Case: Unlocking the direct to consumer potential of dermatological products in India Organization: Abbott India Limited

1. ABBOTT BUSINESS
CHALLENEGE 2.0
IMT Blitzkrieg
Purvashri Vora
Priyadarshi Gangopadhyay
A vision to discover new ways to manage health

2. CONTENT
01
Set the context
02
Research Findings
03
Market Analysis
04
Targeting and Positioning
05
Promoting Offline Sales
06
Promoting Online Sales
07
Expanding to Rural Markets
08
‘Abbott’ Our Idea : 200 in 2020

3. Setting the Context.
Articulating the key elements within the framework of the
business case let

4. 4NEW
ARRIVAL
OBJECTIVES
01.
ASSUMPTIONS CHALLENGES
IDENTIFIED
WAY
FORWARD
02. 03. 04.
Sales Growth : Triple sales
(value wise) in 2 years
from Rs. 67.1 Crs. to Rs.
200 Crs. for the 3 brands
mentioned in the case let.
Evolve a sustainable
strategy to achieve
the objectives
mentioned above.
Tap the untapped OTC
markets for
cosmeceuticals /
dermaceuticals in India
All macro-economic factors
are aligned favorably to help
achieve this goal.
The entire blitzkrieg will be
backed by resources from
Abbott – Time, manpower,
funds.
With increasing awareness,
education and disposable
income, the Indian
consumer is ready to
change.
A risk of devaluating a
predominantly Rx brand and
losing Rx coverage from
doctors.
Competing not only against other
pharmacological formulations,
but also against other treatment
solutions such as functional
foods, beauty/cosmetic products,
alternative treatments and
nutritional products.
Sustaining patients through the
course of the treatment which
lasts around 3 – 6 months i.e.
retaining customers and their
confidence is an issue.
Go the FMCG route and identify
steps to be taken to ensure
wide acceptance, distribution
and usage.
Identify market trends and
build a target consumer profile
for Abbott’s Follihair, Selsun
and Melaglow brands.
Develop inroads into offline
and online markets keeping in
mind both the urban and rural
consumers especially their
attitudes and usage.

5. Research Findings.
What we learnt and applied from the primary and
secondary research

6. - Men, 18-25, spend more than
women on grooming and personal
care products.
- Women, 18-25, roughly spend Rs.
200 - Rs. 500 per month on
dermatological products
- Increase in awareness and desire to
look good  Increase in consumption
of cosmetics
- ‘Natural’, ‘organic’, ‘botanical’, ‘free
from’ some harsh chemical, and even
‘religious compliance’ lead to
purchase of personal care products
- Online purchase preference in urban
areas: 62%
- Fairness and ‘flawless’ skin a big
concern amongst the 18-25 age
group
- Self-diagnosis and self-medication
is a trend, especially in problems
dermatology
- Lack of faith in most
cosmeceutical / dermaceutical
claims
- Believe treatment is symptomatic
in nature
! AVERAGE SPEND ON SKIN AND HAIR
CARE
MILLENNIALSCONSUMPTION PATTERNS
MEDICAL HELP FOR DANDRUFF
AND RELATED ISSUES
- 56% of the people surveyed were prone to
dandruff
- Of these, 23% visited a doctor for
treatment
- 1 out every 4 women who suffered from
dandruff within our primary research, also
complained of acne and acne scars

7. • Primarily due to hormonal
imbalances
• Male scalp produces 50% more
sebum than female scalps
• Frequent shampooing, lack of proper
haircare and age are secondary
reasons
• Indian Fairness Market: Rs. 800 Crores
• 73% of men interviewed: Fairness =
Beauty
• High awareness that OTC fairness
creams have bleach which is harmful
in the long run
• Rural youths are open to fresh
concepts
• Doctor-to-patient ratio across the
country is at 1 doctor for 1700
people skewed heavily in the favour
of cities
• Remarkable acceptance and
improvement in the form of
products used
• Trials and experimenting
households are not restricted to the
most affluent in villages
!
PITYRIASIS CAPITIS I.E.
DANDRUFF AFFECTS MEN
PRIMARILY.
TRENDS IN RURAL INDIA
THE INDIAN PHENOMENON THAT
IS ‘FAIRNESS’
TAN REMOVAL
• Tan removal > Fairness in
importance and prevalence
• On-the-field jobs, exposure to
pollution and sun for long hours =
Tanning

8. Market Analysis.
Understanding the market for OTC and its impact on
consumer buying behaviour

9. On analyzing the OTC market in India and the situation
surrounding this market using various marketing tools, the
following was highlighted:
Total OTC Market in
India was worth
$6292 million
2016
2014
1
4
2
3CAGR 14.6%
2016
Reach $12440 million
2021 Marketing costs are
high
65%

