PROJECT REPORT

ON

RETAIL PRESCRIPTION AUDIT OF CIPLA

PRODUCTS IN NOIDA
 TABLE OF CONTENTS

S.N. CONTENTS PAGE

NO.
1. INTRODUCTION 1
 Indian Pharmaceutical Industry Overview 2
 Research & Development Lifeline of the Pharma Industry 11
 Indian Pharma R&D SWOT 14
 Role of Pharmaceutical Industry in India 15
 Market Value of Pharmaceutical Industry 21
 Marketing Strategies and Business Promotion of the 27

Pharmaceutical Products in the Market

 Patent and WTO Impact 38
 Company Profile : Cipla 44
2. OBJECTIVES 55
3. RESEARCH METHODOLOGY 56
4. IMPORTANCE OF STUDY 61
5. ANALYSIS OF DATA COLLECTED 62
6. CONCLUSION 75
7. PROBLEM & RECOMMENDATION 76
8. BIBLOGRAPHY 77
9. APPENDIX 78
 ACKNOWLEDGEMENT

I herewith take the opportunity to express my profound sense of gratitude

and reverence to all those who have helped and encouraged me towards
the commencement of the project.

I would specially like to thank the owner of Khashu Medical Agency, the
Distributor for CIPLA Ltd in Noida area.

Last but not the least I would like to thank the other staff members and
friends from Institute, who helped me in various ways, which enabled me
to complete the project successfully and without their support this project
would have been a tough task to fulfill.
 INDIAN PHARMACEUTICAL INDUSTRY

AN OVERVIEW
The pharmaceutical industry has contributed to the nations growth in a

significant manner. It plays a very crucial role in building of a strong

human capital of a country which is essential for economic growth and

development. This is indicated by an analysis of several western

economies with wealthy human capital which have outperformed the

others.

Development of the Industry

The Indian pharmaceutical industry dates back to 1945, when multi

nationals entered the country. With free pricing the sector was operating

profitably. DPCO introduced by the govt. In 1970 and modifications

thereto reduced the profit margin forcing the MNCs withdrawing from the

many profitable product line. Indian enterpreneurs plugged this gap and

domestic pharmaceutical companies become stronger. The share of

Mncs dipped from around 70% of sale to under 40% between 1980 and

1985 and presently their market share is 30%.

India recognized only process patents during this period with the primary

and of providing wealth care to all at reversible rates. In this period,

domestic magnification is

Production Chain In the Indian Drugs and Pharmaceuticals Industry

Basic chemicals

Drug intermediates

Bulk drugs

Formulations
On the basis of production the focus areas of companies can be bulk
drugs, formulations intravenous fluids

Bulk Drugs Formulations Intravenous Fluids

1. Covers all 1. A medicine processed 1. They are critical life saving

products and out of one or more pharmaceutical
preparations bulk drugs. It also preparations, where the
used in the contains other quality of production of
production of ingredients like great significance. These
pharmaceutical binders for improving pharmaceutical
formulations cohesiveness and preparations and in
fillers to provide quicker replacement of
acceptable size. They body threads reunite in
are usually in the form recovery of the patients
of tablets, capsules from various infections
and injectibles.

2. The turnover of 2. The number of varied 2. The percent size of the IV

bulk drugs industry formulations produced fluids market in India is 30
increased in the country has cr bottles per annum. Due
tremendously in reached a staggering to the impending boom in
1960s Rs. 18 cr to figure,over the last the healthcare services
Rs. 1822 cr in decade. The cut- and also the rising per
1995-96. Despite throat competition in capita income, domestic
facing many this segment has demend is likely to register
hurdles like made it impossible for a high jump nearly 70
frequent regulatory companies to corner a percent over the next five
and strict quality large chunk of the years.
standards of drug market share.
imports this
industry has
managed to
maintain its
position as a net
foriegn exchange
earner for the
country.

3. Despite the presence 3. Till the 1990s,

of stiff competion IV(Intravenous) fluids were
the fourmulationhas manufactured mainly by
been able to achive small and medium scale
reasonable margins units .As a result, third
by concentrating on segment of the industry
high value added was forced to adjust with
products.Most of the poor quality standards
fourmulations have resulting from antiquated
integrated backward technologies and
to consolidate their inadequate facilities of the
position and small manufactures. The
improve profitability. large pharmaceutical
They have gone in companies stayed away
for the from this vital segment
manufacturing of because of various
bulk drugs required reasons like low demand
as inputs for their and price competition.
formulation

4. The operating profit 4. The main reason for this

margins of the different in profitability is
segment are quite the low value addition in
 low at 13.5 percent. the case of bulk drug
The net profit margin companies, as the raw
achieved by the materials cost account for
players operating in 60-70 percent of this
this segment of the value . Raw materials cost
industry have as a percentage for sales
averaged around 5 for companies in IV fluids
percent over the last segment is only around
couple of years. 25-30 percent and thus,
the value addition on
inputs carried out by IV
fluids manufactures is
extremely high.

5. For the players in 5. The operating and gross

this segment the raw profit margin achived are
materials a major much higher than those
item of expenditure. achieved by bulk drug
It accounts for nearly manufactures and
60% of the sales. formulators. This
comparision clearly bring
out the high profitability in
the IV fluides segment vis-
a-vis other-segment .
DOMESTIC MARKET

• The existance of large number of product segment in the industry

makes it extremely difficult for any player to corner a significant share
of the total market. Most of the palyers concentrate on a few products
segments which have strong growth potential and try to attain top
positions in them.

• In view of the fact that there exists a wide disparity in living standards
in India, which alos impacts the living conditions of majority of the
population, drug consumption is skewed in favour of anti infectives and
vitamins. International usage of therapeutics is more skewed towards
the cardio vascular, gastro intestinals and CNS categories.

• Antibiotics are the largest selling products in India followed by

Vitamins. The other large segment in India are cough/cold therapy and
antiinflamatory/anti-rheumatics. Cardio vasculars account for about
6% of the market. Diabetology and oneology are still very nascent
segments in the country and posses miniscule market shares.

The overall pharma industry in the country has registered a growth rate of
around 15% per annum in 1996-97.
Therapeutic sales Breakdown (FY2000)

3% Analgesic/Antiparasitic
3%
43% 6% Systemic Antibiotics
Vitamins/Mineral Supp.
Cough/Cold
Anti Inflammatory
18% Systemic Anti bactirials
Others
Cardiac Therapy
Tuberculostatics
5%
5% 11%
6%

Source : ORG Estimates

On the EXPORT front , the industry achieved a growth of 28.7% during

1996-97. The satisfactory export perfromance can be attributed to better
margins, lower domestic production cost, absence of price controls on
exports, less stringent GMP/Pollution control requirements and to a
certain extent the liberal patent laws.

GOVERNMENT REGULATIONS

DPCO : A key variable governing the profitability of the domestic

pharmaceutical sector is the DPCO, which fixes the prices of specified
bulk drugs and their formulations while retaining a fixed rate of return over
normative cost. DPCO currently covers about 76 formulations and around
60% of the turnover of the industry (as per the last revision in 1995). In
1995 the government brought some drugs for which there is significant
open market competiton under control.

DPCO has a fixed formula for determining the price of controled

formulations. The prices are reviewed if there are any major changes in
intput parameters or if individual companeis apply for a price revision.
Recently the government has setup National Pharmaceutical Pricing
Authority (NPPA), which will review the coverage of drugs under control.

