Transcript
TETANUS TOXOID SINGLE DOSE COMBO PACK –
MARKET POTENTIAL, CUSTOMER PERCEPTION AND
PRICE SENSITIVITY
Submitted By
S. Manikandan Sanjive (30037)
Organisation Traineeship Segment
PRM 2009-11
Submitted to
Mr.N.Anand
General Manager Marketing
Human Health
Indian Immunologicals Limited
Faculty Guide
Prof. Himadri Roy Chaudhry
INSTITUTE OF RURAL MANAGEMENT, ANAND
2010
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ACKNOWLEDGEMENT
Organisation Traineeship segment at Indian Immunologicals Ltd was a great learning
experience for me. I am thankful to all those people who have helped me in completing this
project successfully.
First of all I would like to acknowledge the support, motivation and guidance provided by
Mr.N.Anand, General Manager (Human Health Marketing), Indian Immunologicals. It is his
guidance and motivation that kept me going all through the project.
I would like to thank Mr. Narendhra Agarwal (Manager, Human Health Marketing) and
Ms. Aditi (Product Management Team, Human Health Marketing) for all the help and support
they provided us all through the project.
I must express my sincere gratitude to my faculty guide Prof. Pratik Modi who gave me a
lot of ideas to apply in this project and was always there all through the project.
I would like to acknowledge the OTS coordinator Prof S.R. Asokan. His efforts in
managing this segment have lead to me getting this project which has been a very good learning
experience for me.
S. Manikandan Sanjive (30037)
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EXECUTIVE SUMMARY
Project Title – Tetanus Toxoid Single Dose Combo Pack – Market Potential, Customer
Perception and Price Sensitivity
Project Guide: Prof. Himadri Roy Chaudhry
Reporting Officer: Mr. N. Anand
Student’s Name: S. Manikandan Sanjive (30037)
Project Objectives:
To analyze TT combo pack vaccine market in one metro of India.
To estimate the market size of TT vaccine combo packs in India.
To establish factors customers look out in TT combo packs.
To map the customer perception about TT combo packs.
To understand the price sensitivity for TT combo packs.
To determine the demand curve for TT combo packs.
Scope of the study: Tetanus Toxoid Single Dose Combo Pack is the product handled. The area
covered for the study is Bangalore. A total of 55 doctors were interviewed which included
general practioners, gynaecologists and Orthopaedists.
Methodology: A pilot study was conducted in Hyderabad to test the questionnaire that was
prepared for the doctors. The improved questionnaire so obtained was administered to doctors in
Bangalore. The list of doctors in major localities in the city of Bangalore was obtained from
asklaila.com, sulekha.com and list given by the organisation. As the list given by the
organisation is not clear, help was taken from these websites. The doctors were randomly
selected from the list and surveyed. Data analysis was done using tools such as Microsoft excel
and SPSS.
Summary of findings: For Tetanus Toxoid vaccine, Serum is the market leader and it can be
interpreted that Serum has done extensive brand building exercise. Doctors perceive combo
packs to be convenient but sceptical about economy. The three main factors customers look out
for in TT combo packs are easy availability, convenience, brand and price. But HBI is
concerned only on institutional marketing. So it has to concentrate on the other side of business,
also, to expand its horizon in TT market. Again, the price of Rs.22 is perceived to be very costly
to doctors. The ideal MRP that can be charged Rs.12.90 and the acceptable price can extend till
Rs.17.60. To capture the market fast, a predatory price of Rs. 10.20 can be set backed up by good
brand building and rapport building. It is also found that doctors prefer vaccines stored in
ampoules.
Suggestions: HBI has to concentrate on three aspects: (1) Availability (2) Brand and rapport
building and (3) Price correction. The visibility of AbhayTox in markets is low and it has to be
increased. Also the pharmacists must be persuaded to stock the product. This can be done by
good rapport building with the pharmacists and stockists through medical representatives. As
such HBI was associated only with AbhayRab and hence, brand building with respect to
AbhayTox has to be taken up. Medical Representatives‟ role in brand building and rapport
building should not be ignored. The price revision of HBI product is also recommended.
