Presentation at Eyeforpharma’s Emerging Markets Commercial Excellence,Berlin,November,2011 on Key Stakeholder Management-Indian Pharma

1. Multiple stakeholder engagement
- Encounters of a different kind
Emerging Markets Commercial Excellence 2011,Berlin
Satya MAHESH, India

2. Disclaimer
The views expressed in this message are made in an individual
capacity and do not necessarily reflect those of Sanofi(the
“company”) or any of its affiliates. Neither the company nor
any of its affiliates assumes any responsibility or liability of
any use which may be made of any views expressed here in.

3. Measure of economic activity...

4. If that was not enough, more proof…
Awareness
35 … 50… 70… Billion $ by 2020
Usage
Use of fruits in daily life by Pharma execs
(Apples and Blackberries!!)
Incremental
Number of visitors from Global HQ

5. Next 40 Minutes…
India : First things first
The Demigods : Doctors
Key accounts...true potential
Beyond traditional territories
Supply chain snapshot

6. Vast : Country
Diverse : Demographics
Varied : Requirements
Challenging : Market
Life Lifestyle
IIM Prof. Subhash Mehta in his book "Indian Consumer"

7. Contradictions galore!
9th Rank GDP(nominal) 124th Rank PPP*.Pc.GDP
4.5% of Global Billionaires 400 Mio earn < $1 day
11% of Global Gold One thirds World’s poor
High Quality medicines Low cost medicines
Pharma :3rd by Volume 14th by Value
*Purchasing Power Parity

8. ~1,210,000,000 plus population of India across 28 states
~6,88,000 qualified doctors ~ 90% are GPs in India
~5,50,000 pharmacy retail stores across
~1,00,000 pharma field force
~90,000 formulations
~65,000 distributors
~60,000 Rx-brands
~23,000 Orgs.
~78% OPE*
~ € 9.5 Billion
Pharma Market
*OPE: Out of Pocket Expenses

10. Indian Patent Act Generic Storm MNC to Indian
Bottom of the Pyramid Volumes over Values Indian to MNC

11. Government policies…
Process Patent (1972) to Product Patent: 2005
FDI 100% in Pharma Sector to continue
National list of Essential Medicines(348), 2011
National pharmaceuticals pricing policy, 2011
Code of Marketing Practice for Indian Pharma,2011
No DTC in India : Family planning , health awareness

12. The playing field
Metro 30% of
Population
Class I 60 % of Pharma
Tier II & 70% of
Rural Population
40 % of Pharma

13. Strategic imperatives….
MNC Indian
Value Volume
Class Mass
Global Local
Urban Rural

14. The Classic divide
MNC Indian
Customers ~ Specialty Oriented ~ CP, GP, Specialty
Game Concept selling Brand Selling
Value Volume and Value
Brands Mostly Research Branded Generics
Molecules in focused Brands across major
Therapy Areas Therapy areas
Portfolio Small Extended Portfolio
Price and High and Low Low and High
Margins
Policies Global or Glocal Made In India

15. The Demigods
Vaidyo ( Doctor ) Narayano Hari* ( The God )
Brahmanical Restraint: Knowledge above money
Offer Value – else it’s a sales call
WIIFM?
*WIIFM - What Is In It For Me?
* In the right context and quote it means “ The God is the only Doctor”. However ,this is colloquial

16. Rx ethos are influenced by
Specialty : Competition intensity
Place of Practice
Patient profiles
Academic institutions and KOLs

17. What worked…
Specialist
Win the hearts, right and the left brain
Consultant
Right, left Brain and “the leg work”
Generalist
“Legwork” and then the Brain

18. What may work..
SFE
Traditional representation still works !
Training
Frequency is understood as importance
yet, face the question “What’s new?”
Marketing
Patients first .. you are still not a partner

19. Insights on the Indian version of Key Account Management:
Discover the real potential in hospital and institutional business

20. Key accounts dynamics
Partnership
Quasi Govt.
Corporate
Quantum
Price Government Per
Private Account
Profit
Illustrative

21. India KAM Version 1.0
Define KAs
Match opportunity with capability
Local
It’s right price and big Margins
Partner
Co-Creation of value

22. Corporate Hospitals
World class facilities : Class n mass dilemma
Package deals for patient : Cut corners
Pharmacy is a profit center
Corporates are going rural

23. ~70% of India
40% of Pharma
Lives here !

