Pharma Marketing: The New Normal: Challenges of Change

A lot has changed in healthcare marketing prompted by the Covid pandemic. Apace with these, lots of old problems continue to remain very much the same. The aforesaid was observed in a recent article, published by WARC, on May 21, 2021. Although, this analysis was done in the United States, it has a global footprint, as the disruptions are broadly similar, with a varying degree from country to country.

Healthcare marketing leadership, including the pharma industry in India, presumably, is taking notes of these critical changes, along with their degree of impact. These are the basics for required responses in India, while managing its snowballing effect, both global and local.

Today’s article will provide a bird’s eye view of this area, to encourage marketers continue with their ongoing deep-dive data gathering exercise. Then, comes sieving the ‘catch’ with cerebral power – before using modern analytics to draw meaningful inferences for strategy making.

Some macro-changes stand out:

Some of these widely visible changes, also captured in the above WARC article, include the following:

  • An emerging trend of re-orientation of the healthcare industry around patient outcomes.
  • Need to realize that health and safety are the currency that can be used to rebuild consumer trust across categories.
  • Increasing need to build deeper emotional connections with customers, going beyond product-oriented features, benefits, and intrinsic brand values.
  • Providing healthcare consumers more data and behavioral science-driven, personalized solutions to their problems – to drive better outcomes.

More people are realizing that: ‘Healthcare, after all, is about life and death, and those stakes have been tragically reaffirmed during the pandemic,’ as the above paper underscores. Thus, affordable “health and safety will continue to be a currency that brands can use to re-establish trust with anxious consumers,” the author reiterates. To steer a company in that direction the marketers need to create a pathway for success by joining several emerging dots in the new normal. Let give just a flavor of these emerging dots with three examples, as below.

‘The end point – the price point’ - re-emerging as a core value expectation: 

Interestingly, ‘The end point – the price point’ for quality treatment outcomes is re-emerging as one of the core values and expectations of the consumers, especially facing an uncertain future that everybody is witnessing today. The health system is also transitioning from ‘pay for healthcare product and services’ – to ‘pay for integrated value-based care offerings.’ In the changing environment, many pharma players seem to have realized that customers are no longer interested in paying for brand values that serve mostly self-serving interests of the respective companies.

More healthcare customers are digitally savvy now:

Today’s brand values need to be in sync with what the perceived value of the customers, enhancing their end-to-end experience of the disease treatment process, more than ever before. For example, increasing number of patients are now choosing between F2F – in-clinic consultations and remote or virtual consultations, for non-life-threatening ailments. Some often do data-driven online assessment for different treatment value offerings, against what these would cost to them.

Purpose driven corporate branding is making better impact:

Pharma industry’s purpose-driven branding initiatives, in tandem with creating robust corporate brands, are drawing much greater public attention amid the pandemic. The list includes both the original product developers and their contract manufacturers. Even in India, many held with esteem – Corporates, such as, AstraZeneca and Serum Institute of India (SII) for Covishield, or Bharat Biotech for Covaxin.

The same thing has happened world-wide with many other Covid vaccine and drug manufacturers, such as, Pfizer, Johnson &Johnson, Moderna, Eli-Lilly, Roche, and others. Interestingly, from the available data in the cyberspace or from word-of-mouth, several people have also inferred about comparative value offerings of each. At least 4 Covid vaccine manufacturers are showing-up in this year’s ‘Conscious Brands 100’ list of 2021. This is, apparently, unprecedented.

Demonstration of ‘patients’-problem solving skill’ with resilience pays: 

As we all know by now, the drug industry as such – across the world, instead getting overwhelmed by the problem, pulled up socks and rolled the sleeves to find out scientific means of saving as many lives as possible, soonest.

Almost overnight, repurposing old drugs for Covid treatment and development Covid vaccines, racing against time, were initiated. The entire healthcare industry including, Medical Diagnostic and Devices companies and others, did not fall behind to offer reliable tests for Covid diagnosis, and other life support systems and equipment.

Alongside, Omnichannel digital campaigns of many companies, and favorable news reports amid the pandemic, made people realize the stellar role of the industry in saving lives and livelihoods – from the Covid menace.

Such examples include Pfizer’s What to know About Coronavirus webpage; Merck Inc’s Podcast: How Merck is looking at past epidemics and science to respond to the coronavirus outbreak; and India’s Mankind Pharma’s Mask My India digital campaign. It captures the stories of heroes, who are setting examples and doing more than their call of duty during the COVID-19 pandemic in India. The campaign also spreads the message that ‘together we can all fight with deadly Coronavirus.’

