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CONDUCTED AT
Submitted in partial fulfillment of PGDM (Post Graduate Diploma in Management) batch (2009-2011) summer training project under the guidance of:
MR.DEEPAK MIGLANI, Scientific Business Officer, Dr Reddys Lab (Organizational guide) Prof.V.K.SURI, Faculty Member, ITS (Institutional guide) FACULTY-ITS SUBMITTED BY: ANURAG TIWARI PGDM (2009-11)
APPROVAL SHEET
(H.O.D. PGDM)
(Director)
TABLE OF CONTENTS
TOPIC
PAGE No 4 5 6 8 31 32 37 50 52 53 54
Organizational and Study Area Profile Findings & Analysis Suggestions & Recommendations Limitation of the Study & Conclusion Bibliography Annexure
ACKNOWLEDGEMENT
It is a matter of great pleasure and honor to work as a summer trainee in a prestigious organization like Dr.Reddys Lab. The preparation of any report calls for the contribution and co-ordination from many others besides an individual alone. It is a matter of meticulous efforts put in by many minds that contribute to the final report formation and this one is no exception. Several people have made this report possible through their valuable inputs. It gives me pleasure to express my gratitude to my project guide Mr. Deepak Miglani (Scientific Business Officer) for his guidance and support right from the beginning of the project till the preparation of final report. I would also like to express my sincere gratitude to Mr. Himanshu Diwedi (SBO), Prof V.K.Suri (Faculty Member, PGDM, ITS) and all the Faculty member of ITS for their invaluable suggestions. I would take the opportunity to thank Prof. Durba Roy who helped me getting into such a prestigious organization like Dr. Reddys Lab to pursue summer training. I would like to extend my thanks to the respondents who gave the interview and contributed their precious time for my research work. My study would really have been incomplete without their cooperation. I would also like to acknowledge my family members and friends who encouraged me throughout my study. There are a number of people involved in the successful completion of my dissertation work without the help of whom; I would never have been successful in my endeavors.
PREFACE
In I.T.S, PGDM program has been designed keeping in mind the requirement of companies in the world at large. We, as a student of I.T.S are required to undergo a summer internship in any industry related to their field of interest after the completion of 2nd semester, where the students have to prepare a project choosing a particular area of specialization. Practical exposure essentially forms a crucial base of theoretical learning. I completed my summer training on the topic ANALYZ THE LEVEL OF PRESENCE AND
PREFRENCE OF DR.REDDYS PORDUCT IN DERMATOLOGY SEGMENT
at
DR.REDDYS LAB, Delhi. This period was marked by good experience of exposure and joy. This 45 days summer training program provided me with an opportunity to know the organizational environment, the business practices of a system and the problems involved with retaining and increasing the market share of the organization. During this period I was able to enhance my knowledge in the field of marketing. It actually gave me a chance to test the real water. The research was carried out in order to find out the market potential of Dermatology segment (Hair loss, Anti Acne, Sunscreen), and to come to know the availability of new Sunscreen products launch by Dr.Reddys in the light of working environment. This comprehensive work is definitely a result of my 45 days hard work and I anticipate that it would be liked by my mentors and also help me immensely in my future learning in the marketing sector.
