CHAPTER I

INTRODUCTION
1.1 INTRODUCTION OF THE PROJECT
The Indian Pharmaceutical industry, valued at $46.2 billion has been
witnessing attractive growth rate of 15% to 20% consistently over the past
decade. This growth was build by India's large population, increasing allocation
of income to healthcare spending and exports. Exports which currently accounts
for 20% of the production value has grown by a compound annual growth rate of
34% in the past few years due to competitive price advantages from India's low
labor and other input cost

The Indian market for pharmaceutical products stands at an enormous

$58.8 billion. The big 10 companies account for over 30% of that, take away 45
marketer and average sales don't even come any where near the $2.5 million
marks, that's how fragmented its is some 50,000 brands from over 20,00
companies growing fast enough to embarrass rainy day mushrooms and enough
diseases to savage Indian population all several times over and turn Dr. Dolittle
into Dr. Don't care.

Dealers today must offer more tailored services, be more customer-

focused and more efficient in order to compete. Manufacturers and their dealer
organizations therefore place exacting requirements on their IT. Flexibility is key
to business success. The more efficiently information is processed and employees
use data, the more productive the core business becomes. The T-Systems
innovative business process solutions for sales and service provide dealers with
a decisive competitive edge.

1
DEALER MANAGEMENT SYSTEMS FOR ALL REQUIREMENTS

Buyers are becoming more demanding – the customer expects an

emotional experience when buying and having their car serviced. A personal
touch and flawless customer care are crucial in the dealership. The entire
workforce must play its part: at the reception counter, in sales, in service, in the
parts and accessories department, in marketing, in telemarketing, in complaints
processing right through to accounts. The customer is at the center of everything
the business does – embraced across the board by all functions. T-Systems helps
the car dealer choose, roll out and operate dealer management systems (DMS).
The portfolio ranges from standard solutions such as Incadea and proprietary
DMS software for use in the dealership (alphaplus, VAUDIS, Customer One) to
modular, cloud-based solutions in collaboration with Salesforce and others.

1.2 PROFILE OF PHARMACEUTICAL INDUSTRY

The first Indian pharmaceutical company, Bengal Chemicals and

Pharmaceutical Works, which still exists today as one of 5 government-owned
drug manufacturers, appeared in Calcutta in 1930. These five public sector drug-
manufacturing units under the Ministry of Chemicals and Fertilizers are: Indian
Drugs and Pharmaceutical Limited (IDPL), Hindustan Antibiotics Limited
(HAL), Bengal Immunity Limited (BIL), Bengal Chemicals and Pharmaceutical
Limited (BCPL) and Smith Stanistreet Pharmaceutical Limited (SSPL). In
addition, there are a number of pharmaceutical manufacturing units under
the control of state governments such as Goa Antibiotics Ltd. and Karnataka
Antibiotics Ltd. For the next 60 years, most of the drugs in India were
imported by multinationals either in fully-formulated or bulk form. There are
24,000 licensed pharmaceutical companies. Of the 465 bulk drugs used in India,
approximately 425 are manufactured here. India has more drug- manufacturing

2
facilities that have been approved by the U.S. Food and Drug Administration
than any country other than the US. Indian generics companies supply
84% of the AIDS drugs that Doctors without Borders uses to treat 60,000
patients in more than 30 countries.
The Indian pharmaceutical industry currently tops the chart amongst India's
science-based industries with wide ranging capabilities in the complex field of
drug manufacture and technology. A highly organized sector, the Indian
pharmaceutical industry is estimated to be worth $ 6 billion, growingt about
10 percent annually. It ranks very high amongst all the third world countries, in
terms of technology, quality and the vast range of medicines that are
manufactured. It ranges from simple headache pills to sophisticated antibiotics
and complex cardiac compounds; almost every type of medicine is now made in
the Indian pharmaceutical industry.
The Indian pharmaceutical sector has expanded drastically in the last two
decades. The Pharmaceutical industry in India is an extremely
fragmented market with severe price competition and government price
control. The Pharmaceutical industry in India meets around 90% of the country's
demand for bulk drugs, drug intermediates, pharmaceutical formulations,
chemicals, tablets, capsules, orals and injectables. There are approximately
300 big and medium scale Pharmaceutical companies and about 8000 Small
scale units, which form the core of the pharmaceutical industry in India.
In future it will be a growth period of the Indian Pharmaceutical
Industry. The growth is expected to emerge from three major areas:
1. Contract research and development services.
2. Export led business of generics and bulk drugs and
3. Growth in specialty therapeutic areas in the domestic market.
The growth in the institutional segment is likely to raise the market for
diagnostics.

3
 Increasing industrialization, literacy levels and urbanization are likely to
increase the health awareness of the general public. Consequently the
demand for preventive medicine in general and immunological like tetanus
toxoid, triple antigen (DPT), measles vaccine, Hepatitis vaccine, anti-rabies
vaccine, polio vaccine and typhoid vaccine are likely to increase.
Companies are likely to pay greater attention to their human resources
development effort in general and management developmental programs in
particular.
The present state of armed truce between the trade and the industry is
likely to continue in the future. But with a difference. The industry is likely to
be united more closely than before.
Companies, which have strong research, focus and competence only
can achieve a sustainable growth and performance in the borderless future
market place. Now the companies are steadily increasing their investment in
Research and Development.
Companies that think strategically are the ones that are likely to
succeed in the future. Marginal firms are likely to be marginalized. Strategic
thinking plays an even greater role in the coming years. Unless the
pharmaceutical companies in India start preparing for future competition right
now by upgrading in all areas it could be very difficult to exploit growth
opportunities. It might become difficult even to survive any longer.
The industry will continue to be in consolidation mode and mood. The
last few years have seen a spate of mergers and acquisitions of brands as
well as companies. Indian companies continue to be aggressive in pursuing
merger and acquisition strategies to gain access to international markets and to
reinforce their position.
The top ten pharmaceutical companies in indian market are listed here cipla
ranks first with largest value growth rate of 18% and volume under growth of
15.3%, with an annual value turnover of ` 2155 crores and at the bottom of

4
the table is Aristo Pharmaceutical with 18.6% value growth rate and 20.1%
volume growth on an yearly turnover of ` 966 crores. The other pharmaceutical
companies which tops in top 10, in Indian Pharmaceutical market are
Ranbaxy, Glaxo, Piramal, Zydus Cadilla, Sun pharmaceutical, Alkem,
Mankind, Lupin . The total scenario in this regard has a positive impact
on growth of pharmaceutical industry which is explained hereunder with the
help of table as well as graphic presentation.

Top 10 Companies Driving Market

ADVANTAGE INDIA
As regards the pharmaceutical marketing in the world, India is
becoming one of the front runner destinations because of its second largest
population in the world, the pace of development of its economy, adoption of
technological advancements, economical medical treatment cost and also
availability of world renowned physician’s etc. Following are the
advantages of Indian Healthcare Scenario:

5
 Competent workforce: India possesses a skillful work force
with high managerial and technical competence.
 Cost-effective chemical synthesis: The track record for
development, particularly in the area of improved cost-beneficial
chemical synthesis for various drug molecules is excellent.
 Legal and Financial Framework: India is a democratic
country with a solid legal framework and strong financial
markets. There is already an established international industry
and business community.
 Information a n d Technology: It has a good network of world-
class educational institutions and established strengths in
Information Technology.
 Globalization: The country is committed to a free market
economy and globalization. Above all, it has a 70 million middle
class market, which is constantly growing.

