CURRENT MARKETING AND DISTRIBUTION CHANNEL TREND OF ETHICAL PRODUCTS

IN INDIAN PHARMA INDUSTRY

Presented BySADAKAT

INTRODUCTION

• World’s largest industry due to worldwide revenues of

approximately US$2.8 trillion

• More than 2,400 registered pharmaceutical producers

in India

• 24,000 licensed pharmaceutical companies

• Pharmaceutical distribution channel usually has three

channel members i.e. depot/C&F, stockiest and chemist

Pharmaceutical market in India

• Indian pharmaceutical industry is one of the developing world’s

largest and most developed, ranking 4 in the world in terms of

the production volume and in domestic the consumption value

• Indian Pharma Industry is playing a key role in promoting and

sustaining development in the vital field of medicines

• Fastest growing segments of the Indian economy with an

average annual growth rate of 14-18 percent

• 34 foreign drug companies engaged in the Indian

pharmaceutical market and among them are 15 of the world’s

20 largest pharmaceutical companies

RESEARCH OBJECTIVES

• To understand the pharmaceutical market in India and the evolving process of segmentation in it as well as to understand the need for it.•To critically analyse the marketing strategy of the pharmaceutical market in India.•To analyse the new distribution channels resorted to by the Pharma majors to tackle the challenges faced by them..•To understand the pharmaceutical market in India and the evolving process of segmentation in it as well as to understand the need for it.•To critically analyse the marketing strategy of the pharmaceutical market in India.•To analyse the new distribution channels resorted to by the Pharma majors to tackle the challenges faced by them.

METHODOLOGY

• DATA SOURCES

PRIMARY DATA

INTERVIEWS

COLLECTION OF INFORMATION

SECONDARY DATA• STATISTICAL TOOLS USED

Questionnaire

Pie Charts

Tables

PRIMARY FINDINGS & ANALYSIS

Q) How do you place the Indian pharmaceutical industry in the global pharmaceutical map

competitive, 32%

badly placed, 27%

on par, 16%

cant say, 25%

0%

5%

10%

15%

20%

25%

30%

35%

competitive

badly placed

on par

cant say

competitive 32%

badly placed 27%

on par 16%

cant say 25%

Q) How do you think the role of govt. should be as regards the

present situation in the pharmaceutical industry

protectionist, 44%

non-interference, 18%

cant say, 38%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

protectionist

non-interference

cant say

protectionist 44%

non-interference 18%

cant say 38%

Q) Do you think that the entry of Multinationals is a major challenge

to the domestic players in the pharmaceutical market

yes, 36%

no, 54%

cant say, 10%

0%

10%

20%

30%

40%

50%

60%

yes

no

cant say

yes 36%

no 54%

cant say 10%

Q) What type of marketing strategy would you prefer to expand your market size

B2B, 23%

B2C, 32%

Both, 45%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

B2B

B2C

Both

B2B 23%

B2C 32%

Both 45%

Q) What innovative distribution channel do you suggest to better market

your products

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

better supply chain

emotional branding

corporate alliances

greater media participation

othersbetter supply chain 34%

emotional branding 42%

corporate alliances 12%

greater mediaparticipation

10%

others 2%

Q) Do you think that market ethics/ medical ethics is a major factor in the

new distribution channel of marketing

yes, 57%

no, 28%

cant say, 15%

0%

10%

20%

30%

40%

50%

60%

yes

no

cant say

yes 57%

no 28%

cant say 15%

RECOMMENDATIOS

•There can be various ways through which a business organization can achieve success in the market.

• the domestic pharmaceutical market will be largely driven by the increasing prevalence of chronic segment

•the organization with Competitive Advantage tends to be the cost •leader in the industry or a seller of most differentiated products amongst all the players .

•the success of any pharmaceutical industry; when a company changes its concentration from “Acute” to “Chronic” therapy market depend on competitiveness of supply chain.

CONCLUSSION

• The Indian pharmaceutical industry, with its strong reverse engineering and chemistry skills and relatively low cost structure

• A factor in India’s favour is the pressure on global pharmaceutical companies to reduce drug costs, which in turn points to outsourcing

• The marketing strategy of the pharmaceutical industry in India has changed and new distribution channels have been introduced.

• As marketing experts say, it is a war out there, with many players numbering 24,000 pharmaceuticals in the Indian battlefield.

• Medicinal nature of the product prevents the organisation from using any publicity campaign unlike FMCG.

• The stronger the sales force better is their chance of success and growth.

• Strength in quality of the sales force cannot be over looked due to the specific nature of the product itself

THANK YOU