MARKETING MANAGEMENT

PHARMACEUTICAL INDUSTRY

GROUPGROUP-3
Members Rucha Kapdi Shallot Paul Vineeta Raju Pierre Britto Saurabh Korgaonkar Ankush Rasam Roll No. M1018 M1047 M1059 M1003 M1022 M1040

SYNOPSIS
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The Indian Pharmaceutical Industry Factors influencing growth of pharmaceutical market in India Key players Hetero Healthcare Ltd. Products of Hetero About Hifen Composition Laws and regulations governing Indian Pharmaceuticals Regulatory Bodies 5 Ps Segmentation Competition Feedback

Indian Pharmaceutical Industry

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The Indian pharmaceutical industry came into existence in 1901 Bengal Chemical and Pharmaceutical company started its maiden operation in Calcutta Currently, there are more than 2,400 registered pharmaceutical producers in India

Indian Pharmaceutical Industry

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Highly competitive within the country Low priced industry Contributes about 8% to the world pharmaceutical production Export oriented Well established domestic pharma industry Increased awareness among the people leading to growth of the industry

Factors influencing the growth of pharmaceutical market in India

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The growing population of over a billion A huge patient base Increasing incomes Improving healthcare infrastructure An increase in lifestyle-related diseases such as diabetes, cardiovascular diseases and central nervous system Penetration of health insurance

Challenges faced in marketing of pharmaceutical product

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Increased competition and shortened window of opportunity Varying customer perception The number and the quality of medical representatives High training and re-training costs of sales personnel Busy doctors giving less time for sales calls

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Key Players
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Ranbaxy Laboratories Ltd. Dr. Reddys Laboratories Cipla Glaxo Smithkline (GSK)

Hetero Ltd.
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Established in 1993 It is a Hyderabad based company Hetero Drugs handles the manufacturing and Hetero Healthcare looks after the sales and marketing At present it is ranked within first 50 companies in India It is a research based global pharmaceutical company focused on:
Development , manufacturing and marketing of Active Pharmaceutical Ingredients (APIs)  Intermediate Chemicals & Finished Dosages.

Hetero Ltd.
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Has the widest customer coverage network throughout the nation Hetero was at first involved in manufacture of bulk drugs and later stepped into formulation of drugs Hetero is considered as one of the fastest growing pharmaceutical company with a growth rate of around 80%

Products of Hetero
Hifen y Enuff y Cetraben y Levocet y Fluvir y MPX-CV y Lanol ER y Lornoxi
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About Hifen
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Launched in 2006 Name evolved from the term high fever Consumed to cure infections Best selling product of Hetero Ltd.

About Hifen(contd) Hifen(contd)

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Contributes to a turnover of over 50 Crores within 3 years It is currently in maturity stage of its life cycle It is ranked at No.3 amongst its competitors Prescription of physician is required to purchase it from the retailer

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Composition
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The basic molecule is Cifixime Hetero is the bulk manufacture of Cifixime It is available in tablet, dry syrup as well as in the form of drops Available in 50,100,200 to 400mg in tablets and 30ml or 50 ml in dry syrup and 10 ml in the form of drops

Laws and Regulations governing Indian Pharmaceuticals

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The Drugs and Cosmetics Act, 1940 The Pharmacy Act, 1948 The Drugs and Magic Remedies Act, 1954 The Narcotic Drugs and Psychotropic Substances Act, 1985 The Medicinal and toilet preparations Act, 1956

Regulatory Bodies
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The Ministry of Health & Family Welfare (MoHFW) Ministry of Chemicals and Fertilisers (MoC&F) They play a major role in regulating the pharmaceutical sector in India

There are two major government agencies responsible for drug regulation and control : 1) Drugs Controller of India (DCI) 2) State Food and Drug Administrations (FDAs)
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Drugs Controller of India(DCI)

The DCI, under the Ministry of Health, has five main functions: 1) Controlling the quality of imported drugs 2) Coordinating the activities of State FDAs 3) Enforcing new drug legislation 4) Granting approval to new drugs 5) Controlling the quality of imported drugs
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State food and drugs administration (FDA)

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State FDAs, monitor the drug manufacture, sale, and testing by companies in their jurisdiction It monitors drug quality and safety through pre and post-licensing checks, as well as through periodic inspections and drawing drug samples from companies from time to time There are currently 50,000 drugs all licensed by the FDA

