Specialization Project

On

Analysis on marketing strategies of OTC

(Over the Counter) drugs used in
pharmaceutical industry.

Submitted in partial fulfillment for the award of the degree of

Master of Management Studies (MMS)

(under Universit y of Mumbai)

Submitted by

Tejas Vaibhav Dhorje

(Roll No. 214)

Under the Guidance of

Prof. Vikas Pande

2016-18

Sheila Raheja School of Business Management & Research

I
 CERTIFICATE

This is to certify that project titled “Analysis on marketing strategies of

OTC (Over the counter) drugs in pharmaceutical Industries. ” is
successfull y completed by Mr. Tejas Dhorje during the IV semester, in
partial fulfillment of the Master ’s Degree in Management Studies recognized
by the Universit y of Mum bai for the academic year 2017 -18 through Sheila
Raheja School of Business Management & Research.

This project work is original & not submitted earlier for the award of any
degree, diploma or associate ship of any other universit y/ Institution.

Name: Prof. Vikas Pande ( )

Date: _____________________ Signature of the Guide

II
 DECLARATION

I hereby declare that this project Report submitted by me to the Sheila

Raheja School of Business Management & Research is a bonafi de work

undertaken by me & it is not submitted to any other university or institution

for the award of any degree diploma/ certificate or published any time before .

Name: Tejas Dhorje

Roll no. 214

Specialization: Marketing Signature

III
 ACKNOWLEDGEMENT
I take immense pleasure in extending my sincere thanks to my project guide
Prof. Vikas Pande for providing valuable insights during the project. He was there to guide
me whenever and wherever I needed any help throughout the tenure of this project.

A special gratitude to Dr. Vijay Wagh, Director of Sheila Raheja School of Business
Management & Research, Bandra (E), Mumbai , for permitting to undertake this study.

I would like to express my profound gratitude to all faculties of “Sheila Raheja School of
Business Management & Research” for giving me this great opportunity.

Name: Tejas Dhorje

Roll no. 214
Specialization: Marketing

IV
 TABLE OF CONTENT

Table of Contents
Sr.
Topics Page No
No
Prefatory items
0.1 0.1 Cover page
0.2 0.2 Certificate
0.3 0.3 Declaration
0.4 0.4 Acknowledgement
0.5 0.5 Table of content

1 chapter 1 Introduction
1.1 section 1 Problem Statement
1.2 section 2 Research Objective
1.3 section 3 Hypothesis

2 chapter 2 Literature review

2.1 section 1 Marketing concept at glance
2.2 section 2 Marketing strategies by OTC companies
2.3 section 3 Advertising & promotion strategies in OTC drugs marketing

3 chapter 3 Methodology
3.1 section 1 Sample strategy
3.2 section 2 Research design
3.3 section 3 Data collection

4 chapter 4 Results

5 chapter 5 Discussion
5.1 section 1 Interpretation
5.2 section 2 Hypothesis testing

6 chapter 6 Conclusion

7 chapter 7 Bibliography

8 chapter 8 Appendices
8.1 section 1 Questionnaire

V
 Chapter No: 1

INTRODUCTION
Today in aggressive market, the marketing strategies frolic vital role in advancement of
products and services. There are numerous pharmaceutical companies in the industry head to
head with each other. Pharmaceutical companies are diversifying their marketing strategies to
survive with new challenges in the business environment. For last decade the Marketing
strategies have varied notably in Indian pharmaceutical industry. The companies are
tremendously promoting their OTC products to advertise them into the market. In his study
there is given emphasis on the importance of marketing strategies in the advocating of OTC
drugs. Marketing is termed as fulfilling needs and wants through a barter process. Within this
barter transaction customers and consumers will only exchange what they value (money) if
they feel that their demands are being fulfilled; clearly the bigger the benefit added the higher
transactional value a company can charge.
This research paper states various concepts and terms of different breeds of OTC drugs,
brain wave of marketing and strategy which will act as advertiser of OTC drugs. In
accumulation to these different marketing policies for OTC dugs are built in this study paper.
Now-a-days, Indian Medicinal Business is going through lot of changes after the introduction
of patented products in the country. Medicinal businesses are caring on changing their
marketing strategies to speed up with new head to head business environment. The study on
marketing strategies of OTC products stands on secondary data. Marketing strategy advances
have taken place in the Indian pharmaceutical industry. The advances taking place in
pharmaceutical companies as regards to the product marketing in the pharmaceutical industry
is greatly complex in nature. The big size of the companies and the complexions of their
courses and technologies cast several marketing challenges in promotion of OTC Products.
Marketing is termed as satisfying needs and wants of customers through an barter process.
Within this exchange transaction customers will only barter what they value (money) if they
feel that their needs are being fully satisfied; clearly the greater the benefit provided the
higher transactional value an company can charge.

1
 Chapter No: 1

PROBLEM STATEMENT
Analysis on marketing strategies of OTC (Over the Counter) drugs used in pharmaceutical
industry.

2
 Chapter No: 1

OBJECTIVES OF THE STUDY

 To study the various marketing strategies used for OTC drugs.

 To study the strategies influencing patients/customers for self-medication.
 To study the strategies those are proving effective on patients/customers.

3
 Chapter No: 1

HYPOTHESIS
1.

H0: Marketing strategies are not used for OTC drugs.

H1: marketing strategies are used for OTC drugs.

2.

H0: Strategies are not influencing patients/customers for self-medication.

H1: Strategies are influencing patients/customers for self-medication.

3.

H0: Strategies are not proving effective on patients/customers.

H1: Strategies are proving effective on patients/customers.

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 Chapter No: 1

RESEARCH DESIGN:
The data collection has been done through primary sources and secondary sources. It has
been ensured that the same is legit as well as reliable.

SOURCES OF DATA:

1. Primary Data
2. Secondary Data

PRIMARY DATA

The Primary data has been done through questionnaire answered by a sample of 100
patients/customers selected from Aurangabad City.

SECONDARY DATA

Secondary data was collected from various newspapers, journals, websites, reports and
magazines.

