A

Project Report

on

“Measuring the OTC Medicines’ Promotional effectiveness”

Submitted to

Lovely Professional University

Jalandhar

in partial fulfilment of the requirement for the

Award of degree of

Master of Business Administration

Submitted by: Project Guide

Jimmi Garg Mr.Shivendra Mathur

M.B.A (Hons.)International Lect. in LHSB

(30800022)

Session (2008-10)

Lovely Professional University

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CERTIFICATE

This is to certify that the project work entitled “Promotional Channels effectiveness of the OTC Medicine Brands” is the bonafide work of Jimmi Garg and has been successfully completed by him for the fulfilment of the degree of Master of Business Administration awarded by Lovely Professional University, Jalandhar during the Academic year 2008-10 under my guidance. It is to the best of my knowledge that this report is not submitted to any other institution or University before.

I am fully satisfied with his work and wish him best of Luck in his future endeavour.

M/s Shivendra Mathur

Lovely Honours School of Business

Lovely professional university

Jalandhar.

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Student Declaration

I, Jimmi garg S/o Kashmiri Lal

Here by declare that the report titled

“Measuring the OTC Medicines’ Promotional effectiveness”

Submitted for the partial fulfilment of the requirement for the Degree of

Master of Business Administration

To Lovely professional university, Jalandhar

is my original work and has not been submitted for the award of any other degree , diploma, fellowship or other similar titled project.

Place: Jalandhar

Date: Signature:

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ACKNOWLEDGEMENT

I would take this Opportunity to thank M/s Shivendra Mathur (Lect. in LHSB, Lovely Professional University) for helping me throughout the project and giving me timely feedbacks and suggestions to keep my project in the right direction.

I would take this Opportunity to thank M/s Rajesh Verma (H.O.D of LHSB, Lovely Professional University) for providing me guidance and for helping to knit the right objectives for the study.

I would take this Opportunity to thank M/s Bharat Ahuja (Lect. in LHSB, Lovely Professional University) for guiding me to make Questionnaire intact and to improve the study by helping in analysing the findings of study.

I would like to thank all the Friends and other students of MBA in Lovely Professional University for helping me in the study by giving suggestions and giving their responses in Questionnaires.

Jimmi Garg

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Table of Contents

Chapter Contents Page No:

No:

1. Introduction

2. Review of literature

3. Need and Objectives of the study

4. Research Methodology

5. Data Analysis and Interpretation

6. Findings

7. Conclusion Recommendations and Limitations

8. Bibliography

9. Research Questionnaire

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Chapter 1

Introduction

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Introduction

The Study is to know effectiveness of the Existing OTC Companies’ Branding Strategies. As there

is tough competition in the Pharmaceutical market and every player is doing something different to

capture market share with various Promotions, so in this study we will measure the effectiveness of

their strategies and how these strategies are perceived by the consumers. So in past unlike other

sectors pharmaceutical sector had only gained position through practitioner’s prescription, but now

trend has been changed. So this study will help us to know about the various strategies and their

impact on perception of consumers.

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Chapter 2

Review

of

Literature

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Review of existing literature

It has been observed from existing studies that more and more companies are using OTC drugs to

make direct relations with consumers and by the same strategy they also manage to make Brand equity

for their other products(OTC or Generics)also, many pharmaceutical companies are now day spending

huge money on research for new formulations, they are also doing lots of CSR activities so that to win

customer loyalty, e.g. Cipla use to Conduct many free healthcare camps at various places where it

provide public Cipla medicines, so this way they are creating a general awareness in the public about

the Company drugs’ effectiveness. Also there is restriction on the using Advertisement of prescription

drugs so companies use other means to enhance Brand equity.

