Pharmaceutical in Rural Market

8/13/2019 Pharmaceutical in Rural Market

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PHARMACEUTICAL IN RURAL MARKET

PREFACE

The project pharmaceutical in rural market give a i!ea that

although over "#$ o% the population live in rural area onl& '"$o% pharmaceutical ale are in thoe area( A large ection o% In!ia)

rural population *ith a riing level o% !ipoa+le income that i

hitherto uncovere! +& mo!ern me!icine *ill eventuall& come

un!er the am+it o% healthcare program an! *ill create a %reh

!eman! %or pro!uct !irecte! to*ar! in%ectiou !ieae(

The project conit te,t an! cae *ith In!ian conte,t an! eparate

chapter have +een !evote! to emerging pharmaceutical companie

gro*th in rural area an! variou trategie ue! +& pharmaceutical

companie in rural area to tappe! the rural market(

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OBJECTIVES OF THE PROJECT

To have kno*le!ge a+out the In!ian pharmaceutical

in!utr& in rural area(

To un!ertan! the large untappe! rural market o%

pharmaceutical in!utr&(

To un!ertan! *h& there i lo* ale in rural area a

compare to ur+an area(

To un!ertan! the pro+lem %ace! +& pharmaceutical

companie in rural area(

To un!ertan! the trategie o% pharmaceutical in!utr& ue!

in rural area(

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METHODOLOGY

In or!er to reali.e the tu!& the o+jective a coni!era+l& volume o% +oth

primar& an! econ!ar& !ata i nee!e!( It ha +een there%ore %oun! necear& to

viit an o%%ice *hich help poor people %or there me!ical treatment(

Primar& /ata ha +een collecte! through a viit to an o%%ice *hich

help poor people %or there me!ical treatment an! help me to gather relevant

!ata(

0econ!ar& /ata the in%ormation regar!ing the rural market ha +een

!ra*n %rom variou pu+lihe! ource( The !ata relating to pharmaceutical

compan& ha +een collecte! %rom compan& recor!(

Thi tu!& i necearil& +ae! on the limite! kno*le!ge an! little

practical e,poure the contraint o% reource an! time have %urther impoe!

limit to the tu!& +oun!arie(

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INTRODUCTION TO RURAL MARKET

Rural Market are !e%ine! a thoe egment o% overall market o% an&

econom&3 *hich are !itinct %rom the other t&pe o% market liketock market3

commo!it& market or La+or economic( Rural Market contitute an

important egment o% overall econom&3 %or e,ample3 in the U0A3 out o% a+out

1### countrie3 aroun! '### countie are rural3 that i3 non4ur+ani.e!3 *ith

population o% 55 million( T&picall&3 a rural market *ill repreent a communit&

in a rural area *ith a population o% '5## to 1####(

In recent &ear3 rural market have ac6uire! igni%icance in countrie

like Chinaan!In!ia3 a the overall gro*th o% the econom& ha reulte! into

u+tantial increae in the purchaing po*ero% the rural communitie( 7n

account o% thegreen revolutionin In!ia3 the rural area are conuming a large

6uantit& o% in!utrial an! ur+an manu%acture! pro!uct( In thi conte,t3 a

pecial marketing trateg&3 namel&3 rural marketing ha taken hape(

0ometime3 rural marketing i con%ue! *ith agricultural marketing8 the later

!enote marketing o% pro!uce o% the rural area to the ur+an conumer orin!utrial conumer3 *herea rural marketing involve !elivering

manu%acture! or procee! input or ervice to rural pro!ucer or conumer(

Alo3 *hen *e coni!er the cenario o% In!ia an! China3 there i a picture that

come out3 huge market %or the !evelope! pro!uct a *ell a the la+or

upport( Thi ha le! to the change in the min!et o% the marketer to move to

thee part o% the *orl!(

Alo rural market i getting an importance +ecaue o% the aturation o%

the ur+an market( A !ue to the competition in the ur+an market3 the market i

more than or a aturate! a mot o% the capacit& o% the purchaer ha +een

targete! +& the marketer( 0o the marketer are looking %or e,ten!ing their

pro!uct categorie to an une,plore! market i(e( the rural market( Thi ha alo

le! to the C0R activitie +eing !one +& the corporate to help the poor people

attain ome *ealth to pen! on their pro!uct categorie( Here *e can think o%

HLL 9no*3 HUL: initiative in the rural In!ia( 7ne o% uch project i the

5
http://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Stock_marketshttp://en.wikipedia.org/wiki/Commodity_marketshttp://en.wikipedia.org/wiki/Labor_markethttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Ruralhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Purchasing_powerhttp://en.wikipedia.org/wiki/Green_revolutionhttp://en.wikipedia.org/wiki/Agricultural_marketinghttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Stock_marketshttp://en.wikipedia.org/wiki/Commodity_marketshttp://en.wikipedia.org/wiki/Labor_markethttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Ruralhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Purchasing_powerhttp://en.wikipedia.org/wiki/Green_revolutionhttp://en.wikipedia.org/wiki/Agricultural_marketing


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Project 0hakti3 *hich i not onl& helping their compan& attain ome revenue

+ut alo helping the poor *omen o% the village to attain ome mone& *hich i

urel& going to increae their purchaing po*er( Alo thi *ill increae their

+ran! lo&alt& a *ell a recognition in that area( 0imilarl& *e can think o% the

ITC E4Chaupal3 *hich i helping the poor %armer get all the in%ormation

a+out the *eather a *ell a the market price o% the %oo! grain the& are

pro!ucing( In other vie* thee activitie are alo helping the companie

increae their +ran! value( 0o a it i given a+ove the igni%icance o% the

rural market ha increae! !ue to the aturation o% the ur+an market a *ell a

in uch con!ition the compan& *hich *ill lea! the *a& *ill +e +ene%ite! a

ho*n +& the ucce o% HUL an! ITC initiative(

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THE INDIAN RURAL MARKET

The rural In!ia ha a plethora o% opportunitie all *aiting to +e

harnee!( Not urpriingl&3 it ha +ecome the latet marketing +u..*or! %or

mot o% the


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CHARACTERISTICS OF INDIAN RURAL

MARKET

9A: ith the increaing o% rural people? income an! the enhancement

o% %armer) purchaing po*er3 the rural market econom& i %acing a ne*

opportunit& o% !evelopment( 7ur preent market ha the huge !evelopment

potential3 compare! *ith the tra!itional rural market marketing channel3 an! it

+ecome convenient an! 6uick( The enterprie mut ha the keen inight3

make the e%%ective u+!iviion o% rural market 3 earnetl& tu!ie the

characteritic o% !etaile! goal market 3 then the& can e%%ectivel& utili.e the

marketing strategy and develops the rural market.

The gradual increasing of farmers income and the

multi-level demand urge

the countryside consumer pattern to change, and the change

of farmer's

consumer idea is remarkable

Accor!ing to the relate! tatitical !ata3 in '##5 in ome rural area o%

our countr&3 inha+itant) average! governa+le income i "355; RM>3 a gro*th

o% '(2 time compare! to -@@;(the pecial !i%%icult %amil& alo +aicall&

ecape! %rom povert&( age accounte! %or ;2$ o% the %amil& gro income3

compare! to -@@;(*hich i a !ecreae o% 1(; percentage( Moreover3 the

propert& income an! the hi%t income gre* *ith tea!& tep( Along *ith the

gra!ual enhancement o% income level3 our countr& inha+itant) 6ualit& o% li%e

ha! the comprehenive improvement( Accor!ing to the relate! tatitical !ata3

in '##@3 the citie inha+itant average conumer !i+urement achieve!

