project report of dr. reddy's

PROJECT REPORT

Market Analysis of Doxophylline, Gemifloxacin and

Deflazacort in Jaipur

atDr. Reddy Laboratories Ltd.

A R E P O R T S U B M I T T E D I N F U L F I L L M E N T O F T H E R E Q U I R E M E N T S O F P G D M P R O G R A M O F A C C M A N I N S T I T U T E O F M A N A G E M E N T , G R E A T E R N O I D A

Submitted to: Submitted by:

Area Sales Manager Roopesh Kumar SainDr. Reddy’s Lab. Ltd. PGDMJaipur

Declaration

Batch: - 2008-10

CERTIFICATE

This is to certify that the project work done on “Market Analysis of

Doxophylline,Gemifloxacine and Deflazacort in Jaipur” submitted to Mr. Nandan

Singh (Area Sales Manager) is in partial fulfillment of the requirement for the award of

Post Graduate Diploma in Management, is a bonafide work carried out by me at Dr.

Reddy’s Laboratories Ltd.

DATE: 11/July/2009 Roopesh Kumar Sain

Roll No. 44

PREFACE

“The Companies that best satisfy their customer will be the winners. It is the special

responsibility of marketers to understand the need and wants of the market place and to

help their companies not merely looking for sales they are investing in long term,

mutually satisfying customer relationships based on delivery quality, service and value.”

Philip Kotlar

Summer Training is a necessary part for fulfillment of PGDM course. The Summer

Training has given a chance to try and apply the academic knowledge into the Business

Environment and gain insight of Corporate Culture.

I undertook my training at Dr. Reddy’s Laboratories Ltd., a top ranking and listed

organization in the pharmaceutical industry. According to industry specialists,”Dr. Reddy

has the art of reverse engineering of the production process and made it highly cost-

efficient.” With the help of effective marketing strategies DRL not only successfully

establishes products in the market but also cover a good market share and earn a good

amount of profit.

1ACCMAN INSTITUTE OF MANAGEMENT

Greater Noida

ACKNOWLEDGEMENT

It was a beatifying experience to be attached to such a reputed organization, which is a

pharmaceutical company and known for its aggressive adopting and marketing strategies

in India. I express my deep sense of gratitude to Dr. Reddy’s Laboratories Ltd. for

providing me an opportunity to complete my summer training project.

I would like to thank Mr. Nandan Singh (Area Manager) and his team for their

constant support and providing the itinerary at all stages of the project.

I also offer my sincere gratitude to Prof. Rajeev Kumar, Director and Prof.

S.C.Ghosh,Chief CRIC of Accman Institute of Management for his useful

suggestions, help and support.

With regards, Roopesh Kumar Sain PGDM (2008-2010)


Greater Noida

S.No. Contents Page No.1 Executive Summary 52 Introduction 73 Objective 114 About Dr. Reddy’s Lab. Ltd.

a) History of companyb) Board & Managementc) Infrastructure

12

5 Pharmaceutical Industry 176 Heriarchy of marketing department 267 Molecule Introduction

a) Gemifloxacinb) Deflazacortc) Doxophylline

27

8 Managing sales force 309 Product positioning 3110 Competitor analysis 3211 SWOT analysis 3512 Field work 3713 Market surfing 3914 Research & methodology 4315 Data analysis 4516 Finding 5517 Recommendation 5618 Conclusion 5819 Bibliography 5920 Questionnaire 60


Greater Noida


Greater Noida

http://www.drreddys-cps.com/API.html

http://www.drreddys-cps.com/Dosage.html

http://www.drreddys-cps.com/High%20Containment.html

http://www.drreddys-cps.com/Chirotech.html

http://www.drreddys-cps.com/Activated%20PEGs.html

http://www.drreddys-cps.com/Steroid.html

EXECUTIVE SUMMARY

This project was undertaken for a period of eight weeks at Dr. Reddy’s Laboratories Ltd.

for the partial fulfillment of the PGDM (Post Graduate Diploma in Management) course

from Accmam Institute of Management, Greater Noida. The objective of the project was

to evaluate the present market share of DRL, deal with retailers to lure more customers and

to ultimately increase its market share. To complete this project, a survey was conducted on

retailers with the help of questionnaire in the Jaipur. The sample size was decided by Mr.

Nandan Singh, which were 42 retailers. All the retailers selected in the sample had all three

products of DRL (Doxobid, Gem One, and Asteroid). After the survey, it was observed that

sale of all three drugs is good and the same would directly have an impact on the market

share of the company. In SMS Hospital region, a lot of marketing strategies had been

already applied by the company. Among these strategies, strategy for Asteroid was an

absolutely new concept and it had an innovative way to attract more & more retailers.

The basic purpose of these strategies is to enhance the demand of products by temporarily

increasing their value to the purchaser. A major area of improvement that the company

should look at is retailer awareness about retailer centric schemes. The same came to light

during the survey, wherein it was observed that most of the retailers do not have proper

information even about retailer centric schemes being offered by the company. The MR of

the company is doing his job with good result; they are well equipped with product scientific

knowledge. They should be properly equipped by complete knowledge of the products so

that they can give proper knowledge to the retailers. The company should be more liberal in


Greater Noida

giving the little bit knowledge to retailer about the products so that they can sale company’s

products.


Greater Noida

INTRODUCTION

India’s second largest pharmaceutical company by revenue, Dr Reddy’s Laboratories Ltd

(DRL) .The Company consists of Active Pharmaceutical Ingredient Business (API),

Custom Pharma Services (CPS), Generics, Generics Biopharmaceuticals,

Differentiated Formulation, New Chemical Entities (NCEs).

API include Ciprofloxacin, Omeprazole and Sumatriptan Succinate of Canadian DMFs, Ibuprofen, Ranitidine HCl form 1 and Cipro HCl of CEP and Omeprazole,S+Ibuprofen and Valsartan, Ramipril, Risedronate Sodium and Nizatidin of US DMFs. Its CPS is, the


Greater Noida

GenericsGenerics Bio-Pharmaceutica

ls

Differentiated Formulation

NCEs

API

CPS

Dr. Reddy’s

Business

largest CPS player from India and a partner-of-choice to innovators, offering top-end technical expertise, tailor-made pharma solutions and a track record of bringing innovations to the market quickly, efficiently and economically. Generic business of company is always a challenge for other pharma companies. It includes branded generics and unbranded generics. In the branded generics include Omez, Ciprolet, Nise, Enam, Ketorol, Exifine and Cetrine enjoy leadership positions in several key markets, including India, Romania, Venezuela, Russia & the CIS countries. Dr. Reddy’s brands are available in nearly 100 countries and generate revenue is more than Rs.69.4 billion.

Some of DRL's brand names are old as its age, but the corporation is relatively young.

