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PROJECT REPORT

Market Analysis of Doxophylline,


Gemifloxacin and
Deflazacort in Jaipur

at
Dr. Reddy Laboratories Ltd.

A REPORT SUBMITTED IN FULFILLMENT OF THE REQUIREMENTS


OF PGDM PROGRAM OF ACCMAN INSTITUTE OF
MANAGEMENT,
GREATER NOIDA

Submitted to: Submitted by:


Area Sales Manager Roopesh
Kumar Sain
Dr. Reddy’s Lab. Ltd. PGDM
Jaipur
Declaration
Batch: - 2008-10

CERTIFICATE

This is to certify that the project work done on “Market Analysis of

Doxophylline,Gemifloxacine and Deflazacort in Jaipur” submitted to Mr. Nandan

Singh (Area Sales Manager) is in partial fulfillment of the requirement for the award of

Post Graduate Diploma in Management, is a bonafide work carried out by me at Dr.

Reddy’s Laboratories Ltd.

DATE: 11/July/2009 Roopesh Kumar Sain

Roll No. 44
PREFACE

“The Companies that best satisfy their customer will be the winners. It is the special

responsibility of marketers to understand the need and wants of the market place and to

help their companies not merely looking for sales they are investing in long term,

mutually satisfying customer relationships based on delivery quality, service and value.”

Philip Kotlar

Summer Training is a necessary part for fulfillment of PGDM course. The Summer
Training has given a chance to try and apply the academic knowledge into the Business
Environment and gain insight of Corporate Culture.

I undertook my training at Dr. Reddy’s Laboratories Ltd., a top ranking and listed

organization in the pharmaceutical industry. According to industry specialists,”Dr. Reddy

has the art of reverse engineering of the production process and made it highly cost-

efficient.” With the help of effective marketing strategies DRL not only successfully

establishes products in the market but also cover a good market share and earn a good

amount of profit.

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ACKNOWLEDGEMENT

It was a beatifying experience to be attached to such a reputed organization, which is a

pharmaceutical company and known for its aggressive adopting and marketing strategies

in India. I express my deep sense of gratitude to Dr. Reddy’s Laboratories Ltd. for

providing me an opportunity to complete my summer training project.

I would like to thank Mr. Nandan Singh (Area Manager) and his team for their

constant support and providing the itinerary at all stages of the project.

I also offer my sincere gratitude to Prof. Rajeev Kumar, Director and Prof.

S.C.Ghosh,Chief CRIC of Accman Institute of Management for his useful

suggestions, help and support.

With regards,
Roopesh Kumar Sain
PGDM (2008-2010)

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S.No Contents Page No.
.
1 Executive Summary 5
2 Introduction 7
3 Objective 11
4 About Dr. Reddy’s Lab. Ltd. 12
a) History of company
b) Board & Management
c) Infrastructure
5 Pharmaceutical Industry 17
6 Heriarchy of marketing department 26
7 Molecule Introduction 27
a) Gemifloxacin
b) Deflazacort
c) Doxophylline
8 Managing sales force 30
9 Product positioning 31
10 Competitor analysis 32
11 SWOT analysis 35
12 Field work 37
13 Market surfing 39
14 Research & methodology 43
15 Data analysis 45
16 Finding 55
17 Recommendation 56
18 Conclusion 58
19 Bibliography 59
20 Questionnaire 60

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EXECUTIVE SUMMARY

This project was undertaken for a period of eight weeks at Dr. Reddy’s Laboratories Ltd.

for the partial fulfillment of the PGDM (Post Graduate Diploma in Management) course

from Accmam Institute of Management, Greater Noida. The objective of the project was

to evaluate the present market share of DRL, deal with retailers to lure more customers and to

ultimately increase its market share. To complete this project, a survey was conducted on

retailers with the help of questionnaire in the Jaipur. The sample size was decided by Mr.

Nandan Singh, which were 42 retailers. All the retailers selected in the sample had all three

products of DRL (Doxobid, Gem One, and Asteroid). After the survey, it was observed that

sale of all three drugs is good and the same would directly have an impact on the market share

of the company. In SMS Hospital region, a lot of marketing strategies had been already

applied by the company. Among these strategies, strategy for Asteroid was an absolutely new

concept and it had an innovative way to attract more & more retailers.

The basic purpose of these strategies is to enhance the demand of products by temporarily

increasing their value to the purchaser. A major area of improvement that the company should

look at is retailer awareness about retailer centric schemes. The same came to light during the

survey, wherein it was observed that most of the retailers do not have proper information even

about retailer centric schemes being offered by the company. The MR of the company is

doing his job with good result; they are well equipped with product scientific knowledge.

They should be properly equipped by complete knowledge of the products so that they can

give proper knowledge to the retailers. The company should be more liberal in giving the

little bit knowledge to retailer about the products so that they can sale company’s products.

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INTRODUCTION

India’s second largest pharmaceutical company by revenue, Dr Reddy’s Laboratories Ltd


(DRL) .The Company consists of Active Pharmaceutical Ingredient Business (API),
Custom Pharma Services (CPS), Generics, Generics Biopharmaceuticals,
Differentiated Formulation, New Chemical Entities (NCEs).

API

CPS

Dr. Reddy’s
Business

Generics Differentiated
Generics Bio- Formulation
Pharmaceutica
ls NCEs

API include Ciprofloxacin, Omeprazole and Sumatriptan Succinate of Canadian DMFs,


Ibuprofen, Ranitidine HCl form 1 and Cipro HCl of CEP and Omeprazole,S+Ibuprofen
and Valsartan, Ramipril, Risedronate Sodium and Nizatidin of US DMFs. Its CPS is, the
largest CPS player from India and a partner-of-choice to innovators, offering top-end
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technical expertise, tailor-made pharma solutions and a track record of bringing
innovations to the market quickly, efficiently and economically. Generic business of
company is always a challenge for other pharma companies. It includes branded generics
and unbranded generics. In the branded generics include Omez, Ciprolet, Nise, Enam,
Ketorol, Exifine and Cetrine enjoy leadership positions in several key markets, including
India, Romania, Venezuela, Russia & the CIS countries. Dr. Reddy’s brands are
available in nearly 100 countries and generate revenue is more than Rs.69.4 billion.
Some of DRL's brand names are old as its age, but the corporation is relatively young.

DRL was founded in 1984 by a simple man Dr. Anji Reddy. Betapharm (Germany) was

acquired in 2006 (which is the fourth largest generic producer in Germany), with the help

of this company.DRL is able to covered a large market share in the generic section in the

global market.

DRL offers product choices to meet a broad variety of needs and preference - from fun-

for-you items to product choices that contribute to healthier lifestyles.

