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Arogya Parivar Improving health at the bottom-of-the-pyramid

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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Arogya Parivar Improving health at the bottom-of-the-pyramid

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  1. Arogya ParivarImproving health at the bottom-of-the-pyramid

  2. Background Arogya Parivar

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. | AROGYA PARIVAR | Anuj Pasrija | September 2010 | Healthcare for the poor | Business Use Only

  11. 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

  12. Impact and learning What next

  13. 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

  14. 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

  15. 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

  16. 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

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