Significant developments across the value chain during the

last decade

6
Consolidation
After many years, the international pharmaceutical industry has
discovered great opportunities in India. The process of consolidation, which
has become a popular phenomenon in the world pharmaceutical industry, has
started taking place in the Indian pharmaceutical industry as well.
Booming Sales
India is gaining importance as a manufacturer of pharmaceutical.
Between 2006 and 2019, sales of pharmaceutical were up by 9% per annum
and thus expanded much faster than the global pharmaceutical market as a
whole. Demand in India is growing markedly due to rising population
figures, the increasing number aging population and the development of
incomes. As production location, the country is benefiting from its wage
cost advantages over western competitors, when it comes to producing
medicines.
Medical Tourism
The concept of medical tourism is an age old concept. In this digital
era, half a million people travel across the globe for health purposes. People
from developed and affluent countries are moving out of their own countries
to other destinations, seeking solitude, natural and holistic remedies and eco
friendly experiences. Medical Tourism is one such new area that is ripe with
potential.
 Medical travel: When an individual travel across the border and outside
one’s customary environment to seek healthcare services.
 Medical Tourist: Upon arrival, such an individual is called a
medical tourist.

7
  Medical Tourism: Traveling to a destination in another country to
receive medical, dental and surgical care because the destination
enables better access to care, provides higher quality care or offers the
same treatment at a more affordable price.

India is economical medical tourism hub, major or minor, and is equal

to the major hubs in terms of quality of staff and equipment. Prices average at
a fifth of the United States, with particular deals in dentistry and diagnostic
imaging, which approach a tenth the price. India deals with a higher
proportion of major surgery tourists than minor surgery and check up tourists
than the other major hubs, which has given rise to specialist hospitals across
India .These hospitals are far out of the reach of most Indians and cater
specifically to foreign tourists for very specific needs – for example some
centers will focus strongly on the heart surgery while others will deal with
joint replacement.
Medical tourism is actively promoted by the government’s official
policy. India’s National health policy 2002, for example, says, “To capitalize
on the comparative cost advantage enjoyed by domestic health facilities in
the secondary and tertiary sector, the policy will encourage the supply of services
to patients of foreign origin on payment. The rendering of such services on
payment in foreign exchange will be treated as ‘deemed exports’ and will be
made eligible for all fiscal incentives extended to export earnings.
Best hospitals for medical tourism in India: The list is not exhaustive
but illustrative.
1) Apollo Hospital, Chennai
2) Indraprashta Apollo Hospitals, New Delhi
3) Escorts heart Institute and Research Centre, New Delhi
4) Max Super Specialty Hospital, New Delhi
5) Wockhardt Hospital and Kidney Institute, Kolkata

8
India’s strengths in Medical Tourism
o Indian medical centers provide services that are in fact
uncommon elsewhere.
o World-class treatment at competitive prices is available.
o Availability of skills, knowledge and resources.
o India’s quality of care is world class, competing with any other
industrialized country.
o Indianism: With Ayurveda becoming increasingly popular across
the globe, this ancient Indian therapy can be used as a non-surgical
treatment for various ailments along with the meditation and yoga.
This gives the touch of Indianism to the treatment.
o The diversity of tourist destinations availability: Leisure tourism
is already very much in demand in India as the country offers
diverse cultural and scenic beauty. India has almost all sort of
destinations like high mountains, vast deserts, scenic beaches,
historical monuments, and religious temples, etc. known for its
hospitality for tourists.

DEVELOPMENT OF INDIA’S PHARMACEUTICAL INDUSTRY

Up until the 1970s, India’s pharmaceutical market was mainly supplied
by large international corporations. Only economical bulk drugs were
produced domestically by state-owned companies founded in the 1950s and
60s with the help of the World Health Organization (WHO). These state-run
firms provided the foundation for the sector’s growth since the 1970s. Back then,
Indian government aimed to reduce the country’s strong dependence on
pharmaceutical imports by flexible patent legislation and to create a self- reliant
sector. In addition, it introduced high tariffs and limits on imported medicines

9
and demanded that foreign pharmaceutical companies reduce their shares in their
Indian subsidiaries to two-fifths.
Large Market Share for Generic Drugs
As there was no efficient patent protection between 1970 and 2005, many
Indian drug producers copied expensive original preparations by foreign
firms and produced these generics by means of alternative production
procedures. This proved more cost-efficient than the expensive development
of original preparations as no funds were required for research, which
contained the financial risks.
This spending may come to as much as EUR 600 m for only one drug.
This kind of money could previously only be raised by large corporations in
the industrial countries.
The competitiveness of generics producers is based on cost-efficient
production. In this field, Indian companies are currently in top position. At
one-fifth, India’s share in the global market for generic drugs is considerably
higher than its share in the overall pharmaceutical market (approx. 2%). At
the same time, India’s pharmaceutical companies gained know-how in the
manufacture of generic drugs. Hence the name “pharmaceutical cy of the
poor” which is frequently applied to India. This is of significance for the
domestic market as disposable income is as little as EUR 1,900 per year for
roughly 140 million of the total of 192 million Indian households, which
means the majority of Indians, cannot afford expensive western preparations.
Exports of Pharmaceutical Products
In 2006, India’s pharmaceutical industry exported products worth EUR
bn, up from only EUR 650 m in 1996, which was due to the fact that
demand for low-cost generic drugs is strongly on the rise, above all in the US,
Europe and Japan. At 22%, export growth in 2006 was even twice as high as the
global average and in Germany (roughly 11% each). Meanwhile, India’s export
ratio has reached 32% about double the figure registered ten years ago. For

10
some time now, India has exported more pharmaceutical products than it
imports. Over the last ten years, the export surplus has risen from about EUR
370 m to currently just under EUR 2 bn. Slightly over 80% of the drugs are sold
to the US and Europe, where Indian companies are benefiting from the
population’s purchasing power as well as regulatory changes (greater cost-
consciousness). By contrast, traditional sales markets such as Russia, Southeast
Asia, Africa and Latin America have lost its importance. However, only 60
production locations of India’s pharmaceutical sector have been certified by the
World Health Organization, which implies they comply with the strict quality
standards imposed by the US Food and Drug Administration (FDA), Compliance
with FDA standards is the precondition for selling products on the important US
market.

POPULATION GROWTH AND PHARMACEUTICAL BUSINESS IN

INDIA
India’s pharmaceutical sector is receiving a major boost from
population growth. According to UN estimates, the population total looks set
to rise from 1.1 bn at present to 1.4 bn in 2020. Up until 2020, India will see as
many children being born as there are people living in Germany, France, the
UK and Italy together. By 2025, India will probably have overtaken China as
the world's most populous Country. Its population growth results, not least from
higher life expectancy. This is attributable, among other things, to improved
preventive healthcare. Of course, though, average life expectancy in India is
still markedly lower than in western countries. While the figure is 64 years for
men and 66 years for women in India, life expectancy in Germany is 76
years for men and 82 years for women.

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1.3 COMPANY PROFILE
The UDAYA PHARMA marketing company was started in 2016. The
owner of this marketing company is Dr.A.C.T. Arjun Singh, M.B.B.S. our head
office in Chennai.
WORKING TIME
The working time of Udaya Pharma is from 9.30 AM t0 9.00 PM.

