To include plagiarism and ethical statements and word count is a formal requirement. Declaration: I declare the following: 1. That the material contained in this dissertation is the end result of my own work and that due acknowledgement has been given in the bibliography and all references to ALL sources be they printed electronic or personal. 2. The word count of this term paper is around 11,014. 3.
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I declare that ethical issues have been considered, evaluated and appropriately addressed in this research Signed: ACKNOWLEDGEMENT I would like to express my gratitude to a few people without whom this term paper would not have been possible. My deep sense of gratitude to the Director of J. D. Birla Institute, Dr.Asit Datta, for extending his support and enriching my knowledge base further.
My deepest thanks to my mentor, Ms Paramita Sarkar, for guiding and correcting me at various steps and without whom this project could not have been completed. I would like to express my heartfelt thanks to the Coordinators of the Learning Resource Centre of our college, who assisted me to avail the relevant books and allowed me to carry out the necessary research for my term paper. I would like to to thank all my friends, colleagues from college and my family members who have always believed in me and encouraged me.
And last but not the least, I would like to thank my college, J. D. Birla Institute, for providing the students with such a valuable learning experience. INDEX |S. NO | |TOPIC | |PAGE NO. | | | |1. | |INTRODUCTION | |7-8 | | | |2. | |LITERATURE REVIEW | |9 | | | | | |2. 1) HISTORY | |9-11 | | | | | |2. 2) FEATURES | |12 | | | | | |2. 3) SCOPE | |12-13 | | | | | |2. 4) CURRENT SCENARIO | |13-14 | | | | | |2. 5) GROWTH SCENARIO | |14 | | | | | |2. 6) CLASSIFICATION OF PHARMACEUTICAL INDUSTRY | |14-15 | | | | | |2. 7) GOVERNMENT INVESTMENTS & INITIATIVES | |15-16 | | | | | |2.
8) MARKETING STRATEGY | |17-18 | | | | | |2. 9) ADVANTAGES IN INDIA | |19 | | | | | |2. 10) SWOT ANALYSIS | |19-22 | | | | | |2. 11) TOP 10 COMPANIES IN INDIA | |22-26 | | | | | |2. 12) CLASSIFICATION OF PHARMACEUTICAL PRODUCTS | |26-29 | | | | | |2. 13) RESEARCH & DEVELOPMENT | |29 | | | |3. | |RESEARCH METHODOLOGY | |29-34 | | | |4. | |DATA ANALYSIS | |34 | | | |5. | |HYPOTHESIS | |35 | | | |6. | |RESULT | |36 | | | | | |6. 1) FINDINGS | |36 | | | | | |6. 2) RECCOMMENDATION | |37 | | | |7. | |CONCLUSION | |38 | | | | | |7. 1) LIMITATIONS | |38 | | | | | |7. 2) FUTURE SCOPE | |38-39 | | | |8.
| |EXECUTIVE SUMMARY | |40 | | | |9. | |ANNEXURE | |41-48 | | | |10. | |BIBLIOGRAPHY | |49 | | | | | | | | | | | ABSTRACT This paper provides detailed and substantial information about the rise in the production quantity of the products of the pharmaceutical industry in India. It examines the growth dynamics of the industry and the various reasons contributing to such increased production. The paper provides detailed information about the various factors that influence the production quantity of the industry. It also indicates that domestic consumption is not the only determinant of production quantity.
It highlights the role of the Government of India in the industry’s growth and the need for further reforms. The paper also examines the challenges faced by the industry in near future and the opportunities that can be reaped to ensure sustained growth. The main reason for doing this Research Paper is to find out about the potential of the pharmaceutical Industry in India so that its competitiveness is enhanced and then to identify the significant factors through Regression Analysis. 1. INTRODUCTION India Pharmaceuticals Industry is a booming sector which helps in overall growth of the economy.
India’s pharmaceutical industry is now the third largest in the world in terms of volume and stands 14th in terms of value. It is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. The pharmaceutical industry has been one of the fastest growing segments of the Indian manufacturing sector with an average annual growth rate of about 14%.. Its large pool of skilled technical workforce, low production costs and government support has enabled its transformation from an import-dependent country to a major exporting country.
