Union Budget 2008 will usher an era of nationwide corporate healthcare

The Union Budget 2008 - 2009 presented by Shri P Chidambaram (PC) is a radical one with respect to healthcare. One tends to think Mr. Ram Vilas Paswan, and various other pharmaceutical and healthcare industry bodies have lobbied well. Never before has healthcare and pharmaceuticals been highlighted to this extent.

PC has alloted Rs. 16,534 crores which is 15% more than last year. This is a positive move. An insurance cover of Rs. 30,000/person has been declared for below the poverty line people and workers of unorganized sector (Rashtriya Swasthya Bima Yojana).

Corporate hospitals will spread wings beyond urban areas

One of the interesting policy announcements is the tax break for five years for setting hospitals in non urban areas. This means, coming at the right time, for the top hospital chains like Wockhardt, Fortis Healthcare, Manipal, Narayana Hrudayalaya, and Apollo - they will expand to tier 2 and tier 3 cities. Suddenly, the valuations of potential prime real estate for these hospital projects in tier 2 and tier 3 (5 to 10 lakh population) areas will go up, local nursing homes will get a good valuation for outright sell out to these chains or for setting franchisee hospitals. These tier 2 and tier 3 hospitals of chains will act as feeder hospitals to the main hospitals in the metros. Thus, a branded ecosystem will be created. So it will not be a surprise to see a Manipal Hospital in places like Belthangady, Karkala or Moodbidiri!

Riding on these corporate branded hospital chains will be the health insurance companies in a bid to get more premium payers (a large untapped base lies in Tier 2 and Tier 3 cities) and the branded retail pharmacy chains. For eg., Apollo retail chain, Fortis Healthcare, and Manipal Cure and Care will get commercially benefited by this trend - leading to the retail chain's market expansion.

What will this mean to patients? No doubt, a better healthcare facility in a nearby place (can avoid going all the way to costly cities) - but definitely a costlier option.

Already, Apollo hospital chain magnate Dr. Pratap Reddy sees the opportunity and has praised the policy initiative in the media, Mr. Shivinder Mohan Singh, Chairman and CEO of Fortis healthcare, and Mr. Vishal Bali of Wockhardt have given positive thoughts on this approach of the budget 2008. Wockhardt Hospitals was recently in the news to try and raise funds from the share market through its IPO (for hospital chain expansion).

This massive and fast expansion of corporatized healthcare sector to non urban areas will put a pressure on HRD of these chains, due to non availability of qualified manpower.

The Rs. 75 crore soft power fund

It is interesting to note that Union Budget 2008 has proposed a fund of Rs. 75 crores to promote the soft power of India through the Indian Council of Cultural Relations. It is an interesting strategy as soft power is very important in international relations and world commerce. The Union Finance Minister's speech mentions Indian music, dance, literature, art, cuisine, and films as soft power components. However, AYURVEDA AND YOGA ARE ALSO TWO IMPORTANT SOFT POWER COMPONENTS OF INDIA THAT DO NOT FIND A SPECIFIC MENTION IN PC's SPEECH. It should have. Ayurveda and Yoga are very vital elements and need to be promoted through the fund.

Reduction of excise duty (ED) and customs duty

It appears that PC has tried to work the magic of TATA NANO EFFECT on Pharma! Excise duty has been reduced from 16% to 8%. This will increase affordability of medicines and will hopefully promote patient compliance and off take. The reduction of ED will also help small and medium size pharma companies.

For pharma marketers there will be increased pressure to generate more prescriptions and sell more units. Normally, sales targets are fixed on gross sales value (which includes ED), so even if the MRP is reduced, sales targets will not be reduced, and there will be a increased focus to sell more units to earn the incentive (many companies calculate incentive or commission payable to field force on assessable value that is Gross Sales Value - Excise Duty).

There will be no excise duty on anti AIDS drugs and this will certainly help patients and the National AIDS Control Mission.

Customs duty on bulk drugs is cut down from 10% to 5%.

Overall, it appears that the thrust is boost volumes and make drugs affordable.

This indicates that market penetration will improve and a hint to pharma marketers to strengthen rural market/semi urban market penetration through marketing programs to enhance unit volumes (or targeted sales figures will be tough to reach).

Outsourcing R & D will get fiscal benefit

Recently R & D divisions were hived off as seperate entities by Nicholas Piramal, Sun Pharma, Wockhardt, and Ranbaxy ... and now coinciding with this trend is the move to offer 125% weighted reduction on outsourced R & D.

Paying medical insurance premium of parents will get income tax benefits

This is a brilliant move by PC. In our country without any significant social security system, this will encourage earning children to offer medical insurance to parents and not just family dependents.

Fringe Benefit Tax is untouched

The FBT regime is untouched. Pharma companies invest on travel, physician's samples, gifts, and other forms of product sales promotion. This has attracted FBT and added financial pressure. Relief from the same was expected...but PC has decided otherwise ... mind you Pharma marketers will ask for more "inputs" to increase sales units this year...

There are still some untouched points like biopharmaceuticals and herbal products (both herbal extracts and finished dosage formulations). Polio eradication finds special mention with a focus on UP and Bihar but malaria is not given priority. Similarly, undernutrition or hidden hunger is a cause of morbidity and mortality and needs to be addressed. Overall due thanks to the Union Govt. for a focus on healthcare. I got the above picture from HERE.

Chantix (Champix) or Ashwagandha? The market is 120 million strong in India

At last, Chantix (Brand name in India, Japan, and UK: Champix ) is here ... in India, the last frontier in the smoking cessation market. India is home to one of the largest smoker population - estimated at 120 million. Chantix from Pfizer costs Rs. 10,000 (approx.) for a 12 week course. Chantix is the latest blockbuster from Pfizer - a billion dollar blockbuster drug. Except for a small controversy that Chantix when taken with alcohol may precipitate violent behavior, the drug is well accepted by allopaths. There is also a talk that Chantix may cause suicidal behavior, hence, doctor guidance is very important for taking Chantix. Zyban is a competitor drug that competes in this market space. Compared with Zyban (bupropion), Chantix is shown to be more effective.

It is all about dopamine. Nicotine has an effect in increasing the levels of the neurotransmitter DOPAMINE in the pleasure center of the brain called nucleus accumbens and other centers of the brain (which is shown in the picture above. I got the good picture from HERE). Since nicotine causes stimulation of the nicotinic receptors, it is hard for a smoker to reduce the cravings for nicotine.
The active ingredient is VARENICLINE TARTRATE - a partial agonist of the nicotinic receptor in the brain. Varenicline is a derivative of cysteine - an alkaloid that stimulates nicotinic receptors in the brain. Chantix acts as a partial stimulant (or you can say, partial blocker, when you look at it the other way) of the nicotinic receptor in the brain.