EXECUTIVE SUMMARY
This study was conducted in the urban areas of South Delhi; comprising of Chiraag Delhi, Yusuf Saray, Lajpatnagar, Saket, Hauz Rani, Malviya Nagar, New Friend Colony, Safdarjung, Hauz Khas, Mehrauli, Sarai Jullena, Lodhi Road, South Extension, Kotla, Jungpura, Maharani Bagh, Okhla, Vasant Vihar, Kalkaji, Defence Colony, Greater Kailash, Munarika, Taimor Nagar, Vasant Enclave, Khanna Market, Khan Market, Mahipalpur, Mehrauli and Ranjpura Road. In this study 300 Chemists (both Whole sellers and Retailers) were personally interviewed through a pre coded, pre tested questionnaire. The study actually aims to find out the sale of different brands of Dermatology products under various segments like Hair loss, Sunscreen and Anti Acne. It also focuses to find out the popularity of Dr Reddys products and the competition it faces from other brands. The study also aims to find out the availability of Dr Reddys new launched products in the market. The purpose of taking up such a study was to actually find out the ways the dermatology products of Dr Reddys are marketed and the ways its products can maintain and expand its presence in the market. The study also unfolds the preferred brands of customers and doctors in the segments of hair loss, sunscreen and anti acne prevention which further helps to establish an interesting correlation between the demands of the various brands under these above mentioned segments with the respective sale of the products. It also helps to assess the performance of Dr Reddys products under various segments and the steps that can be adopted to improve its presence as well as sale in the market. In a way, the research findings can help to strategize the way these products are marketed and streamline the organizational efforts. In a way, the present study can prove useful for the organizational members to meticulously adopt ways to maintain the product repute as well as to maximize sales of its product in the market.
INSTITUTE OF TECHNOLOGY & SCIENCE, GHAZIABAD Page 6 2009-11
A major reason for interviewing the chemist was because; they actually act as an interface between a pharmaceutical company and their customers. They are the best people to tell about the sales of products and its popularity among the customers. They sometimes form the part of those untapped, unutilized potentials on which the company hardly banks on. Conducting such study not only touches this potential but also bridges the gap between the organization and this interface. In a way such research also helps the organization reach to its lakhs of customers in a particular region. A major finding of the study is that under the hair loss segment the market share of Mintop is very high, which is Dr Reddys product. Mintop is in a handsome position but at the same time Nexret which is the organizational product in the anti acne segment is not holding a major share of the market.
CHAPTER-1 INTRODUCTION
The Global Pharmaceutical Industry is at a growing trend. Most of the famous business forecasters have predicted that the demands of drugs would increase this year, thereby giving a positive push to the sales. The global pharmaceutical market is set to grow 4 percent to 6 percent next year, exceeding $825 billion, market intelligence and research company IMS Health (RX) said on Oct 7. This is higher than previous IMS estimates by one percentage point. Through 2013, the researcher predicts worldwide pharmaceutical sales will grow at a 4 percent to 7 percent compound annual growth rate and reach a market value of more than $975 billion in 2010.1There will be some sudden changes in the key market dynamics this year like growth in the US Pharmacy industry and despite the economic downturn the BRIC countries namely Brazil, Russia, India and China are expected to grow in the coming years. The BRIC countries (Brazil, Russia, India and China) are all becoming more industrialized and as the middle class grows, so does demand for quality healthcare. That presents new opportunities for smart companies with resources and infrastructure. These trends are seen across the board, not just in sales and marketing, but also in R&D as companies seek to reduce development costs and speed time to market by going to emerging markets where there is a much larger, untapped pool of newly diagnosed patients available.2Thus the Global Pharmaceutical Industry now looks quite promising. In a country like India, where there is a shift in the disease pattern. When we look back, the cause of most of the deaths in our country were due to serious epidemic that used to break earlier but now the Indian population has evolved and it faces disorder like stress and obesity that leads to high incidence of acute diseases. With increasing awareness and increased purchasing power, the Indian population has started spending on health care. Driven by increasing affordability, shifting disease pattern and modest healthcare reforms, the total consumer spending on healthcare products and services in the country grew at a compounded annual rate of 14% from 2000 to 2005. The pharmaceuticals industry which accounts for 15 to 20 percent in the total health care spend, grew at a compounded annual rate of 9 percent during this period.3
1. 2. 3.
