pharmaceutical in rural market
TRANSCRIPT
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PHARMACEUTICAL IN RURAL MARKET
PREFACE
The project pharmaceutical in rural market give a i!ea that
although over "#$ o% the population live in rural area onl& '"$o% pharmaceutical ale are in thoe area( A large ection o% In!ia)
rural population *ith a riing level o% !ipoa+le income that i
hitherto uncovere! +& mo!ern me!icine *ill eventuall& come
un!er the am+it o% healthcare program an! *ill create a %reh
!eman! %or pro!uct !irecte! to*ar! in%ectiou !ieae(
The project conit te,t an! cae *ith In!ian conte,t an! eparate
chapter have +een !evote! to emerging pharmaceutical companie
gro*th in rural area an! variou trategie ue! +& pharmaceutical
companie in rural area to tappe! the rural market(
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PHARMACEUTICAL IN RURAL MARKET
OBJECTIVES OF THE PROJECT
To have kno*le!ge a+out the In!ian pharmaceutical
in!utr& in rural area(
To un!ertan! the large untappe! rural market o%
pharmaceutical in!utr&(
To un!ertan! *h& there i lo* ale in rural area a
compare to ur+an area(
To un!ertan! the pro+lem %ace! +& pharmaceutical
companie in rural area(
To un!ertan! the trategie o% pharmaceutical in!utr& ue!
in rural area(
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PHARMACEUTICAL IN RURAL MARKET
METHODOLOGY
In or!er to reali.e the tu!& the o+jective a coni!era+l& volume o% +oth
primar& an! econ!ar& !ata i nee!e!( It ha +een there%ore %oun! necear& to
viit an o%%ice *hich help poor people %or there me!ical treatment(
Primar& /ata ha +een collecte! through a viit to an o%%ice *hich
help poor people %or there me!ical treatment an! help me to gather relevant
!ata(
0econ!ar& /ata the in%ormation regar!ing the rural market ha +een
!ra*n %rom variou pu+lihe! ource( The !ata relating to pharmaceutical
compan& ha +een collecte! %rom compan& recor!(
Thi tu!& i necearil& +ae! on the limite! kno*le!ge an! little
practical e,poure the contraint o% reource an! time have %urther impoe!
limit to the tu!& +oun!arie(
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PHARMACEUTICAL IN RURAL MARKET
INTRODUCTION TO RURAL MARKET
Rural Market are !e%ine! a thoe egment o% overall market o% an&
econom&3 *hich are !itinct %rom the other t&pe o% market liketock market3
commo!it& market or La+or economic( Rural Market contitute an
important egment o% overall econom&3 %or e,ample3 in the U0A3 out o% a+out
1### countrie3 aroun! '### countie are rural3 that i3 non4ur+ani.e!3 *ith
population o% 55 million( T&picall&3 a rural market *ill repreent a communit&
in a rural area *ith a population o% '5## to 1####(
In recent &ear3 rural market have ac6uire! igni%icance in countrie
like Chinaan!In!ia3 a the overall gro*th o% the econom& ha reulte! into
u+tantial increae in the purchaing po*ero% the rural communitie( 7n
account o% thegreen revolutionin In!ia3 the rural area are conuming a large
6uantit& o% in!utrial an! ur+an manu%acture! pro!uct( In thi conte,t3 a
pecial marketing trateg&3 namel&3 rural marketing ha taken hape(
0ometime3 rural marketing i con%ue! *ith agricultural marketing8 the later
!enote marketing o% pro!uce o% the rural area to the ur+an conumer orin!utrial conumer3 *herea rural marketing involve !elivering
manu%acture! or procee! input or ervice to rural pro!ucer or conumer(
Alo3 *hen *e coni!er the cenario o% In!ia an! China3 there i a picture that
come out3 huge market %or the !evelope! pro!uct a *ell a the la+or
upport( Thi ha le! to the change in the min!et o% the marketer to move to
thee part o% the *orl!(
Alo rural market i getting an importance +ecaue o% the aturation o%
the ur+an market( A !ue to the competition in the ur+an market3 the market i
more than or a aturate! a mot o% the capacit& o% the purchaer ha +een
targete! +& the marketer( 0o the marketer are looking %or e,ten!ing their
pro!uct categorie to an une,plore! market i(e( the rural market( Thi ha alo
le! to the C0R activitie +eing !one +& the corporate to help the poor people
attain ome *ealth to pen! on their pro!uct categorie( Here *e can think o%
HLL 9no*3 HUL: initiative in the rural In!ia( 7ne o% uch project i the
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http://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Stock_marketshttp://en.wikipedia.org/wiki/Commodity_marketshttp://en.wikipedia.org/wiki/Labor_markethttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Ruralhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Purchasing_powerhttp://en.wikipedia.org/wiki/Green_revolutionhttp://en.wikipedia.org/wiki/Agricultural_marketinghttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Stock_marketshttp://en.wikipedia.org/wiki/Commodity_marketshttp://en.wikipedia.org/wiki/Labor_markethttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Ruralhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Purchasing_powerhttp://en.wikipedia.org/wiki/Green_revolutionhttp://en.wikipedia.org/wiki/Agricultural_marketing -
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Project 0hakti3 *hich i not onl& helping their compan& attain ome revenue
+ut alo helping the poor *omen o% the village to attain ome mone& *hich i
urel& going to increae their purchaing po*er( Alo thi *ill increae their
+ran! lo&alt& a *ell a recognition in that area( 0imilarl& *e can think o% the
ITC E4Chaupal3 *hich i helping the poor %armer get all the in%ormation
a+out the *eather a *ell a the market price o% the %oo! grain the& are
pro!ucing( In other vie* thee activitie are alo helping the companie
increae their +ran! value( 0o a it i given a+ove the igni%icance o% the
rural market ha increae! !ue to the aturation o% the ur+an market a *ell a
in uch con!ition the compan& *hich *ill lea! the *a& *ill +e +ene%ite! a
ho*n +& the ucce o% HUL an! ITC initiative(
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THE INDIAN RURAL MARKET
The rural In!ia ha a plethora o% opportunitie all *aiting to +e
harnee!( Not urpriingl&3 it ha +ecome the latet marketing +u..*or! %or
mot o% the
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CHARACTERISTICS OF INDIAN RURAL
MARKET
9A: ith the increaing o% rural people? income an! the enhancement
o% %armer) purchaing po*er3 the rural market econom& i %acing a ne*
opportunit& o% !evelopment( 7ur preent market ha the huge !evelopment
potential3 compare! *ith the tra!itional rural market marketing channel3 an! it
+ecome convenient an! 6uick( The enterprie mut ha the keen inight3
make the e%%ective u+!iviion o% rural market 3 earnetl& tu!ie the
characteritic o% !etaile! goal market 3 then the& can e%%ectivel& utili.e the
marketing strategy and develops the rural market.
The gradual increasing of farmers income and the
multi-level demand urge
the countryside consumer pattern to change, and the change
of farmer's
consumer idea is remarkable
Accor!ing to the relate! tatitical !ata3 in '##5 in ome rural area o%
our countr&3 inha+itant) average! governa+le income i "355; RM>3 a gro*th
o% '(2 time compare! to -@@;(the pecial !i%%icult %amil& alo +aicall&
ecape! %rom povert&( age accounte! %or ;2$ o% the %amil& gro income3
compare! to -@@;(*hich i a !ecreae o% 1(; percentage( Moreover3 the
propert& income an! the hi%t income gre* *ith tea!& tep( Along *ith the
gra!ual enhancement o% income level3 our countr& inha+itant) 6ualit& o% li%e
ha! the comprehenive improvement( Accor!ing to the relate! tatitical !ata3
in '##@3 the citie inha+itant average conumer !i+urement achieve!
