Copy of Project Shallu SHALLU to Be Sent (FINAL) Dr. Reddy's

A PROJECT REPORT

ON

SALES POTENTIAL OF PAIN MANAGEMENT &

DESENSITIZER TOOTHPASTE

FOR

DR.REDDY'S LABORATORIES LIMITED

SUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY

IN PARTIAL FULFILLMENT OF THEREQUIREMENTS FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

SHALLINI SHARMA

2020070004

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA (2008)

Project: “To check Sales Potential of Pain management & Desensitizer toothpaste”- Dr.Reddy's Laboratories Limited. 1

Duration of the project:

23rd June – 2nd August, 2008 ( 6 weeks)

Name of Company:

Dr.Reddy's Laboratories LimitedBlock-III, level V, White House,Kundanbagh, BegumpetHydrabad 50016, India.

Project:

To check Sales Potential of Pain management & Desensitizer toothpaste in Jalandhar & Pathankot.

Mentor:

Mr. Bindusar Kalia (Professional Service Representative)

Status of the Project:

Completed

Experience in the company:

Good, learning experience

Project Submitted By:

Shallini SharmaMBA (Marketing)2007-09E-mail Id: [email protected]: August 2, 2008


AUTHENTICATION CERTIFICATE

To whomsoever it may concern

This is to certify that, Ms. Shallini Sharma, Regd. No. 2020070004, has completed her project

entitled “To check Sales Potential of Pain management & Desensitizer toothpaste” in

Marketing. The project has been submitted in partial fulfillment of requirement for the course of

Degree of Master of Business Administration from Lovely Professional University,

Phagwara. She joined Dr.Reddy's laboratories limited on June 23, 2008. During this period she

has displayed exemplary code of conduct.

She has worked under my supervision and guidance, and that no part of this report has been

submitted for award of any Degree, Diploma, Fellowship, or any other similar title or project.

PROJECT GUIDE

Mr. Bindusar Kalia(Professional Service Representative)


Confirmation letter from Dr.Reddy's Laboratories Limited

Note: Forwarded message attached

-- Original Message --

From: "alok prasad shrivastava" <[email protected]>To: [email protected]: "harshdrl" <[email protected]>Subject: Selected Ms.Shallini Sharma

To The Placement CoordinatorLovely School Of Business Punjab-144402

Dear Sir/Mam,Please refer No:A0103/LPU/TC/ST/08 regarding Ms.Shallini Sharma joining as summer training to Dr.Reddy’s.We are please to inform you that she has been short listed for the same. She will be doing this project in Ludhiana & Jalandhar.This is for your information .

RegardsAlok ShrivastavaDr.Reddy's Laboratories Limited


ACKNOWLEDGEMENT

Before I get into the details of my project, I would like to show my sincere gratitude by adding few

heart full words for the people who were part of this project report in numerous ways. People who

gave unending support right from the stage the project were conceived.

I take this opportunity to give a special thanks to Mr. Harsh Vig (Area Sales Manager) for providing

me the opportunity to do my summer training at Dr. Reddy’s Laboratories Ltd.and for granting me the

project as well. I would also like to express my heartfelt thanks to Mr. Bindusar Kalia (Professional

Service Representative) for taking the responsibility to be my supervisor till the completion of the

project. I am indebted to him for the active involvement in the extensive discussions, which have

taken place over the past month despite his busy schedule. He has been an invaluable source of

thoughtful comments and conceptual insights and I would like to thank him for the intellectual input

and help in conceptualizing the project.

I would also like to thanks Mr. Amrit Pal Singh (Professional Service Representative) for the

cooperation and intellectual counsel he gave me throughout the work on this project. I would also like

to express my deep sense of gratehide to my respected teacher, Mr. Pankaj Jain, an ideal teacher and a

true guide, for his rendered invaluable help and guidance to me during my project. He remained a

continuous source of information and motivation for me.

Last but not the least; I owe my overwhelming gratitude to all the people who have directly or

indirectly have contributed to the completion of the project.

Sincerely,Shallini Sharma


Table of Contents

Part I Page No

Introduction:

A. Pharmaceutical Marketing ………………………………………………… 10

B. Review Of Literature….…………………………………………………… 13

Part II

Introduction to:

Pharmaceutical Sector:

A. Indian Pharmaceutical Industry: An Overview……………………………… 15

B. Major Players in pharmaceutical industry…………………………………... 19

Dr. Reddy’s Laboratories Ltd.

A. Dr. Reddy’s Laboratories Ltd. - life, research, hope………………………. 23

B. Recent Achievements & Milestones……………… ……………………… 26

C. Product Range………………….………………………………………….. 33

D. Statistical profile from 2000-2008……………………………………… 37

E. Current Financial status…………………………………………............... 40

F. Future Prospectus……………………………………………………….. 41

Part III

A. Objectives of the study……………………………………………….…..…. 43

B. Research Methodology……………………………………………………… 44


Part IV

A. Data Analysis and Interpretation ……………………………………….. 48

Of Jallandhar …………………………………………………….. 49

Of Pathankot …………………………………………………….. 60

Part V

A. Findings & Recommendations ………………………………………….. 70

B. Conclusion ………………………………………………………………. 72

C. Questionarre …………………………………………………………….. 73

D. Bibliography ……………………………………………………………. 76


List of Tables

Table No. Particulars Page No.

1.1 Growth Indicator of Pharmaceutical Industry 17

1.2 Market Share of Indian Pharmaceutical companies 18

List of Figures

Figure

No.

Particulars Page No.

1.1 Growth of Indian Pharmaceutical Industry 18

1.2 Therapy wise Product distribution of Dr. Reddy’s Labs 35

1.3 Area wise distribution of Respondents 48

FOR JALLANDHAR

1.4 Business wise distribution of respondents 49

1.5 Therapy wise distributions of respondents 50

1.6 Market share of various pain killer salts in the market 50

1.7 Market leaders for analgesics 51

1.8 Quantity sale graph for analgesics 52

1.9 Market Share of Various salts used in Desensitizer Toothpaste 53

2.0 Market leaders for Desensitizer Toothpaste in the market 54

2.1 Quantity sale graph for salts used in Desensitizer Toothpaste 54

2.2 Mode of Selling for analgesics & Desensitizer Toothpaste 55

2.3 (a)

Respondents views for:

Quality of products 56


2.3(b) for Price variation of products 56

2.3(c) for Availability of product in the market 57

2.3(d) for Wide Publicity of products 58

2.3(e) for Recommendations by Medical officers 58

FOR PATHANKOT

2.4 Business wise distribution of respondents 60

2.5 Therapy wise distributions of respondents 61

2.6 Market share of various pain killer salts in the market 61

2.7 Market leaders for analgesics 62

2.8 Quantity sale graph for analgesics 63

2.9 Market Share of Various salts used in Desensitizer Toothpaste 64

3.0 Market leaders for Desensitizer Toothpaste in the market 65

3.1 Quantity sale graph for salts used in Desensitizer Toothpaste 65

3.2 Mode of Selling for analgesics & Desensitizer Toothpaste 66

3.3(a)

Respondents views for

Quality of products 67

3.3(b) for Price variation of products 67

3.3(c) for Availability of product in the market 68

3.3(d) for Wide Publicity of products 69

3.3(e) for Recommendations by Medical Officers 69


Pharmaceutical Marketing

History

The marketing of medication has a long history. The sale of miracle cures, many with little real

potency, has always been common. Marketing of legitimate non-prescription medications, such as

pain relievers or allergy medicine, has also long been practiced. Mass marketing of prescription

medications was rare until recently, however. It was long believed that since doctors made the

selection of drugs, mass marketing was a waste of resources; specific ads targeting the medical

profession were thought to be cheaper and just as effective. This would involve ads in professional

journals and visits by sales staff to doctor’s offices and hospitals. An important part of these efforts

was marketing to medical students.

It was found that the average cost to bring to market a so-called block-buster drug is currently

estimated at $895 million (EFPIA, 2002). Obviously firms who spend that kind of money need to

recoup their costs. In order to sustain current levels of growth, firms would need to introduce one new

product each year that would sell $4.9 million for each 1 to 1.5 per cent it has of the world pharmaceutical market.

A. DIRECT AND INDIRECT MARKETING TO HEALTH CARE PROVIDERS

Physicians are perhaps the most important players in pharmaceutical sales. They write the

prescriptions that determine which drugs will be used by the patient. Influencing the physician is the

key to pharmaceutical sales. Historically, this was done by a large pharmaceutical sales force. A

medium-sized pharmaceutical company might have a sales force of 1000 representatives. The largest

companies have tens of thousands of representatives around the world. Sales representatives called

upon physicians regularly, providing information and free drug samples to the physicians. This is still

the approach today; however, economic pressures on the industry are causing pharmaceutical

companies to rethink the traditional sales process to physicians. In 2002, the pharmaceutical industry

spent $ 5.63 billion on promotions, which include free office supplies, all-expenses-paid events, sales

representatives, and awards to physicians (Parker and Pettijohn), 2003.

