INTERIM REPORT
ON
RESEARCH PLAN
Title: The comparative study on promotion strategy and tools used in
pharma company with reference to Troikaa Pharmaceutical and Ranbaxy
Lab Ltd.
Objectives:
• To find out product which are doing well in the market of Troikaa
Pharmaceutical and Ranbaxy Lab Ltd.
Hypothesis:
The Indian Pharmaceutical Industry today is in the front rank of India’s science-
based industries with wide ranging capabilities in the complex field of drug
manufacture and technology. A highly organized sector, the Indian Pharma
Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent
annually. It ranks very high in the third world, in terms of technology, quality and
range of medicines manufactured. From simple headache pills to sophisticated
antibiotics and complex cardiac compounds, almost every type of medicine is now
made indigenously.
Playing a key role in promoting and sustaining development in the vital field of
medicines, Indian Pharma Industry boasts of quality producers and many units
approved by regulatory authorities in USA and UK. International companies
associated with this sector have stimulated, assisted and spearheaded this dynamic
development in the past 53 years and helped to put India on the pharmaceutical
map of the world.
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.
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. There are about 250 large units and about
8000 Small Scale Units, which form the core of the pharmaceutical industry in
India (including 5 Central Public Sector Units). These units produce the complete
range of pharmaceutical formulations, i.e., medicines ready for consumption by
patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and
used for production of pharmaceutical formulations.
Following the de-licensing of the pharmaceutical industry, industrial licensing for
most of the drugs and pharmaceutical products has been done away with.
Manufacturers are free to produce any drug duly approved by the Drug Control
Authority. Technologically strong and totally self-reliant, the pharmaceutical
industry in India has low costs of production, low R&D costs, innovative scientific
manpower, strength of national laboratories and an increasing balance of trade. The
Pharmaceutical Industry, with its rich scientific talents and research capabilities,
supported by Intellectual Property Protection regime is well set to take on the
international market.
ADVANTAGE INDIA
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.
Legal & Financial Framework: India has a 53 year old democracyand hence has
a solid legal framework and strong financial markets. There is already an
established international industry and business community.
Consolidation: For the first time in many years, the international pharmaceutical
industry is finding great opportunities in India. The process of consolidation, which
has become a generalized phenomenon in the world pharmaceutical industry, has
started taking place in India.
The marketing of medication has a long history. The sale of miracle cures, many
with little real potency, has always been common. Marketing of legitimate non-
prescription medications, such as pain relievers or allergy medicine, has also long
been practiced. Mass marketing of prescription medications was rare until recently,
however. It was long believed that since doctors made the selection of drugs, mass
marketing was a waste of resources; specific ads targeting the medical profession
were thought to be cheaper and just as effective. This would involve ads in
professional journals and visits by sales staff to doctor’s offices and hospitals. An
important part of these efforts was marketing to medical students.
Individual research
Physicians discover pharmaceutical information from such sources as
the Physician's Desk Reference and online sources such as PDR.net, as well as via
PDAs with applications.
They also rely upon pharmaceutical-branded e-detailing sites, pharmaceutical sales
and non-sales representatives, and scholarly literature. Scholarly literature can be
in the form of medical journal article reprints, often delivered by sales
representatives at their place of employment or at conference exhibitions.
Peer influence
Key opinion leaders (KOL), or "thought leaders", are respected individuals, such as
prominent medical school faculty, who influence physicians through their
professional status. Pharmaceutical companies generally engage key opinion
leaders early in the drug development process to provide advocacy and key
marketing feedback. Some pharmaceutical companies identify key opinion leaders
through direct inquiry of physicians (primary research).
Colleagues
Physician targeting
Marketers attempt to identify the universe of physicians most likely to prescribe a
given drug. Historically, this was done by measuring the number of total
prescriptions (TRx) and new prescriptions (NRx) per week that each physician
writes. This information is collected by commercial vendors. The physicians are
then "deciled" into ten groups based on their writing patterns. Higher deciles are
more aggressively targeted. Some pharmaceutical companies use additional
information such as:
Data for drugs prescribed in a hospital are not usually available at the physician
level. Advanced analytic techniques are used to value physicians in a hospital
setting.
By Charles Boulakia
To address all of these unique needs, you have to design your personal selling
strategy to have three key elements: a knowledgeable salesperson or sales team, an
understanding of your client, and a sales structure designed to give the salesperson
enough power to make an irregular sale but still get rewarded for it.
The Salesperson
The salesperson is the key to your personal sales strategy. So when you're
recruiting salespeople, you should be willing to recruit the best and expect to pay
them a premium. There are two routes you can follow: You can hire someone with
a good sales background and teach them about the science (or product); or you can
hire someone with a good scientific background and teach them about sales.
Usually, the choice you make will depend on how complicated your product is and
who your customers are. An electronic imaging product is likely to be pretty
technical, and your customer will likely be a doctor or a scientist, so you'll want a
scientist to be your salesperson, both for credibility reasons and to give the
customer what they're looking for. If the person buying your product is a hospital
administrator, you might think about hiring someone with sales experience instead,
because the administrator will be used to buying from nontechnical people and will
likely be more bottom-line oriented.
The salesperson is your only link to the client. This means that they need to know
the product inside and out, so that when the customer has a question or an issue
with the product, it can be addressed immediately and not shuffled off to another
staffperson. They also need to know the competitors' products, so they can give
accurate representations of why your imaging technology is better. So to allow the
salesperson to do their job well, you need to give them lots of information. You
also need to give your sales force considerable power. Power to make a deal.
Power to say "yes" to needed product customizations. And, of course, the power to
say "no" to a deal that won't make the company money.
