The Pharma industry in India, comprises of three categories of medicines: chemopharmaceuticals (synthetic chemical based formulations), biopharmaceuticals, and herbopharmaceuticals. Can the three categories of medicines for sickness management and preventive care do a Tata Nano effect? In a sense, the hepatitis B vaccine did do something like a Tata Nano effect...when the vaccine was introduced, it was at Rs. 300 odd per dose, and now it is available free of cost at some centres, and at Rs. 25 per dose too. But it was not a true Tata Nano phenomenon as the entry cost was high.
Defining the Tata Nano effect
The Tata Nano effect is a marketing phenomenon, just as we have the Raman effect in physics.
The Tata Nano effect can be defined as a breakthrough marketing concept, that engages the popular attention to gain significant mindshare, expand the market considerably at a lower price point, and fulfill a newly discovered market need.
Characteristics of the Tata Nano effect
1) The Tata Nano effect of any product or service causes significant market expansion by lowering costs and price to customer. As per a CRISIL study, the market expansion for the car market through the people's car (Tata Nano) is 65%.
2) The Tata Nano effect of any product or service will create a worldwide buzz. Every one associated with the automobile industry from Detroit to Delhi to Tokyo are talking about the frugal engineering (or Gandhian engineering) product, Tata Nano.
3)The Tata Nano effect will identify a new market segment for the product or service. The car Tata Nano is now seen as fulfilling the personal transportation needs of parents and their two kids who come from the lower and middle-middle class in cities, towns and villages...
4) The Tata Nano effect will create a positive sentiment, with an infectious excitement that is rare. The launch of Tata Nano car was headlined in The Economic Times as WORLD WATCHES HISTORY UNFOLD...
5) The Tata Nano effect for a product or service will enshrine integrity and commitment as important values. The living legend businessman Mr. Ratan Tata said, "since we started the project four years back, there has been a steep increase in input costs, but a promise is a promise".
6) The Tata Nano effect wins the admiration of competitors too. Mr. Nayan Bajaj, MD of Bajaj Motors called the car cute, Mr. Rajesh Jejurkar MD of Mahindra Renault too admired the car....
7) The Tata Nano effect increases corporate equity and has spillover effect on sales of sister brands. It would be interesting to watch and see if any one will measure the impact of Tata Nano effect on purchases of sister brands like Tata salt, Tata tea, Tata steel etc... The feel-good factor due to the Tata Nano effect is bound to impact the sales of sister brands positively.
8) The Tata Nano effect requires bold, visionary, strong, and determined leadership. When Mr. Ratan Tata spoke of a people's car concept for the first time at a meeting of the Automotive Components Manufacturer's Association, the attendees were silent ... only Mr. Munjal of Hero Motors spoke supportively of this project. Yet Mr. Ratan Tata persevered on...and as they say made history.
It is interesting that the Tata Nano effect buzz is affecting the Pharma community in India too...in the newspaper, The Times of India, dated 19.1.2008 on page 24, Mr. Habil Khorakivala, MD of Wockhardt, envisions of an antibiotic that can produce the Tata Nano effect in the world of medicines.
Among biopharmaceuticals it is possible that from the labs of DRL or Biocon or some other Pharma firm a biotech product can produce a Tata Nano effect.
Cipla is well know for having pioneered the Tata Nano effect in producing and marketing anti AIDS drugs at a low cost.
Herbopharmaceuticals is another area where the traditional wisdom of India can be leveraged to offer a Tata Nano effect in healthcare. For eg., a herbal blend that can act as an antistress agent a-la-Revital, an affordable herbal pill for the trichology and dermatology segment (promotes hair growth and shine of hair, offers lustrous skin), a herbal that acts as an immunostimulant that reduces susceptibility to infections, a herbal blend that helps reduce body weight and sensitize peripheral insulin receptors...
The Tata Nano effect story is not yet over. As per a media report, Mr. Ratan Tata has asked a team from Eureka Forbes to work on a low cost water purification system to improve availability of potable water in India.
The Tata Nano effect is a new business paradigm.
We pray for Mr. Ratan Tata's health and happiness, and thank him for his magnificent contributions to India, which is in the lineage of Shri JRD Tata and Shri Jamshedji Tata.
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