INTRODUCTION

Mankind

BackgroundBefore 2005, the Indian government recognized only process – not product - patents on drugs. While this approach encouraged competition and kept drug costs low, it also fostered the creation of 20,000 pharmaceutical companies and hundreds of brand names for each formulation1. Mankind Pharma was one of many companies that entered the Indian pharmaceutical sector during the 1990s; that Mankind was able to become the fifth largest pharmaceutical company in India – and the #1 based on physician recommendations – is testament to the innovative strategy and business acumen of the founders. A brief company history, focused on highlights that are most relevant to our case study, is summarized below:

1995-2000: Siblings Ramesh Juneja, Rajeev Juneja, and Prabha Arora launched Mankind Pharma in 1995 to address India’s pharmaceutical needs in underserved Tier II and III cities and rural India. Two of the founders had previously worked in the pharmaceutical sector, where they saw an opportunity to serve doctors in small towns and rural villages who had been ignored by the pharmaceutical industry. In the early years, Mankind bought generic drugs from contract manufacturers and sold them under the Mankind brand at a significant discount relative to competitive pharmaceuticals. The founders focused on hiring, training, and incentivizing medical representatives to cover as many doctors and generate as many prescriptions as possible2.

2001-2005: Mankind began producing some of its own drugs during this time. The low cost earned Mankind a reputation among doctors as a company that provides low cost drugs to help poor patients3.

2006-2010: Mankind launched its OTC division, including Manforce (condoms) and Unwanted 72 (emergency contraceptives), with bold advertising campaigns that featured sports stars, celebrities, and sex appeal. Analysts believe the OTC campaigns created awareness not only for Manforce and other OTC products, but for Mankind as well. In the words of CEO Rajeev Juneja, “OTC gave us visibility… People used to suspect our quality because of the cheap tag. But after aggressively advertising our OTC brands, we have earned the goodwill and faith of consumers.4” Mankind entered the top 10 Indian pharmaceutical companies and became #1 based on prescriptions generated during this period.

2011-present: Mankind has set a goal of becoming the 3rd largest pharmaceutical company in India. Key strategies include growing the OTC business, launching chronic therapies, and expanding distribution outside of India, including the US. Today, Mankind sells over 1,000 products in 17 therapeutic areas; has distribution in 34 countries throughout Asia, Africa, Central Europe and the US; and earns annual sales of $1 billion5.

1) Dey, Priyanka Sharma Sushmi, Aravind, Indulekha, “The pill pushers,” Business Standard, Jan 20, 2013; 2) Dixit, Neeraj, Sharma, V.., “Mankind Pharma LTD.: Reinventing the Growth Strategies,” Case Centre, 2017; 3) Ibid, 4) Singh, Rajiv, “Mankind Pharma: Do products revolving around sex help the Rs 3000 cr company?”” The Economic Times, Mar 26, 2014; 5) Mankind.com

Why we chose Mankind• As a leading pharmaceutical company in India, Mankind broadens both the product and geographic scope of our case studies, enabling

us to study one company’s marketing approach in the highly regulated pharmaceutical industry, while also offering insight about marketing approaches in the fastest-growing and 10th largest advertising market1.

• We wanted to better understand Mankind’s marketing portfolio strategy: Mankind aggressively spends to support its OTC portfolio (OTC brands make up ~10% of revenue), with the intent that this marketing spend also support the overall parent brand, including pharmaceutical sales.

• Unlike many private sector FMCG brands, Mankind is focused on the “bottom of the pyramid,” enabling us to study a private sector approach to reaching the same populations served by our public sector case studies.

Findings• Mankind has mastered the marketing principle of distinctiveness. This is a two-prong approach. On one hand, Mankind seeks whitespace (e.g.,

Tier II and III cities), which makes it distinctive by default – there is no other competition. On the other hand, Mankind has a distinctive marketing approach. Product names are bold, straightforward, and “in your face” (e.g., Manforce, Unwanted 72), which make them easy to remember. The company also uses well-known celebrities to make their brands and products stand out. The product approach is similar. When Mankind launched Manforce condoms in 2007, it differentiated itself by launching a range of flavored condoms – the first brand to do so in India.

