The Rx Factor: Strategic Creativity in Pharmaceutical Marketing

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”Brilliant, bright, blasphemous ....Blows much of what we have held to be sacrosanct—USP, marketing warfare, positioning...

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The

Factor 

Strategic Creativity in Pharmaceutical Pharmaceut ical Marketing

PAVAN CHOUDARY

Wisdom Village ( Publication Division) W V P D

Knowledge is information. Wisdom is transformation.

A WVP WVPD D PRESE PR ESENT NTA ATIO TION N Books from Wisdom Village (Publications Division) envision to enhance and enrich their readers with life changing experiences from the business, mind, body and soul genres. They strive towards holistic development. Editorial & Production

Charushilla Narula

Copyrightt © Pavan Choudary, 2009 Copyrigh All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the  publisher..  publisher ISBN 978-81-906555-8-3 This 2nd Edition of The Factor is Published by: Wisdom Village (Publication Division)

W V P D

Knowledge is information. Wisdom is transformation.

WVPD is a part of Wisdom Village 164, Aravali Apartments, Apartments, Alaknanda, New Delhi – 11001 110019 9 To Book Boo k Your Your Orders Or ders::

Email: wisdomvillageindia@g [email protected], mail.com, [email protected] Or Call: +91 9811 98115 5 14287, 9810800469 First Published in 1997 by Response Books (A division of Sage Publications India Pvt Ltd)

M-32, Greater Kailash Market-1, New Delhi 110 048. Library of Congress Cataloging-in-Publication Data

Choudary, Pavan 1965The

factor: Strategic Creativity in Pharmaceutical Marketing/ Pavan Choudary Choudary..

Includes bibliographical references and index. 1. Pharmaceutical industry—India. 2. Drugs—India—marketing. 3. Pharmaceutical policy—India. I. Title. HD9672.I52C48 ISBN:

615.1' 068'8—DC21

1997

97-18645

0-8039-9378-1 (US-HB)

81-7036-626-7 (India-HB)

0-8039-9379-X (US-PB)

81-7036-627-5 (India-PB)

Pavan Choudary Brief Introduction Pavan Choudary is the author of path breaking books like Broom & Groom (coauthor Kiran Bedi), A Trilogy Tri logy of Wisdom , Machiavelli  , Machiavelli for Moral People and People and The Rx Factor. Pavan is also the Managing Director of Vygon, a leading French Multinational, hosts the TV program Hum Aise Kyun Hain on Doordarshan, and has written columns for The Times of India and Financial Chronicle. Today, Pavan is considered one of the most original Indian socio-political thinkers and management strategists. To know more visit www.pavanchoudary.in

You may reach the author at [email protected]

Other Books by Pavan Choudary

Other Books by Pavan Choudary

1. How a Good Person can Really Win 2. A Trilogy of Wisdom a. Chanakya’s Political Wisdom  b. Confucius’ Social Wisdom c. Kabir’s Spiritual Wisdom 3. When you are Sinking Become a Submarine 4. Machiavelli for Moral People 5. Broom & Groom (on Hygiene and Manners) co-authored with Kiran Bedi 6. Uprising 2011- Indians Against Corruption co-authored with Kiran Bedi

Comments on The

Factor

Comments on The

Factor

“I strongly recommend this book for all pharmacy students and marketing professionals …it gives a creative landscape for

Pharmaceutical marketing filled with innovative and practical marketing strategies…a useful tool for the sales force in the pharmaceutical industry.” industry.”

 Dr.. B. Suresh,  Dr Suresh, President,  President, Pharmacy Council of India “Written in a racy, 'un-put-downable' style (which one rarely comes across in a book emanating from India), one reaches the end only 'asking for more' and wishing that the author had included some more marketing examples and cases to reinforce many of his imaginative ideas. A book not to be missed.”

 Express  Expr ess Pharma Pulse (Indian Pulse (Indian Express Group) “Such examples abound and that is what makes the book refreshing and interesting.”

The Business Standard “He offers marketing wisdom distilled from studying communication strategies behind brand successes and flops. The case study format makes it lively.”

Advertising & Marketing (A & M) "Brilliant, bright, blasphemous ....Blows much of what we have held to be sacrosanct—USP, marketing warfare, positioning—to smithreens…The author has captured the essence of successful marketing in this readable text, focusing on the pharmaceutical industry.” industry.”

 Elsa Davies (Fellow Davies (Fellow,, Institute of Management, UK)

Praise for the Author and his Books The Rx Factor Kip Piper, Senior health Advisor to the White House Office, Off ice, USA, has included The Rx

Factor in his list of Top 10 books on Pharmaceutical Pharmaceutical Marketing. Marketing. To view the list you may visit amazon.com at http://www.amazon.com/Pharmaceutical-Marketing-BookshelfRecommended-Piper/lm/2RUHJCQM7ERX0