"3@21RM>D the countr&i!e inha+itant average li%e conumer !i+urement

amounte! to '3555RM>( Accor!ing to the conumer clai%ication3 the

countr&i!e inha+itant) !eman! appear multi4level3 the !eman! tructure ha

the remarka+le change3 an! the %armer) conumer i!ea i alo gra!uall&

change( The !i+urement proportion o% %oo!3 clothing an! +aic utilitie

gra!uall& !rop +ut the !i+urement proportion o% the tranportation

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communication3 the me!ical health care3 the culture an! e!ucation

entertainment an! the houing rapi!l& rie (At the ame time3 the countr&i!e

inha+itant) conumer i!ea an! the conumer cutom are changing3 the cit&

an! countr&i!e inha+itant +ecome rational an! mature3 *ith conumer i!ea

alo !eveloping %rom el%4 accumulation to the appropriate conumption an!

cre!it conumption(

ith enhancement o% inha+itant conumption level an! pee!ing up o%

li%e rh&thm3 countr&i!e inha+itant) ervice conuming !eman! gro*

rapi!l&( The concrete mani%estations are:

9-:The inhabitants domestic electric appliances renewal

step speeds up. The family appliance o% comparativel& high

technolog&3 high 6ualit& an! lo* price 9color%ul televiion3 *aher3 air

con!itioning an! o on: can +e %oun! in the common %amilie3 *hich +ecome

the hot pot o% conumption in preent tage(

9': The health care disbursement rises increasingly. Along

with the increase of the inhabitant living standard, they also

pay more attention to their own health, health care

consciousness strengthen increasingly, health care

disbursement also correspondingly increasing.

91: The transportation communication epends is fast

growing. Along with !uick change of the transportation

infrastructure construction, the travel conditions of

countryside inhabitant have remarkable improvement"

#oreover, along with the populari$ation of countryside fied

telephone and mobile phone, the countryside communication

enterprise also obtains the opportunity of the swift

development.

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9%& The rural consumer market is progressing toward

normali$ation(, which has presented the buyer market

characteristics )ith the advent of the information age and

the rapid development of the rural communications, the ruralconsumer market is moving toward information(. According

to the survey investigations, in recent years, for the fied

telephone, mobile phone, T* channels, networks and other

modern communication facilities in rural areas, the coverage

population is rapidly increasing: +n , /hina's

administrative villages with fied phones have already

reached more than 012, the radio and television network

nearly covered all the administrative villages.

e can ee that the rural market) in%ormation channel i +eing

gra!uall& unimpe!e!3 the in%ormation tranmiion pee! i alo gra!uall&

pee!ing up3 in certain countr&i!e3 and its information propagation

velocity already corresponds to city market. At present, the

rural market is nearly the same as the city market.

/ommodity is various, and the source of goods is abundant.

3early all the daily necessities, the manufactured item for

daily use, the durable consumable and so on, the farmers all

can nearby buy. Along with further enhancement of the

income, compared with the traditional big city, the rural

market has relatively high scale of new latest wealthy

community. This community is younger than the traditional

wealthy community, which is more thoughtful and more open.

To some degree, in the rural market, the supply and demand

relation has presented the buyer market characteristics.

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SOME MYTHS ABOUT THE INDIAN RURAL

MARKET

Myth No. 1: In the a%termath o% ur+an4rural convergence3 rural market

*ill +e mainl& an e,tenion o% ur+an market an! *ill eventuall& em+race the

pro!uct an! +ran! li%et&le o% the latter3 upporte! +& higher !ipoa+le

income3 aggreive retail promotion an! a!vertiing(

The Re!"ty: Rural market repreent a !itinct !&namic in ho* the&

come into +eing an! make uni6ue !eman! on ho* the pro!uct i !eigne!

an! ho* the +ran! i poitione! an! promote!( =reater the trategic attention

to thee uni6ue !eman!3 aure greater the chance o% pro!uct) ucce in the

rural market(

Myth No #:The market i.e can +e etimate! +ae! on mere !emographic

interpolation o% current penetration level an! ale volume an! that even

%ringe preence or limite! acceptance o% li%et&le conumer pro!uct in rural

market *oul! tranlate into %uture market potential to +e tappe!(

The Re!"ty:


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lan! o*nerhip ma& till +e the major !eci!ing %actor accounting %or ocial

!i%%erentiation3 the& !o not &iel! reciprocal cohort +ehavioral pattern3 *ith

repect to conumption pattern3 purchaing !eciion an! prioritie o% pro!uct

o*nerhip(

Myth No.%:That rural market are highl& price4inelatic an! onl& uite!

%or )value4%or mone&) pro!uct a againt premium 6ualit& pro!uct(

The Re!"tyF /epite lo*er inci!ence o% premium pro!uct purchae3 the

rural conumer acro all income egment e,hi+it marke! propenit& to

pen! on premium high 6ualit& pro!uct *hich are +acke! +& trong +ran!

value3 *here the& correpon! to their o*n apiration an! 6ualit& nee!( The

pro+lem reall& lie in market not +eing a+le to o%%er a premium pro!uct in the

peci%ic conte,t o% rural !eman!

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STRATEGIES FOR RURAL MARKET

&A) Product Strategy7ur countr& rural market i relativel& pecial3 *hich ha the !i%%erent

conumer communit& in the !i%%erent ph&iographic region an! the !i%%erent

conumer communit&3 ha the !i%%erence conumer !eman!( There%ore3 *hen

the enterprie launche pro!uct to the rural market the& houl! pa& great

attention to meet the countr& conumer) nee!3 emphai.ing !i%%erence

reearch( The enterprie nee! to take meet %armer) e,pene !eman! a the

gui!ance3 then a!jut pro!uct tructure3 increaingl& improves product!uality, ameliorates product function and develops

practicable, solid which are suitable for the rural market. At

the same time, product packing and brand also should

conform to farmer's consume psychology and the consumer

custom.

4ere what need to be emphasi$ed is that the enterprise

must base on the enhancement of product's basic function

and the reduction of unpractical accessional function, which

can not only reduce the product cost and price, but also can

help the dissemination of enterprise's brand effect. Although

the enterprise also invests the product advertisement in the

countryside, the present stage countryside information mainly

depends on the oral dissemination, and in the short-term

dissemination surface is very big. 5egarding the product's

!uality, the inhabitant favors vicinage's approval rather than

the advertisement effect. +f the good !uality product obtains

the vicinage's approval, it will !uickly get the approval from

the wider region.

&B' Price Strategy

Preentl&3 thi article +elieve the lo* price trateg& i the ke& %actor*hen !eveloping the rural market( =enerall& peaking3 our countr&

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inha+itant) income level i till ver& lo*3 the countr& inha+itant conumption

till take thri%t& a primar& matter( hen purchae pro!uct3 the pro!uct price

i the mot important coni!eration %actor to the countr& inha+itant( There%ore3

*hen entering the market3 the enterprie houl! coni!er a!opting lo* price3

although the hort4term +ene%it i lo*er3 once ei.e the market3 the

countr&i!e huge conume potential *ill +e a+le to +ring the long4term high

pro%it to the enterprie( In +rie%3 *hen the enterprie !evelop the rural market3

fiing a product price is a very essential problem. They must

considers the countryside consumer characteristics, and

measures the enterprise6s own benefit, competitor and market

demand and so on, finally fies the most reasonable product

price.

&C) Channel Strategy

hen chooing marketing channel3 *e houl! %ull& coni!er the

differences between the rural market and the city market.

7ecause the rural market's region is broad, the consumption is

separate, its marketing channel is comparatively sole, namelytop-down supply relations, once forms the !uite stable supply

relations, the loyalty of the downriver dealer to the upstream

is !uite high. Therefore, to some degree, the selection of

dealer determines whether the enterprise will develop the

rural market successfully or not. )hen choosing the dealer

the enterprise must not only inspect its fund strength, but also

must inspect its construction of sales network , the storageand transportation facility, the oral traditions in the local and

so on, then enables it to play the positive role in the rural

market.

&D) Promotion and Service Strategy

The tra!itional promotion mean mainl& inclu!e the elling peronnel3

the a!vertiement3 an! +uine promotion( >ecaue the rural market i

comparativel& !ipere!3 the local !i%%erence i big" the cost of the

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traditional selling personnel is too high. #oreover the result is

very poor. Therefore the selling personnel are not suitable for

the development of the rural market.

