35286540 dr redddy s lab product analysis in urban market delhi

A PROJECT REPORT ON

“TO ANALYZ THE LEVEL OF PRESENCE AND PREFRENCE OF DR.REDDY’S PORDUCT IN DERMATOLOGY SEGMENT”

CONDUCTED AT

NARAYANA, NEW DELHI

Submitted in partial fulfillment of PGDM (Post Graduate Diploma in Management) batch (2009-2011) summer training project under the guidance of:

MR.DEEPAK MIGLANI,

Scientific Business Officer, Dr Reddy’s Lab (Organizational guide)

Prof.V.K.SURI,

Faculty Member, ITS (Institutional guide)

FACULTY-ITS

SUBMITTED BY:

ANURAG TIWARI

PGDM (2009-11)

ITS, MOHAN NAGAR CAMPUS

INSTITUTE OF TECHNOLOGY & SCIENCE, GHAZIABAD

2009-11

APPROVAL SHEET

FACULTY OF MANAGEMENT, ITS

This is to certify that the dissertation titled “TO ANALYZ THE LEVEL OF PRESENCE AND

PREFRENCE OF DR.REDDY’S PORDUCT IN DERMATOLOGY SEGMENT” has been prepared by Anurag Tiwari in a 45 days dissertation work done in Dr Reddy’s Laboratory, Delhi for the partial fulfillment for the requirement of the course of Post Graduate Diploma in Management (PGDM) 2009-11.

The data is collected and analyzed by the student under the guidance of Prof. V.K.Suri, Faculty member, ITS, Ghaziabad and is hereby approved as indicating the proficiency of the candidate.

………………………… …………………………

Prof. V.K.Suri

(Guide and faculty member, PGDM) (H.O.D. PGDM)

…………………….... ……………………….

(External Examiner)

(Director)

TABLE OF CONTENTS


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Sl.No. TOPIC PAGE No

1 Acknowledgement 4

2 Preface 5

3 Executive Summary 6

4 Introduction 8

5 Research Methodology 31

6 Organizational and Study Area Profile 32

7 Findings & Analysis 37

8 Suggestions & Recommendations 50

9 Limitation of the Study & Conclusion 52

10 Bibliography 53

11 Annexure 54


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ACKNOWLEDGEMENT

It is a matter of great pleasure and honor to work as a summer trainee in a prestigious

organization like Dr.Reddy’s Lab. The preparation of any report calls for the contribution and

co-ordination from many others besides an individual alone. It is a matter of meticulous efforts

put in by many minds that contribute to the final report formation and this one is no exception.

Several people have made this report possible through their valuable inputs. It gives me pleasure

to express my gratitude to my project guide Mr. Deepak Miglani (Scientific Business Officer)

for his guidance and support right from the beginning of the project till the preparation of final

report. I would also like to express my sincere gratitude to Mr. Himanshu Diwedi (SBO), Prof

V.K.Suri (Faculty Member, PGDM, ITS) and all the Faculty member of ITS for their invaluable

suggestions. I would take the opportunity to thank Prof. Durba Roy who helped me getting into

such a prestigious organization like Dr. Reddy’s Lab to pursue summer training.

I would like to extend my thanks to the respondents who gave the interview and contributed

their precious time for my research work. My study would really have been incomplete without

their cooperation. I would also like to acknowledge my family members and friends who

encouraged me throughout my study. There are a number of people involved in the successful

completion of my dissertation work without the help of whom; I would never have been

successful in my endeavors.


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PREFACE

In I.T.S, PGDM program has been designed keeping in mind the requirement of companies in

the world at large. We, as a student of I.T.S are required to undergo a summer internship in any

industry related to their field of interest after the completion of 2nd semester, where the students

have to prepare a project choosing a particular area of specialization. Practical exposure

essentially forms a crucial base of theoretical learning.

I completed my summer training on the topic “ANALYZ THE LEVEL OF PRESENCE AND

PREFRENCE OF DR.REDDY’S PORDUCT IN DERMATOLOGY SEGMENT” at

DR.REDDY’S LAB, Delhi. This period was marked by good experience of exposure and joy.

This 45 days summer training program provided me with an opportunity to know the

organizational environment, the business practices of a system and the problems involved with

retaining and increasing the market share of the organization. During this period I was able to

enhance my knowledge in the field of marketing. It actually gave me a chance to test the real

water.

The research was carried out in order to find out the market potential of Dermatology segment

(Hair loss, Anti Acne, Sunscreen), and to come to know the availability of new Sunscreen

products launch by Dr.Reddy’s in the light of working environment.

This comprehensive work is definitely a result of my 45 days hard work and I anticipate that it

would be liked by my mentors and also help me immensely in my future learning in the

marketing sector.


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EXECUTIVE SUMMARY

This study was conducted in the urban areas of South Delhi; comprising of Chiraag Delhi, Yusuf

Saray, Lajpatnagar, Saket, Hauz Rani, Malviya Nagar, New Friend Colony, Safdarjung, Hauz

Khas, Mehrauli, Sarai Jullena, Lodhi Road, South Extension, Kotla, Jungpura, Maharani Bagh,

Okhla, Vasant Vihar, Kalkaji, Defence Colony, Greater Kailash, Munarika, Taimor Nagar,

Vasant Enclave, Khanna Market, Khan Market, Mahipalpur, Mehrauli and Ranjpura Road. In

this study 300 Chemists (both Whole sellers and Retailers) were personally interviewed through

a pre coded, pre tested questionnaire.

