China is a top-five priority market for pharma multinational corporations (MNCs) due to its large patient opportunity, improving diagnosis and treatment, and increasing affordability. The strategies for pharma to win in China are also rapidly changing. Product life cycles are becoming more aligned with global markets—focusing more on efficiency for mature and off-patent products after volume-based procurement entry. Faster national reimbursement landing also requires a quick ramp-up and faster expansion into the broader market of smaller hospitals and cities.
At the same time, customer coverage is becoming more complex. Increasingly product launches involve multiple indications and target specialty departments. Access is also becoming more challenging with the number of pharma company-sponsored events and the number of physician details becoming restricted.
We’ve seen pharma MNCs transform their field organizations and engagement models to adapt to this changing China pharmaceutical market by applying these five success factors:
- Have a segment-tailored field force structure. Using product or therapy-area focused teams with a smaller selection of products in top accounts and cities ensures sufficient attention is paid, with portfolio reps carrying a larger selection of products in smaller hospitals and cities to ensure broad and efficient coverage.
- Shift toward multiproduct detailing. Transitioning from detailing one product per visit to detailing multiple products in the portfolio per visit increases efficiency while deepening customer engagement.
- Deploy a “beachhead” pharma customer engagement strategy. Use an established indication or specialty relationship to enter a new disease area to scale a product or indication launch quicker.
- Expand the rep toolbox. Engage beyond face-to-face visits in meetings and increase the use of digital channels.
- Use advanced field performance analytics. Leveraging the wealth of internal sales and CRM data along with external market data helps evaluate the true performance drivers and allows companies to optimize field guidance and efficiently allocate resource investments.
Success factor No. 1: Have a segment-tailored field force structure
It was common in the past to have separate teams for different products to dedicate their focus, particularly during launch. However, now we’re seeing companies increasingly tailor their field force structure to different segments. We see product or therapy area-specific reps with a small selection of products in top accounts and larger cities while deploying portfolio reps with a broader selection in smaller hospitals and cities. This strategy ensures greater focus and share of voice in the largest accounts where competition is most intense. Where accounts are smaller and more geographically dispersed, we’re seeing more geographically efficient deployment.
Success factor No. 2: Shift toward multiproduct detailing
In the past, customer detailing was all about focus. There were many reps detailing single products in a visit to maximize attention on their products. Now we’re seeing a shift toward detailing multiple products per visit, which is more common in mature markets.
Success factor No. 3: Deploy a ‘beachhead’ customer engagement strategy
Accelerating product adoption is more important than it used to be because there’s less runway before you enter national reimbursement and fewer years to maximize revenues. Companies are increasingly leveraging a “beachhead” pharma customer engagement strategy, where they leverage an existing product or therapy area strength to help enter a new indication or launch a new product.
Success factor No. 4: Expand the rep tool box
Access to physicians in China is becoming more difficult. Not only are face-to-face visits more restricted than before but the government has also raised the bar on what types of meetings can be held. We have observed companies finding ways to “expand the rep tool box” by providing more diversified means of engagement. Pharma MNCs are increasingly shifting to favor digital meetings and engagement as a way to reach healthcare providers, offsetting the increased cost of third-party sponsored face-to-face meetings. They’re also adapting rep behavioral KPIs away from face-to-face meetings and increasing more on digital KPIs.
Success factor No. 5: Use advanced field performance analytics
In the past, many pharma MNCs took an “invest first, ask questions later” approach to field force investments in China (companies invested early to build a foothold in the market). Now we’re seeing pharma MNCs being much more rigorous in guiding their field forces in where they should focus their time and resources. ZS has partnered with numerous pharma MNCs to leverage the wealth of internal sales, CRM and channel data that can be paired with external market data to help companies evaluate the true drivers of business performance. These companies can then optimize their investments across channels and segments.
Expanding engagement in the changing Chinese pharma landscape
While the China pharmaceutical market continues to grow, it’s also maturing and becoming more aligned with global markets in terms of the product life cycle. To ensure field force effectiveness in China, pharma companies should evaluate their current customer engagement model and the organizational support provided. Companies that pivot toward this new engagement model today will be best positioned to win in the future as provider decision-making becomes increasingly value based, access becomes increasingly difficult and competition over patients becomes more intense.
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