NUMBER OF STAFF WORKING IN UDAYA PHARMA

In Udaya Pharma marketing there are 12 employers are working. From
there one members is in account section 3 members are in billing section and 8
members are as sales representative.

1.4 OBJECTIVE OF THE STUDY

Primary objectives
To study the level of dealer efficiency towards.
Secondary objective
 To assess the effectiveness of promotional tools to improve the sales as
Opined by the dealers.
 To analyze the factors that affects the dealer’s preference in dealing with
Pharma.
 To understand the strength and weakness of Udaya Pharma distribution.
 To study the efficiency of dealers towards dealer service, availability etc
from the dealer.
 To understand how pharmaceutical company, launch their product and
dealer efficiency.

 To know what promotional strategies are used by pharmaceutical

companies to sell their products in the market. To understand what is the
role played by sales representatives in this regard.

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1.5 NEED FOR THE STUDY

The researcher aims at finding ways of improving the market share of

Udaya Pharma.
In this case the actual users of Pharma are very much aware of udaya and
other brands of Pharma available in the market.
Therefore, the firm which wants to improve its market share should study
the dealer efficiency.
1.6 SCOPE
The scope of this Project is to understand and describe the various stages
that are associated with pharmacy i.e. discovery, development, action, safety,
formulation, use, quality control, packaging, storage, marketing etc. Pharmacy is
one of the foremost amongst future economy drivers. It is committed to deliver
high quality pharma’s and formulation at an affordable price for the general
public, so that majority of people can afford it.

1.7 LIMITATION OF THE STUDY

The pharmaceutical industry is one of the major, most successful also
rapidly growing industries worldwide. It contributes significantly to the
economies of many countries all around the world, both as a major employer and
as an export earner.

Marketing and sales of pharmaceutical products is very different from

other products such as say groceries, cosmetics, food items, vehicles, etc. One,
pharmaceutical products can only be obtained from a chemist on a doctor’s
prescription. Thus here the customer is the doctor, who is well versed in
pharmacology.

13
 CHAPTER 2

LITRATURE RVIEW

On 1st January 2005, Indian Pharmaceutical industry aligned itself to the

global standards due to the enactment of an amendment to , India‟s patent law ‟,
this change was considered highly significant because the amendment came after
a gap of 33 years (India‟s patent law was introduced in 1972). This move was
initiated in line with the WTO‟s Trade Related Aspects Of Intellectual Property
Rights (TRIPS) agreement, which mandated protection on both products and
processes for a period of 20 years. To add to this intensifying competitive
scenario, potential regulatory interventions could hurt pricing in long run and to
top it the introduction of product patent regime [The Indian Patents (Amendment)
act 2005] will significantly reduce the basket of products available for
introduction.(Sharma Shashi, 2007). Despite of all the challenges Indian
Pharmaceutical industry is all set to score new heights in the near future. The top
10 Pharma companies of India have contributed to 41% of total Indian Pharma
market, which is higher than its contribution of 39% in 2010 and these companies
had a collective growth of 9% that is lower than the growth of Indian Pharma
market (PwC study,2013). There has been a slowdown in the growth of the top
Indian as well as Multinational companies. However, the slowdown is more
prominent in the MNCs than in the Indian companies. In Pharma marketing
sector in India, each type of firm has its own marketing strategy. While MNCs
take on a more aggressive outlook towards Indian market due to changing
marketing environments inside as well as outside the country, the domestic
companies try to leverage upon there expanded field force. Another interesting
feature about this sector is that top 10 Pharma firms hold even less than 50% of
the market share and making the conditions worse, the implementation of „
National Pharmaceutical Pricing Policy 2012‟ (NPPP) by GOI (Government of

14
India) has resulted in margin erosion from 20% and 10% to 16% and 8% for
retailers and stockists respectively. This has reduced the interest of these
distribution channel members in the distribution of pharmaceutical products.
Further, a uniform code for sales and marketing practices and compulsory
licensing has made promotion tougher and competition intense in this sector.
Although the industry reviews seem very positive for Indian Pharmaceutical
market but the domestic market scenario is not as rosy a picture as it may seem
to an outsider. In a development in July 2012, a joint meeting of IPA(Indian
Pharmaceutical Alliance), OPPI( organization of pharmaceutical producers of
India), IDMA( Indian drug manufacturers association), the Indian Pharma
companies have agreed in principle to enforce a code that will restrict them from
offering gifts or other sops to doctors(PTI,July 2012). Both NPPP &
Pharmaceutical marketing code regulations have been enforced due to the fact
that competitive pressure in the domestic formulation market has been rising
steadily for sometime due to increase in marketing efforts by domestic players.
MNCs have renewed their focus in India, smaller players contribute by offering
huge discount incentives to the distribution network and doctors.(pharmaceutical
industry update 2012). Moreover Pharma marketing falls under the ambit of
certain regulations. Under the existing system wherein the Pharma products
cannot be advertised and Pharma companies cannot directly or indirectly sponsor
travel, entertainment, and hospitality for medical practitioners and their
families.(Kolhatkar, Inamdar 2012). Till 2012 the Prescription generation from
the customers (doctors) was primarily based on the sales efforts exerted by the
field force of the company along with the sales promotion efforts exerted at the
distributor end.(Sagar & Kalaskar, 2012) but due to intense competition at
present and an expected, further intensification of the same in near future, with
MNCs turning their prime focus, in India, the survival of the fittest and smartest
marketer will come into play.Export markets will surely become lucrative in near
future, for Indian Pharmaceutical companies but considering the trends of the

15
Indian Pharma market, it will be fruitful for the companies to focus upon and
consolidate their market share in their home market first of all and then start
looking for greener pastures outside.(Indian Pharma summit 2015)
Customer relationship management (CRM) is the strategic process of
shaping the interactions between a company and its customers with the goal of
maximizing current and lifetime value of customers for the company as well as
maximizing, satisfaction for customers. CRM is a complex set of activities that
together form the basis for a sustainable and hard-to-imitate competitive
advantage because it involves vital customer-focused strategies. Foundation of
CRM in the pharmaceutical industry is based on the prescribers (i.e. doctor) and
sales force relationship. Pharmaceutical firms spend a large amount of money on
marketing communication directed towards physicians. Traditionally,
salespeople in the pharmaceutical industry have been held accountable for short-
term revenue generation to achieve higher sales volumes. However, due to the
entry of more players in the market over the last decade, the matrix of success for
pharmaceutical marketing has shifted perceptibly from customer revenue to
customer profitability. Pharmaceutical companies rely on sales/medical
representatives to deliver marketing messages to the Doctors. A sales/medical
representative prepares a customer list (of doctors) in his or her sales territory
and prepare their call plans for the day/week/month in accordance with this
customer list.
Foundation of CRM in the pharmaceutical industry is based on the
prescribers (i.e. doctor) and sales force relationship. Pharmaceutical firms spend
a large amount of money on marketing communication directed towards
physicians. For example, the firm spent $ 8.5 billion on marketing
communication( Padhy & Patnaik, 2008) directed at physicians (Wittink, 2002,
Neslin, 2001) in the year 2000. Out of the above expenditure, the major head was
under the detailing budget that included personal sales calls on physicians. Since
detailing is a personal interaction between a physician and the firms

