Account Management in times of economic crisis

Transcription

1 Account Management in times of economic crisis Isabel Jäckle Key Account Manager Vetter Pharma International GmbH DHBW - Ravensburger Industriegespräche October 19, 2010

2 Agenda Introduction of the speaker Overview: Vetter Key Account Management and Customer Relationship Management Case Study: Account Management in times of economic crisis 2 / 25

3 Introduction of the speaker Isabel Jäckle 10/ /2003 DHBW Business Administration - International Marketing 10/ /2006 Vetter Pharma Fertigung GmbH & Co. KG - Customer Service 11/ /2008 Vetter Pharma Turm Inc., USA - Junior Key Account Manager 01/ /2009 Vetter Pharma Fertigung GmbH & Co. KG - Key Account Manager Since 05/2009 Vetter Pharma International GmbH - Key Account Manager 3 / 25

4 Agenda Introduction of the speaker Overview: Vetter Key Account Management and Customer Relationship Management Case Study: Account Management in times of economic crisis 4 / 25

5 Vetter Achieving More Through Partnership Independent international specialist in manufacturing of aseptically pre-filled application systems: syringes, cartridges, vials and dual-chamber systems Headquarters in Ravensburg, Germany 2,300 employees Total capacity up to 400 million production units per year Long-term experience and expertise with regulatory authorities 5 / 25

6 The Vetter Sites Vetter manufactures in Southern Germany for the global market Site Ravensburg Schuetzenstrasse, SST 1 Corporate Headquarters Ravensburg 6 Site Ravensburg Vetter South, RVS 4 Site Ravensburg Kammerbruehl, KB 3 Site Ravensburg Schuetzenstrasse, VOB 8 5 Site Ravensburg Holbeinstrasse, HOL 8 Site Vetter Langenargen, VLA 7 Vetter Secondary Packaging Ravensburg South, VSP 6 / 25

7 Our Strategy Vetter is clearly positioned in the global market Core Competences Positioning Services Target Groups Contract manufacturer specializing in the aseptic production of pre-filled application systems i.e. syringes, cartridges and vials Independent International Customer-oriented Vetter Development Service Vetter Commercial Manufacturing Vetter Solutions Global R&D-driven pharmaceutical and biotech companies 7 / 25

8 Systems processed at Vetter Processed application systems for liquid and lyophilized medical substances Dual-chamber syringe with lyophilisate/ solvent, liquid/ liquid: Vetter Lyo-Ject Dual-chamber cartridge with lyophilisate/ solvent, liquid/ liquid: V-LK Single-chamber syringe with tamper-evident closure system V-OVS Single-chamber syringe with staked needle RNS / V-OVS NS Single-chamber cartridge Vial (lyophilized, liquid) 8 / 25

9 Agenda Introduction of the speaker Overview: Vetter Key Account Management and Customer Relationship Management Case Study: Account Management in times of economic crisis 9 / 25

10 Definitions Key Account Management (KAM) is the management of the customer relationships that are most important to a company. Key accounts are those customers who produce the largest economic return for a company or have the potential to do so, or those who are of strategic importance. development of these customer relations and customer retention. Customer relationship management (CRM) is a broadly recognized, widely-implemented strategy for managing and nurturing a company s interactions with customers, clients and sales prospects. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Source: dictionary, 2010_08_27) and wikipedia, 2010_09_01+own definition 10 / 25

11 Sales vs. Key Account Management Customer A USA Sales USA Customer A Switzerland Customer A Germany Sales Switzerland Sales Germany Customer A USA Customer A Switzerland Key Account Manager Customer A Germany 11 / 25

12 The purpose of (Key-) Account Management Develop and maintain business relations with customers / partners on a global scale. Align the company strategically with the customers long-term objectives towards a virtual business and process integration. Responsibility for > identification, screening and qualification of suspects. > driving the process of developing prospects to customer/partner status. > driving the sales process from business opportunity to contract. > cultivate customer relations to secure on-going business and expansion. 12 / 25

13 The Role of a Key Account Manager Key Account Management requires very different skills compared to traditional selling, with the emphasis being on accurate targeting, long term relationship building and strategic thinking. The role of a Key Account Manager is not only the sales of goods and services but also the optimization of customer processes and achieving of better results for both companies (winwin situations). A Key Account Manager is the interface between the company and the customer and represents the customer within a company. 13 / 25

