You are on page 1of 69

A SUMMER TRAINING REPORT ON SURVEY TO CHECK THE SALES OF LUPIN (PINNACLE) IN BAREILLY IN PARTIAL FULFILLMENT FOR THE DEGREE

OF MASTER OF BUSINESS ADMINISTRATION


OF

GAUTAM BUDDHA TECHNICAL UNIVERSITY LUCKNOW


TO

INVERTIS INSTITUTE OF ENGINEERING AND MANAGEMENT [IIEM] BAREILLY

SUBMITTED TO: MISS GUNJAN AWAL IIEM

SUBBMITTED BY: RAHUL MAHESHWARI ROLL NO. 1032070025

CERTIFICATE

It is hereby certified that the project report on survey to check sale of lupin 9 being submitted by Rahul Maheshwari students of the degree of Master of Business Administration (3rd sem) of Invertis institute of engineering and management, Bareilly which is affiliated to Gautam budda technical university Lucknow An original work carried out successfully under my guidance and supervision and that No part of this project has been submitted for any other degree/ diploma. The sincerely Efforts put in during the course of investigation are hereby acknowledgement.

PROJECTGUIDE

ACKNOWLEDGEMENT

I feel immense

pleasure

to give

the credit

of

my project

work not only to one individual as this work is integrated effort of all those who concerned with it. I want to owe my thanks to all those individuals who guided me to move on the track .This report entitled Survey To check sale of Brand Available summer in the Market this is Tonact the and outcome Ramistar of my

training

at Lupin Pharmaceuticals Limited, Bareilly. I

sincerely express my gratitude and lot of thanks to Mr. devendra tiwari (Regional sales Manager) and to the staff of Lupin

Pharmaceuticals Limited, Bareilly for helping me in completing my project work and making it a great success. I would like to also express my deep sense of gratitude towards the staff of IIEM BAREILLY, who introduced me to the subject and under whose guidance I am able to complete my project. Last but not least, I would thank all my friends, faculty members and all respondents who rendered their precious time for contributing their skills and to fill the questionnaire, which made my project more appealing

and attractive.

RAHUL MAHESHWARI MBA III SEM

PREFACE

Management ideas without any action based on them mean nothing. That is why practical experience is vital for any management student. Theoretical studies in the classroom are not sufficient to understand the functioning climate and the real problems coming in the way of management of Men, Materials, Machine and Money, So practical exposure are indispensable to such courses. Thus, practical experiences are as a supplement to the classroom studies. It offers an exposure to real practical of management in various organizations. It exposes invaluable treasures of expenses to a student. This project deals with Survey to Check Sales of Brands TONACT (ATORVASTATIN) and RAMISTAR (RAMIPRIL) Brand Available in the Market. It was my fortune to do this dissertation. I learnt a lot of new things which could never been learnt from theory classes. This research project is presentation of my summer training. In the first phase of the research project, there is a introduction of pharmaceutical industry, company profile Lupin and products of Lupin are given. After that a market research is performed with a sample size of 30 Chemists. The research study was limited to BAREILLY region. Here, in my survey, I have contacted the respondents through personal interviews with the help of questionnaires. The main objective of the research to do the survey to check the sale of both these Salt . In the last phase of the report findings, suggestions and conclusions have been drawn. The success of the company lies in strict quality control, manufacturing facilities, Cost Competitiveness, Well Developed Industry with Strong Manufacturing Base, Access to pool of highly trained scientists, both in India and abroad, Strong marketing and distribution network

TABLE OF CONTENTS
1. INTRODUCTION TO STUDY Introduction to Marketing Indian pharmaceutical industry The growth scenario Steps to strengthen the industry 2. COMPANY PROFILE OF LUPIN History Milestones Award and recognition Research centre Strength and quality Global presence 3. OBJECTIVES OF THE STUDY Objectives of the Study

4. RESEARCH METHODOLOGY o Research Methodology o Limitations of the Study 5. DATA ANALYSIS AND ITS INTERPRETATION Data Analysis and Its Interpretation 6. FINDINGS AND SUGGESTIONS
5

Findings of the Study Suggestions

7. CONCLUSION

8. ANNEXURE o Questionnaire o Bibliography

INTRODUCTION TO THE STUDY The word Market' is which derived from the Latin word

'Marcatus'

means merchandise, trade or place where

business is conducted. Market is the atmosphere of a region in the force of demand and supply operate directly or by the means of any kind of communication that are sufficient to bring about transfer in the title of the goods and it does not necessarily mean only a place where actual buying and selling is conducted.

Meaning of Marketing - Marketing is the most complex and challenging function performed by every business firm. Business regards marketing as a management function to plan, promote and deliver product to clients. Human efforts, finance and the primary resources in marketing.

management constitute

Marketing is the skill of selecting and fulfilling consumer desires in such a way that a dose of money put in brings back maximum return. Marketing is a system of integrated business activities designed to develop strategies and plans (marketing mixes) to the satisfaction of customers wants. Marketing views the customers as the very purpose of the business; sees the business from the point of view of the customer; customer

consciousness permeates the entire organization, all departments and all people in the organization, all the time.

