Marketing Project Laptop

CARDKEM PHARMA PVT. LTD

1. INTRODUCTION

1.1. Introduction is the first chapter of the project report through which the researcher

introduces the research topic to the readers. The main function is to say what the report is

about, what work has already been done on the subject and what new grounds are

covered in the present study.

Since the introduction sets the scene and prepares the reader for what is to follow, take

utmost care in writing it. It should be object oriented and must be clear. The introduction

to a report states in a forthright manner what you are going to discuss and does not admit

of any vagueness. Thus, the Introductory chapter should cover following points:

Basic Theoretical concepts

Statement of the problem & Significance of the problem

Objective of your study, i.e. Purpose of you choosing the topic

Scope of your study & Limitations

Definitions of terms used and symbols.

Basic Theoretical Concepts: For small scale industry like CARDKEM PHARMA PVT.

LTD, the dealers play the main role in the organization. Grab the more and more dealers is very

important, so to make them happy and to apply the strategies to keep them retain within the

organization it is necessary to understand their demand and also the different strategy of the

competitors.

Objectives: To understand the market behavior of pharmaceutical industry in terms of

grabbing more dealers for more sales and retention of existing dealers and also to understand the

work culture of private Sector based organizations.

1Impact of B2B Marketing on pharmaceutical Industry


1.2 Objectives of the study

1) To understand about the marketing strategies of small scale pharmaceutical company in

terms of dealer’s accumulation and their retention.

2) To understand how to approach communicate with the dealers and manufacturers of the

final API (Active pharma ingradient).

3) How web based services and telephonic services are useful for B2B marketing.

4) To know the dealer’s or manufacturer’s responses regarding the stocks provided by the

CARDKEM.

5) To understand the competitor’s strategy of retaining the customer as compare to

CARDKEM.

6) What are the main demands of the dealers/manufacturers?

1.3 Significance of the study:

Here the student is expected to write:

Why he/ she conducted this study

Sources of key originating research

The selected problem in the theoretical context of the concerned discipline should be

specified.

1.4 Limitations and future scope:

Limitations: the company is very small firm so the large manufacturer didn’t response

quickly.

Scope: Scope of your study must mention the topical, functional as well as geographical

scope of your study.



2. COMPANY PROFILE

Promoted by professionals, Cardkem started operations in 1993 and currently is a Rs 250

million (US $ 6.25 million) turnover group…. with business interests in manufacturing API

intermediates, bromine compounds, other fine chemicals as well as in contract manufacturing….

in dedicated and multipurpose facilities having about 25000 liters of glass lined reactor capacity

and 75000 liters of SS reactor capacity, installed and under installation….. With an ambitious

target to doubling the turnover to over Rs 500 million in 3 years.

Cardkem was established in 1993 by professionals, as a manufacturer of API intermediates and

fine chemicals - with a vision to be one of the best in the products and the markets that it

serves. And over the years, Carkem has indeed become the largest players in drug intermediates

like pyridine hydrobromide, pyridine hydrochloride and fine chemicals like pyridinium bromide

perbromide, with a current turnover of Rs 250 million.

Cardkem is restructuring its existing operations and further strengthened its team in

preparation for a growth in the focus areas of -

• Intermediates for API / bulk drug’s manufacturers, with a range of products identified for

contract manufacturing.

• Organic and inorganic chemicals – more specifically bromo compounds used in bromo

aceylations, bromo condensations, brominating agents etc including range of byproducts

and other related recovered chemicals.

• Intermediates for API / bulk drug’s manufacturers leading to cephalosporin’s - both sterile

and non sterile, with a range of products identified for contract manufacturing.

• Custom synthesis on laboratory scale, with marked interest in impurities required for

impurity profiling in drug synthesis.

A quiet transformation is in progress - to serve the existing customers with better products, with

cleaner technologies, and a host of existing / new customers with a range of new introductions



and a host of tailor made solutions for lasting associations.

