Instructions

The case study competition is opened to the 1st & 2nd year students of the PGP course.

Rules: Team of 4 students ; may be a combination of 1st & 2nd year students Each team to analyze the case study and submit a power point presentation of not more than 8 slides( all inclusive) On the 1st slide, please mention your team name, name & batch of all participants File name should be Institute name-team name ( e.g. XLRI- Dreamers) Write case study entry -institute name- team name in the subject line ( e.g. case study entry- XLRI-Dreamers) Mail your entries to in.campuspharmahub@gsk.com by 16th December 2013, 8 am Evaluation: 4 teams will be shortlisted Shortlisted teams to present their PPT to the evaluation panel

Prizes: Total cash prize of Rs. 15,000/- for the winning team 2nd year students of the winning team will be evaluated for a PPO ( sales & marketing role)

Contact: While solving the case study, if there are any queries, please contact our product managers: o Pankaj Mehrotra- +91 22 24959690 o Poornima Choudhary- + 91 2229559373

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Case Study: Faith Pharma Ltd.

Introduction:

The pharmaceutical industry is a knowledge driven industry. It develops, produces, and markets drugs which can be used as medicines. There are two major categories BRANDED and GENERICS. Both prescription and OTC medicines can be branded or generic depending on whether it is patented product of that company or out of patent product or given an exclusive right for marketing. The pharmaceutical distribution channel is indirect with usually three channel members i.e. depot/C&F, stockist and chemist. Pharmaceutical companies appoint one company depot or C&F agent usually in each state and authorized stockist(s) in each district across the country. Company depot/C&F sends stocks to authorized stockists as per the requirement. Retail chemists buy medicines on daily or weekly basis from authorized stockiest as per demand. Many companies such as Absolute Cure, Zodiac, Faith etc are known for their availability of products. For marketing these types of products companies require more field force to remind about their products on a daily basis to their direct customer (doctor). Moreover, field force should have good knowledge of the product schemes and offers. The Field force is also required to have a good rapport with stockists and retailers and ensure consistent availability of their products to convince doctors and push their products. Patients visit chemists for buying medicines either prescribed by a doctor or advertised in the media. Here patient is the end consumer and doctor is the direct customer for any pharmaceutical company. The companies focus more and more on the availability of products so as to enjoy good image in their customers (doctors) chamber. The role of supply chain is very prominent in both the phases (in acute as well as in chronic). Building good relationship with doctors is essential for Effective Sales & Marketing. Out of the total doctor population as much as 60-65% is general practitioners. The higher specialties constitute the remaining 35-40%. With the rise in the number of pharmaceutical companies in the country, the competition has toughened. As a result most of the doctors are being met by at least 60-100 companies. In an ethical market, product promotion is directed solely to the qualified doctors. No advertising mentioning the brand names is allowed in the lay press. The medical representative (MR) is the major means of promotion though other media like direct mail, journal advertising, and conferences also play a role albeit a limited one. Typically, sales force expense comprises an estimated 15 percent to 20 percent of annual product revenues. Medical representatives meet doctors, chemists and stockiest as per company norms. It has been observed that sometimes in a day there are more than fifteen or sixteen representatives meeting a customer and requesting for the same type of products. Although the field force visits are important for an update on drugs and their use, these days the doctors generally try to avoid the sales representatives as there are too many of them and they are too pushy and there is too little time. As a result the doctors are reluctant; they are least interested and the meetings are short. This poses a challenge for the representatives. Each representative has a must see list of doctors. The no. Of calls are decided based on the potential of a doctor. A medical representative has to do the market & prescription analysis to know the potential of a doctor. The promotion activities are decided accordingly. Pharmaceutical companies put more focus in the engagement of key opinion leaders.

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Pull System

In this system, doctors are the core customers and the major thrust is given to build and retain these customers because they are pulling the demand for the products, hence companies also give a lot of emphasis in building and retaining these customers. For marketing of these products companies require more and more skilled field force to develop good rapport with their direct customer (doctor). Moreover field force should have good product knowledge and know the USP of their products over others so as to convince doctors and PULL the demand for their products i.e. from the Doctor to the Retailer to the Stockist to the CFA and finally to the company. For retaining and developing customers, the companies normally provide services like sponsorship for various customers' continuous medical education (CME programs) and conferences like RSSDI, FOGSI, APICON, UPCON etc. Also it is interesting to note that since this is a pull system, demand is being pulled in to the market. So generally representatives place product orders from their stockist on the basis of following formula: ( offtakes * 2 closing stock )

CORE CUSTOMER (Doctor) - END CUSTOMER (Patient) - NONCORE CUSTOMER (Retailer) CUSTOMER (Stockist)-CUSTOMER (C & FA).