"3@21RM>D the countr&i!e inha+itant average li%e conumer !i+urement
amounte! to '3555RM>( Accor!ing to the conumer clai%ication3 the
countr&i!e inha+itant) !eman! appear multi4level3 the !eman! tructure ha
the remarka+le change3 an! the %armer) conumer i!ea i alo gra!uall&
change( The !i+urement proportion o% %oo!3 clothing an! +aic utilitie
gra!uall& !rop +ut the !i+urement proportion o% the tranportation
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communication3 the me!ical health care3 the culture an! e!ucation
entertainment an! the houing rapi!l& rie (At the ame time3 the countr&i!e
inha+itant) conumer i!ea an! the conumer cutom are changing3 the cit&
an! countr&i!e inha+itant +ecome rational an! mature3 *ith conumer i!ea
alo !eveloping %rom el%4 accumulation to the appropriate conumption an!
cre!it conumption(
ith enhancement o% inha+itant conumption level an! pee!ing up o%
li%e rh&thm3 countr&i!e inha+itant) ervice conuming !eman! gro*
rapi!l&( The concrete mani%estations are:
9-:The inhabitants domestic electric appliances renewal
step speeds up. The family appliance o% comparativel& high
technolog&3 high 6ualit& an! lo* price 9color%ul televiion3 *aher3 air
con!itioning an! o on: can +e %oun! in the common %amilie3 *hich +ecome
the hot pot o% conumption in preent tage(
9': The health care disbursement rises increasingly. Along
with the increase of the inhabitant living standard, they also
pay more attention to their own health, health care
consciousness strengthen increasingly, health care
disbursement also correspondingly increasing.
91: The transportation communication epends is fast
growing. Along with !uick change of the transportation
infrastructure construction, the travel conditions of
countryside inhabitant have remarkable improvement"
#oreover, along with the populari$ation of countryside fied
telephone and mobile phone, the countryside communication
enterprise also obtains the opportunity of the swift
development.
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9%& The rural consumer market is progressing toward
normali$ation(, which has presented the buyer market
characteristics )ith the advent of the information age and
the rapid development of the rural communications, the ruralconsumer market is moving toward information(. According
to the survey investigations, in recent years, for the fied
telephone, mobile phone, T* channels, networks and other
modern communication facilities in rural areas, the coverage
population is rapidly increasing: +n , /hina's
administrative villages with fied phones have already
reached more than 012, the radio and television network
nearly covered all the administrative villages.
e can ee that the rural market) in%ormation channel i +eing
gra!uall& unimpe!e!3 the in%ormation tranmiion pee! i alo gra!uall&
pee!ing up3 in certain countr&i!e3 and its information propagation
velocity already corresponds to city market. At present, the
rural market is nearly the same as the city market.
/ommodity is various, and the source of goods is abundant.
3early all the daily necessities, the manufactured item for
daily use, the durable consumable and so on, the farmers all
can nearby buy. Along with further enhancement of the
income, compared with the traditional big city, the rural
market has relatively high scale of new latest wealthy
community. This community is younger than the traditional
wealthy community, which is more thoughtful and more open.
To some degree, in the rural market, the supply and demand
relation has presented the buyer market characteristics.
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SOME MYTHS ABOUT THE INDIAN RURAL
MARKET
Myth No. 1: In the a%termath o% ur+an4rural convergence3 rural market
*ill +e mainl& an e,tenion o% ur+an market an! *ill eventuall& em+race the
pro!uct an! +ran! li%et&le o% the latter3 upporte! +& higher !ipoa+le
income3 aggreive retail promotion an! a!vertiing(
The Re!"ty: Rural market repreent a !itinct !&namic in ho* the&
come into +eing an! make uni6ue !eman! on ho* the pro!uct i !eigne!
an! ho* the +ran! i poitione! an! promote!( =reater the trategic attention
to thee uni6ue !eman!3 aure greater the chance o% pro!uct) ucce in the
rural market(
Myth No #:The market i.e can +e etimate! +ae! on mere !emographic
interpolation o% current penetration level an! ale volume an! that even
%ringe preence or limite! acceptance o% li%et&le conumer pro!uct in rural
market *oul! tranlate into %uture market potential to +e tappe!(
The Re!"ty:
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lan! o*nerhip ma& till +e the major !eci!ing %actor accounting %or ocial
!i%%erentiation3 the& !o not &iel! reciprocal cohort +ehavioral pattern3 *ith
repect to conumption pattern3 purchaing !eciion an! prioritie o% pro!uct
o*nerhip(
Myth No.%:That rural market are highl& price4inelatic an! onl& uite!
%or )value4%or mone&) pro!uct a againt premium 6ualit& pro!uct(
The Re!"tyF /epite lo*er inci!ence o% premium pro!uct purchae3 the
rural conumer acro all income egment e,hi+it marke! propenit& to
pen! on premium high 6ualit& pro!uct *hich are +acke! +& trong +ran!
value3 *here the& correpon! to their o*n apiration an! 6ualit& nee!( The
pro+lem reall& lie in market not +eing a+le to o%%er a premium pro!uct in the
peci%ic conte,t o% rural !eman!
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STRATEGIES FOR RURAL MARKET
&A) Product Strategy7ur countr& rural market i relativel& pecial3 *hich ha the !i%%erent
conumer communit& in the !i%%erent ph&iographic region an! the !i%%erent
conumer communit&3 ha the !i%%erence conumer !eman!( There%ore3 *hen
the enterprie launche pro!uct to the rural market the& houl! pa& great
attention to meet the countr& conumer) nee!3 emphai.ing !i%%erence
reearch( The enterprie nee! to take meet %armer) e,pene !eman! a the
gui!ance3 then a!jut pro!uct tructure3 increaingl& improves product!uality, ameliorates product function and develops
practicable, solid which are suitable for the rural market. At
the same time, product packing and brand also should
conform to farmer's consume psychology and the consumer
custom.
4ere what need to be emphasi$ed is that the enterprise
must base on the enhancement of product's basic function
and the reduction of unpractical accessional function, which
can not only reduce the product cost and price, but also can
help the dissemination of enterprise's brand effect. Although
the enterprise also invests the product advertisement in the
countryside, the present stage countryside information mainly
depends on the oral dissemination, and in the short-term
dissemination surface is very big. 5egarding the product's
!uality, the inhabitant favors vicinage's approval rather than
the advertisement effect. +f the good !uality product obtains
the vicinage's approval, it will !uickly get the approval from
the wider region.
&B' Price Strategy
Preentl&3 thi article +elieve the lo* price trateg& i the ke& %actor*hen !eveloping the rural market( =enerall& peaking3 our countr&
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inha+itant) income level i till ver& lo*3 the countr& inha+itant conumption
till take thri%t& a primar& matter( hen purchae pro!uct3 the pro!uct price
i the mot important coni!eration %actor to the countr& inha+itant( There%ore3
*hen entering the market3 the enterprie houl! coni!er a!opting lo* price3
although the hort4term +ene%it i lo*er3 once ei.e the market3 the
countr&i!e huge conume potential *ill +e a+le to +ring the long4term high
pro%it to the enterprie( In +rie%3 *hen the enterprie !evelop the rural market3
fiing a product price is a very essential problem. They must
considers the countryside consumer characteristics, and
measures the enterprise6s own benefit, competitor and market
demand and so on, finally fies the most reasonable product
price.
&C) Channel Strategy
hen chooing marketing channel3 *e houl! %ull& coni!er the
differences between the rural market and the city market.
7ecause the rural market's region is broad, the consumption is
separate, its marketing channel is comparatively sole, namelytop-down supply relations, once forms the !uite stable supply
relations, the loyalty of the downriver dealer to the upstream
is !uite high. Therefore, to some degree, the selection of
dealer determines whether the enterprise will develop the
rural market successfully or not. )hen choosing the dealer
the enterprise must not only inspect its fund strength, but also
must inspect its construction of sales network , the storageand transportation facility, the oral traditions in the local and
so on, then enables it to play the positive role in the rural
market.
&D) Promotion and Service Strategy
The tra!itional promotion mean mainl& inclu!e the elling peronnel3
the a!vertiement3 an! +uine promotion( >ecaue the rural market i
comparativel& !ipere!3 the local !i%%erence i big" the cost of the
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traditional selling personnel is too high. #oreover the result is
very poor. Therefore the selling personnel are not suitable for
the development of the rural market.
