Shashank Project

Final Project Report
On
“Marketing Strategy”
A report submitted to Sikkim Manipal University, Delhi, as a partial
fulfillment of Part time Post Graduate in Business Management.
Under the Guidance of Mr. Nipun Jain
Submitted To, Submitted By,

Name: Shashank Gaurav Shukla
Centre In charge Roll No : 520963910
SMU, Delhi
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PHARMCHEM
INDEX OF INDUCTION BOOK
Sl. Particulars Page Officer

No. No. responsible for
updating by
date 15.12.2007
1. Welcome to the company 1 Administration
2. Brief history 2-3 Administration
3. Organization chart 4 Administration
4. Management and details of departments 5 Administration
5. Products 6 Marketing
6. Markets 7 Marketing
7. System of administration-committees 8-14 Administration
8. List of holidays 15 Administration
9. Audit policy 16 Finance
10. Taking and handing over charge 17-18 Administration
11. Salary disbursement rules 19 Finance
12. Leave rules 20 Administration
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13. Exit policy 21 Administration
14. Model code of conduct 22-24 Administration
15. SOP of functions of head of departments 25 Administration
16. Salary option available 26 Finance
17. Growth and reward policy 27 Administration
18. Training policy 28 Administration
19. Department policy 29 Administration
20. Production plan 30-31 Production Dept.
21. Traveling rules 32 Finance
22. Policy and SOP for purchase 33-34 Finance
23. Policy and SOP for marketing 35-36 Marketing
24. Medical policy 37 Administration
25. Production planning and implementation 38-39 Production Dept.

rules
26. SOP for Q-C department 40-41 Q.C. Deptt.
27. SOP for Q-A department 42 Q.A. Deptt.
28. SOP for R&D department 43 R&D Deptt.
29. SOP for administration department 44-45 Administration
30. SOP for maintenance department 46 Maintenance
31. SOP for stores 47-50 Finance
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32. SOP for project department 51 Maintenance
33. SOP for logistic 52-53 Purchase &

Marketing
34. Public relation policy 54 C.E.O.
35. Grievance Committee 55 Administration
36. Specimen Appointment Letter 56 Administration
PREFACE
As a student of management, apart from theoretical studies we need to get a deeper insight into
the practical aspects of those theories by working on various projects. So these projects have
high importance in management studies to enhance the knowledge and skills.
Management in India is heading towards a better profession as compared to other professions.
The demand for professional managers is increasing day by day. Working on this project has
been an enriching experience. This project will help me a lot in the professional growth. It has
given us the confidence to prepare for ourselves as fully fledged international marketing
professional in the eminent future. A comprehensive understanding of the principle will
increases the decision-making ability and sharpens the tools for this purpose. .
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The demand for professional managers is increasing day By day. To achieve profession
competence, manager ought to be fully occupied with theory and practical exposure of
management.
A comprehensive Understanding of the principle will increases their Decision making ability
and sharpening their tools for this purpose. The scope of the work under taken by us
includes introduction to basic & major things about the Impact of pharmaceutical
industry on the customer and also their own future aspects.
We would like thank our Respected Chairman ……………., who always been a source of
motivation and support to all the students of MBA. We pay our gratitude to Mr. Nipun Jain,
MD of PHARMCHEM without whose help it would have been impossible to conduct such a
study. We must acknowledge our heartiest thanks to the respondents who spared their precious
time to us.
We have put our maximum effort to gain the information. If any error or mistake is found in
collection data kindly ignore.
CERTIFICATE
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This is to certify that the project work done on “Marketing Strategy” submitted to Sikkim
Manipal University, by Shashak Gaurav Shukla in partial fulfillment of the requirement for
the award of degree of Post Graduate in Business Management is a bonafide work carried out
by them under my supervision and guidance. This project work is the original one has not
been submitted anywhere else for any other degree/diploma.
Date:
Name of the guide:
Place: Delhi Mr. Nipun Jain
(Managing Director)
PHARMCHEM
Seal/Stamp of Guide
ACKNOWLEDGEMENT
No research can blossom from single person’s mind without proper guidance,
assistance and inspiration from various quarters. Our project was given its present
shape by assistance of many people whom we are greatly indebted to. We owe deep
intellectual debt to the numerous people who through their rich and various
contributions have greatly improved our understanding of various concepts of our
project.
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We express our sincere thanks to hon’ble Mr. Nipun Jain (Managing Director,
Pharmchem) for his stimulate discussion, constructive and valuable suggestions that
helped us in this Endeavour. We would like to thank all those people who graciously
helped us by sharing their valuable time, experience & knowledge for completion of
this project.
We take an opportunity to express our sincere thanks to ………… (Chairman, SMU),
and all the staff members of the MBA department for making available all the facilities
in fulfilling the requirements for this reasonable work.
Finally, we thank our parents for their moral support and financial help.
Shashank Gaurav Shukla

Roll No:520963910
DECLARATION
The Final Project project on “Marketing Strategy” is the original work done by me.
This is the property of the institute and use of the report without prior permission of the
institute will be considered illegal and actionable.
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Date:
Shashank Gaurav Shukla

Roll No:520963910
Executive Summary
The project is concerned with the “Marketing Strategy” Work procedures are dealt in detail
along with their drawbacks and scope of improvements in this sector. All the work instructions
are dealt in detail and suggestions are made wherever there is a scope of improving on the
quality of the product and services provided to the market and consumers.
As Pharmaceutical companies in India are growing at a very fast pace and this has made the
Indian pharmaceutical industry as the second largest growing industry. Also the
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pharmaceutical industry in India is the third largest in the world, which will be of US$20
billion by 2015.
But in starting phase, The Indian pharmaceutical industry traces its roots to the 1903 formation
of Bengal Chemical and Pharmaceutical Works in Calcutta by Professor P.C. Roy. During the
first half of the twentieth century, however, and despite modest efforts on the part of the
colonial government to spur local production, India remained largely dependent on the UK,
France, and Germany for medicines. The government took its first concrete steps toward self-
reliance in pharmaceuticals with the establishment of Hindustan Antibiotics Ltd. (HAL) in
1954 and Indian Drugs and Pharmaceuticals Ltd. (IDPL) in 1961. IDPL (in spite of its grossly
inefficient character) became instrumental in the development of the industry by serving as the
vehicle for a comprehensive Soviet-sponsored program in which Russians supplied machinery,
personnel, and technical know-how to produce antibiotics.
Prior to the Patent Amendment Bill, not the substance itself but merely the manufacturing
process was protected for a period of seven years. India’s patent legislation had frequently been
the reason for legal disputes with large western drug firms, especially from the US. In line with
international standards, the sector is now subject to product and process patents valid for a
period of 20 years. Indian companies seeking to copy drugs before the patent expires are forced
to pay high license fees. This became necessary following the signing by India's government of
the TRIPS Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights).
India has the advantage of the cost, as the cost of labor, the cost of inventory is much lower
than U.S. The multinational companies, investing in research and development in India may
save upto 30% to 50% of the expenses incurred. The cost of hiring a research chemist in the
US is five times higher than its Indian counterpart and the manufacturing cost of
pharmaceutical products in India is nearly half of the cost incurred in US. The cost of
performing clinical trials in India is one tenth of the cost incurred in US as well as the cost of
performing research in India is one eighth of the cost incurred in US.
As the Final Project is the part of the management study. It is plays a very important role in the
management student life. It gives the practical experience of the market and chance to
understand the behaviour of Industry.
In every management training scheme there is a provision for real experience within the
academic time period. The purpose of this training is to apply the theoretical knowledge which
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is taken by the students in the class and apply them in the real world and sees the
implementation of this knowledge. It is well said phrase that “nothing is much practical than
a good theory” but on the same hand we cannot deny that “practical is better than theory”.
We can say both the phrases are not opposing each other but they are complementary to each
other. Experiencing both in a good and dedicated manner really pays a lot in one’s professional
career.
Marketing management is creating a revolution in marketing of products and services

