Pharma strategies

8/14/2019 Pharma strategies

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Presented By:

VarunViralMilan

Paresh

Kirit



Core strength of IndianIndustry

Disease patternAlternative medicinePatents

DoctorsHealth insuranceHealthcare infrastructureInformation technology



MNC-Domestic

Competition

MNC-Domestic

Collaboration

CHANGING FACE OF INDIAN PHARMA



Growth in disposable incomes & the

number of middle-class households

Expansion of medical infrastructure

Greater penetration of health insurance

Rising prevalence of chronic diseases

Adoption of product patents

Aggressive market penetration

Debut of organized retail chains

3.4 3.9

6.1

20

4.6

2000 2002 2004 2006 2015

RETAIL PHARMACEUTICAL MARKET IN INDIA

US $ billion

Source: India Pharma 2015,

McKinsey & Co



Intensity of Rivalry amongexisting competitors

•Lower fixed cost and highworking capital.

•Highly competitive

• Top five players have mere18% of market share•Duplicate medicines

Suppliers’ BargainingPower

Volume benefit occur

Inputs standard,available locally

Numerous suppliersswitching cost low

Suppliers can go forforward integration

Raw material costconstitute more than50% of the totalexpenses Pressure from Substitute

Products

•No substitute for the

medicines

•Biotechnology is a threat to

Buyers’ BargainingPower

•End consumers do not

have bargaining power

•Brand identity existsbut It’s in the hands of influencer (Doctors)

•Rice sensitivity is less

•Highly fragmentedmarket, so buyerconcentration v/sindustry is low

Threat of New Entrants

•Very low Barrier to entry

•Government policessupportive for entry butprice regulation exists.

•Economies of scale exists

•Proprietary technology andproduct will exist after 2005



1. Product- Portfolio relatedThe ability to be the first to enter the marketNew product for existing Geographies and Existing Products for

New GeographiesRight kind of portfolio mix as per the prevalent disease patternRight positioning

2. Well- trained sales force

3. Integration to widen business opportunity

4. R & D effort to provide competitive advantage

5. Information technology to derive cost advantage & to be

customer responsive



6. Good manufacturing practices to provide

competitive advantage in terms of quality

7. Strong over-the-counter(OTC) brands

8. Exports- allopathic & Ayurvedic products

9. Strategic Alliance & Acquisitions

10. Business Design & Strategy



Methods Awareness Comprehension Conviction Action

Journal advertising 1 2 2 2

Direct mailing, couriers 1 1 2 2

Promotional trials 1 1 2 3

Conferences and symposia 1 1 2 3

Clinical trials 4 2 2 1

Samples 1 4 4 1

Gifts 1 4 4 1

Newspaper advertisement 1 2 4 2

Free stand-alone

supplements

1 1 1 3

Telemarketing 1 2 4 4

Conference videos 1 1 1 3Video Magazines 1 2 3 4

Audio cassettes - - - -

Television 1 4 2 1

Group detailing 1 2 2 4

1-Most Useful; 2-Useful; 3-Not Useful; 4-Least Useful









High Employee turnover compare to other sectorsretention Strategies (Mfg. & Mkt.)Employee Development Program







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Pharma strategies