REC CRE: Market Access

Workshop
for the Innovators
Market
Access and
Policies
 Definition of Market Access
The term market access is used to refer to the fact that how the capability of any company or even a country
in terms of how capable they when it comes to selling their goods or services across the borders.

Meaning of Market Access

The market access generally denotes the ability of someone in terms of the extent to which they can reach
out so as to sell their products or services to the consumers. Now the term market access can be used
both in terms of the domestic trade as well as foreign trade.

Although this term ‘market access’ is generally used in the context of the international or the foreign trade
most of the times. Now depending upon the region is it a new place or an entirely different country, there are
certain rules and regulation that are needed to be followed for the trade to take place efficiently and without
any problem.

The market access for goods also means the various terms and conditions, tariffs and non-tariffs, etc which are
set by the country. These are set so that the countries could regulate the flow of goods and services in their
country.
 Market Access
•
Examples
Market access in itself is a broad term. And in the past 5 to 10 years it has been seen that the popularity
of market access has been growing at quite a decent rate. For example, we look at the things that have
increased in trading in recent times, drugs is one of the best examples of it.

• Many of the legalized drugs are being widely used in medicine but the things are that they are not found
everywhere. Now to make medicines and for other legalized purposes, many of the countries have started
trading drugs.

• The country that needs it usually imports them from the countries that are capable of exporting them. In
recent times it has been found that many of the Hi-tech and costly drugs are being traded from one
country to the other.

• Also here during the export and the import of the drugs, the government needs to take extra care of the
fact that both the governments and the healthcare facilities try to cut out the cost of these bills of the
drugs.

• Another good example is of the UK market. in the UK there is the National Institute of the Clinical Excellence,
also often termed as the NICE, is an organization which takes care of the fact that whether or not the
 Market Access
Examples
new treatments that are continuously being innovated are cost-effective or not.
Now for their products to be reimbursed at the cheapest price possible, both the biotech as well as the
pharmaceutical companies have started to work in the direction of gathering ample amount of information
which will be related to the health economic impact and also about the cost affordability of that product.

These companies then have to present all of those data that they have researched in a very convincing way
to the NICE. Now since the whole process is very complicated, there is a Market Access Consultancy which takes
care of all of this. These consultancies help them in guiding them throughout the whole process so that they could
achieve the best result possible.
 Market Access Principles
The basic principles of the Market Access are:

• Market Intelligence
• Market Challenges
• Market Opportunities
• Market Entry Strategy
 Decision Making
Chain
Decisions in the marketing area focus on the value chain (see figure ). The strategy or entry alternatives must
ensure
that the necessary value chain activities are performed and integrated.
In making international marketing decisions on the marketing mix more attention to detail is required than in
domestic
marketing. Below table lists the detail required.
 Market access strategies
• Market access strategies generalizes on the best strategy to enter the market, e.g., visiting the country;
importance
of relationships to finding a good partner, use of agents / partners.

• Strategic planning, due diligence, consistent follow-up, and perhaps most importantly, patience and
commitment are all prerequisites for successful business anywhere in the world. This market necessitates
multiple marketing efforts that address differing regional opportunities, standards, languages, cultural
differences, and levels of economic development.

• Gaining access to different markets requires careful analysis of consumer preferences, existing sales
channels, and changes in distribution and marketing practices, all of which are continuously evolving.

• New-to-market businesses must address issues of sales channels, distribution and marketing practices, pricing
and labeling, and protection of intellectual property. These issues can often be effectively addressed through
an Indian partner or agent. Relationships and personal meetings with potential agents are extremely important.
Due diligence is strongly recommended to ensure that partners are credible and reliable.
• Market access strategies generalizes on the best strategy to enter the market, e.g., visiting the country;
importance
of relationships to finding a good partner, use of agents / partners.

• Strategic planning, due diligence, consistent follow-up, and perhaps most importantly, patience and
commitment are all prerequisites for successful business anywhere in the world. This market necessitates
multiple marketing efforts that address differing regional opportunities, standards, languages, cultural
differences, and levels of economic development.