Some Studies and Articles given below will help us to know what companies plan to Brand their

organizations:-

Pharmaceutical Branding Strategies

Report (Business Insights- Jan,06)

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Pharmaceutical branding describes the process whereby companies attempt to transform an active

chemical compound into a recognizable package of associated brand values; these values, such as

effectiveness, safety, trust and other more emotional associations, have become increasingly important

levers through which pharmaceutical marketers can look to achieve greater market share and loyalty in

an ever more competitive market space. Pharmaceutical branding efforts impact on a range of related

strategies, including brand name development, Rx-to-OTC switching, DTC marketing, PR and

corporate communications.

Building Pharmaceutical Brand through Continuing Education

Programs

Pharmaceutical manufacturers are looking beyond pure marketing campaigns to build brand and

customer loyalty. Senior management at many Pharmaceutical companies has begun to see education

as a strategic tool to promote itself in the market. Through delivering strategic continuing education

programs to health care professionals, industry leaders are driving performance by building customer

loyalty and increasing prescription sales.

Brand Values

(Chapter in Book “Branding”)

Brand values are the glue that binds the customer to the brand. They must be linked to the brand’s

attributes and the reality of the offer or they will have absolutely no credibility. Moments of truth are

critical to the brand customer relationship.

So much of pharmaceutical brand advertising focuses on product attributes, and very little focuses on

patients’ emotional needs. That this should be so is perfectly understandable, as it is a function of the

supply chain of medicines. But what it highlights is that while the functional needs of doctors and their

patients are very much the same, there is a whole layer of additional support, reassurance and that the

patient needs. Information about, and access to, pharmaceutical products will soon be only a click

away: this is when brands will really come into their own.

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The great direct-to-consumer prescription drug advertising : how

patients and doctors alike are easily influenced to demand dangerous

drugs

These days, it's hard to tell the difference between pharmaceutical commercials and car commercials.

Both are almost always intended to look "cool." Car and pharmaceutical commercials use the same

hooks -- popular music, good acting and lofty promises -- to hook consumers and reel them in. Falling

prey to car commercials results in little more than hefty car payments; however, becoming seduced by

pharmaceutical companies can result in the consumer willingly taking powerful drugs, at the risk of

serious illness and even death. In spite of this tremendous risk, pharmaceutical advertisements are

becoming increasingly common and, unfortunately, increasingly effective.

In 2000, pharmaceutical companies spent Rs.125 billion on mass media pharmaceutical

advertisements, according to Mike Fillon in Ephedra: Fact or Fiction. This number increased to over

Rs.150 billion in 2003, according to Dr. John Abramson's book Overdosed America. In his book,

Death by Prescription, Ray D. Strand looks at these high figures and poses the question: "Why?" Why

do pharmaceutical companies spend billions of dollars on direct-to-consumer advertising, when

consumers can only obtain prescriptions for these drugs through a doctor? Wouldn't it seem that

consumers have no influence whatsoever on the success of a prescription drug, so advertising should

be directed entirely toward doctors.

That makes sense, but it's not the way things work. Pharmaceutical companies wouldn't spend billions

of dollars on direct-to-consumer advertising if it didn't work. In fact, the advertisements are working

too well. Fillon writes, "The average number of prescriptions per person in the United States increased

from 7.3 in 1992 to 10.4 in 2000. Along with this increase in demand, there has been a shift towards

the use of more expensive medications. It's more than a coincidence that many of the most expensive

medications happen to be those medications that are most heavily advertised." In fact, between 1999

and 2000, prescriptions for the 50 most heavily advertised drugs rose six times faster than

prescriptions for all other drugs, according to Katharine Greider's book, The Big Fix. So, how is direct-

to-consumer advertising so effective in a system in which doctors write out the prescriptions.

Telling clever stories with misleading ads

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Well, first, let's explore direct-to-consumer advertising, namely the television commercial. Most

prescription drug commercials follow the same script progression: First, the commercial shows how

bleak life was for a person or character before taking whatever prescription medicine the commercial

is advertising. Then, the protagonist demonstrates or tells how wonderful life is while on the drug.

