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Sales Force Effectiveness in Pharmaceutical
Moch Kurniawan
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Globalization, consumerism and prosperity are the
major trends that will impact healthcare in SEA
Globalization
ConsumerismProsperity
Globalization:
• World is becoming smaller: cheap air- travel, connectivity,
internet, medical tourism
• Increased healthcare awareness because of multiple media
Consumerism:
• Increased self medicating behaviour; ease of access (online)
• Increased expression of consumer individuality through brand
choices
Prosperity:
• Increasing disposable income, financial independence leading to
exploring more choices
• Increased health awareness has led to consumers spending more
on health prevention and OTC
2 3
1
Source: Frost & Sullivan
INFRASTRUCTURE
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APAC among the fastest growing economies over the next 5 years
31.1
20.0
4.9
1.7 0.9 0.3
40.5
21.0
6.2
2.3 1.1
0.3
50.9
23.3
7.9
3.0
1.5
0.4
CAGR
5.1%
CAGR
1.5%
CAGR
5.0%
CAGR
5.7%
CAGR
5.1%
CAGR
2.5%
0
10
20
30
40
50
60
Singapore Brunei Malaysia Thailand Indonesia Vietnam
GDPpercapita(US$thousand)
Southeast Asia
2006 2010 2016
CAGR
3.3%
CAGR
12.0%
CAGR
5.5%
0
10
20
30
40
50
Hong Kong China India
GDPpercapita(US$thousand)
Asia
2006 2010 2016
CAGR
4.8%
CAGR
0.7%
CAGR
1.9%
CAGR
-1.2%
CAGR
1.7%
0
10
20
30
40
50
60
GDPpercapita(US$thousand)
Developed Economies
2006 2010 2016
Source: Data in the above charts were based on GDP per capita data in the respective country’s national currency as sourced from the WEO online database. The data above was converted to US
dollar based on the currency conversion rate for the respective years. Analysis by Frost & Sullivan
CAGR
2.9%
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Diverse population structures with varying levels
of purchasing power
1.3%
0.5%
1.2%
1.5%
2.7%
2.3%
0.5%
1.6%
0.9%
-0.5%
1.0%
2.1%
-0.2%
2.6%
0.2%
3.9%
0.9%
-0.1%
-0.2%
0.7%
0.4%
0
200
400
600
800
1,000
1,200
1,400
Population(million)
2006 2010 2016
Asia Pacific Mature markets
CAGR (2006-2016F)
Sources: World Economic Outlook (WEO), World Bank and countries data. CAGR data is for 2006 to 2016
Increasing consumer power
•Rural population, low income, relies on
government support.
•Upwardly growing middle class, living in tier 2
cities, educated, can pay for some level of
healthcare
• High income category, first adopters of new
technology, services, private HC
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Patient Protection and Affordable Care Act (PPACA) Highlights
Source: Ernst & Young LLP
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NEW GLOBAL CENTER IN
ASIA-PAC
DOCTORS LESS CENTRAL IN
HEALTH
GLOBAL
SYSTEMS
IN CRISIS
PAYERS
FIRMLY
IN CONTROL
1 2 3 4
CUSTOMER
NEAR
UNIVERSAL IPAD ACCESS
HIRING
THE
COMPETITION
FEAR
OF THE
CLOSING DOOR
5 6 7
TRENDS OVERVIEW
TALENT
STRATEGY
THE NEW
REP-RELIANT BLOCKBUSTER
DISCONNECTED DIGITAL
TOOL SET
DETAILING
FOR THE
DOUBLE YES
WORKING
WITH NEW PREFERENCES
8 9 10 11
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Relevant Trends in Indonesia
• Middle class to rise from 19% of Asian population in 2009 to 30% by
2014
• Indonesia has a young population, where 44% are below 24 years old
Growing wealth of middle class to drive demand
Source: CLSA Mr & Mrs Asia Moving up the J-curves – Spring 2010
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Toddler
10%
Kids
10%
Teens
9%
Teens
adult
9%
Young
adult
8%
Early
jobber
9%
Young
Parent
8%
Parenthoo
d
8%
Mature
18%
Ageing
well
11%
Age Group Population
Source: sp2010.bps.go.id
Indonesian population per 2010 national census grew at 1.1% YoY. The population pyramid has shown a shift to a bigger young to middle
age group – which resulted to the increasing productive age group between 24 to 54 y.o. The split between Male:Female is almost equal,