A slightly healthier forecast for global pharmaceutical sales in 2010 b y Melly Alazraki. Strategic trends in Pharmaceutical industry by Sally Church, PhD Indian Pharma-2015, Unlocking potential of Indian Pharmaceutical Market by Gautam Kumar, Palash Mitra and Chandrika Pasricha
Yet there are a number of questions that remains unanswered like what will be the future potential of Pharmaceutical industry in India and how will it further evolve. However one thing is very true that, the increasing trend that this industry is showing and its major share in the health care industry has indicated the tough competitive environment which will be created among the Indian Pharmacy companies. In this regard several marketing research agencies have conducted research to study the future of Indian Pharmaceutical industry. One of such research was conducted by Mckinsey & Company using different growth models. The analysis shows that the Indian pharmaceutical industry will undergo a major transformation in the next decade. Six trends will influence the growth of Indian pharmaceutical industry namely, doubling of disposal income and the number of middle class house hold, expansion of medical infrastructure, greater penetration of health insurance, rising prevalence of chronic diseases, adoption of product 4 patents and aggressive market penetration by relatively smaller companies.
Graph-1: India will be among top 5 markets globally during 2005- 2015 US (196) China (23 India (14) France (14) Japan (14) U.K (13) Canada (12) Brazil (11) Germany (7) Source: IMS World Review, analyst projections, Mckinsey India Pharmaceutical Demand Model
4.
Kumar, Palash
The various factors that are held responsible for the immense potential Indian pharmaceutical Industry has are as follows: The influence of physicians remains very high in India. Growing prevalence of lifestyle disorder will spur the growth of specialty and superspecialty therapy. These diseases include chronic heart diseases, Diabetes, Asthma, Obesity and Cancer. Significant parts of Indian population BPL are now moving above the poverty line thereby an increase on basic health care and consumption of mass therapy drug is anticipated. Generic products will continue to dominate in the Indian Market till we the regulatory issues settled.
The Pharmacy sector has various segments. One of its branches is Dermatology, which deals with the disorders related to skin and hair. The cosmetic sector of our country is gradually converging with it and seeking solutions from the dermatology segment of Pharmaceutical industry. The present study reveals the market presence of various dermatology products of Dr Reddys Lab and its performance in South Delhi. The study is basically an assessment study and a bit exploratory which has emerged out of 45 days research work and is compiled into various chapters. The second chapter deals with the research methodology, third one deals with the organizational and study area profile, the fourth chapter deals with the findings and analysis section, the fifth chapter comprises of the suggestions and recommendations while the sixth chapter includes the conclusion. The study ends with the annexure section.
The value growth of Indian pharma market as per secondary sales for the
month of
Mar 2009 was higher at 18.4%, as compared to 13.3% growth in the month of Feb 2009, according the latest data from ORG IMS, a business intelligence firm The value growth as per Mar 2009 MAT once again touched the double-digit mark of 10.1%, with marginally higher growth, as compared to 9.8% as per Feb 2009 MAT. The value growth in the month of Mar 2009 was higher at 16.8%, as compared to 12.5% in the month of Feb 2009. The value growth as per Mar 2009 MAT (14.1%) was marginally higher as compared to Feb 2009 MAT (13.6%). In October 2008, sales in the Rs 35,000-crore drug retail market had dipped by 1.2%, the first time in many years, due to consumers shifting to cheaper brands and stockiest facing a financial crunch. However, retail sales have gradually strengthened and in February, it rose 13.3%. ORG IMS tracks the sales figures of stockiest and not the actual sales of drugs sold by over five lakh chemists across the country. During March, drugs worth Rs 2,908 crore were sold to stockiest. Despite the brief slowdown in growth in 2008, ORG projects the Indian pharmaceutical industry to grow at 15-20% over the next few years. The industry has been growing at 14-15% over the last few years Due to economic prosperity, a lot more customers are entering organized healthcare, antibiotics and acute therapies are normally the first line of defence, say analysts. Rising disposable income, improving health infrastructure such as the governments incentives to set up 100-bed hospitals in non-metro towns, and the general increase in
health awareness due to deep penetration of the electronic media are the corner stones of sales expansion. Even though export and overseas trade remains key for most of the domestic companies, many of them derive nearly 40% of their sales from the desi market. As far as MNCs in India are concerned most of the sales are generated in urban or semiurban areas. However, multinationals like GSK, Sanofi-Aventis, MSD India (Merck) etc., have started tapping the rural sector too, of late, realizing their growing potential. Indian pharmaceutical companies are able to provide FDA approved facilities for the complete range of services for drug development. R&D services, API sourcing, finished formulation manufacture and clinical trials can all be completed in India, at less cost than in many developed markets. The leading Indian pharmaceutical companies are also beginning to increase market presence and market share in the US and EU markets. The Indian pharmaceutical market is entering a pivotal period of change. Although it is unlikely to see significant growth before 2011, it expects extensive company activity as the leading Indian pharmaceutical companies strive towards international
competitiveness. Global pharmaceutical companies have already begun to take advantage of the changing regulatory and economic conditions in India. The following five years will see further merger and acquisition activity, including key overseas acquisitions.
