MacMedia - Tollgate 1

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Project Enterprise Assessment

Text of MacMedia - Tollgate 1

  • 1.IntroductionsAdvisory BoardDr. David Potter : Entrepreneurial Project AdvisorMs. Sharon Meeke : Business MentorDr. Kamran Sartipi : Technical MentorTarek Sadek: Enterprise DeveloperTeamLuis Quiroz: Project ManagerMohammed Amjad : Business Partner 1

2. Todays AgendaThe OpportunityThe MarketThe Customer / End UserThe CompetitionThe Technology Development2 3. MacMediaInnovative Media Channel for Pharma & Physician Tollgate One PresentationLuis F. Quiroz quirozlf@mcmaster.ca3 4. Defining the term detailingPromotion activity to explain to physicians features and benefits of products.Carried out by sales representative who use face-to-face interactioneDetailingUse of any digital technology in the detailing process. Example, Internet orVideo Conferencing4 5. BackgroundThe Selling Model of the Pharmaceutical Sector "Right now, the selling model for pharmaceuticals is reach and frequency. Reach as many customers as you can as often as you can, "Thats why we have these armies of salespeople out there. John Constantine, director of global learning support at GlaxoSmithKlineAccording to the statistics Annual Total Spending in ProfessionalAdvertisingEstimate Number of Sales In the U.S. (Millions USD)Representatives in the U.S 19952000200519962007$4,318$5,996$7,20635,000 100,000 The New England Journal of Medicine, August 16, 2007 Prescription For Success in Sales. Feb 19, 2007. Chemical &Engineering News 5 6. However; reality is.35% of physicians are not seeing reps at allOnly 8% of the visits last for more than 2 minutes**Average sales rep field visit is USD 200*Physicians are doing their own search for product information and unbiasedsourcesE-detailing has not taken off as a real alternative due to lack of initiativesLower Promotion High PromotionEfficiencyCostsThe Conclusion The pharmaceutical industry needs innovative technologies to reach healthcare professionals in a broad scale with high frequency by using more efficient, more cost-effective means and more unbiased sources to meet doctors information needs*Effective e-detailing. IBM Institute. 2006**Elling ME, Gogle HJ, MackhAnn CS et al6 7. The Solution A New Concept in E-detailingA channel for pharmaceutical products tailored to each physicians needs by usingMultimedia Files delivered by a Push method over for standalone computers,laptops and notebooks.The product provides unbiased reference sources bundled with samples deliveryorders and sales reps appointment requests. A multimedia fileThe file is pushed overwith unbiasedthe internet sources developed by MacMediaReferencesThe file reaches thephysicians PCAlso Samples delivery andlaptop or notebookSales rep visit can be requestedas an updatePharmaceutical SamplesSales RepresentativeAppointment Requests A Message Center icon indicates that a presentation is ready to be executed and displayed A detailing session supported by unbiased sources is delivered over PCs, laptops or notebooks 7 8. The Value PropositionThe pharmaceutical sector could cut costs in promotion per detailing visit between15% and 50% and raise its ROI up to 2.48*.The pharmaceutical sector will increase its business and reduce its excessivenumber of sales representatives.Advantages for Pharmaceutical CompaniesBetter reach in less timeMore cost-effectiveBetter relevance (ways to discover and retain records of doctors needs, preferences and aptitudes toward products)New tool to bring pharmaceutical detailing to doctors in remote placesAdvantages for PhysiciansConvenience- Detailing multimedia presentation comes along with unbiased sourcesRequest for pharmaceutical samples and sales reps visits at a click of a buttonSignificant time savingIncreased productivity *Lathian Seminar, June 20058 9. Business Model = KEY TECHNOLOGY PROVIDER Provide SummarizerPay a license technologyfee tools Convert marketing info into Multimedia Add unbiased sources using Xerox Summarizer technology Pharmaceutical marketing literature is handed out Assemble package with services The package is pushed overMacMedia the network toPharmaceutical= SERVICE PROVIDER reach PCs, laptopsCompany = CUSTOMER or notebooks Detailing service is Physicians Charge ($) based on the numberdelivered = END USERS of packages received by each physician9 10. Service ComponentsDelivery / Execution Component Conversion Distribution componentcomponentCollection ofMarketing literature/ Internetcatalogues Physicians Information is converted into Multimedia File is pushedInteraction / Request componentSummarizedunbiasedresourcesare appended Requests from users : Samples Appointments withThe package is MacMedia Contentsales representativesassembled with servicesServer 10 11. The Subscription Model One Alternative PhysiciansPharmaceutical Link to informationCompanysMacMediasis recorded intowebsitewebsite McMedias databaseMessage Center Software download User will fill out a subscription according to his topics