Do you know how to grow profits in Latin America with regulatory strategies?
Atualizado: 16 de Jul de 2020
Take advantage of your regulatory affairs strategies
Have you ever heard someone saying in your company the regulatory affairs department sucks? Someone screaming all problems come from regulatory affairs? Because of them marketing and sales department do not launch a new product?
Yep, If you don't we do.
Unfortunately, this situation is common in the real life of food, pharmaceutical or medical professionals and companies.
Does this expression rings your bell: marketing department is synonymous of "company profits" and the Regulatory Affairs, on the contrary, is a problem?
The face of a disappointed CEO is not uncommon when explaining to us, regulatory attorneys, that he was horrified by a recall or penalties arising from non-compliance with certain regulatory aspects that was not seen by its team.
Another big drama: the time !! Do you need to launch your new products and your regulatory affairs department is still running against time?
Now, transfer this drama to approve a product in Latin America. Wow, you won. Problems go up 100%.
If you had, by any chance, this experience before, it is time to re-think your regulatory affairs strategies more than never. Specially when dealing in Latin America countries.
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Let's see how your regulatory affairs strategies can bring to your company more profits instead of the idea of losses.
I - TAX CLASSIFICATION
Tax classification is a sensitive issue when dealing in Latin America countries, for instance.
Mostly, the experience shows that tax lawyers and regulatory lawyers do not talk as much as it is necessary in order to achieve better results for the company.
Sometimes the tax side does not take into account certain regulatory aspects that could help to classify the product more precisely and obtain a less costly taxation and vice-versa
Besides, the regulatory model chose can impact the product price with a heavy burden for the company. So it is mandatory to review regulatory strategies under taxation perspectives as well.
In other words, if you bring regulatory affairs to the business plan discussion you can save money and time to your company.
II - COMMUNICATION TECHNIQUES IN REGULATORY AFFAIRS FOR PROMOTION AND DISTRIBUTION
Product communication is crucial to the company's success.
What would that mean?
When promoting a product in Latin America, the company will inform the consumer about the novelties of the product, its healing values, health improvement and how to use it. In addition, the communication process must take into account theneeds to inform about the adverse effects of the product.
For this reason, the communication, advertising and promotion material must not only be part of the marketing or communication's plan, but must also receive a legal opinion from the legal & regulatory affairs.
We see many companies being ruined in their communication campaign just because they have not received legal advice on it, that is, advice focusing specifically on regulatory matters.
For example, an advertising campaign about probiotic food announcing its good for better digestion. Just after, the company received a warning letter from the health inspection telling enforcing a new marketing communication clarifying consumer the product does not this effect because "food products" cannot have a therapeutic function.
Your regulatory affairs legal team can avoid this kind of problem.
Marketing area should not be afraid about legal regulatory affairs team, by contrary, they should work closely to achieve better results.
The regulatory affairs plan can also help you identify breaches of your competitor's product regarding mislabeling and misleading that could being creating an unfair competition to your company.
All of this is about changing the company's perspective in relation to regulatory matters, that is, looking at it as a source of profits and success and not losses.
Imagine if you use these ideas to identify a profitable results in Latin America.