INDEX Sr.No.
Name of chapter
Page no
1. Introduction
6
2. Objectives of project
16
3. Company profile
18
4. Marketing mix
34
5. Re Research methodology
45
6. Data analysis and interpretation
52
7. Recomme Recommendat ndation ion of of the the study study
59
8. Conclusion
61
9. Bibliography
63
10.Annexure
65
1
1. Introduction
2
Marketing in Pharmaceutical Industry Marketing management is the practical application of this process. Pharmaceutical industry plays an important role in building a strong human capital for the country. The importance of the pharmaceutical industry in the healthcare sector as well as the global economy has been increasing rapidly. The pharmaceutical marketing is different from consumer marketing, as in this the products are usually not chosen by the consumers for there convenience, but it is given by their consultant on their health complaints. Pharmaceutical marketing involves selling of drugs and medicines to qualifies person who has the basic knowledge of medicines Selling, consumer goods are quits easy, and involve less risk, but pharmaceutical marketing involves selling of medicines that too through a mediator (doctor) to the consumer
1.1 Classification of Pharmaceutical Marketing Pharmaceutical marketing is done in two ways1.) Ethical Marketing / Prescription based marketing. 2.) OTC(Over the counter) marketing.
1. Ethical Marketing / Prescription based marketing: In pharmaceutical marketing, goods (i.e. medicines) are not sold directly to consumer but through Physicians / doctors who prescribe the drugs to the patient. Physicians are perhaps the most important players in pharmaceutical sales. They write the prescriptions that determine which drugs will be used for the patient. Influencing the physician is key to pharmaceutical sales. Ethical Marketing involves influencing the physician.In Ethical marketing importance is given to prescription selling, target customer here is physician who is qualifies enough to decide which medicine is better for his patient.
3
2. OTC Marketing: The OTC stands for 'Over the Counter', which means the direct selling from the chemist counter without any suggestion or the prescription of the physician. The drugs included major in this category are the, Analgesics (Pain Killers) Antipyretic (For Fever.) Most of the patients to save physicians fees do this type of treatment but it is ethically wrong because they don't understands the MOA (Mechanism of Action) and also the side effects of that drug.
1.2 Launching of the Pharmaceutical Products in Market: Pharmaceutical marketing is the most challenging in today's world as it is approaching the millennium. Today's pharmaceutical market is complex and multinational with products primarily aimed at the maintence and improvement of people's health. Historically, this was done with large pharmaceutical sales forces. More than 10,000 sales force-Large Scale Organisation Less 1,000 sales force- Small Scale Organisation (Sales representative) meet to the physicians regularly providing information and free drug samples according to the companies policy to the physicians. This is still the approach today. As the competition is becoming stiff and due to entrance of new players in pharmaceutical market, making call to physicians is not sufficient. Today each and every pharmaceutical company is giving importance of the aggressive marketing along with the Productive call in the doctors chamber of the medicinal product. Aggressive marketing of the means providing the proper services to the doctor, chemist & also take care of patients. Pharmaceutical marketing is stand on four pillars of, Doctor, Chemist, Distributor, & also on Patients.
1) Physician:Physician is the person who prescribes the drug and is well aware of the medicinal value of the product.
2) Retailers.:4
Retailer who makes availability of the prescribing product & also providing the guidance in the proper selection of doctor and about molecule to promote in doctor chamber.
3) Distributors :Distributor makes the proper availability of stock from company for the proper distribution in the territory chemist and helps in selection of area or town to be covered.
4) Patients :Patients these are the direct and end users of the products. So these are so important. Company will provide the medicines at the most economical rates for patient' Conveniences.
Pharmaceutical Pharmaceutical Company D
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1.3 Promotion of Pharmaceutical Pharmaceutical Product: The process of convincing the doctor also providing the information to retailer about the 5
product and doctors promise for product and taking order and give to the stockiest make product available for the patient convenience is major duty of the medical. Some of the techniques adopted by Pharma Company's are Steps of promotion of pharmaceutical product. Special comp nigh for some product
•
Targeting the Physicians for particular Molecule
•
Meeting to the physician.
•
Sampling.
•
Giving a regular follow-up
•
Providing informative literature.
•
Arranging Doctor's meet.
•
•
Giving gifts as token of gesture.
Advertisment of the product in books, journals and magazines used by the physicians.
•
Participate in medical conference.
•
1.4 CONCEPTUAL FRAMEWORK Before starting the main project it is necessary to yet analytical with certain concepts so that it helps to get better understanding of the project following are some of the concept used in the project.
1) PHARMACY PHA RMACY:: Pharmacy is defined as "The art of preparing and dispensing medicines and embodies the knowledge and skill requisite to carry them out in practice."
2) DRUG: According to WHO "A drug is any substance or products used or intended to be used to modify or explore physoplogical system or pathological state for the benefits of the recipient." 6
3) BULKDRUG: "Bulk drugs are active or inactive ingredients used in the manufacture of finished dosages drugs products".
4) COMPOUNDING: Compounding is defined as "Produce a dosage form of drug other than that manipulation that is provided for in the directions for use on the labelling of the approved drug product, for example, the reconstitution of a sterile powder with sterile water for injection.
5) PHARMACIST: The Person licensees and have operating in conformity and dispensing in response to a valid prescription.
