Future

Of
Pharma
Business, Marketing
&
Branding
Key Challenges…

Dr. R. B. Smarta
4th January 2019 Chairman & MD Interlink Consultancy
 Is Pharma
a Disruptive Industry?

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• Industry strengths lie in;
 R&D
 Discovering and Developing new cutting edge medicines,
manufacturing, marketing, distributing and selling… Now…?

• Industry facing Financial, Regulatory challenges and

Struggle… Now…?

• Companies have new competitors from different corners…

Now…?

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 How is Industry Responding?

• From Generics to Differentiated generics to Future medicines

• Transaction to Prescription generation and Brand building

• Face to face selling to Digital platform dialogues

• Follower to thought Leadership virtual platforms

• From only Treatment to Prevention & Treatment

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 Is it a
Transmutation or Transformation
Of Industry?

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 Is it Time to Change?

Value-Migration business model is slowly evolving as we

focus on better clinical outcome and value.

Yet, Currently we still focus on medicines, can we shift our

focus on patients, customers and payers?

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Today Business Value is created by…

1 Partnerships, Mergers & Acquisitions

2 Technology based Synergies

3 Operational Excellence in Marketing & Sales

4 New Market Access design

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How Value of Business is getting created in
the World?

Disrupted industries follow Ten different new business

models to survive & grow.

For Pharma business

1. Subscription model followed by Netflix & Amazon

2. Ecosystem model followed by Google & Apple

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How Subscription model is applied in Pharma?
Wellness clinic- Google funded model
$149 a month
• Unlimited genetic • Blood testing's • Weight loss planning
• Dr visits planning • Health insurance coverage; etc.

Push model-
$20 a month to visit NHS doctors within 6 months with online app to discuss.

Conversation model-
£5 takes you converse with your doctor with AI app and also can come online on call.

Instant visit model-

Health tap for $99 a month- No wait/ Instant physician visit boosts clinical outcome as
patients pay from their pockets.
Source: EYE for Pharma conference
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How Ecosystem model is applied in Pharma?

Using
Beyond The Pill concept

Disease management programs, Lifestyle diseases

management programs… not monetized…

Wearables, Ingestibles, Implantables; have huge opportunity

to be part of health of customers…

Is it not going towards Patient centricity?

Source: EYE for Pharma conference
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 Ecosystem model
Focusing on Data and Customer needs may evolve;

1. Better Patient engagement

2. Multi-channel and Omni-channel communication strategies
3. Sensors combined with patient data to predict future specific
conditions, lack of adherence etc.
4. Big data and AI will deliver personalized solutions

Pharma must keep up with innovations and utilize the latest

tools, techniques and technology to evolve the business
model to make themselves successful value creator.
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Is it not dependent on Digital Maturity?

Reality is..
“Pharma is below the global average of
digital maturity,
even though the technology
exists to create
the best possible customer experience.”

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 So
writing on the wall
to
Accept Reality, Reimagine & Transform
IT & AI skills.

Trillions of data points are available & can be

used in combination with breakthrough
medicines.

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“Brains are Becoming the
CORE Of Organizations

Other Activities Can be

Contracted out.”
… Charles Handy

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Repurposing Pharma
Marketing
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Repurposing Marketing process
Identify
customer

Create Stimulate
Value Transaction

Facilitate
Transaction

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 Reality check
• Marketing Efforts
& Excellence

Brand
Management
Inputs
• Competency 3
Development • Field
In - clinic
• KOLs Physicians Performance Representative Management
• Image disposition Excellence beliefs • Competency &
Excellence
1 2
Activation
Patient Mechanism
4
RX
• Proposal & Promise
• Detailing Skills
Provider Pharmacists

© Interlink Marketing Consultancy Pvt. Ltd. – By Dr. R.B. Smarta

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 Would
Customer disposition and Experience
kill
Traditional pharma marketing ?

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 Key
is
Segmentation

1. Changing paradigm of customers cannot be managed by

existing methods
2. New methods needs to be found out…

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 Quantitative and Qualitative parameters
for HCP segmentation
Patient Focused
Illustrative Scientific Innovator Traditionalist Patient Idealist
Professional
Status orientation * High High Low Medium

Science orientation High Medium Low Low

Patient orientation Medium High Low High

Innovation High Low Low High

Guidelines focus ** Low High High Low

Work/Life balance Low High High Medium

Business focus Low Low High Medium

Frustration (with
Low Low High Medium
healthcare constraints)
Receptive to Pharma Medium Medium/ High Low High

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 Segmentation of Physician based on
Pre-defined criterion

Selection Criteria / Segment Segment KOL Diagnosis Level of Specialty Brand

Segments Value Growth Role status Competition Role Data

Segment 1

Segment 2

Segment 3

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 No Single Message For All

Segmentation is Key

Pharma marketing strategies

remain focused
on a homogenous view of HCPs –
both in a traditional and digital sense.

