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Criticality of Bridging the Skill Gap in Today’s Indian Pharma Industry

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To address the shortage of adequately skilled workers in the country, in 2023, the Government of India released a new version of the national skill development initiative called Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0). It is touted as a major upgrade over the previous versions of the scheme and aims to train 100 million people in different skills by 2024. This is expected to have a positive impact on the economy, creating new employment opportunities.

In this article, I shall deliberate on its current relevance in the Indian pharmaceutical industry. Let me start with some of the new features of this scheme and their relevance to the drug industry as I move on.

Some new features and details of the scheme:

As I see it, PMKVY 4.0 includes a number of new features and details over the previous versions, as follows:

  • A focus on high-demand skills: The scheme will focus on training people in high-demand skills, such as artificial intelligence, machine learning, and cloud computing.
  • A greater emphasis on apprenticeships: The scheme will encourage more apprenticeships, which will provide trainees with hands-on experience.
  • A focus on women and underrepresented groups: The scheme will make special efforts to train women and underrepresented groups.
  • A greater focus on quality: The scheme will have a stronger focus on quality assurance to ensure that trainees are getting the best possible training.

Similarly, the specific details of the scheme include:

  • The scheme will be implemented by the National Skill Development Corporation (NSDC).
  • The scheme will cover a wide range of skills, including IT, manufacturing, healthcare, and retail.
  • The training will be provided by a network of training providers, including government institutions, private training institutes, and industry partners.
  • The training will be free for all eligible candidates.
  • The scheme will also provide financial assistance to trainees to help them cover their living expenses during the training period.

Studies on the lack of a skilled workforce in the Indian pharma industry:

In tandem with the above, the lack of a skilled workforce in the Indian pharmaceutical industry has also emerged as a major concern in 2023. The industry is growing rapidly, creating a high demand for skilled workers.

Unfortunately, a huge shortage of adequately skilled workers keeps increasing. A contemporary study by the Indian Pharmaceutical Alliance found that the industry will need an additional 1 million skilled workers by 2025. Moreover, the National Skill Development Corporation (NSDC) has also identified the pharmaceutical industry as one of the top 10 industries facing a shortage of skilled workers. 

Factors contributing to this shortage:

Several factors have contributed to this shortage, including:

  • The rapid growth of the Indian pharmaceutical industry: The Indian pharmaceutical industry is growing at a rate of 10% per year. This rapid growth has created a demand for skilled workers that the industry is struggling to meet.
  • The increasing complexity of pharmaceutical manufacturing and marketing: Both are becoming increasingly complex, demanding employees with different skill sets. who have the knowledge and skills to operate complex equipment and follow strict procedures in the manufacturing process. Similarly, pharmaceutical marketing is also becoming increasingly complex due to the increasing number of regulations governing the industry, the growing importance of digital marketing, and the need to target a wider range of patients with varied demands and expectations. 
  • The lack of adequate training opportunities: There are not enough training opportunities available to meet the demand for skilled workers in the pharmaceutical industry. This is due to a number of factors, including the high cost of training and the lack of qualified trainers.
  • Mismatch between salary and expectations: There is often a mismatch between the salary offered and employee expectations. The average salary offered in pharmaceutical marketing is not as high as in other industries, such as technology. This makes it difficult to attract and retain skilled marketing professionals. 

The impact of the shortage of adequately skilled workers:

The shortage of skilled workers gives rise to negative consequences for the Indian pharmaceutical industry, such as:

  • Reduced productivity: The shortage of skilled workers is leading to reduced productivity in the pharmaceutical industry. This is because unskilled workers may lack the knowledge and skills to perform tasks efficiently.
  • Increased costs: The shortage of skilled workers is also leading to increased costs in the pharmaceutical industry. This is because companies have to pay higher salaries to attract and retain skilled workers. 
  • Quality problems: The shortage of skilled workers can also lead to quality problems in the pharmaceutical industry. This is because unskilled workers may not be able to follow GMP procedures correctly. Also, because unskilled marketing professionals may not be able to develop and implement effective marketing campaigns. 
  • Compliance issues: The shortage of skilled workers can also lead to compliance issues in the pharmaceutical industry. This is because unskilled workers may not be aware of the regulations that apply to the industry or the consequences of their violations on patients and society.

What the industry is doing today:

Some steps, though not considered enough by many, are being taken by the Indian pharmaceutical industry to address the shortage of skilled workers. Here are some specific recent examples:

  • Establishing training institutes: The industry is establishing training institutes to provide training to workers in the pharmaceutical industry. For example, the Indian Drug Manufacturers’ Association (IDMA) has established the IDMA Skill Development Institute in Hyderabad. The institute offers courses in pharmaceutical manufacturing, quality control, and regulatory compliance. 
  • Partnering with educational institutions: The industry is partnering with educational institutions to offer courses in pharmaceutical science and technology. For example, the Indian Pharmaceutical Alliance (IPA) has partnered with the National Institute of Pharmaceutical Education and Research (NIPER) to offer a diploma in pharmaceutical technology.
  • Promoting apprenticeships: The industry is promoting apprenticeships as a way to train workers in the pharmaceutical industry. For example, the Department of Pharmaceuticals (DoP) has launched the Apprenticeship Training Scheme for the Pharmaceutical Industry. Under the scheme, apprentices are paid a stipend and receive on-the-job training from experienced professionals.
  • Offering scholarships and grants: The industry is offering scholarships and grants to students studying pharmaceutical science and technology. For example, the IPA has launched the IPA Scholarship Scheme for Women in Pharmaceutical Sciences. The scheme provides scholarships to female students studying pharmaceutical sciences at the undergraduate and postgraduate levels.
  • Emphasizing on continuous learning: The industry is emphasizing on continuous learning for its employees. For example, several pharmaceutical companies offer their employees training programs and workshops on new technologies and regulations. 

Industry needs to work more closely with the government: 

The Indian pharmaceutical industry needs to work more closely with the government to address the shortage of skilled workers. The areas could possibly include:

  • Increasing the number of training institutes
  • Providing financial assistance to students studying pharmaceutical sciences
  • Relaxing the eligibility criteria for apprenticeships
  • Recognizing the skills of workers trained in other countries 

Where the government should take greater initiatives:

These areas may include the following:

  • Funding training programs
  • Partnering with educational institutions
  • Promoting apprenticeships

Conclusion: 

The shortage of skilled workers is a major challenge for the pharmaceutical industry. However, the industry is taking steps to address the challenge. There isn’t an iota of doubt in the contemporary pharma business environment that rebalancing the skill sets required, especially for employees in pharma sales and marketing, is more imperative today than ever before. Thus, it is important for the industry to continue to take steps to bridge the skill gap by addressing the shortage of its skilled workforce. This is essential today to maintain India’s position in the global market, at least as the reliable pharmacy of the world.

