THE HEALTHCARE AND PHARMACEUTICAL MEETINGS SECTOR - A PROFILE
There is general recognition of the importance of the healthcare and pharmaceutical sector in generating meetings, conferences, exhibitions, incentives, product launches, and similar business events. But there’s little published information describing the characteristics and trends in the sector. Leading event management agencies and professional conference organisers in the UK specialising in this sector share their insights and experiences.
Structure of the Sector
The sector comprises of three main types of meetings:
a) Pharmaceutical In-house Meetings – These meetings take the form of sales conferences or in-house strategy meetings. They are used to update, educate and motivate the sales teams or in-house teams. There are no particular restrictions in terms of meeting content and design, and budgets allocated are normally substantial. Meetings may take any format but will probably include a plenary session and then breakout sessions for specific business units and regional sales teams. There can additionally be some form of team building activity. The size of these meetings is usually 500 maximum but can be much smaller dependent on the nature of the meeting. A very high level of accommodation close by is usually a pre-requisite.
b) Pharma-sponsored Stand-Alone Meetings – These are conferences sponsored by pharmaceutical companies but the participants are invited doctors. The rationale behind holding these events is that the pharma company is seen to be facilitating discussion around a particular topic of strategic interest. The meeting is not an overt sales pitch but subliminal sales messages and techniques may be used to create brand awareness. The sponsoring company will invite the delegates and cover all the costs of their travel, registration and related expenses. The meeting will be subject to the ABPI (Association of the British Pharmaceutical Industry) guidelines, which restrict the level of entertainment and amount that can be spent on any aspect of the meeting (for a copy of the ABPI Code of Practice, visit: www.pmcpa.org.uk). The format is again usually plenary, but there may also be breakout sessions. If the meeting is organised by a medical equipment company, breakout hands-on workshops are very common. Delegates will be housed in 4-star accommodation. Entertainment will be modest. The sponsoring company may have a small exhibition stand to promote its drug/equipment. The size of these meetings ranges from 100-1500 but, on average, is between 250 -500.
There are also research and development meetings, either small advisory board meetings, typically between 10 and 20 attendees, or investigator meetings that involve the sharing of clinical data and standardisation training, and these meetings range from 30 to 200 attendees with an average size of approx. 100. Both these meeting types would be in plenary format with no breakouts.
c) Association Meetings sponsored by Pharma – These are conferences which are organised by medical associations and societies. They include international, pan-European and national societies and associations. The income sources for these conferences are from registration fees, a concurrent trade exhibition, and sponsorship from pharma. The programme is produced by a scientific committee and pharma has no influence over the programme. Conferences last from 2-5 days and usually have a related trade exhibition running alongside. Facilities required, therefore, include an auditorium (raked seating preferable or essential) for plenary sessions, breakout rooms and space for exhibition, catering and poster displays. Ideally the venue should have a range of hotel accommodation nearby, preferably within walking distance. The size of these meetings ranges from 250 – 3500 and they are usually annual meetings, although most UK medical conferences range from 150-800 delegates and average around 400. There is a trend for national associations to sign long-term deals where they select two or three suitable venues around the country and rotate around these over a longer period.
The larger association conferences of 2,000-5,000 delegates normally feature a major exhibition of 2,000 sqm net and a poster area of 500-1,000 sqm net. The exhibition space should not have any pillars and have excellent loading bays/access. Organisers will expect the exhibition, posters and catering to be housed in the same area. The number of breakout rooms does vary but, on average, around 10 will be needed, with capacities ranging from 400 theatre-style down to 200 theatre-style. Organisers also require about 10 smaller rooms for committee meetings (10-40 persons), a speakers’ preview room, an organiser’s office, an association office and a press office. The length of meetings ranges from 3-5 days, not including set-up and breakdown days.
Additional Venue and Destination Requirements
Accessibility and good transport connections are a key requirement for all three types of meeting, but most importantly for pan-European and international conferences. For inbound international delegates, this will often mean that transfers from UK airport or port of entry to the conference destination should take no more than one hour.
Location is also key: typically the attendees are world-leading experts in a particular therapeutic area and so the location and timing of the meeting need to be conducive to time-saving efficiencies – airport hotels with good European hub access are very useful.