&") Advertisement promotion

Along *ith the rapi! !evelopment o% the countr& communication

enterprie3 the in%luence o% the televiion a!vertiement on the %armer i alo

+ig( In vie* o% thi kin! o% ituation3 the *ell4kno*n enterprie nee! to %ocu

on the mot +aic unit3 uch aF the count& eat) ne* an! the village an!

to*n) ne*3 then ue it to propagan!i.e3 o+tain %armer) attention an! the

trut( In a!!ition3 the *all a!vertiement i one uni6ue marketing metho! o%the rural marketF It %orm i imple3 the cot i lo*3 pointe! i trong3 an!

operate impl&3 the maintenance time i long3 an! the !iemination cope i

+roa!( ecaue the

countr&i!e conumer ha relativel& thick competitive p&cholog& an! +lin!l&

con%orma+le p&cholog&3 imultaneoul& the countr&i!e houingcharacteritic caue the neigh+or an! the relative an! %rien! %re6uentl& !rop

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aroun!3 cone6uentl& the in%ormation i e,tremel& open3 an! the oral

!iemination i the main !iemination *a&( There%ore3 i% ome ha ol! an&

goo! thing on cre!it3 it *ill prea! ver& 6uickl&3 an! it can lea! the large

6uantitie o% people to purchae or tick3 then %orm the goo!(

(HY THERE IS A NEED TO FOCUS ONRURAL AREAS)

The rural In!ian market3 *hich account %or nearl& "#$ o% the total num+er o%

houehol! in the countr&3 *itnee! a '5$ annual gro*th in conumer

!ura+le %or '##B3 *hile the ur+an market re%lecte! an annual gro*th rate o%

"4-#$( Let) look at the %actor3 *hich make the rural market an attractive

propoition %or the automotive in!utr&(

1. L*+e ,-to/e* 0e

ith a total population o% more than "5# million3 an! covering aroun! @5$

o% the countr&3 rural area have a huge cutomer +ae( Although !ue to the

increae in ur+ani.ation3 the rural population a a percentage o% the

countr&) total population i e,pecte! to %all3 +ut in a+olute term3 it

continue to comprie a large pool o% cutomer an! i etimate! to touch

@## million +& '#'#(#. I,*ee2 ",o/e !e3e!

There have +een everal %actor that have reulte! in an increae in income

level in the lat %e* &ear( Accor!ing to etimate3 the percentage o%

houehol! earning le than U0/- *a a high a @;$ in -@B53 *hich i

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etimate! to come !o*n to '@$ +& '#'5( 0imilarl&3 the percentage o%

houehol! earning *ithin U0/' to U0/5 i e,pecte! to increae %rom -$

in -@B5 to '#$ +& '#'5(

Let) look at ome %actor that *ill reult in increae! purchaing po*er in

rural In!ia(

'I,*ee " M""/-/ S-44o*t P*",e &MSP':Recor!

%oo! grain pro!uction 9'1# million tone %or


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$

.

E0!e* -,h 7","+

7ver the &ear3 the government ha taken variou tep to provi!e rural

area *ith a trong cre!it tructure( Regional Rural >ank 9RR>: have

+ecome a crucial part o% the rural cre!it tructure in In!ia( The& *ere

create! in -@"5 *hen the nee! %or a tronger intitutional arrangement %or

provi!ing rural cre!it *a %elt( In!ia currentl& ha aroun! -@# RR> *ith

more than -23### +ranche(

In a!!ition3 cheme uch a the Kian Cre!it Car! 9KCC: aim to provi!e

cre!it upport to %armer in rural area( Currentl&3 there are "' millionenrolment un!er KCC in rural areaD urpriingl&3 thi e6ual the num+er

o% cre!it car! uer in ur+an area(

Cooperative ocietie have +een the tra!itional ource o% %inance in rural

area( Thee ocietie have a mem+erhip o% over -'# million rural

people( 7ver he lat %e* &ear3 che!ule! commercial +ank have alo

e,pan!e! their net*ork3 *hich currentl& tan! at --31;" o%%ice in rural

area(


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all4*eather roa!( The target i to contruct -2;3### kilometer o% rural

roa! an! upgra!e another -@;3### kilometer(

Telecom penetration i a %air repreentation o% in%ratructure a!vancement(

It ha increae! igni%icantl& in rural area in the lat !eca!e *ith thee

market contri+uting over "#$ to the total gro*th in the countr&)

u+cri+er +ae( In coming &ear3 invetment in rural telecom in%ratructure

are e,pecte! to reult in More than '5# million u+cri+er +&


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PHARMACEUTICAL

INDUSTRY

PHARMACEUTICAL INDUSTRY

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The pharmaceutical in!utr& i contantl& +eing challenge! to meet the

riing tan!ar! o% 6ualit& an! to compl& *ith rigorou regulator&

re6uirement( Regulator& re6uirement inclu!e


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%ailure to compl&3 hall +e u+ject to regulator& action( In%o 0trength? 0mart

Enterprie 0uite re!uce non4compliance rik +& creating a tranparent

environment %or proactivel& i!enti%&ing3 tracking an! reolving 6ualit& iue(

R"9 M+e/et: In%o 0trength? 0mart Enterprie 0uite

provi!e an integrate! an! %le,i+le %rame*ork %or !ocumenting an! aeing

rik3 !e%ining control3 managing au!it3 i!enti%&ing iue an! implementing

recommen!ation an! reme!iation plan( Pharmaceutical Challenge


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!rug manu%acture an! technolog&( It rank ver& high in the thir! *orl!3 in

term o% technolog&3 6ualit& an! range o% me!icine manu%acture!(


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The pharmaceutical in!utr& in In!ia i poie! to gro* to U025

+illion +& '#-5( The gro*th *ill emerge %rom RJ/ ervice3 e,port o% +ulk

!rug an! generic3 increae! ale in therapeutic area relating to *omen)

an! chil!ren) !ieae an! +etter penetration into the market(


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-( =la,o4ellcome 5("

'( Cipla 2("

1( Ran+a,& 2(#

2( Hoecht Marion Rouel '(B

5( 0un Pharma '(5

;( &!u Ca!ila '(2

"( Knoll Pharma '(1

B( ockhar!t4Merin! '(1

@( P%i.er '(-

-#( Nichola Piramal '(-

';


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CHARACTERISTICS OF INDIAN


The trange contour o% In!ia) me!icine market arie partl& %rom the

countr&) ucce in %otering *i!e4open competition3 *hich ha lo*ere!

price3 ma!e !rug *i!el& availa+le an! erve! a a mo!el %or other

!eveloping countrie( The pharmaceutical market in In!ia i etimate! at U0

;(B +illion in '#-#( It account %or B$ in term o% volume o% *orl! pro!uction

an!-(-$ in term o% value( =lo+all& it rank 2th in volume term an! -1th in

value( The market i highl& %ragmente! *ith more than '#3### manu%acturer(

Ho*ever3 onl& '5# o% them are in the organi.e! ector repreenting "#$ o%

the pro!uction(

The market i intenel& competitive( The market hare o% the top

ranking compan& i 5("$( Mot o% the Multi4National Companie 9MNC?:

operate in In!iaD +ut onl& 2 %igure in the top -#( The top -# pharmaceutical

companie together cover aroun! 1-$ o% the total market(

0ome +aic characteritic o% the In!ian Pharmaceutical In!utr& areF

1' C-!t-*! D"3e*"ty:

e are a countr& o% at leat %ive ethnic group3 i, !i%%erent religion3

-; major language3 522 !ialect an! a lan!ma o% 13B"3';1 6 km 4

e6ualing all o% Europe put together an! *ith ome tate larger in i.e than

ome major European nation( Get our marketing people !evie trategie that

appeal to a varie! a cutomer +ae a the aggreive Punja+i3 the emotional

>engali an! the intellectual Tamilian amongt other( In thi conte,t3 it i

intereting to note ho* marketing peronnel *ho con!uct pro!uct launche

an! +rie%ing eion3 intelligentl& alter their approache to ell their i!ea at

!i%%erent venue roun! the countr&(

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0uita+l& aggreive in the North3 appealing to emotion in the Eat3 to

logic in the 0outh an! to the intellect in the et Thi a+ilit& to tailor

approache to uit cutomer trait an! p&che i an a+ilit& that can +e

e%%ectivel& leverage! in international marketing

#' I2e;-te he!th,*e 4e2:

In!ia ha conitentl& un!er pent on healthcare an! rank amongt the

lo*et healthcare pen!er in the *orl!( It continue to un!er pen! vi44vi

the recommen!ation ma!e +& variou committee et up to a!vie on

improvement o% healthcare in the countr&( That invetment in ocial

in%ratructure *ill pre!icate utaina+le economic !evelopment i recogni.e!+& economit an! +ureaucrat alike3 &et thee invetment have +een !ela&e!