How a Good Person can Really Win

This book is for real people in the real world with insights, practical wisdom and a fresh  perspective for everyone…the everyone…the alternative alternative of  course,  course, is to read up hundreds of books over tens of years! - Carolyn Marcille (Barnes & Noble, NewYork, USA ) Pavan Choudary's passion for dwelling deep into i nto the questions one feels remain unanswered, has ensured him a place amongst the foremost thinkers of the world. - The Times of India  An invaluable, timeless timeless treasure. treasure. Pavan is a megamind megamind taking Indian thinking to to refreshing new heights in the global arena. His works should be made compulsory reading for leaders, teachers and parents. - Dr. Kiran Bedi A Trilogy of Wisdom (on Chanakya, Confucius and Kabir)

Each book in this collection c ollection of mini books has great depth…there is great insight on political sharpness, social gain and spiritual intelligence - to aid the ambitious soul. - Hindustan Times

This book has been able to capture the spirit of Confucianism. It is most appropriate appropriate that it dwells on the social aspect of Confucianism. It talks of Social Harmony, which is key to Confucius. - Mr. Xei Fei (Cultural Head, Chinese Embassy)

Broom & Groom co-author Kiran Bedi

Broom & Groom by proud Indians Kiran Bedi and Pavan Choudary is a collector’s item. A

Broom & Groom co-author Kiran Bedi

Broom & Groom by proud Indians Kiran Bedi and Pavan Choudary is a collector’s item. A must on every book shelf. - Deccan Chronicle Indians and civic sense don’t often go together. That may change if our worthy countrymen take broom & groom to heart. -The Telegraph

It addresses separate separate categories- students, students, government officials, officials, and so on and the illustrations help make it a useful handbook for people who badly need it. -The Times of India Machiavelli for Moral People

Want to read a politician like a book…read Machiavelli for Moral People. – The Tribune

PHARMACY COUNCIL OF INDIA (Constituted under the Pharmacy Act. 1948)

Prof. B. Suresh, M.Pharm., Ph.D., D.Sc., President Combined Councils’ Building Kotla Road, Aiwan-E-Ghalib Marg P.B. No. 7020, New Delhi-110 002 Gram : FARMCOUNCIL Tel. : 011 23239184, 23231348 Fax : 011 23239184

 Vice-Chancellor,, JSS University  Vice-Chancellor University JSS Medical Institutions Campus S.S Nagar, Mysore, 570 015 Tel. : 0821 2548391 Fax : 0821 2548394 [email protected] [email protected] www.jssuni.edu.in

October 10, 2009

FOREWORD Indian Pharmaceutical Industry with more than 26,000 companies and more than a lakh formulation need innovative and creative marketing strategies to sell them. Marketing, sales and distribution of Pharmaceutical Products are different from that of other overseas countries and most of the books available on pharmaceutical marketing are theory based. Pavan Choudary in this book, The Rx Factor gives a creative landscape of Pharmaceutical Marketing filled with innovative and practical marketing strategies. Many national and international journals have applauded his creative ideas in The Rx factor. Rating the book as one of the top three titles among 665  books on marketing explains its strength and popularity internationally internationally.. The book is systematically divided into easily readable sections to understand the concepts of pharmaceutical marketing tinged with Hindu mythology. mythology. The way Mr. Pavan puts the concepts of marketing bubbled with lots of creative ideas, easily grabs the attention of the reader and creates an interest to complete the book. I strongly recommend this Rx Factor book for Pharmacy students. I am sure the  pharmacy students will easily understand the concepts listed in the book and definitely make use of the creative ideas during their career in pharmaceutical marketing. I also recommend this book as a useful tool for sales force in the Pharmaceutical Industry. I congratulate Mr. Pavan Choudary for his successful efforts in putting the concepts in a systematic and creative fashion. The book is written in a breezy style which makes it easy to read and understand.

Dr. B. Suresh President

Introduction

T

he pharmaceutical industry in India has a lot to teach a student of marketing. The competition, which has become fiercer in recent years, has sharpened the marketing styles of many companies. At the same time, the dissociation of the industry from advertising agencies, market researchers and other marketsupport organizations has left many noticeable chinks in pharmaceutical marketing. Owing to my background in both advertising and marketing, perhaps, I have been able to discern these gaps more clearly.. This book is an attempt to fill some of them. clearly The foremost thing which a marketing professional needs to understand is his consumer, very much in the same way as a good doctor must understand his patient. The doctor can dispense the right  prescription (or (or,, in pharmaceutical parlance, the ) only when he has correctly understood the nature of the problem afflicting the patient. A successful is one that meets the intended purpose, namely namely,, treat the patient by tackling the problem at hand. Similarly, the cornerstone of a successful marketing ma rketing endeavour is an astute understanding of the market, which leads to a solution to the problems or exploitation of the opportunities the market throws up. A successful marketer must know the pulse of the market. He must  be totally totally cognizant cognizant with the social and psychological psychological profile profile of of the customer.. This knowledge and understanding of the market and the customer customer will determine what he needs to do to get his product 9