The government has specified certain conditions for a drug to satisfy to

be governed by DPCO. Formula for price fixation is as follows :

Raw Material Cost MC

+ Packing Materials PM

+ Packing Cost PC

+ Normative Conversion Cost CC `

Total Cost TC = MC + PM + PC + CC

Post Manufacturing Expenses MAPE 100% mark up

Retail price = TC + MAPE + ED

The DPCO is gradually loosing its importance due to the emergence of a

large number of manufacturer in the bulk drug industry. Because of this
stiff competition, the prices of several bulk drugs are reported below their
DPCO prices.

BUDGET PROPOSALS :

• Reduction of import duty on bulk drugs from 42 % to 32% in the latest

budget has made imports cheaper.

• The budget has also rationalised the excise tariff for bulk drugs by
increasing the excise duty on bulk drugs from 10% to 18% and cut raw
material duty from 20% to 18%. Though the higher excise duty can be
 off set under MODBAT when the bulk drug is used to manufacture
formulations a higher working capital is required.

RESEARCH & DEVELOPMENT

The success of pharma players in India would depend largely on their

technological strength and the ability to take on global competitors in
terms of cost and research capcbilities. R & D has always taken a back
seat in Indian pharmaceutical industry, mainly because of liberal patent
laws that favour more of process patent than product patent. Low
investment in R&D is also due to over regulated conditions subject to
continuous surveillance and price control. The existing research is mostly
restricted to process improvements and development of drugs invented
abroad. To reorient them selves the Indian companies have to make a
large investment in R&D a long gestation period and the uncertainity of
confirm success in the discovery of a patenetd molecule.

To start up cost of a basic research company is estimated to be Rs. 100

crores and the entire process for discovering a new molecule takes 10 -15
years and cost Rs. 600 crores. Such heavy expenditure on R & D in the
exisitng scenario, on account of DPCO which puts a ceiling on overall
profitability as well as on product prices is a herculean task.

R & D carried out by Indian companies towards finding alternative

processes for patented products averages only around 1.8% of the total
sales as compared to 10-20 % in the develop countries.
RESEARCH AND DEVELOPMENT LIFE LINE OF THE PHARMA
INDUSTRY

After the Indian software industry, pharma R & D offers great potential for
Indian talent. However, only a few companies have progressed
sufficiently to realise this potential.

Hitherto, India R & D was largest concentrated on process development

for known bulk drugs albeit through novel and innovative process routes,
invariably substituting for expensive imported raw materials and
enhancing the productivity and efficiency of the processes, besides
research on formulations and known drug delivery systems. India’s R & D
forte has been in synthetic organic chemistry and process development. A
few new drugs, using conventional screening techniques, have merged
Indian R & D is concentrated on standardization of raw materials and final
products. A few companies are now using modern scientific methods and
biological screening as well as toxicity studies for validation of
formulations.

Industry’s fate hinges on R & D due to three alternatives

1. Introduce new chemical entities through discovery research

2. Collaborate to manufacture and market patented drugs and

3. Continue marketing older drugs which are not included in the patents
list. The third option is not desirable.

Companies will have to increase R & D spending from the present 2 per
cent of sales turnover to 5 per cent by 2005, i.e. the industry’s annual R &
D outlay will have to be raised from about Rs. 320 crore at present to
around Rs. 1500 crore.
R&D EXPENDITURE BY PHARMA INDUSTRY (In Rs. Crore)

350 320

300
250
185
200
150 105
100 50
29.3
50 10.5
0
1967-77 1981-82 1986-87 1991-92 1996-97 1999-
2000

IMPLICATIONS OF GATT

It is believed that the bigger issue facing the Indian drug industry over the
next 5-10 years is the imposition of intellectual property/patent rights by
2005. The stronger Indian companies are effectively addressing the risks
of patent acceptance through mix of marketing effectiveness, licensing,
increasing export presnece and capitalising process development
capabilities to tap the generics market. vertically integrated companies
like Cipla, Dr. Reddy’s and Cheminor Drugs shoudl emerge as winners in
this respect.

With respect to the pharmaceutical industry, there are essentially two key
aspects to patent cover which are recognised in all developed markets
and which are gradually being introduced in the developing/emerging
markets.
The first covers the actual molecular structure of a drug, while the second
covers the manufacturing/production process. It is also possible to get a
patent covering the use of particular product for a specific disease of
indication.

In the developed markets the authorities have tended to recognize the

validity of all these patents as a ‘reward’ for innovation, and enforcement
is normally, strict in the courts.

The GATT/patent related key issues are as follows :

• There is likely to be a nearterm squeeze on new product flow from the

Indian companies which will result in proper financial performance in
3-4 time (unlikely, in our view)

• In the post-GATT era, the assumption appears to be that the MNCs

are assured fo a steady flow of new, innovative medicines (partly true).

• The advent of this new generation of patent-protected drugs will result

in a material change in consumption patterns and displace the existing
portfolios of domestic manufacturers.
INDIAN PHARMA R & D SWOT

Strong Chemistry : (Strengths + Opportunities) > (Weaknesses + Threats)

Strengths

• Mature industry with strong manufacturing base with capacity to produce

quality drugs at relatively lower costs.

• A very rich base of traditional knowledge in therapeutics i.e. Ayurveda, Sidha

and Unani.

• Well developed engineering base to produce wide range of pharmaceutical

equipment and machinery.

• Abundance of S & T talent and infrastructure.

• Successful experience in innovative process chemistry.

• Access to brain bank of internationally acclaimed NRI, S & T professionals

Weakness

• Sub-critical R & D investments.

• Lack of innovative R & D culture in industry

• Poor networking among constituents in the innovation chain.

• Inadequate framework for clearance of new drug investigation and

registration.

• A policy framework for testing on animals and their import that is not
facilitative.

• Inadequate trained manpower in emerging areas.

Opportunities

• Due to rising costs of R & D overseas, greater tendency towards outsourcing

and networking.

• Expertise to blend knowledge of traditional medicines with modern science.

• Increasing competence in molecular biology, immunology and biotechnology.

• Early R & D wins boosting confidence (Readdy’s , Ranbaxy’s Dabur’s

Shanta Biotech’s).

• Large numbers of patients covering wide range of diseases.

• Potential for clinical research and initiating clinical trials

• Opportunity to improve quality standards.

Threats

• Inability to cope-up with the rapidly changing new drug discovery

technologies and processes at the global level.

• Rapidly changing standards of quality and manufacturing at the international

level.

• Lack of clearly articulated and facilitative national IPR policies.

• Lack of strategy to bring convergence between aspirations of the small and

big players.

• Distortion in priority and public concern on health and pharma issues.

• Reducing tariff levels and dumping can be a threat to survival of products

and industry.
ROLE OF PHARMACEUTICAL INDUSTRY IN INDIA

The Pharmaceutical Industry plays a very crucial role in building a

strong human capital of a country. This in turn, is very essential for
economic growth and development. Over the years, an analysis of
several Western economies has clearly indicated that economies
with healthy human capital have outperformed others in terms of
growth. Thus, the contribution of the Pharma sector towards a
nation’s growth cannot be undermined.

The tremendous role played by this industry is explicitly revealed in

the improvement of major health indicators. Life expectancy has
risen from 41.2 years in the sixties to the present level of 65 years
and it is estimated that it will move closer to 70 by the year 2000,
while infant mortality has declined from 146 per 1000 to 74 per
1000. Moreover, the increased availability of medicines and health
care facilities has resulted in the decline of the death rate from 22.8
per 1000 in 1960 to 9.6 per 1000 in 1996.

At present, per capita annual consumption of drugs in India is about

Rs. 95 (US $ 2.7) and with the projected figures for 2000-2001, the
per capita consumption of drugs will move marginally to Rs. 160
(US $ 4.4) per year, which will still be one of the lowest in the
world, including developing countries. Progress of the
Pharmaceutical Industry in India.

