CARDKEM PHARMA PVT.

LTD

1. INTRODUCTION
1.1.

Introduction is the first chapter of the project report through which the researcher
introduces the research topic to the readers. The main function is to say what the report is about, what work has already been done on the subject and what new grounds are covered in the present study.

Since the introduction sets the scene and prepares the reader for what is to follow, take utmost care in writing it. It should be object oriented and must be clear. The introduction to a report states in a forthright manner what you are going to discuss and does not admit of any vagueness. Thus, the Introductory chapter should cover following points: Basic Theoretical concepts Statement of the problem & Significance of the problem Objective of your study, i.e. Purpose of you choosing the topic Scope of your study & Limitations Definitions of terms used and symbols.

Basic Theoretical Concepts: For small scale industry like CARDKEM PHARMA

PVT. LTD, the dealers play the main role in the organization. Grab the more and more dealers is very important, so to make them happy and to apply the strategies to keep them retain within the organization it is necessary to understand their demand and also the different strategy of the competitors.

Objectives: To understand the market behavior of pharmaceutical industry in

terms of grabbing more dealers for more sales and retention of existing dealers and also to understand the work culture of private Sector based organizations.

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CARDKEM PHARMA PVT. LTD

1.2 Objectives of the study 1) To understand about the marketing strategies of small scale pharmaceutical company in terms of dealers accumulation and their retention.

2) To understand how to approach communicate with the dealers and manufacturers of the final API (Active pharma ingradient). 3) How web based services and telephonic services are useful for B2B marketing. 4) To know the dealers or manufacturers responses regarding the stocks provided by the CARDKEM.

5) To understand the competitors strategy of retaining the customer as compare to CARDKEM.

6) What are the main demands of the dealers/manufacturers? 1.3 Significance of the study: Here the student is expected to write: Why he/ she conducted this study Sources of key originating research The selected problem in the theoretical context of the concerned discipline should be specified.

1.4 Limitations and future scope:

Limitations: the company is very small firm so the large manufacturer didnt response quickly. Scope: Scope of your study must mention the topical, functional as well as geographical scope of your study.

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CARDKEM PHARMA PVT. LTD

2. COMPANY PROFILE

Promoted by professionals, Cardkem started operations in 1993 and currently is a Rs 250 million (US $ 6.25 million) turnover group. with business interests in manufacturing API intermediates, bromine compounds, other fine chemicals as well as in contract manufacturing. in dedicated and multipurpose facilities having about 25000 liters of glass lined reactor capacity and 75000 liters of SS reactor capacity, installed and under installation.. With an ambitious target to doubling the turnover to over Rs 500 million in 3 years.

Cardkem was established in 1993 by professionals, as a manufacturer of API intermediates and fine chemicals - with a vision to be one of the best in the products and the markets that it serves. And over the years, Carkem has indeed become the largest players in drug intermediates like pyridine hydrobromide, pyridine hydrochloride and fine chemicals like pyridinium bromide perbromide, with a current turnover of Rs 250 million.

Cardkem is restructuring its existing operations and further strengthened its team in preparation for a growth in the focus areas of Intermediates for API / bulk drugs manufacturers, with a range of products identified for contract manufacturing. Organic and inorganic chemicals more specifically bromo compounds used in bromo aceylations, bromo condensations, brominating agents etc including range of byproducts and other related recovered chemicals. Intermediates for API / bulk drugs manufacturers leading to cephalosporins - both sterile and non sterile, with a range of products identified for contract manufacturing. Custom synthesis on laboratory scale, with marked interest in impurities required for impurity profiling in drug synthesis. A quiet transformation is in progress - to serve the existing customers with better products, with cleaner technologies, and a host of existing / new customers with a range of new introductions 3 Impact of B2B Marketing on pharmaceutical Industry

CARDKEM PHARMA PVT. LTD and a host of tailor made solutions for lasting associations. As an organization, Cardkem is a team of about 100 personnel. Senior technical personnel handling key portfolios of manufacturing, quality assurance and research and development are all having large / varied exposure to manufacturing bulk actives both for inland and overseas markets. Carkem endeavors to work to the best of our ability to consistently provide high quality products, along with the tailor made solutions / custom synthesized intermediates according to specific requirements. Our development teams of scientists along with commercial personnel review the requirements from the time customers enquiries are received. Marketing is therefore primarily handled directly.