DRL’s aim is “To provide affordable and innovative medicines for healthier lives. We

serve society’s important needs for affordable medicines through the API component of

PSAI and the Global Generics business, and for innovative products that solve unmet

medical needs through the CPS component of PSAI and the Proprietary Products

Businesses.”

Shareholders

DRL (symbol: RDY) shares are traded principally on the New York Stock Exchange in

the United States. The company is also listed on the NSE (symbol: DRREDDY) and BSE

stock exchanges. DRL has consistently paid cash dividends since the corporation was

founded. Following table show the complete history of dividend:

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DI
VI
DE
ND
HI
ST
O
RY

Year ended Interim % Final % Total %

2000 - 01 - 40 40
2001 - 02 100 50 150
2002 - 03 - 100 100
2003 - 04 - 100 100
2004 - 05 - 100 100
2005 - 06 - 100 100
2006 - 07 - 75 75
2007 - 08 - 75 75

Corporate Citizenship

DRL, as a corporate citizen, have a responsibility to contribute to the quality of life in the

communities. This philosophy is expressed in the sustainability vision which states:

“DRL’s responsibility is to continually improve all aspects of the world in which we

operate – environment, social, economic -- creating a better tomorrow than today.”

The vision is put into action through programs and a focus on environmental stewardship,

activities to benefit society, and a commitment to build shareholder value by making DRL

a truly sustainable company.

DRL Headquarters
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DRL World Headquarters is located in Hyderabad (Andhra Pradesh). The headquarter is

beautifully designed according to environment of Hyderabad. The manufacturing units

consist all the essential facilities which is necessary for an organization.

The collection of works is focused on major twentieth century art, and features works by

masters. The gardens originally were designed by the world famous garden planner,

Russell Page, and have been extended by François Goffinet. The grounds are open to the

public, and a visitor's booth is in operation during the spring and summer.

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OBJECTIVE OF THE STUDY

⇒ Analysis of the Doxophylline, Gemifloxacine and Deflazacort in JAIPUR;

⇒ Impact of schemes on sales;

⇒ To give recommendations for enhance market share;

⇒ To analyze the proper functioning of drugs;

⇒ To check out the availability of drugs;

⇒ To study the factors which are important to attract the customers;

⇒ Kind of distribution channel adopted by company;

⇒ To know about salesman’s effectiveness & attitude.

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HISTORY OF DR. REDDY

Kallam Anji Reddy of Tadepalli village, Andhra Pradesh is a pharmacist. He completed


his study in science stream in India. He started his career working for the state owned
Indian Drugs and Pharmaceuticals Limited. He was the founder managing director of
Uniloids Ltd and worked there from 1976 to 1980 and Standard Organics Limited where
he worked from 1980 to 1984.

In the year 1984, Dr. Reddy laid the foundation of Dr. Reddy Laboratories Limited in
Hyderabad.

The company established new standards in the Indian Pharmaceutical Industry and
transformed the Indian bulk drug dependency of the mid-80s into a self-sufficient industry
in the mid-90s. Finally the Indian Pharmaceutical industry developed into an export-
oriented industry and ever since continues to remain the same. In the year 1993, Dr.
Reddy's Laboratories emerged as India's first drug discovering company and on April
2001 it was the first non-Japanese, Asian pharmaceutical company which was listed on
New York Stock Exchange. During 90s, the company introduced branded finished
formulations in the less regulated markets in CIS, Middle East, South East Asia and
Africa. From late 90s, the company has started exploiting US patent and regulatory
system to introduce generic products in time, to gain market exclusivity and establish
brand image. It is the first Indian based company to receive 180 days exclusivity for a
generic drug in USA. Its latest product Amlodipine Maleate has made a sale of US$ 2.0
billion during 2002. The company has global operations with a strong focus on US,
Europe, Russia, China and India. Its portfolio of products consists of 70 Active
Pharmaceutical Ingredients (API), 100+ Branded Formulations, 11 Generic
Pharmaceuticals, 1 Specialty pharmaceutical, 7 new chemical entities in clinical trials. It
has world class manufacturing facilities consisting of 6 US FDA approved API plants, 7
formulation plants out of which one is dedicated for US and European market. Its sales
turnover for2002-03 was US$ 380 m. This comprised of 35% API, 38% Branded

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Formulations, 24% Generics and others 3%. Its revenue came from US (32%), India
(36%), Russia (9%), Europe (8%) and others (15%).

DRL says it is keen to generate new streams of revenue in order to continue growing and
beat the competition in manufacturing where barriers to entry are comparatively less.

DRL’s strategic move is geared towards exploiting an emerging opportunity in the global
pharma industry. “Multinationals are now increasingly looking at outsourcing business
functions such as process synthesis, analytical development, and manufacturing, to focus
on drug discovery and brand management in an attempt to develop cost effective business
models,” according to a report by consulting firm KPMG and the Confederation of Indian
Industry, a lobby group.
DRL is positioning itself as a service provider that will enable companies to take their
innovations to the market in the most cost-efficient and least time consuming fashion.
For DRL, building a sustainable organization is not a trend it blindly follows; it is intrinsic
to how it has operated for decades. To it, a commitment to sustainability means a
commitment to fulfilling its obligations to all of its stakeholders -- its customers &
partners, employees, shareholders and society. Thus, while optimizing profitability may
be one measurement of its performance, it also judges its success by its performance with
regard to the communities in which it lives and work, the environment and its employees.
DRL understand that it is only by increasing value to all of its stakeholders that it can
build an ever flourishing and lasting organization.
The capabilities of DRL are:

 Deep Manufacturing Expertise

 Globally Synchronize Supply Chain

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 Regulatory Performance

 Quality & Product Responsibility

Board & Management Team

Whole-Time Directors-

Dr. Anji Reddy G V Prasad Satish Reddy


Chairman Executive Vice Chairman and Managing Director & Chief
Chief Executive Officer Operating Officer

Management Team-

Abhijit Mukherjee Amit Patel Dr. Cartikeya Reddy


President,Pharma Services Senior Vice President & Senior Vice President &
& Active Ingredients (PSAI) Head - North America Head- Biologics

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Jeffrey Wasserstein KB Sankara Rao Prabir Jha
Executive Vice-President, Executive Vice President, Senior Vice President,&
NA Specialty Integrated Product Development Global Chief- HR

Advisor, Dr. Rajinder Kumar Saumen Chakraborty


Legal & Strategy President, President- Corporate &
R&D, Commercialization Global Generics

Umang Vohra VS Vasudevan Vilas Dholye


Senior Vice President President & Head of Executive Vice President &
& Chief Financial Officer Europe Operations Head – Formulations
Manufacturing

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DRL GROUP’S INFRASTRUCTURE

Manufacturing Bandwidth & R&D Capabilities:

1. Pharma Services & Active Ingredients-

• 6 FDA-inspected plants in INDIA


• 1 Cytotoxic facility
• 1 FDA-inspected plant in Mexico
• 1 FDA-inspected plant in Mirfield, UK
(2 in Hyderabad, INDIA; 1 in Cambridge, UK)

2. Product Development-

• Integrated product development capabilities, that include API development,


formulation development and analytical development skills
• One Integrated product development facility in Hyderabad, India

3. Global Generics-

• 6 Formulation plants in India ( 1 USFDA inspected)


• 1 USFDA inspected plant in USA

4. New Chemical Entities-

• Conduct research in areas of metabolic disorders, cardiovascular


indication and cancer

5. Biologics-

• Biologic development centre


• GMP production
• E coli and mammalian cell platform

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INDIAN PHARMACEUTICAL INDUSTRY

1. Introduction:

Globalization is widely seen as a dominating phenomenon of 21st century encompassing


world wide integration of financial systems, trade liberalization, deregulation and market
opening resulting in a global market and patterns of industrial development. In last few
decades it is evident that firms and institutions from peripheral countries or developing
world are making sustained and deliberate effort to take advantage of the new
opportunities. The rise of East Asia followed by growth in China and India has led to
emergence of new breed of Multinational Enterprises (MNEs) from these countries. By
the end of 2004 China emerged as fifth largest outward direct foreign investor with a total
US $ 37 billion and was the third largest exporter after Germany and the US (Child and
Rodrigues, 2005). Similarly albeit on a smaller scale in the last decade Indian economy
saw a dramatic growth in overseas investment by the Indian industry. The firms from
latecomer countries are making inroads in sectors such as manufacturing (steel and
pharmaceuticals) and services (IT) and trading as well as high technology sectors like
semi-conductors. Some of the firms such as Infosys, Lenovo, Ranbaxy and Espat are now
competing at a global level. Multinational enterprises from developing countries are a
clear representation of a sustained increase in outward Foreign direct investment (FDI)
from developing countries which has risen from $60 billion in 1980 to $ 869 billion in
2000 and to a total in excess of $1trillion for the first time in 2004 (UNCTAD, 2004).
Outward FDI from developing countries accounts for more than 10 percent of the world’s
outward FDI. The rise of outward FDI and new MNEs that embody it, from economies
such as India, China, Korea, Singapore, Malaysia and Taiwan is a key phenomenon for
the world economy in last decade. It shows that firms from developing countries are rising
to compete at the frontiers of the world market and this research also focusing on the
strategies they have adopted to achieve that.

The first wave MNEs from the developing world documented by authors such as Kumar
and mcleod (1981) and Lall (1983) succeeded as international players despite many
difficulties. Their success was due as much to the difficulties encountered at home as to
the incentives driving internationalization. One of the most salient features of first wave
MNE activity is the direction and motivation of FDI compared to western MNEs. Much
empirical work on first MNEs indicated strong and marked trend investments in
neighboring and other countries which were at a similar or earlier stage of their
development. Prominent first wave countries such as India, Philippines, Argentina and
Columbia did not show any significant increase in either the level of the total outward

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FDI, nor a significant shift towards developed country hosts. But the arrival of the second
wave MNEs from developing countries represents quite a different phenomenon.
First wave countries experienced very low or negative economic growth rate whereas
second wave countries grew rapidly over the intervening decade and half. This has been
further enhanced by fundamental changes in the world economy which were a direct
result of globalization. Globalization has created a more broad and competitive market
across countries due to convergence of production and industrial patterns. As a result
firms need to have 4 competitive advantages that are globally viable rather than
domestically. Most of these developing countries also went through a fundamental shift in
the policy orientation from an import substituting role to an export oriented outward
economy. Firms in these countries now faced competition in domestic market with global
firms and needed upgrade their capabilities to survive. These changes had a profound
impact in creating a second wave of MNEs from developing countries. Therefore
Mathews (2006) argues that analysis of second wave requires different perspectives that
differ from those created to account for outward FDI from developed countries, and the
first wave of MNEs from developing countries. Initial analysis of second wave of MNEs
reveals that overseas move of firms in the second wave is a result of the ‘pull factors’ that
are drawing firms into global connections unlike ‘push factors’ that drove firms as stand
alone players in the first wave (Mathews, 2006). Dunning et al. (1997) suggest that in the
case of second wave of MNEs from East-Asian countries such as Taiwan and Korea were
subsidized by governments with government policy interacting with firm strategies. The
rise of second wave MNEs from emerging countries is less driven by cost factors per se,
but more by a search for markets and technological innovations to compete successfully in
the Global economy (Yueng, 2000). The sudden appearance of the second wave of firms
and their capacity to create competitive positions to existing incumbents has raised
interesting questions as they are not simply occupying space vacated by incumbents
instead in many cases they are creating new economic space by their organizational and
strategic innovation. Thus the changes in the world economy, specifically its globally
interlinked character is responsible for driving the new approaches to and patterns of
internationalization in firms from peripheral countries. Therefore Mathews (2006)
suggests that existing theories and framework of internationalization have failed to
capture organization and strategic innovations adopted by developing country MNEs for
new modes of internationalization. In this context the Indian pharmaceutical industry
provides an ideal case to investigate approaches and motives of second wave MNEs firms
from developing countries. From the beginning of the 1990s, the Indian government
started liberalization by removing restrictions on trade such as regulations on FDI and
opened Indian market to overseas firms. As a result of liberalization policy Indian
Economy witnessed dramatic growth, changes in domestic market and firm activities
specifically in relation to overseas expansion strategies. The cumulative number of
overseas project approved during the 1990s is estimated to be 2652, a nearly 11 fold
increase from the number of projects permitted during 1975-90 (230) (Pradhan,2004). The
growth of overseas investment is been characterized by significant changes in location
and sectoral distribution. In the 1990s the majority of investments has originated from the
service sector and was increasingly developed country-oriented with majority ownership
in most cases. The most important destination of Indian outward FDI to date is the USA
which accounted for 19% of total cumulative outflows from 1996-2003.

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In 2005 Indian firms acquire 136 firms overseas with a total value of US $4.3 billion. The
Indian pharmaceutical Industry is at the forefront in international expansion compared to
other manufacturing sectors in the Indian Economy.

The Indian pharmaceutical industry is the thirteenth largest in the world in terms of
market output; accounting for a market of about US$ 2.5 billion (Ramani, 2002). It is
ranked as the most advanced pharmaceutical industry amongst developing countries and is
one of India’s best science-based industries. Indian firms have been investing abroad for
many years but it is only since the late-1990s that outward FDI flows have risen
considerably. The liberalization of government policies and relaxation of regulations on
FDI abroad have helped Indian firms to expand internationally. In the last decade some
Indian pharmaceutical firms have successfully internationalized their operations and
emerged as a major producers and suppliers of generic drugs all over the world. This
study of internationalization motives and strategies adopted by Indian Pharmaceutical
firms. In the absence of more systematic longitudinal firm level data this research is based
on case study evidence. The findings suggest that Indian pharmaceutical firms are
accessing advanced markets and acquiring new technology through the process of
internationalization. Indian firms augmenting existing skills in production capabilities and
process R&D by acquiring technology focused firms in advance markets. The analysis
suggests that Indian pharmaceutical firms have adapted to the realities of globalization
and are finding new niche through the process of internationalization.