DEFINITIONS Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organizational objectives.

American Marketing Association Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with other-Philip Kotler

In short, modern marketing begins with the customer and ends with the customers satisfaction and social well being. Under the market driven economy, buyer is the boss.

MARKETING PROCESS Marketing is the process by which products are manufactured according to the needs and requirements of the consumers and after their production their ownership is passed on to the final consumer for whom it is produced. Marketing process is the dynamic ocess combining the different activities in the flow of goods from the producer to the consumer. The marketing machinery of today involves three major

processes- the concentration, dispersion & equalization of goods. -Clark

MARKET

These

three

processes

of

marketing

go

on

simultaneously. The wholesalers on the

ANTICIPATION One hand procures products from the producers and on the other hand make available.

CONSUMER DEMANDS These good to the retailers in the different markets according to their requirements.

10

THROUGH MARKET this way, in their activity of dispersion they look to the equalization. Marketing management is the process of scanning the environment, analyzing market designing marketing strategies and then opportunities, effectively

implementing and controlling marketing practices. Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of goods, services and ideas to create exchange with target groups that satisfy customer & organizational objectives

-Philip Kotler

11

INDIAN PHARMACEUTICAL INDUSTRY

The Indian Pharmaceutical Industry today is in the front rank of Indias science- based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A

highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts and many units approved by regulatory of quality producers authorities in USA

and UK. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. The with Indian more Pharmaceutical than sector is highly

fragmented

20,000 registered units. It has

expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market

leader holding nearly 7% of the market share.

12

The pharmaceutical industry in India meets around 70% of the country's demand for bulk Pharmaceutical formulations, drugs, chemicals, drug intermediates,

tablets, capsules, orals

and invertible. There are about 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). These units

produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations. Following the delicensing of the pharmaceutical industry, industrial licensing for

most of the drugs and pharmaceutical products has been done away with. Manufacturers are free to produce any drug duly approved by the Drug Control Authority. Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs of production, low R&D costs, innovative scientific

manpower, strength of national laboratories and an increasing balance of trade. The Pharmaceutical Industry, and research with its rich by

scientific talents

capabilities, supported

Intellectual Property Protection regime is well set to take on the international market.

13

ADVANTAGE TO INDIA

Competent workforce: India has a pool of personnel with high managerial and technical competence as also skilled workforce. It is commonly used.

has an educated work force and English

Professional services are easily available. Cost-effective chemical synthesis: Its track record of development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs. Legal & Financial Framework: India has a 62 year old democracy and hence has a solid legal framework and strong financial markets. There is already an established international industry and business community. Information & Technology: It has a good network of world-class educational institutions

and established strengths in Information Technology. Globalization: The country is committed to a free market economy and globalization. Above all, it has a 70 million middle class market, which is continuously growing. Consolidation: For the first time in many years, the international pharmaceutical industry is finding great opportunities in India. The

14

process of consolidation, which has

become a generalized

phenomenon in the world pharmaceutical industry, has started taking place in India.

THE GROWTH SCENARIO India's US$ 3.1 billion pharmaceutical industry is growing at the rate of 14 percent per year. It is one of the largest and most advanced among the developing countries. Over pharmaceutical manufacturers exist in 20,000 the registered The

country.

domestic pharmaceuticals industry output is expected to exceed Rs500 billion in the financial year 2009, which accounts for merely 2.5% of the global pharmaceutical sector. Of will account for Rs 290 bn this, bulk drugs

and formulations, the remaining

Rs 210 bn. In financial year 2009, imports were Rs 190 bn while exports were Rs230 bn.

STEPS TO STRENGTHEN THE INDUSTRY Indian companies need to attain the right product-mix for sustained future growth. Core competencies will play an important role in determining the future of many Indian pharmaceutical companies in the post product-patent regime after 2005. Indian companies, in an effort to consolidate their position, will have to increasingly look at merger and acquisition options of either companies or products. This

15

would help them to improve their

offset

loss

of

new

product

options,

R&D efforts and improve distribution to penetrate and development has always taken the

markets. Research

back seat amongst Indian pharmaceutical companies. In order to stay competitive in the future, Indian companies will have to refocus and invest heavily in R&D. The Indian pharmaceutical industry also needs to take advantage of the recent advances in biotechnology and information technology. The future of the industry will be determined by how well it markets its products to several regions and distributes risks, its forward and backward integration capabilities, its R&D, its consolidation through mergers and acquisitions, co-marketing and licensing agreements. As per WTO, from the year 2005, India will grant product patent recognition to all new chemical entities (NCEs) i.e., bulk drugs developed then onwards. The Indian Government's decision to allow 100 percent foreign direct investment into the drugs and pharmaceutical industry is expected to aid the growth of contract research in the country. Technology transfer to 100 percent Indian subsidiaries of MNCs is expected only in 2005.Indian pharmaceutical interests in making a mark on the global scene got a boost when Dr. Reddy's licensed two of its anti-diabetic molecules to Novo Nordisk and when Ranbaxy licensed its Novel Drug Delivery System (NDDS) of ciprofloxacin to Bayer. MNCs in India faced the problem of having a very high DPCO coverage, weakening their bottom lines as well as hindering their growth through the launch of new products. DPCO coverage is

