Your partners in care

Introduction
:

1
 INRODUCTION

Ranbaxy Laboratories Ltd. Is the largest pharmaceutical company in India, and one
of the world’s top 100 pharmaceutical companies. It is an integrated, research based
international pharmaceutical company, producing a wide range of quality, affordable
generic medicines trusted by healthcare professionals and patients across
geographic. It is ranked amongst the top ten generic companies worldwide. The
companies has world-class manufacturing facilities in 9 countries on ground
presence in 49 countries and its products available in over 125 countries across the
globe.

Ranbaxy was incorporated in 1961 and went public in 1973. For the twelve month
ended dec, 31, 2007 the companies global sales were at US $ 1340 mn. Overseas
markets accounted for around 80% of global sales. The company’s largest market
USA with the sales of US $ 380 mn. While Europe and BRICS (Brazil, Russia, India,
China, South Africa) countries contributed US $ 194 mn. And US $477 mn. to global
sales.

Ranbaxy laboratories has reported highest ever growth of 9.5% in prescription drugs
segment during the period July august 2006 against the industries negative growth
of1.3%.Ranbaxy has been ranked third in terms of growth and market share after
Glaxo Smith Kline and Cipla. Ranbaxy has five marketing arms of these
Rexcel,Main pharma and Solus have shown a growth of 19.7%,16.5% and 6.1%.

Ranbaxy is the largest integrated pharmaceutical company operating in India .The

company has a major cost advantage over its competitors due to complete
integration of its activities. The company has a strong presence in the area of bulk
drugs (API) pharmaceutical formulation exports of API and branded formulation,
state of the art R&D facilities. Ranbaxy has a robust pipeline of generics with several
value added products and strong backward integration to API involving complex
technologies.

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 RESEARCH METHODOLOGY
RESEARCH OBJECTIVE

The objective of the research is to know how customer satisfaction is fundamental to

business and the distribution channel in RANBAXY SOLUS (A division of RANBAXY
LABS LTD).

Objective:

 To measure the service quality of the products.

 To know the reason why physicians or doctors are important marketing of

the product.

 To know the channel of distribution and how product fulfill the demand of
the consumer

 To measure why company gives more importance on research and

development of new drugs by scientist.

 To helps the formulation of a standard formula, enabling the executives to

rely moderately on personal judgment, at the middle and lower level.

RESEARCH DESIGN

1. Type of research: Exploratory Study by a questionnaire survey. (dealer

& customer)
Sample Unit : physician (PSYCHATRISTS), distributor
&chemist

Sampling type : Stratified Random Sampling

Sample size : 100 (dealer/retailer)

150 (customer)

2. Data Collection:

To nullify the error in sampling we divided the city of Sambalpur and Rourkela
into 5 areas and the sample elements were gathered uniformly from each

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 area. This gave a preliminary idea on the customer satisfaction and how the
product distributes and its marketing.

The survey was conducted by means of a questionnaire. The elements of the

sample were in all type like physicians, stockiest, distributors and chemist of
different companies.

DATA ANALYSIS:
The data were analyzed through simple cross tabulation and unvaried
techniques. Visual displays of the data were done through pie charts and histograms

LIMITATION:
 The sample size taken for the analysis may not represent the whole
population.

 An in-depth study would require more time, thus due to time constraint
the result may have been affected.

 At the time of opinion, respondents tend to be biased with troubled us

while analyzing.

SCOPE:
 The survey was conducted on 300 respondents.

 Operational area was restricted to Sambalpur and Rourkela

 The survey was for consumer promotion & trade promotion

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 Your partners in care

Corporate Profile of
RANBAXY:

5
 CORPORATE PROFILE OF

Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India, and one
of the world's top 100 pharmaceutical companies. Long a specialist in the
preparation of generic drugs, Ranbaxy is also one of the world's top 10 in that
pharmaceutical category as well. Yet, with India's agreement to apply international
patent law at the beginning of 2005, Ranbaxy has begun converting itself into a full-
fledged research-based pharmaceutical company. A major part of this effort has
been the establishment of the company's own research and development center,
which has enabled the company to begin to enter the new chemical entities (NCE)
and novel drug delivery systems (NDDS) markets. In the mid-2000s, the company
had a number of NCEs in progress, and had already launched its first NDDS product,
a single daily dosage formulation of ciprofloxacin.

Ranbaxy is a truly global operation, producing its pharmaceutical preparations in

manufacturing facilities in seven countries, supported by sales and marketing
subsidiaries in 44 countries, reaching more than 100 countries throughout the world.
The United States, which alone accounts for nearly half of all pharmaceutical sales in
the world, is the company's largest international market, representing more than 40
percent of group sales. In Europe, the company's purchase of RPG (Aventis) S.A.
makes it the largest generics producer in that market. The company is also a leading
generics producer in the United Kingdom and Germany and elsewhere in Europe.
European sales added 16 percent to the company's sales in 2004.

Ranbaxy's other major markets include Brazil, Russia, and China, as well as India,
which together added 26 percent to the group's sales. Ranbaxy posted revenues of
$1.18 billion in 2004. The company, which remains controlled and led by the
founding Singh family, is listed on the National Stock Exchange of India in Mumbai.

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 Key Geographies of
RANBAXY
USA:
 Our largest market

 Robust product pipeline

 Strong distribution network

EUROPE:

 Our 2nd growth engine

 Developing Pan - European presence

 Key markets of UK, France & Germany

 Presence in 23 of 27 EU countries

 Acquisition of Terapia, an independent generics company in

Romania in 2006, the largest acquisition of Ranbaxy so far

BRICS:

 Emerging markets

 Strong home base in India

 Estd. Infrastructure Brazil, Russia, China and South Africa

Sales in Key Markets (Year 2006*):

 USA: US$ 380Mn

 EUROPE: US$ 194 Mn

 BRICS: US$ 477Mn

USA: Robust Operations

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  Introduced the first product in 1998

 Sales of USD 380 Mn in 2006

 Four Manufacturing Locations, 2nd largest manufacturing hub for Ranbaxy

 55,000 pharmacies hold Ranbaxy products, at least one Ranbaxy product is

available in every pharmacy in the US

 Robust Product Flow -a cumulative basket of 197 ANDAs with 121 approvals.

 10 product filings under U.S. President’s Emergency Plan For Aids Relief
(PEPFAR) in 2005 with 3 Tentative approvals under PEPFAR in 2005

 Growing product prescription market share

 Received prestigious ‘Wal-Mart Outstanding Supplier Award’, Cardinal Health

‘Supplier Quality Award’ and New Jersey Business Industry Association
Award for Excellence.

Europe - Key Markets:

Germany:

 Sales of US $ 29# Mn (2006)

 Changing market environment due to government regulations on healthcare

UK:

 Sales of US $ 35 Mn (2006)

 Aggressive competition amongst existing players

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  Day 1 launch of Ondansetron

 Enhanced focus on branded business in Respiratory segment

France:

 Sales of US $ 69# Mn (2006)

 EBITA positive

 Planned product switching to India on track

BRICS (Brazil, Russia, India, China & South

Africa) -Robust performance in key
emerging markets:

Brazil:

 Sales of US $ 27 Mn (2006)

 5 new molecules launched during 2006

 5th largest generic company

Russia including Ukraine:

 Sales in Russia US $ 65 Mn

 Amongst top 10 foreign generic companies

 Zanocin OD ranked No.1 Ofloxacin

China:

 Sales of US $ 13 Mn (2006)

 Focus on patent protected products / limited competition

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  Change in business model to increase hospital reach

South Africa:

 Sales of US $ 24 Mn

 5th largest generic company

 Acquisition of BE TABS

INDIA:

 Largest pharma company by sales and market share (5.10%*)

 Buoyant performance sales of US $ 275 Mn (2006)

 Growing ahead of the market growth

 Focus on chronic therapy & NDDS based differentiated products

 Chronic portfolio contribution at 21%(Cumulative Nov 2006) & NDDS based

products contribution to sales 9% (Moving Quarter Nov 2006)*

 Highest contribution in new product introductions amongst comparable peers

 21 brands amongst Top 300

Global Branding for the New Century:

Ranbaxy made good on its mission—by the middle of the next decade, nearly 80
percent of its sales came from outside of India. As a first step, the company launched
a new joint venture, in China, backing its entry into that market with a production
facility in Guangzhou. The following year, the company established subsidiaries in
London, England, and in Raleigh, North Carolina. In 1995, the company stepped up
its U.S. presence with the purchase of Ohm Laboratories Inc., which gave the
company its first manufacturing plant in that market. Ranbaxy then launched

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construction of a new state-of-the-art manufacturing wing, which, completed that
year, gained FDA approval.

