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MAYADERM

A report submitted to
Instructor: Prof. Mukund R. Dixit

For Orientation to Learning Methods at IIMA

By
Sriharsha Vavilala
Ref No: 15364
Section: B

On
18 June 2015

INDIAN INSTITUTE OF MANAGEMENT, AHMEDABAD

Mayaderm faces two major issues: a lack of a proper supply chain system to ensure doctors. After analysing the options of another self-run distribution network and outsourcing of the same I recommend that the latter will be more beneficial as it will increase the sales and provide a better scope for marketing the brand. retailors and customers receive the product whenever necessary.Executive Summary Dr. Shah’s reputation to sell the product. Number of Words: 101 2 . Shah wishes to commercialise Mayaderm and ensure effective support to reach out to its large customer base. He aims at a 30% margin after meeting all the costs. and sole dependence Dr.

..........................................................................................................................................................................Table of Contents Contents Executive Summary................................................................................................... 5 The Options............ 5 Option 1:............................................................................................................................................................................................................................... 6 3 ................................................................................................................................................... 5 Option 2:... 5 Evaluation of Options........................................................................................................................ 6 Recommendation............... 4 The Problem................ 5 Criteria for Evaluation.................................................................................... 2 Situational Analysis.................................................................................... 6 Action Plan.............

Shah’s reputation as well as Mayaderm’s success have led to doctors recommending the cream. i1 There was also a lot of apprehension shown by pharmaceutical companies to sell the product under their name. Shah’s market share hasn’t gone up due to a lack of any proper distribution system. This would require a revenue that an individual might not possess considering that various big brands such as Vicco and GD Labs are branding their products in the same market. Even in Gujarat Dr. marketing and sales. This is due to the unavailability of stock with retailers. An initial solution has to be framed where in enough revenue and sales are generated so that a brand can be created out of Mayaderm. and are adjusting for mediocre or unsuccessful replacements. 4 . untested product. Even though they provide unique results for a variety of diseases its sales have been limited and restricted to mainly Gujarat. Shah’s reputation through its own branding. Shah.Situational Analysis Mayaderm is able to cure problems where many other well-funded drugs and creams have failed. The medicines initial success wasn’t mainly due to its results but due to Dr. 1 22 Considering the low number of products and sales of Maya Medicines might have led to underpayment of the medical representatives considering that they were most likely earning on commission. This was due to the lack of branding for herbal medicines or Mayaderm in addition as the risk involved in endorsing a new. This can be achieved through various advertisement programs targeting the customers who are unable to find. Mayaderm has to grow out of Dr. Shah’s credentials as a doctor and researcher. His efforts to make the brand grow beyond his name came to a standstill when a team of medical representatives quit in 2001 leading to a void in the Sales and Distribution Network. due to lack of revenue and distribution infrastructure is unable to capture the market that he is right now branded in. Dr. 2 Following this incident the marketing was solely by word of mouth and past results. The good will he had brought Mayaderm its initial test subjects. This market is untapped even in Gujarat where Dr.

Outsource the entire production to retailor chain to a bigger Pharmaceutical company so that they can incorporate the cream into their sales and distribution network. But with this. A freedom to market and sell the drug’s best features will be there if the unit is self-governed. Evaluation of Options Option 1: a) It would require investments big enough to hold back the team irrespective of the probably low sales initially. Mayaderm can reach out its initial target customers. The team can also focus on area and city level marketing in the state of Gujarat to increase non-prescription usage. Lacking this will result in a repeat of the 2001 incident of mass quitting. Remake the distribution infrastructure and ensure their loyalty by increasing their salaries and/or commissions through an initial investment. 5 .The Problem How does Mayaderm improve its sales and distribution system to expands its current customer base? The Options 1. whoever is prescribed a drug by a doctor. 2. Criteria for Evaluation Criteria in decreasing order of importance – a) Increasing sales and reaching out to its current market potential b) Improve the marketing of the product to create a brand value and sell its speciality in the market. b) The sale of the initial stock will automatically create a brand amongst the retailors. chemists and customers that might provide for an increase in sales.

At the same time it will not result in any loss of brand amongst Doctors as the product is still manufactured under Dr. Recommendation It is recommended that Dr. While it might reduce immediate profits. it doesn’t require any high investments and will enable in an easier brand making process. Shah’s name and banner.Option 2: a) Outsourcing the sales and distribution network similar to how they successfully contracted with Atra Pharmaceuticals for manufacturing the products will reduce the initial investments by a huge margin considering that the company already has its own network and chain of medicines. b) This will help in increases the brand amongst retailers and chemists as a large firm is endorsing the product. distributors and satisfied retailors. 6 . Such distribution networks while requiring more commission need not spend excessively on free samples and other initial networking as they will possess an already part of a well-established chain of products being supplied to retailors. Shah contract or outsource the sales and distribution chain to an existing and well established Pharmaceutical company. Shah himself will mostly be applicable in this case too. In addition to this any advantages that exist with a unit headed by Dr.

Number of Words: 956 7 .Action Plan 1) Contact various well established Pharmaceutical industries not involved in the skin disease business to take up the contract of sales. 2) Ensure that the company selected has a well-established network and brand in place. and manufacture of various such creams to take control of the sales and distribution network. 3) Facilitate the increase in sales through the previously followed word to mouth marketing with doctors 4) As the sales increase. 5) Start advertising at the same time to ensure that Mayaderm by itself stands as a brand 6) Consider diversification of the product. expand outside Gujarat as well and try to make the current system national.

i April ’10 – March ’12 Sales have been 30. .000 and March ’12 – March ’14 Sales have been 70. This shows that Mayaderm while. and expanded outside Gujarat market as well during this period.830. Per annum sales have risen by only 20% in these two time periods whereas Mayaderm went national. has a decent brand value in Gujarat due to Dr. Shah doesn’t possess the same outside the state.