Indian Pharma Market - Challenges and The Path Ahead

MEDICINMANField Force excellence

TM

October 2013 | www.medicinman.net

Making sense IN ‘VUCA’ TimesA new, action-oriented “business novel” with a blow-by-blow account of how a forward-

looking pharma company can achieve operational excellence in Volatile, Uncertain,

Complex and Ambiguous (VUCA) times.

Shridhar Lolla is a practitioner of Business Model Innovation, Focused Execution and Operational Excellence. Shridhar holds a PhD in engineering from IIT Delhi, a Masters degree from IT-BHU and a Bachelors degree from MANIT, Bhopal. He has worked with MNC engineering and technology firms like ABB and Kirloskar Electric. Shridhar runs the online hub of Operational Excellence at www.time2change.co.in. Email: [email protected]

Editorial

Cometh the hour cometh the man.” This popular phrase was used by Cliff Gladwin, the England cricketer, during the first Test Match against South Africa at Durban in 1948.

England were 117 for 8 requiring 128 to win, when Gladwin walked out to bat. The last ball of the match hit Gladwin on the thigh and went for a leg-bye to win the match for England. In the September issue I wrote the editorial, VUCA – The New Normal. How will Pharma Industry in India Respond? Dr. Shridhar Lolla has come out with the book for the trouble stricken Indian pharmaceutical industry of which can be said – “cometh the VUCA cometh The Path.”

The Path by Shridhar Lolla is a splendid effort co-created along with Indian Pharma’s 118 top notch practitioners. There is no doubt that Indian Pharma is experiencing a prolonged season of VUCA – Volatile, Uncertain, Complex and Ambiguous times. Against this background comes an author with an army of experts who have put together an excellent book, “The Path – Leveraging Operations in a Complex and Chaotic World”.

MedicinMan is privileged to connect with Dr. Shridhar Lolla and his team of outstanding professionals who have painstakingly identified the challenges faced by Indian pharmaceutical industry and have created The Path for emerging out of VUCA times.

“The Path is set in a pharma company, shows the way to positively impact business results by improving management of complex and chaotic dynamics faced by manufacturing professionals day in and day out.

http://medicinman.net

Anup Soans | Editorial: Making Sense in ‘VUCA’ Times

Connect with Anup Soans on LinkedIn | Facebook | TwitterVisit anupsoans.com.

Meet the Editor

Anup Soans is an Author, Facilitator and the Editor of MedicinMan.

Write in to him:

While there are many books that address this issue in different ways, almost all are in the engineering segment. By choosing the pharma industry and addressing not only the complexities of operations, but also the issue of availability and pricing of drugs, Dr. Lolla and his team successfully integrates several view points to present a solution” says K. Srinivasamurthy in his introduction to The Path.

Dr. Shridhar Lolla is a management consultant, who focuses on operational excellence and the Theory of Constraints (TOC) and has been involved in one of the world’s biggest implementation of TOC.

It is unconventional to review a book through the editorial, but conventions have failed us and this book offers an excellent alternative for Jugaad obsessed pharmaceutical companies – both MNC and Indian to put their manufacturing operations in order.

And why should MedicinMan, which is dedicated to field force excellence, review a book like The Path? Because when the field force people hear about quality control lapses, it affects their confidence and morale adversely. This negative impact consciously and unconsciously affects their in-clinic interactions with doctors and thereby the sales of the pharma companies they represent.

Excellence in quality is the cornerstone of excellence in field force operations. When the field force knows that their company’s products are manufactured by USFDA approved facilities, it gives them the confidence to sell their products confidently. It makes them stay in their companies for longer periods of time, which is necessary to build the needed competencies to face the VUCA market environment day in and day out.

The Path is a must read not only for Indian Pharma leaders but also for professionals at all levels, who want to learn and implement robust systems that ensure world class quality standards. - MM

Purchase the paperback version of The Path by Shridhar Lolla from Amazon at this link: http://amzn.com/1482759144

The ebook version can be purchased at: https://www.smashwords.com/books/view/325264

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3 | MedicinMan October 2013

MedicinMan Volume 3 Issue 10 | October 2013

Editor and Publisher

Anup Soans

CEO

Chhaya Sankath

COO

Arvind Nair

Chief Mentor

K. Hariram

Advisory Board

Prof. Vivek Hattangadi; Jolly Mathews

Editorial Board

Salil Kallianpur; Dr. Shalini Ratan; Shashin Bodawala; Prabhakar Shetty; Vardarajan S; Dr. Mandar Kubal; Dr. Surinder Kumar

International Editorial Board

Hanno Wolfram; Renie McClay

Executive Editor

Joshua Soans

MedicinMan Academy:

Prof. Vivek Hattangadi, Dean, Professional Skills

Development

Letters to the Editor: [email protected]

1. The Price of Compromise...................................7

How Indian Pharma is Paying the Price for jugaad in Quality Control.

