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The document discusses opportunities and challenges for GSK's marketing strategy due to various political, economic, social and technological factors. It analyzes GSK's strengths like focus on R&D and parent synergy, as well as weaknesses like limited liquidity position. Opportunities discussed are launch of new products and growth in healthcare markets like India. Threats include uncertain R&D outcomes and government regulations. The document also discusses trends reshaping the healthcare industry like empowered patients and use of real-world data. Major changes in digital health are driving new opportunities for pharma companies.
Fusion iimk
- 1. Click to add Member Names Click to add College Name Fusion IIM Kozhikode Abhishek Anand, Surajkumar lal, Raghvendra tolia
- 2. Political It affects the implementation of GSK marketing strategy include possible changes in international trade regulation and competitive regulation likely to be introduced by the governments of China and India. Economic It impacting GSK marketing strategy include high rate of economic growth in China and India. Moreover, current economic uncertainties associated with European markets might have negative implications on the marketing strategy Social With potential implications on GSK marketing strategy are changes in consumer lifestyles, shifts in consumer attitudes and opinions etc. Increasing level of customer resentment towards large amounts of profits made by pharmaceutical companies are the most significant social factor in the current environment. Technological Technological factors include breakthroughs in pharmaceutical industry, issues associated with licensing and patenting drug manufacturing technology, as well as, the level of development of industry technology. PEST Analysis Pharma Vision 2020 • Pharma vision 2020 by the government’s Department of Pharmaceuticals aims to make India a major hub for end –to end drug discovery. Single-window clearance • As per NBDS, a proposal has been made by the National Regulatory Authority(NBRA) to provide single window clear mechanism for all bio safety products to create efficiencies and streamline the drug approval process. Support for technology upgrades and FDIs • Govt is planning to relax FDI norms in the sector. • In 2017, the govt deicided to create a digital platform to regulate and track the sale of quality drugs, and it can be used by people in the country and abroad. Several favorable policy measures : • National Commission for Homeopathy bill • National Biopharma Mission • Union Budget 2019-20 • Biotechnology based Programme for Women
- 3. Strengths - Focus on R&D The company’s R&D unit, namely Pharmaceutical Research & Development (PR&D) is approved by Department of Science and Industrial Research, Government of India. In FY2019, the company spent INR23.27 million on its R&D Strengths - Parent Synergy GSK India is a subsidiary of GlaxoSmithKline plc, one of the world's leading research-based pharmaceutical and healthcare companies. It is a science- led global healthcare company that researches and develops a wide range of novel products. Strengths - Strong Market Position GSK India's strong market position has built its brand equity and helped the company in establishing itself as a leading pharmaceutical company in India. It is one of the leading pharmaceutical companies in India. In preventive healthcare area, GSK India continues to be the top vaccines company in the private vaccines market in India. Weakness - Limited Liquidity Position The company recorded a current ratio of 1.38 times in FY2019. This was lesser than the Pharmaceuticals and Healthcare industry average current ratio of 3.75. The below average current ratio indicates that the company may find it difficult in fulfilling its payout obligations. The company's current ratio was below its competitors such as Dr. Reddy's Laboratories Ltd and Sunzen Biotech Berhad, which reported values of 1.88 and 3.34, respectively during the same year. Limited liquidity position may put the company at a disadvantage while funding any potential opportunities arising in the market. Opportunities - Launch of new products In March 2019, the company launched Nucala (Mepolizumab), a humanised monoclonal antibody for the treatment of adult patients with severe refractory eosinophilic asthma. Opportunities - Healthcare Market: India The Indian pharmaceutical market is expected to increase from US$44.6 billion in 2018 to approximately US$60.5 billion in FY2021. The major factors that are expected to drive the Indian pharmaceutical market are increasing insurance coverage, especially in the private sector Opportunities - Changing Demographics Experts expect that over the next decade, there will be nearly 75% increase in the number of people over the age of 60. While developed countries have managed to slow down their overall population growth, Longevity in the elderly population will cause concern in the future. Threats - Uncertain R&D Outcomes Adverse or inconclusive results from preclinical testing or clinical trials may substantially delay or halt the development of the company's various product candidates, consequently affecting its timeliness for profitability. Threats - Competitive Landscape The company faces competition from other large multinational firms and major drug development companies, biotechnology companies, whose financial, technical, and marketing resources are significantly greater than those of the company. The entry or expansion by any of these large companies in the specialty managed healthcare industry could increase the downward price pressure on premium rates causing intense competition to attract and retain independent agents, brokers and employees. Threats - Government Regulations In India Central Drugs Standard Control Organization regulates safety and quality of pharmaceutical products, the introduction of new pharmaceutical products, manufacturing and labeling and record keeping procedures for such products. Receiving marketing approval for new pharmaceutical products from regulatory authorities is time consuming and expensive. SWOT- GSK Health insurance & generic drugs Optimized Salesforce Corporate Branding Emerging importance for Doctors Customer Journey Future Trends to watch • Empowered Patient & Personalized Medicine: Personalized medicine and targeted therapies can significantly increase the effectiveness of new drugs in specific patient groups. • 3D printing of drugs The first 3-D printed drug was approved by the US-FDA in 2015. If the trend catches on – and it surely will – patients can print their pills on their own and completely bypass pharma. • Computing & Analytics With supercomputers, artificial intelligence and big data, pharma risks losing the very value that drives its customer interactions and therefore its business. Does pharma have a plan to counter or harness this development?