16

expected to be diluted further in the near future benefiting the MNCs. New legislation is also expected in the OTC segment increasing the number of brands in the Over the Counter (OTC) segment. The Indian pharmaceutical industry is also getting increasingly U.S. FDA compliant to harness the growth opportunities in areas of contract manufacturing and research. Indian companies focusing on tapping the U.S. Generic are increasingly

market, projected to be

around $18 billion. To, meeting almost 95% of countrys pharmaceutical .The domestic pharmaceutical output has increased at a compound growth rate (CAGR) of 13.7% per annum. Currently the Indian pharma industry is valued at approximately $ 8.0 billion. Globally, the Indian industry ranks 4th in terms of volume and 13th in terms of value. Indian pharmaceuticals industry has over 20,000 units. Around 260 constitute the organized sector, while others exist in the small-scale sector.

17

Board of Directors
Dr Desh Bandhu Gupta

Chairman

Dr Kamal K Sharma Managing Director Mrs M. D. Gupta Mr Nilesh Gupta Mr D. K . Contractor Mrs Vinita Gupta Dr K. U. Mada Mr R. A. Shah Mr K. V. Kamath Dr Vijay Kelkar Mr Richard Zahn Executive Director Executive Director Director Director Director Director Director Director Director

18

HISTROY

Lupin Limited, headquartered in Mumbai, India has successfully positioned itself as a Transnational Pharmaceutical Company, with a wide global footprint. The Company develops and markets a wide range of quality, affordable generic and branded formulations and APIs in multiple markets across the world. Business Mix the Company has gained recognition as the worlds largest manufacturer of Tuberculosis drugs. Over the years, the Company has moved up the value chain and has not only mastered the business of certain intermediates and APIs, but has also leveraged its strengths to build a formidable formulations business. It has a significant presence in Cephalosporins, Cardiovascular (prils and statins), Diabetology, Asthma and NSAIDs therapy segments. Over the last four years, the Companys business mix has improved with close to 70% of its revenues coming from formulations and 30% from APIs.

19

Global Footprint

The Company has a wide onshore and offshore presence with its products available in close to 70 countries. In terms of overall revenues, the overseas business constitutes close to 55%, while the balance comes from the domestic market. Lupin has retained a stronghold in India growing ahead of the industry and has achieved a formidable position in many segments leveraging its sound marketing prowess and a wide product basket. The US is Lupins largest market overseas where it has developed a robust branded and generic business. Over a period of four years, Lupin has developed a business of US$ 200 mn in the US and has been recognized as one of the fastest growing Companies in this market. The Company aspires to replicate this success in other Advanced Markets such as Europe, Japan and Australia. During 2007, Lupin fast tracked its growth trajectory through two acquisitions. While the acquisition of Kyowa positioned the Company amongst the top ten generic pharma Companies in Japan; another acquisition in India provided it a springboard to leap ahead in the CRAMS space.

20

Manufacturing

Lupins manufacturing facilities, spread across India, play a critical role in enabling the Company realize its global aspirations, benchmarked to International standards, these facilities are approved by international regulatory agencies like US FDA, UK MHRA, TGA Australia, WHO, and MCC South Africa. The Company has leveraged its strong vertical integration in building a global pharmaceutical powerhouse. Research The Companys intellectual pool of over 400 scientists is constantly engaged in path breaking research. Its focus on drug discovery and advanced drug delivery
21

systems research has resulted in significant progress in its Novel Drug Discovery & Development program and development of platform technologies that are being used to develop value-added generic pharmaceuticals. Companys strong focus on creating Intellectual Property (IP) assets has resulted in generating revenue streams through IP. The Companys overall research prowess enables it to master cutting edge science and technology. Financials Currently positioned amongst the top five pharmaceutical companies of India, the Company is committed to achieve sustainable earnings and growth for all its stakeholders. For the financial year ended March 2008, Lupin's Revenues and Profit after Tax were Rs.27, 730 mn (US$ 694 mn) and Rs.4, 083 mn (US$ 102 mn) respectively. The Company reported a 34 % rise in revenues while the Net profit increased by 32%. The company incurred R& D expenditure of Rs 1546 mn, which is 6 % of its gross sales. Going Forward Lupin is poised to capitalize the opportunities that are set to unfurl in the global pharmaceutical space and establish it as an innovation led transnational pharmaceutical company.

22

In FY 2011, net sales grew by 20% to INR 57,068 Mn up from INR 47,736 Mn the previous year. EBITDA margins increased to 20% and net profits grew at 27% to INR 8,626 Mn compared to INR 6,816 Mn in FY 2010. Standing on the shoulders of our past performance record, these results deliver some of the best growth numbers in the industry - 27% CAGR in Gross Sales; 32% CAGR in EBITDA and 38% CAGR in PAT, for the last 6 years.

