Leading manufacturer of OTC drugs – the company Bayer Consumer Care (BCC) operates in over 100 countries, including and on the Russian pharmaceutical market, where a stable showing positive dynamics. Recently, the growth rate exceeded the average market level companies. According to IMS Health, in Q1. 2011, this figure reached 25% in value terms and 19% in packages with a total market growth, which was respectively 8% and 22%. What underlies the success of how the BCC plans to consolidate the position achieved and what tasks are now set itself, said Irina Chernomorets, head of Bayer Consumer Care in Russia.
Irina, how do you assess the current position at Bayer Consumer Care OTC segment of the Russian pharmaceutical market?
I am very proud of the results that our team has achieved over the past 3 years. BCC is one of ten companies – leaders of the OTC market, which accounted for 42% of its volume, and takes 4-5 line rating. For a long time we have consistently held the 5th position, but in March this year for the first time out on 4th place, ahead of Berlin Chemie. And although in April, we returned to previous positions, just slightly behind the competitor, the trend of our development suggests that we share with Berlin Chemie 4th place ranking.
The main factor in the success of any company – its products. What drugs BCC form a portfolio of brands and strong leaders in their segments?
Let me not agree with you. It is my deep conviction that the main factor in the success of any company – is its people, their talents, skills, desire to achieve success, striving for knowledge and excellence. Indeed, any manager will tell you that a decent portfolio for promotion – a dream. In this sense, we are very lucky: 19 strong brands in 10 segments of the OTC market. In each of them, we not only demonstrate a positive trend, but growth ahead of the segment as a whole. In particular, a drug for wound healing Bepanten ™ is more than 50% in its segment, means protivogemorroidalnoe Relief ™ – 44% (note that this figure would be much higher in the absence of the current shortage of raw materials), multivitamin preparations for pregnant Eleven ™ – 42%, a stimulator of tissue regeneration Teraflex ™ – 23%, the regulator of calcium-phosphorus metabolism Kaltsemin ™ – 22%. Vitamin adult Supradin ™ in March this year came on a 2-in sales in the package, despite the huge number of competitors. Our blockbuster – Alka-Seltzer ™, which forms a category of drugs to relieve hangover, cure for the common cold Nazol ™, the drug Rennie ™ – the undisputed leader in the segment of antacid drugs, both in packages and in value, as well as to overcome flue Antiflu ™, and, of course, the most famous hit company – Aspirin.
Does the company continues to bring to market new products?
This is part of a strategy BCC, in which, in particular, we now derive the Russian market for children “Supradin.” Our new product is not only a high efficiency, but the original design, safe and comfortable package.
BCC is constantly expanding portfolio of products available through new forms and dosages. What is the reason?
We tried to make our products to meet different consumer preferences, but it is very strict approach to marketing. When we see that the customer really needed at some stage of product variety, we’re going to meet him. For example, if the patient has a cold light, then it is enough to vasoconstrictive drugs. But for those who have a strong cold, already require a combination of medication and essential oils, etc.
How optimal price drugs BCC?
Of course, our products are not cheap, but, in practice, a cheap good does not happen. Our price is above average, I would say that towards the premium. For the money we have at the same time guarantee the quality, safety and efficiency, and this will agree, a lot.
How would you describe the products that Bayer Consumer Care offers the market?
First and foremost, we offer products that improve the quality of human life: it increases the activity and performance. In addition, our products help to cope with problems such as runny nose, colds, hemorrhoids, asthenic syndrome, etc. We offer products of the highest German quality. Are they cheap? No. Good cheap does not happen, as life teaches us. “BAYER” pays attention not only innovative products but also compliance with the highest standards of quality: a multi-control of raw materials and finished products – a standard and guarantee its safety and effectiveness.
How would you characterize the consumers of your products?
It’s adults and children, older people and very young, leading an active and passive way of life, men and women. Actually, anyone can find themselves in need for a product line of BCC. And in this – our competitive advantage.
How to construct your work with potential buyers?
We strive to give to our customers as much information about our products. Honest and open communication – our principle. And how do we do? Yes, perhaps, as well as other equally successful companies: TV, Internet, press.
For any production company urgent problem of distribution of goods. As this issue is addressed in the BCC?
You are right. Questions of distribution, we pay close attention. Russia – a vast country. Without the assistance of logistics providers to provide quality goods distribution is virtually impossible. The question is only who can be trusted with their goods. The choice of distribution channels we can say a lot. For us it is important to monitor the quality of products not only at the stage of its production, but also at the time of shipment and storage. Our partners, distributors, on the one hand, guarantee the safety of our products, and the other – have the opportunity to distributirovat her across Russia – are uniformly and given our promotional activity. These are companies such as “SIA-International”, “Protek”, “Katren,” “Growth”, “Oriole CD.” Relationship with them built on the principles of mutual benefit and partnership. In addition, this year our network managers have been actively working with pharmacy chains, have entered into marketing agreements 200. We are very pleased with this collaboration because it allows us to solve the main task – to ensure the availability of our products on pharmacy shelves, making them accessible to consumers in all retail outlets network. We were also able to provide our colleagues – pervostolnikam full information about our products, that is producing real results. In the future we intend to expand the number of networks that will work in a format that will allow us to significantly increase sales in pharmacies.
Could you talk about how to build the company’s work in the regions?
BCC is the regional representatives of almost the entire territory of Russia, from Vladivostok to Kaliningrad. Regional office of the company totals 340 people. They are true professionals.
Irina, and what problems still remain unsolved for Bayer Consumer Care?
Conducted by our study showed that pharmacy staff often do not associate our brands, of which they are well aware, the name of Bayer, and remember when the word basically unplayable.
What is the reason?
Three years ago there was the integration of Bayer with an American company Sagmel, whose products are well combined and complementary portfolio of Bayer, allowing him access to the new niches (eg, Teraflex ™, Relief ™ or Kaltsemin ™). Despite the fact that integration was successful and the sale of BCC increased significantly the level of awareness about the current production farmspetsialistov Bayer, as it turns out, is rather low. And since many of them do not associate our products with the name of Bayer, which means that the highest German quality, then we lose part of their loyalty. So today we are making every effort to make pharmacists aware and mindful of the fact that each unit of the assortment of our lines – a product of Bayer, which, no doubt, be subject to all of its standards and requirements.
As you know, Bayer cherishes its reputation. And could you give specific examples?
During the integration Sagmel Bayer was forced to cope with the quality Nazola ™. As a result, the company shifted production of the drug in Europe, despite the considerable financial costs. I want to stress that Bayer, redeeming his reputation, does not admit any wrongdoing and is trying to meet high quality standards not only in the EU and Russia. Within this strategy, we are actively working with health authorities, which allows you to monitor the market situation and prevent the emergence of low-quality products.
On April 11, Central Exhibition Hall “Manege” a ceremony awarding the winners of Russia’s highest professional award in the brand building “Brand goda/Effie-2010.” Brand “Nazol” of Bayer won the second prize in the category “Medical Services. Pharmaceuticals” (first prize in this category is not presented). How would you react to this victory?
I am very proud that Nazol ™ has received this award. The resulting award, incidentally, the first after the integration with Sagmel, confirmed that we successfully restored the reputation of this drug. And speaking of awards in general, for me the most important of these are excellent financial performance of the company, our growth, recognition by colleagues, customers’ satisfaction with our products, as well as highly professional and cohesive team of his satisfaction with the work of the BCC.