By: Tapan J. Ray

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

 

 

Drug Prescription In Generic Names Only, No Branded Generics

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The World Bank Report released on April 07, 2023 highlights that patients’ Out-of-Pocket (OoP) expenses as a percentage of their total healthcare expenditure in India still accounted for as high as 50.59%. This means that patients in India generally pay for the majority of their healthcare costs themselves, rather than through insurance or government funding. The high level of OoP expenses in India has been a major problem for many patients, even today. Studies indicate it often leads to financial hardship, especially for low-income families.

A number of factors contribute to the high level of OoP in the country, as a whole, with regional variations. According to several studies, the healthcare costs in India are rising faster than inflation, making it increasingly difficult for more people to afford the care they need, especially for life threatening ailments, such as cancer.

Different union governments while in power have taken several steps to address this problem, such as, in 2018, the launch of the Pradhan Mantri Jan Arogya Yojana (PMJAY), a national health insurance scheme. It provides free coverage for poor and vulnerable families. The PMJAY is expected to have helped in reducing OoP for some patients, but it is not yet clear how much of an impact it has had overall.

On April 24, 2017, I asked on this blog – would drug ‘Prescriptions in Generic Names Be Made A Must in India?’. Interestingly, in August 2023, a new circular from the National Medical Commission (NMC) notified professional conduct regulations for Registered Medical Practitioners (RMP), including guidance to doctors on drug prescriptions.  This has raised a furor, as it were, among many medical practitioners and their associations. In this article, I shall deliberate on the pros and cons of this decision and its practicality in India. Let me start with the rationale behind such thinking, as I see it.

The rationales behind drug prescription only in generic names in India:

As I see it, there are several rationales behind doctors prescribing drugs only under generic names in India. Here are some of the most important ones:

  • Cost savings: Generic drugs are typically much cheaper than brand-name drugs. This is because generic drugs do not have to go through the same expensive clinical trials and marketing campaigns as brand-name drugs. As a result, they can be sold at a much lower price. This can save patients a significant amount of money, especially for expensive medications. 
  • Increased access to medicines: The lower cost of generic drugs can make them more accessible to people who might not otherwise be able to afford them. This is especially important in India, where a large proportion of the population lives below access, the poverty line. Generic drugs can help to ensure that everyone has access to the medicines they need. 
  • Improved competition: The availability of generic drugs can lead to increased competition in the pharmaceutical market. This can drive down prices even further and benefit patients.
  • Reduced risk of counterfeit drugs: Generic drugs are regulated by the government and must meet the same quality standards as brand-name drugs. This means that patients can be confident that they are getting a safe and effective product, regardless of whether it is a generic or brand-name drug. Counterfeit drugs, on the other hand, are often made with substandard ingredients and can be dangerous to take. By prescribing generic drugs, doctors can help to reduce the risk of patients getting counterfeit drugs. 
  • Transparency and accountability: In addition to these benefits, prescribing drugs under generic names can also help to promote transparency and accountability in the pharmaceutical industry. When doctors prescribe drugs under generic names, it is easier for patients to compare prices and choose the best option for their needs. This can help to drive down prices and improve the quality of care. 

A draft regulation was notified in 2022 for comments by all concerned:

For this purpose, a draft regulation was issued by the National Medical Commission (NMC) on May 23, 2022, for comments by all concerned, before it becomes mandatory in 2023. The NMC has also stated that it will take steps to ensure that the quality of generic drugs is maintained. The NMC will work with the Drug Controller General of India (DCGI) to ensure that generic drugs meet the required quality standards.

The final notification goes beyond drug prescription in generic names:

On August 03, 2023, The National Medical Commission (NMC) notified the professional conduct regulation for Registered Medical Practitioners (RMP). It not only provides guidance to avoid branded generic drugs and prescribing drugs with generic, non-proprietary and pharmacological names only, but also, restricts doctors from getting involved in any third-party educational activity like Continuing Professional Development, seminar, workshop, symposia, conference, etc., which involves direct or indirect sponsorships from pharmaceutical companies or the allied health sector. 

It justified its decision by saying, “India’s out-of-pocket spending on medication accounts for a major proportion of public spending on health care. Further, generic medicines are 30% to 80% cheaper than branded drugs. Hence, prescribing generic medicines may overtly bring down health care costs and improve access to quality care.” The notification also provided guidance on telemedicine consultation and prescriptions.  

The Indian Medical Association (IMA) Protested against it:

The Indian Medical Association (IMA) submitted a memorandum to the Indian regulator, the National Medical Commission (NMC), on February 7, 2023, protesting against the compulsory prescription of generic drugs. The memorandum argued that the regulations would harm patients and doctors, and that they were being implemented without proper consultation with stakeholders.

The IMA also stated that the regulations would violate the fundamental right to freedom of speech and expression of doctors. The memorandum said that doctors should be free to prescribe drugs based on their medical judgment, and that they should not be forced to prescribe generic drugs.

The IMA’s protest is significant because it is the first major challenge to the NMC’s regulations on compulsory prescription of generic drugs. The protest could have a significant impact on the implementation of the regulations, and it could also lead to changes in the regulations.

It is important to note that the IMA is not the only organization that has expressed concerns about the NMC’s regulations. Several other medical associations have also expressed concerns, and some doctors have also spoken out against the regulations.

The controversy over the NMC’s regulations is likely to continue for some time. It is important to note that there are valid concerns on both sides of the issue. It is also important to remember that the regulations are still in the early stages of implementation, and that it is too early to say what their long-term impact will be.

A few reasons why doctors in India may be hesitant to prescribe drugs under generic names. 

Here are some of the most common reasons:

  • Lack of awareness: Some doctors may not be aware of the benefits of generic drugs. They may believe that brand-name drugs are always better than generic drugs, even though this is not always the case. 
  • Influence from pharmaceutical companies: Pharmaceutical companies often give doctors incentives to prescribe their brand-name drugs. This can create a conflict of interest for doctors, who may be more likely to prescribe brand-name drugs even if they believe that generic drugs are just as effective.
  • Patient demand: Some patients may specifically ask for brand-name drugs, even if generic drugs are available. This can put pressure on doctors to prescribe brand-name drugs, even if they believe that generic drugs are a better option.
  • Quality concerns: There have been some cases of counterfeit generic drugs being sold in India. This can lead to doctors being hesitant to prescribe generic drugs, as they may be concerned about the quality of the drugs.

Some ways to encourage doctors to prescribe generic drugs:

  • Educate doctors about the benefits of generic drugs. Doctors need to be aware of the benefits of generic drugs in order to be willing to prescribe them. They should be taught about the cost savings, increased access, and improved quality of generic drugs.
  • Reduce the influence of pharmaceutical companies on doctors. Pharmaceutical companies should not be allowed to give doctors incentives to prescribe their brand-name drugs. This would help to ensure that doctors are prescribing drugs based on the best interests of their patients, rather than on financial considerations. 
  • Encourage patients to ask for generic drugs. Patients should be aware of the benefits of generic drugs and should ask their doctors to prescribe them whenever possible. This will help to create a demand for generic drugs and encourage doctors to prescribe them. 
  • Improve the quality control of generic drugs. The government should take steps to improve the quality control of generic drugs in India. This would help to reduce the risk of patients getting counterfeit drugs. 