of interest. The subscription is submittedReferencesMessage Center Softwareis downloaded and ready Pharmaceutical Samplesto alert the user on:Physician willSales RepresentativeVisit Bookingsnew drug releasesaccess to a pharmaceuticalnew drug versionscompanys website drug recallsother topics or productsrelated to their specialties 11 12. Medium Higher Performance Performance Unbiasedsources of informationKey ServiceRich in value (key information)Features Available (24/7) Easy to use Contentflexible to update and customizable for other applications Push Delivery (alerts or message centers) Entertaining (Appealing to the eyes)Multimedia e-detailing for Multimediabased includingPCs offered by MacMediainteractivity Compatible with internet browsing Combined with drug sampleCurrent Multimedia orderse-detailingCombinedwith sales repofferings for PCsappointment requests Tailored to each physicians needs Ongoing creation of an intelligence system that feeds on doctors current needs, preferences and behaviors toward products 12 13. Drivers for e-detailingThree major trendsThe existence of similar products in the pharmaceutical industry makesmarketing the only tool to create a difference among themProduct changes due to modifications in formularies or switches fromprescription drugs to OTC versions requires a high speed channel fordisseminationCurrent needs of cost cutting13 14. Projection of E-detailing Market Size North Americae-detailing Estimate for standalone computers 2008 - 2011(Based on 1% of Total Promotion Costs) $700$589 $600$536 $485 $500 $440 Millions USD $400 $300 $200 $100$02008 2009 20102011U.S.$404 $447 $495$545Canada $36$38 $41 $44Total N.A.$440 $485 $536$589Secondary research indicates that pharmaceutical companies spend,on average, 1% of their total promotion cost on e-detailing for standalonecomputersThe New England Journal of Medicine, August 16, 2007 14 15. Projection of End-users in North America Projected Number of Physicians in North America1,200,000974,727984,291993,9521,003,7111,000,000 800,000 600,000 400,000 200,000020082009 20102011U.S. 901,937 910,357918,855927,432Canada 72,78973,935 75,09876,279Total N.A. 974,727 984,291993,9521,003,711 Physicians rate growth in the U.S. is on average 0.93% a year whereasin Canada the rate is about 1.57% a year.Euromonitor Report 2007 15 16. The CustomersMajor Pharmaceutical Companies in North AmericaAdvertising Multimedia Expenditure in Advertising CompanyUSD included inSales of major companies(2007)*Expenditure * Accounted for 45% or aboutLilly (Eli) & Co. $4,497,000,000Y USD 290.1 billion of worldwidePfizer Inc$2,152,500,000Y sales in 2006**Johnson & Johnson $1,900,000,000YGenentech, Inc. $439,000,000YAbbott Laboratories $227,882,000YWyeth $130,000,000YCustomer groupingAllergan, Inc $118,000,000Nbased on priority to targetNBTY Inc. $104,000,000NType of customer PriorityKing Pharmaceuticals, Inc. $85,044,000NPharmaceutical 1stMerck & Co., Inc $27,000,000Ywithout CRMWatson Pharmaceuticals, Inc.$9,400,000N servicesSchering-Plough Corp.N/AN Pharmaceutical with2ndCRM servicesHospira IncN/ANForest Laboratories, Inc N/AN CRM: Customer Relationship ServicesBristol-Myers Squibb Co. N/ANBarr Pharmaceuticals Inc N/AN Source : Lexis-Nexis ADVERTISERS 2008 * Mergent Online. November 2007** 16 17. The Competition in North America Major PCRM Companiesin North AmericaAllscriptsAptilonWebMD Health CorpinVentiv Health IncDendriteLathian SystemsQuintiles Trans-nationalCompanies that offer Customer Relationship Management Services (PCRMs)PCRM may cover a full range of solutions such as Customer-facing Operations,Internal Functional Operations, Performance Marketing Analysis, Customer SurveyAnalysis and others.MacMedia plans to target at the Customer-facing Operations service interfacingbetween pharmas and doctors to promote products17 18. Classification of CompetitionProducts Currently Available in the market to Macro Level grouping of Competitors fromoffer detailing the Competitive Strategy Perspective ElectronicSalesType of Strategy Company detailing representativesLow CostContract Sales Allscripts inVentivOrganizations AptilonQuintiles(CSO) WebMDHighly fragmented Dendrite Contract Sales Allscripts LathianOrganizations (CSO)Differentiation Aptilon inVentivinVentivWebMD Video Phone conferencingHighly fragmented Focus Lathian AptilonContract Sales (Combination of costDendrite LathianOrganizations (CSO)and differentiation)QuintilesCSOs are outsourcing companies in the low-end market . CSOs provide basicservices such as call-centers and hiring of sales representatives. NumerousDifferentiators offer comprehensive solutions such as Customer-facingOperations, Internal Functional Operations and others.Differentiators provide best services, create high value; and therefore, controlpricesFocus companies center in a few services. These companies take advantageof the expertise in their specialties18 19. Skills Exhibited by PCRMs Skills in the PCRM SectorPharmaceutical Market knowledge Marketingand Sales knowledgeIT and prog