114 Conference on Excellence in Research and Education (CERE-2013)

Study on Export Marketing Strategies and

Export Performance: An Empirical Analysis
of Indian Pharmaceutical Industry
Satyanarayana Rentala1 and Byram Anand2
Department of Management, Pondicherry University, Karaikal Campus, Karaikal–609605
1 2
E-mail: rentsatya@gmail.com; byramanand_1999@yahoo.co.in

ABSTRACT
Exports play a key role in maintaining balance of payment for every country. In India,
pharmaceutical exports contribute significantly in obtaining foreign exchange for
our country. Various researches have been conducted to explore the relationship
between Export Marketing Strategies (EMS) and their impact on organizational export
performance across various industries in different countries. The previous studies have
tried to identity various strategies and formulate the right marketing mix to enhance
export performance. The present study highlights the various factors affecting the
exporting strategies of pharmaceutical companies in India and attempts to find out the
impact of various demographic variables on the export performance. Descriptive and
inferential statistics using SPSS 16.0 have been used to analyse the data.

1. INTRODUCTION
In 2011, worldwide sales of pharmaceutical formulations reached 1.08 trillion USD,
with an increase of 7.8% over the previous year, and are expected to be worth 1.57
trillion USD by 2020.

Table 1: Pharmaceutical Sales in Major Global Markets

Sales in 2011 Projected Sales in 2020
Market
($) ($)
USA 337 425
Canada 27 31
Europe (Germany, France, Italy, Spain and UK) 205 194
Japan 127 149
Emerging Markets (includes markets like India, China, 205 499
Brazil among others)
Rest of the World 183 273
Total $ 1084 billion $ 1571 billion
Source: Business Monitor International.
Study on Export Marketing Strategies and Export Performance… 115

1.1 Demand Drivers for the Global Pharmaceutical Markets

• Growing and ageing global population: In 2010, there were an estimated 6.9 billion
people in the world. By 2020, the world population will be more than 7.6 billion.
By 2020, more than 13% of the population in world will be 60 years or older.
• Growing sick population: Patients are demanding better treatment and sedentary
lifestyles and age are causing many illnesses.
• Rising incidence of non-communicable and infectious diseases: World Health
Organization predicts that non-communicable diseases will account for 44 million
deaths a year by 2020. This will be 15% more than the number of deaths due to
non-communicable diseases in 2010.
• Higher Affordability: The growing middle-class population with higher disposable
income is able to afford quality healthcare. By 2020, more than 40% of all
households in China, India and Indonesia will be ‘middle-class’ – defined as those
with annual incomes of between 5,000 and 15,000 USD.

1.2 Global Pharmaceutical Industry

During the past two decades there have been significant changes in the global
pharmaceutical industry. These global changes have a significant impact on safety,
competitiveness, and the outlook of the pharmaceutical industry and drug development.
With the cost of innovation and the necessity to achieve economies of scale, the
pharmaceutical industry is continuously re-organizing on a worldwide scale. Over the
past 20 years, there has been an increase in globalization for both innovative and generic
drugs. Globalization in this sector has occurred with respect to both distribution of
medicines in new markets as well as shifting of R&D and manufacturing to lower cost
markets. Fastest growing global markets are China, India, Brazil, Turkey, Indonesia,

Table 2: Global Pharmaceutical Market Growth (2007–2012)

Mature Markets Growth % Emerging Markets Growth %
USA 3–6 China 18–21
Japan 1–4 Brazil 8–11
France 3–6 Turkey 13–16
Germany 3–6 Russia 16–19
Italy 2–5 India 11–14
UK 2–5 Korea 8–11
Spain 5–8 Mexico 6–9
Canada 5–8
Source: IMS Health Market Diagnosis.
116 Conference on Excellence in Research and Education (CERE-2013)

Mexico, South Korea and Russia. U.S. and Europe firms have long dominated the global
pharmaceutical industry. Largest generic manufacturing is being done in India,
China, and Israel. Pharmaceutical manufacturing activity continues to move out of U.S.
and Europe into India, China, SE Asia, Korea, Brazil, Middle East and Russia.
Globalization is also leading to shift in R&D and manufacturing of both innovative and
generic medicines and innovative research is being conducted in countries like China
and India. Research partnerships are developing between innovative companies in
developed and developing countries; also between innovative and generic companies.