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TABLE OF CONTENTS
ACKNOWLEDGEMENT .............................................................................................................. ii
EXECUTIVE SUMMARY ........................................................................................................... iii
LIST OF FIGURES ...................................................................................................................... vii
LIST OF ABBREVIATIONS ......................................................................................................... 8
1. INTRODUCTION ...................................................................................................................... 9
2. BACKGROUND OF THE STUDY ......................................................................................... 10
3. RESEARCH PROBLEM .......................................................................................................... 10
4. RESEARCH OBJECTIVES ..................................................................................................... 10
5. SCOPE OF THE STUDY ......................................................................................................... 10
6. METHODOLOGY.................................................................................................................... 13
6.1. Research Design ................................................................................................................. 13
6.1.1. Descriptive Research ................................................................................................... 13
6.1.2. Field Survey ................................................................................................................. 13
6.2. Sampling Plan ................................................................................................................. 13
6.3. Questionnaire .................................................................................................................. 13
7. MARKET ANALYSIS ............................................................................................................. 14
7.1. Brand Consciousness .......................................................................................................... 14
7.2. Price Consciousness ........................................................................................................... 14
7.3. Awareness of Combo Packs ............................................................................................... 15
7.4. Economy and Convenience of Combo packs ..................................................................... 16
7.5. Package Preference ............................................................................................................ 16
7.6. Titre Recall ......................................................................................................................... 17
7. Willingness to Shift to Combo Packs .................................................................................... 18
7.8. Brand recall......................................................................................................................... 19
7.9. Vaccines Given by Doctors ................................................................................................ 20
7.10. Market Potential ............................................................................................................... 20
8. CUSTOMER PERCEPTION .................................................................................................... 22
8.1. Factor Analysis ................................................................................................................... 22
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8.2. Perception Map .................................................................................................................. 24
8.2.1. Multi dimensional scaling ........................................................................................... 24
8.2.2. Execution ..................................................................................................................... 24
8.2.3. Implementation ............................................................................................................ 24
9. PRICE SENSITIVITY .............................................................................................................. 26
9.1. Execution of PSM .............................................................................................................. 26
10. DEMAND CURVE................................................................................................................. 30
11. CONCLUSIONS..................................................................................................................... 31
12. RECOMMENDATIONS ........................................................................................................ 32
13. REFERENCES ....................................................................................................................... 32
ANNEXURES ................................................................................................................................. i
ANNEXURE -1:Questionnaire .................................................................................................... i
ANNEXURE-2: Factor Analysis .................................................................................................. iii
ANNEXURE -3:Multi-Dimension Scaling Results ................................................................... ix
ANNEXURE-4: List of Doctors Sampled and Surveyed .......................................................... xi
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LIST OF TABLES
Title of the Table Page number
Table 1: List of Major Players in TT vaccine segment 12
Table 2: Market Potential Calculations 21
Table 3: TT Combo Pack Factor Calculations 21
Table 4: Factor Analysis Results 22
Table 5: Price Sensitivity Meter (PSM) Explanation 27
Table 6: PSM Graph Interpretation Results 28
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LIST OF FIGURES
Title of the Figure Page no.
Figure 1: Profile of Doctors Surveyed (Classification by Profession) 11
Figure 2: Profile of Doctors Surveyed (Classification by Experience) 12
Figure 3: Brand Consciousness Results 14
Figure 4: Price Consciousness Results 14
Figure 5: Combo Pack Awareness Results 15
Figure 6: Combo Packs Economy and Convenience Results 16
Figure 7: Package Preference Results 16
Figure 8: Titre Recall Results 17
Figure 9: Willingness to Shift to Combo Packs Results 18
Figure 10: Brand Recall Results 19
Figure 11: Average Vaccines given by Doctors 20
Figure 12: Mental Map of Doctors 25
Figure 13: Price Sensitivity Meter Results 28
Figure 14: Competitive Pricing Results 29
Figure 15: Demand Curve of TT Single Dose Combo Pack 30
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LIST OF ABBREVIATIONS
DT- Diptheria Tetanus
DTP – Diptheria Tetanus Pertussis
GMP- Good Manufacturing Practices
GP – General Practioner
HBI – Human Biological Institute, Human Vaccination Wing of IIL
IIL – Indian Immunologicals
IPP – Indifference Price Point
OPP – Optimal Price Point
MDS – Multi Dimension Scaling
PMC – Point of Marginal Cheapness
PME – Point of Marginal Expensiveness
PSM – Price Sensitivity Meter
TT – Tetanus Toxoid
UTP – Unique Target Point
WHO – World Health Organisation
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1. INTRODUCTION
Tetanus, also called lockjaw, is a medical condition characterized by a prolonged
contraction of skeletal muscle fibers. The primary symptoms are caused by tetanospasmin, a
neurotoxin produced by the Gram-positive, obligate anaerobic bacterium Clostridium tetani.
