Pharma Market Research in China: Thrive or Survive?

Transcription

1 Pharma Market Research in China: Thrive or Survive? Hairuo Wang GlaxoSmithKline September 2011

2 China, already the world s 3 rd largest pharma market Source: IMS Market Prognosis, 2011

3 We are in the middle of a Perfect Storm Change of demographics and disease patterns Increasing spending power Healthcare reform Pharma market growth 25% CAGR Local company moving up the value chain MNC increasing investment

4 MNC stepping up investments Understanding the market Penetrating the market Investing across the value chain Accelerating in the market Sustained growth 21.2% CAGR from 06 to 11 MR in full scale 1980s 1990s Early 2000s Late 2000s 4 Source: Internal analysis

5 There is more diversified portfolio Source: IMS CHPA, 2010

6 Increasing commercial effort 16 USD Million Plavix 14 Baraclude Products launched in recent years Tarceva Sustained growth 25% CAGR Hepsera Iressa Nexium Herceptin Products launched 5 years ago Heptodin 4 Nexavar Glivec 2 Alimta 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24 Q25 Source: IMS CHPA,

7 Substantial new market space Class III Hospital 1,300 hospital in over 200 cities MNC Current market Class II Hospital 6,300 hospitals in over 200 cities Newly Released Market Class I, CHC, & Others Newly Release Market Newly Released Market Newly Released Market 1 st & 2 nd Tier City 3 rd & 4 th Tier City Rural 7 Source: China Health Statistical Yearbook, 2011

8 Implications to Market Research Increasing needs for market intelligence in a very competitive market place. Diverse nature of the questions. Demand high quality input to help drive continued business success.

9 We have been asked to answer complex questions Prioritize near term and long term market expansion opportunities for Brand X. Optimal positioning of a product portfolio to better address affordability issues across different market segments. Tailoring detail aids for an emerging market segment. Brand Performance Tracking to support regional resource allocation. New products opportunity prioritization.

10 Are we READY?!

11 Increasing investment and attention from MNC for MR Primary MR Budget (RMB) MR head in senior position M 8-12M No Yes #of MR mgr Revenue for agency 30-40% Source: Interview with personals from MNC Marketing, Market Research and MR agencies, Jun-Aug., 2011

12 But, have we achieved meaningful progress? - Issues not clearly defined - Data not Insights - Research Conclusions not Business Implications #of key players 6 9? # of senior consultants 8 14 Turn Over 30-40% Project Cost Same Source: Interview with personals from MNC Marketing, Market Research and MR agencies, Jun-Aug., 2011

13 Words from clients o This proposal looks like copy pasted from somewhere. Does the agency have any knowledge about my therapeutic area and what I am look for? - Marketing Manager o This 60 page report simply follows the questions on discussion guide without considering business issues we need to address. - MR Manager Source: Interview with personals from MNC Marketing, Market Research and MR agencies, Jun-Aug., 2011

14 Words from clients (cont d) o Sorry, I still don t know what I should do differently after this research. - Marketing Director othere is only a small pool of qualified people to choose from. In several cases this year, they are running out of capacity. - MR Director Source: Interview with personals from MNC Marketing, Market Research and MR agencies, Jun-Aug., 2011

15 Words from agencies o How can you expect a vendor to deliver the same quality results as you can get from a partner. - Managing Director o Business objective? it is a moving target. Clients don t always know. - Principle

16 Words from agencies (Cont d) o It is a vicious cycle; I don t have time to think about best practice, I have deadlines to deliver. -Partner othis is a job I only do for 2 years. -Project Manager o I had no formal training in the past 3 years. - Project Manager

17 Words from agency o I have spent 3 hours negotiating with procurement about price of an 1-1 interview. There is no professional respect. - Principle oat the current market prices, I think the industry is lucky even in getting the data quality right. - Managing Director

18 Pharma MR: Widened gap between demand and supply Demand is high and becoming more complex from client s side. MR function/agency not gearing-up to satisfy the needs.

19 Root Causes Value Capability Low Impact on Business People Attitude

20 Root Causes Value: We sell 1-1s, not Problem Solving People: Lack of effort in talent development Low Impact on Business Capability: Lack of core competency Attitude: 浮躁!

21 Put Problem Solving at the core Shanghai Loudon Marketing Consultant 弗若斯特沙利文 ( 北京 ) 咨询有限公司 IMS Market Research Consulting Illuminera Strategy Consultancy

22 Put Problem Solving at the core MNC MR Agency -Manage Insights not Projects -Utilize company s decision platform -Go beyond marketing; Partnership with sales management -Build continued visibility with senior management -Be the client! -Speak the client s language. -Apply problem solving framework at the very beginning -Communicate intelligence, Not data

23 Define and Develop MR core competency MNC MR Agency -Business acumen -Problem identifying and solving -Think brand, think portfolio -Communication and relationship building -Learning agility -Business acumen -Problem identifying and solving -Quality implementation -Data integration & communication -Evaluation -Approaches Made for China

24 Develop MR Talent -Hire for intelligence -Hire for learning agility -Hire for attitude -Train for whatever T R A I N! T R A I N! T R A I N!

25 Root Causes We sell 1-1s, not Problem Solving Lack of core competency Low Impact on Business Lack of effort in talent R&D 浮躁!

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30 Change, or become irrelevant! Time is NOW.

31 Going from Surviving to Thriving

32 Thank You!