As an organization, Cardkem is a team of about 100 personnel. Senior technical personnel

handling key portfolios of manufacturing, quality assurance and research and development are

all having large / varied exposure to manufacturing bulk actives both for inland and overseas

markets.

Carkem endeavors to work to the best of our ability to consistently provide high quality products,

along with the tailor made solutions / custom synthesized intermediates according to specific

requirements. Our development teams of scientists along with commercial personnel review the

requirements from the time customers’ enquiries are received. Marketing is therefore primarily

handled directly.

Location

The manufacturing facilities are located in western India, in the state of Gujarat, located 350

KM north of Mumbai, on National highway - 8 connecting Mumbai to the capital of India- New

Delhi. It is about 10 KM south of Bharuch railway station and about 80 KM south of Vadodara,

the nearest airport.

Plant

At a site spanning about 10000 sq m, three existing plants that are currently being restructured

and upgraded, and four additional plants, that are in different stages of completion would

provide a complement of one pilot plant, three dedicated plants and three that would be

of multipurpose configurations suitable for manufacture of various groups of products.

The facilities have about 25000 liters of glass lined reactor capacity and 75000 liters of SS

reactor capacity - installed and under installation, and consist of typical configurations common

to such industry. The plants are being engineered through reputed and experienced engineering

consultants to cater to the critical process requirements, and safety of plant, personnel and

product.

Adequate supporting utilities in terms of gas fired steam boilers, thermopac boiler, cooling

towers, refrigeration – brine / chilled water, vacuum / high vacuum, and captive power



generation sufficing standby / emergency requirements have been provided. This would enable

maintenance of defined process parameters critical to product quality.

Company’s engineering personnel, including the trained technicians provide break down,

preventive and corrective maintenance. Critical systems are covered with annual maintenance

contracts with service agencies to periodically monitor the performance. Instruments are

covered by a calibration plan with established traceability and adequate records are maintained.

We also focus on continual improvements in energy–fuel/ resource conservation.

As a commitment towards quality, we are also actively pursuing and upgrading our systems and

facilities towards simultaneously achieving ISO 9001:2000 by the end of the year.

Research & Development

First focus is to look for sustainable growth - and we continually innovate towards cleaner

technologies.

Second focus is to sustain the satisfaction levels of existing customers, and we incorporate…

improvements to the existing products in terms of better purities, lower costs, quicker deliveries,

as well as customer specific use of process chemicals / process conditions for customer specific

product synthesis.

The prime focus is more and more products. And to match our growth plans, we at Cardkem

have invested our time and money for various newer technologies, products.

Cardkem has our very own R&D centre - a project that is to be completed and functional by the

end of the calendar year 2008. With a dedicated and a focused team, and a matching

infrastructure, it plans to consolidate ourselves among the leading names of such industry.



Product List

Bromine Compounds

Sr. No. Used in synthesis for /

of / as

Description of

product/Intermediate

product

CAS

No.

Level of scale up

1 Chemical

synthesis

Pyridine

Hydrobromide

18820-82-1 Plant

2 Brominating

Agent

Phosphorous

Tribromide7789-60-8 Plant

3 Chemical

Synthesis

Ethyl triphenyl

Phosphonium Bromide

1530-32-1 Plant

4 Bromo acylations Acetyl Bromide 506- 6-7 Plant

5 Bromo

AcylationsPropionyl Bromide

598-22-1 Plant

6 Bromo Mineral

Acid

HBr, 33% in Acetic

Acid

10035-10-6 Plant

7 Brominating

Agent

Pyridinium Bromide

Perbromide

39416-48-3 Plant



API Intermediates

Sr. No. Used in synthesis

for / of / as

Therapeutic

group

(for drug

intermediates

)

Description of


product

CAS

No.