except a slightly higher in Female Ageing Well group
Population % based on total age group % based on Gender
Grouping Age Range # of Population Male Female ALL Male Female ALL
Toddler 0-4 22,678,702 10% 9% 10% 51% 49% 100%
Kids 5-9 23,253,480 10% 10% 10% 51% 49% 100%
Teens 10-14 22,671,081 10% 9% 10% 51% 49% 100%
Teens adult 15-19 20,880,734 9% 9% 9% 51% 49% 100%
Young adult 20-24 19,891,633 8% 8% 8% 50% 50% 100%
Early jobber 25-29 21,310,443 9% 9% 9% 50% 50% 100%
Young Parent 30-34 19,830,685 8% 8% 8% 50% 50% 100%
Parenthood 35-39 18,505,131 8% 8% 8% 50% 50% 100%
Mature 40-54 42,127,155 18% 18% 18% 50% 50% 100%
Ageing well 55+ 26,492,282 11% 12% 11% 48% 52% 100%
Total 237,641,326 100% 100% 100% 50% 50% 100%
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Relevant Trends in Indonesia
Demographic
Indonesian population by Generation Group 2010-2016 (in ‘000)
40,988 41,118 41,247 41,377 41,498 41,595 41,673
103,127 103,233 103,317 103,369 103,353 103,271 103,311
49,305 50,294 51,251 52,192 53,103 53,997 54,893
40,058 41,686 43,360 45,076 46,862 48,708 50,461
-
50,000
100,000
150,000
200,000
250,000
300,000
2010 2011 2012 2013 2014 2015 2016
Gen Z (age 0 - 9) Gen Y (age 10 - 34) Gen X (age 35 - 49) Baby Boomers (age 50 - 75+)
2010 vs 2016
Growth
26.0%
11.3%
0.2%
1.7%
• From the chart above, baby boomers and retire (>54) population have the biggest growth until
2016
people’s life expectancy longer people’s health awareness higher
• Productive people (25 – 54) (gen X and partial gen Y) also growing around 11.3%
Source: Data Statistik Indonesia
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Indonesia Socio Economic Class - Nielsen & BCG report
Nielsen, the leading global market data provider company, publishes yearly consumer segmentations, called Socio Economic Class (SEC) and the single
measure/ criteria is heavily based on routine Monthly Household Expenditure (MHE). It’s widely used by consumer goods company or any marketer
which targeting consumer/ patient base. It shows the level of economic buying power, from the lowest E class (those who spends MHE below IDR 700K
per month to the highest A class (> IDR 3mio per month). From the past 3 years consecutive data below, it tells us that Indonesian middle economic
classes (AtoC1) are increasing at +6% average, correlates to the economic growth at +6% yoy. This is also aligned with the latest Boston Consulting
Group’s (BCG) report and World Bank’s report on Indonesian middle class
8% 8% 14%
18% 16%
25%
23% 23%
28%
25% 27%
22%
17% 14%
8%9% 12%
3%
2010 2011 2012
Year
E IDR < 700.000
D IDR 700.001 -
1.000.000
C2 IDR 1.000.001 -
1.500.000
C1 IDR 1.500.001 -
2.000.000
B IDR 2.000.001 -
3.000.000
A IDR > 3.000.000
+6%
+9%
+5%
Nielsen’s SES
BCG’s Report
World Bank’s Report –
from the economist.com
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Population in Indonesia, income demographics 2012 vs 2020
Source: Statistics Indonesia
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Pharmaceutical and medical technology firms are
not alone in the race
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• Per capita healthcare expenditure is far below
global average (lowest is Vietnam and
Indonesia).
• Shortage of healthcare professionals in both
countries.
• Efflux of medical tourists seeking treatment in
other countries; 400,000 Indonesians patients
travel annually.
Market Restraints
• Growing middle-class population in Indonesia;
per capita income expected to grow from
$2,580 in 2011 to $3,500 by 2015.
• Rise in non-communicable disease incidence,
cardiovascular disease will account for 31
percent of total number of deaths in Indonesia
by 2030, followed by other chronic diseases at
28 percent.
• Vietnamese government intervention to
enhance healthcare workforce by 2020.
Market Drivers
Total Indonesia Healthcare Market Size
Healthcare Industry: Revenue Forecast Indonesia 2011–2015
Source: Frost & Sullivan analysis.
