CRMin

Pharmaceutical Industry

Presented by:

Asha AugustineBisni Babu

MidhulajVineesh S.R

Pharmaceutical Industry

• 400 bulk drugs in the Indian market -300

domestically produced

•Evolved through 3 phases

•1970 – industry was relatively small in terms of

production

•70’s-90’s – policy induced growth

•After 90’s – government policies as LPG.

Growth Factors

•The growing population of over a billion.

• A huge patient base.

• Increasing incomes.

• Improving healthcare infrastructure.

• An increase in lifestyle-related diseases

such as diabetes, cardiovascular diseases.

•Adoption of patented products.

• Patent expiries and aging population in the US,

Europe, and Japan.

•15 of the 20 largest companies in the world have a

presence in India.

•Pharmaceuticals are the 10th largest FDI-

attracting sectors in India.

Key Characteristics of the Indian Pharma Sector

• Self-reliance displayed by the production of 70% of bulk drugs.

• Low cost of production.

• Low R&D costs.

• Innovative scientific manpower.

• Excellent and world-class national laboratories.

• Increasing balance of trade in Pharma industry.

• An efficient and cost effective source for procuring generic

drugs.

•Higher GDP growth leading to increased disposable income in the hands of

general public.

• Cost competitiveness.

•Low-cost ,highly skilled set of English speaking labour

force.

• Growing treatment native patient population

• Poor all round infrastructure .

• Stringent price controls.

• Lack of data protection.

• Poor health insurance coverage

Strengths Weaknesses

• Global demand for generics rising

• Rapid OTC and generic market growth.

• Increased penetration in the non – metro markets

• Large demand for quality diagnostic services

• Increase healthcare insurance coverage

• Significant investment from MNCs.

• Public – private partnership for strengthening infrastructure.

• Labour shortage.

• Wage inflation.

• Government expanding the umbrella of the Drugs Price

Control Order (DPCO).

• Considerable counterfeiting threat.

• Competition from other emerging economies.

ThreatsOpportunities

Market Trends•Global market- the Indian Pharmaceutical market

currently holds a modest 1-2% share, but it has been growing at approximately 10% per year.

•The size of the domestic pharmaceutical market is larger than export market.

•Drugs for diabetes and cardiovascular diseases are expected to see the fastest growth.

•The retail pharmaceutical market in India is presently highly unorganized.

• Country's pharmaceutical market is a US$ 7.3

billion opportunity with the domestic retail

market expected to cross the US$ 10 billion

mark in2010 and -US$ 12-13 billion in 2012.

• The Indian pharmaceutical industry ranks 4th

in terms of volume (with an8 per cent share in

global sales) globally.

Branded Generics

•Generic drug - drugs marketed under its chemical name with out advertising.

•Braded generic -the drugs which are marketed under a brand name. This has got more market than generic medicine.

•90% of total sales.

•15-20% growth in next decade.

Top 10 players year ending 2010

•Cipla 19%•Abbott 25%•Mankind Pharma 37.20%•Pfizer India 23.6%%•Alkem Labs 23.3%•Zydus cadila 24.1%•Sun Pharma 25.3%•Piramal Healthcare 18.6%•GSK India 19%•Ranbaxy 15.5%

•A decade old.•First mover advantage.•Added sales force by nearly 50%.

Customers and Characteristics

•Retail sales – 3 quarters•Hospitals•Nursing homes•Physicians•Medical stores•Government and private health care service

providers -18.3$ (63%) private.

TOP 10 COMPANIES 2011

• Ranbaxy • Dr. Reddy’s Laboratories• Cipla• Sun Pharma Industries• Lupin Labs• Aurobindo Pharma• GlaxoSmithKline Pharma• Cadila Healthcare• Aventis Pharma• IPCA Laboratories

Ranbaxy Laboratories LTD

Ranbaxy Laboratories Limited is a pharmaceutical company that was incorporated in India in 1961. The company went public in 1973 and Japanese pharmaceutical company Daiichi Sankyo gained majority control in 2008. Ranbaxy exports its products to 125 countries with ground operations in 46 and manufacturing facilities in seven countries. Ranbaxy predominantly deals with the production branded generic drugs.

CIPLA LTD

Cipla Limited is a prominent Indian pharmaceutical company, best-known outside its home country for manufacturing low-cost anti-AIDS drugs for HIV-positive patients in developing countries. Founded by nationalist Indian scientist Khwaja Abdul Hamied as The Chemical, Industrial & Pharmaceutical Laboratories in 1935, Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control, depression and many other health conditions, and its products are distributed in more than 180 countries worldwide

Dr. Reddy Laboratories

Dr. Reddy's Laboratories Ltd is an integrated pharmaceutical company focused on providing medicines through its three business segments: Global Generics segment, Pharmaceutical Services and Active Ingredients segment and Proprietary Products segment. Dr. Reddy's manufactures and markets a wide range of pharmaceuticals in India and overseas. The company has over 190 medications, 60 active pharmaceutical ingredients for drug manufacture, diagnostic kits, critical care, and biotechnology product

Key Success Factor

•Large portfolio and cost-effective medicines.

• Innovation and continuous learning.

