Pharmaceutical Marketing Management

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Pharmaceutical Marketing Management

  1. 1. By: Sheraz Pervaiz B.Sc, MBA (Mkt), CPM (Asia) Pharmaceutical Marketing Management
  2. 2. ANALYSIS OF PAKISTAN PHARMA MARKET
  3. 3. 1. Total Pakistan Pharma Market is US$ 2.177 Bn and the total World Market is estimated to be around US$ 900 Bn. 2. CAGR of total Market (13 Vs 09) in Pak Rupee is 16.00% and in US $ is 10.22% 3. Total Pakistan Pharmaceutical Market reached Rs. 215 Bn in 4. Top 11 Corporates have reached the Rs.5 Bn mark and contributed 49.22% market share 5. Top 50 Corporates market share is 86% and top 100 Corporates share is 95.95%. 6. New Products launched in last 12 months are 398 ( MNC 20 & NAT 378)
  4. 4. Total 118,855 135,022 161,325 184,906 215,198 16.00 NATIONAL 64,618 73,513 90,347 104,797 124,483 17.81 MULTI- NATIONAL 54,237 61,509 70,977 80,109 90,716 13.72 Rs. Mn.
  5. 5. Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 SALES 153,650, 161,324, 167,505, 172,699, 180,051, 184,906, 192,898, 200,254, 206,629, 215,198, VALUE GROWTH 16.50 19.48 19.46 17.72 17.18 14.62 15.16 15.96 14.76 16.38 UNIT GROWTH 8.53 10.65 11.26 9.31 8.96 5.95 5.49 6.22 4.80 7.80 153.65 161.32 167.51 172.70 180.05 184.91 192.90 200.25 206.63 215.20 16.50 19.48 19.46 17.72 17.18 14.62 15.16 15.96 14.76 16.38 8.53 10.65 11.26 9.31 8.96 5.95 5.49 6.22 4.80 7.80 Growth +/- % Value (Rs. Bn)
  6. 6. 2009 2010 2011 2012 2013 56.68 56.87 57.30 57.62 57.85 43.32 43.13 42.70 42.38 42.15 NATIONAL MULTI-NATIONAL  NATIONALs GRADUALLY SNATCHING THE VALUE SHARE FROM MNCs
  7. 7. 0 40 80 120 160 65 70 73 74 90 110 136 136 192 196 THERAGRAN ULTRA GSK AMCLAV GTZ OEM IND QUFEN HQI FIXVAL GSK ONE-3 HQI PRIORIX-TETRA GSK INOSITA PLUS PV- FREEHALE HQI 2SUM SAM Value Rs. Mn Within the Top 10 New products (3 products of MNCs and 7 from Nationals), 1 product belong to Specialized class/ High price product AMCLAV (AMOXICILLIN + CLAVULANIC ACID) NOV 2011 OEM (CITRIC ACID +GLUCOSE+POTASSIUM) OCT 2011 THERAGRAN ULTRA (FOLIC ACID+ASCORBIC ACID+BIOTIN) JUN 2012 QUFEN (DICLOFENAC) MAY 2012 PRIORIX-TETRA (VACCINE, MMR) NOV 2011 ONE-3 (ARTEMETHER+ LUMEFANTRINE) JAN 2012 FIXVAL (CEFIXIME) NOV 2011 INOSITA PLUS (SITAGLIPTIN+ METFORMIN) 102011 FREEHALE (MONTELUKAST) 22012 2SUM (CEFOPERAZONE+SULBACTAM) 42012
  8. 8. Pharmaceutical Industry
  9. 9. Pharmaceutical Industry Characteristics  Highly Competitive but Fragmented industry.  Complicated business model with numerous stakeholders .  Very Technical/Scientific products.  Major R&D expenditures and High Risk product development environment .  Long Product-Development Timelines.
  10. 10. Pharmaceutical Industry Characteristics  Long Marketing-Planning horizons  Highly regulated industry and highly regulated marketing communications by FDA  Primary targets: Healthcare Professionals and Consumers  Numerous “customers” with variety of information needs requires multiple approaches to creating marketing campaigns and communications  Evolving selling environment.  Use of e-channel still in its infancy in our industry
  11. 11. Role of Marketing • Recommend development • Define product profile needs • Define competitors • Develop market • Develop strategy • Input on product labeling • Recommend filing strategy • Define launch plan • Develop positioning and branding • Finalize strategy • Finalize pricing • Finalize promotion and branding • Implement launch campaign • Finalize field sales plans • Monitor performance • Adjust strategy and tactics • Sequence promotion • Manage product life cycle • Provide background on market and product potential STAGES OF PRODUCT DEVELOPMENT Post launch Marketing Product Launch Regulatory Approval Clinical Studies Basic Research
  12. 12. Corporate Info Customer Focus Fully Integrated Information & Services Corporate, Product Focus Discrete Sets of Information Where industry is moving in the future? Towards more integrated offerings Product Info Limited Interactivity Customization Personalization High Trust High Value Relationship Brochure ware Enriched Product and Medical Education sites PULLPUSH
  13. 13. Branding in the Pharmaceutical Industry
  14. 14. Market Research Marketing Communications Customer Marketing Pricing Analysis Business Development Professional Sales Brand Management is the HUB of Pharmaceutical marketing Brand Management Medical Services
  15. 15. Pharmaceutical Branding
  16. 16. Branding in Pharmaceutical industry:  Pharmaceutical industry takes long-term brand building very seriously.  This is because of the characteristic of the industry.  Prescription only medicine sector is contributing around 90% of global pharmaceutical revenue.