By taking these steps, we can encourage doctors to prescribe generic drugs and make them more accessible to patients. This would help to save patients money, improve access to medicines, and reduce the number of counterfeit drugs in circulation.

Conclusion:

I now revert to this month’s notification of the National Medical Commission (NMC) on the professional conduct regulation for Registered Medical Practitioners (RMP), providing  new guidance for drug prescriptions in India. It clearly indicates that doctors should avoid prescribing branded generic drugs, instead prescribe drugs with generic, non-proprietary and pharmacological names only. ‘However, in the case of drugs with a narrow therapeutic index, biosimilars, and similar other exceptional cases, the practice of prescribing generic names only, can be relaxed,’ it elaborated.

Weighing the pros and cons of this notification, I reckon, despite the reasons articulated by doctors and their associations, besides the branded generic manufacturers, there are many benefits to prescribing drugs under generic names only. Generic drugs are typically much cheaper than brand-name drugs, and they are just as effective. They can also help to reduce the number of counterfeit drugs in circulation, besides several other benefits, as cited above. As a result, doctors should be encouraged to prescribe generic drugs whenever possible. Let me hasten to add, changing the prescribing practices of doctors and addressing concerns about the quality of generics can be a complex and gradual process.

By: Tapan J. Ray      

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

 

‘Indian Pharma’s Apathy Towards Digital Marketing’ – A Misgiving Or Real?

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As I gather from different sources, an increasing number of Indian pharma companies are increasingly embracing digitalization in their marketing operations, especially after the crippling experience during the Covid lockdown period. They realize the use of digital platforms would be a great enabler for them to reach a wider audience, promote their products, and engage with healthcare professionals more effectively, in any given situation. The depth, span, and speed of adaptation of this initiative is fast gathering momentum in the capable hands of astute marketers.

In this article, I shall explore this area to ferret out the fact, whether ‘The Indian pharma industry’s apathy towards Digital Marketing’ is a misgiving or still a reality. However, I would start with an important note about getting caught in some possible controversies due to occasional overenthusiasm in this space. 

Some possible reasons for a brouhaha or controversy:

There may be several reasons why a brouhaha or controversy could continue surrounding the use of digitalization in Indian pharma companies’ marketing operations. Some possible factors include:

  • Compliance and Regulatory Issues: Digital marketing practices must ensure full compliance with regulations set by regulatory bodies, such as the Drug Controller General of India (DCGI) and the Medical Council of India (MCI). Any violation of these regulations can lead to legal consequences and damage the reputation of the companies involved.
  • Misinformation, data Integrity and Misleading Claims: The widespread use of digital platforms can make it easier for misleading, breach of data integrity and false claims to be disseminated. Regulators and critics may raise concerns about the accuracy of information being shared and the potential impact on patient health. 
  • Privacy, cyberthreats and Data Security: The use of digital platforms involves the collection and storage of user data. Privacy concerns, including cyberthreats, can arise if pharmaceutical companies do not handle personal information responsibly or if patient data is compromised due to inadequate security measures. 
  • Unethical Practices: There have been instances where pharmaceutical companies have been accused of engaging in unethical practices in their marketing efforts. These may include off-label promotion (promoting a drug for an unapproved use), undue influence on healthcare professionals, or aggressive marketing tactics that prioritize sales over patient welfare. 

It is important to recognize that the specific reasons for the ongoing brouhaha on this topic may have further evolved. From this perspective, let me now focus on a few Indian examples where using digital tools and analytics could offer several advantages for domestic pharmaceutical companies, as available from different sources.  

Examples of some areas where Indian players are using digital tools:

Here are some recent examples of how Indian pharmaceutical companies have utilized digital tools and analytics in their marketing operations, as available in the public domain:

  • Enhanced Targeting: Aurobindo Pharma Limited has implemented data analytics to identify key customer segments for targeted marketing. By analyzing prescribing patterns and patient demographics, they tailor their marketing efforts to reach specific healthcare professionals and patient groups more effectively. 
  • Personalized Marketing: Biocon Limited has embraced digital tools to deliver personalized marketing content. Through their digital platforms, such as websites and mobile applications, they provide customized information about their products, disease education materials, and patient support resources.
  • Improved Marketing ROI: Lupin Limited has utilized digital analytics to measure the performance of their marketing campaigns. By tracking key metrics, such as website engagement, social media interactions, and email response rates, they can optimize their marketing spend and allocate resources to channels that yield higher returns. 
  • Efficient Resource Allocation: Sun Pharmaceutical Industries Ltd has leveraged digital tools and analytics to optimize resource allocation. They analyze market data and customer behavior to identify regions and healthcare facilities with the highest growth potential, enabling them to allocate their sales resources strategically.
  • Real-time Market Insights: Dr. Reddy’s Laboratories Ltd utilizes digital tools and analytics to monitor real-time market insights. By leveraging social listening tools and data analytics platforms, they stay updated on market trends, competitor activities, and customer feedback, enabling them to adapt their marketing strategies accordingly.
  • Improved Customer Engagement: Cipla Ltd has focused on improving customer engagement through digital channels. They utilize social media platforms, online forums, and chatbots to interact with healthcare professionals and patients, providing information, answering queries, and offering support. 
  • Streamlined Communication: Torrent Pharmaceuticals Ltd has implemented digital communication tools to streamline interactions with healthcare professionals. They utilize virtual meeting platforms, webinars, and online training sessions to engage with physicians, pharmacists, and other stakeholders more efficiently, eliminating geographical barriers.
  • Data-driven Decision Making: Glenmark Pharmaceuticals Limited leverages data analytics for data-driven decision making. By analyzing sales data, market trends, and customer feedback, they gain insights that inform their strategic decisions regarding product launches, marketing campaigns, and market expansion. 

These examples demonstrate how Indian pharmaceutical companies have harnessed digital tools and analytics while recomposing notes in a pharma marketing playbook to enhance their business operations. However, please note that specific initiatives and strategies are still evolving, and the extent of adoption may vary among different companies. 

Conclusion:

From the above perspective, I reckon, Indian drug companies are increasingly embracing digital toolsand analytics to enhance their marketing efforts. With the advancement of technology and the growing importance of digital channels, pharmaceutical players in India are recognizing the need to adapt and leverage digital tools to stay competitive and effectively reach their target audience. Hence, any feeling about the ‘Indian pharma industry’s apathy towards Digital Marketing’ seems to be a misgiving to me.