Location The manufacturing facilities are located in western India, in the state of Gujarat, located 350 KM north of Mumbai, on National highway - 8 connecting Mumbai to the capital of India- New Delhi. It is about 10 KM south of Bharuch railway station and about 80 KM south of Vadodara, the nearest airport. Plant At a site spanning about 10000 sq m, three existing plants that are currently being restructured and upgraded, and four additional plants, that are in different stages of completion would provide a complement of one pilot plant, three dedicated plants and three that would be of multipurpose configurations suitable for manufacture of various groups of products. The facilities have about 25000 liters of glass lined reactor capacity and 75000 liters of SS reactor capacity - installed and under installation, and consist of typical configurations common to such industry. The plants are being engineered through reputed and experienced engineering consultants to cater to the critical process requirements, and safety of plant, personnel and product. Adequate supporting utilities in terms of gas fired steam boilers, thermopac boiler, cooling towers, refrigeration brine / chilled water, vacuum / high vacuum, and captive power 4 Impact of B2B Marketing on pharmaceutical Industry

CARDKEM PHARMA PVT. LTD generation sufficing standby / emergency requirements have been provided. This would enable maintenance of defined process parameters critical to product quality. Companys engineering personnel, including the trained technicians provide break down, preventive and corrective maintenance. Critical systems are covered with annual maintenance contracts with service agencies to periodically monitor the performance. Instruments are covered by a calibration plan with established traceability and adequate records are maintained. We also focus on continual improvements in energyfuel/ resource conservation. As a commitment towards quality, we are also actively pursuing and upgrading our systems and facilities towards simultaneously achieving ISO 9001:2000 by the end of the year.

Research & Development First focus is to look for sustainable growth - and we continually innovate towards cleaner technologies. Second focus is to sustain the satisfaction levels of existing customers, and we incorporate improvements to the existing products in terms of better purities, lower costs, quicker deliveries, as well as customer specific use of process chemicals / process conditions for customer specific product synthesis.

The prime focus is more and more products. And to match our growth plans, we at Cardkem have invested our time and money for various newer technologies, products.

Cardkem has our very own R&D centre - a project that is to be completed and functional by the end of the calendar year 2008. With a dedicated and a focused team, and a matching infrastructure, it plans to consolidate ourselves among the leading names of such industry.

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CARDKEM PHARMA PVT. LTD

Product List

Bromine Compounds
Sr. No. Used in synthesis for / of / as Description of product/Intermediate product 1 Chemical synthesis 2 Brominating Agent 3 Chemical Synthesis 4 5 Bromo acylations Bromo Acylations 6 Bromo Mineral Acid 7 Brominating Agent Pyridine Hydrobromide Phosphorous Tribromide Ethyl triphenyl Phosphonium Bromide Acetyl Bromide Propionyl Bromide HBr, 33% in Acetic Acid Pyridinium Bromide Perbromide 39416-48-3 Plant 506- 6-7 598-22-1 Plant Plant 7789-60-8 1530-32-1 Plant Plant 18820-82-1 Plant CAS No. Level of scale up

10035-10-6

Plant

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CARDKEM PHARMA PVT. LTD

API Intermediates
Sr. No. Used in synthesis for / of / as Therapeutic group (for drug intermediates )
1 Sodium Salts of 1 Non Sterile / 1 Sterile Products

Description of product/Intermediate product

CAS No.

Level of scale up

Sodium 2-Ethyl Hexanoate

19766-893

plant

2.

Carvedilol

Anti Hypertensive

4-Hydroxy Carbazole

52602-398

Plant

3.

Ondansetron

Antiemetic

1, 2, 3, 9-Tetrahydro-4H9-Carbazole-4-One (nMethyl Carbazolone)

27387-311

Plant

4.

Venlafaxine

Anti Depressant

2-(1Hydroxycyclohexyl)-2(4-Methoxyphenyl) Acetonitrile

Plant

5.

Venlafaxine

Anti Depressant

1-(2-Amino-1-(4Methoxy Phenyl) Ethyl Cyclohexanol

13019805-9

Plant

6.

Chloramphenicol Sodium Succinate Sterile

Anti Bacterial

Chloramphenicol Succinate

982-57-0

Plant

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CARDKEM PHARMA PVT. LTD

Cephalosporins / related intermediates

Sr. No. Used in synthesis for / of / as Therapeutic group (for drug intermediates)
1.

Description of product/Intermediate product

CAS No.

Level of scale up

Cefexime Trihydrate

Anti Bacterial

(Z)-2-(TertMethoxy CarbonylMethoxyimino)-2(2-Aminothiazol4-yl) Acetic Acid (MICA Acid)

Plant

2.