DRL was founded in 1984 by a simple man Dr. Anji Reddy. Betapharm (Germany) was

acquired in 2006 (which is the fourth largest generic producer in Germany), with the help

of this company.DRL is able to covered a large market share in the generic section in the

global market.

DRL offers product choices to meet a broad variety of needs and preference - from fun-

for-you items to product choices that contribute to healthier lifestyles.

DRL’s aim is “To provide affordable and innovative medicines for healthier lives. We

serve society’s important needs for affordable medicines through the API component of

PSAI and the Global Generics business, and for innovative products that solve unmet

medical needs through the CPS component of PSAI and the Proprietary Products

Businesses.”

Shareholders

DRL (symbol: RDY) shares are traded principally on the New York Stock Exchange in

the United States. The company is also listed on the NSE (symbol: DRREDDY) and BSE

stock exchanges. DRL has consistently paid cash dividends since the corporation was

founded. Following table show the complete history of dividend:

8

ACCMAN INSTITUTE OF MANAGEMENTGreater Noida

DIVIDEND HISTORY

Year ended Interim % Final % Total %

2000 - 01 - 40 40

2001 - 02 100 50 150

2002 - 03 - 100 100

2003 - 04 - 100 100

2004 - 05 - 100 100

2005 - 06 - 100 100

2006 - 07 - 75 75

2007 - 08 - 75 75

Corporate Citizenship

DRL, as a corporate citizen, have a responsibility to contribute to the quality of life in the

communities. This philosophy is expressed in the sustainability vision which states:

“DRL’s responsibility is to continually improve all aspects of the world in which we

operate – environment, social, economic -- creating a better tomorrow than today.”

The vision is put into action through programs and a focus on environmental stewardship,

activities to benefit society, and a commitment to build shareholder value by making

DRL a truly sustainable company.

DRL Headquarters


Greater Noida

DRL World Headquarters is located in Hyderabad (Andhra Pradesh). The headquarter is

beautifully designed according to environment of Hyderabad. The manufacturing units

consist all the essential facilities which is necessary for an organization.

The collection of works is focused on major twentieth century art, and features works by

masters. The gardens originally were designed by the world famous garden planner,

Russell Page, and have been extended by François Goffinet. The grounds are open to the

public, and a visitor's booth is in operation during the spring and summer.


Greater Noida

OBJECTIVE OF THE STUDY

Analysis of the Doxophylline, Gemifloxacine and Deflazacort in JAIPUR;

Impact of schemes on sales;

To give recommendations for enhance market share;

To analyze the proper functioning of drugs;

To check out the availability of drugs;

To study the factors which are important to attract the customers;

Kind of distribution channel adopted by company;

To know about salesman’s effectiveness & attitude.


Greater Noida

HISTORY OF DR. REDDY

Kallam Anji Reddy of Tadepalli village, Andhra Pradesh is a pharmacist. He completed

his study in science stream in India. He started his career working for the state owned

Indian Drugs and Pharmaceuticals Limited. He was the founder managing director of

Uniloids Ltd and worked there from 1976 to 1980 and Standard Organics Limited where

he worked from 1980 to 1984.

In the year 1984, Dr. Reddy laid the foundation of Dr. Reddy Laboratories Limited in Hyderabad.

The company established new standards in the Indian Pharmaceutical Industry and transformed the Indian bulk drug dependency of the mid-80s into a self-sufficient industry in the mid-90s. Finally the Indian Pharmaceutical industry developed into an export-oriented industry and ever since continues to remain the same. In the year 1993, Dr. Reddy's Laboratories emerged as India's first drug discovering company and on April 2001 it was the first non-Japanese, Asian pharmaceutical company which was listed on New York Stock Exchange. During 90s, the company introduced branded finished formulations in the less regulated markets in CIS, Middle East, South East Asia and Africa. From late 90s, the company has started exploiting US patent and regulatory system to introduce generic products in time, to gain market exclusivity and establish brand image. It is the first Indian based company to receive 180 days exclusivity for a generic drug in USA. Its latest product Amlodipine Maleate has made a sale of US$ 2.0 billion during 2002. The company has global operations with a strong focus on US, Europe, Russia, China and India. Its portfolio of products consists of 70 Active Pharmaceutical Ingredients (API), 100+ Branded Formulations, 11 Generic Pharmaceuticals, 1 Specialty pharmaceutical, 7 new chemical entities in clinical trials. It has world class manufacturing facilities consisting of 6 US FDA approved API plants, 7 formulation plants out of which one is dedicated for US and European market. Its sales turnover for2002-03 was US$ 380 m. This comprised of 35% API, 38% Branded Formulations, 24% Generics and others 3%. Its revenue came from US (32%), India (36%), Russia (9%), Europe (8%) and others (15%).


Greater Noida

DRL says it is keen to generate new streams of revenue in order to continue growing and beat the competition in manufacturing where barriers to entry are comparatively less.

DRL’s strategic move is geared towards exploiting an emerging opportunity in the global pharma industry. “Multinationals are now increasingly looking at outsourcing business functions such as process synthesis, analytical development, and manufacturing, to focus on drug discovery and brand management in an attempt to develop cost effective business models,” according to a report by consulting firm KPMG and the Confederation of Indian Industry, a lobby group.

DRL is positioning itself as a service provider that will enable companies to take their innovations to the market in the most cost-efficient and least time consuming fashion.

For DRL, building a sustainable organization is not a trend it blindly follows; it is intrinsic to how it has operated for decades. To it, a commitment to sustainability means a commitment to fulfilling its obligations to all of its stakeholders -- its customers & partners, employees, shareholders and society. Thus, while optimizing profitability may be one measurement of its performance, it also judges its success by its performance with regard to the communities in which it lives and work, the environment and its employees. DRL understand that it is only by increasing value to all of its stakeholders that it can build an ever flourishing and lasting organization.The capabilities of DRL are:

Deep Manufacturing Expertise

Globally Synchronize Supply Chain

Regulatory Performance

Quality & Product Responsibility13

ACCMAN INSTITUTE OF MANAGEMENTGreater Noida

Board & Management Team

Whole-Time Directors-

Dr. Anji Reddy G V Prasad Satish Reddy Chairman Executive Vice Chairman and Managing Director & Chief Chief Executive Officer Operating Officer

Management Team-

Abhijit Mukherjee Amit Patel Dr. Cartikeya Reddy President,Pharma Services Senior Vice President & Senior Vice President & & Active Ingredients (PSAI) Head - North America Head- Biologics

Jeffrey Wasserstein KB Sankara Rao Prabir JhaExecutive Vice-President, Executive Vice President, Senior Vice President,&NA Specialty Integrated Product Development Global Chief- HR


Greater Noida

Advisor, Dr. Rajinder Kumar Saumen ChakrabortyLegal & Strategy President, President- Corporate & R&D, Commercialization Global Generics

