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Harvard Case - AstraZeneca(China): Leveraging Offline Doctor-Patient Relationships in Online Healthcare Service Platform

"AstraZeneca(China): Leveraging Offline Doctor-Patient Relationships in Online Healthcare Service Platform" Harvard business case study is written by Chen Lin, Geng Liu, Jeongwen Chiang. It deals with the challenges in the field of Sales. The case study is 21 page(s) long and it was first published on : Apr 29, 2022

This case study solution recommends a multi-pronged approach for AstraZeneca China to effectively leverage offline doctor-patient relationships in their online healthcare service platform, Doctor Connect. This strategy focuses on building a robust sales funnel, optimizing customer acquisition, and enhancing customer retention through a combination of digital marketing, sales enablement, and data-driven insights.

2. Background

AstraZeneca, a global pharmaceutical company, faces the challenge of effectively connecting with Chinese healthcare professionals and patients in the rapidly evolving digital landscape. Their Doctor Connect platform aims to bridge this gap by offering a digital platform for doctors to interact with patients, share medical information, and access relevant resources. However, the platform struggles to gain traction and achieve its full potential.

The case study focuses on AstraZeneca's efforts to leverage existing offline doctor-patient relationships, a key asset in the Chinese healthcare system, to drive adoption of the Doctor Connect platform. The main protagonists are the AstraZeneca China team, responsible for developing and implementing a successful strategy for Doctor Connect.

3. Analysis of the Case Study

This case study calls for a comprehensive analysis of AstraZeneca's current sales strategy, focusing on the following key areas:

  • Customer Acquisition: The platform needs to effectively attract both doctors and patients. The current strategy relies heavily on offline relationships, which is inefficient and lacks scalability.
  • Sales Funnel: The Doctor Connect platform lacks a defined sales funnel to guide users through the onboarding process. This leads to a high drop-off rate and low platform engagement.
  • Customer Retention: AstraZeneca needs to develop strategies to retain both doctors and patients on the platform. This involves providing valuable content, personalized experiences, and continuous engagement opportunities.
  • Value Proposition: The platform's value proposition needs to be clearly articulated and communicated to both doctors and patients. This should highlight the benefits of using Doctor Connect for improved patient care, enhanced knowledge sharing, and streamlined communication.
  • Sales Enablement: AstraZeneca needs to equip its sales team with the necessary tools, training, and resources to effectively promote Doctor Connect to doctors and patients. This includes providing sales presentations, objection handling techniques, and training on the platform's features and benefits.

4. Recommendations

To address the challenges outlined above, AstraZeneca China should implement the following recommendations:

1. Building a Robust Sales Funnel:

  • Lead Generation: Leverage existing doctor-patient relationships to generate leads for the platform. This can be done through targeted email campaigns, social media outreach, and offline events.
  • Lead Qualification: Develop a lead qualification process to identify high-potential leads based on their needs and interests. This can be done through online surveys, interactive quizzes, and personalized content recommendations.
  • Lead Nurturing: Implement a lead nurturing strategy to build relationships with potential users and guide them through the sales funnel. This involves providing valuable content, personalized communication, and regular follow-ups.

2. Optimizing Customer Acquisition:

  • Digital Marketing: Develop a comprehensive digital marketing strategy to attract both doctors and patients to the platform. This includes search engine optimization (SEO), social media marketing, and online advertising.
  • Partnerships: Explore strategic partnerships with key stakeholders in the healthcare industry to expand reach and increase brand awareness. This could include collaborations with hospitals, medical associations, and other healthcare providers.
  • Content Marketing: Create valuable and engaging content that addresses the needs and interests of both doctors and patients. This could include blog posts, articles, webinars, and video tutorials.

3. Enhancing Customer Retention:

  • Personalized Experiences: Leverage data analytics to personalize user experiences on the platform. This could include customized content recommendations, tailored notifications, and personalized dashboards.
  • Community Building: Foster a sense of community on the platform by creating forums, discussion groups, and other interactive features that encourage engagement and knowledge sharing.
  • Reward Programs: Implement loyalty programs and reward systems to incentivize continued platform usage and engagement. This could include points-based rewards, exclusive content access, and special discounts.