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 Chapter No: 2

LITERATURE REVIEW
MARKETING CONCEPT AT A GLANCE

Marketing definition has changed and advanced over a time, currently marketing is
based around providing continuous benefits to the customer, these benefits will be given and
a transferable exchange will take place.

Marketing needs co-ordination, outlining, implementation of campaigns and a

competitive manager(s) with the correct set of skills to ensure the success in their
achievement. Marketing ambitions, goals and aims have to be audited and affront, competitor
strategies considered, foreseen and exceeded. Through active use of marketing strategies an
organization would be able to identify the demands, needs and wants of the customer and try
to fulfill their needs by bring benefits that will enhance or add to the customers lifestyle,
while at the same time assuring that the satisfaction of these needs fruits in a hefty turnover
for the organization.

According to Philip Kotler ‘marketing is the process of satisfying needs and wants through an
exchange process’ In this barter transaction customers will only exchange what they value (m
oney) if they feel that their needs are being fully satisfied; clearly the greater the benefit
provided the higher transactional value an organization can charge.

'Marketing is not about providing products or services it is essentially about delivering

benefits to the changing needs and wants, demands of the customer. A constant, systematic
market opportunity analysis always holds the key to success in the aggressive market. Raising
competition, governments’ controls, growing consumerism place a premium on innovation
and customer relationship management.

The pharmaceutical industry is the world’s largest industry. The industry has seen major

changes in the recent years that place new demands on payers, providers and manufacturers.

Customers now demand the same choice and convenience from pharmaceutical industry that

they find in other segment. Indian Pharmaceutical Industry is poised for high consistent

growth over the next few years, driven by a multitude of factors. The pharmaceutical industry

is a knowledge driven industry and is heavily dependent on Research and Development for

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 Chapter No: 2

new products and growth. However, basic research (discovering new molecules) is a time
consuming and expensive process and is thus, dominated by large global multinationals.

The Indian pharmaceutical industry came into existence in 1901, when Bengal Chemical &

Pharmaceutical Company started its maiden operation in Calcutta. The century saw the

pharmaceutical industry moving through several phases, largely in accordance with

government policies. Commencing with repackaging and preparation of formulations from

imported bulk drugs, the Indian industry has moved on to become a net foreign exchange

earner, and has been able to underline its presence in the global pharmaceutical arena as one
of the top 35 drug producers worldwide.

TERMINOLOGIES OF DRUGS:

Medication or pharmaceutical readiness (a medicine):Any substance or blend of substances

produced, sold, offered available to be purchased, or spoken to for use in ... the finding,

treatment, relief, or counteractive action of malady, irregular physical state or the indications

thereof in man or creature; {and for utilize in} re-establishing, revising or adjusting natural

capacities in man or creature. Pharmaceutical make: All tasks, including obtaining of

material, handling, creation, bundling, quality control, discharge and capacity of therapeutic

items and related control Nonspecific Medicine: Medicines that are distinguished by a clear

or authority name, as contradicted to marked prescriptions Marked Medicines: Medicines that

are recognized by an exchange name Licensed Medicines: Medicines whose deal is ensured
by patent rights. Over the Counter (OTC) Medicines: Medicines utilized for self-drug

purposes up to Timetable K and can be sold without a specialist's remedy. Doctor prescribed

Medicines: Medicines that may just be provided to the general population on remedy.

Restrictive Medicines: Pre-bundled drugs planned for self-prescription, which are made,

bundled and named as per the necessities of the enlistment specialist in the nation of

appropriation and are promoted straightforwardly to the Purchaser. Moral Medicines:

Branded doctor prescribed medication Pharmaceutical chemicals: Production includes the
make of the dynamic fixings in a concoction plant and is firmly like - for sure can be

7
 Chapter No: 2

considered piece of - the fine concoction industry which likewise covers chemicals for such

items as colours and pesticides. Pharmaceutical arrangements: principally worried about the

physical tasks required to deliver pharmaceuticals in attractive shape Dynamic Ingredients:

Those substances that influence the coveted cure, at the end of the day they are dynamic

restoratively. Dormant Ingredients: Also called beneficiaries, and incorporates additives,

diluents, stabilizers, and so on Trend-setter Drug: A medication that gets a patent on its

synthetic definition or Fabricating process, acquires endorsement from the FDA or any

administrative specialist after broad testing, and is sold under a brand name. Leap forward

Drug: The principal mark name medication to utilize a specific restorative system that is, to

utilize a specific strategy for treating a given infection. Me-Too Drug: A brand-name sedate

that uses an indistinguishable restorative component from a leap forward medication and in

this manner contends with it specifically. Single-Source Drug: A brand-name tranquilizes that
is still under patent and in this manner is typically accessible from just a single producer.

Various Source Drug: A medication accessible in both brand name and nonexclusive forms

from a assortment of producers. Official Name: Name of drug as it shows up in the

Pharmacopeia.

PROCEDURE OF FORMULATIONS OF OTC MARKETING COMPANIES:

"A procedure is a hierarchical arrangement of activity that is planned to move an association

around the accomplishment of its shorter-term objectives and, at last toward the
accomplishment of its crucial purposes." Though OTC advertising Companies and market is

growing - value levels are rising. This combined with expanded individual spending, fuelled

by monetary development and more prominent access to therapeutic care is helping the

market grow. Current situation in the household business shows that there is a tremendous

undiscovered potential. Be that as it may, the industry needs to address some execution

related issues in the residential markets. While numerous OTC showcasing Companies have
effectively sent a overflow of systems to focus on the different client writes, late business and
client patterns are making new difficulties and open doors for expanding benefit. Utilization

