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Identifying factors affecting decline of sales in

Acneaid brand in topical anti-acne


preparation market with special reference to
Colombo district

Name - Hasantha Athauda


Reg No - 0000016962
The Problem And Scope
Background of the company

GlaxoSmithKline (GSK) is the world leading research-based pharmaceutical company with a


Powerful combination of skills and resources to provide a platform for delivering strong growth
In todays rapidly changing health care environment.

GSK is the product of a number of mergers And acquisitions. The merger made GSK the worlds
number one pharmaceutical company.

Background of the problem

GlaxoSmithKline have different types of products. Stiefel is a GSK company, which is improving
the Quality of life for those affected by skin conditions around the world. Stiefel has both
prescription and consumer products. Under consumer or non-prescription products they have
Acne-Aid-Bar, Oilatum, Stieprox, Lacticare, Sustid Bar etc.

In my study the main concern is on Acneaid which is product which dominate the acne market
for several years. However still the market leader position in Topical Anti Acne preparations is
held by Acneaid. But though, we hold the number one position we are de-growing by 18%.
Whereas total anti acne market growing by -3% quarterly.

Problem statement

Acneaid is significantly de growing compared to Anti acne preparation market.


The Problem And Scope

Market Product IMS


70000 20
3.88
16 15 16
65000 10 8
2.34 11
1.48 2 1
60000 1 4 2
0
10.5 -3 -3
-8
55000
-10

-19
50000
-20

45000
2010 2011 2012 2013 2014 -30
2011 2012 2013 2014 2015

Product Growth Source - IMS data 2012/2013/2014/2015


The Problem And Scope
Significance to Company
Growth of the company will be ensured, and further can increase the quality by increasing more budgets for
research and development.
And will be able to expand the operations by recruiting new staff.
Can go for more new molecules for various diseases
Significance to Country/ Economy
New job opportunities can come out.
Can reduce of the flow of money out from the country.
Significance to Doctors
Doctor can prescribe a good quality product at a reasonable price.
Better patient compliance or good patient feed back.
Doctor can build a reputation among the Patients.
Significance to Patient
Can follow the whole course of drug due to reasonable price
No need to discontinue the treatment.
Significance to Researcher
Identify the factors which affecting the decline of Acneaid sales
Introduce suitable remedies, solutions and recommendations to grow acne aid sales
The objective/s of the research

Primary objective

To identify the factors affecting decline of Acneaid sales.

Secondary objective

To Gain double digit growth for Acneaid


To have Doctors opinion about Acneaid.
To identify the promotional strategy for different level of Doctors.
To find out the satisfaction level of middle level consumers (chemist)
Delimitations of the study
The Major delimitation is that GSK doesnt want to share needful information as
they said the information cannot be disclosed.

Doctor response rate is low due to their busy schedule.

Chemist unwillingness to disclose the information regarding over the counter


products. Since unethical practices taking place Owners of the pharmacies was not
willing to give the accurate information.

Hospital entry restrictions limits the information which need to be acquired inside
the hospital.

Collection Of secondary data is confined due to the Sri Lanka Medical Council
regulation regarding exposure of sensitive data.
Brief literature review

Kotler, P. and Keller. 2006. Marketing Management, (12th Ed.). New Jersey: Prentice Hall.

Salter (1977) analyzing patterns of competition within the industry noted that the major factors that give firm major
competitive advantage and lead to high level of concentration are,
Patent
Product innovation
(Slater (1977) 'patterns of competitions within the industry', Journal of Marketing Research, (), pp. .)

Reekie (1975) observed that pharmaceutical demand is not very price sensitive, and price competition is rare in the
industry. The reasons advanced
The level of consumption is determined by the requirement imposed disease incidence, not by price.
(Reekie (1975) 'Pharmaceutical demand', Journal of pharmaceutical marketing, (), pp. .)

According to Joel Dean the length of the product life cycle is governed by the rate of technological change, the
rate of market acceptance and the case of competitive entry.

Boundless. Decline. Boundless Marketing. Boundless, 21 Jul. 2015. Retrieved 29 Oct. 2015 from
https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/products-9/product-life-
cycles-69/decline-346-889/)
Brief literature review

Rao(1991) states that the key feature influencing the demand for any individual pharmaceutical product is the
extent to which the product gains doctor's acceptance and this depends on a large number of factors including the,
product's Therapeutic value
state of the art in medicine
sales promotion undertaken by the manufacturer.

IMS data (Intercontinental Marketing Service in Pharmaceuticals)


2012
2013
2014
2015

Annual Health Bulletin 2012


(Ministry Of Health (2012) Annual heath bulletin, Sri lanka: .)
(Stiefel a gsk company, Available at: http://www.stiefel.com.my/products/acne.html(Accessed: 25th October 2015).
Methodology of perspective
Conceptual Frame Work

Independent Variable Dependent Variable


Product Growth

The Rate Of Technology Change

The Rate Of Market Acceptance

Competitor Entry And Behaviors Product Growth

Employee Commitment and Effectiveness


The approach to data collection
The data collection of the report includes collecting a questionnaire from Doctors, pharmacies in Colombo area.
Because 80% acne aid sales are coming from this region. Oral communication of the employees in the marketing
department and studying files and practical experience of the doctors.

