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Finding the best-fitting local partner without expert support may be extremely problematic for foreign companies looking to enter this profitable and rapidly growing healthcare market. In this article we are going to explain what the major hurdles encountered by companies could be, and how to overcome them.

Infographic : Mexico Forecasted Growth of OTC and Pharma market

Mexico’s Consumer Health and Pharma Business Environment and its Challenges

The selection of the most suitable local partner company is one of the most crucial variables in the launch and long-term viability of any company or product entering a new market.

To achieve business success in Mexico, a thorough awareness of the complex cultural milieu and local market knowledge are required. We support our clients in selecting a local partner company in Mexico that meets their  specific needs.  This is done through our expertise and considerable network; with experience in market entry strategies for Mexico, COFEPRIS insights, and awareness of the local business climate.

Challenges Selecting the Most Befitting Partner Company in Mexico

Our long-held experience in the market tells us that in the absence of sound strategy and experience, identifying the best-fitting local partner can result in a series of issues for a company trying to enter Mexico. Here are some of the usual problems:

• If you start your local partner identification on your own you will usually have to conduct many “get-to-know-you meetings” often with no substantial outcome.

• Additionally, by selecting the wrong partner and trying to find a new one, you may lose up to 2 to 3 years of business. This is particularly true because retail outlets will need to be convinced a second time to sign with the local partner company, and wholesalers may become skeptical regarding the viability of your OTC and pharma products.

The Chameleon Pharma Consulting Group Systematic Solution:

In this particular situation, we began with our Systematic Local Partner Identification Process with our client, which helps to identify good local partner companies more efficiently. We have fine-tuned this system over the last 10 years, following each international project we have completed. The process goes as follows:

Infographic 2: Systematic Local Partner Identification 

After early discussions with all possible local partners, we hand over our Long List to our client:

• This is an overview and analysis of all interesting and possible fitting local partner companies in the country. Around 40% of the work is done by this step. 
• We systematically screen the best fitting 60-70 qualified local partner companies.
• Our expert experience, extensive network, and series of business meetings held with potential partners enable us to specialize in these specific searches and identify the best fitting 7-9 local companies.

Target List

As the next step, we conduct a detailed and in-depth analysis of the companies included in the long list:

• The result of this step is a compilation of insightful analyses of the product portfolio of the top 4-5 best-fitting companies with the most potential in the Mexican market; we refer to this group of companies as the Target List.
• By this point, we have engaged in more frequent business meetings with the potential partner companies.
• We systematically rank potential companies according to defined KPIs to support our clients in their decision-making process.
• Throughout the whole process, we maintain a close relationship with our clients and provide them with regular feedback.

Short List

The last step in the project is the compilation of a shortlist with the 1-3 most dynamic and best-fitting companies:

• The final stage of this selection process is based on business cases provided by the local partners. Among other things, it includes a three-year business case for a product launch, price, and sales projections. 
• We involve the client in each step. Normally, a distribution contract is signed 3 or 4 weeks after the joint meeting with the final candidates and our client.

We at Chameleon Pharma Consulting Group support our clients to expand to new healthcare markets. With our fine-tuned Systematic Local Partner Identification process, we can help your self-medication and pharma products to find the right local partner in the region you want to enter.

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