Wednesday, August 22, 2012

Selling Kamalahar online - Blue Ocean Strategy in pharmaceuticals

Khatore Pharmaceuticals was trying to figure out the right way to reach the masses who have been suffering from liver problem. When we analysed the industry and created the current strategy canvas it was clear that the industry consisted of players who were focused on going through the doctors. It created high cost for the companies and hence the customers had to pay a high price. At the same time there were many hurdles in reaching the patients for any good pharmaceutical company with a product which can be taken by the patients directly. In order to overcome the blockages the company had to redraw the strategy map of the industry and create innovative mechanisms of its own.

There was clear cut value in the product as it was proven to cure many of the liver disorders such as hepatitis, cirrhosis, fatty liver, ascites for which there was no cure in traditional medicine. Also there was big mass of customer who were untapped currently. The thing that was required was to come up with a right strategy to tap into this customer base.

The company went through the six path formulation of its strategy. By looking across industry, we found that what HP had done in online PC market can be applied to its product line up. HP had both traditional sellers like Best Buy, Fries Electronics, etc. At the same time it launched the online channel. Also looking at the time trend it became clear that internet is going to play an even bigger role in the buying decision of people. We also looked across chain of buyers and decided to eliminate some of the influencers that play a big role in the purchase when you are going through those channels. Instead it decided to stress on customers as brand ambassadors. They become the key player in its marketing channel by showcasing the testimonials of the beneficiaries.

The company also realigned the people proposition by reconfiguring its supply chain to suit the new way it was going to market Kamalahar. It also made exclusive deals with courier companies to provide speedy delivery to the customers so that their anxiety was reduced. It added 24/7 customer support line whereby people can call to get advice on the product.

The strategy was launched with much enthusiasm and slowly the business processes were adjusted for the execution of the new strategy. After the initial hicups the processes are in place now and after 1 year of execution it is clear that the product is now in pioneer category of PMS map.


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