1.5 Present Scenario of Pharma Companies : Since independence Pharma industry is contributing towards Indian economy. But with the major shift in the economy policy i.e. 1991 they are contributing even more than before form a long period of India Pharmaceutical companies are giving a good contribution through Ayurved, Homeopathy, allopathic etc. After independence public sector and private sector Pharmaceuticals companies were the main source of medicines every year for its people. Now Pharma companies are growing year after year. Previously the Pharma field was relatively unknown to common people, now with the progress in the pharmaceutical field people are paying more attention towards this field, because of the lucrative offering made by the Pharma companies. The change this field can be gauged from the education in the field of pharmacy. Now many student are diverted towards the pharmaceutical field of pharmacy. Now many students are diverted towards the pharmaceutical field and the government is also supporting by way of providing quality education and other facilities and by opening new colleges that this field grows by leaps and bounds. Future in this field has become very bright. It is under constant focus of the people. Now the Indians are giving more attention towards this field. Since India has second largest population 7
of the world there will be steady increase in demand for the pharmaceutical products. In India per capital expenditure III drug is very low as compared to the international standards. India as per capital expenditure of US$-3 against US$-4l2 in Japan and US$-222 in Germany and US#-91 in US. This is not very surprising considering the low literacy level in India. With improvement in literacy level and health consciousness, the consumption of pharmaceutical product is bound to increase. In past 2005 scenario companies will enjoy the benefit for launching the specialized product without fearing about the benefit for launching the specialized product. The need for the specialized product is expected to increase with the changing demographic and disease profile. This is due to increase in income level and changing lifestyle and improvement in health infrastructure. The market or the companies will grow as they will enter that area to wide extent. At present there exist wide disparity in terms of medication and health infrastructure of the sectors. In urban areas nearly 26% of the population is yet to get the maximum medical coverage to the extent of 67% in the rural sector, which forms 76% of the population. Population is getting increased gradually, meaning immense potential for these companies. According to a study the annual pharmaceutical consumption in India is expected to increase US$ 13.3 billion by 2006, which was just US$ 2.8 billion in the year 1996.
1.6 Product Promotional Pattern
8
In classification various techniques are used to promote and sell a pharmaceutical such as TV advertising, distributing broachers, regular visits by medical representative, gift and sample distribution. An ethical drug first has to be approved and recommended by a physician and then sold to the patient or consumer, through medical stores, non ethical or patented products can be directly sold to the consumer through persuasive advertising through various media such as newspaper, magazine, radio rad io or TV. TV. It can be sold through point of sale advertising which means poster in the medical shop or window displays, but the proportion of non ethical or patented products is hardly about 20% of the total output of drugs and pharmaceutical products. Hence an indirect method, a round about way of promotion and distribution has been adopted in pharmaceutical marketing. It can be shown diagrammatically as given under .
1.CHART
Physicia n or Doctors
Patient /
Medical
Direct
Executive
Chemist / Retailer
Pharmaceutical Product Product
9
It has been observed that about 15% to 20% products are sold directly to the institutional customers such as hospitals, nursing homes, etc and above 80% sale is individual customer on the basis of prescriptionn given to individual and submitted to the druggist. Hence the primary and most important task for the medical representative is to pay sales calls to the physicians. He is expected to pay sales calls of about 12 or more physicians everyday about 25 days a month. He has to plan his sales calls carefully, for which he has to make a tentative list of physicians in his history. Company
Central Depot
C & F (Carry and Forward)
District wise Stockist
Retailers
Patients
CHART NO.2
Drug & Pharmaceutical Co. Managing Director 10
Production Production
Marketing
Executive
Executive
State Level
Sales
Finance
Executive
State Level
State Level
2.Division
3.Division
Executive
State
level 1.Division
Area manager
Area manager
Sale
Sale
Supervisor
MR
4.Division
Supervisor
MR
MR
MR
MR
MR
CHART NO. 3
Flow chart of Pharmaceutical Companies Marketing Team
11
2.
OBJECTIVES OF PROJECT
12
Research Research Objectives: Objectives of the Project entitled as Marketing Strategy adopted by Mankind Pharma in Nagpur region is as follows:
To study existing marketing strategies of company.
•
To study the promotional of product among field force and distribution channels.
•
To observe product and improvement (if needed) to meet a changing market need or
•
customer's taste. To study the sales ranking of the various products of Companies as per ORG IMS.
•
To check the potentiality of the doctors.
•
To undertake study of selected potential doctor on the basis of random sampling.
Scope of study: The study is related with District. In the project work there is enumerate the customer behaviour and the market scenario of the pharmaceutical products and also the factors the marketing of the pharmaceuticals.
13
3. Company profile
14
Company Profile
2A] History of company: MANKIND PHARMA is ISO 9001 leading pharmaceutical company having its registered office in Merut. MANKIND is a leading pharmaceutical company of India ranked 7th in all over India and 4th in North India as per ORG-IMS, & Prescription Audit, and March, 2006. As per Stockiest Secondary Audit March 2006, Mankind ranked 13th position in India. Mankind has growth rate is 66% annually and in top 20 fastest growing companies Mankind ranked at 7th position as per ORG-IMS in all over India. Also according to Prescription Audit (Medical Audit) Sep 2006 Mankind ranked State wise as
North India: 07 West India: 04
East India: 16 South India : 21
The Company was launched in year '1995' with a goal to serve the suffering humanity and to reach out even to those corners of the country where nobody had ventured before. From a modest beginning in 1995, MANKIND was able to achieve, a turnover of "550 corer" (latest achieving figures).
15
Spotli ght Giant steps from Mankind Mankind Pharma is one of the fastest growing domestic pharmaceutical companies, making a strong impact on the Indian pharma scene for the past decade since it came into existence.Sapna Dogra finds more
Impressive growth The story of Mankind Pharma is one of inspiration, persistence and perseverance. From a humble beginning in 1995 with a capital investment of about Rs 50 lakh, Mankind was able to achieve a turnover of over Rs 300 crore in the year 2005 from a modest Rs 3.5 crore in the year 1995. With a market share of about 1.75 percent of the Rs 25,000 crore domestic pharma
16
market, Mankind has a strong presence in antibiotics, antifungals, nutritionals, gastrointestinals, NSAIDs, antihelmintics and ED categories. They have many brands that ranked number one like Zenflox, Nuforce, Nurokind and Manforce. Other top brands include Bandy, Cefakind, Fynal, Mahacef, Omidom and Sparkind. Mahacef ranked first among the top launches of the last two years. When it started in 1995, Mankind had a presence in just two states. Today, Mankind covers the entire length and breadth of India. The company focuses on the grassroots by tapping small towns and rural areas through its team of about 1,900 medical representatives. It is doing fairly well even in cities like Delhi, Chennai, Mumbai. The company is aggressively expanding its domestic sales through its existing divisions, namely Mankind, Discovery Mankind and Life Star, as a business strategy. For instance, the Mankind division has a mixed bag of cardiovascular and diabetic products. Mankind’s domestic formulations business is expected to grow at a whopping 40 percent. The Discovery Mankind division was launched about two-and-a-half years ago. With a field force of 650 medical representatives and managers, already quite a few brands of Discovery Mankind have reached to the top five positions in their respective segments. They are Zenotin, Sparkind, Nobel Gel, Nuforce-3 Kit, Fynal, and Mahacef. The relatively new Life Star division is yet another sister concern of Mankind Pharma, which has inducted around 100 field people so far. The focus of Life Star division of Mankind is on ophthalmology and the dermal segment. Very soon, it will be entering into anti-malarial segment.