Confidentiality and privacy are important features of pharma and medical events. There should be no competitors running events at the venue at the same time. Security is a key concern, due to the sensitive nature of the meetings content. Product and brand names also need to be shielded from the general public – otherwise sponsors will not book. Opaque glass and other forms of screening may, therefore, be a pre-requisite for venues, and can also be sold as a value-added feature.
Wi-fi needs to be available free of charge to delegates and organisers. Where this is not the case, the lack of such provision is viewed as an irritant at the least, and more seriously as a disincentive to book.
Events involving the attendance of HCPs (healthcare professionals) are regulated. In the UK this is done by the ABPI but venues should be familiar with various European codes to ensure they are compliant if looking to target pharma business from these countries.
Current Market State
Although it has not been immured from the economic crisis, the healthcare and pharma market has been relatively resilient. The number of meetings organised may have been reduced but the requirement still exists for both internal and external corporate meetings. Brand managers are certainly required to justify their spend on stand-alone meetings and show a positive ROI from holding them. The economic situation has, therefore, focussed pharma companies into deciding very carefully which meetings to organise.
Medical association meetings have been the most resilient to the economic downturn. The associations have continued to run their meetings and national and European meetings have seen a positive spin-off due to participants not travelling as much to long-haul destinations.
Pharma continues to sponsor medical association meetings as it is often one of the only forums where they get a direct audience with their target market. The forms of such sponsorship have been affected both by the recession and by the strict ABPI guidelines. Michael Foreman, managing director UK of Kenes, says: “There is a shift to sponsorship of educational opportunities. Gone are the days of pharma sponsoring entertainment or social events. Sponsorship of delegate bags, pens and other items may, too, soon be a thing of the past.”
John Walker, managing director of Oxford International, assesses the current market as “healthy, but not as vibrant as it was a few years ago”. He comments: “Pharma has also had cutbacks in marketing and commercial spend which have affected the big sales conferences – no more South Africa or USA – and fewer ‘hosted delegates’ to national and international congresses. Reduced event budgets have also affected sponsorship and exhibition expenditure.”
Indi Patel, account team manager, Banks Sadler, describes the sector as “stable compared to other industry sectors”, but she has detected a “greater use of their own, internal meetings space by pharma companies”. She says that other key trends include:
· Developing preferred supplier relationships with agencies and venues
· Discontinued use of 5-star, luxury venues
· More focus on reducing budgets
· Consolidating spend into preferred properties
· Consolidating spend through third party agencies via one appointed agency
· Greater emphasis on adherence to ABPI guidelines
Lynn Samson, managing director, MCI Glasgow, notes that the “pharma conference and meetings market is extremely resilient to the economic factors being seen at present. In 2010 all our pharma conferences attracted higher than expected delegate numbers and exhibition and sponsorship was also higher than in previous years.”
Luke Flett, group sales and marketing manager, WorldEvents™, agrees that the pharma market is reasonably resilient. He believes that “the current economic downturn has not really had an impact on the industry and their requirements to manage events. Having said this, the pharma companies are very dependent on their pipelines (bringing new drugs to the marketplace) and, if they do not have a strong pipeline, the need for events will decrease and this can happen irrespective of the economic climate. This can bring about additional merger and acquisition activity for certain companies in an attempt to boost their pipeline and this, in turn, will necessitate face-to-face meetings to engage employees and manage change.”
Gerry McCarthy, managing director of Hampton Medical Conferences, notes that, for medical association conferences, “although delegate numbers are holding up well, accompanying exhibitions in some pharma sectors are getting smaller, and exhibitors are signing up later”. She believes that there is a need for PCOs to be more creative in their organisation of such events while, at the same time, expecting “more flexibility from venues over T&Cs and venue contracts”.
Peter Mainprice, managing director of Index Communications Meeting Services, believes that more ABPI regulation and an avoidance of 5-star accommodation have reduced the potential for the sector to be criticised for staging “lavish events”. He stresses the need for venues and event organisers to create “professional, educational and quality environments” as pharma companies “still need to educate their target clinicians, either during a medical association event or an event wholly hosted by themselves”.
The healthcare, pharmaceutical and medical sectors look set fair to remain key target markets for venues, destinations, event agencies and suppliers for many years to come, but achieving success will increasingly demand an in-depth knowledge of client requirements coupled with a dynamic approach to developing and fine-tuning products and services.
The author acknowledges the generous contributions to this article made by Banks Sadler, Hampton Medical Conferences, Index Communications Meeting Services, Kenes, MCI, Oxford International, and WorldEvents™.