Some pandemic-triggered India-specific challenges:

According to the April 2021 KPMG paper, Covid pandemic has brought to the fore some of the following challenges for the India pharma industry, some due to years of neglect:

  • Fragile public health care system and laboratory testing infrastructure and supplies of life support items. This primarily due to one of the lowest Government spend (1.56% of the GDP) on health. As a result, India currently ranks 155th out of 167 countries, in terms of hospital bed availability (Human Development Report 2020) with just 5 beds availability per 10, 000 Indians.
  • Changes in health care consumption pattern – especially with the increasing use of e-health or telehealth, besides, online ordering of medicines through e-pharmacies.

Apart from these, it’s also noteworthy – how pharma demonstrated its healthcare ‘problem solving’ skill to save billions of lives from deadly Covid-19 and its mutants, attracting unprecedented kudos from all corners. To keep this initiative going – meeting customers’ core expectations, in my view, could indeed be yet another challenge of change.

Conclusion:

There won’t be any ‘one size fits all’ sort of solution to address such challenges of change. Neither is all company’s challenges the same, in a relative yardstick. Each company would, therefore, need to understand what the pandemic triggered changes in market dynamics and customer expectations mean to them to pursue sustainable business excellence.

Thus, each player would require to elaborately make data-based assessment and analysis, to figure out where they currently stand, so far are the pandemic-triggered changes are concerned. With similar analysis, they should also try to fathom what are their customers’ specific value expectations, which may now go beyond the value that their brands can deliver, but critical for branding success.

Accordingly, a value delivery strategy to be worked out, taking all concerned on-board – with a carefully crafted employee and customer engagement blueprint – and mostly Omnichannel digital platforms.

To successfully navigate through the challenges of change, pharma marketers need to wear a different thinking cap. They would also need to realize that treating pharma marketing as an intrinsic product value delivery system, and by just doing digitally whatever traditionally used to be done manually, may not help generate an adequate return in the new normal. From this perspective, giving shape to a robust, comprehensive, integrated and Omnichannel digital strategic game plan for the organization, is the need of the hour.

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.

Shape of Future Pharma Operations – Emerging A Pragmatic Outlook?

Just as newer reports come almost every day on safety, efficacy, dosage interval or span of immunity of Covid vaccines, similar reports are also reaching us about the possible future shape of pharma sales and marketing operations. Some hardcore optimists, apparently more from India, still believe that current changes in pharma customer behavior are mostly transient. All business processes will eventually fall in their traditional grooves, as the Covid menace disappears from our lives soon.

No doubt, several studies are also bringing out a number of respondent doctors’ preferences on reverting to F2F engagements, programs and events. Nonetheless, most other experts, including several large global pharma majors, believe that the future shape of business operations won’t be quite the same as the past. There are better ways to be more effective, leveraging the changing environment. Accordingly, they have initiated actions, reimagining the pathway of new operational frontiers. In this article, I shall explore the evolving pragmatic outlook in just two of these action areas:

  • The new and unique role of medical representatives
  • Digital health care solutions as a new growth opportunity

New role of medical representatives:

A recent survey published by Reuters Events Pharma on December 18, 2020, revealed that 30% of the respondents still expect that Medical Reps’ (MR) face-to-face access to HCPs would return to the status quo ante of Covid pandemic restrictions. However, a majority of 70% felt that the old normal is unlikely return as such. The study also brought out that the size and disposition of sales teams are under review by many of pharma players and smaller field forces look likely, as the industry moves on.

My personal experience with the Indian Pharma Industry sources suggests, when a Covid pandemic wave starts finding its peak, the feeling of the above 70% prevails. However, when the same wave climbs down from its peak to a transient trough, a large number of Indian companies and experts tend to feel somewhat akin to what the above 30% expressed in the Reuters Events Pharma survey. The process gets repeated with the emergence of the next wave.

Alongside, as the above survey also finds out, most physicians are no longer expecting – brand-driven high sales pitches, during any MR-Doctor interaction or the engagement process. Instead, they are increasingly looking for insights – in an integrated, personalized and value-driven interactions with the Reps.

Considering this as a trend of over last one year or so, it is likely that MR-doctor interactions will now need to be on digital and omnichannel platforms to deliver a personalized and value driven an experience to the customers. In this environment, the field force may be smaller in size than what it used to be in early 2020 but will have a unique new role to play. This process will come with a new challenge, especially to those inbred companies, who are still undecided about the road ahead for business excellence, in the new normal.

Three new pharma leadership challenges:

Apparently, a large number of domestic drug companies, irrespective of size and scale of operations still feel comfortable to be in the old comfort zone that had propelled the business in a growth trajectory. Most pharma sales and marketing staff members, at several levels, have grown within the industry, consistently delivering high performance.

This situation by itself, as the above research paper revealed, poses three fresh challenges for many companies to make their field-staff ready to play a unique and fresh role in e-marketing. Thus, the three new knots to untie in the virtual world, are the following:

  • Currently, most MRs are not proficient in selling in virtually,
  • They are being led by people who have also never sold virtually,
  • They are being trained by people who also have never sold virtually.