By: Tapan J. Ray      

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

Accelerating Footfalls In Less Charted Pharma Marketing Frontiers

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Having experienced unprecedented disruptions, especially in the pharmaceutical and biopharmaceutical business, many global and local drug majors, are rethinking their marketing strategies. These have, no doubt, been prompted by the challenges of change, which are sometimes stark, but more often than not - nuanced.

Many of them are now, therefore, charting into less charted or even uncharted frontiers of pharma marketing warfare. Most companies had no choice, though, but to embrace new approaches, at least as a stopgap, to reach their target audience – hoping to revert to pre-pandemic practices, ultimately.

Interestingly, some pharma majors could envisage that long-term focus on many of these new and innovative areas – more effectively than even the pandemic lockdown time, could be a game-changer in the business. Accordingly, they tried to adapt, several of these approaches, quickly and effectively – for sustained excellence in the post-COVID paradigm.

In this article, I shall focus with several global and local, publicly available examples, of innovative pharma marketing approaches that are now being tried by several top drug companies in the post-COVID period.

I. Continuation of pandemic induced innovative approaches – global examples: 

  • Virtual Conferences and Events: Experiencing success with virtual events and conferences during the COVID-19 pandemic, many pharma companies are leveraging this digital space to reach out to healthcare professionals and patients. These events now include webinars, selected virtual conferences, and online workshops.

Pfizer, reportedly, held its first virtual investor day in September 2020, which was attended by thousands of participants from around the world. The company also organized several virtual events to educate healthcare professionals about its vaccine.

  • Social Media Marketing: The use of social media marketing is also increasing in the pharmaceutical industry. Companies are using platforms such as Facebook, Twitter, and LinkedIn to reach out to their customers and engage with them on a regular basis to build long-term relationships.

For example, Novartis, among a few others, is using social media to promote core values of its products and engage with customers. The company has built a strong presence on social media platforms where it shares news and updates about its products and research, as well.

  • Influencer Marketing: Many companies are partnering with influencers in the healthcare industry to promote their products. These influencers can be doctors, nurses, patient advocates, or even celebrities who are passionate about health and wellness. Influencer marketing can help companies reach a wider audience and build trust with their customers.

The French pharma major – Sanofi, has partnered with celebrity chef and diabetes advocate Charles Mattocks who was diagnosed with type 2 diabetes in 2011. The objective is to raise awareness about diabetes and promote the company’s diabetes products through social media and other channels.

  • Patient Education Programs: Companies are investing more on patient education programs to educate patients about their health conditions and treatment options. These programs can include online resources, mobile apps, and support groups. By providing patients with accurate and reliable information, companies can improve patient outcomes and build brand loyalty.

Merck, another global player, developed an online resource called MerckEngage to educate patients about their health conditions and treatment options. The platform provides patients with information about various health topics, including diabetes, cancer, and heart disease.

II. Continuation of pandemic induced innovative approaches – Indian examples: 

Some Indian pharma players are also not far behind in several innovative areas for business excellence in the post pandemic paradigm. Following are some of those examples from Indian pharma companies, as available in the public domains. These seem to have attracted greater focus in the pandemic period, and are continuing even today, with undiluted focus:

Virtual Conferences and Events: Illustratively, Lupin has been using virtual events to promote its products in the post-COVID period. The company is organizing virtual conferences and webinars to reach out to healthcare professionals and other customers. Similarly, Sun Pharma launched a virtual conference for healthcare professionals to discuss the latest developments in the field of dermatology.

Digital and Social Media Marketing:  Several Indian pharma companies are increasingly adopting digital marketing “strategies to reach out to their customers. Companies are using social media, online ads, email marketing, and other digital channels to promote their products and services.

For example, Dr. Reddy’s Laboratories continue using social media platforms like LinkedIn, Twitter, and Facebook to engage with healthcare professionals and consumers. Even, Cadila Healthcare, reportedly, has been using search engine optimization (SEO), pay-per-click (PPC) advertising, and social media marketing to reach out to its customers.

Telemedicine: With the rise of telemedicine during the pandemic, pharma companies are partnering with Telehealth/Telemedicine platforms to reach out to patients. Companies like Cipla have partnered with telemedicine platforms to offer online consultations and delivery of medicines to patients’ doorsteps. Sun Pharma has also been using telemedicine to reach out to its customers and has partnered with telemedicine providers to offer its products to patients who cannot visit a doctor in person.

  • Direct-to-Consumer (DTC) advertising: DTC advertising is gaining popularity among Indian pharma companies. With the rise of online pharmacies, companies like Abbott and Pfizer are launching DTC campaigns to increase disease and treatment awareness programs directly to consumers.
  • Collaborations and partnerships: Indian pharma companies are increasingly collaborating with other players in the healthcare ecosystem to provide integrated solutions. For example, as mentioned above, Lupin has partnered with a health-tech firm to offer a platform for online consultations and home delivery of medicines.
  • Greater patient-centric approaches: Some Indian pharma companies are adopting more patient-centric approaches for more effective omnichannel patient engagement initiatives. For example, Dr. Reddy’s Laboratories have launched an initiative to educate patients on the proper use of medicines and the importance of adherence to treatment.

As the industry continues to evolve, we can expect to see more companies adopting newer and more innovative marketing strategies to engage with their customers.

Summary:

Many of the above examples are pandemic triggered innovative approaches to keep the neck above water during unprecedented business disruptions in the pharma industry. Interestingly, some companies are not just continuing but further sharpening these initiatives in the post pandemic days. Moreover, it’s good to note that these are now being implemented by the concerned sales and marketing teams with greater gusto and zeal.

The point to ponder, therefore, is pharma industry ready now to excel amid start and more often nuanced – the challenge of change? To respond to these challenges effectively, more companies now need to seriously evaluate and consider adapting such strategic footsteps, first as pilot studies and then gradually scale up, for business excellence in the contemporary period.

Let me hasten to add, in this ball game pharma leadership mindset change to act decisively, after accurately studying – based on data-science, to ascertain where and how to change could well be a win-lose situation. However, the good news is, recent data vindicate the accelerating footfalls in many these less or even un- charted pharma marketing frontiers, both globally and locally.

By: Tapan J. Ray        

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

Effective Change Management – The Magic Wand For Business Success And Sustainability

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Change – just as it’s an integral part of our life, so is for any business, including pharmaceutical or healthcare. Interestingly, the phase of transition of such changes isn’t always slow and gradual. In many cases, especially for business, or for a lifestyle too, these transitions could also be faster and disruptive.

The speed of many such changes is now driven by rapidly evolving technology. Or these could often be triggered by some unanticipated event, like the Covid-19 pandemic that we all experienced, very recently. Such changes may impact people working in different functions, in different ways. Which is why, organizations need to be all-time ready, with a robust process in place – known as Change Management.