Dr. Ashutosh Mundkur

2. Social Intelligence............................................9

The new paradigm in people management.

Prof. Vivek Hattangadi

3. Real Value...........................................................11

5 ways in which pharma companies can create real value for their Doctors instead of mindlessly driving strategies that don’t work.

Dr. Aniruddha Malpani

4. DPCO 2013 and its likely impact on Indian Pharma...................................................................14

Companies that depend solely on CRM activities for revenue generation, will find it difficult to navigate in the new environment.

K. Hariram

5. A Winning Smile.................................................16

The social psychology of smiling and how to use it to your advantage

Rachana Narayan

6. RCPA Refresher..................................................18

How to leverage your relationship with the chemist to drive sales of your product.

Chirag Shah

7. Simple Steps to Professional Success.............21

A tried and tested template for everyday success on the field.

V. Srinivasan

CONTENTS (Click to navigate)


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å å å

FIELD FORCE EXCELLENCE

BRAND DRIFT

Excellence Awards

MEDICINMAN Pharma Sales & Marketing Conference 2014

7th - 8th February 2014Courtyard Marriott, Mumbai

FFE | BRAND DRIFT | AWARDS

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To Register, get in touch with us:

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FOR PHARMA DELEGATES

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Oustanding Pharma Education Institution (for D.Pharm, B.Pharm & M.Pharm)

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Oustanding Pharma Management Education Institution (PGDM & MBA)

Outstanding Medical Advisor

Outstanding Senior Sales Manager Outstanding SBU Head Outstanding Support Services

Professional

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Processing Fee: INR 1,000/- Processing Fee: INR 1,000/- Processing Fee: INR 5,000/- Processing Fee: INR 5,000/-

MedicinMan invites nominations in the following award categories:

All nominations must be sent in the following format:1. Brief description about the nominated candidate/service provider with photograph/website details.

2. Brief description about the nominated candidate/service provider’s achievements to be considered for the Award

3. All nominations must be certified by two senior managers HR/Sales/Marketing of General Manager and above. In case of Service Providers the Nomination must be attested by two General Manager

level executives of the company to which the service was provided.

4. Complete Contract details of Nominees as well as the nominating Managers with mobile, email, LinkedIn, Twitter and Facebook handles.

5. All Nominees and nominating Managers must connect with Anup Soans, Editor of MedicinMan on LinkedIn, Twitter and Facebook for verification.

6. All nominations must be from currently employed professionals working in companies with a turnover of Rs 50 crores and above with a minimum field force of 300 people.

7. Incomplete Nominations will be rejected.

8. The decision of the MedicinMan jury will be the final arbiter in short-listing and selecting candidates for the Awards.

All cheques/payments to be made in favor of “Knowledge Media Venturz” payable at Mumbai and sent along with nominations to: Anup SoansEditor - MedicinMan101 North Forte 22, North Road, Cooke TownSt. Thomas Town Post OfficeBangalore - 560084

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Pharma’s Biggest Players. At the One Conference that Matters. Showcase Your Products and Services, Network, Grab Your Share of the Mind.

1. The Thought Leader

Sponsorship Opportunities

2. The Market Heavyweight 3. The Nimble FighterThe Thought Leader is for those companies who have complete confidence to be the No.1 service provider to Pharma in their domain. This Exclusive package entitles you to the following business op-tions:

1) Co-Naming Rights: Presence in the Conference’s Official Title - “YOUR_NAME_HERE FFE 2013”.

2) Privilege to be on the CEO pan-el plus adress the audience for 20 minutes.

3) Twelve Full-page Advertise-ments/Advertorials/Articles in MedicinMan.

4) 10 Complimentary Pharma Del-egate Registrations Plus 5 Compli-mentary Delegate Registrations for Company Officials.

5) Prominent Display of Brand on all Conference Collaterals Before, During and After the Conference. (for specifics, please get in touch)

The Market Heavyweight is for those companies with a consis-tant track record, looking to grow their share of the market and mind. Business options:

1) Privilege to address the audi-ence for 15 minutes at a relevant session.

2) 5 Complimentary Pharma Dele-gate Registrations plus 3 Compli-mentary Delegate Registrations for Company Officials.

3) 6 Full-page Ads in MedicinMan.

4) Prominent Display of Brand on all Conference Collaterals Before, During and After the Conference. (for specifics, please get in touch).