According to the All India Organization of Chemists and Druggists (AIOCD), the pharmaceuticals industry in India will grow by over 100 per cent over the next two years. The current market leaders in pharmaceuticals industry are Ranbaxy, Pfizer, Glaxo Smith Kline, Cadila Healthcare Ltd. , Bayer, Merck, Abbott Lab. , Dr. Reddy’s Lab, and many more. Pharmaceutical is defined as an act of or pertaining to the knowledge or art of pharmacy, or to the art of preparing medicines according to the rules or formulas of pharmacy.
From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. 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. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share.
It is an extremely fragmented market with severe price competition and government price control. India’s leading drug manufacturers are becoming global players, utilizing both organic, growth, through the gradual development of their business, and mergers and acquisitions,(M&A) as they seek to boost their presence in existing markets and open up new ones. The domestic industry’s long-established position as a world leader in the production of high-quality generic medicines is set to reap significant new benefits as the patents on a number of blockbuster drugs are scheduled to expire over the next few years.
India’s long-established position as a preferred manufacturing location for multinational drug manufacturers is quickly spreading into other areas of outsourcing activities. Soaring costs of R&D and administration are persuading drug manufacturers to move more and more of their discovery research and clinical trials activities to the subcontinent or to establish administrative centers there, capitalizing on India’s high levels of scientific expertise as well as low wages.
In the words of Richard Gerster, the famous economist and activist from Switzerland, Indian pharmaceutical industry can be defined as a success story providing employment for millions and ensuring that essential drugs are available at affordable prices to the vast population of Indian sub-continent. The Indian pharmaceutical industry has witnessed a growth rate of about 10% over the last few years and is expected to touch US$ 12 billion by 2010. 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 drugs and pharmaceuticals exported are worth over US$ 3. 8 billion. India produces bulk drugs related to various therapeutic areas. Indian pharmaceutical industry manufactures over 400 bulk drugs and roughly 60,000 finished medicines used in different formulations. India is emerging as a global leader in the area of outsourced clinical research and contract manufacturing & research.
Contract research is increasing at the rate of 25% per year, and is expected to touch US $380 billion by 2010. The highly fragmented Indian pharmaceutical industry has around 30,000 players, out of which 330 are in organized sector. Indian pharmaceutical industry exports its products to more than 200 countries, including highly regulated markets of Europe, Japan, USA and Australia. The Good Manufacturing Practices (GMP) developed by the industry facilitates the production of different dosage forms.
During the current year 2009-10, Pharma was among the few sectors that managed to expand its revenues despite global recession and financial crises. Strong domestic demand, growing preference for generics worldwide and favorable rupee-dollar exchange rate helped the Indian Pharmaceutical sector.
Aggregate income of the drugs and pharmaceuticals companies for the first two quarters of the current year grew by 13 per cent and 7. 8 percent respectively as compared to previous year. As per Centre for Monitoring Indian Economy (CMIE), the estimated growth in aggregate income for the next two quarters is 9.5 per cent and 10. 2 percent respectively.
The Indian pharmaceuticals industry has grown from a mere US$ 0. 32 billion turnover in 1980 to approximately US$ 21. 26 billion in 2009-10. The country now ranks 3rd in terms of volume of production (10% of global share) and 14th largest by value. 2. LITERATURE REVIEW 2. 1) HISTORY The history of Indian pharmaceutical market in 1970’s was almost non-existent. Today, India has gained immense importance and carved a niche for itself in the pharmaceutical domain. In today’s world, India pharmaceutical industry ranks 4th in terms of volume and 13th in terms of value.
For example it might be anything like formulations, bulk drugs, generics, Novel Drug Delivery Systems, New Chemical Entities, or Biotechnology etc, Indian companies are dominating in the marketplace which was traditionally manned by MNCs. In 1930 in Calcutta the first pharmaceutical company called Bengal Chemicals and Pharmaceutical Works, which still is today as one of 5 government-owned drug manufacturers. Today in India Pharma Industry rank’s first of India’s science-based industries with wide ranges of capabilities in the complex field of drug manufacture and technology.