Finally, a voiceover obligingly lists the side effects, often speaking as quickly and inaudibly as

possible.

Take, for example, a Paxil commercial that was recently popular. At the beginning of the commercial,

the typical 30-something-year-old woman is standing outside a house, looking through the window at

the happy party going on inside. She looks so lonely and depressed that it must break nearly every

consumer's heart. "What's wrong with her?" we compassionate humans gasp in unison. The voiceover

answers our question as we think it: The woman has social anxiety disorder, a condition that can be

treated with the prescription drug Paxil.

Suddenly, the now-medicated woman rings the doorbell and, with a huge smile on her face, joins the

party. We see how much fun she is having and we are so happy for her! Of course,

the voiceover quickly goes through the list of Paxil's potential side effects, but how can we concentrate

on that, when we're so busy rejoicing at the woman's new happiness? Whoever wrote that commercial

should write Hallmark movies. After seeing it a few times, I was convinced that most of my non-

immediate family had social anxiety disorder and I even called one relative up to suggest that she take

Paxil. I'm not even a gullible person, yet I was persuaded by pharmaceutical company advertising.

OTC Advertising4Ps Business and Marketing.vol5,issue3,12february-25february’10

Be it TVs or print; the OTC sector advertising controversy took on moral shades with some activists objecting to a few advertisements. Despite the hue and cry, TV advertising of OTC sector grew by 44% in Jan-Oct’09.

Aggressive advertising

Volume Growth of OTC sector on TV during Jan-Oct’09- 44%

Compared to last year for the same period’08 TV advertising of OTC is grown by 44%

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Figure 2.1

Rubs/Balms, Contraceptives, Analgesic/Cold Tablets were the Top 3 OTC categories advertised on TV during Jan-Oct’09.

During Jan-Oct’09,Top 10 categories accounted for 80% of overall advertising share of OTC sector on TV.

New Age Advertisers Growing Sub Categories of OTC sector on TV during Jan-Oct’09

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Figure 2.2

Compared to Jan-Oct’08, Condoms category recorded highest growth in its TV ad volumes under OTC sector Followed by Contraceptives and Range of Oral Hygiene Products during Jan-oct’09.

Top Advertisers % ShareSmithkline Beecham 10Mankind Pharma Ltd. 7Paras Pharmaceuticals Ltd. 7Cipla Ltd. 6Reckitt Benckiser(India) Ltd. 6Procter & Gamble 5Emami Limited. 4Boots Piramal Healthcare India Ltd. 3Torque Pharma 3Zydus Cadilla Healthcare Ltd. 3Source: AdEx India

Chapter 3

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Need

and objectives

of

the study

Research objectives

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To Identify the most effective Channels of Promotion used for OTC Medicines

To Identify the Facts that influence the choice of customers towards OTC Ads

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Chapter 4

Research Methodology

Research methodology

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The Study was conducted with specific Research Design and methodology which is given below:-

Need and scope of the study

The Study was conducted to check the efficiency of the Channels Promotional Strategies used by

Various Companies and to know about the effectiveness of this pharmaceutical Branding by counting

responses from students of MBA and the study covered the MBA Students from Lovely Professional

University and Sample was taken by convenient sampling.

Research Design

It is a Descriptive study, in which responses from Public are considered to be the main result area and

to know, how much public or mainly youth is aware about the promotions done by Companies for

OTC medicines.

Data Collection

Who- The Data is collected by myself in LPU from All streams of MBA students.

How- Survey Technique used to collect the data, for that Random and convenient

sampling is used.

How Many- Survey is conducted on 100 Individuals from LPU and all were MBA

Students.

Data Analysis

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It is collected Scale Data, Interval and nominal Data to study and It is a Quantitative study as we want

to explore in particular Area, so we used Descriptive analysis in this, which could clarify us the major

factors which impacts to OTC Pharmaceutical Branding.

