building reputation to secure future success for life sciences

Building reputation to secure future success for life sciences: Key aspects for successful stakeholder relations

Dr. Hermann-Josef Baaken

The global challenges

Since we started the conference, we are 6,777 people more.

In 2050 we expect more than 9,000,000,000 people on the earth.

Conference Reputation Management – Prague 2013 – # 2

http://www.youtube.com/watch?v=kvRyO9vldx0&list=PL84A454F7C122B376&index=20


http://www.bayercropscience.fr/_swf/Compteur_Interactiv.swf


The UN Millenium Goals 2015

Gap Task Force What happens beyond 2015 ?


Life Sciences are more than pharma

Life sciences are innovation-driven and complexConference Reputation Management – Prague 2013 – # 4

http://www.youtube.com/watch?v=wvy2X-KY0uY&list=PL84A454F7C122B376

http://www.youtube.com/watch?v=wvy2X-KY0uY&list=PL84A454F7C122B376

But Life Science Reputation is critical


http://www.youtube.com/watch?v=Hy5fsnhRcuQ

http://www.youtube.com/watch?v=Hy5fsnhRcuQ

Power of public opinion

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.”

Warren Buffet


It is not an easy way for decision-makers

Receptor Transmitter

Facts

Correct

Abstract

Complex

Emotions

Comprehensive

Personal

Simple

Media and public perceptions have high impact on stakeholders who decide about medications / marketing authorization.


http://www.youtube.com/watch?v=302D8sIQtTQ




Focus crop sciences:Challenges – stakeholder – strategy – communication


Challenges: Food – Fuel – Biodiversity

World population growth

Wealth increase

Rising demand for bio-feedstocks Renewable energy and

biofuels Growth in biomaterials

(“white biotech”)

Increase in caloric intake per capita

Rise in meat consumption and need for feed

Rise in food demand

Less farmland per capita

Increasing acceptance of biotech 9.4

Demand 2030

Required agricultural output growth

Billion tons

Production 2007

7.0+40% Productivity barriers

Rise in yield losses through adverse weather conditions

Disease/insect migration

Water scarcity


Key topic: Innovation Drivers

To increase tolerance of plants to climatic variability Develop new varieties using state-of-the-art technologies Improve plant health and nutrient uptake

Safeguard and increase yields from constant land area Better resource management (targeted use of crop

protection, irrigation technology, fertilizers and resistance management)

Increase yields through innovative technologies (modern seeds, plant biotechnology / GMO)

Expand agricultural production in marginal areas New crops with greater tolerance of drought and extreme

temperatures

Climate change

Limited arable land coupled with rising demand

Research and innovation are the key to mastering the challenges of agriculture


Key topic: Sustainable Agriculture

Sustainability

Environment

SocietyEconomy

Sustainable Agriculture is the only way to meet the challenges of the future

There is a consensus between industry, governmental organisations and society:


“Sustainable agriculture is the efficient production of safe, high quality agricultural products, in a way that protects and improves the natural environment, the social and economic conditions of farmers, their employees and local communities, and safeguards the health and welfare of all farmed species.”

Source: Sustainable Agriculture Initiative (www.saiplatform.org)

The Global Food Crisis is Not Over

“I urge International Fund of Agriculture, FAO and WFP to work together to create a global productivity target for small farmers – and a system of public scorecards to measure how countries, food agencies, and donors are contributing toward the overall goal of reducing poverty.”

Bill Gates (2012)


.

Bill and Melinda Gates

https://www.facebook.com/photo.php?v=10151451477371784&set=vb.40113361783&type=2&theater

https://www.facebook.com/photo.php?v=10151451477371784&set=vb.40113361783&type=2&theater

Pesticides and GMO: A Dilemma

Coexistence of diverse forms of agriculture is vital, whereby the use of pesticides, plant biotechnology and modern breeding methods are important elements for safeguarding.

Studies confirm the safety of pesticides and genetically modified food for human health. Safety of the environment, consumers and farmers is the top priority in all activities. Europe has one of the most extensive and stringent systems in the world for evaluating and

authorizing genetically modified products. Authorization is scientific based but stakeholders ‘ influence is based on non-scientific aspects

and public opinion

Need for intensive stakeholder relations – Participation and transparency is the key


(Safety & Advantages) (felt risk and not recognised advantages)

Scientific & economic facts

Public opinion based onperception & emotions

http://www.youtube.com/watch?v=dsxFZ0rUCoM



Stakeholder Model Agriculture

Life Science

Company

Distributorsseed companies

RetailersAdvisers

Farmer

TraderFood

ProcessorFood

Retailer

Consumer

Stakeholder (e.g. Politicians, NGOs, GOs) / Media

Stakeholder mapping: From stable to table – from farm to forkConference Reputation Management – Prague 2013 – # 14

Target group: Media Relations

Intensify existing media relations approaches and strengthen dialogue with journalists

Position the company as an innovation leader and create reputation for the company strategy

Generate additional media coverage to drive the public discussion

Can Media Relations improve reputation? Knowledge about agriculture (seeds, fertilizer, crop

protection, meet production, etc.) is limited Complex business, difficult to communicate Public awareness of companies in agriculture compared

with competitors could be improved (hidden players). Media: important transmitter in the very special

agriculture sector (b2b) for stakeholder

How can messages be delivered?