• Mankind is a good example of a strong parent brand – Mankind – and strong sub-brands (e.g., Manforce, Unwanted 72, etc.). The company always uses the Mankind brand with the sub-brand (e.g., the Mankind logo is on all products and advertising), which likely creates awareness for Mankind. In addition, Mankind recently began advertising the parent brand to consumers, using popular Indian film star Amitabh Bachchan as the brand’s ambassador. Some argue that this may pose a risk longer-term, as Mankind seeks to enter more competitive pharmaceutical markets where scientific credentials, not pop culture associations, are important brand attributes. However, it seems to have worked thus far.

• Mankind, and its leading OTC brands, are great examples of “authentic” marketing -- brands that stay true to their brand vision and expand beyond the original scope of the product. For example, recently Mankind (Manforce condoms) expanded the definition of “safe sex” – encouraging couples to practice “safe sex” by refraining from filming their intimate moments. Similarly, Prega News (an at home pregnancy test brand) took on the challenge of educating society about postpartum depression and ways to support new mothers in what may be a surprisingly difficult period of their lives.

1) BrandZ Top 75 Most Valuable Indian Brands 2019

INTRODUCTION

EXCELLENT MANKIND

1. IDENTIFY THE AUDIENCE AND BEHAVIOR CHANGE OBJECTIVE

Mankind has several target audience groups: primary care doctors in remote villages and Tier II and III cities; specialist physicians in Tier 1 cities and metros, and the consumers who purchase Mankind OTC and FMCG products. While we did not have specific information on Mankind’s OTC/FMCG target audience(s),we attempted to define the audience for Mankind’s sexual and reproductive health portfolio based on a review of the company’s marketing materials. We scored this best practice as “excellent” because Mankind has significant resources to reach each segment (e.g., a field staff of approximately 14,000 medical representatives – more than any other pharmaceutical company in India – is a primary “marketing” investment to reach physicians); there is also clarity on the behavior change objectives.

Audience Primary Care Doctors in rural areas and Tier II and Tier III cities

Specialty physicians in Tier 1 cities and metros

“Lifestyle progressives” Young adults who aspire to a modern lifestyle and seek control of their sexual and reproductive health

Product Portfolio

Acute Therapy drugs Chronic Therapy drugs Mankind’s flagship OTC products: Manforce condoms, Prega News, Unwanted 72

Behavior Change Objective

Prescribe Mankind pharmaceuticals Prescribe Mankind pharmaceuticals “If you don’t want babies, use Manforce Condoms. After unprotected sex, you can opt for Unwanted 72. And if you want to know whether your partner has conceived, Prega News is there.1”

Comments Mankind further segments physicians based on their prescribing practices (e.g., “very important physicians”). Behavior change objectives change somewhat based on the physician segment (e.g., increase prescriptions of drug A, etc.).

After the Company’s initial success reaching general practitioners in remote locations and Tier II and III cities, Mankind needed to establish itself in the competitive urban market.

This target audience was identified based on a review of Mankind’s marketing materials.

1Singh, Rajiv, “How Sunny Leone’s Manforce ad helped Mankind Pharma rake in 3000 crore” ETRetail.com, March 26, 2014

MANKIND INSUFFICIENT DATA

2. UNDERSTAND THE AUDIENCE

With more medical representatives than any other leading pharmaceutical company and a corporate reputation as a savvy marketing engine, we expect Mankind to have robust audience understanding of both doctors and consumers. However, we did not find any information about Mankind’s approach to audience research and therefore did not score this best practice. In the case of Mankind’s consumer brands, the literature suggests that it is Mankind’s agency, ADK Fortune, that brings forth the audience findings and implications for Mankind’s brands.

1) Dixit, Neeraj, Sharma, V., “Mankind Pharma LTD.: Reinventing the Growth Strategies,” Case Centre, 2017; 2) “The grave reason why Manforce Condoms wants you to #ShutThePhoneUp,” ET Brand Equity, Oct 26, 2017; 3) PregaNews advocates the comfort of moms to be with #YourSecondHome, Social Samosa, May 2, 2017.

