Entering Foreign Markets – Zydus Cadila
Pharmaceuticals
Submitted By
Paramount Brainiacs
DMS, IIT Delhi
Ankit Bisht Anshul Goel Abheek Tarafdar
Market Overview – Zydus Cadila
269.8 300.9 335.5 374
417.1
465
518.5
578.1
644.6
CAGR 11.5%
0
200
400
600
800
2012 2013 2014 2015 2016 2017 2018 2019 2020
Global Generic Drugs Market ( $ Billion)
Source - http://www.bccresearch.com/market-
research/pharmaceuticals/generic-drugs-markets-phm009g.html
13.4
12.8
5
15.3
20
8
3
4
7
7
0 5 10 15 20 25
USA
Spain
Japan
France
Brazil
Generic drugs market as % of total
Pharma market (2011)
% increase in
share
% Market Share
Source - http://www.reportlinker.com/ci02261/Generic-
Drug.html
52
11
37
% Revenue breakup
by region for Zydus
Domestic (India)
Emerging markets
Regulated mkts
USA
• Business crossed
US$ 500 mil
• Filed 38 ANDAs
with USFDA, taking
cumulative ANDA
filings to 260
• Launched 9 new
products
• US Formulations
posted sales of Rs.
33.932 Mio., up by
56%
BRAZIL FRANCE JAPANSPAIN
• Launched 5 new
products in generic
market
• Rationalized the
product portfolio by
expanding the share
of in-house products
• Launched 12 new
products in generic
market
• Performance was in line
with market with focus
on increasing customer
base and share of in-
house products
• Launched two new
divisions to focus on
segments of
Cardiology and
Central nervous
system
• Launched 7 new
products
• Overall, Latin
America formulations
posted sales of Rs.
2348 Mio.
HIGHLIGHTS OF OPERATIONS – 2014-15
• Overall, the European business posted sales of Rs. 3,376 Mio.
• Launched 20 new products in different markets of Asia Pacific, Africa and
Middle East
• Overall, EM market posted sales of Rs. 4,075 Mio, up by 14%
• In Jan 2014, 7 years
after its entry, Zydus
decided to move out
of Japan due to
tough competition
from Japan’s copycat
drug market
Develop a robust, well-articulated brand
architecture strategy to consolidate goals
Plan, plan, plan. Have a transition plan ready to implement as soon as
the deal closes
To make sure that Acquisition must reflect the brand’s value in light of
how Cadila has used it
Value brands based on their worth to Cadila
Clear and
common
Brand and
Purpose
Differing
views of the
organization
Potentially
different Agendas
on how Cadila
subsidiary should
be branded
Focus on
buyer- the
main
audience
Bring together the
merging
companies’ back
office system and
processes
Key Challenges following
M&A
1. Capture
marketing
synergies to create
value for
consolidated unit
2. Look beyond
current integration
approach to target
opportunities for
transformation
5. Address all the
stakeholders and
promise high value
creation and
propositions
7. PR Marketing:
Work with media to
bring awareness of
acquisition and
benefits your products
offer.
6. Relationship
Marketing: Focus on
building relationships
with new customers of
acquired firm
3. Build Sales
Momentum: Aggressive
sales in first few weeks
boost customer’s
confidence
4. Outbound
Marketing: Let your
potential customers
know you exist as a
merged company.
8. Review Customer
Portfolio: Focus on
retaining all the
customers regardless of
expense
Marketing Strategy after M&A RoadMap
Global Marketing Strategy – Zydus Cadila
Pipeline Products Inline Products
PHASE 1 PHASE 2 PHASE 3 Launch
/Growth
Maturity/
Decline
Key Managerial
Decisions
Opportunity
Assessment, Market
Needs, Access
Competition, Critical
Success factors
(SWOT)
Forecasting, Target
product profiling,
Initial positioning,
value & distribution
formulation
Strategic –
Segmentation,
Positioning, Branding,
Pricing
Tactical – Targeting,
Value Propositions,
Messages, Promotion,
Sales force planning,
marketing mix
Brand & Promotion
optimization, Tracking &
Strategy review, Re-
positioning, experiments &
Pilots, Life Cycle Management
Secondary Market
Research/ Business
Intelligence
Desk/Literature
Research,
Review/Modeling of
Data/Audits
Data Mining, Market &
Economic models,
Influence/Impact of
key stakeholders
Market opportunities,
Segmentation, Targeting,
Marketing mix
optimization &
Competitive Intelligence
Promotion/Market Mix
Optimization, Payer ROI,
Scorecards/Dashboards,
Opportunity/Risk
identification Analytics
Primary Market
Research(P5
stakeholders – Payer,
Physician, Patient,
Policymaker,
Provider)
Advisory
boards/Preliminary
qualitative research
on market needs &
structure, Product
concept development,
Pricing & Sales
scenarios
Qualitative Advisory
Boards, Market
Access/Structure/Com
petition, Positioning &
Pricing
More Quantitative, Some
Qualitative
segmentation,
Positioning, Pricing,
Contracting,
Reimbursement,
Distribution, Promotion
mix planning, Messaging
& Sales Aid Testing
Research
Message Testing/Awareness,
Promotion Effectiveness
Customer Satisfaction &
Payer/Account Management
Attitudes, Beliefs, Perceptions
and Behavior Tracking
THANK YOU

ParamountBraniacs_IITD

  • 1.