MRs will continue to have a role to play even in the digital world:

To overcome the above challenges, today’s reality prompts new L&D needs of pharma’s new e-environment. And from this perspective, I think, they would need professional domain experts’ hand-holding, at least, in the transition phase of digital marketing. Some companies have initiated this process for greater sales force effectiveness, since 2019. A recent example in this area may be quoted from a report on October 01, 2019.

The article highlights, ‘AstraZeneca sales reps have some new help in the coaching department, resulting improved interactions and better development of sales reps’ strengths. While leaders still manage reps, artificial intelligence—in the form of data generated from thousands of field-coaching forms—now adds machine-learned analysis and advice.’

Thus, it is worth noting that MRs will continue to play an important role, alongside remote digital marketing using omnichannel or multi-channel engagement platforms. The same also came out clearly in the latest study from healthcare consultancy ZoomRxreported on April 08, 2021, where its findings raised an important question - ‘Did pharma overshoot digital sales rep calls?’ This dilemma was prompted by the study charts reflecting a decline in its effectiveness, during this specific survey period.

Thus, in my opinion, a hybrid business model for better performance will be more effective in the new normal. However, ascertaining the right mix of digital and MR’s in-person interactions, may pose a challenge for many pharma marketers.

Entry into digital health solutions – an opportunity for growth: 

Before Covid pandemic, digital therapeutics or digital health solutions were not an unknown area for several pharma companies, as a growth booster in the modern world. But, it wasn’t explored so intensively as it is being discussed today, for the same. A recent paper titled, ‘Digital health during COVID-19: lessons from operationalizing new models of care in ophthalmology,’ published in The Lancet on February 01, 2021, vindicates this point.

The paper emphasized, due to Covid pandemic ‘the traditional face-to-face patient–physician care model has had to be re-examined in many countries, with digital technology and new models of care being rapidly deployed to meet the various challenges of the pandemic.’ It further highlighted, these new models incorporate digital health solutions such as telehealth, AI based decision support for triaging, besides clinical care, and home monitoring.

Global pharma majors, such as Novartis, have publicly acknowledged on January 21, 202 that ‘digital innovation looks set to dominate the 2021 healthcare agenda.’ The statement said, COVID-19 was a catalyst for change in healthcare during 2020 and an accelerator for digital health. Similarly, 2021 looks set to continue the revolution – exploiting ‘an explosion of interest, traction and scale’ in the potential for digital solutions. These would not only support remote working, but also keep the very fabric of business, healthcare, education, and essential services in operation.

Other important and recent examples of digital health care solutions: 

Witnessing the COVID-19 pandemic pushing more people toward virtual doctor visits over the last one year, AstraZeneca, as reported on April 06, 2021, is preparing for it in the new normal, through a novel project with Massachusetts General Hospital. The Company is now in the process of establishing and validating its ‘recently launched digital health platform, designed to help patients with chronic illnesses manage their conditions without stepping foot into the academic medical center’s clinic.’

Similarly, several other companies, are also investing to be early entrants with user friendly state of the art technology in this space. Interestingly, many of these ventures were reported during March and April 2021.

Conclusion:

Arthur Miller’s play ‘Death of a Salesman,’ broadly addressed the loss of identity and a man’s inability to accept change within himself and society. Although, the book depicts a larger philosophical perspective of life – many pointed out similar issues in the drug industry perspective, as well.

Nonetheless, many studies have established, pharma MRs have been effectively delivering, since long, the endpoint deliverables, as expected of them – sales. However, the question that still haunts many – can this core process be re-imagined for greater efficiency and effectiveness at a lesser cost, harnessing modern technology. An article, published in the Pharmaphorum on March 11, 2011, has also suggested – ‘in the wake of the COVID-19 pandemic, there is an even greater need to re-examine the rep’s role. How can a field force evolve to deal with current challenges and be future-fit for the way we will be working in the post-pandemic world?’ 

There is no confusion today that MRs’ will have a key role to play in pharma’s digital endeavor. However, the key purpose of having them has evolved during the pandemic. Such as, from being an efficient way to achieve personal communication objectives – to be an orchestrator for physicians to navigate the difficult landscape, providing them a differentiated service. For this purpose, I reckon, a hybrid business model for better performance, will be more effective in the new normal, while quickly adapting to digital transformation. However, arriving at the right mix of digital and MR’s in-person interactions, may pose a challenge for many pharma marketers, as it will be a company-specific need.

Similarly, the criticality of leveraging opportunities to provide remote delivery of digital health care solutions to patients, has also come onto the radar of many pharma players, during this difficult time. Several players have already added this area as a lucrative business expansion platform – many more are expected to follow. Thus, in my view, the fast-evolving data-based trends are now giving a pragmatic shape to future pharma operations – especially on the new and unique role of medical representatives and the relevance of digital health care solutions, as a growth opportunity.

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.