17
Driving force The driving force behind this rising juggernaut is the Managing Director, R C Juneja, whose vision and unrelenting perseverance has made Mankind a force to reckon with. In fact, his personal life is a source of inspiration to many. A science graduate, Juneja worked at Lupin as a Manager before he set up his own outfit. Reminiscing, Juneja says, Mankind was launched as a very small entity in Meerut with about 20 products, which mainly included vitamins, painkillers and antibiotics. "Even the name 'Mankind' was chosen deliberately because we wanted to serve mankind and
R C Juneja
Managing Director
suffering people. Our aim is to reach out even to those corners of the country where nobody had ventured before," reveals Juneja. What is the secret of such stupendous growth? "We believe in sharing our fortunes within the company amongst all employees," claims Juneja. The incentive policy is such that it makes our people work hard, adds Dr Sanjay Kaul, GM, Project Management Team. "We always think about the patients, the consumers and hence we have always lowered the price bands," informs Juneja, who also wants to build a charitable hospital in Meerut for the underprivileged.
18
Phases of Launching of Company:
2B]
1995 :
Launched Uttar Pradesh and Madhya Pradesh with 53 Medical Representatives and Managers Achieved a turnover of 3.8 crores in the first year.
1996: Launched Haryana and Punjab and the field force increased to 90. Ciprozol and Noragyl (ranked 1 st)* were launched. A turnover of 8.2 crores was achieved with 117% growth.
1997: With a field force of 140, company introduced Cope, Nobel and Zenflox, which turned out to be the leading brands. Zenflox became No. 1 * brand. Turnover increased to 15 crores with a growth of 77%.
1998: Turnover in this year was 24 crores with 61 % growth and field force grew to 180. Ranidom (ranked 2nd)* was launched.
1999: Field force increased to 250 with launch of Bihar. Turnover was 31 crores with a growth of 31 % Zenotin (ranked 2nd)* was launched.
2000: Achieved a milestone of 50 crores with a growth of 60%. Orissa and Maharashtra were launched and field force increased to 308. Omidon (ranked 2nd)*, Sparkind (ranked 3rd)* and Manforce (ranked 1 st)* were launched.
19
2001: Entered Andhra Pradesh, turnover reached to 67 crores at a growth of 34% and field force increased to 394.
2002: Major achievement of the year was launching of Discovery Mankind. Field force grew to 600 and turnover touched 85 crores with 27% growth. Bandy (ranked 2lld)* and Cefakind (ranked 2lld)* were launched.
2003: Achieved a turnover of 150 crores and growth of 77%. Field force increased to 950. Antihypertensive drugs were introduced. Launched Mahacef (ranked 3rd)* and Nurokind (ranked 1 st)*.
2004: Turnover jumped to 263 cores with 75% growth and the field force increased to 1660 in number. Moxikind-CV was successfully launched at a very economical price. *(ORG-IMS, Retail Store Audit, and March 2005)
2005: Celebrated a 'Decade of trust' with medical fraternity. Launched a new sister concern Lifestar Pharma Pvt. Ltd. Group turnover touched Rs. 350 Crore & field force grew to 2600. Won "Indian Express Pharma Pulse Award" for best overall performance.
20
2C] Achivements of the company: Seven brands Ranked No. 1 and around 15 brands in top 5 positions (as per ORG-IMS STOCKIST SECONDAR SECONDARY Y AUDIT, AUDIT, March 2007) form the core of the strategic brands bran ds of the th e company.
Brand
Composition
Nurokind
Rank
Methylco balamin
1
Zenflox
Ofloxacin
1
Manforce
Sildenafile Citrate
1
Nuforce
Fluconazole
1
Gatikind
Gatifloxacin
1
Zenflox-OZ
Ofloxacin+Ornidazole Ofloxacin+Ornidazol e
1
Nobel-MR
Nimesulide + Paracetamol + Tizanidine
Noragyl susp.
Moxikind - CV
1
Norfloxacin + Metronidazole Amoxycillin + Clavulanic acid + Lactic acid
2 2
bacillus
Cefakind
Cefuroxime Axetil
2
Omidom
Omeprazole
2
Ranidom
Ranitidine + Domperidone
2
Bandy
Albendazole
2
Bomikind
Ondansetron
2
Vomikind
Ondansetron
2
Amlokind-AT Amlokind-AT
Amlodipine + Atenolol
3
Unwanted
Mifepristone
4
Vertistar
Betahistine
5
Nobel-l00
Nimesulide with ? Cyclodextrin
5
21
The company has outperformed the growth of the Pharma industry in India by growing at the rate of more than 66% year after year and ranking among the top 10 most aggressive in new launches Pharma companies in India (ORG - IMS, March 2005). From a field force of 53 in 1995, today the total strength has reached to 2600 Medical Representatives and Managers working in almost all parts of the country. The company has well defined processes of Production, Quality control, Distribution, Marketing, Training and Human Resource Development. MANKIND has a very strong market presence in Antibiotics, Antifungals, Gastrointestinals, NSAIDs, Anthelmintics and Erectile Dysfunction categories with many brands ranked no. I such per (ORG-IMS, Retail Audit 2005). Mankind says their strength lies in our people. Won Indian Pharma Pulse Award for overall performance in the year 2004-2005. To meet the increased demand of the products MANKIND is setting up a state of the art Inject able manufacturing unit and a world class R & D centre in Paonta Sahib (H.P). The company has already purchased 60,000 Sq. mts. Land and shall be investing Rs. 70 crore to set up the facilities which shall be operational by Oct' 2006. The manufacturing unit in Paonta Sahib shall enjoy the benefits of excise exemption. Another unit under the banner of PHARMA FORCE having capsule and tablet manufacturing facilities, shall be operational in Paonta Sahib by June' 2005.
22
2.D] Network of Company: From two states in 1995, Mankind today covers the entire length and breadth of India. Our products are available across the country. Including the remote pockets serviced by 33 C & F agents & a comprehensive network of 3500 stockiest (Latest figure).