ASHWAGANDHA TOO IS USEFUL AS A SMOKING CESSATION AID: Ashwagandha is well known as Wintercherry. The botanical name is Withania somnifera. The popular rejuvenating herb is an anti-stressor herb. Ashwagandha has a mechanism of action that is a little similar to Chantix. Ashwagandha may help decrease the cravings for nicotine. Withanolides (Withaferin A and B) have an activity in increasing the dopamine levels in the brain. There is an interest to patent the use of withanolides as energy raising nutraceuticals. Thus, Ashwagandha, pharmacodynamically speaking, is useful as a smoking cessation aid. Moreover, the herb rejuvenates the nervous system and relaxes the mind. As such, IF BACKED WITH PERSUASIVE CLINICAL TRIALS, Ashwagandha can be positioned along with smoking cessation drugs like Zyban and Chantix...Ashwagandha is more economical too.

Chantix will cause category expansion. The increase in number of players in a market segment normally causes 'category market expansion', as the noise level goes up, and concept acceptance gets increased. Savvy Ashwagandha marketers can peg on to this trend too. (Brand name in India, Japan, and UK: Champix )

Creating patient flows: the next big event management opportunity

It is the era of free market economy (or almost!?) in India - the marketing or selling across of ideas, concepts, products, and services is inevitable. Marketing operations need to be intensified to ensure that products and services reach the patients; as patients will not come to the product or medical or healthcare service, through serendipity or just naturally ... there is simply too fierce a competition out there for patients. After all, pharmaceutical products (allopathic, herbals, and homeopathic), healthcare products and services, and the healthcare insurance premium business all run on the one factor: PATIENT FLOW! There is also a phenomenon of explosion of professionalism in India. Branding of healthcare services and products is no more an esoteric subject and the preserve of a few creative and innovative types. All players are attempting to be innovative and creative. Branding and brand building is now recognized as a business necessity & not an indulgence. So healthcare product and service providers are all brand building savvy and interested in this activity. Hence, marketing has become just that tougher, with more competition.

Patients are the bread and butter providers for doctors, clinics, hospitals, pharma companies, para medical professionals, healthcare agencies, and healthcare insurance companies. For the advanced healthcare providers like Narayana Hrudayalaya, Wockhardt, Manipal Hospital ... global medical tourists too provide bread, butter, and jam...! So the focus of healthcare product and service companies is to strengthen the patient flow to their offerings, and develop a loyal base of patient pool (strengthen the word-of-mouth among the prospective and actual patients).

What do you see in the above picture of a line of patients?

In the above picture each person sees opportunity according to his or her needs: the physiotherapist sees arthritic patients in need of his service, the clinician sees patients who will pay him the consultation fees for the service rendered, the Pharmaceutical marketer sees each patient as a potential buyer of his products, the Healthcare insurance company sees prospects for purchasing his insurance products and paying regular premiums, the neighbourhood pharmacist sees a line of potential buyers of his medicines (who will come for prescription encashment, and possibly there will be some auto purchase too by the patients), and the diagnostic lab sees potential for conducting tests. The patient flow is the life of all these business activities.

OH! WHAT IF THE PATIENT FLOW IS L..O..N..G..E..R.. is the wish of all the marketers and the service providers detailed in the above paragraph ... that is the need of the marketer and the healthcare entities... and that need of the marketer or healthcare entity can be addressed by the EVENT MANAGEMENT COMPANIES.

Illustration one:
Osteoarthritis and osteoporosis opportunity: The top ailments in India are osteoporosis and osteoarthritis. The bones become brittle and fragile in the former, and in the latter, there is a breakdown of the cartilage (a rubbery cushion-like tissue in the synovial joints like the knees and hip joints). Calcium based formulations and drugs that increase calcium deposition in bones are prescribed in osteoporosis. Yet the osteoporosis opportunity is not tapped to the full extent. Yes, Pharma companies do conduct OSTEOPOROSIS CAMPS in league with hospitals, but the campaigns are not sustained, mainly sporadic to tap in to some patients and reach the sales figures for the quarter... Imagine a multi crore national project of a company like Elder (marketing Shelcal) ... given to an event management agency whose brief will be to launch SHELCAL BONE WEAKNESS AWARENESS CAMPS in clinics, hospitals, clubs (like Rotary and Lions clubs), women colleges (because women are the most susceptible to osteoporosis), women clubs (Mahila mandals) ... at the non clinic venues, neighborhood doctors can be involved ... this approach through an event management company makes sense since the regular field force has other products to promote and other priorities. What the field force can do is follow up on the doctors. The event management company can follow up through database mailer marketing too ... the brand equity of Shelcal will go up and the sales too in about a year's time ... it is a marketing risk worth taking.

Illustration 2:
The cancer opportunity: There are said to be about 25 lakh patients of cancer at any given time in India. Most are head, neck, oesophageal, and lung cancer cases. In fact, Delhi has the world's highest gall bladder cancer cases (in women), while Bangalore has the world's highest oesophageal cancer cases in women. Thanks, to high tobacco consumption/smoking, Mizoram and generally speaking, the Eastern parts of India have higher incidence of tobacco related cancers. The most important point is that 70% of the cancers are diagnosed at the advanced stage in India, thus chemotherapy drugs become supportive and not the first - line therapy. Now, imagine, a company like Cadila or some other Pharma company launches a sustained cancer detection campaign THROUGH AN EVENT MANAGEMENT COMPANY in certain geographies - like breast cancer detection in urban areas like Mumbai and Delhi, oesophageal cancer in Bangalore, and gall bladder cancer disease in Delhi ... what will be marketing results be for the company and the society?

Event management companies with a single focus for sustained campaigning on specific issues will augment the overall marketing - communication efforts of the Pharma company (including the sales force). The result is a greater brand buzz, market building activity, and increased sales...

There are lots of nitty gritties involved in an approach as the above - controls, feedback systems (can it be online and real time?), follow ups, ROI ... all need to be worked out.