0.0
2000.0
4000.0
6000.0
8000.0
10000.0
12000.0
2011 2012 2013 2014 2015
Indonesian Healthcare Market Size
Year
Indonesia 5549.30 6016.30 6515.90 7072.10 7742.50
$ (Billion)
CAGR
8.7%
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3,119
3,453
3,816
4,187
4,755
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2009 2010 2011 2012 2013
SalesValueTrade
OKUYEN(IDR10,583,333,333/OKUYEN)
Nutrition
OTC
ETHICAL
TOTAL MARKET42%
58% 61%
39%
39%
61%
40%
+4%
+9%
+15%
+15% +11%
+13%
+11%
+11%
+14%
39%
61%
+15%
+11%
+12%
60%
Exchange rate: Constant IDR10,583,333,333/OKU YEN
Source: IMS Plus 2013-Q2
Indonesia Pharmaceutical Market – MAT 2013Q2
• Indonesia is a big potential market for pharmaceutical industry, with total market size at OKU YEN 4,755 in MAT 2013Q2
• And the pharmaceutical market in Indonesia has grown rapidly at growth +12% in last year, driven by OTC sector growing +15% in
2013Q2 .
• In overall the pharmaceutical market growth is outperforming economic growth (6%).
• The market growth is expected to continue at the same rate for 2012-2015.
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Decrease new product launch in Indonesia
Source: IMS: ITMA-Ethical Only MAT 4Q10
0
50
100
150
200
250
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Number of Products Launch per Year
Foreign Ethical Foreign OTC Local Ethical Local OTC
Avg : 150
Avg : 63
Avg : 33
Avg : 9
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Most companies have ambitious growth targets - combined
with and increasing complexity in their business model
2013 – Commercial Excellence Forum
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Indonesia—Healthcare Indicators
Healthcare Indicators: Indonesia, 2007–2011
Key Features
• The population of the country as of 2010 stands at 238.0 million people. It is recorded as the fourth most
populous country in the world.
• The population of the country is expected to grow at a consolidated pace of 1.0 percent for the 2010‒2015
period.
• Life expectancy at birth has increased by 16 months per person from 2007 to 2011, and decreasing mortality
rates are a result of improving healthcare services.
Healthcare Indicators 2007 2008 2009 2010 2011
Population (Million) 226 229 232 238 245
Population Growth Rate (%) 1.3 1.3 1.3 1.07 1.04
Birth Rate (per 1,000) 19.65 19.24 18.84 18.10 17.76
Mortality Rate (per 1,000) 6.90 6.85 6.80 6.28 6.26
Life Expectancy (Female) (years) 72.7 73.1 73.4 74.0 74.3
Life Expectancy (Male) (years) 67.6 68.0 68.3 68.8 69.1
Source: IMF, CIA World Fact Book, Indonesian Department of Health, Frost & Sullivan analysis.
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Disease Information – Major Causes of Death
Cardiovasc
ular
31.0%
Cummunic
able
13.0%Other
Chronic
28.0%
Cancer
18.0%
Others
10.0%
Major Causes of Death, 2030
Cardiovasc
ular
30.0%
Cummunic
able
25.0%
Other
Chronic
21.0%
Cancer
13.0%
Others
11.0%
Major Causes of Death, 2010
Source: Indonesian Association of Medical Doctors (Ikatan Dokter Indonesia, or IDI)
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Three dimensions of coverage
Increasing coverage of
41.7% (2005) to 63.2% (2012)
Comprehensive benefit
package
(2012)
No cost sharing
(Jamkesmas)
Ahmad Fuady Health Economics, Policy and Law Erasmus University Rotterdam The Netherlands 2013
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Three dimensions of coverage
• Less coverage, compared to neighboring countries
• A low coverage to formal workers group
3%
Ahmad Fuady Health Economics, Policy and Law Erasmus University Rotterdam The Netherlands 2013
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Indonesia Social Security and Healthcare Programs Up Date
Member
• 142.711.701 (24/4/15)
Healthy Facilities
• Central of Healthy
People 9798
• Army Clinic 750
• Police Clinic 570
• Basic Clinic 2712
• Hospital D Class 1675
• Primary Clinic 79
• Pharmacy 1679
• Optic 870
Doctor
• Dentist 1050
• Private Practice 4222
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Indonesia—Health Care Delivery System
Healthcare System
Public Private
MOH
Hospital
Provincial
Hospital
District
Hospital
Puskesmas
Pustus and
Mobile
Clinics
Specialty
Private
Hospital
General
Private
Hospital
Private
Clinics
Source: Ministry of Health and Frost & Sullivan analysis
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Indonesia—Hospital Categorization
Hospitals (General and
Specialty)
Public Hospital
Private Hospital
Class A (>400 beds) = 10
Class B (100-400 beds) =
120
Class C (50-100 beds) =
250
Class D (<50 beds) = 126
Extensive specialist medical services +
extensive sub specialists
Extensive specialist medical services +
limited sub specialists
Has minimum of four basic specialist
medical
services
Provides basic medical facilities
Priority
