Final MT Dinesh

8/8/2019 Final MT Dinesh

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A

Thesis on

THE COMPARETIVE STUDY ON PROMOTION

STRATEGY AND TOOLS USED IN PHARMA

COMPANY WITH REFERECNE TO TROIKAA

PHARMACTICALS AND RANBAXY LAB Ltd. IN

AHMEDABAD.

Enr. No: 8NBAM141

Div: A

Submitted To: Prepared By:-

Prof. Devangi Dinesh Sharma


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ACKNOWLEDGEMENT

Without a proper combination of inspection and perspiration, its not easy to

achieve anything. There is always a sense of gratitude, which we express to others

for the help and the needy services they render during the different phases of our

lives. I too would like to do it as I really wish to express my gratitude toward all

those who have been helpful to me directly or indirectly during the development of

this project.

I would like to thank my Principal Mr.Jagdish Patel (ASIM) Ahmedabad & also

I would like to thank my Faculty Guide Prof. Devangi, who is always help and

guide to me when I needed help. Her perceptive criticism kept me working to make

this thesis more full proof. I am thankful to him for her encouraging and valuable

support. Working under him was an extremely knowledgeable and enriching

experience for me. I am very thankful to him for all the value addition and

enhancement done to me.

No words can adequately express my overriding debt of gratitude to my parents

whose support helps me in all the way. Above all I shall thank my friends who

constantly encouraged and blessed me so as to enable me to do this work

successfully.

Dinesh Sharma.

MBA (2008-10)


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PREFACE

A project report on promotional strategy and tools used in pharmaceuticalcompany is being prepared in attempts to interpret in-depth study. This report helps

us to understand various terminologies in Marketing. This report gave meopportunity to have complete idea about Promotional strategy and tools.

This project report helps in following aspects,

Build understanding of central ideas and theories of Promotional strategies.

Develop familiarity with the analysis of tools and strategies.

This project will guide to marketer of Pharmaceutical industry. This project

deployed a lot time for collections of information from various sources. This

project will be very helpful to know the promotional tools and strategy used and

the personal selling involved in it.


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INTRODUCTION

The Indian Pharmaceutical Industry today is in the front rank of Indias science-

based industries with wide ranging capabilities in the complex field of drug

manufacture and technology. A highly organized sector, the Indian PharmaIndustry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent

annually. It ranks very high in the third world, in terms of technology, quality and

range of medicines manufactured. From simple headache pills to sophisticated

antibiotics and complex cardiac compounds, almost every type of medicine is now

made indigenously.

Playing a key role in promoting and sustaining development in the vital field of

medicines, Indian Pharma Industry boasts of quality producers and many unitsapproved by regulatory authorities in USA and UK. International companies

associated with this sector have stimulated, assisted and spearheaded this dynamic

development in the past 53 years and helped to put India on the pharmaceutical

map of the world.

The Indian Pharmaceutical sector is highly fragmented with more than 20,000

registered units. It has expanded drastically in the last two decades. The leading

250 pharmaceutical companies control 70% of the market with market leader

holding nearly 7% of the market share. It is an extremely fragmented market with

severe price competition and government price control.

The pharmaceutical industry in India meets around 70% of the country's demand

for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals,

tablets, capsules, orals and injectibles. There are about 250 large units and about

8000 Small Scale Units, which form the core of the pharmaceutical industry in

India (including 5 Central Public Sector Units). These units produce the complete

range of pharmaceutical formulations, i.e., medicines ready for consumption by

patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and

used for production of pharmaceutical formulations.

Following the de-licensing of the pharmaceutical industry, industrial licensing for

most of the drugs and pharmaceutical products has been done away with.


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Manufacturers are free to produce any drug duly approved by the Drug Control

Authority. Technologically strong and totally self-reliant, the pharmaceutical

industry in India has low costs of production, low R&D costs, innovative scientific

manpower, strength of national laboratories and an increasing balance of trade. The

Pharmaceutical Industry, with its rich scientific talents and research capabilities,supported by Intellectual Property Protection regime is well set to take on the

international market.

ADVANTAGE INDIACompetent workforce: India has a pool of personnel with high managerial andtechnical competence as also skilled workforce. It has an educated work force andEnglish is commonly used. Professional services are easily available.

Cost-effective chemical synthesis: Its track record of development, particularly inthe area of improved cost-beneficial chemical synthesis for various drug moleculesis excellent. It provides a wide variety of bulk drugs and exports sophisticated bulkdrugs.

Legal & Financial Framework: India has a 53 year old democracyand hence hasa solid legal framework and strong financial markets. There is already anestablished international industry and business community.

Information & Technology: It has a good network of world-class educationalinstitutions and established strengths in Information Technology.

Globalisation: The country is committed to a free market economy andglobalization. Above all, it has a 70 million middle class market, which iscontinuously growing.

Consolidation: For the first time in many years, the international pharmaceuticalindustry is finding great opportunities in India. The process of consolidation, which

has become a generalized phenomenon in the world pharmaceutical industry, hasstarted taking place in India.

THE GROWTH SCENARIOIndia's US$ 3.1 billion pharmaceutical industry is growing at the rate of 14 percent

per year. It is one of the largest and most advanced among the developingcountries.


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Over 20,000 registered pharmaceutical manufacturers exist in the country. Thedomestic pharmaceuticals industry output is expected to exceed Rs260 billion inthe financial year 2002, which accounts for merely 1.3% of the global

pharmaceutical sector. Of this, bulk drugs will account for Rs 54 bn (21%) andformulations, the remaining Rs 210 bn (79%). In financial year 2001, imports wereRs 20 bn while exports were Rs87 bn.

STEPS TO STRENGTHEN THE INDUSTRYIndian companies need to attain the right product-mix for sustained future growth.Core competencies will play an important role in determining the future of manyIndian pharmaceutical companies in the post product-patent regime after 2005.Indian companies, in an effort to consolidate their position, will have toincreasingly look at merger and acquisition options of either companies or

products. This would help them to offset loss of new product options, improvetheir R&D efforts and improve distribution to penetrate markets.