2.E] Company's Vision: Company's Vision is to become one of the most admired Pharma companies in India. And by year 2010 we want to be among the top 10 pharmaceutical companies of India.
2.F] company's Mission: Vision of the company is very simple and distinct. The company's mission is "Serve the Humanity".
2.G] Marketing strategy adopted by Mankind pharma : Marketing is the act or process of buying and selling in a market. According to Peter Drucker, Marketing is : "Marketing and innovation are the two chief functions of business. You get paid for creating a customer, which is marketing. And you get paid for creating a new dimension of performance, which is innovation. Everything else is a cost center : "Marketing is commercial functions involved in transferring goods from producer to consumer. The American Marketing Association suggests that Marketing is "the process of planning and executing the pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy individual and organizational goals."
Marketing Strategies: The strategies define general approaches you will take to meet your objective. To be most effective, marketing strategies should be integrated into marketing plan (which in turn should be part of the business plan). By integrating strategies into overall company plans, better business objectives can be achieved. Marketing strategies are the result of a meticulous market analysis. Marketing strategies adopted by Mankind Pharma. Mankind Pharma is leading pharmaceutical company having a range of product used as medicine. The company has the sound marketing strategy, which has helped the company to prosper. Since Pharma marketing is indirect marketing, company has developed strategy to sustain and to prosper in the market. The main features / characteristics company's marketing strategy mainly includes23
1.Company has framed the strategy keeping III core the prescribers. 2.Company has also framed strategy keeping III mind the retailers also. 3.Company has developed strategy keeping in view the Sales force that is the important weapon of the company. 4.Company has given prime importance to the patient I.e. direct customer by making economy in the product.
5A] Strategy for prescribes physicians: Physicians are the target customers for the company; hence the company is always trying to develop the strategy so that there is increase in the physicians. The strategy developed for the doctors mainly includes *
Conduction Conductio n survey.
*
Checking the potentiality of the doctors.
*
Positioning of the product.
*
Detailing of the products to the doctors.
*
Sampling
*
Regular follow-ups
*
Providing the informative literature.
*
Oragansing Health check-up camps.
*
Categorizing Doctor according to the prescription support.
*
Giving Gifts as token for gesture.
*
Sponsorships.
24
"A Quality market survey is the key for the success". Company always follows this principle strictly. Company has its own format of survey, which has to be filled at chemist retailer counter. The purpose of this mainly includes. *
To check the potentiality of the doctor in terms of patients checked,
prescription generated by the doctors, and rupees value of the prescription. *
To check the liking of the Doctor in particular molecule, combination.
*
To che check ck the the exi exist sten ence ce of the the com compe peti tito torr prod produc uctt & if if exi exist st what what is is the the
position of the competitor's product.
Positioning means placement of product in the market by identifying the needs of the customer. By Positioning the product the company is able to more precisely meet the needs of more customers and consequently to gain a higher overall level of share or profit from a market. And also positioning is depending on the seasonal requirements. In Pharma marketing the positioning of the product is done the basis of the indication in which the drug has the medicinal values and accordingly the product is promoted. Mankind Pharma also follows the same principle. However they have been categorized depending upon the benefits of the product in the disease or disorder.
For example : The drugs used in treatment of hyperacidity are categorized & Proton pumps inhibitors and is positioned and promoted to the Gastroenterologist mainly, who are specialist in the treatment of ulcer of stomach or intestine. After conducting the survey and determining the potentiality of the doctors, the next step is to meet the doctor personally and detail him the quality and benefits of the product." Mankind Pharma always believe in Productive call." Company appointed medical representative who perform this job by means of a visual
25
aid does the detailing of product to the doctors. Visual aid is a printed material, which visualizes the USP's (Unique selling point of the product) and important aspects of the product. As the name suggest the Visual aid helps to emphasis the benefits of the product visually. Company always tries to use the visual aid, which will magnify the benefits and USP,s of the product effectively. effectively. Sampling is a free distribution of the product to the doctor, so that he can ensure result of the products. Sampling is done to the physician and to the doctors through the M.R. so that the doctor can give the product to the patients and ensure the result of the product in the Patient. The sampling policy of Company is quite specific. This is another important marketing tool, which the company is using tactfully & skillfully. Regular follow-ups means doing something special or unique which will make the doctor to remind the product or conducting the activity that will continuously hammer the product in the doctor's mind. Regular follow-up mainly include sending a reminder card to the doctors, requesting the doctor to prescribe the product. Sending reminder cards also include drafting & sending a thanks-giving note to the doctor for extending their prescription support to the doctor. Company always give emphasis on importance of regular follow up. As the name suggest the Visual aid helps to emphasis the benefits of the product visually. Company always tries to use the visual aid, which will magnify the benefits and USP,s of the product effectively. effectively. Sampling is a free distribution of the product to the doctor, so that he can ensure result of the products. Sampling is done to the physician and to the doctors through the M.R. so that the doctor can give the product to the patients and ensure the result of the product in the Patient. The sampling policy of Company is quite specific. This is another important marketing tool, which the company is using tactfully & skillfully. Regular follow-ups means doing something special or unique which will make the doctor to remind the product or conducting the activity that will continuously hammer the product in the doctor's mind. 26
Regular follow-up mainly include sending a reminder card to the doctors, requesting the doctor to prescribe the product. Sending reminder cards also include drafting & sending a thanks-giving note to the doctor for extending their prescription support to the doctor. Company always give emphasis on importance of regular follow-up. The company have made it mandatory that, each and every medical representative should send reminder cards to the doctors. For the doctors located at distance, Company asked the M.R. to send postcards regularly that too hand written. As the mission indicates company's aim IS to serve humanity. Supplying informative literature is apart of it. Informative literature is supplied to the doctors; physician. The purpose behind supplying literature is to make the doctor's aware about the medicinal value of the product. Informative literature is very important tool in launching of a new product, as the product is new it is necessary to supply the informative literature with specific and valid references, so that the doctor is convinced about the product and its benefits. Sometimes literature is also provided with the aim of crating health aware Company use effectively both type of literature. This activity is carried out by the company to meet with mission of company. Company also arranges regular heath check-up camps are organized by company. Such type of camps serves dual purpose for the company. By organizing such camps company shows that they aim of creating health aware. At the same time through such camps company promote their products to doc. Recently company organized a BMD camp (bone Mineral Density Test Camp) with aim of determining the bone calcium level and to promote their product "Calcikind". Once the product is promoted to the doctor and regular follow-up is given the corn ask their medical representative to categorize the doctors on the basis of the prescribe support per month. Prescription Support is valued in terms of money value, accordingly the doctor categorize as : * Most, important doctors (M.LP.), (M.LP.), generating prescription-has rupees value 5000-10000 per month.
