Transcript PPT-of-Research-on-Pharma-Marketing

Critical Analysis of Innovative Marketing Practices for
Optimization in Selected Pharmaceutical Industry
A THESIS
Submitted 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 STUDIES
PAHER UNIVERSITY
UDAIPUR (Raj) – 313001
2014
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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
To study the comparative analysis of innovative practices
of pharmaceutical company.
To study the marketing strategy of the pharma
companies that reduces the cost and effectively helps in
managing the resources.
To study and critically analyze the optimum techniques
used by pharma organization.
To study and find the issues, trends, future potential and
suggestions.
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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
Percentage of Various Sectors
15%
Hospital
Pharma
10%
50%
Diagnostic
Insurance and Medical equipment
25%
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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
0-30
70
30-40
82
40-50
127
More than 50
90
Total
369
Male
277
Female
92
Total
369
B.A.
70
B. Com
82
B. Pharma
127
MBA
90
Total
369
Bhiwadi
70
Gurgaon
82
Udaipur
127
Jaipur
90
Total
369
Age Group
Gender Group
Qualification
Geographical Area
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Physician Profile
Criteria
Number
0-30
12
30-40
28
40-50
35
More than 50
25
Total
100
Male
60
Female
40
Total
100
Gurgaon
60
Udaipur
40
Total
100
Age Group
Gender Group
Geographical Area
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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
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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List of Individual Factors for Pharmaceutical
Marketing
:
S. No.
List of Individual Factors
Total Score
1
Promotional Measures
330
2
Unethical Standard
327
3
Use of Technology
323
4
Fastest Growing
Different Marketing
Strategy
Non Conventional
Methods
319
7
Medical Ethics
259
8
MNC as Challenge
222
5
6
308
263
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Chi Square Test for Awareness Level of Medical Rep.
S. No.
Hypothesis
Result @ 5% level
Ho 1
Awareness of promotional tools in pharmaceutical
marketing is independent of gender
Rejected
Ho 2
Level of implementation of pharmaceutical marketing
in private sector is independent of qualification
Accepted
Ho 3
Level of positive attitude towards innovation in
private pharmaceutical sector is independent of age
Accepted
Ho 4
Ho 5
Ho 6
Ho 7
Level of positive attitude towards innovation in public
pharmaceutical sector is independent of gender
Level of awareness of promotional strategy mitigating
corruption in pharmaceutical sector is independent of
geographical area.
Level of employee improvement in performance
towards private pharmaceutical sector is independent
of geographical area.
Level of employee improvement in performance
towards public pharmaceutical sector is independent
of age .
Accepted
Accepted
Accepted
Rejected
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Chi Square Test for Awareness Level of Physician
S. No.
Hypothesis
Result @ 5% level
Ho 8
Ho 9
Extent of agree level that India’s pharmaceutical industry is one of
the fastest growing segments of the Indian economy is independent of
gender.
Level of marketing strategy of the pharmaceutical industry should be
different from the marketing strategy in other industrial segments is
independent of age.
Accepted
Accepted
Ho 10
Level of awareness of pharmaceutical companies resort to
promotional measures for selling their products is independent of age.
Accepted
Ho 11
Unethical standards exist in the promotion of pharmaceutical
products in India is independent of gender.
Accepted
Ho 12
Entry 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 13
Medical ethics as a major factor in the new distribution channel of
marketing is independent of area.
Accepted
Ho 14
Non-conventional marketing methods are effective methods of
pharmaceutical marketing in the present ages independent of area.
Accepted
Ho 15
Technology utilization and innovative distribution channels will help
in marketing of pharmaceutical products in India is independent of
gender.
Rejected
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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.
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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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