The marketing of medication has a long history. The sale of miracle cures, many

with little real potency, has always been common. Marketing of legitimate non-

prescription medications, such aspain relievers orallergy medicine, has also long

been practiced. Mass marketing of prescription medications was rare until recently,

however. It was long believed that since doctors made the selection of drugs, mass

marketing was a waste of resources; specific ads targeting the medical profession

were thought to be cheaper and just as effective.

This would involve ads in

professional journals and visits by sales staff to doctors offices and hospitals. An

important part of these efforts was marketing to medical students.

Direct and indirect marketing to health care providers

Physicians are perhaps the most important component in pharmaceutical sales.

They write the prescriptions that determine which drugs will be used by thepatient. Influencing the physician is the key to pharmaceutical sales. Historically,

this was done by a large pharmaceutical sales force. A medium-sized

pharmaceutical company might have a sales force of 1000 representatives. The

largest companies have tens of thousands of representatives around the world.

Sales representatives called upon physicians regularly, providing information and


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free drug samples to the physicians. This is still the approach today; however,

economic pressures on the industry are causing pharmaceutical companies to

rethink the traditional sales process to physicians.

More recently, the Partners Healthcare, Massachusetts' largest hospital and

physician network, will adopt new guidelines prohibiting physicians and

researchers from accepting gifts from pharmaceutical manufacturers. This will

include meals or individual drug samples, and also drug samples left by companies

will be distributed through a centralized system, while educational programs and

fellowships will also be required to be centrally reviewed and approved

Pharmaceutical companies are developing processes to influence the people who

influence the physicians. There are several channels by which a physician may be

influenced, including self-influence through research, peer influence, direct

interaction with pharmaceutical companies, patients, and public or private

insurance companies. There are also web based instruments that can be used to

determine the influencers and buying motives of physicians.

There are a number offirms that specialize in data and analytics for pharmaceutical

marketing.

Individual research

Physicians discover pharmaceutical information from such sources asthe Physician's Desk Reference and online sources such as PDR.net, as well as via

PDAs with applications.

They also rely upon pharmaceutical-branded e-detailing sites, pharmaceutical sales

and non-sales representatives, and scholarly literature. Scholarly literature can be

in the form of medical journal article reprints, often delivered by sales

representatives at their place of employment or at conference exhibitions.


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Peer influence

Key opinion leadersKey opinion leaders (KOL), or "thought leaders", are respected individuals, such as

prominent medical school faculty, who influence physicians through theirprofessional status. Pharmaceutical companies generally engage key opinion

leaders early in the drug development process to provide advocacy and key

marketing feedback.Some pharmaceutical companies identify key opinion leaders

through direct inquiry of physicians (primary research).

ColleaguesPhysicians acquire information through informal contacts with their colleagues,

including social events, professional affiliations, common hospital affiliations, andcommon medical school affiliations. Some pharmaceutical companies identify

influential colleagues through commercially available prescription writing and

patient level data. Doctor dinner meetings are an effective way for physicians to

acquire educational information from respected peers. These meetings are

sponsored by some pharmaceutical companies.

A successful product or service means nothing unless the benefit of such a service

can be communicated clearly to the target market. An organisations promotionalstrategy can consist of:

Advertising: Is any non personal paid form of communication using any form ofmass media.

Public relations: Involves developing positive relationships with the organisationmedia public. The art of good public relations is not only to obtain favorable

publicity within the media, but it is also involves being able to handle successfully

negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term. Couldinvolve using money off coupons or special offers.

Personal selling: Selling a product service one to one.


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Direct Mail: Is the sending of publicity material to a named person within anorganisation. There has been a massive growth in direct mail campaigns over thelast 5 years. Spending on direct mail now amounts to 18 bn a year representing11.8% of advertising expenditure ( Source: Royal Mail 2000). Organisations can

pay thousands of pounds for databases, which contain names and addresses ofpotential customers.

Direct mail allows an organisation to use their resources more effectively byallowing them to send publicity material to a named person within their targetsegment. By personalising advertising, response rates increase thus increasing thechance of improving sales. Listed below are links to organisation who's businessinvolves direct mail.

www.royalmail.co.uk/atwork

www.dmis.co.uk

www.dmconcepts.co.uk

www.marketline.co.uk


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Mix Element Advantages Disadvantages

Advertising Good for building awareness

Effective at reaching a wide

audience

Repetition of main brand and product positioning helps buildcustomer trust

Impersonal - cannot answer alla customer's questions

Not good at getting customersto make a final purchasing

decision

Personal

Selling

Highly interactive - lots o

communication between the buyerand seller

Excellent for communicating

complex / detailed productinformation and features

Relationships can be built up -important if closing the sale maketake a long time

Costly - employing a sales

force has many hidden costs inaddition to wages

Not suitable if there are

thousands of important buyers

Sales

Promotion

Can stimulate quick increases insales by targeting promotionalincentives on particular products

Good short term tactical tool

If used over the long-term,customers may get used to theeffect

Too much promotion maydamage the brand image

Public

Relations

Often seen as more "credible" -since the message seems to be

coming from a third party (e.g.magazine, newspaper)

Cheap way of reaching manycustomers - if the publicity isachieved through the right media

Risk of losing control - cannotalways control what other

people write or say about yourproduct


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p r o m o t i o n - a d v e r t i s i n g : i n t r o d u c t i o n

The Institute of Practitioners in Advertising (IPA), the body which representsadvertising agencies, defines advertising as:

"The means of providing the most persuasive possible selling message to theright prospects at the lowest possible cost".

Kotler and Armstrong provide an alternative definition:

"Advertising is any paid form of non-personal presentation and promotion of

ideas, goods and services through mass media such as newspapers, magazines,

television or radio by an identified sponsor".

There are five main stages in a well-managed advertising campaign:

Stage 1: Set Advertising Objectives

An advertising objective is a specific communication task to be achieved with aspecific target audience during a specified period of time. Advertising objectivesfall into three main categories:

(a) To inform - e.g. tell customers about a new product

(b) To persuade - e.g. encourage customers to switch to a different brand

(c) To remind - e.g. remind buyers where to find a product

Stage 2: Set the Advertising Budget

Marketers should remember that the role of advertising is to create demand for aproduct. The amount spent on advertising should be relevant to the potential sales

impact of the campaign. This, in turn will reflect the characteristics of the productbeing advertised.