16
representatives, the budget allocated are spent at the individual physician level
for generating Long-term prescriptions for patients (Morelli and Konigsberg,
1992). Researchers (Narayanan, Manchand and Chintagunta, 2005) have also
argued that such marketing efforts made by the firms may have both informative
(e.g. reducing cognitive uncertainty) and a persuasive (e.g. inducing positive
affect roles). The most useful research in this direction is probably the sparse
literature in medicine that examines the motives of physicians while dispensing
free samples to the patients. Such motives could emanate from factors such as:
(1) financial savings; (2) convenience; (3) immediate initiation of therapy (4)
demonstrating appropriate use of drugs; (5) adjustment of doses; (6) evaluating
effectiveness of adverse effects of drugs (Chew, et al., 2000; Duffy and Clark,
2003) Studies (Gönül et al., 2001) have revealed that detailing has a positive and
significant effect on doctors prescription of specific brand of drugs. Others find
that detailing has a very modest effect (Mizik and Jacobson, 2004) or no effect at
all (Rosenthal et al., 2003) on brand prescriptions or sales( Leeflang et al., 2004)
pointed that the incongruent effects of detailing are mainly due to the marketing
expenditure made by the firms across different brands. Promotion of brands
would vary in accordance with Physicians preference and responsiveness of the
marketers to promote them through detailing, frequent meeting or by using other
promotional instruments.Though marketing efforts by pharmaceutical companies
have positively affected the physicians. Prescriptions, diminishing returns to
detailing have also been frequently reported (Manchanda, Rossi and Chintagunta
2004) found that product detailing had positive effects on prescription behavior
of high-volume physicians, while the low-volume physician were found to be
more attentive and responsive towards detailing. Researches in the past also
revealed that Detailing (30.6 percent) and sampling (50.6 percent) to physicians
amount to 81 percent of promotion spending by pharmaceutical firms in 2000
(Rosenthal et. al., 2003).

17
 CHAPTER 3
RESEARCH METHODOLOGY

A Research Methodology defines the purpose of the research, how it

proceeds, how to measure progress and what constitute success with respect to
the objectives determined for carrying out the research study. The appropriate
research design formulated is detailed below.

Exploratory research: this kind of research has the primary objective of

development of insights into the problem. It studies the main area where the
problem lies and also tries to evaluate some appropriate courses of action. The
research methodology for the present study has been adopted to reflect these
realties and help reach the logical conclusion in an objective and scientific
manner. The present study contemplated an exploratory research

Research Design

The research design is the basic framework, which provides guidelines for
the rest of the research process. The present research can be said to be
exploratory. The research design determines the direction of the study throughout
and the procedures to be followed. It determines the data collection method,
sampling method, the fieldwork and so on.

Nature of Data

Primary Data: Primary data is basically fresh data collected directly from
the target respondents; it could be collected through
Questionnaire Surveys, Interviews, Focus Group
Discussions Etc.

Secondary Data: Secondary data that is already available and published. It

could be internal and external source of data.

18
Internal source: which originates from the specific field or area where research
is carried out e.g. publish broachers, official reports etc.

External Source: This originates outside the field of study like books,
periodicals, journals, newspapers and the Internet.

Data Collection

Primary data: Primary data was selected from the sample by a self-
administrated questionnaire in presence of the Dealer.

SAMPLE SIZE:
Sample size : 100
Sample area : Nagercoil
Sample Unit : Officials of many pharmaceutical companies, medical
Practioneers, medical representatives in Nagercoil
SECONDARY DATA: Secondary data was collected through
 Articles,
 Reports,
 Journals,
 Magazines,
 Newspapers and
 Internet

Sampling Technique

Random sampling technique is generally employed to extract the fruitful

results. This includes the overall design, the sampling procedure, the data
collection methods, the field methods and the analysis procedures

19
Sampling Procedure Actually Employed:

The process employed to select the sample was simple random sampling.
Simple random sampling refers to that sampling technique in which each and
every unit of the population has an equal and same opportunity of being on the
sample. In simple random sampling, which item gets selected is just a matter of
chance.

Analytical Tools:

Simple statistical tools have been used in the present study to analyze and
interpret the data collected from the field. The study has used percentiles method
and the data are presented in the form of tables and diagrams.

20
 CHAPTER-IV
ANALYSIS, INTERPRETATION AND INFERENCE
Analysis:
Analysis is classifying and rearranging the raw data to arrive at meaningful
interpretation.
Interpretation:
Interpretation is essential because it brings the outcome of the analysis into
forefront.
 It is through interpretation that the researcher can understand the abstract
principles that work beneath his founds. Through this he can linkup the same
abstract with those of other studies having the same abstract principle.
 Interpretation leads the establishment of explanatory concepts that can serve as
a guide for tutor research studies.
 Research can appreciate only through interpretation which can make other to
understand of researcher finding a per project study. The data collect are
analysed sing simple percentage tool as the against the total number of the
respondents.
 The content analysis presented in the form of tables and charts.

21
 TABLE – 4.1

AGE – WISE CLASSIFICATION OF DEALERS

Age group No. of Dealers % of dealers

Below 25 6 12

26 – 45 35 70

Above – 45 9 18

Total 50 100%

80
70
70

60

50

40

30

20 18
12
10

0
Below 25 26 – 45 Above – 45

% of dealers

FIG 4.1 AGE-WISE CLASSIFICATION OF DEALERS

22
INFERENCE:
From the above table and chart, it infer that Out of the 50 dealers surveyed,
a good majority of 70% belongs to the age group of 26-45 years, while 18% is
above 45 years of age, only 12% is below 25 years of age.

TABLE – 4. 2
EXPERIENCE – WISE CLASSIFICATION OF DEALERS

Experience No. of Dealers % of dealers

5-10 33 66

11-15 8 16

16-20 2 4

20 Above 7 14

Total 50 100%

70 66

60

50

40

30

20 16
14

10
4

0
10-May 15-Nov 16-20 20 Above
% of dealers

FIG 4.2 EXPERIENCE – WISE CLASSIFICATION OF DEALERS

23
INFERENCE
From the above table and chart, it infers that Of the 50 dealers surveyed,
a good majority of 66% has an experience of 5/10 years. 16% has (10/15 years,
14% of the dealers has above 25 years of experience.

TABLE –4.3
MONTHLY SALES TURNOVER OF DEALERS

Sales (intones) per

No. of Dealers % of dealers
month

10-50 9 18

51-100 3 6

101-150 8 16

150 & Above 30 60

Total 50 100%

70

60
60

50

40

30

20 18
16

10
6

0
Oct-50 51-100 101-150 150 & Above

% of dealers

FIG 4.3 MONTHLY SALES TURNOVER OF DEALERS

24
 INFERENCE
From the above table and chart, it infer that Out of the 50 dealers surveyed
a good majority of 60% enjoys monthly sales turnover of above 200 tones, while
18% makes only (10-50) tones a month.

TABLE – 4.4
RATING FOR THE VARIOUS FACTORS OF UDAYA PHARMA

V.Good Good O.K Poor Weighted Weighted

Attributes/Rating Rank
4 3 2 1 Score Average
20 18 7 5
Price 153 3.06 1
80 54 14 5
10 15 13 12
Credit period 123 2.46 4
40 45 26 12
Advertisement 16 12 8 14
130 2.06 3
64 36 16 14
22 8 15 5
Profit Margin 147 2.94 2
88 24 30 5

25
180

160 153
147

140
130
123

120

100

80

60

40

20

0 0
0
1 2 3 4 5 6 7 8 9 10

Weighted Score

FIG 4.4 RATING FOR THE VARIOUS FACTORS OF UDAYA PHARMA

INFERENCE

From the above table and chart, it infer that pricing of Udaya Pharma and
profit margin served and score maximum, while credit period given and
advertising allowance needs to be given focus.