2. EXPORTS OF INDIAN PHARMACEUTICAL INDUSTRY

Exports have made significant contribution to Indian pharmaceutical industry’s growth
story, with the critical market of US generics driving the growth. It is estimated that the
sales value of the drugs that will go off-patent between 2012 and 2018 will be 148
billion USD. In addition, the healthcare reforms initiated by the US government, aimed
at reducing healthcare spending and covering a larger proportion of population under
public healthcare, are also likely to provide impetus to growth in the generics market.
Apart from the developed markets, the Indian pharmaceutical companies have
strengthened considerable presence in some of the other fast-growing semi-regulated
markets of Russia, South Africa and some in Latin American countries (Brazil, Mexico,
etc.) and South-East Asia.
These emerging markets offer strong growth prospects for Indian players given that
some of these are branded generics markets, with high out-of-pocket expenditure on
healthcare (unlike developed markets). Some markets have relatively easier regulatory
pathway. Indian companies have also been partnering with MNCs in emerging markets.
Such alliances benefit from the R&D (formulation development) and manufacturing
capabilities of the Indian partners and the extensive marketing and distribution foot
print of the MNCs in those markets. There is also an increasing trend among MNCs
for partnering in the domestic market, where marketing and distribution footprint of
Indian companies and the product portfolio of MNCs is being leveraged upon. Hence,
going forward, India should leverage its strengths in the supply of low-cost, quality
medicines across the world and partner with foreign companies to drive growth and
play a larger role in global pharmaceuticals market.

3. OBJECTIVES OF THE STUDY

The present research is aimed at identifying relation between export marketing strategies
and export performance of Indian pharmaceutical companies. Conceptual framework is
designed to identify the impact of number of markets served, number of product
categories offered and impact of marketing mix on export performance of the firm in
the context of pharmaceutical companies in India.
Study on Export Marketing Strategies and Export Performance… 117

The broad objectives of the study are:

(a) To understand the relation between marketing strategy and export performance.
(b) To identify the various factors of the marketing mix that affects the export
performance of pharmaceutical companies in India.

4. LITERATURE REVIEW
Recent decades have witnessed a growing interest in exporting, on the part of both
governments and corporations, attributable to the substantial benefits gained from the
activity. At the government level, exporting offers an excellent vehicle for economic
development and social welfare; generates sufficient foreign exchange to finance other
economic activities; provides a viable means of coping with balance-of-trade deficit
problems; creates backward and forward linkages in the economy and enriches
employment opportunities (Onkvisit and Shaw 1993, Czinkota and Ronkainen
1995). At the corporate level, exporting contributes to organizational growth; speeds
up technological and marketing innovations; leads to more efficient production;
diversifies business risks accruing from domestic market activity and enhances the
company’s financial position (Terpstra and Sarathy 1994, Bradley 1995).
Increased globalization of trade has led a growing number of firms to search beyond their
traditional domestic markets and focus on high-growth export markets not only to
expand but also to ensure their very survival. As a result, the role of exporting in
firms’ activity has become increasingly important. Recognition of this is reflected in
the fact that the area of export performance has been gaining increased attention among
academics and managers. Research into export performance dates back to the innovating
work of Tookey (1964); since then there have been numerous studies published over the
last four decades that have been concerned with the export performance of the firm.
Exporting is considered the most common foreign market entry mode, particularly
among Small-to-Medium Sized Enterprises (SMEs), due to the minimal business
risks, low resource commitment and high flexibility of action it offers (Young et al.
1989). Two diametrically opposite views exist with regard to the effect of business
experience on export behaviour. One group of researchers suggested that younger firms
are more interested in foreign operations than older ones, the rationale being that the
former find exporting the only feasible strategy available to increase sales and achieve
growth, as opposed to the latter which are often well-entrenched in the domestic
market (Lee and Brasch 1978, Czinkota and Ursic 1983). The other group posited that
established companies are more likely to export, because of extensive experience in
handling business operations and saturated home opportunities (Welch and
Wiedersheim-Paul 1980).
118 Conference on Excellence in Research and Education (CERE-2013)