This new facility enabled Ranbaxy to step up its presence in the United States, and
in 1998 the company began marketing its generic products under its own brand
name. That year, in addition, the company filed an application to begin Phase I
clinical testing on its first in-house developed NCE. The following year, the
company's NDDS efforts paid off as well, when Bayer acquired the rights to market
Ranbaxy's single daily-dosage ciprofloxacin formulation.

Ranbaxy's international expansion continued as well, with the launch of marketing

operations in Brazil. As the largest pharmaceuticals market in Latin America, that
country was the cornerstone of the company's plans to expand throughout the
region. Ranbaxy also expanded in Europe, with the agreement in 2000 to acquire
Bayer's Germany-based generics business, Basics. The company also added
production plants in Malaysia and Thailand.

Company Perspectives:
The Endeavour at Ranbaxy is to provide value. Value through pioneering work,
research & development and quality pharmaceuticals across the globe.Ranbaxy
keeps alive this endeavour as it steps into the new millennium, and reaffirms its
commitment to the environment, the people and a healthier future.

Parvinder Singh died in 1999 and longtime righthand man D.S. Brar took over as
company leader, naming family outsider Brian Tempest as company president. The
new management team continued Singh's expansion strategy, opening a new
manufacturing plant in Vietnam in 2001

Ranbaxy also sought new alliances, and in 2003 the company reached a global drug
discovery and development partnership with GlaxoSmithKline. That agreement
called for Glaxo to handle the later-stage development process for Ranbaxy created
molecules. The company's international expansion also took a major step forward at
the end of 2002, when it agreed to acquire RPG (Aventis) in France, that country's
leading generic drugs producer.

Ranbaxy's sales had by then topped the $1 billion mark, placing the company not
only as the leader in India's pharmaceuticals industry, but also among the ranks of
the world's top 100 pharmaceuticals companies. Ranbaxy also boasted a place
among the world's top ten generic drugs producers. In addition, the company had
advanced a growing number of its own NCE and NDDS molecules into clinical
testing. The company's transition into research-based product development was

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seen as crucial as India announced its intention to enforce international drug patents
at the beginning of 2005.

Ranbaxy appeared prepared to meet this challenge, however, and confidently set its
sights on boosting its annual sales past $2 billion by 2007 and to more than $5 billion
by the beginning of the next decade. International growth remained an essential part
of that strategy. The company began negotiations for a major acquisition in Germany
at the end of 2004, which was expected to be completed in 2005. The company also
launched construction of a new $100 million production facility in Brazil. Meanwhile,
Ranbaxy continued to increase its research and development budget, with the goal
of generating as much as 40 percent of its revenues from its in-house innovations by
the 2010s. Ranbaxy expected to remain India's drug leader into the new century.

Visions and aspirations of the Company:

The company’s vision is to achieve significant business in proprietary prescription
products by 2012 with a strong presence in developed market. It also aspires to be
amongst top 5 generic players with US $ 5Bn in sales, by 2012.

The company will focus on increasing its momentum in generics business in its key
markets of US, Europe,BRICS and Japan through organic and inorganic routes,
Ranbaxy Endeavour is to be a leader in the generic space and also to build a strong
proprietary prescriptions business based o n company’s NCE (New Chemical Entity)
research outcomes.

CORPORATE GOVERENCE OF RANBAXY (SOLUS)

“An institutionalized framework of corporate governance and code of practices to strengthen

decision making and compliance with ethical integrity and reliability”

Board of Directors

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 Audit Shareholder
Grievance/Transfer
Committees of the Board

Science Compensation

Management

Board of Directors

At the helm of the entire operations is the experience and able direction of the people
who make it all happen. Ranbaxy acknowledges their inspiring stewardship and
indefatigable work.

Dr. Brian W. Tempest

Mr. Malvinder Mohan Singh (C.E.O OF RANBAXY )
Mr. Mr. Atul Sobti
Mr. Ramesh L. Adige
Mr. Vinay. K. Kaul
Mr. Harpal Singh
Dr. P. S. Joshi
Mr. Surendra Daulet-Singh

Mr. Vivek Bharat Ram

Mr. Vivek Mehra
Mr. Gurcharan Das
Mr. Ravi Mehrotra
Mr. Sunil Godhwani

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Mission and values of RANBAXY :

MISSION:
To become a research based international pharmaceutical company.

VALUES:
 Achieving customer satisfaction is fundamental to our business

 Provide products and services of the highest quality

 Practice dignity and equity in relationships and provide

opportunities for company’s people to realize their full potential.

 Ensure profitability growth and enhance wealth of the share

holder.

 Foster mutually beneficial relation with all company’s business

partners.

 Manage company’s operations with high concern for safety and

environment.

 Be a responsible corporate citizen.

DIVISIONS OF RANBAXY:
Ranbaxy operates in INDIA, through these marketing arms such as:

MAIN PHARMA: Concentrates on the Anti-infectives,Nutrionals,Pain

Management .
Gastro-intestinal and Anti-allergy Markets.

STANCARE: Operating in the Anti-bacterial markets, specifically Quionolones

and cough preparations

CROSSLANDS: Offering products for dermatologist and orthopaedicians.

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SOLUS: Established in 1995 .solus focuses in the Central Nervous
System Market. .

REXCEL: Operates predominantly in the Antibiotics market

REXTAR: It has a portfolio of 19 products in various Therapeutic categories

Including Antibiotics, Pain management and Anti-allergic.

BLUE R: It focuses on brand generics and product portfolio with around

250 Products.

RANBAXY CV: Launched in 2002, focuses on the area of Cardiovascular and

Anti-diabetics.

SOLUS AT A GLANCE AND ITS PRODUCTS:

Solus pharmaceuticals commenced its operation in October 1995, with the strategic
intent of becoming a focused specialty CNS company. The company deployed
differentiated business practices in order to create a separate niche in the minds of
the customers and aimed to achieve operational excellence in the areas of customer
identification, communication skill, and campaign implementation. The initial
objectives of the company were achieved through its differentiated processes, in line
with the philosophy of being a prescription driven company.

Since1998, serlift has emerged as a brandleader in the Sertraline sub-segment of

the Antidepressant market and has given a strong identity to solus as a differentiated
CNS company.

With Selzic (oxcarbazapine) an anti-epileptic product in the neuro segment. Zanlop

(Zeleplon) a sedative launched in 2002, the division has been trying to introduce

15
value added dosage forms for better compliance, a specific concern for the relevant
patient class.

To strengthen existing CNS portfolio of celica (Citalopram) Anti-depressant, Paxit

(paroxetin), Anti- depressant sorest (Fluvoxamine) Anti-depressant new products
were introduced recently such as Aripra (psychiatry), Cilentral (anti-depressant),
Dopezil (Alzeihemers), olanex F (Anti-depressant), socalm.

SUCESSFUL NEW PRODUCT LAUNCHES:

Ranbaxy Lab Ltd. is very aggressive in new product launches in the domestic
market. The company being fully integrated enjoys cost advantages and currently
manufactures bulk drugs for the majority of the new products introduced over the
year , the company launches 24 new products in India, the majority of which in the
chronic and life-style disease segments. Ranbaxy Lab Ltd. Command a share of
31% in the new product category.

SOLUS KEY BRANDS:

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SL NO BRAND NAME GENERIC NAME THERAPEUTIC
SEGMENT

1 CELICA Citalopram Central Nervous System

2 CERESTAR Ginkgo biloba + Ginseng Central Nervous System

3 DOPEZIL Donegezil hcl Central Nervous System

4 GINKOCER Ginkgo biloba Central Nervous System

5 OLANEX Olanzapine Central Nervous System

6 RAXIT Paroxetine Central Nervous System

7 ROZIDA Risperidone Central Nervous System

8 SELZIC Oxcarbamazepine Central Nervous System

9 SERLIFT Sertraline Central Nervous System

10 SOBRIUM Zolpidem Central Nervous System

11 SOCALM Quetiapine Central Nervous System

12 SPECTRA Doxepin Central Nervous System

13 SOREST Fluvoxamine Central Nervous System

14 VENLA Venlafaxine Central Nervous System

15 ZANLOP Zaleplon Central Nervous System

16 ZALINOX Zopiclone Central Nervous System

SUCCESSFUL PRODUCTS IN INDIAN MARKET:

The first choice for depression management:

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18
19
 HAVE A SEIZURE FREE DAY IN EPILEPSY
 Facilitates overnight switch
 Established efficiency and safety (effective and well tolerated in refectory
bipolar disorder and schizoaffective disorder).
 Significantly fewer side effects.
 Also available SEL ZIC 150/300/600 mg tablet

THE FIRST CHOICE ANTI-PSYCHOTIC

 Enhancing patient compliance with instant dissolving tablets.