26
 TABLE – 4.5

PRIMARY FACTORS INFLUENCING DEALERSHIP OF UDAYA PHARMA

Factors No. of Dealers % of dealers

Credit Period 7 14

Agency support 4 8

Advertising 9 18

Profit margin 30 60

Total 50 100%

70

60
60

50

40

30

20 18
14

10 8

0
Credit Period Agency support Advertising Profit margin

FIG 4.5 PRIMARY FACTORS INFLUENCING DEALERSHIP OF UDAYA PHARMA

27
INFERENCE

From the above table and chart, it infer that more than half (60%) of the dealers
prefer Udaya Pharma because of the profit margin enjoyed, while advertising, credit
period and agency support follow the order with a marginal score 8% to 18%.
TABLE 4.6
Practicing as a medical practicener
S. No Year No of Respondent Percentage
1 Less than one year 17 17
2 From one to Five years 32 32
3 Five to Ten years 36 36
4 More than Ten Years 12 12
5 Can not remember 03 03
Total 100 100

40%

35%

30%
Less than five years

25% Five to ten years

Ten to Twenty years
20%
More than twenty years

15% Can not remember

10%

5%

0%

Fig 4.6: Practicing as a medical practicener

28
Interpretation:
At the initial stage of the research, an attempt was made to understand the
profile of the doctors in terms of their experience in the industry. Great
care was taken to ensure that the sample is adequate and representative of
the universe.

TABLE 4.7
The fastest growing segments of the Indian economy
S. No Fastest Growing No of Respondent Percentage
1 Agree 43 43
2 Strongly Agree 37 37
3 Disagree 09 09
4 Strongly Disagree 04 04
5 Do not know/Can not say 07 07
Total 100 100

29
 45%

40%

35%
Agree
30%
Strongly Agree
25% Disagree

20% Strongly Disagree

Do not know/ Can not say
15%

10%

5%

0%

Fig 4.7: The fastest growing segments of the Indian economy

Interpretation:
India’s pharmaceutical industry is one of the fastest growing segments of
the Indian economy and this is also one of the vital industrial segments
which are directly related to the health of the nation.
TABLE 4.8
Pharmaceutical segments
S. No Fastest Growing No of Respondent Percentage
1 Agree 50 50
2 Strongly Agree 32 32
3 Disagree 10 10
4 Strongly Disagree 04 04
5 Do not know/Can not say 04 04
Total 100 100

30
 50%
45%
40%
Agree
35%
Strongly Agree
30%
Disagree
25%
Strongly Disagree
20%
Do not know/ Can not say
15%
10%
5%
0%

Fig 4.8: Pharmaceutical segments

Interpretation:
The structure and the dynamics of the pharmaceutical industry are
different from that of other industrial domains. This is what necessitates
the pharmaceutical sector to formulate a unique marketing strategy to suit
their industry requirements and that appears to be different, in practice and
normative sphere, from other industries.

31
 TABLE 4.9
Pharmaceutical market in India

S. No Marketing No of Respondent Percentage

1 Agree 44 44
2 Strongly Agree 30 30
3 Disagree 10 10
4 Strongly Disagree 06 06
5 Do not know/Can not say 10 10
Total 100 100

45%

40%

35%
Agree
30%
Strongly Agree
25% Disagree
Strongly Disagree
20%
Do not know/ Can not say
15%

10%

5%

0%

Fig 4.9: Pharmaceutical market in India

32
Interpretation:
In general, business in pharmaceutical market is conducted in two major
ways, that is, either by institutional selling or through trade business. The
respondents were of the opinion that institutional selling is quite prevalent
in the Indian pharmaceutical industry.

TABLE 4.10
Innovative and better promotional measures for selling their products
S. No Selling No of Respondent Percentage
1 Agree 60 60
2 Strongly Agree 37 37
3 Disagree 01 01
4 Strongly Disagree 00 00
5 Do not know/Can not say 02 02
Total 100 100

33
 60%

50%

Agree
40% Strongly Agree
Disagree
30%
Strongly Disagree
Do not know/ Can not say
20%

10%

0%

Fig 4.10: Innovative and better promotional measures for selling their products

Interpretation:
Even though it appears to be a serious industry on which the health of the
nation rests, a deeper understanding of the industry will make it clear that
business practices and sales promotion measures are a common thing and
gradually becoming more aggressive and competitive among the
pharmaceutical companies in India.

34
 TABLE 4.11
Prescriptions in favour of their company medicines
S. No Favour No of Respondent Percentage
1 Yes 95 95
2 No 01 01
3 Do not know/ Can not say 04 04
Total 100 100

100%

90%

80%

70%

60%

50%

40% Yes
No
30% Do not know/ Can not say
20%

10%

0%

Yes 95%
No 1%
Do not know/ 4%
Can not say

Fig 4.11: Prescriptions in favour of their company medicines

Interpretation:
Pharmaceutical marketing experts are aware that well timed advertising directed
to doctors tends to boost sales of the brand that spent the marketing dollars. In
the case of marketing directly to health professionals, the question is whether
promotion is (as most pharma companies claim) primarily information on how
the pharma works or is intended to persuade doctors to prescribe the pharma more

35
frequently. The practice of offering gifts to the doctors to influence their
prescriptions is a common strategy among the pharmaceutical companies.
TABLE 4.12
Promotional strategy of pharmaceutical companies
S. No Favour No of Respondent Percentage
1 They aim to inform about the 22 22
product
2 They aim to persuade to purchase 60 60
3 Other motives 03 03
4 Do not know/ Cannot say 15 15
Total 100 100

60%

50%

40%

30%

20% They aim to inform about

the product
They aim to persuade to
10%
purchase
Other motives
0%
Do not know/ Can not say
They aim to 22%
inform about
the product
They aim to 60%
persuade to
purchase
Other motives 3%
Do not know/ 15%
Can not say

Fig 4.12: Promotional strategy of pharmaceutical companies

36
Interpretation:
The promotional strategy of the pharmaceutical companies is more oriented
towards persuading the doctors to prescribe their products and the patients
to purchase their products than simply to display information on the
quality and availability of the product. This is one criterion which makes
the marketing strategy of the pharmaceutical companies different from
that of others.

Table 4.13
Promotion of pharmaceutical products in India
S. No Promotion No of Respondent Percentage
1 Agree 52 52
2 Strongly Agree 20 20
3 Disagree 20 20
4 Strongly Disagree 03 03
5 Do not know/Can not say 05 05
Total 100 100

37
 60%

50%

Agree
40%
Strongly Agree
Disagree
30% Strongly Disagree
Do not know/ Can not say

20%

10%

0%

Fig 4.13: Promotion of pharmaceutical products in India

Interpretation:
Adherence to ethical standards while pursuing the promotional strategy for
selling their products is a concern in the pharmaceutical industry. It is an
accepted fact that the promotional measures does contain unethical practices.
It is for the government, the industry and the consumers to put a
comprehensive effort to ensure that the practices of unethical standards are
withdrawn from the health industry.