%ar too long an! *ill oon +egin to mani%et an! +ur!en the nation *ith high

ocial an! economic cot(

A-! D*-+ E54e2"t-*e Pe* C4"t

(

'B


29/64


$' Vo!-/e D*"3e:

The In!ian pharmaceutical market i eentiall& volume4 rather than

value4!riven( Even a light variation in volume ale ha a !irect +earing on

the overall gro*th o% the market(

%' Re+"o! 2"ee 4tte*:

=ro*th o% population in In!ian u+4continent an! other !eveloping

Aian countrie *ith imilar !ieae pattern an! purchaing po*er coul!

provi!e opportunitie %or In!ian pharmaceutical in!utr& to %ocu on

!eveloping molecule in thee market( 0ucce %actor in thi egment *oul!

+e !epen!ent on the a+ilit& to tailor !rug to uit regional !ieae pro%ile cot

e%%ectivel&(


30/64


PHARMACEUTICAL INDUSTRIAL

TRENDS

The pharma in!utr& generall& gro* at a+out -(54-(; time the =ro

/ometic Pro!uct gro*th

(

=lo+all&3 In!ia rank thir! in term o% manu%acturing pharma pro!uct

+& volume(

The In!ian pharmaceutical in!utr& i gro*n at a rate o% @(@ $ till

'#-' an! a%ter that i e,pecte! to gro* at @(5 $ till '#-5(

In '#-#4--3 In!ia e,porte! !rug *orth U0"(' +illion in to the U0

an! Europe %ollo*e! +& Central an! Eatern Europe3 A%rica an! Latin

America(

The In!ian vaccine market *hich *a *orth U0;;5 million in '#-#4

-- i gro*ing at a rate o% more than '#$

The retail pharmaceutical market in In!ia i e,pecte! to cro U0 -'4

-1 +illion +& '#-5(

The In!ian !rug an! pharmaceutical egment receive! %oreign !irect

invetment to the tune o% U0 -(21 +illion %rom April '### to

/ecem+er '#--(

DRUGS LA(S

1#


31/64


At preent the %ollo*ing Act an! Rule ma!e there un!er that govern the

manu%acture3 ale3 import3 e,port an! clinical reearch o% !rug an! cometic in

In!ia(

The /rug an! Cometic Act3 -@2#(

The o+ject o% thi Act i to regulate the import3 manu%acture3 !itri+ution an!

ale o% !rug(

The Pharmac& Act3 -@2B(

The aim o% thi la* i to regulate the pro%eion o% Pharmac& in In!ia(

The /rug an! Magic Reme!ie 97+jectiona+le A!vertiement: Act3 -@52

Thi Act i meant to control the A!vertiement regar!ing !rug( It prohi+it the

a!vertiing o% reme!ie allege! to poe magic 6ualitie an! to provi!e %or

matter connecte! there*ith(

The Narcotic /rug an! P&chotropic 0u+tance Act3 -@B5

Thi i an Act to conoli!ate an! amen! the la* relating to Narcotic /rug3 to

make tringent proviion %or the control an! regulation o% operation relating to

Narcotic /rug an!(

INDIAN RURAL PHARMACEUTICAL

INDUSTRY

1-


32/64


Although over "#$ o% the population live in rural area onl& '#$ o%

pharmaceutical ale are in thoe area( A large ection o% In!ia) rural

population *ith a riing level o% !ipoa+le income that i hitherto uncovere!

+& mo!ern me!icine *ill eventuall& come un!er the am+it o% healthcare

program an! *ill create a %reh !eman! %or pro!uct !irecte! to*ar!

in%ectiou !ieae(

&=' tot! !e = o7 G*o6th #118#1#

U*0 "5 ''

Met*o '1 '5

Cla I '5 11

Cla II B -2

Cla III -- -#

Cla I B 4B

V"!!+e '5 -1

Hence3 the greatet market potential e,it in In!ia) interior an! rural

market *here the gro*th rate i etimate! at '5$ per &ear( Currentl& the

reach o% allopathic me!icine in rural area i onl& ';$( The reach i poor !ue

to non4availa+ilit&3 ina!e6uac& an! un!erutili.ation o% me!ical %acilitie in

village( 7nce the in%ratructure 9+oth ph&ical 4 roa!3 communication an!

health 4 hopital3 primar& health center: improve a it mut3 rural market

%or me!icine *ill open up(

Aroun! "## million people3 or "#$ o% In!ia? population3 live in ;3

'"3### village in rural area( @#$ o% the rural population i concentrate! invillage *ith a population o% le than '###( 7% thi a large percentage o%

village !o not even have the %acilit& o% roa! or rail tranport an! have to

travel mile on motorc&cleOcooter3 +ic&cle or +ullock cart to reach the

nearet progreive village %or meeting their +aic neceitie(

herea the tate government J N=7 have ma!e e%%ort to*ar!

provi!ing %e* o% thee +aic neceitie it i the


33/64


living con!ition to thi !eprive! cla through their rural marketing e%%ort( In

the proce thee companie have truck gol!3 +oth in term o% pro%ita+ilit& a

*ell a pro!uct penetration in to the rural p&che3 la&ing the %oun!ation o% a

long4term +ene%it to thee companie(

Ho*ever3 there ha +een a conpicuou a+ence in thi !irection +& the

Pharmaceutical Companie3 *ho are uppoe!l& the health provi!er o% the

nation( It *oul!3 o% coure +e un%air3 not to mention the pioneering e%%ort o% a

%e* Large pharma houe in thi !irection e(g( =la,o0mithKline3 /a+ur an!

Alkem etc( *ith varia+le uccee( The reaon %or thi pathetic lack o%

interet are man&3 the non4e,itence o% !itri+ution channel3 retail outlet or

%or that matter even 6uali%ie! !octor *ho are prepare! to !o &eoman? ervice

to their countr&men3 living in !eep interior o% the countr&3 +& acri%icing their

o*n a *ell a their %amilie? com%ort an! interet(

In a!!ition to thee

%actor one coul! perhap alo

a!! that majorit& o% the +ig

companie have more than

-### ale peronnel3 +ae! at

virtuall& ever& /itrict Hea!

uarter o% the tate3 *ho

travel to virtuall& all uch

interior market *here roa! or

rail tranportation i availa+le an! hence there i cope to make the pro!uct o%

their companie availa+le in thee interior market( Un!ertan!a+l& thee

companie !o not perceive an& nee! %or %urther penetration into more remote

village(

KEY PLAYERS IN INDIAN RURAL


11


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There are everal national an! international pharmaceutical companie that

operate in rural In!ia( Mot o% the countr&) re6uirement %or pharmaceutical

pro!uct are

met +& thee

companie(

0ome o%

them are

+rie%l&

!ecri+e!

