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TAS
TAS 2016 In-house Selection Process Prayas by Sanofi-Aventis in India
TASScheme of the presentation
STRATEGIC INTENT Please comment on the
strategic intent behind conceptualisation of the Prayas Initiative by Sanofi-Aventis.
What do you think were the risks involved in this initiative right from the beginning?
GROWING MARKET POTENTIAL
NEW PROMISING FRONTIERS OF GROWTH: BoP
CREATING SOCIAL RELEVANCE
COMPANY’s GLOBAL STRATEGY
• Leaders in the market.• Involve partnerships
within all service providers.
• Stagnant growth in urban market.
• 2nd biggest pharma market after US - USD 55 bn by 2020 .
Rising income level in rural areas.
Growing Patient base.
Improvement in healthcare infrastructure.
Wider Insurance Cover.
Bridging Diagnosis-Treatment gap.
CME to doctors for Awareness to Advocacy to Adoption.
TASScheme of the presentation
STRATEGIC INTENT Please comment on the
strategic intent behind conceptualisation of the Prayas Initiative by Sanofi-Aventis.
What do you think were the risks involved in this initiative right from the beginning?
Universal Risks
Specific to Prayas
• Low Govt. spend.• Poor Healthcare
infrastructure.• Poor basic
hygiene and living conditions.
• Extensive availability of spurious drugs.
• Tangible returns from a socially based model.
• Presence of players - variety of products, high cost advantage, very high penetration reach and coverage
• Unorthodox/Unethical promotional practices
TASScheme of the presentation
VALUE PROPOSITION What were the value
propositions for each of the key stakeholders of Prayas initiative?
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.
KOLS• Name associated
with a Social Objective.
MENTORS
• Network and collaborate with the experts.
• Certification by ACPMENTEES
PATIENTS
SANOFI-AVENTIS
• Promotion of brand in Rural areas,
• Mentee Doctors prescribe Sanofi’s Productions out of gratitude.
• Opportunity to upgrade medical knowledge and practice
• Advanced treatment• Diagnostic treatment than
symptomatic treatment.
TASScheme of the presentation
VALUE PROPOSITION What were the value
propositions for each of the key stakeholders of Prayas initiative?
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.
The GAME PLAN of Competitors:
• Disease education focus :Focus on disease education rather than health education.
• Smaller packs since usage was in small quantity but frequent. Many are daily wage earners/low income consumers and could not afford to buy in bulk.
• Medical awareness directly to end users (patients) -. (Novartis)
• Entering with established product portfolio (Chronic care products) eg Eli-lilly and Novo
• Mobile clinics to promote drugs (Novo-Novardisk)• Collaborating with NGOs (Eli-lilly, Nicholas Piramal)• Traditional Advertising eg hoardings, promotional
event eg by Strepsils• Unethical practices by some local players.
TASScheme of the presentation
CUSTOMER INSIGHT What customer insight
did Sanofi-Aventis leverage to address the target market in India?
Are any of these insights applicable to other products and services across industry sectors?
Customer Insights:
• Doctors in rural areas:• Doctors enjoyed “godlike Power”. • Preferred certain brands • Doctors Unaware- leading to misdiagnosis.• No specialist doctors. All for one doctors• Latent demand for Knowledge:
• Lacked advanced knowledge. • Not up to date with the recent developments. • Did not have opportunity to network and
enhance their knowledge as compared to doctors in Tier 1 cities.
• Sales in rural areas was in acute diseases rather than chronic (used to decide on product portfolio)
• Customer Profile : Low income - Small but frequent purchases
• Role of Chemists: Patients not always went to doctors. For small ailments they used medicines given by chemists.
TASScheme of the presentation
CUSTOMER INSIGHT What customer insight did
Sanofi-Aventis leverage to address the target market in India?
Are any of these insights applicable to other products and services across industry sectors?
Applicable in other sectors as well:• Purchases in rural areas are “influenced” rather
than “informed” - Target influencers• Retailers influences purchases in rural
markets, especially in FMCG markets.• Building an intangible brand value goes a
long way in customer loyalty and retention.• Products such as mobile and computers had
very little penetration until recently, resulting in high bargaining power of some few shopkeepers.
• Create a different product portfolio to address the unique needs of BoP market
• Smaller packs used by CavinCare to penetrate in daily wage earners market. (First company to introduce sachets packing in India)
TASScheme 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.
Challenges of marketing to BoP:• Logistics• Local competition• Need Quick fix solutions
• Don't go to doctor - symptomatic treatments• Customised product portfolio that is attractive to the
target segment• Emotional purchases
TASScheme 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?
Innovative approaches: • Workshop Solution - creating an intangible brand• Develop a product portfolio suitable for BoP
• Acute Product Care Portfolio• Careful branding
• Encashing Hoechst legacy• 3rd party manufacturers for cost advantage• Added a new sub-channel to distribution network
TASScheme 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?
Tata group company• Tata Chemicals - Tata Swachh
• Sensitisation• Product portfolio • Branding• 3rd party manufacturing• Distribution network
TASScheme 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?
Key Challenges & Recommendations in sustaining Prayas
• Growing Competition - competitors adopting similar measures aggressively
• Scaling and expanding the initiative : vying for funds • Retaining and adding more KOLs/mentors/mentees• Retaining sales force• Digital interface - poor digital infra• Extending initiative to patients and pharmacies• Expanding product portfolio and increasing
prescriptions
TAS
THANK YOU!
TAS
Annexure 1
Key featuresPureIt Swach
PureIt Compact PureIt classic PureIt Autofill Swach Swach Smart Swach MagicAvailability of different ranges and variety
Three different varieties are available in the range Rs. 1000 to Rs. 3200
Three different varieties are available in the range Rs. 499 to Rs. 1498
Technology It is a 4 stage purification technology comprises of microfiber mesh for dirt, compact carbon trap for parasite & pesticide, germkill processor for bacteria & virus removal and a polisher for making the water tasty and odourless.
TATA Swach® TSRF™ technology is based on nanotechnology efficient for removal of bacteria and viruses. Built around a bulb-like water purifier made of natural elements like rice husk ash impregnated with nano-silver particles,
Cost Rs. 1000 Rs. 2000 Rs. 3200 Rs. 1498 (including extra bulb)
Rs. 1213 (including extra bulb)
Rs. 499
Refill / operational cost Rs. 280/ 1000 litres Rs. 550/ 2250 litres Rs. 550/ 2250 litres
Rs.299 / 3000 litres
Capacity of the purifier 14 litres 23 litres
18 litres
Time taken for purification 9litres/1-5 hours 3-4litres/hour
Purification life of the bulb/germkill kit
1000 litres 2250 litres/1500 litres
3000 litres
End of life indicator Yes YesAuto shut off when unsafe to use
Yes Yes
Running water Not required Both with & without
Not required
Water wastage No NoClear taste, removes odour Yes, other than high saltiness Yes, other than high saltiness
Gas/electricity/any additives/boiling
Not required Not required
Plumbing or expensive installation & maintenance required
Not required Not required
Removal of salt / TDS Not done Not done Certification CTFTRI, Mysore, IPHA, Kolkata, IPHE,
NEERI,SPDL, Glasgow, SHTM, University of London etc.
CTFTRI, Mysore, IADFAC, Bangalore,Microtech Services (Wessex) Ltd, UK,AES, UK, Vitens Laboratory, Netherlands etc
TAS
Annexure 2: Sanofi performance
• Market capitalisation of INR 10k crores currently• Ranked 17 among Indian pharma firms