Animal Healthcare industry is facing many challenges in context of marketing mix and many opportunity those are in favors of industry .Today’s animal healthcare sector is going through a serious metamorphosis, striving to emerge from the sales war-blockbuster era and adapt to the realities of a new commercial landscape in which familiar sales approaches are proving increasingly ineffective

1. © 2015 Animalhealthindia.com;
www.animalhealthindia.com
CHALLENGES
&
OPPORTUNITIES:-­‐
INDIAN
ANIMAL
HEALTHCARE
INDUSTRY
K.S.Niranjan
&
Dr.Sandeep
Juneja

2. Challenges
of
Products
Copy
cat
branding,
lack
of
posi@oning
which
create
compelling
value
proposi@ons
for
each
market
segment
Compe@@ve
market,
where
the
differences
between
new
products
are
more
incremental,
and
limited
development
of
new
differen@ate
products
The
focus
shiF
from
tac@cal
to
product-­‐centric
selling
approach,
market
is
intense
and
some@mes
extremely
aggressive
marke@ng
and
selling
strategies
adop@ng
Forward
integra@on
by
third
party
manufacturer
thus
create
parallel
products
compe@@on
in
animal
health
market
Companies
are
taking
exis@ng
products
they
have
developed
for
human
and
are
adap@ng
them
for
pets.
© 2015 Animalhealthindia.com

3. Payer
are
substan?ally
more
demanding,
where
there
is
a
direct
sales
to
customers.
Strong
preferences
of
economical
products
by
veterinarian
as
well
as
customers.
Impose
of
Excise
Duty
on
the
cost
of
manufacturing
to
the
MRP
thereby
making
the
finished
products
more
costly
and
less
profitable
to
the
companies.
India
remains
one
of
the
few
developing
markets
where
drug
manufacturers
have
significant
pricing
flexibility,
Governments
are
drawing
p l a n s
t o
e ff e c ? v e l y
manage
medicinal
cost
by
switching
from
branded
drugs
to
generics
version
Strategy
is
primarily
focus
on
cost
leadership
and
different
pricing
system
exist,
hence
changes
frequently
Challenges
of
price

4. !!!!Challenges!of!Distribu2on!!
Cost%pressure%on%the%industry:0%Margin%driven%
to%cost%driven,%volume%vs.%value%
Excess%inventory%at%various%points%in%the%supply%
chain%cause%excess%expiry%and%unliquidated%
inventory%
The%final%leg%of%the%drug%distribuAon%chain%is%
excepAonally%expensive%and%inefficient%in%most%
of%the%regions.%
Changing%commercial%business%model:0Indirect%%
to%direct%markeAng%&%sales%
Retailers/farmers%%buyer%power%is%somewhere%
high,%exclusively%in%medicinal%feed%supplement,%%
CollaboraAon%and%partnership:%Single%to%
collaboraAve%supply%chain%

5. Promo?onal
Challenges
Personnel
selling
is
main
methods
of
promo?on,
required
more
human
resources
Unindustrialized
trend
of
promo?onal
inputs
Free
samples
has
extra
cost
for
organiza?on
and
major
concern
Extensive
travelling
by
business
&
func?onal
level
management
is
expensive
and
?me
taken
Paid
form
or
mass
communica?on
is
insignificant
Public
rela?on
form
of
promo?on
is
negligible
© 2015 Animalhealthindia.com

6.
The
performance
of
individuals
varies
drama?cally
with
high-­‐performers
(normally
the
top
20%
of
individuals)
genera?ng
substan?ally
more
than
the
average
This
is
difficult
and
costly
to
iden?fy
high-­‐
performers
organiza?ons
because,
all
of
them
are
equally
doing
well.
There
is
a
Shortage
of
people
with
the
appropriate
mix
of
competencies,
skills
and
industry
knowledge
in
every
organiza?on.
A]ri?on
rate
is
also
major
concern
Tradi?onal
hiring
techniques
have
tended
to
be
inward-­‐looking
and,
in
many
cases,
have
perpetuated
problems
High
training
and
retraining
cost
to
the
organiza?on
Challenges
of
Human
Resources
© 2015 Animalhealthindia.com

7. © 2015 Animalhealthindia.com;
www.animalhealthindia.com
Management
of
product
life
cycle
with
brand
and
line
extension
Products
differen?a?on
strategy
has
enormous
market
poten?al
in
all
segment
Enormous
market
poten?al
for
biosecurity
products
range
in
ca]le
segment
Opportunity
in
Companion
animal
grooming
segment,
owner
are
willing
to
pay
premium
price
Opportunity
to
provide
a
basket
of
new
microbial
products
range
at
economical
price
Products
Opportuni?es

8. Price
Opportuni?es
Customers
are
willing
to
pay
premium
price
for
high
efficacy
and
different
product
Very
few
products
comes
under
drug
price
control
as
compare
to
human
pharmaceu@cals
Veterinary
prac@ces
have
today
generally
moved
their
charging
structures
to
service-­‐based
pricing
Very
liLle
price
elas@city
associated
with
price
increases
is
a
major
factor
contribu@ng
to
the
high
profitability
of
the
animal
health
industry
Adapta@on
of
more
flexible
approach
to
pricing
© 2015 Animalhealthindia.com

9. Places
of
Opportuni?es
Large
infrastructure:-­‐
8790-­‐Veterinary
polyclinic-­‐
26000-­‐
Dispensary,330-­‐Diagnos@c
lab
&
27-­‐vaccines
Mfg
units
Emerging
trend
of
E-­‐commerce
to
promote
&
sales
companion
animal
health
products
Super
Bazar,
E
choupal
and
mega
events
show
Collabora@on
with
women
NGO/
Bachat
gat/
coopera@ve
socie@es
Joint
collabora@on
in
CSR
ac@vi@es
with
others
business
houses

10. Promo?onal
Opportuni?es
Broad
coverage
of
untapped
poten?al
at
the
very
bo]om
of
pyramid,
through
following
promo?onal
method
• Adver@sing
in
regional
news
channels
• Collabora@on
with
kisan
seva
kendra
• Par@cipa@on
in
kissan
mela,
caLle
fair,
haat
etc
• Informa@on
&
educa@on
through
jingles
on
Radio
• Informa@ve
wall
pan@ng
in
rural
villages
• E-­‐commerce,
apps
and
others
digital
media
placorm
© 2015 Animalhealthindia.com

11. Peoples
opportuni?es
Expansion
of
territory,
create
more
employment
opportuni?es
and
less
travelling
cost
Competent
and
Right
sales
force
size
in
all
poten?al
markets
to
serve
all
types
of
customers
Accurate
segmenta?on
tend
to
more
comfortable
with
salespeople's,
working
with
those
segment
Mobile
technology
(tablets,
laptops,
PDAs)
provide
the
opportunity
for
sales
peoples
to
send
in
products-­‐specific
feedback
directly
to
the
brand
team
Recruitment
of
academician/researcher
for
innova?on
and
marke?ng
research
in
animal
healthcare
industry
© 2015 Animalhealthindia.com

12. Our Works – Aligned to Your Requirements
© 2015 Animalhealthindia.com
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• Animal Health Industry Data
• Deep Dive Segments’ Data
• Species’ Wise data
• Trends & Forecasts
Anything You Need, Any Time
Your Need & Any Where You
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• Dealer Audits
• Retail Audits
• Product Retrievals
Custom Solutions
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• Brand
• Strategy
• Innovation
• Customer
• Portfolio
Comprehensive Solutions for All Business Needs

13. Get in Touch With Us…
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