Introduction

accepted in the marketplace. It will govern his choice of prescription. This This knowledge is is the key to a successful marketing marketing strategy strategy,, the correct prescription. prescription. A successful strategy is one that emanates from market realities and one that enables the marketer get his  product prescribed or accepted. What distinguishes a successful marketing strategy from one that fails is precisely what I have chosen to call the factor factor.. For a marketing strategy to succeed in today's highly competitive marketplace, it is imperative that you adopt a strategy that is unique, innovative and creative, which will enable your product to stand apart. Without creative strategies you do not stand a chance of meeting the unprecedented levels of competition. But 'differentn 'differentness' ess' alone will not give results. 'Different-ness' with a purpose will certainly yield great dividends. What is therefore important is to be strategically creative with a predetermined purpose, not merely different. Thus, the factor is a purposive creative endeavour that emanates from a deep understanding of the realities of the market place. For convenience, I have divided the book into two parts. The first  part, I hope, will provide you with an appreciation of the factor factor.. The first three chapters in this part provide some of the vital characteristics of the factor as I understand it. Here I have given examples of both successful marketing strategies and those that have failed, and have shown how the distinguishing feature in all cases has been the factor - its presence or absence as the case may be. Here I have stressed on the need for adopting the right communication strategy and the importance of being truly creative in a strategic and purposive way, way, rather than being wayward or eccentric merely for the sake of wanting to be different. In the next two chapters I have discussed some techniques for generating strategically creative ideas and the importance of the marketplace as a reservoir for your creativity. creativity. The second part focuses on the creative execution of the factor factor.. While Chapters 6 and 7 explore options to the commonly accepted concepts of unique selling proposition (USP) and marketing 10

Introduction

warfare, Chapters 8 and 9 discuss two issues that appear to be extremely significant when introducing any new product in the market. The first focuses on the importance of giving the right brand name. The second deals with correctly pricing the product based on a proper understanding of the market and the consumer. The next chapter discusses the importance of credibility in advertising. Chapters 11 and 12 give ways to generate more productive flipcharts and promotools and ways to select the most potential doctors. In this book, it has been my endeavour to suggest new, new, practical and creative directions in pharmaceutical marketing. My idea is to open the minds (and hearts) of the readers to creative thinking by changing the mindset. The issues I have discussed by no means cover all a ll the areas in pharmaceutical marketing. But I do hope that I have  been able to place a finger on the pulse of marketing thought. Though the book has pharmaceutical marketing as its basic content, 1 have drawn freely from consumer marketing and advertising to infuse fresh ideas or to elaborate e laborate some points. As such, I hope that  both pharmaceutical and non-pharmaceutical marketing professionals, as well as people in the advertising profession will find something in this book that would be of use to them.

11

PART A

Understanding the   Factor 

CHAPTER

1

The Creative Legacy

I

ndian marketing came of age, ages ago. If you delve into the history of religion in India, you will be amazed at the marketing acumen of the propagators of Hinduism. Many of the concepts of marketing as laid down in the West in this century, possibly first found their application in Rigvedic times. Though the term 'unique selling proposition' (USP) was coined in America in the 1960s, its first application can perhaps be traced to Hindu mythology. The Hindu pantheon consisted of innumerable gods and goddesses. Many had a specific function and were supposed to satisfy a distinct need that they were called upon to fulfil. For example, Laxmi for wealth, Indra for rains, Saraswati for knowledge, and so on. Moreover, the process of product augmentation (a buzzword today Moreover, in marketing circles) is exemplified beautifully when one sees see s that some Hindu gods have moods or profiles that can ca n adjust to the needs of the supplicant or enhance the versatility of the deity. deity. So, we have  Durga  Durg a to bestow grace, Kali grace, Kali to  to destroy evil. Hinduism thus offered a composite package of innumerable godsone or more of whom could be chosen by the devotee. Now came the threat of 'cannibalization'. (Cannibalization, as we know, is a  phenomenon where the sales sa les of one product eats into the sales of another product of the same company.) company.) 15

Understanding the

Factor 

Hindu religion had to now ensure that the appeal of one god did not interfere with the popularity or acceptability of another. This delicate problem was beautifully resolved by the marketers of yore  by bringing in the concept of 'Avataars'. That is, the supreme deity is  born a number of times and the number of births matches the number of gods in the religion (even if this number runs into thousands!). This concept of Avataars Avataars ensured that in the same household two or more gods could be worshipped by different members of the household without religious differences cropping up. Thus, family members worshipping different gods could live in harmony. (See Figures 1.1, 1.2 and 1.3.) The concept of  A  Avataars vataars helped consolidate the corporate monopoly of Hinduism. Creatively speaking, 'the imagination of our forefathers knew no  bounds. Take ake Lord  Lord Shiva Shiva,, for instance. What a versatile collection of features! He has three eyes, one of which opens only to destroy evil. He also has a serpent se rpent coiled around his neck, while a river springs from his head. Perhaps, he is the only god in the world who dances. The legacy is rich with a future that holds promise. During a recent visit to the Kashivishwanath the Kashivishwanath temple  temple in Varanas Varanasi, i, as I walked wa lked up the stairs, an eleven-year-old boy approached me. He was selling lottery tickets. His spiel went something like this-. 'Sahib, lottery ticket le lo. Bhagvan muradein pur puree ee karega, kismat chamkayega' c hamkayega' (Sir, buy a lottery ticket. God will grant your wishes. It will make Fortune smile on you.) Many bought lottery tickets from him. I was no exception. The pitch was compelling. This little boy knew that the average Hindu has a contractual relationship with God. You You give something, feed the brahmins brahmins,, offer a cbaddar, and you can ask God for things in return. The boy knew that most visitors ask God for things. The hopes of a Hindu are high when entering a temple. Our young marketing man had chosen this strategic place to hawk his wares. Instead of harping on what attractive prizes could be won, the boy used a strategy that was different - he beckoned God. He instinctively knew his customer customer.. Unknown to him, the factor was 16