COMPETETIVE DYNAMICS
The Indian Pharmaceutical Market to 2011.Traditionally has been characterized by a core competency in generics manufacturing and relatively immature capabilities in R&D. This outlook has evolved substantially since the 1990s and Indian companies have been making investments towards expanding drug discovery and development capabilities. The acceptance of patent laws and the rise of contract manufacturing have led to the diversification of revenue streams, enabling Indian pharma companies to experience high market growth.
The Indian Pharmaceutical Market to 2011 provides a detailed analysis of the leading players and discusses how they are planning to sustain growth over the next five years. MNCs have a modest representation among the top 20 companies in the Indian pharmaceutical industry. As the market leader, GSK captured a 6.3% share, illustrating the highly fragmented nature of the market. India has an established domestic industry, responsible for around 8% of world pharmaceutical production. The larger domestic companies are striving to compete in the global market for both generics and original products. The market is dominated by low priced, domestically-produced generics and relatively low per capita expenditure on pharmaceuticals. Driven by a huge patient base, increasing incomes, improving healthcare infrastructure and strong penetration of health insurance, the pharmaceutical market is expected to grow more than double its size in the next five years.
ADVANTAGE INDIA
Competent workforce: India possesses a skillful work force with high managerial and technical competence. Cost-effective chemical synthesis: The track record for development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. Legal & Financial Framework: India is a democratic country with a solid legal framework and strong financial markets. There is already an established international industry and business community Information & Technology: It has a good network of world-class educational institutions and established strengths in Information Technology.
Globalization: The country is committed to a free market economy and globalization. Above all, it has a 70 million middle class market, which is constantly growing. Consolidation: After many years, the international pharmaceutical industry has discovered great opportunities in India. The process of consolidation, which has become a popular phenomenon in the world pharmaceutical industry, has started taking place in the Indian pharmaceutical industry as well. The Indian pharmaceutical industry which is worth US $ 3.1 billion is growing at the rate of 14 percent per annum.
GOVERNMENT SUPPORT
On the regulatory front, govt. is also trying to promote the growth of this industry by providing tax exemption on all services carried out by the contract research and clinical trials industry. In the product patent regime, many Indian pharma companies have embarked on R&D activities to achieve a sustainable long term advantage. These are now adopting innovative funding models to advance their R&D activities. R&D investment today account for 7-9% of sales for leading pharma companies.
The Pharma Export Promotion Council (Pharmexicl) has been constituted with the objective of:
Exports thrusts to various products through workshops, conferences, seminars and delegates visits.