8
 Chapter No: 2

of therapeutic agents for promoting items to doctors and to apply some impact over others in

the chain of importance of leaders has been a period tried custom. Business procedure plan

relates to area heading and route, or how organizations contend in the zones they have chosen

by OTC advertising Companies. Corporate procedure detailing alludes basically to area

definition, or the choice of business regions in which the association will contend. As the

physician recommended drugs patent terminates in the area the procedure of keeping up and

showcasing of patent terminated is futile. Henceforth another space of exchanging OTC

medications and deliberately it requires new point of view of advertising OTC items in the

current markets. At last Functional methodology detailing contains the subtle elements of

how the utilitarian regions, for example, promoting, activities, back, also, research should

cooperate to accomplish the business-level procedure. Corporate procedure choices on

changing Rx item to OTC are made by the CEO as well as leading group of executives. On

the off chance that an association is just engaged with one zone of business, at that point

business methodology choices have a tendency to be made by similar individuals. In

expanded associations, business procedure choices are made by division heads or specialty

unit directors. Practical choices are made by useful directors, who speak to hierarchical

territories, for example, activities, fund, work force, bookkeeping, innovative work, or data

frameworks. Methodology usage: It includes making an example of choices and activities

that are expected to do an arrangement. Methodology execution includes making the practical

procedures, frameworks, structures, and procedures required by the association in

accomplishing key closures. Practical systems layout the particular activities that each
capacity must embrace to change over business-and corporate-level methodologies into

activities. Vital control alludes to the procedures that prompt changes vital way,

methodologies, or the usage arrange for when fundamental, the key administration process is

normally not as consecutive or straight as inferred by the past discourse. The exercises are

normally performed at the same time, with steady changes in accordance with suspicions,
bearing, systems, and procedures as new data is found out and new evaluations are made.

Key rebuilding ordinarily includes a restored accentuation on the things an association does
all around, joined with an assortment of strategies to rejuvenate the association also, fortify

9
 Chapter No: 2

its focused position by advertising assortment of items in OTC classification. The

conventional procedure for creating Strategy comprises of examining the inside and outside

conditions of the association to touch base at hierarchical qualities, shortcomings, openings

and dangers (SWOT). The outcomes from this "circumstance investigation", as this

procedure is in some cases called, are the reason for creating missions, objectives and

methodologies of purchaser medicinal services divisions. Ecological determinism contends

that great administration is related with figuring out which methodology will best fit

ecological, specialized and human powers at a specific point in time, and at that point

attempting to complete it. From this point of view, the best association will be the one that

best adjusts to existing powers. The standard of authorization, on the other hand, accept that

associations don't need to submit to existing powers in the condition—they can, to some

extent, make their surroundings through vital collusions with partners, publicizing, political
campaigning.

GENERAL MARKETING STRATEGIES

These set the course for all advertising endeavours by depicting, when all is said in done

terms, how showcasing will accomplish its targets. There is a wide range of General

Marketing Systems, however most can be seen as tending to be categorized as one of the
accompanying classifications:

Market Expansion – This system hopes to develop general deals in one of two ways:

Develop Sales with Existing Products – With this approach the advertiser tries to effectively

increment the general offers of items the organization right now advertises. This can be
achieved by:

1) Getting existing clients to purchase more;

2) Getting potential clients to purchase (i.e., the individuals who presently can't seem to
purchase); or Selling current items in new markets.

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 Chapter No: 2

Develop Sales with New Products – With this approach the advertiser tries to accomplish

targets through the presentation of new items. This can be expert by: 1) acquainting refreshed

variants or refinements with existing items; 2) presenting items that are expansions of current
items; or 3) presenting new items not already showcased.

Piece of the overall industry Growth – This procedure hopes to build the advertiser's general

rate or offer of market. As a rule this must be proficient by taking deals from contenders.
Thus, this system regularly depends on forceful showcasing strategies.

Specialty Market – This procedure hopes to get an instructing position inside a certain portion

of the general market. Typically the specialty advertises is substantially littler regarding all

out clients and deals volume than the general market. In a perfect world this system hopes to
have the item saw as being unique in relation to organizations focusing on the bigger market.

The present state of affairs – This technique hopes to keep up the advertiser's present position

in the showcase, for example, keeping up a similar level of piece of the overall industry.

Market Exit – This technique hopes to expel the item from the association's item blend. This
can be refined by: 1) pitching the item to another association, or 2) taking out the item.

DECISION AREA STRATEGIES

These are utilized to accomplish the General Marketing Strategies by directing the choices
inside critical showcasing territories (item, evaluating, conveyance, advancement, target

advertising). For instance, a General Marketing Strategy that focuses on entering another
advertise with new items might be bolstered by Decision Area Strategies that include:

Target Market Strategy – utilize sectioning techniques. Pharmaceutical showcase division is a

two stage process .one the level of the clients and second the customers Pharmaceutical OTC
market is more rely upon the second level as specialist's Intercession is negligible in OTC

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 Chapter No: 2

utilization by shoppers in minor infirmities. An all-encompassing perspective on division

process would empower the OTC promoting organizations and pharmaceutical organizations

to grow genuinely necessary bits of knowledge and viewpoints that are basic for building up
a triumphant system in this OTC market which is yet excessively investigated as in west.

Item Strategy – grow new product offering and successful item administration for

achievement will help in overseeing existing brands, sustaining new items and creating them
to fruitful brands

Estimating Strategy – make value programs that offer lower evaluating versus contenders

cost can be utilized as a compelling instrument of advertising correspondence .understanding

the mental impacts o evaluating and the correspondence the view of purchasers on the
evaluating will help in growing new system.

Appropriation Strategy – utilize strategies to access imperative circulation accomplices that

benefit the objective market. Overseeing appropriation channels is changing with the change

in current exchange positions .it has turned out to be multidimensional in the event of OTC

items as they are dealt with a greater amount of Fast-moving human services products like

FMCG. Advancement Strategy: make an arrangement that can rapidly manufacture

consciousness of the product. Understanding of how correspondence technique functions are

imperative to figure correspondence technique which is devouring centric. OTC advancement

are done through T.V advertisements, newspaper adverstiments and numerous more
specialized apparatuses are used to advance the item .An average OTC publicizing ought to
have discerning interests, enthusiastic interests and handiness of the items in a promotions.

