INTERNATIONAL BUSINESS AND MARKETING PLAN STRATEGIES

FOR INDIAN PHARMACEUTICAL PRODUCTS

SUMITTED TO: PROF. AMIT KUMAR

SUBMITTED BY: AMOL SRIVASTAVA GAURAV YADAV NAVED ALAM TRISHU SHARMA

EXECUTIVE SUMMARY
In this project we try to find out the market size, Conditions and growth opportunities in Namibia for the Pharmaceutical products, which include International research and decision making for the pharmaceutical products in terms of its demand, competitors, segmentation and supply by the Indian manufacturers. Apart from all the above the objective of the project is: To find out various barriers faced by Indian manufacturers and exporters. Entry modes selected by Indian players. To understand the pricing strategy To understand the distribution system followed by the Indian players. CSR of the company and future growth of the product Promotion strategies.

PRODUCT FOR EXPORTING

Product that our group has selected is Pharmaceutical products.
Market Size of Global pharmaceutical market is highly dynamic and is characterized by greater levels of R&D expenditure and extensive regulation of its products. Global Pharmaceutical sales are estimated to be US$ 643 billion in 2006, a growth of 7% over the previous year. Sales have grown from US$334 billion in 1999 to US$ 643 Billion in 2010, witnessing a CAGR of 10%. North America is the major pharmaceutical market accounting for around of 48% of global pharmaceutical sales. EVOLUTION OF INDIAN PHARMECUTICAL INDUSTRY: - Indian pharmaceutical industry has come a long way since the time of independence when multinational corporations dominated the industry. Over the years, under a favorable policy regime, the industry has grown phenomenally and has established itself as a major supplier of not only generic products but also new formulations. PRESENT STATUS OF INDIAN PHARMECUTICAL INDUSTRY: - The annual turnover of the Indian pharmaceutical industry is over US$ 11 Billion. Globally it ranks 4th in terms of volume with a share of 8% in the world pharmaceutical market. In terms of value, it ranks 14.The pharmaceutical is also showing good performance in terms of exports. It is one of the top export items from India accounting for more than 4% of Indias total export of 2009-10.Major export market includes highly regulated markets such as USA, Germany, UK, Canada. Europe and Africa is the biggest export destination for Indian pharmaceuticals

The country which we have selected is Namibia.

With a population of 1.8 million and a GDP of US$ 2.9 billion, Namibia presents a small, but potentially attractive market to Indian companies, particularly as a gateway to the southern Africa region. Namibia s strengths include a modern infrastructure, a good business climate, and economic and political stability. Since 1990, the Namibian economy has grown by an average of 3.7 per cent per year. Nominal growth in 2003 was a healthy 3.4 per cent, largely due to increased diamond production. Growth in 2000 to 2005 should increase slightly with continued gains in diamond mining and higher expectations for the tourism sector. In 2003, GDP per capita was US$

1,615, which classifies Namibia as a lower middle- income country using World Bank standards. However, Namibia has one of the worlds most skewed income distributions, with the 5 per cent white population having a per capita income several times that of the rest of the population

LOCAL MARKET DEMAND AND TREND FOR PHARMACEUTICAL PRODUCTS:

The Namibian market is a prescription market. The issue of medicines is made through formal channels and the reimbursement system by medical aid schemes requires a prescription. In commercial value terms, the Namibian healthcare market including pharmaceutical is estimated to be worth about N$2 million, soon reaching the N$2.5billion mark. In the table below we have some data regarding the market size for drugs and medical consumables are presented below from figures supplied by the ministry of health and social services.

Total gov. Healthcare exp. (N$ in Crores) Drugs and medical consumables exp.(N$ in Crores)

2006-07 1,278

2007-08 1,385

2008-09 1,560

2009-10 1,581

9.8

9.4

9.1

20

COMPETITORS: - To enter the Namibian market, India pharmaceuticals

would have to compete with imports from South African manufacturers or middlemen of multinational with subsidiaries in South Africa. These very imported products find their way into Angola and other countries in Southern Africa via Namibia. To circumvent these traditional links which have existed

for a long period of time, Indian importers should aim to create alternate distribution channels or create joint ventures with emerging black owned firms

STP
SEGMENTATION: - We are entering Namibian market with HIV/AIDS Drugs. Both the gender that is in the age group of 15-49 with middle income can be the important segments.

TARGETING: - Consist of group of customers who share similar set of

needs and wants. As we are entering Namibia market with Life saver Drug which cures HIV/AIDS, we will go in the mass market. There are less number of competitors in Namibia for HIV/AIDS Drug.

POSITIONING: - The place the product occupies in consumers minds

relative to competing products. Creating an image of most trusted Drug that helps to cure from HIV/AIDS. Print n broadcasting in radio would be used to position our product.

INDIAN SUPPLY ANALYSIS

POLICIES & BARRIERS

Entry mode The entry mode selected by Indian pharmaceutical firms is Licensing Under license agreement, one firm permits another to use its intellectual property for compensation called royalty.

The firm that makes the offer is the licensor and the recipient firm is act as the licensee.

The property licensed generally includes such assets as patent, trademarks, copyrights, trade-secrets, technical know-how, business skills.