GOVERNMENT DRUG PRICING POLICY

The Indian Governments liberalization and economic reforms have

not yet been fully extended to the pharmaceutical industry. The
industry is unable to attract fresh investment and the research –
based pharmaceutical industry is either withdrawing from India or
not expanding operations.

Since 1989, the Government has been reviewing changes in the

Drug Policy, and a new Drug Policy was promised for many years.
After a gap of almost five years, the Prime Minister cleared the New
Drug Policy in August and the Cabinet Committee on Economic
Affairs approved this, on September 15, 1994.

The new policy is an improvement over the existing policy.

However, price controls cover about 50% of industry sales from an
earlier ratio of 75%. There is no system allowing automatic increase
of prices to offset cost increases and inflation. The research-based
pharmaceutical industry has made an offer in “good faith” to the
Government of India to provide all drugs needed for the national
health program at “cost price” if the Government of India abolishes
price controls as defined through the DPCO. Our industry would
urge any new Government in India, which takes office in the wake
of the fall of the last Government on November 28, seriously to
consider abolishing the DPCO. The DPCO is neither in the interests
of the Indian economy nor of the Indian pharmaceutical industry,
nor-and most importantly-in the interests of Indian patients.

In the area of drug pricing, India imposes some of the most

stringent price controls in the world due to the rigid provisions of
the Drug Price Control Order. In the eyes of many research based
company managers in India, this strict pricing regime combined with
the lack of any meaningful patent protection make India virtually
non-viable for research based companies from a commercial
standpoint, especially if those companies were to consider placing
on the Indian market the latest and best innovative drugs. Foreign
companies also experience arbitrary NPPA (National
Pharmaceutical Pricing Authority) pricing norms, arbitrary local FDA
decisions, high (63%) total import duties and complex import
procedures.

PhRMA and its member companies in India desire that:

• The Government remove the anomalies in the present Price

Control Order.

• The Government take measures to adopt a system of free

pricing in India in the near-term 15% customs excise duty + 4%
special tax), Pharma urges U.S. negotiators to insist that tariffs
be brought down to the level of zero, the goal for GATT
signatories.

PROBLEM ASPECTS

While several important and authoritative voices have called for

improved intellectual property protection in India over the past year,
and while the World Trade Organization (WTO) has made clear in
three separate rulings that India should meet its minimal
requirements under the TRIPs principles of the WTO, there has
been no major change in the intellectual property situation in India
which remains one of the world’s worst offenders of patent rights.

The Indian press has even highlighted the findings of the recent
World Bank Development Report, which claims that “at least 25 per
cent of global chemical and pharmaceutical companies are
unwilling to invest in India as the protection offered to intellectual
property rights (IPR) by New Delhi is too inadequate to allow them
to transfer the latest and effective technologies.

Based on the refusal of the Government to provide pharmaceutical

patent protection, India has become a haven for bulk
pharmaceutical manufacturers who pirate the intellectual property
of the worlds research based pharmaceutical industry. The
achievement of effective Intellectual Property Rights should be
seen as necessary if India wants to attract foreign investment and
successfully implement its globalization plans.

Based on the Indian Patent Act of 1970, India only provides seven
years of process patents for pharmaceuticals. Given the lengthy
development time for pharmaceuticals (between 10 and 12 years),
due to mandatory regulatory requirements for safety, quality and
efficacy testing for drugs, a seven year process term, even if it were
acceptable, is so short that the patent “protection” would expire
even before the relevant product is ready for market launch.

In order to attract foreign direct investment and join the growing

group of developing and newly industrialized countries that have
decided to offer first- rate patent protection, India should adopt a
patent law which offers immediate product patent protection for
pharmaceuticals in the line with highest international standards,
and offering protection for all products not yet available in the
Indian market.

India wants to be seen as WTO compliant in bare minimials but has

weak political will. This sends wrong messages to Indian industry
with the result that the funds pumped by them are only 10% of
turnover which is no comparison to world leaders. In order to cover
for lost time the Indian industry should invest for future may be their
entire or 90% of gross profits.

The Indian Government has provided for Mail Box provisions and
EMR provisions as the base.

However, minimum control to meet its oblations under trips. Indian

provision is the antithesis of the “marketing exclusivity” called for in
Article 70.9, which requires a government to keep copied products
off the market administratively. This is generally accomplished by
the governments denial of marketing approvals to copied products.
As the GATT Secretariat explained in its January 1992 analysis, it
is “the Indian Government that would have the obligation to ensure
exclusive marketing rights for the owner of the U.S. patent. “A
marketing exclusivity scheme that leaves the enforcement of the
right to the patent holder and includes compulsory licensing falls far
short of that intent. It also should be emphasized that, while Article
70 requires a country to promulgate a Mailbox Provision in Indian
Law, that Mailbox in no way serves as a substitute for a valid patent
law.

PhRMA applauds and support the measures taken by the U.S.

Government last year to ensure that India properly implements its
TRIPs obligations, through its successful “suit” against India within
the WTO Dispute Resolution process. PhRMA believes that the
U.S. Government should continue to make the issue of India’s
failure to implement its TRIPS obligations a prominent element in
its ongoing bilateral contacts with India.
 MARKET VALUE OF THE PHARMACEUTICAL INDUSTRY
The Indian Pharma market is valued at US $ 4.5 bn, representing
1.6% of the global size and growing at an average rate of 8-9%.
However, the annual per capita drug expenditure is amongst the
lowest in the world.

ANNUAL DRUG EXPENSE PER CAPITA

India

Pakistan

China

UK

US

Japan

0 100 200 300 400 500

In US$

India is now a self-sufficient country for its pharma requirements.

From simple headache pills to sophisticated antibiotics and
complex cardiac compound including monoclonal antibodies, almost
every type of medicine is now made in the country. Infact more than
25% of formulations produced in the country (US$ 1.25bn) are
exported.
Currently, only process patents are recognized in India. However,
by virtue of India being a member of the World Trade Organisation
(WTO) and a signatory to the General Agreement on Tariffs and
Trade (GATT) it is bound to recognize product patents, latest by
2005. Thus the country is committed to free market economy and
globalization.

The process of consolidation, which is now, a generalized

phenomena in the global pharma market has started in India too.
The industry is witnessing a consolidation phase with Indian
pharma companies increasingly looking at stepping up growth by
acquiring companies/brands.

The drug price control order (DPCO) continues to be a menace for

the industry. The pricing authority arbitrarily sets prices of drugs
that fall within its ambit without giving due consideration even to the
costs of quality production. This has made the profitability of the
sector susceptible to the whims of the pricing authority. Companies
are resorting to aggressive new non scheduled product launches to
dilute DPCO effect. However, as per the latest Budget 2001-02
announcements, the current list of 74 drugs under DPCO is
expected to be relaxed. This is expected to increase profitability of
companies having relatively older portfolio’s, particularly MNC’s.

The average R & D spend in India inspite of growing at a CAGR of

18% over last five years is just 1.9% of sales as against 9-10%
spend by global pharma companies. Though miniscule in
comparison to global benchmarks, Indian companies are stepping
up their research activities to make themselves more self sufficient
in terms of product development ahead of the year 2005 deadline.
Companies like Dr. Reddy’s and Ranbaxy have already achieved
reasonable measure of success in their R & D efforts.

Another peculiar feature of the domestic R & D initiative is a lack of

facilities and resources to develop a molecule, conduct trials and
then launch the product. Indian companies will thus have to depend
on their international peers to undertaken the more expensive
clinical trials and product development.