27
* Very important doctors (V.LP), generating prescription-has rupees value 2500 - 5000 per month.
General Category (G.P.) generating prescription having rupees up to 1000 - 2500 per month. This is supplementary method adopted by the company to boost up the sell. In this method depending upon the category of the doctors; Gifts are given as token fir gesture. Giving Gifts gives an impression in the mind of the doctor that they are special for the company. This IS another supplementary method adopted by the company to boost up the sell. In this method company gives sponsorship to the doctor for the IMA conference organized. Beside the main marketing strategy adopted by the company the company has also adopted the other strategies which mainly includes, *
Strategy related to Price.
*
Strategy related to the chemist.
In today's world medication is becoming costlier and people are looking towards economy in medication. Mankind has very well understood this human psychology and has skilfully developed strategy to use this psychology for marketing purpose. Mankind selling their product at the price economic to the patient purpose behind adoption of such strategy is to create liking in the mind of the prescribers / doctors & to create a long-term prescription support from the medicinal professionals. Another reason behind selling product at economic price is to influence the prescription behaviour of the prescribers / doctors. Chemist is also an important pillar in pharmaceutical marketing. All the efforts are in vain, if the doctors prescribe the product but it is not available with the chemist. Mankind has understand the importance of the chemist have in pharmaceutical marketing and has developed separate strategy keeping in core the chemist. *
Giving Discount on purchase.
*
Giving Additional of offers on on purc urchase. 28
*
Giving gifts on purchase.
*
Facility of expiry reimburseme ement. In this type of the marketing strategy Mankind is trying to influence the chemist
purchase behaviour. When it started in 1995, Mankind had a presence in just two states. Today, Mankind covers the entire length and breadth of India. The company focuses on the grassroots by tapping small towns and rural areas through its team of about 1,900 medical representatives. It is doing fairly well even in cities like Delhi, Chennai, Mumbai. The company is aggressively expanding its domestic sales through its existing divisions, namely Mankind, Discovery Mankind and Life Star, as a business strategy. For instance, the Mankind division has a mixed bag of cardiovascular and diabetic products. Mankind’s domestic formulations business is expected to grow at a whopping 40 percent. The Discovery Mankind division was launched about two-and-a-half years ago. With a field force of 650 medical representatives and managers, already quite a few brands of Discovery Mankind have reached to the top five positions in their respective segments. They are Zenotin, Sparkind, Nobel Gel, Nuforce-3 Kit, Fynal, and Mahacef. The relatively new Life Star division is yet another sister concern of Mankind Pharma, which has inducted around 100 field people so far. The focus of Life Star division of Mankind is on ophthalmology and the dermal segment. Very soon, it will be entering into anti-malarial segment.
29
4. MARKETING MIX
30
What is Marketing?
The term marketing has changed and evolved over a period of time, today marketing is based around providing continual benefits to the customer, these benefits will be provided and a transactional exchange will take place. The Chartered Institute of Marketing define marketing as ‘The management process responsible for identifying , anticipating and satisfying customer requirements profitability’
If we look at this definition in more detail Marketing is a management responsibility and should not be solely left to junior members of staff. Marketing requires co-ordination, planning, implementation of campaigns and a competent manager(s) with the appropriate skills to ensure success. Marketing objectives, goals and targets have to be monitored and met, competitor strategies analysed, anticipated and exceeded. Through effective use of market and marketing research an organisation should be able to identify the needs and wants of the customer and try to delivers benefits that will enhance or add to the customers lifestyle, while at the same time ensuring that the satisfaction of these needs results in a healthy turnover for the organisation. Philip Kotler defines marketing as ‘satisfying needs and wants through an exchange process’
Within this exchange transaction customers will only exchange what they value (money) if they feel that their needs are being fully satisfied, clearly the greater the benefit provided the higher transactional value an organisation can charge. P.Tailor .Tailor of www.learnmarketing.net www.learnmarketing.net suggests that th at 'Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer’ (P.Tailor 7/00)' 31
Marketing is a social and managerial function that attempts to create, expand and maintain a collection of customer. A market - focused, or customer focused, organization first determines what its potential customer desires, and then builds the product or services. Marketing theory and practice is justified on the belief that the customer uses a product/ service has a perceived benefit. Marketing touches everyone's life. The American Marketing association defines marketing as "the process of planning and executing the conception, pricing, promotion and distribution of the ideas, goods and services to create exchanges that satisfies individual and organizational objectives. Paul Mazur defined marketing as the creation and delivery of a standard of living to society. Marketing is a compressive term and includes all resources and a set of activities necessary to direct and facilitate the flow of goods from the producer to the consumer in the process of distribution
What is Niche Marketing ?
A niche market is a focused targetable portion (subset) of a market. By definition, then, a business a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. A niche market may be thought of as a narrowly defined group of potential customers. A distinct niche market usually evolves when a potential demand for a product or service is not met by any supply, or when a new demand arises due to changes in society, technology, or the general environment. Niche market ventures may become profitable even though they are by nature small in comparison to the mainstream marketplace, or monopoly. due to the benefits of specialization specialization and focus on small identifiable market segments; segments; even without the benefit of economy of economy of scale. scale. Niche markets may be ignored or discounted by large businesses due to what they consider to be small potential; this in turn is part of the process that makes the niche market available to smaller businesses. The key to capitalizing on a niche market is to find or 32
develop a market niche that has customers who are accessible, that is growing fast enough, and that is not owned by one established vendor already. vendor already.
Etymology The term "niche "niche"" (pronounced nich, nēsh, or nish) was first used by ecologists to describe a species' species' position and use of resources within its environment. When used in business the term implies a situation or an activity perfectly suited to a person or a given type of personality. This concept has been extended from persons to products on the market. Whereas a niche in the strict sense can be a working position or an area suited to a person who occupies it, the market niche is perfectly suited for a product of human labour.