+elo*F

&1' R05y L0o*to*"e L"/"te2 i the +igget

pharmaceutical manu%acturing compan& in In!ia( The compan& i ranke!

at the Bth poition among the glo+al generic pharmaceutical companie an!

ha preence in 2B countrie inclu!ing *orl! cla manu%acturing %acilitie in

-# countrie an! erve to cutomer %rom over -'5 countrie( Ran+a,&

La+oratorie '##@4'#-# 1 Net Pro%it Reult ho*e! a pro%it o% R --;(;

crore a compare! to R 1@2(5 crore !e%icit3 recor!e! !uring the

correpon!ing perio! lat %ical(

' D*. Re22y> L0o*to*"e manu%acture an! market a

*i!e range o% Pharmaceutical +oth in In!ia an! a+roa!( The compan& ha ;#

active pharmaceutical ingre!ient to manu%acture !rug3 critical care pro!uct3

!iagnotic kit an! +iotechnolog& pro!uct( The compan& ha ;


35/64


&$' C"4! i an In!ian pharmaceutical compan& reno*ne! %or the

manu%acture o% lo* cot anti AI/0 !rug( The compan&) pro!uct range

comprie o% anthelmintic3 oncolog&3 anti4+acterial3 car!iovacular !rug3

anti+iotic3 nutritional upplement3 anti4ulcerant3 anti4athmatic an!corticoteroi!( Cipla alo o%%er other ervice like 6ualit& control3

engineering3 project appraial3 plant uppl&3 conulting3 commiioning an!

kno*4ho* tran%er3 upport(


36/64


In!ia) Rural Pharmaceutical Market 9-' Month En!e!

anuar& '#--:

Co/4yS"e &

B"!!"o'M*9et Sh*e &='

G*o6th

Rte &='

Total Pharma

Market;(@ -##(# @(@

Cipla (1; 5(1 -1(2

Ran+a,& (12 5(# --(5

=la,o 0mithkline ('@ 2(1 4-('

PiramalHealthcare

('" 1(@ --("

&!u Ca!ila ('2 1(; ;(B

0ourceF 7R= IM0

1;


37/64


1"


38/64


CHALLENGES FACE BY

PHARMACEUTICAL INDUSTRY IN RURAL

AREAS

Ever& in!utr& ha it o*n et o% a!vantage an! !ia!vantage un!er

*hich the& have to *orkD the pharmaceutical in!utr& i no e,ception to thi(

0ome o% the challenge the in!utr& %ace areF

9-: Regulator& o+tacle

9': Lack o% tranport %acilit&

9': Lack o% proper in%ratructure

91: Lack o% 6uali%ie! pro%eional

92: E,penive reearch e6uipment

95: Lack o% aca!emic colla+oration

9;: Un!er!evelope! molecular !icover& program

9": /ivi!e +et*een the in!utr& an! tu!& curriculum

1B


39/64


EPECTAION OF PHARMA INDUSTRY

IN RURAL AREAS FROM GOVERMENT

/r&ing pipeline o% ne* !rug3 increae! RJ/ e,pen!iture an! increae!

preure in the !evelope! nation to +ring the health care cot !o*n ha

compelle! MNC to o%%hore RJ/ %urther( hile In!ia i perceive! a an

attractive !etination to outource RJ/ *ork !ue to it lo* cot an! high

6ualit& capa+ilitie3 to put In!ia in a lea!ing poition3 there i a nee! to

provi!e impetu to uch activitie in the %orm o% ta, an! %ical +ene%it( hile

currentl&3 *eighte! ta, +ene%it i availa+le %or in4houe RJ/3 there are no

peci%ic +ene%it availa+le to unit engage! in the +uine o% RJ/( In thi

regar!3 the =overnment can pla& it role +& provi!ing +ene%it to unit

engage! in the +uine o% RJ/ +& *a& o% !e!uction %rom pro%it linke! to

invetment(


40/64


E5te2 t5 ho!"2y to ho4"t! 0eyo2 *-*! *e

The 6ualit& an! lo* cot a!vantage ha +oote! the me!ical tourim in In!ia(

In!utr& report ugget that a+out -5#3### me!ical tourit viit In!ia ever&

&ear(


41/64


H*/o"e 4*","+ *e+-!t"o

Tran%er pricing i another area nee!ing pecial attention %or pharmaceutical

in!utr&( hile tran%er pricing regulation e,pect companie !ealing in active

pharmaceutical ingre!ient 9API:O%inihe! !rug %ormulation 9


42/64


coul! coni!er rationali.ing the !ut& tructure +& making it at par *ith !ut& on

%inal output( Another !eman! ha +een to increae the a+atement limit allo*e!

%or computation o% e,cie !ut& on me!icament3 %rom 15 to 25 percent(


43/64


p&che o% the rural conumer an! then act accor!ingl&( To e%%ectivel& tap the

rural market a +ran! mut aociate itel% *ith the thing that the rural %olk

are %amiliar *ith( Peronal contact *ith the rural cutomer not onl& %acilitate

un!ertan!ing o% the rural min!et +ut alo %acilitate e%%ective ale promotion(

S!e P*o/ot"o Che!:

The pharmaceutical companie? ale people3 manning the van3 utili.e

the variou rural %olk me!ia like /e! ht 7et"3! *e!"+"o-

,e!e0*t"oan! m&ria! other ritual to reach them in their o*n language an!

in large num+er *here the& aem+le to carr& out their +uine !ealing a

*ell a meet their %rien! an! aociate on thee occaion(

The mela an! haat are ver& important event a thee are normall&

hel! either a%ter a harvet eaon or !uring religiou cele+ration e(g( /aera3

/i*ali3 Holi an! imilar occaion3 +ecaue thee are the occaion *hen the

3"!!+e 7o!9 " " /oo2 to 4e2mone& on purchae3 *hich normall& the&

*ill not in!ulge in( In participation in +a.aarOmela3 the regional tockit can

pla& an important role !ue to pro,imit& to the area an! kno*le!ge o% the area(

Thi emerging market can give 6uick +uine(

The other availa+le option in the tra!itional rural me!ia are P-44et*y

Fo!9 Thet*e J"+!e (!! P"t"+ De/ot*t"o Pote*

A+*",-!t-*! G/e J !itri+ution o% calen!ar3 photo car! etc( *ith

pro!uct meage(

The poi+ilitie are numerou an! the emphai i on coming up *ith

innovative ale promotion trategie an! preparing ale promotion material

!irecte! e,cluivel& to*ar! titillating the p&che o% the rural %olk(

hatever +e the channel o% ale promotion the point to keep in min!

are thatF 4

21


44/64


9-: The meage remain at the ite %or a coni!era+le !uration o% time %or the

meage to percolate !eep into the min! o% the +ehol!er( Mutilate! poter3

*all painting are replace! at the earliet opportunit&(

9': The ale people maintain regular contact *ith the village %olk through

peronal meeting3 to clari%& an& lingering !ou+t or provi!e a!!itional

in%ormation(

91: The meage i imple an! hence eail& perceiva+le +& the rural cutomer(

92: The communication o% the meage i mainl& through pictorial !epiction

rather than through cop& matter(

95: The concerne! !octor !oe cloe %ollo* up o% the treatment initiate! an!

change the me!icine or mo!i%& the !oage che!ule( The other channel o%

ale promotion coul! +e the circulation o% i!eocaette on u+ject o%

interet to the village %olk3 along *ith pro!uct meage3 through

=rampancha&at or the cooperative tore %or communit& vie*ing an!

u+e6uent !icuion *ith the concerne! ale peronnel or !octor(

hat ha to +e recogni.e! i that there i much more that nee! to +e

!one to ervice the rural market( The

ke& iue that nee! to +e a!!ree! are not onl& availa+ilit& an! a*arene

+ut alo the more !i%%icult iue o% overcoming prevalent attitu!e an! ha+it(

Changing ha+it an! attitu!e are !i%%icult3 to a& the leat3 o the reult take

long to come( 7ne mut keep on !ogge!l& *ithout letting up in the mi!!le an!

the *eetne o% ucce *ill eventuall& +e relihe!(

TRADITIONAL STRATEGIES FOLLO(ED

BY INDIAN PHARMACEUTICAL

COMPANIES IN RURAL AREAS ARE

22


45/64


Pharmaceutical companie have long courte! In!ian !octor *ith gi%t

an! junket( The me!ical repreentative o% pharma companie approach thee

!octor *ith uch varie! gi%t %rom ke&4chain an! pen4hol!er to air4

con!itioner an! colour televiion( Pharma companie alo hol! regular

regional meeting %or !octor *here the& are invite! along *ith their %amilie

to ta& in hotel an! enjo& vacation at the compan&? cot(

Man& companie alo take thee !octor on tour a+roa! o a to

!evelop goo! relation *ith them an! alo to make them precri+e the

compan&? !rug( Thi3 even though it ma& eem e,penive3 i ver& goo! in

the long run a it +oot the ale o% the compan&(

A the num+er o% In!ian companie proli%erate! an! their

repreentative +egan !ecen!ing on !octor) o%%ice in !rove3 the& o%ten

*ere given cant time to promote their pro!uct( 0o the !rug maker +egan

pa&ing more attention to pharmacit( Incentive to +u& large 6uantitie o%

precription !rug have +ecome commonplace in In!ia3 *here thouan! o%

!rug manu%acturer compete %or hel% pace an! the countr&) hal%4million

pharmacit *iel! an unuual amount o% clout( In In!ia3 man& patient are too

poor or too +u& to ee a !octor an! o%ten rel& on local pharmacit %or

me!ical a!vice( A a reult3 po*er%ul !rug are routinel&3 an! illegall&3 ol!

