Sanofi-Aventis established the Prayas initiative in India to expand their presence in rural and bottom of the pyramid markets. Through Prayas, Sanofi-Aventis provided medical education workshops for doctors and other healthcare professionals in remote areas to both increase their prescription of Sanofi products and improve rural healthcare overall. The initiative helped Sanofi gain access to new markets while also creating value for stakeholders like doctors, rural communities, and the public health system. However, sustaining the success of such a social business model over time presented challenges like high competition, retaining partners, and translating the education-focused approach into sufficient revenue generation.

1. TAS
TAS 2016 In-house
Selection Process
Chinmay Khandalkar
TML Drivelines

2. TAS
2
Prayas by Sanofi–Aventis in
India
Making Healthcare Accessible to the
Bottom of the Pyramid

3. TAS
Making Healthcare Accessible to the
Bottom of the Pyramid
Source : http://dailynewspaperadspk.blogspot.in/2014/10/lifebuoy-help-child-reach-5.html

4. TAS
Scheme of the presentation
STRATEGIC INTENT
 Please comment on the
strategic intent behind
conceptualisation of the
Prayas Initiative by Sanofi-
Aventis.
 Highlight specific
observations from the
case description to
support your views
mentioned above.
 What do you think were
the risks involved in this
initiative right from the
beginning?

5. TAS
Strategic Intent
• Sanofi-Aventis established itself as a diversified global healthcare
company with a notable presence in chronic care drug portfolio.
• One of the top 4 players in that category.
• Ranked sixth worldwide in the consumer healthcare segment.
• Sanofi-Aventis was a leading MNC in emerging markets
• Emerging markets were critical since it generated more sales in these
markets than in mature markets such as the United States and Europe.

6. TAS
Market Penetration Product Development
Market Development
Consolidation in the Indian
Pharma with quasi-OTC brands.
Diversification
Had leadership in niches but did
not have mass. To strengthen
market position, the company
decided to serve larger mass of
consumers beyond Tier-1
markets, at the BOP.
Sanofi-AventisMarkets
Products
Ansoff Matrix
EXISTING NEW
EXISTING
NEW

7. TAS
“We could never achieve leadership with an insignificant
presence in rural markets”
-Pravin Vete

8. TAS
Risks : Pharmacy of the developing World
(a) Bottom of Pyramid
Low government spend.
Poor healthcare infrastructure
Limited Affordability.
Poor hygiene and living
conditions.
Spurious Drugs
(b) Knowledge-centric
centric approach
First of its kind in a market
providing health education
instead of disease education.
Will it be able to fully exploit
the payoffs of the program.
Use of third-party
manufacturers
(c) Future risks
Building a digital interface.
Product portfolio
To expand geographically or
consolidate current existence
Scalability

9. TAS
Scheme of the presentation
VALUE PROPOSITION
 What were the value
propositions for each of
the key stakeholders of
Prayas initiative?
 Highlight the statements /
observations that support
the value articulation as
discussed above.
 Distinguish between the
approaches of value
creation by MNCs and
Indian companies in this
specific industry sector.
Support your arguments
with statements from the
case.

10. TAS
Value Proposition
Stakeholder
Sanofi-Aventis Pain Relievers
Products & Services
 Quality Medicines
 Knowledge
infrastructure in BoP
markets
Gain Creators
 Made the doctors their
marketing representatives and
thus increased their sales.
 Identified opportunities to
address problems at
pharmacy level
 Sub-channel approach
of distribution helped
circumvent the
existing problem of
appointing new
distributors.

11. TAS
Value Proposition
Stakeholder
KOLs, Mentors
and Mentees
Pain Relievers
 Mentees wouldn’t need to
travel more than 15km to
attend the workshop and
thus having easy access to
knowledge
Products & Services
 Quality Medicines
 Knowledge
infrastructure in BoP
markets
Gain Creators
 KOLs: Association with a
social initiative.
 Mentors: Opportunity to
network and collaborate.
 Mentees: Knowledge
upgradation.