FIGURE 1.1

FIGURE 1.2

The concept of  Avataa  Avataars rs helped consolidate the corporate monopoly of Hinduism

FIGURE 1.3

Understanding the

Factor 

at work. No wonder wonder,, then, that he turned out to be one of the largest sellers of lottery tickets. Creative marketing genius is native to India. Marketing runs in our  blood. But are we utilizing this inherent instinct in us to its fullest  potential? Is the present-day marketer as brilliant as his forefathers? Can we do better? This book tries to find an answer a nswer to some of these questions. The context is pharmaceutical marketing. The content draws also from marketing of over the counter (OTC) and consumer  products.

18

CHAPTER

2

Market-based Communication

H

ow many pharmaceutical companies do you think there are in India? 10 ... 100 ... 10,000 ...? There are more than 26,000 pharmaceutical companies operating in the country today.. And how about the number of brands? today 5,000 ... 15,000 ... 50,000? The landscape is, in fact, dotted with more than 100,000 brands which are being marketed in India. This does give an indication of how fiercely competitive the industry is. Why must a doctor prescribe your brand and not the hundred others containing the same salt? How can you ensure that your approach is strategic and yet different from what the others have tried? Especially, when it is likely that the communication strategy that you decide to choose could be akin to what quite a few other companies have been using. And to compound it all, a ll, the doctors you go to are the same. The race begins now. now. But let us not get off the starting block just yet. Before that let us examine what we really mean by a communication strategy, and why it is important to adopt the right one.

The Right Communicatio Communication n Strategy Let us look at the communication strategy of one of the most wellmarketed antibiotic, ciprofloxaxin. Cost per tablet - Rs.8.50 for 19

Understanding the

Factor 

500mg. Exorbitant!? Some marketers predict doom. However, companies such as Cadila, Cipla and Ranbaxy go ahead and launch the product aggressively all over India. Who wins? Ranbaxy. This company forged ahead and became the undisputed leader, cornering a market share of 27.3 per cent for its brand, Cifran. Cipla became runner-up with 18.8 per cent market share (see Table Table 2.1). If you compare the two companies in terms of the number and calibre of their representatives, their stockist network,  promotools deployed, deployed, etc., there would be little to choose between them. Then what made one perform better than the other? TABLE 2.1 2 .1

Comparative performance of the three leading ciprofloxacin brands Product

MAT (Crs)

Group total cipro. oral solids Cifran (Oct. 1989)* Ranbaxy Ciplox (May 1992)* Cipla Ciprobid (August 1989)* Zydus

275.5 75.3 51.8 30.4

MS (%) 100.0 27.3 18.8 11.0

CHG (%) -6.2 6.1 16.4 1.8

MAT—Moving Annual MAT—Moving Total MS —Market Share Shar e CHG—Change Launch dates Source: ORG IMS, 2009.

Perhaps, it was the communication strategy that did it. Cadila and Cipla, both of which have histories of success, slipped up on this occasion. Ranbaxy established superior efficacy and justified the  price (Figure 2.1). They positioned Cifran (a quinolone) against cephalosporins, a class of expensive antibiotics. Rajiv Gulati, the man behind Cifran's success, feels that this  juxtaposition was so strong that some doctors started thinking of ciprofloxacin as a fourth-generation cephalosporin. It was factually incorrect, but appeared right perceptually perceptually.. Their base line, ' Cif Cifran ran—a —a refl reflect ection ion of your your con concer cern'  n'  was  was meant to handle objections to the high price. In fact, they used the high  price to provide the doctor with a means to show his concern for his 20

Market-based Communication

 patient. In turn, the doctor too, in his own mind, needed to justify the choice of such an expensive product. The base line was bang on target. The factor had worked. Cifran was adjudged the best marketed product by the Product Management Group. Marketing pundits still scratch their heads in disbelief as the sales of this product reflects Rs 75.3 Crs annually (ORG 2009). Let us take another example. Revital, the Ginseng from Ranbaxy was launched when the total market for Ginseng was about Rs 10 million. A couple of companies which had entered this market in haste were repentant. Owing to poor positioning and because their  products did not have extensive clinical trials to back them, they could not penetrate the market. Ranbaxy spotted a hole in the market. Conventional tonics had been catering only to the body and not mind. Revital was positioned as a tonic for both the mind and the body. The positioning positioning paid off. To tackle the lack of clinical data, Ranbaxy's first communication was: 'Revital—better experienced than explained.'   The doctors were asked to try the product themselves. Doctors have for long recognized the placebo the placebo effect. (The effect. (The placebo effect e ffect demonstrates that certain symptoms respond as much to the ritual of taking medicine as to the physical substance itself. In other words, it is the mind's influence over bodily processes that is at play here.) Several doctors tried the product. The presentation by the representative was strong, backed by premium pricing and good  packaging (Figure 2.2.). The product seemed to work. Or was it just the placebo effect enhanced by the representative's aggressive spiel? In any case, the demands for clinical trials did not wane. Ranbaxy then commissioned a small clinical trial and went to town with it saying: 'We don't meet standards, we set them.'   A few sceptic medicine men laughed. But the rest of the world bought Revital. It was the story of one great piece of down-to-earth communication 21