This Lightweight option gives you access to the big players without hurting your wallet.

1) Privilege to address the audi-ence for 10 minutes at a relevant session.

2) 3 Complimentary Delegate Reg-istrations for Company Officials.

3) 2 Full-page Ads in MedicinMan.

4) Prominent Display of Brand on all Conference Collaterals Before, During and After the Conference. (for specifics, please get in touch).

All three packages can be customized to suit your communication needs. Contact us for details.

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Pharmaceutical and medical device companies in the US are no better when it comes to jugaad in introducing a new drug and the USFDA has faltered on many occasions. The USFDA’s bias against non-US companies cannot be ruled out either.

Having said this, I must admit that most of the Indian phar-maceutical and medical device companies try to hoodwink and work around the USFDA guidelines set by CDRH, CBER and others.

There is so much of noise and despair about the import embargo, 483s issued, negative publicity, loss of business and tarnishing of reputation. Root cause analysis will clearly show that Indian company’s Jugaad attitude is responsible for this. Senior management cannot pass the blame to the quality assurance, quality control or the regulatory affairs department. This may be the easiest way out but certainly not the right way.

The Problem: However strict the QA function may be, business compulsions make these companies bypass and fudge the guideline requirements. There are instances where managements insist on compromise and if someone is unwilling to do it there are always others ready to bend over and please the management. The rat race to be the first in the market, peer company pressure and investor ex-pectation are reasons which drive the senior management to compromise.

The Solution: Pro-activeness by QA and RA, patience by senior management, are prerequisites for a blemish free reputation and continued business in the US and Western markets.

We seem to believe a lot in retrospective validations, stability studies and managed clinical trials. This has led US

THE PRICE OF COMPROMISEHow Indian Pharma is Paying the Price for Jugaad* in Quality Control.

Dr. Ashutosh Mundkur

* Jugaad is a term widely used in India. Jugaad literally means an improvised arrangement or work-

around, which has to be used because of lack of resources. Jugaad is commonly used when describing

a workaround to get through commercial, logistical, or legal issues. – Wikipedia

Dr Ashutosh Mundkur is a Bangalore based Medical Devices specialist with

experience in Quality Management Systems, Manufacturing Operations,

Marketing and KAM.

E


“

”

Dr. Ashutosh Mundkur | The Price of Compromise

and Western customers to paint all Indian companies with the same brush. Indian companies despite their good local market and reputation are also considered manipulators.

Westerners consider Indian products much the same way in which many of us consider Chinese products - inconsistent in quality, non-compliance to agreed terms and conditions, delay in supplies and giving excuses that can easily be verified as untrue.

A leading Indian cardiac surgeon in Delhi who had expe-rience with substandard quality of Indian products stated - “as Indians we have lost our character”.

Honesty, simplicity, empathy, care, concern and compas-sion have become attributes of the past. Across society, irrespective of our social and economic status, we are in the race to outdo others for name, fame and money - as long as “I” win, “I” benefit, “I” succeed, I do not care for others.

This is not a good trend for India. It is high time that organi-zations and individuals carefully examine their intentions, actions and consequences. Large organizations should put their house in order and bring about paradigm shift in the thought process of all their employees. Once a critical mass is reached I am sure there will be a big change in the culture of Indian Pharma. We can think of calling ourselves a great country once again, the historical reason for India being the preferred trading destination of Western countries can be regained. We are indeed a great nation but somehow somewhere we seem to have lost our way.

Wake up Sid! -AM

The Problem: However strict

the QA function may be,

business compulsions make

companies bypass and fudge

quality requirements. There

are instances where manage-

ment insists on compromise

and if someone is unwilling to

do it there are always others

ready to bend over and please

management.

What do we really need to succeed today in our profession? We have a bumper crop of clueless corporate executives who have lost touch with

the very people whom they are supposed to lead. I would like to call it the ‘Marie Antoinette Management’! Marie Antoinette was the French queen who alienated herself from her subjects and this alienation from her people led her to the guillotine. A famous statement attributed to her, estab-lishes how totally she was cut off from her people: “If they (the peasants) don’t have bread, let them eat cake”. Marie Antoinette Management is when leaders stay aloof from reality and away from the people!

The new prerequisite for professional success through peo-ple management is ‘Social Intelligence’. Social Intelligence is a companion to Emotional Intelligence.

Why do some leaders get people to line up behind them with staunch loyalty whereas the others remain the butt of cruel kerb side jokes? The former have a high level of Social Intelligence and Emotional Intelligence.