AUDIENCE

RESEARCH FINDING

DOCTORS1

Doctors know about molecules, but they’re overwhelmed by the number of brands.

19% of Indian couples have filmed their intimate moments.

Today’s expectant mothers work right up until the very end of their pregnancy; it’s a time when long hours and marathon meetings can be especially challenging.

COUPLES2 EXPECTANT MOTHERS3

MANKIND

3. ARTICULATE AN INSIGHT

The overall company insight is based on the founders’ experiences working in the pharmaceutical industry, where they saw first-hand the disparity in pharmaceutical access. The tension is between illness, which doesn’t discriminate between rich and poor, and healthcare, which does. It is true; but it is not obvious. Or better said, it is so obvious -- it is something that people accept – that no one thinks about it until it is pointed out. It is emotional because healthcare saves lives. And finally, it can inspire the audience to think or feel differently; once this tension is pointed out, and there’s an alternative to address the tension, it becomes the obvious choice. Finally, by selling drugs at significantly lower prices than the competition and targeting doctors in rural communities, Mankind is uniquely suited to address this insight.

INSIGHT:

Illness doesn’t discriminate between rich and poor, or where you live, but healthcare does.

BAM360 team criteria for an audience insightIt has tension It is true but not

obvious It strikes an emotional

chord

It inspires the audience to think or feel differently

Yes Yes Yes Yes

SOURCE: https://www.mankindpharma.com/company/heritage

EXCELLENT

EXCELLENT MANKIND

4. DEFINE THE BRAND VISION – CLARITY & RESONANCE

“Serving Life through Affordability, Quality and Accessibility” is a simple, clear vision that makes sense for a pharmaceutical company. While Quality is a standard element for a pharma brand, Affordability and Access are differentiators for Mankind, making Mankind highly relevant to its primary target audience – doctors in rural villages and tier II and III cities.

https://www.mankindpharma.com/company/our-brand

MANKIND

5. DEVELOP THE BRAND IDENTITY

There are many elements of Mankind’s identity that are very strong. In particular, the Mankind name and simple, straightforward approach to visual elements bring the brand vision to life. On the other hand, there is tension between Mankind’s desired personality (dependability, trustworthy, quality) and the reality that Mankind has achieved brand awareness through its flashy, highly sexualized advertising for OTC products, particularly Manforce condoms.

Distinctive: Mankind’s brand elements are somewhat distinctive, but it is the brand’s efforts to target remote doctors, sell drugs at low cost, and drive brand awareness through OTC advertising that makes Mankind distinctive from its peers.

Has a Personality: Mankind’s desired personality is dependable, trustworthy, and high quality. This is conveyed through the use of Amitabh Bachchan as Mankind’s brand ambassador. Bachchan is recognized as one of the most influential actors in Indian cinema, having appeared in almost 200 films since the 1970s. However, this conflicts with the reality that Mankind is well-known for the flashy, highly sexualized advertising of Manforce condoms.

Reflects brand vision: Mankind brand identity is best in class in terms of reflecting the brand vision

The name Mankind suggests the Company’s intent to serve life through affordability, access, and efficacy. The overall look and feel of the brand is simple and straight-forward, reflecting the Company’s ethos and humble, everyday man approach of the founders.

Executed consistently: Consistent use of the Mankind name in all communications helped drive awareness of Mankind as much as the individual OTC products. However, it also risks creating confusion in terms of what the brand stands for. Is Mankind consistently about accessible, high quality healthcare for all? Is it about sex? Can it be both?

GOOD

Photo: https://www.cinestaan.com/articles/2016/jul/12/1335

MANKIND GOOD

6. COMMUNICATE A BENEFIT

Prega News Campaign – Your Second Home: Prega News has a well-established benefit – pregnancy confirmation within 5 minutes – that has been consistently communicated over the past 2 decades. While the benefit is clear, believable, and relevant, it is often articulated as “good news is 5 minutes away,” which seems out of touch. In 2017 Prega News launched a new campaign, “your second home,” which raises awareness for issues pregnant women face in the workplace. As Joy Chatterjee, AGM Product Management Team, Mankind, shared with Buzz in Content, “With more than 70% market share in the [home pregnancy test] category, we decided not to chase business growth but start a conversation for a larger social good.1” We applaud this approach. Mankind continues to communicate the “5 minutes” benefit in stores and on its website but has shifted “above the line” focus to messaging that is more engaging and more likely to resonate with the audience. Nonetheless, we scored this best practice as “good”; we see an opportunity for Prega News to increase resonance by rethinking its assumption that pregnancy confirmation is always “good news.”