2. The Indian pharmaceutical industry:

India currently represents just US $6 billion of the $550 billion global pharmaceutical
industry, its share is increasing at 10 % a year. The organized sector of India’s
pharmaceutical industry consists of 250 to 300 companies, which accounts for 70 % of the
market, with the top ten companies representing 30%. The Indian pharmaceutical industry
has developed wide ranging capabilities in the complex field of drug process
Development and production technology. It is well ahead of other developing countries in
process R&D capabilities and the range of technologically complex medicines
manufactured. The Indian government adopted a new Patents Act in 1970, which laid the
foundations of the modern Indian Pharmaceutical industry. It removed product patents for
pharmaceuticals, food and agro-chemicals, allowing patents only for production
processes. The statutory term for production processes was shortened to five years from
grant or seven years from application. The 1970 Patent Act greatly weakened intellectual
property protection in India, particularly for pharmaceutical innovations. It started the era
of reverse engineering where firms developed new products by changing their production
processes like Dr. Reddy. Trained manpower, comparative ease of imitation and a strong
chemistry base among Indian research institutes supported manufacturers and gave the
Indian pharmaceutical industry its current profile. The industry’s exports were worth more
than US $ 492.30 in 2005-06 and they have been growing at a compound annual rate of
22.7 percent over the last few years (National pharmaceutical policy, 2006).

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The value of the Indian Pharmaceutical industry’s overseas acquisition has grown from
just US $8 million in 1997 to $116 million in 2004. Indian firms have acquired over US
$1 billion worth of pharmaceutical companies overseas in 2005. There are 3 developments
which are pushing expansion of the Indian pharmaceutical industry into overseas markets;

A. Opportunities opened in the US generic market due to the Hatch-Waxman Act,


B. Increasing outsourcing by MNC pharmaceutical firms and
C. Strengthening of patent laws in the domestic market.
D. Implement all these techniques in India for producing good medicines.

These three developments are creating new challenges and opportunities for Indian
industry and internationalization is one of route adopted by Indian to succeed in this new
environment. The generic opportunity is a result of the passing of the Hutch Waxman Act
in the US in 1984. Under this new law, manufacturers of generic drugs no longer had to
go through a lengthy period of extensive clinical trials in order to market a generic drug -
demonstration of bio-equivalence was sufficient to acquire a patent on a generic drug.
procedures were established for the resolution of disputes between branded drug
manufacturers and generic manufacturers. Western markets were a lucrative business
opportunity and the low cost advantage enjoyed by Indian firms on account of the cheap
availability of scientific labour combined with scale economies inherent in the
manufacture of bulk chemicals made for big margins. Between 1999 and 2005 drugs
worth $ 64 million went off patent allowing generic companies to take advantage of better
business opportunities. In the generics industry prescription drugs worth $40 billion in the
US and $25 billion in Europe are due to loose patent protection by 2007-08. In 2004 the
US senate passed the Greater Access to Affordable Medicine Act diluting some of the
proinnovator provisions of 1984 Hatch-Waxman Act, giving a big boost to the generic
business in the US. Similarly Europe is emerging as a key market and a potential growth
driver. The size of market in 2006 was US $ 14.2 billion with Germany, France, the UK
and Italy accounting for more than 50% of market. Governments in Europe are trying to
reduce healthcare costs by embracing generic drug companies. Liberalization facilitated
the ability of Indian firms to exploit this opportunity to market generics drugs to the US
and other Western economies. Indian firms are preparing themselves to take a share of
this increasing global market. Indian drug manufacturers
currently export their products to more than 65 countries worldwide; the US being the
largest customer. However Indian firms face some difficult challenges such as non tariff
barriers, decreasing profits in the generics market, competitive threats from big pharma
MNEs and reputation in western markets. For example, US regulation disqualifies Indian
firms from bidding for government contracts and Indian firms have to submit separate
Applications for each state even when firms have FDA approved products and facilities.
Another challenge is the reduction in profit margin due to intense competition from
Chinese and Eastern European manufacturers as well as authorized generics produced by
main manufacturer. Currently Indian industry is estimated to account for 22% of generics
in the world market. Indian firms are aiming to move up the value chain by developing

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capabilities to produce ‘super generics’ rather than ‘generics generics’ to branded
generics.
Furthermore, stronger patent protection under the new patent law of 1999 has shut down
the avenues for exploitation of generics opportunity in domestic market, but promised
large rewards to Indian firms that could leverage their reverse engineering capabilities in
advanced markets. The stronger patent law restricts reverse engineering of newly patented
molecule, thus affecting an important source of growth for Indian firms. Also
multinational pharmaceutical firms have entered India after 2005 and using the same
resource base as Indian firms to compete in the Indian domestic market further increasing
pressure on profit margins of Indian firms. The contract research and manufacturing
services (CRAM) market has emerged as huge opportunity for the Indian pharmaceutical
industry. According to Frost and Sullivan (2005), the global outsourcing market is worth
$37 billion and growing at almost 11%; 50% of the contract manufacturing market is in
North America, 40% in Europe and just 10% in Asia and the rest of the world. Indian
firms possess requisite capabilities to cater for the requirements of outsourcing markets,
still India accounts for barely 1.5% of the global CRAM industry. Due to untested patent
protection law and lack of data protection MNC firms are reluctant to outsource early
stage R&D work to Indian firms. Therefore Indian firms are trying to increase their share
in the outsourcing market by moving closer to the market.

Geographically the overseas acquisition by Indian pharmaceutical firms continues to be


directed at developed countries specifically the US and Europe (Table 1). Out of 32
acquisitions listed in Table 1 only 6 are in developing markets and the remaining rest of
26 are in advanced markets such as the US and Europe. The major acquisitions are in the
area of marketing although some companies are investing in building manufacturing and
R&D capacities in developed markets. Indian companies have already established
manufacturing plants in the US, Europe, Brazil, Russia and China.