&") Advertisement promotion
Along *ith the rapi! !evelopment o% the countr& communication
enterprie3 the in%luence o% the televiion a!vertiement on the %armer i alo
+ig( In vie* o% thi kin! o% ituation3 the *ell4kno*n enterprie nee! to %ocu
on the mot +aic unit3 uch aF the count& eat) ne* an! the village an!
to*n) ne*3 then ue it to propagan!i.e3 o+tain %armer) attention an! the
trut( In a!!ition3 the *all a!vertiement i one uni6ue marketing metho! o%the rural marketF It %orm i imple3 the cot i lo*3 pointe! i trong3 an!
operate impl&3 the maintenance time i long3 an! the !iemination cope i
+roa!( ecaue the
countr&i!e conumer ha relativel& thick competitive p&cholog& an! +lin!l&
con%orma+le p&cholog&3 imultaneoul& the countr&i!e houingcharacteritic caue the neigh+or an! the relative an! %rien! %re6uentl& !rop
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aroun!3 cone6uentl& the in%ormation i e,tremel& open3 an! the oral
!iemination i the main !iemination *a&( There%ore3 i% ome ha ol! an&
goo! thing on cre!it3 it *ill prea! ver& 6uickl&3 an! it can lea! the large
6uantitie o% people to purchae or tick3 then %orm the goo!(
(HY THERE IS A NEED TO FOCUS ONRURAL AREAS)
The rural In!ian market3 *hich account %or nearl& "#$ o% the total num+er o%
houehol! in the countr&3 *itnee! a '5$ annual gro*th in conumer
!ura+le %or '##B3 *hile the ur+an market re%lecte! an annual gro*th rate o%
"4-#$( Let) look at the %actor3 *hich make the rural market an attractive
propoition %or the automotive in!utr&(
1. L*+e ,-to/e* 0e
ith a total population o% more than "5# million3 an! covering aroun! @5$
o% the countr&3 rural area have a huge cutomer +ae( Although !ue to the
increae in ur+ani.ation3 the rural population a a percentage o% the
countr&) total population i e,pecte! to %all3 +ut in a+olute term3 it
continue to comprie a large pool o% cutomer an! i etimate! to touch
@## million +& '#'#(#. I,*ee2 ",o/e !e3e!
There have +een everal %actor that have reulte! in an increae in income
level in the lat %e* &ear( Accor!ing to etimate3 the percentage o%
houehol! earning le than U0/- *a a high a @;$ in -@B53 *hich i
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etimate! to come !o*n to '@$ +& '#'5( 0imilarl&3 the percentage o%
houehol! earning *ithin U0/' to U0/5 i e,pecte! to increae %rom -$
in -@B5 to '#$ +& '#'5(
Let) look at ome %actor that *ill reult in increae! purchaing po*er in
rural In!ia(
'I,*ee " M""/-/ S-44o*t P*",e &MSP':Recor!
%oo! grain pro!uction 9'1# million tone %or
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$
.
E0!e* -,h 7","+
7ver the &ear3 the government ha taken variou tep to provi!e rural
area *ith a trong cre!it tructure( Regional Rural >ank 9RR>: have
+ecome a crucial part o% the rural cre!it tructure in In!ia( The& *ere
create! in -@"5 *hen the nee! %or a tronger intitutional arrangement %or
provi!ing rural cre!it *a %elt( In!ia currentl& ha aroun! -@# RR> *ith
more than -23### +ranche(
In a!!ition3 cheme uch a the Kian Cre!it Car! 9KCC: aim to provi!e
cre!it upport to %armer in rural area( Currentl&3 there are "' millionenrolment un!er KCC in rural areaD urpriingl&3 thi e6ual the num+er
o% cre!it car! uer in ur+an area(
Cooperative ocietie have +een the tra!itional ource o% %inance in rural
area( Thee ocietie have a mem+erhip o% over -'# million rural
people( 7ver he lat %e* &ear3 che!ule! commercial +ank have alo
e,pan!e! their net*ork3 *hich currentl& tan! at --31;" o%%ice in rural
area(
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all4*eather roa!( The target i to contruct -2;3### kilometer o% rural
roa! an! upgra!e another -@;3### kilometer(
Telecom penetration i a %air repreentation o% in%ratructure a!vancement(
It ha increae! igni%icantl& in rural area in the lat !eca!e *ith thee
market contri+uting over "#$ to the total gro*th in the countr&)
u+cri+er +ae( In coming &ear3 invetment in rural telecom in%ratructure
are e,pecte! to reult in More than '5# million u+cri+er +&
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PHARMACEUTICAL
INDUSTRY
PHARMACEUTICAL INDUSTRY
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The pharmaceutical in!utr& i contantl& +eing challenge! to meet the
riing tan!ar! o% 6ualit& an! to compl& *ith rigorou regulator&
re6uirement( Regulator& re6uirement inclu!e
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%ailure to compl&3 hall +e u+ject to regulator& action( In%o 0trength? 0mart
Enterprie 0uite re!uce non4compliance rik +& creating a tranparent
environment %or proactivel& i!enti%&ing3 tracking an! reolving 6ualit& iue(
R"9 M+e/et: In%o 0trength? 0mart Enterprie 0uite
provi!e an integrate! an! %le,i+le %rame*ork %or !ocumenting an! aeing
rik3 !e%ining control3 managing au!it3 i!enti%&ing iue an! implementing
recommen!ation an! reme!iation plan( Pharmaceutical Challenge
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!rug manu%acture an! technolog&( It rank ver& high in the thir! *orl!3 in
term o% technolog&3 6ualit& an! range o% me!icine manu%acture!(
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The pharmaceutical in!utr& in In!ia i poie! to gro* to U025
+illion +& '#-5( The gro*th *ill emerge %rom RJ/ ervice3 e,port o% +ulk
!rug an! generic3 increae! ale in therapeutic area relating to *omen)
an! chil!ren) !ieae an! +etter penetration into the market(
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-( =la,o4ellcome 5("
'( Cipla 2("
1( Ran+a,& 2(#
2( Hoecht Marion Rouel '(B
5( 0un Pharma '(5
;( &!u Ca!ila '(2
"( Knoll Pharma '(1
B( ockhar!t4Merin! '(1
@( P%i.er '(-
-#( Nichola Piramal '(-
';
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PHARMACEUTICAL IN RURAL MARKET
CHARACTERISTICS OF INDIAN
PHARMACEUTICAL INDUSTRY
The trange contour o% In!ia) me!icine market arie partl& %rom the
countr&) ucce in %otering *i!e4open competition3 *hich ha lo*ere!
price3 ma!e !rug *i!el& availa+le an! erve! a a mo!el %or other
!eveloping countrie( The pharmaceutical market in In!ia i etimate! at U0
;(B +illion in '#-#( It account %or B$ in term o% volume o% *orl! pro!uction
an!-(-$ in term o% value( =lo+all& it rank 2th in volume term an! -1th in
value( The market i highl& %ragmente! *ith more than '#3### manu%acturer(
Ho*ever3 onl& '5# o% them are in the organi.e! ector repreenting "#$ o%
the pro!uction(
The market i intenel& competitive( The market hare o% the top
ranking compan& i 5("$( Mot o% the Multi4National Companie 9MNC?:
operate in In!iaD +ut onl& 2 %igure in the top -#( The top -# pharmaceutical
companie together cover aroun! 1-$ o% the total market(
0ome +aic characteritic o% the In!ian Pharmaceutical In!utr& areF
1' C-!t-*! D"3e*"ty:
e are a countr& o% at leat %ive ethnic group3 i, !i%%erent religion3
-; major language3 522 !ialect an! a lan!ma o% 13B"3';1 6 km 4
e6ualing all o% Europe put together an! *ith ome tate larger in i.e than
ome major European nation( Get our marketing people !evie trategie that
appeal to a varie! a cutomer +ae a the aggreive Punja+i3 the emotional
>engali an! the intellectual Tamilian amongt other( In thi conte,t3 it i
intereting to note ho* marketing peronnel *ho con!uct pro!uct launche
an! +rie%ing eion3 intelligentl& alter their approache to ell their i!ea at
!i%%erent venue roun! the countr&(
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PHARMACEUTICAL IN RURAL MARKET
0uita+l& aggreive in the North3 appealing to emotion in the Eat3 to
logic in the 0outh an! to the intellect in the et Thi a+ilit& to tailor
approache to uit cutomer trait an! p&che i an a+ilit& that can +e
e%%ectivel& leverage! in international marketing
#' I2e;-te he!th,*e 4e2:
In!ia ha conitentl& un!er pent on healthcare an! rank amongt the
lo*et healthcare pen!er in the *orl!( It continue to un!er pen! vi44vi
the recommen!ation ma!e +& variou committee et up to a!vie on
improvement o% healthcare in the countr&( That invetment in ocial
in%ratructure *ill pre!icate utaina+le economic !evelopment i recogni.e!+& economit an! +ureaucrat alike3 &et thee invetment have +een !ela&e!