The study actually aims to find out the sale of different brands of Dermatology products under

various segments like Hair loss, Sunscreen and Anti Acne. It also focuses to find out the

popularity of Dr Reddy’s products and the competition it faces from other brands. The study also

aims to find out the availability of Dr Reddy’s new launched products in the market.

The purpose of taking up such a study was to actually find out the ways the dermatology

products of Dr Reddy’s are marketed and the ways its products can maintain and expand its

presence in the market.

The study also unfolds the preferred brands of customers and doctors in the segments of hair

loss, sunscreen and anti acne prevention which further helps to establish an interesting

correlation between the demands of the various brands under these above mentioned segments

with the respective sale of the products.

It also helps to assess the performance of Dr Reddy’s products under various segments and the

steps that can be adopted to improve its presence as well as sale in the market. In a way, the

research findings can help to strategize the way these products are marketed and streamline the

organizational efforts. In a way, the present study can prove useful for the organizational

members to meticulously adopt ways to maintain the product repute as well as to maximize sales

of its product in the market.


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A major reason for interviewing the chemist was because; they actually act as an interface

between a pharmaceutical company and their customers. They are the best people to tell about

the sales of products and its popularity among the customers. They sometimes form the part of

those untapped, unutilized potentials on which the company hardly banks on. Conducting such

study not only touches this potential but also bridges the gap between the organization and this

interface. In a way such research also helps the organization reach to its lakhs of customers in a

particular region.

A major finding of the study is that under the hair loss segment the market share of Mintop is

very high, which is Dr Reddy’s product. Mintop is in a handsome position but at the same time

Nexret which is the organizational product in the anti acne segment is not holding a major share

of the market.


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CHAPTER-1

INTRODUCTION

The Global Pharmaceutical Industry is at a growing trend. Most of the famous business forecasters have predicted that the demands of drugs would increase this year, thereby giving a positive push to the sales. The global pharmaceutical market is set to grow 4 percent to 6 percent next year, exceeding $825 billion, market intelligence and research company IMS Health (RX) said on Oct 7. This is higher than previous IMS estimates by one percentage point. Through 2013, the researcher predicts worldwide pharmaceutical sales will grow at a 4 percent to 7 percent compound annual growth rate and reach a market value of more than $975 billion in 2010.1There will be some sudden changes in the key market dynamics this year like growth in the US Pharmacy industry and despite the economic downturn the BRIC countries namely Brazil, Russia, India and China are expected to grow in the coming years. The BRIC countries (Brazil, Russia, India and China) are all becoming more industrialized and as the middle class grows, so does demand for quality healthcare. That presents new opportunities for smart companies with resources and infrastructure. These trends are seen across the board, not just in sales and marketing, but also in R&D as companies seek to reduce development costs and speed time to market by going to emerging markets where there is a much larger, untapped pool of newly diagnosed patients available.2Thus the Global Pharmaceutical Industry now looks quite promising.

In a country like India, where there is a shift in the disease pattern. When we look back, the cause of most of the deaths in our country were due to serious epidemic that used to break earlier but now the Indian population has evolved and it faces disorder like stress and obesity that leads to high incidence of acute diseases. With increasing awareness and increased purchasing power, the Indian population has started spending on health care. Driven by increasing affordability, shifting disease pattern and modest healthcare reforms, the total consumer spending on healthcare products and services in the country grew at a compounded annual rate of 14% from 2000 to 2005. The pharmaceuticals industry which accounts for 15 to 20 percent in the total health care spend, grew at a compounded annual rate of 9 percent during this period.3

1. “A slightly healthier forecast for global pharmaceutical sales in 2010” by Melly Alazraki.2. “Strategic trends in Pharmaceutical industry” by Sally Church, PhD3. “Indian Pharma-2015, Unlocking potential of Indian Pharmaceutical Market” by Gautam Kumar, Palash

Mitra and Chandrika Pasricha


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http://finance.aol.com/quotes/ims-health-incorporated/rx/nys

http://www.imshealth.com/portal/site/imshealth/

http://www.imshealth.com/portal/site/imshealth/menuitem.a46c6d4df3db4b3d88f611019418c22a/?vgnextoid=500e8fabedf24210VgnVCM100000ed152ca2RCRD&vgnextchannel=b5e57900b55a5110VgnVCM10000071812ca2RCRD&vgnextfmt=default

http://www.imshealth.com/portal/site/imshealth/menuitem.a46c6d4df3db4b3d88f611019418c22a/?vgnextoid=500e8fabedf24210VgnVCM100000ed152ca2RCRD&vgnextchannel=b5e57900b55a5110VgnVCM10000071812ca2RCRD&vgnextfmt=default

Yet there are a number of questions that remains unanswered like what will be the future potential of Pharmaceutical industry in India and how will it further evolve. However one thing is very true that, the increasing trend that this industry is showing and its major share in the health care industry has indicated the tough competitive environment which will be created among the Indian Pharmacy companies. In this regard several marketing research agencies have conducted research to study the future of Indian Pharmaceutical industry. One of such research was conducted by Mckinsey & Company using different growth models. The analysis shows that the Indian pharmaceutical industry will undergo a major transformation in the next decade. Six trends will influence the growth of Indian pharmaceutical industry namely, doubling of disposal income and the number of middle class house hold, expansion of medical infrastructure, greater penetration of health insurance, rising prevalence of chronic diseases, adoption of product

patents and aggressive market penetration by relatively smaller companies.4

Graph-1: India will be among top 5 markets globally during 2005- 2015

US (196)

China (23

India (14)

France (14)

Japan (14)

U.K (13)

Canada (12)

Brazil (11)

Germany (7)

Source: IMS World Review, analyst projections, Mckinsey India Pharmaceutical Demand Model

4. “Indian Pharma-2015, Unlocking potential of Indian Pharmaceutical Market” by Gautam Kumar, Palash Mitra and Chandrika Pasricha


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The various factors that are held responsible for the immense potential Indian pharmaceutical Industry has are as follows:

The influence of physicians remains very high in India. Growing prevalence of lifestyle disorder will spur the growth of specialty and super-

specialty therapy. These diseases include chronic heart diseases, Diabetes, Asthma, Obesity and Cancer.