• Gaining access to different markets requires careful analysis of consumer preferences, existing sales
channels, and changes in distribution and marketing practices, all of which are continuously evolving.
Finding Partners and Agents

New-to-market businesses must address issues of sales channels, distribution and marketing practices, pricing
and labeling, and protection of intellectual property. These issues can often be effectively addressed through an
Indian partner or agent. Relationships and personal meetings with potential agents are extremely important.
Due diligence
is strongly recommended to ensure that partners are credible and reliable.

Market Entry Considerations

For entry into the market, it is essential to identify the target market and find good partners who know the
local market well and are completely acquainted with procedural issues. Foreign investors should also explore
various market options that could include forming subsidiary relationships or joint ventures with a company
based on that country.

Some of the important points for market entry are: the ability to understand the diverse market and strategies
towards specific regions and income groups (i.e. target segments); crafting offerings according to the target
group in order to gain early acceptance; considering the large informal sector into your planning; approaching the
market consistently; obtaining mandatory licenses and approvals; and understanding that import procedures
are one of the key
issues. Proper documentation and understanding of the Indian import procedures will help to ensure smooth entry of
products into the Indian market.
Geographic Diversity

As stated, U.S. companies, particularly small and medium-sized enterprises, should consider approaching India’s
markets on a regional level. Good localized information is a key to success in such a large and diverse
country. For example: The U.S. Commercial Service offices in New Delhi, Mumbai, Chennai, Ahmedabad,
Bengaluru, Hyderabad, and Kolkata provide valuable local information and advice and are well connected with
local business and economic leaders. Multiple agents are often required to serve the various geographic
markets in the country.

The country can be broadly divided into four economic regions as follows:

North India / West India / South India / East and Northeast India

Each economic regions needs to be researched properly to sell your products. Please refer to the attached PDF
(Research on India's different Region )

Research on India's different Region

 Market access policies in
Market Access Policies
India
Govt of India has different market access policies for multiple industries. REC CRE program is an innovation
program for the students, Hence the startup policies would be more relevant.

What is Startup India ?

DPIIT Recognition
Under the Startup India Scheme, eligible companies can get recognized as Startups by DPIIT, in order to access a
host of tax benefits, easier compliance, IPR fast-tracking & more. Learn more about eligibility and benefits
below.

Startup India Kit is for budding entrepreneurs, visionaries and dreamers. This document has every details such
as how to register yourself as a startup, govt schemes, state startup policies etc. Please refer to below attached
document for more info:

Startup India Kit: Startup India KIT

 Market Access Landscape In
India
Market Access Landscape
India has the 2rd largest startup ecosystem in the world; expected to witness YoY growth of 10-12%
~20,000 startups in India; around 4,750 of these are technology led startups
1,400 new tech startups were born in 2016 alone; implying there are 3-4 tech startups born every day
 Market Access Gap
Analysis
Gap analysis is an excellent strategic tool used by management to identify where the company is going and what is
the expectation or the potential of the company. In essence, Gap analysis compares the actual achievement with
the potential achievement to find the gap in the existing strategy. This gap then needs to be filled such that the
company meets its own potential.
There can be many reasons that gaps exist within a company's strategy. Most of these reasons are because of a
changing business environment. In the last decade itself, we have many changes in the business environment. Retail
market has come in leaps and bounds, internet is taking over retail and now mobiles and smart phones are utilizing
internet to get the customers what they need at their doorstep. That is a lot of changes in a decade.
Imagine that you are a very old newspaper company and you only want to continue with traditional paper
distribution. You neither want to have a website, not do you want a mobile app. Slowly but surely, your
newspaper will lose popularity. This is because you are letting go of a majority of potential readers – The
online readers as well as the mobile readers. Thus, at the end if the newspaper company looks at its
downfall, it will realize that there was a gap in the technology present in the market and the technology that
the company used. Due to the absence of technology usage, the company has failed in attracting new
readers.

Thus, gap analysis analyses where the company stands currently, what is the current business environment? And
where the company needs to go and subsequently what the company needs to do to reach its potential. Gap
analysis can also suggest strategies which optimizes the utilization of resources to give the best results
possible.

