Future Handling of Vision Care Market in Armenia

FUTURE HANDLING OF VISION CARE MARKET IN ARMENIA
Investigation of the most effective selection criteria for Vision Care Distributors
Unit: RESEARCH METHODS
Author: EX16113
Astghik Sargsyan
JULY 29, 2018

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Table of Contents
Background......................................................................................................................................2
Introduction......................................................................................................................................3
Research Questions..........................................................................................................................5
Research Goal & Objectives............................................................................................................5
Literature Review............................................................................................................................6
Armenian medical enhancement and contemporary health care practices..................................6
Armenian Eye Care projects and outcomes.................................................................................7
Methodology..................................................................................................................................13
Methods.........................................................................................................................................18
Developing a rating scale...........................................................................................................18
Accession of patient information...............................................................................................18
Sample size................................................................................................................................18
Interviews...................................................................................................................................18
Analysis of collected data..............................................................................................................19
Analysis of quantitative data......................................................................................................19
Analysis qualitative data............................................................................................................19
Ethical consideration.....................................................................................................................19
Anticipated outcomes....................................................................................................................20
Discussion......................................................................................................................................20
Conclusion.....................................................................................................................................20
References......................................................................................................................................23

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Background
Myopia also known as nearsightedness happens when eye elongates longer than normal
from back to front. This in turn results in focusing of the images in front of retina instead of on
the retina which causes the blurriness of distant vision. Recently, numbers of people suffering
from myopia have increased drastically. Studies have reported that numbers of myopia affected
people today are almost 1.89 billion people globally (Holden et al. 2016). Considering that recent
prevalence rate of myopia does not change, almost 2.56 billion people will be affected by
myopia by the year 2020 which is almost one third of total world population (Holden et al.
2016). A project steered by Garo Meghrigian Institute for Preventive Ophthalmology showed
that 11 per cent Armenian school children suffer from refractive error of the eye (Giloyan,
Harutyunyan and Petrosyan 2017).
Current report shows that Sweden (14.8 %) has the highest penetration rate amongst
European countries followed by Denmark (13.19 %) and Norway (11.37 %) (A Comparison of
European Soft Contact Lens and Lens Care Markets in 2017 2017). Reports also suggest that
contact lens market in Europe has grown 4.3 per cent in the year 2017 (A Comparison of
European Soft Contact Lens and Lens Care Markets in 2017 2017). Worldwide market for
contact lens in 2016 was valued at USD 9.91 billion with a forecast of steady growth over the
coming few year (Contact Lenses Market Analysis, By Product Type, By Design Type
(Spherical, Toric, Multifocal), By Usage Type (Corrective, Therapeutic, Cosmetic, Prosthetic),
By Regions, And Segment Forecasts, 2018 - 2025 2017).
Despite of that contact lens has lower penetration rate in comparison with spectacles. The
reasons behind this are many folds. First of all, contact lenses are expensive product and have a
lesser shelf life in comparison with spectacles. People tend to prefer a longer lasting period of a
product for which they are paying premium price. Secondly, retailer also plays a hand in this.
Still now, retailer prefers to devote most of their attention towards selling spectacles. Finally, to
keep up with modern time, new technologies are emerging rapidly. With new technology come
new products which increase the already premium price even more.
Usages of contact lenses have become widespread throughout globally. A distribution
network is needed to reach product from manufacturer to consumer. Distribution of contact