Infection generally occurs through wound contamination and often involves a cut or deep
puncture wound. As the infection progresses, muscle spasms develop in the jaw (thus the name
"lockjaw") and elsewhere in the body. Infection can be prevented by proper immunization and by
post-exposure prophylaxis (Source: http://en.wikipedia.org/wiki/Tetanus).
People of all ages can get tetanus. But the disease is particularly common and serious in
new born babies. This is called neonatal tetanus. It is particularly common in rural areas where
most deliveries are at home without adequate sterile procedures. Tetanus is not transmitted from
person to person. A person usually becomes infected with tetanus when dirt enters a wound or
cut. Tetanus germs are likely to grow in deep puncture wounds caused by dirty nails, knives,
tools, wood splinters and animal bites1.
Since lockjaw can happen even with a single small wound, it is imperative to get the
pregnant ladies vaccinated and other individuals vaccinated even he gets a small cut. The vaccine
is Tetanus Toxoid which is available as a single shot or in combination with Diptheria vaccine
alone as (DT) or along with pertussis vaccine also (as DTP). All these vaccines are given as an
injection intramuscularly. WHO also recommends booster tetanus shot every 10 years. Also, if
someone experiences a deep wound, an additional booster dose must be taken if the last dose was
more than five years.
Tetanus Toxoid is available in four forms in the market – Single dose vials (one person
one shot of 0.5 ml), Single dose ampoules (one person one shot of 0.5 ml), Multi dose vials (ten
shots possible of 0.5 ml each) and Single dose combo packs (one single dose vial with syringe
and cotton swab). But major players in TT vaccine segment come up with vaccines packed in
single dose ampoules. This work concentrates only on single dose combo packs.
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2. BACKGROUND OF THE STUDY
The study is focused on TT vaccine single dose combo pack. The market for TT
vaccine segment consists of many players like Serum, Dano, B.E etc. Serum is the market
leader in TT vaccines. Almost all organisations market TT vaccines in single dose ampoules
and multi dose vials. HBI is the only organisation that comes up with TT vaccines in combo
packs and the pack generally contains a single dose vial, syringe, cotton swab and an
information chit. HBI focuses mainly on institutional marketing and hence the organisation is
not so prevalent in trade market. Also, HBI is the only organisation that comes up with TT
vaccines combo pack.
3. RESEARCH PROBLEM
Analyzing TT Market segment, measuring customer perception and price sensitivity for
Tetanus Toxoid single dose combo pack.
4. RESEARCH OBJECTIVES
o To analyze TT combo pack vaccine market in one metro of India.
o To estimate the market size of TT vaccine combo packs in India.
o To establish factors customers look out in TT combo packs.
o To map the customer perception about TT combo packs.
o To understand the price sensitivity for TT combo packs.
o To determine the demand curve for TT combo packs.
5. SCOPE OF THE STUDY Product: Tetanus Toxoid single dose combo pack
Area of Study: The study was conducted in one metro which represents India. Hence,
Bangalore was chosen for the study. Localities covered in Bangalore include Jayanagar, KR
Puram, Shanti Nagar, Rajaji Nagar, Peenya, Yeshwantpur, Malleshwaram, Koramangala,
Indira Nagar, Basveshwara Nagar and Hanumanth Nagar.
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Target Population: The target population is General Practioners, Gynaecologists and Ortho
specialists. Sample size covered is 55. The split up is as follows:
Classification by Profession
12
Major players: As mentioned in the table-1, players in TT vaccine segment are as follows:
S.NO Organisation name Package MRP
1. Serum Institute of India
Ltd
Ampoule Rs. 9.60
2. Dano Ampoule Rs.9.50
3. B.E. Ampoule Rs.10.40
4. Human Biological
Institute
Combo pack and Multi dose 5 ml Pack
Rs.22 and Rs.30
respectively
Source: Market Survey
Table -1: List of Major Players
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6. METHODOLOGY
6.1. Research Design
6.1.1. Descriptive Research
Before leaving for the actual field survey, it was important to understand all
the parameters based on which doctors prescribe a vaccine such as price, availability,
brand name etc. Hence to get a better understanding of TT vaccine market before leaving
for field, a pilot study was conducted in Hyderabad and questionnaires were prepared and
pre-tested on these doctors.