14 Key Account Management operational interfaces E X T E R N A L I N T E R N A L Customer Customer Controlling Customer Service Key Account Manager Customer Supply Chain Mgmt Customer Customer Projektmanagement Legal Department 14 / 25

15 Agenda Introduction of the speaker Overview: Vetter Key Account Management and Customer Relationship Management Case Study: Account Management in times of economic crisis 15 / 25

16 Case Study: Account Management in times of economic crisis Example: pharmaceutical and biotech industry Global pharmaceutical and biotech market Pharmaceutical companies Biotech companies 16 / 25

17 View of global pharmaceutical and biotech market Some Characteristics Largely stable pharmaceutical market during the economic crisis. Demand in pharmaceutical goods is independent of the economic situation. Public Health Sector is a growth market. Growing life expectancy raises demand in medication. Innovation in new therapies and new drugs is triggered by a strong demand. Account Management and CRM is challenged by the critical economic environment. 17 / 25

18 Economic stability Comparison of incoming orders for the manufacturing sector, chemical industry and pharmaceutical goods 18 / 25

19 Global pharma market sales growth Global pharma market sales tops $1.1 trillion with growth in the 5-8% range forecast through 2014 Global Sales Market Growth ,1% 9,1% ,0% 9,0% Sales (US$ BN) ,7% 605 7,3% 650 6,8% 694 6,8% ,5% 7,0% 5,0% 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% Growth over previous year 200 2,0% 1,0% Year Source: IMS Health, April 2010M IMS Outlook through ,0% 19 / 25

20 Challenges for large pharmaceutical companies Pharmaceutical companies are experiencing pressure from a wide variety of sources, > Unprecedented losses of drug sales to generic competition over the coming years patent cliff Datamonitor forecasts that, between 2007 and 2012, the top 50 pharmaceutical companies will face patent expiries on $115 billion worth of drugs > Less FDA approvals but increasing costs for developing innovative therapies > Increased regulatory scrutiny and tougher cost-containment measures from payers to drive down prices, has made the healthcare environment more difficult to operate in than ever before > Mergers & Acquisitions Source: Datamonitor, pipelinereview 2008; modified 20 / 25

21 Challenges for the biotech sector / start-up companies Biotechnology companies are highly dependent on well functioning capital markets to finance their development projects. The crisis is directly affecting the biotech sector by reducing its access to liquidity and credit. In 2009 the IPO (Initial Public Offerings) window was closed, trade sales are difficult for investors. There is less capital available for investors to put at risk, venture capitalists are shying away from what is seen as a risky sector. Very difficult situation, as these companies must continue their development projects without sufficient funding. The industry sector may go through a consolidation, even may have to stop or delay projects and therefore delaying new options for patiens. Source: SCRIP 16 March 2009 and Biotech Industry Organization, / 25

22 Example: Mergers & Acquisitions Change in company structures Change in responsibilities Contacts may change New outsourcing strategies may be the result Focus on customer relationship not as a single transaction but as a partnership Identify ways to support the customer as a whole to become more succesful 22 / 25

23 Lessons learned Understand the strategies, needs and difficulties of companies in this industry sector. Apply different business principles, depending on business models. Cultivate trust and build up a collaborative environment between CMO and customer. For CMOs, the mantra for continued success and higher than average growth in a market that is currently under penetration, is adopting a more strategic approach to partnerships. Companies should look toward providing more value-added services that provide synergy with their existing offerings such as development, analytical and regulatory support, packaging, logistics and consulting services. Source: outsorcing-pharma15-apr / 25

24 Vetter wins the Axia Award 2009 Best Practice in the category Customer Relationship Management Every year, Deloitte & Touche GmbH, a global auditing and consulting firm, grants prizes to small and medium-sized companies in Baden- Wuerttemberg for sustainable and successful management. "Axia" = value, ability, success Titus Ottinger, Max Horn and Udo J. Vetter at the Axia awardsceremony on February 4, 2010 "Vetter was able to convince the jury it should win the award, thanks to the outstanding nature of its customer relationship management. What impressed the jury, in addition to the usual approaches to customer relations that the firm employs, was Vetter s level of customer integration into the product development process, which generated client loyalty and led to new business." (Excerpt from jury statement, 2009 Axia Award, Baden-Wuerttemberg) 24 / 25

25 Feedback? Questions? Thank You for Your Attention! 25 / 25