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lenses can be varied depending on the different parameters. These parameters are availability of
lenses, practitioner perceptions, patient demographics, cultural factors and disposable income.
There are different type of distribution model such as Business to Business (B2B), Business to
Consumer (B2C) and Consumer to Consumer (C2C) (Brennan 2014). In the recent year, Alcon
has adapted a Business to Business model which means they only supply their product to the
distributors. Alcon’s Business to Business model has a significant chance to increase its market
share and penetration rate.
To summarize, potential market for contact lenses are huge as nearly one third of whole
world population will be affected by myopia by 2020. Penetration rate for contact lenses is
steadily increasing globally, but it is still less compared to spectacles. To achieve that a strong
distribution network is needed for any manufacturing company of contact lenses. Alcon is one of
the companies which is aspiring to be the leading brand in contact lens sector. Recently, Alcon
has adapted a Business to Business model as it does not sell to the consumer directly. To this
extent, finding a good distributor is paramount for Alcon’s success. Hence, a through and
detailed research is needed to find a proper distributor for the success of Alcon’s in Armenia.
Introduction
Alcon is one of the leading Eye Care companies in the world and was the part of Nestle
group until 2011. During this period Alcon developed its distinct organizational structure as well
as the distribution. Beside its dominant pharmaceutical (ophthalmic products) and surgical
(intraocular lenses, surgical equipment) business, Alcon vision care was so far only active in the
lens care products.
After Alcon’s acquisition by Novartis the Swiss based pharmaceutical company in April
2012 Ciba Vision the world’s number two contact lens manufacturer and also an important
player in the lens care products market will became Alcon Vision Care , as it is merged with
Alcon ,which Novartis wholly acquired in 2011 from Nestle and independent shareholders.
Ciba Vision sells and sold its Contact Lenses and Lens Care Products either directly to
the eye care professionals (ophthalmologists, optical shops, clinics, optometrists, optical chains,
etc.), or via distributor. To deal with the markets where CV was selling through a distributor,
company has a business unit called International Distributor Markets (IDM), based in

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Switzerland. Company had to decide on how to find or change the current distributor to better
one in a certain country of interest. Ciba Vision did not and now Alcon does not sell to
consumers; it is a B2B business only.
The Business to Business process somehow allows making commercial transaction with
one company to another (Bunatyan 2016). Market attractiveness has evolved through the process
and contact lens presentation has started in a high range. International Distributorship market has
widened different distributor company to come up and find some better way of distribution. Ciba
Vision has put the restriction over the Alcon as they do not want that parent company will not
sell their product and thus a distributorship concept of theoretical market has started in this
business.
This work intends to describe ways how Alcon’s IDM group can better select the right
distributor and 'go to market' model for a given a country it currently serves or intends to do so in
the future.
The paper shows ways to find a distributor. A list of criteria as well as an evaluation
matrix for deciding between several distributors should be developed for profiling that all meet
the required profile, but may have different strengths and weaknesses.
The business operation of Armenia has changed as the investment opportunities and
support from the investors are huge in this 21st century. Support from organization sites and
business investments are the maximum enforcement in business and development funding if
Armenia also boosting Armenia’s products in international market. Some of the specific trade
programs have faced huge financial enhancement and for this reason other companies also keen
to establish their market in Armenia (www.who.int 2011).
About Contact lenses
Contact lenses are one of today’s most advanced alternative to the spectacles options of
vision correction. The other options are the different versions of refractive surgery. The contact
lenses and spectacles are substitutional to each other, and on the other hand they often exist
together, meaning a contact lens wearer still has spectacles as back-up for times when he cannot
wear contact lenses and many spectacle wearers do occasionally also wear contact lenses.

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The lens care products (solutions) also are big an annual expense or even more than the contact
lenses themselves. The amount of effort and money spend for the care is a big turn off for the
wearers which can in many cases lead to discontinuation of contact lens wear. They are called
drop-outs (dropping out of contact lens wear). Another cause of drop- out is a short cutting the
care requirement (i.e. noncompliance with the systems) which leads to such complications as
infections, inflammations and /or irritations.
Cosmetic contact lenses are a relatively small sub segment; they can also be used for therapeutic
reasons, i.e. as a bandage after trauma, after surgery or for chronic conditions.
Refractive surgery aims to the independence of the both contact lenses and glasses and is in
many cases not reversible or only by undergoing another surgery.
Research Questions
RQ1. How the company evaluates its present distribution model with regards to distribution
method in Armenia?
RQ2. What are the proper and prominent criteria for appropriate distributorship for development
of vision care in Armenia?
RQ3. What is the most appropriate distributorship process to influence the market development?
Research Goal & Objectives
The vision care initiative in Armenia takes a mission of eliminating preventable blindness in
Armenia in the 21st century and the process has entirely covered the child and adult people in the
nation. The research goal of this vision care project is to provide the current practice and
improve the future handling of the distribution process of vision care section in Armenia. The
objectives of the research project are
 To study the process of present distribution set up of vision care products in Armenia.
 To define how company evaluates the present distributorship model and how far the
model appropriate to the situation