23

Our Vision

To be an Innovation - led Transnational Pharmaceutical Company Our Values. Superior Performance 1. Integrity 2. Entrepreneurship 3. Customer Orientation 4. Working Together 5. Respect for People

History & Milestones Year Milestones 2009 Lupin acquired majority stake in Multicare Pharmaceuticals Philippines Inc. 2008 Lupin expanded its product basket in Japan-Kyowa and received ten products approval from Ministry of Health & Labour Welfare, Japan. Lupin acquired Hormosan Pharma GmbH, a Generic Company in Germany. Lupin acquired stake in Generic Health Pty Ltd., in Australia. Lupin acquired Pharma Dynamics in South Africa.

24

In2007 Lupin acquired Vadodara based Rubamin Laboratories Ltd (rechristened to Novodigm Ltd). Lupin acquired Kyowa

Pharmaceutical Industry Company Limited, a leading Generic Company in Japan. Commercial production was started at the New finished dosage facility at Jammu. Lupin received Best new manufacturer of the year award from Amerisource Bergen. 2006 A new facility was set up at Jammu. Maiden Bonus share were issued in the ratio of 1:1. Maiden issue of Foreign Currency Convertible Bonds (FCCB) aggregating US $100 mn,which are listed on Singapore Stock Exchange. 2005 Maiden Employees Stock Option Plan was

implemented.US FDA and MHRA (UK) approvals were received for Goa. New Lovastatin plant at Tarapur was approved by the US FDA. 2004 WHO approval was received for State of the art formulation Plants at Goa and Aurangabad. 2003 Lupin had successfully implemented SAP ERP across the Company to unify all business functions and processes. Introduced collaborative messaging and workflow solution on the intranet. Oral Cefaclor injectible Plant at Mandideep was approved by US FDA. Lupin Pharmaceuticals Inc. USA was formed for trading, marketing and developmental activities in the US. 2002 Exports to the Advanced Markets crossed Rs.1000 mn. Rising trend of exports as a % of total revenue up 33% year-over- year.

25

Patent filings crossed 100. Five AND as were filed.. New Anti-TB facility was commissioned at Aurangabad.

Rablet was rated by ORG-Marg as the second best launch of FY 2002- 2001 Lupin became the only Asian Pharmaceutical company to receive US FDA approvals for its sterile cephalosporin facility. A state of the art US FDA approvable oral cephalosporin bulk active plant was commissioned. State of the art R &D Centre at Pune was commissioned. Lupin commenced supply of Cephalosporin bulk actives to its alliance partners in the US. Lupin Laboratories Ltd was amalgamated with Lupin Chemicals Ltd, whose name was changed to Lupin Limited. 2000 The Cefotaxime facility was approved by the US FDA. The Companys restructuring operations yielded encouraging results.Work commenced on the R&D Centre at Pune. 1999 Lupins inject able cephalosporin bulk active plant at Mandideep was approved by UK MCA. 1997 Lupins inject able Cephalosporins dosages plant at Mandideep obtained UK MCA approval. Lupins formulations facility at Aurangabad was upgraded. Three plants of Lupin, manufacturing C efaclor at Mandideep, 7 ACCA at Ankleshwar

26

and Rifampicin at Tarapur, got US FDA approvals. ICMA Technology award was given for injectable Cephalosporins . 1996 Government of India conferred the Best Exporter Award on Lupin. Company received the ICMA Technology award for injectable Cephalosporins. 1992 Fermentation Plant of Lupin C hemicals Ltd was established at Tarapur,Maharashtra. Sterile Plant for injectable Cephalosporins (bulk) was

commissioned at Mandideep. Lupin Laboratories Ltd and Lupin Chemicals Ltd raised money through IPOs in 1993-94. Won FICCIs award for contribution towards rural development. 1991 Injectable cephalosporin (bulk and dosages) production was initiated at Mandideep. Lupin won the ICMA technology award for successfully manufacturing Vitamin B6. 1989 Joint venture in Thailand Lupin Chemicals (Thailand) Ltd was established. Two Plants Ankleshwar and Mandideep received US FDA approvals for maintaining stringent quality standards. 1988 The Lupin Human Welfare and Research Foundation (LHWRF) was founded by Dr Desh Bandhu Gupta to provide an alternative, sustainable and replicable model of rural development. 1987 Cephalexin Plant at Mandideep and 7 ADCA plant at Ankleshwar went on stream.
27

1981 Ethambutol production was started 1980 Lupin commissioned a formulations plant and an R&D center at Aurangabad. 1972 Lupin Laboratories Pvt Ltd was incorporated. 1968 Lupin commenced.