providing to the market and consumers of the organization throughout the world. This is one of
the leading Indian media sectors organizations which have grasped quality mettle and have
successfully, ridden business recessions and annihilate the competition.
Marketing management is a powerful tool for achieving organizational goals and gaining
competitive advantage. Final project goal is to help students become effective managers in
competitive, global environment.
Emphasis is given on discovering the challenge of both managing and understanding the
interrelatedness of activities throughout the industry, and how the marketing functions fits into
the organization
Field exposure is very much necessary for a student of marketing. In this stream of business the
application of theory is very frequent. Marketing is now diversified that it can be done by cell
phone or internet.
With my honest efforts and some great luck I got a chance to complete my Final project on
“Detail study of Indian pharmacy companies Vs European pharmacy companies”. There I had
worked hard and my work was to understand the real picture of pharmacy industry and
compare the Indian and European pharmacy style and status. I meet with various professional
people and analyze market competition. I also get their feedbacks about my work.
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LITERATURE REVIEW
It has been purely a practical exposure to real business in general and of marketing in
particular. Through the entire tenure of project have learned the practical implication of
business. We must say that, through this practical exposure that is Final Project on
“Marketing Strategy” which enable me to get an in depth sight of the reality show of the
business.
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Doing project was really an opportunity before me when I could convert my theoretical
knowledge into practical and of real world type. Fortunately, the industry I got is a true
follower of the various principles of management and also one of the leading segment of the
industry. The working environment that I was being provided was extraordinary and helped
me a lot in delivering my work properly and with full potency of mine.
The graph of sales of these respective product lines is the best in the industry as compared to
other. Here I found all the professionals are very much committed to their work as well as they
were all professionals enough. This helped me a lot in getting a good deal of exposure. As I
had to consult the Channel partners, I felt myself, in the beginning, in a bit problem. But the
cooperation of my superiors at the work induced confidence in me to deal with my problems
whenever they came.
Since I had to complete my project within a limited time frame, this made me experience the
actual stress of the workplace. This I think will work as real booster when I will go to work
after the completion of the MBA course at SMU, Delhi. The way the Guide supported me and
his other subordinates was a good example of co ordination and good manager. This shows
that in the corporate world the superior officer should not only take care of the target fulfilled
but also the behavioral aspect of the subordinates.
Working with the professionals was a great experience as I came to know that how a person
can work as a team in a multifarious industry to achieve the organizational goal. Many a times,
while working, I had to sacrifice my personal feelings and aspirations just to keep the project
interests in my mind by giving it the top most priority.
Indeed, I always tried to do justice with my duties even at the cost of my personal life for the
time being. But this could be a success, as I got continuous support from my guide as well as
other officers & Colleagues.
So, at last I would like to thank my institution for providing me with the opportunity to do final
project. I’m also grateful to my guide Mr. Nipun Jain, Managing Director for providing me all
the assistance in completing my project.
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BRIEF HISTORY
Company Profile
Name of Company : Pharmchem

M.I.E. Bahadurgarh, Haryana-124507
Tel: - 01276-267784
Fax: - 01276-267784
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Company Office : 6A, Ajmal Khan Park
Karol Bagh, New Delhi
Tel: - 011-23536029, 23536340
Fax: - 011-23554027
Nature of Business : Manufacturing of Pharmaceutical Bulk

Drugs, categories i.e.
Contact Person : NIPUN JAIN
Contact No :
E-Mail : md@phrmchem.net
phrmchem@hotmial.com
Establishment Year : 20 September 1973
Manufacturing Lic. No. : 40-B (H)

176 OSP (H)
Valid up to : Dec. 2012
Area of Operation : Domestic and Export
Sales Turn over : 60 Crores
PRODUCTS
Macrolides Others Nimuslide
Azithromycin Diethyl Carbamazine Loratadine
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Clarithromycin Piperazine Citrate Desloratadine
Roxithromycin Disodium Hydrogen Citrate Ceterizine
Erythromycin Ethyl Succinate Ciprofloxacin Base / HCL Nimuslide
Erythromycin Base Cetrizine Di HCL Loratadine
Erythromycin Oxime Glibeclamide Desloratadine
Erythromycin Stearate Ketrolac Ceterizine
Erythromycin Estolate Ketacanazole Levocetrazine
Erythromycin Propionate Moxifloxacin Sildenafil Citrate
Anti Tubercular Losartan Potassium Ramipiril

Pyrazinamide Amiloride Lamotrigine
Vitamins Amlodipine Besylate Tamsolosin
Niacinamide Carvedilol Citrate
Niacin Feed Grade Duloxctine Chloramphenicol
Anti Infectives Drotavarine Palmitate
Flucanozole Lansoprazole Pellets 8.5% Diclofenac Sodium
Silver Sulphadiazine Pantoprazole Pellet 15% Aceclofenac
Cetyl Pyridinium Chloride Omeprazole Pellets 8.6% Diclofenac Pottassium
Silver Nitrate Itraconazole Pellet 22% Chlorozaxone
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Cinnarazine Montelukast
Atorvastatin Fexofenidine
Sumatripton Pioglitazone
Tramadol
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PHARMCHEM
ORGANIZATION CHART
Mr. Lalit Kumar Jain (Chairman)
Mr. Nipun Jain (CEO)
Plant Head
Office
GM
Production QC QA cum Project Administrati Finance
Manager Manager Manager on Manager Manager
Indian International Field

Production Assistant Marketing Purchase Officer
Marketing
Officer Maintenance Accountan Manager
QA
Incharge t
Officer
Assistant Computer
Operators
Purchase Operator 2
Fitter - 2 Manager
QC Officer Instrument Microbiology Electrician
Wet Lab Lab Lab 2
Workman Peon 2
Security Computer Cleaning Stores

Assistant Staff
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MANAGEMENT AND DETAILS OF DEPARTMENT
The management of the company is headed by Sh. Lalit Kumar Jain, who has over 41 years of experience in
business of pharmaceuticals, spinning textiles etc. he was member of Development Council for Drugs, Govt.
of India for nearly 12 years. He has the office of Chairman-Drugs and Pharmaceutical penal of Basic Export
Council for Cosmetics and Drugs (Chemxici) in the year 2004-06. He was Vice Chairman of Confederation
of Indian Pharmaceutical Industries (SSI) an Apex Body of Small Scale Pharmaceutical Units in India. He is
Sr. Vice Chairman of SME Pharma Industries Confederation (SPIC). He is also now on the Board of
Governors of National Institute of Pharmaceutical Education and Research (Govt. of India) a University of
its own kind in South-East Asia..
He is helped by Mr. Nipun Jain, MBA from University of Pittsburg, USA, who is responsible for day to day
functioning of the company.
The company is divided into following departments:-
1. Administration: In the administration department, it is headed by Manager (HR), who is responsible