Significant parts of Indian population BPL are now moving above the poverty line thereby an increase on basic health care and consumption of mass therapy drug is anticipated.

Generic products will continue to dominate in the Indian Market till we the regulatory issues settled.

The Pharmacy sector has various segments. One of its branches is Dermatology, which deals with the disorders related to skin and hair. The cosmetic sector of our country is gradually converging with it and seeking solutions from the dermatology segment of Pharmaceutical industry.

The present study reveals the market presence of various dermatology products of Dr Reddy’s Lab and its performance in South Delhi. The study is basically an assessment study and a bit exploratory which has emerged out of 45 days research work and is compiled into various chapters. The second chapter deals with the research methodology, third one deals with the organizational and study area profile, the fourth chapter deals with the findings and analysis section, the fifth chapter comprises of the suggestions and recommendations while the sixth chapter includes the conclusion. The study ends with the annexure section.


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CURRENT POSITION OF INDIAN PHARMA INDUSTRY

The value growth of Indian pharma market as per secondary sales for the month of

Mar 2009 was higher at 18.4%, as compared to 13.3% growth in the month of Feb 2009,

according the latest data from ORG IMS, a business intelligence firm

The value growth as per Mar 2009 MAT once again touched the double-digit mark of

10.1%, with marginally higher growth, as compared to 9.8% as per Feb 2009 MAT.

The value growth in the month of Mar 2009 was higher at 16.8%, as compared to 12.5%

in the month of Feb 2009. The value growth as per Mar 2009 MAT (14.1%) was

marginally higher as compared to Feb 2009 MAT (13.6%).

In October 2008, sales in the Rs 35,000-crore drug retail market had dipped by 1.2%, the

first time in many years, due to consumers shifting to cheaper brands and stockiest facing

a financial crunch. However, retail sales have gradually strengthened and in February, it

rose 13.3%.

ORG IMS tracks the sales figures of stockiest and not the actual sales of drugs sold by

over five lakh chemists across the country. During March, drugs worth Rs 2,908 crore

were sold to stockiest.

Despite the brief slowdown in growth in 2008, ORG projects the Indian pharmaceutical

industry to grow at 15-20% over the next few years. The industry has been growing at

14-15% over the last few years

Due to economic prosperity, a lot more customers are entering organized healthcare,

antibiotics and acute therapies are normally the first line of defence, say analysts.

Rising disposable income, improving health infrastructure such as the government’s

incentives to set up 100-bed hospitals in non-metro towns, and the general increase in


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health awareness due to deep penetration of the electronic media are the corner stones of

sales expansion.

Even though export and overseas trade remains key for most of the domestic companies,

many of them derive nearly 40% of their sales from the desi market.

As far as MNCs in India are concerned most of the sales are generated in urban or semi-

urban areas. However, multinationals like GSK, Sanofi-Aventis, MSD India (Merck) etc.,

have started tapping the rural sector too, of late, realizing their growing potential.

Indian pharmaceutical companies are able to provide FDA approved facilities for the

complete range of services for drug development. R&D services, API sourcing, finished

formulation manufacture and clinical trials can all be completed in India, at less cost than

in many developed markets. The leading Indian pharmaceutical companies are also

beginning to increase market presence and market share in the US and EU markets.

The Indian pharmaceutical market is entering a pivotal period of change. Although it is

unlikely to see significant growth before 2011, it expects extensive company activity as

the leading Indian pharmaceutical companies strive towards international

competitiveness.

Global pharmaceutical companies have already begun to take advantage of the changing

regulatory and economic conditions in India. The following five years will see further

merger and acquisition activity, including key overseas acquisitions.


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COMPETETIVE DYNAMICS

The Indian Pharmaceutical Market to 2011.Traditionally has been characterized by a core

competency in generics manufacturing and relatively immature capabilities in R&D. This

outlook has evolved substantially since the 1990s and Indian companies have been

making investments towards expanding drug discovery and development capabilities.

The acceptance of patent laws and the rise of contract manufacturing have led to the

diversification of revenue streams, enabling Indian pharma companies to experience high

market growth.

The Indian Pharmaceutical Market to 2011 provides a detailed analysis of the leading

players and discusses how they are planning to sustain growth over the next five years.

MNCs have a modest representation among the top 20 companies in the Indian

pharmaceutical industry. As the market leader, GSK captured a 6.3% share, illustrating

the highly fragmented nature of the market.

India has an established domestic industry, responsible for around 8% of world

pharmaceutical production. The larger domestic companies are striving to compete in the

global market for both generics and original products. The market is dominated by low

priced, domestically-produced generics and relatively low per capita expenditure on

pharmaceuticals.

Driven by a huge patient base, increasing incomes, improving healthcare infrastructure

and strong penetration of health insurance, the pharmaceutical market is expected to grow

more than double its size in the next five years.


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ADVANTAGE INDIA

Competent workforce: India possesses a skillful work force with high managerial and technical

competence.

Cost-effective chemical synthesis: The track record for development, particularly in the area of

improved cost-beneficial chemical synthesis for various drug molecules is excellent.

