Sunday, June 5, 2011

Waves of change

Above image from here.

There are strong winds of change in India, there is a major trend in Indian society towards transparency, anti-corruption and clean governance. Swami Ramdev, the Yoga evangelist and social reformer, held a major anti-corruption cum yoga camp at Ram Leela Grounds in Delhi on 4.6.2011. In the wee hours of 5.6.2011, a 5000 strong police force evacuated the thousands who had gathered there using force and tear gas attacks. The winds of change are evident.

Anna Hazare and Swami Agnivesh, both social reformers and Sri Sri Ravishankar, the international peace worker, discoverer of the Sudarshan Kriya pranayama technique, and social reformer are also working hard to strengthen the anti-corruption movement.

Winds of change in pharmaceutical industry

The pharmaceutical industry is not inured to these societal changes. The DoP (Department of Pharmaceuticals) has drafted a Uniform Voluntary Code of Marketing Practices, which will be reviewed after 6 months. This code will be made statutory if there is no voluntary compliance by pharma industry. The chief mover of the voluntary code for pharma marketers is the DoP.

It is interesting to observe that the DoP has asked for feedback on the code of marketing practices for pharma marketers, at binayk.singh@nic.in

This move is keeping with the major trends in Indian society, for increased transparency. Perhaps, world over, it is one-of-its kind move, by a Govt. department, to regulate pharma marketing activities. Overall, one has to appreciate this initiative.

Abroad, including in USA, pharma marketing is a very controversial process. This is because of the huge marketing expenditure on prescribers. There are lots of web pages on the controversial activities of pharma marketers abroad, one just has to search on google.

What should the focus of any pharma marketing code be?

Pharma marketing is a very responsible and critical business function. Pharma marketing activities affect fortunes of pharma enterprises in a big way. If pharma marketing is weak, if the doctor perceives that value delivery is insufficient, then marketing outcomes are dis-satisfactory to pharma enterprises.

The main reason why pharma marketing is a tricky process, is that the patient has no say on the brand purchase. The doctor prescribes the medicine being promoted to him by pharma marketers, and the actual purchase is done by the patient. Thus, hand-in-glove relationships between doctor(s) and pharma marketers serves mutual interests. Hence, the need for a code of marketing conduct today!

Pharma marketing code is an interesting document and reads as a long list of do's and don'ts. In fact, the pharma marketing practice code needs to be marketed, not just put out!!

For instance, the pharma marketing code can be brought out in the form of an illustrated book, with each do's and dont's supported by graphics and any live examples from the market (the brand name and pharma marketer identity can be hidden), this will drive the point home better. If there are no examples to emphasize the points in the code, then the points in the marketing code tend to become ambiguous. Live market examples and supporting graphics will make the code points more clearer.

For eg., in point no. 2.4 of the marketing code, if live examples are provided in form of supporting literatures from market or any other market evidences, then point no. 2.4 will be clearer.

There can also be some disputes, for eg., the word 'new' cannot be used for more than 12 months (says point no. 2.3) (but what if the pharma marketer has gone in for a staggered launch - not nation wide launch, by the time it comes to the last geographical region for new product launch, the time for use of the word 'new' would have expired.) Thus, in such a scenario, a regulator may raise objection, which will affect pharma marketer's marketing strategy. And why should "new" mean only 12 months, why can't it be 3 years? Innovations do not get diffused easily. This "new" point needs to be illustrated by live examples to clarify further.

The marketing code ought to have a VISION STATEMENT. This can provide the spirit of the marketing code for pharma marketers.

For eg., the vision statement can include the following points:

"THE CODE OF MARKETING PRACTICE FOR INDIAN PHARMACEUTICAL INDUSTRY endeavors to promote transparency, put information of relevance to public access, prevent acts of omission and commission that may take place between pharma marketer and prescribers, promote legitimate interests of patients, and ensure that the healthcare system in India is the world's best and absolutely trusted.

THE PHARMACEUTICAL MARKETING CODE ENVISIONS TO MAKE THE PHARMACEUTICAL MARKETING PROCESS A KNOWLEDGE DRIVEN PROCESS, rather than a pure commercial value delivery process. Pharma Marketers will be encouraged to contribute to knowledge dissemination and renewal, which will help patient interest. "

It is the age of the internet, in this vein, the pharma marketing code should emphasize that each pharma marketer should compulsorily provide the complete product monograph of each marketed brand on the company website, the print literatures should provide the relevant URL of marketed brand.