%ar too long an! *ill oon +egin to mani%et an! +ur!en the nation *ith high
ocial an! economic cot(
A-! D*-+ E54e2"t-*e Pe* C4"t
(
'B
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PHARMACEUTICAL IN RURAL MARKET
$' Vo!-/e D*"3e:
The In!ian pharmaceutical market i eentiall& volume4 rather than
value4!riven( Even a light variation in volume ale ha a !irect +earing on
the overall gro*th o% the market(
%' Re+"o! 2"ee 4tte*:
=ro*th o% population in In!ian u+4continent an! other !eveloping
Aian countrie *ith imilar !ieae pattern an! purchaing po*er coul!
provi!e opportunitie %or In!ian pharmaceutical in!utr& to %ocu on
!eveloping molecule in thee market( 0ucce %actor in thi egment *oul!
+e !epen!ent on the a+ilit& to tailor !rug to uit regional !ieae pro%ile cot
e%%ectivel&(
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PHARMACEUTICAL IN RURAL MARKET
PHARMACEUTICAL INDUSTRIAL
TRENDS
The pharma in!utr& generall& gro* at a+out -(54-(; time the =ro
/ometic Pro!uct gro*th
(
=lo+all&3 In!ia rank thir! in term o% manu%acturing pharma pro!uct
+& volume(
The In!ian pharmaceutical in!utr& i gro*n at a rate o% @(@ $ till
'#-' an! a%ter that i e,pecte! to gro* at @(5 $ till '#-5(
In '#-#4--3 In!ia e,porte! !rug *orth U0"(' +illion in to the U0
an! Europe %ollo*e! +& Central an! Eatern Europe3 A%rica an! Latin
America(
The In!ian vaccine market *hich *a *orth U0;;5 million in '#-#4
-- i gro*ing at a rate o% more than '#$
The retail pharmaceutical market in In!ia i e,pecte! to cro U0 -'4
-1 +illion +& '#-5(
The In!ian !rug an! pharmaceutical egment receive! %oreign !irect
invetment to the tune o% U0 -(21 +illion %rom April '### to
/ecem+er '#--(
DRUGS LA(S
1#
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PHARMACEUTICAL IN RURAL MARKET
At preent the %ollo*ing Act an! Rule ma!e there un!er that govern the
manu%acture3 ale3 import3 e,port an! clinical reearch o% !rug an! cometic in
In!ia(
The /rug an! Cometic Act3 -@2#(
The o+ject o% thi Act i to regulate the import3 manu%acture3 !itri+ution an!
ale o% !rug(
The Pharmac& Act3 -@2B(
The aim o% thi la* i to regulate the pro%eion o% Pharmac& in In!ia(
The /rug an! Magic Reme!ie 97+jectiona+le A!vertiement: Act3 -@52
Thi Act i meant to control the A!vertiement regar!ing !rug( It prohi+it the
a!vertiing o% reme!ie allege! to poe magic 6ualitie an! to provi!e %or
matter connecte! there*ith(
The Narcotic /rug an! P&chotropic 0u+tance Act3 -@B5
Thi i an Act to conoli!ate an! amen! the la* relating to Narcotic /rug3 to
make tringent proviion %or the control an! regulation o% operation relating to
Narcotic /rug an!(
INDIAN RURAL PHARMACEUTICAL
INDUSTRY
1-
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Although over "#$ o% the population live in rural area onl& '#$ o%
pharmaceutical ale are in thoe area( A large ection o% In!ia) rural
population *ith a riing level o% !ipoa+le income that i hitherto uncovere!
+& mo!ern me!icine *ill eventuall& come un!er the am+it o% healthcare
program an! *ill create a %reh !eman! %or pro!uct !irecte! to*ar!
in%ectiou !ieae(
&=' tot! !e = o7 G*o6th #118#1#
U*0 "5 ''
Met*o '1 '5
Cla I '5 11
Cla II B -2
Cla III -- -#
Cla I B 4B
V"!!+e '5 -1
Hence3 the greatet market potential e,it in In!ia) interior an! rural
market *here the gro*th rate i etimate! at '5$ per &ear( Currentl& the
reach o% allopathic me!icine in rural area i onl& ';$( The reach i poor !ue
to non4availa+ilit&3 ina!e6uac& an! un!erutili.ation o% me!ical %acilitie in
village( 7nce the in%ratructure 9+oth ph&ical 4 roa!3 communication an!
health 4 hopital3 primar& health center: improve a it mut3 rural market
%or me!icine *ill open up(
Aroun! "## million people3 or "#$ o% In!ia? population3 live in ;3
'"3### village in rural area( @#$ o% the rural population i concentrate! invillage *ith a population o% le than '###( 7% thi a large percentage o%
village !o not even have the %acilit& o% roa! or rail tranport an! have to
travel mile on motorc&cleOcooter3 +ic&cle or +ullock cart to reach the
nearet progreive village %or meeting their +aic neceitie(
herea the tate government J N=7 have ma!e e%%ort to*ar!
provi!ing %e* o% thee +aic neceitie it i the
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PHARMACEUTICAL IN RURAL MARKET
living con!ition to thi !eprive! cla through their rural marketing e%%ort( In
the proce thee companie have truck gol!3 +oth in term o% pro%ita+ilit& a
*ell a pro!uct penetration in to the rural p&che3 la&ing the %oun!ation o% a
long4term +ene%it to thee companie(
Ho*ever3 there ha +een a conpicuou a+ence in thi !irection +& the
Pharmaceutical Companie3 *ho are uppoe!l& the health provi!er o% the
nation( It *oul!3 o% coure +e un%air3 not to mention the pioneering e%%ort o% a
%e* Large pharma houe in thi !irection e(g( =la,o0mithKline3 /a+ur an!
Alkem etc( *ith varia+le uccee( The reaon %or thi pathetic lack o%
interet are man&3 the non4e,itence o% !itri+ution channel3 retail outlet or
%or that matter even 6uali%ie! !octor *ho are prepare! to !o &eoman? ervice
to their countr&men3 living in !eep interior o% the countr&3 +& acri%icing their
o*n a *ell a their %amilie? com%ort an! interet(
In a!!ition to thee
%actor one coul! perhap alo
a!! that majorit& o% the +ig
companie have more than
-### ale peronnel3 +ae! at
virtuall& ever& /itrict Hea!
uarter o% the tate3 *ho
travel to virtuall& all uch
interior market *here roa! or
rail tranportation i availa+le an! hence there i cope to make the pro!uct o%
their companie availa+le in thee interior market( Un!ertan!a+l& thee
companie !o not perceive an& nee! %or %urther penetration into more remote
village(
KEY PLAYERS IN INDIAN RURAL
PHARMACEUTICAL INDUSTRY
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PHARMACEUTICAL IN RURAL MARKET
There are everal national an! international pharmaceutical companie that
operate in rural In!ia( Mot o% the countr&) re6uirement %or pharmaceutical
pro!uct are
met +& thee
companie(
0ome o%
them are
+rie%l&
!ecri+e!
+elo*F
&1' R05y L0o*to*"e L"/"te2 i the +igget
pharmaceutical manu%acturing compan& in In!ia( The compan& i ranke!
at the Bth poition among the glo+al generic pharmaceutical companie an!
ha preence in 2B countrie inclu!ing *orl! cla manu%acturing %acilitie in
-# countrie an! erve to cutomer %rom over -'5 countrie( Ran+a,&
La+oratorie '##@4'#-# 1 Net Pro%it Reult ho*e! a pro%it o% R --;(;
crore a compare! to R 1@2(5 crore !e%icit3 recor!e! !uring the
correpon!ing perio! lat %ical(
' D*. Re22y> L0o*to*"e manu%acture an! market a
*i!e range o% Pharmaceutical +oth in In!ia an! a+roa!( The compan& ha ;#
active pharmaceutical ingre!ient to manu%acture !rug3 critical care pro!uct3
!iagnotic kit an! +iotechnolog& pro!uct( The compan& ha ;
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PHARMACEUTICAL IN RURAL MARKET
&$' C"4! i an In!ian pharmaceutical compan& reno*ne! %or the
manu%acture o% lo* cot anti AI/0 !rug( The compan&) pro!uct range
comprie o% anthelmintic3 oncolog&3 anti4+acterial3 car!iovacular !rug3
anti+iotic3 nutritional upplement3 anti4ulcerant3 anti4athmatic an!corticoteroi!( Cipla alo o%%er other ervice like 6ualit& control3
engineering3 project appraial3 plant uppl&3 conulting3 commiioning an!
