PROJECT REPORT on pharma

8/7/2019 PROJECT REPORT on pharma

1/44

PROJECT REPORTMarket Analysis of Doxophylline,

Gemifloxacin and

Deflazacort in Jaipurat

Dr. Reddy Laboratories Ltd.

A RE P O R T S U B M I T T E D IN FUL F I L LMENT OF T H E RE Q U I R E M E N T SOF P G D M P R O G R A M OF ACCMAN INS T I TUT E OFMANAGEMENT ,

GREAT ER NOIDASubmitted to: Submitted by:Area Sales Manager Roopesh

Kumar Sain


2/44

Dr. Reddys Lab. Ltd. PGDMJaipur


3/44

Declaration


4/44

Batch: - 2008-10CERTIFICATE

This is to certify that the project work done on Market Analysis of

Doxophylline,Gemifloxacine and Deflazacort in Jaipursubmitted to

Mr. NandanSingh (Area Sales Manager) is in partial fulfillment of the

requirement for the award of

Post Graduate Diploma in Management, is a bonafide work carried

out by me at Dr.

Reddys Laboratories Ltd.

DATE: 11/July/2009 Roopesh Kumar SainRoll No. 44


5/44

PREFACE

The Companies that best satisfy their customer will be the winners. It is the special

responsibility of marketers to understand the need and wants of the market place and to

help their companies not merely looking for sales they are investing in long term,

mutually satisfying customer relationships based on delivery quality, service and value.

Philip Kotlar

Summer Training is a necessary part for fulfillment of PGDM course. The Summer

Training has given a chance to try and apply the academic knowledge into the Business

Environment and gain insight of Corporate Culture.

I undertook my training at Dr. Reddys Laboratories Ltd., a top ranking and listed

organization in the pharmaceutical industry. According to industry specialists,Dr. Reddy

has the art of reverse engineering of the production process and made it highly

costefficient.With the help of effective marketing strategies DRL not only successfully

establishes products in the market but also cover a good market share and earn a goodamount of profit.1


6/44

ACKNOWLEDGEMENT

It was a beatifying experience to be attached to such a reputed organization,which is a

pharmaceutical company and known for its aggressive adopting and marketingstrategies

in India. I express my deep sense of gratitude to Dr. Reddys Laboratories Ltd.forproviding me an opportunity to complete my summer training project.

I would like to thank Mr. Nandan Singh (Area Manager) and his team for theirconstant support and providing the itinerary at all stages of the project.

I also offer my sincere gratitude to Prof. Rajeev Kumar, Director and Prof.S.C.Ghosh,Chief CRIC ofAccman Institute of Management for his usefulsuggestions, help and support.

With regards,Roopesh Kumar Sain

PGDM (2008-2010)


7/44

S.No Contents PageNo

1 Executive Summary 5

2 Introduction 73 Objective 11

4 About Dr. Reddys Lab. Ltd.a) History of companyb) Board & Management

c) Infrastructure

12

5 Pharmaceutical Industry 17

6 Heriarchy of marketing department 26

7 Molecule Introductiona) Gemifloxacinb) Deflazacortc) Doxophylline

27

8 Managing sales force 309 Product positioning 3110 Competitor analysis 32

11 SWOT analysis 35

12 Field work 3713 Market surfing 3914 Research & methodology 43

15 Data analysis 45

16 Finding 5517 Recommendation 56

18 Conclusion 5819 Bibliography 59

20 Questionnaire 60.


8/44

EXECUTIVE SUMMARY

This project was undertaken for a period of eight weeks at Dr. Reddys Laboratories

Ltd.for the partial fulfillment of the PGDM (Post Graduate Diploma in Management)coursefrom Accmam Institute of Management, Greater Noida. The objective of the projectwasto evaluate the present market share of DRL, deal with retailers to lure more customersand toultimately increase its market share. To complete this project, a survey was conductedonretailers with the help of questionnaire in the Jaipur. The sample size was decided byMr.

Nandan Singh, which were 42 retailers. All the retailers selected in the sample had allthreeproducts of DRL (Doxobid, Gem One, and Asteroid). After the survey, it was observedthatsale of all three drugs is good and the same would directly have an impact on themarket shareof the company. In SMS Hospital region, a lot of marketing strategies had been alreadyapplied by the company. Among these strategies, strategy for Asteroid was anabsolutely newconcept and it had an innovative way to attract more & more retailers.The basic purpose of these strategies is to enhance the demand of products by

temporarilyincreasing their value to the purchaser. A major area of improvement that the companyshouldlook at is retailer awareness about retailer centric schemes. The same came to lightduring thesurvey, wherein it was observed that most of the retailers do not have properinformation evenabout retailer centric schemes being offered by the company. The MR of the companyisdoing his job with good result; they are well equipped with product scientific knowledge.They should be properly equipped by complete knowledge of the products so that theycangive proper knowledge to the retailers. The company should be more liberal in givingthelittle bit knowledge to retailer about the products so that they can sale companys

products.


9/44

INTRODUCTIONIndias second largest pharmaceutical company by revenue, Dr Reddys LaboratoriesLtd(DRL) .The Company consists ofActive Pharmaceutical Ingredient Business (API),Custom Pharma Services (CPS), Generics, Generics Biopharmaceuticals,

Differentiated Formulation, New Chemical Entities (NCEs).

