In the following article, we outline how we approach projects for clients who seek to boost their Consumer Health and Rx. sales by introducing their products into promising foreign markets.
Geographic Locations: Mexico, Brazil, China and Russia
Project Duration: Only 10-12 weeks
One of our recent clients was one of the leading European players in innovative medical device and Rx. Generic niche products. However, this company lacked in-depth knowledge of the Chinese healthcare market and the specific national requirements that the market posed. They asked us for a detailed market overview, followed by a systematic analysis of possible suitable local partners in the Chinese Pharma market. The choice of the right local partner company is one of the most critical factors in both the launch and longevity of any company or product as it enters a new market.
Our other recent clients were companies that mainly focused on OTC and Rx. healthcare products. These companies had in mind to further expand their international product portfolios in Latin America, specifically in Mexico and Brazil, as well as Russia. We supported them to successfully enter the Pharma markets of Mexico, Brazil and Russia.
Our long-term experience tells us to invest enough time to identify the right fitting partner in the first place. It requires a great deal of work to switch partners again after one or two years in case the partnership has not worked well. This is particularly because retail outlets will need to be convinced a second time to sign with the company and wholesalers are sceptical as well. Additionally, companies sometimes decide to collaborate with partners that they recently met at an international exhibition. From our experience, however, such an arrangement very rarely results in a long-term and beneficial relationship with sales growth. Suitable partners are difficult to find, and they may not attend international Pharma and OTC exhibitions at all.
The CPC Systematic Solution:
Our CPC Systematic Local Partner Company Search Process was fine-tuned over the course of the successful implementation of numerous projects throughout the past years. After early discussions we hand over our long list to the client: an overview and analysis of all interesting and possible fitting local company partners in the agreed country e.g. China, Mexico, Brazil and Russia. This is a very time-consuming process, but it is important to seriously consider all potential collaborations. Our expert experience and extensive network enable us to specialize in these specific searches.
Afterwards, we conducted a detailed and in-depth analysis of the companies on the long list, which paved the way for an insight analysis of the top 5 companies with the most potential in the respective target countries; we refer to this group of companies as the target list. Throughout the whole process, we maintained close relationships with our clients and provided regular feedback.
The last step in such projects is the compilation of a short list with the 2-3 most dynamic companies. The final stage of the selection process is then based on a business case, including a three-year plan. We involve the client through each step.
The added value for our clients:
- Save a lot of valuable time and money by avoiding “getting to know meetings”, since we can use our expertise to organise and present the selection process in a short and systematic way.
- Identification of the most suitable dynamic local partner in only 10-12 weeks.
- Sign distribution contracts only 3-4 weeks after meeting with the final candidates in the local market.
Graph by Larissa Hielscher, Serotonin Design