for all activities including security, traveling, recruitment, local purchases co-ordination with head
office and day to day administrator.
2. Finance: It is looked after by the Finance Manager, who is responsible for day to day accounts,
taxation, banking etc.
3. Plant : It has three departments, one is production, second is maintenance and third is quality
control
4. Marketing : This department is located at Delhi and we have two divisions, one Indian Sales and
second international sales
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MARKETS
We are a bulk drug manufacturing unit and supply to industry only. There is no retail sale or any sale to the
consumer. In the pharmaceutical industry it is divided into following sections:-
1. To Large Scale Pharma Units including multinationals and Indian Large Scale Units. Sales to
these units are difficult and complicated. Lot of documentation and factory visits to see regulatory
compliance is a must. We prefer to deal with these units directly or through agents abroad.
2. Small Scale Units, we do not encourage sales to small scale units as it involves lower prices,
untimely purchases and delayed payments.
3. Traders, we only sell to traders when there is surplus production and goods have to be sold to.
4. Public Sector Units, we sell to these public sector units on tender basis.
5. Export market, we are selling today our products to the following markets:-
1. Keniya
2. Pakistan
3. Bangladesh
4. Tanzania
5. Syria
6. Egypt
7. Uganda
8. Brazil
9. Europe (Germany)
10. Singapore
11. China
12. Sudan
13. Argentina
14. Chile
15. Bolivia
16. Vietnam
17. Nigeria
18. Malaysia
19. Thailand
20.
6. We would like to concentrate on regulatory markets of USA, Europe, South Africa and Australia,
where documentation is required.
SYSTEM OF ADMINISTRATION-COMMITTEES
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The company has its plant at Bahadurgarh, only 500 meters from the Tikri Boarder of Delhi on the Delhi-
Rohtak Road.
The company is managed by the following committees:-
1. Executive Committee : This committee is the top most decision making committee of the
company, this committee is headed by the Chairman/Founder of the company with MD of the
company and all head of departments of the company. This committee would meet at least once in a
fortnight. In absence, the senior most person would be the officiating Chairman of the committee.
2. The committee will generally meet on second and fourth Tuesday of the month at 2:30 p.m. at the
plant/Delhi office, which will be informed well in advance.
3. The HR officer of the company will be the member Secretary of the committee and would maintain
agenda and minutes of the meeting.
4. To assist the committee to logically decide on any issue, the committee can invite any
employee/outsider to the meeting.
5. The committee will be also apprised of the production plan implementation, marketing status,
financial status and administration status by head of the department. The head of the departments
through the HR officer will circulate any reading material needed to the members of the committee at
least 48 hours before the meeting.
2. PLANT COMMITTEE : This committee is the decision making committee of the company
responsible for day to day running of the production plant and this committee is headed by the Head
of the Production Department with all chemist, operators as its members. The head of the
maintenance department, store department would be special invitees to the committee. This
committee will meet at least to once every week for not more than one hour on …………. Of the
week. In absence of the Chairman the senior most person would be the officiating Chairman of the
committee.
i. The committee would review the deviations of the past production period, maintenance problems,
safety aspects observation of production changes required, re-cast production plans if required and
any other problem/lapses, which affects the production goals. Information in this regard would be
given by the member secretary of the committee through the head of the department to MD. The
second most senior person from the production department present in the meeting will be the
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member secretary of the committee, who will be responsible for issue of agenda and minutes. The
copy of the same will be forwarded within 24 hours of the meeting to the MD.
ii. Tea, would be served to the members present and the administration department would be
responsible for the same.
3. MAINTENANCE COMMITTEE : This committee is the decision making committee

of the company responsible for day to day running of the production plant and this committee is
headed by the Head of the Maintenance Department with all fitters, electricians, boiler attendance as
its members. The head of the production department, store department would be special invitees to
the committee. This committee will meet at least to once every week for not more than one hour on
…………. Of the week. In absence of the Chairman the senior most person would be the officiating
Chairman of the committee.
i. The committee would review the deviations of the past production period, maintenance problems,
safety aspects observation of production changes required, re-cast maintenance plans, if required and
any other problem/lapses, which affects the production goals. Information in this regard would be
given by the member secretary of the committee through the head of the department to MD. The
second most senior person from the maintenance department present in the meeting will be the
member secretary of the committee, who will be responsible for issue of agenda and minutes. The
copy of the same will be forwarded within 24 hours of the meeting to the MD.
4. MARKETING COMMITTEE : This committee is the decision making committee of the

company responsible for day to day running the marketing department and this committee is headed
by the MD and all the officers of thee marketing department are its members. The Chairman of the
committee can invite any other employee or outsider to the meeting for arriving at a logical
conclusion. The senior most person of the department would be the member secretary of the
committee and responsible for issue of agenda and issue of minutes approved by the Chairman
within 24 hours. This committee will meet at least to once every week for not more than one hour on
…………. of the week. In absence of the Chairman the senior most person would be the officiating
Chairman of the committee.
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i. The committee would review the deviations of the past marketing plans, production plans and note
the changes required and re-cast marketing plans, if required and any other problem/lapses, which
affects the marketing goals. Information in this regard would be given by the member secretary of
the committee through the head of the department to MD. The second most senior person from the
marketing department present in the meeting will be the member secretary of the committee, who
will be responsible for issue of agenda and minutes. The copy of the same will be forwarded within
24 hours of the meeting to the MD.
5. FINANCE COMMITTEE : This committee is the decision making committee of the company
responsible for day to day running the finance department and this committee is headed by the MD
and all the officers of thee finance department are its members. The Chairman of the committee can
invite any other employee or outsider to the meeting for arriving at a logical conclusion. The senior
most person of the department would be the member secretary of the committee and responsible for
issue of agenda and issue of minutes approved by the Chairman within 24 hours. This committee
will meet at least to once every week for not more than one hour on …………. of the week. In
absence of the Chairman the senior most person would be the officiating Chairman of the committee.
i. The committee would review the deviations of the past financial plans, marketing plans, production
plans and note the changes required and re-cast finance plans, if required and any other
problem/lapses, which affects the financing goals. Information in this regard would be given by the
member secretary of the committee through the head of the department to MD. The second most
senior person from the finance department present in the meeting will be the member secretary of the
committee, who will be responsible for issue of agenda and minutes. The copy of the same will be
forwarded within 24 hours of the meeting to the MD.
6. PURCHASE COMMITTEE : This committee is the decision making committee of the company
responsible for day to day running the purchase department and this committee is headed by the MD
and all the officers of thee purchase department are its members. The Chairman of the committee
can invite any other employee or outsider to the meeting for arriving at a logical conclusion. The
senior most person of the department would be the member secretary of the committee and
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responsible for issue of agenda and issue of minutes approved by the Chairman within 24 hours.
This committee will meet at least to once every week for not more than one hour on …………. of
the week. In absence of the Chairman the senior most person would be the officiating Chairman of
the committee.
i. The committee would review the deviations of the past purchase plans, production plans and note the
changes required and re-cast purchase plans, if required and any other problem/lapses, which affects
the purchase goals. Information in this regard would be given by the member secretary of the
committee through the head of the department to MD. The second most senior person from the
purchase department present in the meeting will be the member secretary of the committee, who will
be responsible for issue of agenda and minutes. The copy of the same will be forwarded within 24
hours of the meeting to the MD.
6. ADMINISTRATION & H.R. COMMITTEE : This committee is the decision making committee
of the company responsible for day to day running the purchase department and this committee is
headed by the Chairman and MD along with all the officers of administration and HR department
are its members. The Chairman of the committee can invite any other employee or outsider to the
meeting for arriving at a logical conclusion. The senior most person of the department would be the
member secretary of the committee and responsible for issue of agenda and issue of minutes
approved by the Chairman within 24 hours. This committee will meet at least to once every week
for not more than two hour once a month. In absence of the Chairman the senior most person would
be the officiating Chairman of the committee.
i. The committee would review the deviations of the past in administration and HR problems and
routine monitoring and give directions to the concerned head of the department. The head of the HR
department will be the member secretary of the committee, who will be responsible for issue of
agenda and minutes. The copy of the same will be forwarded within 24 hours of the meeting to the
MD.
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MODEL CODE OF CONDUCT
Every employee of the company is to avoid by the model code of conduct as under:-
1. The employee will not bring any intoxic material/drinks like tobacco, liquor etc. into the
factory premises.
2. No employee will bring inflammable material like match sticks etc. into the factory premises.
3. All employees are to be medically examined for fitness every one year and if found not fit,
the services of the employee will be terminated.
4. No employee is authorized to speak to any outsider without the permission of the MD.
5. No employee of the company will remove any material such example books, equipment,
records from the premises of the company without permission in writing from the MD.
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6. No employee of the company will temper/alter with any material example books, equipments,
records etc.
7. No employee will enter any department other than his own without the permission of the
head of the other department.
8. No employee of the company will leave the premises of the company, without permission
from the head of his department.
9. No employee is allowed to interfere in any work, other than his own without permission from
the head of his department.
10. Every will maintain high standard of dignity, humanity towards each other.
11. No employee will dis-obey any order of head of the department and in case he/she feels that
the order is not in interest of the company he/she can record differences of opinion in writing
to the head of the department along with the copies to the MD. He/she is also permitted to
raise the issue in department’s meeting.
12. No issue other than the departmental problem would be raised in the department meeting.
13. Only head of the departments or in case of their absence the next senior officer will be
allowed to attend the executive committee.
14. Safety is an important aspect of the company and any mishandling of any process, material
etc., which is likely to cause harm in respect of safety of any person, machinery and other
assets of the company will not be tolerated.
15. SOP of any work, which is available with the head of the department should be implemented
in later and spirit by the employee.
16. All employees would co-operate during audits, authorized by the MD/Head of the
department.
17. Every employee when summoned by his senior would carry with him, his diary and their
writing instrument and would record in his diary on the particular date the zist of the
discussion and directions, if given, if any.
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18. Mobile phones or expensive things brought into the factory premises would be at the risk and
cost of the employee and the management will not be responsible for any loss of the same.
19. Every employee will submit himself to physical checking of self, vehicle, briefcase etc. at the
exit point by the guard on duty.
20. Every employee has to compulsory attend the annual function of the company on 20th
September of every year and new years day celebration on the 1st January of every year.
Leave of absence would be considered in extreme cases.
21. No employee will refuse to carry out the job assigned by the head of the department/MD.
22. No employee will give the contact details including like telephone numbers, e-mail address
etc. of the company or its officers to any one including his relatives.
23. The company generally does not allow receiving of telephone calls/e-mails/letters by the
employee in the company. Only telephone calls can be received, if duly authorized in writing
by the head of the department/MD in emergency cases.
24. No employee will temper with any thing belonging to any other employee/ visitor within the
premises of the company.
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GROWTH AND REWARD POLICY
The company is deeply interested in growth of its employees, both socially and economically.
1. On joining the company either at plant or at Delhi, the employee must go in detail through the
induction file of the company.
2. The employee should give a joining report to the administration department along with the
prescribed application form duly filled in and photograph attached along with certificates of
education, past employment duly self attested.
3. The employee would be monitored from time to time by the head of the department and the
HR department in presence of head of the department in the prescribed appraisal form
no……., not later than three months of joining.
4. The employee would be again appraised after six months of joining and improvements, if
any, would be recorded by HR department and path of growth would be charted out.
5. Only employees, who have been retrained by the company for over year would be considered
for growth plan linked to inflation rate, promotions or rewards, medical policy of the
company.
6. The company can sponsor an employee to expose his knowledge area to seminars,
exhibitions, lectures or further studies link to the activities of the company.
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Marketing department
There are two divisions in this department namely 1. Indian
Sales 2. International Sales
In case of deemed exports, the same would be handled by Indian sales department.
1. The procedure to be adopted of logistics is as under:
i. After receipt of order, a delivery order-cum-logistic sheet would be made by the concerned
department in consultation with stores/production/QA/ field staff responsible for
DGFT/customs, the vessal/flight availability etc. before putting up the papers for clearance of
issue of delivery order-cum-logistic sheet by the MD. This formality should be completed
within 24 hours of receipt of the order.
ii. The MD will accord his approval on the delivery order-cum-logistic sheet within maximum
four hours.
iii. The delivery order with logistics sheet would be sent to the finished stores department at the
plant, who will issue acknowledgement and remarks, if any?
iv. The marketing department, till the order is not dispatched from the plant would maintain
contact with the stores department, who will give approximate dates in consultation with
production and Q-A department.
v. The marketing department will keep the buyer informed of any changes in the receipt date by
them by e-mail.
The logistic department at Delhi office will monitor the final dispatch and the marketing department will
monitor the dispatch till receipt by the customer and cleared by the quality control department of the
customer to fix date for receipt of payment.
TRAVELING RULES
1. Every employee of the company would have to go on tour, attend seminars, exhibitions, and
purchase visits.
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2. The employee, before proceeding on tour etc. would fill-in form no…… in triplicate, which
all columns are to be filled and get it recommended by the head of his/her department before
submitting one copy to accounts department and second copy to the administration
department.
3. On return from tour etc. the employee will submit complete report in form no………….. and
return with balance cash and in no circumstances the balance will be adjusted in any account
whatsoever.
Every employee on tour etc., would be required to submit a daily report by e-mail every jain
SOP of functions of head of departments