API include Ciprofloxacin, Omeprazole and Sumatriptan Succinate of Canadian DMFs,Ibuprofen, Ranitidine HCl form 1 and Cipro HCl of CEP and Omeprazole,S+Ibuprofenand Valsartan, Ramipril, Risedronate Sodium and Nizatidin of US DMFs. Its CPS is, thelargest CPS player from India and a partner-of-choice to innovators, offering top-end


10/44

technical expertise, tailor-made pharma solutions and a track record of bringinginnovations to the market quickly, efficiently and economically. Generic business ofcompany is always a challenge for other pharma companies. It includes brandedgenericsand unbranded generics. In the branded generics include Omez, Ciprolet, Nise, Enam,

Ketorol, Exifine and Cetrine enjoy leadership positions in several key markets, includingIndia, Romania, Venezuela, Russia & the CIS countries. Dr. Reddys brands areavailable in nearly 100 countries and generate revenue is more than Rs.69.4billion.Some of DRL's brand names are old as its age, but the corporation is relatively young.DRL was founded in 1984 by a simple man Dr. Anji Reddy. Betapharm (Germany) wasacquired in 2006 (which is the fourth largest generic producer in Germany), with thehelpof this company.DRL is able to covered a large market share in the generic section intheglobal market.

DRL offers product choices to meet a broad variety of needs and preference - fromfunfor-you items to product choices that contribute to healthier lifestyles.DRLs aim is To provide affordable and innovative medicines for healthier lives. Weserve societys important needs for affordable medicines through the API component ofPSAI and the Global Generics business, and for innovative products that solve unmetmedical needs through the CPS component of PSAI and the Proprietary ProductsBusinesses.

Shareholders

DRL (symbol: RDY) shares are traded principally on the New York Stock Exchange inthe United States. The company is also listed on the NSE (symbol: DRREDDY) andBSEstock exchanges. DRL has consistently paid cash dividends since the corporation wasfounded. Following table show the complete history of dividend:


11/44

DIVIDENDHI

STORY

Year ended Interim % Final % Total %

2000 - 01 - 40 402001 - 02 100 50 1502002 - 03 - 100 1002003 - 04 - 100 100

2004 - 05 - 100 1002005 - 06 - 100 1002006 - 07 - 75 752007 - 08 - 75 75

Corporate CitizenshipDRL, as a corporate citizen, have a responsibility to contribute to the quality of life in thecommunities. This philosophy is expressed in the sustainability vision which states:DRLs responsibility is to continually improve all aspects of the world in which we

operate environment, social, economic -- creating a better tomorrow than today.The vision is put into action through programs and a focus on environmentalstewardship,activities to benefit society, and a commitment to build shareholder value by makingDRLa truly sustainable company.

DRL Headquarters


12/44

DRL World Headquarters is located in Hyderabad (Andhra Pradesh). The headquarterisbeautifully designed according to environment of Hyderabad. The manufacturing unitsconsist all the essential facilities which is necessary for an organization.

The collection of works is focused on major twentieth century art, and features works bymasters. The gardens originally were designed by the world famous garden planner,Russell Page, and have been extended by Franois Goffinet. The grounds are open tothepublic, and a visitor's booth is in operation during the spring and summer.


13/44

OBJECTIVE OF THE STUDY

Analysis of the Doxophylline, Gemifloxacine and Deflazacort in JAIPUR;Impact of schemes on sales;

To give recommendations for enhance market share;To analyze the proper functioning of drugs;To check out the availability of drugs;

To study the factors which are important to attract the customers;Kind of distribution channel adopted by company;To know about salesmans effectiveness & attitude.


14/44

INDIAN PHARMACEUTICAL INDUSTRY

1. Introduction:

Globalization is widely seen as a dominating phenomenon of 21st centuryencompassingworld wide integration of financial systems, trade liberalization, deregulation and marketopening resulting in a global market and patterns of industrial development. In last fewdecades it is evident that firms and institutions from peripheral countries or developingworld are making sustained and deliberate effort to take advantage of the newopportunities. The rise of East Asia followed by growth in China and India has led toemergence of new breed of Multinational Enterprises (MNEs) from these countries. Bythe end of 2004 China emerged as fifth largest outward direct foreign investor with atotalUS $ 37 billion and was the third largest exporter after Germany and the US (Child and

Rodrigues, 2005). Similarly albeit on a smaller scale in the last decade Indian economysaw a dramatic growth in overseas investment by the Indian industry. The firms fromlatecomer countries are making inroads in sectors such as manufacturing (steel andpharmaceuticals) and services (IT) and trading as well as high technology sectors likesemi-conductors. Some of the firms such as Infosys, Lenovo, Ranbaxy and Espat arenowcompeting at a global level. Multinational enterprises from developing countries are aclear representation of a sustained increase in outward Foreign direct investment (FDI)from developing countries which has risen from $60 billion in 1980 to $ 869 billion in2000 and to a total in excess of $1trillion for the first time in 2004 (UNCTAD, 2004).Outward FDI from developing countries accounts for more than 10 percent of the

worldsoutward FDI. The rise of outward FDI and new MNEs that embody it, from economiessuch as India, China, Korea, Singapore, Malaysia and Taiwan is a key phenomenon forthe world economy in last decade. It shows that firms from developing countries arerisingto compete at the frontiers of the world market and this research also focusing on thestrategies they have adopted to achieve that.