Corstjens (1991) identifies four main buying parties for prescription drugs:


Prescriber – prescribing rights vary internationally and this category may include doctors,

dentists, pharmacists, nurses and optometrists.

Influencer – hospitals, nurses, professors, reimbursement agencies

Consumer – patient

Financier – partly patient, partly government or third party (varies by country), managed

health care organization (hospitals, Health Maintenance Organizations etc.)

B. DIRECT MARKETING TO PATIENTS

Since the late 1970s, direct-to-patient marketing of prescription drugs has become important. Many

patients will inquire about, or even demand to receive, a medication they have seen advertised on

television. In the United States, recent years have seen an increase in mass media advertisements for

pharmaceuticals. Expenditures on direct-to-consumer (DTC pharmaceutical advertising) have more

than quintupled in the last seven years since the FDA changed the guidelines, from $700 million in

1997 to more than $4 billion in 2004. Heavy direct-to-consumer (DTC) advertising strongly correlates with increased sales for the promoted drugs but, in terms of both money and health, may not be in the best interest of patients.

Key facts

Marketing to Health Care Providers & Prescribing Patterns:

A 2008 physician survey by KRC Research found that the vast majority of physicians say their

clinical knowledge (92%) and a patient’s unique situation (88%) greatly influence their

prescribing decisions. 35% point to patients’ coverage and formulary as an important factor in

prescribing, while just 11% say that pharmaceutical company representatives greatly influence

them. Surveys by Boston Consulting Group and Tufts Center for the Study of Drug

Development echo these findings.

1/3 of physicians report that they do not always discuss treatment options that are not covered

by an insurer.

Approximately 67% of all prescriptions used in the United States are generic. This is a sharp

increase in recent years—49% of prescriptions in 2000 were for generics—and one of the

highest generic use rates in the world.


Nearly 90% of physicians are either very satisfied (29%) or somewhat satisfied (59%) with the

information they received from company representatives, according to the KRC survey. The

BCG survey yielded similar results with over 90% of physicians believing information from

representatives to be either very valuable (38%) or somewhat valuable (53%).

The 2008 KRC physician survey found 69% of physicians believe free drug samples are either

always useful (52%) or often useful (17%). 95% of physicians surveyed agreed that samples

allow patients to start immediate treatment and 84% said that samples provide them with

useful first-hand experience.

A recent Kaiser Family Foundation survey found that 75% of physicians frequently (58%) or

sometimes (17%) give patients samples to assist them with their out-of-pocket costs. Physician

/ Patient Relationship

According to an FDA survey, a vast majority (over 90%) of patients who asked about a drug

reported that their physician “welcomed the question.”

The FDA survey also polled 500 physicians and found that:

73% believed that DTC ads helped patients ask thoughtful questions.

53% of physicians considered the number one benefit of DTC ads to be the better discussions

they had with their patients about their health.

91% of physicians said the patient did not try to influence the course of treatment in a way that

would have been harmful

American patients receive about 1/2 of recommended care, according to a landmark

2003 study by RAND Health.


Review of Literature

Qaiser.M, Chandran P.Mohan (Saturday, October 29, 2005), said that in the present situation,

Indian pharmaceuticals may have weathered the storm because of many factors. The 'product patents'

of foreign companies may have expired, or may have a corresponding 'process patent' in India, or may

not have been registered as patents in India. In all these situations, there is no cause for alarm. Indian

pharmaceutical industry is still in good health, as seen by the results declared by the leading

pharmaceutical companies (Pharma sector sales up by about 20% year-on-year). However, prevention

is better than cure. This is the best time to perform patent analysis, assess the situation of your patents

and others' patents, explore the possibilities of patent extensions, and licensing, and to understand the

impact of product patents when new drugs will be introduced in future. This is the opportunity to

create market advantage by patenting robust drug formulations and to create effective brands

(trademarks) that can outlast patents. Now, more than ever, there is a need to define a growth-focused

Intellectual Property Rights (IPR) strategy. Because, winning without a strategy is only possible in a

lottery.

Gardner Nancy, said that Direct-to-physician activities accounted for the bulk of spending, with $5.3

billion spent on a practice called "detailing" - visits to physicians by pharmaceutical sales

representatives in order to promote their firm's drugs. Free drug samples distributed during these visits

were valued at roughly $16.4 billion. In the study, researchers analyzed data for three widely

prescribed drugs issued by some 74,000 physicians over a two-year period to investigate the effect of

pharmaceutical sales representatives on physician prescribing behavior. For each of the drugs in the

study, Jacobson and Natalie Mizik, assistant professor of marketing at Columbia University, assessed

the effects of changes in the numbers of sales calls and free samples on the number of new

prescriptions the physician issued.

Prescription drug spending by consumers is projected to remain the fastest

growing sector of health care costs. Such spending is expected to account for 14.5 percent of $3.1

trillion health care expenditures by 2012, compared to approximately 10 percent in 2001. Jacobson

added that pharmaceutical marketing aimed directly at consumers might be expected to have greater


http://WWW.IPFRONTLINE.COM/aboutsource.asp?editorid=484


impact

Acharya Rajesh, said that the three main points that are required to be considered in pharmaceuticals

cases are:

a. That prescription drugs are handled by experts and therefore there is less likelihood of confusion.

b. That as prescription drugs are available over the counter in India the test for confusion should be

the same as in other product categories.

c. The public health aspects – especially the ability of a consumer to be able to differentiate between

products in India, where there is no single common language, a large percentage of population is

illiterate, and a small fraction of people know English.

Most important is the fact that in the future the controller of The Drugs & Cosmetics will consider

requiring an applicant to submit an official search report from the Trade Marks Office. This change

should enable the drugs authority to arrive at a correct conclusion to reduce the confusion of

trademarks and pharmaceutical Industry.

Niles Steven, said that field forces have worn out their welcome in many doctors’ offices, but by

combining telesales call centers with e-detailing, marketers can maintain share of voice while

providing added value and convenience for physicians.

The demand on physicians’ time has increased considerably, with higher patient loads, administrative

responsibilities, and the sheer number of sales reps knocking on their doors. As a result, physicians

are cutting back on the number of reps they will see, particularly during traditional office hours. Many

hospitals and group practices now restrict or prohibit sales representative visits as well.Many big

pharmaceutical marketers are just beginning to realize how they should deal with physicians who bar

access to their reps, according to Joseph Seringer, president, Orion Marketing Group Inc.

(orionmkt.com).



Indian Pharmaceutical Industry: An Overview

The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent.”

Richard Gerster

Sector Outlook:

The Indian Pharmaceutical Industry today is in the front rank of India’s 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. Pharmaceutical

industry has given employment to approximately 2.86 million people and has around 20,053 units.

Globally, India is 4th in terms of volume (8% of world's production), 13th in terms of value, and 17th

in terms of pharmaceutical export value.

The Indian pharmaceutical industry, which is now meeting over 95% of the country's pharmaceutical

needs, was almost non-existent before 1970. With the compound annual growth of 19.8% the industry

has grown from Rs.4 billion in 1970 to Rs.290 billion in 2003. The Pharma sector has shown

tremendous growth over the years. About 250 Indian pharmaceutical companies hold 70% of the

market share with top players controlling about 7% of the market share.

On 1st January 2005, the Government of India issued patent ordinance according to which the Indian

Pharma companies can no longer produce patented drugs. The pharmaceutical industry in India meets

around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations,

chemicals, tablets, capsules, orals and injectibles. 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.


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

intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. 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.

Advantages in India:

1. Competent workforce: India has a pool of personnel with high managerial and technical

competence as also skilled workforce. It has an educated work force and English is commonly used.

Professional services are easily available.

2. 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.

3. Legal & Financial Framework: India has a 53 year old democracy and hence has a solid legal

framework and strong financial markets. There is already an established international industry and

business community.

4. Information & Technology: It has a good network of world-class educational institutions and

established strengths in Information Technology.

5. Globalisation: 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.

6. Consolidation: For the first time in many years, the international pharmaceutical industry is

finding great opportunities in India. The 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 20,000 registered pharmaceutical manufacturers exist in the country. The domestic pharmaceuticals industry output is expected to exceed Rs260 billion in the financial year 2002, which accounts for merely 1.3% of the global pharmaceutical sector. Of this, bulk drugs will account for Rs 54 bn (21%) and formulations, the remaining Rs 210 bn (79%). In financial year 2001, imports were Rs 20 bn while exports were Rs87 bn.