6.1.2. Field Survey
The final study was carried out in the city of Bangalore and localities
covered in Bangalore were already mentioned. No help was taken either from the Regional
In charge officer or Medical officers. Also, I introduced myself as a student from IRMA
and did not reveal my liaison with IIL. A total of 55 doctors were surveyed.
6.2. Sampling Plan
The list of doctors in major localities in the city of Bangalore was obtained
from asklaila.com, sulekha.com and list given by the organisation. As the list given
by the organisation is not clear, help was taken from these websites. The doctors were
randomly selected from the list and surveyed.
6.3. Questionnaire
Questionnaire was developed for TT vaccine combo pack and it has been attached in
the Annexure.
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7. MARKET ANALYSIS
7.1. Brand Consciousness
The doctors were posed with the question whether they prescribe a particular brand of
TT or just „TT‟ in their prescriptions. Only 45% of doctors surveyed were brand conscious.
7.2. Price Consciousness
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When doctors were asked to recall the MRP of TT vaccines they keep or patients
get from pharmacy, 34% of them could say the right MRP and 48% could put the price
superficially.
7.3. Awareness of Combo Packs
Of all the doctors interviewed, only 10% knew that TT vaccines are available in
combo packs and 4% actually use a combo pack. 90% of doctors don‟t even know that TT
vaccines are available in combo packs.
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7.4. Economy and Convenience of Combo packs
The doctors were asked whether they feel combo packs are economical and convenient.
25% of them said its yes and 54% could not take a take a stance.
7.5. Package Preference
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Doctors prefer the single dose TT vaccines to come in ampoules rather than vials.
Reason given by the doctors include convenience in breaking open the neck of the ampoule
and ease with which the vaccine can be completely sucked out of the pack.
7.6. Titre Recall
The recall of Antigen Titre level for TT vaccines is very low among the doctors (9%) and
34% of them could recall superficially.
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7. Willingness to Shift to Combo Packs
Most of the doctors, in fact, could not say whether they will shift to combo packs
if available in the market. The reason being, as already mentioned, the price that will be
charged.
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7.8. Brand recall
Figure -10: Average Vaccines given by Doctors
In this exercise, the doctors were asked to recall the brands of TT vaccines in the local
markets. It can be easily spotted from the graph, Serum is the most recalled brand and it‟s the
most prevalent brand in terms of both usage and availability in the market. Serum (72%) tops the
list followed by Dano (21%), B.E.T.T(21%), HBI (9%), Karnataka Biotech (8%) and GSK (2%).
15% of the doctors surveyed could not recall any brand of TT vaccine.
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7.9. Vaccines Given by Doctors
Figure -
11: Average Vaccines given by Doctors
Of the doctors surveyed, a General Practioner gives 6.2 single doses per day, a
Gynaecologist gives 6.5 single doses per day and an Ortho specialist gives 3.33 single doses per
day.
7.10. Market Potential
Physicians
Gynecologists
Ortho specialists
Remarks
Ratio 0.76 0.18 0.06 Survey profile
Number
6,75,825
1,60,064
53,355
WHO figures 2009
2
Average prescriptions (per day) 6.2 6.5 3.33
Total Prescriptions 41,90,115 10,40,416 1,77,672 Discounting factor
0.6
0.6
0.6
Survey in a metro, so discounting for All
India
Net Prescriptions 25,14,069 6,24,250 1,06,603
TT Market potential (per day) 3.2 million
TT combo pack factor
0.49
Calculation shown in table – 3.
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TT combo pack market potential (per day)
1.6 million
TT Market potential (per annum)
960 million
TT combo pack market potential (per
annum)
470.4 million
Table -2: Market Potential Calculations
Yes No Might
Willingness to Shift 0.16 0.18 0.66
Weight 1 0 0.5
Cumulative Shift Proposition 0.49
Table -3: TT Combo Pack Factor Calculations
Table -3 gives all the market potential calculations in detail. The figure for Physicians is
obtained from WHO website and the figure for Gynaecologists and Ortho specialists were
extrapolated using the ratio from the survey profile. A discounting factor of 0.6 has been taken
since all the data collected were from a metro city. In Table-4, TT combo pack factor is
calculated from the market survey results. A weight of 1 is assigned when doctors are willing to
shift, 0 for not willing to shift and 0.5 for might plan to shift.