28

OUR VALUES

29

General Awards

2011 Top Indian Pharma company under the Pharmaceuticals sector for the Dun & Bradstreet Rolta Corporate Awards 2010.

Lupin ranked amongst India's Top 3 'Best Companies to Work For' in Healthcare and Pharma Sector. Hall of Fame Award by Chemtech Foundation (Leadership and Excellence Awards)

IMM (Institute of Marketing and Management) Award for Excellence as Top Organisation. Lupin ranked 2nd amongst

India's "Best Companies to Work for" in the Biotechnology and Pharmaceutical Sector. 2010 Indian Pharmaceutical Company of the Year 2010" by Frost & Sullivan India Excellence in Healthcare Awards 2010. Best Drug Development Company, Asia' by The New Economy Pharmaceutical & Healthcare Awards 2010

Lupin wins 'The Most Promising Entrant into the Big League' by CNBC India Business Leader Awards 2010 2009 International Excellence Award by Institute of Economic Studies. Outstanding Export Performance Award by

30

Pharmexcil (Pharmaceuticals Export Promotion Council of India) 2008 Wal-Mart Supplier Award of Excellence' for overall commitment, performance, on-time shipping, innovative

programs and overall partnership.

2007 Amerisource Bergen, one of the largest and leading wholesalers in the US conferred the Best New Manufacturer of the Year, Generics Rx to Lupin Pharmaceuticals Inc.

Cardinal

Health

conferred

two

awards

the

Trade

Representative of the Year and the Quality Supplier Award to Lupin Pharmaceuticals Inc. CSR Awards Year Awards.

1990 Merit certificate by the District Administration for Excellent Social Service & Rural Development of Independence Day. 1991 FICCI Award for outstanding achievement in rural development by Prime Minister of India.

31

1992 ICMA Award for innovative and purposeful programs for social progress. 1993 PHD chamber of commerce award for Corporate Citizen. 1994 Jamna Lal Bajaj Award for outstanding contribution in Rural Development. 1995 Bhamashah Award for contribution in the field of Education by Chief Minister of Rajasthan. 1998 Merit certificate by the Chief Minister of Rajasthan for voluntary and social services. 2003 Business world FICCI-SEDF Corporate Social

Responsibility Award 2003 by Ex- President of India Shri K R Narayanan. 2006 FICCI Ladies Organization Award Outstanding Institution for Women Welfare by FICCIs Secretary General Shri Amit Mitra and FLOs President Mrs Usha Agarwal. Best NGO Award from NABARD for significant work done in area of SHG formation and Bank Linkage.

32

OVERVIEW

Guided by its mission to become an Innovation led, Transnational Pharmaceutical Company, Lupins scientific pool of close to 450 researchers constantly strive to develop new technologies and products. Lupin Research Park (LRP) at Pune, spread across 19 acres is the hub of the Companys research activity. The Centre harbours a culture that fosters innovation and helps shape inventions into innovative commercial products. Today, the Company has the proficiency to develop a wide range of pharmaceuticals, across the value chain encompassing complex APIs to value-added difficult-todevelop formulations. During 2007-08, the total investment of the Company in R&D (excluding depreciation) was over Rs.2, 000 mn, 7.5% of consolidated net sales.

Lupins manufacturing facilities, spread across India, play a critical role in enabling the Company realize its global aspirations, benchmarked to International standards, these facilities are approved by international regulatory agencies like US FDA, UK MHR A, TGA Australia, WHO, and MCC South Africa. The Company has leveraged its strong vertical integration in building a global pharmaceutical powerhouse.

33

Business Development and Partnerships At Lupin, we strive to help people lead healthier lives through delivering affordable and accessible medication to patients across the world. We are engaged in discovering, developing and

commercializing innovative medicines that satisfy unmet medical needs.We recognize the contributions made by our partners in achieving this objective and believe in leveraging successful partnerships in the areas of discovery, technology, products and commercial operations. Over the years we have executed several business development transactions including product in/out-licensing, co-development agreements, technology licenses, joint ventures, and acquisitions that are collectively enabling Lupin to make medical treatment accessible to a larger patient population across the globe. Our Strengths are: Fully Integrated pharmaceutical company Strong Research Base in the areas of Generics, New Chemical Entity, Novel Drug Delivery Systems, New Biological Entity, research World Class GMP Compliant Manufacturing Facilities approved by international regulatory agencies Sound

Technology Base and expertise to scale up technology to deliver innovative products. Strong Global Footprint : USA, India, Japan, Australia, UK, Germany, CIS
34

Large Dynamic Sales Force Robust Distribution Network Quality The importance of quality cannot be undermined in any organization. The customers both in India and overseas are becoming increasingly demanding with respect to cost, quality and delivery performance. Achieving these three require imbibing the philosophy of Total Quality Management into the organizations culture. It has to become the very essence of the organization more so in the case of the pharmaceutical industry. The pharma industry is subject to strict quality control and scrutiny. India by far has the largest number of USFDA approved plants, outside of US which exemplifies the increasing focus on quality assurance of the industry. At Lupin, we take considerable pride in the quality that we ensure and assure. Our operations are guided by our Quality Policy. We believe that quality is the mainstay of competitiveness. We thus constantly create an environment of Quality and Compliance in line with the global best practices. Quality Assurance is defined as the process of 'providing confidence that requirements will be met through highest quality and there after systematic activities are put in place to ensure quality requirements for a product or service are fulfilled. The Corporate Quality Assurance (CQA) cell at Lupin works as a link between research & manufacturing for quality products for customers. It targets at