1. All head of departments are required to have a firm grip on his department and should ensure that the
systems in place are not deviated at any cost.
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2. The head of the department would maintain/draw duty roster well in advance and send a copy of the
same to the administration department and CEO.
3. The head of the department in their meeting are expected to put an agenda the issues affecting the
company with possible solutions.
4. Not more than one head of the department would be on leave at a time.
5. The head of the department would main asset registers, regulatory documents fully complete at all
times.
POLICY AND SOP FOR MARKETING

Pharmchem manufactures Bulk Drugs at Bahadurgarh {Near Delhi-about 500 meters from Tikri Border of
Delhi on Delhi Rohtak Road. Our Marketing Department is divided into two parts and is assisted by other
departments, like logistics, Accounts and Quality Assurance Dept
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1. Indian Sales
2 International Sales
Policy.:
1. The company prefers to sell direct to the formulator company
2. The company has credit policy for each customer duly authorized by the MD
3.. There is no cash dealing allowed at any cost. Customers should pay by Pay order or Draft or
Cheque , if name is appearing in the cheque approved list
4. A comparative chart of customers indicating products, quantities used is available on Indian sales
and international markets separately with further break up. Region wise? Country wise, Party wise.
Product wise. Age analysis of payment received,
5. A list of items of future items for sale are available
6. Certificate of Analysis along with HPLC charts, wherever applicable are to be provided to the
customer\\
7. Plant will issue goods only after a completed delivery order duly signed by Chairman/MD is
received.
8. Monographs of Products with open part of Drug Master file are available for study, but would be
given to a customer, if authorized by MD/Chairman
9. Samples if given to the customer should be sealed in a Aluminum pouch with label both inside and
outside duly approved by QA head.
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10. Marketing dept personal if on a visit to a client should have excellent public relation with the
QC/Regulatory/commercial and account dept
11 Receiving of Clients for visit to the plant/office/sightseeing/Entertainment is subject to approval of

MD
12 Gifts cash into clients is subject to approval of MD

13 Before going on a tour, a form authorized would have to be approved by MD
14. On completion of a tour a complete report as per specimen along with balance cash/payments
received would be submitted to the MD
15. Complaints if, any, in supply of product would be immediately reported to MD on E-mail and as
directed to contact the Head of the Department for solution in the first instance with the approval of
the MD. Follow-up action has to taken by the MD by endorsing the negligence if any in the
respective file of the Head of the dept for further action…}
STRATEGIES OF COMPANY
 POSITIONING STRATEGY
 MARKETING STRATEGY
 SELLING STRATEGY
 HR STRATEGY
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STRATEGY
The concept of strategy is central to understanding the process management. The term “strategy” is derived
from the Greek word “Strategos”, which means generalship – the actual direction of military force, as
distinct from the policy government. Therefore, the word “strategy” literally means the art of the general.
Hierarchical Levels of Strategy

Figure 3
ATE LEVEL CORPORATE OFFICE
STRTEGY
BUSINESS LEVEL
STRATEGY SBU SBU SBU

A B C
FUNCTIONAL
LEVEL STRATEGY
FINANCE MARKET- OPERA- PERSON- INFORMA-

ING TION NEL TION
Strategy can be formulated on three different levels:
• corporate level
• business unit level
• functional or departmental level.
33
While strategy may be about competing and surviving as a firm, one can argue that products, not
corporations compete, and products are developed by business units. The role of the corporation
then is to manage its business units and products so that each is competitive and so that each
contributes to corporate purposes.
Corporate Level Strategy
Corporate level strategy fundamentally is concerned with the selection of businesses in which the
company should compete and with the development and coordination of that portfolio of
businesses.
Corporate level strategy is concerned with:
• Reach - defining the issues that are corporate responsibilities; these might include
identifying the overall goals of the corporation, the types of businesses in which the
corporation should be involved, and the way in which businesses will be integrated and
managed.
• Competitive Contact - defining where in the corporation competition is to be localized. Take
the case of insurance: In the mid-1990's, Aetna as a corporation was clearly identified with
its commercial and property casualty insurance products. The conglomerate Textron was
not. For Textron, competition in the insurance markets took place specifically at the
business unit level, through its subsidiary, Paul Revere. (Textron divested itself of The Paul
Revere Corporation in 1997.)
• Managing Activities and Business Interrelationships - Corporate strategy seeks to develop
synergies by sharing and coordinating staff and other resources across business units,
investing financial resources across business units, and using business units to
complement other corporate business activities. Igor Ansoff introduced the concept of
synergy to corporate strategy.
• Management Practices - Corporations decide how business units are to be governed:
through direct corporate intervention (centralization) or through more or less autonomous
government (decentralization) that relies on persuasion and rewards.
Corporations are responsible for creating value through their businesses. They do so by managing
their portfolio of businesses, ensuring that the businesses are successful over the long-term,
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developing business units, and sometimes ensuring that each business is compatible with others
in the portfolio.
Business Unit Level Strategy
A strategic business unit may be a division, product line, or other profit center that can be planned
independently from the other business units of the firm.
At the business unit level, the strategic issues are less about the coordination of operating units
and more about developing and sustaining a competitive advantage for the goods and services
that are produced. At the business level, the strategy formulation phase deals with:
• positioning the business against rivals