In this article, I shall focus on the relevance of putting in place a well-validated system driven Change Management process within, especially, the Indian pharmaceutical organizations. Let me start with my understanding on what is the Change Management, so that all of us be on the same page in this regard. 

To be on the same page on what is Change Management:

There are several definitions of the change management process expressed differently, but it’s core concept remains unchanged. One such illustration comes from The TechTarget network. It says:“Change management is a systematic approach to dealing with the transition or transformation of an organization’s goals, processes, or technologies. The purpose of change management is to implement strategies for effecting change, controlling change, and helping people to adapt to change.”

Why many pharma majors are considering it now, more than ever before:

Being amid a technological revolution, encompassing almost all aspects of life and then in the post-pandemic area, change is being expected as a way of life and business, more than ever in the past. Although pharma industry a late learner - and is also traditionally late to change – these can’t be now pushed to the back burner, any longer, as was happening in the pre-pandemic era.

‘Change Management’ can’t be pushed to the back burner, any longer:

This process has now attracted a sense of urgency for many pharma players, as we read and look around. Several big companies have already started addressing the leadership challenges to manage and leverage the evolving changes, as I wrote in my article of October 3, 2022, in this blog.

To be in sync with both customers and employee expectations on an ongoing basis, the change management process in an organization has assumed a priority. User friendly state of the art technology is facilitating to effectively address the growing intricacies of today’s field staff role by infusing leadership mindset change in the organizational culture. Emphasizing this point in my article on July 19, 2021, I underscored that such change should necessarily reflect the company’s vision for the future, unambiguously.

Most companies have changed over a period of time in varying degree:

Most companies have changed over a period of time. Nonetheless, today’s need, pace and the process of change demand a data science based customized approach. The good news is several pharma majors have also started feeling that they require not just to change with time, but also need to put more data science based cerebral input to fathom why and how it changed to be more effective in the future.

An insightful understanding is essential to put in place and kick start a right change management process. To give a sense of it, let me cite a contemporary example of one of the successful global pharma majors – GSK. This case study was prepared by the Project Management Institute.

Achievement of a key milestone could make all the difference:

When GSK initiated this process in 2009, the organization realized that an important milestone in the implementation of the company’s change initiative must be to gain the trust and belief of leadership—many of whom were neutral or cynical about it.

To achieve this goal a custom made ‘Accelerating Delivery and Performance (ADP) program; was found to be quite effective for the company. It delivered both hard business benefits as well as softer organizational development benefits. This approach allowed the team to gain the attention of those leaders who wanted both.

Five principles formed the bedrock of the ADP approach:

The following ADP principles are time-tested, contemporary, and several of these were practiced by GSK in their change management process when it started in 2009.

  • Changes should begin with the initiator of change and focusing on greater customer satisfaction.
  • Active support of all stakeholders in the process of change is critical.
  • Include all staff who will be impacted by the change – while defining, explaining, and ensuring accountability and continuously measuring the time bound shared goals, especially the business and financial ones.
  • Make sure they all share ownership for the outcome of change, through seamless teamwork.
  • Make a pilot study before pan organization implementation.

The change management process continues:

That the change management process needs to be ongoing even for successful drug majors – such as GSK, is particularly evident from their Press Release on June 23, 2021.

The communique giving details of the organization’s strategic and other transformation pathways, also highlighted, “New GSK to deliver step-change in growth and performance over the next ten years driven by high-quality Vaccines and Specialty Medicines portfolio and late-stage pipeline.” 

Specific areas of change, as the pandemic wanes:

There are several studies in this area, such as the one published in the Growth Faculty Learn, published on February 07, 2023. Let me paraphrase its summary as follows:

  • Although the pace of change in different businesses may vary but will certainly keep changing. The leaders should, therefore, act proactively to lead their teams through a well validated change management process to gain a competitive edge.
  • Full preparedness for the change and garnering change management skills before the process begins are critical.
  • Advance planning for employee wellbeing, well structured individual and collective communication strategy, deciding on specifics of a hybrid work culture – all based on data-science, are of great importance.
  • To ensure the effectiveness of the change management process a positive workplace environment is a must, which will stand on five pillars - Trustworthiness, Empathy, Genuineness, Self-awareness, and a Learning mindset.

Thus, it’s high time for all to realize that the pharma business ball game is now changing fast for all, creating an urgent need to focus on the critical areas of change.

Conclusion:

It now boils down to an important point, which was also echoed in an article on this area published in the Pharma IQ on November 23, 2022. It underscored just as any living being keeps moving on the pathway of change, pharma and healthcare industry should proactively follow a similar path.

External environmental factors would play a catalytic role to accelerate the speed of change. These include fast evolving consumer friendly digital applications and health apps - newer, better, and more targeted drugs and treatment processes, or even unprecedented disruptions of lives and livelihoods, just what we all have recently experienced.

A study published in the Pharma Marketing Network on October 27, 2021, also reiterated that the main goal of any change management approach is to foster support of all concerned that leads to good outcomes within an organization. It found that an effective way to implement a change is by engaging and inspiring employees to adopt new (and improved) ways of working.

Against the above backdrop, putting a structured change management process in place by Indian pharma players, I reckon, is now essential. This approach seems to be a Magic Wand, as it were, for ongoing business success and sustainability in today’s rapidly evolving paradigm.

By: Tapan J. Ray       

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

 

Keep Pace with Pharma’s Even Nuanced Technology Driven Changes – For Success

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Since 2020, unprecedented global disruptions affecting lives, livelihoods, and business, have impacted India in equal measure, if not more – across various areas, including the pharma industry. If there is one change that is creating a snowballing effect, is the rate of progress and use of technology in its operations.

Consequently, finding properly trained people, to drive the new avatar of technology driven today’s business – right from R&D, supply chain, manufacturing, sales and marketing, customer behavior, market dynamics – poses a facet of ongoing challenges.

This is primarily because, some key business-success requirements have now significantly changed, but many are still nuanced that one may tend to possibly ignore. Thus, early identification of these and placing properly skilled – right people in the right job, who can floor the gas pedal in search of excellence, assume two key priorities for the pharma players, more than ever before.

Most companies, as I understand, are finding this task quite time consuming, if not arduous. The options are basically two. The first one – spot, search and hire the best talent from outside the organization. And the second – spot the internal talents, hone their skills, handhold them for some time on the job, before they take charge and assume accountability for achieving the set goals. In this article, I shall focus on the relevance, criticality, and associated intricacies that pharma leadership may encounter in this process.

Intense focus on the drug industry in last two years – blessings and burden:

A recent research study on Talent Trends For Life Sciences Organizations, published by Randstad Sourceright on July 22, 2022, came out with some interesting findings in this area. The key ones are as below:

  • In the past couple of years, the intense global focus on Life Sciences Industries brings both blessings and burden on the industry.
  • Key drug manufacturers received unprecedented levels of financial and regulatory support for the development of therapies and vaccines for the treatment and prevention of Covid-19 onslaught on the people across the world.
  • In tandem, the drug industry had to withstand tremendous pressures and intense scrutiny to achieve this task by re-prioritizing their R&D focus, which no drug manufacturer had experienced ever before.

