Monetizing Digital Opportunities in Medium-Sized Specialty Pharma

Presented at ePharma West September 23, 2014Brian JohnsonPrincipal, Two Hearts Group Former Chief Digital Officer, Galderma

The Great Digital Experiment of 2014

Why Did We Need a Chief Digital Officer?

Digital was already important Brands doing digital Commercial operations doing digital IT doing digital Sales doing digital

But, who owns it?

A Different ProfileUnderstood the business and the specialty deeply

Able to identify economic opportunities

Work well in space Launches New Markets Relationships across the organization

Plays well with others – but gets things done

Four Action Steps

Go Broad Build a Team

Get Focused Execute and Deliver

Go BroadStakeholder

President & CEO Medical

Sr. Director, Commercial Operations

Regulatory

Digital Marketing Project Manager

Global Digital

Digital Marketing Product Manager

Global Self-Medication Business Leader

IT Project Manager Legal

Acne Sales Management Finance

Acne Marketing Field Sales

Rosacea Sales Management IT Leadership

Rosacea Marketing Team Market Research

Self-Medication Marketing Team

Amazon Team

An Organizing Principle

Build a TeamCollaborative

Smart

Project Management Experience

Doer

Problem Solvers

Communication

Situational Leaders

Digital Savvy

Connections

Stays Current with Trends

Driven

Commercial Digital Group Mission

The Commercial Digital Group disrupts our business through technology and partners with the brands and other departments to drive more people to buy more of Galderma’s products.

We are not involved in all the day-to-day digital initiatives of the brands, but in broader initiatives.

We will evaluate our influence by meeting the POS and Rx goals for brands, challenging spending and creating efficiencies, and bringing forward new solutions to business problems and opportunities.

Engage with the Business

Key Franchise

SalesEHR/ERx/Rebates

Key Franchise/

Social Media Policy

Developing Franchise/ Customer

Service Sol’n

Key Franchise/

Mobile Optimization

E-Commerce National Account Manager

Get Focused

A Decision-Making Principle

Get FocusedChosen 3 projects to increase revenue in line with leadership alignment plan Bring e-commerce to Cetaphil.com Partner with Amazon to improve our

presence at largest on-line retailer Expand digital communication to non-

called on healthcare providers across brands and business units

Execute and Deliver

E-Commerce StrategyObjective

Accelerate the growth of Cetaphil by increasing access to products and improving on-line information through e-commerce channels

Opportunities Not every Cetaphil product is available at every

outlet. We are currently directing people to other retailers.

Most customers use a regimen, but not a Cetaphil regimen.

Retail shopper behaviour is changing rapidly. While online sales directly account for 6% of revenue, 80% of commerce is affected by on-line information.

Mobile usage expanding rapidly. Consumer looking to engage when they want,

where they want, how they want. Amazon growing rapidly and there are even

more opportunities Other direct-to-consumer self-medication brands

are expected.

Devote resources, including new E-NAM, to account and establish responsibilities between trade, brand, and digital

Establish A+ content on product pages Initiate marketing trial with Amazon Media Group Optimize product offerings for customer and model

with eye towards profitability

Strategic Imperatives

1. E-commerce enable Cetaphil.com

2. Improve sales performance at Amazon

3. Prioritize other e-commerce sites and improve presence and results

Use off-the-shelf solutions to rapidly get into market Build flexibility into system to support upcoming

products Build logical destination for brand DTC activities Leverage customer base to improve trial, loyalty, and

regimen expansion

Standardize product presence across all channels Identify strategic accounts to increase distribution Increase sales

E-Commerce Schematic

Customer information other than credit card info is transmitted to

Galderma.

Product inventory shipped for storage

to vendor

Credit card information securely transmitted to

vendors for authorization and processing

E-mail campaigns, product updates, special offers,

coupons, etc, loaded from Galderma to site directly

Capacity, LLC selected as fulfillment

partner

Inventory information

transferred to Galderma as

scheduled

After clearing, funds are deposited in happy Galderma

account

Order picked, packed and shipped to

happy consumer

Improve Sales at AmazonGoal Increase from $3.9MM sales to $11MM

sales in 2014

Three key tactics National Account Manager to focus on

Amazon and other e-retail accounts hired

Clean up our house

Leverage Amazon platform

A Plan to Find the Holy Grail

HEALTHCARE PROVIDERS

POTENTIAL

Cost-Effective Approach to Non-Called On

HCPs are like every other consumer. They want to communicate at THEIR convenience. WHEN they want WHERE they want HOW they want About WHAT they want

This problem screams for heavy digital tactics

If You Just Build It, They Won’t Come

Solution has to be a combination of push and pull tactics Specialty agnostic Field Reps with concentrated

volume territories Field Reps with higher customer

numbers Non-personal outreach Call center for customers’

convenience

The Big FinishDigital is so broad, it deserves to have dedicated resources who understand the challenges of the business

Done poorly, digital has an infinite appetite for resources

Done well, digital cost-effectively drives efficiency, synergy, and new opportunities

Questions or Comments?

Brian JohnsonPhone: 817-755-0869

E-Mail: brian@twoheartsgroup.comTwitter: @brianmjohnson4

Linkedin.com/in/brianmjohnson4