Marketing in and for niche markets Niche marketing is the process of finding and serving profitable market segments
and designing custom-made products custom-made products or services or services for them. For big companies those market segments are often too small in order to serve them profitably as these market segments often lack economies lack economies of scale. Niche marketers are often reliant on the loyalty business model to maintain a profitable volume of sales.
Online niche marketing An often used technique for affiliate for affiliate marketers. By seeking out smaller segments of larger markets, a website can be developed and promoted quickly to uniquely serve a targeted and usually loyal customer base, giving the affiliate a small but regular income stream. This technique is then repeated across several other niche websites until a desired income level is achieved.
Marketing Mix The Marketing Mix. is a term used to describe the combination of tactics used by a business to achieve its objectives by marketing its products or services effectively to a particular target customer group. It is also referred to as the .4 Ps. . Product, Price, Promotion and Place, or the .7 Ps. . the 4 Ps with the addition of People, Process and Physical Evidence.
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Why it is important? Businesses need to make sure they are marketing . _ The right product to _ The right person at _ The right price in _ The right place and at _ The right time
For example, if you manufacture pens, and have decided to target schoolchildren, it would be more appropriate to market . _ Coloured ballpoint pens (product) _ At a low price (price) _ Selling them through newsagents and stationers (place) _ And promoting them through point of sale material (promotion) than it would be to market . _ Gold fountain pens (product) _ At a high price, including insurance against loss (price) _ Selling them through specialist outlets and jewellery stores (place) _ And promoting them in glossy magazines and Sunday Supplements (promotion)
What you should do? Make sure you have identified each of your target customer groups. If you have not already done so and would like further information on grouping your customers, take a look at our 10-minute Target Customer briefing. Now, with each customer group in mind, work through the steps outlined below.
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Product Marketing is about identifying, anticipating and satisfying customer needs. You need to be sure that your products and services continue to meet your customers. needs.
1. Carry out simple research by asking your customers . _ What they think of each product/service _ How satisfied are they with the quality _ How satisfied are they with any support services you may provide _ How effective it is in meeting their needs _ How they see their needs changing in the short and long term future
2. Carry out step 1 for each product or service you offer
3. Have a system for collecting and analysing feedback from your customers so that ideas are fed into a new product development process that is ongoing.
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4. Ask yourself what stage of the product life cycle your products or services have reached. The .product life cycle. is one way of looking at how the marketing mix links together. Products are said to go through stages . an introductory stage, a growth stage, a mature stage and a decline stage. At each stage a slightly different mix is appropriate .
5. Analyse the profitability of each product/service you offer. For more information on calculating this, take a look at the 10-minute 80/20 Rule. Which products/services make the biggest contribution or provide the highest profitability? What support services do you offer with each product? Could it be improved, adding value with little cost?
Place Place is the means of distribution you select depending on the type of product or service you are marketing. Your choice will impact on your pricing and your promotion decisions.
1. Are the customers for your products and services consumers or businesses? If they are consumers you will have three main options . 36
_ Selling to wholesalers who will sell to retail outlets who will sell on to the consumer _ Selling direct to retail outlets _ Selling direct to the customer If your customers are businesses you will probably sell to them direct through your own sales force.
2. If you sell through wholesalers and retailers, remember when you price your products that they will each want their own mark-up to cover their overheads. You will also need to promote your products and services to all members of the channel. Wholesalers and retailers will have to be persuaded to stock your product and end customers to buy them.
3. If you are selling to businesses you will have to cover the cost of a sales force. This can be an expensive overhead and will again impact on your pricing.
Price Price generates profit so is an important element of the mix. You need to consider -
1. What your target group of customers will be prepared to pay for your product or service. It is important not to set the price too low as customers may think there is something wrong with the product. Equally, if you set the price too high, customers may think that it is too expensive for the benefits offered. Think about how you have positioned. your product in terms of quality. This will help you to assess how to price it.
2. What it costs you to produce it. This will show you what you need to charge and not what you could or should charge. However, if you do not calculate what it costs you to produce your product correctly, the more you sell, the more you will lose. Don.t forget to make an allocation for costs such as selling which are usually treated as fixed.
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3. What your competitors charge. Look at your competitors. web sites, or simply phone them and ask for a price list or quotation.
Promotion The promotional mix is made up of 5 elements: _ advertising _ sales promotion _ public relations _ direct marketing _ personal selling
The combination of tools you use depends on the budget you make available, the message you wish to communicate and the group of customers you are targeting. To find out more about developing a promotional mix as part of your wider marketing mix, take a look at the 10-minute
Some of the following Products of the mankind pharma are pictured below.
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KALORIE ONE KALORIE ONE
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5. REASEARCH METHODOLOGY
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Research Methodology: Research is common parlance refers to a search for knowledge. Research can define as a scientific and systematic research on a specific topic. In fact, research is an art of scientific investigation. The dictionary meaning of research is as "a careful investigation or inquiry especially through search for the new facts in any branch of knowledge. Some consider research as movement, a movement from known to unknown. Research may be defined as a systematic and objective analysis and recording of controlled observations that may lead to the development of generalization of principles or theories resulting in prediction and possibly ultimate control of events. Methodology is often used in a narrow sense to refer to methods, technology or tools employed for the collection of data as well assist processing. This is also used come times to designate data collected to arrive at the conclusion. It provides answers to some of the major question while research like what must be done, how it will be done, what data will be needed, what data gathering devices will be employed, now sources of data will be analyzed to arrive at the conclusion.
3A] Issues Related to Research Study: 1.Research objectives 2.Research Methodology 3.Limitations.
3.B] Research Research Objectives: Objectives of the Project entitled as Marketing Strategy adopted by Mankind Pharma in Nagpur region is as follows:
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To study existing marketing strategies of company.
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To study the promotional of product among field force and distribution channels.
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To observe product and improvement (if needed) to meet a changing market need or
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customer's taste. To study the sales ranking of the various products of Companies as per ORG IMS.
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To check the potentiality of the doctors.
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To undertake study of selected potential doctor on the basis of random sampling.
3C] Scope of study: The study is related with District. In the project work there is enumerate the customer behavior and the market scenario of the pharmaceutical products and also the factors the marketing of the pharmaceuticals.