MARKETING STRATEGIES BY OTC COMPANIES

A plan is a business outline of action whose meaning is to move an institute toward the
attainment of its near term objects and, ultimately toward the improvement of its important
goals. Though OTC drugs companies and its bazaar is increasing - price levels are rising.
This together with augmented personal expenditure, fuels financial growth and advanced
access to medical care is helps in increasing the OTC market. Current scene in the national

12
 Chapter No: 2

industry shows that there is a enormous intact latent. But, the business needs to consider
some performance allied issues in the local markets. On the other side many OTC Drugs
promotion companies have suitably invested an excess of policies to aim the various kinds of
clienteles, recent business and customer movements are creating new hostilities and chances
for raising success. Use of medical representatives (MR) for promotion products to doctors
and to dig some effect over others in the ladder of choice makers has been a reliable custom.
Business strategy beginning related to province direction and investigation, or how
businesses compete in the subdivisions they have selected by OTC Drugs marketing
administrations.

Business strategy formulation refers chiefly to sphere definition, or the selection of business
areas in which the organization will compete. As the remedy drugs patent perishes in the
domain the strategy of upholding and marketing of patent expired is unusable and worthless.
Consequently, a new domain of substituting OTC drugs and tactically it requires new
standpoint of marketing OTC products in the present markets and even in unexploited
market. Ultimately, the functional strategy formulation contains the details of how the
functional areas such as marketing, operations, finance, and research should work together to
achieve the business-level strategy. Corporate strategy decisions on switching Rx product to
OTC products are made by the MD and BOD and CEOs.

Vital aspect of any pharmaceutical industry is its OTC drugs marketing policies especially
what appears when pharmaceutical crops losses the patent panoply, it is vital to consider
whether legitimate change is actually necessary. It may be possible that the pharmaceutical
product/drug is operating in an alcove category that is way small to attract challenging
generic competition, at least in the near term. It could also be that the alertness and image of
the brand is so strong in patients’ and doctors’ minds that it would retain most of its fairness
even after the loss of patent protection. Marketing strategies available for a prescription drug
facing competitive climate from existing generic product include a trade-off among brand
building and price competition. A company can also hangout to no marketing oriented
strategies such as legal efforts to enhance patent protection or clever alliances with generic
makers and can concurrently implement different strategies, thereby creating a hybrid model.

Low Price strategy:

Narrowing the price gap with revital addresses the main problem generated by the expiry of
the patent; that the equity of the brand can no overlong sustain a huge price differential with

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 Chapter No: 2

what is, initially, the same product. At the outrageous, contrasting the cost and the
nonexclusive will make specialists, drug specialists and controllers aloof between the two and
may drive the weakest nonspecific producers out of the business, given their lower economies
of scale. Then again, value rivalry welcomes striking back and can rapidly deteriorate into a
value war that would execute every one of the benefits in the class. Another issue to be kept
in mind here is that most doctors who prescribe the drug are not aware of prices. Conveying
the cost to the buyers is along these lines a basic piece of this technique

Strip system:

This system includes decreasing all special and research costs once the brand faces
coordinate rivalry from revital and diverting the investment funds towards brands that are as
yet ensured with patent. Now and then, this showcasing system really includes cost
increments to take profit of the higher brand value of the brand among the littler portion of
no-nonsense faithful clients.

This methodology prompts the most reduced levels of brand working as the brand isn't
bolstered and value rivalry as the value advantage isn't tested. The accomplishment of this
system relies upon the dormancy of specialists, patients and the other individuals. At the
point when their inspiration to change to the recently accessible nonexclusive is low, either
due to low budgetary motivators or solid connection to the brand or to the estimation of brand
value for financing innovative work, such a technique can convey high productivity, in any
event finished the here and now. Over the more drawn out term, be that as it may, the benefit
of this methodology relies upon the versatility of the even other patent secured medications to
the extra limited time ventures.

Incentive for the cash:

Presenting as good as ever flavors, bundling, or conveyance frameworks can prompt extra
enthusiastic or utilitarian customer benefits in the pharmaceutical business.

This type of differential enhances the awareness and image of the brand and hence increases
its brand equity. Because these innovations typically do not extend patent life however, it is
more difficult to pass the costs on to the consumer when facing generic competition and
hence, this strategy’s lead is one step ahead towards price competition. Also, these upgrades
can be effectively replicated by generics and therefore regularly have just a feeble effect on
deals, while diminishing edges.

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 Chapter No: 2

Development system:

Pharmaceutical organizations can develop by propelling new structures and doses or by

exhibiting viability for new signs. They can likewise advance by offering better
administrations for specialists and better correspondence on the ailment and on the brand
through higher advancement by the restorative agents (MR). Contrasted and the above
expressed technique, this choice likewise involves low value rivalry, however can enhance
the value of the off-patent brand by offering extra patent security. Then again, advancements
require a very long time of research before being approved and, in a few nations, don't really
expand the span of the patent. Give more an incentive to the cash presenting better than ever
flavors, bundling, or conveyance frameworks (e.g. simple to swallow pills, or patches) can
prompt extra enthusiastic or practical shopper benefits.

SYSTEMS FOR MARKET LEADERS:

The association destinations and assets, administrative states of mind to hazard, the structure
of the market, Competitor's systems and essentially, the association's position inside the
market. The centrality of market position and its frequently coordinate impact upon
procedure has been talked about in detail by a wide assortment of journalists, the vast
majority of who propose ordering aggressive position along a range from advertise pioneer to
showcase niches:

Market pioneer:

In the larger part of Pharmaceutical organizations there is one firm that is for the most part
perceived to be the pioneer. It regularly has the biggest piece of the pie and, by uprightness of
its evaluating, promoting force, dissemination scope, and mechanical progress what's more,
rate of new item presentations, it decides the nature, pace and bases of rivalry. It is this
strength that normally gives the benchmark to other organizations in the business. In any
case, it should be accentuated that market administration, albeit regularly connected with
measure, is as a general rule a more perplexing idea and ought to rather be found regarding an
association's capacity to decide the nature and bases of rivalry inside the market. A
qualification can hence be made between showcase authority that is construct principally
upon estimate, and what may be named 'thought authority' that is construct not such a great
amount upon estimate, but rather upon advancement and unique examples of reasoning.

