A mid-size pharmaceuticals company with a stable business in the prescription markets wanted to explore and identify the right opportunities for expansion in the consumer healthcare space
Based upon an in-depth understanding of the consumer healthcare markets, our mandate was to find the market segments that fit well with the client’s strengths and develop a detailed strategic and operational blueprint for launching this new business unit.
The project was structured into four phases: 1) Understanding the market landscape and strategies of key players 2) Identifying major differences between consumer and prescription markets and outlining the success factors in the consumer markets 3) Developing the strategy and operating plan for the business 4) Creating a financial plan and determining investments involved, risks and returns
As part of phases 1 and 2, we estimated the market potential by different therapeutic segments, studied the strategies of existing players, and interviewed key executives in the consumer health industry. These interviews provided a better understanding of the marketing strategies of competitors and the distribution structure and channel economics of the industry. A significant aspect of the project was to help the client’s senior management understand the nuances of consumer healthcare and get comfortable with the go-to market strategies deployed by consumer product companies. For example, the client would need to influence consumers directly through advertising and social media rather than through doctor-influenced prescription selling
While the potential upside in consumer healthcare is high given the growth rates in India’s markets, there would be financial risk as market entry would require significant marketing investment to build brands and awareness. We quantified the risks involved with the help of a detailed operating and financial plan, and performed scenario analysis for how the business could evolve and hence the associated risks.
Armed with a comprehensive understanding of the market landscape, competitors and the potential risks and rewards of market entry, the client felt confident about the attractiveness of certain product segments and has moved forward with a substantial, multi-year investment to launch its consumer healthcare business.