Table 1 Growth Indicator

Growth Indicators(Rs. crores)

1965-66 1999-00

Capital Investment 140 2,500

Production: Formulations Bulk Drugs

15018

15,9603,777

Import 8.20 3,441

Export 3.05 6,631

R&D Expenditure 3 320 (www. pharmaceutical -drug-manufacturers.com/ pharmaceutical -industry/ )

Indian Pharmaceuticals Market:

Following the de-licensing 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, with its rich scientific talents and research capabilities, supported by Intellectual Property


http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/

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

The growth of market share of Indian pharmaceutical companies in the domestic pharma sector over

the years is as follows:

Table 2 Market Share of Indian pharmaceutical companies

Year Indian Companies MNCs

1999 68% 32%

2000 70% 30%

2001 74% 26%

2002 72% 28%

2003 73% 27%

Graph 1.1 Growth of Indian Pharmaceutical

(www.naukrihub.com/india/ pharmaceutical /overview/ )


http://www.naukrihub.com/india/pharmaceutical/overview/

Major Players in Pharmaceutical Sector


1. Ranbaxy

The Indian pharmaceutical industry is the second-fastest growing industry sector in the country. It has shown a revenue growth of 27.32 per cent (as per the latest data available) to touch Rs 25,196.48 crore (Rs 251.96 billion) in 2006-07. The industry also saw Indian drug companies buying out many small firms the world over as they expand their reach, markets and muscle.

So when, Japanese drug firm Daiichi Sankyo on June 11 announced the acquisition of a majority stake of more than 50 per cent in domestic major Ranbaxy for over Rs 15,000 crore (Rs 150 billion), marking the largest ever deal in Indian pharma industry, it stunned the industry.

Ranbaxy is India's largest pharmaceutical company with a 2007 turnover of Rs 4,198.96 crore (Rs 41.989 billion) by sales. The deal will create the 15th biggest drugmaker globally.

Daiichi would also make an open offer for an additional 20 per cent stake in Ranbaxy at a price of Rs 737 per share. This deal values Ranbaxy at about $8.5 billion. Malvinder Singh will continue as CEO and MD of the Ranbaxy, post deal too.

2. Dr Reddy's Laboratories

Dr Reddy's Labs, with a 2007 turnover of Rs

4,162.25 crore (Rs 41.622 billion), is India's

second largest drug firm by sales.


3. Cipla

Pharma major Cipla is India's third largest

pharmaceutical firm. Its 2007 revenues stood at

Rs 3,763.72 crore (Rs 37.637 billion).

4. Sun Pharma Industries

The Dilip Sanghvi-led Sun Pharma is the

nation's 4th largest pharma company at a 2007

revenue Rs 2,463.59 crore (Rs 24.635 billion).

5. Lupin Labs

Lupin Labs is India's 5th largest drugs firm.

Its 2007 revenue was at Rs 2,215.52 crore

(Rs 22.155 billion).

6. Aurobindo Pharma

Aurobindo is India's 6th largest pharma firm by

sales. Its 2007 revenues stood at Rs 2,080.19

crore (Rs 20.801 billion).

7. GlaxoSmithKline Pharma

GSK is India's 7th largest drug company

with a turnover of Rs 1,773.41 crore (Rs

17.734 billion) for 2007.

(http://www.rediff.com/money/2008/jun/11sld05.htm)


8. Cadila Healthcare

Cadila's 2007 revenue was Rs 1,613.00 crore (Rs

16.13 billion), which makes it India's 8th largest

pharma firm.

9. Aventis Pharma

Aventis Pharma, with a 2007 revenue of Rs 983.80

crore (Rs 9.838 billion) is the 9th largest Indian

drug company.

10. Ipca Laboratories

At a revenue of Rs 980.44 crore (Rs 9.804 billion),

Ipca is India's 10th largest pharma firm by sales

Dr. Reddy’s Laboratories Ltd. - LIFE, RESERCH, HOPE

Profile of the Company:

DR. REDDY'S

Type PublicFounded 1984

Head office

Block-III, level V, White House,Kundanbagh, BegumpetHydrabad 50016, India.Tel # +91 40 5502 2500

Key peopleMr.Anji Reddy, Chairman

Mr. GV Prasad, CEOIndustry PharmaceuticalsRevenue $ 444 millions (2008)

Employees

9,300 + People world wide 1500 + Research & Scientific Staff 2500 + Marketing & Sales force 3500 + manufacturing Staff 35 Nationalities

Website www.drreddys.com

Foundation of Dr. Reddy’s Laboratories Ltd:

Dr. Anji Reddy


Dr. Reddy's Laboratories was founded in 1984 by Dr Anji

Reddy. Dr Reddy’s is a global, vertically integrated

pharmaceutical company with a presence across the value chain,

producing and delivering safe, innovative, and high quality

finished dosage forms, active pharmaceutical ingredients and

biological products Our products are marketed across the globe,

with an emphasis on North America, Europe, India, Russia and

other emerging markets.

http://www.drreddys.com/innovations/biologics.htm

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http://www.drreddys.com/index.htm

http://www.drreddys.com/

http://en.wikipedia.org/wiki/Website

http://en.wikipedia.org/wiki/Employment

http://en.wikipedia.org/wiki/Revenue

http://en.wikipedia.org/wiki/Pharmaceuticals

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/GV_Prasad

http://en.wikipedia.org/wiki/Anji_Reddy

http://en.wikipedia.org/wiki/Public_company

http://en.wikipedia.org/wiki/Category:Types_of_companies

Chairman

History:

Dr. Reddy’s Laboratories Ltd. founded in 1984 by Dr. K. Anji Reddy, has become India’s biggest

pharmaceutical company In 1986, Dr. Reddy's went public and entered international markets with

exports of Methyldopa. In 1987, Dr. Reddy's obtained its first USFDA approval for Ibuprofen API

and started its formulations operations. In 1988, Dr. Reddy's acquired Benzex Laboratories Pvt.

Limited to expand its Bulk Actives business. In 1990, Dr. Reddy's, entered a new territory when it, for

the first time in India, exported Norfloxacin and Ciprofloxacin to Europe and Far East. In 1993, Dr.

Reddy's Research Foundation was established and the company started its drug discovery programme.

In 1994, Dr. Reddy launched a GDR issue of US$ 48 million. In 1995, the company set up a joint

venture in Russia. In 1997, Dr. Reddy's became the first Indian pharmaceutical company to out-

license an original molecule when it licensed anti-diabetic molecule, DRF 2593 (Balaglitazone), to

Novo Nordisk. In 1998, Dr. Reddy's licensed anti-diabetic molecule, DRF 2725 (Ragaglitazar), to

Novo Nordisk. In 1999, the company acquired American Remedies Limited, a pharmaceutical

company based in India. In the year 2000, became the first Asia Pacific pharmaceutical company,

outside Japan, to be listed on the New York Stock Exchange. In 2001, Dr. Reddy's Laboratories

became India's third largest pharmaceutical company with the merger of Cheminor Drugs Limited, a

group company. In 2002, Dr. Reddy's made its first overseas acquisition - BMS Laboratories Limited

and Meridian Healthcare in UK. In 2003, Dr. Reddy's launched Ibuprofen, first generic product to be

marketed under the "Dr. Reddy's" label in the US. In 2006, Dr. Reddy's achieved revenue of US$ 1

Billion. In the same year, Dr. Reddy's acquired Betapharm- the fourth-largest generics company in

Germany. Today, Dr. Reddy's Laboratories is leading pharmaceutical company in India in terms of

turnover and profitability.

Specialties:

Not one to feel shy and proceed on a tough path, the company has embarked upon sponsorship of

research into drugs formulation to battle two of mankind’s deadliest diseases —Cancer and Diabetes.

It is the first Indian company in licensing a molecule for clinical trials to a Multi National Company.

It looks ahead confidently with its drug discovery programme poised at an ideal stage with three


http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Anji_Reddy

molecules at different stages of clinical trials plus several others waiting in the wings. The company is

currently ranked fifth in the domestic market in Branded Formulations. In addition to this, the

company has a notable presence in the overseas market in over 30 countries and aims to enter

emerging markets. Generic Formulations is expected to witness a significant rise in the near future

and a many products in well-regulated markets are set to go off-patent. The company is well

entrenched with its low cost products of good quality. The company with a little over two years entry

into Critical Care Business, is on its way to become the second largest company in India in oncology

segment. Bulk Archives are expected to record a good expansion in the coming years and has caught

the company eye. In this regard, it has hit upon the strategy of delivering custom specific value-added

services.

Another area which is motivating Dr Reddy’s Lab is Custom Chemical Synthesis —a business which

is driven by the twin power of trust and a close partnership with the customer. The company is fuelled

by the lure of becoming a service provider by choice to its customer.

It feels encouraged by the fact that it possesses over fifteen years of expertise in process research and

is aided by its pool of its highly skilled scientists, advanced analytical equipment, C CGMP

infrastructure and facilities to move up from milligrams to metric tons. Bio-Technology is the hot

technology of the day. In less than 3 years, the company, aided by its team of dynamic scientists, has

developed protein therapeutics ranging from molecular cloning and fermentation to process

development and production.

It has a large manufacturing unit, which confirms to international regulation standards and produces

top class diagnostic products.