38
 TABLE 4.14
The industry and government regarding
S. No industry and government No of Respondent Percentage
regarding
1 Implement, improve and monitor 74 74
legislation
2 Measures to improve the 86 86
transparency of pharma
companies’ marketing activities

3 Stop the practice of gifts to 67 67

doctors
4 Ensure codes of conduct on 70 70
pharma promotion
5 Other measures 12 12
6 Do not know/Can not say 01 01

39
 90%
Implement, improve and monitor
legislation
80%
Measures to improve the transparency
70% of drug companies’ marketing
activities
60%
Stop the practice of gifts to doctors
50%

40% Ensure codes of conduct on drug

promotion

30%
Other measures
20%

10% Do not know/ Can not say

0%

Fig 4.14: The industry and government regarding

Interpretation:

Whilst the pharmaceutical industry clearly has an important role to play in

tackling the health challenges their involvement in the promotion of
medicines presents a serious conflict of interest. It is equally important that
health professionals have access to independent and up to date advice on
medicines so that they can make informed judgments about the most
appropriate medication for patients.

40
 TABLE 4.15
The Challenges of the Foreign Players

S. No Foreign Players No of Respondent Percentage

1 Yes 36 36
2 No 54 54
3 Do not know/ Can not say 10 10
Total 100 100

60%

50%

40%

30%
yes
no
20%
cant say

10%

0%

yes 36%
no 54%
cant say 10%

Fig 4.15: The Challenges of the Foreign Players

41
 TABLE 4.16: Market size

S. No MARKET SIZE No of Respondent Percentage

1 B2B 23 23
2 B2C 32 32
3 Both 45 45

45%
40%
35%
30%
25%
20% B2B
15% B2C
Both
10%
5%
0%

B2B 23%
B2C 32%
Both 45%

Fig 4.16: Market size

42
 TABLE 4.17: More Profitable
S. No More Profitable No of Respondent Percentage
1 B2B 24 24
2 B2C 47 47
3 Both 31 31

50%
45%
40%
35%
30%
25%
B2B
20%
B2C
15%
Both
10%
5%
0%

B2B 24%
B2C 47%
Both 31%

Fig 4.17: More Profitable

43
 TABLE 4.18
Major challenge from the Marketing
S. No Challenge No of Respondent Percentage
1 Fragmentation of the market 38 38

2 Market risk due to lack of price 22 22

control mechanism

3 MNCs 23 23

4 Others 17 17

Total 100 100

40%

35% fragmentation of the market

30%
risk due to price control
25% mechanism
20% MNC's

15%
Others
10%

5%

0%

Fig 4.18: Major challenge from the Marketing

44
 TABLE 4.19:
Suggest to better market your products
S. No Challenge No of Respondent Percentage
1 Better consumer supply chain 34 38

2 Market risk due to lack of price 42 22

control mechanism

3 Alliance with other corporate 12 23

leaders for promotion of the
product
4 Greater media participation and 10 10
power branding
5 Others 02 02

Total 100 100

45%

40%

35%
better supply chain
30% emotional branding
25% corporate alliances

20% greater media participation

others
15%

10%

5%

0%

Fig 4.19: Suggest to better market your products

45
TABLE 4.20: The pharmaceutical companies in India are shifting their
focus from conventional method of marketing
S. No Focus No of Respondent Percentage
1 Yes 86 86
2 No 05 05
3 Do not know/ Can not say 09 09
Total 100 100

90%
80%
70%
60%
50%
40% yes
30% no
cant say
20%
10%
0%

yes 86%
no 5%
cant say 9%

Fig 4.20: The pharmaceutical companies in India are shifting their focus from
conventional method of marketing

46
 TABLE 4.21:
Distribution channel of marketing
S. No Distribution No of Respondent Percentage
1 Yes 57 57
2 No 28 28
3 Do not know/ Can not say 15 15
Total 100 100

60%

50%

40%

30%
yes
20% no
cant say
10%

0%

yes 57%
no 28%
cant say 15%

Fig 4.22: Distribution channel of marketing

47
 TABLE 4.23
Pharma Marketing in the Present Age
S. No Age No of Respondent Percentage
1 Yes 77 77
2 No 12 12
3 Do not know/ Can not say 11 11
Total 100 100

60%

50%

40%

30%
yes
20% no
cant say
10%

0%

yes 36%
no 54%
cant say 10%

Fig 4.23: Pharma Marketing in the Present Age

48
 TABLE 4.24: Distribution channels will help in marketing of Pharma
products in India

S. No Marketing No of Respondent Percentage

1 Yes 75 77
2 No 07 12
3 Do not know/ Can not say 18 11
Total 100 100

80%

70%

60%

50%

40%
yes
30%
no
20% cant say
10%

0%

yes 75%
no 7%
cant say 18%

Fig 4.24: Distribution channels will help in marketing of Pharma products in

India

49
TABLE 4.25: Major weakness of the pharmaceutical industry’s

S. No Marketing No of Respondent Percentage

1 Branding 07 07
2 Publicity 07 09
3 R&D 77 77
3 Do not know/ Can not say 07 07
Total 100 100

80%

70%

60%

50%

40% branding
publicity
30% R&D

20% cant say

10%

0%
branding 7%
publicity 9%
R&D 77%
cant say 7%

Fig 4.26: Major weakness of the pharmaceutical industry’s

50
 Fig 4.27
Products as a marketing strategy
S. No Marketing No of Respondent Percentage
1 Yes 74 74
2 No 05 05
3 Do not know/ Can not say 21 21
Total 100 100

80%

70%

60%

50%
yes
40% no
cant say
30%

20%

10%

0%

Fig 4.27: Products as a marketing strategy

As regards their marketing strategy, it could be derived from their

responses that they have a large dealer network. A customer may also
contact their branch office in his/her area to get the names and addresses.

51
 They can also supply sections directly. For smaller lots, the traders/
dealers may be contacted
TABLE 4.28:

Pharmaceutical sector in India

S. No Marketing No of Respondent Percentage

1 Yes 21 21
2 No 43 43
3 Do not know/ Can not say 36 36
Total 100 100

45%

40%

35%

30%

25%

20% yes
no
15%
cant say
10%

5%

0%

yes 21%
no 43%
cant say 36%

Fig 4.28: Pharmaceutical sector in India

52
 CHAPTER 5
FINDINGS, INFERENCES & RECOMMENDATIONS

India's pharmaceutical market currently stands ninth in the world market

for pharmaceuticals with a 1.5% share. The market was valued at more than $3
billion last year (1998). At its annual growth rate of 15% (almost double the
world's 6% annual growth rate), this market is expected to reach $6 billion by
2001 and should more than double to $13.3 billion in 2006. India's official OTC
market currently stands at over $130 million, and the industry's heart disease
sector is expected to grow from $90 million now to more than $350 million in
2009.

Current demand in the Indian pharmaceutical sector stands at about $4 to

$5 billion, and is forecast to increase at an annual rate of 15 - 20% in the future.
Nevertheless, average per capita expenditure on pharmaceuticals in India is only
$3 -- compared to $412 in Japan, $222 in Germany and $191 in the US. This is
due in part to the prevalence of alternative healing methods in India, such as
ayurvedic medicine and homeopathy, but also because prices for pharmas have
been kept artificially low by the Indian government. In fact, India's
pharmaceutical industry is one of the most highly regulated industries in the
country. Price controls have a strong effect on profitability in the industry, and
weak patent protection poses a long-term threat to investment in India's pharma
market. Foreign firms also find it difficult to operate in India due to arbitrary
Bureau of Industrial Cost and Pricing (BICP) pricing changes, arbitrary local
FDA decisions, high import duties (about 42%) and complex import procedures.