1) “Prega News takes content route to reach smaller cities and rural, says Joy Chatterjee of Mankind Pharma,” BuzzinContent, March 13, 2018; images: PregaNews.com and PregaNews.com/YourSecondHome

Prega News continues to reinforce the benefit of pregnancy confirmation within 5 minutes. This benefit is believable, especially now that home pregnancy tests are well understood. However, we suggest that the benefit of “good news” in 5 minutes may not resonate.

In the third year of the campaign on behalf of pregnant women in the workplace, Prega News shifted the focus to household help, encouraging women (employers) to find ways to make things easier for pregnant workers. The benefit is clear (return the favour!), believable (it’s easy to do), and likely resonates, as it brings awareness to an issue that may otherwise be overlooked.

EXCELLENT MANKIND

7. TOUCH THE HEART, OPEN THE MIND

Prega News Campaigns – Your Second Home and Good News Is Gender Free: Over the past several years, Prega News has released a series of campaigns that touch the heart and open the mind, including: #YourSecondHome, which encourages viewers to think differently about pregnant women and new mothers returning to the workplace. In the third year of the campaign, Prega News shifted focus to update the definition of employer and a workplace, focusing on household help. Another examples is #GoodNewsIsGenderFree, launched in 2019, which challenges viewers to think of a healthy baby as good news vs. the traditional view that it is the birth of a boy that is good news.

#YourSecondHome launch – invites employers and co-workers to think differently about – and better support – expectant mothers

#YourSecondHome year 2 – shifts focus from the corporate workplace to the domestic workplace, inviting viewers to extend support for expectant mothers to domestic workers

#GoodNewsIsGenderFree – questions why society worries about a baby’s gender

PLAY PLAY PLAY

EXCELLENT MANKIND

8. SELECT THE RIGHT MARKETING VEHICLES AND ENSURE MESSAGE CONTINUITY

Prega News – Overall Brand: Over the years, Prega News – like Mankind’s other leading OTC brands – has had consistent messaging (“know in 5 minutes,” “Prega News is Good News”), using Indian film stars (Shilpa Shetty and Kareena Kapoor) in a variety of media channels (TV, in store, out of home, etc.). Most recently, Mankind has maintained its benefit-focused messaging while also launching its first digital campaign, using content instead of celebrities to break through. Mankind stands out for aggressively supporting its leading brands (industry analysis estimates that Mankind spends 10% of total revenue on marketing, almost 2x that of its competitors)1 and launching campaigns during culturally relevant moments, like Mother’s Day and Women’s Day.

Each campaign was launched on either Mother’s Day or Women’s Day, ideal moments to raise awareness about issues relevant for expectant and new mothers

Concurrent with its digital campaigns #YourSecondHome and “GoodNewsIsGenderFree, Mankind maintains support for Prega News with in-store and out of home awareness driving marketing vehicles

Bhalla, Mohit, Rajagopal, Divya, “The story of Juneja siblings, the biggest disruptors in Indian pharma space,” The Economic Times, April 10, 2018

PLAY

EXCELLENT MANKIND

9. DELIGHT THE AUDIENCE

Prega News Campaign – Your Second Home: The are a variety of ways in which Prega News delights the audience, including online contests, raising awareness about issues women face during or after pregnancy, and providing education and tips related to pregnancy. Shortly after the launch of the #YourSecondHome campaign in 2017, Prega News announced a partnership with local airline Spice Jet, which included special “comfort” features for pregnant travelers, a contest offering free travel for selected pregnant travelers, and awareness about ways to make travel easier during pregnancy.