Cefexime Trihydrate

Anti Bacterial

S-2-Benzothiazolyl (Z)-2-(2-Aminothiazol4-yl)-2-MethoxyCarbonyl-Methio Acetate (MICA Ester)

Plant

Other compounds
Sr. No. Used in synthesis for / of / as Therapeutic group (for drug intermediates) 1. Chemical Synthesis 2. Chemical Synthesis 3. Group Protecting agent Tri Phenyl Phosphine 603-35-0 Lab Pyridine Hydrochloride 628-13-7 Plant Pyridine 110-86-1 Plant Description of product/Intermediate product CAS No. Level of scale up

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CARDKEM PHARMA PVT. LTD

3. RESEARCH METHODOLOGY

2.1 Methodology Details Research is a process and series of actions or steps necessary to effectively carry out research. A good research would always require researchers contribution in terms of energy, time and money. This includes following points:

Research plan, Design, i.e. in simple words, how you would carry out the research? The research design, I have choosen for my study is DESCRIPTIVE RESEARCH DESIGN. The results from a descriptive research can in no way be used as a definitive answer or to disprove a fact.

2.2 Sources of Data: a. Primary Data:Web based interview and telephonic interview used for research study was self developed. Data is collected from dealers and manufacturers, then data was processed and analyzed to reach conclusion. b. Secondary Data :Secondary data is collected with the help of detail information in soft copy provided by the project guide, from website, from chemical weekly and another pharmaceutical related magazines etc.

2.3 Sampling procedures: As the sample size of dealers and manufacturers to whom researcher was dealing is very small. The interview is to be taken for only 8 consumers of the Bromo compounds. From which only 6 are interested to share the information. From which 4 are the manufacturer and 2 are the major dealers of API products. Defining the target population.

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CARDKEM PHARMA PVT. LTD The entire consideration of items from which sample is selected is called the population. As company is producing bromine compounds which is largely used in most of the pharmaceutical companies. So there is a pharmaceutical companies from whole world as a target population.

Selection of sampling method The Sampling method decides the way in a manner sample is selected. Researcher has used Simple random sampling method for her survey of summer project.

2.4 Collection of Primary Data: Discussion with the authority: in this method I have discussed the issue with the

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

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

questions and thus collect the required information.

Structured interview: Questions to be asked by the researcher have been planned in advance. So it is a type of structured interview. Open-ended and close-ended both type of questions is to be asked by researcher. 4. Web based interview : Researcher has collected the information personally by Online chating and web based questions which have been asked by researcher.

5. Telephonic interview: Researcher has collected the information through telephonic interview by approaching to the dealers and manufacturers of different region.

In this method a questions is to be asked by researcher to the respondent with a request to answer and coordinate her.

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CARDKEM PHARMA PVT. LTD

Steps Involved in questionnaire construction:Decide on the content of Individual questions

Types of questions

How to ask questions to them

Sequence of the questions

At which time interview should be conducted

To find out the appropriate person for interview

Collect and record the data properly Impact of B2B Marketing on pharmaceutical Industry

11

CARDKEM PHARMA PVT. LTD

First step - what type of individual questions are included- it depends upon the nature of the study. The questions that put the great strain on the memory of respondent should not be included. Complicated questions should be avoided. Questions of personal character should be avoided. Questions are included in such a way that respondent should give the information voluntarily.

Types of questions-

Open ended questions-

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

Close ended questions-

In this type of question I asked in which the dealers has to only mark the answer according to their likes and dislikes. Here in web based and telephonic interview only open ended questions are possible.

Wording of questions:-

It should be clear and simple. Should be easily understood. Should convey only one thought at a time. Any sort of misunderstanding can do irreparable harm to a survey.

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CARDKEM PHARMA PVT. LTD Pre test of questionnaire:-

Respondent understood all the questions. Does the opening question generate interest? The wordings are proper or not. The pre-testing ignore the deficiency in the questionnaire.

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CARDKEM PHARMA PVT. LTD 4. DATA ANALYSIS AND INTERPRETATION

Name of Manufacturer: 1. DSM company (Purchase Manager, Mr. Naveen Aggrawal), Noida, UP. 2. Cebon India Limited (Purchase manager, Mr. Rakesh Girdhar), New Delhi. 3. Inject care Parental pvt. Ltd (Marketing Manager, Mr. Mahesh Patel), vapi, Gujarat. 4. Orchid chemical & pharmaceuticals (Purchase Manager), Tamil nadu. 5. Aurobindo pharma Ltd. , Hydrabad, Andhra Pradesh. 6. Ranbaxy Laboratories Ltd., Himachal Pradesh. Name of the dealer/ distributor/ traders 1. Oceanic pharmachem pvt. Ltd (trader/distributor), Mumbai. 2. Jai radhe sales (trader/distributor), ahmedabad, Gujarat.