Recent Achievements and Milestones

Recent Achievements:

Among the top 10 pharmaceutical companies in India.

5th largest Branded generic player in Germany.

Ranked 15 in the retail segment in Russia.

Among the largest API players globally.

Top 5 ANDA and DMF pipeline in USA.

Among the largest players in the custom pharmaceutical service segment.

4th on Environmental Social governance index in India.

Best employers 2007 in India.

The fastest Indian Pharma company to cross $1 billion in revenues.

Among top 10 global generic companies.

Dr. K Anji Reddy wins ‘The Lifetime Achievement Award’ at the Pharma Excellence Awards 2007.

Dr. Reddy’s also wins awards for Sustained growth, Shareholder protection & CSR (May 2007).

Business leader in the Pharmaceutical sector at the NDTV Profit Business Leadership Awards 2007 (July 2007)

Dr. Reddy’s CFO, Saumen Chakraborty conferred the Best Performing CFO in the Pharma Sector at the CNBC’sCFO awards (November 2007)

‘Best Corporate Social Responsibility Initiative’ at the BSE Business for Social Responsibility Awards 2007.(December 2007)

Golden Shield Award for Excellence in Financial Reporting by the Institute of Chartered Accountants of India(ICAI) (February 2008)

‘Top Indian company in the Pharmaceuticals sector’ at the Dun & Bradstreet American Express Corporate Awards 2007 (Feb 2008)

RASBIC 2007-08 awards for the third time in a row at the Asia Pacific HRM Congress (Feb 2008)


Amity Leadership Award for best HR practices in the Pharmaceutical Sector at the 4th HR Summit

Among the 25 Best Employers in India in the Hewitt Associates - Economic Times survey for 2007.

Among the 10 Best Companies to work for in India as per the Business Today- - Mercer study for 2007


Milestones:


Acquires BASF’s Pharmaceutical manufacturing contract business and related facility at Shreveport, Louisiana

Acquires Dowpharma’s small molecule business at its Mirfield and Cambridge facilities, UK.

Becomes No.1 pharmaceutical company in India in turnover and profitability.

Launches Reditux ™ (Rituximab) – the World’s first biosimilar of a monoclonal antibody

Blaglitazone (DRF 2593) enters Phase III of clinical trials becoming India’s most advanced

Revenues touch USD 1 Billion in December 2006. Dr. Reddy's obtains its second 180-day marketing exclusivity for a generic drug in

the US market with the launch of Ondenesetron Hydrochloride Tablets. Becomes an Authorized Generic Partner for Merck’s Proscar® & Zocor® in the US

market during 180 day exclusivity period.

Acquires betapharm- the fourth-largest generics company in Germany for a total enterprise value of € 480 million.

Acquires Roche's API Business at the state-of-the-art manufacturing site in Mexico with a total investment of USD 59 million.

Announces India's first major co-development and commercialization deal for it's molecule Balaglitazone (DRF 2593), with Rheoscience.

Announces a unique partnership for the commercialization of ANDAs withICICI Venture.

Acquires Trigenesis gives access to drug delivery technology platforms

Announces a 15-year exclusive product development and marketing agreement for OTC drugs with Leiner Health Products in the US

Launches Ibuprofen, first generic product to be marketed under the “Dr. Reddy’s” label in the US

Conducts its first overseas acquisition – BMS Laboratories Limited and Meridian


Healthcare in UK

Becomes the first Asia Pacific pharmaceutical company, outside Japan, to list on the New York Stock Exchange. Listed with the symbol ‘RDY’ on April 11, 2001.

Out-licenses DRF 4158 to Novartis for up to US $55 million upfront payment Launches its first generic product, Ranitidine, in the US market

Becomes the first Indian pharmaceutical company to obtain an 180-day exclusive marketing rights for a generic drug in the US market with the launch of Fluoxetine 40 mg capsules on August 3, 2001

Dr. Reddy's Laboratories becomes India's third largest pharmaceutical company with the merger of Cheminor Drugs Limited, a group company

Reddy US Therapeutics, a wholly-owned subsidiary, is established at Atlanta, US to conduct target based drug discovery

Acquisition of American Remedies Limited, a pharmaceutical company based in India.

Licenses anti-diabetic molecule, DRF 2725 (Ragaglitazar), to Novo Nordisk

Licenses anti-diabetic molecule, DRF 2593 (Balaglitazone), to Novo Nordisk. Becomes the first Indian pharmaceutical company to out-license an original


molecule.

First ANDA filed with the United States Food and Drug Administration for Ranitidine

Sets up of a Joint Venture in Russia.

Makes a GDR issue of USD 48 million

Foundation stone laid for a finished dosages facility to cater to the highly regulated markets such as the US.

Dr. Reddy's Research Foundation established. The company's drug discovery programme starts.

First formulation exports to Russia commence

Dr. Reddy’s, for the first time in India, exports Norfloxacin and Ciprofloxacin to Europe and Far East.


Acquires Benzex Laboratories Pvt. Limited to expand its Bulk Actives business.

Obtains its first USFDA approval for Ibuprofen API

Starts its formulations operations

Dr. Reddy’s goes public Dr. Reddy’s listed on Bombay Stock Exchange (BSE)

Dr. Reddy’s enters international markets with exports of Methyldopa

Dr Anji Reddy establishes Dr. Reddy's Laboratories with an initial capital outlay of Rs.25 lakhs


http://www.drreddys.com/coverview/popups/keymilestones_list.html#%23

Product range of Dr. Reddy’s Laboratories Ltd.

Dr Reddy’s is a global, vertically integrated pharmaceutical company with a presence across

the value chain, producing and delivering safe, innovative, and high quality finished dosage

forms, active pharmaceutical ingredients and biological products.


Active P’ceutical Ingredients (API)

Custom P’ceutical Services

Generic Formulations

Branded Formulation

s

Specialty P’ceuticals

Bio P’ceuticals

Discovery Research



http://www.drreddys.com/index.htm




http://www.drreddys.com/gchemicals/services.htm



http://www.drreddys.com/ggenerics/ggenerics.htm

http://www.drreddys.com/ggenerics/ggenerics.htm

http://www.drreddys.com/innovations/specialty_pharma.htm

http://www.drreddys.com/innovations/specialty_pharma.htm



http://www.drreddys.com/innovations/innovations.htm

http://www.drreddys.com/innovations/innovations.htm

Talking about the branded finished dosages, here is the diagrammatic representation of the

therapy wise distribution of branded finished dosages form:

Figure 1.2 Therapy wise distribution of Company’s products


Statistical Profile of the Dr. Reddy’s Laboratories Ltd.

Revenues from four key markets - US, Germany, India and Russia at Rs. 28.42 billion.

Three markets (US, Germany and India) of over $200 million and one market (Russia) of over $100 million in revenues.


Active Pharmaceutical Ingredients (APIs)

Revenues at Rs 11,805 million in FY08 as against Rs 11,883 million in FY07.

Revenues in FY07 included the benefit of upsides in sertraline & rabeprazole.

Revenues in North America increase by 88% to Rs. 3.8 billion in FY08 from Rs. 2

billion in FY07 primarily led bysales of certain development products &

commercialized products.

Revenues in Europe at Rs. 2.5 billion in FY08 as against Rs. 2.1 billion in FY07. YOY

growth of 19% led by increase in sales of certain development products &

commercialized products.

Revenue mix by Geography: North America – 32%, India – 20%, Europe – 21%,

ROW – 26%.

Custom Pharmaceutical Services (CPS)

Revenues from CPS business at Rs. 4.8 billion in FY08 as against Rs. 6.6 billion in


FY07.

Revenues from organic business increase from Rs. 1.2 billion in FY07 to Rs. 1.9

billion in FY08, driven by growthin customer base and product portfolio.

Revenues from Mexico at Rs. 3 billion in FY08 as against Rs. 5.4 billion in FY07.

Global Generics

Total revenues at Rs 33.02 billion in FY08 as against Rs. 46.36 billion in FY07

(included benefit of upsides from authorized generics and ondansetron exclusivity in

FY07 of Rs. 18.1 billion).

North America & Europe revenues at Rs 17.8 billion in FY08 as against Rs. 33.2

billion in FY07.

North America revenues at Rs. 8 billion ($201 million) in FY08.

Europe revenues at Rs. 9.7 billion in FY08 as against Rs. 9.6 billion in FY07.

Rest of the World revenues at Rs.15.2 billion in FY08.

Revenues from betapharm (Germany) at Rs. 8.2 billion ($ 205 million) in FY08 as

against Rs.

8 billion in FY07.

Improvement in the supply situation in Q4 FY08 and new product launches results in

increase in market share of betapharm to 2.96% in Mar 08 as against 1.74% in Apr 07.

(Source: Market Report NVI volume, March 2008).

Revenues in Russia increase by 13% to Rs. 4.1 billion ($ 102 million) in FY 08 as

against Rs 3.6 billion in FY07.