General medical services + specialists and
sub-specialists
Madya
Pratama
Minimum four specialists medical services
General medical service
Source: Indonesian Department of Health, Frost & Sullivan analysis
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Indonesia—Hospital Classification
Public
(Ministry of
Health)
36%
Public
(Military)
8%
Public (State
or other govt
dept-owned)
5%
Private
51%
Percentof Hospitals by Type and
Sector, Indonesia, 2010
Mental
15.3% Leprosy
6.6%
Pulmonary
TB
3.0%
Eye
3.9%
Maternity
19.5%
Pediatric
32.1%
Others
19.5%
Percent of Specialist Hospitals Split
by Specialty, Indonesia, 2010
Source: Indonesian Department of Health, Frost & Sullivan analysis
Hospital Classification by Type Hospital Classification by Specialty
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Number of Hospitals: Regional Spread
Source: Ministry of Health, Indonesia
Bali
No. of hospitals:
34
Sumatra Selatan
No. of hospitals:
34
DKI Jakarta
No. of hospitals:
124
Sumatra Utara
No. of hospitals:
130
Sumatra Barat
No. of hospitals:
41
Sulawesi Selatan
No. of hospitals:
62
Jawa Barat
No. of hospitals:
144
Jawa Tengah
No. of hospitals:
162
Aceh
No. of hospitals:
35
Jawa Timur
No. of hospitals:
171
Hospitals are concentrated in major cities in the Sumatra and
Java province, such as Jakarta, Surabaya, Medan.
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Pharmaceutical companies focus
Source: PricewaterhouseCoopers, Pharma Vision 2020
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Availability
Availability of trained health care professionals and their
salaries.
• Problem of data validity and reliability
• Lack of health care professionals
• Problem of deployment policy and unclear
decentralization policy
• Without domestically competitive salary
Ahmad Fuady Health Economics, Policy and Law Erasmus University Rotterdam The Netherlands 2013
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National Health Strategic Plan: Infrastructure Targets
• Aim to increase the number of community health centers from 9,133 in 2010 to 10,856 in 2014
• Develop hospitals to achieve a ratio of 1 bed per 1,000 population in 2014
• Indonesia also aims to achieve sufficient numbers of medical professionals:
Source: Indonesia Human Resource for Health; Development Plan, 2010 Regional Health Forum, 2006
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Key mega trends impacting Indonesia
Low Probability of Success
DegreeofImpactLowHigh
High
Urbanization
Generation Y
Increase in Working
Age Population
“She-conomy”
The Middle Bulge
Wealth
Watchers
Future
Economic
Growth
Space
Jam
Connectivity
Innovating to
Zero
E-Mobility
Future Infrastructure
Top Industries of
the Future
“Value for Many”
Business Model
Health, Wellness and
Well Being
Future Energy Power
Generation
Private public
partnerships
E-Governance
“Click-n-Connect”
Mobile users
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What’s Trending for Indonesia Between 2012 and 2015
Indonesia’s per capita expenditure on pharmaceuticals is expected to remain below the US $30 mark by 2015 as
patients continue to be responsible for the bulk of their medical bills
Indonesian health ministry established a supervisory body, the Indonesian Hospitals Supervisory Agency (BPRSI),
in Nov 2011
The University of Indonesia is constructing a new hospital at its Depok campus; the Japan International
Cooperation Agency will provide a loan of $158.0 million to the university to establish UI Hospital
Indonesian Q3 GDP growth came in at a strong 6.5 percent year-on-year for 2011
As of December 2011, the Indonesian health insurance program for the poor, Jamkesmas, covered 76.4 million
people
The goal of JKN is to merge Indonesia’s from 122 million people in 2014 become 257.5 million in 2019
19 % of total healthcare expenditure will be attributed to pharmaceuticals
92 % of drugs on the Essential Drugs List will be low-cost generics
Growth is forecasted to rise to 12% in 2015 and to continue through 2018
200 pharmaceutical manufacturers, of which 70 % are domestic companies and 30 % are multinational
companies
95 % of Indonesia’s drug volume comes from domestic companies
75 % of the industry’s value comes from domestic companies and 25 % comes from multinationals
Source: Frost & Sullivan analysis
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Examples of investments into Indonesia
Philips supplied most of $140m in
medical equipment for the first
dedicated cancer research centre and
the biggest hospital in Indonesia. Philips,
which has group sales of $32bn and
120,000 employees, has set up a
regional headquarters in Singapore with
almost 300 staff with a view to
increasing its share of the medical and
home healthcare products in Indonesia,
the Philippines and Vietnam.