Umang Vohra VS Vasudevan Vilas DholyeSenior Vice President President & Head of Executive Vice President && Chief Financial Officer Europe Operations Head – Formulations Manufacturing


Greater Noida

DRL GROUP’S INFRASTRUCTURE

Manufacturing Bandwidth & R&D Capabilities:

1. Pharma Services & Active Ingredients-

6 FDA-inspected plants in INDIA 1 Cytotoxic facility 1 FDA-inspected plant in Mexico 1 FDA-inspected plant in Mirfield, UK

(2 in Hyderabad, INDIA; 1 in Cambridge, UK)

2. Product Development-

Integrated product development capabilities, that include API development, formulation development and analytical development skills

One Integrated product development facility in Hyderabad, India

3. Global Generics-

6 Formulation plants in India ( 1 USFDA inspected) 1 USFDA inspected plant in USA

4. New Chemical Entities-

Conduct research in areas of metabolic disorders, cardiovascular indication and cancer

5. Biologics-

Biologic development centre GMP production E coli and mammalian cell platform


Greater Noida

INDIAN PHARMACEUTICAL INDUSTRY

1. Introduction:

Globalization is widely seen as a dominating phenomenon of 21st century encompassing world wide integration of financial systems, trade liberalization, deregulation and market opening resulting in a global market and patterns of industrial development. In last few decades it is evident that firms and institutions from peripheral countries or developing world are making sustained and deliberate effort to take advantage of the new opportunities. The rise of East Asia followed by growth in China and India has led to emergence of new breed of Multinational Enterprises (MNEs) from these countries. By the end of 2004 China emerged as fifth largest outward direct foreign investor with a total US $ 37 billion and was the third largest exporter after Germany and the US (Child and Rodrigues, 2005). Similarly albeit on a smaller scale in the last decade Indian economy saw a dramatic growth in overseas investment by the Indian industry. The firms from latecomer countries are making inroads in sectors such as manufacturing (steel and pharmaceuticals) and services (IT) and trading as well as high technology sectors like semi-conductors. Some of the firms such as Infosys, Lenovo, Ranbaxy and Espat are nowcompeting at a global level. Multinational enterprises from developing countries are a clear representation of a sustained increase in outward Foreign direct investment (FDI) from developing countries which has risen from $60 billion in 1980 to $ 869 billion in 2000 and to a total in excess of $1trillion for the first time in 2004 (UNCTAD, 2004). Outward FDI from developing countries accounts for more than 10 percent of the world’s outward FDI. The rise of outward FDI and new MNEs that embody it, from economies such as India, China, Korea, Singapore, Malaysia and Taiwan is a key phenomenon for the world economy in last decade. It shows that firms from developing countries are rising to compete at the frontiers of the world market and this research also focusing on the strategies they have adopted to achieve that.

The first wave MNEs from the developing world documented by authors such as Kumar and mcleod (1981) and Lall (1983) succeeded as international players despite many difficulties. Their success was due as much to the difficulties encountered at home as to the incentives driving internationalization. One of the most salient features of first wave MNE activity is the direction and motivation of FDI compared to western MNEs. Much empirical work on first MNEs indicated strong and marked trend investments in neighboring and other countries which were at a similar or earlier stage of their development. Prominent first wave countries such as India, Philippines, Argentina and Columbia did not show any significant increase in either the level of the total outward FDI, nor a significant shift towards developed country hosts. But the arrival of the second wave MNEs from developing countries represents quite a different phenomenon.First wave countries experienced very low or negative economic growth rate whereas second wave countries grew rapidly over the intervening decade and half. This has been further enhanced by fundamental changes in the world economy which were a direct result of globalization. Globalization has created a more broad and competitive market across countries due to convergence of production and industrial patterns. As a result


Greater Noida

firms need to have 4 competitive advantages that are globally viable rather than domestically. Most of these developing countries also went through a fundamental shift in the policy orientation from an import substituting role to an export oriented outward economy. Firms in these countries now faced competition in domestic market with global firms and needed upgrade their capabilities to survive. These changes had a profound impact in creating a second wave of MNEs from developing countries. Therefore Mathews (2006) argues that analysis of second wave requires different perspectives that differ from those created to account for outward FDI from developed countries, and thefirst wave of MNEs from developing countries. Initial analysis of second wave of MNEs reveals that overseas move of firms in the second wave is a result of the ‘pull factors’ that are drawing firms into global connections unlike ‘push factors’ that drove firms as stand alone players in the first wave (Mathews, 2006). Dunning et al. (1997) suggest that in the case of second wave of MNEs from East-Asian countries such as Taiwan and Korea were subsidized by governments with government policy interacting with firm strategies. The rise of second wave MNEs from emerging countries is less driven by cost factors per se, but more by a search for markets and technological innovations to compete successfully in the Global economy (Yueng, 2000). The sudden appearance of the second wave of firms and their capacity to create competitive positions to existing incumbents has raised interesting questions as they are not simply occupying space vacated by incumbents instead in many cases they are creating new economic space by their organizational and strategic innovation. Thus the changes in the world economy, specifically its globally interlinked character is responsible for driving the new approaches to and patterns of internationalization in firms from peripheral countries. Therefore Mathews (2006) suggests that existing theories and framework of internationalization have failed to capture organization and strategic innovations adopted by developing country MNEs for new modes of internationalization. In this context the Indian pharmaceutical industry provides an ideal case to investigate approaches and motives of second wave MNEs firms from developing countries. From the beginning of the 1990s, the Indian government started liberalization by removing restrictions on trade such as regulations on FDI and opened Indian market to overseas firms. As a result of liberalization policy Indian Economy witnessed dramatic growth, changes in domestic market and firm activities specifically in relation to overseas expansion strategies. The cumulative number of overseas project approved during the 1990s is estimated to be 2652, a nearly 11 fold increase from the number of projects permitted during 1975-90 (230) (Pradhan,2004). The growth of overseas investment is been characterized by significant changes in location and sectoral distribution. In the 1990s the majority of investments has originated from the service sector and was increasingly developed country-oriented with majority ownership in most cases. The most important destination of Indian outward FDI to date is the USA which accounted for 19% of total cumulative outflows from 1996-2003.In 2005 Indian firms acquire 136 firms overseas with a total value of US $4.3 billion. The Indian pharmaceutical Industry is at the forefront in international expansion compared to other manufacturing sectors in the Indian Economy.