The industry is estimated to be the worth of $4. 5 billion, which is growing at 8-9% annually. It is one of the best and highly organized sectors. The sector specializes in term of technology, quality and range of medicines manufactured. The product of the industry ranges from simple headache pills to sophisticated antibiotics and also complex cardiac compounds. Pharma industry promotes the sustainable development in the vital field of medicines by boasting the quality producers and many units approved by regulatory authorities in USA and UK.
The companies associated with this sectors which are international have stimulated, assisted and spearheaded the dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. The growth of Indian Pharma Industry has grown tremendously since 2008-09 in terms of exports.
“The Indian pharmaceutical industry has grown from a humble Rs 1,500 crore turnover in 1980 to approximately Rs 1,00611 in 2009-10,” the pre-Budget survey said. In India the output of Indian Pharmaceutical industry increased to Rs260 billion in the financial year 2002, which accounts for 1.3% of the global pharmaceutical sector. The bulk drugs accounts for Rs54 bn (21%), the remaining Rs 210 bn (79%) for formulations. imports were Rs20 bn while exports were Rs87 bn in year 2002.
There is huge expansion of Domestic Pharma sector which estimated US$ 11. 72 billion (Rs 55454 crore) in 2008-09 from US$ 6. 88 billion (Rs32575 crore) in 2003-04. India exports its Pharma Products to various countries around the globe including highly regulated markets of USA, Europe, Japan and Australia. World’s highest pharmaceutical pollution is measured in India itself. As the researchers analyzed vials of treated waste.
Pharmaceutical Industry in India is one of the largest and most advanced among the developing countries. It provides employment to millions and ensures that essential drugs at affordable prices are available to the vast population of India. Indian Pharmaceutical Industry has attained wide ranging capabilities in the complex field of drug manufacture and technology. From simple pain killers to sophisticated antibiotics and complex cardiac compounds, almost every type of drug is now made indigenously. Indian Pharma Industry is playing a key role in promoting and sustaining development in the vital field of medicines.
Around 70% of the country’s demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and vaccines is met by Indian pharmaceutical industry. A number of Indian pharmaceutical companies adhere to highest quality standards and are approved by regulatory authorities in USA and UK. Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units and is very top heavy. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share.
There are also 5 Central Public Sector Units that manufacture drugs. These units produce complete range of pharmaceuticals, which include medicines ready for consumption by patients and about 350 bulk drugs, i. e. , chemicals having therapeutic value and used for production of pharmaceutical formulations. India is largely self-sufficient in case of formulations. More than 85% of the formulations produced in the country are sold in the domestic market. Some life saving, new generation under-patent formulations are imported, by MNCs, which they market in India. Over 60% of India’s bulk drug production is exported.
The balance is sold locally to other formulators. Pharmaceutical Industry in India has been de-licensed and industrial licensing for most of the drugs and pharmaceutical products has been done away with. Manufacturers are now free to produce any drug duly approved by the Drug Control Authority. Indian pharmaceutical industry got a major boost with the signing of General Agreement on Tariffs and Trade in January 2005 with which India began recognising global patents. After recognizing the global patent regime the Indian pharma market became a sought after destination for foreign players.
India holds the lion’s share of the world’s contract research business as activity in the pharma market continues to explode in this region. Over 15 prominent contract research organisations (CROs) are now operating in India attracted by her ability to offer efficient R&D on a low-cost basis. Thirty five per cent of business is in the field of new drug discovery and the rest 65 per cent of business is in the clinical trials arena. India offers a huge cost advantage in the clinical trials domain compared to Western countries. The cost of hiring a chemist in India is one-fifth of the cost of hiring a chemist in the West.
The Indian pharmaceutical industry has shown satisfactory progress in terms of infrastructure development, technology base and product use. It has shown domestic sales of US $ 4 billion and exports of over US $ 3 billion, during the fiscal year 2004-05, according to the Economic Survey 2004-05. The industry produces bulk drugs belonging to all major therapeutic groups requiring complicated manufacturing processes and has developed good manufacturing practices (GMP) compliant facilities for the production of different dosage forms.
The pharmaceutical industry is capable in developing cost-effective technologies in the shortest possible time for drug intermediaries and bulk actives without compromising on quality, which is realized through the country’s strengths in organic synthesis and process engineering. India has gained fame as a low cost producer of antiretroviral and supplier of the same to international organisations and more importantly to the needy patients in Africa.