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 Chapter No: 2

Market challengers and supporters:

Firms with a somewhat littler piece of the overall industry can embrace one of two positions.
They may receive a forceful position and assault other firms, including the market pioneer,
trying to pick up share and maybe predominance (showcase challengers), or they may receive
a less forceful position with a specific end goal to keep up the existing conditions (showcase
supporters).

Market niches:

For all intents and purposes each industry has a progression of little firms that survive, and
for sure frequently succeed, by represent considerable authority in parts of the market that are
excessively constrained in size and potential to be of genuine enthusiasm to bigger firms. An
a valid example would be Ranbaxy customer human services division would focus on OTC
fragments to fabricate expert market like in the event of Revital it has happened .along these
lines, showcase niches are ready to develop master advertise learning and dodge costly head-
on battles with bigger organizations. This way to deal with characterization has, thus,
prompted a significant talk of the vital choices for pioneers, challengers and niches, with
various analogies being drawn between business technique and military methodology.

In spite of the fact that a place of market initiative has undoubted attractions, both as far as
the scope that regularly exists to impact others and a conceivably higher quantifiable profit,
pioneers have very frequently in the past turned out to be powerless despite an assault from a
challenger or when looked with the requirement for a noteworthy innovative change.
Assuming, in this manner, a market pioneer is to stay as the prevailing organization, it needs
to safeguard its position continually. In doing this, there are three noteworthy territories to
which the showcasing strategist requirements to focus on grow the aggregate market,
Secondly to ensure the association's current offer of the market lastly to build piece of the
overall industry.

An outline of the manners by which pioneers may do, it is an extension of the generally
advertise from which the market pioneer ordinarily stands to pick up the most. It takes after
from this that the strategist needs to look for new clients, new uses and more noteworthy
utilization levels of his or her company's items. This should be possible in an assortment of
ways.

• Leaders: can grow the market, Protect the present offer and Expand share

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 Chapter No: 2

• Challengers: Discount or cut costs, Cheap merchandise, Innovate items and dispersion,
Improve administrations, Advertise intensely, Proliferate the range and Lessen costs

• Niches: Get keen

• Followers – Segment precisely, Use R&D cunningly and Challenge regular wisdoms.

PROMOTING STRATEGIES AND PRODUCT LIFE CYCLE OF OTC ITEMS.

Understanding the Product Life Cycle (PLC) is of basic significance to a firm propelling
another items organizations whose licenses of an items are going to terminate and the items is
going to bite the dust.. It causes a firm to deal with the danger of propelling another item all
the more successfully, changing over the items or changing the item to another class what
ordinarily pharmaceutical organization's do, while all the while amplifying the deals also,
benefits that could be accomplished all through the item's life cycle.

1. The Product Life Cycle of a pharmaceutical OTC items demonstrates that items have four
things in like manner: (1) pharmaceutical items have a restricted life expectancy; (2) their
business go through various particular stages, every one of which has unique qualities,
difficulties, and openings; (3) their benefits are not static but rather increment what's more,
diminish through these stages; and (4) the budgetary, human asset, fabricating, showcasing
and acquiring techniques that items require at each phase in the life cycle changes (Kotler and
Keller, 2006). While there is a typical example to an item's life cycle, which is ringer formed
in nature, this example varies relying upon the particular qualities of a given item. These life
cycle designs are delineated and examined in the consequent segment.

The common PLC comprises of five principle viewpoints:

(1) Product Development

(2) Introduction

(3) Growth

(4) Maturity

(5) Decline.

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 Chapter No: 2

In the graph underneath, the individual deals (in red) and benefits (in blue) over these five
phases are represented. The Product Life Cycle starts with item improvement, amid which
time the firm devises and makes another item. While the end point of this improvement
procedure is to have a gainful, well-performing item available, this underlying stage is
described by zero deals, the firm bearing the expenses of such improvement, ordinarily
bringing about negative benefit (Kotler and Armstrong, 2004). . In any case, regardless of the
significance of the item improvement process, the PLC writing tends to center around the
resulting four phases, which are talked about in more detail underneath. The presentation of
another item onto the market is commonly portrayed by moderate deals, which may become
just marginally finished a drawn out stretch of time. While benefits will bit by bit enhance
amid this stage, it might take until close to the culmination of the basic stage in the PLC
before the organization witness' sure gainfulness. The purpose behind such low benefit amid
this stage isn't so much the constrained achievement of the item – estimated as far as low,
though developing, deals – however the high expenses of creation and advancement that are
required to attempt to create client mindfulness. Contingent upon the idea of the item, the
firm numerous need to put resources into building inventories or securing settled resources,
for example, plant and apparatus. While this phase in the process can take quite a while and
devour significant assets, firms must not be enticed to attempt to acquire early benefit to the
detriment of long haul item feasibility.

For instance, presenting another item at a low cost may support a ton of purchasers to make a
prompt buy, yet the firm not just forfeits long haul deals in light of the fact that an excessive
number of individuals have purchased the item from the get-go yet in addition may
significantly lessen its edges, making it more troublesome and tedious before the item
initially moves toward becoming productive and hits its equal the initial investment level. In
that capacity, firms must settle on watchful decisions over their showcasing techniques;
specifically, their valuing, limited time and situation choices (Porter, 1980; 1985; Kotler et
al., 1996; Blackwell et al., 2001; Grant, 2002; Kotler and Armstrong, 2004). The
development organize in the PLC normally includes a fast development in deals as early
adopters supplant pioneers as the principle customer gathering. While pioneers are portrayed
as those buyers who buy items very quickly when new items are propelled, early adopters
hold up until the point that the value begins to fall and a portion of the item's potential
shortcomings are resolved. In any case, after some time the danger of buying another item

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 Chapter No: 2

one that isn't too tried and bolstered – diminishes and expanding quantities of individuals
wind up intrigued by, and buy, the item. Towards the second 50% of the development
arrange, later purchasers will begin to embrace the item as they get positive word-of mouth
proposals from individuals they trust. While benefits begin to increment amid this period,
they don't coordinate the development in deals.