Singapore-based Invida Group, a specialty
biopharmaceutical company announced a joint
venture with the local Indonesian drug
manufacturer PT MUGI Laboratories. Under the
terms of the agreement, Invida will seek to
expand its operations in Indonesia to include the
importation of raw materials and auxiliaries and
the manufacture of pharmaceutical products.
A state pharmaceutical company PT Bio Farma announced that it is to
spend USD 60 million on a facility to produce blood plasma products,
including albumin and Factor IX. The plant will be the first of its kind in
Indonesia and will be built using assistance from South Korean and
Australian pharmaceutical companies, based on guidelines stipulated by
the WHO.
Sources: Company websites, Frost & Sullivan
Siemens in Indonesia has provided support to public and
private hospitals by installing computed tomography, magnetic
resonance imaging systems, and angiographic systems, as well
as conventional x-ray units and life support systems. Siemens
supplied the first 128-slice computed tomography (CT)
Somatom Definition AS+ in Indonesia.
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Pharma 3.0 From drugs to healthy outcomes
Ernst & Young – Global Life Sciences Center, Pharma 3.0 Life Sciences Network Basel, 20 May 2010
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We need to look at the situation from different perspectives…
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…but at the same time make sure that we have a common
focus
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Our sales teams are faced with
Less physician
face-to-face
time
Older
products
Fewer new
‘blockbuster’
brands
Increasing
competition –
both generic
and branded
Managed
care and
market access
challenges
Less ‘new’
clinical data
being
provided by
their
companies
Customers’
increasing
use of digital
media to
source
product
information
The 2014 Guide to Improving Your Field Force Coaching Process, www.acoach.net
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Insight in customer needs makes it possible for us to
identify the right actions and target the execution
2013 – Commercial Excellence Forum
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There are many customer segmentation methodologies – but we
work with four key methodologies
2013 – Commercial Excellence Forum
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There are many customer segmentation methodologies – but
we work with four key methodologies
2013 – Commercial Excellence Forum
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Customer insight is the driver for both customer
segmentation and building your value proposition
2013 – Commercial Excellence Forum
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Segmentation is needed to drive higher profitability through understanding
customer needs and delivering on those needs
Meet Exceed
Relationship
Development
Retain and
develop
Manage
Customer Expectations
Cherish
and tailor
Numberofindividuals
Few
Many
Low HighValue per individual
Unprofitable Marginally
profitable
More
profitable
Very
profitable
Segmentation is an important tool in becoming customer-centric. It is a key enabler of CRM.
“Recognise me, remember me, value me.”
Typically customers are not created equal ..and different “segments” need different
customer strategies to exploit their value
20-30%
40-50%
20-30%
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The operational segmentation help prioritization of time and resources
and understand what to offer to who at what price/discount level
2013 – Commercial Excellence Forum
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Yesterday: Today & Tomorrow:
Targeting Mass customisation Differentiation
Focus Acquisition Retention
Approach How big is my list? Test and learn
Company KPIs Volume targets Value targets
Marketing KPIs Sales volumes Segment objectives (KPIs)
Propositions Sell to all Customer-needs driven
Using segmentation for a ‘Customer Driven Organization’
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Customer Behavior In Indonesia – 9 Trends
Marketeers Dinner Seminar|Customer Insight Tools | Feb 27-29 2012
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The foundation for organic growth, is a strong value differentiation which is
perceived valuable by the customers
2013 – Commercial Excellence Forum
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The value curve can be used to design the customer experience
Finding the Consumer value Curve
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The key metrics for measuring FFE effectively
understand
demand
master product
knowledge
communicate
business benefits
use account plans
use differentiated
metrics
www.mentorgroup.co.uk
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Package sale
Dynamic calls
Affiliate
“labs”
2013/142015/beyond
On-the-go
learning
Navigators of
new data
NEW OPPORTUNITIES FOR REP EXPERIENCE
The new, compelling experiences we
can build position reps as quick-
access experts and leverage our
individual affiliates to improve global
strategy.