The first wave MNEs from the developing world documented by authors such as Kumarand mcleod (1981) and Lall (1983) succeeded as international players despite manydifficulties. Their success was due as much to the difficulties encountered at home as to

the incentives driving internationalization. One of the most salient features of first waveMNE activity is the direction and motivation of FDI compared to western MNEs. Muchempirical work on first MNEs indicated strong and marked trend investments inneighboring and other countries which were at a similar or earlier stage of theirdevelopment. Prominent first wave countries such as India, Philippines, Argentina andColumbia did not show any significant increase in either the level of the total outward


15/44

FDI, nor a significant shift towards developed country hosts. But the arrival of thesecondwave MNEs from developing countries represents quite a different phenomenon.First wave countries experienced very low or negative economic growth rate whereassecond wave countries grew rapidly over the intervening decade and half. This has

beenfurther enhanced by fundamental changes in the world economy which were a directresult of globalization. Globalization has created a more broad and competitive marketacross countries due to convergence of production and industrial patterns. As a resultfirms need to have 4 competitive advantages that are globally viable rather thandomestically. Most of these developing countries also went through a fundamental shiftinthe policy orientation from an import substituting role to an export oriented outwardeconomy. Firms in these countries now faced competition in domestic market withglobalfirms and needed upgrade their capabilities to survive. These changes had a profound

impact in creating a second wave of MNEs from developing countries. ThereforeMathews (2006) argues that analysis of second wave requires different perspectivesthatdiffer from those created to account for outward FDI from developed countries, and thefirst wave of MNEs from developing countries. Initial analysis of second wave of MNEsreveals that overseas move of firms in the second wave is a result of the pull factorsthatare drawing firms into global connections unlike push factors that drove firms as standalone players in the first wave (Mathews, 2006). Dunning et al. (1997) suggest that inthecase of second wave of MNEs from East-Asian countries such as Taiwan and Koreaweresubsidized by governments with government policy interacting with firm strategies. Therise of second wave MNEs from emerging countries is less driven by cost factors perse,but more by a search for markets and technological innovations to compete successfullyinthe Global economy (Yueng, 2000). The sudden appearance of the second wave offirmsand their capacity to create competitive positions to existing incumbents has raisedinteresting questions as they are not simply occupying space vacated by incumbentsinstead in many cases they are creating new economic space by their organizationalandstrategic innovation. Thus the changes in the world economy, specifically its globallyinterlinked character is responsible for driving the new approaches to and patterns ofinternationalization in firms from peripheral countries. Therefore Mathews (2006)suggests that existing theories and framework of internationalization have failed tocapture organization and strategic innovations adopted by developing country MNEs fornew modes of internationalization. In this context the Indian pharmaceutical industry


16/44

provides an ideal case to investigate approaches and motives of second wave MNEsfirmsfrom developing countries. From the beginning of the 1990s, the Indian governmentstarted liberalization by removing restrictions on trade such as regulations on FDI andopened Indian market to overseas firms. As a result of liberalization policy Indian

Economy witnessed dramatic growth, changes in domestic market and firm activitiesspecifically in relation to overseas expansion strategies. The cumulative number ofoverseas project approved during the 1990s is estimated to be 2652, a nearly 11 foldincrease from the number of projects permitted during 1975-90 (230) (Pradhan,2004).Thegrowth of overseas investment is been characterized by significant changes in locationand sectoral distribution. In the 1990s the majority of investments has originated fromtheservice sector and was increasingly developed country-oriented with majority ownershipin most cases. The most important destination of Indian outward FDI to date is the USAwhich accounted for 19% of total cumulative outflows from 1996-2003.

In 2005 Indian firms acquire 136 firms overseas with a total value of US $4.3 billion. TheIndian pharmaceutical Industry is at the forefront in international expansion compared toother manufacturing sectors in the Indian Economy.The Indian pharmaceutical industry is the thirteenth largest in the world in terms ofmarket output; accounting for a market of about US$ 2.5 billion (Ramani, 2002). It isranked as the most advanced pharmaceutical industry amongst developing countriesand isone of Indias best science-based industries. Indian firms have been investing abroadformany years but it is only since the late-1990s that outward FDI flows have risenconsiderably. The liberalization of government policies and relaxation of regulations onFDI abroad have helped Indian firms to expand internationally. In the last decade someIndian pharmaceutical firms have successfully internationalized their operations andemerged as a major producers and suppliers of generic drugs all over the world. Thisstudy of internationalization motives and strategies adopted by Indian Pharmaceuticalfirms. In the absence of more systematic longitudinal firm level data this research isbasedon case study evidence. The findings suggest that Indian pharmaceutical firms areaccessing advanced markets and acquiring new technology through the process ofinternationalization. Indian firms augmenting existing skills in production capabilities andprocess R&D by acquiring technology focused firms in advance markets. The analysissuggests that Indian pharmaceutical firms have adapted to the realities of globalizationand are finding new niche through the process of internationalization.

2. The Indian pharmaceutical industry:

India currently represents just US $6 billion of the $550 billion global pharmaceuticalindustry, its share is increasing at 10 % a year. The organized sector of Indias


17/44

pharmaceutical industry consists of 250 to 300 companies, which accounts for 70 % ofthemarket, with the top ten companies representing 30%. The Indian pharmaceuticalindustryhas developed wide ranging capabilities in the complex field of drug process

Development and production technology. It is well ahead of other developing countriesinprocess R&D capabilities and the range of technologically complex medicinesmanufactured. The Indian government adopted a new Patents Act in 1970, which laidthefoundations of the modern Indian Pharmaceutical industry. It removed product patentsforpharmaceuticals, food and agro-chemicals, allowing patents only for productionprocesses. The statutory term for production processes was shortened to five yearsfromgrant or seven years from application. The 1970 Patent Act greatly weakened

intellectualproperty protection in India, particularly for pharmaceutical innovations. It started the eraof reverse engineering where firms developed new products by changing theirproductionprocesses like Dr. Reddy. Trained manpower, comparative ease of imitation and astrongchemistry base among Indian research institutes supported manufacturers and gave theIndian pharmaceutical industry its current profile. The industrys exports were worthmorethan US $ 492.30 in 2005-06 and they have been growing at a compound annual rate of22.7 percent over the last few years (National pharmaceutical policy, 2006).