Growth driven by increase in sales from key brands like Keterol, Bion & Omez and

new product launches.

Revenues in India increase by 16% to Rs 8.1 billion ($201 million) in FY08 from Rs 7

billion in FY07. Growth driven by key brands like Omez, Razo & Stamlo Beta.


Current Financial status of Dr. Reddy’s Laboratories Ltd


Future prospects of the Dr. Reddy’s Laboratories Ltd.

The company is not content with sitting on the laurels earned so far. It looks ahead and does so

with confidence and immense belief in itself. Its main goal is to join the ranks of the global

pharmaceutical giants. And hopes to do the same with a slew of measures such as focus on

talent development and cultivation, application of IT, improvements in operations through

initiatives in supply chain plus knowledge management.

Dr. Reddy's Laboratories (DRL) is all set to invest nearly Rs. 4.5 billion ($100 million)

as part of their expansion drive in Andhra Pradesh, the company's home state. The

company's expansion will take place in their current establishments at Hyderabad and

Visakhapatnam. Besides, they are also looking at setting up two new plants in Andhra

Pradesh as part their ‘Special Economic Zone plan.'

Leveraging the Betapharm advantage: Having acquired Betapharm, one of the fastest

growing generic companies, in Germany over the past five years. Dr. Reddy’s aim at

leveraging this strategic investment to evolve into a mid-sized global pharmaceutical

company and command a significant presence in all the major pharmaceutical markets.

It hopes to work in synergy with Betapharm so that the two companies augment their

market share in the German generics market. Through this acquisition Dr. Reddy aims

to increase its revenue substantially & improve its operating margins. The company

has planned to grow into a billion-dollar pharmaceutical company by 2008.

Dr. Reddy's Laboratories (DRL) is all set to invest nearly Rs. 4.5 billion ($100 million)

as part of their expansion drive in Andhra Pradesh, the company's home state. The

company's expansion will take place in their current establishments at Hyderabad and

Visakhapatnam. Besides, they are also looking at setting up two new plants in Andhra

Pradesh as part their ‘Special Economic Zone plan,'

Committing significant investments in infrastructure scale-up to address growth


opportunities; FY08 capex of $140 million

Phase I expansion of capacities for US/Europe market complete

New R&D center for API and Generics R&D commissioned

Future investments include biologics global manufacturing infrastructure,

additional capacities for Global Generics

Strategic acquisitions add new capabilities

US plant: Support scale-up of the North America Generics business; provides

platform

for additional growth opportunities

UK sites: New R&D capabilities in chemical/bio catalysis will he strengthen

the

portfolio of services in the CPS business


Objectives of the Study

The objective of the project is to-

Check the Sales Potential of Pain management & Desensitizer toothpaste in the market

with a view to find out:

Which pain killer salt is sold most in the market;

Approx quantity of pain killers being sold most frequently by retailers,

Which company & brand of pain killers is leading the market.

To study the influence of various aspects on the sale of analgesics & Desensitizer toothpastes. These factors are:-

Quality/Effectiveness of these products,

Price fluctuation,

Available in the market,

Wide publicity, &

Recommendation by medical officers


Research Methodology

Research methodology in a way is a written game plan for conducting research. Therefore,

in an attempt to attain the information and details to meet the research purpose and to solve

a research problem, it is necessary to design a research methodology for the problem. This

part of the report focuses on the various techniques, methods and assumptions used in this

study. It sheds light on the:

Research Problem Statement,

Research Design,

Sampling Design,

Collection of Data,

Statistical & Analytical Tools, and

It’s Limitations.

Research problem statement:

The pharmaceutical industry in India today is too fragmented to be competitive. Over 6000

companies exist and the top 10 companies hold less than 30% market share, compared to US,

where the market share of the top 10 companies is more than 45%. Excessive competition

among pharmaceutical companies is resulting in a potential “Downward Spiral” syndrome

where such competition has resulted in paper thin margins, starving the companies of much

needed cash to fund process improvements or drug development.

In order to sustain current levels of growth, firms would need to introduce one new product

each year that would sell $4.9 million for each 1 to 1.5 per cent it has of the world

pharmaceutical market. As we know that there are two modes of pharmaceutical marketing:

direct and indirect marketing to health care providers, direct marketing to patients.

There are many factors which may affect the sales of medicines like Quality/Effectiveness of


the medicament, Price fluctuation, Availability in the market, Wide publicity, &

Recommendation by medical officers. The prime objective of my study is to analyze the effect

of various factors on sales of the medicines and to check the sales potential of Desensitizer

toothpaste & Pain management in the market.

Research Design:

The study conducted was an Exploratory or Formulative study, observing the Sales Potential

of Pain management & Desensitizer toothpaste in the market of Jallandhar & Pathankot. As

we know that the exploratory studies are conducted to gain familiarity with the phenomenon

or to achieve new insight into it.

Sampling Design:

To check the sales potential of Pain management & desensitizer toothpaste and to analyze the

effect of various factors on the sale of the above mentioned products, Sample Survey Method

was employed. As per the specifications of this method, out of more than 900 chemists in

Jalandhar & 50 in Pathankot, only 170 & 30 were selected from both of the cities respectively,

for the survey. Sample survey method was given prime significance in the study because of its

extensive use to study the relationship of different factors, attitudes and practices of society.

Talking about the type of sampling Design, Cluster Random Sampling Method was

considered for the collection of data. On the basis of geography, the population i.e. retailer

pharmacists were divided into two clusters, in Pathankot and in Jalandhar. And then out of

these two clusters 30 retailers were selected randomly from Pathankot and 170 were selected

randomly from Jalandhar.

Area of study

The area of the study is different Markets of Pathankot & Jalandhar in order to collect the

Primary data from the respondents.

Study area : Pathankot & Jalandhar.

Sample size

It becomes impossible to contact each and every individual of the population due to limitations


of essential resources like time and money. Therefore, the study is preferably allowed down to

a representation sample to make the study more manageable. And the number of people to be

surveyed for the study is known as, sample size. Though large samples give more reliable

results than small samples but due to constraints of time and money & Keeping in the view the

objectives and resource limitation of the study, 200 respondents were considered. The

respondents were selected on out of the maximum numbers of retailers pharmacists asked to

co-operate, 200 were accepted and met the criterion of being retail pharmacists & Indian

national

Respondents : 200 (Retailer Pharmacists)

The selected sample is supposed to be the representative of the population and is

accurate and practicable.

Collection of Data:

After the research problem has been defined and the research & sampling design has been

chalked out, the task of data collection begins. So the data for this study was collected mainly

through primary sources, but it was supplemented with secondary sources as well.

Primary Data Collection

For the collection of data, a self-administered survey was conducted in two cities of

Punjab, Pathankot &, Jallandhar. Surveys have been regarded as a valuable method for

collecting data in India, because the lack of up-to-date telephone directories makes mail and

telephone survey methods

unattractive. The data was collected in thirty consecutive days at different locations in the

cities mentioned above. The respondents were provided with a structured schedule, which was

to be filled in

the presence of an interviewer i.e. in my presence, with language translation undertaken where

required. It took approximately 15 minutes. The questionnaire framed for the purpose of the

study consists of a limited number of questions placed in logical order. So, that the objective

of the question is clear to the respondents. All the questions were centered on the problem

keeping in the mind. The questions were both open and close ended as well as multiple


choices.

Secondary Data Collection

Secondary data for the study was collected through-

Magazines

Journals

Websites

Limitations of the Study:

There were some possible limitations, which hinders the research findings. They are as

follows:

1) Inadequate and limited survey sample done by the respondents is nothing compares to

the whole population of retailers through out Punjab, which might cause inaccuracy for

the final findings and conclusions.

2) The Area undertaken in research was Pathankot & Jalandhar only. But to do a

complete research a wide area is required, so the area might also be a constraint of the

study.

3) Retailer pharmacists from Jalandhar & Pathankot, which were interviewed, were

reluctant to disclose some of facts and information, due to the confidentiality and the

rules of companies.

4) While collecting data some of the respondents might not be willing to fill the

questionnaire due to their busy schedule, so they might not fill their true behavior. This

could also be a constraint of the study.


DATA ANALYSIS AND INTERPRETATION

As we have already mentioned that, we have taken 200 as our sample size. Out of which, 170 respondents from Jallandhar & 30 from Pathankot. Here is the graphical representation of the division of respondents from two cities mentioned above.


Pathankot, 30

Jallandhar, 170

Pathankot

Jallandhar

Figure 1.3 Area wise distributions of respondents

Now to interpret the exact market situation of both the cities mentioned above i.e. Jallandhar & Pathankot, we will analyze the questioners filled in both the cities separately one by one.

Note: In case of pain management, only tablet form of analgesics are taken for the sake of data collection.