 Over coming non-compliance ith effective and safe treatment.
 For patients of psychosis with depression.

THE DOUBLE IMPACT ANTI-DEPRESSANT

 Early onset of action in week one.

 Higher remission rate than other anti-depressants.
 Multi particulate delivery system.
 Proved efficiency in depression.
 Proved efficiency in somatisation.
(Duloxetine was shown to be an effective treatment for the painful
Physical Symptoms associated with depression)

THE FIRST CHOICE IN BIPOLAR DISORDER.

 Desval ER maintains smoother blood levels over 24 hours.

 Safer and effective first line Therapy in Bipolar disorder.

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 THE FIRST CHOICE IN ANTI-DEPRESSANT

 The first Choice for a Spectrum of anxiety disorders.

 The first choice among anti-depressant.
 The first choice for special population.
(Favorable tolerability profile in elderly patients)
 The first choice for long-term usage.
(Favorable safely and tolerability profile over 12-month treatment)

IN NEUROPATHIC PAIN REDETINING CONFIDENCE

 With unique HMDS (Hydrogel Matrix Delivery System) technology.

 Ensures smooth and extended blood profile.
 Releases major portion of drug in upper intestine ensures maximum
absorption.

Atomoxetine Capsules 10mg/18mg/25mg/40mg

AS AN AUGMENTATION THERAPY IN DEPRESSION

 Effective across age groups.

 The only stimulant drug approved by the US FDA.
 Convenient once a day dosing.

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COMPETITORS:

According to Albert W Emery, “Marketing is merely a civilized form of warfare in

which most battles are won with words, ideas and disciplined thinking”. Today’s
companies are to pay as much attention to tracking their competitors as to
understanding their target customer. Knowing one’s competitors is critical to effective
marketing planning. The company should constantly compare its products, prices,
channels, and promotion with those of its close competitors. In this way, it can
discern areas of potential competitive advantage and disadvantage. The company
can lunch more precise attacks on its competitors as well as prepare stranger
defenses against attacks.

The major competitors of RANBAXY LAB Ltd. are as follows.

 RPG Enterprises;

 GlaxoSmithKline Consumer Healthcare Ltd.;

 East India Pharmaceutical Works Ltd.;

 Dr. Reddy's Laboratories Ltd.;

 Cipla Ltd.;

 Concept Pharmaceuticals Ltd.

 Khandelwal Laboratories Ltd.;

 Dabur India Ltd

 Sun pharma

 Nicholas piramal

 Zydus pharma

 Alkem Labs ltd

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 Your partners in care

Pharmaceutical
Marketing:

23
INDIAN PHARMACEUTICAL MARKET:

India region recorded sales of Rs 9130 mn. (US $ 202 mn.) during 2004, reflecting a
growth of 7.5%, while generating a 4.28% market share.(excluding OTC brand)

In The area of Novel Drug Delivery System (NDDS) products, which offer value-
added differentiation over conventional products, the company further consolidated
its position. The company’s share with in the NDDS products market was 7.9% in
2004. NDDS products now contribute 6.2% to internal sales of the India operation,
with a futuristic approach. India operation have started focusing on marketing of
‘biological’ formulations such as verorab (robies vaccine) and vaxigrip (fluvaccine)
which require competencies to propagate the newer concepts in the market place.

During the year, more than 2000 interface programs with doctors were conducted.
These included symposia and Continuos Medical Education (CME) programs around
20 clinical papers were also published in various scientific journals.

The year also witnesed the successful launch of premium molecules in the acute
and chronic segment, eight of the company’s brands featured at various points of
time amongst the list of top 30 new introduction in the markets, calculated over a 12
month period,viz.,
Etrobax Tablets (Etroricoxib)
Refzil O Tablets (Cefprozil)
Riconia G Softgel (Ginseng)
Cilenem Injection (Imipenem+Cilastatin)
Rosuvas Tablets (Rosuvastatin)
Minzo Capsules (Minocycline)
Desval ER Tablets (Divalporex)
AMX Capsules (Amoxycillin) and
Forzest Tablets (Tadalafil)

The Indian Regoin demonstrated strong brand building capabilities, with as many as
6 brands (Sporidex,Revital, Mox,Cifran,Volini and Storvas) featuring in the top 100
brands list of the Indian pharmaceutical industry.

The Indian region was perceived as the ‘Best-in-class’ by customers, as it topped the
List of companies both Indian and multinational in terms of corporate Image.
(Source: Ac Nielsen, ORG MARG Report, June 2004)

During 2004, with an eye on the future, the region undertook several initiatives to
gain a better understanding of the challenges of tomorrow.

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PHARMACEUTICAL MARKETING:
History
The marketing of medication has a long history. The sale of miracle cures, many with
little real potency, has always been common. Marketing of legitimate non-
prescription medications, such as pain relievers or allergy medicine, has also long
been practiced. Mass marketing of prescription medications was rare until recently,
however. It was long believed that since doctors made the selection of drugs, mass
marketing was a waste of resources; specific ads targeting the medical profession
were thought to be cheaper and just as effective. This would involve ads in
professional journals and visits by sales staff to doctor’s offices and hospitals. An
important part of these efforts was marketing to medical students.

Direct and indirect marketing to health care

providers
Physicians are perhaps the most important players in pharmaceutical sales. They
write the prescriptions that determine which drugs will be used by the patient.
Influencing the physician is the key to pharmaceutical sales. Historically, this was
done by a large pharmaceutical sales force. A medium-sized pharmaceutical
company might have a sales force of 1000 representatives. The largest companies
have tens of thousands of representatives around the world. Sales representatives
called upon physicians regularly, providing information and free drug samples to the
physicians. This is still the approach today; however, economic pressures on the
industry are causing pharmaceutical companies to rethink the traditional sales
process to physicians.

Pharmaceutical companies are developing processes to influence the people who

influence the physicians. There are several channels by which a physician may be
influenced, including self-influence through research, peer influence, direct
interaction with pharmaceutical companies, patients, and public or private insurance
companies.

There are a number of firms that specialize in data and analytics for pharmaceutical
marketing.

Individual research

Physicians discover pharmaceutical information from such sources as the

Physician's Desk Reference and online sources such as PDR.net, as well as via
PDAs with applications such as Epocrates and Thomson Clinical Xper
They also rely upon pharmaceutical-branded e-detailing sites, pharmaceutical sales
and non-sales representatives, and scholarly literature. Scholarly literature can be in

25
 the form of medical journal article reprints, often delivered by sales representatives
at their place of employment or at conference exhibitions.

Direct contact with pharmaceutical sales

representatives:

Currently, there are approximately 100,000 pharmaceutical sales reps in the United
States pursuing some 830,000 pharmaceutical prescribes. A pharmaceutical
representative will often try to see a given physician every few weeks.
Representatives often have a call list of about 200 physicians with 120 targets that
should be visited in 4-6 week cycles.

Because of the large size of the pharmaceutical sales force, the organization,
management, and measurement of effectiveness of the sales force are significant
business challenges. Management tasks are usually broken down into the areas of
physician targeting, sales force size and structure, sales force optimization, call
planning, and sales forces effectiveness.

Physician targeting:

Marketers attempt to identify the universe of physicians most likely to prescribe a

given drug. Historically, this was done by measuring the number of total prescriptions
(TRx) and new prescriptions (NRx) per week that each physician writes. This
information is collected by commercial vendors (see list in this article). The
physicians are then "deciled" into ten groups based on their writing patterns. Higher
deciles are more aggressively targeted. Some pharmaceutical companies use
additional information such as:

• profitability of a prescription (script),

• accessibility of the physician,
• tendency of the physician to use the pharmaceutical company's drugs,
• effect of managed care formularies on the ability of the physician to prescribe
a drug,
• the adoption sequence of the physician (that is, how readily the physician
adopts new drugs in place of older, established treatments), and
• the tendency of the physician to use a wide palette of drugs
• Influence that physicians have on their colleagues.