The value of the Indian Pharmaceutical industrys overseas acquisition has grown fromjust US $8 million in 1997 to $116 million in 2004. Indian firms have acquired over US$1 billion worth of pharmaceutical companies overseas in 2005. There are 3developmentswhich are pushing expansion of the Indian pharmaceutical industry into overseasmarkets;A. Opportunities opened in the US generic market due to the Hatch-Waxman Act,B. Increasing outsourcing by MNC pharmaceutical firms andC. Strengthening of patent laws in the domestic market.

D. Implement all these techniques in India for producing good medicines.These three developments are creating new challenges and opportunities for Indianindustry and internationalization is one of route adopted by Indian to succeed in thisnewenvironment. The generic opportunity is a result of the passing of the Hutch WaxmanActin the US in 1984. Under this new law, manufacturers of generic drugs no longer had togo through a lengthy period of extensive clinical trials in order to market a generic drug -


18/44

demonstration of bio-equivalence was sufficient to acquire a patent on a generic drug.procedures were established for the resolution of disputes between branded drugmanufacturers and generic manufacturers. Western markets were a lucrative businessopportunity and the low cost advantage enjoyed by Indian firms on account of the cheapavailability of scientific labour combined with scale economies inherent in the

manufacture of bulk chemicals made for big margins. Between 1999 and 2005 drugsworth $ 64 million went off patent allowing generic companies to take advantage ofbetterbusiness opportunities. In the generics industry prescription drugs worth $40 billion intheUS and $25 billion in Europe are due to loose patent protection by 2007-08. In 2004 theUS senate passed the Greater Access to Affordable Medicine Act diluting some of theproinnovator provisions of 1984 Hatch-Waxman Act, giving a big boost to the genericbusiness in the US. Similarly Europe is emerging as a key market and a potentialgrowthdriver. The size of market in 2006 was US $ 14.2 billion with Germany, France, the UK

and Italy accounting for more than 50% of market. Governments in Europe are trying toreduce healthcare costs by embracing generic drug companies. Liberalization facilitatedthe ability of Indian firms to exploit this opportunity to market generics drugs to the USand other Western economies. Indian firms are preparing themselves to take a share ofthis increasing global market. Indian drug manufacturerscurrently export their products to more than 65 countries worldwide; the US being thelargest customer. However Indian firms face some difficult challenges such as non tariffbarriers, decreasing profits in the generics market, competitive threats from big pharmaMNEs and reputation in western markets. For example, US regulation disqualifiesIndianfirms from bidding for government contracts and Indian firms have to submit separateApplications for each state even when firms have FDA approved products and facilities.Another challenge is the reduction in profit margin due to intense competition fromChinese and Eastern European manufacturers as well as authorized generics producedbymain manufacturer. Currently Indian industry is estimated to account for 22% ofgenericsin the world market. Indian firms are aiming to move up the value chain by developing

capabilities to produce super generics rather than generics generics to brandedgenerics.Furthermore, stronger patent protection under the new patent law of 1999 has shutdownthe avenues for exploitation of generics opportunity in domestic market, but promisedlarge rewards to Indian firms that could leverage their reverse engineering capabilities inadvanced markets. The stronger patent law restricts reverse engineering of newlypatentedmolecule, thus affecting an important source of growth for Indian firms. Alsomultinational pharmaceutical firms have entered India after 2005 and using the sameresource base as Indian firms to compete in the Indian domestic market furtherincreasing


19/44

pressure on profit margins of Indian firms. The contract research and manufacturingservices (CRAM) market has emerged as huge opportunity for the Indianpharmaceuticalindustry. According to Frost and Sullivan (2005), the global outsourcing market is worth$37 billion and growing at almost 11%; 50% of the contract manufacturing market is in

North America, 40% in Europe and just 10% in Asia and the rest of the world. Indianfirms possess requisite capabilities to cater for the requirements of outsourcing markets,still India accounts for barely 1.5% of the global CRAM industry. Due to untested patentprotection law and lack of data protection MNC firms are reluctant to outsource earlystage R&D work to Indian firms. Therefore Indian firms are trying to increase their sharein the outsourcing market by moving closer to the market.Geographically the overseas acquisition by Indian pharmaceutical firms continues to bedirected at developed countries specifically the US and Europe (Table 1). Out of 32acquisitions listed in Table 1 only 6 are in developing markets and the remaining rest of26 are in advanced markets such as the US and Europe. The major acquisitions are inthe

area of marketing although some companies are investing in building manufacturingandR&D capacities in developed markets. Indian companies have already establishedmanufacturing plants in the US, Europe, Brazil, Russia and China.

Table 1 Recent acquisition by Indian pharmaceutical firmsCompany Focus area Year Target ValueUS $ MillionDishmanPharmaContractmanufacturingand researchservice2005 Syprotec (UK) 93.5Dr. ReddysLaboratoriesUS generics,specialityproducts, APIs,formulations,customsynthesis2004 Trigenesis (US) 11n/a BMS Laboratories andMeridianHealth care162005 Roches API Business


20/44

(Mexico)592006 Betapharm 57221ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaGlenmarkPharmaDrug discoveryresearch,formulations2004 Kinger Lab ( Brazil) 5.22005 Uno-Ciclo (Brazil) 4.62005 Servycal SA (Argentina n/aHikal APIs contractmanufacturing2004 Marsin (Denmark) 6 millio for50% stakeJubilantOrganosysCRAMS,pharmaspeciality,chemicals,intermediates,formulations,medical (US)chemistry andclinicalservices2004 PSI (Belgium) 162005 Trinity Laboratories(along withsubsidiary TrigenLaboratories )20.25 millionfor 75% stake2005 Target ResearchAssociates