The Indian pharmaceutical industry is the thirteenth largest in the world in terms of market output; accounting for a market of about US$ 2.5 billion (Ramani, 2002). It is ranked as the most advanced pharmaceutical industry amongst developing countries and


Greater Noida

is one of India’s best science-based industries. Indian firms have been investing abroad for many years but it is only since the late-1990s that outward FDI flows have risen considerably. The liberalization of government policies and relaxation of regulations on FDI abroad have helped Indian firms to expand internationally. In the last decade some Indian pharmaceutical firms have successfully internationalized their operations and emerged as a major producers and suppliers of generic drugs all over the world. This study of internationalization motives and strategies adopted by Indian Pharmaceutical firms. In the absence of more systematic longitudinal firm level data this research is based on case study evidence. The findings suggest that Indian pharmaceutical firms are accessing advanced markets and acquiring new technology through the process of internationalization. Indian firms augmenting existing skills in production capabilities and process R&D by acquiring technology focused firms in advance markets. The analysis suggests that Indian pharmaceutical firms have adapted to the realities of globalization and are finding new niche through the process of internationalization.

2. The Indian pharmaceutical industry:

India currently represents just US $6 billion of the $550 billion global pharmaceutical industry, its share is increasing at 10 % a year. The organized sector of India’s pharmaceutical industry consists of 250 to 300 companies, which accounts for 70 % of the market, with the top ten companies representing 30%. The Indian pharmaceutical industry has developed wide ranging capabilities in the complex field of drug processDevelopment and production technology. It is well ahead of other developing countries in process R&D capabilities and the range of technologically complex medicines manufactured. The Indian government adopted a new Patents Act in 1970, which laid the foundations of the modern Indian Pharmaceutical industry. It removed product patents for pharmaceuticals, food and agro-chemicals, allowing patents only for production processes. The statutory term for production processes was shortened to five years from grant or seven years from application. The 1970 Patent Act greatly weakened intellectual property protection in India, particularly for pharmaceutical innovations. It started the era of reverse engineering where firms developed new products by changing their production processes like Dr. Reddy. Trained manpower, comparative ease of imitation and a strong chemistry base among Indian research institutes supported manufacturers and gave theIndian pharmaceutical industry its current profile. The industry’s exports were worth more than US $ 492.30 in 2005-06 and they have been growing at a compound annual rate of 22.7 percent over the last few years (National pharmaceutical policy, 2006).

The value of the Indian Pharmaceutical industry’s overseas acquisition has grown from just US $8 million in 1997 to $116 million in 2004. Indian firms have acquired over US $1 billion worth of pharmaceutical companies overseas in 2005. There are 3 developments which are pushing expansion of the Indian pharmaceutical industry into overseas markets;


Greater Noida

A. Opportunities opened in the US generic market due to the Hatch-Waxman Act,B. Increasing outsourcing by MNC pharmaceutical firms andC. Strengthening of patent laws in the domestic market. D. Implement all these techniques in India for producing good medicines.

These three developments are creating new challenges and opportunities for Indian industry and internationalization is one of route adopted by Indian to succeed in this newenvironment. The generic opportunity is a result of the passing of the Hutch Waxman Act in the US in 1984. Under this new law, manufacturers of generic drugs no longer had to go through a lengthy period of extensive clinical trials in order to market a generic drug - demonstration of bio-equivalence was sufficient to acquire a patent on a generic drug. procedures were established for the resolution of disputes between branded drug manufacturers and generic manufacturers. Western markets were a lucrative business opportunity and the low cost advantage enjoyed by Indian firms on account of the cheap availability of scientific labour combined with scale economies inherent in the manufacture of bulk chemicals made for big margins. Between 1999 and 2005 drugs worth $ 64 million went off patent allowing generic companies to take advantage of better business opportunities. In the generics industry prescription drugs worth $40 billion in the US and $25 billion in Europe are due to loose patent protection by 2007-08. In 2004 the US senate passed the Greater Access to Affordable Medicine Act diluting some of the proinnovator provisions of 1984 Hatch-Waxman Act, giving a big boost to the generic business in the US. Similarly Europe is emerging as a key market and a potential growth driver. The size of market in 2006 was US $ 14.2 billion with Germany, France, the UK and Italy accounting for more than 50% of market. Governments in Europe are trying to reduce healthcare costs by embracing generic drug companies. Liberalization facilitated the ability of Indian firms to exploit this opportunity to market generics drugs to the US and other Western economies. Indian firms are preparing themselves to take a share of this increasing global market. Indian drug manufacturerscurrently export their products to more than 65 countries worldwide; the US being the largest customer. However Indian firms face some difficult challenges such as non tariff barriers, decreasing profits in the generics market, competitive threats from big pharma MNEs and reputation in western markets. For example, US regulation disqualifies Indian firms from bidding for government contracts and Indian firms have to submit separateApplications for each state even when firms have FDA approved products and facilities. Another challenge is the reduction in profit margin due to intense competition from Chinese and Eastern European manufacturers as well as authorized generics produced by main manufacturer. Currently Indian industry is estimated to account for 22% of generics in the world market. Indian firms are aiming to move up the value chain by developing capabilities to produce ‘super generics’ rather than ‘generics generics’ to branded generics.Furthermore, stronger patent protection under the new patent law of 1999 has shut down the avenues for exploitation of generics opportunity in domestic market, but promised large rewards to Indian firms that could leverage their reverse engineering capabilities in advanced markets. The stronger patent law restricts reverse engineering of newly patented molecule, thus affecting an important source of growth for Indian firms. Also


Greater Noida

multinational pharmaceutical firms have entered India after 2005 and using the same resource base as Indian firms to compete in the Indian domestic market further increasing pressure on profit margins of Indian firms. The contract research and manufacturing services (CRAM) market has emerged as huge opportunity for the Indian pharmaceutical industry. According to Frost and Sullivan (2005), the global outsourcing market is worth$37 billion and growing at almost 11%; 50% of the contract manufacturing market is in North America, 40% in Europe and just 10% in Asia and the rest of the world. Indian firms possess requisite capabilities to cater for the requirements of outsourcing markets, still India accounts for barely 1.5% of the global CRAM industry. Due to untested patent protection law and lack of data protection MNC firms are reluctant to outsource early stage R&D work to Indian firms. Therefore Indian firms are trying to increase their share in the outsourcing market by moving closer to the market.

Geographically the overseas acquisition by Indian pharmaceutical firms continues to be directed at developed countries specifically the US and Europe (Table 1). Out of 32 acquisitions listed in Table 1 only 6 are in developing markets and the remaining rest of 26 are in advanced markets such as the US and Europe. The major acquisitions are in the area of marketing although some companies are investing in building manufacturing andR&D capacities in developed markets. Indian companies have already established manufacturing plants in the US, Europe, Brazil, Russia and China.