It may be recalled that in a recent case of supplying anti-retroviral drugs to South Africa, the price quoted by the Indian firm was the lowest at US $ 350 per year per person compared to the US $ 1679 quoted by the multinationals. The Department of Chemicals and Petrochemicals in India is working on issue of price management of drugs, including making life saving drugs (LSD) available at reasonable prices, reducing trade margins on generic drugs and data protection. 2. 2) FEATURES OF INDIAN PHARMACEUTICAL INDUSTRY • India’s pharmaceutical industry is now the third largest in the world in terms of volume and 14th in terms of value.
• Fastest growing segment of Indian manufacturing sector with an average annual growth of about 14% • Employs around 3,30,000 people • The domestic pharmaceutical market estimated to be worth US$5. 1 billion, and comprises of 60% Indian and 40% multinational companies. • Indian firms produce nearly 60,000 generic brands in 60 therapeutic categories and between 350 and 400 bulk drugs. • Indian pharmaceutical companies export to around 150 countries • As per a recent survey, around 40% of the production is exported, out of which 65% is formulation and 45% is bulk drugs • Large skill base in process chemistry.
• Vast talent pool of sheer scientists and lower cost of infrastructure and manpower • Growing expertise with international regulatory compliance • High quality manufacturing with abundant capacities. 2. 3) SCOPE OF PHARMACEUTICAL INDUSTRY IN INDIA Over the years pharmacy has grown in the form of pharmaceuticals sciences through research and development processes. Pharmacy involves all the stages that are associated with the drugs i. e. discovery, development, action, safety, formulation, use, quality control, packaging, storage, marketing, etc. This profession has a large socio-economic relevance to the Indian economy.
In India this sector is among the future economy drivers. It is committed to deliver high quality drugs and formulations at an affordable price, so that majority of people can afford them. The transformation of the sector from conventional pharmacy to drug experts, which is both desired and necessary to reach the global standards, has already made commendable progress. Liberalization, privatization and globalization (LPG) have helped the Indian pharmaceutical companies to achieve international recognition. It’s remarkable to note that today several Indian pharmacy companies are approved by US FDA and are listed at NASDAQ.
The analysis of Indian pharmaceutical sector shows that the innovative products, product life cycle management and marketing management steps taken by the pharma companies have led them to flourish. The Indian pharmaceuticals market is expected to reach US$ 55 billion in 2020 from US$ 12. 6 billion in 2009. This was stated in a report title “India Pharma 2020: Propelling access and acceptance, realizing true potential” by McKinsey & Company. In the same report, it was also mentioned that in an aggressive growth scenario, the pharma market has the further potential to reach US$ 70 billion by 2020.
The domestic pharma market is estimated to touch US$ 20 billion by 2015. The healthcare market in India to reach US$ 31. 59 billion by 2020. The sale of medicines in the country stands at US$ 9. 61 billion, which is expected to reach around US$ 19. 22 billion by 2012. Thus India would really become a lucrative destination for clinical trials for global giants. 2. 4) CURRENT SCENARIO According to the Economic Survey (2006-07), the pharmaceuticals industry had achieved a turnover of about US$ 12 billion in 2005-06, and is expected to grow by 13% in 2007. Its pharma export value reached about US$ 4.
7 billion during 2005-06. Pharmaceutical industry accounts for about 2. 91% of total FDI into the country. The FDI in pharmaceutical sector is estimated to have touched US$ 172 million, thereby showing a compounded annual growth rate of about 62. 6%. Drugs and pharmaceuticals sector is at 8th rank in India’s top 10 FDI attracting sectors. According to the Economic Survey for the year 2006-07, the value of pharma output has increased ten times over the last 15 years. From Rs. 50 billion in 1990 it has grown to Rs. 550 billion (US$ 12 billion) in 2005-06.
Driven by growing number of pharmaceutical units, increased knowledge skills, improved quality and increasing national as well as international demand, India is now recognized as a leading global pharma player 2. 5) 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 2015, 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.
2. 6) CLASSIFICATION OF PHARMACEUTICAL INDUSTRY The Indian pharmaceutical industry can be classified into organized and unorganized sectors. Accounting for over 70% of total sales, the organized sector has about 250 manufacturing and formulation units. On the basis of management control, the organized sector can be further classified into MNCs and Indian companies.