Another aspect of gap analysis is expectations. These expectations may be from vendors, employees or
customers. If the expectations are not met, there is a gap between the expectations and the actuals. For example
– vendors expect timely payment, but the payments are always delayed. Thus, due to this gap in communication,
the company might be losing vendors. Meeting expectations is another objective of Gap analysis.
Market Access
Planning, Budgeting
, Barriers
 Marketing Plan and Budget
• A marketing plan is a detailed roadmap that outlines your marketing strategies, tactics, costs and
projected results over a period. Your marketing plan and budget keeps your entire team focused on
specific goals – it’s a critical resource for your entire company.
• Some statistics have shown that up to 85% of small- to mid-size companies operate from a budget
only — without a written plan to accompany it. This explains why so many marketers are tactically
focused – they’re figuring out how to spend a defined budget, instead of thinking about goals and
strategies.
• Writing a marketing plan is a time-consuming exercise, but it forces you to think through your strategies
and relevant tactics. A good marketing plan typically includes:

• Financial goals
• Positioning strategy
• Brand strategy
• Product/service overview
• Detailed goals by product, distribution channel &/or customer segment
• Sales plan
• Major marketing campaigns
• Detailed budget
• Dates to review progress
 Marketing
Planning and
Budgeting
 Marketing Planning
and Budgeting

• It takes time to develop a good

marketing plan and budget, but it’s
important because it ties all of your
activities to tangible goals.
• It’s also a great opportunity to focus
on the future, generate new ideas,
and inspire your team. Even a simple
plan is better than none, but when
you invest more effort upfront, you’ll
have a better roadmap toward your
goals.
Market Access Planning and Budgeting
Key
Concepts
Before you begin
& Steps
• Since your plan should address your budget and all of your strategies and tactics, you’ll need to
review your brand strategy, pricing strategy and distribution channels beforehand. You’ll also outline
your major marketing campaigns for the year since they’ll be in your budget.
Set your annual goals
• Design your plan to achieve the goals that you define:
• Quantitative (numeric) goals such as total revenue, profit, number of customers, units sold, and breakdowns
by product or channel as needed.
• Strategic goals — for example, you may want to expand into a new market with a new distribution
channel, or you may need to reposition your brand to reflect a change in your business.
Emphasize your positioning in the marketplace
• Your positioning strategy defines how you’ll differentiate your offering from those of your competitors.
• Your brand strategy defines what you stand for and how you’ll communicate with the market.
Outline any plans for your products & services
• If you need to do anything to strengthen your product line and better support your positioning,
address those issues in your plan.
Develop your tactical sales plan
• The number of sales reps you’ll need and the markets they’ll target
• Whether you’ll need to develop new compensation plans, or hire and train new personnel
• Top priority markets, industries or customer segments; if you have a list of key prospects, include them
• Your plan for managing current customers
• Plans for launching any new distribution channels and driving revenue through existing channels
Outline your major marketing campaigns
• You don’t need to list every campaign — just outline your major promotional plans for the year. You’ll need
to set your budget too, so the more planning you do now, the better. Your plans should include:
• The top three campaigns you’ll run to generate leads, nurture customers, close, and/or market to existing
customers
• The media you’ll use (for example, email, social, print, telemarketing, trade shows, publicity, etc.)
• Tools, technologies or resources you’ll need – for example, a new website, an email service provider,
or a new piece of software
• Your estimated ROI and other financial goals
• Develop a marketing budget
• Budgeting can be a difficult process. Many companies just estimate or base their budget on last year’s
spend. An estimate is better than nothing, but if you’ve defined your major campaigns and needs, you can
develop better numbers.
• You also use ROI to determine the appropriate total budget for your marketing efforts.
• Revisit your marketing plan regularly
• The planning process itself is immensely valuable, but if you don’t review the plan regularly, it’s easy to lose
focus. Periodically revisit the plan & measure your progress.
• After Creating Your Marketing Plan and Budget
• When you’ve finished your plan and budget, it’s time to execute.
• You may need to create new messages, literature, websites or other tools and processes for your
marketing campaigns, but after that, focus on generating and managing your customers.
Pricing ,
Negotiation ,
Product Launch
Strategy
Product Pricing
• When establishing a new company or even after years of existence on the market, it is a big
challenge to set up the right price for your products and services. The dilemma is, if you set
the price too high you risk losing customers or not attracting customers at all, and if you set it
too low, you will probably have no return on your investment and very low margins.
• There are several factors which need be taken into consideration before setting up prices, and
these factors are influenced by current market supply and demand, competition levels as
well as other political and economic influences. During the price planning process, your focus
should lie in finding the right price point where you can maximize your sales and profits. This
usually depends on
your individual marketing goals and objectives.
• In this article we are going to describe the 11 main types of pricing and when it would
be most appropriate to use them.
11 different types of
pricing
Premium pricing
It is a type of pricing which involves establishing a price higher than your competitors to achieve a
premium positioning. You can use this kind of pricing when your product or service presents some
unique features or core advantages, or when the company has a unique competitive advantage compared to
its rivals. For example, Audi and Mercedes are premium brands of cars because they are far above the
rest in their product design as well as in their marketing communications.