Table 1 Recent acquisition by Indian pharmaceutical firms


Company Focus area Year Target Value
US $ Million
Dishman Contract 2005 Syprotec (UK) 93.5
Pharma manufacturing
and research
service
Dr. Reddy’s US generics, 2004 Trigenesis (US) 11
Laboratories speciality
products, APIs, n/a BMS Laboratories and 16
formulations, Meridian
custom Health care
synthesis 2005 Roche’s API Business 59
(Mexico)

2006 Betapharm 572

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Glenmark Drug discovery 2004 Kinger Lab ( Brazil) 5.2
Pharma research, 2005 Uno-Ciclo (Brazil) 4.6
formulations 2005 Servycal SA (Argentina n/a
Hikal API’s contract 2004 Marsin (Denmark) 6 millio for
manufacturing 50% stake
Jubilant CRAMS, 2004 PSI (Belgium) 16
Organosys pharma 2005 Trinity Laboratories 20.25 million
speciality, (along with for 75% stake
chemicals, subsidiary Trigen
intermediates, Laboratories )
formulations, 2005 Target Research 33.5
medical (US) Associates
chemistry and
clinical
services
Matrix Labs CRAMs, 2005 MICHEM (China) (JV) n/a
generic APIs,
intermediates 2005 Docpharma (Belgium) 263
and 2005 Explora Laboratories n/a
formulations (Switzerland)
n/a Fine Chemicals corp n/a
(South
Africa)
Nicholas CRAMS space 2004 Doubtrex brand n/a
Piramal contract acquisition (US)
manufacturing, 2004 Rhodia’s inhalation 14
APIs, branded business
formulations (UK)
2005 Biosyntech (Canada) 6
2005 Avecia Pharma (UK) 16.9

Strides lab Generics, OTC 2005 Manufacturing plant 8


and (Poland)
nutraceuticals 2005 Beltapharm (Italy) EUR 1.6
million (70%
stake)
Sun Pharma Branded 2005 Two facilities from 10
formulations, Valent
US generics, Pharma (Hungary, US)
APIs 1997 Caraco (US) 7.5
2005 Able Laboratories (US) 23.15
Ranbaxy US and Europe 2008 Dai Chii Sanque
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generic 2004 RPG Aventis (France) 84
Markets n/a 18 generic products n/a
from Efarmes
S.A. (Spain)
2005 Brand –veratide from 5
P&G
(Germany)
Torrent Formulations, 2005 Heumann Pharma n/a
European (Germany)
generic
Market
Zydus Contract 2003 Alpharma (France) 6.6
Cadilla manufacturing
and generics
Wockhardt Biogenerics, 2003 CP Pharma (UK) 20
US and
Europe generic 2004 Esparma (Germany) 11
market,
Branded
generics

The major Indian companies such as Ranbaxy, Dr. Reddy’s Laboratories, Wockhardt and
others have established their own brand image in the international market as well as
domestic market and are taking steps to consolidate their activities.

Indian firms are compensating for the spiraling cost of selling and marketing in advance
countries by setting wholly owned subsidiaries or acquiring local firm. Thus reinforcing
the argument that Indian firm’s internationalization through acquisition is directed
towards acquiring new knowledge in different areas such as R&D capabilities, regulatory
skills and distribution networks.

3. Firms under investigation

The findings of this research are based on the study of internationalization motives and
patterns adopted by five well established Indian pharmaceutical firms, viz. Ranbaxy
Laboratories, Dr. Reddy’s Labs, Wockhardt, Nicholas Piramal and Sun Pharmaceuticals
Ltd.

Table 2 Firms under investigation


Name of the Year No. of overseas No. of Turnover % of IPO
Firm established Manufacturin overseas (2008) turnover
g acquisitions RS. from
plants from 1990 Million overseas
(2008)
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Ranbaxy 1962 8 11 41205.88 69.90 1994
DRL 1984 2 4 50006 79.1 2001
Wockhardt 1959 3 4 26531.54 70.55 2003
NPIL 1988 5 3 28789.1 71.67
Sun 1983 4 3 32776 68.78 2007

All these firms are privately owned business with family ownership and ranked amongst
top ten firms in India. Table 2 shows that large part of their turnover comes from overseas
markets while advance regions such as US and Europe account for more than 80% of
overseas revenue. All these firms raised money through IPOs (Initial Public Offerings)
before embarking on the overseas acquisitions.

But my focus is only on Dr. Reddy, through this analysis we can find out that in the
previous time period the pharmaceutical companies were interested in overseas
development but now the scenario is changed completely. These companies are
focusing in the national market with the help of using generic patent off drugs by
changing their process and their contents.

Dr. Reddy’s M&A:

Table No. 3 DRL’S Mergers & Acquisitions:

S.No. Year Acquired Firm Focusing Area Value


1 2002 BMS laboratories and UK generics market US $16 million
Meridian labs
2 2004 Tregenesis (US) Specialty products – access US$11 million

drug delivery platforms in


the
dermatology segment
3 2005 Roche’s Generic Business US generics market US $ 59 million
(Mexico)
4 2006 Betapharma (Germany) European Generic Market US $ 572
million
5 2008 Jet Generici SrI Itly Generic Market n/a
6 2008 Dow Pharma (UK) Small molecule business n/a
7 2008 BAFS-SE Pharma(US) Performance Products, n/a
Functional Solution
8 2008 Perlecan Pharma Pvt. Ltd. Indian Manufacturer of n/a
(India) Functional solution

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With the help of this table(Table:3) it is clear that DRL shown their presence in the
pharmaceutical industry by a large number M&A. DRL’s international and national
marketing successes were built on a strong manufacturing base which itself was a result of
inorganic growth through acquisition of international and national facilities. DRL merged
with Cheminor Drug Limited (CDL) with the primary aim of supplying APIs (active
pharmaceutical ingredient) to the technically demanding markets of North America and
Europe. This merger also gave DRL entry into value added generics business in the
regulated markets of APIs. DRL began its major international production by entering
Russia through a joint venture with Biomed in 1992 and in 2002 DRL converted the joint
venture into a fully owned subsidiary. It strengthened its Indian manufacturing operations
by acquiring American Remedies limited in 1999. This acquisition made DRL the third
largest pharmaceutical company in India, after Ranbaxy and Glaxo (I) Ltd., with a full
spectrum of pharmaceutical products, which included bulk drugs, intermediates, finished
dosages, chemical synthesis, diagnostics and biotechnology. So through this way now
DRL is the secong largest pharmaceutical company in the India.

Flow Chart: DRL’s Expansion in the World

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THE HIERACHY OF MARKETING DEPATMENT

CHAIRMAN

SENIOR DIRECTOR

Sales Manager Production Management Team


(SM) (PMT)

North-West
South
Sales
EastManager
Sales
Manager Group Therapy Management

Regional Manager

Product Manager

Area Sales Manager Scientific Business


Officer
(SBO)

Professional Service
Representative

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MOLECULES INTRODUCTION

WHAT IS GEMIFLOXACIN?

Gemifloxacin is a synthetic broad spectrum antibacterial agent for oral administration.