Cost competitiveness
STRENGTHS
WEAKNESS
Weakness
Low level of biotechnology in India Inadequate regulatory standards
OPPURTUNITIES
OPPURTUNITIES
Clinical research
THREATS
THREATS
Dr. Anji Reddy (Chairman of Dr. Reddys Lab): The fact that 80% of the worlds
population still has little or no access to medicines led us to develop a long term strategy. For several years, our access to medicines divisions has been carrying out and co-coordinating initiatives focused on several areas like anti-allergic, skin diseases, anti infective, neurology, nephrology, cardio-vascular, central nervous system, dental, orthopedic, oncology, respiratory,
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Surgery, mental health etc. Thanks to our efforts in R&D and production. We are helping to provide medicines at prices aligned with local needs. Dr. Reddys Foundation was recently conferred the Corporate Citizen Award under The Economic Times Corporate Excellence Awards 2007-2008 by a jury of global business leaders What is significant is that the jury chose Dr. Reddys for this honor over other worthy nominees not only because of our focus on CSR, but also because our core business philosophy contributes to society at large. Over the years, I have become more convinced than ever that the corporate sector, with its entrepreneurial and institution building skills, can play a significant role in developing and scaling up innovative, workable models that yield measurable results both within and outside of the organization. There are opportunities for good all around us. The question we must ask ourselves is whether we will stand on the sidelines or seize the opportunity to have an enduring impact on our world through our business and beyond it. As we have done in our business, we have similarly harnessed the power of collaboration in executing social initiatives to derive the maximum impact from each one. For example, the safe drinking water project that Dr. Reddys anchors with the non -profit organization Nandi, is another example of a sustainable model which is being successfully replicated in numerous villages covering a population of more than 2 million in the Indian states of Andhra Pradesh and Punjab. This project has won champions in both the private and public sectors, giving us good reason to believe that one day we will be able to ensure that all Indians have access to safe drinking water.
In order for sustainable development to reality, it must be a approach that is understood, thought out and integrated by all concerned.
We evolved from a small, $1 million India-centric company to a $1 billion global pharmaceutical player in the relatively short period of 25 years because we paid close attention to the needs and expectations of our stakeholders. We were often far ahead of the pharmaceutical industry in India in implementing good practices in areas such as Quality Assurance, Product Responsibility and R&D and in introducing progressive Safety, Health and Environment management policies
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and people policies. In many instances, we were pioneers in the Indian pharmaceutical industry, with a number of firsts to our credit _ from becoming the first to out license an original molecule to an innovator company to being the first company from India to enter a Global Phase III trial for our NCE.
Challenges and Opportunities o Providing Affordable and Innovative Medicines o Financial Performance o The Environmental Imperative o Developing the Leaders of Tomorrow
Every journey if at all worth undertaking, is fraught with twists and turns, surprises and enormous rewards. Our journey of sustainability has had its share of all of these, and the lessons we have learned on the way have made us the respected global pharmaceutical player that we are today. We are proud of the trust and confidence we have inspired in our various stakeholders. It is this trust that drives our aspirations ever higher and gives fresh impetus and meaning to our Unwavering pursuit of sustainability.
Ravi Bhoothalingam
INSTITUTE OF TECHNOLOGY & SCIENCE, GHAZIABAD
Kalpana Morparia
Page 25
2009-11
Dr. Reddys Laboratories Limited (Dr. Reddys) was established in 1984, manufacturing ingredients for medicines. The Company was incorporated under the laws of Indian Companies Act, 1956 as a Public Limited Liability Company. At a time when India was largely dependent on imports, Company began operations with a single drug facility near Hyderabad, India. In 1986, the first consignment of Methyldopa was shipped to West Germany, launching the Companys foray into global markets. Subsequently, Dr. Reddys moved up the value chain, by entering the Finished Dosage business and launching its drug discovery program. Over the years, related diversification and acquisitions transformed Dr. Reddys into a leading pharmaceutical company from India. Companys stated purpose is to provide affordable and Innovative medicines for healthier lives. Dr. Reddys today is divided into three core businesses of Pharmaceutical Services & Active Ingredients (PSAI), Generics and Innovative Products. Businesses of company have a dual impact. Through PSAI and Generics business,they strive to make medicines more affordable globally and through their focus on Innovative products they address unmet or poorly met medical needs.