Chapter 5

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Data Analysis & Interpretation

Q.1 - How frequently you notice any TV advertisements for medicines’ brands?

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Figure 5.1

Analysis-

This Question is there to determine that how frequently people notice TV Ads for OTC Medicines and here by results we found that there are 23% of people who notice such Ads Almost Regularly and 61% people responded that they notice such Ads Sometimes but 17% people rarely see such Ads, so here we can say that Maximum people notice Ads only sometimes so still people are not very much noticing such TV Ads of OTC medicines.

Q.2 - Can you recall any advertisement of OTC Medicine Brand? (Please Write the Brand Name)

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Figure 5.2

Analysis-

Here our main Motive is to determine that which OTC medicines Ads people remember and they can recall at the time. Here we noticed that many people could not remember any of brands so still there is Gap between the Motive of OTC TV Ads and information message public get via it.

Disprin and Crocin were the main brands which were recalled by maximum people, where Disprin by 13 people and Crocin by 16 people

Q.3 - What Aspects of Ad were most liked by you? (Please tick one or more options)

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Figure 5.3

Analysis-

As we see that an Advertisement is a combination of many Factors so some people recall it by its Uniqueness and some may recall it by the jingle used in Ad, so here we want to see that which aspect is mostly liked by the public to recall an OTC advertisement.

In the Result we found that Maximum people use to recall the Ads by the message given by the advertisement rather that others aspects. Uniqueness is also seen as a major contributor to recall a Ad to the public.

Q.4.Where you mostly see the Ads of Popular medicines? (Rank 1 to 6, 1 for most frequent)

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Rank1 Rank2 Rank3 Rank4 Rank5 Rank6 Rank1+2+3

TV 59 6 9 5 2 7 74

Magazine 4 10 12 11 14 18 26

Internet 1 9 13 13 14 17 23

Newspaper 5 5 14 21 15 7 24

Clinics 14 18 12 7 13 8 44

9Chemists 19 20 7 9 8 9 46

Table 5.1

Analysis-

Here we want to get responses of people about the medium where they see the Ads of Popular OTC Medicines and Result shows that Maximum Ads seen on Televisions as 74 people kept TV in to First 3 Rankings and 59 people give it 1st Rank. Same Could be seen in Figure given below.

Figure 5.4

Q.5- Which medium do you think, is “the best” to aware you about the OTC Medicine Brands?

(Rank 1 to 8, 1 for most frequent)

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Rank1 Rank2 Rank3 Rank4 Rank5 Rank6 Rank7 Rank1+2+3

TV 62 2 4 4 5 1 6 68

Magazine 5 6 19 13 16 11 7 30

Radio 3 6 9 10 8 18 13 18

Internet 2 10 5 12 7 9 21 17

Chemists 14 18 19 2 7 5 9 51

Clinics 12 20 11 8 8 12 4 43

Newspaper 3 6 9 4 2 6 4 18

Table- 5.2

Analysis- Here people given the Opinion on the Medium they prefer for OTC medicines’ Ads. As it could be seen in Table 5.2 and Figure 5.5 that most people prefer to see OTC Ads through TV medium only and the second preferred medium is through chemists, so if drugs could promoted through chemists then also OTC could gain more momentum.

Figure 5.5

Q.6- In TV Ads of OTC Medicines, whom do you think is more effective in promoting?

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Figure 5.6

Analysis-

The question is asked to know the people preference for Brand Ambassador for OTC drugs and it is found that OTC drugs which are promoted by Doctors as Brand Ambassadors are more liked by people and so that they can trust on the particular Brand.

Q.7- Which aspect of brand influence you most to go and purchase the particular OTC Medicine? (Rank 1 to 5, 1 for most frequent)

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Rank1 Rank2 Rank3 Rank4 Rank5 Rank1+2

Benefits Sought 46 3 15 11 6 49

Product Brand Name 23 29 21 8 0 52

Company Brand Image

23 21 16 6 5 60

Frequency of Ads 4 8 4 20 29 16

Endorser/Ambassador 4 7 10 20 24 21

Table- 5.3

Analysis- Here it is seen that people are most influences by the Company Brand image in the market and they preffered to have same medicines on demand. Here people also bother about the Product Brand name and benefits sought from the OTC drug.