Legal & Financial Framework: India is a democratic country with a solid legal framework and

strong financial markets. There is already an established international industry and business

community

Information & Technology: It has a good network of world-class educational institutions and

established strengths in Information Technology.

Globalization: The country is committed to a free market economy and globalization. Above all,

it has a 70 million middle class market, which is constantly growing.

Consolidation: After many years, the international pharmaceutical industry has discovered great

opportunities in India. The process of consolidation, which has become a popular phenomenon in

the world pharmaceutical industry, has started taking place in the Indian pharmaceutical

industry as well. The Indian pharmaceutical industry which is worth US $ 3.1 billion is

growing at the rate of 14 percent per annum.


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GOVERNMENT SUPPORT

On the regulatory front, govt. is also trying to promote the growth of this industry by providing

tax exemption on all services carried out by the contract research and clinical trials industry. In

the product patent regime, many Indian pharma companies have embarked on R&D activities to

achieve a sustainable long term advantage. These are now adopting innovative funding models to

advance their R&D activities. R&D investment today account for 7-9% of sales for leading

pharma companies.

EXPORT PROMOTION CELL

An export promotion cell in this sector has been incorporated with the objectives of

Boosting pharmaceuticals exports.

Function as a nodal centre.

Promotional activities aiming at accelerating pharma export.

Suggestion for modification in the EXIM policy.

Seminars/workshops on standards, quality control requirements etc.


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PHARMA EXPORT PROMOTION COUNCIL (PHARMEXCIL)

The Pharma Export Promotion Council (Pharmexicl) has been constituted with the objective of:

Facilitation of export of Drugs, pharmaceuticals, Bio-technology products, Herbal

medicines, Diagnostics.

Exports thrusts to various products through workshops, conferences, seminars and

delegates visits.


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SWOT ANALYSIS OF INDIAN PHARMACEUTICAL INDUSTRY

STRENGTHS


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STRENGTHS

Strong marketing & distribution network

Access to pool of highly trained scientist

Well established R&D and

infrastructureDeveloped industry with strong

manufacturing base

Cost competitiveness

Competency in chemistry and process development

WEAKNESS


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Weakness

Low share in world pharmaceutical production.

Low level of biotechnology in India

Inadequate regulatory standards

Low medical & healthcare expenditure.

Lack of linkage between industry and academia

Production of spurious and low quality drugs

OPPURTUNITIES


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OPPURTUNITIES

Significant export potential

Health insurance boom

Growing income Clinical research

India as global outsourcing hub

Contract research

THREATS


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THREATSDrug price control

Threat from low cost drug producing

countries like China.

Strict registration procedure.

High cost of discovering new

products

MESSAGE FROM THE CHAIRMAN

Dr. Anji Reddy (Chairman of Dr. Reddy’s Lab)

The world of healthcare by nature part and parcel of sustainability. Fifteen years ago Dr.Reddy’s

lab was promoting actions in supports of sustainability, with initiatives for employee protection,

against counterfeit drugs and in favor of access to medicines.

Today it may seem commonplace to emphasize the importance of ensuring our products for the

safety for the environment, yet it is a everyday reality for the men and women of Dr.Reddy’s

lab.

Dr. Anji Reddy (Chairman of Dr. Reddy’s Lab): The fact that 80% of the world’s

population still has little or no access to medicines led us to develop a long term strategy. For


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several years, our access to medicines divisions has been carrying out and co-coordinating

initiatives focused on several areas like anti-allergic, skin diseases, anti infective, neurology,

nephrology, cardio-vascular, central nervous system, dental, orthopedic, oncology, respiratory,

Surgery, mental health etc. Thanks to our efforts in R&D and production. We are helping to

provide medicines at prices aligned with local needs. Dr. Reddy’s Foundation was recently

conferred the “Corporate Citizen Award” under ‘The Economic Times’ Corporate Excellence

Awards 2007-2008 by a jury of global business leaders What is significant is that the jury chose

Dr. Reddy’s for this honor over other worthy nominees not only because of our focus on CSR,

but also because our core business philosophy contributes to society at large. Over the years, I have

become more convinced than ever that the corporate sector, with its entrepreneurial and

institution building skills, can play a significant role in developing and scaling up innovative,

workable models that yield measurable results both within and outside of the organization. There

are opportunities for good all around us. The question we must ask ourselves is whether we will

stand on the sidelines or seize the opportunity to have an enduring impact on our world through

our business and beyond it. As we have done in our business, we have similarly harnessed the

power of collaboration in executing social initiatives to derive the maximum impact from each

one. For example, the safe drinking water project that Dr. Reddy’s anchors with the non-profit

organization Nandi, is another example of a sustainable model which is being successfully

replicated in numerous villages covering a population of more than 2 million in the Indian states

of Andhra Pradesh and Punjab. This project has won champions in both the private and public

sectors, giving us good reason to believe that one day we will be able to ensure that all Indians

have access to safe drinking water.

In order for sustainable development to reality, it must be a approach that is understood, thought

out and integrated by all concerned.


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MESSAGE FROM CEO

G.V. PRASAD/ CEO OF DR.REDDY’S LAB

Every day, our Company’s products help to alleviate pain and suffering caused by disease,

directly touching the lives of people around the world. This is not something every company can

say. We at Dr. Reddy’s are inspired daily by the fact that the core purpose of our business

providing affordable and innovative medicines for healthier lives is beneficial to society. We are

uniquely fortunate to be in a position where we can play a significant role in providing

sustainable solutions to the serious medical problems facing humanity.