Point 3.5 is well written: that promotional materials should be in good taste and non-offensive, however, live market examples should also be provided to illustrate this point. The same should apply to point no. 3.10

Points no. 4.1 to 4.5 deal with the tricky part of regulating in-clinic activity of Medical Representatives and pharma marketers. MR activity involves striking deals with prescribers and shoring up brand sale values. This means, pharma companies should educate themselves and MRs on the right way of in-clinic transactions.

Doctors should also be provided with education on the pharmaceutical marketing code, so that, they do not make uncomfortable demands. Doctors leverage on their prescribing power to strike rich bargains with pharma marketers.

Merely making a marketing code for pharma marketers is not enough. Doctors should also be aware of the pharma marketing code and should adhere with its provisions.

Points 5.1 to 5.5, on right use of samples: Samples are known to boost sales values, they are also known to end up at pharmacies or are sold at lesser value to patients by pharmacists or doctors. Samples ought to be given free for trial ... however ... Will a mere pharma marketing code ensure right usage of samples?

One way out is ensuring that doctors keep a written document (this is said in point no. 5.5) on a Govt. format, on the samples received by him and the usage of samples ie., to which patient he has given it etc. This document can be periodically checked by DRUG INSPECTORS during their field visits, drug inspectors should be empowered to check this document (kept by doctors). This may help rein misuse of samples. Furthermore, sale of samples by pharmacies should be strictly penalized.

When psychotropic substances are sampled, this becomes more tricky. For eg., it is well known that Corex and Phensedyl are abused "medications" including by doctors and medical students (Corex from Pfizer is sold only in India, no where else in the world!)!! Although, point no. 5.4 says that such psychotropic samples should not be given, pharma marketers should be allowed to sample these, but a record of same should also be kept by doctors.

The tricky part of the code is 6.1 and 6.2. The gluttonous appetite for gifts by doctors, has led to major fortunes for pharma companies, many a Ayurvedic company has its sales running on the oxygen of pharma gifting. If gifts are banned, bust goes the prescription flow!

This even threatens the functioning of product management department, in most companies, their major duty is lining up gifts to be provided month after month!!

Pharma companies gift electronic goods, once I was waiting for my turn to call on a skin specialist, when a MR and his manager walked into the clinic, to gift an electronic audio item, the doctor sent back the MR to fetch another model which he wanted, the doctor was not satisfied with the model being gifted!

Wining and dining, along with the throwing of a seminar by a KOL (Key Opinion Leader doctor) is a regular feature.

Pharma companies are known to gift every thing under the sun!!

If gifts are not provided by MRs, they are shunned by doctors!!

A pharma marketing code for gifting and sponsorship (point nos. 7.1 to 7.7) is not easy to practice!! DOCTORS OUGHT TO KNOW ABOUT THE pharma marketing code for these items too!!

TO BE PRAGMATIC, THE PHARMA MARKETING CODE, SHOULD PROVIDE FOR ETHICAL GIFTING AND SPONSORSHIP PRACTICES. The code should be revised and include a section on ethical gifting and sponsorship practices (relationship marketing).

By inviting a cross-section of views from doctors, pharma marketers and general society members, a frame work for ethical gifting and sponsorship practice should be worked out. Small clinically oriented gifts should in fact be encouraged so that pharma marketers empower prescribers. Relationship marketing has to have an ethical framework, and THE MARKETING CODE SHOULD INCLUDE THE ETHICAL GIFTING AND SPONSORSHIP PRACTICES FRAMEWORK IN A NEW SECTION ON RELATIONSHIP MARKETING PRACTICE.

One way of ensuring ethical gifting, sponsorship and relationship marketing is by ensuring that each and every pharma marketer publishes on a Govt. DoP website, on a monthly basis, the gifts and sponsorship activities done and the names of doctors who are recipients of the same. This will also make doctors wary of asking for and receiving gifts and sponsorships.

THE REST OF THE DOCUMENT FROM DoP ON THE UNIFORM CODE OF MARKETING PRACTICE FOR INDIAN PHARMACEUTICAL INDUSTRY, deals with the system of capturing complaints on pharma marketing malpractices and methods to address the same. As such, the endeavour is quite appreciated, however, in India, all these voluntary concepts will not work!! Only a law may work!! Chalta hai is India, hence, voluntarily following the code will not work.

The pharmaceutical marketing arena is more complex

There are more elements of pharma marketing process which are not covered by the present code.

For eg., pharma marketers provide gifts to pharmacies and retailers, so they may "push" and substitute prescribed pharma brands in favour of the pharma brand that provides best margins or gifts. Retail push marketing is a legitimate marketing effort, however it is a joke like atmosphere, there are companies who provide free goods eg.: 1 box free on purchase of 1 box, or even more!! No free goods go to the patient, it is only to the pharma retailer. The pharma retailer also enjoys the fierce competition between pharma marketers, by getting freebies and free goods (and adjustment of samples!). All these practices are not covered by the present pharma marketing code.