kno*4ho* tran%er3 upport(
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PHARMACEUTICAL IN RURAL MARKET
In!ia) Rural Pharmaceutical Market 9-' Month En!e!
anuar& '#--:
Co/4yS"e &
B"!!"o'M*9et Sh*e &='
G*o6th
Rte &='
Total Pharma
Market;(@ -##(# @(@
Cipla (1; 5(1 -1(2
Ran+a,& (12 5(# --(5
=la,o 0mithkline ('@ 2(1 4-('
PiramalHealthcare
('" 1(@ --("
&!u Ca!ila ('2 1(; ;(B
0ourceF 7R= IM0
1;
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PHARMACEUTICAL IN RURAL MARKET
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PHARMACEUTICAL IN RURAL MARKET
CHALLENGES FACE BY
PHARMACEUTICAL INDUSTRY IN RURAL
AREAS
Ever& in!utr& ha it o*n et o% a!vantage an! !ia!vantage un!er
*hich the& have to *orkD the pharmaceutical in!utr& i no e,ception to thi(
0ome o% the challenge the in!utr& %ace areF
9-: Regulator& o+tacle
9': Lack o% tranport %acilit&
9': Lack o% proper in%ratructure
91: Lack o% 6uali%ie! pro%eional
92: E,penive reearch e6uipment
95: Lack o% aca!emic colla+oration
9;: Un!er!evelope! molecular !icover& program
9": /ivi!e +et*een the in!utr& an! tu!& curriculum
1B
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PHARMACEUTICAL IN RURAL MARKET
EPECTAION OF PHARMA INDUSTRY
IN RURAL AREAS FROM GOVERMENT
/r&ing pipeline o% ne* !rug3 increae! RJ/ e,pen!iture an! increae!
preure in the !evelope! nation to +ring the health care cot !o*n ha
compelle! MNC to o%%hore RJ/ %urther( hile In!ia i perceive! a an
attractive !etination to outource RJ/ *ork !ue to it lo* cot an! high
6ualit& capa+ilitie3 to put In!ia in a lea!ing poition3 there i a nee! to
provi!e impetu to uch activitie in the %orm o% ta, an! %ical +ene%it( hile
currentl&3 *eighte! ta, +ene%it i availa+le %or in4houe RJ/3 there are no
peci%ic +ene%it availa+le to unit engage! in the +uine o% RJ/( In thi
regar!3 the =overnment can pla& it role +& provi!ing +ene%it to unit
engage! in the +uine o% RJ/ +& *a& o% !e!uction %rom pro%it linke! to
invetment(
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PHARMACEUTICAL IN RURAL MARKET
E5te2 t5 ho!"2y to ho4"t! 0eyo2 *-*! *e
The 6ualit& an! lo* cot a!vantage ha +oote! the me!ical tourim in In!ia(
In!utr& report ugget that a+out -5#3### me!ical tourit viit In!ia ever&
&ear(
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PHARMACEUTICAL IN RURAL MARKET
H*/o"e 4*","+ *e+-!t"o
Tran%er pricing i another area nee!ing pecial attention %or pharmaceutical
in!utr&( hile tran%er pricing regulation e,pect companie !ealing in active
pharmaceutical ingre!ient 9API:O%inihe! !rug %ormulation 9
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PHARMACEUTICAL IN RURAL MARKET
coul! coni!er rationali.ing the !ut& tructure +& making it at par *ith !ut& on
%inal output( Another !eman! ha +een to increae the a+atement limit allo*e!
%or computation o% e,cie !ut& on me!icament3 %rom 15 to 25 percent(
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PHARMACEUTICAL IN RURAL MARKET
p&che o% the rural conumer an! then act accor!ingl&( To e%%ectivel& tap the
rural market a +ran! mut aociate itel% *ith the thing that the rural %olk
are %amiliar *ith( Peronal contact *ith the rural cutomer not onl& %acilitate
un!ertan!ing o% the rural min!et +ut alo %acilitate e%%ective ale promotion(
S!e P*o/ot"o Che!:
The pharmaceutical companie? ale people3 manning the van3 utili.e
the variou rural %olk me!ia like /e! ht 7et"3! *e!"+"o-
,e!e0*t"oan! m&ria! other ritual to reach them in their o*n language an!
in large num+er *here the& aem+le to carr& out their +uine !ealing a
*ell a meet their %rien! an! aociate on thee occaion(
The mela an! haat are ver& important event a thee are normall&
hel! either a%ter a harvet eaon or !uring religiou cele+ration e(g( /aera3
/i*ali3 Holi an! imilar occaion3 +ecaue thee are the occaion *hen the
3"!!+e 7o!9 " " /oo2 to 4e2mone& on purchae3 *hich normall& the&
*ill not in!ulge in( In participation in +a.aarOmela3 the regional tockit can
pla& an important role !ue to pro,imit& to the area an! kno*le!ge o% the area(
Thi emerging market can give 6uick +uine(
The other availa+le option in the tra!itional rural me!ia are P-44et*y
Fo!9 Thet*e J"+!e (!! P"t"+ De/ot*t"o Pote*
A+*",-!t-*! G/e J !itri+ution o% calen!ar3 photo car! etc( *ith
pro!uct meage(
The poi+ilitie are numerou an! the emphai i on coming up *ith
innovative ale promotion trategie an! preparing ale promotion material
!irecte! e,cluivel& to*ar! titillating the p&che o% the rural %olk(
hatever +e the channel o% ale promotion the point to keep in min!
are thatF 4
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PHARMACEUTICAL IN RURAL MARKET
9-: The meage remain at the ite %or a coni!era+le !uration o% time %or the
meage to percolate !eep into the min! o% the +ehol!er( Mutilate! poter3
*all painting are replace! at the earliet opportunit&(
9': The ale people maintain regular contact *ith the village %olk through
peronal meeting3 to clari%& an& lingering !ou+t or provi!e a!!itional
in%ormation(
91: The meage i imple an! hence eail& perceiva+le +& the rural cutomer(
92: The communication o% the meage i mainl& through pictorial !epiction
rather than through cop& matter(
95: The concerne! !octor !oe cloe %ollo* up o% the treatment initiate! an!
change the me!icine or mo!i%& the !oage che!ule( The other channel o%
ale promotion coul! +e the circulation o% i!eocaette on u+ject o%
interet to the village %olk3 along *ith pro!uct meage3 through
=rampancha&at or the cooperative tore %or communit& vie*ing an!
u+e6uent !icuion *ith the concerne! ale peronnel or !octor(
hat ha to +e recogni.e! i that there i much more that nee! to +e
!one to ervice the rural market( The
ke& iue that nee! to +e a!!ree! are not onl& availa+ilit& an! a*arene
+ut alo the more !i%%icult iue o% overcoming prevalent attitu!e an! ha+it(
Changing ha+it an! attitu!e are !i%%icult3 to a& the leat3 o the reult take
long to come( 7ne mut keep on !ogge!l& *ithout letting up in the mi!!le an!
the *eetne o% ucce *ill eventuall& +e relihe!(
TRADITIONAL STRATEGIES FOLLO(ED
BY INDIAN PHARMACEUTICAL
COMPANIES IN RURAL AREAS ARE
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PHARMACEUTICAL IN RURAL MARKET
Pharmaceutical companie have long courte! In!ian !octor *ith gi%t
an! junket( The me!ical repreentative o% pharma companie approach thee
!octor *ith uch varie! gi%t %rom ke&4chain an! pen4hol!er to air4
con!itioner an! colour televiion( Pharma companie alo hol! regular
regional meeting %or !octor *here the& are invite! along *ith their %amilie
to ta& in hotel an! enjo& vacation at the compan&? cot(
Man& companie alo take thee !octor on tour a+roa! o a to
!evelop goo! relation *ith them an! alo to make them precri+e the
compan&? !rug( Thi3 even though it ma& eem e,penive3 i ver& goo! in
the long run a it +oot the ale o% the compan&(
A the num+er o% In!ian companie proli%erate! an! their
repreentative +egan !ecen!ing on !octor) o%%ice in !rove3 the& o%ten
*ere given cant time to promote their pro!uct( 0o the !rug maker +egan
pa&ing more attention to pharmacit( Incentive to +u& large 6uantitie o%
precription !rug have +ecome commonplace in In!ia3 *here thouan! o%
!rug manu%acturer compete %or hel% pace an! the countr&) hal%4million
pharmacit *iel! an unuual amount o% clout( In In!ia3 man& patient are too
poor or too +u& to ee a !octor an! o%ten rel& on local pharmacit %or
me!ical a!vice( A a reult3 po*er%ul !rug are routinel&3 an! illegall&3 ol!