• anticipating changes in demand and technologies and adjusting the strategy to
accommodate them
• influencing the nature of competition through strategic actions such as vertical integration
and through political actions such as lobbying.
Michael Porter identified three generic strategies (cost leadership, differentiation, and focus) that can
be implemented at the business unit level to create a competitive advantage and defend against
the adverse effects of the five forces.
Functional Level Strategy
The functional level of the organization is the level of the operating divisions and departments. The
strategic issues at the functional level are related to business processes and the value chain.
Functional level strategies in marketing, finance, operations, human resources, and R&D involve
the development and coordination of resources through which business unit level strategies can
be executed efficiently and effectively.
Functional units of an organization are involved in higher level strategies by providing input into
the business unit level and corporate level strategy, such as providing information on resources
and capabilities on which the higher level strategies can be based. Once the higher-level strategy
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is developed, the functional units translate it into discrete action-plans that each department or
division must accomplish for the strategy to succeed.
Porter's Generic Strategies
If the primary determinant of a firm's profitability is the attractiveness of the industry in which it operates,
an important secondary determinant is its position within that industry. Even though an industry may have
below-average profitability, a firm that is optimally positioned can generate superior returns.
A firm positions itself by leveraging its strengths. Michael Porter has argued that a firm's strengths
ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in
either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus.
These strategies are applied at the business unit level. They are called generic strategies because they are not
firm or industry dependent. The following table illustrates Porter's generic strategies:
Porter's Generic Strategies
Advantage
Target Scope
Low Cost Product Uniqueness
Broad Cost Leadership Differentiation

(Industry Wide) Strategy Strategy
Focus Focus
Narrow
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(Market Segment) Strategy Strategy
(low cost) (differentiation)
Figure 4
Cost Leadership Strategy
This generic strategy calls for being the low cost producer in an industry for a given level of quality. The
firm sells its products either at average industry prices to earn a profit higher than that of rivals, or below the
average industry prices to gain market share. In the event of a price war, the firm can maintain some
profitability while the competition suffers losses. Even without a price war, as the industry matures and
prices decline, the firms that can produce more cheaply will remain profitable for a longer period of time.
The cost leadership strategy usually targets a broad market.
Some of the ways that firms acquire cost advantages are by improving process efficiencies, gaining unique
access to a large source of lower cost materials, making optimal outsourcing and vertical integration
decisions, or avoiding some costs altogether. If competing firms are unable to lower their costs by a similar
amount, the firm may be able to sustain a competitive advantage based on cost leadership.
Firms that succeed in cost leadership often have the following internal strengths:
• Access to the capital required to make a significant investment in production assets; this investment
represents a barrier to entry that many firms may not overcome.
• Skill in designing products for efficient manufacturing, for example, having a small component
count to shorten the assembly process.
• High level of expertise in manufacturing process engineering.
• Efficient distribution channels.
Each generic strategy has its risks, including the low-cost strategy. For example, other firms may be able to
lower their costs as well. As technology improves, the competition may be able to leapfrog the production
capabilities, thus eliminating the competitive advantage.
Additionally, several firms following a focus strategy and targeting various narrow markets may be able to
achieve an even lower cost within their segments and as a group gain significant market share.
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Differentiation Strategy
A differentiation strategy calls for the development of a product or service that offers unique attributes that
are valued by customers and that customers perceive to be better than or different from the products of the
competition. The value added by the uniqueness of the product may allow the firm to charge a premium
price for it. The firm hopes that the higher price will more than cover the extra costs incurred in offering the
unique product. Because of the product's unique attributes, if suppliers increase their prices the firm may be
able to pass along the costs to its customers who cannot find substitute products easily.
Firms that succeed in a differentiation strategy often have the following internal strengths:
• Access to leading scientific research.

• Highly skilled and creative product development team.
• Strong sales team with the ability to successfully communicate the perceived strengths of the
product.
• Corporate reputation for quality and innovation.
The risks associated with a differentiation strategy include imitation by competitors and changes in customer
tastes. Additionally, various firms pursuing focus strategies may be able to achieve even greater
differentiation in their market segments.
Focus Strategy
The focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a
cost advantage or differentiation.
The premise is that the needs of the group can be better serviced by focusing entirely on it. A firm using a
focus strategy often enjoys a high degree of customer loyalty, and this entrenched loyalty discourages other
firms from competing directly.
Because of their narrow market focus, firms pursuing a focus strategy have lower volumes and therefore less
bargaining power with their suppliers. However, firms pursuing a differentiation-focused strategy may be
able to pass higher costs on to customers since close substitute products do not exist.
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Firms that succeed in a focus strategy are able to tailor a broad range of product development strengths to a
relatively narrow market segment that they know very well.
Some risks of focus strategies include imitation and changes in the target segments. Furthermore, it may be
fairly easy for a broad-market cost leader to adapt its product in order to compete directly. Finally, other
focusers may be able to carve out sub-segments
that they can serve even better.
A Combination of Generic Strategies

- Stuck in the Middle?
These generic strategies are not necessarily compatible with one another. If a firm attempts to achieve an
advantage on all fronts, in this attempt it may achieve no advantage at all. For example, if a firm
differentiates itself by supplying very high quality products, it risks undermining that quality if it seeks to
become a cost leader. Even if the quality did not suffer, the firm would risk projecting a confusing image.
For this reason, Michael Porter argued that to be successful over the long-term, a firm must select only one
of these three generic strategies.
Otherwise, with more than one single generic strategy the firm will be "stuck in the middle" and will not
achieve a competitive advantage.
Porter argued that firms that are able to succeed at multiple strategies often do so by creating separate
business units for each strategy. By separating the strategies into different units having different policies and
even different cultures, a corporation is less likely to become "stuck in the middle."
However, there exists a viewpoint that a single generic strategy is not always best because within the same
product customers often seek multi-dimensional satisfactions such as a combination of quality, style,
convenience, and price. There have been cases in which high quality producers faithfully followed a single
strategy and then suffered greatly when another firm entered the market with a lower-quality product that
better met the overall needs of the customers.
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Generic strategies to counter the five forces
Strategy can be formulated on three levels:
• corporate level
• business unit level
• functional or departmental level.
• The business unit level is the primary context of industry rivalry. Michael Porter identified three
generic strategies (cost leadership, differentiation, and focus) that can be implemented at the
business unit level to create a competitive advantage. The proper generic strategy will position the
firm to leverage its strengths and defend against the adverse effects of the five forces.
Generic Strategies and Industry Forces
These generic strategies each have attributes that can serve to defend against competitive forces. The
following table compares some characteristics of the generic strategies in the context of the Porter's five
forces.
40
Generic Strategies and Industry Forces
Industry Generic Strategies