COMPANY
It is Indias second-largest pharmaceutical company. It is the first Asian company other than Japan to be listed in New York Stock exchange. It produces and sells Active Pharmaceutical Ingredients (API), Finished Dosages and Biologics. It manufactures ulcer medicines, antibiotics, pain relievers, anti depressants and cardiovascular drugs. The company carries out research and development (R&D) in diabetes, cancer, cardiovascular diseases, and inflammation and bacterial infections. It also has a significant presence in the biotech sector.
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PEOPLE
10000 + Employees 2000 + At International Locations 3300 + Marketing & Sales force 3300 + manufacturing staff 1700 + Research & Scientific personnel
Metabolic
AFFILATIONS Drugs Technical Advisory Board (DTAB) Indian Institute of Public Health The Energy Research Institute (TERI) Business Council for Sustainable Development (BCSD) in India Indian regional network partner of WBCSD Confederation of Indian Industry (CII) Indian Pharmaceutical Alliance (IPA) The Conference Board Sustain Ability, UK World Wide Fund, India Acumen Fund Young Presidents Organizations forum..
GLOBAL PRESENCE
. Global commercialization infrastructure with focus on US, Europe, India, and Russia. Manufacturing locations in India, UK, US, China and Mexico Research and development locations in India and the US Wholly-owned subsidiaries in the US, UK, Russia, Germany, Brazil, New Zealand, Turkey and Mexico.
Joint Ventures in China, South Africa and Australia Representative Offices in 16 countries. Third party distribution setups in 23 countries 79% of the company's revenues in FY08 came from geographies outside India.
VALUES
Focus on strong, sustainable and profitable growth, and company values Solidarity, Performance, Audacity, Respect, Courage and Creativity-are at the core of success: living those values on a daily basis is the key to future.
COMPANY LOGO
Logo consists of a person standing with both of its arms open. There are three terms written below the logo- Life, Research and Hope. These terms explains the enthusiasm, innovation and positive thoughts.
STRENTHS Wholly owned subsidiaries in US and Europe Joint ventures in China and South Africa Markets pharmaceutical products in 115 countries Partnerships with global pharmaceutical companies like Novartis, NOVO Nordisk, etc Manufacture and market over 250 medicines targeting a wide range of therapies Over 100 APIs developed Six New Chemical Entities(NCE .
WEAKNESS High amount of revenues from overseas Lack of resources similar to US and Europe based competitors to develop a drug to marketing stage. Smallest portion of revenues from generics at around 20%. Lack of patent legislation in India harms sales of its products
SWOT
OPPURTINITIES Take a molecule from its pipeline all the way to the market place cost-effectively market Buy back of the integrated drug development company from ICICI Ventures and Citigroup Domestic Generic drugs market In another 4-6 years, many product patents obtained after the 2004 legislation will go off providing an opportunity to the company increase its domestic footprint in Generics THREATS Needs to gain FDA approval for all sources and products Products have to pass strict FDA trials before going to market, which can be costly and time consuming This may delay the company entry to particular markets which affects revenue Competition from US and European Companies Reddys lost the case against Pfizer for the use of generic form of Norvasc drug.
CHAPTER-2
CHAPTER-3
The ethics of the organization is to focus on strong, sustainable and profitable growth, and company values Solidarity, Performance, Audacity, Respect, Courage and Creativity-are at the core of success: living those values on a daily basis is the key to future.
REFINEMENT
Each experimental protocol must be approved by an Ethics Committee that evaluates the scientific justification for the study, the appropriateness of the techniques employed and/or the animals used as well as taking into account the pain the animal may experience . Dr. Reddys lab places particular attention on ensuring that pain is define and monitored for each case.
The ethics committee is also in charge of defining and accessing the studys endpoint so that it is acceptable as humane as possible. In addition, all animals are under the care of veterinarian.
COMPANY LOGO Logo consists of a person standing with both of its arms open. There are three terms written below the logo- Life, Research and Hope. These terms explains the enthusiasm, innovation and positive thoughts.