Gemifloxacin, a compound related to the fluoroquinolone class of antibiotics, is available

as the mesylate salt the sesquihydrate form. As recognized by the US Food and Drug

Administration in their approval statement for gemifloxacin in April 2003, it is the only

agent that displays activity against both fluoroquinolone target sites at therapeutically

achievable levels. The order of resistance development by FAUC/MIC breakpoint was

levifloxacin>gatifloxacin>moxifloxacin=gemifloxacin, which may be related to

structural differences within the class. Due to its potent activity against many common

gram-positive and gram-negative respiratory pathogens, its proven clinical efficacy, and

its favorable safety profile, gemifloxacin is a highly effective empiric treatment for

community-acquired lower respiratory tract infections. Gemifloxacin has been highly

effective in the treatment of community-acquired pneumonia and acute exacerbation of

chronic bronchitis. Clinical success rates ranged from 93.9-95.9% in patients with

community-acquired pneumonia and 96.1-97.5% in those with acute exacerbation of

chronic bronchitis. Gemifloxacin is a dual acting fluoroquinolone with excellent activity

against S. pneumonia including those strains demonstrating resistance to other classes of

antibiotics. Gemifloxacin targets both DNA gyres and Topoisomerase IV of S.

pneumonia. The brand under this molecule is GEN ONE .

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WHAT IS DELAZACORT (ASTERIDE)?

Deflazacort, a synthetic oxazolone of prednisolone with 0.84 times anti-inflammentory


effect of prednisolone. When in-vitro immunosuppressive effect of deflazacort, a new
bone-sparing glucocorticoid, and its biological active metabolite, 21-deactyl deflazacort,
was examined on phytoaemagglutinin (PHA) stimulated human peripheral blood
lymphocytes (PBL) as well as on natural killer and killer cell activity, Deflazacort and the
21-deacetyl metabolite were as potent as prednisolone and hydrocortisone in suppressing
PHA stimulated lymphocytes in a dose dependent way.
Current research indicates that deflazacort and 21-deacetyl deflazacort are potent
immunosuppressive drug in vitro and, on a molar basis, equally as potent as prednisolone.
While addition of the methyl ring affords greater potency to methylprednisolone over
prednisolone, it is the addition of a methyl, nitrogen and two oxygen branched chains that
account for an equivalent efficacy yet significantly greater safety profile in the case of
deflazacort.
A study by Gartner et al assessed the efficacy and tolerability of oral deflazacort versus
oral prednisolone in acute moderate asthma in children. Children aged 6 to 14 years old
with a diagnosis of asthma who presented to the pediatric emergency department for
moderate asthma exacerbation were administered short acting beta2-adrenergic agonists
and divided into an intervention group that received oral deflazacort or prednisolone for 7
days. The primary outcome measure was forced expiratory volume in 1 second and
secondary outcome measures were pulmonary symptom score index, peak expiratory flow
rate (PEFR) hospitalization rate and the use of rescue beta2-agonists. Patients were
evaluated at the start of treatment (visit 1), on day 2 (visit 2), and on day 7 (visit 3).
On visit 2, FEV1:122.2 and 126.5 %( p<0.05); PEFR: 164 AND 149 L/min ( p<0.05) ;
symptoms score: -4.4 and -3.8 ( p<0.05). On visit 3 all variables continued to show
improvement: FEV1: 133.2 and 132.5% (p<0.05); PEFR: 1115.7 AND 187.6 L/min
(p<0.05); symptoms score: -5.4 and -5.9 (p<0.05).

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WHAT IS DOXOFYLLINE?

Methylanthine are a group of structurally related substances, used in the clinical


management of patients with obstructive respiratory disorders, in particular chronic
obstructive pulmonary disease (COPD). Their effect is a generalized dilation of the
bronchi that reduces the overall resistance of airways to the airflow, improves blood gas
exchange, and decreases the respiratory effort. It is supposed that regular use of
Methylxanthine decreases the risks of acute dyspnoiec attacks, such as acute asthemic
attacks, and acute respiratory failure in COPD. The use of methylxanthine is essentially a
long term use. Their efficacy, when used orally as it usually occurs, onset within
approximately one week and stabilizes within approximately four weeks. During the
initial and the stabilization period, the effectiveness of metylxanthine is marked decreased
need of rescue medication use, usually in the form of puffs of short acting beta2-agonists.
Dosage of methylxanthine is normally monitored by measuring the blood level obtained at
trough. Methylanthine can also be used to obtain acute effects, when administered by
intravenous injection or infusion. It is evident that long term use of Methylanthine should
not only be effective as bronchodilator, but should also be exempt of major risks of
adverse effect on any body system and organ, as well as of risk of interaction with the
commonly used concurrent medication. Doxoyfylline is a Methylanthine with almost the
same bronchodilating effect as theophylline. It has, however, a much lower affinity for the
adenosine receptors. The use of doxofylline appears to provide the required
bronchodilating action in COPD and in asthma, with limited risk for CNS, gastrointestinal
and cardiovascular adverse events.
The brand under this category is DOXOBID.

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MANAGING THE SALESFORCE

 MANAGING THE SALESFORCE

Sales Management involves managing people and getting results through them. It

involves sales planning that is based on market analysis. It involves setting sales goal and

tries to achieve them. Sales management also involves organizing and motivating the

sales team in such a way that they achieve and surpass the goal. This involves appropriate

compensation plan and building sales organization to respond to market realities. Finally,

the sales manager needs to review the performance and access productivity of his/her

team.

MAIN POINTS –

 The role of the MR is futurist, strategist, information management and leadership.

 The sales management planning process involves analysis, goal setting, strategy
and tactics development, issues in implementation and finally controlling sales
effort.

 Sales budget are the financial aspects of the sales plan. Sales quotas are targets to
be achieved by individual salesperson or by the sales team.

 A sales team can be formed either on the basis of the product, or territory or
customer groups or combination of these.

 The compensation plans used by sales managers are straight salary, commissions
only or a combination of these two.

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PRODUCT POSITIONING

DRL’s all three products are present in the all the target market & the selling of the
products are well than other companies. According to experts the product is positioned on
the parity-of-difference rule, because as we know the pharmaceutical industry is not like
other industries where customers’ willingness works here the things of working of
medicine related disease. All three drugs of DRL is for asthma patients & in the market
the sale depends on the performance of MRs. So MR of company realizes this thing &
they give proper knowledge of product to the doctor & increase the sale of drugs through
good quantity of drugs with chemists. Company has good relation with doctors and the
chemists.

On the basis of good positioning strategy DRL has a good market share.

DRL’s market share on the basis of positioning strategy-

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COMPETITOR ANALYSIS

The major competitor of DRL through out the survey area is Macleod. Following will
give a brief of the competition between the rivals:

 Although the goals of both the companies are the same, the two companies rely on
somewhat different marketing strategies. DRL has always taken the lead in
developing new products. Further, DRL has always taken more risks, acted
rapidly, and was always developing new drugs at a lower cost than Macleod

 In the foreign markets, DRL has been more successful then Macleod. In the
Middle East countries DRL has a good strength than Macleod & now in India
DRL has established new plants for increase the production of drugs so now it can
export ready medicine instead bulk.