There are several issues that can be handled on a campaign basis by event management companies in league with sponsor brands to ENHANCE PATIENT FLOW:
a) drug induced nutritional deficiency (may be Becosules will be interested)
b) stress and fatigue (may be Revital will be interested)
c) oesphagitis, Barretts oesophagus ( a precancerous condition), and oesophageal cancer (may be Aciloc will be interested)
d) anemia - including masked anemia
e) asthma and respiratory disease camps conducted for retail chains and sponsor brands
f) dermacosmeceutical concepts, retailers, and brands
g) HIDDEN HUNGER in children (which may be of interest for Horlicks)
h) prediabetes and diabetes awareness camps
i) diabetic complication awareness camps
j) obesity awareness (particularly through the simple tape measurement method for recognizing abdominal obesity)
k) nutrition awareness
The scope is wide and the need is real. Thanks for reading this blogpost, please do read all othe blogposts too, scroll down and click on OLDER POSTS if required.

Power retailing

I GOT THE ABOVE IMAGE FROM: CLICK HERE.

The new trend of retailing is leading to a rise of the retailing power and influencing the availability and consumption of goods and services like never before. In fact, retailing power is squeezing the manufacturers like never before. Walmart's greatest collaborator is Procter and Gamble. The other collaborator is China - the global sourcing hub of Walmart is a place in China called Shenzen. The catchword in retailing is footfalls, and this influences consumption. Thus, Walmart is using its sourcing bargaining power to ensure that goods are purchased by the retailing giant at low prices, and sold at everyday low prices, as per its philosophy. Walmart has used this strategy in dispensing pharma goods at low prices too. Thus, retail chains have a great impact on availability and profitability of manufacturers.

The rise of Private Labels. The rise of Private Labels held particularly by retail giants is giving rise to a new trend in retailing. Consumers are led to private label products on retail shelves. Retail availability influences brand consumption significantly. Private label in India has changed sales trends and consumption patterns. After all, ultimately, the consumer or prospect wants quality goods, availability, and best value-for-money. Retail chains are at the forefront of contact with prospects and customers, hence, they can jack up sales of Private Labels significantly, when they sense it is to their advantage.

Pharma retailing and rise of Private Labels? Pharma retailing is a new phenomenon in India. Subhiksha is the trendsetter Pharma retail chain. Fortis Healthworld, Manipal Cure and Care, Mediplus, Medicine Shoppe, Apollo Phamacy, Trust, Pill and Powder, Aushadi, Reliance Wellness stores, Health and Glow, Gaurdian Lifecare, Global Healthline, CRS Health, Lifeken... are some of the healthcare and Pharma retail chains making waves. Already, chains like Manipal Cure and Care have entered in to exclusive agreements marketing dermacosmeceutical brands like Living Proof. After consolidation of retail space and ramping the nos. of retail outlets of each chain... NEXT WHAT?... OBVIOUSLY IT WILL BE THE RISE OF PRIVATE LABELS IN PHARMA CHAINS...what can stop Subhiksha from retailing its own brand of paracetamol and other analgesics and anti-inflammatory drugs? Lifeken may start its own PRIVATE LABEL of fast moving antibiotics like amoxycillin and cephalexin. Trust is in infact owned by Medreich a Pharma manufacturer. It will be easy for Trust to launch a Private Label range of Pharma goods (both and allopathic and ayurvedic).

There are manufacturers and retailers interested in Pand healthcare retailing: CLICK HERE

Manufacturers in Pharma retailing: Perhaps the first of its kind and a visionary strategy of setting up a manufacturer's retail chain was by The Himalaya Drug Company, Bangalore...This retail initiative primarily serves as a touch and feel brand store, but with the rise of franchising power (both business development format and product distribution format of franchising), this company will end up owning an ecosystem for ensuring effective retailing, availability, and sales of their herbal active range. This retail set up strategy creates independence from muscle flexing from big Pharma retail chains. Already there are health camps being conducted routinely at the Himalaya retail outlets that is leading to increasing footfalls and loyal customer base.

For such retail chains, the next logical step is to launch a branded PRODUCT USERS CLUB. This will help create a database of product users with their characteristics. Mining this data base will help in targeted marketing communication activity, and cross selling and upselling activities. For eg., let us say, a TB patient purchases Liv 52 DS (for management of TB drug induced hepatic dysfunctioning), and joins the HIMALAYA PRODUCT USERS CLUB. This patient later receives a leaflet on Koflet (cough syrup and cough lozenges) through the targeted marketing initiative. Such a customer is likely to revisit the exclusive Himalaya retail chain and purchase Koflet and perhaps other goods. There is enhanced footfalls, and better word-of-mouth through such initiatives.

'Manufacturers to hospitals' marketing relationship. A survey of the high price and high margin oncology chemotherapy drug market shows a new trend. There are some private cancer treatment hospitals particularly 150 bed and above, that are entering in to contract relationships with small quality manufacturers to supply certain onco drugs like docetaxel directly to their pharmacy at highly discounted rates (disintermediation at work). The hospital pharmacy authorities even dictate the price and terms of payment. Branded onco drugs marketed through MRs are now facing such "private label" competition too. These high value brands are also taken for long periods of time. For eg., I met a patient's attender who was purchasing tamoxifen tablets (for the management of breast cancer in the patient) for the past five years. So this business is very attractive for private label Pharma marketers too.

So we observe that POWER RETAILING is a phenomenon that is in tandem with worldwide trends. This phenomenon is changing the landscape of retailing and marketing. Power retailing represents a challenge to manufacturer-marketers, in the Pharma world too.

Thanks for reading this blogpost, I invite you to read all other blogposts too. Thanks...

CLINICAL RESEARCH CITY, a useful concept

I got this great picture for this article from HERE.

By now it is well documented that India is a gung-ho destination for clinical research. Most MNCs find doing clinical trials and other forms of clinical research in India, practical, sound business-sense, and trustworthy. Clinical research is a big money business concept now with high growth potential, just as medical tourism is an attractive option.

Recently, Narayana Hrudayalaya made it it to the headlines, twice. One: this famous institution headquartered in Bangalore has got an international accreditation. And, secondly, Narayana Hrudayalaya in collaboration with Biocon's chairperson, Ms. Kiran Majumdar, is setting up 5000 bed healthcities (Narayana Health City). The concept of Healthcities is to provide world class healthcare (surgical and non surgical), to both international and Indian patients.

Based on the health city concept, it would also be interesting to have a private - public partnership initiative of a CLINICAL RESEARCH CITY, that will ride on the clinical research wave. It is important to note that concepts such as, textile city concept, electronic city concept, Hitech IT city concept, Biotech Park, help create a focussed ecosystem for the concept. Thus, a CLINICAL RESEARCH CITY concept, will create an ecosystem for facilitating the receipt of orders for clinical trials, conduct of the clinical trial or research, and then process the results of the trials (by IT or ITES companies) within the precints of the city itself.