However, while the pharmaceutical sectors in India will most likely stay
regulated in the short term, there are plans for reform. The sheer size and growth
of India's domestic pharmaceutical industry is making it increasingly difficult for
the government to regulate prices for every single firm, and pressure from the

53
World Trade Organization is also speeding up discussions within the national
government to improve patent protection. As a result, foreign pharmaceutical
firms can expect improved market opportunities in India's enormous pharma
market over next several years.

The Indian pharmaceutical industry is highly fragmented -- there are now

more than 20,000 domestic manufacturers of end-use pharmaceuticals,
particularly because of the industry's low capital requirement and the lack of
product patents. Only about 300 of these are in the organized sector. This
structure causes intense competition, especially in the bulk pharma markets, with
profitability falling as demand expands.

For value purposes, pharmas in India are generally classified into two
categories -- bulk pharmas and formulations. Due to India's low overhead costs,
bulk pharmas comprise the largest sector in the country's pharmaceutical market.
India’s bulk pharma sector also makes up about 6% of the international bulk
pharma market. Pharma intermediates are used as raw materials for the
production of bulk pharmas, which are either sold directly or retained by
companies for the production of formulations. Formulations can be subdivided
into generic pharmas and branded or "ethical" pharmas, the latter of which are
made under process patent and sold under a separate brand name. Expected short-
term growth for the two types of pharmas has been 20% for bulk pharmas and
15% for formulations.

The import of finished pharmaceuticals is almost negligible, and confined

to very specific types like anti-cancer pharmas. In 1994, the import of pharmas,
pharmaceuticals and intermediates was estimated at $450 million, and included
the following: antibiotics, penicillin and its salts, erythromycin and its
preparations, vitamins and provitamins, vaccines (polio, human and veterinary),

54
preparations containing insulin, caustic and other hormones, and tetracycline and
its preparations.

Essential pharmas comprised of antibiotics, antibacterial, anti-TB, anti-

parasitic, and cardiovascular constitute a major portion of turnover of the
industry. Indian companies dominate this class of pharmas with a market share
of 71%. Multinational companies are reluctant to enter these markets as most of
them are under government price controls.

Pharmaceutical Industry is one of the most intense knowledge driven

industry, which is continuously in a state of dynamic transition. Indian
pharmaceutical industry is climbing up the value chain from bringing a pure
reverse engineering industry focus on domestic market. The industry is moving
towards basic research driven expert oriented global presence and providing wide
range of value added quality product and services. The pharmacy formulation
market varies radically from the consumer market in many ways. The rules
governing the pharmacy market are different except a few over-the-counter
(OTC) pharmas. Pharma companies are not allowed to publicly market their
products. Marketing has to be restricted to promotional campaigns, advertisement
only in medicinal magazines, journals etc., through medical representatives. It is
not a mean of mass communication, which is usually applicable to consumer
products. In the process of pharmaceutical marketing, market segmentation,
targeting and brand differentiation is considered to be challenging compared to
the consumer marketing.

Unlike any other businesses, marketing mix and its operatives for Pharma
industry are very peculiar. The pharmaceutical industry is one of the few which
cater to unique situations. Here the decision maker is the prescriber i.e. doctor
while actual user of the product is a patient. Patient purchases product only
because of doctor’s advice and hence product should satisfy the conditions of

55
physician. Even if all other parameters are correct, the product might still fail
because of improper promotion. Personal selling is the major promotional
method in pharma marketing.

Brand management, particularly promotion is a very difficult task in every

Industry / Business. It is particularly difficult in those businesses where the
competition is intense, market is crowded with variety of similar looking
products and especially, when the end user cannot make choices of his/her own,
but has to use the product on some expert’s recommendations. Pharmaceutical is
such one of the most intense knowledge driven industry, which is continuously
in a state of dynamic transition. Pharmacy can be defined as “Complex matrix of
process, operations and organization, involved in the discovery development and
manufacture of pharma and medication.” The pharmaceutical industry is the
lifeline industry, which plays a very important role in building strong human
capital of country and very essential for economic growth and development.
Indian pharmaceutical industry is climbing up the value chain from bringing a
pure reverse engineering industry focus on domestic market. The industry is
moving towards basic research driven expert oriented global presence and
providing wide range of value added quality product and services.

Considering the complexities in marketing process in pharmaceutical

business, while launching a new formulation in the existing markets or launching
new formulations in the new markets, product differentiation is necessary for
proper brand promotion. Since, for the prescription products, the end-customer,
i.e. patient or his/her relatives are unable to take any decision and the product is
necessarily recommended by the expert, i.e. physician or doctor, it is imperative
that this brand promotion efforts to be aimed at primarily towards the physician
or doctor and secondarily to the pharma retailer as he plays an important role in
dispensing the prescribed brand.

56
 While launching the new formulation, there can be dilemma in the mind
of the filed manager on diverting existing field force for the promotion of the
field force, perhaps at the cost of old and established products. However, it is
most necessary to do so as it can only help product differentiation, brand
promotion and stabilization of the new product in the market. Nevertheless, one
question remains and that is whether, the research findings are universally true
or they are geography specific. One can get the answer only when such studies
are conducted at multiple places simultaneously.

The results of such studies can be generalized to arrive at possible answer.

Companies realize it is often not enough to spend like your competitor. In fact,
you have to outspend the competition, especially in areas such as market research
and patient education, to make significant impact on your position in the market

57
 CONCLUSIONS

Support the provision of independent information on pharmas for consumers

and health professionals.

Implement and enforce a ban on gifts to doctors.

Enforce strict sanctions that will deter poor corporate practice in Dealer
efficiency.

Take measures to improve the transparency of pharma companies’ marketing

activities and seriously address the conflict of interest encountered in pharma
companies’ funding of medical education.

Ensuring high standards in the promotion of medicines is important to

consumers’ health and helps to save money for health providers and patients.
Without proper controls consumers can be subject to misleading or inaccurate
claims and the promotion of expensive branded medicines that have no greater
medical value than cheaper non-branded products. Whilst the pharmaceutical
industry clearly has an important role to play in tackling the health challenges
their involvement in the promotion of medicines presents a serious conflict of
interest.

It is equally important that health professionals have access to independent

and up to date advice on medicines so that they can make informed judgements
about the most appropriate medication for patients. Governments must make
continued medical education (CME) a priority and alleviate the need for doctors
to rely on industry-dominated information provision mechanisms.

Improved regulation of pharma promotion will generate a number of

benefits for various stakeholders. Consumers will have a better chance of getting
the most appropriate pharma for their condition. Regulations that lead to

58
improved pharma use can lower direct costs (e.g. subsidy costs and import costs)
which should be welcomed by governments and tax payers. Finally, socially
responsible pharma companies will also benefit if regulation helps to create a
level playing field and prevent unscrupulous companies from manipulating the
market through irresponsible marketing.

The pharmaceutical industry

Key recommendations at the company level:

Stop the practice of gifts to doctors

Implement rigorous policies on vetting of pharma promotion materials and

adherence to existing codes of conduct

Provide transparent and verifiable information on the precise nature of

relationships and associated funding for all stakeholder groups, including health
professionals, pharmacists, students, journalists, clinical research organizations
and patient groups.