Alongside, pharma customer characteristics and behavior also started changing fast in many areas, and consequently the market dynamics. Many of these changes are still nuanced and are driven by contemporary technology. Amid lesser concern for Covid-pandemic, the ongoing metamorphosis in the world of work – impacting almost all functional areas of a customer-driven organization, poses a fresh pharma leadership challenge.

Thus, for future business success, pharma companies now need to capture relevant real-time data, and analyze them to gain in-depth insight of these changes. Consequently, it is important to figure out how much the quality of talent requirement has changed for an organization, to continue to remain as patient centric. However, before doing that, it’s worth figuring out what kept the wheels of pharma businesses moving during the years of the recent pandemic.

What kept the wheels of business moving during the pandemic:

Several important studies have made dip-stick assessment in this space. One such recent study findings of Randstad Sourceright highlighted the following three, among others, as the key success factors for employee motivation in trying times, which kept the wheels of business moving:

  • Empathy of the leadership,
  • Flexibility in work life
  • Ingenuity of employees to quickly adapt to the new normal

Some of these, or all, may linger in the minds of many employees. They may still long for empathy at work and flexibility in the workplace, to unleash their full potential for organizational success. Otherwise, they may look outside, especially to those companies who can meet their expectations, in the new normal.

In this situation, fostering EQ within the organization to encourage employees committing to the corporate shared goal, is a key requirement for pharma’s performance excellence. The bottom-line is,how well an organization continues to nurture and retain or attract new talents, besides honing their skills in line with the changing customer value delivery process, would be critical.

Need to identify even nuanced changes in workplaces:

Thus, before making a dip-stick assessment to ascertain the changes in organizational talent requirements, it is worth getting a sense from the available studies what’s going on today in the industry.

Like many other countries, the pandemic is no longer an unsettling unease for most pharma organizations in India. At the same time, studies reiterate that it’s for sure that the pandemic related disruptions have ushered-in visible or nuanced transformations, especially in the operational areas of the life sciences business.

Some recent studies, such as, one done by McKinsey & Company on – Creating the workforce of the future, made a notable observation. It emphasized, “Pharma companies struggle to predict where they will see the talent gaps, these disruptions create, though a majority monitor key trends and track talent needs. Only a minority of companies (40 percent) believe that they really know which skills are needed now, let alone in ten years (less than 25 percent).”

Which is why, I reckon, it is now critical for the Indian pharma leadership to identify, analyze and address, both perceptible and nuanced transformation within their customers, employees, and other stakeholders. And then zero-in on changing talent requirements of employees in key operational areas, including sales and marketing – to gain a competitive edge in the marketplace.

However, it is worth remembering that the supply of quality talent remains limited, although it is essential to catapult the business in a higher growth trajectory. Besides, gradually changing employee expectations in the workplace culture – work-flexibility could emerge as another sought after factor to attract new talents from the millennials. 

The ways to move forward in this area:

Many companies may decide to hire new talents from outside the company, whereas some may look for developing people internally, through well-structured internal human development initiatives. However, the research study of Randstad Sourceright finds: ‘67% of life science and pharma leaders believe reskilling and upskilling employees for different roles is an effective way to address talent scarcity. Additionally, 63% say they already invest in internal mobility platforms to augment their recruiting efforts, while 53% plan to increase their investments in this area.’

Further McKinsey & Company in their above-mentioned article also suggested: ‘Reskilling employees to address talent gaps can help a company retain the bulk of its operations workers and empower them to take advantage of a new world.’ So did another article on building pharma talent of tomorrow, published in the Pharma Executive on October 05, 2022. It emphasized that training current employees who already know the business, and are familiar with the inner workings, would expectedly take much less time to deliver that is expected of them.

I also understand, a few large Indian pharma majors are also focusing on internal talent development as one of the key organizational development initiatives. They are identifying internal talents in an organized manner, up-skill them to shoulder new responsibilities – following a well-charted career path for each one of them. It’s important for the leadership to demonstrate and make these employees also feel that they are of great value to the organization.

From the above perspective, I reckon, in today’s environment when many employees are eager to search for a greener pasture that suits them better, the above approach also provides an opportunity for pharma employers. This opportunity is primarily to retain talents, by incentivizing them with learning, and development process, besides a chance for career progress in the company.

Conclusion:

One thing for sure is critical to ensure that right talents are always placed in the right job. This is crucial to keep pace with not just significant transformations. But even for emerging and nuanced technology driven changes in customer characteristics, behavior, and market dynamics. Thereafter, each organization will need to identify available in-house talents for upskilling, honing and development. Whereas some fresh new talents may necessarily be required to hire from outside or outsourced.

Several recent studies have also indicated that the best strategy in this regard, is the optimal combination of hiring from outside or outsourcing the new requirements, alongside internal talent development initiatives, and charting a career path for them. To chart on this emerging frontier calls for a mindset change. Thus, it is important for us to remember that only permanent factor in the pharma business is – change. Can one ignore it? Of course, but at one’s own peril, because in the long run “What You Do is Who You Are” in the future pharma business.

By: Tapan J. Ray      

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

 

Leveraging Data Science To Deliver Unique Patient-experience

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“Changes in consumer behavior, many of which were accelerated by the COVID-19 pandemic, are fueling a redesign of the health ecosystem.” This finding was revealed by a recent study of the PwC’s Health Research Institute (HRI). The research provided insights about how and why specific groups of consumers used health services during the pandemic – from mental health and telehealth to in-home care and other non-traditional care sites.

The study also captured ‘their willingness to use them again in the future,’ and suggested, those pharma companies that closely monitor these consumer signals and design, accordingly, will likely emerge as more customer centric, as the pandemic wanes.

From this perspective, effective application of data science for creating a unique patient experience by listening to patient voice, is now an imperative for pharma players. Which is why, this approach is nowa key business success ingredient in the changing paradigm. It helps offering a holistic disease treatment solution to patients searching for an effective and affordable disease treatment process.

This article will, therefore, focus on leveraging data science for strategic use of Real-World Evidence (RWE) based on Real World Data (RWD) – on how customer characteristics and behavior impact health outcomes. This initiative is fast becoming a key driver to excel in contemporary pharma business.

Strategic use of RWD/RWE increasing in pharma marketing plans:

RWE, as the name suggests, is the evidence derived from RWD. These are collected outside of clinical trials from various sources, such as, patients and HCP surveys on treatment outcomes, electronic health records wherever available, Wearable Health Devices (WHD), insurance claims, data from connected healthcare records, custom study and many others.