3D] Research Methodology: 3Da Research Design: Research Design is type of blueprint prepared depending on various types of blue prints available for the collection, measurement, and analysis of data. Research Design calls for developing the most efficient plan of gathering the needed information. The design of the a research study is based on the purpose of the study. A Research Design IS the specification of method and procedure for acquiring the information needed. It is over all operation pattern or framework of the project that Stimulate what information is to be collected from which source by what procedures research purpose may be categories into four categories as. i)
Exploration
ii)
Descriptive
iii)
Diagnosis
iv)
Experimentation 44
A flexible research design provides opportunity for considering many different aspects of a problem considering appropriate. The purpose of the research study is of the Descriptive type i.e. the complete random selection of the sample from the universe.
3Db Descriptive Study: Descriptive study is undertaken in many circumstance when there is interest in knowledge. The characteristic of certain groups such a age, sex, educational level, occupation or income, interested in knowing the proportion of in a given population who have behaved in a particular manner, making the projection of certain things or determining the relationship between two or more variable , descriptive study may be Descriptive Research is the formal designs, such as completely randomized designed, randomized block design ,Latin square design simple and complex factorial designs , In this project the Randomized sample design should be implemented for the research purpose. Descriptive data are commonly used for the marketing decisions, these Studies are well structure. Design in such studies must be rigid and flexible and must focus attention of following What the study is about and why it being made?
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What techniques of gathering data will be adapted?
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How much material will be needed?
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Where required data are can be found?
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Processing and analyzing of the data
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Reporting and findings.
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Descriptive study can be done with help of quantitative research. If descriptive information is needed then a quantitative study is likely to the needed. The choice of data collection techniques for this study includes. Descriptive study is likely can be done with help of quantitative research.
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Quantitative Research Design: The choice of data collection techniques for this study includes. Observation
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Experimentation
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Survey
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In this project, the survey method is adopted for collecting
the data by the various techniques as. 1)Personal interview - through correspondent 2)Telephone survey - through telephone 3)Questionnaire - By making the set of question & giving it to the respondent to collect the data.
3.E] Research Methodology Adopted:The Research Methodology adopted III the project IS purposive where information collected & utilized to study the marketing strategy adopted by Mankind Pharma. The Research Methodology adopted include following steps. a)Sampling. b)Data collection. c)Analysis & conclusion of data.
3Ea Sampling: Sampling is a tool, which helps to know the characteristic of the universe of population by examine only a small part of it. the sampling done in this project is deliberate sampling where 46
Nagpur market selected deliberately to check the effective launching of the medicinal product and the Response to the product after launching. An integral component of a research design is the sampling plan specifically, it address two questions. Sampling is also called as Random sampling" Or 'Chance sampling". Sampling design represent terms of the universe & has equal chance or probability of being same choosers. The selection of the items is independent of the person making the study that is the sampling operation is control objectively so that items will be chosen strictly at random probability.
The sample size are as follows: Doctor
100 Numbers
From City
15 Numbers
From Rural
85 Numbers
Chemist
50 Numbers
From City
15 Numbers
From Rural
35 Numbers
The study of the entire universe will be impossible on the account of limitation of time and money. Hence sampling becomes inevitable. A sample is only a portion of the universe of population. According to YULE, a famous statistician "the object of sampling is to get maximum information about the parent population with minimum effort." properly done sampling produce representative data of the entire population.
3Eb: Data collection Method. Collection of data is the first step in statistic the data collection process follows the formulation of research design including the sample plan, data, which can be secondary or primary, can be collected using variety of tools. Once the research has been designed, the next step is selection of the source of the data.
1) Primary Source of the Data: Primary source of the data refer to the data collected directly from the market place, traders. The data collected from the primary source is most reliable and helps to overcome the
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limitation of the secondary data. Primary data involves direct collection of the data by direct interaction.
Collection of primary data is by distributing the questionnaire to the selected samples to obtain their views on research by mail or through personal interview.
2) Secondary Source of the Data: It includes the information collected from the secondary source i.e. from already available data. It includes information collected from the printed journals, published reports, news item, sales report etc. Secondary data has been obtained through the various sources are as, * Technical Technical and trade journals, books, magazines and newspapers, report and publication of various associations connected with business and industry, industry, banks, stock exchange; etc.
* Public records and statistic, historical documents and other sources of published information. * Through the direct search on the Internet.
3 F] Limitations: 1)Any statistical technique employed has some inherent assumption, which mayor may not distort the references. 2)Analysis is made on the information provided by the Retailer and Doctors, & Medical representative 3)Doctors were unable to give the exact preferred product as there is a different medicine for the different diseases and it varies patient to patient 4)it is difficult to give the exact reason of low of particular product because it is simultaneously depends upon quality, price as well as on seasonal or atmospheric conditions. 5)The market research area is limited to Nagpur District only.
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6. DATA ANA ANALYSIS AND INTERPRETATION
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Data Analysis & Data Interpretation: After studying Marketing strategy of Mankind Pharma survey was conducted, in the first phase of survey the total number of doctors and their category was determined. the finding of surveys is as follows.
GP
50%
PAED
20%
Where; G.P - General Practitioner PAED - Paediatrics -
CARDO
GYNC
10%
15%
OTHER
5%
GYNC– Gynaecologist CARDO - Cardiologist -
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Analysis: From the above graph it shows that th at the G.P. G.P. Doctors having major involvement in the categorisation of the doctors. The survey was limited to sample size 100 doctors only.
Determining the potentiality of the doctors In the second phases, Doctor’ Doctor ’s potentiality was determined considering the following factors:No. of prescription generated by the Doctors/Day
Chart -2
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GP 4 0%
PAED 20%
CARDO 10%
GYNC 25 %
OTHER 5%
Analysis: In the prescription generation by Dr’s per day, the G.P. generated more prescriptions per day as he treats all types of patients than the other specialist person.
Chart-3 In this part of survey, how the Doctors get introduced to the product was determined. The following survey is expressed in the below graph.
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Source of introduction %(perc.)
MR 75 %
Drug index Book 10 %
ADV 10%
O t h er source 5%
Analysis: In this graph, it is observed that the majority of the Doctor come to know about the product from the MR.