 While Macleod has been playing safe with introducing new drugs with good
working and trap the market share than DRL. DRL has introduced a new drug in
deflazaort category-Asteroid, to cover the area of asthma drugs and it is going in
good direction.

 DRL has positioned itself as a quick copy which is considered to be more modern
and lively as compared to other companies because in this industry any company
is not sure about its share. Also, DRL has always played around innovations so as
to lead the market.

This chart show the market share of DRL & Macleod:

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In the same manner for ths gemifloxacin molecule the main competitor is Gicin, cmpany
is using same strategy for this molecule product(Gem One). The condition is cleared with
the chart.

The third molecule for analysis is Deflazacort, the market share of DRL for this molecule
is smaller than other companies product. As we know the pharmaceutical industry is
fragmented industry, so it is quite difficult to a company to rule over market with one
product. DRL is also doing work on this drug & strenghning the marketing strategy for
this drug. The market share of this drug is cleared by following chart-

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Conclusion:-

According to study DRL is maintaining its position as a quick copy who introduces drugs
on the basis of patent off pattern. For existing in the market always innovation is
necessary.

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SWOT ANALYSIS

STRENGTHS-

• Aggressive decision maker

• Cost leadership

• Tactful reengineering process

• Copy the manufacturing process of patented drugs

• Adapting quickly changed environment

• Quality of drugs

• Cross licenses , joint ventures & alliances

• Talented workforce

WEAKNESSES-

• Concentrate only process improvement

• Marketing arms are split

• Mainly focused on bulk drugs

• Focus on therapeutic segment

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OPPURTUNITIES: -

• Develop new process

• Research driven company

• Sustain for growth & diversification

THREATS: -

• Fragment industries

• Diversification

• Patent product manufacturing MNCs

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Field Work

Market Analysis of Doxophylline, Gemifloxacin, Deflazacort – Jaipur

The product of these molecules is, Doxophylline- Doxobid, Gemifloxacin- Gem One and

Deflazacort- Asteroid. These drugs are prescribed by doctors to the asthma patients and

availability of products on the shops depends on the medical representatives.

My job was to visit all the chemists of main five hospitals area in the Jaipur. The name of

hospitals are-

1). Sawai Mansingh Singh Hospital

2). Jaipur Hospital

3). T. B. Hospital

4). Haribaksh Kawatia Hospital

5). Santokabha Dhurlabji Medical Centre & Hospital

During the initial stage of the project, I came to know about the all the brands of these

molecules of existing companies. On visiting chemists on various routes, I realized how

important a strong distribution channel was for a company to be able to retain its position

as an industry leader. I used to visit all the retail outlets of a particular route each day and

learnt how to applied a company’s drug in the market, how to tackle the various problems

related to knowledge of drug to the doctor & chemist. Having done this, an overall market

scenario of the distribution channel and methods became clear.

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In the process of increasing the market share of drugs market representatives give doctors

about the drugs & clarify all the queries of them. In this way they tried to motivate them

to prescribe more and more of the products of DRL. I also analyzed:

1. Whether the MR is telling about the actual working of drug to the doctors &
chemists properly?

2. Whether the availability of drugs on the shops?

3. Whether the doctors are prescribing the drugs of the company?

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Market Surfing of “Doxobid, Gem One, Asteroid”:

Route No: 1 (SMS Hospital)

Sale of Best
Sr. Gem
Chemist Name DRL Doxobid Asteroid Selling
No. One
Drugs Drug

Hindustan Medical
1 Good Yes Yes No Gem One
Store

2 Curewell Average Yes Yes No Gem One

Doxobid,
3 Super Medicals Very Good Yes Yes Yes
Gem One

Sona Medical
4 Very Good Yes Yes Yes All
Store

Vishal Medical
5 Very Good Yes Yes Yes All
Hall

Below
6 Rajasthan Medicals Yes Yes No Gem One
Average

7 Medicure Good Yes Yes Yes Gem One

Doxobid
8 Sarvoday Medicals Good Yes Yes Yes
Gem One

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Route no. – 2 (H.K. Hospital)

Best
Sr. Sale of Gem
Chemists Name Doxobid Asteroid Selling
No. DRL Drugs One
Drugs

Vashisth Medical
1 Good Yes No Yes Doxobid
Store

Bansal Medical
2 Good Yes Yes No Gem One
Store

Sanjay Medical Doxobid


3 Very Good Yes Yes Yes
Store Gem One

4 Agrwal Medicos Average Yes Yes No Doxobid

Below
5 Shyam Medicos Yes Yes No Doxobid
Average

Shree Nath
6 Average Yes Yes Yes Gem One
Medicals

7 Sharma Medicos Good Yes Yes No Doxobid

8 R.S. Medicos Average Yes Yes Yes Gem One

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Route no. – 3 (T.B. Hospital)

Best
Sr. Sale of Gem
Chemists Name Doxobid Asteroid Selling
No. DRL Drugs One
Drugs

Shree Krishna
1 Good Yes No Yes Doxobid
Medicos

Gem One
2 Mohan Medicals Very Good Yes Yes Yes
Asteroid

Doxobid
3 Poonam Medicals Average Yes Yes No

Raghukul Medical Doxobid


4 Good Yes Yes Yes
Store Asteroid

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Route no. – 4 (Jaipur Hospital)

Best
Sr. Sale of Gem
Chemists Name Doxobid Asteroid Selling
No. DRL Drugs One
Drugs

Doxobid
1 Jaipur Drug Store Good Yes Yes Yes
Gem One

Shiv Medical &


2 Average Yes Yes Yes
Provision Store Doxobid

Arvind Medical Doxobid


3 Good Yes Yes No
Store

Route no. – 5 (SDMH)

Best
Sr. Sale of Gem
Chemists Name Doxobid Asteroid Selling
No. DRL Drugs One
Drugs

Doxobid
1 Vardhman Medicos Very Good Yes Yes Yes
Gem One

2 J.S. Medicos Good Yes Yes Yes


Doxobid

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RESEARCH METHEDOLOGY

A market research survey has been conducted for the purpose of above study. The
research data has been collected through out this procedure.

A. Data collection

The success of any research project depends critically on data. So data collection is the
most important aspect of a research project. Primary and secondary data are used in this
project.

B. Sample survey:

Survey has been conducted after preparing the questionnaire and the focus was to know
the market share of company.