On the basis of the product manufactured, the pharmaceutical industry can be classified into: •Bulk drugs: They are the key ingredients that form the basic raw material for the manufacture of formulations. •Formulation: Particular mixture of a bulk drug or a combination of different bulk drugs. Formulations constitute nearly 81% and bulk drugs account for the remaining 19%. Indian pharmaceutical industry has about 2400 licensed manufacturers and more than 100,000 drugs. On the basis of formulations, the pharmaceutical industry can further be classified into: •Prescription medicines: Also known as ethical formulations.
They can be dispensed only on the prescription from a qualified medical practitioner. •Over-the-counter medicines: Also known as OTC formulations. They can be dispensed even in the absence of prescription, e. g. analgesics, cough drug, etc. On the basis of formulations patent, pharmaceutical industry can be classified as: •Branded formulations: They are ethical formulations prepared using a bulk drug under product patent and are marketed by a single pharmaceutical company. •Generics: They are formulations that do not contain any patented bulk drug and can be manufactured by more than one company.
2. 7) GOVERNMENT INVESTMENTS AND INITIATIVES Investments A six-member pre-trade mission from Maryland, US, visited the Ticel Biotechnology Park and the biotechnology infrastructure facility, to explore areas of collaboration in biotechnology and pharmaceuticals. The advance planning team met with industry representatives and officials to explore partnerships and investment opportunities Aurobindo Pharma Ltd has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Gabapentin tablets.
Gabapentin tablets are the generic equivalent of Neurontin tablets of Pfizer Pharmaceuticals, indicated for the treatment of partial seizures and other nervous system disorders. Aurobindo now has a total of 139 abbreviated new drug application approvals including 110 final approvals and 29 tentative approvals from the US Strides Arcolab Ltd, maker of intellectual property led pharmaceutical products announced that it has received US FDA approval for clindamycin injection, USP, an antibiotic used to treat bacterial infections.
Sanofi-aventis Group is setting up its largest vaccine making facility in Hyderabad. “The new plant, our biggest facility in the world, is coming up here,” according to Christopher A Viehbacher, Chief Executive Officer, Sanofi-aventis GlaxoSmithKline (GSK) has set aside US$ 1-2 billion to support its expansion plans in India. “We can afford a deal worth US$ 1- US$ 2 billion in the Indian pharmaceutical space,” as per Andrew Witty, global CEO, GSK Lupin is set to enter the US oral contraceptive market.
The company has received final approval from the US Food and Drug Administration (USFDA) to market a generically similar version of Watson’s oral contraceptive NOR-QD tablets Singapore-based pharmaceuticals company Invida has agreed to acquire New Delhi’s Shalaks Pharmaceuticals for US$ 25 million A three-day pharma business meet of India, Latin America and Caribbean (LAC) took place on September 28, 2011. “The objective of the meeting was to provide business opportunity to Indian pharma exporters, especially Small and Medium Enterprises,” as per P V Appaji, Executive Director, Phamaceutical Export Promotion Council.
Daiichi Sankyo Company Ltd and Ranbaxy Laboratories Ltd have announced expansion of their business in Mexico, to maximise their hybrid business model. As part of the plan, the two companies will launch Olmesartan Medoxomil, used to treat high blood pressure, in Mexico before the year-end Aventis Pharma Ltd, a unit of France’s Sanofi, plans to acquire unlisted Universal Medicare’s nutraceuticals business to boost its consumer healthcare and wellness segment in India. Aventis was close to buying the over-the-counter (OTC) business of Universal Medicare for about US$ 109.
5 million Government Initiative A high-level inter-ministerial group chaired by the Prime Minister Mr Manmohan Singh has decided to continue with the 100 per cent foreign direct investment (FDI) regime in the pharmaceuticals sector.
“There is going to be no cap. 100 per cent FDI would be allowed,” as per Arun Maira, Member, Planning Commission. Marking a new trend of investments from foreign players in the Indian pharma sector, the need for overseas investors to get a no-objection from their JV partner before venturing out on their own or roping in another local firm has been removed by the Pharmaceuticals Export Promotion Council.