Penetration pricing
It is a commonly used pricing method amongst the various types of pricing is designed to capture market
share by entering the market with a low price as compared to the competition. The penetration pricing
strategy is used in order to attract more customers and to make the customer switch from current
brands existing in the market. The main target group is price sensitive customers. Once a market share
is captured, the prices are increased by the company.
However, this is a sensitive strategy to apply as the market might be penetrated by yet another new
entrant. Or the margins are so low that the company does not survive. And finally, this strategy never
creates long
term brand loyalty in the mind of customers. This strategy is used mainly to increase brand awareness and
start with a small market share.
Economy pricing
This type of pricing takes a very low-cost approach. Just the bare minimum to keep prices low and
attract a specific segment of the market that is highly price sensitive. Examples of companies focusing on
this type of pricing include Walmart, Lidl and Aldi.

Skimming price
Skimming is a type of pricing used by companies that have a significant competitive advantage and which
can gain maximum revenue advantage before other competitors begin offering similar products or
substitutes. It can be the case for innovative electronics entering the marketing before the products are
copied by close competitors or Chinese manufacturers.
After being copied, the product loses its premium value and hence the price must be dropped
immediately. Thus, to get maximum margins from their products, innovative companies keep launching new
variants so that customers are always in the discovery phase and paying the required premium.
Psychological pricing
• It is a type of pricing which can be translated into a small incentive that can make a huge impact
psychologically on customers. Customers are more willing to buy the necessary products at $4,99
than products costing $5. The difference in price is actually completely irrelevant. However, it
makes a great difference in the mind of the customers. This strategy can frequently be seen in the
supermarkets and small shops.

Neutral strategy
• This type of pricing focuses on keeping the price at the same level for all four periods of the
product lifecycle. However, with this type of strategy, there is no opportunity to make higher profits
and at the same time, it doesn’t allow for increasing the market share. Also, when the product
declines in turnover, keeping the same price effects the margins thereby causing an early demise.
This pricing is used very rarely.

Captive product pricing

• It is a type of pricing which focuses on captive products accompanying the core products. For
example, the ink for a printer is a captive product where the core product is the printer. When
employing this strategy companies usually put a higher price on the captive products resulting in
increased revenue margins, than on the core product.
Optional product pricing
• It can be frequently observed in the case of airline companies. For example, the basic product of KLM
Airlines is offering or providing seats in the airplane for different flights. However, once the customers
start purchasing these seats, they are offered optional features along with the seats. Examples may be
extra seat space, more drinks etc. Because of this optional product, there is more revenue generated
from the main product. Customers are willing to spend for the optional product as well.

Bundling price
• Ever hear of the offer of 1 + 1 free? In the supermarket, when two different products are combined
together such as a razor and the lotion for shaving, and they are offered as a deal, then we get to
experience
the bundling type of pricing first hand. This strategy is mainly used to get rid of excess stocks.