MANKIND

10. INSPIRE AUDIENCE ENGAGEMENT

Prega News Campaign – Your Second Home: Prega News engages the audience through many of the same activities cited in the previous best practice, “delight the audience.” In addition to contests and social media posts that invite feedback from the audience, Prega News also engages the audience in discussions and polls aimed to raise awareness and make small changes in society. For example, as part of the original #YourSecondHome campaign, Prega News asks people to “pledge” to make life more comfortable for expecting mothers. The Prega News website currently hosts a pledge that asks household employers to pledge to make the workplace more comfortable for domestic help. We scored this best practice as “good.” As a brand that plays a short-lived, but important, role in women’s lives, Prega News has found ways to meaningfully expand its role, engaging the audience on a variety of topics relevant for expectant and new mothers. It is not, however, a major cultural force that inspires the audience to proactively engage with the brand.

GOOD

MANKIND

11. TEST MESSAGE EFFECTIVENESS

No available data. Best practice not evaluated.

MANKIND

12. EVALUATE PROGRAM RESULTS

No available data. Best practice not evaluated.

13. MEASURE BRAND PERFORMANCE

No available data. Best practice not evaluated.

MANKIND

MANKIND

14. EVALUATE MARKETING VEHICLE EFFECTIVENESS

No available data. Best practice not evaluated.

MANKIND

15. ORGANIZATIONAL STRUCTURE // 16. PROCESS & DECISION-MAKING // 17. PEOPLE & CAPACITY // 18. REWARDS & INCENTIVES

1) Hussain, Shabana, “Mankind Pharma: Formulating Strategy To Enter The Big League,” Forbes India, May 8, 2014; 2) Bhalla, Mohit, “The Story of the Juneja Siblings, the biggest disruptors in India’s pharma space,” The Economic Times of India, Apr 2018; 3) Mankind.com/company/management; 4) “Stories of Successful Entrepreneur” Indian Pharmaceutical Congress, Feb 11, 2019 5) Dixit, Neeraj, Sharma, V.., “Mankind Pharma LTD.: Reinventing the Growth Strategies,” Case Centre, 2017.

ELEMENT DESCRIPTION

Organizational Structure Mankind is a very flat organization. Most employees work in the field; there are very few managers or executives at headquarters. This helps to manage costs (as explained by Chairman Ramesh Juneja, “We keep our drug prices low because we don’t have highly-paid managers…1”) and ensures executives are involved in the details. Mankind continues to be family-run, led by brothers Ramesh C. Juneja (Chairman) and Rajeev Juneja (CEO), with family members in four out of six executive roles. In the words of an executive at a competitor company, “They tend to bring a lot of family into the business in operational roles. They are trying to acquire talent but need to professionalize and create more management bandwidth.2” Executives have all worked in field sales roles; they understand the day to day reality for the largest employee group.

Process & Decision-making Insufficient information

People & Capacity Mankind has marketing leadership focus on creating an engaged workforce at the executive level. Two out of the six Mankind executives are marketing experts. According to the executive profiles on Mankind.com, it is CEO Rajev Juneja’s “insight into every aspect of marketing” that “gives Mankind its competitive advantage.3” CEO Rajev Juneja described his three principles for success in a recent talk on entrepreneurship: (1) heart-work (this Is described as hard work that comes from the heart, “you cannot be successful if you are not excited about your work”); (2) cohesive management and transparency, (“you cannot be successful if transparency is not there”); (3) willingness to learn, (“today’s best will become tomorrow’s old, so you must be willing to learn4”). Attrition at the medical representative and managerial level is between 10-15%, compared with an average of 30-40%5.

Rewards & Incentives The incentive program – for staff, retailers, and physicians – is generous and is designed to drive sales and mitigate attrition among field staff. Field staff receive an incentive the first month of employment, regardless of whether they have achieved their sales criteria for that month. This is intended to motivate them to work hard to maintain the incentive beyond the first few months of employment. Mankind gives more margins to retailers and hospitals compared to the industry average – and they also provide bonus offers for achieving sales thresholds. Whereas many companies offer gifts to physicians, Mankind differentiates itself by asking doctors what gifts they would like. The company believes this helps doctors to better remember – and be more likely to prescribe – pharmaceuticals from Mankind.