I. Jallandhar.

QUESTIONARRE

1. Type of the business deal in: -( ) Retail ( ) Wholesale( ) Both


Objective of the question: The objective of this question was to know the type of business in

which the respondent deals, because according to the demand of the survey, the respondent

must be dealing either with retail pharmacy or retail + wholesale both only. Their responses

are shown in the following graph along with the table.

retailer, 120

wholesaler+retailer, 50

retailer

wholesaler+retailer

Figure 1.4 Business wise distributions of respondents

Interpretation: - As per shown in the Pie diagram, Out of 170 respondents from Jallandhar, the maximum respondents were retailers only i.e. 120 & rest of 50 were dealing with retail + wholesale business both. .

2. Type of the medicine deal in: - {please tick mark appropriate option/options}

( ) Allopathic ( ) Ayurvedic( ) Homeopathic ( ) Dental Products

( ) Others (please specify) ________________________________

Objective: - To know the type of medicines in which the respondent deals. It was some sort of screening question in which we tried to screen out those respondents who were dealing with the business of homeopathic medicines also.


Allopathic, 170

Ayurvedic, 170

Homopathic, 0

Dental products,

170 Allopathic

Ayurvedic

Homopathic

Dental products

Figure 1.5 Therapy wise distributions of respondents

Interpretation: - All the 170 respondents deal with the all the three types of medicine that is Allopathic, Ayurvedic and Dental products .No one deal with the homeopathic medicines.

3. Market ranking of most frequently sold pain killer salts: -

Diclofenac Sodium

Nimesulide Ibuprofen Tramadol Indomethacin

Objective: - This question was asked with the objective to know which pain killer salt is most frequently sold in the market.

Diclofenac Sodium, 26.00%

Nimesulide, 28.20%

Ibuprofen, 18.27%

Tramadol, 15.91%

Indomethacin, 11.56%

Diclofenac Sodium

Nimesulide

Ibuprofen

Tramadol

Indomethacin

Figure 1.6 Market share of various pain killer salts in the market


Interpretation: - According to the survey done in the market of Jallandhar, it was found that Nimesulide is leading in the market with highest market share of 28.2%, followed by Diclofenac Sodium with a market share of 26.0%, then comes Ibuprofen with 18.27%, then Tramadol with 15.91% and in last comes Indomethacin with least market share i.e. 11.56%

4. Acc. to you, which company is the largest seller of analgesics in the market: -

Objective: - This question was asked with the objective to know which company leads in the market in terms of sales of analgesics and which brand of that particular company(s) is being sold most frequently.

Aventis, 23.61%

Wings Pharma, 25.14%

Boots Pharma, 15.40%

Cipla, 17.48%

Panacea Biotech, 18.38%

Aventis

Wings Pharma

Boots Pharma

Cipla

Panacea Biotech

Figure 1.7 Market leaders for analgesics

Interpretation: -Above chart shows that in Jallandhar Wings pharma leads the market, with their brand Diclowin Plus, having market sale of 25.14% followed by Aventis with 23.61% whose most frequently sold brand is Combiflame, then comes Panacea Biotech with 18.38%, brand name is Nimulid, then Cipla with 17.48%, brand name Nicep & Ibugesic plus and in last Boots Pharma with least market sale i.e. 15.40% & its most frequently sold band is Brufen.


Name of the Company Ranking Name of the Brand most frequently sold

Aventis

Wings Pharma

Boots PharmaCipla

Panacea Biotech

http://en.wikipedia.org/wiki/Cipla

5. Quantity sale chart: - (Approximate monthly sale, in terms of units sold)

Diclofenac Sodium

Nimesulide Ibuprofen Tramadol Indomethacin Other(if any)

Objective: The objective of asking this question was to know the approximate average monthly sale of the above mentioned analgesics salts.

Ibuprofen, 188.17

Tramadol, 181.72

Indomethacin, 35.75

Diclofenac Sodium, 343.05

Nimesulide, 323.5

0

50

100

150

200

250

300

350

400

Diclof

enac

Sodium

Nimes

ulide

Ibup

rofe

n

Tram

adol

Indo

met

hacin

Ap

roxx

. qty

so

ld m

on

thly

(in

th

ou

san

d)

Figure 1.8 Quantity sale graph for analgesics

Interpretation: - As it is clear from the graph that if we talk about the approximate monthly sale of these particular salts, Diclofenac Sodium has maximum sale in the market of Jallandhar i.e. 343 X 1000 tablets per month (of all brands available in the market), followed by Nimesulide with 323.5 X 1000 tablets per month, then comes Ibuprofen with 188.17 X 1000 tablets, then Tramadol with 181.72 X1000 tablets per month & last comes Indomethacin with 35.75X 1000 tablets per month.

6. Market ranking of most frequently sold salts used in desensitizer toothpaste : _


Sodium Fluoride

Strontium chloride

Potassium Nitrate

Novamin Xylitol

Other(please specify) ___________________________________

Objective: This question was asked with the objective to know which salt (used in desensitizer toothpaste) is most frequently sold in the market.

Strontium chloride , 33.30%

Potassium Nitrate, 66.70%

Potassium Nitrate

Strontium chloride

Figure 1.9 Market Share of Various salts used in Desensitizer Toothpaste

Interpretation: - According to the survey done in the market of Jallandhar, it was found that Potassium Nitrate is leading in the market with highest market share of 66.70%, followed by Strontium Chloride with a market share of 33.30%. During in the survey it was found, that these two salts have some sort of monopoly in the market, i.e. there is no sale of any another salt mentioned in the question, in the market.

7. Which company, is the largest seller of desensitizer toothpaste in the market :-

Objective: - This question was asked with the objective to know which company leads the market in terms of sales of desensitizer toothpaste and which brand of that company(s) is being sold most frequently.



Indoco Healthcare

Leaders Healthcare

ICPA Health Products

Other (please specify)

Dr.Reddy's Labs, 27.27%

ICPA Health products, 18.18%

Indoco Healthcare ,

54.50%

Indoco Healthcare

ICPA Health products

Dr.Reddy's Labs

Figure 2.0 Market leaders for Desensitizer Toothpaste in the market

Interpretation: - Above chart shows that Indoco health care (Warren) leads the market with their brand Sensodent-K Having a market share of 54.50%, followed by Dr.Reddy’s Labs with 18.18% share & brand name Stolin & Sanquil. And then comes ICPA Health products with 27.27% market share, brand name Thermoseal.


Sodium Fluoride

Strontium chloride

Potassium Nitrate

Novamin Xylitol Other(if any)

Objective: The objective of asking this question was to know the approximate average monthly sale of the above mentioned salts used in desensitizer toothpaste.


25.5

51

0

10

20

30

40

50

60

No. of respondent

s

Strontiumchloride

PotassiumNitrate

Series1

Figure 2.1 Quantity sale graph for salts used in Desensitizer Toothpaste

Interpretation: - As it is clear from the graph that if we talk about the approximate monthly sale of these particular salts, Potassium Nitrate has maximum sale in the market of Jallandhar i.e. 51 X 100 tubes per month (of all brands available in the market), followed by Strontium Chloride with 25.5 X 100 tubes per month.

9. Mode of selling: -

Name of the product

As per the choice of consumer

Medical Shoppe recommendation

Prescribed by doctor

No comment

AnalgesicToothpaste

:Objective: - The objective of this question was to find out the maximum possibility by which the maximum sale of analgesic & Desensitizer toothpaste is done by the chemists.

69

14

75

32 26

124

0

20

40

60

80

100

120

140

No. of respondents

OTC Chemistrecommendation

Prescription

Analgesic

Toothpaste


Figure 2.2 Mode of Selling for analgesics & Desensitizer Toothpaste in the market

Interpretation: - The graph made above shows that in view of total 170 respondents, Analgesic mostly sold by chemist recommendation (75) and least by Doctor’s prescription. On the other hand Desensitizer toothpaste is mostly sold by Doctor’s prescription (124) and least by consumer’s choice i.e. as an OTC (14).

10. How much do you agree with the following facts: -

Objective: - The motive of asking this question was to take the views of the respondents that how much they agree or disagree with the above the statements mentioned below.

Quality/Effectiveness of products mentioned below has a direct impact on the sale

of the products-

Strongly disagree Disagree Indifferent Agree Strongly agreeAnalgesicToothpaste

70

54

91

42

3

02

0

28

66

56

0 20 40 60 80 100

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree

Analgesic Toothpaste

Figure 2.3 (a) Respondents views for Quality of products

Interpretation: - Out of 170 respondents from Jallandhar, for analgesics,124 were in either disagreed or strongly disagreed with the fact that, quality of medicines has an impact on sale of the medicines. Whereas 37 were either agreed or strongly agreed with this fact. Rests 9 of them were indifferent. On the other hand for desesensitizer toothpaste20 were in either disagreed or strongly disagreed with the fact that, quality of medicines has an impact on sale of the medicines. Whereas 122 were either agreed or strongly agreed with this fact.

