It's common for pharmaceutical companies to view the New Zealand market as a smaller version of the Australian market "mini Australia", leading them to structure their teams and resources in New Zealand accordingly. This approach often results in over-resourcing in New Zealand, using Australian metrics like "share of voice" as a reference point.
One notable difference is that Pharmac, the New Zealand government agency responsible for pharmaceutical funding, often provides a monopoly or limited options in therapy areas. Once a company successfully secures funding, there is typically limited need for extensive sales and marketing efforts due to limited/no competitors in some instances, so success metrics like “share of voice” are irrelevant.
Although the cost of entry into the New Zealand market can be high due to regulations and pricing controls, the absence of substantial competition means that achieving sales, if executed correctly, can be more cost-effective in the long run when resourced appropriately.
Many companies overlook this opportunity for potential cost savings by reducing their sales and marketing expenditure, allowing them to be more competitive in terms of pricing while still achieving excellent results.
Winning a tender and then overcommitting resources can lead to difficulties down the track with subsequent tenders when the ability to lower pricing is hindered by already overstated existing sales and marketing infrastructure and inherent costs associated with this.
This is where WellMed.NZ can play a valuable role by offering representation on the ground and providing essential activities without excessive resourcing.
In summary, a tailored approach to the New Zealand pharmaceutical market, considering its unique characteristics, can lead to success and cost-effectiveness for pharmaceutical companies. WellMed.NZ can be a helpful partner in achieving this balance.
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