Target group: Media RelationsCore topics:

Agriculture: how is farmer‘s daily work New technologies (innovation, plant biotechnology) World Food Supply („Second Green Revolution“)

Actions: Story-telling / Day-of-Live-Stories of researchers Hotline „Expert from the field“: supporting complex topics which

are communicated via press release Invite journalists to media workshops with defined topics Prepare and offer ready-to-use backgrounders, video footage and

emotional pictures Build Communications networks with foodchain partners Social Media positioning (Twitter, Facebook, FlickR, Youtube) Implement internal editorial board to better align existing tools


http://www.youtube.com/v/KpUR2mS19MM?fs=1&hl=de_DE

http://www.youtube.com/v/KpUR2mS19MM?fs=1&hl=de_DE

http://www.youtube.com/watch?v=8KwszwYfY9U&list=PL32B89402CED45F8E

Innovation Communication

Developing a comprehensive and convincing line of argumentation vis-a-vis the so-called „World Food Crisis“: rising global demand for agricultural commodities can only be met by increasing investment into innovationObjectives: Achieving thought leadership in the media with CEO Interviews & bylined articles, media

briefings, press releases, input for key editorials, material beyond the news Partnering with academia and key opinion leaders, i.e. positioning on conferences Positioning of Bayer CropScience proprietary technology in the public Supporting communications activities: print, online and internal communication Presenting the ag companies as part of the solution to feed the hungry planet

Source: Bayer CropScience AG

Best practice

EXAMPLE


Bayer’s strategic approach to strengthen stakeholder dialogue through business relevant topic

Bayer CropScience: Sustainability strategy

Source: Bayer CropScience / * Integrated Crop Management

Ecology

Conserving biodiversity through technologies for increased output Using innovative technologies for adaptation to climate change Promoting Good Agricultural Practices, sustainable land management Agro-ecosystems’ health through knowledge transfer about ICP*

Example: Bayer Tabela Direct Seed Rice Project in Indonesia

Best practice

EXAMPLE


Society

Striving to ensure quality and healthy food in sufficient quantities Improving farmers’ livelihood and driving rural development Transferring knowledge by providing farmer trainings Enhancing living conditions through Public Private Partnerships

Example: Childcare Program in India

Economy

Securing harvests, reducing losses Increasing agricultural efficiency and productivity Optimizing natural resource use Creating win-win solutions

Example: > 200 Food chain partnership projects

CSR: Examples in agriculture

Bayer‘s Baylab for students: Discover science. Be researcher for a day. Not only for schools but for all stakeholder.

As part of Bayer’s Child Care Program in India, the Naandi Foundation has set up Creative Learning Centers. Children who previously worked in agriculture or other sectors are prepared for reintegration into the Indian school education system. In addition, Bayer has opened a Vocational Training Center, where former child laborers can attend one-year training courses to prepare them for more highly qualified employment in agriculture.


http://www.cropscience.bayer.com/en/Commitment/Rural-development.aspx

http://www.cropscience.bayer.com/en/Commitment/Agricultural-education.aspx





Focus health care:Current reputation – challenges – stakeholder – strategy – communication


Pharma: “Big Business”, but trust …


Source: Edelman Trustbarometer 2013Source: VFA Statistics, 2013

Health care market (global)

Bn. US-Dollar

Per regionTechnology

Automotive

Food and beverage

Consumer packaged goods

Telecommunications

Brewing and spirits

Pharmaceuticals

Energy

Media

Financial services / Banks

0 10 20 30 40 50 60 70 80 90

77

69

66

65

62

62

59

58

53

50

Trust (global)

Reputation Attributes and Drivers

Product QualityProduct Transparency

SafetyPharmacovigilance

Research TransparencySupply Integrity

Fair PricingValue

Comparative Effectiveness

Price / ValueQuality & Safety

Economic Impact & Government Partnership

Financial StrengthEmployee Investment

Job CreationGovernment Partnership

Innovation

Bold AdvancementsResearch Efficiency

Sustainable Innovation

Public Health LeadershipPrevention

Disease AwarenessDrug Adherence

Global Health

Responsible MarketingProduct Education

Provider Partnerships

Provider OutreachCompliance

TransparencyEnvironmental Responsibility

Executive Engagement

Ethical Business Practices


Why is Reputation so important?