Increase in Price may decrease the sale of these products-



44

85

42

31

4

18

58

0

61

33

0 50 100 150 200

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree


Figure 2.3 (b) for Price variation of products

Interpretation: - Out of 170 respondents from Jallandhar, for analgesics, 129 were in either disagreed or strongly disagreed with the fact that, price fluctuation has any impact on sale of the medicines. Whereas 37 were either agreed or strongly agreed with this fact. Rests 4 of them were indifferentOn the other hand for desesensitizer toothpaste76 were either disagreed or strongly disagreed with the fact that, quality of medicines has an impact on sale of the medicines. Whereas 94 were either agreed or strongly agreed with this fact.

If not available in the market, Customer can wait for the following products –



35

60

27

38

10

15

38

4

70

43

0 20 40 60 80 100 120

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree


Figure 2.3 (c) For Availability of product in the market

Interpretation: - Out of 170 respondents from Jallandhar, for analgesics, 95 were in either disagreed or strongly disagreed with the fact that, availability of medicines in the market has an impact on sale of the medicines i.e. customer can wait for a particular medicine for some time, if it is not available in the market at that time Whereas 48 were either agreed or strongly agreed with this fact. Rests 27 of them were indifferent. On the other hand for desesensitizer toothpaste 53 were in either disagreed or strongly disagreed with the fact that, availability of medicines in the market has an impact on sale of the medicines. Whereas 113 were either agreed or strongly agreed with this fact. Rests 4 of them were indifferent.

Wide publicity has an impact on the sale of the products mentioned below-



16

45

51

9

85

39

66

5

17

43

0 50 100 150

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree


Figure 2.3 (d) For Wide Publicity of products

Interpretation: - Out of 170 respondents from Jallandhar, for analgesics,61 were in either disagreed or strongly disagreed with the fact that, Wide publicity has an impact on sale of the medicines. Whereas 104 were either agreed or strongly agreed with this fact. Rests 5 of them were indifferent. On the other hand for desesensitizer toothpaste 105 were in either disagreed or strongly disagreed with the fact that, quality of medicines has an impact on sale of the medicines. Whereas 60 were either agreed or strongly agreed with this fact. Rests 5 of them were indifferent.

Recommendation by medical officers has an impact on the sale of products

mentioned below-


25

28

05

11

2

55

52

5

13

0

0 50 100 150 200 250 300

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree



Figure 2.3 (e) For Recommendations by Medical officers

Interpretation: - Out of 170 respondents from Jallandhar, for analgesics, 53 were in either disagreed or strongly disagreed with the fact that, Recommendation by medical officers has an impact on sale of the medicines. Whereas 117 were either agreed or strongly agreed with this fact. On the other hand for desesensitizer toothpaste 10 were in either disagreed or strongly disagreed with the fact that, Recommendation by medical officers has an impact on sale of the medicines. Whereas 155 were either agreed or strongly agreed with this fact. Rests 5 of them were indifferent.


II. Pathankot.

QUESTIONARRE

1. Type of the business deal in: -( ) Retail ( ) Wholesale( ) Both

Objective of the question: The objective of this question was to know the type of business in

which the respondent deals, because according to the demand of the survey, the respondent

must be dealing either with retail pharmacy or retail + wholesale both only. Their responses

are shown in the following graph along with the table.

retailer, 22

wholesaler+retailer, 8

retailer

wholesaler+retailer

Figure 2.4 Business wise distributions of respondents

Interpretation: - As per shown in the Pie diagram, Out of 30 respondents from Pathankot , the maximum respondents were retailers only i.e. 22 & rest of 8 were dealing with retail + wholesale business both. .


( ) Allopathic ( ) Ayurvedic( ) Homeopathic ( ) Dental Products


( ) Others (please specify) ________________________________

Objective: - To know the type of medicines in which the respondent deals. It was some sort of screening question in which we tried to screen out those respondents who were dealing with the business of homeopathic medicines also.

Allopathic, 30

Ayurvedic, 30

Homopathic, 0

Dental products, 30 Allopathic

Ayurvedic

Homopathic

Dental products

Figure 2.5 Therapy wise distributions of respondents

Interpretation: - All the 30 respondents deal with the all the three types of medicine that is Allopathic, Ayurvedic and Dental products .No one deal with the homeopathic medicines.


Diclofenac Sodium


Objective: - This question was asked with the objective to know which pain killer salt is most frequently sold in the market.

Tramadol, 13.00%

Nimesulide, 33.50%

Diclofenac Sodium, 27.00%

Ibuprofen, 16.56%

Indomethacin, 9.84%

Diclofenac Sodium

Nimesulide

Ibuprofen

Tramadol

Indomethacin

Figure 2.6 Market share of various pain killer salts in the market

Interpretation: - According to the survey done in the market of Pathankot, it was found that Nimesulide is leading in the market with highest market share of 33.50%, followed by


Diclofenac Sodium with a market share of 27.0%, then comes Ibuprofen with 16.56%, then Tramadol with 13.00% and in last comes Indomethacin with least market share i.e. 9.84%


Objective: - This question was asked with the objective to know which company leads in the market in terms of sales of analgesics and which brand of that particular company(s) is being sold most frequently.

Aventis, 24.59%

Wings Pharma, 16.70%

Boots Pharma, 14.32% Cipla, 14.80%

Panacea Biotech, 29.51%

Aventis

Wings Pharma

Boots Pharma

Cipla

Panacea Biotech

Figure 2.7 Market leaders for analgesics

Interpretation: -Above chart shows that in Pathankot Panacea Biotech leads the market, with their brand Nimulid, having market sale of 29.51% followed by Aventis with 24.591% whose most frequently sold brand is Combiflame, then comes Wings pharma with 16.76%, brand name is Diclowin Plus, then Cipla with 14.8%, brand name Nicep & Ibugesic plus and in last Boots Pharma with least market sale i.e. 14.32% & its most frequently sold band is Brufen.




Aventis

Wings Pharma

Boots PharmaCipla

Panacea Biotech


Diclofenac Sodium


Objective: The objective of asking this question was to know the approximate average monthly sale of the above mentioned analgesics salts.

Ibuprofen, 27.4

Tramadol, 25.3

Indomethacin, 5.9

Diclofenac Sodium, 74.7

Nimesulide, 70.8

0

10

20

30

40

50

60

70

80

Ap

roxx. q

ty s

old

mo

nth

ly (

in t

ho

usan

d)

Figure 2.8 Quantity sale graph for analgesics

Interpretation: - As it is clear from the graph that if we talk about the approximate monthly sale of these particular salts, Diclofenac Sodium has maximum sale in the market of Pathankot i.e. 74.7 X 1000 tablets per month (of all brands available in the market), followed by Nimesulide with 70.8 X 1000 tablets per month, then comes Ibuprofen with 27.4 X 1000 tablets, then Tramadol with 25.3 X1000 tablets per month & last comes Indomethacin with 5.9 X 1000 tablets per month.



Sodium Fluoride

Strontium chloride

Potassium Nitrate

Novamin Xylitol


Objective: This question was asked with the objective to know which salt (used in desensitizer toothpaste) is most frequently sold in the market.

Strontium chloride , 33.30%

Potassium Nitrate, 66.70%

Potassium Nitrate

Strontium chloride

Figure 2.9 Market Share of Various salts used in Desensitizer Toothpaste

Interpretation: - According to the survey done in the market of Pathankot , it was found that Potassium Nitrate is leading in the market with highest market share of 66.70%, followed by Strontium Chloride with a market share of 33.30%. During in the survey it was found, that these two salts have some sort of monopoly in the market, i.e. there is no sale of any another salt mentioned in the question, in the market.


Objective: - This question was asked with the objective to know which company leads the market in terms of sales of desensitizer toothpaste and which brand of that company(s) is being sold most frequently.



Indoco Healthcare

Leaders Healthcare



Dr.Reddy's Labs, 54.50% ICPA Health

products, 27.27%

Indoco Healthcare ,

18.18%Indoco Healthcare

ICPA Health products

Dr.Reddy's Labs

Figure 3.0 Market leaders for Desensitizer Toothpaste in the market

Interpretation: - Above chart shows that in Pathankot Dr.Reddy’s Labs leads the market with 54.50% share with their brand Stolin & Sanquil, then comes ICPA Health products with 27.27% market share, brand name Thermoseal.And in last it comes Indoco Healthcare with their brand Sensodent-K having a market share of 18.18%,


Sodium Fluoride

Strontium chloride

Potassium Nitrate


Objective: The objective of asking this question was to know the approximate average monthly sale of the above mentioned salts used in desensitizer toothpaste.

7.5

12

0

2

4

6

8

10

12

No. of respondent

s

Strontiumchloride

PotassiumNitrate

Series1


Figure 3.1 Quantity sale graph for salts used in Desensitizer Toothpaste

Interpretation: - As it is clear from the graph that if we talk about the approximate monthly sale of these particular salts, Potassium Nitrate has maximum sale in the market of Pathankot i.e. 12 X 100 tubes per month (of all brands available in the market), followed by Strontium Chloride with 7.5 X 100 tubes per month.