Finally, the TT market potential is calculated as 3.2 million doses per day and for TT
combo pack, market potential is found to be 1.6 million doses per day.
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8. CUSTOMER PERCEPTION
8.1. Factor Analysis
Table -4: Factor Analysis Results
The main attributes that doctors look out for TT combo pack is found by Questionnaire
and data were analysed by Factor Analysis in SPSS (version 17). The main factors were found to
be Availability, Convenience, Brand and Price consciousness.
Availability
Availability of TT vaccines is one of the prime factors for prescribing TT vaccines. TT
vaccines will have to get replenished with the doctors in 2 or 3 hours, if they stock, once the
request is made to the stockists. Almost 50% of the doctors stock the vaccines with them in their
cold chain. Doctors generally write „TT‟ vaccine on their prescription and the patient gets it from
the pharmacy shop. Here the main role played, for availability, is by the pharmacists and hence
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the brand used by the doctors depends on the vaccines pharmacists stock. So, to capture
sufficient market for TT combo packs, pharmacists have to be made to stock HBI product.
Hence, promotions undertaken by the organisation towards doctors and stockists and the
stockists reputation and efficiency affect the factor of availability.
Convenience
From the market survey, it‟s found that HBI is the only organisation that offers TT
vaccines in combo packs. Doctors perceive combo packs to be convenient and prefer vaccines
stored in ampoules rather than vials. Doctors feel ampoules are better than vials since they are
easy to break them open and can completely suck out the vaccines from the glass bottle. And
54% of doctors are sceptical about combo packs. Also most of the doctors are not aware of TT
combo packs in the market. When they were informed about its presence in the market, they
were surprised and felt they‟ll be useful. But some doctors prefer not to store combo packs with
them since they require more storage space. When posed with the question of whether they are
ready to shift to combo packs, they said their decision mainly „depends‟ on the price quoted. On
the whole it can be said that, given at a competitive price, the doctors will be ready to shift to
combo packs. Again, the conversion rate will be higher with the doctors who have their own
clinics or work in poly clinics than the doctors who work in hospitals.
Brand & Price consciousness
The third and last factor, doctors look out for in TT vaccine combo packs is the brand and
the price. Doctors while prescribing TT vaccines write either „TT‟ or „Tetvac‟ to patients.
Tetvac refers to the Tetanus Toxoid vaccine manufactured by Serum Institute of India Ltd.,
Pune. This necessarily means that Serum is the only brand that has doctors‟ credibility. This
would have been due to the sincere brand building exercise by Serum. 45% of doctors could
actually recall the brand they give it to patients.
In lines with the brand, doctors also give importance to price. They feel combo packs are
economical only if they are priced lesser than the single dose ampoule and syringe combined, if
bought separately. Serum is the most commonly used brand and it charges Rs.9.50 (MRP) for a
single dose ampoule. Hence the doctors feel that the ideal price of a combo pack should not
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exceed Rs.14 (MRP).But the combo product offered by HBI is priced at Rs. 22 (MRP) which the
doctors feel that it is so costly and money minting. Hence, better brand building exercise and
reducing the cost of production or reducing the profit margin for the product can improve the
sales of HBI combo packs. Medical representatives who are the face of the organisation for the
doctors play an important role in brand building and product promotion.
8.2. Perception Map
A perceptual map is a visual representation of how target customers view the competing
alternatives in a Euclidean space which represents the market.
8.2.1. Multi dimensional scaling
Multidimensional scaling (MDS) is a mathematical technique that helps implement this
analysis of similarity perceptions with minimum information loss.
8.2.2. Execution
Discussions with respect to TT vaccines presented in Single dose vials, Multi dose vials,
Ampoules and Combo packs were initiated with the doctors. The doctors‟ general views on these
packing methods, their pros and cons were discussed. After the discussions, similarity ranking is
given to each pair generated out of these four packing methods. Since there are four packing
methods, it will generate 4C2 combinations which will be six in number. The pairs are given the
similarity ranking starting from 1 (most similar pair) to 6 (most dissimilar pair).
8.2.3. Implementation
Software implementation is done in entered in SPSS (version 17) and Multi-dimensional
PROSCAL algorithm for generating perceptual map is adopted. The map is generated in
common space which represents the mind of doctors.