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 To generate a list of criteria to make a designed distributorship process for the
development of vision care in Armenia.
 To recommend a model of appropriate distributorship process based on the list.
 To scrutinize the issues of general influence of using the right criteria on the market
development.
 To define the most appropriate distributorship process
Literature Review
Armenian medical enhancement and contemporary health care practices
In case of culture, science and politics global enrichment have made in Armenia in recent
years. However, the world knows very less about Armenia or Armenian and the rich experience
that has suppressed in between them is unknown to the world. The thesis of the literature review
is highlighting the profound heritage and past practice of the medical science of Armenia and the
scenario of the progress of Armenia as well (Gharibyan 2013). The betterment of valuable tools
and progress of health care performance is the key aspect of Armenia medical world and through
the ethical and theological perspective, Armenia has done this process for several years.
Comparing with the past and the present, it is understandable that the drift in the contemporary
health care arrangement is more motivated to an emphasis on primary health care, deterrence,
and patient-centered care, just as was the training of by-gone periods. Health care system in
Armenia has changed as the nation has focused into solving those processes in a greater way and
provides some effective changes as well so that medical processes have evolved a bit from the
past situation (Export.gov 2017). The aim and objectives of Armenia in the healthcare sector
have improved a lot and some challenging situations are also mitigated by their own health care
experts. Public financing increases approximately $17.8 million to $173.6 in between 2000 to
2011 (Ncbi.nlm.nih.gov 2012). Some of the sectors in Armenia people get a good amount of
money and medical workers have got increased salaries over those places. High prices are
considered as the barrier in Armenian hospitals and people are not able to go there, however,
after the increased medical facilities and 50%, cost reduction in health care section people
engage in a government hospital is increased (Martirosyan et al. 2012).
Patient care framework and palliative care alignment is the concern improvement is the
main aspect that defines the holistic health care issue in the physical, psychological and legal

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aspect of life-threatening illness. There are some responsibilities has taken by the government of
Armenia and this is the reason most of the patient care analysis has been done in a formulated
way. As per the statistics provided by the World Health Organization, 14% of people need to
palliate care and most of the physicians are unknown about the fact. As asserted by De Luca et
al. (2017) the diseases are identified through the symptoms and patient care homes and the
particularly the pain and health care analyzing ensure the global palliative care for the people in
Armenia. In most of the cases, injured people are suffered by the curative form and case analysis
is depending on that matter (Zarifian 2014).
Drug regulation problem presents in Armenia as well. As commented by De Luca et al.
(2017) patients and their families have not the sufficient information about palliative care.
Today, contact lenses and Lens Care Products are classified as medical devices. While in the past
each country had more or less its own regulation, today the creation of the EU has eliminated
many of these, replacing them with the harmonized EU’s medical device directive (MDD).
Armenia also follows the EU’s medical device directive.
Therefore, all the findings and patient care analysis are concerning the patients’ mindset
and their behavior. All the changes need to be done are the basic possibilities of changing the
approach to health care in Armenia. The issue of development and changing vision care steps are
being taken by the government in form of vision 2020 and this will bring the social, economic
and developmental change in Armenia (www.dfa.am 2018). Strategies have been taken by the
government and that directed towards the vision for the better adjustment to the improved
scenario of the Armenia vision care department.
Armenian Eye Care projects and outcomes
Armenia's geographic isolation, a narrow export base, and pervasive monopolies in
important business sectors have made it particularly vulnerable to volatility in the global
commodity markets and the economic challenges in Russia. Armenia is particularly dependent
on Russian commercial and governmental support, as most key Armenian infrastructure is
Russian-owned and/or managed, especially in the energy sector. Remittances from expatriates
working in Russia are equivalent to about 12-14% of GDP. Armenia joined the Russia-led
Eurasian Economic Union in January 2015, but has remained interested in pursuing closer ties