35

ensuring that the Lupin Group follows a standardized common quality system ensuring consistency, effectiveness and efficiency during the manufacture of APIs and formulations at all sites. The CQA focuses on: Establishing Quality Standards Developing processes to achieve those standards Monitoring to ensure Compliance Upgrading technology standards Training personnel on quality aspects The global quality team is engaged in driving the quality philosophy of the organization and assuring that the global standards of good manufacturing are implemented in the best form and spirit at every location during each process. CQA monitors effectiveness of site Quality organization and Contract Manufacturing Quality organization through periodic quality reviews, periodic audits, budgetary reviews and review of compliance to regulatory inspections and customer audits. Quality reviews focus on review of failures, rejections, market complaints, deviations, noncompliances, product stability, various Corrective and Preventive actions planned, productivity, cost of quality etc. CQA also supports the site Quality organization by providing necessary resources, technical guidance and training. CQA also continuously endeavors to upgrade skills and competence levels in QC / QA function by introducing advanced technologies.

36

Enterprises that exemplify leadership in quality not only deliver quality products and services, but also effectively set industry benchmarks and redefine standards for those who share their mission. At Lupin we are constantly endeavoring to achieve excellence.

Our Quality Policy

The Company shall establish and maintain high standards of quality for its products manufactured at various sites, including those at contract manufacturing sites, meeting GMP and GLP norms. Products shall be manufactured and marketed meeting all quality parameters related to identity, purity, safety and efficacy through well-defined quality assurance and validated systems. The Company shall comply with current national and international regulations as applicable and continuously strive for achieving stringent global standards. Major thrust shall be given on quality up gradation and product integrity on continuous basis to achieve higher level of customer satisfaction. Continuous training shall be given to the employees in the organization to enhance their skills in performing their assigned work

37

38

OBJECTIVES

To know the awareness of the customer towards lupin Pharmaceuticals. To study the major market leader of these Salt. To find the factors that dealer keeps in mind while purchasing the particular brand of these Salt. To analyze the performance of Lupin products at medical shops of BAREILLY region.

39

RESEARCH METHODOLOGY

Research means a search for knowledge or gain some new knowledge and methodology can properly refer to the theoretical

analysis of the methods appropriate to a field of study or to the body of methods and principles particular to a branch of knowledge. A Research methodology has a specified framework for collecting the data in an effective manner. defining a problem, defining Research methodology means a the research objectives, and

developing the research plan, collecting the information, analyzing the information and presentation of findings." Such framework is called "Research Design". The research process that was followed by me consisting following steps; A) Defining the problem B) Developing the research plan C) Collection of information D) Analyzing the information E) Presentation of findings

40

A) Defining the problem and research objectives the definition of problem includes the study of Survey to check sale of TONACT and RAMISTAR brands available in the market. B) Developing the Research Plan The development of research plan has following steps:

1. Data source 2. Research approach 3. Research instrument 4. Sampling plan i) Sample unit

ii) Sample size iii) Contact methods

1. Data Source: The researcher can get two types of data: a) Primary Data b) Secondary Data

41

Primary Data Primary data is a data which did not exist earlier and is being collected by the Researcher first time for its specific objectives. In other words, direct collection of data from the source of information, technology including personal interview, telephonic interviews with the help of Questionnaire. Secondary data Any data which have been collected earlier for some purpose are the secondary data. Indirect collection of data from sources containing past or recent past information like brochures, annual publication, books etc. Secondary sources used are:

Text books Internet sites Newspaper articles Bouchers

42

2. Research Approach Survey is best suited for descriptive and analytical research. Survey are undertaken to learn about peoples knowledge, beliefs, preferences, satisfaction and so on and to measure these magnitudes in the general public. Therefore, I have done this survey for Descriptive and analytical research process.

Research instrument

Questionnaire: Questionnaire is a type of statistical survey handed out in paper form usually to a specific demographic to gather information in order to provider better service or goods. A document that contains a set of questions that has been specially formulated as a means of collecting information and surveying opinions, etc on a specified subject or theme, etc . A questionnaire was constructed for my survey.

43

1. Sampling plan Sample is a group of few items which represents the population or universe from where it has been taken. The sampling plan calls for three decisions; a) Sample unit

b) Sample size

a) Sample unit Who is to be surveyed? The target chemist shop must be defined that has to be sampled. It is necessary so as to develop a sample frame so that

everyone in the target population has an equal chance of being sampled. I have completed my survey in BAREILLY. b) Sample size - How many people have to be surveyed? Generally, large sample size gives more reliable results than small samples. The sample

consisted of 300 medical shops. The selection of the shops was done on the basis of Simple Random Sampling. Simple random sampling is the technique in which every item in the universe and population has an equal chance of being selected in the sample. Researcher has no role to play or he cannot influence the

44

selection process there is no possibility of biasness. It can easily assess the accuracy of estimate.