Data for drugs prescribed in a hospital are not usually available at the physician
level. Advanced analytic techniques are used to value physicians in a hospital
setting.

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Sales force size and structure

Marketers must decide on the appropriate size of a sales force needed to sell a
particular portfolio of drugs to the target universe. Design the optimal reach (how

many physicians to see) and frequency (how often to see them) for each individual
Physician. Decide how many sales representatives to devote to office and group
practice and how many to devote to hospital accounts.

Patients:

Since the 1980s, new methods of marketing prescription drugs to consumers have
become important. Patients are far less deferential to doctors and will inquire about,
or even demand to receive, a medication they have seen advertised on television. In
the United States, recent years have seen an increase in mass media
advertisements for pharmaceuticals. Expenditures on direct-to-consumer (DTC
pharmaceutical advertising) have more than quintupled in the last seven years since
the FDA changed the guidelines, from $700 million in 1997 to more than $4 billion in
2004.

Private and public insurers:

Public and private insurers affect the writing of prescriptions by physicians through
formularies that restrict the number and types of drugs that the insurer will cover. Not
only can the insurer affect drug sales by including or excluding a particular drug from
a formulary, they can affect sales by tiring, or placing bureaucratic hurdles to
prescribing certain drugs. In January 2006, the U.S. instituted a new public
prescription drug plan through its Medicare program. Known as Medicare Part D, this
program engages private insurers to negotiate with pharmaceutical companies for
the placement of drugs on tiered formularies..

Controversy:
• The mass marketing to consumers of pharmaceuticals is controversial. It is
banned in every western country except the US and New Zealand, which is
considering a ban. Some feel it is better to leave the decision wholly in the
hands of medical professionals; others feel that consumer education and
participation in health is useful, but consumers need independent,
comparative information about drugs (not promotional information). For these
reasons, most countries impose limits on pharmaceutical mass marketing that
are not placed on the marketing of other products. In some areas it is required
that ads for drugs include a list of possible side effects, so that consumers are
informed of both facets of a medicine. Canada's limitations on pharmaceutical
advertising ensure that commercials that mention the name of a product

27
 cannot in any way describe what it does. Commercials that mention a medical
problem cannot also mention the name of the product for sale; at most, they

• can direct the viewer to a website or telephone number operated by the

pharmaceutical company.
• The number and persistence of pharmaceutical representatives has placed a
burden on the time of physicians. "As the number of reps went up, the amount
of time an average rep spent with doctors went down—so far down, that
tactical scaling has spawned a strategic crisis. Physicians no longer spend
much time with sales reps, nor do they see this as a serious problem."

RESEARCH AND DEVELOPMENT IN

RANBAXY:

Ranbaxy views its Research and Development capabilities as a vital component of

its business strategy that will provide the company with a sustainable, long-term
competitive advantage. The company today has a pool of ~1.100 Scientists who are
engaged in path-breaking research with the commissioning of its new Research and
Development centre in august 2005. Ranbaxy now has in place, a total of three
modern state of the art, multi-disciplinary Research facilities, in the same campus at
Gurgaon, India.

Among the pharmaceutical companies in India, Ranbaxy has the largest Research
and Development budget with an spend of over 7% of sales. The company plans to
progressively increase its investment in Research and Development in coming year.

Ranbaxy also has a global alliance in the area of drug discovery and development
with Glaxosmith Kline PIC, presently two research programs have been initiated
which are progressing well.

28
 Multiple Collaborative Research Programs

Drug Discovery &

Clinical Development

Anti-Malarial
Drug Development

Cipro OD Technology
Out licensed

Research and Development in Ranbaxy being provide such as :

 New Drug Discovery Research (NDDR)

• Research focus on Infectious Diseases, Urology Metabolic Diseases
and Inflammatory/ Respiratory Diseases area.
• String NCE pipeline
• Molecules in different stages of Drug Discovery.
 Novel Drug Delivery System (NDDS)
• Patented platform Technologies.
• Several products based on these Technologies introduced in various
markets
• Several NDDS based ANDAs filed
• Helps in Developing a Differentiated Product Portfolio.

Facilities provide by Ranbaxy through Research and Development:

 Research and Development dedicated facilitiesfor-

 Innovative Research.
 Generic Research.
 More than 1400 Scientists
 In house Clinical Pharmacology unit.
 Conformation to International Regulatory Framework.

29
  Research and Development Spend from 7% of global sales
is targeted to go up to 9.10% by 2007.

Marketing of CNS PRODUCTS:

The marketing strategy for Central Nervous System brand is driven by intensive
focus on Serlift to ensure continued market leadership and dominance, successful
launch of Syprena and Sobrium to strengthen our presence in the Anti-psychotic and
hypnotic market, and sharper focus on the neurology segment, Relationship
management initiatives that have been crystallized during this year have contributed
significantly to the growth in Central Nervous System business, and will be
strengthened further through several activities described in the brand plan.
Simultaneously, medico marketing will form an important component of the media
plan for the Central Nervous System brand.

Your partners in care

Customer Value &

Satisfaction:

30
CUSTOMER VALUE:

Marketing Involves satisfying consumers needs and wants .The task of any business
is to deliver customer value at a profit. In a competitive economy with increasingly
rational buyers faced with abundant choices, a company can win only by fine –tuning
the value delivery process and choosing, providing and communicating superior
value.

In modern customer-oriented organization at the top are customer, next in

importance are front- line people who meet, serve, satisfy customer, under them are
the middle managers, whose job is to support the front-line people so they can serve
customers well, and the top management, whose job is to hire and support good
middle managers. It involved in knowing, meeting and serving customer.

Customer perceived Value:

Customer perceived value (CPV) is the difference between the prospective

customer’s evaluation of all the benefits and all the costs of an offering and the
perceived alternatives. Total customer value is the perceived monetary value of the
bundle of economic, functional, and psychological benefits customers expect to incur

31
in evaluating, obtaining, using and disposing of the given market offering, including
monetary, time, energy, and psychic costs.

Customer perceived value is thus based on the difference between what the
customer gets and what he or she gives for different possible choices. The customer
gets benefit and assumes costs. The marketer can increase the value of the
customer offering by some combination of raising functional or emotional benefit and
reducing one or more of the various types of costs.

THE VALUE DELIVERY PROCESS:

In traditional view of marketing is that the firm makes something and then sells it.
but in new era, the company knows what to make and the market will buy enough
units to produce profits. Companies that subscribe to this view have the best chance
of succeeding in economies marked by goods shortages where consumers are not
fussy about quality, features and style.

The traditional view of business process, however, will not work in economies where
people face abundant choices. There are the mass market is actually splintering into
numerous micro markets, each with own wants, perceptions, preferences and buying
criteria.

The smart competitor must design and deliver offerings for well-defined target
markets. The process consists of three parts .The first phase, choosing the value,
represents the homework marketing must do before any product exits. The
marketing staff must segment the market, select the appropriate market target, and
developed the offerings value positioning. The formula “segmentation, targeting and
develop the offerings value positioning. Once the business unit has chosen the value
,the second phase is providing the value. Marketing must determine specific product
features, prices and distribution.

The task of third phase is communicating the value by utilizing the sales force, sales
promotion, advertising, and other communication tools to announce and promote the
product.

Delivering high customer value IN RANBAXY-SOLUS:

Customers have varying degrees of loyalty to specific brands, stores, and

companies. Oliver defines loyalty as ‘A deeply held commitment to re-buy or re-
patronize a preferred product or service in the future despite situational influences
and marketing efforts having the potential to cause switching behavior’.

32
The value proposition consists of the whole cluster of benefits the company promises
to deliver; it is more than the core propositioning of the offering. The value-delivery
system includes all the experiences the customer will have on the way to obtaining
and using the offering.

RANBAXY-SOLUS give more importance to customer (physician, psychiatrist,

chemist, druggist), by providing better qualitative products and services with high
margin. Company gives more emphasis on physician because they are the one
important, who prescribes prescriptions for the patients and they play a important
part in sales promotion .so company gives more importance to physicians and want
to satisfy them.