Most of the clinical research right now is not related to drug discovery (in time to come it will gain traction, particularly when new novel drugs like balaglitazone will succeed); it is bioequivalence (BE) and bioavailability (BA) studies that are the bread and butter business of clinical research in India, right now. These studies are done to launch new me-too products in India, and also to establish that generic equivalents are indeed on par with the innovator formulation.

The clinical research city concept will help India tap the chemopharmaceutical (fomulations based on synthetic chemicals), biopharmaceutical (formulations based on biologicals) opportunity, and herbopharmaceutical (herbal formulations) opportunities :

a) The multi billion US dollar generic opportunity. It is said, that a 70 billion USD worth of branded patented drugs will go off patent in 3 - 4 years, and to launch the generic equivalents for exports from India to USA, one needs to conduct BE/BA studies.

b) The biogeneric opportunity. India is said to be on the threshold of scripting a success story in the field of biogenerics, as certain biotech products too are going off patent. And to supply biogenerics, again clinical research studies will be required to establish that the biogeneric equivalent is indeed as safe and efficacious as the innovator brand.

c) For the Phase 4 (post marketing surveillance clinical trials), studies. As pharmacovigilance becomes more and more important, and regulatory standards are raised higher, Phase 4 clinical trials and data will begin to acquire more importance. After all, it was Phase 4 data that drove the proverbial last nail in the coffin of Vioxx. Phase 4 data will require a lot of statistical processing, the CLINICAL RESEARCH CITY can provide such locations for organizations that play on statistical processing.

d) Bioinformatics and personalized medicine is creating the buzz. Bioinformatics and personalized medicine concepts depend on the analysis of the genetics (genome) of a person or group of persons. Based on the genetic profile, therapies and drugs are designed. IBM has a computational biology department that is working in this direction. In fact, the CLINICAL RESEARCH CITY concept will attract such companies working on futuristic and cutting edge technologies to set shop, and thereby strengthen the clinical research ecosystem in India.

e) Drug discovery clinical research (Phase 1 to Phase 3, in particular) will get a filliip. These studies are long drawn and will mean a continuous or long term business for the clinial research provider, and a CLINICAL RESEARCH CITY will help create the ecosystem and confidence for collaboratively working on such projects with innovator companies.

f) Clinical research for herbopharmaceuticals. As regulatory standards raise their bar higher, and the public awareness grows on clinical research, herbopharmaceuticals will not be inured from conduct of good quality clinical research. It is the CLINICAL RESEARCH CITY, which will help such formulators to further strengthen the brand presence and launch new herbopharmaceutical formulations.

ALL IN ALL, A CLINICAL RESEARCH CITY (with a single window system) WILL PROVIDE A DEDICATED LOCATION, AND BUILD AN ECOSYSTEM FOR FURTHERING THE CLINICAL RESEARCH BUSINESS OPPORTUNITY IN INDIA. This concept will also help create the right infrastructure, and cut costs through pooling of certain infrastructural elements and equipment. Thanks for reading this article...please do read all the other articles in this blog.

MANAGING PATIENT PERCEPTIONS

Managing patient perceptions is vital for the commercial success of any drug or therapy today. It is not just the prescriber’s perception about a brand, drug or therapy that matters. The prescriber is very important, but in the age of the empowered patient, and a powerful media (both user created and traditional media), the patient’s perception too is vital and is crucial for the success of the marketing efforts of a drug or healthcare formulation. This is a new dimension in marketing management of pharmaceuticals and healthcare products.

How a Patient-Support Program Increased Therapy Participation 20%, Upped Sales

Tracleer won approval in 2001 as the first oral treatment for pulmonary arterial hypertension, an illness difficult for patients to grasp. Tracleer helps patients control the symptoms, but it has drawbacks. Faced with high patient-dropout rates early on in treatment, the drug's maker needed to change patient perceptions

http://www.marketingprofs.com/casestudy/73/?adref=hpcs

MANAGING PATIENT PERCEPTIONS IS IN FACT, THE NEXT LEVEL OF PHARMACEUTICAL MARKETING.

Managing patient perceptions and CRM with patients is a brand engagement strategy. This enlivens the brand, helps the target audience appreciate the brand attributes and benefits better, and hence makes a person use the brand better in his or her life.

Brand engagement and patient perception

Engagement, a broad term encompassing everything from sampling to product placement to personal service, is the process of forming an emotional or rational attachment to a brand by using it or viewing it in a personally relevant context.

Let us say, Liv 52 (a popular herbal for hepatic dysfunction) is used by the patient on advice of the doctor in cases of hepatic dysfunctioning like nausea or fatigue or outright jaundice. Brand engagement strategies through the doctor to the patient can enlighten the customer that constipation, anal discomfort, and piles too are manifestations of liver dysfunction, and in case a patient suffers such symptoms (at a later date or happens to know a person with such symptoms) the top-of-the-mind recall will be for Liv 52.

Brand engagement can be heightened through an online brand website that provides education and an enhanced experience to the netizen on hepatic dysfunctioning and role of Liv 52.

Brand engagement with patients, increases the perceived value of the product from the viewpoint of the patient. This also enhances the word-of-mouth phenomenon in the patient and medical community.

Similarly, brand engagement strategy is best suited for products in the OTX space, like Women’s Horlicks, Amway products (in 2008 Amway products in India will be promoted to 5000 doctors for recommendations), and Revital (from Ranbaxy) that is officially promoted through a rainbow coalition strategy.

After, fatigue, PAIN is a most common symptom in clinical practice. When the word pain is mentioned, more often than not, the top-of-the-mind recall goes to Crocin (paracetamol) and Moov (the topical joint pain reliever), in India. Brand engagement strategies through the doctor to the patient, can engage the patient on aspects of pain and how pain management products work, what pain tries telling to the body, and how patients can engage their relationships with the doctors to better their pain management strategy.

About brand engagement Mr. Nick says:

So teach your customers well. Remember that knowledge leads to action. Give them the gift of useful and relevant knowledge, and in return they will give you brand loyalty and word-of-mouth.

Overall, strengthening the Pharma product promotion to patients is vital given the current power of media that addresses health issues to patients and society directly, moreover, web 2.0 is redefining the conversations on health issues, and there is a distinct empowerment of patients on health issues. Hence, it is useful for marketers to address patient perception of drugs, therapies and healthcare products.

The above image is from HERE. Thanks for reading this blogpost and kindly do scroll down for reading all the other blogposts, including by clicking on older posts.

