Critical Analysis of Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry
A THESISSubmitted for the Award of Ph.D. degree of
PACIFIC ACADEMY OF HIGHER EDUCATION AND RESEARCH UNIVERSITY
in the Faculty of Management Studies
By
Ruchi Sharma
Under the Supervision of
Prof. Ashok Kumar Jetawat
FACULTY OF MANAGEMENT STUDIESPAHER UNIVERSITY
UDAIPUR (Raj) – 313001
2014 1
Innovative Marketing Practices for Pharmaceutical Industries
Pharmaceutical Industry is regulated by the production,
distribution, selling and the marketing of the products or services which
directly or indirectly includes medical, diagnostic and healthcare.
It is regulated by economical, political and administrative authority
to manage at all levels. So, the industry is governed by both the public and
private sector. Therefore innovation is done in various pharma stakeholder
and is needed in chronic and acute therapeutic segment.
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Indian Pharmaceutical Industry
• The Indian Pharmaceutical industry is divided in the organized and unorganized segments with more than 10,000 manufacturers.
• It manufactures 23% bulk drugs that are active pharmaceutical ingredient and 77% formulations.
• Institutional clients include government hospitals, Indian defense service and private hospital so the scope of strategies is not limited to private companies but has been also done in the public pharmaceutical sectors.
• Challenges which needs to be met are dual disease burden, lack of infrastructure and manpower.
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Objectives
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Development in Public Healthcare
• The Government has launched the National Rural Health Mission in 2005 to provide healthcare services to people and has increased the budget on healthcare to 2-3 per cent of GDP from 0.9 per cent of GDP in 2012.
• Practices like setting feasible and Good Laboratory Practices, Biological Laboratories in Public-Private Partnership Mode are being planned by the government.
• Besides this Government has initiated various PPP projects like Yashaswini Scheme, introduction of mobile health services in Tamil Nadu etc.
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Development in Private Sector
• In private sector, too there has been vast improvement done to provide the customer that is the patient with affordable, accessible and economical quality services to rural and urban masses.
• Few actions have also been taken like training and educating the healthcare staff which include nurses, physician and related person.
• Interventions like encouraging and extending CSR in cross functional formats are exchange programs, short stay certifications in areas like hospital administration, quality controls, specialized nursing care like intensive care and operation theatre.
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Healthcare Industry Breakup
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50%
25%
10%
15%
Percentage of Various Sectors
Hospital
Pharma
Diagnostic
Insurance and Medical equipment
Research Design
• Our research was exploratory in nature. Both quantitative and
qualitative research was conducted.
• Analysis of responses of physician and medical representative was
a part of qualitative research which helped in collecting
quantitative data so structured questionnaire was prepared to
collect primary information.
• The data were collected from both primary and secondary sources. During our primary research, two questionnaires were prepared i.e. appendix 5 and appendix 6.
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Sampling Procedure and Size
A convenient sample of two different groups was selected from Udaipur, Jaipur and NCR region as follows:
Sample Size
Medical Representative 369
Physician 100
The Sample Size of Physician is small due to few limitations.
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Medical Representative's Profile Criteria Number
Age Group
0-30 70
30-40 82
40-50 127
More than 50 90
Total 369
Gender Group
Male 277
Female 92
Total 369
Qualification
B.A. 70
B. Com 82
B. Pharma 127
MBA 90
Total 369
Geographical Area
Bhiwadi 70
Gurgaon 82
Udaipur 127
Jaipur 90
Total 369 10
Physician Profile
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Criteria Number
Age Group
0-30 12
30-40 28
40-50 35
More than 50 25
Total 100
Gender Group
Male 60
Female 40
Total 100
Geographical Area
Gurgaon 60
Udaipur 40
Total 100
Respondent Sample Profile of Medical Rep.
Name of the Pharmaceutical Company
Respondent
BIOCON 86
PFIZER 98
IDPL 87
CIPLA 98
Total 369
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Respondent Sample Profile of Physician
Name of the Hospital Respondent
FORTIS 20
MEDANTA 15
MAA GAYATRI 15
OTHERS 50
Total 100
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Percentage of Total Responses Received from Pharma Industry
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Percentage of Total Responses Received from Hospitals
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Contributions of Individual Factors for Pharmaceutical Marketing
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Contributions of Individual Factors for Pharmaceutical Marketing
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Marks of Different Ranks
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Different Ranks Weightage Marks
Rank 4 Strongly Agree 4
Rank 3 Agree 3
Rank 2 Disagree 2
Rank 1 S. Disagree 1
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S. No. List of Individual Factors Total Score
1 Promotional Measures 330
2 Unethical Standard 327
3 Use of Technology 323
4 Fastest Growing 319
5Different Marketing
Strategy308
6Non Conventional
Methods263
7 Medical Ethics 259
8 MNC as Challenge 222
List of Individual Factors for Pharmaceutical Marketing:
Chi Square Test for Awareness Level of Medical Rep.
