A grave epidemic: Free or cheap drugs are crucial to controlling AIDS

On the first of April, the National AIDS Control Organisation (NACO), rolled out its long-awaited campaign to reach anti-retroviral drugs to India's victims of the AIDS virus. Called the art initiative (art for anti-retroviral therapy, which inhibits replication of the AIDS virus), the programme represents the government's first big attempt to contain the spread of AIDS since it was first reported in 1986 in Tamil Nadu among female sex workers.

In the first month alone, the programme (implemented through state-level organisations and NGOs) has put 426 people on the life-long therapy. The initial target is HIV positive mothers and children in the six states of Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu, Manipur and Nagaland. By the end of March next year, NACO hopes to reach 25,000 people, and by early 2009, 1.8 lakh. Says Meenakshi Datta Ghosh, NACO's Project Director: "We have responded to a 15-year-old demand."

Given that some 4.5 million people in India are HIV positive, naco's roadmap may look modest. But the fact is that at the moment, it is India's best hope. Although India started various initiatives to combat the AIDS menace way back in 1992, success has been limited. Primarily because until recently the expensive drugs were beyond the reach of most HIV patients, besides which the infrastructure needed to identify, test, monitor, and mentor HIV patients was rudimentary. But with the United Nations getting member countries to step up their AIDS initiatives, pharmaceutical companies came under pressure to lower the cost of arts. On August 30 last year, the WTO allowed drug companies in developing countries, including India, to make copies of the patented AIDS drugs, and in September, the World Health Organisation and UNAIDS launched a "3 By 5" initiative, which seeks to provide art to three million people by 2005.

If Indian drug companies have been allowed to make and sell patented AIDS drugs, why are they still unhappy? The issue boils down to profits. The who qualified manufacturers have quoted rates of $140 a year for the AIDS drugs, which comprise a combination of at least three drugs (anything less than three and the HIV virus will become drug resistant). Elsewhere in the world, the drugs are significantly more expensive-more than three times that of India. Cheaper rates is the main reason why Indian drug makers like Cipla export arts to 90 countries world wide.

The irony, however, is that despite India's own staggering needs, pharma companies find it more profitable to export than sell locally. That's because when they export, they are allowed to claim duty benefits on raw materials imported. But when they sell the same arts to who in India (currently the sole buyer), they are not allowed that concession. Laments Yusuf K. Hamied, Chairman and Managing Director, Cipla: "That's my biggest sore point." The hitch, apparently, is that the raw materials used in arts can also be used for other drugs. Therefore, there's no way of telling if the benefits won't be misused. Yet, as Sandeep Juneja, Head of HIV projects at Ranbaxy, points out, even at these rates "(pharma companies) don't lose money, we just make less profits".

The good news is that the procurement of arts is being done by who. But the Ministry of Health wants to take over that function starting August this year. Let's hope, for the sake of India's teeming HIV positive population, that it never comes to pass.

-R. Sridharan

Maruti's SSSSSSSecret?

Concept-S: The new kid on the block?

A news report in Japanese daily Nihon Keizei Shimbun talked about Suzuki Motor Company developing a new 1.5 litre car for India and China that would replace the aging Suzuki Swift (Maruti Esteem). Back home, Maruti Udyog Managing Director Jagdish Khattar was quick to dismiss the story. However, during an earlier conversation, Khattar had pointed out that Maruti had a plan for dominance in the segment.

The news item highlighted how the all-new car would be based on the 'Concept-S', a car that Maruti had showcased at the Auto Expo earlier this year. Subsequent reports said it would replace both Esteem and Baleno. Both are priced aggressively, but they are showing definite signs of age and the competition has upped the ante: Tata Motors on the price front with Indigo and Honda on the technology front with the new City. Khattar however sees things differently, "The Esteem is familiar, but not dated."

A large supplier to Maruti does mention a "Palio/Indica sized car", but adds that his company is yet to be contacted. So, yes, a new car is on its way from Maruti. The question now is when?

-Kushan Mitra

Mind-reader

The MRSI (market research Society of India) awards are a bit like the regional Oscars for India's research fraternity. BT's Shailesh Dobhal meets up with ACNielsen ORG-MARG's Sangeeta Gupta who authored two papers that won these awards (first- and second-runner up). One, titled Jack-In-The-Tiffin-Box used ethnography to help unearth new product ideas in the school-tiffin category; another, Live Without Fear tapped into simple consumer behaviour to tailor ABN AMRO's foray into the crowded credit card market.

What is ethnography?

It is the researcher (adopting) some form of up-close and participative observer role in peoples' natural and everyday life.

How does it help marketers?

The growth challenge that marketers are facing right now is forcing them to go into what really drives consumers and understand their deeper motivations. Marketers expect some from of participatory vignettes from most qualitative research.

Are a lot of marketers going in for this kind of research?

It is a pity that only a few marketers in India are willing to start afresh. Just about 20 per cent of new product development endeavours in India are using ethnography.

What are the learnings for your clients from the two papers?

In Jack-In-The-Tiffin-Box the biggest learning was that for the child, the tiffin box (both its form and content) has to move closer to what a pencil box is-interactive, shareable, even something that can invoke pride of possessiveness. Well, ABN AMRO was a brave client for it completely followed what we had recommended in Live Without Fear-design a credit card which acts like a governess rather than as temptress, by way of pre-set credit limits and alerts.

Jack-In-The-Tiffin-Box

Here's an idea that can help packaged foods businesses go laughing to the bank even while making life a mite easier for mothers who endlessly worry about whether the tiffin they pack, while being nutritious, is fun for their kids to eat. An ACNielsen ORG MARG study titled Jack-In-The-Tiffin-Box reveals that kids see tiffin-time as a time of release of energy, play and fun. So branded foods that offer variety and surprise have the potential to be wildly successful.

All it takes is a little imagination, and some attention to themes that click with children, while developing the tiffin box and the food.

Live Without Fear

What can late entrants do to make an impact in a market awash with credit cards (13 of them at the last count)? They can do what ABN AMRO did with its Freedom credit card. The bank latched on to an insight gleaned from a recent ACNielsen ORG-MARG study: fear of overspending often influences consumers to shun credit cards. The bank's Freedom Card allows consumers to pre-set credit limits and alerts them over e-mail and cellphones if they approach that mark. The card has proved a big hit and is set to turn in a profit for the bank two-to-three years faster than it took the previous 13.