   d    h   e   y    t    i   s    b   i    f    i   w   i   n    t   e   t   r   s    i    1   c  .   u   i    j   r   g   o    2   p   p   i   n   s   y    E   x   s   r   o   a   l    R   a   '   a   n    U   b   a   p   h   n   r   m  p    G    i   o   e    I   a   f    F   R   C   c   c

Market-based Communication

and one great marketing success. According to Christopher Adams, Adams, the head hea d of marketing at Glaxo, UK, a drug is only one-third hardware (by which he means the chemicals encapsulated in a pill and swallowed by a sick person). The rest, according to him, is software or 'communications' made up of the knowledge about the drug, which persuades the doctor to  prescribe it, and the monitoring and pushing of the drug, which  persuades the patient to keep taking it. TABLE 2.2 2 .2 Comparative performance of leading ginseng brands Product Ginseng products (Evans) Revital (Jan. 89), Ranbaxy Riconia-G (May. 05), Ranbaxy Trinergic (July, 96), Unichem

MAT (Crs) 121.6 106.8 4.2 3.9

MS (%)

CHG (%)

100.0 87.9 3.4 3.2

22.7 26.8 -2.3 -5.3

MAT — Moving Annual Total MAT MS — Market Share  CHG — Change Source: - ORG IMS, 2009.

The medical community, when convinced, lends overwhelming support. The sky, sky, then, is the limit for a brand. The The doctors blessed Revital, and a nd it was off to a flying start. Today Today,, Revital whose whos e equity allowed the company to make it an OTC (over the countr) brand reflects Rs 106.8 Crores. This may appear like wishful thinking, a pie in the sky. sky. But markets such as this do exist. The trouble lies with us—we are content with scratching the surface. Revital's success was based on a perceptive understanding of the market. When a marketer does not respect the reality of the marketplace, the market shows no mercy. What follows is an illustration of a mission that failed owing to this very lack of understanding of the marketplace.

The Pucca Structure —  An  An Open and Shut Case One multinational aid agency identified open defecation as the main 23

Better experienced than explained FIGURE 2.2 Market-sensitive communication, strong presentation, premium pricing and good packaging helped Revital take off.

Market-based Communication

reason for the poor rural health scenario in one of the states of India. So, it decided to sponsor a free  pucca lavatory in each rural household of some villages. A noble noble mission to curb defecation in the open. The lavatories were  built but nobody used them. For reasons that would appear strange to someone who did not understand the realities of the land: •

In mo most st ho hous uses es th this is wa wass the the on only ly pucca  pucca structure so it was used to store grains which the normal structures with thatched roofs could not protect from rain.



In som somee hous houses es thi thiss free free lav lavat ator ory y was was cove covere red d up and and converted into an additional room.



Most impo Most importa rtantl ntly y, becau because se all hou houses ses wer weree give given n near near identical structures, the upper castes did not use them as this would reduce the gap in status between them and the other castes. They felt that their exclusive status would be  jeopardized if they they were to use the the toilets. toilets. At the the same time, the lower castes too did not use these because their reference group, the upper castes, were not using them.

Such noble intentions, backed by big money! The scheme, sc heme, of course, got 'shuttered'. And defecation still takes place in the open. Ranjana Subberwal, an eminent sociologist, observed a similar  phenomenon in Rajasthan when a high-yielding variety of seed was  being marketed to an audience of landless labourers! Out of sync with market reality, reality, such schemes are bound to fail.

Market-sensitive Market-sensitiv e Communicatio Communication n A brilliant piece of market-sensitive communication is that of Calmpose. You know what it is for. So does the doctor. So do most  patients. And there lies the rub. The brand is familiar; if the doctor  prescribes Calmpose to a patient, he loses to some extent the aura of mystery surrounding his profession. The ad for Calmpose says: ' Calmpose—the best is always familiar' (Figure 2.3) 25

Understanding the

Factor 

Doctors know of the widespread awareness of the brand name. By saying, 'the best is always familiar' you tell them why Calmpose is familiar.. Few doctors would desist from prescribing what is the best. familiar

FIGURE 2.3 Calmpose making a strength out of a weakness

TABLE 2.3 2 .3 Comparative performance of leading diazepam brands Product

Tranquilizers Calmpose (Sep. 1969), Ranbaxy Valium (Nov. 1979), Piramal

MAT(Crs.)

MS(%)

CHG%

30.0 12.7 11.1

100.0 42 .3 37.1

5.7 3.7 7.8

MAT—Moving Annual Total MAT—Moving MS—Market Share CHG — Change Source: ORG IMS, 2009.