76. Moch Kurniawan property all rights reserved.
All the
answers
(in best-fit
media)
Influencer
call plans
and content
Flexible
contact
model
Reconnect
marketing
and sales
Feature-rich
engagement
s
REP EXPERIENCE 2015 BEST PRACTICES
Tools, experiences, and expectations
designed to stand out in a crowded
marketplace—or even just a crowded
waiting room
Driver:
Growing Middle-class Population - Indonesian Banks Association, it is estimated that by 2015, the average per capita income in the country will grow to USD 3,500, thus increasing the middle-class population by 10 million.
Rise in Non-communicable Disease Incidence - According to the WHO 2030 forecast, non-communicable diseases will remain the main causes of death in Indonesia. Cardiovascular disease will account for 31% of total number of deaths in 2030, followed by other chronic diseases at 28%. Cancer will be the third largest cause of death in the country accounting for 18% of total deaths.
Government intervention - Vietnam Government’s health care development plan, which extends to 2020, aims at a doctor patient ratio of 8 for every 10,000 patients pharmacists of 2 for every 10,000 patients, and 25 hospital beds for 10,000 patients.
Restraint:
Per capita healthcare expenditure is far below global average (lowest is Vietnam and Indonesia )
Shortage of professionals -
efflux of medical tourists seeking treatment in other countries - 400,000 rich patients travel to neighbouring countries every year for medical treatment due to lack of quality and timely services in Indonesian public hospitals and limited world-class private hospitals in the country
Overall, Indonesia has made steady progress in health outcomes since the early 1970s. For instance, infant mortality dropped from 118 deaths per thousand births in 1970 to about 28.8 in 2010. However, new challenges have emerged in recent years as a result of social and economic changes. The fast rising proportion of more complex non-communicable diseases, insufficient financing for healthcare, and poor accessibility to healthcare are likely to remain the pertinent issues to be addressed by the policymakers in the next decade.
Public healthcare delivery system is decentralised and organised at multiple levels: provincial, district, and sub-districts.
Puskesmas or government primary healthcare centres, are present in all sub-districts. There were more than 8,000 Puskesmas all over Indonesia in 2010. Each Puskesmas has at least one doctor, and the government has been trying to provide a midwife to all the villages. Around 31.0 percent of the Puskesmas provide in-patient facilities as well.
Pustus or health sub-centres were around 22,200. There are about 8,500 mobile health centres as well.
The private sector also provides primary healthcare services, mostly delivered by physicians in private practice and allied health personnel.
In terms of human resources for health, physician workforce is inadequate to meet the needs of the ailing population, and there are severe shortages of specialists while nurses and midwives are better available throughout the country.
General hospitals occupied close to 80 percent of the total hospitals in the country. Despite the rapid increase in non-communicable diseases, specialist hospitals targeting cardiac care and cancer are considerably low at less than one percent of all hospitals. Conversely, hospitals specialising in paediatric care, maternity care, and mental health are most common.
The health system in Indonesia relies heavily on the private sector and this should be given due importance by the government failing which health indicators (infant mortality, maternal mortality and others) will not be improved. Due to lack of infrastructure and skilled workforce in the public sector, most of the population (even the poor) seek private sector treatment for critical services as childbirth, pediatric diarrhoea, and acute respiratory diseases.
Indonesian investment regulations encourage the employment of local workforce for healthcare services. But the shortage of resources makes it very challenging for the hospitals to attract good talent for its operation. So there is a general apprehension in the minds of foreign investors about the quality of service that could be provided due to lack of local resources. With the intention to boost its healthcare manpower, the Indonesia Ministry of Health has prescribed a series of manpower target ratios in the MOH Strategic Plan 2005 to 2009 for the major categories of healthcare professions by 2010. Based on the total production of healthcare profession in 2008, nursing and midwives are considered the key categories with significant manpower shortages.
