Presented By:

Varun
Viral
Milan
Paresh
Kirit
Core strength of Indian Industry
Disease pattern
Alternative medicine
Patents
Doctors
Health insurance
Healthcare infrastructure
Information technology
CHANGING FACE OF INDIAN PHARMA

MNC-Domestic MNC-Domestic
Competition Collaboration
 Growth in disposable incomes & the
number of middle-class households
RETAIL PHARMACEUTICAL MARKET IN INDIA
 Expansion of medical infrastructure
20
 Greater penetration of health insurance US $ billion

 Rising prevalence of chronic diseases

 Adoption of product patents 4.6 6.1

3.4 3.9
 Aggressive market penetration

 Debut of organized retail chains 2000 2002 2004 2006 2015

Source: India Pharma 2015,

McKinsey & Co
 Threat of New Entrants
•Very low Barrier to entry
•Government polices supportive for
entry but price regulation exists.

•Economies of scale exists

Suppliers’ Bargaining
Power
Volume benefit occur
Inputs standard, available
locally
Numerous suppliers
switching cost low
•Proprietary technology and
product will exist after 2005
Intensity of Rivalry among
existing competitors
•Lower fixed cost and high working
capital.
Buyers’ Bargaining
Power
•End consumers do not have
bargaining power
•Brand identity exists but
It’s in the hands of
influencer (Doctors)

Suppliers can go for forward •Highly competitive •Rice sensitivity is less

integration
Raw material cost constitute
more than 50% of the total
expenses
•Top five players have mere 18% of
•Highly fragmented market,
market share
•Duplicate medicines so buyer concentration v/s
industry is low
Pressure from Substitute
Products
•No substitute for the medicines
•Biotechnology is a threat to
synthetic Pharma Products
1. Product- Portfolio related
The ability to be the first to enter the market
New product for existing Geographies and Existing Products for
New Geographies
Right kind of portfolio mix as per the prevalent disease pattern
Right positioning

2. Well- trained sales force

3. Integration to widen business opportunity

4. R & D effort to provide competitive advantage

5. Information technology to derive cost advantage & to be

customer responsive
6. Good manufacturing practices to provide
competitive advantage in terms of quality

7. Strong over-the-counter(OTC) brands

8. Exports- allopathic & Ayurvedic products

9. Strategic Alliance & Acquisitions

10. Business Design & Strategy

 Methods Awareness Comprehension Conviction Action

Journal advertising 1 2 2 2
Direct mailing, couriers 1 1 2 2

Promotional trials 1 1 2 3
Conferences and symposia 1 1 2 3
Clinical trials 4 2 2 1
Samples 1 4 4 1
Gifts 1 4 4 1
Newspaper advertisement 1 2 4 2
Free stand-alone 1 1 1 3
supplements
Telemarketing 1 2 4 4
Conference videos 1 1 1 3
Video Magazines 1 2 3 4
Audio cassettes - - - -
Television 1 4 2 1
Group detailing 1 2 2 4

1-Most Useful; 2-Useful; 3-Not Useful; 4-Least Useful

High Employee turnover compare to other sectors
retention Strategies (Mfg. & Mkt.)
Employee Development Program