Lord Balaji in Indian Pharma

India is a land of a multitude of Gods. One of the very popular deities is Lord Balaji or Lord Venkateshwara of the Tirumala hills. Routinely Indians make their way to the seven hills, and seek the grace of Lord Venkateshwara for temporal and spiritual gains. In fact, many successful business people in India make Lord Balaji a silent partner, and they donate a predetermined percentage of the profits in the hundi or offering box at the Tirumala temple of Lord Balaji. So what does Lord Balaji have to do with Indian Pharma?

The exciting new drug (Balaglitazone from Dr. Reddy Labs) being developed for diabetes management is named after Lord Balaji.

Balaglitazone is a new drug candidate that is undergoing phase III multi centric clinical trials. Balaglitazone is being developed for the management of type II diabetes. The goal is to market this drug to around 70% of the globe in 2011. Phase III is a significant achievement in the clinical development of the drug; it means that after completion of this clinical study, and the two year carcinogenicity testing of this drug, that is going on, marketing can be taken up. I wonder what marketing plans are being cooked up for this drug. One can expect something striking after all the success of balaglitazone, will be hailed as the coming of a new age in the Indian Pharma Industry.

The success of balaglitazone will be closely watched by international and national Pharma giants. Its success will provide encouragement to the ongoing drug discovery programs of companies like Sun Pharma, Glenmark, Ranbaxy and others.

If balaglitazone becomes a success one can expect that clinical research activities in India will get a major fillip.

Balaglitazone's success will cause a multiplier effect in the confidence of Indian researchers to produce new drugs.

Inventing is one part of the game, marketing is another cup of tea

It is no doubt, that inventing a new drug is a significant milestone in the Indian Pharma industry, however, making it a winner in the market, is another cup of tea. For eg., recollect that the first drug to be invented was a neuromuscular junction blocker chandominium sulphate (named after Chandigarh), which is no where in sight now, Ranbaxy tried to commercialize the product with little success. Similarly, Cipla had tried to make the gugulipids a big product, it is nowhere in sight.

Take a leaf from the launch of Tata Nano

The launch of the motor car Tata Nano was a huge success (yes, it is still not available in the market, come Oct 2008, Tata Nano will be available in India). The Tata Nano launch was memorable for the effective media management and creating a positive buzz ie. positive word-of-mouth. Word-of-mouth is critical in the launch phase. Any negative word-of-mouth at the launch phase, will affect the product establishment. For eg., Exubera was a victim of negative acceptance and disheartening word-of-mouth. In the age of web 2.0 and internet, word gets around faster... a metaanalysis study of rosiglitazone (another glitazone a class to which, balaglitazone too belongs) too has affected the Rx generation of this product. Tata Nano was fantastic in media management, creating the best word-of-mouth - after all, the first impression is the best impression. These skills in creating the right first impact will be crucial for balaglitazone's success.

What needs to be understood is that in the modern e-age, what counts is not just the confident acceptance by the opinion builder doctors or prescriptions in favor of a product, but the right word-of-mouth in society and in the medical community as a whole. The buzz is equally important. The target audience for the marketing communication activity for balaglitazone is not just the target prescribers, but all other stakeholders in the healthcare system - the pharmacists, para medical staff, health counsellors, diabetes bloggers, and health media - as they have a considerable influence on the adoption of drugs and therapies. The internet has lowered the power that prescribers' wield over the patient community. Furthermore, pharmacovigilance has gained new importance. All these need to be maintained in mind while chalking out the MARKETING COMMUNICATION STRATEGIC PLAN.

The crucial link between market success and balaglitazone will be the MARKETING COMMUNICATION PLAN. It will be interesting how DRL will evolve the marketing communication plan and who the participants will be in putting together the elements of the marketing communication plan for balaglitazone.

This is vital since a lot depends on the marketing success of balaglitazone. After all it is the confidence of the entire nation's Pharma industry that is at stake.

End quote:

“Any communication or marketing professional needs cross-cultural research and communication skills to be able to succeed in the future.”
Mary Tharp

“The single biggest problem in communication is the illusion that it has taken place.” George Bernard Shaw

Many thnks for reading this blogpost, please do scroll down and read all other blogposts, including by clicking on OLDER POSTS. I got the above picture from HERE.

WOMEN'S HORLICKS: its launch creates excitement in the OTX space

The reality of the Indian pharma and healthcare marketplace is that it is an OTX market (ie. a combination of prescription and over-the-counter). This means, opinion builders like doctors and pharmacists are important in influencing the consumption of healthcare goods. The rising power of the media has given rise to the empowered consumer who now exercises his or her choice in making healthcare decisions. Moreover, the rising incomes in Indian families, particularly in double income families, have led to greater consumption of healthcare goods. It is perhaps in this backdrop that Women's Horlicks is launched in the OTX market; mind you there is also a Mother's Horlicks that addresses the needs of pregnant and lactating women, and is marketed as an exclusive prescription product.

Modern India lavishes its attention on women. With the gender ratio getting skewed, women are in the numerical minority, and thus there is greater attention and resource allocation for women. Slowly but surely, the traditional partiality towards boys is getting replaced with a sense of gender equality, particularly in urban areas: mainly the metros and Tier 1 cities/towns. And women are shoulder to shoulder to men in earnings...these trends have ensured a growing market for women oriented products – for instance, the derma and hair care products, and beauty products are showing great growth.

Women’s Horlicks is targeted to women of the age group of 19 to 50 years; thus, Women’s Horlicks is targeted at these phases of a woman’s life: adolescence – young woman - menopause. Women's Horlicks offers micronutrients to help in anemia management and osteoporosis (remember low back pain is one of the first signs and symptoms of osteoporosis and is more common in women). Mother's Horlicks in the meantime addresses the needs of pregnant and lactating women through the prescriber's pen.

To further bolster the establishment of Women's Horlicks, one can air, actual users sharing experiences, and start an online campaign to reach out to netizens who would gladly put their money in favor of purchasing Women's Horlicks. Social media marketing can put exciting focus on brand development of Women's Horlicks.

A discount coupon scheme (encashable with repeat purchase of Women's Horlicks) can strengthen repeat purchases and thus aid brand establishment. Or the doctor can be involved in providing the endorsed (with her signature) discount coupon.

One more aspect that can be highlighted is the fact that Women's Horlicks strengthens eye health, which gets affected with aging.

All in all, the timely launch of Women's Horlicks (riding along with Mother's Horlicks) will help boost the sales, and contribute to the health of the balance sheet of Glaxo SmithKline Consumer Healthcare; and help contribute to women's healthcare...

Training - a transformational force

It is long heralded that people in an organization make the difference, and more so now... in the digital era where knowledge is free (like Rabindranath Tagore has said in his poem Where the mind is without fear), and in a globalized economy where in free markets raise people value...

