The document discusses how pharmaceutical companies can differentiate themselves in an increasingly commoditized market by focusing on improving the experiences of stakeholders across the ecosystem, including patients, providers, partners, and payers. It notes that companies currently take a siloed approach focused mainly on drugs and devices, but the ecosystem is more complex. It argues that pharma companies should take a portfolio approach to design experiences with the full ecosystem in mind, which could streamline costs while improving services. The document points to examples from consumer brands like Zipcar and Virgin America that deal with commoditization through superior customer experiences.

1. Better Pharma
through
Better Service
(an introduction)

2. ©2013
What you already know…
New therapies create choice
But without differentiation, choice creates commodity
and little loyalty
In a commodity market the key decision factor is price
Branded pharma will lose to generic providers on price
because of their cost base
Cost will always be a constraint, never an advantage
2

3. ©2013
More you already know…
With counterfeits threatening, brand & origin are
advantages, but they are counterbalanced by general
wariness of new therapies with a short history of use
Sales networks and reps will also offer some marketing
advantages, but these models are expensive and
increasingly constrained
To compete, companies need to differentiate on the
value of experiences—the thoughtfulness, quality and
commitment displayed, in the products and services
provided to customers
3

4. ©2013
Pharma sees it like this…
✓ Drug
✓ Device
✓ Packaging
✓ Compliance
✓ Patient Education
✓ Device Training
✓ Product Delivery
✓ Product Support
✓ Other
4

5. ©2013
But the ecosystem is
bigger and more complex
5
✓ Drug
✓ Device
✓ Packaging
✓ Compliance
✓ Patient Education
✓ Device Training
✓ Product Delivery
✓ Product Support
✓ Other Payer/Provider Relationships
Physician Events
Ongoing Physician Interactions
Patient Advocacy Group Interactions
Manufacturing Partners
Distribution Partners
Retail and Hospital Pharmacists
Product Storage, Dispensing, Reconstitution
Nurse Training
Patient Education, Support
Caregiver and Family Training
Great experiences
are created with
services that live
in relationships

6. ©2013
Pharma Today
Big Problem: At a portfolio level, few companies have
a point of view around experience and very little
leadership. This has been ceded to the brand silos.
Bigger Problem: As companies move to common
molecules, they have fewer competitive barriers
And… Consumer attitudes and preferences have
changed. It’s a world where healthcare choices have
shifted outside of the doctor’s office.
6

7. ©2013
Pharma Tomorrow
Opportunity: To create a strategy that provides
meaningful guidance and support for doctors and
patients while streamlining experiences that serve
providers and other partners
Companies have the opportunity to design with the ecosystem in mind. (This is exciting to us!)
7

8. ©2013
A Portfolio Approach
Opportunity: Create a streamlined stakeholder
experience AND to achieve lower overall costs in both
development and ongoing provision.
8

9. Whatifwethought
aboutpharma
portfolioslikeaCPG
orservicecompany
Let’s look at two enviable consumer experiences…
(theydealwithcommoditizationallthetime)

10. ©2013
Zipcar
10

11. ©2013
Virgin America
11

12. ©2013
Ifpharmaheaded
downthispath,
whatwould
“good”looklike?
12

13. ©2013
What if you had a
strong parent brand
with a unified voice?
13

14. ©2013
What if you had a
parent brand that
leads its sub-brands?
14

15. ©2013
What if you had
consistency across
communications?
15

16. ©2013
What if you had
signature service
moments?
16
Tiffany & Co.

17. Better Pharma
through
Better Service
(an introduction)