- 4. Trends reshaping healthcare Individuals are starting to control their own health treatments Patients are becoming more than just passive recipients of therapies. Healthcare will be driven much more by consumers than physicians. The clinical environment will change fundamentally. As consumers become more engaged and care environments more complex, physicians will need new skills and tools. Patients’ brand loyalty dwindles as cost consciousness rises. People are now much less loyal to brands and companies—both their insurance companies and the pharma companies that make their medicines. Pharma companies will lose exclusive control over their value stories. As the lines among payors, providers, and pharma companies blur, carefully controlled trial data will no longer be the sole source of outcome data EMERGING THEMES Reimagine pharma players as solutions companies, not asset companies Technology is ready, but pharma companies must change to enable and harness it Dr. Krishna Yeshwant of Google Ventures. “Now if we turn to the medical-software and device space, we can push more evolution—for example, user-friendly devices or user interfaces. Users of pharmaco products are comparing them with those of the best consumer-electronics brands. That’s the new standard.” “There is a strong pack mentality. Organizations don’t change unless they see everyone else change at the same time,” says Dan Goldsmith of Veeva Systems. “This has resulted in slow advances and a lack of innovation across the industry for years. In essence, pharma wants to be in control and avoid the risk of standing out.” Now, despite the fact that patients are taking back control over their own health, Inder Singh, CEO of Kinsa, suggests another requirement. Pharma companies must “reimagine their legal and compliance organizations to work more closely with regulators as companies creatively think about how to enable new business-model innovation,” Singh says. “Health information is highly regulated, and the regulatory context has not always kept up with the pace of innovation. Pharmaceuticals will need to actively work with regulators to find a path forward.”
- 5. Possible Fundamental shifts Go beyond the pack mentality by embracing experimentation and risk. Embrace a collaborative culture and challenge barriers to sharing. Reinvent companies by building nontraditional capabilities and embedding them in new operating models Pharma companies must now meet the consumers’ higher expectations, which stem from their experiences with other industries. user-friendly devices or user interfaces. Users of pharmaco products are comparing them with those of the best consumer- electronics brands. A collaborative approach is necessary if pharma companies are going to stay ahead of healthcare digitization. Significantly, some have already recognized the need to stimulate, connect, and support innovative ideas across business units and geographies. As we mentioned earlier, pharma companies should also recognize that they must contribute data if they want to see what data others have.. pharma companies have a choice between developing digital solutions in-house or through partnerships. it would be better for these companies to partner with third-party technology providers through innovation funds or joint ventures. Attracting, engaging, and delighting consumers requires a deep understanding of how to deliver a customer experience—far beyond just selling a product, pill, or diagnostic test. The problem is that most healthcare innovation gets smothered in preference for something that drives the bottom line immediately. The good news is that they see some pharma companies starting to value nontraditional skill sets—hiring marketers from other industries, such as retail, and building strategic relationships with creative agencies. Possible Shifts CareFlow maps of how people make healthcare decision
- 6. consumers in the healthcare sector are becoming more informed, empowered, and demanding. The more that healthcare data becomes digitally accessible, the more patients will use it to weigh—and potentially reject—expensive healthcare treatments. Patient behavior is changing Government health agencies, from national health services in Asia and Europe to government organizations in the United States, are already harnessing the power of big data to figure out what’s working and what isn’t and encouraging others to do the same. Government agencies are moving surprisingly quickly Pharmaceutical companies have used data generated from long-running randomized controlled trials as the gold standard to demonstrate the efficacy and safety of products and gain regulatory approval or formulary listings. Yet many of their customers—payors, increasingly providers, and even patients—are looking for real-world evidence. Both access to and quality of real- world data are increasing exponentially Trial data is necessary but no longer sufficient The need to provide ongoing management of chronic diseases and to predict and prevent severe episodes and events offers new opportunities and places new communication demands on every member of the healthcare team, including pharmaceutical companies. Some companies are already are combining technology-enabled monitoring and insight to deliver new solutions to patients. Care is evolving The recent announcement of the Apple Watch and the company’s release of its HealthKit developer tool are likely to increase the variety of functions and number of health-related apps that are available. Google Glass is the most high-profile wearable being tested for numerous healthcare applications—for example, surgeons are using it to facilitate and record operations, office physicians are reducing interruptions in patient engagement by retrieving and sending information to electronic medical records through the device, and emergency-medicine physicians are getting specialist consults by transmitting video or images taken by Glass. Competition is faster and fiercer Upcoming changes in Digital pharma space Pharma company is facing barriers in Strategy, Culture and Org
- 7. Major changes to the digital health are driving new opportunities for pharma 42 37 36 32 30 23 31 10 15 27 0 10 20 30 40 50 Digital product support and educational tools (Mob apps) Patience adherence and compliance program Remote patient monitoring and use of smart devices Data sharing with healthcare Caregivers tools and support Current offering VS Offering opportunity (%) Current offering Upcoming oppertunities Key areas of Digital opportunity Personalized care: Sensors and digital services for tailored, 24/7 treatment Fuller engagement: Omnichannel conversations with physicians and patients Data-driven insight: Advanced analytics to increase pipeline and commercial value Real-time responsiveness: Automated processes to improve cost, reactions, and agility Upcoming digital pharma synergy Data-driven insight: (Use of Analytics) • Pharma companies and other healthcare players link and analyze data from insurance claims, clinics, laboratories, sensors, apps, social media, and more in order to generate real-world evidence about a drug's efficacy • Marketing and sales forces will deploy advanced analytics to understand prescribing behavior and potential patient profiles, enabling more precise targeting of providers and increasing the number of prescriptions filed • In R&D, digital discovery and the testing of molecules with advanced modeling and simulation techniques will be commonplace. Use of big-data prescription for pharmaceutical R&D • Integrate all data • Collaborate internally and externally • Employ IT-enabled portfolio- decision support • Leverage new discovery technologies • Deploy sensors and devices • Raise clinical-trial efficiency • Improve safety and risk management • Sharpen focus on real-world evidence
- 8. Thank you.