Can you provide background on Combiphar?

Combiphar was established in 1971 with the mission of becoming a leading consumer healthcare company in Indonesia. In 2011, I assumed my current position as the company’s leader. At the time, one of our biggest challenges was deciding the direction for Combiphar. We were a medium-sized company, and I lacked a background in pharmaceuticals. Our business was generic in nature, lacking differentiation. However, one of our success stories was our cough syrup, which inspired us to believe in replicating that success with other healthcare products. Therefore, my vision was to transform Combiphar into a consumer health company and develop our own niche brands. We aimed to diversify into preventive areas and educate consumers about making informed choices. Quality is emphasized in our company, and we were recognized as the fifth most likeable and reputable company in Indonesia in 2013 by a leading local magazine and research company. Our target demographic is the middle class, with a focus on young to middle-aged women who can influence their families and communities. Our corporate social responsibility program is centered around healthy living education and women’s empowerment, actively educating youth and women’s communities on lifestyle disease prevention and providing skills and knowledge in marketing, finance, and sustaining good health. This commitment sets Combiphar apart from competitors and establishes us as a socially responsible consumer healthcare company.

What business strategies are in place to position Combiphar as a consumer health company?

Over the past three years, we have implemented various strategies to address intergenerational and management challenges. Through consumer surveys, we discovered that our patients perceived Combiphar as an old-fashioned company primarily providing medicines for their parents. This prompted us to give the company a facelift by changing our logo and rebranding our packaging. Additionally, we have a dedicated corporate communications department, which distinguishes us from others in the industry. Initially, we experienced single-digit growth, so we adjusted our distribution channels by reducing supply to wholesalers and focusing on building our brand. We strengthened our marketing team and developed a system to build our consumer database. Our strategy revolves around creating demand for our products by differentiating Combiphar in the market. These changes yielded positive results, and despite a challenging market environment in 2014, our performance was superior, and we regained our market share.

How do you engage consumers?

Healthcare is of utmost importance to Indonesian consumers. About 65% of internet searches in Indonesia are related to health, with 70% of these searches conducted by women. This indicates that we are on the right track. We engage with consumers by providing education, increasing their knowledge, and assisting doctors who may not have enough time to answer all patient questions. Our specialists conduct classes on specific topics, such as degenerative diseases. Moreover, we not only educate pharmacies about our products but also encourage them to reach out to consumers and build their customer base. The younger generation is more responsive to digital channels, so we utilize digital platforms extensively for communication, as our products require more than a few seconds to understand. Tapping into the digital space allows us to directly reach our consumers.

What are some of the challenges in the Indonesian market?

We face ongoing regulatory challenges, as registering new products can be a daunting process. Human resources pose a significant challenge as well. Sometimes, doctors and pharmacists convey incorrect information to consumers, and our medical representatives may not effectively differentiate between generic and licensed products. Thus, simply pushing products is not an option; product education is crucial. Distributors also present challenges, as they typically fulfill retailer orders without establishing relationships. However, we prefer to develop relationships with our retailers and ensure they have a deep understanding of our products. Training sellers leads to more accurate consumer knowledge.

Where will Combiphar be in ten years?

While we are a relatively small company in terms of turnover, we do not let that dictate our vision. Over the next decade, we plan to invest further in our existing products and research and develop new ones. We aim to continue delivering quality products, building a strong brand name, and creating value for a wide customer base by expanding our channels of communication and adopting a community-building approach to educate communities. We are committed to being an active and responsible company in the long run.