  17. 17. History of Branding in Pharmaceuticals
  18. 18. History:  Over 100 years ago, Thomas Beecham recognized the importance of Branding his safe and effective laxatives “Beecham pills”  This started a new trend in the marketing of medicine attaching a personal guarantee of the product’s effectiveness.  As knowledge grew and medicine began to become effective for a whole range of previously untreatable symptoms and conditions.  So the Pharma Industry prospered.
  19. 19. Marketing and Sales Roles in the Pharmaceutical Industry ?
  20. 20. The “Marketing Concept” in Pharmaceuticals Key Principles  All the resources of the firm are organized into a total system aimed at meeting the needs of the consumer  The role of marketing is to influence or direct activities from the manufacturer to the patient:  The right products  In the right quantity  At the right place  For the right price  At the right time
  21. 21. Unique Aspects of Pharmaceutical Marketing and Sales  Influence of non-purchasers on the purchasing habits of the consumer  Veto/authorization power of physicians – consumers need an authorized document to purchase a prescription drug  Importance of the disease to identifying and classifying markets  Professional licensing required to stock and sell pharmaceutical products  Records of every transaction are kept that are specific to:  Patient  Physician  Product
  22. 22. Market Research  Environmental scanning:  Physicians  Pharmacists  Pharmacies  Hospitals  Data gathering and analysis  Influence of unique aspects of the pharmaceutical market on market research:  Known list of entities  Knowledge-based decisions  Similarities in education and thinking (professionalization)  Availability of records for transactional activity
  23. 23. Types of Market Research Periodic Surveys Retail Pharmacy Purchases Hospital Purchases Warehouse Withdrawals Journals Physician Panels Retail Pharmacy Prescriptions Retail Pharmacy Sales
  24. 24. ROLE OF SALES TEAM
  25. 25. Sales Roles Detailing  Face-to-face visits to physicians or purchasing managers (e.g., hospitals, HMOs) to present new prescription drugs  Influence prescribing habit  Increase current prescription usage  Deliver samples  Build relationships with doctors  Get drug into a formulary; “pull through” Sample Management  Track delivery of prescription drug samples to physicians or other purchasers
  26. 26. Effective Detailing Influences on Physician Prescribing Habits Source: IBM Analysis Side Effects Drug delivery method Cost of drug Efficacy Potential drug- drug interactions Dosage Pay or formulary status Brand Personal preference Patient request
  27. 27. Today’s Breakfast ???
  28. 28. Detailing Challenges - Physician Concerns 20% Not enough samples 28% Not enough medical expertise 40% Take too much time 44% Too many from the same company Inconvenient timing Biased information “What are your top complaints about detailers? Source: The Forrester Report: “Pharma’s Detailing Overhaul”, February 2001 (IMS Health, Scott-Levin, Forrester Research, Inc); (Ziment/WebSurveyMD.com); IBM Analysis • “I view them as the liaison but I don’t take them at their word all the time” • “I hate negative marketing. The lack of objectivity is a big turnoff for me” • “If they keep coming back with the same information, it’s a waste of both parties’ time” • “I appreciate the information, but the reps can be pushy” • “The thing I dislike the most is when the rep doesn’t appreciate that I am busy and still tries to pitch the drug to me” • “I don’t believe that someone with a bachelor’s degree knows more about how a drug works than I do” Physician Comments 78% 47%
  29. 29. OTHER MARKETING & SALES TECHNIQUES
  30. 30. Key Opinion Leader Management  Expert physicians -- often called "opinion leaders" or "thought leaders" -- play critical roles in driving pharmaceutical sales  Participate in ongoing R&D  Have privileged access to R&D information  Company-sponsored featured speaking engagements at prestigious conferences  Exchange ideas with other physicians regarding new products or indications or adverse events  Helps convince other doctors to prescribe new products and can make the difference between a successful product launch and a major disappointment
  31. 31. Other Tools:  Medical Group Meetings (MGM’s)  Round Table Discussions (RTD’s)  Local Speaker Programs (LSP’s)  Foreign Speaker Programs (FSP’s)  Ward Presentations (WRP’s)  Chamber Presentations (CMP’s)
  32. 32. Thank You

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