59
 QUESTIONNAIRE

1. Name & Address :

a) Below 25
b) 26-45
c) above 45

2. How many years are you doing this business?

a) Below 10
b) 11-15
c) 16-20
d) above 20

3. Whether the company conducts any dealer’s promotion programme?

(Last one Year)
a) yes.
b) No

4. Are you getting the Pharma regularly from Udaya Pharma?

a) Yes
b) No
5. For how many years you are practicing as a medical practicener (Doctor)?
a) Less than one year ----------------------------------
b) From one to five years -----------------------------
c) Five to Ten years -----------------------------------
d) More than Ten years -------------------------------
e) Can not remember ---------------------------------

60
6. Do you agree that India’s pharmaceutical industry is one of the fastest
growing segments of the Indian economy?
a) Agree --------------------------------------
b) Strongly Agree ---------------------------
c) Disagree ----------------------------------
d) Strongly Disagree -----------------------
e) Do not know/ Can not say -------------

7. Do you agree that the marketing strategy of the pharmaceutical industry

should be different from the marketing strategy in other industrial
segments?
a) Agree ------------------------------------
b) Strongly Agree -------------------------
c) Disagree --------------------------------
d) Strongly Disagree --------------------
e) Do not know/ Can not say ----------

8.Do you agree that institutional selling is quite prevalent when it comes to
pharmaceutical market in India?
a) Agree ------------------------------------
b) Strongly Agree -------------------------
c) Disagree --------------------------------
d) Strongly Disagree ---------------------
e) Do not know/ Can not say ------------

61
9.Do you agree that the pharmaceutical companies resort to promotional
measures for selling their products?
a) Agree --------------------------------------
b) Strongly Agree ---------------------------
c) Disagree ----------------------------------
d) Strongly Disagree -----------------------
e) Do not know/ Can not say -------------

10. Does the Pharmaceutical companies offer gifts to the doctors to influence
their prescriptions in favour of their company medicines?
a) Yes --------------------------------------------
b) No ---------------------------------------------
c) Do not know/ Can not say -----------------

11.Out of the following which one is more correct when it comes promotional
strategy of pharmaceutical companies?
a) They aim to inform about the product ---------------
b) They aim to persuade to purchase --------------------
c) Other motives -------------------------------------------
d) Do not know/ Can not say -----------------------------

12.Do you agree that unethical standards exist in the promotion of

pharmaceutical products in India?
a) Agree ------------------------------------
b) Strongly Agree -------------------------
c) Disagree --------------------------------
d) Strongly Disagree ---------------------
e) Do not know/ Can not say ------------

62
13.Your recommendation to the industry and government regarding the
promotional strategy of the pharmaceutical companies? You can choose
more than one option.
a) Implement, improve and monitor legislation -----------------
b) Measures to improve the transparency of pharma companies’
marketing activities ------------------------------------------------
c) Stop the practice of gifts to doctors -----------------------------
d) Ensure codes of conduct on pharma promotion -------------------
e) Other measures -----------------------------------------------------
f) Do not know/ Can not say ----------------------------------------

14.Do you think that the entry of Multinationals is a major challenge to the
domestic players in the pharmaceutical market and are they ready to face
the challenges of the foreign players?
a) Yes -------------------------------------------------
b) No --------------------------------------------------
c) Do not know/ Can not say-----------------------

15. What type of marketing strategy would you prefer to expand your
market size?
a) B2B---------------------------------------------------------------
b) B2C ---------------------------------------------------------------
c) Both ---------------------------------------------------------------
16. What type of marketing strategy do you as more profitable?
a) B2B----------------------------------------------------------------
b) B2C ---------------------------------------------------------------
c) Both ---------------------------------------------------------------

63
17. What do you think is the major challenge from the marketing point of
view for the pharmaceutical industry in India?
a) Fragmentation of the market -----------------------------
b) Market risk due to lack of price control mechanism--
c) MNCs -------------------------------------------------------
d) Others -------------------------------------------------------
18.What innovative distribution channel do you suggest to better market
your products?
a) Better consumer supply chain---------------------------------
b) Emotional Branding --------------------------------------------
c) Alliance with other corporate leaders for promotion of the product- 12 per
cent
d) Greater media participation and power branding-----------
e) Others ------------------------------------------------------------

19.Are you aware that the pharmaceutical companies in India are shifting
their focus from Conventional method of marketing to non-conventional
method of marketing?
a) Yes -----------------------------------------------
b) No ------------------------------------------------
c) Do not know/ Can not say---------------------

20.Do you think that market ethics/ medical ehics is a major factor in the
new distribution channel of marketing?
a) Yes -----------------------------------------------------
b) No -----------------------------------------------------
c) Do not know/ Can not say --------------------------

64
21.Do you think that these non-conventional marketing methods are
effective methods of pharma marketing in the present age?
a) Yes ----------------------------------------------
b) No -----------------------------------------------
c) Do not know/ Can not say--------------------

22.Do you believe that technology utilization and innovative distribution

channels will help in marketing of pharma products in India?
a) Yes-------------------------------------
b) No--------------------------------------
c) Do not know/ Can not say----------
23.Major Weakness of the pharmaceutical industry’s marketing strategy.
a) Branding ------------------------------
b) Publicity ------------------------------
c) R&D ----------------------------------
d) Do not know / Can not say --------

24.Do you follow branding of products as a Marketing strategy?

a) Yes -----------------------------------
b) No ------------------------------------
c) Do not know/ Can not say --------

25.Do you have a dealer network? Do you sell directly or through dealers?
26.Do you think that Foreign Direct Investment (FDI ) should be allowed
in the pharmaceutical sector in India?

a) Yes-----------------------------------------------
b) No------------------------------------------------
c) Do not know/ Cannot say---------------------

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 BIBLIOGRAPHY
Books
[1] Chaudhary, P. (2007), Rx Factor: Strategic Creativity in Pharmaceutical
Marketing, New Delhi, India: Response Books.
[2] Mittal, D.K. (2018), Pharma and Pharmaceutical Industry, New Delhi,
India: Anmole Publication Pvt. Ltd.
[3] Ramaswamy, V.S. & Meerakumari, N.S. (1996), Marketing Management:
An Indian Prospective, New Delhi, India: Macmillian India Ltd.
[4] Sakaria George (2017), "Reform: The Inside Story," Business Today
(March 7-21), 72- 76.
[5] Smarta, R.B. (2010), "Getting friendly," Advertising and Marketing
(February 1-15), 51- 54.
[6] Smarta, R.B. (2014) "Distribution as a strategic weapon" Advertising and
Marketing (May 16-31), 30-32.
[7] Smarta, R.B. (2013) "The bigger objectives", Advertising and Marketing
(March 1-15), 24-26.
[8] Smarta, R.B. (2015) "Sensible Pricing", Advertising and Marketing
(January 1-15), 74- 76.
[9] (2017), "The Eastern Pharmacist: An Independent Organ of Pharmaceutical
Industry", Trade & Profession (April), XXXI (364), 37-56.

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 Internet website Links
www.governmentstatisticaldata.com
www.historyofpharmaceuticalindustry.com
www.otcpharmaceuticalproducts.com
www.cipla.com
www.bookrags.com/sciences/genetics/antibiotics-wrog.html
www.bookrags.com/others/health/cephalosporines-woh.html
www.indianfoline.com/phar/feat/thmo.html

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