For example, new products tend to need a larger advertising budget to help buildawareness and to encourage consumers to trial the product. A product that is highlydifferentiated may also need more advertising to help set it apart from thecompetition - emphasising the points of difference.

Setting the advertising budget is not easy - how can a business predict the rightamount to spend. Which parts of the advertising campaign will work best and


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which will have relatively little effect? Often businesses use "rules-of-thumb" (e.g.advertising/sales ratio) as a guide to set the budget.

Stage 3: Determine the key Advertising Messages

Spending a lot on advertising does not guarantee success (witness the infamousJohn Cleese campaign for Sainsbury). Research suggests that the clarity of theadvertising message is often more important than the amount spent. Theadvertising message must be carefully targeted to impact the target customeraudience. A successful advertising message should have the followingcharacteristics:

(a) Meaningful - customers should find the message relevant

(b) Distinctive - capture the customer's attention

(c) Believable - a difficult task, since research suggests most consumers doubt thetruth of advertising in general

Stage 4: Decide which Advertising Media to Use

There are a variety of advertising media from which to chose. A campaign may useone or more of the media alternatives. The key factors in choosing the right media

include:

(a) Reach - what proportion of the target customers will be exposed to theadvertising?

(b) Frequency - how many times will the target customer be exposed to the

advertising message?

(c) Media Impact - where, if the target customer sees the message - will it havemost impact? For example does an advert promoting holidays for elderly peoplehave more impact on Television (if so, when and which channels) or in a national

newspaper or perhaps a magazine focused on this segment of the population?

Another key decision in relation to advertising media relates to the timing of thecampaign. Some products are particularly suited to seasonal campaigns ontelevision (e.g. Christmas hampers) whereas for other products, a regularadvertising campaign throughout the year in media such as newspapers and


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specialist magazines (e.g. cottage holidays in the Lake District) is moreappropriate.

Stage 5: Evaluate the results of the Advertising Campaign

The evaluation of an advertising campaign should focus on two key areas:

(1) The Communication Effects - is the intended message being communicatedeffectively and to the intended audience?

(2) The Sales Effects - has the campaign generated the intended sales growth. Thissecond area is much more difficult to measure.

p r o m o t i o n - p u b l i c r e l a t i o n s

Introduction

The Institute of Public Relations defines public relations as follows:

The planned and sustained effort to establish and maintain goodwill and

mutual understanding between an organisation and its publics

What is meant by the term publics in the above definition?

A business may have many publics with which it needs to maintain good

relations and build goodwill. For example, consider the relevant publics for apublicly-quoted business engaged in medical research:

Employees Shareholders Trade unions Members of the general public Customers (past and present) Pressure groups

The medical profession Charities funding medical research Professional research bodies and policy-forming organisations The media Government and politicians

The role of public relations is to:


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Identify the relevant publics Influence the opinions of those publics by:o Reinforcing favourable opinionso Transforming perhaps neutral opinions into positive oneso Changing or neutralising hostile opinions

Public relations techniques

There are many techniques available to influence public opinion, some of whichare more appropriate in certain circumstances than others:

Consumer communication

Customer press releases

Trade press releasesPromotional videosConsumer exhibitionsCompetitions and prizesProduct launch eventsCelebrity endorsementsWeb sites

Business communication

Corporate identity designCompany and product videosDirect mailingsWeb siteTrade exhibitions

Internal / employee communication

In-house newsletters and magazinesIntranet

Notice boardsEmployee conferencesEmail


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External corporate communication

Company literature (brochures, videos etc.)Community involvement programmes

Trade, local, national and international media relations

Financial communication

Financial media relationsAnnual report and accounts

Meetings with stock market analysts, fund managers etcShareholder meetings (including the annual general meeting

Given the wide range of techniques used in public relations, how is it possible tomeasure the effectiveness of public relations?

It is actually quite difficult to measure whether the key messages have beencommunicated to the target public. In any event, this could be quite costly since itwould involve a large amount of regular research. Instead, the main measures ofeffectiveness concentrate on the process of public relations, and include:

Monitoring the amount of media coverage obtained (press cuttings agencies playa role in keeping businesses informed of this)

Measuring attendance at meetings, conferences

Measuring the number of enquiries or orders received in response to specific

public relations efforts.


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p r o m o t i o n - s a l e s p r o m o t i o n

Introduction

A good definition of sales promotion would be as follows:

An activity designed to boost the sales of a product or service. It may include an

advertising campaign, increased PR activity, a free-sample campaign, offering free

gifts or tradin g stamps, arrangin g demonstration s or exhibitions, settin g up

competition s with attractive prizes, temporary price reductions, door-to-door

calling, telemarketing, personal letters on other methods.

More than any other element of the promotional mix, sales promotion is aboutaction. It is about stimulating customers to buy a product. It is not designed to beinformative a role which advertising is much better suited to.

Sales promotion is commonly referred to as Below the Line promotion.

Sales promotion can be directed at:

The ultimate consumer (a pull strategy encouraging purchase)

The distribution channel (a push strategy encouraging the channels to stockthe product). This is usually known as selling into the trade


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Methods of sales promotion

There are many consumer sales promotional techniques available, summarised in

the table below:

Price promotions

Price promotions are also commonly known as price discounting

These offer either (1) a discount to the normal selling price of a product, or (2)more of the product at the normal price.

Increased sales gained from price promotions are at the expense of a loss in profit so these promotions must be used with care.

A producer must also guard against the possible negative effect of discounting on abrands reputation

Coupons

Coupons are another, very versatile, way of offering a discount. Consider thefollowing examples of the use of coupons:

- On a pack to encourage repeat purchase- In coupon books sent out in newspapers allowing customers to redeem thecoupon at a retailer- A cut-out coupon as part of an advert

- On the back of till receipts

The key objective with a coupon promotion is to maximise the redemption rate this is the proportion of customers actually using the coupon.