Figure 5.7

Q.8- What influence most to your liking/choice for a particular Pharmaceutical brand.

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In this Question, people were given 6 attributes and they had to rate each attribute with Highly influencing, Somewhat Influencing and No influence, so we get to know here that which aspect of product influence more to a consumer. Here is attribute 1-

Figure 5.8

Analysis-

We can see in Figure 5.8, people rated Highly Influenced with Brand name of OTC drugs, 67% people are

Highly influenced with the Brand name, it means OTC Brands should more focused on building Brand image as

it leads to recognition and purchase of OTC drugs.

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Figure 5.9

Analysis- In this Question people were somewhat influenced by the frequency of Ad Campaigns where only 15% people were highly influenced by the Frequency of Ad Campaigns, and 72% people are somewhat influenced by the Frequency of OTC Ad Campaigns.

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Figure 5.10

Analysis-

As it was also observed in Litrature Review that companies do education programmes to influence the Brand image so here people have ranked General awareness and education Programmes in highly influenced option.63% of respondents are highly influenced with this type of programmes and 30% are somewhat influenced. So we can say that it is important to spend money on this type of promotional programmes.

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Figure 5.11

Analysis-

Packaging of the product is also somewhat influence the chice of the product, here 54% of respondants agree that packaging somewhat influence thir liking and choice about a product.

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Figure 5.12

Analysis-

37% of Respondents are highly influenced with Advertising of the OTC drugs and 54% of respondents are somewhat influenced with the advertising of the OTC drugs. so we can say that advertising affects the liking and choice of products for general public and it is worth spending huge money on promotions of these drugs.

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Figure 5.13

Analysis-

Here also people respomded influenced with the overall attraction of the ads where 31% of respondentshighly influenced with it and 53% people are somewhat influenced with the same.

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Q.9- What Influence you most while purchasing OTC Medicines? (Rank 1 to 6)

Rank1 Rank2 Rank3 Rank4 Rank5 Rank6 Rank1+2+3

Self Awareness

17 6 23 13 13 8 46

Family 7 9 15 24 16 5 31

Friends 12 10 8 9 16 20 30

Doctor Suggest

45 14 6 8 7 6 65

Chemist Suggest

11 29 11 3 10 12 51

TV Ads 9 7 12 17 11 19 28

Table-5.4

Analysis- It is observed that Doctors also play role in suggesting OTC medicines to people and influence the purchase pattern of consumers, otherrthan that chemist suggestions and Self Awareness play a major Role in purchasing particular OTC Medicines. Figure 5.14

Figure 5.14

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Chapter 6

Findings

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Findings-

Maximum people notice Ads sometimes so still people are not very much in notice with such TV Ads of OTC medicines.

Many people could not remember any of brands of OTC drugs, so still there is Gap between the Motive of OTC TV Ads and public recall of advertisements.

Disprin and Crocin are the brands which were recalled by maximum people. Maximum people remember the Ads by “Information/message given by the advertisement”, rather

that others aspects. “Uniqueness of Ads” is also seen as a major contributor to recall Ads to the public. Most people prefer to see OTC Ads “through TV medium” and the second preferred medium is

“through chemists”. OTC drugs which are promoted by “Doctor as a Brand Ambassador” are more liked by people. People are most influences by the Company Brand image of OTC drug. People also somewhat bother about the Product Brand name and benefits sought from the OTC drugs. People rated Highly Influenced with Brand name of OTC drugs. people were somewhat influenced by the frequency of Ad Campaigns people have ranked “General awareness and education Programs in highly influenced” option,.63%

of respondents are highly influenced with this type of programs. Packaging of the product is also somewhat influence the choice of the product Also advertising affects the liking and choice of products for general public Respondents also influenced with the overall attraction of the ads Doctors also play role in suggesting OTC medicines to people and influence the purchase pattern of

consumers, other than that chemist suggestions and Self Awareness play a major Role in purchasing particular OTC Medicines.