The McKinsey & Company article in this area, published on July 23, 2020, also indicated so. Although, some leading pharma companies have already been using RWE. However, recent progress in digital and advanced analytics allows it to be employed in new ways to deliver impact at scale, the article highlighted. When used by hands-on- professionals of repute in this area, RWE can help pharma marketers understand how patient characteristics and behaviors affect health outcomes.

The research paper on how Biopharmaceutical companies are embedding real-world data and evidence use across the enterprise, published in Deloitte Insights on September 21, 2022, presented an interesting contemporary example. It wrote: ‘During the COVID-19 pandemic, RWD/E played a key role in enabling Biopharma companies to innovate and bring novel vaccines and therapies against this highly contagious disease to market in record time.’id-19,

The approach gained momentum during the Covid-19 pandemic:

The above research study of Deloitte brought out this fact succinctly. It found; unprecedented challenge posed by COVID-19 pandemic prompted several drug companies to leverage RWD/E to innovate faster than ever before. More than half of the companies surveyed by Deloitte used RWD/E to understand the incidence and severity of COVID-19 and its variants for vaccine and drug development.’

The survey found: ‘Many vaccine developers, such as Johnson & Johnson analyzed RWD to predict COVID-19 hotspots across geographies to optimize site selection and collect data from diverse racial and ethnic groups.’ Besides, RWE also played a critical role for these companies in understanding vaccine effectiveness across demographics such as age, gender, race, and ethnicity and determining the need for boosters.

Improves patient experience for business excellence:

A systematic and ongoing tracking and analysis of well-identified RWD, by pharma marketing analytics professionals, can help in-depth understanding of changing pharma customer characteristics and behavior, more precisely. Such initiatives include patients, HCPs, hospitals and even the policy makers. Several drug majors have adopted this practice, immediately after absorbing the initial shock of unprecedented disruptions during the Covid-19 pandemic.

Similarly, RWD can help map the exact available space for demand where a brand is being used and potential competitive value-space for its further demand extension – based on real time customer behavior with changing characteristics. To shape customer journeys, such findings may immensely help while strategizing for more targeted content delivery, with sharper segmentation and brand positioning.

Therefore, finding such gaps in various areas of patients’ journey – in their search for an effective and affordable treatment, and appropriately filling these up with brand value delivery is critical. This will help improve patient experience manifold, accelerating business excellence, in tandem.

A recent paper titled, ‘Maximizing your role as a newly appointed real-world evidence leader,’ published by the ZS on March 23, 2022, made similar observations, as above. The study reiterated that patient-generated insights obtained through RWE, are uniquely capable of adding value at different stages of a pharma brand’s life cycle. Or, throughout a patient’s journey on the care pathway of the value delivery system. It concluded: “Carrying out a successful RWE study is a fine balancing act – but its inconveniences and risks are almost certain to be outweighed by the eventual benefits.”

Increasingly used to gain actionable insights to improve patient experience:

In the contemporary market dynamics – driven by changing customer characteristics and behavior, several pharma companies are now effectively combining and analyzing RWD to retrieve RWE. The objective is to gain actionable insights for effective customer engagement for better patient outcomes, to drive business growth. According to a recent podcast by PwC on using data to shape customer journey, the process includes the following:

  • Focusing on the value and outcomes of treatment protocols and less about specific products.
  • Gaining a better understanding of pharma customers and what drives their behavior.
  • Reaching beyond the barrier in driving differentiation amongst competitors.

Conclusion:   

The Forbes article on the Data Science trend in 2022, published on October 04, 2021, aptly epitomized its relevance in today’s business, including pharma industry. It articulated, data science encompasses the practical application of ideas generated by credible and meaningful data from various relevant sources, predictive analytics, and artificial intelligence. Our ability to use such data to our advantage across wide areas in business, would help deliver increasingly worthwhile, valuable, and enjoyable patient experience. 

The article also underscored: ‘If data is the oil of the information age and Machine Learning (ML) is the engine, then data science is the digital domain’s equivalent of the laws of physics that cause combustion to occur and pistons to move.’

Thus, I reckon, both intrinsic and extrinsic brand value creation process, driven by its effectiveness, would increasingly call for Real World Evidence (RWE) based on top-quality Real-World Data (RWD). This is increasingly becoming so critical for success – spanning right across, from product development, launch planning with value propositions – to launch and beyond.

The core purpose of leveraging data science in pharma is, as I see it, is effective decision making throughout the brand life cycle, to deliver a unique patient experience in patients’ journey – with better treatment outcomes.

By: Tapan J. Ray      

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

Why Do Drug Companies Now Need More Focus On The 5th “P” Of Marketing?

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Astute marketers understand that over several decades, the much-known phraseology – ‘marketing mix’, has remained the bedrock of marketing a product or a service. The ‘Father of Modern Marketing’ - Philip Kotler defined this terminology as the “the set of controllable variables that the firm can use to influence the buyer’s response.” In this context, the controllable variables are referred to as the 4 ‘P’s - Product, Price, Place and Promotion, which remained the basic focus areas in the brand building strategy of pharma marketers, as well.

With an unprecedented transformative impact within the pharmaceutical and biotech industry during the Covid-19 pandemic – for various reasons, ‘purpose’ is fast slotting itself as the 5th fundamental ‘P’ of the marketing-mix. The changing market - triggered by changing customer dynamics, entails the need to clearly define, to the satisfaction of customers, the”purpose” of a business, brand, or service.

As it is increasingly critical to achieve business excellence in the changing paradigm, in this article I will focus on this area from the point of view of goal-oriented pharmaceutical marketing. Although, I wrote before on the need of creating purpose driven brands, this discourse is with a different perspective.

A classic concept gets a fresh impetus in Covid pandemic:

Peter Drucker, whom the Business Week magazine termed as ‘The Man Who Invented Management,’ in 2005, once wrote: “The aim of marketing is to know and understand the customer, so well the product or service fits him and sells itself… The aim of marketing is to make selling superfluous.” I reckon, this vision epitomizes the core concept of ‘purpose driven marketing.’

Understanding ‘purpose driven marketing’:

In an article, published on February 01, 2021, Ad Council wrote that after 22 years – a recent CEO roundtable deliberation decided to amend the definition of ‘purpose-driven marketing.’  The previous one was centered around ‘maximizing shareholder return.’ Whereas the amended one, in addition to serving shareholders, defined ‘purpose-driven marketing’ as ‘a strategy used by an organization to center its external communication efforts around a social cause that aligns with its core values. The goal of purpose-driven marketing is for an organization to develop a deeper rapport with their consumers by creating authentic connections based on shared values.’

This new statement reflected the changing culture in the days before the Covid-19 pandemic, when many people are more vocal about their expectations and spending. For which, they are even switching brand or service preferences in line with their values.