One problem with coupons is that they may simply encourage customers to buywhat they would have bought anyway. Another problem occurs when retailers donot hold sufficient stocks of the promoted product causing customerdisappointment.

Use of coupon promotions is, therefore, often best for new products or perhaps toencourage sales of existing products that are slowing down.


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Gift with purchase

The gift with purchase is a very common promotional technique. It is alsoknown as a premium promotion in that the customer gets something in addition

to the main purchase. This type of promotion is widely used for:

- Subscription-based products (e.g. magazines)- Consumer luxuries (e.g. perfumes)

Competitions and prizes

Another popular promotion tool with many variants. Most competition and prizepromotions are subject to legal restrictions.

Money refunds

Here, a customer receives a money refund after submitting a proof of purchase tothe manufacturer.These schemes are often viewed with some suspicion by customers particularly ifthe method of obtaining a refund looks unusual or onerous.

Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user incentives. Perhaps the bestexamples of this are the many frequent flyer or user schemes used by airlines, traincompanies, car hire companies etc.

Point-of-sale displays

Research into customer buying behaviour in retail stores suggests that a significant proportion of purchases results from promotions that customers see in the store.Attractive, informative and well-positioned point-of-sale displays are, therefore,very important part of the sales promotional activity in retail outlets.


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p r o m o t i o n - p e r s o n a l s e l l i n g

Introduction

Personal selling can be defined as follows:

Personal selling is oral communication with potential buyers of a product with the

intention of making a sale. The personal selling may focus initially on developing a

relation ship with the potential buyer, but will always ultimately end with an

attempt to "close the sale"

Personal selling is one of the oldest forms of promotion. It involves the use ofa sales force to support a push strategy (encouraging intermediaries to buy the

product) or apull strategy (where the role of the sales force may be limited tosupporting retailers and providing after-sales service).

What are the main roles of the sales force?

Kotler describes six main activities of a sales force:

(1) Prospecting - trying to find new customers

(2) Communicating - with existing and potential customers about the product

range

(3) Selling - contact with the customer, answering questions and trying to close thesale

(4) Servicing - providing support and service to the customer in the period up to

delivery and also post-sale

(5) Information gathering - obtaining information about the market to feedbackinto the marketing planning process

(6) Allocating - in times of product shortage, the sales force may have the powerto decide how available stocks are allocated

What are the advantages of using personal selling as a means of promotion?

Personal selling is a face-to-face activity; customers therefore obtain a relativelyhigh degree of personal attention


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The sales message can be customised to meet the needs of the customer

The two-way nature of the sales process allows the sales team to respond directlyand promptly to customer questions and concerns

Personal selling is a good way of getting across large amounts of technical orother complex product information

The face-to-face sales meeting gives the sales force chance to demonstrate theproduct

Frequent meetings between sales force and customer provide an opportunity tobuild good long-term relationships

Given that there are many advantages to personal selling, why do more businessesnot maintain a direct sales force?

Main disadvantages of using personal selling

The main disadvantage of personal selling is the cost of employing a sales force.Sales people are expensive. In addition to the basic pay package, a business needsto provide incentives to achieve sales (typically this is based on commission and/or

bonus arrangements) and the equipment to make sales calls (car, travel and

subsistence costs, mobile phone etc).

In addition, a sales person can only call on one customer at a time. This is not acost-effective way of reaching a large audience.

p r o m o t i o n - p u s h a n d p u l l s t r a t e g i e s

"Push or Pull"?

Marketing theory distinguishes between two main kinds of promotional strategy -"push" and "pull".

Push

A push promotional strategy makes use of a company's sales force and tradepromotion activities to create consumer demand for a product.

The producer promotes the product to wholesalers, the wholesalers promote it toretailers, and the retailers promote it to consumers.


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A good example of "push" selling is mobile phones, where the major handsetmanufacturers such as Nokia promote their products via retailers such as CarphoneWarehouse. Personal selling and trade promotions are often the most effective

promotional tools for companies such as Nokia - for example offering subsidies onthe handsets to encourage retailers to sell higher volumes.

A "push" strategy tries to sell directly to the consumer, bypassing other distributionchannels (e.g. selling insurance or holidays directly). With this type of strategy,consumer promotions and advertising are the most likely promotional tools.

Pull

A pull selling strategy is one that requires high spending on advertising andconsumer promotion to build up consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the product, theretailers will ask the wholesalers, and the wholesalers will ask the producers.

A good example of a pull is the heavy advertising and promotion of children'stoys mainly on television. Consider the recent BBC promotional campaign for itsnew pre-school programme the Fimbles. Aimed at two to four-year-olds, 130episodes of Fimbles have been made and are featured everyday on digitalchildren's channel CBeebies and BBC2.

As part of the promotional campaign, the BBC has agreed a deal with toy makerFisher-Price to market products based on the show, which it hopes will emulate the

popularity of the Tweenies. Under the terms of the deal, Fisher-Price will develop,manufacture and distribute a range of Fimbles products including soft, plastic andelectronic learning toys for the UK and Ireland.

In 2001, BBC Worldwide (the commercial division of the BBC) achieved sales of90m from its children's brands and properties last year. The demand created from

broadcasting of the Fimbles and a major advertising campaign is likely to pulldemand from children and encourage retailers to stock Fimbles toys in the stores

for Christmas 2002.


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m a r k e t i n g p l a n n i n g - s t r a t e g i c m a r k e t i n g p r o c e s s

Macdonald (1995) suggests that several stages have to be completed in order toarrive at a strategic marketing plan. These are summarised in the diagram below:

The extent to which each part of the above process needs to be carried out dependson the size and complexity of the business.

In an un diversified business, where senior management have a strong knowledgeand detailed understanding of the overall business, it may not be necessary toformalise the marketing planning process.

By contrast, in a highly diversified business, top level management will not haveknowledge and expertise that matches subordinate management. In this situation, itmakes sense to put formal marketing planning procedures in place throughout theorganisation.