In today’s competitive global marketplace, the importance of formulating an effective

marketing strategy has been receiving increased attention. The relationship between
export marketing strategy and performance has received considerable attention in the
literature (Christensen et al., 1987; Koh and Robicheaux, 1988; Miesenbock, 1988;
Ford and Leonidou, 1991; Cavusgil and Zou, 1994; Da Rocha and Christensen, 1994).
However, most studies have considered specific marketing strategy elements in isolation
or have explored the relationship between marketing strategy and performance
relationship in the context of a developed country. As such, most empirical examinations
of the relationship have been derived from narrow strategy orientations of exporters
in developed countries, and have not addressed the marketing issues of exporters in
developing economies (Dominguez and Brenes, 1997; Aulakh et al., 2000). Given the
differences between developed and developing economies, the generalization of prior
research to exporters in a developing economy context may not be appropriate
(Aulakh et al., 2000). The lack of research in this area is a limitation in the literature.
Marketing strategy is a means by which firms respond to competitive market conditions.
Traditionally, marketing strategy has been decomposed into the four elements of the
marketing mix, i.e. product, pricing, place and promotion. The linking of marketing
strategy to export performance has been one of the most widely investigated topics in
international marketing research (Daniels and Goyburo, 1976-77; Kacker, 1975;
McGuinness and Little, 1981; Piercy, 1981; Cooper and Kleinschmidt, 1985;
Christensen et al., 1987; Namiki, 1994; Miesenbock, 1988; Ford and Leonidou,
1991; Baird et al., 19 94; Cavusgil and Zou, 1994; Da Rocha and Christensen, 1994;
Zou and Stan, 1998). However, although a great deal of research has been conducted in
the area, the diversity of conceptualizations and performance measurements has led
to inconsistent and contradictory conclusions (Aaby and Slater, 1989). Fortunately,
Cavusgil and Zou (1994) provide an integrative framework for understanding the
relationship of marketing strategy to performance.
Marketing strategy factors refer essentially to the company’s export product, pricing,
distribution and promotion strategy (Albaum, Strandskov and Duerr, 1998) and are
important to superior export performance. A sizeable number of studies examined the
link between export performance and marketing strategy and with few exceptions, found
a positive relationship. Specifically, strong associations were found for product quality
(Dominguez and Sequeira 1993; Louter, Ouwerkerk and Bakker 1991; Ryans 1988),
pricing strategy (Namiki 1994; Samiee and Anckar 1998; Styles and Ambler 1994),
dealer support (Beamish et al., 1993; Cavusgiland Zou 1994; Madsen1989) and
advertising (Amine and Cavusgil 1986; Fraser and Hite 1990; Styles and Ambler 1994).
Organizational factors comprise demographic aspects, operating elements, resource
characteristics and goals of the exporting firm (Leonidou, 1998). Certain organizational
features were hypothesized to lead to superior export performance and confirmed by
Study on Export Marketing Strategies and Export Performance… 119

empirical findings. This was particularly evident in case of the company size, whether
measured in terms of number of employees, sales turnover or total assets, number of
countries exported to, export intensity, number of years in existence and number of
years of exporting experience – and resource availability, where it was found that larger
firms (Cristensen, Da Rocha and Gertner, 1987; Culpan 1989) and those with adequate
human and R&D resources (Beamnis, Craig and McLellan, 1993; Gomez-Mejia, 1988)
perform better in overseas markets.