33.5Matrix Labs CRAMs,generic APIs,intermediatesandformulations2005 MICHEM (China) (JV) n/a2005 Docpharma (Belgium) 263


21/44


22/44

n/a 18 generic productsfrom EfarmesS.A. (Spain)n/a2005 Brand veratide from

P&G(Germany)5Torrent Formulations,EuropeangenericMarket2005 Heumann Pharma(Germany)n/aZydus

CadillaContractmanufacturingand generics2003Alpharma (France) 6.6Wockhardt Biogenerics,US andEurope genericmarket,Brandedgenerics2003 CP Pharma (UK) 202004 Esparma (Germany) 11

The major Indian companies such as Ranbaxy, Dr. Reddys Laboratories, Wockhardtandothers have established their own brand image in the international market as well asdomestic market and are taking steps to consolidate their activities.

Indian firms are compensating for the spiraling cost of selling and marketing in advancecountries by setting wholly owned subsidiaries or acquiring local firm. Thus reinforcingthe argument that Indian firms internationalization through acquisition is directedtowards acquiring new knowledge in different areas such as R&D capabilities,regulatoryskills and distribution networks.

3. Firms under investigation

The findings of this research are based on the study of internationalization motives andpatterns adopted by five well established Indian pharmaceutical firms, viz. Ranbaxy


23/44

Laboratories, Dr. Reddys Labs, Wockhardt, Nicholas Piramal and Sun PharmaceuticalsLtd.

Table 2 Firms under investigation

Name of theFirm

YearestablishedNo. of overseasManufacturingplantsNo. ofoverseasacquisitionsfrom 1990Turnover(2008)

RS.Million% ofturnoverfromoverseas(2008)IPORanbaxy 1962 8 11 41205.88 69.90 1994DRL 1984 2 4 50006 79.1 2001Wockhardt 1959 3 4 26531.54 70.55 2003NPIL 1988 5 328789.1 71.67Sun 1983 4 332776 68.78 2007

All these firms are privately owned business with family ownership and ranked amongsttop ten firms in India. Table 2 shows that large part of their turnover comes fromoverseasmarkets while advance regions such as US and Europe account for more than 80% ofoverseas revenue. All these firms raised money through IPOs (Initial Public Offerings)before embarking on the overseas acquisitions.

But my focus is only on Dr. Reddy, through this analysis we can find out that intheprevious time period the pharmaceutical companies were interested in overseasdevelopment but now the scenario is changed completely. These companies arefocusing in the national market with the help of using generic patent off drugs bychanging their process and their contents.


24/44


25/44

With the help of this table(Table:3) it is clear that DRL shown their presence in thepharmaceutical industry by a large number M&A. DRLs international and nationalmarketing successes were built on a strong manufacturing base which itself was aresult of

inorganic growth through acquisition of international and national facilities. DRL mergedwith Cheminor Drug Limited (CDL) with the primary aim of supplying APIs (activepharmaceutical ingredient) to the technically demanding markets of North America andEurope. This merger also gave DRL entry into value added generics business in theregulated markets of APIs. DRL began its major international production by enteringRussia through a joint venture with Biomed in 1992 and in 2002 DRL converted the jointventure into a fully owned subsidiary. It strengthened its Indian manufacturingoperationsby acquiring American Remedies limited in 1999. This acquisition made DRL the thirdlargest pharmaceutical company in India, after Ranbaxy and Glaxo (I) Ltd., with a fullspectrum of pharmaceutical products, which included bulk drugs, intermediates, finisheddosages, chemical synthesis, diagnostics and biotechnology. So through this way nowDRL is the secong largest pharmaceutical company in the India.

Flow Chart: DRLs Expansion in the World


26/44


27/44

MOLECULES INTRODUCTION

WHAT IS GEMIFLOXACIN?

Gemifloxacin is a synthetic broad spectrum antibacterial agent for oral administration.Gemifloxacin, a compound related to the fluoroquinolone class of antibiotics, is availableas the mesylate salt the sesquihydrate form. As recognized by the US Food and DrugAdministration in their approval statement for gemifloxacin in April 2003, it is the onlyagent that displays activity against both fluoroquinolone target sites at therapeuticallyachievable levels. The order of resistance development by FAUC/MIC breakpoint waslevifloxacin>gatifloxacin>moxifloxacin=gemifloxacin , which may be related tostructural differences within the class. Due to its potent activity against many commongram-positive and gram-negative respiratory pathogens, its proven clinical efficacy, andits favorable safety profile, gemifloxacin is a highly effective empiric treatment forcommunity-acquired lower respiratory tract infections. Gemifloxacin has been highly

effective in the treatment of community-acquired pneumonia and acute exacerbation ofchronic bronchitis. Clinical success rates ranged from 93.9-95.9% in patients withcommunity-acquired pneumonia and 96.1-97.5% in those with acute exacerbation ofchronic bronchitis. Gemifloxacin is a dual acting fluoroquinolone with excellent activityagainst S. pneumonia including those strains demonstrating resistance to other classesofantibiotics. Gemifloxacin targets both DNA gyres and Topoisomerase IV of S.pneumonia. The brand under this molecule is GEN ONE .


28/44

WHAT IS DELAZACORT (ASTERIDE)?