Level

of scale

up

Sodium Salts of

Non Sterile /

Sterile Products

- Sodium 2-Ethyl

Hexanoate

19766-89-

3

plant

2. Carvedilol Anti

Hypertensive

4-Hydroxy Carbazole 52602-39-

8

Plant

3. Ondansetron Antiemetic 1, 2, 3, 9-Tetrahydro-4H-

9-Carbazole-4-One (n-

Methyl Carbazolone)

27387-31-

1

Plant

4. Venlafaxine Anti

Depressant

2-(1-

Hydroxycyclohexyl)-2-

(4-Methoxyphenyl)

Acetonitrile

Plant

5. Venlafaxine Anti

Depressant

1-(2-Amino-1-(4-

Methoxy Phenyl) Ethyl

Cyclohexanol

130198-

05-9

Plant

6. Chloramphenicol

Sodium Succinate

Sterile

Anti Bacterial Chloramphenicol

Succinate

982-57-0 Plant

Cephalosporins / related intermediates



Sr.

No.

Used in

synthesis for /

of / as

Therapeutic

group

(for drug

intermediates)

Description of


product

CAS

No.

Level of

scale up

1. Cefexime

Trihydrate

Anti Bacterial (Z)-2-(Tert-

Methoxy Carbonyl-

Methoxyimino)-2-

(2-Aminothiazol-

4-yl) Acetic Acid

(MICA Acid)

_ Plant

2. Cefexime

Trihydrate

Anti Bacterial S-2-Benzothiazolyl

(Z)-2-(2-Aminothiazol-

4-yl)-2-Methoxy-

Carbonyl-Methio

Acetate (MICA

Ester)

_ Plant

Other compounds

Sr. No. Used in synthesis

for / of / as

Therapeutic

group

(for drug

intermediates)

Description of


product

CAS

No.

Level

of scale

up

1. Chemical

Synthesis

- Pyridine 110-86-1 Plant

2. Chemical

Synthesis

- Pyridine Hydrochloride 628-13-7 Plant

3. Group

Protecting agent

- Tri Phenyl Phosphine 603-35-0 Lab



3. RESEARCH METHODOLOGY

2.1 Methodology Details

Research is a process and series of actions or steps necessary to effectively carry out

research. A good research would always require researcher’s contribution in terms of

energy, time and money. This includes following points:

Research plan, Design, i.e. in simple words, how you would carry out the research?

The research design, I have choosen for my study is DESCRIPTIVE RESEARCH

DESIGN. The results from a descriptive research can in no way be used as a definitive answer

or to disprove a fact.

2.2 Sources of Data:

a. Primary Data :-

Web based interview and telephonic interview used for research study was self

developed. Data is collected from dealers and manufacturers, then data was processed

and analyzed to reach conclusion.

b. Secondary Data :-

Secondary data is collected with the help of detail information in soft copy provided by

the project guide, from website, from chemical weekly and another pharmaceutical

related magazines etc.

2.3 Sampling procedures:

As the sample size of dealers and manufacturers to whom researcher was dealing is very

small. The interview is to be taken for only 8 consumers of the Bromo compounds. From

which only 6 are interested to share the information. From which 4 are the manufacturer and

2 are the major dealers of API products.

Defining the target population.

The entire consideration of items from which sample is selected is called the population. As

company is producing bromine compounds which is largely used in most of the



pharmaceutical companies. So there is a pharmaceutical companies from whole world as a

target population.

Selection of sampling method

The Sampling method decides the way in a manner sample is selected.

Researcher has used Simple random sampling method for her survey of summer project.

2.4 Collection of Primary Data:

Discussion with the authority: in this method I have discussed the issue with

the Authority and thus information or data for the research was gathered.

Interview: In personal interview I asked respondent to give answers of the

related questions and thus collect the required information.

Structured interview:

Questions to be asked by the researcher have been planned in advance. So it is a type of

structured interview. Open-ended and close-ended both type of questions is to be asked

by researcher.

4. Web based interview :

Researcher has collected the information personally by Online chating and web based

questions which have been asked by researcher.