Force Cost Leadership Differentiation Focus
Ability to cut price Customer loyalty can Focusing develops core
Entry
in retaliation deters discourage potential competencies that can act as an
Barriers
potential entrants. entrants. entry barrier.
Large buyers have less
Ability to offer Large buyers have less power to
Buyer power to negotiate
lower price to negotiate because of few
Power because of few close
powerful buyers. alternatives.
alternatives.
Suppliers have power because of
Better insulated Better able to pass on low volumes, but a
Supplier
from powerful supplier price increases to differentiation-focused firm is
Power
suppliers. customers. better able to pass on supplier
price increases.
Customer's become
Can use low price Specialized products & core
Threat of attached to differentiating
to defend against competency protect against
Substitutes attributes, reducing threat
substitutes. substitutes.
of substitutes.
Rivalry Better able to Brand loyalty to keep Rivals cannot meet
41
differentiation-focused customer
compete on price. customers from rivals.
needs.
Figure 5
POSITIONING STRATEGY
Positioning
After the organisation has selected its target market, the next stage is to decide how it wants to position itself
within that chosen segment. Positioning refers to ‘how organisations want their consumers to see their
product’. What message about the product or service is the company trying to put across?
“A Positioning Strategy results in the image you want to draw in the mind of your customers, the picture
you want him/her to visualize of you what you offer, in relation to the market situation, and any competition
you may have".
For Example
Car manufacturer Daewoo in the UK, has successfully positioned themselves as the family value model.
The UK car Skoda brand which has been taken over by Volkswagen has been re-positioned as a vehicle
which had negative brand associations, to one which regularly wins car of the year awards. The positive
comments from the industry and attributes of this vehicle is has changed the perception of consumers about
the Skoda brand.
Developing a positioning strategy
Developing a positioning strategy depends much on how competitors position themselves. Do organisations
want to develop ‘a me too’ strategy and position themselves close to their competitors so consumers can
make a direct comparison when they purchase? Or does the organisation want to develop a strategy which
42
positions themselves away from their competitors? Offering a benefit which is superior depends much on
the marketing mix strategy the organisation adopts.
The pricing strategy must reflect the benefit offered and the promotion strategy must communicate this
benefit.
Ultimately positioning is about how you want consumers to perceive your products and services and what
strategies you would adopt to reach this perceptual goal.
How Design Positioning Strategy ?
To design Positioning Strategy There will be faced with three main options:
1. Positioning your product against your competitors, " Our prices are half of that you may find else
where for similar products"
2. Emphasizing a distinctive unique benefit "the only book keeping system that instantly calculates
your taxes"
3. Affiliating your product with something the customer knows and values "the same archiving
system used by the library of congress"
Of course these are just examples to help you better grasp the concept, but I am sure you get the point, and
you can come up with far more attractive messages to better suite your product.
Your marketing strategy should act more like a guideline, the driving force of your marketing program, so
you should always keep it before your eyes, and the eyes of all those who work with you.
Writing a positioning statement should not be a difficult task. For starting off, first you must decide
the following:
 Your customer: The type of customer you target.

 The benefits: What you can do for your customers.
 The method: How you do it.
 The USP: Why you do it better than the competitors. ( USP stands for "unique selling proposition".)
Dynamic Product Management Strategies to position the Brand
43
Two fundamental issues of product management are whether to pioneer or follow, and how to manage the
product over its life cycle.
Order of market entry is very important. In fact, the forecasted market share relative to the pioneering brand
is the pioneering brand's share divided by the square root of the order of entry. For example, the brand that
entered third is forecasted to have 1/√3 times the market share of the first entrant (Marketing Science,
Vol. 14, No. 3, Part 2 of 2, 1995.) This rule was determined empirically.
The pioneering advantage is obtained from both the supply and demand side. From the supply side, there are
raw material advantages, better experience effects to provide a cost advantage, and channel preemption. On
the demand side, there is the advantage of familiarity, the chance to set a standard, and the choice of
perceptual position.Once a firm gains a pioneering advantage, it can maintain it by improving the product,
creating a standard, advertise that it was the first, and introduce a new product in the market that may
cannibalize the first but deter other firms from entering.There also are disadvantages to being the pioneer.
Being first allows a competitor to leapfrog the early technology. The incumbent develops inertia in its R&D
and may not be a flexible as newcomers. Developing an industry has costs that the pioneer must bear alone,
and the way the industry develops and its potential size are not deterministic.
There are four classic price/selling effort strategies:
Price
Selling Effort
Low High
Classic Skim Strategy

Low Necessity Goods
Vulnerable to new entrants
High
Classic Penetration Strategy Luxury Goods
44
In general, products are clustered in the low-low or high-high categories. If a product is in a mixed category,
after introduction it will tend to move to the low-low or high-high one.
Increasing the breadth of the product line as several advantages. A firm can better serve multiple segments,
it can occupy more of the distributors' shelf space, it offers customers a more complete selection, and it
preempts competition.
While a wider range of products will cause a firm to cannibalize some of its own sales, it is better to do so
oneself rather than let the competition do so.
The drawbacks of broad product lines are reduced volume for each brand (cannibalization), greater
manufacturing complexity, increased inventory, more management resources required, more advertising (or
less per brand), clutter and confusion in advertising for both customers and distributors.
To increase profits from existing brands, a firm can improve its production efficiency, increase the demand
through more users, more uses, and more usage. A firm also can defend its existing base through line
extensions (expand on a current brand), flanker brands (new brands in an existing product area), and brand
extensions.
Core Competencies
C.K. Prahalad and Gary Hamel coined the term core competencies, or the collective learning and
coordination skills behind the firm's product lines. They made the case that core competencies are the source
of competitive advantage and enable the firm to introduce an array of new products and services.According
to Prahalad and Hamel, core competencies lead to the development of core products. Core products are not
directly sold to end users; rather, they are used to build a larger number of end-user products. For example,
motors are a core product that can be used in wide array of end products. The business units of the
corporation each tap into the relatively few core products to develop a larger number of end user products
based on the core product technology.
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BUSINESS/MARKETING STRATEGY
Marketing Strategy
The marketing concept of building an organization around the profitable satisfaction of customer needs has
helped firms to achieve success in high-growth, moderately competitive markets. However, to be successful
in markets in which economic growth has leveled and in which there exist many competitors who follow the
marketing concept, a well-developed marketing strategy is required. Such a strategy considers a portfolio of
products and takes into account the anticipated moves of competitors in the market.
There are several marketing strategy concepts:
• Price / Selling Effort Strategies: A firm that follows a skimming strategy seeks to be the first to
introduce a product with very good performance, selling it to the innovator market segment and
charging a premium price for it. It makes as much profit as possible, then moves on when the
competition arrives. The price is likely to fall over time as competition is encountered. Such a
skimming strategy contrasts with a penetrating strategy, which seeks to gain market share by
sacrificing short-term profits, and increasing the price over time as market share is gained.
• Competitors have certain strengths and abilities. To succeed, a firm must leverage its own unique
abilities.
• A firm should prepare defensive strategies before potential threats arrive. If the competition surprises
a firm with the introduction of a vastly superior product, the firm should resist the temptation to
proceed with its mediocre product. A firm never should introduce a product that is obsolete when it
hits the market.
• The competition's probable response to a firm's actions should be considered carefully.
Marketing Research for Strategic Decision Making
The two most common uses of marketing research are for diagnostic analysis to understand the market and
the firm's current performance, and opportunity analysis to define any unexploited opportunities for growth.
46
Marketing research studies include consumer studies, distribution studies, semantic scaling,
multidimensional scaling, intelligence studies, projections, and conjoint analysis. A few of these are outlined
below.
• Semantic scaling: a very simple rating of how consumers perceive the physical attributes of a
product, and what the ideal values of those attributes would be. Semantic scaling is not very accurate
since the consumers are polled according to an ordinal ranking so mathematical averaging is not
possible. For example, 8 is not necessarily twice as much as 4 in an ordinal ranking system.
Furthermore, each person uses the scale differently.
• Multidimensional scaling (MDS) addresses the problems associated with semantic scaling by polling
the consumer for pair-wise comparisons between products or between one product and the ideal. The
assumption is that while people cannot report reliably which attributes drive their choices, they can
report perceptions of similarities between brands. However, MDS analyses do not indicate the
relative importance between attributes.
• Conjoint analysis infers the relative importance of attributes by presenting consumers with a set of
features of two hypothetical products and asking them which product they prefer. This question is
repeated over several sets of attribute values. The results allow one to predict which attributes are the
more important, the combination of attribute values that is the most preferred. From this information,
the expected market share of a given design can be estimated.
Multi-Product Resource Allocation