To reinforce this concept, one flipchart asked; 'Should your patient  forego  for ego the best just because it is familiar?'  This  This communication thus was able to extend the maturity stage of the product lifecycle of Calmposee (Table Calmpos (Table 2.3). These examples demonstrate that good communication strategies spring from and take care of the realities in the marketplace. Most communications from this company were impeccable. Having said this, take a look at the advertisement from Stancare, a Ranbaxy 26

   !   s    t    4  .   n   e    2   e   d    i    E  m  c   e    R  m   o    d    U  c   u    G    I   o   o    F   N    Y

Prescribe Fasigyn FIGURE 2.5 Pfizer expands the amoebiasis market. Brilliant!

Market-based Communication

group company (Figure 2.4). Objectively speaking, how do you react to its layout, its copy? Do you think such communication can  possibly produce results? Let us move on to something more positive. We now turn the pages of marketing history to a communication message that worked. 1992. The anti-amoebic segment was in the decline, and Pfizer's Fasigyn, though a late entrant. was the leader here (Table 2.4). Pfizer saw the downturn in 1992 and focused on expanding the market by such communication (Figure 2.5). TABLE 2.4 2 .4 Comparative performance of leading anti-amoebic brands Product

Amoebicides oral solids Fasigyn (Sep. 1988), Pfizer Metrogyl (Aug. 1972), Unique Tiniba (Feb. 1980), Alidac

MAT(Crs.)

MS(%)

622.9 94.7 83.5 29.1

91.5 13.9 12.3 4.3

MAT—Moving Annual Total MAT—Moving MS—Market Share CHG — Change Source: ORG IMS, 2009.

Today, the market marke t is robust. Surely Sure ly,, this is partly because bec ause of Pfizer's Pfiz er's efforts. Zydus Cadila, with its brand Tiniba, has beaten Pfizer in recent times and this is commendable; but Pfizer did grow the market. The company, with just 65 products, grosses Rs. 820 Cr. Remarkable indeed! To sum up, a successful communication strategy defines what is to  be said. It springs from the realities in the marketplace. But while this is a necessary foundation for success, success , it is not enough. You You also need a creative and unique execution of the communication strategy to succeed in the crowded pharmaceutical market. But is it  possible to be creative while working within the narrow confines of strategy? Can we be strategically creative? This is what we explore in the next chapter. cha pter. 29

CHAPTER

7

Marketing Peace

B

ut all marketing is warfare, or so they have said so far. far. In my view, marketing is both war and peace. Marketing is both war and love.

However, only one facet of marketing has been expanded upon war, attack, aggression. It is win-lose only. This is where we go wrong. The most clearly visible facet of marketing has been taken to cover the entire gamut of marketing. One equally dominant, equally productive strain has not yet been discovered. The strain of peace - marketing peace. Marketing peace is an alternative marketing ma rketing outlook. The concept of marketing peace has been in use since time immemorial. I first recognized this concept when I delved into the history of religion in India. In the first chapter, chapter, we spoke of the concept of  Avataars  A vataars.. This concept says that there is one supreme deity who is  born again and again. Through this concept the Hindu religion ensured that the appeal of one god did not clash with the appeal of others. Individuals and households worshipping different gods could live together without religious differences cropping up. This concept of A of Avataars vataars is  is an example of marketing peace.

Changing the Frame of Reference To understand the concept of marketing peace, we will look at the Hero Puch advertising campaign. But before that let us trace the 67

Creative Working of the

Factor 

history of the Honda line of bikes because there is an important lesson here. Remember the Hero Honda commercial, 'Fill It, Shut It and Forget It' ? What a roaring success the bike was! Some years later the line was changed. Earlier, the product was in its growth stage on the product lifecycle and the fuel-efficient message was well communicated. Now, thousands of bikes were there on the roads to endorse end orse the bike's bike 's credibility credibi lity.. Thus was born the 'Y ' You have got a good thing going' ( Aap ka shandar hamsafar ) (Figure 7.1). This commercial owes its genesis to a keen insight into buying  behaviour and, of course, some commonsense. The advertiser understood that nobody bought a bike because of an advertisement. The likely purchaser went to the existing owners of  bikes in his consideration consideration set and sought their opinion. opinion. This behaviour was recognized and exploited through the advertisement. The advertisement gave the existing owner words to mouth about his  bike. Later, the number of bikes sold was put up on hoardings so that the new prospect would feel very positive about the bike - so many  people could not be wrong. Figure 7.2 shows the genesis of the Hero Honda advertisement and its progress. Note how the message changes with the changing stage of the product lifecycle. The next challenge before the company was to sell Hero Puch. With With no Hero Puchs on the road, who was going to endorse the bike? The solution was to change the frame of reference. Thus was born the advertisement,  Akele  'Akele hoti hai hai har nai shuruaat.  Agar shakti shakti hai pass tumhare tumhare to zammana zammana dega saath saath.'.' (Every new  beginning is made by an individual. individual. Others will follow if you have the power.) By making the buyer of a Hero Puch a pioneer, the advertisement tried to change the schema of the existing behaviour pattern (Figure 7.3). You change the landscape rather than crowd the position everybody is rushing into. Thus by changing the frame of reference, you make other sites as attractive. a ttractive. Can you recall the Zara the Zara sa Rin advertisement Rin  advertisement that was aired some 68

Jingle: Hero Honda...