It is expected that this measure will promote the competitiveness of India as an investment destination and be instrumental in attracting higher levels of FDI and technology inflows into the country. The Union Minister of Commerce and Industry and Minister of Trade and Industry, Singapore, have signed a ‘Special Scheme for Registration of Generic Medicinal Products from India’, which seeks to fast-track the registration process for Indian Generic medicines in Singapore.
The Department of Pharmaceuticals has prepared a “Pharma Vision 2020” for making India one of the leading destinations for end-to-end drug discovery and innovation and for that purpose provides requisite support by way of world class infrastructure, internationally competitive scientific manpower for pharma research and development (R&D), venture fund for research in the public and private domain and such other measures. 2. 8) MARKETING STRATEGY 23 March, 2010- As in other industries, marketing plan for advertising or promoting products is crucial to pharmaceutical industry too.
However, the pharmaceutical marketing strategies (as well as advertising strategies) are different from other businesses because pharmaceuticals or drugs can negatively affect both- the end consumers or the patients and the health care profession. Also, the advertising strategies included in the marketing plan of any pharmaceutical company is not ‘direct to consumer’. Any pharmaceutical marketing strategy targets the health care professionals or the Doctors who in turn prescribe the drugs to the patients (end consumers) liable to pay for the products.
However, a few countries (till date two countries- New Zealand and United States) allow Direct-to-consumer advertising (DTC advertising) for pharmaceutical products. Traditional Pharmaceutical Marketing Strategies The pharmaceutical companies traditionally adopt four major marketing strategies for promoting their products- ? Giving drugs as free samples to doctors; ? Providing details of their products through journal articles or opinion leaders; ? Gifts that hold the company logo or details of one or multiple drugs; and?
Sponsoring continuing medical education. Pharmaceutical representatives, also popularly known as medical representatives, are the major pharma marketing strategy for marketing drugs directly to the physicians. Typically, the expense of this sales force of any pharmaceutical company comprises anything ranging from 15-20% of annual product revenues. However, with changing times and new developments, the pharmaceutical industry faces some very serious strategic issues. New Pharmaceutical Marketing Strategies- Why Needed?
While most of the pharmaceutical companies successfully employ a host of marketing strategies to target various types of customers, the current business and customer trends are continuously creating new challenges as well as opportunities for increasing profitability. If the pharmaceutical companies want to improve their Return-On-Investment (ROI), they have to adopt new communication technologies (digital media) along with their conventional sales force of medical representatives. They really need to adopt this multi channel marketing strategies for the following reasons.
? The concept of blockbuster drugs is dying out for big pharmaceutical companies where 2-3 drugs were good enough to pay back the whole investment for a larger number of manufactured drugs. Now the limited prospective for blockbuster drugs (thanks to low investment on R&D and patent expiry) makes it essential to focus on more specialized drugs sold in lower volumes. And when there is low volume products, sales driven marketing strategy (with high cost of sales force) is not feasible.
? As far as small pharma companies are concerned, they already have small sales force. However, with the use of digital media, having a lower investment cost (both for the company and its targeted customer) they can easily get return on investment. ? Customer behavior (doctors behavior) is rapidly changing. Doctors, who are getting more and more busy with increasing patients, can be hardly seen by the medical representatives. They are more inclined towards Internet for obtaining relevant information.
It is the time for pharmaceutical companies to build their marketing strategies around this digital media. Website marketing, online marketing, blogs, social media, forums, chat rooms and any other such media is an influential means to present the company’s products and offers through opinion leaders. The Right Pharmaceutical Marketing Strategy The right marketing strategy for any pharmaceutical company would be to build on proven strategic marketing principles, along with a focus on changing customer behavior.
Use of digital media through Internet marketing plan is the best marketing strategy that can provide the basis for a changed business model. However, there should be some planning for using digital media for marketing too. It should be a multi channel marketing strategy but should identify the target audience. Every digital media used for all people can not be called the right marketing strategy. The focus should be on the high value customer segment for pharmaceutical products. 2. 9) ADVANTAGE IN INDIA A)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. B)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. C)Legal & Financial Framework: India has a 53 year old democracyand hence has a solid legal framework and stron.