CURRENT MARKETING AND DISTRIBUTION CHANNEL TREND OF ETHICAL PRODUCTS IN INDIAN PHARMA INDUSTRY

Presented By SADAKAT

INTRODUCTION
Worlds largest industry due to worldwide revenues of approximately US$2.8 trillion More than 2,400 registered pharmaceutical producers in India

24,000 licensed pharmaceutical companies

Pharmaceutical distribution channel usually has three channel members i.e. depot/C&F, stockiest and chemist

Pharmaceutical market in India

Indian pharmaceutical industry is one of the developing worlds largest and most developed, ranking 4 in the world in terms of the production volume and in domestic the consumption value Indian Pharma Industry is playing a key role in promoting and sustaining development in the vital field of medicines Fastest growing segments of the Indian economy with an average annual growth rate of 14-18 percent

34

foreign

drug

companies

engaged

in

the

Indian

pharmaceutical market and among them are 15 of the worlds 20 largest pharmaceutical companies

RESEARCH OBJECTIVES
To understand the pharmaceutical market in India and the evolving process of segmentation in it as well as to understand the need for it. To critically analyse the marketing strategy of the pharmaceutical market in India. To analyse the new distribution channels resorted to by the Pharma majors to tackle the challenges faced by them.. To understand the pharmaceutical market in India and the evolving process of segmentation in it as well as to understand the need for it. To critically analyse the marketing strategy of the pharmaceutical market in India. To analyse the new distribution channels resorted to by the Pharma majors to tackle the challenges faced by them.

METHODOLOGY
DATA SOURCES PRIMARY DATA INTERVIEWS COLLECTION OF INFORMATION

SECONDARY DATA
STATISTICAL TOOLS USED

Questionnaire

Pie Charts
Tables

PRIMARY FINDINGS & ANALYSIS

Q) How do you place the Indian pharmaceutical industry in the global pharmaceutical map
35% 30% 25% 20% 15% 10% 5% 0% competitive badly placed on par cant say 32% 27% 16% 25% on par, 16% competitive badly placed on par cant say competitive, 32% badly placed, 27% cant say, 25%

Q) How do you think the role of govt. should be as regards the

present situation in the pharmaceutical industry
protectionist, 44% cant say, 38%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% protectionist non-interference cant say

non-interference, 18%

protectionist non-interference cant say

44% 18% 38%

Q) Do you think that the entry of Multinationals is a major challenge

to the domestic players in the pharmaceutical market

60% 50% 40% 30% yes, 36%

no, 54%

yes 20% cant say, 10% 10% 0% yes no cant say 36% 54% 10% no cant say

Q) What type of marketing strategy would you prefer to expand your market size

Both, 45% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% B2B B2C Both 23% 32% 45% B2B, 23% B2B B2C Both B2C, 32%

Q) What innovative distribution channel do you suggest to better market

your products
45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
be tte r supply chain e motional branding corporate alliance s gre ate r me dia participation othe rs 34% 42% 12% 10% 2%

better supply chain emotional branding corporate alliances greater media participation others

Q) Do you think that market ethics/ medical ethics is a major factor in the new distribution channel of marketing

60% 50% 40% 30% 20% 10% 0% yes no cant say

yes, 57%

no, 28% yes cant say, 15% no cant say

57% 28% 15%

RECOMMENDATIOS
There can be various ways through which a business organization can achieve success in the market. the domestic pharmaceutical market will be largely driven by the increasing prevalence of chronic segment the organization with Competitive Advantage tends to be the cost leader in the industry or a seller of most differentiated products amongst all the players . the success of any pharmaceutical industry; when a company changes its concentration from Acute to Chronic therapy market depend on competitiveness of supply chain.

CONCLUSSION
The Indian pharmaceutical industry, with its strong reverse engineering and chemistry skills and relatively low cost structure A factor in Indias favour is the pressure on global pharmaceutical companies to reduce drug costs, which in turn points to outsourcing The marketing strategy of the pharmaceutical industry in India has changed and new distribution channels have been introduced. As marketing experts say, it is a war out there, with many players numbering 24,000 pharmaceuticals in the Indian battlefield. Medicinal nature of the product prevents the organisation from using any publicity campaign unlike FMCG.

 The stronger the sales force better is their chance of success and growth. Strength in quality of the sales force cannot be over looked due to the specific nature of the product itself

THANK YOU