Chart-4 Here the Doctors method of prescription generation was surveyed, where survey was conducted to find out whether Doctors prescribe medicines by Brand Name, Generic Name, or by contents. The findings of the survey are expressed in the above graph.
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B r a n d N am e 90 %
Generic Name 3%
Contents 7%
Analysis In this graph it is cleared that majority of doctors prescribed the product by Brand Name.
Chemist Survey Introduction of products to Chemist:
Chart-l Chemist survey was conducted to determine the influence of the chemist buying behavior of 54
the product and the influence of the company's strategy on the chemist buying behavior. In this survey, how chemist gets aware of the medicinal product was determined. The finding of the survey is expressed in the above pie-chart.
Analysis: From the pie chart it is clear that most of the Chemist get aware of the product through Medical Representative appointed by the company.
Preference of chemist to the product Chart-2 Here the chemist’s preferences to the product is determined. The finding of survey determined as above.
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Analysis: From the Pie-chart it is clear that, chemist like to keep product, product, which is prescribed by the Doctors.
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7. RECOMMENDATION OF THE STUDY
Recommendation of the study RECOMMENDATIONS Considering every aspect of marketing following suggestions are put forward: Apart from providing literature and magazines and gift to the doctor, a meeting of the doctor
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with the company's management personnel's & should organized Conference or special meeting with particular doctors where modem and new technique of the drug, mode of action of the drug, therapeutic use of the drug, dose of the drug, and side effect of the drug can be explained. Optimizing the condition of medical check up and health check up champ should be
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organized by the company to promote there medicines through the doctor. This is the best way to promote a company's medicines and build good relation with the doctors. Also arranging the Blood Sugar camp and other to introduced the chronic segment product in the consultants chamber. In literature and pamphlets use of drugs, dose, contents and contraindication should mention
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these are distributed to the doctor as well as the chemist. Free treatment and information should be provided when new drug launch in to the market it is use for availability of the product in market as well as to extend the sale of the product. Company may arrange the industrial tour for some special doctors to show the company &
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also the manufacturing units to make up companies image in the doctors mind if there any confusion regarding product quality. Some time chemist complained regarding expired medicine, medical representative must ask
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to chemist in every visit about expiry & near expiry product and company also make some arrangement for the same. Regular follow up to the Doctor from Medical Representative is very necessary to extends and maintain the sales of the medicines continuously. When company launch a new drug then company must provided a reference book to the
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Doctor is necessary. Sampling of the product should be specific and proper way to the doctor is necessary necessa ry..
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8. CONCLUSION
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Conclusion. After the detail analysis of primary and secondary data following conclusions are drawn:-
Mankind Pharma categories the doctor based on prescription generation per day.
In pharma market there is stiff competition still Mankind Pharma doing well in that competition on the basis of Price and field force.
The majo majorr sour source ce of intr introd oduc ucin ing g medic edicin ines es to the the Docto octorr,Med ,Medic ical al Representatives.
The majority of Doctors prescribed medicines by Brand Name not a Generic or content name.
The major parameter that are consider before prescribing medicines by the Doctors,that are
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Company Reputation
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Contents of Product
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Quality of Product
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Price of Product
Chemist will prefer to keep those medicines that prescribed by Doctor.Also keep those medicines that have scheme or benefits.
Mankind Pharma have an opportunity to make the presence inthe consultant's chamber by introducing new innovative Products with economy .
Mankind has major drawback is that they don't having there self R&D and also manufacturing plant. Mankind take action on this matter by introducing the R&D dept along with their manufacturing units.
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Mankind provides the world class ALU-ALU packing that kept the medicine very safe and having no effect on the medicines by the external atmosphere.
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9. BIBLIOGRAPHY
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BIBLIOGRAPHY
Books
1)
Marketing
Author
Publication
V.S.Ramaswami
Management 2)
3)
Of India
Marketing
Philips
Management
Kotler
Research Methodology
Prentice Hall
New Age International Publications.
C.R.Kothari
Website Name HRL
I
www.mankin www.man kindp dpharma.co harm a.com m www.pharmabi harm abiz.c z.com om
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10. ANNEXURE
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Questionnaire Dear Respondent. I am Pratik Ramkishor Jaiswal the researcher of this project studying in BBA III year DAIMSR Nagpur. For fulfillment of my Degree of Bachelor Business Administration I have take "Niche Marketing Policies Adopted Adopted By Mankind Pharma Specially in Nagpur Region".
Specialization in Marketing Particular study in "Nagpur Region". As you are the people of Medical Fraternity, you are more knowledgeable than common people in this field, for that I need very seconds along with your valuable opinion on the above Questionnaire. (Tick appropriate option of your choice Or please write in other specifically on your mark) I promise your information remain confidential and use only for my project purpose.
Thanking you Yours Faithfully
Mr. Pratik Ramkishor Jaiswal. Researcher
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Questioner involve in to two categories 1)Question for doctor 2)Questionnaire for chemist
Questionnaire for doctor
Dr. Name:Dr. Address:Ph No.:1)How do you come to know medicines of pharmaceutical company? Through MR
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Through Advertisement
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Through index book
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Other source
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2)How do you remember the brand names of medicines, as then are so many players in market? Conference participation of companies
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Due to visual folder
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Gifts given by MR
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Literature send by companies
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Continuous Fallow up
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AnyOther
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3)How do you prescribed medicines? By brand name
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By generic Name
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By contents
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4)
What do you do when chemist substitute your prescribed medicines?
Not accept at any conditions
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Accept if Rx product not available
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Accept some time
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Accept always
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5)Which brands are easy to recall? Brand representing molecule
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Brand easy to pronounce and reminder
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Brand representing companies name
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Brand unique and different from companies name
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6)What impact does visual folder play in Brand reminding? Very Important
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Important
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Average
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Not much
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What are the parameters you consider III medicines before prescribing? Company's reputations
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Relation with MR
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Quality of products
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Availability of the products
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Questionnaire for Chemist Chemist Name :Chemist Address :Ph No :1)How do you come to know about medicines? From Doctors prescription
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From MR
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Other source
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From Distributor
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2)Does Dr's prescribed any particular companies medicines or various companies? Same companies medicines
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Different companies medicine
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3)Which product do you prefer to keep in you shop? Product with high margin
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Product with scheme
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Product which Dr's. prescribed.
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