Social intelligence can be as simple as a smile or remember-ing someone’s name. Some define social intelligence as a matter of demonstrating good people’s skills. Says Harrison Monarth1: “Social Intelligence is not an inward awareness, though it’s tough to master if you aren’t in touch with your inner landscape (Emotional Intelligence) to some extent. It is very much about how you are perceived by others. It is the understanding – and when you get it right, the mastery - of what elicits a response from other people in both relation-ships and casual encounters and even in an audience full of strangers”.1 Says Daniel Goleman: “Neuroscience has discov-ered that our brain’s very design makes it sociable, inexora-

E

Prof. Vivek Hattangadi is a Consultant in Pharma Brand Management and Sales Training at The Enablers. He is also visit-ing faculty at CIPM Calcutta (Vidyasagar

University) for their MBA course in Pharmaceutical Management.

[email protected]

SOCIAL INTELLIGENCE: THE NEW PARADIGM IN PEOPLE MANAGEMENT


E

Prof. Vivek Hattangadi


Prof. Vivek Hattangadi | Social Intelligence: The New Paradigm in People Management

bly drawn into an intimate brain-to-brain linkup whenever we engage with another person. That neural bridge lets us impact the brain—and so the body—of everyone we interact with, just as they do us”.2

Social intelligence involves much more than an infectious grin. It is the ability to understand what makes people respond.

What are some of the skills required to develop social intelligence?Professional Presence: It’s all about the subtle, unspoken details of how you present yourself, how you enter a room, the tone of your voice and the confidence in your persona. It’s as simple as sitting up straight at your desk, to how you command the sales meetings. Projecting and maintaining the profession-al image you want to present speaks volumes about your credi-bility. Your professional presence should not only communicate your self-confidence and self worth, it should show the level of respect you have for others.

Clarity: One needs to have competence in communicating clearly. You need to communicate your thoughts, your ideas, objectives, expectations, and other information with great clarity. You will need to tailor your message to the listener. Else, people may not follow you as a leader. The ultimate goal is to get your people to appreciate you and follow you. The clearer you are, the sooner it will happen.

Authenticity: It means uncovering your true self. You should not only sound genuine, but should be truly genuine. Phoni-ness, no matter how well conveyed, is easy to spot! People may think that you are wearing a mask; you are constantly playing a role to impress people. Authentic people earn trust and respect. People will always follow authentic leaders.

Awareness: It is the ability to read people, and the moment, and respond with behaviors that fit the situation.1 It is having knowledge and to take cognizance of circumstances and the state of affairs.

Empathy: It is identifying with and understanding another’s situation and feelings. You imaginatively enter into another person’s feelings. “When you communicate empathy, you are saying that we are on the same page, the same team and anything I ask you to do has taken your situation into consider-ation”.1

Behavior: It should reflect your leadership traits. Take own-ership for the work assigned to you. Take initiative and offer to take on more responsibility if you have the capability. Leaders are often self-motivated and make things happen.

To conclude, Social Intelligence is a set of skills that inspire oth-ers to be effective. “When we detect other people’s emotions through their actions, our mirror neurons reproduce these emotions leading to feeling of shared experience”.2

Every professional should work to continuously upgrade both Social Intelligence and Emotional Intelligence to achieve pro-fessional success - through sound people management. -VH

References1. Monarth, Harrison. (2010). Executive

Presence, McGraw Hill, New York.

2. Goleman, Daniel. (2006). Social In-telligence: The New Science of Human

Relations, Bantam Dell, New York

Social intelligence can

be as simple as a smile or

remembering someone’s

name. Some define social

intelligence as a matter

of demonstrating good

people’s skills. Says Har-

rison Monarth: “Social

Intelligence is not an in-

ward awareness, though

it’s tough to master if

you aren’t in touch with

your inner landscape

(Emotional Intelligence)

to some extent. It is very

much about how you are

perceived by others.

“

”

1. Practice Management. While most doctors enjoy taking care of patients, they are not very good businessmen, because they do not realize that running a clinic means that they need to think of themselves as being entrepreneurs. Many do a bad job, because they do not have the requisite skills. This is a relatively easy problem to fix - it’s a simple question of teaching doctors practice management strategies! Not only can Pharmaceutical industry conduct workshops, they can actually provide real-life and online training for the Doctor’s office staff - the receptionist, the secretaries, and their assistants, to help them become more productive and efficient. The good news is that a lot of these resources are easily available - it’s just a question of adapting them to the needs of Indian doctors. Since Medical Reps spend a lot of time in the doctor’s clinic, they also have an opportunity to learn a lot – both what to do, from the good doctors who run efficient clinics; and what not to do, from the bad ones who make their patients wait forever and ever. Doctors need Pharma companies to share what they learn from the good clinics with the other doctors, so they can improve their practice. Medical Reps can serve as the eyes and ears of doctors in the field, because of their real-life experience! If Pharma can help doctors to do a better job with taking care of their patients, they will respect Medical Reps and will be happy to partner with them.