5. Telephonic interview:

Researcher has collected the information through telephonic interview by approaching to

the dealers and manufacturers of different region.

In this method a questions is to be asked by researcher to the respondent with a request to

answer and coordinate her.

Steps Involved in questionnaire construction:-




Decide on the content of Individual questions

Types of questions

How to ask questions to them

Sequence of the questions

At which time interview should be conducted

To find out the appropriate person for interview

Collect and record the data properly


First step - what type of individual questions are included- it depends upon the nature of the

study.

- The questions that put the great strain on the memory of respondent should not be

included.

- Complicated questions should be avoided.

- Questions of personal character should be avoided.

- Questions are included in such a way that respondent should give the information

voluntarily.

Types of questions-

Open ended questions-

In this type of question I asked openly and they give answer based on their experience in

dealing with company.

Close ended questions-

In this type of question I asked in which the dealers has to only mark the answer

according to their likes and dislikes.

Here in web based and telephonic interview only open ended questions are possible.

Wording of questions:-

- It should be clear and simple.

- Should be easily understood.

- Should convey only one thought at a time.

- Any sort of misunderstanding can do irreparable harm to a survey.



Pre test of questionnaire:-

- Respondent understood all the questions.

- Does the opening question generate interest?

- The wordings are proper or not.

- The pre-testing ignore the deficiency in the questionnaire.



4. DATA ANALYSIS AND INTERPRETATION

Name of Manufacturer:

1. DSM company (Purchase Manager, Mr. Naveen Aggrawal), Noida, UP.

2. Cebon India Limited (Purchase manager, Mr. Rakesh Girdhar), New Delhi.

3. Inject care Parental pvt. Ltd (Marketing Manager, Mr. Mahesh Patel), vapi,

Gujarat.

4. Orchid chemical & pharmaceuticals (Purchase Manager), Tamil nadu.

5. Aurobindo pharma Ltd. , Hydrabad, Andhra Pradesh.

6. Ranbaxy Laboratories Ltd., Himachal Pradesh.

Name of the dealer/ distributor/ traders

1. Oceanic pharmachem pvt. Ltd (trader/distributor), Mumbai.

2. Jai radhe sales (trader/distributor), ahmedabad, Gujarat.

How the requirement of the manufacturer/dealer is got known?

a) Through trading website

b) Through company’s

product list

c) Chemical weekly

d) Cold call

50%

12.5%

25%

12.5%

No. of respondent

Trading websiteCompany's product listChemical weeklyCold call

Interpretation: Majority 50% manufacturer make their buyer lead through

trading websites.



Got Requirement

a) Yes b) No

75%

25%

No. of Respondent

Yes No

Interpretation: researcher has taken 8 manufacturer/dealers/traders as sample

size. But from that only 6 were ready to give response.

The following details are collected from the company.

DSM

Company

Inject

care

Parental

pvt. Ltd

Aurobindo

pharma

Ltd

Orchid

chemical &

pharmaceuti

cals

Ranbaxy

Laboratori

es Ltd

Oceanic

pharmachem

pvt. Ltd

Product Sodium

2-ethyl

Hexanoic

Acid

Sodium 2-

ethyl

Hexanoic

Acid

Sodium 2-

ethyl

Hexanoic

Acid

Sodium 2-

ethyl

Hexanoic

Acid

Ethyl

triphenyl

phosphoniu

m Bromide

5-

Aminosalicylic

Acid

Requirements

(tonnes/month)

40 5 10 15 10 2

Quality 98.00%

w/w

98.00%

w/w

98.00% w/w 98.00% w/w 98.00% w/w 98.00% w/w

Delivery time 30 days 15 days 15 days 15 days 20 days 30 days

Payment terms Advance Advance Advance or Advance or Advance or Advance or



or L/C or L/C L/C L/C L/C L/C

what is the strength of the Manufacturer/dealer:

a) <70

b) 80 or =100

38%

63%

Chart Title

<70>80 or =100

Interpretation: Most of the manufacturers have good market shares for their

company. So they are stronger enough.