C) Collecting the information After this, I have collected the information from the respondents with the help of Questionnaire.

D) ANALIZE THE INFORMATION

The next step is to extract the pertinent findings from the collected data. I have tabulated the collected data and developed frequency distributions. Thus, the whole data was grouped aspect wise and was presented in tabular form. Thus, frequencies and percentages were prepared to render impact of study. E) Presentations of findings This was the last step of survey.

45

LIMITATIONS OF THE STUDY

1. The study is to be limited to BAREILLY, BUDAUN only because of limited time and financial resources. So results of the study may not be generalized for India as a whole. 2. The sample size is limited to 300 respondents, so complete knowledge about subject is not possible. 3. Another factor could be the existence of biasness in the respondents mind .Many times these biasness have greater bearing on the responses put forward by respondents. 4. Human weaknesses such as inattentiveness cannot be ignored. 5. Chemists generally considered me as an insurance agent and tried to avoid discussions with me. 6. Chemists do not provide us the correct information some time.

46

47

1. Do you know about Lupin Pharmaceuticals Company? Response %age of Respondents YES NO 90% 10 %

NO 10%

YES 90%

Interpretation: Lupin is one of the leading companies in pharmaceutical industry. From the above graph it is clear that all the 90% respondents know about Lupin Pharmaceuticals.

48

2. Have you ever deal with Ramipril and Atorvastatin salt/product?

YES NO

Interpretation:

From the above graph it is clear that 90% respondents deal in both these salts and remaining 10% respondent do not deal with this Salt.

49

3. According to you, which companies are leading in this salt?


COMPANY NAMES LUPIN CIPLA USV RANBAXY DR.REDDY FDC TOTAL NO.OF RESPONDENTS 80 60 62 50 30 8 290

GRAPH

Interpretation: From the above graph it is clear that Lupin is leading company in both these Salts. It is clear that Lupin is the leading brand in these Salt followed by Cipla, USV, Ranbaxy, Dr .Reddy and FDC.

50

4. Which company has highest prices? COMPANY NAMES LUPIN CIPLA USV RANBAXY DR.REDDY FDC Highest prices in rs. (mg) 80 85 75 79 55 29

Graph HIGHEST PRICES


100 Axis Title 80 60 40 20 0

Interpretation: From the study it is clear that Cipla brand has highest price i.e. Rs. 85/- followed by Lupin whose price is Rs. 80/-. The price of Ranbaxy is Rs. 79 while the price of USV is Rs. 75/followed by Dr .Reddy and FDC.

51

5. Which company brand has lowest price? COMPANY NAMES LUPIN CIPLA USV RANBAXY DR.REDDY FDC GRAPH HIGHEST PRICE Highest prices in rs. (mg) 80 85 75 79 55 29

RANBAXY USV FDC Other CIPLA LUPIN DR.REDDY

Interpretation: From the study it is clear that FDC Brand has the lowest price i.e. Rs. 29/- per mg.

52

6. What is the weekly (prescription) sale of this salt? SALT Ramipril Atorvastetin WEEKLY SALE (APP) 8 10

GRAPH WEEKLY DEMAND

10

WEEKLY SALE

Interpretation: From the above data we find that the weekly sale of Ramipril is app. 8 prescriptions and weekly sale of Atorvastetin is app. 10 prescription.

53

7. Which company has good relation and deals with you. Please specify?

Interpretation: From the survey it is clear that Lupin and USV have good dealing with the respondents and they tried to maintain good relations with doctors also.

54

9. by doing which medium you communicate with your company? Particulars Email M.R PHONE POST % age of respondents 10% 76% 14% ------

GRAPH % OF RESPONDENT
% OF RESPONDENT

76

10 14 E-MAIL

MR PHONE POST

Interpretation: From the above graph it is clear that 76% respondents communicate with the company through Marketing Representatives, 14% through Phone and remaining 10%through Email. None of the respondents is using post to communicate with the company.

55

10. Does the goodwill of the company affect the sales of this salt?

GRAPH

Interpretation: From the above graph it is clear that goodwill of the company affects the sales of medical shops. 75% respondents favored that the goodwill of the company affect their sale while 25% respondents said that it doesnt put much impact on their sales.

56

11. What are the performance of Lupin product /salt of your shop? Particulars Very good Good Average % respondents 58% 27% 15%

GRAPH % of respondents
Average 15%

Good 27%

Very good 58%

Interpretation: From the above graph it is clear that Lupin has good name and fame in the market.57% respondents favored that the performance of Lupin in their shop is very good, 27% says good and remaining 15% says that the performance of Lupin is average in their shop.