Deflazacort, a synthetic oxazolone of prednisolone with 0.84 times anti-inflammentoryeffect of prednisolone. When in-vitro immunosuppressive effect of deflazacort, a new

bone-sparing glucocorticoid, and its biological active metabolite, 21-deactyl deflazacort,was examined on phytoaemagglutinin (PHA) stimulated human peripheral bloodlymphocytes (PBL) as well as on natural killer and killer cell activity, Deflazacort and the21-deacetyl metabolite were as potent as prednisolone and hydrocortisone insuppressingPHA stimulated lymphocytes in a dose dependent way.Current research indicates that deflazacort and 21-deacetyl deflazacort are potentimmunosuppressive drug in vitro and, on a molar basis, equally as potent asprednisolone.While addition of the methyl ring affords greater potency to methylprednisolone overprednisolone, it is the addition of a methyl, nitrogen and two oxygen branched chains

thataccount for an equivalent efficacy yet significantly greater safety profile in the case ofdeflazacort.A study by Gartner et al assessed the efficacy and tolerability of oral deflazacort versusoral prednisolone in acute moderate asthma in children. Children aged 6 to 14 years oldwith a diagnosis of asthma who presented to the pediatric emergency department formoderate asthma exacerbation were administered short acting beta2-adrenergicagonistsand divided into an intervention group that received oral deflazacort or prednisolone for7days. The primary outcome measure was forced expiratory volume in 1 second andsecondary outcome measures were pulmonary symptom score index, peak expiratoryflowrate (PEFR) hospitalization rate and the use of rescue beta2-agonists. Patients wereevaluated at the start of treatment (visit 1), on day 2 (visit 2), and on day 7 (visit 3).On visit 2, FEV1:122.2 and 126.5 %( p


29/44

WHAT IS DOXOFYLLINE?

Methylanthine are a group of structurally related substances, used in the clinicalmanagement of patients with obstructive respiratory disorders, in particular chronic

obstructive pulmonary disease (COPD). Their effect is a generalized dilation of thebronchi that reduces the overall resistance of airways to the airflow, improves blood gasexchange, and decreases the respiratory effort. It is supposed that regular use ofMethylxanthine decreases the risks of acute dyspnoiec attacks, such as acute asthemicattacks, and acute respiratory failure in COPD. The use of methylxanthine is essentiallyalong term use. Their efficacy, when used orally as it usually occurs, onset withinapproximately one week and stabilizes within approximately four weeks. During theinitial and the stabilization period, the effectiveness of metylxanthine is markeddecreasedneed of rescue medication use, usually in the form of puffs of short acting beta2-

agonists.Dosage of methylxanthine is normally monitored by measuring the blood level obtainedattrough. Methylanthine can also be used to obtain acute effects, when administered byintravenous injection or infusion. It is evident that long term use of Methylanthine shouldnot only be effective as bronchodilator, but should also be exempt of major risks ofadverse effect on any body system and organ, as well as of risk of interaction with thecommonly used concurrent medication. Doxoyfylline is a Methylanthine with almost thesame bronchodilating effect as theophylline. It has, however, a much lower affinity fortheadenosine receptors. The use of doxofylline appears to provide the requiredbronchodilating action in COPD and in asthma, with limited risk for CNS, gastrointestinaland cardiovascular adverse events.The brand under this category is DOXOBID.


30/44

MANAGING THE SALESFORCE

MANAGING THE SALESFORCESales Management involves managing people and getting results through them. It

involves sales planning that is based on market analysis. It involves setting sales goalandtries to achieve them. Sales management also involves organizing and motivating thesales team in such a way that they achieve and surpass the goal. This involvesappropriatecompensation plan and building sales organization to respond to market realities.Finally,the sales manager needs to review the performance and access productivity of his/herteam.

MAIN POINTS .The role of the MR is futurist, strategist, information management and leadership.The sales management planning process involves analysis, goal setting, strategyand tactics development, issues in implementation and finally controlling saleseffort.Sales budget are the financial aspects of the sales plan. Sales quotas are targets tobe achieved by individual salesperson or by the sales team.A sales team can be formed either on the basis of the product, or territory orcustomer groups or combination of these.The compensation plans used by sales managers are straight salary, commissionsonly or a combination of these two.


31/44

PRODUCT POSITIONING

DRLs all three products are present in the all the target market & the selling of theproducts are well than other companies. According to experts the product is positioned

onthe parity-of-difference rule, because as we know the pharmaceutical industry is not likeother industries where customers willingness works here the things of working ofmedicine related disease. All three drugs of DRL is for asthma patients & in the marketthe sale depends on the performance of MRs. So MR of company realizes this thing &they give proper knowledge of product to the doctor & increase the sale of drugsthroughgood quantity of drugs with chemists. Company has good relation with doctors and thechemists.On the basis of good positioning strategy DRL has a good market share.DRLs market share on the basis of positioning strategy-


32/44

COMPETITOR ANALYSIS

The major competitor of DRL through out the survey area is Macleod. Following willgive a brief of the competition between the rivals:

Although the goals of both the companies are the same, the two companies rely onsomewhat different marketing strategies. DRL has always taken the lead indeveloping new products. Further, DRL has always taken more risks, actedrapidly, and was always developing new drugs at a lower cost than Macleod

In the foreign markets, DRL has been more successful then Macleod. In theMiddle East countries DRL has a good strength than Macleod & now in IndiaDRL has established new plants for increase the production of drugs so now it canexport ready medicine instead bulk.

While Macleod has been playing safe with introducing new drugs with goodworking and trap the market share than DRL. DRL has introduced a new drug indeflazaort category-Asteroid, to cover the area of asthma drugs and it is going ingood direction.

DRL has positioned itself as a quick copy which is considered to be more modernand lively as compared to other companies because in this industry any companyis not sure about its share. Also, DRL has always played around innovations so asto lead the market.This chart show the market share of DRL & Macleod:


33/44

In the same manner for ths gemifloxacin molecule the main competitor is Gicin, cmpanyis using same strategy for this molecule product(Gem One). The condition is clearedwith

the chart.