Primary Sources
Close ended separate questionnaire to chemists and Doctors.

Secondary Sources
Desk report of related department
GSK website.
Annual report
IMS data
Category Description Of Category Population Sample Size Sampling Method
Stratified Random
Doctors General Practitioners 356 75
Sampling
Simple Random
Doctors Dermatologists 10 10
Sampling
Stratified Random
Chemist Pharmacies in Colombo area 143 60 Sampling

Random Sampling
Medical Promotional
Employees 50 20
Delegates

165
Methodology of perspective cont..
Operationalization

Concept Variable Indicator Measurement Methodology

The Rate of
Customer Quantitative
Technology Change Likert Scale
Satisfaction Questionnaire
(Product)

Rate Of Market
Customer
Acceptance Likert scale Quantitative
satisfaction through
(Product) Questionnaire
cost and quality

Product
Growth Doctor Call Average
Employee Quantitative
Product Knowledge
Commitment and Doctor Coverage Questionnaire
Test
Effectiveness Product Knowledge
Likert Scale
(People)

Competitor
Competitor Entry & Movements & Quantitative
Likert Sacle
Behaviors Customer Questionnaire
Satisfaction
Analysis Doctor Sample
45

40 Prevelence of Acne

35 42
14% 30

25 31
20

15

86% 10

5 11 1 0
0
Strongly Agree Agree Neutral Diagree Strongly Disagree

YES NO

Question 2 Question 1

Acneaid has high opportunity and potential in anti-acne preparation market. According
to my data collection more than 85 % of Physicians are confirmed they agree on the
above mentioned statement.

According to the collected data more than 85% doctors are convinced to use a cleanser in
mild to moderate acne associated with oily skin. However our focus should be on
remaining 14% of doctors
Other
Low Resistent Development T3Acne Bar 4% Acnex
2 16% 13%
High Effectivness
29
Cetaphil
Better Compliance 22%
18 Acneaid
Acnezeel 39%
Less Side Effects
ProAcne
2%
21
4%
Cost Effective
15

Question 3 Question 4

According to the above chart doctors concern was mainly on the fact of effectiveness of the
product to patients, because acne is a disease which affect patients quality of life. However the
better compliance and less side effect factors also have a considerable number of comments.

The interesting factor to identify was that still there are 61% of doctors are prescribing
competitor brand as a cleanser and also 39% of doctors are confirmed that their trusted brand
for cleansing purpose is Acneiad.
22
Strongly Disagree 14 21
19
Disagree 13

11
Neutral 6
9

Agree 48
3
Strongly Agree 4
Prodcut Quality Prodcut Efficacy Cleansing Regualr visits by First Brand Other
Technology MPD come to mind

Question 5
Question 6
According to the above chart it is evident most of doctors, when they get an opportunity to
prescribe a brand as a cleanser they prefer the Acneaid. This chart further strengthen the fact
of market acceptance rate is low.

22% doctors are convinced to prescribe Acneaid due to the cleansing technology which has in
Acneaid.

13% comment they prescribe Acneaid due to regular visits of the MPD. So this shows the
importance of the MPD visits. So its further strengthen the fact of MPD commitment and
effectiveness impact on the sales decline.
12 11
10

32% 8

NO 6
YES
4 4
3 3
68%
4

2
2

0
Well Known Regular Visits of Product Efficacy Reasonable Good Quality Prodcut
Brand MPD Price Technology

Question 7 Question 8

According to the Q5, 68% of doctors prescribe other competitors while prescribing Acneaid.
32% doctors confirmed they are fully convinced with Acneaid and no need try other cleansers
available in the market.

40% doctors convinced to Acneaid because of its efficacy.


18 15
11
8

1
0
Never Heard about Long time it has Cheaper brands Not interest to Company support Medical Rep not Advanced Product
this brand been in the market availble prescribe a cleanser visiting availble

Question 7
In this chart 19% doctors comment Acneiad is been in the market over a period of time
and now most of the patients has use the product already. Now patients seek new
treatment options. Because of that they shifting to competitor products.

25% of doctors comment they prescribe other competitor cleanser products due to
their technical enhancements. This is a positive sign of the rate of the technological
change.