The most common resource allocation methods are:
• Percentage of sales
• Executive judgement
• All-you-can-afford
• Match competitors
• Last year based
Another method is called decision calculus. Managers are asked four questions:What would sales be with:
1. no sales force
2. half the current effort
3. 50% greater effort
4. a saturation level of effort.
47
From these answers, one can determine the parameters of the S-curve response function and use linear
programming techniques to determine resource allocations.
Decision algorithms that result in extreme solutions, such as allocating most of the sales force to one product
while neglecting another product often do not yield practical solutions.
For mature products, sales increase very little as a function of advertising expenditures. For newer products
however, there is a very positive correlation.
Portfolio models may be used to allocate resources among major product lines or business units. The BCG
growth-share matrix is one such model.
Ansoff Matrix for different market strategy in different situation
To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on the firm's
present and potential products and markets (customers). By considering ways to grow via existing products
and new products, and in existing markets and new markets, there are four possible product-market
combinations. Ansoff's matrix is shown below:
Ansoff Matrix
Existing Products New Products
Existing
Market Penetration Product Development
Markets
New
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Market Development Diversification
Markets
Figure 9
Ansoff's matrix provides four different growth strategies:
• Market Penetration - the firm seeks to achieve growth with existing products in their current
market segments, aiming to increase its market share.
• Market Development - the firm seeks growth by targeting its existing products to new market
segments.
• Product Development - the firms develops new products targeted to its existing market segments.
• Diversification - the firm grows by diversifying into new businesses by developing new
products for new markets.
Selecting a Product-Market Growth Strategy
The market penetration strategy is the least risky since it leverages many of the firm's existing resources and
capabilities. In a growing market, simply maintaining market share will result in growth, and there
may exist opportunities to increase market share if competitors reach capacity limits. However,
market penetration has limits, and once the market approaches saturation another strategy must be
pursued if the firm is to continue to grow.
Market development options include the pursuit of additional market segments or geographical regions.
The development of new markets for the product may be a good strategy if the firm's core competencies are
related more to the specific product than to its experience with a specific market segment. Because the firm
is expanding into a new market, a market development strategy typically has more risk than a market
penetration strategy.
A product development strategy may be appropriate if the firm's strengths are related to its specific
customers rather than to the specific product itself. In this situation, it can leverage its strengths by
developing a new product targeted to its existing customers. Similar to the case of new market development,
new product development carries more risk than simply attempting to increase market share.
49
Diversification is the most risky of the four growth strategies since it requires both product and market
development and may be outside the core competencies of the firm. In fact, this quadrant of the matrix has
been referred to by some as the "suicide cell". However, diversification may be a reasonable choice if the
high risk is compensated by the chance of a high rate of return. Other advantages of diversification include
the potential to gain a foothold in an attractive industry and the reduction of overall business portfolio risk.
Business Strategy
According to its website, Canon's philosophy is as follows: "The corporate philosophy of Canon is kyosei. A
concise definition of this word would be "Living and working together for the common good," but our
definition is broader: "All people, regardless of race, religion or culture, harmoniously living and working
together into the future." Unfortunately, the presence of imbalances in our world in such areas as trade,
income levels and the environment hinders the achievement of kyosei. Addressing these imbalances is an
ongoing mission, and Canon is doing its part by actively pursuing kyosei. Truly global companies must
foster good relations, not only with their customers and the communities in which they operate, but also with
nations and the environment. They must also bear the responsibility for the impact of their activities on
society. For this reason, Canon's goal is to contribute to global prosperity and the well-being of humankind,
which will lead to continuing growth and bring the world closer to achieving kyosei.
SELLING STRATEGY
Selling
A sale is the pinnacle activity involved in selling products or services in return for money or other
compensation. It is an act of completion of a commercial activity.
A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to an
acquisition or appropriation or request followed by the passing of title (property or ownership) in the item
and the application and due settlement of a price, the obligation for which arises due to the seller's
requirement to pass ownership, being a price the seller is happy to part with ownership of or any claim upon
the item. The purchaser, though a party to the sale, does not execute the sale, only the seller does that. To be
precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller
50
completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the
price the sale is still valid and gives rise to an obligation to pay.
The sales and marketing relationship
Marketing and sales are very different, but have the same goal. Marketing improves the selling environment
and plays a very important role in sales. If the marketing department generates a potential customers list, it
can be beneficial for sales. The marketing department's goal is to increase the number of interactions
between potential customers and the sales team using promotional techniques such as advertising, sales
promotion, publicity, and public relations, creating new sales channels, or creating new products (new
product development), among other things.
The relatively new field of sales process engineering views "sales" as the output of a larger system, not just
that of one department. The larger system includes many functional areas within an organization. From this
perspective, sales and marketing (among others, such as customer service) are labels for a number of
processes whose inputs and outputs supply one another to varying degrees. Considered in this way, to
improve the "output" (namely, sales) the broader sales process needs to be studied and improved as would
any system, since the component functional areas interact and are interdependent.
In most large corporations, the marketing department is structured in a similar fashion to the sales
department and the managers of these teams must coordinate efforts in order to drive profits and business
success. For example, an "inbound" focused campaign seeks to drive more customers "through the door"
giving the sales department a better chance of selling their product to the consumer. A good marketing
program would address any potential downsides as well.
The Sales department's goal would be to improve the interaction between the customer and the sales facility
or mechanism (example, web site) and/or salesperson. Sales management would break down the selling
process and then increase the effectiveness of the discrete processes as well as the interaction between
processes. For example, in many out-bound sales environments, the typical process is out bound calling, the
sales pitch, handling objections, opportunity identification, and the close. Each step of the process has sales-
related issues, skills, and training needs as well as marketing solutions to improve each discrete step, as well
as the whole process.
One further common complication of marketing involves the inability to measure results for a great deal of
marketing initiatives. In essence, many marketing and advertising executives often lose sight of the objective
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of sales/revenue/profit, as they focus on establishing a creative/innovative program, without concern for the
top or bottom lines. Such is a fundamental pitfall of marketing for marketing's sake.
Many companies find it challenging to get marketing and sales on the same page. Both departments are
different in nature, but handle very similar concepts and have to work together for sales to be successful.
Building a good relationship between the two that encourages communication can be the key to success even
Triple-tiered Sales Strategy

In today's economy, big and small businesses are seeking every opportunity to win sales through
competitive advantages. Smart owners of small business know a sales strategy can create a competitive
advantage.
Selling consists of two main functions: tactics and strategy. Sales strategy is the planning of sales activities:
methods of reaching clients, competitive differences and resources available. Tactics involves the day-to-day
selling: prospecting, sales process, and follow-up.
The tactics of selling are very important but equally vital is the strategy of sales. The advantages are too
compelling to ignore.
Competitive Advantages of Strategic Sales Planning
• Increased closing ratio by knowing clients hot buttons

• Improved client loyalty by understanding needs
• Shorten the sales cycle with outside recommendations
• Outsell competitors by offering the best solution
Triple-tiered Sales Strategy