Table 1 Recent acquisition by Indian pharmaceutical firmsCompany Focus area Year Target Value

US $ MillionDishmanPharma

Contract manufacturingand research

service

2005 Syprotec (UK) 93.5

Dr. Reddy’sLaboratories

US generics, speciality

products, APIs,formulations,

customsynthesis

2004 Trigenesis (US) 11

n/a BMS Laboratories and Meridian

Health care

16

2005 Roche’s API Business (Mexico)

59

2006 Betapharm 572GlenmarkPharma

Drug discoveryresearch,

formulations

2004 Kinger Lab ( Brazil) 5.2

2005 Uno-Ciclo (Brazil) 4.62005 Servycal SA (Argentina n/a

Hikal API’s contractmanufacturing

2004 Marsin (Denmark) 6 millio for 50% stake

Jubilant Organosys

CRAMS, pharma

2004 PSI (Belgium) 16

2005 Trinity Laboratories 20.25 million


Greater Noida

speciality, chemicals,

intermediates, formulations, medical (US)chemistry and

clinicalservices

(along withsubsidiary Trigen

Laboratories )

for 75% stake

2005 Target Research Associates

33.5

Matrix Labs CRAMs, generic APIs,intermediates

andformulations

2005 MICHEM (China) (JV) n/a

2005 Docpharma (Belgium) 263

2005 Explora Laboratories(Switzerland)

n/a

n/a Fine Chemicals corp (SouthAfrica)

n/a

NicholasPiramal

CRAMS space contract

manufacturing,APIs, brandedformulations

2004 Doubtrex brand acquisition (US)

n/a

2004 Rhodia’s inhalation business

(UK)

14

2005 Biosyntech (Canada) 6

2005 Avecia Pharma (UK) 16.9

Strides lab Generics, OTC and

nutraceuticals

2005 Manufacturing plant (Poland)

8

2005 Beltapharm (Italy) EUR 1.6million (70%

stake)Sun Pharma Branded

formulations,US generics,

APIs

2005 Two facilities from Valent

Pharma (Hungary, US)

10

1997 Caraco (US) 7.52005 Able Laboratories (US) 23.15

Ranbaxy US and Europe genericMarkets

2008 Dai Chii Sanque2004 RPG Aventis (France) 84n/a 18 generic products

from EfarmesS.A. (Spain)

n/a

2005 Brand –veratide from P&G

(Germany)

5


Greater Noida

Torrent Formulations,European genericMarket

2005 Heumann Pharma (Germany)

n/a

ZydusCadilla

Contract manufacturingand generics

2003 Alpharma (France) 6.6

Wockhardt Biogenerics, US and

Europe generic market,Branded generics

2003 CP Pharma (UK) 20

2004 Esparma (Germany) 11

The major Indian companies such as Ranbaxy, Dr. Reddy’s Laboratories, Wockhardt and others have established their own brand image in the international market as well as domestic market and are taking steps to consolidate their activities.

Indian firms are compensating for the spiraling cost of selling and marketing in advance countries by setting wholly owned subsidiaries or acquiring local firm. Thus reinforcing the argument that Indian firm’s internationalization through acquisition is directed towards acquiring new knowledge in different areas such as R&D capabilities, regulatory skills and distribution networks.

3. Firms under investigation

The findings of this research are based on the study of internationalization motives and patterns adopted by five well established Indian pharmaceutical firms, viz. Ranbaxy Laboratories, Dr. Reddy’s Labs, Wockhardt, Nicholas Piramal and Sun Pharmaceuticals Ltd.

Table 2 Firms under investigationName of theFirm

Yearestablished

No. of overseasManufacturingplants

No. of overseasacquisitionsfrom 1990

Turnover(2008)RS.Million

% ofturnoverfromoverseas(2008)

IPO

Ranbaxy 1962 8 11 41205.88 69.90 1994DRL 1984 2 4 50006 79.1 2001Wockhardt 1959 3 4 26531.54 70.55 2003NPIL 1988 5 3 28789.1 71.67Sun 1983 4 3 32776 68.78 2007


Greater Noida

All these firms are privately owned business with family ownership and ranked amongst top ten firms in India. Table 2 shows that large part of their turnover comes from overseas markets while advance regions such as US and Europe account for more than 80% of overseas revenue. All these firms raised money through IPOs (Initial Public Offerings) before embarking on the overseas acquisitions.

But my focus is only on Dr. Reddy, through this analysis we can find out that in the previous time period the pharmaceutical companies were interested in overseas development but now the scenario is changed completely. These companies are focusing in the national market with the help of using generic patent off drugs by changing their process and their contents.

Dr. Reddy’s M&A:

Table No. 3 DRL’S Mergers & Acquisitions:

S.No. Year Acquired Firm Focusing Area Value1 2002 BMS laboratories and

Meridian labsUK generics market US $16 million

2 2004 Tregenesis (US) Specialty products – access

drug delivery platforms in the

dermatology segment

US$11 million

3 2005 Roche’s Generic Business (Mexico)

US generics market US $ 59 million

4 2006 Betapharma (Germany) European Generic Market US $ 572 million

5 2008 Jet Generici SrI Itly Generic Market n/a

6 2008 Dow Pharma (UK) Small molecule business n/a

7 2008 BAFS-SE Pharma(US) Performance Products, Functional Solution

n/a

8 2008 Perlecan Pharma Pvt. Ltd. (India)

Indian Manufacturer of Functional solution

n/a

With the help of this table(Table:3) it is clear that DRL shown their presence in the pharmaceutical industry by a large number M&A. DRL’s international and national marketing successes were built on a strong manufacturing base which itself was a result of inorganic growth through acquisition of international and national facilities. DRL merged with Cheminor Drug Limited (CDL) with the primary aim of supplying APIs (active pharmaceutical ingredient) to the technically demanding markets of North America and Europe. This merger also gave DRL entry into value added generics


Greater Noida

business in the regulated markets of APIs. DRL began its major international production by entering Russia through a joint venture with Biomed in 1992 and in 2002 DRL converted the joint venture into a fully owned subsidiary. It strengthened its Indian manufacturing operations by acquiring American Remedies limited in 1999. This acquisition made DRL the third largest pharmaceutical company in India, after Ranbaxy and Glaxo (I) Ltd., with a full spectrum of pharmaceutical products, which included bulk drugs, intermediates, finished dosages, chemical synthesis, diagnostics and biotechnology. So through this way now DRL is the secong largest pharmaceutical company in the India.

Flow Chart: DRL’s Expansion in the World

THE HIERACHY OF MARKETING DEPATMENT


Greater Noida

CHAIRMAN

MOLECULES INTRODUCTION


Greater Noida

SENIOR DIRECTOR

Sales Manager (SM)

Production Management Team (PMT)

North-West Sales ManagerSouth East Sales Manager Group Therapy Management

Regional Manager

Area Sales Manager Scientific Business Officer (SBO)

Professional Service Representative

Product Manager

WHAT IS GEMIFLOXACIN?

Gemifloxacin is a synthetic broad spectrum antibacterial agent for oral administration.