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m a r k e t i n g p l a n n i n g - m i s s i o n

Mission

A strategic marketing plan starts with a clearly defined business mission.

Mintzberg defines a mission as follows:

A mission describes the organisations basic function in society, in terms of

the products and services it produces for its customers.

A clear business mission should have each of the following elements:

Taking each element of the above diagram in turn, what should a good missioncontain?

(1) A Purpose

Why does the business exist? Is it to create wealth for shareholders? Does it existto satisfy the needs of all stakeholders (including employees, and society at large?)


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(2) A Strategy and Strategic Scope

A mission statement provides the commercial logic for the business and so definestwo things:

- The products or services it offers (and therefore its competitive position)- The competences through which it tries to succeed and its method of competing

A business strategic scope defines the boundaries of its operations. These are setby management.

For example, these boundaries may be set in terms of geography, market, businessmethod, product etc. The decisions management make about strategic scope definethe nature of the business.

(3) Policies and Standards of Behaviour

A mission needs to be translated into everyday actions. For example, if thebusiness mission includes delivering outstanding customer service, then policiesand standards should be created and monitored that test delivery.

These might include monitoring the speed with which telephone calls are answeredin the sales call centre, the number of complaints received from customers, or the

extent of positive customer feedback via questionnaires.

(4) Values and Culture

The values of a business are the basic, often un-stated, beliefs of the people whowork in the business. These would include:

Business principles (e.g. social policy, commitments to customers) Loyalty and commitment (e.g. are employees inspired to sacrifice their personalgoals for the good of the business as a whole? And does the business demonstrate ahigh level of commitment and loyalty to its staff?)

Guidance on expected behaviour a strong sense of mission helps create a workenvironment where there is a common purpose

What role does the mission statement play in marketing planning?

In practice, a strong mission statement can help in three main ways: It provides an outline of how the marketing plan should seek to fulfil the mission


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It provides a means of evaluating and screening the marketing plan; aremarketing decisions consistent with the mission? It provides an incentive to implement the marketing plan

m a r k e t i n g p l a n n i n g - s e t t i n g m a r k e t i n g o b j e c t i v e s

Introduction

Objectives set out what the business is trying to achieve.

Objectives can be set at two levels:

(1) Corporate level

These are objectives that concern the business or organisation as a whole

Examples of corporate objectives might include: We aim for a return on investment of at least 15% We aim to achieve an operating profit of over 10 million on sales of at least100 million We aim to increase earnings per share by at least 10% every year for theforeseeable future

(2) Functional level

e.g. specific objectives for marketing activities

Examples of functional marketing objectives might include: We aim to build customer database of at least 250,000 households within the next12 months We aim to achieve a market share of 10% We aim to achieve 75% customer awareness of our brand in our target markets

Both corporate and functional objectives need to conform to the commonly

used SMART criteria.

The SMART criteria (an important concept which you should try to remember andapply in exams) are summarised below:

Specific - the objective should state exactly what is to be achieved.


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Measurable - an objective should be capable of measurement so that it ispossible to determine whether (or how far) it has been achieved

Achievable - the objective should be realistic given the circumstances in which it

is set and the resources available to the business.

Relevant - objectives should be relevant to the people responsible for achievingthem

Time Bound - objectives should be set with a time-frame in mind. These deadlines

also need to be realistic.

m a r k e t i n g p l a n n i n g - t h e l i n k w i t h s t r a t e g i c p l a n n i n g

Introduction

Businesses that succeed do so by creating and keeping customers. They do this byproviding better value for the customer than the competition.

Marketing management constantly have to assess which customers they are tryingto reach and how they can design products and services that provide better value(competitive advantage).

The main problem with this process is that the environment in which businessesoperate is constantly changing. So a business must adapt to reflect changes in theenvironment and make decisions about how to change the marketing mix in orderto succeed. This process of adapting and decision-making is known as marketing

planning.

Where does marketing planning fit in with the overall strategic planning of a

business?

Strategic planning (which you will cover in your studies of strategy isconcerned about the overall direction of the business. It is concerned with

marketing, of course. But it also involves decision-making about production andoperations, finance, human resource management and other business issues.

The objective of a strategic plan is to set the direction of a business and create its

shape so that the products and services it provides meet the overall business

objectives.


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Marketing has a key role to play in strategic planning, because it is the job ofmarketing management to understand and manage the links between the businessand the environment.

Sometimes this is quite a straightforward task. For example, in many smallbusinesses there is only one geographical market and a limited number of products(perhaps only one product!).

However, consider the challenge faced by marketing management in amultinational business, with hundreds of business units located around the globe,

producing a wide range of products. How can such management keep control ofmarketing decision-making in such a complex situation? This calls for well-organised marketing planning.

What are the key issues that should be addressed in marketing planning?

The following questions lie at the heart of any marketing (or indeed strategic)planning process:

Where are we now?How did we get there? Where are we heading? Where would we like to be? How do we get there?

Are we on course?

Why is marketing planning essential?

Businesses operate in hostile and increasingly complex environment. The ability ofa business to achieve profitable sales is impacted by dozens of environmentalfactors, many of which are inter-connected. It makes sense to try to bring someorder to this chaos by understanding the commercial environment and bringingsome strategic sense to the process of marketing products and services.

A marketing plan is useful to many people in a business. It can help to:

Identify sources of competitive advantage Gain commitment to a strategy Get resources needed to invest in and build the business Inform stakeholders in the business


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Set objectives and strategies Measure performance

p r o m o t i o n - d i r e c t m a r k e t i n g

Introduction

Direct marketing is concerned with establishing an individual relationship betweenthe business offering a product or service and the final customer.

Direct marketing has been defined by the Institute of Direct Marketing as:

The planned recording, analysis and tracking of customer behaviour to develop

a relational marketing strategies

The process of direct marketing covers a wide range of promotional activities youmay be familiar with. These include:

Direct-response adverts on television and radio Mail order catalogues E-commerce (you bought this marketing companion following tutor2us directmarketing campaign!) Magazine inserts

Direct mail (sometimes also referred to as junk mail)

Telemarketing

Direct mail

Of the above direct marketing techniques, the one in most widespread use is direct

mail.