The pharma industry saw a spate of mergers and acquisitions

during the year. Nicholas Piramal’s controlling stake of Rhone
Poulenc and cadila’s acquisition of German Remedies are only
some of the recent examples. Pharma: Season of weddings.
Besides there ere a number of brand acquisitions in the sector,
prominent among them being Ranbaxy’s acquisition of brands from
Guific, Cross lands and Vorin Labs. The trend of acquisition of
companies/brands is likely to continue as the industry reshuffles
before the 2005 deadline. Apart from that, the companies are inking
several marketing tie-ups to limit competition and increase market
penetration. For e.g. Ranbaxy has tied up with Cipla, Glaxo and
Hoechst for marketing new dry delivery once a day Ciprofloxacin.

A significant breakthrough for the pharma industry has been in the

area of research. Dr. Readdy’s licensing of two of its new anti
diabetic molecules to Novo Nordisk and Ranbaxy licensing NDDS
to Bayer AG in return for milestone payments were some of the
landmark events in the history of Indian pharmaceutical industry.

The pharma industry is expected to have grown by 8-9% in FY01.

While top 5 domestic companies have grown at 14%in FY01, top 5
MNC’s have grown at a slower rate of 7.2%. The slow growth in
sales of MNC’s is because of their relatively older product portfolio.
As in the past MNC’s continued to shy away from launching new
products in the domestic markets.

NEW PRODUCT INTRODUCTIONS-LOCAL Vs MNC’s

1200
MNC
1000 Indian

800

600

400

200

0
1995 1996 1997 1998 1999 2000

PROSPECTS

Growth in traditional therapeutic segments such as antibiotics is

stagnating and competition is increasingly getting stiffer. The price
war is so intense that companies have in-fact started promoting
unbranded versions of formulations (alternatively called as “generic
generics”) against their own branded formulations, to generate
growth. However, life style segments such as cardiovascular, anti-
diabetes, anti-ulcer and anti-depressants are lucrative and fast
growing. Growth in domestic sales in the future will depend on the
ability of companies to launch/shift products in relatively fast-
growing therapeutic segments. These are likely to be the key
earnings drivers. Volumes may, however, continue to come from
traditional segments such as anti-invectives, vitamins, tonics and
mineral supplements.

The Indian Pharmaceutical Industry is a vibrant, high technology

based and high growth oriented industry –attracting attention the
world over for its immense potential to produce high quality drugs
and pharmaceutical formulations. The Pharmaceutical Industry is
among the most highly R & D intensive industries. In fact, other
than drug discovery, marketing has been the most important
function in the pharmaceutical industry.

The pharmaceutical marketing environment is perhaps the most

challenging one on the Indian Industrial scene today. As it
approaches a new millennium it is faced, on the one hand, with new
opportunities and new prospects, and on the other, with the
emergence of a radically ordered Pharmaceutical order.

THE INDUSTRY IS TYPICALLY CHARACTERIZED BY

♦ Very intense competition with about 24,000 companies large,

big, medium and small fighting for their own place under the Sun
in a more than 17,000 crore market.

♦ Continuous drug discovery and rapid introduction of new

products.

♦ The seemingly ever-increasing and almost never ending

governmental regulations and policy changes.

♦ Stifling price controls, eroding profits and consequently a

vanishing bottom-line.
♦ Rigorous controls on formulations and an absence of
international patent protection resulting in a me-too maze of
products with little or no product differentiation.

♦ Increasing health awareness among the people and importance

given to mediclaim.

♦ Increasing dominance of trade associations and their constant

demand for increase in trade margins.
MARKETING STRATEGIES AND BUSINESS
PROMOTION OF THE PHARMACEUTICALS
PRODUCTS IN THE MARKET

Marketing:

Market is probably one of the most commonly used words by

people all over the world. The key word in all the meanings and
definitions of the market is opportunity. Market can be defined as
individuals power, desire and authority to buy products. Like
everything else in marketing it “depends”. It depends on what
products or services one has to offer and to whom one wants to
offer them. Thus the question of MOA (Market Opportunity
Analysis) comes in. Here, a look at the many dimensions of the
market is essential. Looking at the market from its various
dimensions would enable one to measure it more accurately.
Looking at the market from different angles would certainly give on
a better idea as regards its breadth, width and depth so that one
can plan more comprehensive, meaningful and innovative
strategies to defend and increase the share of the prospective
markets.

The various dimensions of the Pharmaceutical market are:

1. The Demographic Dimension

This comprises geographical proximity of customer and some

shared socio-economic traits such as age, sex, educational level
and family size.
2. The Generic Dimension

This comprises the generic equivalents present in a number of

formulations. One examples is that all formulations containing
“rifampicin” will add up to the total “rifampicin” market and not
necessarily to the total anti-T.B. market.

3. The Therapeutic Group Dimension

This comprises all the products aimed at relieving, treating and

curing the same symptoms or diseases. For example, all products
aimed at relieving, treating and curing “asthma” come under one
“anti-asthmatic” therapeutic group.

4. The Competitive Dimension

Apart from the size of the market, the extent of competition (the
number of competitors), their share of the market, and their growth
rate, all these are important in determining the attractiveness or
unattractiveness of the market. Of course it is certainly worthwhile
to enter the market if one has a distinctly superior dosage form or
greater safety margin etc. Furthermore, continuous monitoring of
competitors activities is crucial for success in the marketplace.

5. The Fifth Dimension

Timing is the Fifth dimension. All those lucky winners in various

therapeutic categories are those products that have been
introduced at the right time. It is not enough if one has a good
product. One has to be in the market with the best product (with the
best benefit package). Timing is also important for planning product
deletion and harvesting strategies. One should also be aware of the
stage and rate of product obsolescence in the marketplace.

THREE MAJOR SEGMENTS

There seem to be three major segments in the Pharmaceutical

market.

1. One is the “consumer market” or the “prescription market”

which consists of individuals and households that go to a
practicing doctor for the treatment of their ailments.

2. The other is the “institutional market” that is made up of the

large hospitals in the public and private sectors that buy the
products for distribution among their employees and the
government hospitals including medical college hospitals that
provide free treatment to the poor.

3. The third on the list is “the industrial market”, which comprises

the bulk drugs that are used in formulations.
PHARMACEUTICAL MARKET SEGMENTATION

PATIENT

HOSPITAL
G.P. DOCTOR
PRESCRIPTI

PHARMACIST/R NURSES
ETAIL CHEMIST

PHARMACIST

PATIENT

The characteristic feature of the pharmaceutical marketing is that

one reaches the end consumer (patient) through a customer (the
physician who advises the end customer through a prescription).

We can see from the figure that the two major potential target
groups are patients (consumers) and doctors (customers). They
have different needs. Segmentation is at the consumer level (the
patient). The second logical step is at the customer level (doctor),
where he is a general practitioner or a hospital doctor, he is the
influencer.

Implications for the marketer

The needs of a physician who is a user and another doctor who is a

non-user are obviously different.
The physician who is a user is currently satisfied with the product
and its benefits. The company doesn’t have to sell the advantages
of product to the physician. What he requires at the moment is a
continuous reassurance that choosing the company’s product over
other has been a right decision for the physician and it is worth
continuing for him. The company’s objective is to ensure continuous
usage through positive reinforcement.

Whereas the physician who is a non-user, is yet to be convinced

about the benefits of the product the company offers. He does not
believe that the product can provide the satisfaction he is seeking
for his patients. He needs more information with substantial
evidence.

Then there is also the case of the past user of the product. The
product has been coming up to the physician’s expectations in the
past, but currently he is not using the product. What he needs is not
just information and evidence of the product.

There can be various reasons for the physician’s discontinuing the

use of the product of the company.

1. Competitive pressure

2. Negative experience with the product

3. Non-availability of the product.

Research in India shows that non-availability is one of the major

reasons why doctors give up prescribing products easily.
The pharmaceutical marketers can use segmentation strategy
creatively to:

1. Clearly identify the target group

2. Focus the promotional efforts to maximize gains cost effectively

3. Create a strong positive product image to offset competition.

Avoiding pitfalls in segmentation

While segmenting the essential criteria for effective segmentation

should be kept in mind in order to avoid mistakes.