Interesting point is 31% of doctors shifting to competitor brands due to the irregular
visits of the medical promotional delegates
Analysis Chemist Sample

T3
44 Acnebar
Acneiad
20%
51%
Proacne
7%
Ot

9 Acnex
4 20%
3
0
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Acnex Acneiad T3 Acnebar Proacne Other

Question 1 Question 2

Chart further proven the fact of market acceptance is low in the prevailing market. This
is further proving the market acceptance is low in doctor category as well.
Excellent Good Bad

Quality 14 44 2

Supplier Service 5 43 12

Effectiveness 14 42 4

Compliance 8 50 2

6
Affordability 8 46

20
Prescription Flow 6 34

Question 3

The effectiveness of Acneiad is still in high rate. More than 90% Pharmacists
came to this conclusion of Acneaid effectiveness is high.

The flow of prescription, 33% of pharmacies comment that the prescription flow
is bad. This is point company should take in consideration.
Pharamciest Preference In Personal Use
Other 4 Other
Proacne Acnex
7% 3%
Proacne 1 Cetaphil
20%
22%
Cetaphil 13
T3 Acne
T3 Acne 9 8% Acneiad
40%
Acneiad 21
Acnex 12
Acnex Acneiad T3 Acne Cetaphil Proacne Other

Question 4 Question 5

35% pharmacists comment that the first brand name comes to their mind is Acneiad.
However other competitors also have considerable market share.

Acneiad is the most preferred brand among the pharmacists in their personal use. Another
22% pharmacists prefer Cetaphil. However 40% of chemist are convinced with the Acneaid
brand.
30
18 18
16 16
25

14

20 12

10
10

15 8 8
8

6
10

5 2

0
0 ALWAYS YES NOT AT ALL SOMETIMES MOST OF THE RARELY
Not at all Perhaps Sometimes Always TIME

Question 6 Question 7

More than 40% Chemists confirms that they get repeat patients who use Acneaid.

26% chemists said no complains about Acneaid. But 30% of chemist comment
patients have complain about efficacy of the product
25

22
20

15

11 11
10
10

6
5

ALWAYS YES NOT AT ALL SOMETIMES MOST OF THE RARELY


TIME

Question 6

36% of chemists said no complaints for Acneiad. This is also further strengthen
the fact of market acceptance. Market acceptance rate is low.
Analysis Employee Sample
PRODUCT KNOWLEDGE ASSESMENT Reach & Coverage
250

97
94

94

92
91

90
200

89
88

88

87
86

85
84

81

81
79

79
78

75
150

61
100

50

PRODUCT KNOWLEDGE Reach Coverage

Product Knowledge Reach Coverage


Count 20 20 20
Mean 84.95 153.8 217.5
Median 86.5 155 217
Mode 79,81,88,94 144,155,161 210,214,216,219,22
Key Findings
Relationship between rate of technological change, Competitor entry and behaviors
and Employee commitment and effectiveness has a positive impact on the sales
decline. Whereas rate of market acceptance is has negative impact.

Its Further proven the Reekie1975 theory price factor is not major barrier in
pharmaceutical marketing. ( Question Number 3,8,9)

61% of Doctors prescribes Competitor Brands.

31% of doctors shifting to competitor brands due to the irregular visits of the medical
promotional delegates.

33% of chemists comment the prescription flow of Acneaid is bad.

For the personal use 40% Chemists always prefer Acneaid.

MPDs product knowledge is averaging 86%. Considerably good.

MPDs Doctor reach Averaging 155 and Coverage Averaging 217.


Conclusion And Recommendations
Conclusion
According to my research findings market acceptance rate is low. There for Acneiad has a
longer Product Life Cycle.

32% of doctors comment that they are gradually shifting to other cleansers because of the
enhanced technology. So the Rate of technology change has positive impact on research
problem.

Competitor and new rivals has positive impact on Sales decline of Acneaid. 56% doctors
comment Acneaid using for Mild to moderate acne associated with oily skin but only 39%
doctors can recall Acneiad.

Employee commitment and Effectiveness has positive impact on the research problem. 40%
doctors prescribe Acneaid because of the regular visits of the Medical promotional Delegate. In
contrary 39% doctors will shift to competitor brand because of irregular visits of the medical
promotional delegate.
Recommendations
Expand the operations and reach maximum number of doctors in the doctor universe.
Virtual Detailing, Getting Use of Health.GSK
Multi-Channel Marketing
Sending emails, Mails and SMS to maintain doctor base.
Key Accounts( Nawaloaka, The Central, Richard Peiris)

Increasing Awareness level.


OPD meeting
Clinical Meetings
Dermatology Lectures
Chemist Meetings

Emphasis on tender opportunities.


Forces hospitals Tenders
Government Tenders
Colombo Municipal Council tender

Enter in to new markets


Ex: - Beauty Parlors, Super Market Promotions
In Sri Lanka Acneaid is registered as Over the Counter product. Therefor we can target untapped markets.

Continues training to medical promotional delegates.


Product Training
Effective Communication training

Launching new product


Other countries Acneiad available as a liquid cleanser. My suggestion is to bring down the product
Thank you