One of the interesting anecdotes in MR field lore is given below:

In Mysore, in the late 90s, three MRs would combat each other for market shares: Mr. Girish Damle promoting Brufen (from Boots, now Abbot), Mr. Vivek Balse promoting Dolonex (Pfizer) and Mr. P promoting Voveran (Aventis then Ciba Geigy). All were titans in the field.

Once, Mr. P met a doctor, promoted Voveran intensively using a clinical study that established Voveran as the only NSAID that has spasmolytic effect. The doctor was convinced and excited too.

The same day afternoon, Mr. Vivek met the doctor. Before Vivek could promote Dolonex, the good doctor very forcefully put across the same points about Voveran that were detailed by Mr. P. He wanted Vivek to basically surrender and accept the superiority of Voveran over Dolonex.

Vivek paused, then forcefully said, “Dr., in every spasmodic pain please prescribe Voveran and in every other pain please prescribe Dolonex.”

The doctor was stunned. You see, if a doctor gets around 10 patients complaining of pain, only 2 will have spasmodic pain. Further, in such patients there are other preferred spasmolytics. So in effect, Vivek had taken commitment for Dolonex for maximum prescription mileage. The doctor was amazed with Vivek’s response, got up and shook hands with Vivek, and said “That is why Pfizer is Pfizer!”

Mind you, Mr. Paremeshvaran is himself a legendary MR of then Ciba Geigy who served in Mysore. In fact, here is a true incident that reflects the scholarship and communication skill of Mr. Paremeshwaran (a B Pharma of yesteryears):

Mr. Parameshwaran was doing his regular work in Mysore Medical College, Mysore and there in he happened to stand and detail to a group of postgraduate students. Just then, while he was detailing Voveran, a Professor walked in and asked "What was happening?" in a loud and authoritative tone. Mr. Parameshwaran meekly replied, "I am detailing Voveran to your students". The Prof. said to the post graduate students:"Don't you know who he is?" "He is Mr. Paremeshwaran...students please stand up and Mr. Paremeshwaran please sit and detail to them." This true incident recaptulates the respect that Mr. Parameshwaran commanded in the medical community of Mysore as a MR.

In fact, with all humility I add, that my father, Late Mr. Suresh G Chiplunkar, who worked with Wyeth too commanded a lot of regard, respect, and affection in the MR and medical circles at Mysore for his hard work and intelligence.

Once it so happened that I accompanied my couzin to a computer school to enquire about computer courses. Before answering the query the MICE institute counselor and instructor looked at me and asked who I was. I introduced myself, and listening to my surname he inquired if I was related to Mr. Suresh G Chiplunkar. I replied that I was his son. He respectfully recollected an incident, wherein it so happened that the instructor's wife while driving her moped was hit by a bus. And she was lying unconscious on the road. My father who was going around on his scooter for visiting doctors, saw this incident. He immediately organized for transporting the unconscious lady to K R Hospital, Sayyaji Rao road, Mysore, and using his contacts ensured that the lady was treated promptly. My father afterwards without even revealing his identity went on with his field work. Later on, the instructor came to know the complete story, and about my father's identity and help, through a nurse. The instructor gratefully remembered this incident and my father.

MRs can have a good hold over the medical profession through their expertise and referral power.

Training brings to the fore this confidence and the blooming of the latent expertise and referral power of every MR.

Referral power and expertise power are the qualities of a person that make a difference in the field and for business results - these qualities can be strengthened and built up through training.

I got the above image from HERE.

I dedicate this blogpost with respect to my late father Mr. Suresh G Chiplunkar, (my dad passed away on Jan 27th, 1996), Mr. Vivek Balse, Mr. Paremeshwaran, Mr. Girish Damle, and other stalwart MRs of Mysore and Bangalore (like Mr.Tulasibabu, Mr. Venkatesh, Mr. Nanda Bapat etc) who were my father's colleagues/friends and have seen me from my childhood days. My respects to all of them.

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The TATA NANO effect for Pharma

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.

Thanks for reading this blogpost, please do scroll down and read some more interesting blogposts, and also click on older posts for reading more... I GOT THE ABOVE PICTURE FROM HERE...PLEASE CLICK HERE.

THE CONCEPT OF PHARMA eMARKETING MANAGER

This blogpost is a sequel to my earlier blogpost on the Digital Nervous System. Please CLICK HERE.

By rote, Marketing Managers’ influence the 4Ps (Product, Price, Promotion, and Placement ie. distribution and availability), and increase the consumption of products. The intention is to generate higher sales and profits. In this activity, precise data will help Marketing Managers and Product Managers (mini Marketing Managers) generate better approaches, strategies, and campaigns. In essence, accuracy and immediacy of information ensures better bang for the buck. The digital nervous system will enable Marketing Managers and Product Managers get precise and timely data to analyze, and obtain information for refined marketing campaigns and strategies.

The management and analysis of data generated by the digital nervous system will require field level experience. This is important to obtain correct insights, and contribute to generation of ideas.

A SUGGESTED VISION STATEMENT FOR AN eMARKETING MANAGER

The digital revolution is on in the society. It is a major trend and the sagacious will bank on it to add value, and augment business processes. The pharma industry is not insulated from the digital trend.

The activities of an eMarketing Manager will:

a) Help identify target markets, gather and maintain electronic database (qualitative and quantitative) on target markets (prospects, doctors, chemists…): the electronic database will provide new prescribing opportunities, maps of the prescribing behaviors, OTC push and pull behaviors…
b) Provide value added inputs and strengthen focused strategies through collaborative working for best return on investment (ROI) on use of inputs
c) Provide e-learning tools that will augment marketing – communication activity of field force and other media addressing the target markets
d) Creation of digital tools that will provide clinical insights on promoted brands and collaborate with knowledge workers (doctors, medical and paramedical professionals) to strengthen delivery of value added patient welfare. The digital tools will also enhance brand communication efforts aiding brand recall, and building prescribing habits in favor of the promoted brands

For eg.: often hypertensive patients on atenolol therapy are not advised by the family doctor to progressively stop atenolol therapy before undergoing coronary angiography, it is often overlooked by the family doctor, delaying the coronary angiography intervention, a brand digital tool can help prompt the family doctor to initiate the withdrawal therapy and then recommend coronary angiography

e) Collaborate with field force to provide online and enhanced in-clinic activity
f) Creation of digital tools to strengthen clinical/hospital pharmacy practice and deepen relationships with Pharmacists for brands (to enhance OTC push – pull)
g) Institutionalize the market learnings' in the company system for future use. Thus, even if a MR leaves the territory, the market learnings are present in the digital nervous system, and this business intelligence can facilitate working of new MR(s)
h) Facilitate mapping of macro and micro trends (through analysis of data) and aid generation of successful campaigns
i) Strengthen concept selling of new therapies and concept brands through online support
j) Create brand communities through interactive brand websites based on the OTX model
k) Help generate the appropriate mix of promotional inputs and approaches in the OTX model and thereby provide the best bang for the buck

Suggested mission of an eMarketing Manager :

To ensure that the digital mix and non digital mix of Pharma product promotion will be 50:50, and help increase revenues by 50% through superior eMarketing initiatives.