Name of the product




No comment

AnalgesicToothpaste

:Objective: - The objective of this question was to find out the maximum possibility by which the maximum sale of analgesic & Desensitizer toothpaste is done by the chemists.

5 5

16

5

9

20

02468

101214161820

No. of respondents

OTC Chemistrecommendation

Prescription

Analgesic

Toothpaste

Figure 3.2 Mode of Selling for analgesics & Desensitizer Toothpaste in the market

Interpretation: - The graph made above shows that in view of total 30respondents, Analgesic mostly sold by chemist recommendation (46) and least as OTC(5). On the other hand

Desensitizer toothpaste are mostly sold by Doctor’s prescription (20) and least by consumer’s choice i.e. as an OTC (5).


Objective: - The motive of asking this question was to take the views of the respondents that how much they agree or disagree with the above the statements mentioned below.


of the products-



11

9

23

5

04

6

10

10

0 5 10 15 20

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree


Figure 3.3 (a) Respondents views for Quality of products

Interpretation: - Out of 30 respondents from Pathankot , for analgesics, 20 were in either disagreed or strongly disagreed with the fact that, quality of medicines has an impact on sale of the medicines. Whereas 8 were either agreed or strongly agreed with this fact. Rests 2 of them were indifferent. On the other hand for desesensitizer toothpaste 4 were in either disagreed or strongly disagreed with the fact that, quality of medicines has an impact on sale of the medicines. Whereas 20 were either agreed or strongly agreed with this fact. Rests 6 of them were indifferent




6

15

1

53

2

13

0

12

3

0 5 10 15 20 25 30

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree


Figure 3.3 (b) for Price variation of products

Interpretation: - Out of 30 respondents from Pathankot , for analgesics, 21 were in either disagreed or strongly disagreed with the fact that, price fluctuation has any impact on sale of the medicines. Whereas 8 were either agreed or strongly agreed with this fact. Rests 1 of them were indifferentOn the other hand for desesensitizer toothpaste15 were either disagreed or strongly disagreed with the fact that, quality of medicines has an impact on sale of the medicines. Whereas 15 were either agreed or strongly agreed with this fact.




3

11

68

2

3

4

1

13

9

0 5 10 15 20 25

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree


Figure 3.3 (c) For Availability of product in the market

Interpretation: - Out of 30 respondents from Pathankot, for analgesics, 14 were in either disagreed or strongly disagreed with the fact that, availability of medicines in the market has an impact on sale of the medicines i.e. customer can wait for a particular medicine for some time, if it is not available in the market at that time Whereas 10 were either agreed or strongly agreed with this fact. Rests 11 of them were indifferent. On the other hand for desesensitizer toothpaste 7 were in either disagreed or strongly disagreed with the fact that, availability of medicines in the market has an impact on sale of the medicines. Whereas 22 were either agreed or strongly agreed with this fact. Rests 1 of them were indifferent.



2

9

1

4

14

6

12

1

2

9

0 5 10 15 20 25

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree


Figure 3.3 (d) For Wide Publicity of products

Interpretation: - Out of 30 respondents from Jallandhar, for analgesics, 11 were in either disagreed or strongly disagreed with the fact that, Wide publicity has an impact on sale of the


medicines. Whereas 18 were either agreed or strongly agreed with this fact. Rests 1 of them were indifferent. On the other hand for desesensitizer toothpaste 18 were in either disagreed or strongly disagreed with the fact that, quality of medicines has an impact on sale of the medicines. Whereas 11 were either agreed or strongly agreed with this fact. Rests 1 of them were indifferent.


mentioned below-


55

01

19

11

44

23

0 10 20 30 40 50

Strongly Disagree

Disagree

Indifferent

Agree

Strongly agree


Figure 3.3 (e) For Recommendations by Medical officers

Interpretation: - Out of 30 respondents from Pathankot , for analgesics, 10 were in either disagreed or strongly disagreed with the fact that, Recommendation by medical officers has an impact on sale of the medicines. Whereas 20 were either agreed or strongly agreed with this fact. On the other hand for desesensitizer toothpaste 2 were in either disagreed or strongly disagreed with the fact that, Recommendation by medical officers has an impact on sale of the medicines. Whereas 27 were either agreed or strongly agreed with this fact.

Findings & Recommendations

Sr. No.

Findings Recommendations

1.After doing the survey in Jallandhar & Pathankot, it was found that after Nimesulide, Diclofenac Sodium holds the second position in the market and giving a

Dr. Reddy’s Labs don’t have any pain killer tablet preparation in market with Diclofenac Sodium as its main ingredient, so they should also launch such preparation to increase their market share in pain management

There is one more new pain killer


cut throat competition to Nimesulide. salt in the market, which is doing very well, Aceclofenac. Company should also think over to launch any preparation with Aceclofenac as active ingredient in combination with Paracetamol

2.

Recently for pain management, Wings pharma (Diclowin plus) has emerged in the market like any thing. Talking about pain management, at this time, it is holding maximum share in the market followed by Aventis (Combiflame). The reason behind their grand success in the market is that, they have promoted their medicines as an OTC product.

To penetrate & Compete with other leading companies in the market, the company should also adopt some present new market trends to increase the sale, like:

To promote the preparation as an OTC product, by giving more advertisement on various media channels.

By giving gifts and packages to the retailers at various occasions/festivals as well as to increase their margin for sale of the product, as most of the sale for analgesics is done by chemist’s recommendation.

More frequent visits by the company representatives(Medical Reps) to keep a constant check on the medicine sale.

Any discrepancy/complaints regarding sale/preparation be checked and rectify immediately if any.

Sr. No.

Findings Recommendations

3.The customer is found to be price sensitive as well and may get shifted to another brand available in the market on account of the cost variation.

The cost of the medicines be viewed timely if required.

4.

The customer is psychologically addicted to a particular packing of the graded medicines. And any change in packing may lag to sale of the product. Such as has changed in packing of Thermoseal (Desensitizer toothpaste of ICPA Health products)

Keeping in view, the photogenic memory of the customer, the packing of the product should not be frequently changed.


has seriously affected the sale of the product.

5.

The position of sale of Desensitizer toothpaste of the company is satisfactory in the market. And stand at level 1/level 2 in the market.

To increase the sale of the product more visits to the hospitals/medical Health care centers should be carried out.

Medical practitioners should be more targeted as most of the sale for Desensitizer toothpaste is done by Doctor’s prescription only.

Conclusion

Every research activity ends with some conclusion and same happens with this report also. By analyzing the collected data the conclusion which is made is that Dr. Reddy’s Labs is doing very well in the field of Desensitizer toothpaste. But talking about the pain management, there are so many brands available in the market and as per present situation, three major competitors of Dr. Reddy’s Labs are, Wings pharma, Aventis & Panacea Biotech. Now to compete with these competitors, there are few findings & Recommendations that are highlighted during the project which needs to be addressed to increase the sale of the products.


Objectives of the Questionarre: -

1. To find out the sales potential of Desensitizer toothpaste & analgesics of various brands in the market,2. To find out the effect of various factors on the sale of Desensitizer toothpaste &

analgesics in the market.

QUESTIONARRE

Name of the Medical Store: -________________________________________________


Location: - _____________________________________________________________

Name of the respondent: - _______________________ Contact No.: -_______________

11. Type of the business deal in: -

( ) Retail ( ) Wholesale( ) Both


( ) Allopathic ( ) Ayurvedic( ) Homeopathic ( ) Dental Products( ) Others (please specify) ________________________________


Diclofenac Sodium





Diclofenac Sodium




Aventis

Wings Pharma

Boots PharmaCipla

Panacea Biotech







Sodium Fluoride

Strontium chloride

Potassium Nitrate



Name of the product




No comment

AnalgesicToothpaste

If sold by prescription, please specify the name of the doctors who prescribe it for the maximum time:

Analgesic ________________________ ________________________

Desensitizer toothpaste ___________________ __________________



Indoco Healthcare

Leaders Healthcare



Sodium Fluoride

Strontium chloride

Potassium Nitrate

Novamin Xylitol



of the products-









mentioned below-


4. Any Suggestions you would like to give:-

Bibliography

Reference from books:

Kotler, P. (2006), Marketing Management, Pearson Publishers Ltd.,


New Delhi. D. Dimitris , (Pharmaceutical Marketing: A practical Guide) Executive

Excellence Publishers U.K

Reference from websites:

www.drreddys.com

http://www.ijpsonline.com

http://www.ipfrontline.com

http://www.hoovers.com

www. pharmaceutical -drug-manufacturers.com

www.moneycontrol.com

http://www.rediff.com


http://www.rediff.com/

http://www.moneycontrol.com/

http://www.pharmaceutical-drug-manufacturers.com/

http://www.hoovers.com/

http://www.ipfrontline.com/

http://www.ijpsonline.com/

http://www.drreddys.com/

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