Sales man(marketing executives, personal service representatives, medicine

representatives) give more value ti physician as a customer. Physician gets more
value than chemist and druggist in pharmaceutical marketing, because physicians
are who prescribe to buy products for consumers.

Solus is a division of RANBAXY and deals with neur-psychiatrist products in medico

market and it gives more importance to specialists such as psychiatrist and then
medicine specialist and at last physician. The company building a high customer
relationship by sales person and building a strong customer relationship with
psychiatrist and physician by motivating them with many value added gifts and
services.

CUSTOMER SATISFACTION:
Whether the buyer is satisfied after purchase depends on the offer’s performance in
relation to the buyer’s expectation. In general, satisfaction is a person’s feelings of
pleasure or dish-appointment resulting from comparing a product’s perceived
performance falls short of expectations, the customer is dissatisfied. If the
performance exceeds expectation, the customer is highly satisfied or delighted.

Although the customer-centered firm seeks to create high customer satisfaction, that
is not its ultimate goal. The company increases customer satisfaction by lowering its
price or increasing its service.

Measuring Satisfaction:

A Company would be wise to measure customer satisfaction regularly because one

key to customer retention is customer satisfaction. A highly satisfied customer
generally stays loyal and longer, buys more as the company introduces new
products and upgrades existing products, talks favorably about the company and its
products, pays less attention to competing brands and is less sensitive to price,
offers product or service ideas to company, and costs less to serve than new
customer because transactions are routine.

33
 The link between customer satisfaction and customer
loyalty, however, is not proportional. Suppose customer satisfaction is rated on scale
from one to five. At a very low level of customer satisfaction, customers are likely to
abandon the company and even bad mouth .RANBAXY-SOLUS and his marketing
arms always set up a strong customer relationship by providing qualitative products
and services.
When customers rate their satisfaction, an element of the
company’s performance, delivery the company needs to recognize that customers
vary in how they define good delivery. it could mean early delivery, on time-delivery
order completeness, and so on. The company must also realize that two customers
can report being highly satisfied for different reasons.
A no of methods exit to measure customer satisfaction
directly. Respondents can also asked additional questions to measure repurchase
intention and likelihood or willingness to recommend the company and brand to
others.
For customer satisfaction surveys, it is important that
companies ask the right questions. it brings typically focus surveys on the areas they
can control, such as Brand image, Pricing, and Product
features.
RANBAXY-SOLUS tracking customer value expectation
And satisfaction, companies need to monitor their competitors’ performance in these
areas. The company was pleased to find that 80% of its customers said they were

satisfied. Then CEO found out that its leading competitors had a 90% customer
satisfaction score. He was further dismayed when he learned that his competitor was
aiming for 95% satisfaction score. For customer-centered companies, customer
satisfaction is both a goal and a marketing tool. Companies that do achieve high
customer satisfaction ratings make sure their target market knows it. RANBAXY-
SOLUS is a customer oriented company and maintains strong customer
relationship providing qualitative products and services.

Product and Service Quality:

Satisfaction will also depend on product and service quality. What exactly is quality?
Various experts defined it as “fitness for use”, “conformance to requirement”,
“freedom from variation”, and so on. Quality is the totality of features and features
and characteristics of a product or service that bear on its ability to satisfy stated or
implied needs. Each marketing active marketing research, sales training, advertising,
customer service, and so on-must be performed to high standards.

 Ranbaxy Lab Ltd. Is very aggressive in new product launches in the domestic
market.

34
  The company being fully integrated enjoys cost advantages and currently
manufactures bulk drugs for the majority of the new products introduced over
the year ,

 The company launches 24 new products in India, the majority of which in the
chronic and life-style disease segments.

 Growing ahead of the market growth

 Focus on chronic therapy & NDDS based differentiated products.

 .Ranbaxy Lab Ltd. Command a share of 31% in the new product category.
Highest contribution in new product introductions amongst comparable peers.

 World class pharmaceutical products from Anti-infective, Antiretroviral,

Cardiovascular, Muscle-skeletal, Dermatological. Gastrointestinal, Central
Nervous System, Respiratory, Genitor-urinary and Nutritional segments.

 Several Products based on these technologies introduced in various markets.

 Helps in developing a differentiated product portfolio.

 21 brands amongst Top 300 .

 Broad Product Portfolio with 157 market authorization

Marketing for tomorrow’s customers:

Retaining your customers in a highly competitive and volatile market place is indeed
a tough task. More so, for business-to-business marketers, cut-throat competition will
draw you in unexpected headache. The year long relationship with a major customer
may get snapped up overnight with a new entrant offering a better deal. With a view
to gaining a competitive advantage in getting tomorrow’s customers, one need to
have a different kind of strategic thinking. Following are some major reasons for you
to draw up a new strategic plan for progress in the years to come:

1) Customers are looking for goods and services that would save their time and
trouble. In other words, they want goods with guaranteed quality.
2) Loyalty to a brand or company is fast becoming a thing of the past. This is
because the other players copy most innovations in no time, lowering the
costs to the customers.

35
 3) Too much competition is creating a flood of discount offers which can erode
brand or company image and therefore, profits are increasingly getting under
pressure.

In order to become the leader of the pharma market, a key positioning message be
developed for creating an awareness among the dealers, customers and the general
public that RANBAXY-SOLUS, Your Partners in Care, followed with -

 Continuous efforts to increase the network of customers;

 Continuous evaluations of the offers sponsored by your competitors

from time to time and take remedial measures;

 Continuous evaluations of the quality of products offered by you and

steps are taken to innovate.

Physician as a Customer.

Another vital component remains the relationship between the pharma company and
its physician bases the artificial influencers of the purchase decision, who literally
make the decision, while the end user makes the purchase. To achieve relationship
success, both consumer and physician communications must competent one
another. Once a consumer receives a message about a drug therapy that drives her
into the physician office. The pharma company must make sure that physician is well
enabled to deal with the inquiry and act accordingly.

So pharmaceutical marketing executives must catch up to their counter parts in

industries such as consumer packaged goods, who already take an integrated
approach to their marketing efforts. In return they will be better enabled to establish
their brand and grow relationship with their customers in the process.

Physician are those who deals with patients and prescribe medicines for their
treatment and one consumer(patient),will bound to buy that product and prescribe
amount also. So physician targeting is as important as for growth and distribution of
products of the company. RANBAXY-SOLUS has a vast research oriented
programmers for new drug discovery and always workout to launch new products for
fulfill the demand of the customer and consumer. So it is an important in a pharma
company to building a strong customer relationship with physicians.

So pharma companies appoint marketing executives to build up such relationship

with customer or physicians. They try to motivate them by providing gifts to them like
mobile phones, Fast track watches, furniture’s, Books, track suits ,cup sets. flight
tickets, packages for celebrating holidays in India and abroad etc. By all these gifts
or options marketing executives build up a strong relationship and which gives to
increase sales in the market.

36
Motivating a physician:
A physician played an important role in promoting sales and growth of the company.
A physician is one who prescribe prescriptions to his patients and one has to buy
only that product. So a physician is a important customer for pharma companies
,and only for that reason and to sale their products pharma companies brings many
options to satisfy one physician. They provide wide range of gifts traveling packages
And many more motivating plans to make a strong relationship with them and only to
prescribe their products.

Just like other companies RANBAXY appoints many sales

representatives, medicine representatives to visit regularly to physicians and aware
them about their products, new products and upcoming products. They maintain a
strong relationship with once or twice visit in a week and trying to motivate them to
prescribe their products as much as possible.

Providing him traveling packages to all over India or abroad, or

any gifts in a visit and then after once satisfaction they can fulfill their target by
physicians prescriptions.Ranbaxy-SOLUS is a special division which gives stress on
Central nervous system productsand it gives emphasis depression management .So
as such as an physician the most important customer for CNS products is
Psychiatrist.Psychiatrist are the specialist for treatment of psycho-problems
depression, stress and strain problems, night unsleeping problems. So they also
treat depression management.
So as to this division of RANBAXY, company treats psychiatrist
specially and he categorized physician and psychiatrist according to their no of
prescription and as such they maintains relationship to promote sales in that region.

Some Motivational Gifts to Physicians & Psychiatrists:

Company provide wide range of gifts and packages to motivate

a physician which brings a strong relationship with them and only for that physicians
prescribe more prescriptions and company can promote his sales further. Some of
the gifts are:

 Traveling packages to abroad or in any tourist spot in India. (The gift will
provide to few customers according to their potential.)