• Teamwork and collaboration.

• Respect for individual.

• Social responsibility and harmony.

• Quality.

Customer Retention/ Defection

•5% - 25%- 80% (cost of acquisition).

•Customers can only be retained if they are loyal and motivated to resist competition.

•High satisfaction with product performance and customer service.

•High willingness to recommend company to others.

Customer Facing Process..

•Wholesaler•Pharmacy•Hospital•Doctor•Patient•Healthcare portals

Wholesaler

Pharmacy

Patient

Hospital

Doctor

Pharmaceuticalcompany

Healthcare portal

Operational & Analytical CRM

•Closely related concepts, but define different aspects of a CRM program.

•Operational CRM relates to the operational factors of implementing a CRM system.

•Analytical CRM refers to customer data analysis to determine behavioural responses.

oCRM with regard to Industry..

•Business operations connected to building and managing CRM in a company.

• Includes operation functions such as sales force automation and call centres.

•Client-facing applications and integrated channel management.

•Provides significant enabling capabilities to improve front-office operations and analysis.

•The technology strategy of managing and interacting with customers across channels.

•Business applications include: sales targeting, campaign management, online branding& marketing and call centres.

•Includes provision of personalization options, registration features, newsletter sign-ups and message boards.

Analytical CRM..

• Analytical CRM builds on operational CRM.

• Establishes information on customer segments behaviour and value using statistical methods.

• Relates to data mining and interpretation of data collected to make effective business and customer- centred marketing decisions.

• Customer’s transactions can be analyzed over time.

Solutions & Providers

Microsoft Dynamic CRM solution

▫Doctor-centric view of all touch points such as daily calls by medical representatives.

▫Campaign management, activity planning and approvals.

▫Campaign expense management.

▫Integration with ERP for payment processing .

Benefits..

• Ability to view all customer centric transactions in one system.

• Assessment of marketing efficiency to compare plans with their implementations.

• Analysis of sales force effectiveness as well as Key Performance Indicators (KPI).

• Prudent marketing spends.

• Campaign performance tracking.

PharmaNET by IBIS

▫Supply Chain and Sales software for Pharmaceuticals.

▫Covers Sales & Distribution, Supply Chain Management, Inventory Management, Warehouse Management and Purchase Management function.

▫Web based integrated solution

▫Multiple levels of Security - User level access control for each operation.

▫Complete audit trail.

Benefits…• Web based: Anywhere, Anytime & Any authentic User.

• User-friendly GUIs: Ease of operations at the Client-side.

• Multi-layer Security: Limits risk of information pilferage.

• Multi-currency: Uniform sales reporting in single “Base currency”.

• Bar coding of products for ease in tracking.

Field Reporting Software & Sales Force Automation

▫Works both on mobile and web to get accurate and timely data and analyzes and improves field effectiveness , anywhere & anytime.

▫Data - Consistency/Integrity/Accuracy

▫Substantial savings - Cost of communication.

▫Facility to capture detailed information on Customers (Doctors) and offers MIS to Top Management

PVNET for E2B Electronic Adverse Event Reporting

▫Used by medical device manufacturers, pharmaceutical manufacturers, and contract research organizations.

▫Web based.

▫Scalable high performance system with advanced technology.

▫Duplicates tracking.

▫Multiple format support for in-bound safety data.

▫Multiple language narratives

▫Management dashboard for work status and team productivity.

▫Global Dictionaries Support: Drug

Privacy..

•Privacy involves governing and protecting the use of personal information.

•Confidentiality and integrity are classic protections, governing who may view or modify the information.

• Information security monitoring and controls need to be extended to remote and portable devices.

• Information security programs must be reengineered to protect personal information.

•Privacy notices, consents, protections, and other controls may be standardized and monitored from a central location.

•Creation of a firm foundation of national privacy and data protection laws.

•Proliferation of smart and networked devices, which generate, store, process, and transfer increasing amounts of personal information.

KPI’s for CRM in Pharma Industry

•Learning and growth.

•Business process.

•Customers acquired

(new) and retained.

•Financial results.

•Sales.

•Service levels.

•Brand awareness.

•Market research.

Future CRM Trends

•From historical analysis to predictive modeling.

•Opinion leader management.

•Planning marketing and sales campaigns.

• Identifying prospective customers.

•Centralized CRM.

Continued..

•Process alignment.

•Analyzing trends.

•Report generation.

•PRM(Patient Relationship Management).

•Mobile intelligence.

Case Study: Dr.Reddy’s

• PMSR’s didn’t have effective tools.

• PDA and mobile- one way traffic.

• The combo was maintenance intensive.

• Mobile CRM solution.

• Solution provider’s willingness.

• Ensured PMSR’s could work offline (out of coverage/

low bandwidth).

• Backed the device with web portal (in case of failure).

Benefits:MR’s upload customer details, visit schedules and

expenses claims.Pull out relevant information from the company's ERP. Access information on the past interactions with the

doctor.Inculcate better personal bonding and create a better

impact.Back at headquarters, managers can enjoy mobile

access to dashboard reports . Makes it easier to keep a closer tab on the activities of

medical representatives and their efficiency.