Direct mail is widely thought of as the most effective medium to achieve acustomer sales response.

Why?

The advertiser can target a promotional message down to an individual level, andwhere possible personalise the message. There are a large number of mailingdatabases available that allow businesses to send direct mailing to potentialcustomers based on household income, interests, occupation and other variables


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Businesses can first test the responsiveness of direct mailing (by sending out atest mailing to a small, representative sample) before committing to the moresignificant cost of a larger campaign

Direct mailing campaigns are less visible to competitors it is therefore possibleto be more creative, for longer

However, direct mail has several weaknesses:

A piece of direct mail is less interactive than a television or radio advert,

although creative packaging can still stimulate customer response

Lead times to produce direct mailing campaigns can be quite long

There is increasing customer concern with junk mail the receipt of unsolicitedmail which often suggests that the right to individual privacy has been breached.

The Direct marketing database

Direct mailing is based on the mailing list a critical part in the direct marketing process. The mailing list is a database which collects together details of past,current and potential customers. A properly managed mailing database enables a

business to:

Focus on the best prospective customers

Cross-sell related products

Launch new products to existing customers

How is the mailing database compiled?

The starting point is the existing information the business keeps on its customers.All forms of communication between a customer and the business need to berecorded so that a detailed, up-to-date profile can be maintained.

It is also possible to buy mailing lists from elsewhere


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LITERATURE REVIEWS OF PROMOTION STRATEGY

By Charles Boulakia

Promotion strategy as one of the four major facets of marketing. We defined

promotion strategy as figuring out how to advertise and sell your product. When

we discussed promotion strategy in more detail, we learned that it could be divided

up into two large sections: mass marketing strategy and personal selling strategy.

We learned that the first choice you must make in defining your promotion strategy

is whether to concentrate on "personal selling" (selling your product door-to-door)

or on "mass marketing" (announcing your product to the world). Although people

usually want to do both, we learned that which one you focus on will depend on

the product you are trying to sell. We used the example of a multimillion-dollarelectronic imaging product as the perfect product for a personal selling strategy.

As a scientist, you may be interested in the personal selling part of promotion

strategy for two reasons. As the entrepreneur who has invented this multimillion-

dollar electronic imaging product, you might be interested in figuring out exactly

how you would sell it using a personal selling strategy. As the scientist who has

worked in the field of electronic imaging and is sick of "the bench" because you

want more personal interaction in your job, you might be interested in personal

selling as a career choice: What kinds of things do you need to know in order to become an effective salesperson? We're going to tackle both in this series: This

month, we'll discuss it from the entrepreneur's point of view; next month, from the

salesperson's.

Designing an Effective Personal Selling Strategy

A personal selling strategy works best for a complex, technical, unique,

customized product with a poorly informed client. That's why our multimillion-

dollar electronic imaging product is perfect. It's so complex and technical you needa trained, informed person to explain it to its highly specialized customer. It's likely

to have to be customized for each individual sale, and its client doesn't have the

time to read up on all the different ones on the market and why yours is better (and

is thus uninformed).


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To address all of these unique needs, you have to design your personal selling

strategy to have three key elements: a knowledgeable salesperson or sales team, an

understanding of your client, and a sales structure designed to give the salesperson

enough power to make an irregular sale but still get rewarded for it.

The Salesperson

The salesperson is the key to your personal sales strategy. So when you're

recruiting salespeople, you should be willing to recruit the best and expect to pay

them a premium. There are two routes you can follow: You can hire someone with

a good sales background and teach them about the science (or product); or you can

hire someone with a good scientific background and teach them about sales.

Usually, the choice you make will depend on how complicated your product is and

who your customers are. An electronic imaging product is likely to be prettytechnical, and your customer will likely be a doctor or a scientist, so you'll want a

scientist to be your salesperson, both for credibility reasons and to give the

customer what they're looking for. If the person buying your product is a hospital

administrator, you might think about hiring someone with sales experience instead,

because the administrator will be used to buying from nontechnical people and will

likely be more bottom-line oriented.

The salesperson is your only link to the client. This means that they need to know

the product inside and out, so that when the customer has a question or an issuewith the product, it can be addressed immediately and not shuffled off to another

staffperson. They also need to know the competitors' products, so they can give

accurate representations of why your imaging technology is better. So to allow the

salesperson to do their job well, you need to give them lots of information. You

also need to give your sales force considerable power. Power to make a deal.

Power to say "yes" to needed product customizations. And, of course, the power to

say "no" to a deal that won't make the company money.

Remember, also, that the salesperson is more than just a sales agent: They're aresearch and development tool. Their interactions with customers give you more

information about what modifications need to be done to your product than any

other source. They're market intelligence (because they know what other products

are being sold, and why) as well as a way of making your own product more

customer-oriented.


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The Client

Throughout the marketing section, we've used the phrase "Know your client." It's

just as important here as anywhere else. By understanding what your client needs

in a product, you can better give the salesperson the tools they can use to fulfill thatneed. By understanding what a customer wants in a salesperson, you can tune your

sales team to be just that. Do they want a half-hour presentation or just a 12-second

pitch? A customized product they help design (and maybe write a paper on) or a

ready-to-use product, in their lab, tomorrow? Or maybe the purchaser isn't the user

at all: A hospital administrator makes the purchase decision, and a doctor uses the

machine. Understanding this will help keep you from wasting salesperson time on

selling the machine to the doctor, who's not authorized to buy it anyway.

The Sales Structure

Remember: In a personal selling strategy, your salesperson is your best friend. But,

depending on the system you've set up for them, that person can also be your worst

enemy. Determining an appropriate incentive system for a sales force can be the

most difficult job you'll have as a business person. The key is to keep your sales

force motivated, without any loopholes that they can use to take advantage of the

system. For example: By giving quarterly sales quota-based bonuses but also

giving the salesperson the authority to make big discounts, chances are, you're

going to get a lot of sales late in the quarter (as the salesperson desperately tries tomake their quota). But you'll also see a cost to those sales: Chances are, they'll be

discounted quite significantly, affecting your company's profits.