5. RESEARCH METHODOLOGY
A list of major pharmaceutical companies in India was considered using Prowess,
ORG-Nielson and IMS Databases. From among those companies, the following
companies were chosen for the study based on the healthcare index companies in
Prowess database. The companies considered for the study include Ranbaxy, Dr.
Reddy’s, Cipla, Sun Pharma, Zydus Cadila, Lupin Laboratories, Aurobindo
Pharmaceuticals, Wockhardt, IPCA Laboratories, Biocon, Glenmark and Divi’s
Laboratories.
Product Managers/Export Managers/Country Managers of these companies were
contacted by e-mail and/or telephone for participation in the study. Out of 195
respondents (approximately 10–15 respondents from each organisation) contacted,
64 respondents finally took part in this study either by e-mail or telephone (56 by e-
mail and 8 through telephonic response). 4 e-mail responses were not considered for
the analysis due to incomplete filling of the questionnaire. The final valid sample size
was 60 respondents. The valid resposne per cent was approximately 31 per cent and is
comparable to the response per cent obtained in similar studies. The final break-up of
the respondents from each organisation could not be divulged owing to confidentiality
constraints.
The questionnaire consisted of a total of 12 questions which gathered information
about the demographic profile of the organisations that the respondents represented
and the marketing strategies implemented by the organisation. Question 12 specifically
elicited responses about 16 different elements of the marketing mix using a 5 point
Likert Scale.
The first 11 questions gathered information about the demographic profile of the
organisation. The various parameters included are the following:
1. No. of employees in the organisation.
2. Annual sales turnover of the organisation.
3. Export-Intensity of the organisation (Exports as a percent of total sales turnover).
4. No. of export markets served by the organisation.
5. No. of years of the existence of the organisation.
120 Conference on Excellence in Research and Education (CERE-2013)

6. No. of years of export experience.

7. Predominant mode of exports at the time of entry into the export market
(Direct Exports/Joint Ventures/Acquisition/Subsidiary).
8. Type of formulations and the markets exported to at the time of entry:
(a) Generic exports to under-developed or developing countries
(b) Generic Exports to developed countries
(c) Branded exports to under-developed or developing countries
(d) Branded exports to developed countries.
9. Type of diseases for which formulations are exported (Acute/Chronic/Both);
10. Choose the various therapeutic categories that the organization exports and
indicate the top three potential categories for the future export performance:
(a) Antibiotics (b) Cardiovascular (c) Central Nervous System (d) Anti-Diabetes
(e) Gastro-Intestinal (f) Cough and Cold (g) Anti-Asthmatic (h) Anti-
Inflammatory (i) Anti-Cancer (j) Others (specify)
11. Choose the markets that the organization is engaged in export activities and
indicate the Top three most important markets for the future export performance
(a) North America (b) Europe (c) South America
(d) CIS Markets (e) Asia (f) Africa (g) Rest of the World
Question 12 gathered information about the following items listed on a scale of 1–5
1. Strongly Disagree; 2. Disagree; 3. Neutral; 4. Agree; 5. Strongly Agree
1. Product Quality (PQ)
2. Introduction of New Drug Delivery Systems (IN)
3. Availability of multiple dosage forms (MD)
4. Introduction of combination drugs (CD)
5. Availability of drugs in multiple strengths (MS)
6. Higher expenditure on our R&D activities (RD)
7. Participation trade fairs (TF)
8. Quality and effectiveness of our salesmen (QS)
9. Higher amount of sampling to doctors (AS)
10. Advertising in medical literature (AD)
11. Trade promotion activities (TP)
12. Distribution Channel’s effectiveness (DC)
13. Effectiveness of transportation strategy (TS)
14. Competitive pricing adaptation policy (CP)
15. Longer credit period to distributors (LC)
16. Legal restrictions of export markets (LM)
Study on Export Marketing Strategies and Export Performance… 121

6. FINDINGS OF THE STUDY

It can be seen from the Table 3 that organisations with more number of employees tend
to deliver better export performance. As can be seen from the table, 80 per cent of the
respondents represent organisations with more than 5000 employees. This finding is
in line with the findings of the earlier studies which examined the relation between
organisational demographic factors and export performance. This was particularly
evident in case of the company size – whether measured in terms of number of
employees, sales turnover or total assets and exporting intensity – and resource
availability, where it was found that larger firms (Cristensen, Da Rocha and Gertner
1987; Culpan 1989) and those with adequate human and R&D resources (Beamnis,
Craig and McLellan 1993; Gomez-Mejia 1988) perform better in overseas markets.

Table 3: Number of Employees in the Organisation

No. of Employees Frequency %
Up to 1000 0 0.0
1001–5000 12 20.0
5001–10000 11 18.3
10001–15000 25 41.7
> 15000 12 20.0
Total 60 100

It can be observed from the above Table 4 that 71.7 per cent of the respondents belong
to organisations with an annual sales turnover of more than Rs. 4000 crores. This
finding also proves that larger companies tend to perform better in export markets.

