The Success Strategies of Small-Medium Vet Pharma Companies

(An Independent Survey)

 

The survey conducted among North Indian Vet Pharma Companies to assess their successful strategies to achieve good total sales and higher rate of growth per year.

 

Participants : Forty companies with sale of 5 crore and above.

Period : Survey conducted in 2021-22

States : Companies included from Haryana, Punjab, Rajasthan, UP, Bihar, Uttrakhand, Gujarat and Delhi.

Launch of Companies : Between 2000-2020

Management : Single owner to maximum three partners

How ? : The Managing Director/Partners were interviewed. They were asked 10 questions in one to one communication. The confidentiality of facts and figures conveyed is very strictly maintained.

Questionnaire :

1. Age of Managing Director/Partner
2. Their Job/Business before founding Vet Pharma Company
3. Year of Company foundation
4. Number of Products marketed at present
5. Product Mix

Segments : Injectable     Bolus  Capsules  Powder     Suspension

Range :  •Antibiotics     •Galactagogue •Ecobolic •Analgesic

• Parasiticides Hormonal •Hepatoprotective •Feed Supple/Nutrition
• Gastro •Mastitis •Intrauterine  •Other treat
• Sales (total) : 2019,                    2020,                   2021        Average Annual (Growth) :                         2018-2019,        2019-20,            2020-21 Average Growth
• Field Force 2019                     2020                    2021

VSO, ASM, RSM

 

Area of Operation : States 2019              2020              2021

 

Number of Products : 2019              2020              2021

 

Success Secrets

Selection of customer Focus on Dairy Farmers

III. Meeting Budding Practitioners                   IV. Regular Retailer Call

Product Range VI. New Unique formulations

VII. Visual Aid (Catchy)                                       VIII. Leave Behind

Regular Product Knowledge to Staff X. Detailing Product to Staff

Training Field Staff XII. Personal Motivation FS

XIII. Incentive/Payment to Staff                       XIV. Technical Advisor/Mentor

FINDINGS

• Out of 40 companies, the success rate was assessed on 2 parameters

(a) Total Sales (b) Annual growth rate

Classified in 3 groups A, B, C 12 were most successful (A) 18 were successful (B)

10 felt successful but not satisfied in growth (C)

•         Age of owner/partners when founded companies

27-30 years 30-33 years     C. 33-35 years

(Young entrepreneurs are most successful)

•         Job or Business before this venture :

• 30 – Worked as VSO/ASM/Partner in other company
• 6 – W/S, Retailers/Worked in Retail Shop
• 2 – Practitioners
• 2 – Not associated with Animal Health

Success on the basis of previous job Success in (A) – a  (B) a,b                                     (C) c, d (Worked as VSO/ASM more successful)

•         Company foundation

A 15-18 years or more    B. 10-12 years    C. 5-7 years

•         Number of products at time of survey with these

20-25 B. 15-30 C. 10-15

•         Product Mix

Segment              A. Bolus, Powder, Suspension, Injectable, Intrauterine

Injection, Powder, Suspension, Bolus

Powder, Suspension, Bolus

Range of products        A. for Ten Indication B. for Twelve Indication

for Eight Indication (out of 12)

(Good sales from Products for Main needed indications)

•         Sales Average Sale per annum

10-16 crore B. 5-9 crore C. 4-5 crore

•         Average Growth in 3 years

12-18% B. 8-14% C. 6-12%

•         Field Force

35-55 VSO B. 20-35 VSO C. 10-18 VSO

8-12 ASM                              5-8 ASM                                 2-3 ASM

1-3 Sr.Managers                1 Sr. Manager                     0 Sr. Manager

•         States covered

A.5-7 states B. 5-6 states C. 2-3 states

• Number of Products
• 2019       2020              2021
• 1. 15-18 18-22             20-25
  2. 12-15 16-25             15-30
  3. 6-10 8-12             10-15

(Less the product more success in sales)

Success Secret (As conveyed)

Companies in A Group

• Selection of customers
• Selection of VSO
• Training by Technocrat and experienced in Industry
• Better product knowledge of field staff
• Very good incentives
• Rehearsal of Detailing in meetings
• Launch of New Product with details by expert

Companies in B Group

• Good Hindi/Punjabi leave behind
• Unique Products
• Good sampling
• Follow up with Buyers regularly
• Help from Retailers
• Good gift on festivals

Companies in C Group

• Price of Products lower than competitive products
• Percentage commission on achieving Sale Targets
• Direct sale to Dispensing Practitioner (Supplies)
• Booking Farmers directly
• Less product more focus
• Gift to Practitioners

OVERALL CONCLUSION

To achieve Good Total Sales and two digit growth every year –

 

Strategy	Score
•         High Potential Practitioners of Territory as customers	10
•         Unique Products for Performance and Health	5
•         Product knowledge, Animal knowledge, Terminology understanding	10
•         Detailing with confidence as planned and given in black and white	10
•         Better way to launch a new product one or two in a year	10
•         Changing the product focus every month/seasonal need	3
•         Ideal visual aid in Hindi/Punjabi, Leave Behind, All Product Poster	7
•         Establish product as Brand of Company by good detailing every time	5
•         Training and Refresher of VSO about Sales, Detailing, Animal, Diseases, Nutrition, Parasites, Microorganisms, Product	15
•         Motivational training of Managers	10
•         Making Product available with outlets/retailers by regular visit	7
•         Promotion to direct consumers (Animal owners, Farmers)	2
•         Personal Rappo of Management with Top Practitioners	3
•         Inputs as Gifts, Utility item, Prescription Pad, Reading Books etc.	3

BY-DR VK NARULA