Jan 1, 1970 - Jan 1, 1970,

Pharma’s emerging markets: Strategies for sales success

A new eyeforpharma report outlines the key strategies to succeed in Brazil, Russia, India, China, and Mexico



As the landscape for selling pharmaceuticals becomes more difficult in developed markets, underdeveloped markets are emerging as the industry’s strongest engines of growth.

Brazil, Russia, India, China, and Mexico, collectively referred to as BRICM, represent the most dynamic and profitable of these emerging markets, according to eyeforpharma’s Pharma Emerging Markets Report 2011-12.

The total health expenditure across these five markets is forecast to grow by an average of 50 per cent between 2011 and 2016, dwarfing the projected single-digit growth in most developed markets.

By 2021, the combined population of BRICM is forecast to be 3.15 billion, nearly a third of the human race.

Over the next decade, expectations for access to affordable, quality healthcare are set to increase across these societies.

As governments begin to expand and improve the public health sector in order to provide it, pharmaceutical companies can position themselves to profit.

Of course, thriving in emerging markets comes with arguably as many challenges as it does opportunities.

Companies must acquire local expertise, modify strategies, overcome often baffling regulatory requirements, and navigate compliance issues and corruption.

A key challenge in BRICM markets, particularly in Mexico, is confronting a fiercely competitive generic space shaped by consumer-driven price pressures.

The Mexican model

Mexico has for many years been an ideal emerging market.

Total health expenditure was growing rapidly, the government paid higher reimbursement rates than many developed markets, and generics were practically non-existent.

Much of that has changed in the past five years, meaning that forecasting has become decidedly more difficult.

However, Mexico remains a positive environment for selling pharmaceuticals, given the prevalence of chronic disease and continuation of the rise of median age.

This means a firm grasp of the changing landscape is imperative to understand the optimum use of sales force resources.

The Mexican government has increased its adoption of generics in the public sector and has pressured brands to reduce costs in an attempt to extend universal health coverage to its population.

In addition, a flood of generics has hit the private sector.

Upstart pharmacy chains, like Farmacias Similares, now offer generic drugs at up to a 75 per cent discount compared to branded competitors.

They advertise aggressively with slogans like, “Lo mismo pero mas barato” (The same but cheaper).

“When patients who have a prescription in hand get to the point of sale, they either ask for alternatives or the pharmacists encourage them,” says Alberto Jaimes, national sales manager of Merck’s new pharmacy sales force, in the Pharma Emerging Markets Report 2011-12.

Another consideration is the digitally advanced position Mexico occupies.

With Internet use highly integrated into Mexicans’ daily lives, big pharma companies are beginning to communicate via the Web.

A mix of traditional and post-traditional advertising must be adopted in order to reach varying audiences in such a differentiated market.

For exclusive business insight into pharma’s emerging markets, download eyeforpharma's Pharma Emerging Markets Report 2011-12. Sign up for Emerging Markets Commercial Excellence on Nov 15-16 to get the latest business intelligence on emerging markets.

For all of eyeforpharma’s coverage of emerging markets, check out our Emerging Marketsmicrosite.

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Jan 1, 1970 - Jan 1, 1970,