over the counter(

CURRENT STRATEGIES FOLLO(ED

BY INDIAN PHARMACEUTICAL

COMPANIES IN RURAL AREAS

In the In!ian pharmaceutical a!vertiing3 pharma companie !o not ue

televiion a a mean o% a!vertiing %or mot o% their !rug other than !rug

25


46/64


%or cough J col!3 athma etc( Mot o% the marketing take place through

me!ical repreentative o% the compan& an! alo through incentive cheme(

In the rural area3 mot o% the patient are not a*are a+out even the implet o%

me!icine an! rel& olel& on their !octor? a!vice a+out *hich +ran! to +u&(

Alo3 man& poorer people go !irectl& to the pharmacit an! take the me!icine

that he recommen! %or curing their ailment( Hence3 the primar& target %or

all marketing activitie3 epeciall& in rural area3 are not actuall& the en! uer

+ut the !octor an! pharmacit ince thee are the people *ho can

recommen! the me!icine J more importantl&3 +ran!3 to the rural population(

The rural population alo relie heavil& on a&urve!ic3 unani an! other

uch alternative cure( Hence3 multinational companie are either entering

thee market or tr&ing to *oo the rural population a*a& %rom it(

Io3t"3e /etho2 o7 /*9et"+:

The preent campaign +ae! on cutomer %ocue! promotion !one +&

man& pharma companie ha prove! that in to!a&) *orl! man& people are

ucce%ul onl& +ecaue o% innovation( 0ome o% thee innovative mean areF

He4t"t" 8 B V,,"e C/4"+:

The innovation in promoting the Hepatiti > vaccine campaign reall&

carve! pecial market potential %or the ame( The claical approach in

pampering Retailer an! /octor !oe not hol! true( In %act going to the en!

uer +& uing conumer4marketing approach a!opte! +& man& pharma +ig

pla&er in thi egment ha helpe! to increae their +uine( Thi reulte! in a%our4%ol! increae in ale( The innovative clai%ication approach i given

+elo*(

2;


47/64


E2-,te C-to/e* Ro-te:

Taking e!ucation a the mean to innovate can +e an important tool in

pharma innovation( Cipla? a*ar! %or the +et pu+lication in car!iolog&3clinical &mpoia3 mailing3 provi!ing re%erence are the claical approache

in innovation( Ho*ever3 non4claical can +e provi!ing o%t*are to /octor

%or the management o% hopital an! clinic or en!ing Email to the /octor

*ho have acce to the Computer(

Fo*/"+ -e* ,!-0 Ro-te:

Thi i an innovating approach that can +e coni!ere! activel& +&

Pharmaceutical Companie( 0earle *a the %irt compan& to initiate Lorno%en

Clu+ *herein there *a a 6uarterl& get together o% !octor) %amilie( Houe

maga.ine *ere circulate! among Lorno%en mem+er( Thi ha create!

interet among /octor( Thi proce helpe! to retain lo&al cutomer to

Lorno%en( Thee innovative *a& gave Lomo%en the no( - poition in anti4

!iarrhea market( There i a a&ing that B#$ o% the +uine come %rom '#$

o% the cutomer( There%ore3 retaining a cutomer i eaier than ac6uiring one3a ac6uiring cutomer re6uire e,pen!iture( Thi i a novel approach *hich

Pharmaceutical companie can a!opt a it can give e,tra mileage(

A44!",t"o o7 o,"! /*9et"+ *o-te 7o*

"o3t"o:

2"


48/64


Thi i &et another avenue that can +e taken up to +oot the ale o% the

cutomer( The Hepatiti !etection campaign3 H&pertenion !etection camp

are *ell kno*n in thi !irection( It not onl& help in !etecting %reh cae +ut

alo help in increaing ale( 0ample are given to the cutomer %or ome

!a&3 *hich are %ollo*e! +& the cutomer un!er uperviion o% their me!ical

/octor( Thi help to improve the +uine in the long term( The ucce o%

/aonil an! Lai, can +e attri+ute! alo to thi innovative campaign in tapping

the ne* cutomer(

Cricket i a paion in In!ia( Recentl& 0un Pharmaceutical ha! a

uni6ue *a& on calling ENT pecialit %or the cricket match along *ith their

%amil& mem+er( Thi generate! an interet among the /octor lea!ing to

6uick repone %or the pro!uct )Relie% 4 an anti4col! preparation( Thi i a

novelt& compare! to other like partie3 cocktail3 !inner etc( No !ou+t3 to!a&

ocial marketing i again getting importance +ecaue /octor to!a& are not

interete! in partieOcocktail !ue to large no( o% companie going %or the

ame( There%ore3 there i no innovation in that repect(

A44!",t"o o7 *e!t"oh"4 /*9et"+ " ,-to/e*

7o,-e2 4*o/ot"o:

To!a& relationhip marketing i a +u..*or! all over the *orl!( People

have reali.e! that it i +etter to !evelop goo! relationhip *ith the cutomer

o that the& !on)t *itch over( Relationhip

An& %actor not upto the mark can lo*er the relationhip( The

companie like Alkem have the practice o% en!ing *ell4kno*n 0r( Managerepeciall& pro!uct manager on %iel! trip( Thi *ill give them an opportunit&

to accompan& a !octor to an& particular venue an! take intervie* !uring

traveling *ith him( Thi i an e,cellent innovation in market reearch( Thi

alo help to !evelop relationhip( Application o% Computer /ata in en!ing

+irth!a&3 marriage anniverar& car! can +e ue%ul in +uil!ing up the

relationhip( In%act3 the innovation approach *oul! +e i% telephone call *ere

ma!e +& 0r( E,ecutive to !octor on uch occaion( Recentl&3 the !octor

ai! that man& companie take >irth!a& !ate +ut !on?t +other to repon!

2B


49/64


narrate! thi( Ho*ever3 thi imple techni6ue help to !evelop a ne* hori.on

in relationhip(

Io3t"o 0e2 o Ret"!e* Sto,9"et:0an!o. a!opte! the conumer in!utr& i!ea in pharmaceutical

promotion an! appointe! clinical pecialit un!er tockiet to promote their

pro!uct( It et a tren! in pharmaceutical marketing( 0pecial +ooking contet

among tockiet? repreentative can +e e,ploite! to improve the penetration(

0an!o. e,ploite! thi avenue +& incorporating a hirt a a gi%t to highet

+ooker o% their pro!uct among tockiet repreentative( Cipla) e,perience o%

!etailing an! e!ucating the retailer enhance! their relationhip( In%act3innovation4uing training a tool to improve ale can +e ucce%ul(