Determining a good incentive system for your sales force is very difficult and

depends very much on what you're trying to do and the product you're trying to

sell. You can reward the sales team based on short-term sales goals, long-term

sales, repeat sales, customer support, number of new prospects, underbudgeted

expense reports, or a whole lot of other things, but chances are, you'll have to fine-

tune this structure as your business evolves, to emphasize what you want yoursales force to do. Above all else, remember that your sales force isn't stupid and

that they spend about as much time thinking about their paycheck as they do trying

to sell your product, so the incentive structure you design will determine the

behavior your customer sees.


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As per looking all the aspect which are discussed above I have got view of all the

promotional strategy and the can be used how these strategy useful of the

marketing the product of the company

Joanne FensomeRegional Director of Healthcare,Asia Pacific Ogilvy PublicRelations WorldwideHong Kong

Development of meaningful and cohesive marketing strategies in Asia is one of thehottest topics in the pharmaceutical industry today. Multinational pharmaceuticalcompanies are increasingly looking to Asia to drive sales growth. Marketing issimultaneously recognized by the industry as vital for product success and derided

by the media as the main reason for high drug prices. Meanwhile regional and localmarket strategies are needed in an increasingly complex and ever changingmarketplace to achieve results.

Asias market potential has been widely discussed. Nearly 4 billion people,

coupled with economic growth, increasing affluence and a projected increase inchronic diseases offer an opportunity to boost revenues at a time when blockbusterdrugs are nearing the end of their product lifecycle in the US and Europe.

Asia, however, is not without challenges. Multiple countries with different

cultures, languages, socio-economic groups and regulatory/legal systems, meanstrategies can only be regionalised to a certain extent, after which country-specificapproaches are needed. Even within some countries disparities of affluence andeducation can be associated with different healthcare expectations. Success in Asiawill depend upon the ability of marketers to navigate the local environment withglobally developed products.


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From global to regional to local

The pharmaceutical industry is globally driven. Diseases and epidemics are globaland prescription products designed to treat them are necessarily researched anddeveloped by central teams, although it should be noted that clinical trials are

being carried out and the drugs themselves being manufactured in the region.

Global marketing teams are also tasked with developing the business plans andstrategies that include marketing elements such as product proposition, brandingand pricing parameters. Of the four marketing Ps (product, price, place and

promotion), this essentially leaves local marketers with Place and Promotion tostrategise. But, pharmaceutical product distribution channels are generallyconsistent for all companies within each market so promotion is the avenue wheremarketers can truly have an impact in the local market setting.

Prescription-products promotion

Promotional marketing strategies are impacted by factors such as product lifecyclestage, market position, disease area and competitive activity. The one constant

factor is that physicians will ultimately have to write the prescription.

Physicians have therefore been the focus of most marketing campaigns. But, today,the environment in which physicians are operating is changing and they areincreasingly influenced by many different groups and individuals with a stake inthe choice of treatment.

The changing environment impacting treatment decisions

Payers, reimbursement decision-makers and governments can all impact treatmentavailability and patient access. Nurses, pharmacists and other healthcare

professionals can influence physician perceptions. Professional organisationsdeveloping treatment guidelines can influence best practice. Patient organisations


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can influence patients, governments and physicians. Retailers can interpret generic prescriptions and influence customers. Finally, patients, their families andcaregivers, are becoming pro-actively involved in researching disease areas,learning about treatments and discussing options with their physicians.

This changing environment means that marketing strategies cannot just focus onphysicians rather they need to address the broader group now influencing treatmentdecisions.

Marketing strategies for influencers

Effectively navigating the influencer group needs in-depth, in-country marketresearch. Each countrys healthcare system, legal and regulatory environment,culture and socio-economic differences will impact the influencer group. Butresearch in the following areas will help to define, understand and target themeffectively:

Who are the influencers, what is their role and at what stage of the treatmentdecision process are they involved?

What motivates each group? Which information channels do they routinely use?How do they like to be talked to? For example hypertension, morbidity andmortality may mean a lot to physicians, but to most influencers who are notmedically trained high blood pressure may be more relevant.

Brands, not just drugs

Pharmaceutical products are no longer just drugs they are brands. Lipitor,Viagra,Prozac are all widely recognized pharmaceutical products that demonstrate the

effectiveness of branding. Through a brand it is possible to communicate apromise, an essence, and aspiration. And, branding builds loyalty.


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In most cases brands are created by the global team, but local market strategiesmust continue to build upon this promise by carrying the brand through allelements of the marketing mix.

Prescription products in the consumer world

Prescription products are no longer the domain of physicians and healthcare professionals. Many who influence treatment decisions are not medically trainedand prescription products must now be positioned within a wider consumerenvironment.

This is, however, at odds with the legal restrictions around the promotion of products as consumer marketing and direct to consumer activities are stillprohibited in much of the world the US being the obvious exception.

The challenge is that prescription product information is already available to thegeneral public in the majority of countries. This is mainly due to globalisation ofthe worlds media and accessibility of the Internet through which information fromthe US is shared. Availability of this information is not going to change, we cant

turn the lock back, but pharmaceutical companies can develop strategies thatsupport educational initiatives by other organisations and ensure accurateinformation is in the public domain.

The power of the media

Consumer media, such as newspapers, magazines, radio and television, reachmillions of people throughout Asia on a daily basis and the media is increasingly

interested in reporting on disease trends, drug developments and pharmaceuticalcompany activities. With the increasing level of media interest, it is necessary to

develop both proactive and reactive media strategies to ensure that accurateinformation is reaching the right people at the right time. Pharmaceuticalcompanies can particularly play a role in educating journalists about diseases andtreatment options. In Asia, there are fewer healthcare-specific journalists, but this


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does not make the media any less influential. This knowledge gap provides a realopportunity.

