Novartis BOP strategy for

Healthcare in Rural India

GROUP :
PRACHI DAVE
ANMOL AGARWAL
DUSHAYANTA
SAWANT

AROGYA PARIVAR

IMPROVING HEALTH AT THE BOTTOM-OF-THEPYRAMID

AROGYA PARIVAR:
MISSION
To improve healthcare access for the
under-served poor located at bottomof-the-pyramid using social-business
approach

AROGYA PARIVAR
BACKGROUND

The fortune at the bottom of the pyramid (2005) , C.K.

Prahalad
The bottom of the pyramid is the largest, but poorest socioeconomic group. In global terms, this is the 3 billion people
who live on less than say $2.50 per day
World bank and WHO focus on meeting the needs of the
poorest of poor
They have no bank account or access to basic health care
There was a potential opportunity to do well in business
while doing good

BOTTOM OF THE PYRAMID

THE NEXT BIG THING

Many Asian & African countries faced the doubled burden

of infectious diseases and low income levels
Market opportunity in addressing their needs
HUL & Coca-Cola had been selling to low income
population in emerging market

BOP HEALTHCARE EXPENDITURE

NOVARTIS
Swiss MN pharmaceutical company
Created in 1996 through a merger of Ciba -Geigy and
Sandoz
Headquartered in Basel, Switzerland
Diversified portfolio : medicines, generic pharmaceutical ,
preventive vaccines, diagnostic tools and consumer health
products.
Product sold in 140 countries, general revenue of US$ 32.2
billion and employees are 91000 people around world

OBSERVATIONS
Growing middle class leading to a diamond shaped
pyramid
Gives more opportunity to penetrate
BRIC nations with South Africa and Turkey to be the
viable options them being largest and fastest growing
emerging markets

SHARED VALUE
Two way of looking at bop markets:
1. Wait for economic growth to catch up with the rest & sell to
the affluent
2. Reach out to underserved segments & growt the business
by seeing the poor customers but with different needs

OPPORTUNITY KNOCKS, BUT WHERE?

GROWTH OF INDIAN PHARMACEUTICAL

MARKET
The volume and density of the population
The presence of private healthcare
An array of products already registered
and licensed in India

INDIAN HEALTH
INFRASTUCTURE:
THE STATE OF PLAY

THE CHALLENGES
Low ratio of Doctor/patient or nurse/patient
Limited access to rural healthcare
Qualified doctors less popular than Rural Medical
Practitioners
Cannot exclude RMPs as they are the major source of
treatments
Larger number of target audience are daily wage earners

INDIA THE FIRST CHOICE

Volume and density of population
Presence of private healthcare
Array of products already registered

CONTINUED
Seeking medical help from qualified doctor is the last resort
Children are priority for treatments followed by wage earners, adults
and then older people and women
Higher spends if needs to be taken to hospitals
Treatments are considered good until they are via medicines.
Injections were considered as an occurrence serious ailment whereas,
syrups were supposed to be meant for children
Lack of knowledge

AROGYA PARIVAR
NOVARTIS APPROACH

A complete healthcare solution and not just access

to medicines
Built on 4As : Awareness Accessibility
Affordability Adaptability
Supports development of poor healthcare
infrastructure
Complete health value chain : patient awareness to
drug compliance

THANK YOU
https://www.youtube.com/watch?