Jingle co continues: Yo You’ve go got a good thing going...

Jingle continues: Hero Honda...

MVO: Fo Four-stroke ma makes al all th the difference. (Music under)...

Jingle continues: You’ve got a good thing going... Hero Honda...

MVO: Fill it. Forget it. (Music under)... Jingle continues: You’ve got a good thing going...

FIGURE 7.1 (Contd)

FVO: I like it. (Music under)... Jingle continues: You’ve got a good thing going...

MVO: Very Very very sensible. se nsible. (Music under)...

Jingle continues: You’ve got a good thing going...

MVO: Gaari ho to aisi...  aisi...  (Music under) Jingle continues: co ntinues: You’ve You’ve got a good thing going... Hero Honda...

MVO: What a bike! (Music under)...

Jingle continues: Hero Honda...

FIGURE 7.1 Market-sensitive communication makes Hero Honda the leader 

   e     l    c    y    c    e     f     i     l    t    c    u     d    o    r    p    e     h    t    n    o    s    e    r    u    t    a    m    t    c    u     d    o    r    p    e     h    t    s    a    s    e    g    a    s    s    e    m    g    n     i    g    n    a     h    c    a     d    n    o     H    o    r    e     H     2  .     7     E     R     U     G     I     F

Creative Working of the

Factor 

years back? If you have used the product you will know that the bar melts rapidly. rapidly. That was a weakness. This advertisement changes the frame of reference by converting this weakness into a strength. According to Rajiv Vij, the Senior Product Manager at Hindustan Lever, the advertisement was a roaring success, because not only did it make the most of a weakness, it also was suggestive of economy econom y and power. In the same league is a flipchart developed by American Remedies. The company was small in size but big in 'think input'. It had too small a range of products. This is how it changed the doctor's frame of reference. The following was the line the representative was to say through the flipchart. ‘Sir, efficacy, safety and convenience are the three attributes which  you look for in a drug. That is why why,, though there are hundr hundreds eds of molecules available, you write just a few few.. 'Similarly, Sir, efficacy, safety and convenience are the three  parameters we look for in a drug that we market. That is why though there are thousands of formulations to market, we sell just a few. This is American Remedies...'  In any product category where product lifecycles are short, product obsolescence common and new product introduction rampant, changing the frame of reference is a very useful though little used technique. You keep your product's appeal current and alive by redefining the prevailing schema. This also helps you avoid a dogfight. Changing the frame of reference is thus one illustration of marketing peace.

Promotional Cartelization The word 'cartelization' has negative connotations. Cartelization usually refers to price fixing, stock cutting, debarring other entrants, and so on. But it offers potent avenues for the use of marketing peace. If you 72

VO:  Hero naye yug ka - Aamir  Khan (The new generation hero - Aamir Khan)

MVO: (A. Khan): Akele Khan):  Akele hoti hai har nayi shuruaat agar shakti hai  paas tumhar tumharee to zammana dega  saath (Every new beginning is made alone. If you have the power, the world will be with you)

Music:  Akele hoti hai har nayi  shuruaat...

Music: Tumhare pass hai shakti (If you have the power)

(Every new beginning is made alone)

Music: To zammana dega deg a saath... (The world will be with you) FIGURE 7.3

(Contd)

Music continued

Music: Hero hai hero Hero Puch... (Hero Puch is a hero)

Music:  Naye yug ka hero hero.. Hero  Puch naya yug nayi shakti... (Hero Puch is the hero of the new generation. New generation. New  power)

MVO (A. Khan):  Aur zammana dega saath...

VO & Music: Hero Music: Hero Puch

(And the world will be with you)

FIGURE 7.3 Hero Puch - Beyond positioning. Changing the frame of reference

Marketing Peace

can think of a new type of cartelization - promotional cartelization. Let us take a case. Typhoid Typhoid can be prevented. There are at least two companies in India which are marketing typhoid vaccines which can  prevent the disease for a particular number of years. But, unfortunately,, typhoid is not considered as serious an infection any more by nately the medical community comm unity.. The doctor today has antibiotics that can take care c are of typhoid in just five days, with the overall cost of therapy running to less than Rs 50. Moreover,, many of these antibiotics virtually guarantee hundred per Moreover cent results with no relapses. At present, the vaccines are pegged at Rs 275 (for an oral dose of three tablets) and Rs 400 (for an injection). Both companies are at each other's throats to prove how their form is better. be tter. A lot of energy is going waste. Can it be fruitfully channelized to  provide the marketers larger gains? Yes, through promotional cartelization. How? Rather than fighting each other, if these companies were to fight the current perception in the doctor's mind that typhoid is not a very serious disease, there would be synergy. synergy. There will be success. If the fact that it is much better for a patient not to suffer from the infection (though it is controllable) could reach the doctor's mind effectively, far more sales for these companies could be generated than they can snatch from each other other..