24. Drivers of growth
Rapid urbanization : awareness
Rise in disposable incomes
Government sops
Increased accessibility

25. Key stakeholder’s influence
Urban
Rural
Urban
Rural
Urban
Rural
* Graphs are notional

26. 40% Pharma has 4 key challenges!
Knowledge gap Affordable
Educate Go Local
Doctor Drugs
Patient
Disease Diagnostics
Awareness Partner
Prevalence Availability

27. Profitable reach through partnerships
Shared FTEs: Reach to Doctors
Shared CMEs , Digital media
Distribution : Rural penetration
Local sourcing, pricing, discounting

28. Yet, face the perpetual question…
Is the brand
Available ?
Will the Doctor
Prescribe?

29. Metro and Tier I Tier I and II Tier II to Rural
Hospital
Distribution is as busy and confusing as this slide
C&F Agent
Yet, ~ 50% of people can not access(not affordability)
Stockiest
Wholesaler

30. Supply chain
Costs around 4-6% of Total sales Vs. 2% in US and EU
Respecting norms & relationship with associations
Build network over a period of time : Cipla ,Mankind
Ideal admixture of Brands, Generics and OTC
Innovations required to maintain cold chain

31. !ndia

32. Individual and Image credits
 My Wife, Syamala and
 My collegues M/S Amlesh Ranjan , Venkatesan Subramanian
 Slide 2 : Earth at Night by NASA : Page Last Updated: April 2, 2009,Page Editor: Jim
Wilson,NASA Official: Brian Dunbar
 Slide 4: Mc Kinsey ,PWC Reports
 Slide 8 : Time Cover Photo by Arthur Hochstein. Woman by hill street studios-getty images
blend collection
 Slide 10 : Cover images from Alvyn Toffler’s books Published by Random House
 Slide 12 : Photo on Top: USA today Article : Indian doctor Praveen Chandra checks on
American patient Greg Goodell after his successful heart operation at New Delhi hospital.
Photo on right :The Hindu Article Photo: Singam Venkataramana
 Slide 17: Image: photostock / FreeDigitalPhotos.net
 Slide 24 : Publisher: Pearson Prentice Hall
 Icons : Iconarchive.com
 Slide 5,6,9,13,16,:25,28 : Unknown Photographers

33. ThanQ
ksatyamahesh@gmail.com
Mahesh.Satya@Sanofi.com
+91 9819 62 01 62

34. Emerging Markets commercial excellence Conference
Venue: Hotel Bristol Kempinski , Berlin

35. CDM Emerging Markets on Twitter
@CDMinEM New York, NY

36. Len Starnes
Digital healthcare consultant,
• @lenstarnesLen Starnes
• 'Encounters of a different kind' Mahesh Satya, Sanofi Aventis, talking about
pharma mkting challenges in India #emce2011
• 'Anything you say about india is true' Mahesh Satya #emce2011 #india
• 688,000 doctors in India, 90% GPs#emce2011 #india Retweeted by AnnBartlett
• Indian gov trying to align what is ethical with what is legal in
pharma#emce2011 #india Retweeted by DocGlobal
• 30% Indian pop live in cities but account for 60% of pharma
business #emce2011 #india
• In India there are ' Visa Gods' ...Mahesh Satya #emce2011 #India
• In india if pharma sales rep cannot offer knowledge to doc, he/she will ask: what's
in it for me #emce2011 #India
• Partnerships are key to success for MNC pharmas in India #emce2011 #India

37. End of Presentation