This is on the grounds that the familiarity with the new item and development in item deals
make the advertise for the item more appealing to potential new participants and contenders.
Amid this time of high deals development, numerous contenders may enter the market,
Lessening the organization's relative piece of the pie and, all the while, its benefit. As the
business volume builds, the assembling and special spend per unit diminishes, which likewise
builds productivity. Regardless, if the firm needs this development stage to proceed quickly
without dwindling, it must put resources into including new item includes or enhancing the
nature of the item. This may not just pull in existing clients to over haul their present item
buy however it might likewise pull in diverse client socioeconomics that would commonly
not have been attracted to the item's highlights and usefulness. On the other hand, changes in
client bolster or the formation of simple to-utilize usefulness can enable the firm to obtain
more hazard disinclined buyers who require more prominent item bolster. After some time,
the organization may decide to diminish costs significantly trying to draw in more clients, or
package the item with different offerings that might approach the finish of their development
arrange. Regardless, it is commonly simply an issue of time before the item's development
begins to waiver (Porter, 1980; 1985; Kotler et al., 1996; Blackwell et al., 2001; Grant, 2002;
Kotler and Armstrong, 2004). The development organize in the PLC is a key point for a firm
since it denotes the defining moment in the item's prosperity. Ordinarily, the development in
deals diminishes essentially and maker's over-limit (that is, bigger than required inventories)
brings about a response by the firm and its rivals to cut costs. While this drags out the
development organize and the aggregate number of offers for quite a while, the drop in costs
has an unfriendly impact on the item's gainfulness, and benefit level, while still positive,
begins a descending slide. Numerous organizations, particularly single-item firms, will look
to each conceivable promoting administration procedure known to revive item deals,
regardless of whether this includes beginning new clients or market portions, or making
critical adjustments to the item, maybe enhancing its quality, dependability or some tasteful
component. Organizations, for example,

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 Chapter No: 2

GSK shopper medicinal services have figured out how to drag out this stage significantly
through knowledge marking, advancing the way that their chocolate bars are "unaltered since
1899". Without a doubt, while Ranbaxy figures out how to increment worldwide deals
through passage into extra markets, a large number of its center items have continued as
before finished critical periods; it has quite recently been their marking that has changed.
Eventually, the development organize turns into the key defining moment for organizations in
light of the fact that sooner or later amid this period, deals will begin to diminish and possibly
never encounter positive development again (Porter, 1980; 1985; Kotler et al., 1996;
Blackwell et al., 2001; Grant, 2002; Kotler andArmstrong, 2004). By and large this in the end
prompts the decrease organize amid which time the item's deals drop fundamentally and at
times, quickly, with benefits proceeding to fall until productivity turns out to be low to the
point that the item is suspended or an organization leaves deals to proceed however
acknowledges that the item has passed its center offering years. Amid this stage, a couple of
slow pokes receive the item however these are infrequently a productive client gathering.
Such a decay might be the aftereffect of mechanical improvements, changes in buyer buying
conduct or noteworthy increments in rivalry (Porter, 1980; 1985; Kotler et al., 1996; Kotler
and Armstrong, 2004; Grant, 2002).

On account of the last mentioned, worldwide items may experience the ill effects of the
departure of a patent permit or import securities that have generally kept an item's business
high long after its offering turned out to be generally uncompetitive. Accordingly, hindrances
to passage diminish; items might be substituted by modest imports that advantage from bring
down expenses of creation and a built up circulation arrange. Amid this period, firms in
further developed countries tend to refocus their endeavors on making new, high-esteem;
innovation sponsored items that can again accomplish a high cost and begin another PLC for
the organization (Doole and Lowe, 2004).Not all items take after the exemplary presentation,
development, development and decrease cycles. A few items can discover approaches to re-
contribute themselves toward the finish of their development organize or before they witness
the negative side of the development arrange. In this manner, they accomplish what Kotler
and Keller (2006) calls a scalloped example. As the creators remark: "Here deals go through
a progression of life cycles in view of the revelation of new-item qualities, uses, or clients"
(323). As an exemplary illustration, they point to nylon deals which have discovered various
need clients, for example, auto level, covering, hosiery, parachutes and shirts, among others.

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 Chapter No: 2

For instance, organizations, for example, Levi's have figured out how to re-create their pants
image using distinctive textures and cuts that have given their item another, energetic look.
Not withstanding

ADVERTISING AND PROMOTION STRATEGIES IN OTC DRUGS MARKETING

Marketing of OTC drugs products businesses require more arena workers to remind their
direct customer (doctor) of their goods. Moreover field workers should have good familiarity
of product schemes/offers and good relationship with retailers as well as doctors. Field power
also ensures obtainability of their products to persuade Chemist, General stores and Doctors
to Push their products some very serious planned and working level issues such as augmented
rivalry, low level of customer knowledge (doctors, retailers, wholesalers), good product mix
and outstanding marketing strategies but poor customer gaining, very high abrasion rate of
the sales personnel, very high territory growth costs, the number and the excellence of
medical representatives, demanding physicians giving less time for sales calls, almost no
mechanism of sales forecasting from field sales level, leading to huge deviations, absence of
analysis on the amount of time invested on profitable and not-so-profitable customers and
lack of time-share preparation towards emerging customer base for future markets etc. etc., A
effective product or service means nothing except the benefit of such a service can be
communicated clearly to the target market.

Advertising:

Advertising is defined as “any non-personal paid form of communication using any form of
mass media”. Direct to consumer ads in OTC marketing characterize only 20 percent of
pharmaceutical industry' marketing budgets. By the time a 30-second drug commercial airs,
the company has conducted months of segmentation studies, held several meetings to define
the "communication target" (typically a woman, usually a mother, and of a certain income),
and spent millions of dollars to develop the drug's brand and its market. This key showcasing,
which speaks to the rest of the 86 percent of medication advancement costs, ought to get at
any rate as much consideration from controllers and administrators as Direct to customer
promotions .the vast majority of the ad either OTC items or Pharmaceutical items.

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 Chapter No: 2

Deals advancement:

Deals advancements exercises are ordinarily used to expand offers of OTC medications in
here and now could include utilizing cash off coupons or exceptional offers. OTC Marketing
companies are seen more involved in sale promotion in the new formats of modern trade.
Personal selling: Selling a product service one to one or directly to the physician or customer.
The ideas of direct offering in OTC showcasing should be possible successfully as observed
in numerous FMCG items.