10. CATEGORIES MARKET DRIVERS
MARKET
RESTRAINTS
CURRENT
OPPORTUNITIES KEY CHALLENGES
• Cough, cold, and
allergy
• Analgesics
• Dermatological
• Gastrointestinal
• Rise in awareness
• People are looking for
quick and easy solution
• Rising disposable income
• Product Innovation and
Promotion
• Shift In Consumer
Attitude Towards Self-
Medication
• Rise In Geriatric
Population
• Affordability
• Drug abuse
• Restrictions in
distribution
• Restrictions
against over the
counter antibiotics
usage
• Companies willing to
shift to OTC
• India in the top 20
markets in OTC drugs in
country market share
• Lifecycle extension of an
off-patent drug
• Government initiatives
• Wellness industry
• Trade-offs for lower
cost generic
prescription drugs
• Need to penetrate
the consideration
set of consumers
and associate the
brand with their
specific needs

11. 11NEW
ARRIVAL
KEY COMPETITORS
BENCHMARKING
SUN
PHARMA
JANNSEN
GLENMARK
MANKIND
RECKITT
(PARAS
PHARMA)
TRENDSETTING OTC PRODUCTS
Multiple successful OTC products. E.g.. Krack Cream,
Moov Pain Balm and Itch Guard
Effective tier 3, 4 cities and rural penetration
Charges higher prices for similar products
Rapid inorganic expansion
One of the lead competitor in all 3 categories

12. Targeting and
Positioning.
Identify our consumer.

13. 13NEW
ARRIVAL
TYPES OF CONSUMER
WOMEN
• India is one of the faster growing self-medication
market in the world.
• What we propose :
oBenefit driven promotional campaign
o High visibility, better SKUs and clear
differentiation
URBAN YOUTH
HIGH INVOLVEMENT CONSUMERS RURAL YOUTH
• Urban consumer guided by online research and
peer recommendation
• What we propose:
o Focus on men
o Highlight the benefits of Melaglow i.e.
reduction in acnes, dark spots, pimples,
dark circle and other skin related
problems to the women.
• Rural consumers depend on local pharmacist for
diagnosis and medication.
• What we propose:
o Acknowledge price sensitivity
o Address lack product awareness, introduce
smaller SKUs for Selsun and Melaglow to
encourage the habit of clean scalps and
healthy skin
• Skincare and haircare for women is a big concern area
• What we propose:
o Focus targeting efforts for Follihair and Melaglow
here by promoting it as a strengthening supplement
to women in the age group of 21- 45

14. CONSUMER PROFILING
Precise target audience would help create content
effectively and deliver successful products
Demographic and psychographic profiling of the consumer
Age : 18 –
45 years
Educated :
Completed
Secondary
Education
Career -
oriented
Health
conscious
‘Look and
Feel’
influence
purchases Responsible
Disposable
Income :
20-35% of
earnings
Busy
lifestyles
Sedentary
Jobs
Daily
Commuters
Variety
Seekers
Opinionated
Trend
followers
Seek value
for money
Enjoy
hobbies
Conscious
of their
looks
Social
Media
Savvy
Multi-
taskers
Risk Takers
Knowledg-
able
Experimental

15. Promoting Offline
Sales.
Strategies to promote offline sales

16. 16NEW
ARRIVAL
Offline promotions can contribute in improving consumer’s mindshare
and perception of the brand
Art Director
Effective salesforce management
Increase the customer touchpoints of Abbott’s OTC
product range. Ensuring a sales representative
interaction at every point-of-sale for the cosmetic
and nutrition supplement products:
Modular exhibition pavilion
Setup popup stores and shop-in-shops
in Tier I and II city malls, office parks
and hypermarkets to create awareness
for Abbott’s OTC product range,
communicate credibility and clinical
benefits of their cosmetic
supplements.
Shelf throw and acquiring
shelf space
Influence the consumer’s decision
mindset by increasing the product
reach. Communicate product
differentiation via packaging and
posters to change buying decisions.
Assign last-mile retailer level touchpoints to
explain clinical benefits of the products
Promotion and distribution channel for
Trichology clinics for the sale of Follihair and
Selsun
Create presence in modern retail channels
partnering with Future Group, Spar
Hypermarket, etc
Increase one-to-one personalization with HCP
channels, beauty and cosmetic stores and
dermatologists
Pamphlets and trial units
distribution via In-Store Promoters
Distribute trial packs in multi-brand
stores, cosmetic stores and nutrition
stores with innovative pamphlets and
SKUs. Assign ISP to communicate
product benefits to add an element of
surprise and delight.