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Note 1: Dimension 1: Prevalence in Market; Dimension 2: In convenience
Note 2: S.Vial – Single Dose Vials; M.Vials – Multi Dose Vials; Kits – Combo Packs
Figure -12: Mental Map of Doctors (MDS) Dimension 1: Market Prevalence
As can be spotted from the mind map, Ampoules score the most followed by multi
dose vials, single dose vials and combo packs (Kit). Single doses are available in ampoules
and vials. But doctors are acquainted only with single dose ampoules and not single dose vials.
Some of the doctors are not even aware about single dose vials. This is because the major
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players, like Serum and Dano, in TT vaccine segment come up with single dose ampoules
which are prescribed by doctors and stocked by pharmacists.
Doctors relate vials to only multi dose vials and hence it scores after ampoules. HBI is
the only organisation that comes up with TT vaccines in combo packs. Most of the doctors are
not aware of the organisation called HBI that exists in the market. Hence, by obvious
reasoning, combo packs have to score the least in this dimension.
Dimension 2: Inconvenience
Single dose vials are the most inconvenient followed by multi dose vials, ampoules and
combo packs. Vaccines stored in single dose vials are not so prevalent in the market and even
if used by the doctors, they find it inconvenient in sucking out the entire vaccine to the syringe.
Volume wise, single dose vials occupy more storage space when compared to the ampoules.
Multi dose vials are also not preferred much by doctors since if it‟s opened for drug
administration once, problems of storing it without loss of efficacy becomes a problem.
Ampoules are preferred since doctors find it easy to break it open for administration. Ampoules
are the most prevalent in the market for single dose. Doctors find combo packs to be very
convenient since syringes, ampoules and cotton swabs are available in a single space.
9. PRICE SENSITIVITY
Price sensitivity for TT combo packs is done by means of Van Westendorp Price
Sensitivity Meter (PSM). It is based on the logic that there is a range of prices bounded by a
maximum that a consumer is prepared to spend and a minimum below which credibility is in
doubt. The Price Sensitivity Meter (sometimes called the Price Sensitivity Measurement) is
based on respondents‟ answers to four price-related questions. PSM can be used as a tool for
selecting the “optimal price point” for a product. PSM also provides a picture of price
perceptions of consumers in the market.
9.1. Execution of PSM
To execute the PSM, the doctors were asked the four related questions –
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1. At what price would you begin to think product is too expensive to consider?
2. At what price would you begin to think product is so inexpensive that you would
question the quality and not consider it?
3. At what price would you begin to think product is getting expensive, but you still
might consider it?
4. At what price would you think product is a bargain – a great buy for the money?
From responses to these questions, cumulative frequency distributions were derived for
and plotted. In all we get four curves, one curve for each question. The key intersections on the
curves can be tabulated as follows.
Table -5: PSM Results
28
Figure -13: Price Sensitivity Meter Results
From the graphs it is interpreted that
Table -6: PSM Graph Interpretation Results
29
The range of acceptable prices starts from the point of marginal cheapness and ends at the
point of marginal expensiveness. From the table, it can be made out that the range starts at
Rs.12.40 and ends at Rs.17.60. This means that if the TT combo pack can be priced a minimum
of Rs.12.40 and a maximum of Rs. 17.60. But the HBI product is priced at Rs.22 which is 25%
higher than the maximum permissible limit and doctors also find it very expensive. Optimal
price point is the price which gives more sales and if the combo pack is priced at Rs.12.90 sales
can be expected to go up. The indifference price point is Rs.15.20 beyond which the doctors will
start thinking that the product is going costly.
Figure -14: Extension of PSM to find Competitive Prices
The range of competitive prices can be found by plotting Inexpensive, too expensive,
no bargain (inverse of bargain) and not expensive (inverse of expensive) curves. The
intersection of cheap and no bargain curve gives the lower limit for competitive price and the
intersection of too expensive and not expensive curve gives the higher limit for competitive
price. When plotted, the lower limit is found out to be Rs.10.20 and upper limit is at Rs.19.20.
30
If HBI wants its combo pack to capture a good market share in terms of sales quickly, then the
product must be priced at Rs. 10.20 and this is known as “predatory pricing”. Predatory pricing
is keeping the price low so as to wipe out the competitors from the market. At Rs.19.20, the
price can be considered competitive if perfect market conditions exist but for TT combo
packs, the awareness level of doctors itself is very low and this price is irrelevant in the current
context.