The third molecule for analysis is Deflazacort, the market share of DRL for this moleculeis smaller than other companies product. As we know the pharmaceutical industry isfragmented industry, so it is quite difficult to a company to rule over market with oneproduct. DRL is also doing work on this drug & strenghning the marketing strategy forthis drug. The market share of this drug is cleared by following chart-


34/44

Conclusion:-According to study DRL is maintaining its position as a quick copy who introduces drugson the basis of patent off pattern. For existing in the market always innovation isnecessary.


35/44

SWOT ANALYSISSTRENGTHS-

Aggressive decision maker

Cost leadership

Tactful reengineering process

Copy the manufacturing process of patented drugs

Adapting quickly changed environment

Quality of drugs

Cross licenses , joint ventures & alliances

Talented workforce

WEAKNESSES-

Concentrate only process improvement

Marketing arms are split

Mainly focused on bulk drugs

Focus on therapeutic segment

OPPURTUNITIES : -

Develop new process

Research driven company

Sustain for growth & diversification

THREATS: - Fragment industries

Diversification

Patent product manufacturing MNCs


36/44

Field Work

Market Analysis of Doxophylline, Gemifloxacin, Deflazacort Jaipur

The product of these molecules is, Doxophylline- Doxobid, Gemifloxacin- Gem One andDeflazacort- Asteroid. These drugs are prescribed by doctors to the asthma patientsandavailability of products on the shops depends on the medical representatives.My job was to visit all the chemists of main five hospitals area in the Jaipur. The nameofhospitals are-

1). Sawai Mansingh Singh Hospital

2). Jaipur Hospital

3). T. B. Hospital4). Haribaksh Kawatia Hospital5). Santokabha Dhurlabji Medical Centre & Hospital

During the initial stage of the project, I came to know about the all the brands of thesemolecules of existing companies. On visiting chemists on various routes, I realized howimportant a strong distribution channel was for a company to be able to retain itspositionas an industry leader. I used to visit all the retail outlets of a particular route each dayand

learnt how to applied a companys drug in the market, how to tackle the variousproblemsrelated to knowledge of drug to the doctor & chemist. Having done this, an overallmarketscenario of the distribution channel and methods became clear.37ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaIn the process of increasing the market share of drugs market representatives givedoctorsabout the drugs & clarify all the queries of them. In this way they tried to motivate themto prescribe more and more of the products of DRL. I also analyzed:1. Whether the MR is telling about the actual working of drug to the doctors &chemists properly?2. Whether the availability of drugs on the shops?3. Whether the doctors are prescribing the drugs of the company?38ACCMAN INSTITUTE OF MANAGEMENTGreater Noida


37/44

Market Surfing of Doxobid, Gem One, Asteroid:Route No: 1 (SMS Hospital)Sr.No. Chemist NameSale of

DRLDrugsDoxobid GemOne AsteroidBestSellingDrug1 Hindustan MedicalStore Good Yes Yes No Gem One2 Curewell Average Yes Yes No Gem One3 Super Medicals Very Good Yes Yes Yes Doxobid,

Gem One4 Sona MedicalStore Very Good Yes Yes Yes All5 Vishal MedicalHall Very Good Yes Yes Yes All6 Rajasthan Medicals BelowAverage Yes Yes No Gem One7 Medicure Good Yes Yes Yes Gem One8 Sarvoday Medicals Good Yes Yes Yes DoxobidGem One39

ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaRoute no. 2 (H.K. Hospital)Sr.No. Chemists Name Sale ofDRL Drugs Doxobid GemOne AsteroidBestSellingDrugs1 Vashisth Medical

Store Good Yes No Yes Doxobid2 Bansal MedicalStore Good Yes Yes No Gem One3 Sanjay MedicalStore Very Good Yes Yes Yes DoxobidGem One4 Agrwal Medicos Average Yes Yes No Doxobid5 Shyam Medicos Below


38/44

Average Yes Yes No Doxobid6 Shree NathMedicals Average Yes Yes Yes Gem One7 Sharma Medicos Good Yes Yes No Doxobid8 R.S. Medicos Average Yes Yes Yes Gem One

40ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaRoute no. 3 (T.B. Hospital)Sr.No. Chemists Name Sale ofDRL Drugs Doxobid GemOne AsteroidBestSellingDrugs1 Shree KrishnaMedicos Good Yes No Yes Doxobid2 Mohan Medicals Very Good Yes Yes Yes Gem OneAsteroid3 Poonam Medicals Average Yes Yes No Doxobid4 Raghukul MedicalStore Good Yes Yes Yes DoxobidAsteroid41ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaRoute no. 4 (Jaipur Hospital)

Sr.No. Chemists Name Sale ofDRL Drugs Doxobid GemOne AsteroidBestSellingDrugs1 Jaipur Drug Store Good Yes Yes Yes DoxobidGem One2 Shiv Medical &Provision Store Average Yes Yes Yes Doxobid

3 Arvind MedicalStore Good Yes Yes No DoxobidRoute no. 5 (SDMH)Sr.No. Chemists Name Sale ofDRL Drugs Doxobid GemOne AsteroidBest


39/44

SellingDrugs1 Vardhman Medicos Very Good Yes Yes Yes DoxobidGem One2 J.S. Medicos Good Yes Yes Yes Doxobid

42ACCMAN INSTITUTE OF MANAGEMENTGreater Noida

RESEARCH METHEDOLOGYA market research survey has been conducted for the purpose of above study. Theresearch data has been collected through out this procedure.A. Data collectionThe success of any research project depends critically on data. So data collection is themost important aspect of a research project. Primary and secondary data are used inthisproject.

