group 3- project on pharma

8/6/2019 Group 3- Project on Pharma

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MARKETINGMARKETING

MANAGEMENTMANAGEMENTPHARMACEUTICAL INDUSTRY


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GROUPGROUP--33Members Roll No.

Rucha Kapdi M1018

Shallot Paul M1047

Vineeta Raju M1059

Pierre Britto M1003

Saurabh Korgaonkar M1022

Ankush Rasam M1040


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y The Indian Pharmaceutical Industryy Factors influencing growth of pharmaceutical market in Indiay Key playersy Hetero Healthcare Ltd.y

Products of Heteroy About Hifeny Compositiony Laws and regulations governing Indian Pharmaceuticalsy Regulatory Bodiesy 5 Ps

y Segmentationy Competitiony Feedback

SYNOPSISSYNOPSIS


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y The Indian pharmaceutical industry came intoexistence in 1901

y Bengal Chemical and Pharmaceutical companystarted its maiden operation in Calcutta

y

Currently, there are more than 2,400 registeredpharmaceutical producers in India

Indian Pharmaceutical IndustryIndian Pharmaceutical Industry


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Indian Pharmaceutical IndustryIndian Pharmaceutical Industry

y Highly competitive within the country

y Low priced industry

y Contributes about 8% to the world

pharmaceutical production

y Export oriented

y Well established domestic pharma industry

y Increased awareness among the people leading

to growth of the industry


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Factors influencing the growth ofFactors influencing the growth of

pharmaceutical market in Indiapharmaceutical market in India

y The growing population of over a billion

y A huge patient base

y Increasing incomes

y Improving healthcare infrastructure

y An increase in lifestyle-related diseases such asdiabetes, cardiovascular diseases and centralnervous system

y Penetration of health insurance


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Challenges faced in marketing ofChallenges faced in marketing of

pharmaceutical productpharmaceutical producty Increased competition and shortened window of

opportunity

y Varying customer perception

y The number and the quality of medicalrepresentatives

y High training and re-training costs of sales

personnel

y Busy doctors giving less time for sales calls


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y Ranbaxy Laboratories Ltd.

y Dr. Reddys Laboratories

y Cipla

y

Glaxo Smithkline (GSK)

Key PlayersKey Players


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y Established in 1993

y It is a Hyderabad based company

y Hetero Drugs handles the manufacturing and Hetero

Healthcare looks after the sales and marketing

y At present it is ranked within first 50 companies inIndia

y It is a research based global pharmaceutical company

focused on:Development , manufacturing and marketing of Active

Pharmaceutical Ingredients (APIs) Intermediate Chemicals & Finished Dosages.

Hetero Ltd.Hetero Ltd.


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Hetero Ltd.Hetero Ltd.

y Has the widest customer coverage networkthroughout the nation

y

Hetero was at first involved in manufacture ofbulk drugs and later stepped into formulation ofdrugs

y Hetero is considered as one of the fastest

growing pharmaceutical company with a growthrate of around 80%


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Products ofH

eteroProducts ofH

eteroy Hifen

y Enuff

y Cetraben

y Levocet

y Fluvir

y MPX-CV

y

Lanol ERy Lornoxi


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y Launched in 2006

y Name evolved from the term high fever

y Consumed to cure infections

y Best selling product of Hetero Ltd.

AboutAbout HifenHifen


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AboutAbout HifenHifen((contdcontd))

y Contributes to a turnover of over 50 Croreswithin 3 years

y It is currently in maturity stage of its life cycle

y It is ranked at No.3 amongst its competitors

y Prescription of physician is required to purchaseit from the retailer


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y The basic molecule is Cifixime

y Hetero is the bulk manufacture of Cifixime

y It is available in tablet, dry syrup as well as inthe form of drops

y Available in 50,100,200 to 400mg in tablets and30ml or 50 ml in dry syrup and 10 ml in the formof drops

CompositionComposition


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Laws and Regulations governingLaws and Regulations governing

Indian PharmaceuticalsIndian Pharmaceuticalsy The Drugs and Cosmetics Act, 1940

y The Pharmacy Act, 1948

y The Drugs and Magic Remedies Act, 1954

y The Narcotic Drugs and Psychotropic Substances

Act, 1985

y The Medicinal and toilet preparations Act, 1956


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Regulatory BodiesRegulatory Bodies

y The Ministry of Health & Family Welfare (MoHFW)

y Ministry of Chemicals and Fertilisers (MoC&F)

y They play a major role in regulating thepharmaceutical sector in India

y There are two major government agencies

responsible for drug regulation and control :1) Drugs Controller of India (DCI)

2) State Food and Drug Administrations (FDAs)


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Drugs Controller of India(DCI)Drugs Controller of India(DCI)

y The DCI, under the Ministry of Health, has fivemain functions:

1) Controlling the quality of imported drugs

2) Coordinating the activities of State FDAs3) Enforcing new drug legislation

4) Granting approval to new drugs

5) Controlling the quality of imported drugs


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State food and drugs administrationState food and drugs administration