Remember, also, that the salesperson is more than just a sales agent: They're a
research and development tool. Their interactions with customers give you more
information about what modifications need to be done to your product than any
other source. They're market intelligence (because they know what other products
are being sold, and why) as well as a way of making your own product more
customer-oriented.
The Client
Throughout the marketing section, we've used the phrase "Know your client." It's
just as important here as anywhere else. By understanding what your client needs
in a product, you can better give the salesperson the tools they can use to fulfill that
need. By understanding what a customer wants in a salesperson, you can tune your
sales team to be just that. Do they want a half-hour presentation or just a 12-second
pitch? A customized product they help design (and maybe write a paper on) or a
ready-to-use product, in their lab, tomorrow? Or maybe the purchaser isn't the user
at all: A hospital administrator makes the purchase decision, and a doctor uses the
machine. Understanding this will help keep you from wasting salesperson time on
selling the machine to the doctor, who's not authorized to buy it anyway.
Remember: In a personal selling strategy, your salesperson is your best friend. But,
depending on the system you've set up for them, that person can also be your worst
enemy. Determining an appropriate incentive system for a sales force can be the
most difficult job you'll have as a business person. The key is to keep your sales
force motivated, without any loopholes that they can use to take advantage of the
system. For example: By giving quarterly sales quota-based bonuses but also
giving the salesperson the authority to make big discounts, chances are, you're
going to get a lot of sales late in the quarter (as the salesperson desperately tries to
make their quota). But you'll also see a cost to those sales: Chances are, they'll be
discounted quite significantly, affecting your company's profits.
Determining a good incentive system for your sales force is very difficult and
depends very much on what you're trying to do and the product you're trying to
sell. You can reward the sales team based on short-term sales goals, long-term
sales, repeat sales, customer support, number of new prospects, underbudgeted
expense reports, or a whole lot of other things, but chances are, you'll have to fine-
tune this structure as your business evolves, to emphasize what you want your
sales force to do. Above all else, remember that your sales force isn't stupid and
that they spend about as much time thinking about their paycheck as they do trying
to sell your product, so the incentive structure you design will determine the
behavior your customer sees.
As per looking all the aspect which are discussed above I have got view of all the
promotional strategy and the can be used how these strategy useful of the
marketing the product of the company
Asia’s market potential has been widely discussed. Nearly 4 billion people,
coupled with economic growth, increasing affluence and a projected increase in
chronic diseases offer an opportunity to boost revenues at a time when blockbuster
drugs are nearing the end of their product lifecycle in the US and Europe.
Global marketing teams are also tasked with developing the business plans and
strategies that include marketing elements such as product proposition, branding
and pricing parameters. Of the four marketing P’s (product, price, place and
promotion), this essentially leaves local marketers with ‘Place and Promotion’ to
strategise. But, pharmaceutical product distribution channels are generally
consistent for all companies within each market so promotion is the avenue where
marketers can truly have an impact in the local market setting.
Prescription-products promotion
Promotional marketing strategies are impacted by factors such as product lifecycle
stage, market position, disease area and competitive activity. The one constant
factor is that physicians will ultimately have to write the prescription.
Physicians have therefore been the focus of most marketing campaigns. But, today,
the environment in which physicians are operating is changing and they are
increasingly influenced by many different groups and individuals with a stake in
the choice of treatment.
This changing environment means that marketing strategies cannot just focus on
physicians rather they need to address the broader group now influencing treatment
decisions.
Who are the influencers, what is their role and at what stage of the treatment
decision process are they involved?
What motivates each group? Which information channels do they routinely use?
How do they like to be talked to? For example hypertension, morbidity and
mortality may mean a lot to physicians, but to most influencers who are not
medically trained high blood pressure may be more relevant.
In most cases brands are created by the global team, but local market strategies
must continue to build upon this promise by carrying the brand through all
elements of the marketing mix.
Patient empowerment
Patient organisations are growing in number across Asia in many disease areas.
These groups represent patients’ interests in many ways, be it providing disease
and
treatment information to individuals or representing patient perspectives in the
media, with governments or physicians. These groups, however, need funding and
this comes from a variety of sources, including the pharmaceutical industry. As a
minimum, companies should work with third party organisations to ensure that the
information they are providing patients about treatment options is accurate. But,
more effective partnerships can be developed when common areas of focus
between company and organisation marketing strategies can be identified and co-
sponsored programs conducted.
Sales representatives will remain the most important vehicle for communicating
with physicians - they are the face of the company and are able to provide
individualised information that drives prescriptions. Much has been written about
sales force effectiveness - too much to cover here - but marketing teams can
support their representatives by implementing strategies that create an environment
that removes potential prescribing barriers and surrounds physicians with positive
product reinforcement.
In summary
Marketing strategies will play an important role if Asia is to realise its potential.
These strategies, however, should be tailored to the region and its countries.
Moreover, they will need to encompass not only the physician audience but also
increasingly the influencers who have the power to make or break a product.
Finally, pharmaceutical companies will need to become experienced in navigating
the consumer space with prescription products and ultimately turning
pharmaceutical marketing into brand marketing.
PROGRESS REPORT :
As the research is on promotion strategy and its tools which require to contact
Marketing Representative of both the company in reference to this I have met those
people for the collection of information regarding the particular. I have also tried to
gather the information about the efforts they put for implementation of the strategy
and the tools they are provide with. Usually they meet me in field as they are busy
in the Doctor chamber so I have to approach them over there. I have tried to collect
latest information regarding the strategy implied.
BIBLIOGRAPHY:-
www.pharmafocusasia.com
http://sciencecareers.sciencemag.org