Pharma marketers provide exclusive offers or discounts to chain purchasers or hospitals or dispensing doctors, purchasing the product. The benefits are enjoyed by the traders or these purchasers, the patient does not get the advantage.

Pharmaceutical marketers also produce goods for OTC consumption

Pharma marketers also provide products for OTC consumption (dietary supplements etc). These activities are not addressed exclusively by the pharma marketing document.

PHARMA MARKETING INCLUDES
  • BULK DRUG MARKETING
  • EXCIPIENTS MARKETING TO PHARMA MANUFACTURERS
  • PACKAGING MATERIAL MARKETING TO MANUFACTURING COMPANIES,

and there are interesting 'relationship marketing' practices, here too, which can also be looked into, since these practices also affect the cost price of the product!!

The bright spot is that DoP has begun addressing patient concerns. DoP is trying to discipline the marketing environment. In the end, a disciplined pharma marketing environment will benefit all, including the pharma marketers themselves.

FOR EG., WHEN I WAS TALKING TO A SENIOR PHARMA MARKETING PERSON, HE SAID:"SUNIL, EVEN IF I WANT TO REDUCE SPONSORSHIPS OR GIFTS, I CAN'T -THE MARKET WANTS IT, DOCTORS TAKE IT AS THEIR RIGHT, THEY DEMAND SPONSORSHIPS AND GIFTS, MY FIELD FORCE WANTS GIFTS TO BE GIVEN DURING IN-CLINIC ACTIVITY, THEY FEEL WEAK WITHOUT GIFTS FOR DOCTORS, OR SPONSORSHIPS TO DOCTORS, I HAVE TO COMPLY, THERE ARE PRESSURES OF SALES, GIFTING AND SPONSORSHIPS (of delegate fees, stay, air tickets, vacations, special items, special services like painting the clinic etc), IS A ROUTE THAT WILL HELP ACHIEVE SALES TARGETS. THE FACT, IS NO COMPANY CAN AFFORD TO STOP GIFTING OR GIVING SPONSORSHIPS, ONCE THEY HAVE STARTED IT, IT IS A 'TIGER' - WE HAVE TO RIDE IT AND NEGOTIATE."


CLICK HERE FOR THE UNIFORM CODE OF MARKETING PRACTICE FOR INDIAN PHARMACEUTICAL INDUSTRY.

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Sunday, May 29, 2011

The core is adaptability


Above interesting image and a good write up on adaptability available here.

While imparting training one often wonders, what is the core output that one is trying to provide to the organization, as a trainer?

Is the concept of training, all about the ability of the raw MR trainee to understand what a visual aid is, and how to do visual aid detailing with pointer, or is it making him understand the importance of retail prescription monitoring? Or is it inspiring him with the interesting complexities of pharmacodynamics and pharmacokinetics of a drug?! Or is it impressing him on the approach to marketing, the way the brand is delivered to prospects and customers, ie., internal marketing?!

The answer is yes to all the above questions, yet training is much more than above elements. Verily, training's core output is IMPROVING ADAPTABILITY OF AN ORGANIZATION!!

Change management, adaptability and training

Adaptability is changing oneself or changing a process to fit in to the changes that are occurring (in the environment, internal and external)! In essence, organizations and personnel who are adaptable, are ones who finally grow and survive. Training is an approach that provides organizations and personnel, the knowledge and tools for adaptability!

The need for adaptability is at all levels. The top management, members of middle and lower tiers of management - all require adaptability. The concept of adaptability implies learning and applying new knowledge and tools for growth. Hence, adaptability, training and learning are intertwined processes.

Training for the new recruit

When new MRs or field managers grace training programs, they have definite expectations of empowerment. They are on the look out for product knowledge, field approach tips, and tools that will help them adapt and take on challenges in the market. This adaptability should help the field personnel in 'prospect conversion to customers', and facilitate customer retention. Only when training programs provide skills, knowledge and tools for adaptability, only then will they be perceived as vital and relevant.

Evolving training approaches, strategies, and programs

Training is a very delicate discipline. Trainees may find training experiences useful or useless. This depends on how relevant training programs are. Mere training on product knowledge will not be satisfying. After all, there is 'good to know knowledge' and 'good to use knowledge'. It is the latter type of knowledge that will improve adaptability of the trainees. So it is essential to give practice to trainees so they may equip themselves with talking points of products, only then will they be empowered and adaptable.