Gemifloxacin, a compound related to the fluoroquinolone class of antibiotics, is available

as the mesylate salt the sesquihydrate form. As recognized by the US Food and Drug

Administration in their approval statement for gemifloxacin in April 2003, it is the only

agent that displays activity against both fluoroquinolone target sites at therapeutically

achievable levels. The order of resistance development by FAUC/MIC breakpoint was

levifloxacin>gatifloxacin>moxifloxacin=gemifloxacin, which may be related to

structural differences within the class. Due to its potent activity against many common

gram-positive and gram-negative respiratory pathogens, its proven clinical efficacy, and

its favorable safety profile, gemifloxacin is a highly effective empiric treatment for

community-acquired lower respiratory tract infections. Gemifloxacin has been highly

effective in the treatment of community-acquired pneumonia and acute exacerbation of

chronic bronchitis. Clinical success rates ranged from 93.9-95.9% in patients with

community-acquired pneumonia and 96.1-97.5% in those with acute exacerbation of

chronic bronchitis. Gemifloxacin is a dual acting fluoroquinolone with excellent activity

against S. pneumonia including those strains demonstrating resistance to other classes of

antibiotics. Gemifloxacin targets both DNA gyres and Topoisomerase IV of S.

pneumonia. The brand under this molecule is GEN ONE .

WHAT IS DELAZACORT (ASTERIDE)?

Deflazacort, a synthetic oxazolone of prednisolone with 0.84 times anti-inflammentory effect of prednisolone. When in-vitro immunosuppressive effect of deflazacort, a new


Greater Noida

bone-sparing glucocorticoid, and its biological active metabolite, 21-deactyl deflazacort, was examined on phytoaemagglutinin (PHA) stimulated human peripheral blood lymphocytes (PBL) as well as on natural killer and killer cell activity, Deflazacort and the 21-deacetyl metabolite were as potent as prednisolone and hydrocortisone in suppressing PHA stimulated lymphocytes in a dose dependent way.Current research indicates that deflazacort and 21-deacetyl deflazacort are potent immunosuppressive drug in vitro and, on a molar basis, equally as potent as prednisolone.While addition of the methyl ring affords greater potency to methylprednisolone over prednisolone, it is the addition of a methyl, nitrogen and two oxygen branched chains that account for an equivalent efficacy yet significantly greater safety profile in the case of deflazacort.A study by Gartner et al assessed the efficacy and tolerability of oral deflazacort versus oral prednisolone in acute moderate asthma in children. Children aged 6 to 14 years old with a diagnosis of asthma who presented to the pediatric emergency department for moderate asthma exacerbation were administered short acting beta2-adrenergic agonists and divided into an intervention group that received oral deflazacort or prednisolone for 7 days. The primary outcome measure was forced expiratory volume in 1 second and secondary outcome measures were pulmonary symptom score index, peak expiratory flow rate (PEFR) hospitalization rate and the use of rescue beta2-agonists. Patients were evaluated at the start of treatment (visit 1), on day 2 (visit 2), and on day 7 (visit 3).On visit 2, FEV1:122.2 and 126.5 %( p<0.05); PEFR: 164 AND 149 L/min ( p<0.05) ; symptoms score: -4.4 and -3.8 ( p<0.05). On visit 3 all variables continued to show improvement: FEV1: 133.2 and 132.5% (p<0.05); PEFR: 1115.7 AND 187.6 L/min (p<0.05); symptoms score: -5.4 and -5.9 (p<0.05).

WHAT IS DOXOFYLLINE?

Methylanthine are a group of structurally related substances, used in the clinical management of patients with obstructive respiratory disorders, in particular chronic


Greater Noida

obstructive pulmonary disease (COPD). Their effect is a generalized dilation of the bronchi that reduces the overall resistance of airways to the airflow, improves blood gas exchange, and decreases the respiratory effort. It is supposed that regular use of Methylxanthine decreases the risks of acute dyspnoiec attacks, such as acute asthemic attacks, and acute respiratory failure in COPD. The use of methylxanthine is essentially a long term use. Their efficacy, when used orally as it usually occurs, onset within approximately one week and stabilizes within approximately four weeks. During the initial and the stabilization period, the effectiveness of metylxanthine is marked decreased need of rescue medication use, usually in the form of puffs of short acting beta2-agonists. Dosage of methylxanthine is normally monitored by measuring the blood level obtained at trough. Methylanthine can also be used to obtain acute effects, when administered by intravenous injection or infusion. It is evident that long term use of Methylanthine should not only be effective as bronchodilator, but should also be exempt of major risks of adverse effect on any body system and organ, as well as of risk of interaction with the commonly used concurrent medication. Doxoyfylline is a Methylanthine with almost the same bronchodilating effect as theophylline. It has, however, a much lower affinity for the adenosine receptors. The use of doxofylline appears to provide the required bronchodilating action in COPD and in asthma, with limited risk for CNS, gastrointestinal and cardiovascular adverse events. The brand under this category is DOXOBID.

MANAGING THE SALESFORCE


Greater Noida

MANAGING THE SALESFORCE

Sales Management involves managing people and getting results through them. It

involves sales planning that is based on market analysis. It involves setting sales goal and

tries to achieve them. Sales management also involves organizing and motivating the

sales team in such a way that they achieve and surpass the goal. This involves appropriate

compensation plan and building sales organization to respond to market realities. Finally,

the sales manager needs to review the performance and access productivity of his/her

team.

MAIN POINTS –

.

The role of the MR is futurist, strategist, information management and leadership.

The sales management planning process involves analysis, goal setting, strategy and tactics development, issues in implementation and finally controlling sales effort.

Sales budget are the financial aspects of the sales plan. Sales quotas are targets to be achieved by individual salesperson or by the sales team.

A sales team can be formed either on the basis of the product, or territory or customer groups or combination of these.

The compensation plans used by sales managers are straight salary, commissions only or a combination of these two.

PRODUCT POSITIONING


Greater Noida

DRL’s all three products are present in the all the target market & the selling of the products are well than other companies. According to experts the product is positioned on the parity-of-difference rule, because as we know the pharmaceutical industry is not like other industries where customers’ willingness works here the things of working of medicine related disease. All three drugs of DRL is for asthma patients & in the market the sale depends on the performance of MRs. So MR of company realizes this thing & they give proper knowledge of product to the doctor & increase the sale of drugs through good quantity of drugs with chemists. Company has good relation with doctors and the chemists.

On the basis of good positioning strategy DRL has a good market share.

DRL’s market share on the basis of positioning strategy-

COMPETITOR ANALYSIS


Greater Noida

The major competitor of DRL through out the survey area is Macleod. Following will

give a brief of the competition between the rivals:

Although the goals of both the companies are the same, the two companies rely

on somewhat different marketing strategies. DRL has always taken the lead in

developing new products. Further, DRL has always taken more risks, acted

rapidly, and was always developing new drugs at a lower cost than Macleod

In the foreign markets, DRL has been more successful then Macleod. In the

Middle East countries DRL has a good strength than Macleod & now in India

DRL has established new plants for increase the production of drugs so now it can

export ready medicine instead bulk.