1. Choosing the wrong segment, which is not viable, too small, less
attractive and declining.

2. Choosing the segment that is too small, overcrowded with

competition; such a market is a rather fragmented one.

3. Positioning the product as a last resort, an alternative when the

leading brands fail or as second line of treatment. That would
however mean limiting the usage of the product. That is because
one can position a product/brand as an essential replacement to
the brand leader but not as a an alternative.

4. Entering over-crowded segments when one cannot clearly,

unambiguously and perceptibly differentiate one’s product.
THE INDUSTRY STRUCTURE:

The pharmaceutical Industry is very aptly described as a ‘Life-line’

industry. In plays a vital role in alleviating the sufferings of millions
of people and controlling various ailments that afflict human beings.

The present day pharmaceutical industry has 3 main sectors:

1. The public sector

2. The Indian private sector

3. The foreign sector.

There are presently 24,000 firms engaged in the production of

drugs and pharmaceuticals.
THE BUYING PROCESS

The following pattern summarizes the process by which a doctor

prescribes a product:

Unawareness

Awareness
Interest
Where does
Evaluation you product
stand?
Trial

Usage

Repeat usage

If course, the marketing strategy will need to vary depending upon

the stage of the buying process.

WHAT MAKES US TICK?

What are the driving forces that may urge a doctor to prescribe one
product in preference to another? Among other factors, these
include general human needs, as described by A. H. Maslow:

1. Physiological – Food and shelter

2. Safety – Security for home and work

3. Social – Need for supportive environment and social acceptance

4. Esteem – Status and having the respect of others

5. Self Actualization – The need to realize one’s potential.

Maslow’s Hierarchy of Needs

Self
Actualization

Esteem

Social

Safety

Physiological

On achieving one goal, the next goal is sought. Since marketing

essentially involves satisfying customer need, it is worthwhile to
recognize that customer psychographics may be related to the
hierarchy of human needs described by Maslow.

Incidentally, Maslow’s hierarchy of human needs is also linked to

the motivational status of organizational staff- and this would
include pharmaceutical marketers as well.
THE MARKETING MIX

Marketing involves 5 Ps: Product, People, Place, Price and

Promotion.

Product
⇒ Positioning 5 ‘P’S of Marketing
⇒ Features • Product
⇒ Quality • People
⇒ Image • Place
⇒ Packaging • Price
⇒ Service • Promotion
People
⇒ Salespersons
⇒ Doctors
⇒ Categories
⇒ Number
⇒ Trade
Place
⇒ Geographic location
⇒ Distribution
⇒ Outlets
⇒ Inventories
⇒ Sales territories
Price
⇒ Level
⇒ Sensitivity
⇒ Discounts
Promotion
⇒ Communication
⇒ Selling strategy
⇒ Advertising
THE PRODUCT LIFE CYCLE
All products have a life cycle, going through the stages of
Introduction, Growth, Maturation and Decline.
Stage 1: Introduction
Slow growth may be due to lack of customer awareness. During this
phase, emphasis must be placed on achieving customer
awareness, acceptance and usage.
Stage 2 Growth
Rapid acceptance is reflected in good sales growth and
improvement in profit.
Stage 3: Maturity
The product is well accepted but increasing competition slows down
the growth rate.
Stage 4 : Decline
Competitors, including new molecules, capture customers. Decline
can be arrested or reversed by targeting new market segments,
changing the product positioning and advocating new uses.
Sales

New Markets

New Uses

New product
Features

Status quo

Introduce Growth Materials Declines

Product life cycle

PATENTS AND WTO IMPACT

PATENTS

Patents and their protection is the cornerstone of a healthy and dynamic

research environment in any country. Patents can be classified into two
types – product patents and process patents. Product patents prevent the
newly developed drug from being copied by other competitor and sold in
the markets since the product patent holder has done all the research on
the drug and is therefore logically entitled to the revenue arising from the
sale of such a drug. Process patents, on the other hand, protects the
process or the route by which a particular drug is developed countries
adhere to process patents only. This permits local companies to device
newer methods of producing existing drugs with a change in process
from that adopted by the originators of the drug. Once the patents regime
arrives in Jan. 2005, the Indian Pharma Industry will have to watch every
step and adhere to international guidelines. One of the outcomes of this
change will be that unless Indian pharma companies invest heavily in R
& D and develop their owm molecules, they will either have to shut shop
or remain ancillaries to global giants.

WTO PATENT LAW (TRIPS)

The Indian patents act recognizes on process patents and not product

patents. This allows Indian companies to manufacture the patented drug

at a fraction of its original cost using reverse engineering techniques i.e.

Manufacturing using alternate process Indian industry achieved

handsome growth in this manner for many years. MNCs governed by

patent laws in their home countries could not do so and lost their
competitive edge in the Indian market to domestic players. MNCs saw

their largest selling brands being produced and marketed in India at

ridiculously low prices.

India is now a signatory of the WTO, which includes the TRIPS

clause. The major provisions of TRIPS are that

1. Intellectual Property Rights (IPR) is right of the originator of an

innovation, idea or product to hold sole international commercial rights
over “intellectual property”.

2. India will have to change its patent laws to recognize product patents.
Product patents will apply to drugs whose discovery is registered after
Jan 1, 1995 in any country, which is a signatory to the WTO.

3. India has a ten-year transition period for implementation of TRIPS.

During this transition period new molecules discovered are given
recognition and protection.

4. India is also required to grant exclusive marketing rights (EMR) for a

drug to the patentee during transition for a maximum period of five
years from the marketing date of approval. This EMR is granted
provided the following process is followed:

a) Applicants must obtain a valid patent after Jan 1, 1995 in any

country signatory of the WTO.

b) Grant to news drug registration on the basis of approval tests (e.g.

FDA approval).

c) Approval to sell or distribute the drug in the same country where

the first two criteria are fulfilled.
As the commercial launch of a drug based on a newly discovered
molecule takes 7-8 years in the home country and 2-3 years overseas no
applications for EMR are expected in the near future. Hence in the short
term, it is unlikely that any company will get EMR for drugs before 2005.
Also by the time WTO becomes operational 85% of the drugs sold in
India will be off patent (currently 92%).

IMPACT OF IPR ON DRUG PATENTS IN INDIA

1. Full cover for pharmaceutical products post 2005-9(product patents to

be introduced).

2. A patent term of 20 years (from 5-7 years in the past) from the date of

filling (to be implemented by Jan 1, 2000).

3. Import of drugs considered as working of the patent.

4. A patent holder to have monopoly to market products for the first five

years.

5. In case of infringement burden of proof shifts to the accused.

IMPACT OF IPR ON PRICES

Prices of drugs may increase due to the increasing amount spent on

research, marketing and distribution, but the increase will not be too

drastic because: -

1. 92% of the drugs are currently off patent and any one can compete in

this segment. This will lead to an increase in price competition and will

keep prices down.

2. A lot off-patent therapeutics equivalents are available which will keep

the prices of patented drugs down in the medium term (10 to 12

years).

3. Most of the drugs, which are covered under patents at present, will be

off patent in the coming four to six years. The current generics market

is worth $15 billion; additional fort molecules are expected to go off

patent in the next five years, opening up a new market worth $12-14

billion. Once these drugs come off patent, Indian companies can

reverse-engineer to produce these drugs at lower costs thus keeping

the prices low. However in the long term since the term of patents will

extend to 20 years, Indian companies will find it increasingly difficult to

reverse-engineer due to non-availability of products which are off

patent.