Post office based mail:

There has been a monstrous development in post office based mail battles in the course of the
most recent decade. Spending on direct mail now amounts to 18 billion USD a year
representing 11.8% of advertising expenditure (Source: Royal Mail 2000). Organizations’ can
pay thousands of dollars for databases, which contain names and addresses of potential
customers. Standard mail enables an association to utilize their assets all the more adequately
by enabling them to send exposure material to a named individual inside their objective
portion. By customizing promoting, reaction rates increment in this way expanding the
possibility of enhancing deals.

Message and Media Strategy

A powerful correspondence crusade should contain a well thoroughly considered message

you endeavoring to put crosswise over to your intended interest group? In what manner will
you convey that message? Will it be through the suitable utilization of marking? Logos or
trademark plan? The message ought to strengthen the advantage of the item and ought to
likewise help the organization in building up the situating system of the item. Organizations
with viable message methodologies include: Media technique alludes to how the association
will convey their message. What parts of the special blend will the organization use to convey
their message methodology? Where will they advance? Plainly the organization must
consider the readership and general conduct of their intended interest group before they select
their media procedure. What daily papers does their objective market read? What TV
programs do they watch? Compelling focusing of their media battle could spare the
organization on significant monetary assets. Push and Pull Strategies - system. What message
is Over a force system (left) push technique (right). Correspondence by the producer isn't just
guided towards purchasers to make request. A push technique is the place the producer thinks
some of their advertising exertion on elevating their item to retailers to persuade them to

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 Chapter No: 2

stock the item. A mix of limited time blend procedures are utilized at this stage went for the
retailer counting individual offering, and standard mail. The item is pushed onto the retailer,
thus the name. A draw technique is based around the maker advancing their item among the
target market to make request. Purchasers pull the item through the circulation channel
driving the distributer and retailer to stock it, subsequently the name pull system.
Associations tend to utilize both push and draw methodologies to make request from retailers
furthermore, buyers.

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 Chapter No: 3

METHODOLOGY

 Objective 1: To study the various marketing strategies used for OTC drugs.

The marketing strategies used by the pharmaceutical companies are strictly regulated by the
FDA and the PCI. Thus it is of interest to study the strategies of marketing that how the
pharmaceutical companies advertise these drugs which were only allowed for sale when
prescribed by a registered physician previously to a common man in today’s context.

 Objective 2: To study the strategies influencing patients/customers for self-

medication.

Pharmaceutical companies are using every possible media platform and ground level
marketing strategy to sell OTC products in market. But it is of interest to study that how this
is influencing the self-medication in patients who doesn’t have knowledge of medicines and
physiology.

 Objective 3: To study the strategies those are proving effective on patients/customers.

Pharmaceutical companies as well as some of the FMCG companies are making vast use of
media to promote their OTC products in today’s market. So which media platform is proving
to be the main influencer to bring customer to the steps of a pharmacy is of keen interest.

PARAMETERS USED TO SELECT SAMPLE

A set of questions was designed which was circulated to random people and their responses
were recorded based on the provided questionnaire.

SAMPLING METHOD
In this case, we will use Probability Sampling Method because, sampling frame is available
 Homogeneity is very high
 Density of the population is high

SAMPLING PROCEDURE
In this method we will be applying “Simple Random Sampling”.
 Age of buyers should be more than 18 years.
 People who buy OTC drugs/products from a pharmacy/general store.
 People who are aware of various OTC products through different media platforms.

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 Chapter No: 3

SAMPLE SIZE: 100

SAMPLE SIZE ESTIMATION
In order to estimate the sample size we will use the following formula:

n= (ZS/E)*(ZS/E)
Where,
E= Tolerance limit
S= Standard deviation
N= Number of elements (sample)
Z= Accuracy
CALCULATION OF SAMPLE SIZE
E= 5%
S= 0.525%
Z= 95

n= (ZS/E)*(ZS/E)
n= (0.95*0.525/0.05)* (0.95*0.525/0.05)
n= 100
Hence sample size is 100.

DATA COLLECTION METHOD:

Responses of the people who use or know about the OTC drugs/products were recorded
through Google form.
PRIMARY DATA:

Collection Instrument- Questionnaire

Contact Method – Social Media.
SECONDARY DATA
Secondary data was collected from the various Websites, Journals and Books.

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 Chapter No: 4

RESULTS
Question no.1: Age?

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 Chapter No: 4

Question no. 2: Sex?

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 Chapter No: 4

Question no.3:

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 Chapter No: 4

Question no. 4:

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 Chapter No: 4

Question no.5:

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 Chapter No: 4

Question no.6:

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 Chapter No: 4

Question no 7: Which product Ad do you recall?

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 Chapter No: 4

Question no. 8: Which category of OTC drugs/products Ad do you watch most?

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 Chapter No: 5

DISCUSSION
INTERPRETATIONS:

 Interpretation 1: It is interpreted that the age of the population between age group 23-
25 is more aware about OTC drugs/products.
 Interpretation 2: It is interpreted that male population is more aware about the OTC
drugs/products.
 Interpretation 3: It is interpreted that 58.6% population is aware about the OTC
drugs/products 27.1% of the population is not aware and 14.3% is not sure about it.
 Interpretation 4: It is interpreted that majority ie 31.7% of population knows about the
OTC products through TV commercials, 25.4% know it through pharmacy, 20.6%
recommended, 14.3% self-medication, 6.0% literature, 3.0% newspaper.
 Interpretation 5: It is interpreted that major population ie 51.4% goes for prescription
and OTC drugs/products both, 8.0% population takes self-medication, 40.0%
population takes prescribed drugs/products.
 Interpretation 6: It is interpreted that the reasons to provoke the population to buy
OTC drugs/products were 47.6% easy availability, 11.1% OTC prove more effective,
11.1% recommended, 11.1% Low Price, 8% celebrity endorsement, 7.5% don’t have
to pay doctor fees, 3% Better than prescribed drugs/products, 3% dosage form.
 Interpretation 7: It is interpreted that the majority of population 16% know about
Crocin, 13% know about Disprin, 6% know about Saridon and rest of population
know about other drugs/products.
 Interpretation 8: It is interpreted that the majority of population 15% knows about
Rubs/Balms, 13% know about contraceptives, 10% know about cold tablets, and rest
population knows about other drugs/products.