Push System In this system, doctors and retailers are the core customers and the major thrust is given to build and retain these customers. Here retailers are also considered to be the core customer as most of the times they are substituting the products based on their own discretion. For retaining and developing customers, the companies normally provide sponsorship for various conferences and remind the products on daily basis. It is interesting to note that since this is a push system, products are being pushed in to the market. So, generally, representatives place product orders from their stockist on the basis of SKUs sold and schemes. Supply Chain Managers can provide considerable value to their companies by understanding the customers' delivery requirements. A very powerful tool for understanding these requirements is account segmentation. A company can use account segmentation to identify market segments Such as Acute & Chronic therapy market, which is well positioned to serve and then organize its product range and even SKUs and service in a superior way. Companies are fighting (for customers) like never before and if anything is certain then it is further intensification of this war, and because of this, companies are increasingly looking at Logistics as a weapon to gain Competitive Advantage and it is true that Logistics has the potential to do so. Chain-delivery can be defined as "how well the product or service is delivered to the consumer". Delivery is the final link in the chain of the total Logistics function; i.e., it is the point where the logistics function finally meets the customer. The focus is on efficiency and effectiveness and it includes fleet routing, deciding on timing and locations of delivery, scheduling and vehicle planning, etc. CORE CUSTOMER (Doctor)-END-CUSTOMER (Patient)-CORE CUSTOMER (Retailer) - CORE CUSTOMER (Stockist)CUSTOMER (C & FA).

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New industry models & their implications on Sales Force Effectiveness Many leading pharmaceutical companies are now rethinking their definition of sales, marketing, corporate affairs, medical affairs and other disparate groups. In some companies there is a clear move towards a much more holistic and integrated approach to sales and marketing one in which selling and sales force effectiveness is not viewed as just the responsibility of the field force, but as an integral and interlinked part of a much wider picture. Sales force effectiveness typically means three things to a pharmaceutical company: 1. Increasing the number of calls with physicians 2. Increasing the duration of calls 3. Effectiveness of the messages delivered within the calls The dominant themes in sales force effectiveness nowadays are more related to aligning the sales force approach with the new realities of the healthcare environment.

About Faith Pharma Established in the year 1924 in India Faith Pharmaceuticals Ltd is one of the oldest pharmaceuticals companies and employs over 3500 people. Globally, it is a leading, research-based healthcare and pharmaceutical company. In India it is ranked among the top 3 pharmaceutical companies (ANNEXURE-2). At Faith Pharma, the mission is to improve the quality of life by enabling people to do more, feel better and live longer. This mission drives Faith Pharma to make a real difference to the lives of millions of people with their commitment to effective healthcare solutions. The Faith Pharma India product portfolio includes prescription medicines and vaccines. The prescription medicines range across therapeutic areas such as anti-infectives, dermatology, gynaecology, diabetes, oncology, cardiovascular disease and respiratory diseases. Faith Pharma is the market leader in most of the therapeutic categories in which it operates. Current challenges: 1. Faith Pharma India has sustained the maximum hit by the new drug price control order (DPCO) (ANNEXURE- 3) 2. High attrition rate of the frontline sales force- 25 %- 28%. Maxium attrition ( 30%) observed among the newly recruited sales personnel ( < 1 year service in the organisation) 3. Recruitment and travel ban has been imposed to contain the cost 4. Non implementation of marketing strategies by the sales force 5. Poor quality of sales and retail calls 6. Reduction in accessibility of health care practitioners (HCPs)

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There are 4 Cycle Meetings (team wise/territory wise) held at Faith Pharma annually that are organized across India and new strategies are rolled out to the Field force. Each meeting lasts for 3 days. (Sample cycle meeting schedule-ANNEXURE- 4) The Brand Managers put in a lot of effort to create the new Strategies and the Visual Aids for the Sales team. Sales people feel that the 3 days meeting is a time for unwinding and relaxing and also learning about the change in market scenario and plan course corrections if any. Management is very serious about the present gaps and is keen to change the scenario for which campus interviews are being held across the country to identify young talent and fresh minds that will help to bring about the change and also use the technology to address the glaring issues.

You have joined Faith Pharma as a Management Trainee in the Sales & Marketing Department. Based on the scenario mentioned in the case study: Suggest what could be the possible strategic directions that the leadership team can take? What actions should be taken to increase the sales force effectiveness?