The bottomline: eMarketing initiatives will collaborate and synergize with existing marketing structures, add value, increase perceived value of brands, support activities of field force digitally, boost brand equity and brand sales, and provide better ROI.

Some ways in which eMarketing Management initiatives can help:

Case A: Let us say, data analysis shows that there are five important doctors for brand Revital who have the same birthdate. Based on this information, a bond-through-Revital campaign can be launched...In this campaign, each of the doctors can wish each other (even though they do not know each other) through a card and gift sponsored by the company. And they can add a key message on the card on how they find Revital useful in clinical practice. This special CRM activity based on the data generated by the digital nervous system can be easily implemented by the field force, and will result in even greater brand loyalty and exponential results. Revital is a unique marketing approach wherein Revital is marketed to both doctors and end consumers - the marketing model being called Rainbow coalition marketing model.

Case B: Let us assume there are three diabetologists of Delhi in the age group of 35 years to 40 years who are prolific prescribers of Becosules Z. Of course, the word prolific needs to be defined quantitatively. This gives an opportunity to launch a special CME for Delhi " The Z factor in diabetes management". While Z stands for Zinc, it need not be mentioned in the invites, and this will enhance attention value of the CME. The CME can be targeted mainly to doctors in the age group of 30 to 40 years. A senior renowned doctor in the age group of 50 can be invited to give the scientific lecture on zinc, and the other three diabetologists can address the audience through case studies in their practice where Becosules Z was useful, as brand advocates. Due to this campaign, the three diabetologists will further increase their prescription patronage, and those doctors who are giving a moderate support will increase their prescription support, while doctors who are yet to give support will be motivated to increase prescription support.

The above are but two hypothetical case studies in which the eMarketing Management initiatives have helped. In fact, the digital nervous system can further help in pinpointing target doctors who are early adopters for new therapeutic concept products.

All in all, it can be summarized that eMarketing Management is a sunrise concept based on the digital nervous system, and can produce better results in Pharma marketing of chemopharmaceutials, herbopharmaceuticals, and biopharmaceuticals.

The above image is obtained from www.cmrus.com/cmr/emarketing.php

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Digital Nervous System and Pharma marketing

Marketing is a dynamic field (cliché!!). The dynamic nature of marketing is such that the concept of marketing is defined differently today. The yesteryear classical definition of marketing is: Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. (American Marketing Association). The contemporary definition of marketing is that Marketing is an organizational process to create, communicate, and deliver value to customers; and manage customer relations in ways so as to benefit the company. Thus, the latest definition of marketing addresses it as an organizational process (not departmental!) of value delivery.

Value is from the customer’s point of view!

It is important to realize here that the concept of value is from the customer’s point of view, and not from the company’s angle. What is believed to be of value may not be so from the customer’s angle. It is another issue that it is the marketing communication efforts of the company that augment the perceived value of a product of service offering.

One cap fits all: is it value delivery?

Pharma companies are noted to follow a typical “one-cap fits all” strategic process of value delivery. In a market showing niche behaviors and microtrends this most certainly is a contra approach.

The concept of Pharma marketing is typical: a MR is recruited, given a tough leather bag filled with a visual aid, promotional literatures, samples, and gifts (complimentaries). It is then left to the MR to gain detailing time, negotiate, and bring in sales. So the hapless MR pursues the target doctors with the above said communication process and ammunition. He chases a chimera called sales target, and is sandwiched between the company and the doctors/chemists.

If sales are not in line with the preset target, the MR resorts to more head banging, shoe- in-the-door approach, persuades, pressurizes, adjusts with samples – gifts…and ultimately tries to gain the monthly sales target.

And add to this typical challenging field situation, MRs miss calls, doctors do not give sufficient detailing time, or the MR gets transferred to other territories or may be even leaves the company or the profession itself.

In the end, the company loses all learnings’ gained by the MR with respect to the territory, and has to restart the sales call process once again with a new MR.

Now let us picture a situation wherein a Pharma company knows the territory doctors through its information system (that has recorded the profile and other aspects of the doctor)...and based on this knowledge a MR launches a new brand to the doctor with a field call every 20 days to the target doctor, and in each visit gives an exciting therapeutic update promotional literature and nothing else. After 6 months the MR sponsors the doctor to a CME...voila, the doctor increases his prescription patronage many times over. The MR has won over the doctor based on the business intelligence given by the company about the doctor. IS SUCH A SALES SITUATION FOR REAL...IS IT POSSIBLE...IN REALITY?

In the ordinary course a MR would have gone the routine way, used all his tactics to get detailing time with the doctor, launched the brand, sampled heavily (since he is a target doctor) and even given the doctor a complimentary telephone no. book (since it was the strategy of the company to give the same), which the doctor would have thrown in to the dustbin...and the MR would have felt happy with himself for all the good work, but at the end of the day, the company is dissatisfied with the business results...one more brand launch has fizzled out... SCARCE RESOURCES HAVE GONE WASTE...(MR time, samples, complimentaries have failed to achieve the strategic results...the blame game has begun in the company).

IS THERE A WAY OUT OF THE ABOVE VERY COMMON PICTURE IN MANY A COMPANY? Is it possible to institutionalize market learnings? How to convert data in to information and then in to actionable approaches or ideas? How to leverage on information for the best ROI? How to spot micro and macro trends from data and create successful campaigns? How to hit it right every time?

Yes there is a way out...one can get a better bang for the money...the answer comes from BILL GATES... the author of Business @ the speed of thought where in he introduces the concept of DIGITAL NERVOUS SYSTEM.

A digital nervous system is the corporate, digital equivalent of the human nervous system, providing a well - integrated flow of information to the right part of the organization and at the right time.