4. Product patents are mandatory only after 2005. As it normally takes

10-12 years to launch a drug commercially in the international market,

the commercial launch of a drug discovered in 1995 will take place

only after 2005 in India. Thus in the short term WTO has no effect on

the profitability of growth of existing Indian companies. In the long run

also the effect might be limited as the share of patented products may

not exceed 25% of the total market even in 2025 (currently 8%).
IMPACT OF IPR ON THE STRUCTURE OF THE DOMESTIC

INDUSTRY

1. The barriers to entry in the high margin products will increase

gradually.

2. There will greater spending on R&D thereby favoring larger and better-

capitalised firms over the smaller ones.

3. The small manufacturer will shift to manufacturing of non-patent

products leading to a fall in the profitability in these sectors.

PROBLEM WITH PHARMAECEUTICAL INDUSTRY

The major players in this industry are facing a lot of problems due to

Patent Law along with Ranbaxy. Now coming to the constraint followed by

Ranbaxy due to patent laws were enormous. They were as follows:-

1. The most molecules were basically developed in the European and

American laboratories and their patent lied with themselves.

2. Before this patent law Ranbaxy used to manufacture the drugs which

were basically developed by the European and American countries.

3. The total exports as well as the imports were declining due to this

Patent Law.

Government Policy: Capacity licensing requirements were abolished for

all but five basic drugs, mainly vitamins, Barriers to foreign competition
were reduced by removing restrictions on foreign investment as well as
lowering tariffs on imports, Foreign stake of up to 51% was allowed in
Indian pharmaceutical operations.
The company has a separate strategy for both the domestic market
and the global market.

Domestic market:

1. Sustain its market share by leveraging on its brand strength

2. Continously keep on increasing its product line

3. Focus on its marketing of niche products

4. Expanding through lucrative acquisitions

Global market:

1. Target branded generics

2. Focus on value added formulations

Build up affiliates ( networks) world wide.

COMPANY PROFILE: CIPLA

CIPLA race for the Horizon started with the country’s march for freedom.

The FOUNDER, Dr. K.A. HAMID a great freedom fighter and had thrown

himself into Mahatma Gandhi’s civil disobedience and movements. He did

Doctorate in Industrial chemistry from Germany, came back and started a

humble venture dedicated to the science of healing.

CIPLA has achieved leadership in the rational sector of pharmaceutical

industry. It is cleared from the data published by the magazine FORTUNE

INDIA.

Year ended  1998 (IInd Quarter)

Sales  Rs 482.90 Crores.

Net Profit  Rs. 100.87 Crores.

Earning per share  Rs. 50.5

Dividend  55% of net Proceeds.

The above data shows that Cipla has remarkable market value with its

reasonable sales and N.P. CIPLA has more prospective investor

customer is Rs. 50,5. CIPLA Pays more proportion (55%) of its N.P. as

dividend and keep larger for reserves, which is quite good for its market

value.

CIPLA bought new life saving days for the first time to our people basic

manufacture; a nation wide distribution; exports to U.S.A., U.K. and other

countries, CIPLA was the first Company to develop a well process to

synthesize NIKETHAMIDE and most this vital cardiac drug available is

our people. Other first in innovation technologies in CIPLA programme of

self reliance include :-

⇒ Basic manufacturer of Anti-Cancer drug - FTORAFUR, VINBLASTIN,

VINCRISTINE.

⇒ Basic manufacture of Diosgenin and steroids.

⇒ Large scale manufacture of Rauwolfica Alkaloid, in early 50’s.

⇒ Basic manufacturing in salbutamol.

⇒ Pioneer in the Aerosel technology, which is backed by the === of more

then 5,00,000 people using CIPLA Aerosol every month.

The drugs manufactured by CIPLA includes:

1. Anti-AIDS

2. Anti-Amoebics

3. Anti-Arthritis

4. Anti-Asthmatics

5. Anti-Bacterial

6. Anti-Cancer

7. Anti-Emetic

8. Anti-Helmintics

9. Anti-Hypertansive

10. Anti-Inflamatory

11. Cardiac Drugs

12. Steroids and Harmones

13. Tranquilisers

14. Vasodilators
PRODUCTION PLANT AND FACILITIES

Mumbai Central :

• Pharmaceutical Formulations

Bangalore :

• Bulk Drugs

• Natural Products

• Pharmaceutical Formulations

Vikhroli :

• Bulk Drugs

• Pharmaceutical Formulations

Patalganga :

• Bulk Drugs

• Pharmaceutical Formulations

Kurkumbn :

• Bulk Drugs

• Pharmaceutical Formulations
CIPLA went basic early and now manufactures nearly 70% of it’s bulk

drug requirement :-

A bulk to formulation ratio is 1 : 3, which puts it among the leaders in this

core sector.

CIPLA : Basic Manufacturer of Qualify bulk Drugs

• Acyclovir USP

• Albendazole USP

• Albutanol Sulphate USP

• Alprazolam USP

• Calcium Sennoside A & B

• Camptothecin

• Cetrizine Dihydrochloride

• Ciprofloxacin HCI USP

• Danazol USP

• Enrofloxacin (Vet.)

• Etoposide USP

• Febantal (Vet.)

• Felodipine

• Fenbendazole USP

• Free Sennoside A & B (70% - 80%)

• Ketorolac

• Mebendazole USP

• Metoprolol Tartrate
• Mitoxantrone HCI USP

• Nifedipine

• Norfloxacin USP

• Omeprazole

• Ondansetion HCI Dihydrate

• Oxtendazole BP (Vet.)

• Oxibendazole (Vet.)

• Pefloxacin Mesylate Dihydrate

• Pentoxyfylline

• Salbutamol Sulphate BP

• Slametrol Xinafoate

• Seleqiline HCI

• Sennoside USP

• Terbutaline Sulphate USP

• Vinblastine Sulphate

• Vincristine Sulphate

• Zidovidine
RESEARCH AND DEVELOPMENT

research and Development is the backbone of CIPLA’s operations.

CIPLA’s R & D division, with it’s three R & D centres, is the fountain head

for the drugs of the future. Apart from several molecules, CIPLA’s

technology innovation extends to sophisticated drugs delivery system. In

addition to intense in-house R & D efforts, CIPLA continues to be activity

associated with the national Institutes like the council of Scientific and

Industrial Research and its laboratories - the National Chemical

Laboratory in Pune, the Central Drug Institute in Lakhnow and the

regional research laboratory in Hyderabad and Jammu, in the persuit of

new drug development.

Research on medicinal properties of plant is done at the Agronomy

Research Centre on a 33 acre near Bangalore. Dioscorea, basic to the

manufacture of Steroids was successfully domesticated by CIPLA, for the

first time Internationally at Bangalore.

The accomplishment in the vital area of drug production is reflected in the

approval of CIPLA’s bulk drug manufacturing facilities by the U.S. FDA.

QUALITY ASSURANCE

exacting standards are upheld by ongoing quality assurance audits

coupled with continuos update of technology. The U.S. Pharmacopeial

Convention has accepted CIPLA’s amendments to several product’s

monograph - yet another reflection of advanced technological capabilities.

All CIPLA’s bulk drug units and the corporate quality control laboratory

have had U.S. FDA approval for nearly a decade.

Stringent control system and procedure ensure compliance with current

GMP i.e. Good Manufacturing Practices have also been approved by the

U.S. FDA (Food and Drug Administration).

CIPLA : A Recognised Body

CIPLA have five factories and Twenty One sales offices in India. All of it’s

five plants Approved by several national and International Organisations.