5 Ps
Product y Price y Place y Promotion y Packaging
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Product
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Hifen contains Cefixime as the basic molecule Cefixime is an antibiotic which is used to treat respiratory tract infections, urinary tract infections, typhoid etc. As per the composition of Cifixime, Hifen is classified as Hifen 50,100,200 and 400 tablets,Hifen 50,100 Dry syrup,Hifen CV (Hifen + Clavunic acid),Hifen Drops

Product(contd) Product(contd)
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Tablets are dispersible to assimilate faster in the body Hetero being the bulk manufacture of Cifixime, it therefore offers best quality antibiotic Available at all retail counters Most economical brand Usually cures the patient in 3-4 days

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Price
Product Hifen 200 DT Hifen 100 DT Hifen 50 DT Hifen 50 DS Hifen 100 DS Hifen CV 200 Hifen CV 100 DT Hifen Drops Hifen 400 Size 10 tablets 10 tablets 10 tablets 30ml 30ml 10 tablets 10 tablets 10ml 10 tablets MRP(Rs) 79 45 25 29 47 169 99 39 158 Age Group Adult Adult Child(6-12yrs) Child(6-12yrs) Child(6-12yrs) Adult Adult Infants(0-5 yrs) Adult

Factors affecting price decisions

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Costs of raw material is low,as Hetero itself is a bulk manufacture of Cifixime MRP is low as compared to other brands in the market Price varies according to the composition of Cifixime present VAT of 4% is applicable

Factors affecting price decisions(contd) decisions(contd)

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Major competitors of Hifen are FDCs Zifi and Alkems Taxim-O Zifi is priced at Rs.99 while Taxim-O is priced at Rs.200 per strip of 10 tablets Even if the unit sales of Taxim-O is less than Hifen, the revenue of Taxim-O is higher than Hifen making it the No.2 product During Rainfall there is rise in demand for the product, but this has no effect on the pricing of the product.

Price Control
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Price controls are implemented under a Drug Price Control Orders (DPCO) In 1995, the DPCO was revised twice, once on January 6th and again on July 19th to coordinate the price descriptions of controlled and decontrolled formulations To improve its efforts at drug price control, the government set up the National Pharmaceutical Pricing Authority (NPPA) in August 1997 The NPPA was authorized to fix and revise prices of controlled bulk drugs and monitor the prices of decontrolled drugs and formulations

Place
Company Depot Stockists Retailer

Company

CFA

Stockists

Retailer

Field Channels
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It takes minimum one day for the product to reach to the stockists after placing the order The product from stockists reaches the retailer on the same day after the order is placed Margin of CFAs is 2-3% and stockists have a margin of 10% on MRP The retailers have a margin of 20% on MRP The stockists submit a sales report to the company every month

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Promotion
Sample support y Detailing of doctors To create and arouse interest in the doctors mind regarding products, thus influencing his prescribing habits. Also to emphasize the advantage/benefits and salient features of product.
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Packaging
Packaging of Hifen is done in a standard manner y Silver aluminum foil is used for packing the product y The label and pack insert must be approved by DCI before the drug is marketed
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Labeling of Packet
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Every product is labeled with the following information :

Name of the drug A correct statement of the net content of the drug Content of active ingredients Name and address of the manufacturer Batch or lot number Manufacturing license number (if applicable) Number of the license under which the drug is imported (if applicable) o Date of manufacture and expiration date, which must not exceed 60 months
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Segmentation
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Marketed all over India Available for all age groups Marketing is done indirectly Mostly general practitioners are targeted

Competition
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Approximately 60 competitor brands existed when Hetero had launched Hifen in the market in the year 2006 More than 90% of the companies take raw material(Cifixime) from Hetero This gave Hetero an advantage in pricing and made it the most economical brand A wide customer coverage network along with implementation of strategies & best inputs resulted in the success of Hifen

Feedback
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It is the most essential part of marketing and sales of any product In Hetero as well as in other pharma industries feedback is taken through Retail Chemist Prescription Audit(RCPA) It is conducted to have the knowledge of the unit sales of the product as well as competitors product & to know the customer preference Maintaining a core customer list and meeting them twice in a month

THANKYOU