Table 4: Annual Turnover of the Organisation

Annual Turnover (Rs. Crores) Frequency %
1000–2000 8 13.3
2000–4000 9 15.0
4000–6000 15 25.0
6000–8000 10 16.7
8000–10000 18 30.0
Total 60 100

It can be observed from Table 5 that 73 per cent of respondents belong to organisations
with an exporting intensity (ratio of export sales to annual sales turnover) of more than
40 per cent. This is in accordance with the findings of the earlier empirical studies.
122 Conference on Excellence in Research and Education (CERE-2013)

Table 5: Exporting Intensity of the Organisation

Export Contribution to Sales (%) Frequency %
< 20 4 6.7
21–40 12 20.0
41–60 18 30.0
61–80 26 43.3
> 80 0 0.0
Total 60 100

It can be seen from Table 6 that 93.3 per cent of the respondents belong to organisations
which export to more than 25 countries. This is in accordance with the earlier findings of
the empirical studies which reported a positive relation between export performance of
an organisation and the number of contries it exported to.

Table 6: Number of Countries Exporting

No. of Countries Exporting to Frequency %
< 25 4 6.7
25–50 15 25.0
51–75 12 20.0
76–100 9 15.0
> 100 20 33.3
Total 60 100

It can be observed from Table 7 that all the respondents belong to organisations with
more than 20 years of existence while 43.3 per cent of respondents belong to
ogranisations with more than 40 years of existence in their business. When we further
examine the number of years of exporting experience, 91.7 per cent of employees belong
to organisations that have an exporting experience of more than 20 year as can be

Table 7: Number of Years In Business

Years in Business Frequency %
< 20 0 0.0
21–40 34 56.7
41–60 21 35.0
61–80 5 8.3
> 80 0 0.0
Total 60 100
Study on Export Marketing Strategies and Export Performance… 123

observed from Table 8. This is in accordance with the findings of the earlier empirical
studies which reported a positive association between export performance and exporting
experience.

Table 8: Number of Years of Exporting Experience

Years in Exporting Frequency %
< 10 0 0.0
11–20 5 8.3
21–30 25 41.7
31–40 12 20.0
> 40 18 30.0
Total 60 100

It was also observed from seconday data that organisations with long years of existence
have entered the export markets after considerable years of domestic business experience
than the organisations with lesser years of existence. Younger organisations entered into
export marketing in a relatively lesser time frame in comparison to older generation
organisations. Two diametrically opposite views exist with regard to the effect of business
experience on export behaviour. One group of researchers suggested that younger firms
are more interested in foreign operations than older ones, the rationale being that the
former find exporting the only feasible strategy available to increase sales and achieve
growth, as opposed to the latter which are often well-entrenched in the domestic market
(Lee and Brasch 1978, Czinkota and Ursic 1983). The other group posited that
established companies are more likely to export, because of extensive experience in
handling business operations and saturated home opportunities (Welch and
Wiedersheim-Paul 1980).

Table 9: Mode of Exports at the Time of Entry into Export Markets

Mode of Exports Frequency %
Direct Exporting 20 33.3
Joint Venture 10 16.7
Subsidiary 25 41.7
Acquisition 5 8.3
Total 60 100

It can be seen from Table 9 that the most common form of mode of export at the
time of entry as reported by 41.7 per cent of the respondents is through setting up a
subsidiary in the export market. The next most common form of mode of export was
direct exporting, as responded by 33.3 per cent of the respondents. Findings of
124 Conference on Excellence in Research and Education (CERE-2013)

earlier studies have reported that subisidiary route and direct exporting were the
preferred modes of exports at the time of entry.
It can be seen from Table 10 that the most popular type of formuations exported at the
time of entry into export markets were generic exports to developed countries. This is
in line with the observation that the developed countries offered the most promising
export opportunity due to their increasing preference for generic formulations to
reduce their healthcare costs.