Covid prompts consumers rediscovering the value the industry delivers:

Covid -19 crisis has driven the positive consumer sentiment way up, as people are rediscovering the value the industry delivers to meet their new reckoning. This was also articulated in a related article. This was published in the Fierce Pharma, on August 13, 2020, as the pandemic overwhelmed the world. The same consumer sentiment also gets reflected in a first of its kind global study - ‘The 2020 Zeno Strength of Purpose Study,’ published on June 17, 2020.

The survey was carried out against the backdrop of the Covid-19 pandemic, covering 8,000 consumers across eight countries - United States, Canada, United Kingdom, France, China, India, Singapore, Malaysia. The findings of the research ‘sheds new light and unequivocal proof that the companies leading with Purpose will prevail.’ Vast majority of the respondents ‘have spoken and stand ready to give their hearts, voices and wallets in support of Purposeful brands.’

Especially, the healthcare consumers are now stepping up to stand for something more than hard facts on the features and benefits of products and services – something very meaningful that can influence positive changes in their minds. When it happens, the companies’, in tandem, will also be positively impacted to significantly improve their bottom-lines.

Some key findings of the study:

After in-depth study over 75 brands, the researchers of the above study found that:

  • 94 percent of the respondents value the companies with a strong sense of purpose and are willing to reciprocate through brand loyalty.
  • They are 4 to 6 times more likely to trust, buy, champion, and protect companies with a strong purpose over weaker ones.
  • Only 37 percent believe today’s companies are reaching their potential on this front

The paper concluded, ‘it has never been more important for companies to not only articulate their Purpose, but to consistently demonstrate that Purpose – how they operate, support issues and engage with all stakeholders.’ As the above Ad Council article articulated, the above findings also ‘mean that purpose-driven marketing can’t be cosmetic. It must be reflected in every aspect of a brand’s business model and culture, or that brand or organization can expect to be called out for hypocrisy – more on that later.’

Who’s driving the ‘purpose driven marketing?’

As I wrote in my previous article, today’s new generations, such as, Millennials - regarded as ‘digital pioneers,’ and Gen Z – the true digital natives, approach their health care in drastically different ways with new sets of expectations. These are quite different from the members of the Silent Generation, Baby Boomers, or Gen X. As the core concept of ‘purpose driven marketing’ is meeting Gen Z’s one such expectation, this population is regarded as the key driver of ‘purpose driven marketing’, in the pandemic-driven changes in the paradigm of the old normal.

I quoted in the above article, ‘Gen Z people are likely to turn the health industry on its head with their unique expectations for how healthcare should be delivered.’ Moreover, this genre of growing population is slowly but steadily gaining a critical mass to hasten the process of change that pharma marketers should take note of.

According to a paper of the World Economic Forum, published on November 08, 2021, there are 1.8 billion Gen Z around the world, equal to 23% of the global population. Yet, another paper of August 11, 2020, reconfirms that Gen Z comprises 1.8 billion people, making up for almost a quarter of the global population. India stands out with a population that includes 375 million Gen Z people – 27% of the total. Thus, Gen Z and millennial populations are considered at the forefront of shaping this new purpose-driven culture.

The Gen Z populations prefer companies contributing to social causes:

The third annual, international study of Gen Z, conducted by The Center for Generational Kinetics and commissioned by WP Engine, launched on July 07, 2020, reveals some interesting facts. These relate to new expectations for the web by Generation Z in comparison to other generations, including Millennials, Gen X, and Baby Boomers. The findings reiterate, ‘72% of Gen Z are more likely to support a company that contributes to social causes.’ It further emphasized, Gen Z is acutely aware that in today’s digital world, anyone can use their voice to ignite change, and that includes those brands which don’t take explicitly socially responsible stand in their branding strategy. Thus, imbibing ‘purpose driven marketing’ is likely to help pharma players to effectively engage this new breed of the target audience for desired long-term financial returns.

Further, based on the same logic, it is not difficult to fathom that ‘stakeholder-trust’ will also play a pivotal role, while delivering consumer expected value, and demonstrating the purpose driven actions of the business – to the Millennial and Gen Z population.

Stakeholder ‘Trust’ is critical in a value and purpose driven business:

This is a new reality, as vindicated by several recent global surveys that include India too. According to Edelman Trust Barometer 2022, ‘business holds on to its position as the most trusted institution, with even greater expectations due to government’s failure to lead during the pandemic.’ This survey – conducted against the backdrop of the pandemic, involved 36,000+ respondents in 28 global markets, including India to look at how institutions are trusted against the backdrop of the pandemic.

Some key findings of this latest study:

  • All stakeholders want business to fill the void, with nearly 60 percent of consumers buying brands based on their values and beliefs,
  • Almost 6 in 10 employees choose a workplace based on shared values and expect their CEO to take a stand on societal issues,
  • 64 percent of investors looking to back businesses aligned with their values.
  • Most respondents (59 percent) said they tend to distrust until seeing evidence that something is trustworthy,
  • 64 percent believe people in their country lack the ability to have constructive and civil debates.
  • Technology (74 percent) was the most trusted sector, followed by education (69 percent) and healthcare (69 percent). Social media (44 percent) continued its decline with a 2-point slide, solidifying its spot as the least trusted sector.
  • While Germany (65 percent) and Canada (65 percent) remained the most trusted country brands, India (36 percent) and China (34 percent) remain the least trusted.

The evolving trend indicates that the new generation, ‘wants to be a part of something bigger than themselves and they are looking to their employers to curate a fulfilling, stimulating and purpose-driven environment,’ as the article underscored. In that sense, ‘purpose-driven marketing’ has also the potential for pharma players to attract the best talents of the new generation. Conversely, it is quite likely that any organizations inability to do so, willingly, or otherwise, could help gather rust, blunting its cutting-edge for performance excellence.

Conclusion:

There isn’t any doubt that Covid-19 pandemic has initiated a paradigm shift in the expectations of the stakeholders, especially the customers and the employees from the companies. They no longer expect the organization just to focus on profit goals. Alongside, most of them also want the employers to focus, in equal measure, stakeholder value, expectation, dignity, besides social purpose and goals.

When a pharma player is seen solving societal issues, e.g., protecting the patient-health in a patient friendly manner, or saving the environment - with concrete, quantifiable measures, it creates a competitive edge for the company, fetching significant business returns from stakeholders. Surly, the pandemic is further augmenting expectations of the growing population of Gen Z – for responsible business operations = driven by value, purpose, and goals of the society – where we live in.

Consequently, it’s now becoming clearer that sustainable business excellence of pharma players can no longer be just on ‘maximizing shareholder’ returns, in terms of profit. Thus, it calls for the purpose-driven marketing, where organizational contribution to society would provide a significant competitive advantage. From this perspective, in my view, the Indian pharma marketers would now need much greater focus on the 5th ‘P’ of the marketing-mix – more than ever before.

By: Tapan J. Ray    

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.