While Macleod has been playing safe with introducing new drugs with good

working and trap the market share than DRL. DRL has introduced a new drug in

deflazaort category-Asteroid, to cover the area of asthma drugs and it is going in

good direction.

DRL has positioned itself as a quick copy which is considered to be more modern

and lively as compared to other companies because in this industry any company

is not sure about its share. Also, DRL has always played around innovations so as

to lead the market.

This chart show the market share of DRL & Macleod:


Greater Noida

In the same manner for ths gemifloxacin molecule the main competitor is Gicin, cmpany

is using same strategy for this molecule product(Gem One). The condition is cleared with

the chart.

The third molecule for analysis is Deflazacort, the market share of DRL for this molecule

is smaller than other companies product. As we know the pharmaceutical industry is

fragmented industry, so it is quite difficult to a company to rule over market with one

product. DRL is also doing work on this drug & strenghning the marketing strategy for

this drug. The market share of this drug is cleared by following chart-


Greater Noida

Conclusion:-

According to study DRL is maintaining its position as a quick copy who introduces drugs

on the basis of patent off pattern. For existing in the market always innovation is

necessary.


Greater Noida

SWOT ANALYSIS

STRENGTHS-

• Aggressive decision maker

• Cost leadership

• Tactful reengineering process

• Copy the manufacturing process of patented drugs

• Adapting quickly changed environment

• Quality of drugs

• Cross licenses , joint ventures & alliances

• Talented workforce

WEAKNESSES-

• Concentrate only process improvement

• Marketing arms are split

• Mainly focused on bulk drugs

• Focus on therapeutic segment


Greater Noida

OPPURTUNITIES : -

• Develop new process

• Research driven company

• Sustain for growth & diversification

THREATS: -

• Fragment industries

• Diversification

• Patent product manufacturing MNCs


Greater Noida

Field Work

Market Analysis of Doxophylline, Gemifloxacin, Deflazacort – Jaipur

The product of these molecules is, Doxophylline- Doxobid, Gemifloxacin- Gem One and

Deflazacort- Asteroid. These drugs are prescribed by doctors to the asthma patients and

availability of products on the shops depends on the medical representatives.

My job was to visit all the chemists of main five hospitals area in the Jaipur. The name of

hospitals are-

1). Sawai Mansingh Singh Hospital

2). Jaipur Hospital

3). T. B. Hospital

4). Haribaksh Kawatia Hospital

5). Santokabha Dhurlabji Medical Centre & Hospital

During the initial stage of the project, I came to know about the all the brands of these

molecules of existing companies. On visiting chemists on various routes, I realized how

important a strong distribution channel was for a company to be able to retain its position

as an industry leader. I used to visit all the retail outlets of a particular route each day and

learnt how to applied a company’s drug in the market, how to tackle the various problems

related to knowledge of drug to the doctor & chemist. Having done this, an overall

market scenario of the distribution channel and methods became clear.


Greater Noida

In the process of increasing the market share of drugs market representatives give doctors

about the drugs & clarify all the queries of them. In this way they tried to motivate them

to prescribe more and more of the products of DRL. I also analyzed:

1. Whether the MR is telling about the actual working of drug to the doctors &

chemists properly?

2. Whether the availability of drugs on the shops?

3. Whether the doctors are prescribing the drugs of the company?


Greater Noida

Market Surfing of “Doxobid, Gem One, Asteroid”:

Route No: 1 (SMS Hospital)

Sr. No.

Chemist Name Sale of DRL Drugs

DoxobidGem One

AsteroidBest

Selling Drug

1Hindustan Medical Store

Good Yes Yes No Gem One

2 Curewell Average Yes Yes No Gem One

3 Super Medicals Very Good Yes Yes YesDoxobid,Gem One

4Sona Medical Store

Very Good Yes Yes Yes All

5Vishal Medical Hall

Very Good Yes Yes Yes All

6 Rajasthan MedicalsBelow

AverageYes Yes No Gem One

7 Medicure Good Yes Yes Yes Gem One

8 Sarvoday Medicals Good Yes Yes YesDoxobidGem One


Greater Noida

Route no. – 2 (H.K. Hospital)

Sr. No.

Chemists NameSale of

DRL DrugsDoxobid

Gem One

AsteroidBest

Selling Drugs

1Vashisth Medical Store

Good Yes No Yes Doxobid

2Bansal Medical Store

Good Yes Yes No Gem One

3Sanjay Medical Store

Very Good Yes Yes YesDoxobidGem One

4 Agrwal Medicos Average Yes Yes No Doxobid

5 Shyam MedicosBelow

AverageYes Yes No Doxobid

6Shree Nath Medicals

Average Yes Yes Yes Gem One

7 Sharma Medicos Good Yes Yes No Doxobid

8 R.S. Medicos Average Yes Yes Yes Gem One


Greater Noida

Route no. – 3 (T.B. Hospital)

Sr. No.


DRL DrugsDoxobid

Gem One

AsteroidBest

Selling Drugs

1Shree Krishna Medicos

Good Yes No Yes Doxobid

2 Mohan Medicals Very Good Yes Yes YesGem OneAsteroid

3 Poonam Medicals Average Yes Yes NoDoxobid

4Raghukul Medical Store

Good Yes Yes YesDoxobidAsteroid


Greater Noida

Route no. – 4 (Jaipur Hospital)

Sr. No.


DRL DrugsDoxobid

Gem One

AsteroidBest

Selling Drugs

1 Jaipur Drug Store Good Yes Yes YesDoxobidGem One

2Shiv Medical & Provision Store

Average Yes Yes YesDoxobid

3Arvind Medical Store

Good Yes Yes NoDoxobid

Route no. – 5 (SDMH)

Sr. No.


DRL DrugsDoxobid

Gem One

AsteroidBest

Selling Drugs

1 Vardhman Medicos Very Good Yes Yes YesDoxobidGem One

2 J.S. Medicos Good Yes Yes YesDoxobid


Greater Noida

RESEARCH METHEDOLOGY

A market research survey has been conducted for the purpose of above study. The research data has been collected through out this procedure.

A. Data collection

The success of any research project depends critically on data. So data collection is the most important aspect of a research project. Primary and secondary data are used in this project.

B. Sample survey:

Survey has been conducted after preparing the questionnaire and the focus was to know the market share of company.

