Multiple stakeholder engagement        - Encounters of a different kindEmerging Markets Commercial Excellence 2011,Berlin ...
DisclaimerThe views expressed in this message are made in an individualcapacity and do not necessarily reflect those of Sa...
Measure of economic activity...
If that was not enough, more proof…Awareness     35 … 50… 70… Billion $ by 2020        Usage            Use of fruits in d...
Next 40 Minutes…               India : First things first               The Demigods : Doctors               Key accounts....
Vast : Country              Diverse : Demographics         Varied : Requirements                Challenging : MarketLife  ...
Contradictions galore!9th Rank GDP(nominal)      124th Rank PPP*.Pc.GDP4.5% of Global Billionaires 400 Mio earn < $1 day11...
~1,210,000,000 plus population of India across 28 states  ~6,88,000 qualified doctors ~ 90% are GPs in India       ~5,50,0...
Indian Patent Act        Generic Storm      MNC to IndianBottom of the Pyramid   Volumes over Values   Indian to MNC
Government policies…Process Patent (1972) to Product Patent: 2005FDI 100% in Pharma Sector to continueNational list of Ess...
The playing field            Metro          30% of                         Population            Class I    60 % of Pharma...
Strategic imperatives….MNC                                   Indian                Value       Volume            Class    ...
The Classic divide                    MNC                      IndianCustomers   ~ Specialty Oriented   ~ CP, GP, Specialt...
The Demigods                 Vaidyo ( Doctor ) Narayano Hari* ( The God )                 Brahmanical Restraint: Knowledge...
Rx ethos are influenced bySpecialty : Competition intensityPlace of PracticePatient profilesAcademic institutions and KOLs
What worked…  Specialist               Win the hearts, right and the left brain  Consultant               Right, left Brai...
What may work..                                                   SFE Traditional representation still works !   Training ...
Insights on the Indian version of Key Account Management:Discover the real potential in hospital and institutional business
Key accounts dynamics                       Partnership            Quasi Govt.                                      Corpor...
India KAM Version 1.0                                              Define KAsMatch opportunity with capability   Local    ...
Corporate HospitalsWorld class facilities : Class n mass dilemma             Package deals for patient : Cut cornersPharma...
~70%           of India40% of Pharma    Lives here !
Drivers of growthRapid urbanization : awarenessRise in disposable incomesGovernment sopsIncreased accessibility
Key stakeholder’s influence            Urban            Rural            Urban            Rural            Urban          ...
40% Pharma has 4 key challenges!             Knowledge gap               Affordable   Educate                             ...
Profitable reach through partnerships Shared FTEs: Reach to DoctorsShared CMEs , Digital mediaDistribution : Rural penetra...
Yet, face the perpetual question…                              Is the brand                               Available ?     ...
Metro and Tier I      Tier I and II   Tier II to Rural           Hospital Distribution is as busy and confusing as this sl...
Supply chainCosts around 4-6% of Total sales Vs. 2% in US and EURespecting norms & relationship with associationsBuild net...
!ndia
Individual and Image credits My Wife, Syamala and My collegues M/S Amlesh Ranjan , Venkatesan Subramanian   Slide 2 : E...
ThanQksatyamahesh@gmail.comMahesh.Satya@Sanofi.com    +91 9819 62 01 62
Emerging Markets commercial excellence ConferenceVenue: Hotel Bristol Kempinski , Berlin
CDM Emerging Markets on Twitter@CDMinEM New York, NY
Len Starnes               Digital healthcare consultant,• @lenstarnesLen Starnes• Encounters of a different kind Mahesh Sa...
End of Presentation
Indian Pharma - Key Stakeholders
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Indian Pharma - Key Stakeholders

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Presentation at Eyeforpharma’s Emerging Markets Commercial Excellence,Berlin,November,2011 on Key Stakeholder Management-Indian Pharma

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Indian Pharma - Key Stakeholders

