about hermarriage. Audio: Aur Pooja, naye ghar mein jaa karapnipuranimausi komathbhoolna (Pooja, don’t forget your old aunt when yougotoyournewhome.) FIGURE 7.4 (Cond) Video:Hereldersisteradds Audio: Jahaan itni nayee baaten sun raheehai... (Where you’re hearing so many new things...) Video:Close-upofCarefreePack Audio: Ek zaroori baat sun! Yeh hai Carefree (Listen to something important. This is Carefree.) Video:Hereldersistercontinues... Audio: Kyonki main janti hoon... Vahaan nahi chalega purane style ka dhona, banana... (Because I know that there the old style willnotdo.Washing,making...) Video:Sheshows aCarefreenapkin Audio: Carefree ek readymade napkin hai... (Carefreeis areadymadenapkin...)
Video:Aclose-upas she continues Audio: Jo zyada sokhe aur poora saaf dryfeelingdey (Which soaks more and give a clean and dryfeeling) FIGURE 7.4 Another example of marketing peace Video:Sheshows theelasticbelt Audio: Aur saath main yeh napkin ko hilneynadey (And thiswillkeepthenapkininplace) Video:Thebridetobegiggles Audio:Didi! (Sister!) Video:Theeldersisterretorts Audio: Aakhir unhe bhi to pata chale ki hum bhimodern hain (Let them also know we too are ‘modern’) Video:Packshortsuper Audio: Carefree belted sanitary napkin dhona, banana, sukhana ab gaya woh zamana (Carefree belted sanitary napkins... Gone are the days of washing, drying and making...)
Bahadurbachchonkipehchaan (Thesymbolofbravechildren) Antarrashtriya Handyplast (InternationalHandyplast) Handyplast Duniya bhar mein bahadur bachchon ki pehchaan - Handyplast (The symbol of brave children the world over - Handyplast) FIGURE 7.5 Handyplast - A medal for bravery. Ingenious!
80 We have moved from the disposable concept of income to the discretionary concept of income. There is greater purchasing power available today. Most small-ticket purchases are impulsive. You don't always buy one thing and then have to go without the other. In such a scenario, is it necessary to battle head to head with your competitor?Isn't thereahigherground thatisabovestreetfighting? Take a look at this ingenious Handyplast 'bahaduri ki patti' advertisement (Figure 7.5). It exploits the fact that every child likes to feel that he is brave and display his valiance to the world. Therefore, he uses a plaster even when it is not called for. It is his way of showing off. The advertisment exploits this and tries to market Handyplast as a cosmetic - a medal of bravery for the child - without attacking other products. Marketing peace. (I only wish they used the brand namemoreoften.) But, all said and done, marketing peace is a path of great resistance which is difficult to find. It needs a high degree of creative search. It needscourage.Bahaduri. Creative Working of the Factor

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