over the counter(
CURRENT STRATEGIES FOLLO(ED
BY INDIAN PHARMACEUTICAL
COMPANIES IN RURAL AREAS
In the In!ian pharmaceutical a!vertiing3 pharma companie !o not ue
televiion a a mean o% a!vertiing %or mot o% their !rug other than !rug
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PHARMACEUTICAL IN RURAL MARKET
%or cough J col!3 athma etc( Mot o% the marketing take place through
me!ical repreentative o% the compan& an! alo through incentive cheme(
In the rural area3 mot o% the patient are not a*are a+out even the implet o%
me!icine an! rel& olel& on their !octor? a!vice a+out *hich +ran! to +u&(
Alo3 man& poorer people go !irectl& to the pharmacit an! take the me!icine
that he recommen! %or curing their ailment( Hence3 the primar& target %or
all marketing activitie3 epeciall& in rural area3 are not actuall& the en! uer
+ut the !octor an! pharmacit ince thee are the people *ho can
recommen! the me!icine J more importantl&3 +ran!3 to the rural population(
The rural population alo relie heavil& on a&urve!ic3 unani an! other
uch alternative cure( Hence3 multinational companie are either entering
thee market or tr&ing to *oo the rural population a*a& %rom it(
Io3t"3e /etho2 o7 /*9et"+:
The preent campaign +ae! on cutomer %ocue! promotion !one +&
man& pharma companie ha prove! that in to!a&) *orl! man& people are
ucce%ul onl& +ecaue o% innovation( 0ome o% thee innovative mean areF
He4t"t" 8 B V,,"e C/4"+:
The innovation in promoting the Hepatiti > vaccine campaign reall&
carve! pecial market potential %or the ame( The claical approach in
pampering Retailer an! /octor !oe not hol! true( In %act going to the en!
uer +& uing conumer4marketing approach a!opte! +& man& pharma +ig
pla&er in thi egment ha helpe! to increae their +uine( Thi reulte! in a%our4%ol! increae in ale( The innovative clai%ication approach i given
+elo*(
2;
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PHARMACEUTICAL IN RURAL MARKET
E2-,te C-to/e* Ro-te:
Taking e!ucation a the mean to innovate can +e an important tool in
pharma innovation( Cipla? a*ar! %or the +et pu+lication in car!iolog&3clinical &mpoia3 mailing3 provi!ing re%erence are the claical approache
in innovation( Ho*ever3 non4claical can +e provi!ing o%t*are to /octor
%or the management o% hopital an! clinic or en!ing Email to the /octor
*ho have acce to the Computer(
Fo*/"+ -e* ,!-0 Ro-te:
Thi i an innovating approach that can +e coni!ere! activel& +&
Pharmaceutical Companie( 0earle *a the %irt compan& to initiate Lorno%en
Clu+ *herein there *a a 6uarterl& get together o% !octor) %amilie( Houe
maga.ine *ere circulate! among Lorno%en mem+er( Thi ha create!
interet among /octor( Thi proce helpe! to retain lo&al cutomer to
Lorno%en( Thee innovative *a& gave Lomo%en the no( - poition in anti4
!iarrhea market( There i a a&ing that B#$ o% the +uine come %rom '#$
o% the cutomer( There%ore3 retaining a cutomer i eaier than ac6uiring one3a ac6uiring cutomer re6uire e,pen!iture( Thi i a novel approach *hich
Pharmaceutical companie can a!opt a it can give e,tra mileage(
A44!",t"o o7 o,"! /*9et"+ *o-te 7o*
"o3t"o:
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PHARMACEUTICAL IN RURAL MARKET
Thi i &et another avenue that can +e taken up to +oot the ale o% the
cutomer( The Hepatiti !etection campaign3 H&pertenion !etection camp
are *ell kno*n in thi !irection( It not onl& help in !etecting %reh cae +ut
alo help in increaing ale( 0ample are given to the cutomer %or ome
!a&3 *hich are %ollo*e! +& the cutomer un!er uperviion o% their me!ical
/octor( Thi help to improve the +uine in the long term( The ucce o%
/aonil an! Lai, can +e attri+ute! alo to thi innovative campaign in tapping
the ne* cutomer(
Cricket i a paion in In!ia( Recentl& 0un Pharmaceutical ha! a
uni6ue *a& on calling ENT pecialit %or the cricket match along *ith their
%amil& mem+er( Thi generate! an interet among the /octor lea!ing to
6uick repone %or the pro!uct )Relie% 4 an anti4col! preparation( Thi i a
novelt& compare! to other like partie3 cocktail3 !inner etc( No !ou+t3 to!a&
ocial marketing i again getting importance +ecaue /octor to!a& are not
interete! in partieOcocktail !ue to large no( o% companie going %or the
ame( There%ore3 there i no innovation in that repect(
A44!",t"o o7 *e!t"oh"4 /*9et"+ " ,-to/e*
7o,-e2 4*o/ot"o:
To!a& relationhip marketing i a +u..*or! all over the *orl!( People
have reali.e! that it i +etter to !evelop goo! relationhip *ith the cutomer
o that the& !on)t *itch over( Relationhip
An& %actor not upto the mark can lo*er the relationhip( The
companie like Alkem have the practice o% en!ing *ell4kno*n 0r( Managerepeciall& pro!uct manager on %iel! trip( Thi *ill give them an opportunit&
to accompan& a !octor to an& particular venue an! take intervie* !uring
traveling *ith him( Thi i an e,cellent innovation in market reearch( Thi
alo help to !evelop relationhip( Application o% Computer /ata in en!ing
+irth!a&3 marriage anniverar& car! can +e ue%ul in +uil!ing up the
relationhip( In%act3 the innovation approach *oul! +e i% telephone call *ere
ma!e +& 0r( E,ecutive to !octor on uch occaion( Recentl&3 the !octor
ai! that man& companie take >irth!a& !ate +ut !on?t +other to repon!