Table 10: Type of Formulations Exported at the Time of Entry into Export Markets
Type of Formulations Exported Frequency %
Generic exports to Under Developed or Developing Countries 10 16.7
Generic exports to Developed Countries 25 41.7
Branded exports to Under Developed or Developing Countries 15 25.0
Branded exports to Developed Countries 10 16.7
Total 60 100

As can be seen from Table 11, 83.3 per cent of the respondents reported that they
marketed products for both acute and chronic diseases though there is a higher
propensity towards marketing formulations for chronic disesaes.

Table 11: Types of Medicines Exported

Type of Medicines Exported Frequency %
Only Acute Diseases 5 8.3
Only Chronic Diseases 5 8.3
Both 50 83.3
Total 60 100

Table 12(a): Therapeutic CategoryTable Table 12(b): Ranking of Therapeutic Category

Top Ranked Therapeutic Frequenc
Therapeutic Category Frequency % %
Category y
Antibiotics 40 9.9 Cardiovascular 28 46.7
Cardiovascular 50 12.3 Anti-Diabetes 20 33.3
Central Nervous System 45 11.1 Central Nervous System 12 20.0
Anti-Diabetes 50 12.3 Total 60 100
Gastro-Intestinal 40 9.9
Cough and Cold 40 9.9
Anti-Asthmatic 50 12.3
Anti-Inflammatory 40 9.9
Anti-Cancer 20 4.9
Others 30 7.4
Total 405 100
(Multiple Responses).
Study on Export Marketing Strategies and Export Performance… 125

It is observed from Table 12(a) that the most attractive therapeutic segments for exports
are cardiovascular, anti-diabetes and central nervous system formulations. This is due
to the increasing and higher levels of those disease profiles in the develoed and the
developing countries. It is also observed from Table 12(b) that cardiovasculars is the
most attractive market segment followed by anti-diabetes and central nervous system
formuations.

Table 13(a): Markets Exported Table 13(b): Ranking of Export Market

Market Frequency % Top Ranked Market Frequency %
North America 60 19.0 North America 30 50.0
Europe 45 14.3 South America 16 26.7
South America 35 11.1 Asia 14 23.3
CIS 45 14.3 Total 60 100.0
Asia 50 15.9
Africa 45 14.3
Rest of the World 35 11.1
Total 315 100.0
(Multiple Responses).

It can be observed from Table 13(a) that all the ogranisations are exporting to all the
major markets across the world. The top three most preferred markets are North
America (mostly USA and Canada), South America (Brazil, Argentina and other
countries) and Asia (China, Japan and other countries).

Table 14: Reliability Statistics

Cronbach’s Alpha No. of Items
.676 16

As per Table 14, test for reliability yielded a value of 0.676 which is considered to be
an adequate value for reliability.
Table 15 depicts the correlation value between various variables. It is observed that
product quality is negatively correlated with availability of multiple strengths, high
R&D expenditure, quality of salesmen and distribution channel effectiveness.
Introduction of novel drug delivery systems has a positive correlation with multiple
dosage forms and legal restrictions of export markets. Multiple dosage forms have a
positive correlation with participation in trade fairs, amount of sampling, advertising
in medical literature, trade promotion activities and legal restrictions of export
markets. Combination Drugs have a negative correlation with quality of salesmen
126 Conference on Excellence in Research and Education (CERE-2013)

and distribution channel effectiveness. Multiple strengths have a negative correlation

with transportation strategy. High R&D expenditures have a positive correlation
with trade promotion activities, distribution channel effectiveness and longer credit
period. Participation in trade fairs have a positive correlation with all the variables
and exhibited highest correlation with amount of sampling. Quality of salesmen has
a negative correlation with trade promotion activities and longer credit period.
Amount of sampling has a positive correlation with all the variables and has highest
correlation with competitive pricing policy. Advertising in medical literature has a
positive correlation with all the variables. Trade promotion activities have a negative
correlation with distribution channel effectiveness. Distribution channel effectiveness
has a positive correlation with competitive pricing policy. Transportation strategy,
competitive pricing policy and longer credit period exhibited a positive correlation
with all the other variables.