Teaming Up for Mutual Gain A potent potent avenue for marketing peace is co-promotion. The pharmaceutical industry has just begun to exploit this area. area . Companies are realizing that product usage can be extended to market segments and geographical areas not being effectively covered if they were to team up with companies that are strong in areas where they are weak. Another area where the concept of marketing peace is working well 75

Creative Working of the

Factor 

is that of strategic alliances in research, Glaxo and Searle have formed such an alliance which is working for the advantage of both. IBM, Motorola and Apple Computers have been collaborating on the power chip. Hewlett Packard has a partnership with Canon for laser printers - Canon develops the engines for splitting ink on the  page, while Hewlett Packard develops software, microcontrollers, customer research and marketing.

Claiming Higher Ground Marketing peace is a valuable concept because there is much unclaimed territory in the market today. today. However, how often do we indulge in expensive and wasteful fighting to snatch what is someone else's? It happens in all industries. Take Take the example of media. Magazines the world over have been trying to take on television channels. However, if a magazine group could instead tie-up with a television channel to offer special rates to those who subscribe to  both, it could be a win-win situation. Peace! In fact the largest magazines in USA is one which tells people about programs which will appear on TV in the forthcoming week. Many markets all over the world are in their infancy. Unclaimed green pastures are waiting to be acquired. This fact is overlooked. We assume full adulthood of the market. ma rket. It is wrong to believe that it is necessary to fight to win. But mostly, mostly, one must have the sight, the vision, to win. With With vision most wars can be avoided and precious resources conserved. The markets are not saturated. Our minds are saturated with the idea that tha t all marketing marketin g is war. war.

Take the example of the Carefree advertisement - 'Dhona, sukhona, banana ab gaya vo zamana' zamana ' (Washing - drying - gone is that era.) (See Figure. 7.4.) Also note how the line ' Akhir  Akhir unhe bhi to pata chale ki hum bhi modern hai (Let hai  (Let them also know that we too are modern) taps into a common Indian instinct of status. It may be argued that though you are not fighting these categories, you are fighting others. But you need to understand that times have changed. 76

Video: A young girl is being teased about her marriage. Audio: Aur Audio:  Aur Pooja, naye ghar mein jaa kar apni purani mausi ko math bhool na (Pooja, don’t forget your old aunt when you go to your new home.)

Video: Her elder el der sister adds Audio:  Jahaan itni nayee baaten sun rahee hai... (Where you’re hearing so many new things...)

Video: Close-up of Carefree Pack  Audio:  Ek zaroor zaroorii baat sun! Yeh hai Carefree (Listen to something important. This is Carefree.)

Video: Her elder el der sister continues... Audio: Kyonki Audio:  Kyonki main janti jant i hoon... Vahaan Vahaan nahi chalega purane style ka dhona, banana... (Because I know that there the old style will not do. Washing, Washing, making...) ma king...)

Video: She shows a Carefree napkin Audio: Carefree ek readymade napkin hai... (Carefree is a readymade napkin...)

FIGURE 7.4

(Cond)

Video: A close-u close-up p as she continues cont inues Audio:  Jo zyada sokhe aur poora saaf dry feeling dey (Which soaks more and give a clean and dry feeling)

Video: She shows the elastic el astic belt Audio:  Aur saath main yeh napkin ko hilney na dey (And this will keep the napkin in place)

Video: The bride to be giggles Audio: Didi Audio:  Didi!! (Sister!)

Video: The elder sister retorts Audio: Aakhir Audio:  Aakhir unhe bhi to pata chale ki hum bhi modern hain (Let them also know we too are ‘modern’)

Video: Pack short super  supe r  Audio: Carefree belted sanitary napkin dhona, banana, sukhana ab gaya woh  zamana (Carefree belted sanitary napkins... Gone are the days of washing, drying and making...)

FIGURE 7.4  Another  Ano ther exam example ple of marke marketing ting pea peace ce

 Bahadur bachchon ki pehchaan (The symbol of brave children)

 Antar rashtriya Handyplast  (Internationall Handyplast) (Internationa

 Handyplast 

 Duniya bhar mein mein bahadur bachchon ki pehchaan  Handyplast 

(The symbol of brave children the world over - Handyplast)

FIGURE 7.5

Handyplast - A medal for bravery. Ingenious!

Creative Working of the

Factor 

We have moved from the disposable concept of income to the discretionary concept of income. There is greater purchasing power available today. Most small-ticket purchases are impulsive. You don't always buy one thing and then have to go without the other. other. In such a scenario, is it necessary to battle battle head to head with your competitor? Isn't there a higher ground that is above street fighting? Take a look at this ingenious Handyplast 'bahaduri ' bahaduri ki patti' patti ' advertisement (Figure 7.5). It exploits the fact that every child likes to feel that he is brave and display his valiance to the world. Therefore, he uses a plaster even when it is not called for. It is his way of showing off. The advertisment exploits this and tries to market Handyplast as a cosmetic - a medal of bravery for the child - without attacking other products. Marketing peace. (I only wish they used the brand name more often.) But, all said and done, marketing peace is a path of great resistance which is difficult to find. It needs a high degree of creative search. It needs courage. Bahaduri courage. Bahaduri..

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