2B
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PHARMACEUTICAL IN RURAL MARKET
narrate! thi( Ho*ever3 thi imple techni6ue help to !evelop a ne* hori.on
in relationhip(
Io3t"o 0e2 o Ret"!e* Sto,9"et:0an!o. a!opte! the conumer in!utr& i!ea in pharmaceutical
promotion an! appointe! clinical pecialit un!er tockiet to promote their
pro!uct( It et a tren! in pharmaceutical marketing( 0pecial +ooking contet
among tockiet? repreentative can +e e,ploite! to improve the penetration(
0an!o. e,ploite! thi avenue +& incorporating a hirt a a gi%t to highet
+ooker o% their pro!uct among tockiet repreentative( Cipla) e,perience o%
!etailing an! e!ucating the retailer enhance! their relationhip( In%act3innovation4uing training a tool to improve ale can +e ucce%ul(
Training the retailer in cutomer) management un!ertan!ing
%inance3 computer3 cutomer ervice3 picnic3 tre management3 cricket hiel!3
+et maintaine! chemit hop etc can +e innovative approache(
METHODS OF ADDING VALUES TO
RETAILERS
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PHARMACEUTICAL IN RURAL MARKET
To!a& rural market i emerging a %at potential egment( 0tockiet
role i ver& important in thi egment(
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PHARMACEUTICAL IN RURAL MARKET
DRUG DISTRIBUTION CHANNELS
/rug !itri+ution in In!ia i la&ere! an! regulate!( Unlike in the et3
*here a manu%acturer can !irectl& uppl& goo! at the retail level3 pro!uct in
In!ia move through a chain o% interme!iarie(
The manu%acturer upplie goo! to the %irt la&er compriing a
clearing an! %or*ar!ing agent3 a uper tockiet or a compan&4o*ne! !epot(
Thee3 in turn3 uppl& to tockiet %rom *hoe premie goo! are route! to
*holealer3 me!ical intitution3 hopital an! retailer( The retailer !ipene
the !rug to %inal conumer( Manu%acturer can !irectl& uppl& to intitution
an! hopital3 +ut never to a retailer(
Che! o7 2*-+ 2"t*"0-t"o
There are even trategicall& locate! me!ical tore organi.ation3
*hich uppl& to government hopital an! !ipenarie in rural an! u+ur+an
area( Thee organi.ation procure goo! !irectl& %rom companie +& inviting
ten!er o a to keep the cot lo*( =overnment hopital an! intitution alo
invite ten!er( 0ome private intitution alo go in %or ten!er *hile the
majorit& negotiate *ith companie to !icount tockiet an! chemit margin
in a!!ition to +ulk purchae !icount(
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PHARMACEUTICAL IN RURAL MARKET
RURAL MODELS
There i nee! %or innovative rural mo!el having concurrence *ith the
health minitr& *hich *oul! i!eall& act a a no!al agenc& %acilitating the
e%%ort o% variou +o!ie like N=73 the /itrict or Taluka level IMA +o!ie
an! roping in the
goo! o%%ice o%
gram pancha&at
an! village
el!er( Perhap
it i time %or a
rethink o% the
entire concept o%
PHC( A tart
coul! +e ma!e atleat +& !elinking them %rom !rug procurement a mot are
!e%unct %or *ant o% me!icine( The ne* mo!el ha to +e *orke! out veting
private initiative an! partnerhip in !rug !itri+ution an! !ipenation( Revive
an! put li%e into the PHC *ith minimal clinical acceorie an! &oung !octor
manning them %or a minimum o% t*o &ear man!ator& poting( The& houl!precri+e the eential me!ication *hich then houl! +e ma!e availa+le at the
private &n!icate! outlet like gram pancha&at o%%ice or rural co4operative
*here people pa& or get me!icine on +arter %or their pro!uce( It i here that
pharmacit %rom rural or emi rural area can +e gain%ull& emplo&e!( The&
*oul! +e more than *illing to go there an! liaie *ith &oung !octor at the
PHC3 +oth o% *ho *ill have a +urning !eire to raie health tan!ar!( 7%
coure3 the nitt&4grittie have to +e *orke! out peci%ic to each region( Pharma
companie *ill have to make the %irt move to provi!e 6ualit& generic at cot3
not charit&(
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PHARMACEUTICAL IN RURAL MARKET
RURAL PHARMACEUTICAL NET
ENGINE OF GRO(TH FOR THE INDUSTRY
In!ian pharmaceutical in!utr& i gra!uall& picking pace in the rural
market( hile metro an! citie account %or aroun! ;#$ o% the market hare
o% the pharma in!utr&3 untappe! potential o% rural market it i +eing een a
ne,t volume !river o% the in!utr&( Riing income level lea!ing to more
a%%or!a+ilit&3 pee!ing up o% health in%ratructure3 an! li%et&le !ieae along
*ith health inurance are %uelling the gro*th in rural area(
Rural market gre* at a+out 2#$ to touch -(2 +illion in '##;4#" an!
i e,pecte! to have higher gro*th rate than overall pharma in!utr&3 ai!
ector hea! 4 pharmaceutical3 KPM=3 Hiteh =ajaria( In lat couple o% &ear3
rural egment ha manage! higher gro*th &ear on &ear( The egment manage!
'- $ gro*th in calen!ar &ear '##5 an! @ $ in CG #2( =ro*th in the rural
market ha +een le! +& %avora+le economic an! !emographic %actor3
inclu!ing riing income3 in%ratructure3 increae! a%%or!a+ilit& o% !rug3 an!
increae! penetration o% health inurance an! gro*ing organi.e! retail in the
rural area3 ai! =ajaria(
Health in%ratructure alo nee! to improve3 a onl& '#$ o% In!ia)
total health in%ratructure i in rural area *here "#$ population live(
Ho*ever3 *ith riing rural healthcare e,pen!iture an! improving
in%ratructure %acilitie *hich are encouraging pharma companie to invet in
rural market an! government announcement o% %ive &ear ta, holi!a& %or
hopital in rural area *ill %urther help in %acilitating +aic healthcare
amenitie3 the KPM= o%%icial ai!( Pharma companie *ill have to %ocu on
trengthening their marketing an! !itri+ution channel along *ith uppl&
chain management to capitali.e on the opportunitie rural egment o%%er3 he
a!!e!( Market hare o% the rural pharma roe %rom -B$ in '##5 to '-$ in
'##"( >& '#-5 rural pharma market *ill +e aroun! '2$ an! market i.e i
e,pecte! to reach 2(B +illion %rom -(' +illion in '##53 a per McKine&
report )In!ian Pharma '#-5)( The report e,pect In!ian pharma market to reach
to '# +illion *hile alo highlighte! that a%ter metro3 rural egment *ill ee
the %atet incremental gro*th +& '#-5(
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PHARMACEUTICAL IN RURAL MARKET
MNC PHARMA FIRMS LINE UP TO TAP
INDIAS RURAL MARKET
Pharma MNC operating in In!ia are !ra*ing up aggreive trategie
to tap into the rural market *here In!ia? t*o4thir! o% the population live(
Aventi Pharma3 the In!ian arm o% the
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PHARMACEUTICAL IN RURAL MARKET
*a&(MNC inclu!ing Eli Lill&3 Novo Nor!ik3 an! Novarti are alo chalking
out programme to tap the rural cutomer(Novarti i currentl& targeting
village in even tate *ith lo*4price! pro!uct availa+le in a variet& o%
package i.e( The mo!el upplie me!icine to more than -;3### pharmacie(
Novarti alo create a*arene on health iue uing au!ioviual inter%ace
through health a!vior in village( Novo Nor!ik prea! a*arene through
mo+ile clinic along the village in =oa to creen patient %or !ia+ete( Lill&
ha +een *orking *ith the 0el%4Emplo&e! omen? Aociation in
Ahme!a+a! to e!ucate people on tu+erculoi( =ro*ing at compoun!e!
annual gro*th rate o% nearl& -2$ in the ne,t %e* &ear3 the In!ian
pharmaceutical market i e,pecte! to touch U0/ 2# +illion +& '#-53 pre!icte!
a recent report +& the glo+al management conulting major Mckine& an!
Compan&( In!ian pharma market3 *hich i currentl& value! at U0/ '# +illion3
coul! ee the %igure almot !ou+le in ne,t 5 &ear majorl& propelle! +& the
tea!& gro*th in the !ometic egment( Relate! tor&F In!ian pharma market
ale up !epite receion( The !ometic market *hich i gro*ing at almot -#
to -2 per cent at preent itel% *ill provi!e U0 '# to '2 +illion in '#-5 an!
the e,port an! contract manu%acturing +uine3 *hich are gro*ing at -# per
cent per annum3 *ill contri+ute to achieve the pre!icte! gro*th(
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PHARMACEUTICAL IN RURAL MARKET
PROBLEMS FACED IN RURAL MARKETS
BY PHARMACEUTICAL COMPANY
The tate o% in%ratructural ina!e6uac& that the people o% rural In!ia are
till en!uring peciall& in the area o% tranportation3 anitation J availa+ilit&
o% even the ru!imentar& me!ical %acilitie i appalling(
I there no reme!& to thi tangle thenV Companie houl! %ocu on the
opportunitie availa+le in rural market rather than !eveloping col! %eet at the
enormit& J multiplicit& o% the pro+lem taring at them a a reult o%
in%ratructural ina!e6uac&( Let u look at each iue *ith an un+iae! min! o
that *e are a+le to %in! ome olution to thi tangle(
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PHARMACEUTICAL IN RURAL MARKET
SOLUTION FOR THE ABOVE MENTIONED
PROBLEM
The %irt pro+lem o% lack o% tranportation coul! +e eail& reolve! +&
procuring o*n van or tempo( Ma& +e even motorc&cle carrier coul! +e
thought o% *here proper roa! are none,itent(
The econ! iue i more !i%%icult to tackle +ut not impoi+le( Goung
!octor3 %rehl& out o% me!ical college3 +rimming *ith enthuiam %or
ren!ering el%le ervice couple! *ith a ene o% a!venturim coul! +e
recruite! %or thi purpoe( 0electing right %rom the campu at lucrative pa&
package coul! +e the %inal impetu nee!e! to enlit total cooperation o% the
ne* !octor( Thee !octor can then +e attache! to a mo+ile clinic i(e( a
converte! van or tempo an! ma!e to penetrate into a et o% !eep4eate!