The Indonesian government had introduced legislations for healthcare professionals to take up jobs in both the public and private sectors. While from the positive end, this human resource distribution trend may be viewed as a form of resource sharing, a negative impact such as diminishing service quality and less accountability for less incentivized public health service may arise due to the lack of oversight mechanisms for such practices. According to USAID, about 60 to 70.0 percent of healthcare workers in Indonesia currently hold dual employment in the public and private sectors.
Indonesian health ministry established a supervisory body, the Indonesian Hospitals Supervisory Agency (BPRSI), to eliminate irregularities in hospital care. This followed complaints about poor care and medical malpractice. Patients have reportedly received poor service due to a lack of set standards of procedures for services in hospitals in the country. The BPRSI will develop an oversight system to monitor operations in all public and private hospitals. The five member agency will also establish provincial supervisory bodies that will be managed by governors. It is also likely to monitor the proposed implementation of free third-class hospital care for all citizens in 2012.
University of Indonesia started the construction of a new hospital at its Depok campus in October 2011. The Japan International Cooperation Agency will provide loan to the university to build the IDR1.4trn (US$158.2mn) UI Hospital. According to the university rector, Gumilar Rusliwa Somantri, the hospital will be a world-class facility for education and a benchmark for hospitals in the region. The first phase of the construction will establish a new complex for the schools of medicine, dentistry and pharmacy by June 2012.New health service facilities are expected to be charged an enterprise income tax of 10% rather than the previous 28%, while the Vietnam Development Bank is likely to grant loans to projects that concern the expansion and building of new hospitals.
Singapore-based Thomson International and Pacific Healthcare, Malaysia-based Columbia Asia and the first private hospital in Vietnam, called the French Hospital of Hanoi, which is owned by the French company Eukaria S.A. As more patients resort to private hospitals, the government is likely to be forced to step up its facilities to ensure that quality healthcare is made available to the poorest of the poor.
Viet Government has drafted a plan that aims to modernize traditional medicine by 2020. According to the plan, hospitals that offer traditional alternatives to patients will receive new equipment in 2015. According to statistics provided by the Ministry of Health, about 30% of patients nationwide receive treatment from traditional practitioners, of which more than 70% patients recovered from their illnesses
More social. Business customers are exposed to the same dynamics of peer-to-peer networks and opinions that influence individual consumers. The equivalent of Facebook’s “like” button also applies to B2B sales. Many of the one-to-one relationships with key decision makers that sales executives historically relied on to close sales are shifting to one-to-many relationships. Moreover, the actions of important influencers (including senior executives) in the purchasing process are often less visible to suppliers. Customers may be “liking” or “not liking” a prospective offer long before the sales rep has even presented it. For example, an expert blogger with a wide following among, say, electrical engineers can shift perceptions of which supplier has the best next-generation networking equipment. Or a speaker at a trade show—her message amplified by her listeners through digital channels—may have an outsized impact on a CEO’s perceptions of market trends and their implications for different B2B suppliers.
More real-time. Flows of digital information have further democratized business procurement. Our research indicates nearly 50 percent of all B2B purchases will be made on digital platforms by the end of 2015, and expenditures for B2B digital advertising are expected to double by 2018. Empowered purchasers increasingly demand real- time digital interactions supported by tools such as product configurators and price calculators. And they are doing all this while texting, e-mailing, and talking regularly with on-the-ground sales teams, distributors, behind-the-scenes inside sales groups, customer-service call centers, and technical reps. Our research shows that, on average, a B2B customer will regularly use six different interaction channels throughout the decision journey, and almost 65 percent will come away from it frustrated by inconsistent experiences.
More modular. The game also is changing for closing deals with requests for proposals (RFPs). At one company, operations executives were looking to improve process efficiencies and assure better after-sales service. To increase their options, they overrode the purchasing department by requiring six rather than three bids for a product. They also demanded modular RFPs, so cross-functional teams could examine an offer’s details, such as service and financing. With so many gateways of influence, our research not surprisingly shows, two-thirds of B2B deals are lost before a formal RFP process even begins.
Value - market share
Voume - share of customer
the challenge of building customer loyalty, we need to break down shoppers into five main types:
Loyal Customers: They represent no more than 20 percent of our customer base, but make up more than 50 percent of our sales.
Discount Customers: They shop our stores frequently, but make their decisions based on the size of our markdowns.