Dr. Aniruddha Malpani


Dr. Aniruddha Malpani, MD is the Medical Director at Malpani Infertility Clinic in

Mumbai.

E

REALVALUE

5 ways in which pharma companies can create real value for their Doctors instead of mindlessly driving

strategies that don’t work.

Part - II

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2. Staying CurrentThe second pain point which doctors have is that it is difficult for them to remain up-to-date. Pharma industry can provide them with access to online resources from leading medical publishers, so that they have 24/7 access to medical textbooks and journal which they want. This is something which is likely to be heavily utilized, because doctors understand that they need to update their knowledgebase on a regular basis.

3. Continuous Medical Education (CME)The third pain point today is that doctors need to earn many hours of continuing medical education (or CME) in order to renew their certification and license to practice from their State Medical Council. The trouble is that the only way the Councils provide certification today is for attending medical conferences. Sadly, most conferences are not academically productive at all, because they flout the basic principles of adult pedagogy. Doc-tors don’t actually end up learning much, as a result of which most serious doctors are quite disillusioned with the confer-ence business, which they rightly treat as a circus! Even worse, conferences do not allow any way of documenting whether any learning has actually occurred or not. Pharma industry can pro-vide online CME for doctors, which would be recognized by the appropriate Medical Council. This is easy to do, since this model has been shown to work very well in the USA – the country which invented CME! Since the Doctor can do this CME online, he will not need to travel, and this would save him a lot of time, and be much more convenient. Doctors like learning - it’s just a question of designing engaging teaching materials for them. Even better, by ensuring that the doctor answers a quiz at the end of the CME, this would allow documentation that he has mastered the information which was presented. Since the CME is being provided through Pharma Company’s online portal, this will ensure that doctors will visit the website frequently – and Pharma can use this channel to communicate seamlessly with them.

4. Medical Record KeepingThe fourth pain point for doctors is medical record keeping. Most keep very poor records and they have a hard time finding the information they need about a particular patient. This means that even though they have enormous clinical experi-ence, it is very poorly documented, so that they are not able to systematically review or publish it in medical journals. This is such a waste! Information Technology has helped to revolu-tionize how medical records are stored and accessed today in the USA and Pharma can provide doctors with online electronic

Dr. Aniruddha Malpani, MD | Real Value

Sadly, most

conferences are

not academically

productive at all

because they flout

the basic principles

of adult pedagogy.

Doctors don’t

actually end up

learning much, as

a result of which

most serious

doctors are quite

disillusioned with

the conference

business, which

they rightly treat

as a circus!

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medical records (EMRs) through it’s company website. This will help them take better care of their patients, because they would be able to accurately document and access everything they need to know about their patients. It would also help doctors to keep their patients happy, through a patient portal, through which patients can access all their information online!

5. Financial ManagementThe fifth pain point for doctors is financial. Pharma industry can help them to improve their profitability, both by helping them to get more patients; and by providing them with tools to delight their patients. The best way to do this would be to provide doctors with their own personal branded websites, so they can establish an online clinic. Influential Indian patients are all online today and smart doctors understand that they need a digital presence as well. By giving them this, not only will Pharma be able to help them improve their patient flow, it would also allow them to keep their patients happy, by educat-ing them online with suitable educational materials about their illness. This would help patients to have more realistic expecta-tions of their medical treatment – and save the doctor a lot of time, as he would not have to explain the basics all over again.

ConclusionBy implementing these five measures, Pharma industry will be able to make doctor’s lives more meaningful and productive. As this is not Pharma’s core business, it can do this on a large scale by outsourcing it cost effectively. This is likely to enhance Phar-ma industry’s reputation and standing amongst doctors, which will improve sales and profitability of the company’s brands. This is a disruptive innovation, and pioneering companies are likely to reap a lot of benefits by being the first mover in this exciting space! -AM

Dr. Aniruddha Malpani, MD | Real Value

Pharma industry can help Doctors to improve their profitability, both by helping them to get more patients; and by providing them with tools to delight their patients.

The best way to do this would be to provide doctors with their own personal branded websites, so they can establish an online clinic.


K. HariramThe din is slowly dying down as the Indian Pharma industry has embraced the new DPCO 2013 that has been recently notified. No doubt, the new drug price control policy in the short term will negatively impact sales and margins of pharmaceutical firms in India.