interior village or market(
The iue o% none,itent !itri+ution channel J retail chain alo ha a
olution( 7ne *a& to reolve the pro+lem coul! +e +& uing compan& !eliver&
van %or thi purpoe( Thee van can reach the pro!uct to the cutomer in
ever& nook an! corner o% the market an! thu reolve the pro+lem o% pro!uct
availa+ilit&( Another +ene%it i that thi *ill ena+le the &n!icate! %irm to
eta+lih !irect contact *ith the cutomerOconumer(
Heav& capital e,pen!iture3 un!ou+te!l&3 i one %actor *hich care
a*a& mot o% our goo! intention( Let u coni!er that t*ent& to t*ent&4%ive
mi!4i.e Pharmaceutical Companie come together an! plan to enter the rural
market in real earnet( Then the entire e,pen!iture3 +e it capital or
promotional3 can +e !itri+ute! to thee t*ent&Ot*ent&4%ive companie intea!
o% the total +ur!en %alling on the houl!er o% an& one organi.ationD thu
!iluting the %inancial loa! an! +ringing the e,ercie *ithin limit o% %eai+ilit&(
5"
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PHARMACEUTICAL IN RURAL MARKET
CASE STUDY8 1
A TYPICAL CASE OF A PHARMACIST IN
RURAL INDIA IS GIVEN BELO(:
7n a +u& recent 0un!a& a%ternoon at the 0hree 0amarth Me!ical 0tore
in the *etern In!ia agricultural to*n o% /in!uri3 o*ner >apuahe+ Patil *a
openl& elling precription !rug *ithout precription3 inclu!ing anti4
in%lammator& pill3 ulcer ta+let an! anti4tu+erculoi !rug( He ue! anote+ook to keep track o% hi regular cutomer) %avorite me!icine3 in cae
the& %orgot the name or remem+ere! onl& the color(
Mr( Patil alo !i!n)t !iguie hi motivation %or recommen!ing certain
+ran!( The ultimate !eciion i +ae! on *hat the margin are3 he ai!(
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PHARMACEUTICAL IN RURAL MARKET
Othe* e5/4!e:
=la,o0mithKline) 0mithKline >eecham unit an! 0chering A= o%
>erlin3 among other3 recentl& o%%ere! a promotion !u++e! Mega MerchantF
0ell an! Enjo&( In e,change %or +u&ing three +o,e o% Primolut4N3 a 0chering
hormone precri+e! %or mentrual irregularitie3 an! everal other !rug3 a
retailer receive! a %ree +o, o% the anti+iotic amo,&cillin3 an! a ticket %or a
!ra*ing %or -'2 vacation in =erman&3 Nepal an! everal In!ian !etination(
Makaran! /ehpan!e3 general manager o% ale an! marketing %or
=erman Reme!ie3 a& the %our4month promotion *a a mo!erate ucce(It +oote! ale o% ome lo*4elling !rug +& - million3 *hile the trip cot
the compan& onl& a+out -##3###( He ackno*le!ge that ome o% Primolut4
N) ale in general are over4the4counter3 +ut he a& the promotion *an)t
aime! at encouraging that(
The multinational companie *hich !o not o%%er uch cheme have to
u%%er at the han! o% the po*er%ul pharmacit aociation( ino! Topa3
!irector o% ale an! marketing %or the In!ian u+i!iar& o% A++ott
La+oratorie a& *hen he joine! the compan& in /ecem+er3 it *a a!!le!
*ith huge amount o% e,pire! me!icine returne! +& pharmacie that ha!
+ought them un!er incentive program +ut %aile! to ell them( He noti%ie!
!itri+utor that there *oul! +e no more +onu plan a%ter ul& 1-3 +ut he a&
pharmacie imme!iatel& repon!e! +& re!ucing purchae o% A++ott !rug( I
am %acing the muic no*3 he a&(
A tu!& +& the >om+a& market4reearch %irm Interlink Healthcare
Conultanc& %oun! that all +ut one o% the top '5 !rug companie in In!ia o%%er
uch !icounting !eal at leat once a month(
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PHARMACEUTICAL IN RURAL MARKET
CASE STUDY #
The 4-*"o- 2*-+ /e,e:
A major pro+lem %ace! +& pharmaceutical companie to!a& i the
gro*ing menace o% puriou !rug in the market( The !ometic
pharmaceutical in!utr& i no* paing through a crii( Alrea!& a+out one4
i,th or R -35## crore *orth o% it +uine i in !ol!rum( The menace o%
puriou3 counter%eit an! %ake !rug ha hit it +a!l&( In or!er to tackle the
pro+lem hea! on3 nine companie namel& Alem+ic Lt!(3 Ca!ila Healthcare
Lt!(3 Cipla Lt!(3 /r Re!!&) La+oratorie Lt!(3 Lupin La+oratorie Lt!(3
Nichola Piramal In!ia Lt!(3 Ran+a,& La+oratorie Lt!(3 0un Pharmaceutical
In!utrie Lt!( an! ockhar!t Lt!( have joine! han! un!er the aegi o%
In!ian Pharmaceutical Alliance 9IPA:(
0puriou !rug not onl& hurt companie +& lo o% ale3 the& alo
tarnih image an! reputation o% their +ran!( The conumer get cheate! a
puriou !rug !o not treat the ailment an! there%ore the patient continue to
u%%er( In cae o% critical con!ition3 it coul! even +e li%e threatening( The
government too u%%er %rom revenue lo a manu%acturer o% puriou !rug
!o not pa& e,cie !ut&3 ale ta, an! income ta,( Like*ie the tra!e in
puriou !rug +eing unaccounte!3 thoe !ealing in them alo !o not pa& ta,
thereon(
;#
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PHARMACEUTICAL IN RURAL MARKET
VISIT REPORT
I have viite! the o%%ice o% All In!ia 7rgani.ation o% chemit an! !ruggit at!a!ar on "th octo+er '#-1 an! met Mr((0(0HIN/E the prei!ent o% thi
organi.ation( Thi organi.ation provi!e variou !onation an! %ree me!ical
treatment to variou poor people *ho u%%er %rom variou !ieae( The&
organi.e! variou me!ical camp in the rural area an! provi!e them
e!ucation relate! to variou !ieae an! provi!e %ree me!ical treatment(
I have ake! him variou 6uetion relate! to pharmaceutical in rural area an!
accor!ing to him %ollo*ing are the major pro+lem in rural areaF
i( Lack o% kno*le!ge a+out variou !ieae !ue to illiterac&
ii( Mot o% the people in rural area are %rom poor %amil& o the& cant
a%%or! me!ical treatment(
iii( Corruption i the major reaon !ue to *hich variou cheme an! help
provi!e! +& the government i not a+le to reach to the poor people(
He alo tate! variou olution to the a+ove ai! pro+lem( He ai! that the
rural people houl! take initiative to kno* a+out the variou !ieae an!
houl! take precautionar& meaure at the earl& tage( He ai! that the
pharmaceutical compan& houl! take variou meaure to improve their
ale(
At the en! o% thi report I *oul! like to thank Mr( (0(0HIN/E prei!ent
o% All In!ia 7rgani.ation o% chemit an! !ruggit %or olving m& 6uerie
relate! to pharmaceutical in rural area(
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PHARMACEUTICAL IN RURAL MARKET
CONCLUSION
The gro*th o% intitutional ale ha! little impact on the accei+ilit& o%me!icine in rural area( A large proportion o% the rural population till !oe
not have acce to proper me!ication an! the ituation ma& take long to
improve( Rural area contri+ute aroun! '-$ to the total pharmaceutical
market( In '##;8#"3 the rural pharmaceutical market *a etimate! at aroun!
-(2 +illion( Nearl& "#$ o% In!ia? population live in rural area *here
healthcare in%ratructure i poor( ith increaing rural houehol! income3 the
rural market i +ecoming more attractive( Accor!ing to etimate +& the
Planning Commiion3 rural houehol! no* pen! -'$ o% their income on
healthcare(
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PHARMACEUTICAL IN RURAL MARKET
BIBLIOGRAPHY
-: RURAL MARKETIN=
4PHILIP K7TLER
': IN/IAN PHARMACEUTICAL A007CIATI7N
4RAMA 0AMG
1: PHARMA PUL0E
4 KAILA0H 0HARMA
;1
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PHARMACEUTICAL IN RURAL MARKET
(IBLIOGRAPHY
-: ***(in!ianin%oline(com
': ***(i+e%(org
1: ***(in!ianpharmaceutical(com
2: httpFOOen(*ikipe!ia(orgO*ikiOMeaning
http://www.ibef.org/http://www.indianpharmaceutical.com/http://en.wikipedia.org/wiki/Meaninghttp://www.ibef.org/http://www.indianpharmaceutical.com/http://en.wikipedia.org/wiki/Meaning