How the requirement of the manufacturer/dealer is got known? a) Through trading website b) Through companys product list c) Chemical weekly d) Cold call

No. of respondent
12.5% Trading website 25% 12.5% 50% Company's product list Chemical weekly Cold call

Interpretation: Majority 50% manufacturer make their buyer lead through trading websites.

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CARDKEM PHARMA PVT. LTD Got Requirement a) Yes b) No

No. of Respondent
25% Yes 75% No

Interpretation: researcher has taken 8 manufacturer/dealers/traders as sample size. But from that only 6 were ready to give response. The following details are collected from the company.

DSM Company

Inject care Parental pvt. Ltd

Aurobindo pharma Ltd

Orchid chemical & pharmaceuti cals

Ranbaxy Laboratori es Ltd

Oceanic pharmachem pvt. Ltd

Product

Sodium 2-ethyl Hexanoic Acid

Sodium 2ethyl Hexanoic Acid 5

Sodium 2ethyl Hexanoic Acid 10

Sodium 2ethyl Hexanoic Acid 15

Ethyl triphenyl phosphoniu m Bromide 10

5Aminosalicylic Acid

Requirements (tonnes/month) Quality

40

98.00% w/w

98.00% w/w 15 days Advance or L/C

98.00% w/w 98.00% w/w

98.00% w/w 98.00% w/w

Delivery time Payment terms

30 days Advance or L/C

15 days Advance or L/C

15 days Advance or L/C

20 days Advance or L/C

30 days Advance or L/C

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CARDKEM PHARMA PVT. LTD what is the strength of the Manufacturer/dealer:

a) <70 b) 80 or =100

0 38% 62.50% <70 >80 or =100

Interpretation: Most of the manufacturers have good market shares for their company. So they are stronger enough. What type of requirements had been got by the company? a) Bulk b) Ordinary

No. of responses
16.66% Bulk 83.33% Ordinary

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

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CARDKEM PHARMA PVT. LTD What a manufacturer/dealer Expecting from a goods a) Quality of the goods b) Quantity of the goods c) Both d) Good service e) Time saving

No. of responses
6 4 2 0

No. of responses

Interpretation: Manufacturers and dealers are focusing on both i.e quality and quantity of the product. They also believe in good services which are mostly time saving.

What is the level of Rapport made with the company? a. Very Good b. Good c. Average d. Bad e. Very Bad

No. of responses
12.50% 0 0 Very Good 50% 37.50% Good Average Bad Very Bad

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CARDKEM PHARMA PVT. LTD Interpretation: Manufacturers /dealers are enough satisfied with the goods provided by the company. The company has a relationship with manufacturer/dealer is a) Long term b) Short term c) Temporary

No. of responses
16.66% 33.33% Long term Short term 50% Temporary

Interpretation: Companys turnover is low. So manufacturer rarely make the business relationship for long term.

Had researcher explained the process clearly to the manufacturer/dealer a) Very Good b) Good c) Average d) Bad e) Very Bad

No. of responses
0.00% 12.50% 12.50% Very Good Good 37.50% 37.50% Average Bad very Bad

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CARDKEM PHARMA PVT. LTD Mention the reason if the Requirement not received from the company? Sometimes, the production of particular product might be stopped by the manufacturer and now they dont need mare raw material for their product. They take more benefit in services from another company. They can get raw material from the nearest location. Mistakes made while this dealers Call. Earlier researcher found difficulty in communicating with dealers/manufacturers. Because researcher is doing first time this type of work. Sometimes the respondent dont understand what the researcher want to convey the things and for what she is searching for.

Way to overcome the above mistakes. Researcher should aware about the whole product detail. Researcher should be confident when she is communicating with dealers. What is the Attrition Rate of the manufacturer/dealer per month? a) less than 10 b) less than 30 c) less than 70 d) More. Specify. Interpretation: It is a very small firm producing API intermediate, the Number of manufacturer they are dealing with is comparatively low.

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CARDKEM PHARMA PVT. LTD

5. KEY FINDINGS
Manufacturers and dealers which are selected from the Indian pharmaceutical industry from the different regions. To identify the different perceptions of manufacturer and their behavior of purchasing a product. Manufacturers are taking raw material from only well known company on contract basis. About 75% of manufacturers believe that well known pharmaceutical company will fulfill their better requirement. Manufacturers are taking product as raw material in a bulk in case of pyridine Hydro bromide. As CARDKEM is the second large manufacturer of pyridine Hydro bromide. Majority (about 75%) of manufacturers are dependent for the raw material on traders. As they are easily got material on timely basis. Payment terms are Advance and L/C.As per the CARDKEM policy; the company only accepts Advance and L/C.

