Pierre Morgon, a speaker at the marcus evans Emerging Pharmarkets Summit 2011, shares his thoughts on pharmaceutical product marketing in emerging markets
Emerging Pharmarkets Summit 2011
CANNES, France—Emerging Pharmarkets Summit 2011
Cannes, France, 23 - 25 March
Interview with: Pierre Morgon, VP Franchise & Global Marketing Operations, Sanofi Pasteur
To optimise product portfolios many pharmaceutical companies are seeking opportunities in emerging markets. However, not every market is worth pursuing, which is why cultural sensitivity and analytical thinking is needed to assess potential markets, says Pierre Morgon, VP Franchise & Global Marketing Operations at Sanofi Pasteur. A speaker at the marcus evans Emerging Pharmarkets Summit 2011 in Cannes, France, 23 - 25 March, Morgon explores the principal challenges of marketing pharmaceutical products in emerging markets, and his outlook of the future of the industry.
How should multinational companies approach emerging markets?
Pierre Morgon: “Multinational companies need to be culturally sensitive when approaching emerging markets. Situational intelligence is important for making decisions in an analytical way. Not every market is worth pursuing, which is why the ability to be analytical is absolutely essential.
To analyse potential markets, I would suggest assessing the political, economical, societal and technological situation. Political stability is an important part of the equation when marketing vaccines in a new country, where a close relationship with high levels of administration is necessary. It is also critical to look at which international players have entered the market and what hurdles they have encountered, as well as how partnerships with local companies have fared. For instance, everybody is excited about China, but many ventures with local companies have gone wrong. Technologies have sometimes been stolen or copied, and local executives have left to set up competing companies. There are lessons to be drawn from many industries.”
What are your recommendations for establishing brand loyalty in new markets?
Pierre Morgon: “Establishing brand loyalty is similar in developed and developing economies. In some places being a foreign brand has the added benefit of having the image of superior value and reliability.
In the field of consumer health products there is direct contact between the product packaging and the end user, therefore the product logo carries the value of the brand all the way to the end customer. However, with vaccines, the patient often only sees the syringe; therefore establishing brand loyalty is important at the healthcare provider and not the end user level. A good understanding of these flows is a requirement for building and leveraging a brand. In our field where there is no or limited interaction between patient and product (in the marketing sense of the word), we also work on conveying value through an umbrella brand. The corporate brand often carries as much weight as the product brand at the healthcare provider level.”
What is your outlook for the future of the industry and the role which emerging markets will play?
Pierre Morgon: “Since I entered the pharmaceutical industry 25 years ago, people have been telling me that the good old days are behind us. There is a little truth in this as the days of double digit growth are over, except in selected market segments. With generic products on the market and stricter restrictions from authorities, there is now reduced growth pace for brand manufacturers and an increasing focus of R&D on smaller groups of patient populations. Innovation will drive future profitability through targeted specialty products.
For portfolio optimisation, diversification and entering emerging markets are two options. There are many new local players thus a number of partnership, merger or acquisition opportunities. This will be a trend in the future as pharmaceutical companies try to maintain current levels of returns for their shareholders.”