    Entering Foreign Markets– Zydus Cadila Pharmaceuticals Submitted By Paramount Brainiacs DMS, IIT Delhi Ankit Bisht Anshul Goel Abheek Tarafdar
  • 2.
    Market Overview –Zydus Cadila 269.8 300.9 335.5 374 417.1 465 518.5 578.1 644.6 CAGR 11.5% 0 200 400 600 800 2012 2013 2014 2015 2016 2017 2018 2019 2020 Global Generic Drugs Market ( $ Billion) Source - http://www.bccresearch.com/market- research/pharmaceuticals/generic-drugs-markets-phm009g.html 13.4 12.8 5 15.3 20 8 3 4 7 7 0 5 10 15 20 25 USA Spain Japan France Brazil Generic drugs market as % of total Pharma market (2011) % increase in share % Market Share Source - http://www.reportlinker.com/ci02261/Generic- Drug.html 52 11 37 % Revenue breakup by region for Zydus Domestic (India) Emerging markets Regulated mkts USA • Business crossed US$ 500 mil • Filed 38 ANDAs with USFDA, taking cumulative ANDA filings to 260 • Launched 9 new products • US Formulations posted sales of Rs. 33.932 Mio., up by 56% BRAZIL FRANCE JAPANSPAIN • Launched 5 new products in generic market • Rationalized the product portfolio by expanding the share of in-house products • Launched 12 new products in generic market • Performance was in line with market with focus on increasing customer base and share of in- house products • Launched two new divisions to focus on segments of Cardiology and Central nervous system • Launched 7 new products • Overall, Latin America formulations posted sales of Rs. 2348 Mio. HIGHLIGHTS OF OPERATIONS – 2014-15 • Overall, the European business posted sales of Rs. 3,376 Mio. • Launched 20 new products in different markets of Asia Pacific, Africa and Middle East • Overall, EM market posted sales of Rs. 4,075 Mio, up by 14% • In Jan 2014, 7 years after its entry, Zydus decided to move out of Japan due to tough competition from Japan’s copycat drug market
  • 3.
    Develop a robust,well-articulated brand architecture strategy to consolidate goals Plan, plan, plan. Have a transition plan ready to implement as soon as the deal closes To make sure that Acquisition must reflect the brand’s value in light of how Cadila has used it Value brands based on their worth to Cadila Clear and common Brand and Purpose Differing views of the organization Potentially different Agendas on how Cadila subsidiary should be branded Focus on buyer- the main audience Bring together the merging companies’ back office system and processes Key Challenges following M&A 1. Capture marketing synergies to create value for consolidated unit 2. Look beyond current integration approach to target opportunities for transformation 5. Address all the stakeholders and promise high value creation and propositions 7. PR Marketing: Work with media to bring awareness of acquisition and benefits your products offer. 6. Relationship Marketing: Focus on building relationships with new customers of acquired firm 3. Build Sales Momentum: Aggressive sales in first few weeks boost customer’s confidence 4. Outbound Marketing: Let your potential customers know you exist as a merged company. 8. Review Customer Portfolio: Focus on retaining all the customers regardless of expense Marketing Strategy after M&A RoadMap
  • 4.
    Global Marketing Strategy– Zydus Cadila Pipeline Products Inline Products PHASE 1 PHASE 2 PHASE 3 Launch /Growth Maturity/ Decline Key Managerial Decisions Opportunity Assessment, Market Needs, Access Competition, Critical Success factors (SWOT) Forecasting, Target product profiling, Initial positioning, value & distribution formulation Strategic – Segmentation, Positioning, Branding, Pricing Tactical – Targeting, Value Propositions, Messages, Promotion, Sales force planning, marketing mix Brand & Promotion optimization, Tracking & Strategy review, Re- positioning, experiments & Pilots, Life Cycle Management Secondary Market Research/ Business Intelligence Desk/Literature Research, Review/Modeling of Data/Audits Data Mining, Market & Economic models, Influence/Impact of key stakeholders Market opportunities, Segmentation, Targeting, Marketing mix optimization & Competitive Intelligence Promotion/Market Mix Optimization, Payer ROI, Scorecards/Dashboards, Opportunity/Risk identification Analytics Primary Market Research(P5 stakeholders – Payer, Physician, Patient, Policymaker, Provider) Advisory boards/Preliminary qualitative research on market needs & structure, Product concept development, Pricing & Sales scenarios Qualitative Advisory Boards, Market Access/Structure/Com petition, Positioning & Pricing More Quantitative, Some Qualitative segmentation, Positioning, Pricing, Contracting, Reimbursement, Distribution, Promotion mix planning, Messaging & Sales Aid Testing Research Message Testing/Awareness, Promotion Effectiveness Customer Satisfaction & Payer/Account Management Attitudes, Beliefs, Perceptions and Behavior Tracking
  • 5.