IMS Health has estimated that the value erosion of the pharmaceutical market would be to the tune of Rs 1,600 crore (2.2 per cent of the current pharmaceutical market), post implementation for the year 2013-14.

With the notification of the order, the National Pharmaceutical Pricing Policy (NPPP) 2012 comes into effect and all drugs under NLEM(National list of essential medicines), which account for 60 per cent of total domestic pharma market amounting to nearly Rs 29,000 crore, would come under price control.

According to the approved policy, prices of medicines will now be capped by taking simple average of all brands which have more than one per cent market share instead of input costs.

This means there is a shift from cost-based pricing to market-based pricing. Majority view this shift in pricing methodology to have better transparency and be directionally more prudent to the pharmaceutical industry, on a longer term perspective.

What is market based pricing methodology?1. The ceiling price for each branded drug or a generic version will be determined by taking a simple average of all drugs with market share equal to or greater than 1%.

2. The policy will control prices of 348 drugs that are classified as ‘Essential’ and form part of the National List of Essential Medicines (NLEM).

3. The companies will be allowed to revise prices of these molecules once a year in line with the change in the Wholesale Price Index (WPI).

4. For all other drugs (i.e. not in NLEM), an annual price hike of 10% will be allowed.

5. To encourage investments in R&D, completely new innovations and even drugs developed through new processes or involving novel drug delivery mechanism will be exempt from price control for a period of five years.

Having issued the detailed guidelines, the Government has started notifying the ceiling prices, post which the policy comes into effect in the succeeding 45 days.

Companies had to resort to the job of adjusting their MRPs within this period and this has resulted in some inventory de-stocking/rationalization by the distribution channel.

Will this impact the earnings, volume/value and the impact on marketing and CRM activities?

Yes, the price rationalization will impact earnings in the near-term but unlikely to affect longer term growth prospects.

DPCO 2013 and its likely

impact on Indian Pharma

E

K. Hariram is the former MD (retd.) at Galderma India. He is Chief Mentor at

MedicinMan and a regular contributor.

[email protected]

The industry has been expecting this

to happen and hence in the budgeting of

FY 2013-14 there would have been

provisions to absorb the expected impact.

“

”

K. Hariram | DPCO and its likely impact on Indian Pharma


Many industry experts opine that market-based pricing mechanism would impact near term earnings of companies with relatively higher dependence on the Indian market.

With NLEM estimated to cover almost 20% of the Rs. 728 billion domestic formulation business, an expected price cut of 15-20% will erode the market by 3-4%.

Its impact on earnings will be higher as much of this will directly eat into the relatively higher margin India business, particularly the ones with higher dependence on Indian market, premium pricing approach and having higher share of acute therapy segment.

On the other hand, the impact of the new policy would not be substantial on companies that have sizeable share of earnings from regulated markets, especially U.S. generics.

The industry has been expecting this to happen and hence in the budgeting of FY 2013-14 there would have been provisions to absorb the expected impact. Also, this will propel companies to review their portfolios over the medium-to-longer term though in the near future or as short term rationalization measures there may be some revision on promotional/marketing budgets, consolidating field force, etc.

When it comes to CRM activities, since it is always a part of marketing budget, there would be a re-visit in terms of cost/benefit ratio. However, for those companies that depend on CRM activities as the sole revenue generator, it will be difficult to think of short term alternatives to protect margins.

As per the famous saying by Henry.J.Kaiser, “Problems are only opportunities in work clothes”. Hence the drug marketing teams need to shed their copy cat approach and complacency to re-look at their brand management strategies, revise their skills, adopt newer technologies such as digital marketing and work on DIFFERENTIATION at all levels.

The originators of molecules may still have some edge when it comes to robust scientific data which could be utilized for CMEs, in-clinic communication, etc. Probably, it is also a good time to look at building sales force as a big differentiator.

“Many a skillful pilots have earned their name by flying through storms and tempests”. - KH

For those companies that depend on CRM activities as the sole revenue generator,

it will be difficult to think of short

term alternatives to protect margins.

“

”

E


A WINNING SMILE!

Smile, and Sell More.

Rachana Narayan

Dale Carnegie rightly says, “For nobody needs a smile so much as those who have none left to give!”

This article is dedicated to the “smile”; so I request all you readers to have a smile (even if it is forced one) on your faces while reading this. I am tired of seeing Medical Reps with pain-stricken faces as if role plays are a punishment. I am sure; most Medical Reps will be doing nothing to increase the smile on their faces even during real calls to make them impactful. They may not be even aware that a smile can give them an advantage over hundreds of smile-less competitors.