12. TAS
Value Proposition
Stakeholder
Rural Markets and
Consumers
Pain Relievers
 Doctors earlier relied on
traditional and outdated
practices.
 Effective medicines instead
of spurious drugs
Products & Services
 Quality Medicines
 Knowledge
infrastructure in BoP
markets
Gain Creators
 Vete also planned to
impart relevant medical
education to consumers

13. TAS
Value Creation
• Continuous medical education
and public awareness –
Sanofi-Aventis
Awareness
• Mobile clinics and on-field
practical training to
professionals – Novo-Nordisk
Available
• Modified their product lines
and used smaller packs –
Elder Pharma
Affordable
• Strengthened the reach of
their distribution network-
Himalaya Drug Company
Access
Indian Companies MNCs

14. TAS
Value Creation
• New distribution format of a
sub-channel including cluster
stockists – Sanofi-Aventis
Distribution
• Promote a mature portfolio to
low-income patients in a
customized format - Pfizer
Design
• Use of outdoor media,
regional fairs and mobile
vans-Ajanta Pharma
Demand
• Smaller pack sizes like the
Ontac Gel in small blister
sachet- Elder Pharma
Development
Indian Companies MNCs

15. TAS
Scheme of the presentation
CUSTOMER INSIGHT
 What customer insight did
Sanofi-Aventis leverage to
address the target market
in India?
 Support your arguments
with data /facts and
statements from the case.
 Are any of these insights
applicable to other
products and services
across industry sectors?

16. TAS
Customer Insight : Opportunity
Analysis• Most physicians lacked cutting-edge medical knowledge.
I. No resources to periodically refresh and upgrade their knowledge.
II. Lack of computer access and skills posed challenges for self-learning.
• Rural markets expected to emerge as the next frontier of growth
I. Rising income levels.
II. The growing patient base.
III. Improvement in healthcare infrastructure.
IV. Wider health insurance coverage.
V. Need for quality healthcare at affordable prices

17. TAS
Customer Insight : Opportunity
Analysis
Vete was able to discover a new business model for the
rural market with a philanthropic angle of setting up a
platform for Medical Education

18. TAS
Leveraging these Insights : FMCG
Source :http://www.bopinc.org/sites/www.bopinc.org/files/documenten/women_as_ib_partners_-_shakti.pdf

19. TAS
Scheme of the presentation
SALES AND MARKETING
 What challenges of
marketing to the Bottom
of Pyramid does this case
highlight.
 What innovative
approaches for product,
sales, marketing, and
distribution does this case
highlight.
 How could businesses of
Tata group companies
apply these learnings?
Take any business and
detail your proposal.

20. TAS
Development
Sanofi-Aventis predominantly
operated in Tier-1. The
emerging lower tier opened up
a new opportunity. Major
challenge was to acquire 2%
share of India’s rural market
01
Design
Challenge was to indigenously
design a business model for
creating value despite cost
disadvantages and growing
competition. Also achieve
contradictory objective of
making profits.
02
Distribution
Presence of a strong
distributor’s association
along with poor road and
transportation infrastructure.
Distributors unwilling to
supply to remote locations
and adhere to company’s
expectations.
03
Source :http://www.core77.com/posts/12233/The-5Ds-of-BoP-Marketing-Touchpoints-for-a-holistic-human-centered-strategy
Challenges in Marketing to the
BoP

21. TAS
Demand
Challenge to develop a
product portfolio and
identify the demands of
BoP market before
entering it and to ensure
strong brand identity to
achieve rapid market
penetration.
04
Competition
05Aggressive resource
commitments by
competitors. Also,
attempts were made of
poaching the mentors and
well-trained sales force
Challenges in Marketing to the
BoP