Training programs are successful when

a) they empower trainees and enhance adaptability of trainees (to the company culture/environment and to the outer market conditions)
b) during training programs, the trainees are kept highly engaged and they find it fun (while being useful)
c) trainers present training material in 'adult ego state of mind' (not in child ego or parent ego states). It is important to appreciate that trainees in firms are 'grown ups' and are treated as adults, by the trainers. Any delinquent behaviour, or inappropriate trainee behaviour should be dealt with by negative reinforcements, and rewarding positive behaviours of trainees, rather than being a 'controlling parent type of trainer', which will be detrimental to both trainer and trainee. This is easier said than done, because the requirement here is, the trainer should be a very mature, knowledgeable, and emotionally integrated person
d) the focus is on providing training inputs that enhance confidence (fearlessness) and future performance of trainees
e) the training programs provide HOPE. The content, style and presentation should inspire and give hope to trainees that the inputs are truly relevant for enhancing personal effectiveness.

Researching adaptability: Management By Walking About

How to bring in adaptability points in to training programs? The best way that brings in adaptability in to training programs, is MBWA! This stands for Management By Walking About. It refers to the need of trainers to be constantly interactive with present and future trainees, participative in the current processes, and at the same time have a keen mind to learn about market dynamics and environmental fluxes so that the trainer will know the needs of potential trainees in advance, and through his knowledge of market or processes or the environment, the trainer can design training programs that will enhance ADAPTABILITY of trainees (whether they are field personnel or office employees). Training is thus, in its final analysis all about enhancing the learner's adaptability. Only then will training contribute to organizational survival and growth.

PS: Just concluded a good training program at Lucknow!

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Sunday, May 22, 2011

Disruptive technologies





We see above the evolution of audio-video products, each technology innovation has disrupted the earlier market! Today, where are the gramaphone records or audio cassettes?!

Innovation is vital for business growth, this is a well known fact - innovations help business enterprises with breakthrough products or services that provide transformational results. Normally, this huge outcome is a result of successful commercialization of a disruptive technology.

A disruptive innovation comes by applying new set of values. It disrupts the current market. For eg., if a EV (electric vehicle) transforms personal transportation, it is a disruptive technology which will affect fortunes of gasoline based vehicles. Tata Nano is such a disruptive technology car. It is all set to enjoy steady growth after its very poor sale performance (in Nov 2010, its sales had dipped to just 500 cars, today its growth is on!).

Sustaining innovations are non-disruptive improvements in products or service. For eg., combining diclofenac with serratiopeptidase for better efficacy in pain management or offering diclofenac potassium in lieu of diclofenac sodium for hypertensive patients (in pain management therapy). However, sustaining innovations need not disrupt the market, even though they can create transformational results.

The holy grail of innovation is now succeeding with disruptive technology in the market.

In pharma business, breakthrough drugs are disruptive technologies that out-date older molecules and create fortunes through the innovator molecule. In H2 receptor blockers, cimetidine created a wave, this was outdated by ranitidine. Today, cimetidine is off the market. Ranitidine in turn got a truncated market through launch of proton pump inhibitors: omeprazole, pantoprazole, lansoprazole etc. Thus, disruptive technologies create mega markets and sustained results.

Disruptive technology based products need not come through new molecules in pharma markets, new packaging concepts can disrupt the market and produce exciting results. This has been the case with electrolyte energy drink products in Tetra Pak aseptic technology packaging.

FFS (form fill seal) technology for parenterals that was promoted vigorously by the now defunct Core Laboratories, created a disruptive market and Core was a big name in 1990s for FFS parenterals.

From where do disruptive technologies come?

It has been observed by management experts, disruptive technologies do not come usually from established giants or well established companies, as they are used to working in a particular way. Hence, giants on noticing disruptive technology products or services from other smaller companies often buy them up! This is quite common in the international pharma industry.

Creation of disruptive technologies requires a system reorganization in companies. Most established companies like status quo with incremental product improvements or changes, not uncomfortable quantum restructuring! Hence, most well established companies normally do not produce disruptive technology products or services.

Application of mobile based communication in pharma marketing communication is regarding very disruptive. Biosimilar business is also reckoned to be a disruptive marketing model.

The innovator mindset

The amazing and ceaseless changes in society: empowerment, knowledge and idea dissemination, communication systems, and media improvements (like digital media) is heralding a new era of innovation. In the past, quality of medicines was a qualifier, today, an innovator mindset in pharma field is a necessity for survival and growth. One is forced to have an innovator mindset whether it is evolutionary innovation or disruptive innovation, INNOVATION IS A PREREQUISITE IN MODERN DAY PHARMA BUSINESS!