What type of requirements had been got by the company?

a) Bulk b) Ordinary

83.33%

16.66%

No. of responses

BulkOrdinary

Interpretation: Most of the manufacturers require a product in bulk.



What a manufacturer/dealer Expecting from a goods

a) Quality of the goods

b) Quantity of the goods

c) Both

d) Good service

e) Time saving

Quality

Quantity

Both

Good servi

ce

Time s

aving

0

2

4

6

No. of responses

No. of responses

Interpretation: Manufacturers and dealers are focusing on both i.e quality and quantity of the

product. They also believe in good services which are mostly time saving.

What is the level of Rapport made with the company?

a. Very Good

b. Good

c. Average

d. Bad

e. Very Bad



50.00%

37.50%

12.50%

No. of responsesVery GoodGoodAverageBad Very Bad

Interpretation: Manufacturers /dealers are enough satisfied with the goods provided

by the company.

The company has a relationship with manufacturer/dealer is

a) Long term b) Short term c) Temporary

33%

50%

17%

No. of responses

Long termShort termTemporary

Interpretation: Company’s turnover is low. So manufacturer rarely make the business

relationship for long term.

Had researcher explained the process clearly to the manufacturer/dealer

a) Very Good

b) Good

c) Average

d) Bad

e) Very Bad



12.50%

37.50%37.50%

12.50%

No. of responses

Very GoodGoodAverageBadvery Bad

Mention the reason if the Requirement not received from the company?

Sometimes, the production of particular product might be stopped by the

manufacturer and now they don’t need mare raw material for their product.

They take more benefit in services from another company.

They can get raw material from the nearest location.

Mistakes made while this dealer’s Call.

Earlier researcher found difficulty in communicating with dealers/manufacturers. Because

researcher is doing first time this type of work. Sometimes the respondent don’t understand what

the researcher want to convey the things and for what she is searching for.

Way to overcome the above mistakes.

Researcher should aware about the whole product detail.

Researcher should be confident when she is communicating with dealers.

What is the Attrition Rate of the manufacturer/dealer per month?

a) less than 10

b) less than 30

c) less than 70

d) More. Specify…….

Interpretation: It is a very small firm producing API intermediate, the Number of manufacturer

they are dealing with is comparatively low.



5. KEY FINDINGS

Manufacturers and dealers which are selected from the Indian pharmaceutical industry

from the different regions. To identify the different perceptions of manufacturer and their

behavior of purchasing a product.

Manufacturers are taking raw material from only well known company on contract basis.

About 75% of manufacturers believe that well known pharmaceutical company will

fulfill their better requirement.

Manufacturers are taking product as raw material in a bulk in case of pyridine Hydro

bromide. As CARDKEM is the second large manufacturer of pyridine Hydro bromide.

Majority (about 75%) of manufacturers are dependent for the raw material on traders. As

they are easily got material on timely basis.

Payment terms are Advance and L/C.As per the CARDKEM policy; the company only

accepts Advance and L/C.

Strength (CARDKEM):

Quality of materials is very good.

There is a R&D centre for improvement on product.

Price of material is lower than competitor.

Supply of raw material is very good.

Weakness (CARDKEM):-



All sizes of container are not available always.

Logistics and handling problem in yards.

Lengthy process for discharge.

Handling of logistics is little bit difficult because the product is hazardous in nature.

6. SUGGESTIONS & RECOMMENDATION

As CARDKEM is growing from year to year therefore it is definitely important for them to

sustain its loyal customers for longer period. There are lots of competitors in market like

Jubiliant pharma, Dishman pharma, Ions pharma etc. For this they have to do improvement time

to time in order to tackle their competitors and for further growths.

