Ferudun Kandemir 05.06.2014

Differentiating the generics in emerging markets

1. How are generic products perceived in emerging markets?

2. What are the key points in order to create a good product strategy?

3. What is customer oriented contextual segmentation?4. How do you examine current dynamics to create

preferable generics in emerging markets?

Key Points

How are the generic products perceived in emerging markets?

• Prices of generics are low when compared with originals• Equivalent to the original or same as the original• Adequately exists• Matured products• Out products• Products that original branding is not possible• Products that marketing is not easy • Having important competitors• Products that brings the comment of «me too»• …

Some pointed out in activities

•Campaigns,•Arrangements in trade conditions,•Frequent doctor and pharmacy visits with unnecessary sales staff•Control instead of performance management•Materialistic approaches,•Pressures on prescription or sales,…

Many valuable molecules or products might become unsuccessful, without achieving its real value in the market

How we can be proactive and foresee the challenges, and enable solutions before entering into this vicious cycle?

What are the key points in order to create a successful generics strategy?

• Population • Age distribution

• Related Female/Male ratio • Prevalence of disease

• Hospitalization rate in patient /out patient)

• Treatment protocols after hospitalization …………….

Disease/Incidence Map

•Expiring patent

•Regulation

•Financial structure

•Cost pressure

•Competitors

•Country dynmics

•HR structure

•………………………….

Barriers

Potential

IBS/Incidence Map

12,2 8,19 13,6 9,9 7,828,1 26,3 24,3 20,5 9,7

75% nonconsulter

25%consulters

Source: 1. Drossman and Thompson. Ann Intern Med. June 1992;116(pt 1):1009-1016. 2. Sandler. Gastroenterology. August 1990;99:409-415. 2.Stockbrügger,1996

What do you think the most important key point?

Customer

Do we analyze final consumer enough? Do we adequately pay attention to their perception and expectations?

Product

Place

Price

Promotion

Marketing Mix 4P Segmentation

Consumer groups,with similar needs

Ora potential user group

Is it possible with the given conditions to understand end user’s perception and expectation closer while using those methods?

How can we get closer to the patient?

Type I Diabetic Age group 29-49 Lives in İstanbul  

Are these data enough?

•Need for a convenient pocket sized blood glucose monitor

•Would be preferable if the device is painless to use

•Need for a blood glucose monitor that can transmit data onto a computer for monitoring

Contextual segmentation

Traditional segmentation:

Product Focus on

Place Focus on

Price Focus on

Promotion Focus on

Marketing Mix

Solution, perception

Access

Value

Education, communication

Before• Customer

is deciding what to do

During• Customer

is doing it

After• Customer

is keeping it going

Before consumption:•Taking a lot of medicines together•Feeling unhappy•Complaints disruption in social life•Loosing trust to the former doctor•Decides to go to a new physician.

After consumption: Happiness with the treatment•Regains the trust to doctor•Product becomes valuable •Improvement in social life again

During consumption: •New physician explains to the patient that all symptoms may stop with a single product and there will be no need to use unnecessary drugs with an additional diet program•Patient starts using the drug.

Customer JourneyExample: IBS Patient

Contextual segmentation

Geographic

• Population• Location

Demographic

• Age• Gender• Income• Education• Occupation

Personal context

• Personality• Values &

lifestyle • Attitudes• Interests• Lifestyles• Preferences• Behavioral

propensities• Social

connections

Relationship context

• Customer lifecycle

• Product in use

• Purchase history

• Benefits sought

• Brand royalty

• Usage rates

Contextual segmentation

Customer profile data Real time behavioral data+

It is really possible to make customers feel themselves valuable and their needs are satisfied.

Main Target:

People differentiate individually !

We can differentiate our product by retrieving it from current generic perception via creating perception methods compatible with individual differences in a developing world.

Here’s what customers told us matters the most when choosing where to spend their money on healthcare.

What affects consumer’s buying decisions?

89%

74%

29%

17% 12% 8%Insurance coverage

Physician recommendations

Additional online medication information

Patient testimonials

Mobile application

Healthcare and lifestyle

coaching

Source: pwc Health Research Institute November 2013

Source: pwc Health Research Institute November 2013

Patients become partners in care and treatment when information is provided

Want an equal say in care decisions with their care provider

Why do customers buy pregnancy test kit?

If someone is pregnant or not by using a simple pregnancy test kit. She may buy that kit, apply it and easily see whether she is pregnant or not with a positive or negative test result derived from Is that so?Why do customers buy pregnancy test kit?“Test kits used in a medical center or used because it is medically prescribed” “Test kits used at home, directly bought without a physician approval orrecommendation”.Ones who expect positive result in pregnancy tests and ones who do not (negative results)

Why do customers buy pregnancy test kit?

“Fearfulls”“Hopefuls”

While examining country dynamics of an emerging markets

The potential of a group targeted by the product should carefully be examined

And, general incidence and prevalence of the disease Hospitalization rates for current prevalence Treatment protocols in each hospitalization may give us real

numeric potential that we will target.

While examining country dynamics of an emerging markets

Every direction we chooseMust bringCommercial return !

Therefore, the initial potential we acquired and our position in that may affect the decision we will make about the path we will follow.

Every step we take

In this context, it is important to consider the following in emerging markets,

Country dynamics, Reachable potential Challenges we will face in order to reach that potential Resources needed to reach to that target point Determination of our consumer oriented needs Following with strategies and tactics compatible with those

needs Required organization and cooperation structure while

following those needs.

It is, of course, required to take country dynamics into account.

What really matters is the consumer and consumer satisfaction which means showing your value to your consumer.

It requires the unity of the benefits of our product and/or service and the values we present.

“Marketing is not the art of finding ways to dispose of what you make, it is the art of creating genuine customer value.”

Philip Kotler

Thank you!