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Sunday, May 15, 2011

Scenario planning in pharma


ABOVE IMAGE FROM HERE.

People work. Why? The reasons are many - such as, NEED, GREED, FEAR, PASSION, INTEREST, OBSESSION, LOVE ... however, the common denominator of every reason is - trying to achieve a particular idea of success. It is this vision of success that drives individuals to work or activity.

The success concept may be simple (such as going to a good restaurant for lunch) or complex (like producing a successful biogeneric). This drive to succeed makes people, teams and organizations work in a particularly way and in a certain direction.

The direction and intensity of work depends on the inputs of decision making. These inputs come from the internal or external environment. The direction and intensity of work sometimes comes from serendipity too. However, firms are always bothered about the direction and intensity of work, as it influences business results.

Companies look at past experiences to create a strategic work plan. Or companies look at possible future scenarios and then plan their work activities. For instance, the futuristic disease trend is CARDIOMETABOLIC disorders. Hence, a firm's activities will be to address the near- future scenario where there will be about 15 crore diabetic patients in India. Hence, scenario planning attitude implies, creating products and services that address this emerging market.

Scenario planning is heavily dependent on knowledge of present and emerging social, lifestyle, disease, economic, cultural, business, political and technological trends. Based on this understanding value delivery mechanisms are engineered so that a firm will have good sales in future time. Scenario planning is the bedrock of long term range planning. It involves understanding SWOT (Strength Weakness Opportunity Threat) matrix of a firm in present time, and planning future outcomes.

Rise of pharmacy power

The emerging scenario points out to the developing power of pharmacies. Organized pharmacy chains in India are getting stronger. Med Plus is today a well entrenched chain. Hetero Pharmacy (a part of Hetero group) is now executing expansion plans to have more retail outlets. Understanding this growing power of pharmacies, and the importance of pharmacies in influencing the outcomes of pharmaceutical marketers, pharma companies have now started chalking out robust plans to address and partner this pharmacy growth.

GSK (as per Chronicle Pharmabiz, 5.5.2011) is now setting up a strong community pharmacy team, which will empower pharmacies to communicate better with patients. By aligning with this pro-pharmacy trend, GSK will be in a better position to retain and expand its shelf space. Retail availability is very vital for pharma success.

In coming 2 to 3 years, we will see pharmacies getting pampered, as much as doctors, to improve pharma marketing fortunes. Hence, relationship management with pharmacies is inevitable for superior value delivery by pharma marketers.

Media power on the rise

Today, the Third Front of the society, the media, is a very powerful institution. Bureaucrats, rich capitalists, politicians AND MEDIA are the change agents of contemporary society. The jasmine revolution in the Arab world, the growing might of Al Jazeera channel, AND the electronic media coverage of assembly and parliamentary elections, are all examples of the omnipresent media. Attitudes and events are shaped by media. Marketers ought to take cognizance of the media might, particular electronic and digital media while crafting marketing strategies.

CHRONICLE PHARMABIZ has been kind enough to publish my article on THE ERA OF LONG TAIL in the May 5th issue, PLEASE CLICK HERE. However, will this esteemed journal continue in its present form and shape in coming years? Futuristic scenario trends certainly do not indicate this. Chronicle Pharmabiz will probably have an extensive digital footprint in coming 5 years.

For eg., a futuristic scenario may be as follows:

A registered mobile no. in the Chronicle Pharmabiz portal will get sms alerts on his mobile at regular intervals (for eg., everyday at 11.00 am and 4.00 pm) such as:

Benadryl sms headlines: GSK sets up community pharmacy team. Click to read full story.

If interested the internet mobile phone user will read the story, and pay through mobile currency. Digital and convergence technology will surely influence the way information, news and knowledge is consumed by individuals and groups of people. The way knowledge, news and information is presented will also change.

Another example of sms or e-mail alert would be: New Feature just published in Chronicle Pharmabiz: THE ERA OF LONG TAIL, please click to read further.

Hence, digital communication will gain traction, one has to understand the unfolding technology and incorporate it into scenario planning.

Savvy marketers of pharmaceuticals will also herald a new digital era of marketing by creatively employing cloud computing, mobile based internet communication, and portals to TRAIN front line pharma personnel, and communicate with target audiences to influence potential and actual prescribers.

Imagine a pharma marketing organization having a mobile phone database of say 300000 pharmacies across India. At the push of a button, the pharma organization can communicate retail bonus offers to them, or information of new product launches, this will create superb marketing results. This is what GSK is aiming for through its community pharmacy team.