LOCATION MANUFACTURING APPROVED BY

Mumbai Central Bulk Drugs and WHO and National institute of

Formulations (Tablets Pharmacy, Hungary (for

Capsules) formulations)
Vikhroli (Mumbai Bulk Drugs and MCA, UK, WHO, National

Suburban Area) Formulations (Liquid Institute Pharmacy, Hungary

Oral, Aerosols) R & D (for formulation)

Unit
Bangalore Bulk Drugs and US FDA (for bulk drugs); WHO

Formulations (Tablets)
Patalganga (near Bulk Drugs and US FDA (for bulk drugs); MCA,

Mumbai) Formulations UK, MCC, South Africa (for

formulations); and National

Institute of Pharmacy, Hungary

(for formulations); TGA,

Australia (for formulation)

LOCATION MANUFACTURING APPROVED BY
Mumbai Central Bulk Drugs and WHO and National institute of

Formulations (Tablets Pharmacy, Hungary (for

Capsules) formulations)
Vikhroli (Mumbai Bulk Drugs and MCA, UK, WHO, National

Suburban Area) Formulations (Liquid Institute Pharmacy, Hungary

Oral, Aerosols) R & D (for formulation)

Unit
Bangalore Bulk Drugs and US FDA (for bulk drugs); WHO

Formulations (Tablets)
Patalganga (near Bulk Drugs and US FDA (for bulk drugs); MCA,

Mumbai) Formulations UK, MCC, South Africa (for

formulations); and National

Institute of Pharmacy, Hungary

(for formulations); TGA,

Australia (for formulation)

INTERNATIONAL MARKETING

Cipla exports its drugs to various countries. During 1992-93 its exports
were Rs. 123 Crores and in year 1997-98 it touches the figure of Rs. 72
Crore.

BULK DRUG COUNTRIES TO WHICH EXPORTED

ALBENDAZOLE Thailand, France, Denmark, Turkey, Mexico,
Ireland.
ALPRAZOLAM U.S.A. , Canada.
CETIRIZINE Australia, Switzerland, Mexico.
CIPROFLOXACIN Hongkong, Thailand, Iceland, Singapore, Germany,
Italy, Switzerland, Indonesia, Spain.
DANAZOL Switzerland, Ireland, Poland, Korea, Australia, U.K.,
Germany, Canada.
ETOPOSIDE Australia, Netherlands, France.
FELODIPINE Iceland.
MEBENDAZOLE Bangladesh, New Zealand, Taiwan, U.K
METHOCARBAMOLE U.S.A
METOPROL Germany
NORFLOXACIN Italy, Germany, Canada, U.K.
OMEPRAZOLE Iceland, Hongkong, Bangladesh.
PEEFLOXACIN Korea, Thailand, Switzerland.
BULK DRUG COUNTRIES TO WHICH EXPORTED
PENTOXYFILLIN Italy.
SALBUTAMOL Bangladesh, Switzerland, Malta, Thailand, Turkey,
U.S.A., Malaysia, Hongkong.
SELEGILINE Germany, Italy, Israel, Singapore.
TERFENDINE U.S.A.
VINBLASTINE Australia, Netherlands, Mexico.
VINCRISTINE Amsterdam, Netherland.
NEW ARRIVALS

Brand Salt Strength

Cefoprox Cefpodoxime proxetil • 100 mg tab

• 200 mg tab

• 2 Dry Syrup
Doxacard Doxogosine maleate 1 mg, 2 mg, 4mg
Carloc Carvedilol 12.5 mg, 25 mg, 6.25

mg, 3.125 mg
Oxyspas Oxybutanin 2.5 mg, 5 mg
OBJECTIVE

The primary objective of the project is “PRESCRIPTION AUDIT OF

CIPLA PHARMA PRODUCTS IN NOIDA”.

FACTORS TO CONFIRM THE OBJECTIVITY

India’s second largest pharmaceutical company, CIPLA Limited, is

today well positioned in its quest to become a research-based
international pharmaceutical company.

This Project Focuses on the following key aspects determining the

market share of CIPLA PHARMA Products based on the Prescription
Audit. The project survey was carried out in geographical area of Noida.
The main inputs were from Medicine Retail Outlets and Whole sellers of
Medicine (Khashu Medical Agency). The projects findings are based on
the following aspects:

 Priscription Flow for Cipla products.

 Availability for Cipla products.

 Representative visits to Drs and Retailers.

 Market analysis of Cipla products.

 How are efficient are the promotional activities of Cipla

Pharma in comparison with other brands?

 Who are the major external competitors for its products?

This Project Report contains the detail analysis within the provided time
and resource on the all above queries. It gives an overview of the current
market scenario for Cipla Pharma’s Range of Cipla products with
illustrations and inputs from the market itself.
RESEARCH METHODOLOGY

Research is an activity and as such the term should be used in a technical

sense. Research comprises defining and redefining problems, formulating
hypothesis as suggested solutions; collecting, organising and evaluating
data; making deductions and reaching conclusions; and at last carefully
testing the coclusions to determine whether they fit the formulating
hypothesis.
REASERCH DESIGN

 Statement of Problem in a General Way

First of all the problem was stated in a broad general way, keeping in
view either some practical concern or some scientific or intellectual
interest. The problem stated contained various ambiguities which were
resolved by thinking and re-thinking of the problem. At the same time the
feasibility of the probable solutions were also considered.

 Understanding The Nature of the Problem

The next step is to understand the given problem jso that its natue and
origin can be studied clearly. The best way is to discuss the problem with
the guide in order to find out how the problem originally came about and
with what objectives in mind.

 Surveying the Available Literature

All the available subject matter related to the problem was studied so that
it can help further in solving and coming up with a feasible solution.
 Developing the Idea Through Discussions

In order to produce useful information, various discussions concerning the

problem were done with colleagues and otehrs who had significant
experience in the working area.

 Rephrasing the Research Problem

Finally the research problem was rephrased into a working proposition.

By rephrasing the research problem, it was been put into specific terms
as possible so that it could become viable.

SAMPLING

Sampling is a phase of project to obtain requried data as efficiently as

possible when combined with the other perspectives of the project. There

are three objectives of sampling that are of the key importance in meeting

the requirements of management.

Those are:

# That the data are representatives of the population.

# Sufficient accuracy in the sample to provide stable results.

# Chosing research resources as efficiently as time

requirements permit.
Keeping in view these objectives of sampling resorted to Probabilistic

sampling. For the research a sample size of 100 companies was covered.

THE SURVEY

The survey was conducted in the field with help of a questionnaire. The

questionnaire conducted a series of questions which was a great aid while

conducting the personal interviews. Personal intervierwing tends to be of

the greatest oportunity for gathering abundant information. The survey

was conducted in whole of the geographical area of Noida. First, telecalls

were made to the prospect respondents and after fixing a time and place

they were contacted.

DATA COLLECTION

a) Collection of Secondary Data:

Secondary data pertaining to the problem at hand was collected from

various sources like available reports of the company, various other
publication in books, magazines, newspaper, journals gathered from the
library or CII and internet. Factors like reliability, suitability and adequacy
of data wfere kept in mind while collecting the data.

b) Method Used in Collecting the Primary Data:

Since there are many methods of data collection available, some factors
wfere considered before selecting the appropriate tool. These were:

 Nature, Scope and Object of the Study

 Availability of Time
  Precision Required

 Sample Type and Size

After going through the above considerations the method selected to

collect data was, SCHEDULES.

The schedules are vey much like questionnaires except that they are filled
in by the enumerator. For this purpose, firstly a questionnaire was
developed. The factors that wfere kept in mind were :

General Form: The general form of the questionnaire was structured to

present the questions in exactly the same order and wordings to every
respondent.

Question Sequence: In order to make the questionnaire effective and to

ensure the quality of the replies received a proper sequence was
maintained.