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 Chapter No: 5

HYPOTHESIS TESTING
SET 1.

H0: Marketing strategies are not used for OTC drugs.

H1: Marketing strategies are used for OTC drugs.

Interpretation: It is interpreted that the population is aware of the OTC drugs/products as

marketing strategies are used by companies to promote their drugs/products.

Conclusion: Marketing strategies are used by pharmaceutical companies to promote their

products. Hence H0 rejected and H1 accepted.

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 Chapter No: 5

SET 2.

H0: Strategies are not influencing patients/customers for self-medication.

H1: Strategies are influencing patients/customers for self-medication.

Interpretation: It was interpreted from the above data that people prefer both prescribed as
well as OTC drugs/products.

Conclusion: The marketing strategies used by the pharmaceutical companies influence

patients/customers for self-medication. Hence H0 rejected and H1 accepted.

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 Chapter No: 5

SET 3.

H0: Strategies are not proving effective on patients/customers.

H1: Strategies are proving effective on patients/customers

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 Chapter No: 5

Interpretation: It was interpreted from the above data that people recollect the media and the
drugs/products very well which are advertised by the pharmaceutical companies.

Conclusion: The marketing strategies are proving effective on the patients/customers. Hence
H0 rejected and H1 accepted.

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 Chapter No: 6

CONCLUSION
The OTC drugs can effectively be endorsed in the market if the product encounters security,
efficacy, and make brand in the attention of patrons. On the other pointer, the pharmaceutical
firm should use active advertising and publicity strategies to promote their merchandises in
the market and also build association with the vendors. The promotion of OTC drugs connect
the position and objects of the company for their customer and also make positive impression
on customers mind for long time. Today pharmaceutical companies are expenditure huge
amount over the marketing and promotion of their OTC markets. Especially an

Indian pharmaceutical establishments like Ranbaxy, GSK, Paras, etc. promote their products
over and done with advertisement. The victory of OTC drug market is merely depend on
appropriate promotion approach for their products. Therefore it is significant for the firm to
implement effective marketing media and advertising mass media to communicate their OTC
crops to the customers.

Products are situated as food complements that support the health of patients. Starting points
of the strategy are:

 Brand names of food supplements - easy to recollect

 Visual diversity through packaging – individuality
 Abstract show of elements/effects on wrapping
 Modern and clear design - related with modern urbane technology

The concept for the brand name is to mark the effect which food supplements have on the
human body (some names are a blend of ingredients that are contained or the organ for which
they are intended, others mark the effect).

On the bundles is shown present day realistic typography idea, letters add to fun loving
nature, visual greatness and legitimacy, supplemented by body parts that influence the
supplements. Organs are displayed in an intriguing cubist way, by underscoring the tissue as
a maker of each organ and this gives unique moderate standpoint that separates it as novel
bundling test.

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 Chapter No: 6

Correspondence goals are: making organization mindfulness, advancing a line of sustenance

supplements, promotes instruction of target group of onlookers for their activity and the
method for utilization.

Target crowds are experts - specialists, drug specialists, affiliations and non-legislative
associations, and the overall population- Medias.

Limited launch phase (preparatory phase) is represented by testing the products with special
target groups (physicians), building company credibility and presentation of products among
experts.

Introduction phase of food supplements is represented by presenting the company and

announcement of products – public relations, launch, positioning, point of sale and point of
purchase support, creating awareness (cooperation with portals that have headings for health)
through mass electronic media - TV and print media campaigns for the professionals and
general public.

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 Chapter No: 7

BIBLOGRAPHY

Journal:
 Analysis of Marketing Strategy for Food Supplements and Over-The-Counter
Medicines, Marjan Dzeparoski and Suzana Trajkovic-Jolevska; Open Access Maced J
Med Sci. 2016 Sep 15; 4(3): 499–503.

Website:
 https://www.fda.gov/

Books:
 Pharmaceutical Marketing: Strategy and Cases Hardcover – Import, 24 Oct 1991 by
Mickey C. Smith
 Building Global Biobrands: Taking Biotechnology to Market Paperback – April 27,
2009
 Pharmaceutical Marketing: A Practical Guide, Dimitris Dogramatzis, October 1, 2001
by CRC Press Reference - 400 Pages ISBN 9781574911183 - CAT# PH118X

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 Chapter No: 8

APPENDICES

QUESTIONNAIRE
Question no 1: Name

Question no 2: Age
19-21
21-23
23-25
25-27
27-31
31-40
40-49
49-52

Question no 3: Sex
1. Male 2.Female 3.Other

Question no 4: Do you know about OTC (over the counter) drugs/products?

1.Yes 2.No 3.Maybe

Question no 5: How did you come to know about these products?

1.Tv 2.Newspaper 3.Pharmacy 4.Recommendation 5.Social Media 6.Litererature

Question no 6: Do you take medicines through doctor’s prescription or self-medication?

1.Prescription 2.Self-medication 3.Both

Question no 7: What provoked you to take OTC products over prescribed drugs/products?
1.Celebrity 2.Endorsement 3.Easy Availabillity 4.Don't have to pay Doctor 5.OTC products have
proven moreeffective 6.Reccomendation 7.Low Price 8.Better Flavour 9.Dosage form

Question no 8: Which product Ad do you recall?

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 Chapter No: 8

1.Saridon 2.Disprin 3.Vicks 4.Benadryl 5.Cipla 6.Ranbaxy 7.I-pill 8.Crocin 9.Revital

10.Moov 11.Other 12.Don’t Remember

Question no 9: Which category of OTC drugs/products Ad do you watch most?

1.Cold Tablets 2.Vitamins/Tonics 3.Digestives 4.Medicated skin treatment 5.Cough Syrups
6.range 7.Contraceptives 8.Rubs/Balms 9.Others.

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