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S. No. HypothesisResult @ 5% level
Ho 1Awareness of promotional tools in pharmaceutical
marketing is independent of gender Rejected
Ho 2Level of implementation of pharmaceutical marketing
in private sector is independent of qualification Accepted
Ho 3Level of positive attitude towards innovation in
private pharmaceutical sector is independent of age Accepted
Ho 4Level of positive attitude towards innovation in public
pharmaceutical sector is independent of gender Accepted
Ho 5Level of awareness of promotional strategy mitigating corruption in pharmaceutical sector is independent of
geographical area.
Accepted
Ho 6Level of employee improvement in performance
towards private pharmaceutical sector is independent of geographical area.
Accepted
Ho 7Level of employee improvement in performance
towards public pharmaceutical sector is independent of age .
Rejected
Chi Square Test for Awareness Level of Physician
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S. No. HypothesisResult @ 5% level
Ho 8Extent of agree level that India’s pharmaceutical industry is one of
the fastest growing segments of the Indian economy is independent of gender.
Accepted
Ho 9Level of marketing strategy of the pharmaceutical industry should
be different from the marketing strategy in other industrial segments is independent of age.
Accepted
Ho 10Level of awareness of pharmaceutical companies resort to
promotional measures for selling their products is independent of age.
Accepted
Ho 11Unethical standards exist in the promotion of pharmaceutical
products in India is independent of gender. Accepted
Ho 12Entry of multinationals is a major challenge to the domestic players
in the pharmaceutical market and are they ready to face the challenges of the foreign players is independent of area.
Accepted
Ho 13Medical ethics as a major factor in the new distribution channel of
marketing is independent of area. Accepted
Ho 14Non-conventional marketing methods are effective methods of
pharmaceutical marketing in the present ages independent of area. Accepted
Ho 15Technology utilization and innovative distribution channels will help in marketing of pharmaceutical products in India is independent of
gender.Rejected
Findings
• Various domestic companies are competing with the foreign pharmaceutical firms.
• Pharmaceutical marketing is taught from grass root level to all stakesholders so it shows uniformity in there implementation level.
• Males were more aware about the promotional strategies than females.
• Price approval mechanism takes 6-8 weeks.
• People suggests that the public awareness should be enhanced. 22
Related Issues
• Intense competition leads to unethical practices.
• Lack of knowledge affects the strategies.
• Varying customer perception leads to huge deviations.
• High attrition rate of the sales personnel occur.
• Cost affects the production and marketing strategy.
• Time affects business value at medical representative level.
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Conclusion
• We analyzed the performance of various pharmaceutical companies working in few regions of Rajasthan and NCR on the basis of three aspects viz. marketing, human resource and technology.
• Lack of general awareness among people regarding the healthcare services. Very few people are aware of the services provided by pharmaceutical firms. Thus, lack of marketing measures makes the efforts inefficient.
• Various stakesholders are equally responsible for drug promotion. Therefore proper regulations help in lowering cost and providing the masses with best medications.
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Future Potential & Suggestive Framework
• Rational use of medicine can be done by pharmaceutical firms.
• Marketing of drugs should be done by providing the physician with informative ideas about all drugs related to product.
• Proper control on promotion is required and planning to improve its system so that all the documents can be registered and be returned within time and thereby saving the time.
• Access to information by every stakesholder can play very important role in processing, marketing and prescribing drugs.
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Future Potential & Suggestive Framework
• It is important to find the key stakesholders which will help in better communication and can bring consistency in their services thereby reducing loss and dissatisfaction among people.
• The internal, external and interactive dimensions should be considered by the pharmaceutical firms.
• Companies can create differentiation by use of technology and innovations. Senior manager should be more friendly with the employees.
• Market should be analyzed so proper use of ICT is required. So Pharmaceutical community should create online community so as to get right feedback.
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Thank you!
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