Imagine another campaign: GSK launches special Periton lucky dip offer. Purchase 15 bottles of Periton with retail offer, send us the invoice no. and date. Registered Mobile Nos. providing genuine invoice no. will be automatically enrolled for lucky dip. Lucky mobile nos. stand to win a double door refridgerator!!

Such a seasonal offer will surely cause significant uptake of sales, since cough syrups can be pushed over-the-counter.

Communicating with pharmacies will not only be on educative lines, the connectivity can be employed for significant results across the COMMUNICATION MIX:

  • In personal selling, MRs will get better response from pharmacies that have already been primed with mobile phone based marketing activities
  • In sales promotion: retail bonus and gift offers can be communicated, and this will ensure retail offer benefits are transferred (not blocked by distributors)
  • From publicity angle, digital communication will enthrall pharmacists in an engaging way
  • It establishes a possible two way direct communication between database marketing division and the market retailers, improving business results
In years to come marketing activities will surely be two-way thanks to growth of media, particularly electronic and digital. Marketers will be forced to creatively explore the potential of new media and pharmacies for value delivery, catalysing exchange processes, and enhancing customer delight, while building brands, and enhancing market penetration. It is such efforts that will create the WOW factor, build on trust, improve relations, make a buzz in the market and finally, hold on to customers in this ever-changing and fickle world.

In a static world, where uncertainties, disruptions and changes are seldom, such as in protected economies, scenario planning has no significant meaning, it is only sales estimates that are required there.

However, in a globalized and fast-changing world, SCENARIO PLANNING gains significance. Emerging short term, medium term and long term trends need to be spotted, and activities to cash on them is required. It is the age of ECLECTIC MARKETING people - those who are alive to the world around them and creatively use the tools and trends!! Marketing belongs to such people now!! Growth is the outcome of good marketing. Positive change in sales cannot come in routine marketing activities. One has to look out and understand possible emerging scenarios, plan for addressing future scenarios and emerge stronger with time. Marketing muscle depends on scenario planning!

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Sunday, April 10, 2011

Work habit

The above image from here.

The basic premise of organizational functioning is WORK HABIT. People are habituated to working, hence it keeps the organization going. Creating and strengthening of desirable work habits is what organizational management is all about. If the work habit of a MR suffers, employee productivity goes down. If managerial slothfulness happens, managerial working is lackluster. Work habit is vital for organizational well being, it is important for society too.

Eliciting desirable work habits

In any professional situation, there are desirable work habits and undesirable ones. For eg., a desirable picture, is when each employee shows up well on time at the workplace. Another desirable trait is involvement, each employee puts his or her heart, mind and soul in to the assignment and proactively proceeds to execute the tasks. When work is done with involvement, it will naturally show up in the form of acceptable results.

The opposite of the above picture is a situation where lackadaisical employees come as per their whim and fancy. Employees are more bothered about what is happening around them rather than the assignment allotted. Employees are frustrated or bored or distracted. Definitely, it is not a picture of a positive workplace with positive work habits.

Work habits in the pharmaceutical workplace

The pharmaceutical sector is a key, sensitive and health oriented one. Any small mistake can affect patient well being significantly. Hence, there is a lot of emphasis on SOPs (Standard Operating Procedures) and practices (like GMP - Good Manufacturing Practices, GLP - Good Laboratory Practices etc). Habits and attitude can influence pharma enterprise results in a major way.

The most important work trait in the pharmaceutical workplace (in offices, factories, trading establishments and during MR field work) is alertness. Pharma working requires a high degree of alertness and being aware. One cannot mechanically mix ingredients, go through the artworks superficially, or turn up at doctors' clinics and use the visual aid by rote - at every stage of pharma activity there is need to be alert and hence, pay attention to detail. One has to look at copy matter and visuals on collateral(s) with high alertness, lest an error would creep in.

While doing field work, again one has to be alert to the moods of target doctors and chemists, and to the goings-on in the marketplace (such as competitor activity, competitor collaterals, and trade association activities etc). Based on these observations, the MR has to modulate his communication.

How to build alertness in to work habit?

Alertness is being aware and highly observant. One is best at alertness when one knows there is a benefit by being aware. Another step to strengthen alertness is by encouraging reporting. When one knows reports are being read, and are important tools for decision making, alertness gets increased. Alertness creates actionable reports, which can improve organizational outcome.