4. Sales Enablement:

  • Sales Training: Provide comprehensive sales training to equip the sales team with the necessary skills and knowledge to effectively promote Doctor Connect. This should include product knowledge, sales techniques, objection handling, and negotiation skills.
  • Sales Tools: Equip the sales team with the necessary tools and resources to streamline their sales processes. This could include CRM software, sales automation tools, and mobile apps.
  • Sales Metrics: Track key performance indicators (KPIs) to measure the effectiveness of the sales team and identify areas for improvement. This could include metrics such as conversion rates, sales cycle length, and customer satisfaction scores.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with AstraZeneca's core competencies in pharmaceutical research and development, as well as its mission to improve patient health.
  • External Customers and Internal Clients: The recommendations address the needs of both external customers (doctors and patients) and internal clients (the AstraZeneca China team).
  • Competitors: The recommendations consider the competitive landscape in the Chinese online healthcare market and aim to differentiate Doctor Connect from competing platforms.
  • Attractiveness: The recommendations are expected to generate a positive return on investment (ROI) through increased revenue generation, customer acquisition, and customer retention.

6. Conclusion

By implementing these recommendations, AstraZeneca China can effectively leverage offline doctor-patient relationships to drive adoption of the Doctor Connect platform. This will lead to increased revenue generation, improved customer acquisition, and enhanced customer retention, ultimately contributing to the platform's success in the Chinese healthcare market.

7. Discussion

Other alternatives not selected include:

  • Focusing solely on offline channels: This approach would be inefficient and lack scalability in the rapidly evolving digital landscape.
  • Ignoring the importance of doctor-patient relationships: This would limit the platform's reach and effectiveness in the Chinese healthcare system.

Key assumptions include:

  • The Chinese healthcare market will continue to embrace digital solutions.
  • AstraZeneca will invest the necessary resources to implement the recommendations.
  • The Doctor Connect platform will be able to effectively address the needs of both doctors and patients.

8. Next Steps

  • Develop a detailed implementation plan with timelines and milestones.
  • Allocate resources and budget for the implementation of the recommendations.
  • Monitor key performance indicators (KPIs) to track progress and identify areas for improvement.
  • Continuously adapt and refine the strategy based on market trends and customer feedback.

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Case Description

The sales of various drug products for AstraZeneca, a multinational pharmaceutical company, have been greatly impacted by the volume-based procurement resulting from the medical reform in China. Meanwhile, the Covid-19 epidemic has catapulted the internet pharmaceutical industry into rapid development. When crises are intermingled with opportunities, AstraZeneca attempted to establish Yiliyili.com, an internet medical service platform, by leveraging its offline resources. Chen Hua, the CEO of Yiliyili.com, has 14 years of experience in pharmaceutical e-commerce and has set up an innovative "doctors-to-pharmaceuticals" model in contrast to the mainstream that runs otherwise. This model was created through collaboration with doctors from contracted offline hospitals who were engaged online. The goal was to establish a stable and active group of doctor users while providing them with empowerment and supporting services. The objective was to replicate existing doctor-patient relationships in an online setting. Meanwhile, it has extended services in physical medical and pharmaceutical products to value-additive services such as case management and compliance-related services for patients. It has also extended the provision of prescription drugs other than essential drugs at non-public offline hospitals according to patients' needs to enhance its marketing abilities for such drugs. Furthermore, it has used its marketing capacity for prescription drugs to establish cooperation with other medical appliance manufacturers to form an integrated marketing platform through which it could average down its fixed costs for maintaining a huge marketing team while better-utilizing marketing capacities. Can Yiliyili.com gain a competitive edge over its traditional competitors by implementing a service-heavy strategy and utilizing its offline strengths to outperform its online advantages? Will it be able to establish itself as a top-notch provider of exceptional and cost-effective

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