Therefore there are lots of score still remaining in the improvement especially for dealers in

SAIL in order to achieve their objective. Following are few points of improvement which they

can do to improve, sustain and to growth this –

1) First of all, the complaints of customers must be listened and quick action must be taken

on those complaints like most of others private pharmaceutical companies do.

2) Feedback from manufacturers must be implemented and current market trend must be

taken time to time.

3) The process of working and delivery system should be made easier and faster.

4) More promotional activities like advertisement on television should be done in order to

attract more customers.



5) The manufacturers should be provided goods according to their demand and stock

should be made available in wide range to dealers/manufacturers.

6) Frequent regular visit should be made by branch officer in order to see whether dealers

are working according to CARDKEM’s terms and conditions or not.

Recommendation:-

The company should lift the quantity restriction.

The company should keep all sizes of container in their stockyards.

The company should try for more orders as to improve their marketing strategy, that they

can utilize their resources properly.



ANNEXURE

STRUCTURED QUESTIONNAIR FOR INTERVIEW BY

WEB BASED APPROACH AND TELEPHONIC APPROACH IN

B2B MARKETING

1. Name of the manufacturer/dealer:

……………………………………………………………

2. How the requirement of the manufacturer/dealer is got known?

o Through trading website

o Through company’s product list

o Chemical weekly

o Cold call

3. Got Requirement

a) Yes b) No

4. Whether the following details are collected from the company.



Requirements

Specifications

Quality

Delivery

system

Payment terms

5. what is the strength of the manufacturer/dealer

a) >70 b) > or =100

6. What type of requirements had been got by the company?

a) Bulk b) Ordinary

7. What a manufacturer/dealer Expecting from a company for goods

a) quality of the goods

b) quantity of the goods

c) Both

d) Good service

e) Time saving

8. What is the level of Rapport made with the company?

o Very Good

o Good

o Average

o Bad

o Very Bad



9. The company has a relationship with manufacturer/dealer is

a) Long term b) Short term c) Temporary

10. Had you explained the process clearly to the manufacturer/dealer

o Very Good

o Good

o Average

o Bad

o Very Bad

11. Mention the reason if the Requirement not received from the company?

_________________________________________________________

12. Mistakes made while this dealer’s Call.

13. Way to overcome the above mistakes.

14. what is the Attrition Rate of the manufacturer/dealer per month

o less than 10

o less than 30

o less than 70

o More. Specify…….



BIBLIOGRAPHY

Crimp, M. and Wright, L. T. (1995) The marketing research process, 4 th edition, Prentice

Hall, London. Chapter 1, pp. 1-19.

Imms, M. and Ereaut, G. (2002) Introduction to qualitative market research, Sage,

London.

Kumar, V., Aaker, D. A. and Day, G. S. (2002) Essentials of marketing research, 2nd

edition, Wiley, New York. Chapters 2 and 3, pp. 29-66.

Proctor, T. (2003) Essentials of marketing research, 3rd edition, Financial Times

Prentice Hall, Harlow. Chapter 1, pp. 17-21.

Saunders, M., Lewis, P. and Thornhill, A. (2003) Research methods for business

students, 3rd edition, Financial Times Prentice Hall, Harlow. Chapter 7, pp. 188-220.

Webb, J. R. (2002) Understanding and designing market research, 2nd edition, Thomson

Learning, London. Chapter 3, pp. 31-45

De Vaus, D. A. (1996) Surveys in social research, UCL Press, London. Chapter 5, pp.

60-80.

Donkers, B., Franses, P. H. and Verhoef, P. C. (2003) ‘Selective Sampling for Binary

Choice Models’, Journal of Marketing Research, 40 (4), 492.

Fink, A. (2003) How to ask survey questions, 2nd edition, Sage, London (Thousand

Oaks). 193Hague, P (1993) Questionnaire Design, Kogan Page, London

Nicholls William L., I. (1996) ‘Highest response’, Marketing Research, 8 (1), p. 5.



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