Alertness helps bring in proaction in to the working style. Alertness also helps create defensive actions in the face of adverse circumstances. Today, NPPA (National Pharmaceutical Pricing Authority) has started a TV campaign encouraging patients to ask doctors to prescribe economical quality brands. The Karnataka Govt. has asked Govt hospital doctors to prescribe 'generic generics' (unbranded generics). The DTAB (Drug Technical Advisory Board) has started "clean up" by banning drugs like PPA and paediatric use of nimesulide. Alertness to such events would inevitably impact strategy making.

Alertness is a habit that reflects knowledge seeking. Alertness implies a problem solving attitude too. Hence, alertness is an important personal and organizational trait that contributes to success.

With a careful placement of positive reinforcers for alertness, an alert organization can be created. Wish you all an alert and happy week ahead!! Thnks for your alert reading please recommend this blog.

Sunday, March 27, 2011

Brand communication

Brands are as important as products, the latter being described in textbooks as the bread and butter of firms. The core concept of brand communication is to reinforce core values of brand benefits in a creative and engaging way. This ensures constant reminder of the brand benefits, maintains brand buying or brand prescribing habits, helps the brand enter new demographic or geographic segments or new specialties (extends prescribers or buyers in to new target segments). In fact, constant creative brand messages through old and new media help in market penetration and market expansion.

Brand positioning statements versus brand positioning words

The core benefit of a pharma brand is wrapped in the product positioning statement, for eg., Inac TR is the key to improved mobility. Brand A is for pain-free injection of diclofenac ... so on. The debate now is whether to focus on the key brand positioning word or the entire statement! For, this is a world of message overload - a doctor is exposed to at least 50 brands per day through the MRs calling on him. So how to position the brand? What should the brand mean to the prescribing doctor in just one word?! Is it possible to distill the entire product message in to just one word! That is the challenge to brand marketers!!

In the complex world of pharma marketing, messages are technically complicated and aimed at the educated doctors, hence, it surely will not be easy to wrap the brand message in to a single word of product positioning. (In FMCG marketing the One Word Equity is used: Eg.: Brand America stands for freedom, Coca Cola is refreshing etc). However, it would be interesting to work out and see if it is possible to distill the pharma brand message in to just 2 or 3 words, and use these in certain brand messaging formats. Telegraphic brand messages can work as prescribing stimuli, reinforcing messages, brand recall communiques etc.

Incidal had such a memorable brand communication strategy, some years back - they would show photos of animals or birds such as deer, cheetah, eagle etc, with a single word caption ALERT! This was the core message of their brand. Their literatures and visual aids had detailed messages on their brand Incidal, however, there were other print promotional inputs that had just one word brand recall communication ie., INCIDAL ALERT!

To a doctor such one-word brand positioning and communication messages are vital for brand recall and brand prescribing stimulus. The doctor has n no. of things to remember. Hence, to help the doctor recollect, maintaining uniformity in brand representation (through standardized typos, brand positioning statements, logos and now brand positioning word(s)) will help improve brand sales.

This one word brand mantra can be very powerful to not only actuate target prescribers - it can also capture the imagination of the entire company and create excitement, it can influence business strategy and future of the business.

For eg., think Google, think search!

Such is the power of the single brand positioning word. Search is a word "owned" by Google. Their by-products like G mail also encapture the spirit of Search. For searching e-mails, G mail is the best option. This is the power of positioning in action and word(s).

Is positioning very important?

Positioning is not the be-all and end-all of business, it is not healthy to have a hyperfocus on brand positioning, the ultimate goal of business is profits and sales. Positioning is an approach to help one's journey in this direction. In fact, sharp positioning is a great help! Brand communication in line with positioning helps further!! And single brand communiques reflecting the product or brand positioning help even further!!!

To latch on to the single word and positioning statement of the brand, one has to gain customer insights of the brand. Diclofenac is a generic that powerfully owns the 'anti-inflammatory mountain'. The word Diclofenac owns the word 'swelling'. When a doctor wants to decrease inflammatory swelling, diclofenac is the drug that he will go for. Similarly, when a doctor wants a safe analgesic and antipyretic for paediatric patients, paracetamol is the generic he will go for. When a paediatrician wants an alternative to paracetamol, mefenamic acid is his or her choice.

Thus, products and brands can succeed by having sharp focus of positioning. While this can help, it can also create competitors who will take up attacking positioning statements, to divide the target audience. This is when, the long tail comes in to play!!

Long tail

Long tail is an economic concept. The idea here is that in a fragmented world and market, it is not easy to find mass markets. Hence, the other option is to have a long tail of brands, where small volumes of products are sold for profit. One has a long tail of products, with various positionings' to cater to many markets and sub-markets. This is also a product management strategy.