22. TAS
Development
Partnerships with other service
providers such as clinicians,
diagnostic services and even
non-profit organizations for
value-added services to
improve the quality of
healthcare.
01
Design
Established a knowledge-centric
approach to educate and create
true learning value for the small
town doctors. In return, they
received trust from these doctors
who prescribed their medicines
02
Distribution
The Prayas Team added a
new sub-channel to its
distribution network. It
comprised of cluster
stockists and existing
territorial distributors turned
super distributors. The team
gained space to store goods
for 2-3 months
03
Source :http://www.core77.com/posts/12233/The-5Ds-of-BoP-Marketing-Touchpoints-for-a-holistic-human-centered-strategy
Innovation to respond to
Challenges

23. TAS
Demand
Sanofi-Aventis relied on
in-house research and
data from WHO and
UNICEF. Research
revealed clear domination
of the acute care segment
among BoP patients
04
Competition
05Gained trust by the
education program and
retained the mentors.
Provided incentives and
higher salaries to the
distributors who were
now motivated and active
in supplying their goods
to retailers.
Innovation to respond to
Challenges

24. TAS
Tata Chemicals
Empowerment
Enable and empower the farmer
in creating and generating more
value for farm produce by
providing info on new
agronomic practices
Development
Partnership with other service
providers : TCS’ mKRISHI®
platform as solutions provider.
Structure
Hub and Spoke model. Each
TKS center is a franchised retail
outlet and solution provider that
caters to 30-40 villages
Design
Post-workshops visits :
Marketing Tata Chemical
produced nitrogenous fertilizers
Services and Relationship
Soil and water testing, contract
farming, advisory services,
accidental insurance, farmer
meets and crop seminars .
Demand and Distribution
Create a new demand for fresh
produce of this initiative. Bridge
the gap between the producer
and end consumer. Control and
further accelerate the sales.
Source : http://www.tatachemicals.com/services/tata_kisan_sansar.htm#.VwrCyqR97IU

25. TAS
Scheme of the presentation
FUTURE OUTLOOK
 Identify the key challenges
in sustaining the success
of “Prayas” in and after
2011.
 What would be your
recommendations to
address the challenges
mentioned above.
 Was the top management
of Sanofi-Aventis right in
wondering if such social
models would yield profits
similar to mainstream
business models? How
would you respond to
such a dilemma?

26. TAS
Challenges in sustaining the Success
Competition
 Very high local competition.
 Rapid scaling of copycat
initiatives
 MNCs and Indian companies
Digital Interface
 Creating a Web portal as a single
source for all the information needs
 Expensive affair and poor
infrastructure
Revenue Model
 Translating the accepted
knowledge-centric approach into
substantial prescriptions and
business generating revenue.
Customer retention
 Retaining and adding more
KOLs, mentors and mentees.
 Retaining the externally
created sales force
Product portfolio
 Choice of therapeutic segment
for their product portfolio :
Acute care or balanced across
major therapy areas
Consolidation or expansion
 To expand geographically and enter
new regions before the competitors
or consolidate its market position in
the existing clusters

27. TAS
Recommendations – Innovate to
surviveCompetition
 Extensive market research.
 Creating demands locally by
media and mobile health
camps and clinics.
Digital Interface
Telemedicine : Establish a center with
smart devices and internet connection.
Communication allowing increased
collaboration remotely.
Revenue Model
 Microfranchising : Creating
opportunities for the BoP and
relieving them from forced
entrepreneurship
Customer retention
 Include local capacity
building and entrepreneurs
Product portfolio
 Include chronic care drugs in
the portfolio as it is a
promising area in the long run
Consolidation or expansion
 Expansion is necessary to acquire
significant resources and capital
investment . Scalability should also
be considered.

28. TAS
Source : The Fortune at the bottom of the pyramid – by C.K . Prahlad and Stuart L. Hart
“Tier 4 is not a market that allows for
the traditional pursuit of high margins
; instead, profits are driven by volume
and capital efficiency.”
Work with government through PPP models ( Public-Private
Partnership) to improve overall hygiene and infrastructure
conditions

29. TAS
THANK YOU !