 Flight tickets to abroad or any where in India for Research oriented

conference.

 Mobile phones, Blue tooth USB mouse

37
  Home designing Furniture of good brand

 Cups ,Glasses and many other cooking items

 Rbk tracksuits

 Costly pens only for doctor use

 Fast-track wrist watches

 Parkevenue shaving kit

 Well designed, decorative gifts(provided to physician twice or thrice in a

month)

 A Variety range of sweets and packaged foods(These are given in a daily

meeting)

 Haldirams sweets(Provide to physician in a week once or twice visit)

 Snacks item .LAYS family pack(in a daily visit)

 Cadbury chocolates Family pack(twice in a week)

 Pens for doctor use(whenever meet)

Just providing such wide range of gifts by visit a doctor, sales representatives and
marketing executives motivates them to prescribe their product and which helps in
achieving their target and building a strong customer relationship with them.

Name of Some Important Physician & Psychiatrist in Rorkela:

38
SL DOCTOR NAME CATAGORY ADDRESS
NO.

1 Dr P K Nanda, Psychiatrist Dutala market, Sec-2 ,Rkl

2 Dr S Verma , Psychiatrist I.G.H, Sec-19, Rkl

3 Dr D C Mishra, Psychiatrist Prasanti clinic, STI Chock

4 DR K C Bhatta, Psychiatrist I.G.H, Sec-19, Rkl

5 Dr R N Mahapatra, Physician I .G.H, Sec-19, Rkl

6 Dr K B Das, Neuro-Psychiatrist I.G.H , Sec-19,Rkl

7 Dr T K Bose, Physician CWS Hospital, Rkl

8 Dr S.K Rath, Physician STI Chowk , Civil Township

9 Dr D.Majhi, Physician RGH, (Rourkela General Hospital)

10 Dr S.S Samal, Physician RGH, (Rourkela General Hospital)

11 Dr D.C Mishra, Physician RGH, (Rourkela General Hospital)

12 Dr Hardip Singh, Physician Daily Market,Rourkela

13 Dr P.K Jesthi, Physician Guru Dwara Road,Rourkela

14 Dr A.K Sihna , Physician Vesaja Patel Nursing Home,Rkl

15 Dr B.N Padhi, Physician Chaind,Rourkela

16 Dr P.K Mohapatra, Physician IGH,Rourkela

17 Dr B.K Khakkad, Physician Near UTI Bank,Rourkela

18 Dr S.K Satpathy, Physician IGH,Rourkela

19 Dr G.N Sahu, Physician IGH,Rourkela

20 Dr D.N Mohapatra, Physician IGH,Rourkela

21 Dr S. Mahapatra , Physician IGH,Rourkela

22 Dr R. Agarwala, ENT Near UTI Bank

39
Name of Some Important Psychiatrist Physician in Sambalpur:

SL DOCTOR NAME CATAGORY ADDRESS

NO

1 Dr N Mohanty Psychiatrist Sambalpur

2 Dr C R Mahapatra Psychiatrist Sambalpur

3 Dr K Roy Physician Sambalpur

4 Dr K D Purohit Physician Sambalpur

5 Dr J Patra ENT Sambalpur

6 Dr A Panda Psychiatrist Sambalpur

7 Dr A K Singh Psychiatrist Sambalpur

8 Dr T Panda Physician Sambalpur

9 Dr P K Nanda Physician Sambalpur

10 Dr A K Dalmiya Physician Sambalpur

11 Dr Alekh Mahapatra Physician Sambalpur

12 Dr Sunil Sharma Physician Sambalpur

13 Dr A K Mishra Physician Sambalpur

14 Dr N M Rath Psychiatrist Burla

15 Dr M R Nayak Psychiatrist Burla

16 Dr Gita Mohanty Neur- Psychiatrist Burla

17 Dr Sanjib Mishra Neur- Psychiatrist Burla

18 Dr S S Mishra Neur- Psychiatrist Burla

19 Dr Anup Mahapatra Neur- Psychiatrist Burla

20 Dr Ajay Rout Physician Burla

21 Dr B K Barik Physician Burla

22 Dr P C Koura Physician Burla

40
 Your partners in care

Channel of
Distribution System:

41
CHANNEL OF DISTRIBUTION SYSTEM:
The term ‘channel of distribution’ refers to the route taken by goods as they flow from
the producer to the consumer. This flow of goods means its physical distribution or
the transfer of title. (Ownership) The distribution system is concerned with the
movement of goods from the point of production to the point of consumption which
involves a variety of functions. The main participants in the distribution system are:
1. The manufacturers.
2. The Intermediaries.
3. The facilitating agencies.
4. The consumers.

Retailers (chemists):

These are the ones that buy and resale distributor to consumers and organizational
end users. Retailers may take the title to goods or may handle them and sell the
goods on a commission basis.

Distributors (stockiest):

Business that buy or resale merchandise to retailers and other distributor or to

industrial, institutional and commercial users, but do not sell in significant months to
end users (consumers).

Distribution Channel
Company
(Manufacturing Unit.)

Distributor

Sub-distributor

Retailers

Consumer

42
 Physical Distribution in Ranbaxt-Solus:

COMPANY

C.F.A(Clearance & forwarding agent)

SUPER –STOCKIST

STOCKIST

CHEMIST & DRUGIST

PATIENTS

CHARATERISTICS OF DISTRIBUTION CHANNELS:

A channel of distribution exists because its participant through specialization of

functions and transactional efficiencies can perform the marketing function better
with intermediaries than without them. Intermediaries tend to be used when:

 The number of sellers and buyers and the distance of product movement are
relatively large.

 The frequency of purchase is high.

 The lot sizes needed by end users and small and varied.

 Markets are decentralized

43
ROLE & IMPORTANCE OF DISTRIBUTION CHANNELS:

Distribution channel play a vital role in the successful marketing of more products,
especially consumer products. The importance of distribution channels can be
understood clearly by analyzing the wide variety of functions performed by them.

 Channels provide distribution efficiency to manufacturers.

 Channels supply products in required assortment.

 Channels provide salesmanship.

 Channels helps merchandise the product.

 Channels help implement the price mechanism.

 Channels look after physical distribution.

 Channels act as change agents and generate demand.

 Channels assist in sales promotion.

 Channels provide feedback and market intelligence.

 Channels transfer technology to users and act as “change agent’

TERMS AND CONDITIONS FOR DISTRIBUTERS:

These are following conditions;

 Distributors should have previous work experience.

 Financial capability should good.

 Should have market reputation.

 What products he deals on presently.

 His infrastructure (Vehicle, Godown, Manpower etc)

 His attitude towards business.

 Capability to handle future growth.

44
THE INTENSITY OF DISTRIBUTION:

Company must decide on the intensity of distribution. The numbers of middlemen are
to be used at the wholesale and retail levels in a particular territory.

Intensive Distribution: Under intensive distribution a products sale its product

through every available out let in a market where a customer might reasonably look
for it. Ultimate consumers demand immediate satisfaction from convenience goods
and will not defer purchase to find a particular brand.

Selective Distribution: In selective distribution a producer sells its product

through multiple, but not all possible. Distributor and Retailer in a market where a
consumer might reasonably took for it.

A company may shift to a selective distribution strategy after some experience with
intensive Distribution.

Exclusive Distribution: Under exclusive distribution the supplier agrees to sell

its product only to a single distributor, middlemen or retailer in a given market
producers often adopts an exclusive distribution strategy when it is essential that the
retailer carry a large inventory.

PLANNING THE DISTRIBUTION FUNCTION IN AN ORGANISATION:

Planning for Distribution is an important adjunct of long range marketing planning as

it involves critical marketing decisions such as the selection of distributing outlets and
service centre and creation of physical distribution capabilities through careful
distribution planning, a manufacture design his strategy to interact with the market
place and develop sound business relationship with existing and prospective
customers.

STEPS FOR DISTRIBUTION:

An organization is found with a number of questions at the time of deciding how to

distribute its product and services. These questions are as:

 Should it go direct or through conventional market middleman?

 How many wholesaler points should it cover to ensure satisfactory market

coverage?

 Where to locate these points?

45
  What should be the number of company owned were houses and where
should these be located?

A satisfactory answer to these questions would require a careful consideration of

firms objectives, its resources, the business philosophy of its top management,
specific needs of product and those of its customers such planning can be done
through the following steps:

 State the objectives of distribution.