In a world with many pharma marketers, where offerings have little differentiation, applying the concept of a long tail is resorted to, for survival in a cluttered pharma market place!

Thus, the challenge is to work on brand communication - with sharp product positioning statements, product positioning word(s) and also in a world where the long tail of products is becoming more common. Thanks for reading this blogpost, please scroll down and read all other posts, spread the message of this blog!!

Sunday, March 20, 2011

Benchmarking

One of the most important approaches in business strategy is BENCHMARKING. In this strategic approach we constantly scour the environment to find out the best practices. After understanding this practice, it is incorporated in to the firm, to enhance competitiveness.

For eg., if many diclofenac brands are being launched, the companies benchmarking the market activities, start launching their own brands of diclofenac to get a slice of the market. Here the benchmarking effort has helped in new product launch. Benchmarking in a way is copying the best practices. Benchmarking is elaborated as the analysis & learning the best practices, and incorporating the same either directly or adapting the practice to ensure cultural fit in to the organization for improved outcomes.

Recently the ET reported on 3.3.2011 that major MNCs are launching a slew of me-too generics (ie., branded generics) to get a share of the booming pharma market. With new product pipelines not ensuring blockbuster successes (ie., atleast 500 million USD annual global sales), the idea is to launch new brands that are copycat brands of successful molecules and improve sales results.

This means MNCs are no longer relying on their personal marketing wisdom. It indicates a new openness in the pharma marketing approach. MNCs too are learning best practices from the market that ensure market success. One of the key approaches for success in India, is launching branded generics. MNCs are betting on this game with firm resolve!

What is the moral of the story?

If MNCs too are interested in launching me-too brands, to ensure better market penetration particularly in to rural pockets, this indicates that MNCs are now learning and incorporating new market practices for improved marketing outcomes. This indicates that the concept of benchmarking has got a boost. Today, pharma MNCs and nonMNCs are eager to learn of the best practices in the marketplace, and incorporate them for bettering marketing results.

BENCHMARKING is about understanding current business practices of one's firm, and understanding the business practices of other successful or above par companies. This learning is then incorporated for enhancing performance and reducing performance gaps.

One cannot operate as a silo. It is the dawn of a new era of benchmarking and co-operative competition, for survival and mutual growth. There was a time when pharma companies would not look outward for answers to their problems. Today, looking outwards and benchmarking has become the norm for survival and growth. Benchmark or suffer degrowth seems to be the guiding principle!

WHOM SHOULD WE BENCHMARK?

The final goal of benchmarking is improving performance outcomes. Thus, any practice that can potentially improve performance ought to be benchmarked! Learning anything that does good to the business is the norm. Benchmarking need not be from the pharmaceutical industry alone; it can also be, say, from the hospitality industry, that is, if the practice can potentially improve performance.

For eg., soft skills are vital in the hospitality industry. Hence, benchmarking soft skill training from hospitality industry for MRs and other front line personnel is certainly not a bad idea. Training of soft skill concepts like time-sense, courtesies, etiquette ... will certainly improve in-clinic performance to enhance sales outcomes.

Benchmarking is about learning and incorporating processes or practices that enhance performance, from other companies in the industry or other industries.

Benchmarking cultural attitudes like a learning culture and horizontal communication was attempted by DRL by benchmarking with software companies. It has certainly helped DRL in creating a learning culture.

http://pibg.org/ this is the website of a pharmaceutical benchmarking group, where success practices are shared among members and improved performance outcomes are sought.

The ultimate goal of 'managements of enterprises' is to constantly improve employee productivity. For knowing how to do this, knowledge sharing of practices is vital. Benchmarking helps with this. Since benchmarking is linked to employee productivity and can enhance the same, there is an appreciation on the concept of benchmarking. This helps incorporate best-in-class practices for better productivity.

Imagine the database of a pharmaceutical marketing company that has mapped the MR reports over three years. Based on this historical data, the infotech group can provide an e-mail to each MR, suggesting to the MR on the important calls that can be made in the next three days, including the timings of the calls, and the products to focus on. This concept can help reduce planning time, ensure better call outcomes, optimize time spent on doctor visits and if the MR is new, it will provide a great helping hand for efficient planning. This is the strength of a robust database department.

Above database based marketing practice is based on practices observed in FMCG companies, which helps them enhance sales.

There are many other types of benchmarking viz., strategic, operational, financial, functional, performance, metrics, best in class etc. With the dawn of a new era of benchmarking (even MNCs are into strategic benchmarking, as they are seen to launch me-too branded generics), benchmarking is on a take-off mode. It is important to institutionalize benchmarking formally to help improve employee productivity and organizational outcomes.

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