Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - (Page 12) COMMERCIALISATION MODELS There are three underlying forces which are driving change in the German market: horizontal integration, vertical integration and the rise of an economic mindset. on the day-to-day operations. In our experience, establishing a crossfunctional project team can be helpful, allowing as it does for the input of different perspectives when preparing for and facilitating key decisions. Leveraging pilot projects and drawing on insight and experience from other industries are also useful tools. Implications for marketing and sales Each of the three different commercialisation models has its own set of key success factors, capability requirements and implications for the role of the sales and marketing functions. 1. Payer contracting. Correct scoping of contracts is a key success factor for this commercialisation model. Pharmaceutical companies need to carefully consider which products and services to include in a contract, especially when negotiating directly with individual sick funds on contracts that are not based on public tenders. The choice of sick fund is also critical, as these can differ considerably in terms of access they provide to the market and the purchasing power they wield (cf. Beck et al. [2007]). Successful companies will distinguish themselves through creative deal structuring; they will understand the broader needs of the relevant sick fund and use terms and conditions in a smart way to create compelling win-win propositions with benefits for both parties involved. Once contracts have been put in place, effective compliance monitoring is important to ensure agreed terms are being implemented. This is particularly relevant for more complex deals. Finally, as companies often compete for contracts on the basis of price, the ability of an organisation to absorb margin pressure is also a key success factor. Here, successful companies will derive an edge from their commercial productivity leadership position, which allows them to operate profitably in a much tighter environment. Distinct capabilities are required to put these key success factors in place. Establishing a dedicated senior negotiation team, comprising members of the affiliate management team or other senior leadership roles, is a good approach. Subject matter experts are also needed to support the decision and negotiation process with quantitative models that allow scenario-based analyses. As payer contracting is still a relatively new commercialisation approach for the German pharmaceutical industry, companies should reach out to traditionally tender-based industry sectors in search for key talent. With contracts being the key market access vehicle in this commercialisation model, the sales organisation plays primarily a supporting role. The sales team will focus on new channels and secondary decision points, depending on the emerging decision processes. In the generics segment, we expect a shift in focus towards pharmacies, with the pharmacist becoming an important, secondary decision point once a contract with a sick fund has been agreed. Sick funds are likely to allow limited choice within a treatment category, so even when a contract is in place, managing the point of dispensing is key. Companies with previous experience and a strong position in the pharmacy market (such as an attractive OTC portfolio) will have an advantage here. The other secondary decision point which still needs to be managed is the physician, again because of the choice sick funds are likely to offer. The extent of activity dedicated to physicians will also depend on the level of value-added service agreed in the contract with the sick fund. In the world of payer contracting, the most important role for the marketing function is supporting the senior negotiation team with compelling value propositions which must be tailored to the needs of the sick funds. In addition, marketing will also provide messages for secondary stakeholders (pharmacists and physicians). The messages must focus on the needs of those target stakeholders; for example, in the case of pharmacists they need to include a strong consumer angle. 2. Physician-centric model. Companies that succeed in the physician-centric commercialisation model will rely on superior customer segmentation and tailor both promotional activities and messages accordingly. At the heart of this we will find unique customer insight which allows granular segmentation of physicians on the basis of value, potential, attitude, behaviour and quality of the relationship. The successful company will use these insights as a foundation for a best-in- 12 FEBRUARY 2008 SALES ENVIRONMENT
Table of Contents Feed for the Digital Edition of Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 Pharmaceutical Executive Europe - February 2008 Contents Sales Force Commercialisation Models Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Pharmaceutical Executive Europe - February 2008 (Page 1) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Contents (Page 2) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Contents (Page 3) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 4) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 5) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 6) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 7) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 8) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 9) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 10) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 11) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 12) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 13) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 14)
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