Table 15: Correlations

PQ IN MD CD MS RD TF QS AS AD TP DC TS CP LC
PQ Pearson Correlation 1
IN Pearson Correlation .572** 1
MD Pearson Correlation .724** .791** 1
CD Pearson Correlation .154 –.238 –.071 1
MS Pearson Correlation –.290* –.456** –.178 .156 1
RD Pearson Correlation –.446** –.200 –.040 .279* .201 1
TF Pearson Correlation .286* –.088 .066 .154 .676** –.446** 1
QS Pearson Correlation –.275* –.480** –.380** –.297* .743** –.286* .642** 1
AS Pearson Correlation .315* –.047 .100 .183 .622** –.428** .960** .565** 1
AD Pearson Correlation .324* –.181 .021 .300* .375** –.177 .456** .293* .438** 1
TP Pearson Correlation .210 –.114 .011 .732** .196 .216 .250 –.254 .286* .223 1
DC Pearson Correlation –.183 –.127 –.042 –.133 .278* .090 .091 .235 .139 0.000 –.070 1
TS Pearson Correlation .015 –.186 –.115 .095 –.040 –.161 .088 .009 .047 –.002 .040 –.254 1
CP Pearson Correlation .157 –.279* –.093 .097 .435** –.537** .830** .533** .797** .238 .128 .043 .279* 1
LC Pearson Correlation .206 –.204 –.032 .889** .216 .327* .206 –.308* .237 .384** .849** –.088 .063 .068 1
LM Pearson Correlation .066 .047 .192 .000 .316* –.040 .431** .183 .472** .021 .085 –.042 .155 .458** .039

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

It can be observed from Table 16 that the top five variables affecting export performance
are introduction to novel drug delivery systems, availability of multiple dosage forms,
legal restrictions of export markets, advertising in medical literature and transportation
strategy. The rules governing the development and manufacturing of medicines are
getting tighter. Both the European Medicines Agency (EMA) and the US Food and
Drug Administration (FDA) now focus more heavily on risk management. The FDA
is building an active surveillance system to monitor the safety of all medicines in the US
Study on Export Marketing Strategies and Export Performance… 127

market. Regulators around the globe are working closely with each other, which
mean that a product rejected in one region is more likely to be rejected in others.
Pharmaceutical companies are focusing their R&D efforts to introduce novel drug
delivery systems and introduce multiple dosage forms of different medicines to
garner more market share in the export markets.

Table 16: Descriptive Statistics

Std.
N Min. Max. Mean Variance
Deviation
PQ (Product Quality) 60 4 5 4.30 .462 .214
IN (Introduction of Novel Drug Delivery 60 4 5 4.57 .500 .250
Systems)
MD (Multiple Dosage Forms) 60 4 5 4.45 .502 .252
CD (Combination Drugs) 60 4 5 4.33 .475 .226
MS (Multiple Strengths) 60 3 5 3.80 .684 .468
RD (High R&D Expenditure) 60 4 5 4.32 .469 .220
TF (Participation in Trade Fairs) 60 3 4 3.30 .462 .214
QS (Quality of Salesmen) 60 4 5 4.15 .360 .130
AS (Amount of Sampling) 60 3 4 3.28 .454 .206
AD (Advertising in Medical Literature) 60 3 5 4.42 .555 .308
TP (Trade Promotion Activities) 60 3 5 3.77 .909 .826
DC (Distribution Channel Effectiveness) 60 3 5 4.00 .803 .644
TS (Transpo rtation Strategy) 60 4 5 4.43 .500 .250
CP (Competitive Pricing Policy) 60 3 4 3.38 .490 .240
LC (Longer Credit Period) 60 4 5 4.35 .481 .231
LM (Legal Restrictions of Export Markets) 60 4 5 4.45 .502 .252
Valid N (listwise) 60

7. CONCLUSIONS
This empirical study attempted to understand the relation between the export marketing
strategies and export performance of Indian pharmaceutical companies. The findings of
the study have been found to support the evidence presented by the earlier studies.
The analysis of this study presented the various demographic factors affecting the export
performance and highlighted the correlation between different elements of the
marketing mix.
Further research in this direction can be undertaken with inclusion of more marketing
mix variables. Due to the limitations of the sample size of the organizations, this
128 Conference on Excellence in Research and Education (CERE-2013)

study could not analyze the differences in export marketing strategies of small, medium
and large companies. Future research can focus in this direction.

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