Promotional pricing strategy

• It is just like Bundling price. But here, the products are bundled so as to make the customer use
the bundled product for the first time. This type of pricing focuses on buying one and getting a new
type of product for free. Promotional pricing can also serve to move old stock as well as to increase
brand awareness.
Geographical pricing
• It involves variations of prices depending on the location where the product and service is being
sold and is mostly influenced by the changes in the currencies as well as inflation. An example of
geographic pricing can also be the sales of heavy machinery, which are sold after considering the
transportation cost of different locations. Click here to read more on geographical pricing strategy.
• Depending on the goals and objectives of your company, and the strategies decided by your
company, you can use any of the 11 types of pricing mentioned above. One can identify what strategy
should be applied by analyzing the market and also the product/service lifecycle they are present in.
Final Pricing
Strategy
• SETTING THE PRICE – Let us now attempt to understand the process of how firms set prices. When does a firm set
prices? A firm must set a price for the first time when it develops a new product, when it introduces its regular
product into a new distribution channel or geographical area, and when it enter bids on new contract work. Is
Setting prices easy ?. It involves making a few guesses about the future. You would want to Know how an
organization should proceed as follows:
• Identify the target market segment for the product or service and decide what share of it is desired and how quickly.
• Establish the price range that would be acceptable to occupants of this segment. If this looks unpromising, it
is still possible that consumers might be educated to accept higher price levels, though this may take
time.
• Examine the prices (and costs if possible) of potential or actual competitors.
• Examine the range of possible prices within different combinations of the marketing mix (e.g. different levels of
product quality or distribution methods).
• Determine whether the product can be sold profitably at each price based upon anticipated sales levels (i.e. by
calculating break-even point) and if so, whether these profits will meet strategic objectives for profitability.
• If only a modest profit is expected it may be below the threshold figure demanded by an organization for all its
activities. In these circumstances, it may be necessary to modify product specifications downwards until costs
are reduced sufficiently to produce the desired profit.
• An organization goes through the following steps in setting its pricing policy
Final Pricing Strategy
There are three pricing methods that can be employed by a firm:
1. Cost Oriented Pricing
2. Competitor Oriented Pricing
3. Marketing Oriented Pricing

Cost Oriented Pricing

• Companies often use cost-oriented pricing methods when setting prices. Two methods are normally used
• Full cost pricing – Can you attempt to explain this? What does a firm do here? Here the firm
determines the direct and fixed costs for each unit of product. The first problem with Full-cost pricing
is that it leads to an increase in price as sales fall. The process is illogical also because to arrive at a
cost per unit the firm must anticipate how many products they are going to sell. The is an almost
impossible prediction. This method focuses upon the internal costs of the firm as opposed to the
prospective customers’ willingness to pay.
Final Pricing
Strategy
• Competition-based approach
• Going-Rate Pricing – In going-rate pricing, the firm bases its price largely on competitors’ prices, with less
attention paid to its own costs or to demand. The firm might charge the same, more, or less than its major
competitors. Where the products offered by firms in a certain industry are very similar the public often finds
difficulty in perceiving which firm meets there needs best. In cases like this (for example in financial services
and delivery services) the firm may attempt to differentiate on delivery or service quality in an attempt to
justify a higher selling price.
• Competitive Bidding – Many contracts are won or lost on the basis of competitive bidding. The most usual
process is the drawing up of detailed specifications for a product and putting the contract out for tender.
Potential suppliers quote a price, which is confidential to themselves and the buyer. In sealed-bid pricing
(i.e. only known to client and not to the other parties tendering for the service), firms bid for jobs, with the
firms basing the price on what it thinks other firms will be bidding rather than on its own costs or demand.
All other things being equal the buyer will select the supplier that offers the lowest price.
Marketing Oriented Pricing
The price of a product should be set in line with the marketing strategy. The danger is that if price is viewed
in isolation (as would be the case with full cost pricing) with no reference to other marketing decisions such
as positioning, strategic objectives, promotion, distribution and product benefits. The way around this
problem is to recognize that the pricing decision is dependent on other earlier decisions in the marketing planning
process. For new products, price will depend upon positioning, strategy, and for existing products price will be
affected by strategic objectives.
Selecting the final Price
Pricing methods narrow the range from which the company must select its final price. In selecting that price,
the company must consider additional factors, including psychological pricing, gain and risk pricing, the influence
of other marketing -mix elements on price, company -pricing policies, and the impact of price on other
parties.
Product Launch Strategy
• Define Your Audience
• Gather Your People
• Create a Media List
• Define Your Measurements for Success
• Create a Schedule for Everything
• Content, Content, Content
• Test Your Product … Again
• Prepare for Your Launch
• Market It
• Be Available