57

58

FINDINGS OF THE STUDY

Lupin is one of the leading companies in pharmaceutical industry. From the above study it is clear that all the 98% respondents know about Lupin Pharmaceuticals. From the above study it is clear that 90% respondents deal in both these Salts and remaining 1% respondent do not deal with these Salts. From the above study it is clear that all the major companies manufacture both these Salts. From the above study it is clear that Lupin is leading company in these Salts. From the study it is clear that Cipla brand has highest price of these Salt i.e. Rs. 85/- while FDC Brand has the lowest price of these Salt i.e. Rs. 28/. From the above data we find that weekly sale of Ramipril and Atorvestetin is app. 8 and 10 packs. From the above study it is clear that Lupin and USV have good dealing with the respondents and they tried to maintain good relations with doctors also. From the above study it is clear that 76% respondents communicate with The Company through Marketing

Representatives, 14% through Phone and remaining 10%

59

through E-mail. None of the respondents is using post to communicate with the company. From the above study it is clear that Lupin has good name and fame in the market. 57% respondents favored that the performance of Lupin in their shop is very good, 27% says good and remaining 15% says that the performance of Lupin is average in their shop.

SUGGESTIONS

There should be proper feed back for the chemists, whenever any scheme is introduced for the chemists, they should be made aware of it. Medical or Sales representative should be given guidelines to intimate each and every chemist of his area about the schemes. The company should provide gifts, incentives and tours at free of cost to retailers and dealers to promote the sale of Lupin. The company should determine the pricing strategy of other company and fix the price of their product by keeping price of other company in their mind. To maintain relationship with USV for long time company should provide credit facility to USV and other product scheme to company.

60

As 10% respondent communicate through email so company should use advance technology so that large no of respondent communicate through email and phone. As 57% respondent favor the product of Lupin so company should create awareness about product by advertisement, promotional campaign or any other method so that more and more people favor Lupin product.

61

62

CONCLUSION

India's US$ 3.1 billion pharmaceutical industry is growing at the rate of 14 percent per year. It is one of the largest and most advanced among the developing countries.

Indian companies, in an effort to consolidate their position, will have to increasingly look at merger and acquisition options of either companies or products. This would help them to offset loss of new product options, improve their R&D efforts and improve distribution to penetrate markets.

The success of the company lies in strict quality control, manufacturing facilities, Cost Competitiveness, Well Developed Industry with Strong Manufacturing Base, Access to pool of highly trained scientists, both in India and abroad, Strong marketing and distribution network.

From the study it is clear that Lupin is one of the leading companies in Pharmaceutical industry. It is also revealed from the study that 99% respondents deal in both salts and Lupin is leading company in both these salts. Lupin should provide gifts, incentives and tours at free of cost to retailers and dealers to promote the sale of Lupin. Lupin should do efforts to promote the products and create awareness through channels such as advertisements. The

63

company should provide at least 20% discount and credit period to the wholesaler/retailers promote Products. There are lots of opportunities in Indian market therefore Lupin should move in new markets and grow the network and distribution channels. The company has a good name and fame in the market but the company should try to cover more and more doctors through personal visit, E-mail, posts and hold special presentations to doctors, so they also recommend the products of Lupin.

Thus we can say that the company is growing well in the market by leaps and bounds and the day is no far when Lupin will leave behind all the major companies of the world. The company has proper vision and mission for the future and I hope Lupin will easily achieve its future targets and mission.

64

65

Dear Respondent, I am student of M.B.A.-3rd semester of IIEM (INVERTIS INSTITUE OF ENG. AND MANAGEMENT) BAREILLY. I am conducting a survey to check sale of RAMIPRIL and ATORVASTATIN salt in the market. Its perception, prices and any scheme offered by company. So I need your Cooperation which will help me to draw conclusive. I assure that your information will be kept confidential. 1. Do you know about Lupin Pharmaceuticals Company? YES NO

2. Have you ever deal with RAMIPRIL and ATORVASTATIN Salts? YES 3. Which company made this Salt? LUPIN RANBAXY DR.REDDY 4. Which companies leading in this salt? LUPIN RANBAXY DR.REDDY
66

NO

CIPLA USV FDC

CIPLA USV FDC

5. Which company has highest prices? LUPIN RANBAXY DR.REDDY 6. Which company brand has lowest price? LUPIN RANBAXY DR.REDDY CIPLA USV FDC CIPLA USV FDC

7. What is the weekly (prescription) sale of RAMIPRIL Salt? 5-10 15-20 10-15 20-25

8. What is the weekly (prescription) sale of ATORVASTATIN salt? 5-10 15-20 10-15 20-25

9. Which company has good relation and deals with you. Please Specify? __________________________________________________ _____

67

__________________________________________________ _____ 10. by doing which medium you communicate with your company? E-MAIL PHONE M.R. POST

11. Is the goodwill of the company effect the sales of this salt? YES NO

12. What are the performance of Lupin product /salt of your shop? VERY GOOD AVERAGE GOOD

PROFILE OF THE RESPONDENT

Name: __________________________________________ Address: __________________________________________

68

Thanks for participating in the survey.

69