Training the retailer in cutomer) management un!ertan!ing

%inance3 computer3 cutomer ervice3 picnic3 tre management3 cricket hiel!3

+et maintaine! chemit hop etc can +e innovative approache(

METHODS OF ADDING VALUES TO

RETAILERS

2@


50/64


To!a& rural market i emerging a %at potential egment( 0tockiet

role i ver& important in thi egment(

5#


51/64


DRUG DISTRIBUTION CHANNELS

/rug !itri+ution in In!ia i la&ere! an! regulate!( Unlike in the et3

*here a manu%acturer can !irectl& uppl& goo! at the retail level3 pro!uct in

In!ia move through a chain o% interme!iarie(

The manu%acturer upplie goo! to the %irt la&er compriing a

clearing an! %or*ar!ing agent3 a uper tockiet or a compan&4o*ne! !epot(

Thee3 in turn3 uppl& to tockiet %rom *hoe premie goo! are route! to

*holealer3 me!ical intitution3 hopital an! retailer( The retailer !ipene

the !rug to %inal conumer( Manu%acturer can !irectl& uppl& to intitution

an! hopital3 +ut never to a retailer(

Che! o7 2*-+ 2"t*"0-t"o

There are even trategicall& locate! me!ical tore organi.ation3

*hich uppl& to government hopital an! !ipenarie in rural an! u+ur+an

area( Thee organi.ation procure goo! !irectl& %rom companie +& inviting

ten!er o a to keep the cot lo*( =overnment hopital an! intitution alo

invite ten!er( 0ome private intitution alo go in %or ten!er *hile the

majorit& negotiate *ith companie to !icount tockiet an! chemit margin

in a!!ition to +ulk purchae !icount(

5-


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RURAL MODELS

There i nee! %or innovative rural mo!el having concurrence *ith the

health minitr& *hich *oul! i!eall& act a a no!al agenc& %acilitating the

e%%ort o% variou +o!ie like N=73 the /itrict or Taluka level IMA +o!ie

an! roping in the

goo! o%%ice o%

gram pancha&at

an! village

el!er( Perhap

it i time %or a

rethink o% the

entire concept o%

PHC( A tart

coul! +e ma!e atleat +& !elinking them %rom !rug procurement a mot are

!e%unct %or *ant o% me!icine( The ne* mo!el ha to +e *orke! out veting

private initiative an! partnerhip in !rug !itri+ution an! !ipenation( Revive

an! put li%e into the PHC *ith minimal clinical acceorie an! &oung !octor

manning them %or a minimum o% t*o &ear man!ator& poting( The& houl!precri+e the eential me!ication *hich then houl! +e ma!e availa+le at the

private &n!icate! outlet like gram pancha&at o%%ice or rural co4operative

*here people pa& or get me!icine on +arter %or their pro!uce( It i here that

pharmacit %rom rural or emi rural area can +e gain%ull& emplo&e!( The&

*oul! +e more than *illing to go there an! liaie *ith &oung !octor at the

PHC3 +oth o% *ho *ill have a +urning !eire to raie health tan!ar!( 7%

coure3 the nitt&4grittie have to +e *orke! out peci%ic to each region( Pharma

companie *ill have to make the %irt move to provi!e 6ualit& generic at cot3

not charit&(

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RURAL PHARMACEUTICAL NET

ENGINE OF GRO(TH FOR THE INDUSTRY

In!ian pharmaceutical in!utr& i gra!uall& picking pace in the rural

market( hile metro an! citie account %or aroun! ;#$ o% the market hare

o% the pharma in!utr&3 untappe! potential o% rural market it i +eing een a

ne,t volume !river o% the in!utr&( Riing income level lea!ing to more

a%%or!a+ilit&3 pee!ing up o% health in%ratructure3 an! li%et&le !ieae along

*ith health inurance are %uelling the gro*th in rural area(

Rural market gre* at a+out 2#$ to touch -(2 +illion in '##;4#" an!

i e,pecte! to have higher gro*th rate than overall pharma in!utr&3 ai!

ector hea! 4 pharmaceutical3 KPM=3 Hiteh =ajaria( In lat couple o% &ear3

rural egment ha manage! higher gro*th &ear on &ear( The egment manage!

'- $ gro*th in calen!ar &ear '##5 an! @ $ in CG #2( =ro*th in the rural

market ha +een le! +& %avora+le economic an! !emographic %actor3

inclu!ing riing income3 in%ratructure3 increae! a%%or!a+ilit& o% !rug3 an!

increae! penetration o% health inurance an! gro*ing organi.e! retail in the

rural area3 ai! =ajaria(

Health in%ratructure alo nee! to improve3 a onl& '#$ o% In!ia)

total health in%ratructure i in rural area *here "#$ population live(

Ho*ever3 *ith riing rural healthcare e,pen!iture an! improving

in%ratructure %acilitie *hich are encouraging pharma companie to invet in

rural market an! government announcement o% %ive &ear ta, holi!a& %or

hopital in rural area *ill %urther help in %acilitating +aic healthcare

amenitie3 the KPM= o%%icial ai!( Pharma companie *ill have to %ocu on

trengthening their marketing an! !itri+ution channel along *ith uppl&

chain management to capitali.e on the opportunitie rural egment o%%er3 he

a!!e!( Market hare o% the rural pharma roe %rom -B$ in '##5 to '-$ in

'##"( >& '#-5 rural pharma market *ill +e aroun! '2$ an! market i.e i

e,pecte! to reach 2(B +illion %rom -(' +illion in '##53 a per McKine&

report )In!ian Pharma '#-5)( The report e,pect In!ian pharma market to reach

to '# +illion *hile alo highlighte! that a%ter metro3 rural egment *ill ee

the %atet incremental gro*th +& '#-5(

51


54/64


MNC PHARMA FIRMS LINE UP TO TAP

INDIAS RURAL MARKET

Pharma MNC operating in In!ia are !ra*ing up aggreive trategie

to tap into the rural market *here In!ia? t*o4thir! o% the population live(

Aventi Pharma3 the In!ian arm o% the


55/64


*a&(MNC inclu!ing Eli Lill&3 Novo Nor!ik3 an! Novarti are alo chalking

out programme to tap the rural cutomer(Novarti i currentl& targeting

village in even tate *ith lo*4price! pro!uct availa+le in a variet& o%

package i.e( The mo!el upplie me!icine to more than -;3### pharmacie(

Novarti alo create a*arene on health iue uing au!ioviual inter%ace

through health a!vior in village( Novo Nor!ik prea! a*arene through

mo+ile clinic along the village in =oa to creen patient %or !ia+ete( Lill&

ha +een *orking *ith the 0el%4Emplo&e! omen? Aociation in

Ahme!a+a! to e!ucate people on tu+erculoi( =ro*ing at compoun!e!

annual gro*th rate o% nearl& -2$ in the ne,t %e* &ear3 the In!ian

pharmaceutical market i e,pecte! to touch U0/ 2# +illion +& '#-53 pre!icte!

a recent report +& the glo+al management conulting major Mckine& an!

Compan&( In!ian pharma market3 *hich i currentl& value! at U0/ '# +illion3

coul! ee the %igure almot !ou+le in ne,t 5 &ear majorl& propelle! +& the

tea!& gro*th in the !ometic egment( Relate! tor&F In!ian pharma market

ale up !epite receion( The !ometic market *hich i gro*ing at almot -#

to -2 per cent at preent itel% *ill provi!e U0 '# to '2 +illion in '#-5 an!

the e,port an! contract manu%acturing +uine3 *hich are gro*ing at -# per

cent per annum3 *ill contri+ute to achieve the pre!icte! gro*th(

55


56/64


PROBLEMS FACED IN RURAL MARKETS

BY PHARMACEUTICAL COMPANY

The tate o% in%ratructural ina!e6uac& that the people o% rural In!ia are

till en!uring peciall& in the area o% tranportation3 anitation J availa+ilit&

o% even the ru!imentar& me!ical %acilitie i appalling(

I there no reme!& to thi tangle thenV Companie houl! %ocu on the

opportunitie availa+le in rural market rather than !eveloping col! %eet at the

enormit& J multiplicit& o% the pro+lem taring at them a a reult o%

in%ratructural ina!e6uac&( Let u look at each iue *ith an un+iae! min! o

that *e are a+le to %in! ome olution to thi tangle(


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SOLUTION FOR THE ABOVE MENTIONED

PROBLEM

The %irt pro+lem o% lack o% tranportation coul! +e eail& reolve! +&

procuring o*n van or tempo( Ma& +e even motorc&cle carrier coul! +e

thought o% *here proper roa! are none,itent(

The econ! iue i more !i%%icult to tackle +ut not impoi+le( Goung

!octor3 %rehl& out o% me!ical college3 +rimming *ith enthuiam %or

ren!ering el%le ervice couple! *ith a ene o% a!venturim coul! +e

recruite! %or thi purpoe( 0electing right %rom the campu at lucrative pa&

package coul! +e the %inal impetu nee!e! to enlit total cooperation o% the

ne* !octor( Thee !octor can then +e attache! to a mo+ile clinic i(e( a

converte! van or tempo an! ma!e to penetrate into a et o% !eep4eate!