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 Segment Generic to Segment Centric

Segment Generic Segment Centric

• Few and Isolated channels  Integrated channel planning

• One dimensional communication  Customer dialog and feedback loops

and opportunistic activities

• Undifferentiated positioning- One  Segment/ prescriber groups specific

message for all messages

• Lots of Gut feeling  Data & Facts driven decision making

• Strict visit Frequency model  Flexible and Contact focused model

• Scattered IT systems  One Central CRM for all functions

Focus of repurposing Pharma marketing

1. Marketing is all about tailoring to customer needs,

understand the landscape, collate the view of
customer, create a holistic engagement strategy

2. Four key elements

1) Information needs
2) Media preferences
3) Communication needs
4) Customer potential

3. Key is customer/segment experience

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Segment Experience- New Battleground

Personalized
Target the Right Customer

Convenient Transparent … with Right message & Content

… through Right channels

Customer
Experience
Relevant Engaging
… using Right formats

… at the Right time

Easy to
Trustworthy
… in the Right way- compliance
Deal with

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 Investment in E-pharmacy-
A new way of Marketing Transaction
TOP Private-Equity & Venture Capital Investments

PHARMEASY NETMEDS
$ 65Mn $ 35Mn

LIFCARE HEALTHKART
$ 11Mn $ 10Mn
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Towards Personalization

The Concept Of Segmentation

Goes Hand-in-hand
With
The Idea Of Personalization

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 Repurposing is possible …

Segment, Message, Technology, Channels

and Patient needs
would repurpose industry to focus on
personalized attention
to alleviate burden of disease
with innovative medicines !

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 Is Pharma Branding
At Cross Roads?

As pharma branding reaches Crossroads, importance of

branding is growing.

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 Is there any Ray of Hope?
• Can generics be differentiated?
• How can we complete the definition of any product and offer
better option to HCP?
• Is there any thing beyond positioning?
• What role corporate brand plays in brand building?
• In Pharma, medium and message were together. . is it
applicable now?
• Where is the core ? Is it still science.. or communication ..or
..sales ..or ..clinical outcome ..or HCP satisfaction ..or Patient
satisfaction ? 30
 Is Brand Building possible?
In-clinic/Off-clinic
Messages
Process of Degeneration Communication
Value creation

Brands
Action
Branded
Generics M
1. Differentiation
e
Environment 2. Patient centric
Generics d 3. Corporate
Opportunities i Brand support
Generic- a 4. Segments
m support W
Generic i 5. Media mix
6. Clinical centric
a
x y
Commodities s

Products/ Brand Portfolio

Customer Super Differentiated One + Undifferentiated
Specialty
centric specialty Products Products Products
Customer
care
Up Pricing/ Profits Down

© Interlink Marketing Consultancy Pvt. Ltd. – By Dr. R.B. Smarta

 Few pointers to Deliberate?...Key1
• Can we go by New Product definition ?
• Can we work towards better consumer expectations?
• Can we decide on where we stand like brands, branded generics or
commodity?
• Can we still focus on responsible science & concepts to develop new
brand ethos?
• How can we make lions tame to forget the taste of blood?
• Major challenge is the change in disposition of HCPs and beliefs of
pharma communicators, managements to clear the way for brands.
• How do we take up these challenges now and build brands even today?
 Power of Internal communication…
Key2
1. The Drive for Purpose
2. Remain in Control of the Message and It’s Origin
3. Empower and Support Middle Management
4. Keep the Brand Promise and Satisfy Your Customers
5. In a Crisis, Internal Communication Rules
6. Create a Better Work Environment
7. Limit Rumors and Enhance Transparency
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What Legends say
about
Brands?

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Mike Clasper
President of Global Home
Care and New Business
Development at Procter and
Gamble Europe.

“ I would Label the

consumer of 2025 in three
ways: more demanding,
wiser and more worried.”

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 San Jin Park
Vice President of Global
Marketing Operations at
Samsung Electronics in
Seoul, Korea

“ The Responsibility of our

Brand is to make a positive
contribution to changes in
people’s lives.”
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Lord Puttnam CBE
Chairman of Enigma
Productions, Oscar winning
producer of Chariots of Fire.

“ The Best and most

effective Brands of the
future will be built around
knowledge.”
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Should you do it better or do it differently?

Would Good pharma Branding

also be
personalized like Pharma marketing?

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 Interlink’s Motto

In life you have either

Reasons or Results…

3A, Central Plaza, 166, C.S.T. Road, Kalina, Santacruz (E), Mumbai – 400098
Tel: (022) 2666 6611 / 44
interlink@interlinkconsultancy.com / info@interlinkconsultancy.com
www.interlinkconsultancy.com
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