Indian Pharmaceutical Alliance (IPA) The Conference Board Sustain Ability, UK World Wide Fund, India Acumen Fund Young Presidents Organizations forum.
It has global presence through Global commercialization infrastructure with focus on US, Europe, India, and Russia, manufacturing locations in India, UK, US, China and Mexico, research and development locations in India and the US, wholly-owned subsidiaries in the US, UK, Russia, Germany, Brazil, New Zealand, Turkey and Mexico, joint ventures in China, South Africa and Australia, representative Offices in 16 countries, third party distribution setups in 23 countries and 79% of the companys revenues in FY08 came from geographies outside India.
1483
76, 07234 62, 43273
Capital of India and the third largest city in India, lies at an altitude of between 700 and 1,000 feet (213 and 305 meters) and covers an area of 1,485 square kilometers. Situated on the Yamuna River (a tributary of the Ganges River) Delhi is bordered on the east by the state of Uttar Pradesh and on the north, west, and south by Haryana. South Delhi, where the study is conducted include areas like Chiraag Delhi, Yusuf Saray, Lajpatnagar, Saket, Hauz Rani, Malviya Nagar, New Friend Colony, Safdarjung, Hauz Khas, Mehrauli, Sarai Jullena, Lodhi Road, South Extension-2, Kotla, Jungpura, Maharani Bagh, Okhla, Vasant Vihar, Kalkaji, Defence Colony, Greater Kailash, Munarika, Taimor Nagar, Vasant Enclave, Khanna Market, Khan Market, Mahipalpur and Ranjpura Road.
Ratino A
Ratino AC Supertret
The data was gathered by interviewing the Chemists. The Red line represents that of sales of Nexret that are dropping down.
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This depicts several other things like less popularity as well as less
demand of Nexret.
Nexret is not the most preferred product for Anti acne in the market. On examining minutely, it is observed that though Nexret sales
performance is good where 90 chemists report that they sell around 0-5 bottles of Nexret in a month, however in the next category comprising of sale of 5-10 bottles.
1763 893
270
The market covered by Nexret is approximately 11.15% of whole market. It is approximately 430 out of 3856. Ratino A & Ratino AC are the main competitor of Dr. reddy in Anti Acne segment. Ratino A is covered almost 50% of Anti Acne market.
Execare
48.25
51.74
To diversify his product Dr. Reddys Lab Introduce Execare. The availability of Execare in South Delhi market is approximately 48.25%. Compony has to give some value added service to promote Execare.
80 70 60 50 40 30 20 10 0
77 71 62 64 57
77
0--5 5--10
26 18 5
Mintop
28 20 13 1
Hair for you
26 16
7
1
Minoxy
Tugain
Coverit
Mintop which is the organizational product holds a handsome position in the market in comparison to other hair loss preventing products. MIntop Capture more then 65%% of total Market. One of the interesting finding was that during winter the sale of Tugain increases invariably, however there is no specific reason found out for such a finding. Except seeling of 0-5 bottle per month MIntop leads to all other segment . Huge demand of Mintop is there. MIntop not only prescribe by the doctors, it is in use also because of Suggestions, Recommendation by friend. Mintop 10% have leading market. The main competitors are coverit and Minoxy.
Approx sales
1600
1400 1200 1000 800 600 400 200 0 Mintop Hair For you Tugain Coverit Minoxy
1485
Mintop
Hair For you Tugain
472.5
467.5 347.5
475
Coverit Minoxy
The graph represents the monthly sales of Maintop, quantity wise in comparison to other hair loss products available in South Delhi The approximately sale of Mintop is 1485 out of 3248, Which is 45.5% of total market. According to a survey Mintop has covered more over 65% of total market.
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Mintop is leading brand in there own Segment. Mintop Prescription not only Comes from the doctors, Coverit and Minoxy are also trying to make their own market in hair loss segment . They covered approximatly 30% of over all market.
