Skip to main content

Tips from Top – " Value Based Marketing - Pharmaceutical Industry”. Mr. Utsav Rawat, Head of Marketing, Novartis



In the 21st century, a brand must understand their customers' root motivators in order to make the kind of value-based connection that is increasingly important to the modern consumer. To provide students with insights on this prevailing topic, Department of Industrial and Management Engineering played host to a seminar by Mr. Utsav Rawat, Head of Marketing-Novartis, who has a decade of experience in the health industry, to talk about value based marketing in Pharmaceutical Industry in India.

The seminar began with Mr. Utsav talking about the innovation giants, Apple and Tesla, who have redefined marketing as seen by the world with their unique approach and perspective. While talking about pharmaceutical companies, he said that on average, each company globally spends 8000-10000 crores on research and development and approx. 15% on marketing. He emphasized on the role regulation plays on innovation in healthcare industry.

While talking about difficulties for marketing in healthcare, he stated that unlike other industries, the decision maker, user and buyer are different in healthcare industry, which makes it difficult to market the products. He then walked us through evolution in pharmaceutical industry in India. In pre-1970 period, market was dominated by MNCs and there was absence of organized Indian companies. Indian Patent Act-1970, changed the face of pharmaceutical industry in India. India realized its core competency was in manufacturing and hence focused less on R&D. The span of two decades after 1980 was golden era for Indian pharmaceutical industry. Process development, export initiative, research orientation and production infrastructure creation set off the industry to the next level. Since the advent of 2010 the industry is now focusing on consolidation to reduce R&D cost and work for the well-being of customers. Big Indian players and MNCs are merging while sharing their core competencies to reduce the overall cost of the product. Consumer perspective has also changed in the 21st century, from adding years to life to adding life to years.


Mr.Utsav then explained how the industry trend in marketing has changed from sales in 1920s, to marketing in 1980s and eventually to value based marketing in 21st century. While giving an example of Starbucks, he mentioned how higher value creation leads to higher share of the wallet. India has got most FDA US approved manufacturing sites outside the US, implying that the global industry entry barriers are not strong anymoreEarlier it used to be only three people in the value chain, while now there are multiple stakeholders in-between who are equally important and they need to be the part of value creation.

Talking about converting a commodity to a brand, Mr.Utsav again went back to the Starbucks example, whose value addition is more than 2000% in the entire process. As he stated, "In case of product, don't be needy but be greedy."

At last, Mr. Utsav shared his the learning from real life marketing issues while sharing some industry examples. He said that one should have an approach of converting challenges into opportunities and changing the forces of the market.

Today, a company should be quick enough to figure out what resonates with their customers. Mr. Utsav concluded the seminar on a motivating note saying that a marketer should always think of what disruptions he can bring into the market.


Comments

Popular posts from this blog

Reflexions'19 - A Reflection on "Tackling challenges of the VUCA World" !!

The Department of Industrial Management and Engineering, IIT Kanpur presented the flagship event of Prabandhan – Reflexions on Sept 28th, 2019. The 3rd edition of the event on ‘Tackling challenges of the VUCA world' was concluded with a promising and on a cheerful note. With thunderous applause and riveting questions, the event opened to bridge the corporate world with the real world. Reflexions 3.0 saw the participation of 6 eminent industry leaders and management gurus to share their experiences from their respective trades. They were Karan Marwah, Partner – CFO, Advisory Services, KPMG, Harshavardhan Chauhan, Head-Marketing & digital transformation, DLF Shopping Mall, Neelesh Talathi, CFO, Pepperfry, Hari T N, CHRO, Big Basket, Raj Gupta, General Manager, HR, TCS and our very own Professor, Devlina Chatterjee, Managerial Economics, Applied Econometrics. The talk focused on "How well, can the industries predict the results of their actions in a world of Volatility, Unc

An Introduction to the batch of 2019-21

“ It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. "                                   A new zeal, vigour, and an unquenchable thirst for proving oneself is what describes MBA batch of 2019-21. 52 of us set foot on the pavement of a new journey and needless to say it has been unprecedented. Be it the early morning presentations, the stark midnight deadlines, or the never-ending case studies covering the gamut of concepts and context, each one of these activities can vouch for it. It has hardly been a month, yet the batch has acclimatized well with the life of one the most coveted institutes in the country, IIT Kanpur. For most of us, this is the desired path, and for the rest, it is an opportunity to relive their school days. Since we are in a place that has no norm and instead offers endless diversity, there will always be something that entertains and challenges us. It is time we took this op

Mr. Praveen Tripathi, CEO of Magic 9 (Media and Analytic)

Mr Praveen Tripathi began the seminar by giving a brief introduction about the classification of households in India. Sir mentioned about the New Consumer Classification System (NCCS) in which there are 12 grades of classification varying from A1, A2, A3, B1, B2, C1, C2, D1, D2, D3, E1, E2, and E3. He contrasted it with the old classification system in which there were 8 grades only. The basic theme behind all this classification is the life score which is assigned to all the households. Life score is calculated based on the education of chief owner and consumer durable. And the discrimination is measured by the Larenz Curve and Gini coefficient. The major drawback of this system as mentioned by sir was that the consumer durable penetration changes faster than education or occupation level. “Inside every transaction there is a knowledge, you need to decode it.” With this quote sir gave a brief about television audience metrics in India which started with Doordarshan Audien