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The RX Factor Read Sample
The RX Factor Read Sample
Factor
Strategic Creativity in
Pharmaceutical Marketing
PAVAN CHOUDARY
W V P D
A WVPD PRESENTATION
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
Pavan Choudary
Brief Introduction
Pavan Choudary is the author of path breaking books like Broom & Groom (coauthor Kiran Bedi), A Trilogy of Wisdom, Machiavelli for Moral 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
Comments on The
Factor
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.
The book is systematically divided into easily readable sections to understand the
concepts of pharmaceutical marketing tinged with Hindu 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
Introduction
accepted in the marketplace. It will govern his choice of prescription. This knowledge is the key to a successful marketing strategy,
the correct 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.
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 'differentness'
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 marketplace.
For convenience, I have divided the book into two parts. The first
part, I hope, will provide you with an appreciation of the 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, 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.
The second part focuses on the creative execution of the factor.
While Chapters 6 and 7 explore options to the commonly accepted
concepts of unique selling proposition (USP) and marketing
10
Introduction
11
PART A
Understanding the
Factor
CHAPTER
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
in marketing circles) is exemplified beautifully when one sees that
some Hindu gods have moods or profiles that can adjust to the needs
of the supplicant or enhance the versatility of the deity. So, we have
Durga to bestow grace, Kali 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 of one product eats into the sales of
another product of the same 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 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 Avataars helped
consolidate the corporate monopoly of Hinduism.
Creatively speaking, 'the imagination of our forefathers knew no
bounds. Take Lord 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 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 temple in Varanasi, as I walked 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 puree karega, kismat chamkayega' (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 give something,
feed the 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. Unknown to him, the factor was
16
FIGURE 1.1
FIGURE 1.2
FIGURE 1.3
Understanding the
Factor
18
CHAPTER
Market-based Communication
Understanding the
Factor
MAT (Crs)
275.5
75.3
51.8
30.4
MS (%)
CHG (%)
100.0
27.3
18.8
11.0
-6.2
6.1
16.4
1.8
MATMoving Annual
Total MS Market Share
CHGChange 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.
Their base line, ' Cifrana reflection of your concern' 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 paid off.
To tackle the lack of clinical data, Ranbaxy's first communication
was: 'Revitalbetter experienced than explained.' The doctors
were asked to try the product themselves. Doctors have for long
recognized the placebo effect. (The placebo effect 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
FIGURE 2.1
Ranbaxy justified
Cifran's price by
comparing it with
cephalosporins
Market-based Communication
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
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 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 most houses this was the only pucca structure so it was
used to store grains which the normal structures with
thatched roofs could not protect from rain.
In some houses this free lavatory was covered up and
converted into an additional room.
Most importantly, because all houses were given 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 were to use the toilets. At 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, 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, such schemes are bound to fail.
Market-sensitive Communication
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:
' Calmposethe best is always familiar' (Figure 2.3)
25
Understanding the
Factor
FIGURE 2.3
Calmpose making a strength out of a weakness
TABLE 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
FIGURE 2.4
No comments!
You decide
Prescribe Fasigyn
FIGURE 2.5
Pfizer expands the amoebiasis market. Brilliant!
Market-based Communication
MAT(Crs.)
MS(%)
622.9
94.7
83.5
29.1
91.5
13.9
12.3
4.3
CHAPTER
Marketing Peace
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 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, we spoke of the concept of
Avataars. 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 Avataars 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
Factor
FIGURE 7.1
Market-sensitive communication makes Hero Honda the leader
FIGURE 7.2 Hero Honda changing messages as the product matures on the product lifecycle
Factor
years back? If you have used the product you will know that the bar
melts 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 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, though there are hundreds of
molecules available, you write just a 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
Music continued
FIGURE 7.3
Hero Puch - Beyond positioning. Changing the frame of reference
Marketing Peace
Factor
FIGURE 7.4
Another example of marketing peace
Handyplast
FIGURE 7.5
Handyplast - A medal for bravery. Ingenious!
Factor
80