17. 17NEW
ARRIVAL
PACKAGE DESIGN
Design minimalist, ergonomic, packaging for a premium feel to the product range
Package design is the final salesman
Customers are attracted to a better packaged product, especially in the range of
skin care and hair care. Brands can differentiate with new designs that offer
convenience, ease-of-use and product specifications:
- Melaglow packaging can highlight its clinical abilities to treat
hyperpigmentation and its phytochemical composition
- Follihair packaging to provide usage instructions for the customers
- Create SKUs of 12, 30 and 60 tablets for Follihair treatment regime
- On-package effectiveness timeline to encourage continuous usage for best
results
Buying decision
influenced by packaging
32% users
Brand recognition
with packaging
78% users
Source: Primary research
New packaging for Melaglow and Follihair

18. 18NEW
ARRIVAL
PACKAGE DESIGN
Design minimalist, ergonomic, packaging for a premium feel to the product range
Communicate product benefits via packaging
Selsun is the market leader in anti-dandruff shampoos. The packaging should communicate it’s clinical expertise
in usage of 2.5% Selenium Sulfide to treat dandruff and seborrheic dermatitis.
Introduce a For Her and For Him variant of Selsun to create male and female-specific specialized product ranges.
Customized subscription boxes for men and women
Door delivery of OTC products, Follihair tablets in weekly medicine boxes, an applicator for Selsun, daily
applicators for Melaglow, coupons for next purchases and referral schemes – the subscription boxes will ensure
ease of use and change in consumption habits for the subscribers along with early access to new products and
services launched by Abbott.
New packaging for Selsun and Subscription boxes

19. 19NEW
ARRIVAL
Put merchandising units at the checkout
counter to drive last minute impulse
purchases for first time buyers. Keep
smaller SKUs in the units, ensuring more
conversions of potential triers to buyers.
Create in-store display and
merchandising units
Merchandising units can serve as a direct
medium for communicating the brand’s vision
to the end consumers. Tags like Give your
skin a workout on a Melaglow kiosk can
create a brand recall amongst consumers.
Put new product SKUs on the kiosk units
to create in-store customer awareness
about the brand, it’s products and usage
guidance. Visibility of the product will also
increase brand awareness.
Have variants on merchandising
units from small on-counter units to
4 feet tall units containing the entire
product line of Abbott dermatology
products.
Drive impulse purchase
Direct communication to consumers
Drive product awareness
Multiple ranges of merchandising units
KIOSK BRANDING
Setup in-store activation campaigns with brand banners and counter branding for different product lines

20. Promoting Online
Sales.
Strategies to promote online sales

21. 21NEW
ARRIVAL
Online sales in Tier I and II cities can be a major
revenue driver
Art Director
Collaborating with Amazon
Partner with Amazon to create a
separate portfolio for Abbott OTC
products in the Health & Personal Care
category. Capitalize on Amazon’s
subscription model to drive fixed
monthly sales.
Social media campaigns
Facebook Dark Posts
Target potential users
Twitter Campaigns
#AbbottWorkout #GoodHairDay
Google Ad Campaigns
Related searches for skin care, hair
care products or treatments
should lead to Abbott product
suggestions
Tie ups with online pharmacies
The e-pharma sector estimated at ₹700-800 Crs.
provides Abbott opportunities to explore online
consultancy, medicine delivery and brand visibility
Partnering with 1mg, Pharmeasy, NetMeds
can create additional revenue sources
Consultancy services provided online can
create potential OTC product users
Setting KPIs
Set evaluation parameters for online promotions
to control costs. Typical sales impact rates for
online campaigns:
Google AdWords
Facebook Dark Posts
56%
increase
34%
increase
Create subscription boxes
Use the subscription box model for OTC
products. Incentivise the users by giving
them early access to new product ranges
Sell the subscription boxes on Amazon,
Nykaa and the Skin Diary app
Benefit in predicting the volume of orders to
be fulfilled
‘Give your skin a workout’ campaign
Create an online and offline campaign
to Give your skin a workout. Partner
with dermatologists and beauty
bloggers to create videos to educate
users about products benefits.
Instagram campaign for users to post
their Skin score in the Skin Diary app .
Source: Secondary research

22. 22NEW
ARRIVAL
SKIN DIARY APP
A skin analysis tool to identify subtle changes in your skin's texture and appearance and track day-to-day progress
Check scores and skin's progress over the
course of weeks or months helping the
consumers address the problems in a more
informed manner. The Skin diary can provide
relevant insights to consumers.
Use gamification to use Skin Health scores to
encourage engagement with Melaglow
products and services. Regular users of the
Skin Diary App will get additional discounts on
online product purchase and subscription box
offers.
The app detects hyper pigmentation and dark
spots by analysing selfies clicked everyday in
the same location with the consistent lighting.
It can scan for spots, wrinkles and dark circles
to identify application spots and guide usage.
Guide product usage via video
demonstrations and step-by-step usage
guidance saving time and cost associated
with professional dermatological care.
Metric to measure effectiveness
Scan more, save more!
Skin diary
Self diagnosis and self medication

