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Arogya Parivar Improving health at the bottom-of-the-pyramid. Background Arogya Parivar. Our commitment. By strategic access to BoP we can deliver economic value for our investors & social value for the poor people.

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slide2

Background

Arogya Parivar

our commitment
Our commitment

By strategic access to BoP we can deliver economic value for our investors & social value for the poor people

Novartis is a forerunner in poverty alleviation by improving health of the poor, thus enabling better income capabilities

3 | Presentation Title | Presenter Name | Date | Subject | Business Use Only

arogya parivar mission
Arogya Parivar: Mission

To improve healthcare access for the under-served poor located at ‘bottom-of-the-pyramid’ using social-business approach

4 | Healthcare for the poor | AnujPasrija | November 2010 | Business Use Only

arogya parivar background
Arogya ParivarBackground
  • Rural India market – 65% lack access to medication [WHO]
  • 80% are daily wage-earners & 40% earn < $1.25 / day
  • Key healthcare issues: water purification, sanitation, under-nourishment, iron deficiency, vaccinations, TB, & diabetes
  • Low ability to pay: healthcare entirely out of pocket; low affordability for large packs
  • Key obstacle : lack of awareness and weak health-infra

5 | Healthcare for the poor | AnujPasrija | November 2010 | Business Use Only

arogya parivar novartis approach
Arogya ParivarNovartis approach
  • A complete healthcare solution and not just access to medicines
  • Uses ‘CSR-for profit’ principles
  • Built on 4As : Awareness – Accessibility – Affordability – Adaptability
  • Supports development of poor healthcare infrastructure : Micro Credit initiative
  • Complete health value chain : patient awareness to drug compliance

6 | Healthcare for the poor | AnujPasrija | November 2010 | Business Use Only

arogya parivar social business model
Arogya Parivarsocial business model

SOCIAL

BUSINESS

AVAILABILITY

HEALTH EDUCATION

Referral Cards

Collection

Distribution

Medicine supplies & loans from MFIs to pharmacies

Health Camps

with city doctors

Doctors Education & loans from MFIs

Community

Meetings

Drug compliance

7 | Healthcare for the poor | AnujPasrija | November 2010 | Business Use Only

arogya parivar cell team 1 educator 1 supervisor
Arogya ParivarCell team :1 Educator + 1 Supervisor

AROGYA CELL : CLUSTER OF 80 ODD VILLAGES IN 25 Km RADIUS

HEALTH EDUCATOR

  • SPREADS HEALTH EDUCATION IN VILLAGES
  • 2 HEALTH MEETINGS / DAY ~ 140 attendees
  • ISSUES DOC REFERRAL CARD
  • ENSURES PATIENT DRUG COMPLIANCE
  • CREATES PRE- HEALTH CAMP AWARENESS
  • TRAVELS ON FOOT / CYCLE / LOCAL MEANS
  • SELLS OTC PRODUCTS / ALLIED SERVICES
  • SALES SUPERVISOR
  • CELL IN-CHARGE
  • CONDUCTS HEALTH CAMPS & AUDIO-VIDEO VANS
  • DOCTOR DETAILING & PARTNERSHIP WITH LOCAL DOCTORS FOR REFERRED PATIENT
  • BOOK SALES FOR NVS MEDICINE FROM DOCTORS AND PHARMACIES
  • ARRANGES LOANS FOR DOCTORS & PHARMACIES

8 | Healthcare for the poor | AnujPasrija | November 2010 | Business Use Only

arogya initiative framework 4 a of rural marketing
Arogya Initiative Framework4 A of rural marketing

Community address

  • Awareness
    • Patient Awareness: Disease and therapy awareness – local Health Educators
    • Physician Education: Disease and Novartis portfolio education – Cell Supervisors
  • Adaptability
    • Customized Portfolio and Marketing: TB, antibiotics, supplements, GI, pain, Calcium in local languages
    • Local faces in team
  • Accessibility
    • Enhanced Distribution: Through setup of Arogya local sub-distributors & health camps by doctors
  • Affordability
    • Custom small packs with smaller price points

Patient awareness & education

Physician education

9 | Healthcare for the poor | AnujPasrija | November 2010 | Business Use Only

slide10
| AROGYA PARIVAR | Anuj Pasrija | September 2010 | Healthcare for the poor | Business Use Only
arogya parivar n etwork june 2010
Arogya Parivarnetwork June 2010
  • 270 cells * in 11 states
  • 530 Educators & Supervisors
  • 29000 villages with 42 million people
  • 22000 doctors & 18000 pharmacies

* cell = 100 villages over 35 sq. kilometers with avg. 180,000 people

| Arogya Parivar | Anuj Pasrija | August 2010 | Update | Business Use Only

arogya parivar key learning
Arogya ParivarKey Learning

Learning : Consumer behavior

  • Poor also spend on health if counseled
  • Villagers prefer strong, fast-acting drugs to avoid loss of daily earnings
  • Small purchase size but more often due to limited out of pocket
  • Equitably priced smaller packs for BoP 1 & 2 facilitate customer acquisition

Learning : Marketing efficiency analysis

  • Very strong interest in and recall of education programs & health camps
  • A few local parameters drive success: pop. density, pop. purchasing power, density of roads, efficiency of free government programs
  • Trust needs time to be built & word of mouth Influence works better
    • Local KoLs play more role than mass media
    • Local faces in Arogya field team [from NGO background] – A must for credibility
  • Managing patient flow, from awareness to compliance, is essential

13 | Healthcare for the poor | AnujPasrija | November 2010 | Business Use Only

arogya parivar different market different approach
Arogya Parivar different market – different approach
  • Reconfigure ‘way-to-market’ and supply chain solutions
    • Price alone is not the key barrier to medicine access in BoP 1& 2: Ignorance and Infrastructure are bigger challenges
    • Health alliances and partnerships are needed for total healthcare solutions and not just pills
  • Upfront social investments before business growth
  • Participate with government and regulatory
  • Long term market development investments for future middle class

Sustainable CC & Market Access

14 | Healthcare for the poor | AnujPasrija | November 2010 | Business Use Only

arogya parivar outcomes
Arogya ParivarOutcomes
  • Medicine access improved for 42 million people in 28,000 villages
  • Health education to 4* million villagers each year

*Percent of patients reached in community meetings who then visit doctors

15 | Healthcare for the poor | AnujPasrija | November 2010 | Business Use Only

arogya parivar what next
Arogya Parivarwhat next
  • Aim to double access in rural India
  • Portfolio strengthening [ more health alliances & low cost generics ]
  • Geographical expansion : Kenya and some SEA countries under roll out

| Arogya Parivar | Anuj Pasrija | August 2010 | Update | Business Use Only