 Examine the resources of the organization.

 Examine the products needs.

 Examine the market needs.

 Study the market needs.

 Study the legal environment.

 Identify the alternative systems of distribution

 Evaluate the various alternatives and select one which is found to be most
conductive to the attainment of marketing goals

PHYSICAL DISTRIBUTION SYSTEM:

The management of physical distribution provides an exciting opportunity for

improving customer service and reducing costs efficient distribution can increase
profitability by increasing sales and reducing costs actually physical distribution
management is “the process of strategically managing the movement and storage of
material, parts and finished inventory from suppliers between enterprise facilities and
to customers”

46
 PHYSICAL DISTRIBUTION LEVELS:

Manufacturer

Suppliers

Middlemen

End users
COMPONENTS OF PHYSICAL DISTRIBUTION SYSTEM:
Transportation: Transportation management is important making physical
distribution systems involve such transportation – related decisions as:

 Measuring the cost aspects of transportation selecting transportation modes

and pipelines specific carriers.

 Deciding whether to use owned equipment or to hire transportation services.

 Ranbaxy gives some percentage of transportation charges to the distributor. It

differs from city to city. The company gives more percentage to Rourkela,
Bolangir, Sambalpur, than Bhubaneswar and Cuttack.

The Warehousing function: Manufacturing plants were retail outlets are PDS
facilities. The company decides on the size, number and location of these facilities
are critical aspects of PDS design. An important aspect of warehousing is the
handling and storage of inventories efficient handling and storage can yield major
cost reductions.

Inventory Management and Control: Inventory decision are concerned

with balancing the costs of carrying inventory, ordering products from supplier and

controlling other inventory costs to achieve a desire level of customer satisfaction.

Actually, ” Inventory turn over refers to the number of times that the normal amount
of inventory carried by a company is sold in a year”

Decision about inventory turnover should be influenced by the speed and cost of
transportation, the location of facilities, the effectiveness of communication and
handling with storage requirement.

47
Order Processing:
Physical distribution System being deals with customers order. The cycle involved
many steps, including transmission of order by the sales person, order entry and
customer check, inventory and production scheduling. The longer the cycle takes the
lower the customer satisfaction and the company’s profit.

SERVICE RENDERED BY THE MIDDLEMEN:

Choice of channel of distribution is determined the market in Ranbaxy. Channel

management decisions are also determined by selecting channel member. The
services rendered by the middlemen are:

 Market feedback

 Competitor’s activities.

 Proper distribution of company’s product.

 Surplus of product.

 Market equipment placement and maintenance.

CHANGE IN CHANNELS OF DISTRIBUTION:

Ranbaxy is a volume oriented company. Necessity and reason for a change in

channels of distribution are:

 Non-achievement of targets

 Wrong attitude towards business.

 Financial incapability.

 No market involvement.

NAME OF THE DISTRIBUTOR & C.F.A IN ORISSA:

C.F.A (Clearance and Forwarding Agent)- PUJA TRADERS,CUTTACK

Distributor in ROURKELA – DRUGS POINT

48
Distributor in SAMBALPUR – GOINKA TRADERS

Your partners in care

Data Analysis and

Interpretation:

49
Products pack size and price structure:

SR. PACK PTR

NO. CODE PRODUCT SIZE (Rs.)

1 1078118 Almantin 5mg 10's 39.34

2 1078119 Almantin 10mg 10's 72.12
3 1062039 Aripra MT Tab 10mg 10's 49.18
4 1062062 Aripra MT Tab 15mg 10's 66.39
5 1062064 Aripra MT Tab 20mg 10's 81.96
6 1062065 Aripra MT Tab 30mg 10's 113.92
7 1076176 Attentin 10mg 10's 28.69
8 1076178 Attentin 18mg 10's 53.27
9 1076179 Attentin 25mg 10's 75.4
10 1076191 Attentin 40mg 10's 118.02
11 1076192 Attentin 60mg 10's 172.11
12 1077295 Citelec 500mg 10's 278.66
13 1081209 Citelec Injection A02 69.66
14 1005774 Celica 10mg Tab 10's 34.31
15 1005775 Celica 20mg Tab 10's 58.44
16 1005776 Celica 40mg Tab 10's 84.42
17 1000272 Cerestar Cap 10's 84.56
18 1045271 Cilentra 10mg 10's 48.9
19 1045272 Cilentra 20mg 10's 91.79
20 1045270 Cilentra 5mg 10's 27.47
21 1046757 Desval ER Tab 1gm 10's 81.26
22 1046752 Desval ER Tab 125mg 10's 21.55
23 1046753 Desval ER Tab 250mg 10's 33.15
24 1046755 Desval ER Tab 500mg 10's 57.6
25 1068319 Desval ER Tab 750mg 10's 73.76
26 1010605 Dopezil 10mg 10's 97.04
27 1010604 Dopezil 5mg 10's 67.86
28 1074900 Dutin 20mg 10's 35.23
29 1074901 Dutin 30mg 10's 50.98
30 1076200 Dutin 40mg 10's 65.9
31 1076201 Dutin 60mg 10's 90.15
32 1078111 Esitac 15mg 10's 57.37

50
 33 1002144 Ginkocer 40mg Tab 10's 73.35
S
R
NO CODE PRODUCT PACK SIZE PTR
34 1069979 Levroxa Oral Syp 100ml 237.68
35 1068844 Levroxa 250mg 10's 76.25
36 1068846 Levroxa 500mg 10's 156.63
37 1068848 Levroxa 750mg 10's 194.24
38 1077630 Levroxa 1gm 10's 237.68
39 1077785 Neugalin 75mg 10's 55.6
40 1077786 Neugalin 150mg 10's 103.6
41 1077789 Neugalin 300mg 10's 200
42 1081238 NEUPENT AF 450 10's 128
43 1081240 NEUPENT AF 600 10's 148.8
44 1081281 NEUPENT AF 900 10's 211.2
45 1004430 Olanex 2.5mg Tab 10's 14.95
46 1004429 Olanex 5mg Tab 10's 23.59
47 1004431 Olanex 7.5mg Tab 10's 35.2
48 1004432 Olanex 10mg Tab 10's 42.83
49 1005686 Olanex Inst.10mg 10's 48.72
50 1005685 Olanex Inst.5mg 10's 29.6
51 1067531 Olanex 15mg Tab 10's 60.6
52 1013755 Olanex F Tab 10's 42.4
53 1067533 Provake Tab 100mg 10's 35.24
54 1067535 Provake Tab 200mg 10's 68.34
55 1011019 Raxit 10 10's 59.09
56 1011060 Raxit 20 10's 85.24
57 1011065 Raxit 30 10's 115.56
58 1000341 Rozidal 1mg 10's 9.2
59 1000345 Rozidal 2mg 10's 14.48
60 1000343 Rozidal 3mg 10's 20.16
61 1000344 Rozidal 4mg 10's 28.16
62 1006584 Selzic 150mg 10's 27.35
63 1006585 Selzic 300mg 10's 47.67
64 1007583 Selzic 600mg 10's 82.02
65 1076284 Selzic OD 150mg 10's 27.87
66 1075749 Selzic OD 300mg 10's 53.87
67 1075761 Selzic OD 600mg 10's 97.53
68 1076285 Selzic OD 900mg 10's 139.33
69 1002493 Sobrium 10mg 10's 53.12
70 1002492 Sobrium 5mg 10's 31.6
71 1011920 Socalm 100mg 10's 42.41

51
 72 1011921 Socalm 200mg 10's 80.11
73 1011946 Socalm 25mg 10's 17.42

WORLDWIDE FINANCIAL MARKETS OF RANBAXY:

(REGION-WISE REVENUES (US $ 1340 Mn in 2000)

USA
14%

Europe
6%
RoW
34%

BRICS
46%

(REGION-WISE REVENUES(US $1340 Mn in 2007)

USA
RoW 28%
21%

Europe
SOUTHAFRI CA
BRICS CHINA
12% 15%
10%
36%

RUSSI A
BRICS 13%
- BRAZIL, RUSSIA, INDIA, CHINA& SOUTH AFRICA

I NDI A
52 45%
BRAZI L
20%
 (REVENUE ANALYSIS FOR BRICS US $ 394 Mn)

GENERIC MARKET OPPORTUNITY:

(STRONG GENERIC GROWTH THROUGH 2008)

78.5
80

60

40
32.5

43.70
20

19.80 9.7
6.5 5.6
5.50 4.30 2.90 3.3
0 1.20

Worldwide USA Germany Japan UK France

SOURCE-COMPANY FINANCIAL REPORTS 2008 2004

53
Growth in Global Markets:

CiplaSun
Dr reddy's
pliva Teva+IVAX
Ranbaxy
Acavis+Alpharm a
Merck Aga
WastonAndrx Sandoz
Barr+pliva

MARKET SHARE OF THE TOP PLAYERS IN INDIA

RANBAXY, 5% Nicholas Piramal, 4%

GSK Pharma, 5%
Cipla, 5% Zydus cadila, 3.48%

Others, 77.45%

54
 WORL D WIDE GLOBAL FOOTPRINT
RANBAXY AS MULTINATIONAL CORPORATIONS

(Ground Operations in 49 Countries, Manufacturing

Locations in 9 countries
Wide Range of Products Available in over 125
Countries)

55
 Your partners in care

Suggestions and
Conclusions:

56
 SUGGESTIONS AND
CONCLUSIONS:

Conclusions:
After completing my study in Ranbaxy-Solus I came to the following
conclusions.