24. Expanding to Rural
Markets.
Exploring rural market challenges and strategies.

25. 25NEW
ARRIVAL
Undefined Distribution Ecosystem
For hair cosmetics and cosmeceuticals, stereotypical pharma distribution systems
will not work since stakeholders do not have enough relevant visibility nor are they
financially sound. Due to such an undefined ecosystem, both the distribution of
stocks and the collection of payments becomes a challenge for companies.
Poor Accessibility
Poor infrastructure and distances are a great impediment for this segment. To
ensure operational efficiency, sales reps would have to carry supplies to cover
multiple rural areas and be on the road extensively and yet not be able to
achieve desired results. Local medications and quacks are other impediments
to penetrating the rural market.
Lack of awareness and low purchasing power within users
A combination of low income, costly products and a way of life where there is
no time or inclination to focus on skincare or haircare. Also an attitude of ‘what
is not functional or fatal, need not be addressed’ results in delay in treatments
and using cheaper substitutes.
Counterfeiting and Knockoffs
With multiple brands of each off-patented drug and it is
difficult for firms and authorities to detect counterfeits and
knockoffs.
01
02
03
04
RURAL MARKET CHALLENGES
Identify the challenges to penetrate the rural market
Other Challenges
Lack of proper lab facilities near rural areas,
inadequate number of drug inspectors, ambiguous
regulations and procurement of unauthentic drugs by
chemists are the factors that lead to rise of fake
drugs in rural markets.
05

26. 26NEW
ARRIVAL
RURAL MARKET STRATEGIES
Strategies to create awareness in rural markets and gain sustainable competitive advantage
Art Director
Use the referral selling model
Pharma companies generally rely on their
distribution channel or key opinion leaders (KOL’s).
KOL’s are the doctors who prescribe medicines.
Assign Abbott agents amongst village residents
who would help in driving product sales and bring
more referrers on-board. The benefit of this system
are:
Sample distribution at medical camps
Free samples of Follihair, Selsun and
Melaglow can be distributed at medical
camps in villages. Product awareness
and customer feedback are the two key
outcomes of distributing samples
Educating the customersA more trustworthy source of the information
from people within the village
Incentives given to the referrer in terms of
free samples, monetary benefits and free
check-ups.
Employment opportunities for village
residents and a means for income
Wider distribution network to areas where
Abbott does not reach
Piggybacking distribution model
In-spite of trying to create their own
network Abbott should use a
‘piggyback’ distribution model utilizing
the distribution network of established
private companies with good reach in
rural Indian markets, such as Wagh
Bakri and Nilons.
Educate the rural population about
product benefits and usage via last-
mile representatives. Enlighten
customers about dandruff, scalp
health, hyperpigmentation, melasma
and skin treatments.

27. ‘Abbott’ our idea: 200
in 2020.

28. 28NEW
ARRIVAL
Day 0
Create attractive packaging for the OTC product range to
speak about the brand, communicate its value and benefits
and leverage the clinical assets of the company
Change in package
design
Setup in-store activation campaigns, shop-in-shops, brand
banners, counter advertising and kiosk branding in Tier I and II
pharmacies, hyper markets and malls to create brand awareness
Branding & Promotions
1 month
TIME LINES
Proposed strategy and timeline to triple sales in DTC channel

29. 29NEW
ARRIVAL
Initiate integrated online campaigns on Twitter, Facebook,
and Instagram to drive customer engagement and
leverage the reach of social media
Give your skin a workout
campaign
Launch the Skin Diary app to drive sales for Melaglow
product range by creating a metric to measure effectiveness
Launch Skin Diary app
3 months
6 months
After gaining market share in Tier I and II cities, Abbott can
explore Tier III, IV and rural markets in a phased manner
Exploring rural markets
1 year
Exploring new product
ranges in OTC

30. 30NEW
ARRIVAL
FINANCIAL IMPACT
Sources of Revenue
Figures to be noted
Expected Growth
Rate
Skin Care
Hair Care
Impact of the proposed strategies on top line
It is reasonably expected that the strategies
proposed will lift the current sales figure of Rs.
67.10 Crores across categories to three times
the value i.e. Rs. 201.3 Crores over two years.
Skin Care: 120 Crores
Hair Care: 252 Crores
Expected Industry
Sales
Skin Care: 7.5 %
Hair Care: 6.7%
Targeted Sales for
Abbott
Skin Care: 84 Crores
Hair Care: 176.4 Crores
Application of Funds
Investment will be maximum in ensuring that
the products reach the shelf in time, there is
awareness amongst the potential consumers
and brand development.
Current v/s Potential :
Growth Trajectory
Current Path:
Rs. 33.33 Crores.
Potential Path:
Rs. 84 Crores
Current Path:
Rs. 69.74 Crores.
Potential Path:
Rs. 176.4 Crores

31. Thank You