(FD

A)(FD

A)y State FDAs, monitor the drug manufacture, sale,

and testing by companies in their jurisdiction

y It monitors drug quality and safety through pre

and post-licensing checks, as well as throughperiodic inspections and drawing drug samplesfrom companies from time to time

y There are currently 50,000 drugs all licensed by

the FDA


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y Product

y Price

y Placey Promotion

y Packaging

5 Ps5 Ps


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ProductProduct

y Hifen contains Cefixime as the basic molecule

y Cefixime is an antibiotic which is used to treat

respiratory tract infections, urinary tractinfections, typhoid etc.

y As per the composition of Cifixime, Hifen isclassified as Hifen 50,100,200 and 400

tablets,Hifen 50,100 Dry syrup,Hifen CV (Hifen+ Clavunic acid),Hifen Drops


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Product(Product(contdcontd))

y Tablets are dispersible to assimilate faster in thebody

y

Hetero being the bulk manufacture of Cifixime, ittherefore offers best quality antibiotic

y Available at all retail counters

y Most economical brand

y Usually cures the patient in 3-4 days


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PricePrice

Product Size MRP(Rs) Age Group

Hifen 200 DT 10 tablets 79 Adult

Hifen 100 DT 10 tablets 45 Adult

Hifen 50 DT 10 tablets 25 Child(6-12yrs)

Hifen 50 DS 30ml 29 Child(6-12yrs)

Hifen 100 DS 30ml 47 Child(6-12yrs)

Hifen CV 200 10 tablets 169 Adult

Hifen CV 100 DT 10 tablets 99 Adult

Hifen Drops 10ml 39 Infants(0-5 yrs)

Hifen 400 10 tablets 158 Adult


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Factors affecting price decisionsFactors affecting price decisions

y Costs of raw material is low,as Heteroitself is a bulk manufacture of Cifixime

y

MRP is low as compared to other brandsin the market

y Price varies according to the compositionof Cifixime present

y VAT of 4% is applicable


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Factors affecting priceFactors affecting pricedecisions(decisions(contdcontd))

y Major competitors of Hifen are FDCs Zifi and AlkemsTaxim-O

y Zifi is priced at Rs.99 while Taxim-O is priced atRs.200 per strip of 10 tablets

y Even if the unit sales of Taxim-O is less than Hifen,the revenue of Taxim-O is higher than Hifen making itthe No.2 product

y

During Rainfall there is rise in demand for theproduct, but this has no effect on the pricing of theproduct.


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Price ControlPrice Control

y Price controls are implemented under a Drug PriceControl Orders (DPCO)

y In 1995, the DPCO was revised twice, once onJanuary 6th and again on July 19th to coordinate theprice descriptions of controlled and decontrolled

formulations

y To improve its efforts at drug price control, thegovernment set up the National PharmaceuticalPricing Authority (NPPA) in August 1997

y The NPPA was authorized to fix and revise prices ofcontrolled bulk drugs and monitor the prices ofdecontrolled drugs and formulations


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Company Depot Stockists Retailer

PlacePlace

Company CFA Stockists Retailer


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Field ChannelsField Channels

y

It takes minimum one day for the product toreach to the stockists after placing the order

y The product from stockists reaches the retaileron the same day after the order is placed

y Margin of CFAs is 2-3% and stockists have amargin of 10% on MRP

y The retailers have a margin of 20% on MRP

y The stockists submit a sales report to thecompany every month


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y Sample support

y Detailing of doctors

To create and arouse interest in thedoctors mind regarding products, thusinfluencing his prescribing habits. Also toemphasize the advantage/benefits and

salient features of product.

PromotionPromotion


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y Packaging of Hifen is done in a standardmanner

y Silver aluminum foil is used for packingthe product

y The label and pack insert must beapproved by DCI before the drug is

marketed

PackagingPackaging


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Labeling of PacketLabeling of Packet

y Every product is labeled with the followinginformation :

o Name of the drugo A correct statement of the net content of the drugo Content of active ingredientso Name and address of the manufacturero Batch or lot numbero Manufacturing license number (if applicable)o Number of the license under which the drug is

imported (if applicable)o Date of manufacture and expiration date, which must

not exceed 60 months


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y Marketed all over India

y Available for all age groups

y Marketing is done indirectly

y

Mostly general practitioners are targeted

SegmentationSegmentation


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y Approximately 60 competitor brands existedwhen Hetero had launched Hifen in the market inthe year 2006

y More than 90% of the companies take raw

material(Cifixime) from Hetero

y This gave Hetero an advantage in pricing andmade it the most economical brand

y A wide customer coverage network along withimplementation of strategies & best inputsresulted in the success of Hifen

CompetitionCompetition


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FeedbackFeedback

y It is the most essential part of marketing and sales ofany product

y In Hetero as well as in other pharma industries

feedback is taken through Retail Chemist PrescriptionAudit(RCPA)

y It is conducted to have the knowledge of the unitsales of the product as well as competitors product &to know the customer preference

y Maintaining a core customer list and meeting themtwice in a month


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THANKYOUTHANKYOUTHANKYOUTHANKYOU

group 3- project on pharma

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