We evolved from a small, $1 million India-centric company to a $1 billion global pharmaceutical


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player in the relatively short period of 25 years because we paid close attention to the needs and

expectations of our stakeholders. We were often far ahead of the pharmaceutical industry in

India in implementing good practices in areas such as Quality Assurance, Product Responsibility

and R&D and in introducing progressive Safety, Health and Environment management policies

and people policies. In many instances, we were pioneers in the Indian pharmaceutical industry,

with a number of “firsts” to our credit _ from becoming the first to out license an original

molecule to an innovator company to being the first company from India to enter a Global Phase

III trial for our NCE.

Challenges and Opportunities

o Providing Affordable and Innovative Medicines

o Financial Performance

o The Environmental Imperative

o Developing the Leaders of Tomorrow

Every journey if at all worth undertaking, is fraught with twists and turns, surprises and

enormous rewards. Our journey of sustainability has had its share of all of these, and the lessons

we have learned on the way have made us the respected global pharmaceutical player that we are

today. We are proud of the trust and confidence we have inspired in our various stakeholders. It

is this trust that drives our aspirations ever higher and gives fresh impetus and meaning to our

Unwavering pursuit of sustainability.


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MANAGEMENT OF DR.REDDY’S LAB

Mr. Satish Reddy MD & COO Dr. Bruce LA Carter


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http://www.drreddys.com/aboutus/profiles/biography_bruce.htm

Ravi Bhoothalingam Kalpana Morparia

HISTORY OF DR.REDDY’S LAB

Dr. Reddy’s Laboratories (Dr. Reddy’s), incorporated in 1984

Founder- Dr. K. Anji Reddy

Headquarter- Hyderabad, India

Dr. Reddy’s Laboratories Limited (Dr. Reddy’s) was established in 1984, manufacturing

ingredients for medicines. The Company was incorporated under the laws of Indian Companies

Act, 1956 as a Public Limited Liability Company.

At a time when India was largely dependent on imports, Company began operations with a

single drug facility near Hyderabad, India. In 1986, the first consignment of Methyldopa was

shipped to West Germany, launching the Company’s foray into global markets. Subsequently,

Dr. Reddy’s moved up the value chain, by entering the Finished Dosage business and launching

its drug discovery program.

Over the years, related diversification and acquisitions transformed Dr. Reddy’s into a leading

pharmaceutical company from India. Company’s stated purpose is to provide affordable and

Innovative medicines for healthier lives.


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Dr. Reddy’s today is divided into three core businesses of Pharmaceutical Services & Active

Ingredients (PSAI), Generics and Innovative Products. Businesses of company have a dual

impact.

Through PSAI and Generics business,they strive to make medicines more affordable globally

and through their focus on Innovative products they address unmet or poorly met medical needs.

COMPANY

It is India’s second-largest pharmaceutical company. It is the first Asian company other than

Japan to be listed in New York Stock exchange. It produces and sells Active Pharmaceutical

Ingredients (API), Finished Dosages and Biologics. It manufactures ulcer medicines, antibiotics,

pain relievers, anti depressants and cardiovascular drugs. The company carries out research and

development (R&D) in diabetes, cancer, cardiovascular diseases, and inflammation and bacterial

infections. It also has a significant presence in the biotech sector.

PEOPLE

10000 + Employees

2000 + At International Locations

3300 + Marketing & Sales force

3300 + manufacturing staff

1700 + Research & Scientific personnel

DRUGS & THERAPEUTIC AREAS

Focus on mainly;

Cardiovascular diseases Oncology Central nervous system Metabolic disorders Dermatology


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Anti-invectives Inflammation Respiratory Nephrology Neurology Surgery

Metabolic

AFFILATIONS

Drugs Technical Advisory Board (DTAB)

Indian Institute of Public Health

The Energy Research Institute (TERI) – Business Council for Sustainable

Development (BCSD) in India – Indian regional network partner of WBCSD

Confederation of Indian Industry (CII)

Indian Pharmaceutical Alliance (IPA)

The Conference Board

Sustain Ability, UK

World Wide Fund, India

Acumen Fund

Young Presidents Organizations forum..


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GLOBAL PRESENCE

Global commercialization infrastructure with focus on US, Europe, India, and Russia.

Manufacturing locations in India, UK, US, China and Mexico

Research and development locations in India and the US

Wholly-owned subsidiaries in the US, UK, Russia, Germany, Brazil, New Zealand,

. Turkey and Mexico.

Joint Ventures in China, South Africa and Australia

Representative Offices in 16 countries.

Third party distribution setups in 23 countries

79% of the company's revenues in FY08 came from geographies outside India.

VALUES

Focus on strong, sustainable and profitable growth, and company values –Solidarity,

Performance, Audacity, Respect, Courage and Creativity-are at the core of success: living those

values on a daily basis is the key to future.

COMPANY LOGO

Logo consists of a person standing with both of its arms open. There are three terms written

below the logo- Life, Research and Hope. These terms explains the enthusiasm, innovation and

positive thoughts.


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SWOT ANALYSIS OF DR.REDDY’S LAB


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CHAPTER-2

RESEARCH AND METHODOLOGY

Rationale of the study:-

The major purpose of taking up such a study was to analyze the presence of the dermatology

products of Dr Reddy’s Lab in the South Delhi market and to asses the market share of these

products by interviewing 300 chemists of the area. This not only helped to get a clear picture of


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WEAKNESSHigh amount of revenues from overseas Lack of resources similar to US and Europe based competitors to develop a drug to marketing stage.Smallest portion of revenues from generics at around 20%.Lack of patent legislation in India harms sales of its products

OPPURTINITIESTake a molecule from its pipeline all the way to the market place cost-effectively marketBuy back of the integrated drug development company from ICICI Ventures and CitigroupDomestic Generic drugs marketIn another 4-6 years, many product patents obtained after the 2004 legislation will go off providing an opportunity to the company increase its domestic footprint in Generics

THREATSNeeds to gain FDA approval for all sources and productsProducts have to pass strict FDA trials before going to market, which can be costly and time consumingThis may delay the company entry to particular markets which affects revenueCompetition from US and European CompaniesReddy’s lost the case against Pfizer for the use of generic form of Norvasc drug.