The development of any type of plan begins with research. The insight gained for a competitive advantage
comes from the marketplace not from your mind. The approach to use is what I call "Triple-tiered Sales
Strategy". Look at your client and the outside influences on their business. Approach all three tiers to
understand your customer.
Tier 1: Associations: What associations does your target customer belong to? Contact the membership
director and establish a relationship not for selling but to understand their member's needs.
Tier 2: Suppliers: Identify non-competitive suppliers who sell to your customer. Learn their challenges and
look for partnering solutions.
52
Tier 3: Customer: Work directly with your customer and ask them what their needs are and if your business
may offer a possible solution.
An excellent example of developing a "triple-tiered sales strategy" is a story of a small accounting firm. This
firm decided to target independent truck drivers for accounting services.
The competition for this firm was a big accounting company. This small business approached the truck
drivers association and learned that one concern of their membership was receiving financing for a new
vehicle.
A discussion with the suppliers of trucks, revealed financing was only approved after the truckers supplied
financial statements. The financials were often prepared by a large accounting firm who set appointments on
their time and in their office.
The pieces of the puzzle were now coming together. The customer was the last piece of critical information.
Truckers were frustrated by the inconvenience of visiting an accounting firm because of the time they spend
on the road. The best solution was to bring the accounting service to the customer on their terms and time.
The small accounting office had defined a clear sales strategy: offer in-home financial statement preparation
for truck drivers seeking financing through truck manufacturers. All sales leads would be referred from the
supplier. This strategy was a win-win for the association, the supplier, the customer and the accounting firm.
The moral of the story is to gain a competitive advantage by looking at both sides of the equation, tactics
and strategy. Use the triple-tiered approach to win business and outsell the big companies in your market.
53
Human Resource Strategy
Developing a HRM strategy
Faced with rapid change organizations need to develop a more focused and coherent approach to managing
people. In just the same way a business requires a marketing or information technology strategy it also
requires a human resource or people strategy.
In developing such a strategy two critical questions must be addressed.
• What kinds of people do you need to manage and run your business to meet your strategic business
objectives?
• What people programs and initiatives must be designed and implemented to attract, develop and
retain staff to compete effectively?
In order to answer these questions four key dimensions of an organization must be addressed. These are:
• Culture: the beliefs, values, norms and management style of the organization
• Organization: the structure, job roles and reporting lines of the organization
• People: the skill levels, staff potential and management capability
• Human resources systems: the people focused mechanisms which deliver the strategy - employee
selection, communications, training, rewards, career development, etc.
Frequently in managing the people element of their business senior managers will only focus on one or two
dimensions and neglect to deal with the others. Typically, companies reorganize their structures to free
managers from bureaucracy and drive for more entrepreneurial flair but then fail to adjust their training or
reward systems.
54
When the desired entrepreneurial behavior does not emerge managers frequently look confused at the
apparent failure of the changes to deliver results. The fact is that seldom can you focus on only one area.
What is required is a strategic perspective aimed at identifying the relationship between all four dimensions.
If you require an organization which really values quality and service you not only have to retrain staff, you
must also review the organization, reward, appraisal and communications systems.
The pay and reward system is a classic problem in this area. Frequently organizations have payment systems
which are designed around the volume of output produced. If you then seek to develop a company which
emphasizes the product's quality you must change the pay systems. Otherwise you have a contradiction
between what the chief executive is saying about quality and what your payment system is encouraging staff
to do.
There are seven steps to developing a human resource strategy and the active involvement of senior line
managers should be sought throughout the approach.
Steps in developing HRM strategy
Step 1: Get the 'big picture'
Understand your business strategy.
• Highlight the key driving forces of your business. What are they? e.g. technology, distribution,
competition, the markets.
• What are the implications of the driving forces for the people side of your business?
• What is the fundamental people contribution to bottom line business performance?
Step 2: Develop a Mission Statement or Statement of Intent
That relates to the people side of the business. Do not be put off by negative reactions to the words or
references to idealistic statements - it is the actual process of thinking through the issues in a formal and
explicit manner that is important.
• What do your people contribute?
55
Step 3: Conduct a SWOT analysis of the organization
Focus on the internal strengths and weaknesses of the people side of the business.
• Consider the current skill and capability issues.
Vigorously research the external business and market environment. High light the opportunities and
threats relating to the people side of the business.
• What impact will/ might they have on business performance?

• Consider skill shortages?
• The impact of new technology on staffing levels?
From this analysis you then need to review the capability of your personnel department. Complete a SWOT
analysis of the department - consider in detail the department's current areas of operation, the service levels
and competences of your personnel staff.
Step 4: Conduct a detailed human resources analysis
Concentrate on the organization's COPS (culture, organization, people, HR systems)
• Consider: Where you are now? Where do you want to be?

• What gaps exists between the reality of where you are now and where you want to be?
Exhaust your analysis of the four dimensions.
Step 5: Determine critical people issues
Go back to the business strategy and examine it against your SWOT and COPS Analysis
• Identify the critical people issues namely those people issues that you must address. Those which
have a key impact on the delivery of your business strategy.
• Prioritize the critical people issues. What will happen if you fail to address them?
Remember you are trying to identify where you should be focusing your efforts and resources.
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Step 6: Develop consequences and solutions
For each critical issue highlight the options for managerial action generate, elaborate and create - don't go
for the obvious. This is an important step as frequently people jump for the known rather than
challenge existing assumptions about the way things have been done in the past. Think about the
consequences of taking various courses of action.
Consider the mix of HR systems needed to address the issues.
Do you need to improve communications, training or pay?
What are the implications for the business and the personnel function?
Once you have worked through the process it should then be possible to translate the action plan into broad
objectives. These will need to be broken down into the specialist HR Systems areas of:
• employee training and development

• management development
• organization development
• performance appraisal
• employee reward
• yee selection and recruitment
• maemplonpower planning
• communication
Develop your action plan around the critical issues. Set targets and dates for the accomplishment of the key
objectives.
Step 7: Implementation and evaluation of the action plans
The ultimate purpose of developing a human resource strategy is to ensure that the objectives set are
mutually supportive so that the reward and payment systems are integrated with employee training and
career development plans.
There is very little value or benefit in training people only to then frustrate them through a failure to provide
ample career and development opportunities.
57
BIBLOGRAPHY
58
Marketing Research-TULI & HAWKINS
Marketing Management-PHILIP KOTLER
www.Google.com
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60
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Final Project Report

Under the Guidance of Mr. Nipun Jain

Submitted To, Submitted By,

INDEX OF INDUCTION BOOK

Sl. Particulars Page Officer

1. Welcome to the company 1 Administration

2. Brief history 2-3 Administration

3. Organization chart 4 Administration

4. Management and details of departments 5 Administration

7. System of administration-committees 8-14 Administration

8. List of holidays 15 Administration

9. Audit policy 16 Finance

10. Taking and handing over charge 17-18 Administration

11. Salary disbursement rules 19 Finance

12. Leave rules 20 Administration

14. Model code of conduct 22-24 Administration

15. SOP of functions of head of departments 25 Administration

16. Salary option available 26 Finance

17. Growth and reward policy 27 Administration

18. Training policy 28 Administration

19. Department policy 29 Administration

20. Production plan 30-31 Production Dept.

21. Traveling rules 32 Finance

22. Policy and SOP for purchase 33-34 Finance

23. Policy and SOP for marketing 35-36 Marketing

24. Medical policy 37 Administration

25. Production planning and implementation 38-39 Production Dept.

26. SOP for Q-C department 40-41 Q.C. Deptt.

27. SOP for Q-A department 42 Q.A. Deptt.

28. SOP for R&D department 43 R&D Deptt.

29. SOP for administration department 44-45 Administration

30. SOP for maintenance department 46 Maintenance

31. SOP for stores 47-50 Finance

33. SOP for logistic 52-53 Purchase &

34. Public relation policy 54 C.E.O.

35. Grievance Committee 55 Administration

36. Specimen Appointment Letter 56 Administration

Shashank Gaurav Shukla

Shashank Gaurav Shukla

Marketing management is creating a revolution in marketing of products and services

Name of Company : Pharmchem

Nature of Business : Manufacturing of Pharmaceutical Bulk

Contact Person : NIPUN JAIN

Establishment Year : 20 September 1973

Manufacturing Lic. No. : 40-B (H)

Valid up to : Dec. 2012

Area of Operation : Domestic and Export

Sales Turn over : 60 Crores

Macrolides Others Nimuslide

Azithromycin Diethyl Carbamazine Loratadine

Roxithromycin Disodium Hydrogen Citrate Ceterizine

Erythromycin Ethyl Succinate Ciprofloxacin Base / HCL Nimuslide

Erythromycin Base Cetrizine Di HCL Loratadine

Erythromycin Oxime Glibeclamide Desloratadine

Erythromycin Stearate Ketrolac Ceterizine

Erythromycin Estolate Ketacanazole Levocetrazine

Erythromycin Propionate Moxifloxacin Sildenafil Citrate

Anti Tubercular Losartan Potassium Ramipiril

Vitamins Amlodipine Besylate Tamsolosin

Niacinamide Carvedilol Citrate

Niacin Feed Grade Duloxctine Chloramphenicol

Anti Infectives Drotavarine Palmitate

Flucanozole Lansoprazole Pellets 8.5% Diclofenac Sodium