  1. 1. Multiple stakeholder engagement - Encounters of a different kindEmerging Markets Commercial Excellence 2011,Berlin Satya MAHESH, India
  2. 2. DisclaimerThe views expressed in this message are made in an individualcapacity and do not necessarily reflect those of Sanofi(the“company”) or any of its affiliates. Neither the company norany of its affiliates assumes any responsibility or liability ofany use which may be made of any views expressed here in.
  3. 3. Measure of economic activity...
  4. 4. If that was not enough, more proof…Awareness 35 … 50… 70… Billion $ by 2020 Usage Use of fruits in daily life by Pharma execs (Apples and Blackberries!!) Incremental Number of visitors from Global HQ
  5. 5. Next 40 Minutes… India : First things first The Demigods : Doctors Key accounts...true potential Beyond traditional territories Supply chain snapshot
  6. 6. Vast : Country Diverse : Demographics Varied : Requirements Challenging : MarketLife Lifestyle IIM Prof. Subhash Mehta in his book "Indian Consumer"
  7. 7. Contradictions galore!9th Rank GDP(nominal) 124th Rank PPP*.Pc.GDP4.5% of Global Billionaires 400 Mio earn < $1 day11% of Global Gold One thirds World’s poorHigh Quality medicines Low cost medicinesPharma :3rd by Volume 14th by Value *Purchasing Power Parity
  8. 8. ~1,210,000,000 plus population of India across 28 states ~6,88,000 qualified doctors ~ 90% are GPs in India ~5,50,000 pharmacy retail stores across ~1,00,000 pharma field force ~90,000 formulations ~65,000 distributors ~60,000 Rx-brands ~23,000 Orgs. ~78% OPE* ~ € 9.5 BillionPharma Market *OPE: Out of Pocket Expenses
  9. 9. Indian Patent Act Generic Storm MNC to IndianBottom of the Pyramid Volumes over Values Indian to MNC
  10. 10. Government policies…Process Patent (1972) to Product Patent: 2005FDI 100% in Pharma Sector to continueNational list of Essential Medicines(348), 2011National pharmaceuticals pricing policy, 2011Code of Marketing Practice for Indian Pharma,2011No DTC in India : Family planning , health awareness
  11. 11. The playing field Metro 30% of Population Class I 60 % of Pharma Tier II & 70% of Rural Population 40 % of Pharma
  12. 12. Strategic imperatives….MNC Indian Value Volume Class Mass Global Local Urban Rural
  13. 13. The Classic divide MNC IndianCustomers ~ Specialty Oriented ~ CP, GP, SpecialtyGame Concept selling Brand Selling Value Volume and ValueBrands Mostly Research Branded Generics Molecules in focused Brands across major Therapy Areas Therapy areasPortfolio Small Extended PortfolioPrice and High and Low Low and HighMarginsPolicies Global or Glocal Made In India
  14. 14. The Demigods Vaidyo ( Doctor ) Narayano Hari* ( The God ) Brahmanical Restraint: Knowledge above money Offer Value – else it’s a sales call WIIFM? *WIIFM - What Is In It For Me?* In the right context and quote it means “ The God is the only Doctor”. However ,this is colloquial
  15. 15. Rx ethos are influenced bySpecialty : Competition intensityPlace of PracticePatient profilesAcademic institutions and KOLs
  16. 16. What worked… Specialist Win the hearts, right and the left brain Consultant Right, left Brain and “the leg work” Generalist “Legwork” and then the Brain
  17. 17. What may work.. SFE Traditional representation still works ! Training Frequency is understood as importance yet, face the question “What’s new?” MarketingPatients first .. you are still not a partner
  18. 18. Insights on the Indian version of Key Account Management:Discover the real potential in hospital and institutional business
  19. 19. Key accounts dynamics Partnership Quasi Govt. Corporate QuantumPrice Government Per Private Account Profit Illustrative
  20. 20. India KAM Version 1.0 Define KAsMatch opportunity with capability Local It’s right price and big Margins PartnerCo-Creation of value
  21. 21. Corporate HospitalsWorld class facilities : Class n mass dilemma Package deals for patient : Cut cornersPharmacy is a profit center Corporates are going rural
  22. 22. ~70% of India40% of Pharma Lives here !
  23. 23. Drivers of growthRapid urbanization : awarenessRise in disposable incomesGovernment sopsIncreased accessibility
  24. 24. Key stakeholder’s influence Urban Rural Urban Rural Urban Rural * Graphs are notional
  25. 25. 40% Pharma has 4 key challenges! Knowledge gap Affordable Educate Go Local Doctor Drugs Patient Disease Diagnostics Awareness Partner Prevalence Availability
  26. 26. Profitable reach through partnerships Shared FTEs: Reach to DoctorsShared CMEs , Digital mediaDistribution : Rural penetrationLocal sourcing, pricing, discounting
  27. 27. Yet, face the perpetual question… Is the brand Available ? Will the Doctor Prescribe?
  28. 28. Metro and Tier I Tier I and II Tier II to Rural Hospital Distribution is as busy and confusing as this slide C&F AgentYet, ~ 50% of people can not access(not affordability) Stockiest Wholesaler
  29. 29. Supply chainCosts around 4-6% of Total sales Vs. 2% in US and EURespecting norms & relationship with associationsBuild network over a period of time : Cipla ,MankindIdeal admixture of Brands, Generics and OTCInnovations required to maintain cold chain
  30. 30. !ndia
  31. 31. Individual and Image credits My Wife, Syamala and My collegues M/S Amlesh Ranjan , Venkatesan Subramanian Slide 2 : Earth at Night by NASA : Page Last Updated: April 2, 2009,Page Editor: Jim Wilson,NASA Official: Brian Dunbar Slide 4: Mc Kinsey ,PWC Reports Slide 8 : Time Cover Photo by Arthur Hochstein. Woman by hill street studios-getty images blend collection Slide 10 : Cover images from Alvyn Toffler’s books Published by Random House Slide 12 : Photo on Top: USA today Article : Indian doctor Praveen Chandra checks on American patient Greg Goodell after his successful heart operation at New Delhi hospital. Photo on right :The Hindu Article Photo: Singam Venkataramana Slide 17: Image: photostock / FreeDigitalPhotos.net Slide 24 : Publisher: Pearson Prentice Hall Icons : Iconarchive.com Slide 5,6,9,13,16,:25,28 : Unknown Photographers
  32. 32. ThanQksatyamahesh@gmail.comMahesh.Satya@Sanofi.com +91 9819 62 01 62
  33. 33. Emerging Markets commercial excellence ConferenceVenue: Hotel Bristol Kempinski , Berlin
  34. 34. CDM Emerging Markets on Twitter@CDMinEM New York, NY
  35. 35. Len Starnes Digital healthcare consultant,• @lenstarnesLen Starnes• Encounters of a different kind Mahesh Satya, Sanofi Aventis, talking about pharma mkting challenges in India #emce2011• Anything you say about india is true Mahesh Satya #emce2011 #india• 688,000 doctors in India, 90% GPs#emce2011 #india Retweeted by AnnBartlett• Indian gov trying to align what is ethical with what is legal in pharma#emce2011 #india Retweeted by DocGlobal• 30% Indian pop live in cities but account for 60% of pharma business #emce2011 #india• In India there are Visa Gods ...Mahesh Satya #emce2011 #India• In india if pharma sales rep cannot offer knowledge to doc, he/she will ask: whats in it for me #emce2011 #India• Partnerships are key to success for MNC pharmas in India #emce2011 #India
  36. 36. End of Presentation

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