Smile is infectious and before we realize, it gets transferred from the Medical Rep to the doctor. I am reminded of an incident at a prize distribution ceremony of Christ College Bangalore, my alma mater. The chief guest distributing the prize would automatically smile at the winners and refrain from doing so if the winner did not return the smile. Even in the context of sales, most doctors will automatically smile back when the Medical Rep has a vibrant smile. Smile sets the stage for a good conversation. There is always a bonus point for the smile. A smile is so important for me that I always make my trainees repeat the role play if they have no smile on their face. The exceptional content may become boring and monotonous without some play of smile on the face of the Medical Rep.

According to a study in International Journal of Service Industry Management, involving 220 participants, it was found that the smiling customer service executive produced a higher level of customer satisfaction than the customer service executive with neutral expression regardless of the gender of the customer service executive. The assertiveness in the personality becomes appealing with a smile on the face.

Rachana Narayan is a Trainer at A Menarini India Pvt. Ltd.

She has previously worked in Medico-Marketing Dept. at Torrent

“

”

Rachana Narayan | A Selling Smile


Yet another study published in the Journal of Psychological Science, involving 169 participants, proved that people who had a forced smiled after completing stress-inducing tasks showed a greater reduction in heart rate than people who had a neutral facial expression. Another study by Perreau-Linck et.al. reported that even self-induced changes in mood, increases serotonin (the happy neurotransmitter) secretion in the person.

Gone are the days when smile was considered feminine. Today an entire training module is introduced in the service sector teaching the benefits of smile in customer service and how to smile even speaking over the telephone. Remember, smile is not only seen, it’s impact can be felt over the telephone. So, make your smile sparkle. Your voice should have a tone of thrill when talking to people.

A million dollar question is how to smile, as it does not come naturally to many. I suggest, practice smiling in front of the mirror. As you try speaking with a smile on your face more often, it will get registered as a habit in your behaviour. Any behaviour for that matter can become an integral part of your personality if it is practiced continuously. A sincere smile reaches the eyes and yields great results.

A smile changes the attitude and makes the environment positive. A smile is comforting; it makes the person more appealing and approachable. It eases the tense situations and costs absolutely nothing.

So smile and sell more! -RN

Today an entire training

module is introduced

in the service sector

teaching the benefits

of smile in customer

service and how to smile

even speaking over the

telephone. Remember,

smile is not only seen, it’s

impact can be felt over

the telephone. So, make

your smile sparkle. Your

voice should have a tone

of thrill when talking to

people.

MISSING SOMETHING IMPORTANT?

You can access all past issues of MedicinMan at: http://medicinman.net/archives.

Be sure to SUBSCRIBE on our website (top-right corner: www.medicinman.net) to stay up-to-date with us.

19 | MedicinMan June 2013

RCPA REFRESHERThe distribution network of any pharma company starts from the stockist. Whenever a doctor prescribes a product to a patient, the patient buys the product from retail chemist, who in turn buys from the stockist. In pharma sales, your actual consumer is the patient and indirect consumer is the doctor. In this way pharma selling is different from other selling. Here retailer plays an important role by stocking products of various companies and has a significant role to influence on your sales. That’s why RCPA (Retail Chemist Prescription Audit) is an important tool that every Medical Rep should use.

What motivates the retail chemist to purchase our goods?1) High Turnover: The retailer stocks goods of thousands of different pharma companies. He is the one who invests his money for stock. If stocks move out regularly he would never feel the burden but if products are not sold for a long time and remains on the shelf, he feels the burden. Every Medical Rep has to ensure products of your company starts moving from his counter regularly. This will not only allow the retailer to order regularly and maintain inventory but also build confidence in you and your company.

2) Regular Visits: Medical Rep should regularly visit the chemist. The retailer is always expecting you to visit him and solve his problems like supply of order, expiry, breakage, etc. When your products are regularly prescribed by the doctors and you regularly visit the retailer, the retailer respects you for your systematic work.

3) Schemes: Retailer is a businessman who invests his money for profit. He is always interested in the profit margin he gets for selling your products. Medical Rep should regularly update him on the profit margin he gets. Most of the companies regularly introduce a free gift scheme on purchase of certain quantities of the product. Like 50 bottles or 150 strips on no return policy and he gets a utility item as a gift for that. The retailer

Chirag Shah

Chirag Shah is a B.Pharm and M.Sc in Pharmaceutical Science from Kingston

University (U.K.) He did his PGDBA in Marketing from Welingkar Institute of

management. He is a Product Executive in Dupen Labs. Mobile: 9664851023

E

Chirag Shah | RCPA Refresher

20 | MedicinMan June 2013

buys the additional stocks based relationship and the speed of movement of your product from the counter.