S W O T

the market share of these products but also would help in market creation for its new products.

The study helped to dig out the tough competition that Dr Reddy’s Derma products face in actual

market conditions thereby giving a view of the prevailing market trends in South Delhi.

Objectives of the study:-

1. To study the sales of Mintop in hair loss segment and Nexret in anti-acne segment in

South Delhi and to asses its market share.

2. To study the most preferred brands in the segments of hair loss, anti acne and sunscreen.

3. To study the sunscreen segment closely and examine the present availability of newly

launched sunscreen products of Dr Reddy’s namely Clearz-ultra and Shadowz.

4. Mapping the potential of the market in dermatology segment.

The study was conducted from 2nd May 2010 to 20th June 2010. The study is basically an

assessment study as well as a bit of exploratory. The data is collected through a pretested

questionnaire by personally interviewing 300 Chemists of South Delhi. The data was collected

both by Primary as well as secondary sources. The primary data was collected from market areas

of South Delhi. It helped to get most vital information for market analysis of derma products in

the segments of hair loss, Anti acne and to asses the availability of new launched products of the

organization.

The sampling is primarily purposive convenient sampling. During the interview the attitude of

the Chemists towards Dr Reddy’s products were also closely examined.

Sales data of Hair loss, Anti Acne and sunscreen of Dr.Reddy’s Lab and its competitor products

are collected on the basis of TOTAL SALES PER MONTH. Collected data has been analyzed

on Microsoft Excel and the key findings are mentioned in the further part of the report.

CHAPTER-3

ORGANIZATIONAL AND STUDY AREA PROFILE

This research study was conducted at Dr Reddy’s Lab located in Narayana, New Delhi. Dr.

Reddy’s Laboratories Limited (Dr. Reddy’s) was established in 1984, manufacturing ingredients


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for medicines. The founder member of the Organization is Dr K.Anji Reddy. It has it’s

Headquarter at Hyderabad, India. The Company was incorporated under the laws of Indian

Companies Act, 1956 as a Public Limited Liability Company.

At a time when India was largely dependent on imports, Company began operations with a single

drug facility near Hyderabad, India. In 1986, the first consignment of Methyldopa was shipped to

West Germany, launching the Company’s foray into global markets. Subsequently, Dr. Reddy’s

moved up the value chain, by entering the Finished Dosage business and launching its drug

discovery program. Over the years, related diversification and acquisitions transformed Dr.

Reddy’s into a leading pharmaceutical company from India. Dr. Reddy’s today is divided into

three core businesses of Pharmaceutical Services & Active Ingredients (PSAI), Generics and

Innovative Products. Businesses of company have a dual impact. Through PSAI and Generics

business, they strive to make medicines more affordable globally and through their focus on

Innovative products they address unmet or poorly met medical needs.

It is India’s second-largest pharmaceutical company. It is the first Asian company other than

Japan to be listed in New York Stock exchange. It produces and sells Active Pharmaceutical

Ingredients (API), Finished Dosages and Biologics. It manufactures ulcer medicines, antibiotics,

pain relievers, anti depressants and cardiovascular drugs. The company carries out research and

development (R&D) in diabetes, cancer, cardiovascular diseases, and inflammation and bacterial

infections. It also has a significant presence in the biotech sector.

The Organization drugs and therapeutic areas focus mainly on Cardio-vascular diseases,

Oncology, Central nervous system, Metabolic disorders, Dermatology, Anti-invectives,

Inflammation, Respiratory, Nephrology, Neurology, Surgery and Metabolic


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The ethics of the organization is to focus on strong, sustainable and profitable growth, and

company values –Solidarity, Performance, Audacity, Respect, Courage and Creativity-are at

the core of success: living those values on a daily basis is the key to future.

Dr. Reddy’s commitments to the 3R’s principle

REDUCTION

Optimize research strategies in order to eliminate unnecessary experiments and ensure

that approaches are scientifically sound.

Obtain as information as possible from each experiment.

Animals are only where there is the firm expectation that the result will contribute to

protection and improvement of human health and safety.

Choose appropriate animals: 95% of the animals used by the group are rodents.

Each protocol is reviewed by an internal Ethics Committee.

Reduce where possible the use of Non-Human Primates.

As required by national law, all animal use is recorded and reported to competent

authorities. For each study or project the no. of animals is reviewed by ethics committee

and the least no. of animals is used to obtain the scientific or regulatory objective.

Biostaticians review all experimental protocols. These data are provided only to relevant

national authorities.

REPLACEMENT

Animals are only used when valid alternative methods do not exist. The justification of

any animal use is reviewed by an internal ethics committee.

Systematic use and the contribution to the development of in vitro systems: Tissue cell

cultures, High throughput screening (HTS) in vitro dosing.

Replacement of higher evolutionary with lower order species.


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REFINEMENT

Each experimental protocol must be approved by an Ethics Committee that evaluates the

scientific justification for the study, the appropriateness of the techniques employed and/or the

animals used as well as taking into account the pain the animal may experience. Dr. Reddy’s lab

places particular attention on ensuring that pain is define and monitored for each case.