C. Sampling:

a) Nature of Universe

The research was carried on doctors and chemists.

b) Sample Size

Sample size has been 42 chemists of various places in Jaipur.

c) Secondary Information

Companies documents, various journals, pamphlets and companies portals were studied
for relevant information regarding the subject of the projects. These documents were very
useful for theoretical, conceptual and organizational background. Detailed analysis of
information and data collection was carried on and then it has been possible to complete
the task.

d) Question Design

The question was designed keeping in mind the need of the project. The questions were
simple and concise. Questions were prepared for chemists.

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PRIMARY DATA:

Primary data is collected through chemists, questionnaire, and personal interviews of chemists

and different employees of DRL (MRs.).

For example:

Condition of sale of drugs -

 Very Good

 Good

 Above Average

 Average

 Below Average

 Bad

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DATA ANALYSIS

Q1. Have you all the brands of Doxophylline?

Q2. Have you all the brands of Gemifloxcin?

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Q3. Have you all the brands of Deflazacort?

Q4. Give name of available brands of Doxophylline molecule.

Ans. Doxopick Doxobid(DRL) Doxorill(Macleod)


Doxiflo Doxofree Doxious
Doxomax Doxovin

Q5. Give name of available brands of Gemifloxacin molecule.

Ans. Gen One (DRL) Gemimac Gemic


Gicin Gem2kuin Gemz

Q6. Give name of available brands of Deflazacort molecule.

Ans. Defcoat Defza Deflanol


Asteroid (DRL) Depsure Defzacore

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SMS HOSPITAL:

Q7. Market status of DOXOBID in SMS Hospital.


Ans.

Q8. Market status of GEM ONE in SMS Hospital.


Ans.

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Q9. Market status of Asteroid in SMS Hospital.
Ans.

H. KAWATIA HOSPITAL:

Q10. Market status of DOXOBID in Kawatia Hospital.


Ans.

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Q11. Market status of GEM ONE in Kawatia Hospital.
Ans.

Q12. Market status of Asteroid in Kawatia Hospital.


Ans.

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T.B. HOSPITAL:

Q13 Market status of DOXOBID.


Ans.

Q14. Market status of GEM ONE.


Ans.

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Q15. Market status of Asteroid.
Ans.

JAIPUR HOSPITAL & SKDM HOSPITAL:

Q16. Market status of DOXOBID.


Ans.

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Q17. Market status of GEM ONE.
Ans.

Q18. Market status of Asteroid.


Ans.

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Overall Status of DRL Product:

Q19. Market status of DOXOBID.


Ans.

Q20. Market status of GEM ONE.


Ans.

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Q21. Market status of ASTEROID.
Ans.

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FINDINGS

According to market analysis of Dr. Reddy’s product, conditions of some drugs are
better and some have very low market share.

• As per findings, the condition of Doxobid is quite good comparisons of other


drugs. But Doxobid face a great completion to Macleod’s Doxorill. Doxorill
has a large share of market.

• The condition of Gem One is best among the other drugs. It is market leader in
the Gemifloxacin molecule.

• Beside this Asteride is a low performer in the market and it needing a lot of
attention.

• The works of representatives are going on very well and it is right for DRL
that it has well workforces which make possible every step of company in right
direction.

• The products of DRL are working in a good manner than its competitors. The
reasons for this success are-

o Availability of drug at a low cost.


o Workings of drugs are better.
o Work of representative is in an effective manner.

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RECOMMENDATIONS

Doxobid:

 Doxobid is going on very well, but company need to put little bit pressure on its sales

through-

⇒ Involving new ingredients in the product which make it more effective.

⇒ As we know in India cost play a major role on sale, so company need to

decrease the price of product from Rs. 50 to Rs. 48. This can play a vital role

in the growth of company.

Gem One:

 Gem one is the market leader in its category. Comparison to other brands its effectiveness

is far better. Doctors are prescribing this drug in large numbers. It alone generates a huge

amount of revenue.

 But company need to always focus on this strategy so that they can’t lose its leadership in

the market. Like regularity of representatives, availability of appropriate amount of drug.

Asteride:

 Asteride is not performing according to company vision; it has a low market share than

above two drugs. So company need to keep eye on this product performance.

 Company need to regularly take update of this drug from representatives.

 It needs to remind doctors about the product availability in the market.

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 According to result of analysis it has shown that on many places chemists has not

availability or knowledge about drug, so company need to strong tis distribution units and

give representative an extra task to give proper knowledge to chemists about drug.

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CONCLUSION

Without any hesitation we can say that the unit is doing tremendously well and the sales
are increasing. Launching of drugs like Gem One, Doxobid & Asteroid works like a
panacea for increasing the sales of the company, but today looking at the competition of
the market there is an immense scope of improvement.

If we have to compete with our rivals then we have to make concrete marketing strategy
and follow it strictly. We also have to keep a keen watch on our rival’s strategy and take
steps according to them.

We should create new drugs, and new process for manufacturing drugs with low cost,
effectiveness that can add to our sales. Besides we also have to work on other possible
areas of marketing like maintain good relation with doctors & chemists that can
strengthen our sales.

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BIBLIOGRAPHY

 BOOKS

1. PRINCIPLES OF MARKETING
By Philip Kotler
2. MARKETING RESEARCH
By N.K Malhotra

 WEBSITES

1. www.drreddy.com.in
2. www.wikipedia.org
3. www.google.com

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QUESTIONNAIRE

Name: ……………………………………………………………
Name of shop: …………………………………………………………..
Contact no. : …………………………………………………………..

1. Which drugs do you have for asthma? (Give the name of 3 main drugs)
1……………………………………………….
2……………………………………………….
3………………………………………………

2. Do you have doxophylline and gemifloxacine?

Yes No

3. Which brands are available in your shop and also mention the price of
drug?
Doxophylline Rs.
1……………………………………… ( )
2……………………………………… ( )
3……………………………………… ( )
4……………………………………… ( )
Gemifloxacin Rs.
1……………………………………… ( )
2……………………………………… ( )
3……………………………………… ( )
4……………………………………… ( )

4. Which doctors are prescribing these medicines? (Write name with


specialization area of doctor)
Name Specialization

1. Dr……………………………………….. ( )
2. Dr………………………………………… ( )
3. Dr……………………………………….. ( )

4. Dr………………………………………….. ( )
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5. Dr…………………………………………. ( . )

5. Which drug is selling mostly?

6. Give reasons for your answer.


1……………………………………………....
2……………………………………………….

7. What is present situation of Dr. Reddy’s products?


Very good Good Above avg.

Average Below avg. Bad

8. What are the reasons for this situation?


1……………………………………………………
2………………………………………………

9. Any opinions for company to raise the product’s market share.


1……………………………………………………
2………………………………………………
3……………………………………………………
4……………………………………………..

THANKS

61
ACCMAN INSTITUTE OF MANAGEMENT
Greater Noida
62
ACCMAN INSTITUTE OF MANAGEMENT
Greater Noida

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