interior village or market(

The iue o% none,itent !itri+ution channel J retail chain alo ha a

olution( 7ne *a& to reolve the pro+lem coul! +e +& uing compan& !eliver&

van %or thi purpoe( Thee van can reach the pro!uct to the cutomer in

ever& nook an! corner o% the market an! thu reolve the pro+lem o% pro!uct

availa+ilit&( Another +ene%it i that thi *ill ena+le the &n!icate! %irm to

eta+lih !irect contact *ith the cutomerOconumer(

Heav& capital e,pen!iture3 un!ou+te!l&3 i one %actor *hich care

a*a& mot o% our goo! intention( Let u coni!er that t*ent& to t*ent&4%ive

mi!4i.e Pharmaceutical Companie come together an! plan to enter the rural

market in real earnet( Then the entire e,pen!iture3 +e it capital or

promotional3 can +e !itri+ute! to thee t*ent&Ot*ent&4%ive companie intea!

o% the total +ur!en %alling on the houl!er o% an& one organi.ationD thu

!iluting the %inancial loa! an! +ringing the e,ercie *ithin limit o% %eai+ilit&(

5"


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CASE STUDY8 1

A TYPICAL CASE OF A PHARMACIST IN

RURAL INDIA IS GIVEN BELO(:

7n a +u& recent 0un!a& a%ternoon at the 0hree 0amarth Me!ical 0tore

in the *etern In!ia agricultural to*n o% /in!uri3 o*ner >apuahe+ Patil *a

openl& elling precription !rug *ithout precription3 inclu!ing anti4

in%lammator& pill3 ulcer ta+let an! anti4tu+erculoi !rug( He ue! anote+ook to keep track o% hi regular cutomer) %avorite me!icine3 in cae

the& %orgot the name or remem+ere! onl& the color(

Mr( Patil alo !i!n)t !iguie hi motivation %or recommen!ing certain

+ran!( The ultimate !eciion i +ae! on *hat the margin are3 he ai!(


59/64


Othe* e5/4!e:

=la,o0mithKline) 0mithKline >eecham unit an! 0chering A= o%

>erlin3 among other3 recentl& o%%ere! a promotion !u++e! Mega MerchantF

0ell an! Enjo&( In e,change %or +u&ing three +o,e o% Primolut4N3 a 0chering

hormone precri+e! %or mentrual irregularitie3 an! everal other !rug3 a

retailer receive! a %ree +o, o% the anti+iotic amo,&cillin3 an! a ticket %or a

!ra*ing %or -'2 vacation in =erman&3 Nepal an! everal In!ian !etination(

Makaran! /ehpan!e3 general manager o% ale an! marketing %or

=erman Reme!ie3 a& the %our4month promotion *a a mo!erate ucce(It +oote! ale o% ome lo*4elling !rug +& - million3 *hile the trip cot

the compan& onl& a+out -##3###( He ackno*le!ge that ome o% Primolut4

N) ale in general are over4the4counter3 +ut he a& the promotion *an)t

aime! at encouraging that(

The multinational companie *hich !o not o%%er uch cheme have to

u%%er at the han! o% the po*er%ul pharmacit aociation( ino! Topa3

!irector o% ale an! marketing %or the In!ian u+i!iar& o% A++ott

La+oratorie a& *hen he joine! the compan& in /ecem+er3 it *a a!!le!

*ith huge amount o% e,pire! me!icine returne! +& pharmacie that ha!

+ought them un!er incentive program +ut %aile! to ell them( He noti%ie!

!itri+utor that there *oul! +e no more +onu plan a%ter ul& 1-3 +ut he a&

pharmacie imme!iatel& repon!e! +& re!ucing purchae o% A++ott !rug( I

am %acing the muic no*3 he a&(

A tu!& +& the >om+a& market4reearch %irm Interlink Healthcare

Conultanc& %oun! that all +ut one o% the top '5 !rug companie in In!ia o%%er

uch !icounting !eal at leat once a month(

5@


60/64


CASE STUDY #

The 4-*"o- 2*-+ /e,e:

A major pro+lem %ace! +& pharmaceutical companie to!a& i the

gro*ing menace o% puriou !rug in the market( The !ometic

pharmaceutical in!utr& i no* paing through a crii( Alrea!& a+out one4

i,th or R -35## crore *orth o% it +uine i in !ol!rum( The menace o%

puriou3 counter%eit an! %ake !rug ha hit it +a!l&( In or!er to tackle the

pro+lem hea! on3 nine companie namel& Alem+ic Lt!(3 Ca!ila Healthcare

Lt!(3 Cipla Lt!(3 /r Re!!&) La+oratorie Lt!(3 Lupin La+oratorie Lt!(3

Nichola Piramal In!ia Lt!(3 Ran+a,& La+oratorie Lt!(3 0un Pharmaceutical

In!utrie Lt!( an! ockhar!t Lt!( have joine! han! un!er the aegi o%

In!ian Pharmaceutical Alliance 9IPA:(

0puriou !rug not onl& hurt companie +& lo o% ale3 the& alo

tarnih image an! reputation o% their +ran!( The conumer get cheate! a

puriou !rug !o not treat the ailment an! there%ore the patient continue to

u%%er( In cae o% critical con!ition3 it coul! even +e li%e threatening( The

government too u%%er %rom revenue lo a manu%acturer o% puriou !rug

!o not pa& e,cie !ut&3 ale ta, an! income ta,( Like*ie the tra!e in

puriou !rug +eing unaccounte!3 thoe !ealing in them alo !o not pa& ta,

thereon(

;#


61/64


VISIT REPORT

I have viite! the o%%ice o% All In!ia 7rgani.ation o% chemit an! !ruggit at!a!ar on "th octo+er '#-1 an! met Mr((0(0HIN/E the prei!ent o% thi

organi.ation( Thi organi.ation provi!e variou !onation an! %ree me!ical

treatment to variou poor people *ho u%%er %rom variou !ieae( The&

organi.e! variou me!ical camp in the rural area an! provi!e them

e!ucation relate! to variou !ieae an! provi!e %ree me!ical treatment(

I have ake! him variou 6uetion relate! to pharmaceutical in rural area an!

accor!ing to him %ollo*ing are the major pro+lem in rural areaF

i( Lack o% kno*le!ge a+out variou !ieae !ue to illiterac&

ii( Mot o% the people in rural area are %rom poor %amil& o the& cant

a%%or! me!ical treatment(

iii( Corruption i the major reaon !ue to *hich variou cheme an! help

provi!e! +& the government i not a+le to reach to the poor people(

He alo tate! variou olution to the a+ove ai! pro+lem( He ai! that the

rural people houl! take initiative to kno* a+out the variou !ieae an!

houl! take precautionar& meaure at the earl& tage( He ai! that the

pharmaceutical compan& houl! take variou meaure to improve their

ale(

At the en! o% thi report I *oul! like to thank Mr( (0(0HIN/E prei!ent

o% All In!ia 7rgani.ation o% chemit an! !ruggit %or olving m& 6uerie

relate! to pharmaceutical in rural area(

;-


62/64


CONCLUSION

The gro*th o% intitutional ale ha! little impact on the accei+ilit& o%me!icine in rural area( A large proportion o% the rural population till !oe

not have acce to proper me!ication an! the ituation ma& take long to

improve( Rural area contri+ute aroun! '-$ to the total pharmaceutical

market( In '##;8#"3 the rural pharmaceutical market *a etimate! at aroun!

-(2 +illion( Nearl& "#$ o% In!ia? population live in rural area *here

healthcare in%ratructure i poor( ith increaing rural houehol! income3 the

rural market i +ecoming more attractive( Accor!ing to etimate +& the

Planning Commiion3 rural houehol! no* pen! -'$ o% their income on

healthcare(

;'


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BIBLIOGRAPHY

-: RURAL MARKETIN=

4PHILIP K7TLER

': IN/IAN PHARMACEUTICAL A007CIATI7N

4RAMA 0AMG

1: PHARMA PUL0E

4 KAILA0H 0HARMA

;1


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(IBLIOGRAPHY

-: ***(in!ianin%oline(com

': ***(i+e%(org

1: ***(in!ianpharmaceutical(com

2: httpFOOen(*ikipe!ia(orgO*ikiOMeaning
http://www.ibef.org/http://www.indianpharmaceutical.com/http://en.wikipedia.org/wiki/Meaninghttp://www.ibef.org/http://www.indianpharmaceutical.com/http://en.wikipedia.org/wiki/Meaning

Documents

Pharmaceutical in Rural Market