Strength (CARDKEM): Quality of materials is very good. There is a R&D centre for improvement on product. Price of material is lower than competitor. Supply of raw material is very good.

Weakness (CARDKEM): All sizes of container are not available always. Logistics and handling problem in yards. Lengthy process for discharge. Handling of logistics is little bit difficult because the product is hazardous in nature.

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CARDKEM PHARMA PVT. LTD

6. SUGGESTIONS & RECOMMENDATION

As CARDKEM is growing from year to year therefore it is definitely important for them to sustain its loyal customers for longer period. There are lots of competitors in market like Jubiliant pharma, Dishman pharma, Ions pharma etc. For this they have to do improvement time to time in order to tackle their competitors and for further growths.

Therefore there are lots of score still remaining in the improvement especially for dealers in SAIL in order to achieve their objective. Following are few points of improvement which they can do to improve, sustain and to growth this

1) First of all, the complaints of customers must be listened and quick action must be taken on those complaints like most of others private pharmaceutical companies do.

2) Feedback from manufacturers must be implemented and current market trend must be taken time to time.

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

4) More promotional activities like advertisement on television should be done in order to attract more customers.

5) The manufacturers should be provided goods according to their demand and stock should be made available in wide range to dealers/manufacturers.

6) Frequent regular visit should be made by branch officer in order to see whether dealers are working according to CARDKEMs terms and conditions or not.

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CARDKEM PHARMA PVT. LTD

Recommendation: The company should lift the quantity restriction. The company should keep all sizes of container in their stockyards. The company should try for more orders as to improve their marketing strategy, that they can utilize their resources properly.

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CARDKEM PHARMA PVT. LTD

ANNEXURE STRUCTURED QUESTIONNAIR FOR INTERVIEW BY WEB BASED APPROACH AND TELEPHONIC APPROACH IN B2B MARKETING
1. Name of the manufacturer/dealer:

2. How the requirement of the manufacturer/dealer is got known? o Through trading website o Through companys product list o Chemical weekly o Cold call

3. Got Requirement

a) Yes

b) No

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

Requirements Specifications Quality Delivery system Payment terms

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CARDKEM PHARMA PVT. LTD 5. what is the strength of the manufacturer/dealer

a) >70

b) > or =100

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

a)

Bulk

b) Ordinary

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

a) quality of the goods b) quantity of the goods c) Both d) Good service e) Time saving

8. What is the level of Rapport made with the company? o Very Good o Good o Average o Bad o Very Bad

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

a) Long term

b) Short term c) Temporary

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CARDKEM PHARMA PVT. LTD 10. Had you explained the process clearly to the manufacturer/dealer o Very Good o Good o Average o Bad o Very Bad

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

_________________________________________________________ 12. Mistakes made while this dealers Call.

13. Way to overcome the above mistakes.

14. what is the Attrition Rate of the manufacturer/dealer per month o less than 10 o less than 30 o less than 70 o More. Specify.

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BIBLIOGRAPHY
Crimp, M. and Wright, L. T. (1995) The marketing research process, 4th edition, Prentice Hall, London. Chapter 1, pp. 1-19. Imms, M. and Ereaut, G. (2002) Introduction to qualitative market research, Sage, London. Kumar, V., Aaker, D. A. and Day, G. S. (2002) Essentials of marketing research, 2nd edition, Wiley, New York. Chapters 2 and 3, pp. 29-66. Proctor, T. (2003) Essentials of marketing research, 3rd edition, Financial Times Prentice Hall, Harlow. Chapter 1, pp. 17-21. Saunders, M., Lewis, P. and Thornhill, A. (2003) Research methods for business students, 3rd edition, Financial Times Prentice Hall, Harlow. Chapter 7, pp. 188-220. Webb, J. R. (2002) Understanding and designing market research, 2nd edition, Thomson Learning, London. Chapter 3, pp. 31-45 De Vaus, D. A. (1996) Surveys in social research, UCL Press, London. Chapter 5, pp. 60-80. Donkers, B., Franses, P. H. and Verhoef, P. C. (2003) Selective Sampling for Binary Choice Models, Journal of Marketing Research, 40 (4), 492. Fink, A. (2003) How to ask survey questions, 2nd edition, Sage, London (Thousand Oaks). 193Hague, P (1993) Questionnaire Design, Kogan Page, London Nicholls William L., I. (1996) Highest response, Marketing Research, 8 (1), p. 5.

Websites:
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