Let us imagine a MR dynamically and effectively implements campaigns, and the result is an avalanche of prescriptions that clear the stocks at retail and stockist shelves. The MR happily relaxes the last week of the month, as the company is not able to replenish stocks that have been cleared. Moreover, getting a scent of the MR's success, three competitor companies launch their campaigns, so by the time the stocks have arrived, the prescription cycle has been broken, and slow moving stocks pile up at the MR's stockist level adding to the woes of the company. Probably if the digital nervous system was good, such a situation could have been avoided.

A digital nervous system consists of the digital processes that enable a company to perceive and react to its environment, to sense competitor challenges and customer needs.

Let us say a doctor wants to clarify the dose of a brand of loratidine to an elderly patient...he logs on to the brand website, and gets the required information...the brand website is another touchpoint between the doctor (knowledge worker) and the company.

A digital nervous system requires a combination of hardware and software; it is distinguished from a mere network of computers by the accuracy, immediacy, and richness of the information it brings to knowledge workers and the insight and collaboration made possible by the information.

Here the digital nervous system connects the doctors (knowledge workers), product promoters (MRs and the field force), and the company together - collaboratively. Let us say a doctor has a query, and informs this to the MR. By evening the MR through his e-mail conveys the query to the company, in turn, the query is processed and the answer is transmitted by e-mail, sms (if possible the complete answer or the alert is through the sms) to the doctor and the MR.

A digital nervous system connects fast, strengthens bonds with customers, and facilitates value delivery instantly...SO WHO WILL BELL THE DIGITAL NERVOUS SYSTEM CAT?!

Obviously the top management, and the marketing domain leaders of the company. The possibilities of application of digital nervous system to processes in Pharma marketing companies is only limited by imagination. Pharma marketing is now on the cusp of a digital era...the digital nervous system paradigm is on...

Quiz: Which Indian Pharma company has made strong advances in the concept of Digital Nervous System?

Ans.: As per market talk, it is Cipla. (Comments on this point are welcome).

This blogpost is dedicated to Bill Gates and the concept of Digital Nervous System, please scroll down and read all blogposts below, and by clicking on Older posts.

2008: THE YEAR OF ‘ATTENTION ECONOMY IN PHARMA AND HEALTHCARE’

Digitization is known for creating platforms for quick and 360 degrees of communication. And these internet based interactions have created new ideas since ideas breed ideas. Knowledge needs constant exchanges to create new knowledge, and digitization – internet facilitates this.

The current buzz word is ATTENTION ECONOMY

This word was coined by Her Simon, as per Wikipedia. The essence of this concept is that in this wired world, there is information overload, and the competing sources of information have created a poverty of attention. Information overload leads to the all important question: WHAT TO DO WITH ALL THE INFORMATION?

This is where ATTENTION ECONOMY comes in to play. Attention economy is all about harvesting information to create profits (Quote from interview with Mr. Kris Gopalakrishnan, CEO and MD of Infosys in Economic Times, dated, 31.12.2007, p no 5). With information overload coming of age there is a need for providing value added information in a relevant way for better decision making.

Attention economics is an approach to the management of information that treats human attention as a scarce commodity, and applies economic theory to solve various information management problems.

Herbert Simon was perhaps the first person to articulate the concept of attention economics when he wrote:

"...in an information-rich world, the wealth of information means a dearth of something else: a scarcity of whatever it is that information consumes. What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the overabundance of information sources that might consume it" (Simon 1971, p. 40-41).

Using Attention Economy practices in Pharma

Pharma and life sciences is about information, and more information. Today there are three categories of Pharmaceuticals available: BIOPHARMACEUTICALS, HERBOPHARMACEUTICALS, and CHEMOPHARMACEUTICALS. Essentially this implies: vaccines, sera, statins, and other biotech products in Biopharmaceuticals; herbal medicinal products in Herbopharmaceuticals; and chemical based pharmaceuticals in Chemopharmaceuticals. From the prescriber or patient or customer point of view there are the above three categories of healthcare products, and a lot of associated information. Moreover, healthcare is such a subject that there is a lot of information search behavior. There is tremendous collaborative information and idea sharing on healthcare matters through web 2.0 tools. Thus, there is a great scope and challenge in creating specific attention economy services and products that benefit healthcare companies, healthcare organizations, prescribers, healthcare professionals, patients, prospects etc.

Attention Economy in Healthcare

There is a lot of action in healthcare information harvesting with Google Health and Microsoft Healthvault going headlong in to this domain. The interesting point is how will Google and Microsoft use Attention Economy practices to harvest information and add value to the information – seeker.

For instance, when a person in China suffers from common cold, he will opt for Traditional Chinese Herbal medicine or boil ginger roots in water and use it for relief than go in for a Western medicine product. These approaches will get noticed and get adopted by a curious netizens.

Information, ideas, and idea clutter (or idea overload)

Information feeds imagination and breeds ideas. Thus attention economy, by harvesting information, and facilitating decision making will obviously create more and more novel approaches (ie. Ideas). And from information overload, the stage is set for idea overload. For instance, today in management of arthritis, there are a no. of therapies and moieties available from pain management NSAIDs, steroids, glucosamine, MSM, chondroitin, sodium hyaluronate injections…what does the prescriber or patient use? Which idea or approach to follow? What are the new benchmarks? Hence, attention economy practices will try to resolve this information and idea clutter to provide workable approaches in a situation (for the prescriber and patient), in the future.

Meta-analysis

Metaanalysis is a type of information harvesting practice that can affect profits negatively or positively. In a metaanalysis, results of several clinical studies are analyzed, and a conclusion is drawn. In a metaanalysis a new clinical study is not done, but a new statistical analysis is made by pooling the clinical data of several studies. Publication of metaanalysis studies can have a high impact, for instance the ROSIGLITAZONE (AVANDIA) METAANALYSIS STUDY, which reported that there is a potential for serious adverse cardiovascular effects of treatment with rosiglitazone for type 2 diabetes. In this case, attention economy (harvesting information for profits) indicates the pitfalls of glitazones in clinical practice, and indicates to R & Ds on how to allocate research funds.

So which type of attention economy service will succeed in the information marketplace?

The answer obviously is that attention economy service, which will win the TRUST of the prospect or customer. The basics never change. People do business with people - TRUST is the watchword for winning attention economy services or products. In the healthcare domain, Google has a leap start as it has won a lot of trust for providing healthcare information of value to seekers, will Google Health take it forwards in 2008?

2008: WILL USHER IN A NEW ERA OF ATTENTION ECONOMY PRACTICES IN HEALTHCARE. Do you agree? Thanks for going through the above blogpost, please go through more blogposts by scrolling down and clicking on older posts, when required. For the URL of the picture please CLICK HERE.