The ethics committee is also in charge of defining and accessing the study’s endpoint so

that it is acceptable as humane as possible. In addition, all animals are under the care of

veterinarian.

COMPANY LOGO

Logo consists of a person standing with both of its arms open. There are three terms written

below the logo- Life, Research and Hope. These terms explains the enthusiasm, innovation and

positive thoughts.


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The Affiliations of the Organization includes

Drugs Technical Advisory Board (DTAB)

Indian Institute of Public Health

The Energy Research Institute (TERI) – Business Council for Sustainable

Development (BCSD) in India – Indian regional network partner of WBCSD

Confederation of Indian Industry (CII)

Indian Pharmaceutical Alliance (IPA)

The Conference Board

Sustain Ability, UK

World Wide Fund, India

Acumen Fund

Young Presidents Organizations forum.

It has global presence through Global commercialization infrastructure with focus on US,

Europe, India, and Russia, manufacturing locations in India, UK, US, China and Mexico,

research and development locations in India and the US, wholly-owned subsidiaries in the US,

UK, Russia, Germany, Brazil, New Zealand, Turkey and Mexico, joint ventures in China, South

Africa and Australia, representative Offices in 16 countries, third party distribution setups in 23

countries and 79% of the company’s revenues in FY08 came from geographies outside India.


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STUDY AREA PROFILE:-

The Study was conducted in Delhi, which is the Capital of India and the third largest city in

India,

lies at

an

altitude

of

between

700 and

1,000 feet (213 and 305 meters) and covers an area of 1,485 square kilometers. Situated on the

Yamuna River (a tributary of the Ganges River) Delhi is bordered on the east by the state of

Uttar Pradesh and on the north, west, and south by Haryana.

South Delhi, where the study is conducted include areas like Chiraag Delhi, Yusuf Saray,

Lajpatnagar, Saket, Hauz Rani, Malviya Nagar, New Friend Colony, Safdarjung, Hauz Khas,

Mehrauli, Sarai Jullena, Lodhi Road, South Extension-2, Kotla, Jungpura, Maharani Bagh,

Okhla, Vasant Vihar, Kalkaji, Defence Colony, Greater Kailash, Munarika, Taimor Nagar,

Vasant Enclave, Khanna Market, Khan Market, Mahipalpur and Ranjpura Road.


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State Capital Delhi

Population (‘000s in 2001) 1,38,50,507

Area ( sq. km) 1483

Males Females

76, 0723462, 43273

Literacy rate (2001) 81.82%

Principal Languages Hindi & English

Chapter 4


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Finding and Analysis

Analysis of Anti acne products in Dermatology Segment

0--5 5--10 10--15 15--20 20--250

20

40

60

80

100

120

NexretRatino ARatino ACSupertret

Sales figure of Nexret in comparison to other brands

The data was gathered by interviewing the Chemists.

The Red line represents that of sales of Nexret that are dropping down.


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This depicts several other things like less popularity as well as less

demand of Nexret.

It may be because stronger marketing skills have to be required to

increase its sales force effectiveness.

Nexret is not the most preferred product for Anti acne in the market.

On examining minutely, it is observed that though Nexret sales

performance is good where 90 chemists report that they sell around 0-5

bottles of Nexret in a month, however in the next category comprising of

sale of 5-10 bottles.

Ratino captures the market with higher sales.


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Approximate sales of Anti Acne Product

Nexret Ratino-A Ratino-AC Supertret0

200400600800

10001200140016001800

430

1763

893

270

The market covered by Nexret is approximately 11.15% of whole

market.

It is approximately 430 out of 3856.

Ratino A & Ratino AC are the main competitor of Dr. reddy in Anti

Acne segment.

Ratino A is covered almost 50% of Anti Acne market.


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48.2551.74

Execare

Available

Not Available

Availability of Dr Reddy’s new Anti-acne product (Exe-care)

To diversify his product Dr. Reddy’s Lab Introduce Execare.

The availability of Execare in South Delhi market is approximately

48.25%.

Compony has to give some value added service to promote Execare.


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Mintop Hair for you

Tugain Coverit Minoxy0

10

20

30

40

50

60

70

80

6257

7164

7777

20

28

16

2626

13

5 4 7

18

1 1 15

0--55--1010--1515--2020--25

Analysis of Hair loss Product in Dermatology Segment

Mintop is the most preferred brand for preventing hair loss among the chemists of South Delhi

The Market Share of Mintop is very high in comparison to other competitors in hair loss segment.


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Mintop which is the organizational product holds a handsome position in the market in comparison to other hair loss preventing products.

MIntop Capture more then 65%% of total Market.

One of the interesting finding was that during winter the sale of Tugain

increases invariably, however there is no specific reason found out for

such a finding.

Except seeling of 0-5 bottle per month MIntop leads to all other segment .

Huge demand of Mintop is there.

MIntop not only prescribe by the doctors, it is in use also because of Suggestions, Recommendation by friend.

Mintop 10% have leading market.

The main competitors are coverit and Minoxy.


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Mintop Hair For you

Tugain Coverit Minoxy0

200

400

600

800

1000

1200

1400

1600 1485

472.5 467.5347.5

475

Approx sales

Approx sales

The graph represents the monthly sales of Maintop, quantity wise in

comparison to other hair loss products available in South Delhi

The approximately sale of Mintop is 1485 out of 3248, Which is 45.5%

of total market.


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According to a survey Mintop has covered more over 65% of total

market.

Mintop is leading brand in there own

Segment.