 The management has a good understanding of its strengths,

weakness, market conditions, consumer behavior etc .The product and
marketing policy resulting out of the above observations has given the
organization the desire success.

 All the departments of the company are functioning well.

 The marketing department gives more importance on customer

satisfaction by providing qualitative products and services.

 The management of the company is very good and maintains a strong

customer relationship in the market.

 The sales representatives, marketing executives are very efficient and

capable of motivating customers to fullfil their sales target.

 Ranbaxy Labrotories Ltd spend a huge amount in Research and

development of new products. The company appoints more than 1400
scientist from all over India and also from abroad for research and
discovery.

 The distribution channel of the company is very well and the channel is
so capable to distribute products to every regions.

 Ranbaxy-Solus products are very demandable in ORISSA.

 Out of the products Cilentra, Desval-ER, Dutin, Escitac, Olanex,

Nupent-af, Sezic-od is quite preferred by the physician and popular in
market.

57
  Cilentra,Dutin,Spectra,Escitac are the first chice for a physician and
psychiatrist for depression management and it is quite preferred by
many physician.

 Like other divisions solus(Neuro-psychaitrist division) is quite popular

in market because of new launching of drugs in the market and also for
qualitative products.

 The distributor who distributes these products is very loyal and co-
operative towards company.

 They have no complains against the company.

 The retailers are also quite satisfy towards the company because of
product demand and high margin.

 Due to good products and service quality, High margin to Distributor

and strong customer relationship maintain by the company ,the
company increase its sales and it results growth of the company.

 Strong management team and with efficient marketing departments the

company can achieve its position at the top in the market and for that it
is now at no-1 position in India.

SUGGESTIONS:
In my opinion following suggestions should be taken into consideration
by the company which helps it to increase its sales ,market share and of attain a
leading position in the market and further growth can be achieved.

 At first the company should give more attention towards research and
drug discovery programmed.

 Diseases like AIDS and cancer should be prevented and curable with
new drug discovery and lunching of new products.

 The company should segment the market according to customer and

consumer.

 The company should launch new products as and in time demanded by

the consumers.

 Company should make the price per strip as such affordable by a

consumer of low income.

58
  The sales persons and marketing executives should be aware of the
composition and contains and usage of the products.

 The company should develop the product detailing capacity of sales

representatives.

 The company should maintain a strong relationship with the sub-

distributor and retailers.

Your partners in care

Annexur
e:

59
 QUESTIONNAIRE
(Questionnaire for the Physician & psychiatrist)

Dear sir,

As part of my 2-year PGDM program at Asian Workers Development

Institute,Rorkela.I have undertaken a project work to study the Customer Value,
Satisfaction and Channel Of Distribution in Ranbaxy-Solus(A Division of Ranbaxy
Labs Ltd),I would be grateful if you spare few minutes in filling up the following
questionnaire.

All information provided by you remains completely confidential.

Name & address of the Physician & Psychiatrist:

1. How many prescriptions you prescribed per day?

2. Do you aware of new launching of products?

YES NO

3. What types of patients come to you?

 General Patients

60
  Psychotic-patients

 Neurotic-patients

4. Are pack up with any other our competitor?

YES NO

5. Which product of our brand you prescribed for first choice of Anti-depressant?

 Cilentra

 Dutin

 Escitac

 Spectra

6. Which company products you prescribed more?

 Dr Reddy’s Lab

 Ranbaxy (Solus) Labs Ltd

 Cipla

 Nicholas Piramal

7. Do you receive any gifts from Ranbaxy-Solus regularly?

YES NO

8. The sales executives are regularly visit to you or not?

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 YES NO

9. Are you satisfy with product and service quality provided by the company?

YES NO

10. What you need more from our company?

Please specify_:_______________________________________________
_____________________________________________________________.

Questionnaire for the Retailers (Chemist and Druggist)

Dear sir,

As part of my 2-year PGDM program at Asian Workers Development Institute,

Rorkela.I have undertaken a project work to study the Customer Value, Satisfaction
and Channel Of Distribution in Ranbaxy-Solus(A Division of Ranbaxy Labs Ltd),I
would be grateful if you spare few minutes in filling up the following questionnaire.

All information provided by you remains completely confidential.

Name and address of the Chemist and Druggist-

1. Are you dealing with Ranbaxy-Solus Products?

YES NO

2. For how many have you been stocking Ranbaxy products?

3. Which brand medicines you stock?

 Ranbaxy

 Dr Reddy’s

 Nicholas Piramal

62
  Cipla

4. Which brand physicians prescribe more in his prescriptions?

 Ranbaxy

 Dr Reddy’s

 Nicolas Pirmal

 Cipla

5. Who is the best physician near to your shop?

Please specify _______________________________ .

6. How many prescriptions comes to you per day?

7. Do you satisfy with the margin given by the distributor,why?

YES NO

Please specify
___________________________________________________________________
___________________________________________________________________

8. What is the frequency of ordering medicine from the distributor?

 Daily

 Weekly

 Monthly

9. Any other suggestions you want to give?

Please specify
___________________________________________________________________
___________________________________________________________________

10. Do you satisfy with the product service and product quality of the company, how?

63
 YES NO

Please specify
___________________________________________________________________
___________________________________________________________________

Questionnaire for the Distributor (stockiest)

Dear sir,

As part of my 2-year PGDM program at Asian Workers Development Institute,

Rorkela. I have undertaken a project work to study the Customer Value, Satisfaction
and Channel Of Distribution in Ranbaxy-Solus(A Division of Ranbaxy Labs Ltd),I
would be grateful if you spare few minutes in filling up the following questionnaire.

All information provided by you remains completely confidential.

1. Name and address of the Distributor:

Name of the Distributor ________________________________

Name of the firm ______________________________________

Location ____________________________________________

No. of workers work under ______________________________

Educational qualification of the Distributor __________________

2. Why you took of the distribution of Ranbaxy products?

64
Please specify
___________________________________________________________________
___________________________________________________________________

3. How you get this distributionship?

Please specify
___________________________________________________________________
___________________________________________________________________

4. What are the terms and conditions of the company for distribution?

Please specify
___________________________________________________________________
___________________________________________________________________

5. Were the terms and conditions suitable for you?

YES NO

6. What type of facilities you get from the company?

Please specify
___________________________________________________________________
___________________________________________________________________

7. How do you appoint your retailers?

Please specify
___________________________________________________________________
___________________________________________________________________

8. Are retailers satisfied with your distributionship?

YES NO

9. Are you involved with advertisement of company products, if yes what is the
company’s share?

YES NO

Please specify ______________________________________________________

10. In your opinion which is the most accepted brand or profile for Ranbaxy-Solus
product.

65
  Price

 Quality

 Product features/ composition

 Margin
11. Do you supply these products to sub-distributors and retailers?

 Daily

 Weekly

 Monthly

12. Any suggestion or complains to company-

Please specify
_______________________________________________________________

Your partners in care

Bibliography:

66
Books:

 Marketing Management by Philip Kotler

 Research Methodololy in Management by Dr.V.P. Michael

Search engines:
 www.gogle.com

 www.msn.com

Websites:
 www.ranbaxy.com

 www.myranbaxy.com

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