4) Company Reputation: Retailer always looks at the marketing policies of company and the credibility and regularity of the Medical Rep. Retailers have the tendency to ask for freebies, don’t promise the things which are not in your control. Don’t promise extra scheme, stick to company norms. This will increase your credibility and create confidence in you. This will motivate retailers to stock your products in adequate quantities.

How should you start doing RCPA?

The foremost objective is to know how much your product is moving in comparison to your competitors. The below format (see Fig. 1) can be used while doing RCPA. Find the best time to meet the retailer for doing RCPA based on his convenience.

RCPA Checklist:1. Find out the status of order booked last time.

2. Always check who are new prescribers of your products and who have stopped or changed to competitor’s brand. Also find out the impact of your last visit by asking improvement in prescriptions from regular prescriber.

3. Ask for stock position of your brand and competitor brand. Say he is keeping 20 units of your product and 100 units of competitor – it shows that your competitor products are moving at four times the speed of your product.

4. Find out details about campaigns by your competitors or any special offers.

5. Also find out the service the retailer is getting from stockist like quick dispatch, Credit note adjustment, etc. Get the detail of breakage, leakage or expiry of your products and take prompt action.

This information will help your company to build an effective counter strategy. -SP

Product Name of Dr Rx’ing

Units per Week

Competitor Brands

Name of Dr Rx’ing

Units per week

Remarks/Free schemes

Fig. 1: Sample RCPA

E


Success can be achieved by anyone who is willing to work sincerely. However, in pharmaceutical sales, though there are lacs of Medical Reps, many of them

have turned out to be ‘mediocre’ or ‘average’, and only few are highly successful. This article is to motivate such ‘ordi-nary’ Medical Reps that it is possible for them to become successful too.

Just make it a habit to execute the following simple steps everyday:

Make the Customer List exactly as per marketing strategy. If the customer list must contain 100 Gynaecologists, 50 Pae-diatricians, and 50 Orthopaedics, then it should be exactly like that. Because, this is the basis on which the business will be built.

Update Customer List regularly. Add Doctors who have the potential for products being promoted. Delete unproduc-tive calls.

Make sure you are aware of the exact potential of each customer through a well recorded RCPA for each of your product, and how much you expect from them for each of your product. This should get updated before every call.

Understand the products being promoted i.e. better Prod-uct Knowledge. This is not that difficult as many Medical Reps think.

Improve your communication in English language. If your communication skills are good, you can convince more customers.

Implement sales and marketing strategies as designed by the Product Team with sincerity.

Be prompt in sending reports promptly without reminders.

If you come across any innovative schemes, strategies from competitors, try to understand it and report it promptly.

Practice detailing before starting the work in the morning every day.

SIMPLE STEPS TO

SUCCESSPROFESSIONAL

V. Srinivasan

V. Srinivasan has written over 400 articles on Pharma Management.

Email: [email protected]

Mob: 9972390513

E

V. Srinivasan | Simple Steps to Professional Success


Be punctual.

Before starting the work for the day, look at the calls being planned for the day, what was the outcome of your last visit? Have these doctors started prescribing your products, if yes, how much have they prescribed, if not, why have they not prescribed, what could be the reasons? So you are mentally prepared to talk to them in a result oriented manner, which makes each call more productive and purposeful.

Think, behave and act as though you are owner of the business in the territory. This will shut all loop holes for excuses, and bring out the best in you every time.

The above steps when implemented and practiced with sincerity, will enable even ordinary Medical Reps to succeed, which will get you better acceptability and respect in your own family, in society and in your peer group.

Abdul Basit Khan

Ajay Kumar Dua

Amlesh Ranjan

Amrutha Bhavthankar

Andris A. Zoltners

Anthony Lobo

Aparna Sharma

Arvind Nair

Atish Mukherjee

B. Ramanathan

Chayya Sankath

Craig Dixon

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Rachana Narayan

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RM Saravanan

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Salil Kallianpur

Salil Kallianpur

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Shafaq Shaikh

Shalini Ratan

Sharad Virmani

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Spring Sudhakar

Subba Rao Chaganti

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Varadharajan K.

Vijaya Shetty

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Vishal Verma

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William Fernandez

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MEDICINMAN invites contributions from Pharma professionals on topics related to Field Force Excellence. See: www.medicinman.net/author-guidelines for more information.

Think, behave and act as though you are owner of the business in the territory. This will shut all loop holes for excuses, and bring out the best in you every time.

“

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Indian Pharma Market - Challenges and The Path Ahead

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