ANNEXURE- 1

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ANNEXURE- 2 Leading Corporations Performance The Top10 Corporations for the month of June 2013 were as follows: June'13 MAT MTH Ranking 1 1 2 2 3 3 4 4 5 6 6 5 7 7 8 8 9 9 10 10 Corporations Total Market Purite laboratories Curewell pharma Faith Pharma Levis Labs Zodiac Ltd Healthcare Ltd Diamond Chemicals Trident Labs Dr. Narayan's Absolute medicine Ltd Val Crs 6,262 426 287 286 242 233 239 226 201 195 184 Month MS% Val Gr% 100 9 6.8 2 4.6 3 4.6 17 3.9 0 3.7 0 3.8 3 3.6 24 3.2 3 3.1 8 2.9 13 12 Months To Date Val Crs MS% Val Gr% 74,656 100 10 5,173 6.9 5 3,641 4.9 7 3,318 4.4 16 3,035 4.1 6 3,018 4.0 3 2,938 3.9 7 2,526 3.4 14 2,481 3.3 9 2,390 3.2 7 2,159 2.9 15

Source : IMS ORG TSA MAT June 2013 TSA means Total Sales Audit

ANNEXURE- 3

PRE NLEM

POST NLEM MAT SEPT '13 VAL IN CRS % VAL GROWTH

FAITH PHARMA TOP BRANDS UNDER NLEM

BRAND FAGMENTIN SILPOL PEROXIN VAXIN PRIMTEL CRISZENE SORTUM ZEROXIN PAVIRAX RUFSPAN PEROTREXATE CATEGORY VAL IN CRS

MAT MAY'13 % VAL GROWTH

Dataset considered: Mat Sep13 IMS TSA

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ANNEXURE- 4 Agenda Of July 13 Campaign Briefing

DAY 1 FROM 9:00 AM 10:00 AM TO 10:00 AM 10.30 AM PLAN Division's performance RESPONSIBILITY NSM REMARKS Highlights of Cum June Performance, Way forward.

Tea Break Regional performance Highlights, Key issues & Way forward

Region S REVIEW 10.30 AM 11.00 AM

RBM

ABM TEAM's REVIEW 11.00 AM 12.15 PM

ABMs

TEAM's HIGHLIGHTS & Time bound action plan on KOL , KBL building

REFRESHER of selected 2 brands 12.15 PM 01.00 PM 1.30 PM 1.00 PM Disease Product Knowledge Test on top 5 competitors of above mentioned 2 brands Lunch Area Training Manager

Brands are selected by RBM; Emphasis on Feature- Benefits through role plays

1.30 PM 2.30 PM

Overview IPM, Faith Pharma and the Division 2.15 PM 2.45 PM

Marketing Manager

4.15 PM

Product Manager

2.45 PM 4.15 PM

Activity review & Marketing Plan 4.30 PM Tea Break

Overview- Top 10 corporations, segments Rural/urban markets, categories & main products and competition For Each Brand : Review of last campaign activities & their business Impact; way forward action plan to achieve objective of each brand

Product Manager

4.30 PM

5.30 PM

Activity review & Marketing Plan

For Each Brand : Review of last campaign activities & their business Impact; way forward action plan to achieve objective of each brand

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DAY 2

FROM 9.00 AM 10.30 AM

TO 10.30 AM 11.00 AM ROLE PLAY TEA BREAK

PLAN

RESPONSIBILITY ABMs & reps

REMARK Product specific role plays

Explanation of New visual aid pages 11.00 AM 12.00 AM 12..30 PM 12.00 AM 1.30 PM 12.00 AM 12.30 AM 12.45 PM 12.30 AM 2.15 PM MODEL DETAILING

Product Manager

Explains communication message used in New visual aid Detailing of key top 10 brands

ABMs

Break MODEL DETAILING Lunch ABMs Detailing of key top 10 brands

Reps, Area Training manager, ABMS 2.15 PM 4.00 PM 4.00 PM 4.15 PM DETAILING CONTEST TEA BREAK

All Reps to detail identified brands in a given situation- like specialty & competitor

Reps, Area Training manager, ABMS 4.15 PM DAY 3 FROM 9.00 AM 10.30 AM 11.00 AM 12..30 PM 12.45 PM 1.30 PM 5.00 PM TO 10.30 AM 11.00 AM 12.30 AM 12.45 PM 1.30 PM 2.15 PM ROLE PLAY DETAILING CONTEST PLAN RESPONSIBILITY ABMs & Reps

All Reps to detail identified brands in a given situation- like specialty & competitor REMARK Product specific role plays - Review by NSM, RBM

TEA BREAK ABM team discussions NSM , RBM Performance highlights; address the Concerns;

Break Soft skill training Lunch Reps To prepare visit & input plan for next 3 months End of the briefing Area Training Manager Skill set as identified by ABMs & RBMs

2.15 PM 4.00 PM 4.15 PM

4.00 PM 4.15 PM 4.30 PM

Sampling strategy submission TEA BREAK RBM

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