Harvard Case - Dengue - Sustainable Large Scale Vaccine Delivery in Low-Income Markets (A): The Challenges of Vaccine Launches in Emerging Markets
"Dengue - Sustainable Large Scale Vaccine Delivery in Low-Income Markets (A): The Challenges of Vaccine Launches in Emerging Markets" Harvard business case study is written by Philip Parker, Pierfitte Marion. It deals with the challenges in the field of Entrepreneurship. The case study is 3 page(s) long and it was first published on : Jan 25, 2016
At Fern Fort University, we recommend a multi-pronged approach for Sanofi Pasteur to successfully launch its dengue vaccine in low-income markets. This approach leverages entrepreneurship, innovation, and strategic partnerships to address the unique challenges of these markets. The strategy focuses on building a sustainable, scalable, and impactful vaccine delivery model that prioritizes access, affordability, and community engagement.
2. Background
This case study focuses on Sanofi Pasteur, a leading vaccine manufacturer, facing the challenge of launching its dengue vaccine in low-income markets. The company faces several hurdles, including:
- Limited access to healthcare: Many low-income countries lack robust healthcare infrastructure, making it difficult to reach target populations.
- Financial constraints: Affordability is a major concern, as many individuals in these markets cannot afford the vaccine.
- Complex logistics: Distributing vaccines effectively in remote and underserved areas requires robust supply chain management.
- Public perception: Building trust and overcoming vaccine hesitancy is crucial for successful adoption.
The key protagonists are Sanofi Pasteur?s leadership team, tasked with developing a strategy for launching the vaccine in these challenging markets.
3. Analysis of the Case Study
To analyze the case, we can utilize the Porter?s Five Forces Framework:
- Threat of New Entrants: The threat of new entrants is moderate. While developing a dengue vaccine is complex, new players could enter the market with innovative delivery models or lower pricing strategies.
- Bargaining Power of Buyers: The bargaining power of buyers is high. Low-income markets are price-sensitive, and governments and NGOs have significant influence on vaccine procurement.
- Bargaining Power of Suppliers: The bargaining power of suppliers is moderate. Sanofi Pasteur relies on raw materials and manufacturing capabilities, but there is potential for alternative suppliers or partnerships.
- Threat of Substitutes: The threat of substitutes is low. Dengue vaccines are currently the most effective preventive measure against the disease.
- Competitive Rivalry: Competitive rivalry is moderate. Sanofi Pasteur faces competition from other vaccine manufacturers, but the market is still developing.
Further Analysis:
- Market Segmentation: Sanofi Pasteur needs to identify key segments within the low-income market, considering factors like age, geographic location, and access to healthcare.
- Value Proposition: The company must clearly define the value proposition for each segment, highlighting the benefits of vaccination and addressing concerns around cost and accessibility.
- Distribution Strategy: Sanofi Pasteur needs to develop a multi-channel distribution strategy that leverages existing healthcare infrastructure, community health workers, and mobile clinics.
- Marketing and Communication: Effective communication strategies are crucial to building trust and overcoming vaccine hesitancy. Engaging local communities and leveraging trusted messengers is key.
4. Recommendations
1. Leverage Partnerships:
- Government Agencies: Collaborate with national and local governments to integrate the dengue vaccine into existing immunization programs. This can provide access to infrastructure, funding, and expertise.
- Non-Governmental Organizations (NGOs): Partner with NGOs working in the health sector to reach remote communities and provide education and outreach programs.
- Local Businesses: Engage local businesses, such as pharmacies and clinics, to distribute the vaccine and provide services.
- Pharmaceutical Distributors: Partner with established pharmaceutical distributors to ensure efficient and reliable supply chain management.
2. Innovation in Delivery:
- Mobile Clinics: Deploy mobile clinics to reach underserved populations in remote areas. This model can offer vaccination services, education, and health screenings.
- Community Health Workers: Train and empower community health workers to deliver vaccines and provide health education within their communities.
- Digital Platforms: Develop mobile applications and online platforms to provide information, schedule appointments, and track vaccination records.
3. Pricing and Affordability:
- Tiered Pricing: Offer tiered pricing models based on income levels or government subsidies to make the vaccine accessible to a wider range of individuals.
- Public-Private Partnerships: Work with governments and NGOs to secure funding for vaccine subsidies or programs.
- Microfinance Options: Explore microfinance options to help individuals finance the cost of vaccination.
4. Building Trust and Engagement:
- Community Engagement: Conduct community meetings and workshops to address concerns and build trust around the dengue vaccine.
- Local Influencers: Partner with local leaders, religious figures, and community health workers to promote vaccination.
- Social Media Campaigns: Utilize social media platforms to raise awareness about dengue and the benefits of vaccination.
5. Sustainable Business Model:
- Social Impact Investment: Seek investment from impact investors who prioritize social and environmental returns alongside financial returns.
- Pay-for-Performance Models: Explore pay-for-performance models where funding is contingent on achieving vaccination targets and reducing dengue cases.
- Cost-Effectiveness Analysis: Conduct cost-effectiveness analyses to demonstrate the long-term benefits of vaccination and justify investment.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: Leveraging Sanofi Pasteur?s expertise in vaccine development and manufacturing while partnering with local organizations to address specific market needs.
- External Customers: Meeting the needs of diverse populations within low-income markets by offering affordable, accessible, and culturally sensitive solutions.
- Competitors: Staying ahead of the competition by developing innovative delivery models and building strong partnerships.
- Attractiveness: The recommendations are expected to improve access to the dengue vaccine, reduce disease burden, and generate positive social and financial returns.
6. Conclusion
Sanofi Pasteur can successfully launch its dengue vaccine in low-income markets by adopting a multi-faceted approach that combines entrepreneurship, innovation, and strategic partnerships. This strategy prioritizes access, affordability, and community engagement, ensuring a sustainable and impactful vaccine delivery model. By embracing these recommendations, Sanofi Pasteur can contribute to improving public health and achieving its business objectives in these challenging markets.
7. Discussion
Alternatives:
- Focusing solely on government procurement: This approach could limit reach and potentially exclude vulnerable populations.
- Adopting a purely commercial model: This could result in high prices and limited access for low-income individuals.
Risks and Key Assumptions:
- Political Instability: Political instability in some countries could disrupt vaccine distribution and program implementation.
- Vaccine Hesitancy: Overcoming vaccine hesitancy requires robust communication strategies and community engagement.
- Funding Challenges: Securing sufficient funding for vaccine subsidies and program implementation is crucial.
8. Next Steps
- Develop a comprehensive business plan: Outline the strategy, target markets, partnerships, and financial projections.
- Pilot program implementation: Launch pilot programs in selected markets to test and refine the approach.
- Build a strong team: Assemble a team with expertise in vaccine delivery, public health, and market development.
- Monitor and evaluate: Continuously monitor and evaluate program performance to identify areas for improvement and ensure sustainability.
By taking these steps, Sanofi Pasteur can successfully navigate the challenges of launching its dengue vaccine in low-income markets and contribute to improving public health in these regions.
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Case Description
This case explores the difficulties involved in commercialising vaccines in low-income settings. The focus is the dengue vaccine, launched at the end of 2015, which was first commercialised in emerging markets. It considers issues of affordability and distribution, higlighting the need for business model innovation in all industries.
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