Impulse Customers: They do not have buying a particular item at the top of their “To Do” list, but come into the store on a whim. They will purchase what seems good at the time.
Need-Based Customers: They have a specific intention to buy a particular type of item.
Wandering Customers: They have no specific need or desire in mind when they come into the store. Rather, they want a sense of experience and/or community
“Deals help justify unnecessary consumption”
“Faster product adoption leads to shorter lifecycle”
“Instant and experiential are no longer oxymoron”
“Idealism is natural counterbalance to consumerism”
“Local is the new sexy”
“I connect, therefore I am”
“Good life makes you have something to lose”
“Making choices feels good”
“My lifestyle doesn’t mean I’m not in shape (denial mode)”
The characteristics of companies that measure well
So what are the key metrics for measuring FFE effectively? Looking at
the common characteristics of companies recognised as having highperforming
sales teams, as researched by RMCI, provides a clue.
They understand demand – who their customer are, what they buy and
when they buy it. These metrics aligned with a robust segmentation process
deliver intelligence that allows companies to deploy their resources where
they are need the most.
They master product knowledge – today’s buyers are savvy, and sales
teams need to know their products and show thought leadership, not simply
be a trusted adviser.
They communicate business benefits – the impact the product or service
has on a business or the function it serves.
They use account plans – as part of sales incentive plans (SIPs) to drive
sales through effective reward and recognition.
They use differentiated metrics – recognition that ‘one size does not fit
all’ from a metrics perspective, resulting in different approaches for each
stakeholder or function, as well as measuring key items at various stages of
the sales process. www.mentorgroup.co.ukwww.mentorgroup.co.ukwww.mentorgroup.co.uk
Business Challenges: The Selling Environment
Competition is intense. Participants also cited new players entering their markets and old players
challenging traditional boundaries of service and product offerings. Differentiation was seen as crucial and
extremely hard to achieve.
Customers are more sophisticated, knowledgeable and demanding. This raises the bar for sales
interactions and requires salespeople to deliver value. Procurement departments are playing a stronger
role in the buying process today. Salespeople need to understand the value drivers in each buying center
and respond effectively.
Acquiring new customers and opening new channels were reported as increasingly important to
growth strategies. Often customer acquisition was tied to customer retention strategies that sought to
expand relationships and increase buying centers in existing accounts.
Profitability has replaced revenue growth as a critical focus of sales organizations. The sales force is
expected to achieve price targets and deliver margins—but also to be more consultative and solutionsoriented.
Commoditization/shrinking markets was a theme in most industries. There is a perceived need to
differentiate through value-added services, innovative product-applications, and insights about customers’
customers.
The roles of sales representative and sales manager are described as more complex and demanding.
The search for talent seemed universal, and expectations that the current sales force could achieve growth
targets were generally low.
All three sales skills correlated significantly with performance, in the following order:
Winning customers (.51)13
Finding customers (.49)
Keeping customers (.28)
Skills in finding and winning customers were highly correlated with sales force performance. In fact, of the 19
factors we considered, these two skills were the strongest predictors of success. While keeping customers
continued to be important, the skills that made the biggest difference in the new sales environment related to
expanding one’s “turf” by competing for new customers more than to retaining existing customers.
Sales Management Skills
On average, the sales executives did not rate their managers as having strong skills—the average rating was 6.8 out of 10. Executives attributed the relatively low ratings to different causes. In some cases managers were former top-performing salespeople who had been promoted due to their sales performance—not their management ability. In other cases the requirements of the sales manager role had changed, demanding a higher level of leadership and management skills than in the past. In general, sales executives viewed sales management as a major point of leverage for their organization and viewed management development as a critical need.
We considered three sales management skills: strategizing (that is, developing a strategy for the unit and helping reps think strategically about their accounts), motivating the sales force, and providing individual coaching and feedback. We had identified these skills in previous research as key success factors14. Although the ratings of both groups were relatively low on all three skills, the higher-performing group rated their managers as significantly stronger in each area—strategizing, motivating, and coaching—than they did the lower-performing group (see Exhibit 8).
The correlations of the three sales management skills with performance were:
Strategizing (.36)
Motivating (.34)
Coaching (.33)
The profile of the manager who is successful in driving performance is one of versatility. The manager must have analytical skills to develop strong business plans and also “people skills” to motivate the whole team and
provide developmental coaching and feedback to individual players.