B. Sample survey:Survey has been conducted after preparing the questionnaire and the focus was toknowthe market share of company.C. Sampling:a) Nature of UniverseThe research was carried on doctors and chemists.b) Sample SizeSample size has been 42 chemists of various places in Jaipur.c) Secondary InformationCompanies documents, various journals, pamphlets and companies portals werestudiedfor relevant information regarding the subject of the projects. These documents wereveryuseful for theoretical, conceptual and organizational background. Detailed analysis ofinformation and data collection was carried on and then it has been possible tocompletethe task.d) Question DesignThe question was designed keeping in mind the need of the project. The questions weresimple and concise. Questions were prepared for chemists.43ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaPRIMARY DATA:Primary data is collected through chemists, questionnaire, and personal interviews ofchemistsand different employees of DRL (MRs.).For example:Condition of sale of drugs -Very Good


40/44

GoodAbove AverageAverageBelow AverageBad44ACCMAN INSTITUTE OF MANAGEMENTGreater Noida

DATA ANALYSISQ1. Have you all the brands of Doxophylline?Q2. Have you all the brands of Gemifloxcin?45ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaQ3. Have you all the brands of Deflazacort?Q4. Give name of available brands of Doxophylline molecule.

Ans. Doxopick Doxobid(DRL) Doxorill(Macleod)Doxiflo Doxofree DoxiousDoxomax DoxovinQ5. Give name of available brands of Gemifloxacin molecule.Ans. Gen One (DRL) Gemimac GemicGicin Gem2kuin GemzQ6. Give name of available brands of Deflazacort molecule.Ans. Defcoat Defza DeflanolAsteroid (DRL) Depsure Defzacore46ACCMAN INSTITUTE OF MANAGEMENTGreater Noida

SMS HOSPITAL:Q7. Market status of DOXOBID in SMS Hospital.Ans.Q8. Market status of GEM ONE in SMS Hospital.Ans.47ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaQ9. Market status of Asteroid in SMS Hospital.Ans.H. KAWATIA HOSPITAL:

Q10. Market status of DOXOBID in Kawatia Hospital.Ans.48ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaQ11. Market status of GEM ONE in Kawatia Hospital.Ans.Q12. Market status of Asteroid in Kawatia Hospital.


41/44

Ans.49ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaT.B. HOSPITAL:Q13 Market status of DOXOBID.Ans.Q14. Market status of GEM ONE.Ans.50ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaQ15. Market status of Asteroid.Ans.JAIPUR HOSPITAL & SKDM HOSPITAL:Q16. Market status of DOXOBID.Ans.

51ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaQ17. Market status of GEM ONE.Ans.Q18. Market status of Asteroid.Ans.52ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaOverall Status of DRL Product:

Q19. Market status of DOXOBID.Ans.Q20. Market status of GEM ONE.Ans.53ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaQ21. Market status of ASTEROID.Ans.54ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaFINDINGSAccording to market analysis of Dr. Reddys product, conditions of some drugs arebetter and some have very low market share.

yAs per findings, the condition of Doxobid is quite good comparisons of otherdrugs. But Doxobid face a great completion to Macleods Doxorill. Doxorillhas a large share of market.yThe condition of Gem One is best among the other drugs. It is market leader in


42/44

the Gemifloxacin molecule.yBeside this Asteride is a low performer in the market and it needing a lot ofattention.yThe works of representatives are going on very well and it is right for DRLthat it has well workforces which make possible every step of company in right

direction.yThe products of DRL are working in a good manner than its competitors. Thereasons for this success areoAvailability of drug at a low cost.o Workings of drugs are better.o Work of representative is in an effective manner.55ACCMAN INSTITUTE OF MANAGEMENTGreater NoidaRECOMMENDATIONS

Doxobid:

Doxobid is going on very well, but company need to put little bit pressure on its salesthrough-Involving new ingredients in the product which make it more effective.As we know in India cost play a major role on sale, so company need todecrease the price of product from Rs. 50 to Rs. 48. This can play a vital rolein the growth of company.

Gem One: Gem one is the market leader in its category. Comparison to other brands itseffectivenessis far better. Doctors are prescribing this drug in large numbers. It alone generates ahuge

amount of revenue. But company need to always focus on this strategy so that they cant lose itsleadership inthe market. Like regularity of representatives, availability of appropriate amount of drug.

Asteride:Asteride is not performing according to company vision; it has a low market sharethanabove two drugs. So company need to keep eye on this product performance.Company need to regularly take update of this drug from representatives.It needs to remind doctors about the product availability in the market.56

ACCMAN INSTITUTE OF MANAGEMENTGreater Noida

According to result of analysis it has shown that on many places chemists has notavailability or knowledge about drug, so company need to strong tis distribution unitsandgive representative an extra task to give proper knowledge to chemists about drug.57ACCMAN INSTITUTE OF MANAGEMENT


43/44


44/44

3 ( )4 ( )Gemifloxacin Rs.1 ( )2 ( )3 ( )4 ( )4. Which doctors are prescribing these medicines? (Write name withspecialization area of doctor)Name Specialization1. Dr.. ( )2. Dr ( )3. Dr.. ( )4. Dr.. ( )

60ACCMAN INSTITUTE OF MANAGEMENTGreater Noida

5. Dr. ( . )5. Which drug is selling mostly?6. Give reasons for your answer.1....2.7. What is present situation of Dr. Reddys products?Very good Good Above avg.

Average Below avg. Bad8. What are the reasons for this situation?129. Any opinions for company to raise the products market share.1234..THANKS61ACCMAN INSTITUTE OF MANAGEMENTGreater Noida62ACCMAN INSTITUTE OF MANAGEMENTGreater Noida

Documents

PROJECT REPORT on pharma