The Internet explosion

One billion people use the Internet and Asia accounts for the largest percentage ofthese users - 36 percent. Without a doubt, the Internet is readily available, muchused and a major source of healthcare information. Patients sitting anywhere in theworld can find out about their disease and treatment options. Not all information,however, is equal. Many sites are inaccurate and it is prudent for companies to

develop Internet strategies and alliances that direct patients and physicians tocredible websites with accurate information. And, as if websites werent enough,

blogging now adds another dimension to the online patient experience.

Patient empowerment

Patient organisations are growing in number across Asia in many disease areas.These groups represent patients interests in many ways, be it providing diseaseandtreatment information to individuals or representing patient perspectives in themedia, with governments or physicians. These groups, however, need funding andthis comes from a variety of sources, including the pharmaceutical industry. As aminimum, companies should work with third party organisations to ensure that theinformation they are providing patients about treatment options is accurate. But,more effective partnerships can be developed when common areas of focus

between company and organisation marketing strategies can be identified and co-sponsored programs conducted.

Back to the industry-physician relationships

Against this backdrop of increasing influence, interference and awareness physicians still need to be in a position to treat patients with the best availablemedical care. Ultimately, the prescription they write is their decision and unlessthat situation changes, physicians must remain at the heart of prescription- productmarketing.


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Marketing to physicians is not new, but the interaction and co-dependentrelationship

between industry and physicians is complicated, often criticised and has raisedethical concerns within the profession. But while physicians need new products totreat their patients and pharmaceutical companies are able to develop such

products, the two groups will need to interact.

Pharmaceutical companies and physicians do interact frequently and in a numberof ways sales representative visits, medical conference attendance, research

funding, speaker engagements and continued medical education (CME) funding, toname a few. These tactics, however, need to be part of an overall strategicapproach that can be determined by gaining a greater understanding of physician

attitudes, beliefs, needs, motivators, prescribing habits and preferred informationchannels through research.

Sales representatives will remain the most important vehicle for communicatingwith physicians - they are the face of the company and are able to provideindividualised information that drives prescriptions. Much has been written aboutsales force effectiveness - too much to cover here - but marketing teams cansupport their representatives by implementing strategies that create an environmentthat removes potential prescribing barriers and surrounds physicians with positive

product reinforcement.

In summary

Marketing strategies will play an important role if Asia is to realise its potential.

These strategies, however, should be tailored to the region and its countries.Moreover, they will need to encompass not only the physician audience but also

increasingly the influencers who have the power to make or break a product.Finally, pharmaceutical companies will need to become experienced in navigatingthe consumer space with prescription products and ultimately turning

pharmaceutical marketing into brand marketing.


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Methodology

The methodology used while preparing the report is exploratory. In this research

process information is collected from available source of information. This

involves collection and analysis of any published data for a purpose other than thecurrent one.

Interview are also conducted in this methodology the interviewee were the

employee of the company so the data collected in the research was secondary data.

Finding

The research say that in the promotional strategy used by the companies is almost

same the Medical representative who visit to doctor and explain the dose and the

benefit of the drugs and try to increase sales by increasing the prescription give by

the doctor. They also make meet chemist and the distributor who are directly

indirectly the power of increasing the sales of the company.

Taking the example of the advertising were Ranbaxy is using it for its product like

Chericof , Revital, and Volini. While chericof is a cough syrup which can be

consume directly without consulting doctor and advertising is making a good

money for company. Revital which is vitamin mix capsules providing energy this

direct that the people suffering from the weakness can consume it without

consulting doctor and Volini is the ointment which is also a pain killer which is

also promoted in the market through advertising the this product while Troikaa

also have the product like Dynaper which is also a pain killer and have effective

business against volini and also have its ointment though the product is not been

promoted through advertising. Ranbaxy have used its wish and right way of

promotion through advertising which Troikaa is using its resources to reach

doctors as well as consumer.

The other form of promotional strategy which are explained above are also used bythe companies here they used push and pull strategy the medical representative use

this promotional strategy at the end of the month when it is the time of closing as

they have to complete the target they force to the stockiest to give order so that the

sale can increased as well the target are also achieved.


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Both the companies are also doing there promotional activities by doing free check

up camps and providing drugs of their own company this spreads awareness in the

consumer while doctor gets benefited by new patients as well company provide

instrument to doctor which are further beneficial to the doctor. This also increases

the goodwill of the doctor and the company. This increases the public relation ofdoctor as well as of company as company provide costly medicine at free of cost at

such camps.

Both the company use the point of purchase strategy. They provide facility to the

chemist to display their product which will give rise and awareness in the

consumer. They decorate the front desk which the brand name and give a case to

put them in an attractive way which help both the company and the chemist to

increase the sales.

Implementation

These strategies are the best of the market which can provide a high return to

company. Many companies at small scale industry are in the business of drugs

manufacturing a single product which can easy get vanished from the market by

any new entrant. So increasing the product line or length accordingly can sustain

them in the market as well as the promotional strategy which are terms above canbe beneficial to business as these strategy can also prove themselves in small scale

industry. Increasing the promotional tools like advertising can give rise to their

product as well the awareness in the market. The small company can also increase

its own business by providing product to consumer or can increase its sales by

supplying is best quality product to some good company which already have good

market share, goodwill in the market.

The strategy like push and pull, personal selling and advertisement can definitely

can make company profile, business and goodwill in the market.


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Reference

Mr. Jitendra an employee of Ranbaxy Lab in Ahmedabad. Having work

experience of three year. His contact number is 9374610968.

Mr. Pratish, employee of Troikaa Pharmaceuticals in Ahmedabad. Having work

experience of eight year in the pharma industry. His contact number is 982522139.

BIBLIOGRAPHY:-

www.pharmafocusasia.com

http://sciencecareers.sciencemag.org

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2.^ "Glossary Term: Key Opinion Leader".3.^ "www.pharmexec.com".4.^ "Teradata Magazine | Special Section: Pharmaceutical".5.^ "www.chmeds.ac.nz".6.^ "www.chmeds.ac.nz".7.^ "www.pharmexec.com".8.^ "Narrative Review: The Promotion of Gabapentin: An Analysis of Internal

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10.Consumer behavior text book of Icfai university, edition May 2005.