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Chapter 7

Conclusion

& Recommendations

&

Limitations

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Recommendations-

Promotion of OTC drug is a major factor in making people aware, liked and influenced with a particular OTC medicine, so Companies should promote the drugs on large scale and they shall made it more lucrative and Unique to make it as remembered by the public,

Message should be Sound and positive to people from Ads.

The OTC drugs could be highly promoted by TV Ads and Chemists.

In promotions, doctors should be used as the Brand Ambassador.

Also There should be more General awareness and education Programs conducted to get recall of public.

Limitations/ Assumptions

This Study is organized only on sample size of 100 people and results are related to one particular

Area of University (LPU).

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Bibliography

Naresh Malhotra, Research Methodology, Pearson Publishers

Medicine Net Inc, healthcare Media publishing company, June 2004, A catering theory of Generic and

OTC medicines available at http://www.medterms.com/script/main/art.asp?articlekey=33073

Baker Malcolm, The Journal of Finance, Vol. lix, No.3, June 2004, A catering theory of ……….available at www.people.........................................

http://www.naturalnews.com/010315_advertising_drugs_doctors.html

http://www.piribo.com/publications/sales_marketing/branding/pharmaceutical_branding_strategies.html

http://www.ourfishbowl.com/images/book/Bus_Insights_IBWood_RR.pdf

http://www3.best-in-class.com/bestp/domrep.nsf/Content/3DA56938E5E7557985256DDA005

6B49F!OpenDocument

http://www.researchandmarkets.com/reportinfo.asp?report_id=317551 etc.]

Books On internet:

Health Care in the New Millennium by Ian Morrison, page 44

Death By Medicine by Gary Null PhD, page 13

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MBA PROJECT (LPU) Questionnaire (Customer) * OTC- Over the counter

Name -..................... Age -.....................

Place -..................... Contact No: -............................

Q.1 - How frequently you notice any TV advertisements for medicines’ brands?

Almost Regularly Sometimes Rarely Never

Q.2 - Can you recall any advertisement of OTC Medicine Brand? (Please Write the Brand Name)

................................................................................................................................................................

Q.3 - What Aspects of Ad were most liked by you? (Please tick one or more options)

Information/Message

Uniqueness

Celebrity Presence

Jingle used

Appearance of product

Other -.............................. (Specify)

Q.4.Where you mostly see the Ads of Popular medicines? (Rank 1 to 6, 1 for most frequent)

TV Magazine Internet Newspaper Clinics Chemists

Q.5- Which medium do you think, is “the best” to aware you about the OTC Medicine Brands?

(Rank 1 to 8, 1 for most frequent)

TV Magazine Radio Internet Chemists Clinics Newspaper Other (Specify)

Q.6- In TV Ads of OTC Medicines, whom do you think is more effective in promoting?

Doctors Celebrities General people

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Q.7- Which aspect of brand influence you most to go and purchase the particular OTC Medicine? (Rank 1 to 5, 1 for most frequent)

Benefits Sought Product Brand Name Company Brand Image Frequency of Ads Brand Endorser/Ambassador

Q.8- What influence most to your liking/choice for a particular Pharmaceutical brand.

Highly Influencing Somewhat Influencing No Influence

Brand Name-

Frequency of Ad Campaigns-

General Awareness & Education Programmes-

Packaging-

Advertising-

Overall Attraction of Ads-

Q.9- What Influence you most while purchasing OTC Medicines? (Rank 1 to 6)

Self Awareness Family Friends Doctor Prescription Chemist Suggestion TV Ads

..........Thank You.........

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