Pharma: New Ways to Women’s Well-Being
Case study and task
Mr Mollet and his problem with women:
You are a young and intelligent consultant. Mr Mollet is the manager of the pharmaceutical company Primo Health AG. A few months ago, Primo Health AG bought a few dossiers, that is, market approvals, for Over-The-Counter medicines in the “Women’s health” market. These dossiers included medication for the care of the intimate area (for all women) and other medications for bone loss (for older women). The Board of Directors has entrusted Mr Mollet with finding strategic partners to expand its product portfolio in the area of women's health. He explains the situation to you: “The products that we bought the dossiers for are indeed associated with the "Women's Health" market, as is usual in the pharmaceutical field. But if you look at things not from the product perspective, but from the perspective of the product’s benefits, then you’d call the sector "Women’s Well-Being". Mr Mollet sketches the situation for you on the back of a napkin:
He says: “As a company we’re active in the pharmaceutical sector. The competitors in this field are other pharmaceutical companies, including Novartis and GSK. But if we extend our business to cater to the benefit promise "Women’s Well-Being ", we can offer other products such as feminine care products. Or have I got this wrong?” “For this, we must revise our current value proposition and find new strategic partnerships. But, I should stress, we really don’t want to lose the focus on pharma.”
You ask: "What do you mean by value proposition? My understanding is that there’s no single definition." Mr Mollet answers: "Yes, I learnt these things during my MBA, and even there the definition wasn’t consistent… To me, the value proposition is what satisfies the customer’s needs. For example, the customer does not want to cure a disease, but she wants to be healthy. In my MBA, the lecturer gave the example of the typewriter: Remington built the 'best' typewriters in the world. But they were driven from the market by the ‘best’ document preparation machine – IBM’s personal computer. The customers didn’t want to write, but to create documents. Therefore, for us, I’m trying to think more in terms of benefit than in product categories..."
You answer: “Thank you; I’ll do my best to help you. But could you specify your current value propostion a bit more?” Mr Mollet explains the business model of Primo Health AG to you.
The business model:
As Mr Mollet speaks, you outline the business model of Primo Health AG on your tablet computer. You jot down the following:
Mr Mollet gives you a satisfied look: “Yes, neatly summarised. If you look at the individual components, then we can change the value proposition, but we need new key partners so that we don’t lose our focus as a company. But then all the content in the other components will also change. I’d be grateful if you could create a new business model for me.”
You summarise the discussion and outline the key points. For company to survive in the long term, you must adjust the following aspects in the business model canvas
• Value proposition
• Limit the customer group (women)
• Identify necessary activities and resources
• Find strategic partners with complementary business model building blocks
• Estimate financial income and expenses
The following conditions have to be met
• In addition to the financial arguments, a SWOT analysis should provide solid arguments that demonstrate why it is worthwhile to invest in the new business model.
You are confident that you can put together a very capable team that solves the case with the internal project manager.
1. Prepare a document to collect the general ‘health’ and ‘well-being’ needs of women of today. Consider trends that strengthen such needs. You can use creativity techniques to identify the needs.
2. How are the needs that you have identified met outside the pharmaceutical industry? Identify potential partners that the company could cooperate with in the context of the case study.
3. Evaluate suitable partners and discuss your recommendations with your coach. Your coach will get feedback from the customer and inform you which partners you should concentrate on as you work on your solution.
4. Prepare a business model canvas concentrating on the ‘key partners’ module. In particular, consider the creation of a joint venture. Use different colours to highlight the specific contributions that will be made by partners within the cooperation.
1. Read the case
2. Study the background materials
3. Check your knowledge by completing the multiple choice questions
4. Create a team that has the necessary skills to solve the case, or join an existing team
5. After you have successfully gathered your team you will be invited to a webinar by your supervisor
6. Solve the case as detailed in the assignment
7. As soon as you have completed the case, your work will be evaluated by instructors, experts, and your team members, and you will receive a certificate and feedback