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Engaging India's Rural Healthcare Market

Novartis launched the Arogya Parivar program in India to tap into the large and growing market at the bottom of the pyramid (BOP). The program aimed to spread healthcare awareness and access to medicines in rural India by creating a network of local health educators who would educate communities and refer patients to partner doctors and pharmacies. Initial pilots were conducted in a few states. Challenges included the resource intensity of awareness activities and inconsistent involvement of local partners. Novartis then shifted strategies to leverage existing government health workers and local women's self-help groups to more sustainably spread health messages and referrals in rural communities.

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Amit Ranjan Prasad
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485 views2 pages

Engaging India's Rural Healthcare Market

Novartis launched the Arogya Parivar program in India to tap into the large and growing market at the bottom of the pyramid (BOP). The program aimed to spread healthcare awareness and access to medicines in rural India by creating a network of local health educators who would educate communities and refer patients to partner doctors and pharmacies. Initial pilots were conducted in a few states. Challenges included the resource intensity of awareness activities and inconsistent involvement of local partners. Novartis then shifted strategies to leverage existing government health workers and local women's self-help groups to more sustainably spread health messages and referrals in rural communities.

Uploaded by

Amit Ranjan Prasad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Arogya Parivar

 The BOP (Bottom of the Pyramid) i.e. the poorest of the poor was a potentially
huge market in developing countries with larger segment of low-income
population (3.8 billion) with no accessibility to all the basic facilities, specifically
in health care.
 Novartis, headquartered in Switzerland, came into existence in 1996 with
primary focus on healthcare along with diversified portfolio of health care
solutions like innovative medicines, generic pharmaceuticals, preventive
vaccines etc.
 In order to tap BOP markets, the company embrace the concept of “shared
value” which meant creating economic value in a way that creates value for
society by addressing its needs and challenges.
 But, it had barriers to entry- missing skills and knowledge, limited market
information, ineffectual regulation, inadequate infrastructure, limited access to
financial products and services.
 A team assembled to tap the emerging markets mainly by the pharmaceutical
companies due to growing demand for modern medicines from new middle
class. Commercially viable BOP opportunities were Brazil, India, Russia and
China.
 India was the first priority due to volume and density of population, presence
of private healthcare, registration and licensing of an array of products already
done.
 Study of Indian healthcare Market- poor were more exposed to infectious
diseases and access to healthcare was different- started with a clean slate-
needed accurate info about local health consumption patterns, the way
patients’ sought treatment, cultural aspects, existing barriers, 730 million in
rural areas.
 India’s Health Infrastructure:
-Doctor/patient ratio=0.6/1000, No. of beds = 1.5/1000.
- 80 % Specialists in urban areas
-difference in life expectancy- 12 years longer for urbanites than rural.
-Doctor patient ratio national-1:1700, rural =1:25000
-Infrastructure consisted CHC(Community Health Centers) in Tehsil towns,
Primary Health Center in Blocks and sub centers in villages for over 5000 people.
 Plan of Action:
(i) Creating a team to be Health Educators (HEs) who would go around the
villages, spread awareness, identify households, educate them on TB,
convincing them on reliability of paid services for treatment.
(ii) Outsourcing the work of HEs to independent local entrepreneurs to
cover certain distances.
(iii) Partnering with pharmaceutical companies to enlarge drug portfolio.
 Conducted 3 pilot programmes in Maharashtra and UP. Partnered with
Teamlease (Recruitment Agency) to hire HEs (who understood science behind
drugs but not creative), consumer goods people (understanding the rural
customer but needed training on science) and NGO (compassion with
population and understanding health issues). These people were not allowed
to recommend drugs and refer potential patients to doctors using a referral
card with a code number.
 Community meetings were held with both men and women.
 Distribution of advisory leaflets.
 Developing a network of doctors and chemists through Sales Supervisors to
conduct health camps, no restrictions on drugs to prescribe and no criticism to
DOTS programme.
 Challenges:
-Van promotion was expensive and resource intensive.
- Time allocation constraints.
-No standardisation and consistency on the part of actors for nukkad natak
-Problem of getting the A/V equipment
- did not like to travel owing to their own businesses.
 Novartis adopted the strategy of motivating existing distributors. (Female HEs)
Tapped SHGs, (NRHM), ASHA women.
 Produce separate brand for BOP market for rural areas at cheaper prices and
thinner margins.

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