Qustion Formulation: With regard to this aspect of questionnaire it was

kept in mind that each questions had to be very clear, any sort of
duplication was avoided. The questions were kept simple, and concrete
and they confirmed to the respondents way of thinking.

Form of Questions: Concerning the form of questions, out of the two

principle forms; open ended, and closed ended, a right blend of both was
incorporated. The multiple choice or close ended questions were
designed to permit a free response from the respondents. Such questions
gave the respondents considerable latitude in framing the replies.
IMPORTANCE OF STUDY

 The Market trend for Cipla Products specially Ciplox, Norflox,

Novamox and Forcan can be estimated.

 The demand and the supply chain of the Cipla products.

 How competent are Cipla products in the Medicine market in relation

with other brands in same category.

 The trend of prescription made by the Doctors in Noida area for Cipla
products.

 The drawbacks and the limitations of the marketing division of Cipla

products.

 The scope of further improving the brand image and market share of
Cipla Pharma products can be realized.
LIMITATIONS
Though the groups or segments selected for the analysis was
predetermined, there were certain factors which posed difficulties for
successful completion of the project. Due to these limitations, at times, I
had to re-accumulate all my energy and stamina to overlook all the
hurdles and work with new zeal. Without external support and
encouragement the following limitations might have proved fatal for the
project health. These are:
Scope of Project
The scope of project was only restricted to RANBAXY PHARMA’S range
of Antibiotics and analgesics.
Time constraint
Someone has rightly said that “Time and Tide wait for none”, so keeping
this in mind, it was seen that the given work was finished in the stipulated
time instead of extending it.
Sampling technique
Collecting the names, addresses and contact numbers of the prospects
was very trohlesome. This took me too much time but at last, I was able to
make a list of them and selected the sample.
Reliability
Last but not the least the data collected by mean of this sample cannot be
totally relied upon because some of the respondents might have disclosed
biased information which may not be true and thus the conclusion
generated from this study may not actually be correct.
ANALYSIS OF DATA COLLECTED

Graphical analysis is the graphical representation of the data collected

through the survey which was gathered, sampled and grouped according

to the range and category. The graphs and charts are based on the inputs

of collected data. It gives a complete and easy picture of finding and

analysis. It makes the reader to understand the current market trend and

the market scenario for Cipla’s Pharma Range of surveyed products

SHOPS DEALING IN CIPALA PHARMA PRODUCTS

100
100
50 Yes
No
0 0 East
Yes No
NUMBER OF PRESCRIPTION IN A WEEK FOR MAJOR PHARMA
COMPANIES

Others Cipla
34% 33%

Glaxo
13% Ranbaxy
20%
WEEKLY SALES OF CIPLA PHARMA RANGE OF SURVEYED
PRODUCTS

20
18
16
14
12
10
8
1-2 Strip
6 3-5 Strip
More Than That
4
2
0
SALE In Strips
MINIMUM AMOUNT OF STOCK MAINTAIN FOR CIPLA PHARMA’S
RANGE OF SURVEYED PRODUCTS
Stock in Strips

More Than That

6-10 Strip
2-5 Strip

0 20 40 60
MINIMUM DURATION FOR DELIVERY OF SUPPLY

45

40

35

30
1 Day
25
2 Days
3 Days
20
Week
15 More Than That

10

0
Supply in Days
FREQUENCY OF COMPANY REPRESENTATIVE’S VISIT

60

50

40

Once a Week
30 Once a Fortnight
Once a Month
More Than a Month
20

10

0
Visit Frequency
BEST PROMOTIONAL ACTIVITIES BY COMPANIES ACCORDING TO
MEDICAL SHOP OWNERS AND DOCTORS

Ranbaxy
16%

Cipla
10%

Others
58%
Glaxo
16%
COMPARATIVE ANALYSIS OF CIPLOX

Others
22% Ciplox
32%

Ciprodac
13%
Alcipro Cifran
11% 22%
COMPARATIVE ANALYSIS OF NORFLOX

Others
30% Norflox
35%

Norilet
8% Alflox Norbid
7% 20%
COMPARATIVE ANALYSIS OF NOVAMOX

Novamox
Others 18%
30%

Mox
Lmx 25%
7%
Wymox
20%
COMPARATIVE ANALYSIS OF FORCAN

Forcan
Others 20%
29%

Syscan
Zocan Onecan 18%
22% 11%
CONCLUSIONS
On the basis of findings in the survey carried out, the following

conclusions were inferred:

 Most of the medical retail outlets deal in Cipla Pharma

products.

 The major competitors are Ranbaxy, Wythlederle, FDC and

Cadila.

 Despite the fact that CIPLA is the second largest,

Pharmaceutical company still maintaining the first position in
particular market.

 Major competitors for Ciplox is Cifran.

 Major competitors for Norflox is Norbid.

 Major competitors for Novamox is Mox.

 Major competitors for Forcan is Zocan.

 Generally the stock kept by the retailer lasts for a week or

10 days.

 There is constant visit by the medical representative from

most of the Companies.
BIBLIOGRAPHY

Website: http//www.cipla.com

 Website: http://www.indianpharmaceuticals.com

 Website: http://www.economictimes.com

 Website: http://www.indiatimes.com

Magazines:

 Business Today

 Business World

 Business India

Books:

 Marketing Research ( by Boyd, Jr. Westfall, Stasch)

 Business Research Methods ( By Cooper, Schindler)

QUESTIONNAIRE

I am a student of Apeejay Institute of Technology Greater Noida, pursuing

MBA. I am working on a market research survey on “Prescription Audit of

Cipla Products (Ciplox, Norflox, Novamox and Forcan) in Noida. I would

request you to extend your kind cooperation in filling up the questionnaire.

I assure that your answers will be kept completely confidential. It is purely

academic purpose.

1. Do you sell Cipla products ?

a) Yes

b) No

2. If Yes, what are the popular products for Cipla Pharma Division

prescribed by the Doctors?

Name of the Doctors. Brand

3. Which are the major competitors for Cipla products given below?

Ciplox a) ……….. b) ………. C) ………

Norflox a) ……….. b) ………. C) ………

Novamox a) ……….. b) ………. C) ………

Forcan a) ……….. b) ………. C) ………

4. What must the weekly sales of Cipla Products from your shop

particularly for those above given brands?

5. What is the minimum amount you keep as stock for Cipla

products?

6. What is minimum duration of your placing the order and receiving the
supply?

Placing Order:
a) 1 day
b) 2 days
c) 3 days
d) A week
e) More than a week
Receiving Supply:
a) 1 day
b) 2 days
c) 3 days
d) A week
e) More than a week
 7. What is the frequency of visit of medical representative of Cipla to your
Store ?
a) once a week
b) once in fortnight
c) once a month
d) more than a month

8. 8. What is the frequency of visit of medical representative of other competitor

products?
a) once a week
b) once in fortnight
c) once a month
d) more than a month
Q.9 How do you like the company promotional activity done in the field ?
a) Excellent
b) Good
c) Poor

Q.10 Which company has the best promostional activity according to you ?
 PROBLEMS AND RECOMMENDATIONS

 Company should constantly watch out for new intent as they are more likely

to threatening there brand leaders such as Ciplox and Norflox and to take the

corrective major to prevent the loss of market share for their product.

 The sales for Cipla ltd. should constantly upgrade the information award the

new technology and product to the doctors, retailers, and wholesalers.

 The synergies through horizontal and vertical integration of Cipla will create

better results.

 They should give some incentives in the form of bonus offer to the retailer so

to increase the stock at the retailers counter.

 Company also requires to more and emphasis on their field force means they

should more concern about their employees.

 They should also try to find out new indication for their existing product as

they are in saturation stage.