C. Sampling:

a) Nature of Universe

The research was carried on doctors and chemists.

b) Sample Size

Sample size has been 42 chemists of various places in Jaipur. c) Secondary Information

Companies documents, various journals, pamphlets and companies portals were studied for relevant information regarding the subject of the projects. These documents were very useful for theoretical, conceptual and organizational background. Detailed analysis of information and data collection was carried on and then it has been possible to complete the task.

d) Question Design

The question was designed keeping in mind the need of the project. The questions were simple and concise. Questions were prepared for chemists.


Greater Noida

PRIMARY DATA:

Primary data is collected through chemists, questionnaire, and personal interviews of

chemists and different employees of DRL (MRs.).

For example:

Condition of sale of drugs -

Very Good

Good

Above Average

Average

Below Average

Bad


Greater Noida

DATA ANALYSIS

Q1. Have you all the brands of Doxophylline?

Q2. Have you all the brands of Gemifloxcin?


Greater Noida

Q3. Have you all the brands of Deflazacort?

Q4. Give name of available brands of Doxophylline molecule.

Ans. Doxopick Doxobid(DRL) Doxorill(Macleod) Doxiflo Doxofree Doxious Doxomax Doxovin

Q5. Give name of available brands of Gemifloxacin molecule.

Ans. Gen One (DRL) Gemimac Gemic Gicin Gem2kuin Gemz

Q6. Give name of available brands of Deflazacort molecule.

Ans. Defcoat Defza Deflanol Asteroid (DRL) Depsure Defzacore


Greater Noida

SMS HOSPITAL:

Q7. Market status of DOXOBID in SMS Hospital.Ans.

Q8. Market status of GEM ONE in SMS Hospital.Ans.


Greater Noida

Q9. Market status of Asteroid in SMS Hospital.Ans.

H. KAWATIA HOSPITAL:

Q10. Market status of DOXOBID in Kawatia Hospital.Ans.


Greater Noida

Q11. Market status of GEM ONE in Kawatia Hospital.Ans.

Q12. Market status of Asteroid in Kawatia Hospital.Ans.


Greater Noida

T.B. HOSPITAL:

Q13 Market status of DOXOBID.Ans.

Q14. Market status of GEM ONE.Ans.


Greater Noida

Q15. Market status of Asteroid.Ans.

JAIPUR HOSPITAL & SKDM HOSPITAL:

Q16. Market status of DOXOBID.Ans.


Greater Noida


Q18. Market status of Asteroid.Ans.


Greater Noida

Overall Status of DRL Product:

Q19. Market status of DOXOBID.Ans.



Greater Noida

Q21. Market status of ASTEROID.Ans.


Greater Noida

FINDINGS

According to market analysis of Dr. Reddy’s product, conditions of some drugs are

better and some have very low market share.

As per findings, the condition of Doxobid is quite good comparisons of other

drugs. But Doxobid face a great completion to Macleod’s Doxorill. Doxorill

has a large share of market.

The condition of Gem One is best among the other drugs. It is market leader

in the Gemifloxacin molecule.

Beside this Asteride is a low performer in the market and it needing a lot of

attention.

The works of representatives are going on very well and it is right for DRL

that it has well workforces which make possible every step of company in

right direction.

The products of DRL are working in a good manner than its competitors. The

reasons for this success are-

o Availability of drug at a low cost.

o Workings of drugs are better.

o Work of representative is in an effective manner.


Greater Noida

RECOMMENDATIONS

Doxobid:

Doxobid is going on very well, but company need to put little bit pressure on its sales

through-

Involving new ingredients in the product which make it more effective.

As we know in India cost play a major role on sale, so company need to

decrease the price of product from Rs. 50 to Rs. 48. This can play a vital role

in the growth of company.

Gem One:

Gem one is the market leader in its category. Comparison to other brands its

effectiveness is far better. Doctors are prescribing this drug in large numbers. It alone

generates a huge amount of revenue.

But company need to always focus on this strategy so that they can’t lose its

leadership in the market. Like regularity of representatives, availability of appropriate

amount of drug.

Asteride:

Asteride is not performing according to company vision; it has a low market share

than above two drugs. So company need to keep eye on this product performance.

Company need to regularly take update of this drug from representatives.

It needs to remind doctors about the product availability in the market.


Greater Noida

According to result of analysis it has shown that on many places chemists has not

availability or knowledge about drug, so company need to strong tis distribution units

and give representative an extra task to give proper knowledge to chemists about

drug.


Greater Noida

CONCLUSION

Without any hesitation we can say that the unit is doing tremendously well and the sales

are increasing. Launching of drugs like Gem One, Doxobid & Asteroid works like a

panacea for increasing the sales of the company, but today looking at the competition of

the market there is an immense scope of improvement.

If we have to compete with our rivals then we have to make concrete marketing strategy

and follow it strictly. We also have to keep a keen watch on our rival’s strategy and take

steps according to them.

We should create new drugs, and new process for manufacturing drugs with low cost,

effectiveness that can add to our sales. Besides we also have to work on other possible

areas of marketing like maintain good relation with doctors & chemists that can

strengthen our sales.


Greater Noida

BIBLIOGRAPHY

BOOKS

1. PRINCIPLES OF MARKETING

By Philip Kotler

2. MARKETING RESEARCH

By N.K Malhotra

WEBSITES

1. www.drreddy.com.in

2. www.wikipedia.org

3. www.google.com


Greater Noida

http://www.google.com/

http://www.drreddy.com.in/

QUESTIONNAIRE

Name: ……………………………………………………………Name of shop: …………………………………………………………..Contact no. : …………………………………………………………..

1. Which drugs do you have for asthma? (Give the name of 3 main drugs)1………………………………………………. 2………………………………………………. 3………………………………………………

2. Do you have doxophylline and gemifloxacine? Yes No

3. Which brands are available in your shop and also mention the price of drug? Doxophylline Rs.1……………………………………… ( )2……………………………………… ( ) 3……………………………………… ( )4……………………………………… ( ) Gemifloxacin Rs.1……………………………………… ( )2……………………………………… ( )3……………………………………… ( )4……………………………………… ( )

4. Which doctors are prescribing these medicines? (Write name with specialization area of doctor) Name Specialization

1. Dr……………………………………….. ( ) 2. Dr………………………………………… ( ) 3. Dr……………………………………….. ( )


Greater Noida

4. Dr………………………………………….. ( ) 5. Dr…………………………………………. ( . )

5. Which drug is selling mostly?

6. Give reasons for your answer.1…………………………………………….... 2……………………………………………….

7. What is present situation of Dr. Reddy’s products?Very good Good Above avg.

Average Below avg. Bad

8. What are the reasons for this situation?1…………………………………………………… 2………………………………………………

9. Any opinions for company to raise the product’s market share. 1…………………………………………………… 2………………………………………………3…………………………………………………… 4……………………………………………..

THANKS


Greater Noida


Greater Noida

project report of dr. reddy's

Documents