AREA COVERAGE BY MINTOP Mintop
34.04 65.95
Other products
Nexret is Dr. Reddys lab Product which covered Approximately 10% 0f over all market. The main competitors are Ratino A & Ratino Ac. 90% area covered by other big Players in this Anti Acne market.
Nexret Other products
9.92
90.07
90
90 80 70 60 Suncross Sungrace 40 30 Photoban
71
50
18
20 10 0
0--5 5--10 10--15 15--20 20--25
Graph depicting monthly sales of Sun screen products in South Delhi The Graph above not only shows the sale volume of the various sunscreen
brands in the market but also depict that these brands have not only penetrated in the market but also established themselves especially Sun cross
Approx sales
1400 1200 1000 800 600
1245
385
400 200 0
Suncross Sungrace
355
Photoban
Graph representing the sunscreen product having maximum sales also the most preferred brand by the Chemists
It is well known that the sunscreen segment is a potential as well as crucial segment in the dermatology section for any pharmaceutical company because it is not that people use medicated sunscreen only when they are prescribed by a clinician but sometimes also use because of its effectiveness or when they come any of the promotional activities like advertisement. To cater the sunscreen market Dr.Reddys Lab launched product named Shadowz. To capture this market company need to provide some value added service to the customer. The big player of this segment like Sunscreen covered approximately 60% of whole market. Sunscreen sales in a month are very high with 1245 out of 1985. The availability of Shadowz in the market is very less. Its Approximately 19% in South Delhi market.
Shadowz 18.40
Avaiable Not Available
81.59
RECOMMENDATIONS
Some Research Recommendations for the Organization:1. Strong marketing advocacy of its products among Doctors and maintaining good relations with Chemists by adopting measures to increase their revenue from the products so that they provide an initial push to the products. 2. More focus on promotional strategies especially for the newly launched products like advertisement on TV, Radio, print media or mobile advertisement or even by developing CDs or other tools like proper inserts with the product to enumerate its benefits. 3. Concentrated effort has to be made to focus on the entire distribution channel all over Delhi. 4. A good and effective team of Medical Representative should be involved to advocate the
products among the Doctors.
5. Product should be promoted by the help of film shows from which doctors are influenced
significantly.
6. Creating the brand awareness through corporate social responsibility among the consumers. 7. Developing customer relationship management efficiently through. Analyzing customer revenue & cost data to identify current & future high value customer. Targeting direct marketing efforts. Creating new distribution channel. Managing logistics & the supply chain more efficiently. Deploying knowledge management system. Tracking customer defection & retention levels. Tracking customer service satisfaction levels by conducting surveys and research or taking feedback from time to time. Employing proper monitoring and evaluation tools to track customer satisfaction.
At the broader level or at the planning level the company should shift focus from market share capture to market creation. That means the untapped potential should be focused more. The organization should also try to adopt new and differentiated business models because with the ongoing changes in the market opportunities and competitive scenario a homogeneous business model cannot be replicated everywhere. The Company should also make efforts to strengthen sales and marketing capabilities like new product development, proper marketing management and increasing sales force effectiveness.
CHAPTER-6
The Indian Pharmacy industry has immense potential. If the pharmacy companies put concentrated efforts they can maximize their efforts. The Dermatology sector has itself the power to transform and grow in future and it can be a sector in which the Organization can bank upon.
BIBLIOGRAPHY
BOOKS
Marketing management by Philip Kilter. Marketing research by David.J.luck and Ronald S. Rubin. Strategic marketing management by Wilson Gillian.
WEB SITES
www.dr.reddys.com www.google.com
www.dbresearch.com
ANNEXURE
Brands
Doctors Name
Mintop ,M. forte ,M. 10 Hair 4 you Tuegain{foam, gel} Coverit Minoxy
Sunscreen
Anti-acne
0.1%}
New Products
Product
Availability
Any Comments:--