Mintop Prescription not only

Comes from the doctor’s,

Coverit and Minoxy are also

trying to make their own

market in hair loss segment .

They covered approximatly

30% of over all market. AREA COVERAGE BY MINTOP

Nexret is Dr. Reddy’s lab

Product which covered

Approximately 10% 0f over all

market.

The main competitors are

Ratino A & Ratino Ac.

90% area covered by other big

Players in this Anti Acne market.


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65.95

34.04 MintopOther products

9.92

90.07

Nexret

Other products

0--5 5--10 10--15 15--20 20--250

10

20

30

40

50

60

70

80

90

71

90

18

72

Suncross

Sungrace

Photoban

Graph depicting monthly sales of Sun screen products in South Delhi

The Graph above not only shows the sale volume of the various sunscreen

brands in the market but also depict that these brands have not only

penetrated in the market but also established themselves especially Sun cross


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In such a competitive market scenario the newly launched sunscreen of Dr

Reddy’s have to be launched with best marketing advocacy to not only

capture sales volume but also expand their presence in the market.

The graph below more lucidly represents the sales of Suncross, Sungrace and

Photo ban

Suncross Sungrace Photoban0

200

400

600

800

1000

1200

14001245

385 355

Approx sales


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Graph representing the sunscreen product having maximum sales also the

most preferred brand by the Chemists

It is well known that the sunscreen segment is a potential as well as crucial segment

in the dermatology section for any pharmaceutical company because it is not that

people use medicated sunscreen only when they are prescribed by a clinician but

sometimes also use because of its effectiveness or when they come any of the

promotional activities like advertisement.

To cater the sunscreen market Dr.Reddys Lab launched product named Shadowz.

To capture this market company need to provide some value added service to the

customer.

The big player of this segment like Sunscreen covered approximately 60% of whole

market.

Sunscreen sales in a month are very high with 1245 out of 1985.

The availability of Shadowz in the market is very less.

It’s Approximately 19% in South Delhi market.


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18.40

81.59

Shadowz

Avaiable

Not Available

Availability of Dr Reddy’s newly launched products in the sunscreen sectio

RECOMMENDATIONS

Some Research Recommendations for the Organization:-

1. Strong marketing advocacy of its products among Doctors and maintaining good

relations with Chemists by adopting measures to increase their revenue from the products

so that they provide an initial push to the products.

2. More focus on promotional strategies especially for the newly launched products like

advertisement on TV, Radio, print media or mobile advertisement or even by developing

CDs or other tools like proper inserts with the product to enumerate its benefits.

3. Concentrated effort has to be made to focus on the entire distribution channel all over

Delhi.

4. A good and effective team of Medical Representative should be involved to advocate the

products among the Doctors.


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5. Product should be promoted by the help of film shows from which doctors are influenced

significantly.

6. Creating the brand awareness through corporate social responsibility among the consumers.

7. Developing customer relationship management efficiently through.

Analyzing customer revenue & cost data to identify current & future high value customer.

Targeting direct marketing efforts. Creating new distribution channel. Managing logistics & the supply chain more efficiently. Deploying knowledge management system. Tracking customer defection & retention levels. Tracking customer service satisfaction levels by conducting surveys and research

or taking feedback from time to time. Employing proper monitoring and evaluation tools to track customer satisfaction.

At the broader level or at the planning level the company should shift focus from market

share capture to market creation. That means the untapped potential should be focused

more. The organization should also try to adopt new and differentiated business models

because with the ongoing changes in the market opportunities and competitive scenario a

homogeneous business model cannot be replicated everywhere. The Company should also

make efforts to strengthen sales and marketing capabilities like new product development,

proper marketing management and increasing sales force effectiveness.


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CHAPTER-6

LIMITATIONS & CONCLUSION

People lacked information regarding the existence of the some players in the

dermatology sector so this has caused non-availability of information in some cases.

Some people were hesitant to disclose the information.

Most of the people show their rigid mindset.

Some chemists were non-cooperative, which led to great problem for me to collect

data.


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Some chemists were very busy due to which they did not entertained me, this led to

wastage of time.

Some chemists were not interested to provide their sales data.

The Indian Pharmacy industry has immense potential. If the pharmacy companies put

concentrated efforts they can maximize their efforts. The Dermatology sector has itself the power

to transform and grow in future and it can be a sector in which the Organization can bank upon.

BIBLIOGRAPHY

BOOKS

Marketing management by Philip Kilter.

Marketing research by David.J.luck and Ronald S. Rubin.

Strategic marketing management by Wilson Gillian.

MAGZINES & NEWSPAPERS


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Business today

Economic times

WEB SITES

www.dr.reddys.com

www.google.com

www.dbresearch.com

www.pharmabiz.com

www.businessmoniter.com

www.business20.com

ANNEXURE

Chemist Name -

Contact person -

Contact No. -

Area –

Segments Brands Quantity sold in a weak

Doctor’s Name

Hair loss Mintop ,M. forte ,M. 10


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http://www.google.com/

http://www.dr.reddys.com/

Hair 4 you

Tuegain{foam, gel}

Coverit

Minoxy

Sunscreen Suncross

Sungrace

Photoban

Others

Anti-acne Nexret {0.04% & 0.1%}

Ratino-A

Ratino-AC

Supatret {0.04% & 0.1%}

New Products

Product Availability

Execare

Shadowz

Clearz Ultra

Any Comments:--


2009-11


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35286540 dr redddy s lab product analysis in urban market delhi

Documents

york stock

post graduate

acquisitions

party distribution

poorly met

indian pharmaceutical

single drug

central nervous