Need for differentiation from competitors Leverage momentum of product launch to position early as

an innovative company and reliable partner in a special field of therapy

Being recognized as a credible and preferred business partner in a changing and competitive health environment

Conclusion: Use a restricted number of touch points and opportunities

to communicate with relevant key stakeholders Establish and mobilize Key Opinion Leaders, third parties

and patient advocacy groups to cascade the products’ awareness and support

Change from scientific to emotional driven communication


http://www.youtube.com/watch?v=eJCiZ7J4Al4



Attractiveness of employer

The Reputation-Trust-Behaviour Model

Source: pharma marketing, M. Renner, 4/2012, p. 18-21

Quality of Products and Services

Ethical Behaviour

Research and Innovation

Transparency

Stakeholders´behavioural intentions

Stakeholder Trust

Quality of Marketing and Sales

Quality of Management

Social Responsibility

Success of business


COMPANY... is competent

COMPANY... is reliable

COMPANY... is credible

COMPANY... always acts in an open and honest way

COMPANY... demonstrates high customer focus

Take medicines/products made by COMPANY... myself in the case of illnessRecommend my family/friends to take the medicines/products made by COMPANY... in the case of illness

Recommend to my colleagues the prescription of medicines/products from COMPANY... in the case of illness

Prescribe medicines/products from COMPANY... in the case of illness

Key Stakeholder


Influencer• Payors• Regulatory bodies

• Politicians

• Science organisations• societies, e.g. European

Society of Cardiologists

• NGOs

Customers and inciter• Key Opinion Leaders (e.g.

specialized scientists)• Physicians in their special

field (office), e.g. cardiologists

• Physicians in their field (hospital), e.g. Cardiologists

• Clinics• Primary care clinicians• Nurses• Pharmacists• Patient groups • Single patients

Media• Business media• Core medical

media• Key journals for

special therapeutic areas

• Primary and secon-dary care media

• Nursing media• Pharmacy media

• Consumer media • Social media

Life Science Company

Targeted stakeholder communication

Patients, Doctors


Ethical Behaviour Research and Innovation

Governmental Bodies, Politicians

TransparencySocial Responsibility



Payors?


?

Communication Tools

What? How?

Corporate Messaging Credible and meaningful storylines, presentations, speeches („One voice“) internal and external

Employer Branding Communicate existing talent programs, enter ranking lists, position stories („best“ employers)

Media Relations Press briefings, press releases, monitoring

Issue and Crisis Management Monitor health topics and support business, develop Q&A material, train relevant managers

Public and Governmental Affairs Network with political influencers in closed cooperation with Market Access team, representing the company in associations’ committees

Corporate Social Responsibility Identify existing and create new projects, coordinate communication based on global strategy

Corporate Publishing and Branding

External publications and Internet; execute Branding and ensure consistency with Corporate PR

Further ideas for tools and touch points

Patients’needs

Creativeprocess Research Develop-

ment Production Marketing& Sales

Acceptance in general population

Story-telling for new medicines: making patients the heroes and stars

Doctor’s Innovation Club

Think Tank „White Book“

about the future of health

Add-on minibrochure oninnovation

Reporting on success in emerging countries

Roundtable with stakeholders

workshops

Traditional focus of innovation

Fully integrated new a.i. Comm. and communications about therapeutic fields

Innovation events “Lecture on Innovation” Visits behind the scene

Social Media – from now on …


No accuse, please!

Global Pharma Issues toward 2020


Financial crisis: Pricing / skrinking margins

Re-evaluation national healthcare systems

Patents: Generics vs. innovative medicine

Managing regulatory compliance

Need for intensive stakeholder relations – Participation and transparency is the key

Product’s Life-Cycle: potential issues

Launch Maturity DeclineGrowthPre-Launch

First country registration

GlobalMarket Launch

Announcement of Peak Sales Target

New indications /applications

2 3

4

5

Product hitspeak sales

7

3rd Party Licensing Deals

10

11

Generic Defense

Divestment12

Emergency registrations

6

Sal

es

Development / Phase III


1

Safety / Compliance

8

Product Issue / Crisis?

9

CSR: Examples closed to MDGs

Acces to medicine: Daiichi Sankyo in cooperation with PLAN-International (NGO) examined the situations of specific countries in Africa to identify those where progress on the MDGs was lagging and decided to focus its efforts on Cameroon and Tanzania.

Family Planning: The Jadelle Access Program, developed and supported through a partnership between Bayer HealthCare AG, Bill & Melinda Gates Foundation and other NGOs in developing countries with contraceptive access

Education: Novartis International Biotechnology Leadership Camp for top university students


Issue: Access to medicine

http://www.bayer.com/en/family-planning.aspx

http://www.youtube.com/user/Novartis?feature=watch#p/c/DCB91513A0B5E51B



High Reputation is the licence to operate


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