10. DEMAND CURVE
The demand curve is an extension of Van Westendorp‟s Price Sensitivity Meter. The
curve is obtained by plotting cumulative frequency distributions in abscissa and Unique Target
Point (UTP) in ordinates. UTP for an individual is calculated by
UTP = (Bargain price + Expensive price)/2
Figure -15: Demand Curve
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As can be seen from the graph, it can be said when price decreases from Rs. 14 to Rs. 12,
% of respondents who would prescribe or probably prescribe the product increases by 34%.
Again, when prices decreases from Rs.18 to Rs.15, it can be said that % of respondents who
would prescribe or probably prescribe increases by 30%.
The demand curve equation can be obtained by regression with UTP as
independent variable and cumulative frequency distribution (% of demand change) as
dependent variable.
The demand equation is found to be
Change in % demand = 140.9 – (5.83 x Price) with R2
= 0.925
11. CONCLUSIONS
For Tetanus Toxoid vaccine, Serum is the market leader and it can be interpreted
that Serum has done extensive brand building exercise. Doctors perceive combo packs to be
convenient but skeptical about economy. The three main factors customers look out for in
TT combo packs are easy availability, convenience, brand and price. But HBI is concerned
only on institutional marketing. So it has to concentrate on the other side of business, also, to
expand its horizon in TT market. Again, the price of Rs.22 is perceived to be very costly to
doctors. The ideal MRP that can be charged Rs.12.90 and the acceptable price can extend
till Rs.17.60. To capture the market fast, a predatory price of Rs. 10.20 can be set backed
up by good brand building and rapport building. It is also found that doctors prefer
vaccines stored in ampoules. Hence, Abhay Tox (product of HBI) can be made available in
TT vaccines stored in ampoules in the combo pack and corrections can be made in their
current pricing.
32
12. RECOMMENDATIONS
HBI has to concentrate on three aspects: (1) Availability (2) Brand and rapport
building and (3) Price correction. The visibility of AbhayTox in markets is low and it has to
be increased. Also the pharmacists must be persuaded to stock the product. This can be done
by good rapport building with the pharmacists and stockists through medical representatives.
As such HBI was associated only with AbhayRab and hence, brand building with respect to
AbhayTox has to be taken up. Medical Representatives are the face of the organisations and
at the field level, their role in brand building and rapport building should not be ignored. The
price of HBI is perceived to be high among the doctors and so the price of the TT
combo pack has to be revised downwards.
13. REFERENCES
1. Training Manual for Medical Officers (courtesy: IIL)
2. http://apps.who.int/globalatlas/dataQuery/reportData.asp?rptType=1
3. www.statisticshell.com/factor.pdf
4. http://crowanscat.sunderland.ac.uk/~harryerw/mirror/CIS302%20Lectures/background/te
chnology/mds_pca_survival/mds.doc
5. http://en.wikipedia.org/wiki/Van_Westendorp's_Price_Sensitivity_Meter
6. http://www.5circles.com/wordpress/blog/2009/05/van-westendorp-pricing-the-price-
sensitivity-meter/mike-pritchard/
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ANNEXURES
ANNEXURE-1:Questionnaire
Doctor‟s Name & Qualifications:
Contact Number:
1. No. of TT prescriptions given per day
2. I‟m particular about the brand of TT vaccine I use
3. I‟m aware of the price of the TT vaccine I prescribe
4. I prefer prescribing TT vaccine based on the
Economic conditions of the patients
5. I feel TT kits are economical and convenient
6. I prefer TT vaccines stored in ampoules
7. I prescribe TT vaccines whose stockists are always on call
8. Medical Representatives‟ regular visit, promotions,
feedback taking tendency influence my choice of TT prescription
9. Can I recall the titre level of the TT vaccine I give?
10. The vaccine I give produces local tissue reaction
11. What are the TT vaccine brands that you know/ recall?
Can‟t Say NO YES
Superficial NO YES
Sometimes NO YES
Can‟t say NO YES
Can‟t Say NO YES
No mind NO YES
Can‟t Say NO YES
Superficial NO YES
Might NO YES
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12. Pairwise comparison of the brands (Single & multi dose vials, Ampoules, Kits)
13. Are you ready to shift to combo packs?
14. At what price would you think product is a bargain – a great buy for the money?
15. At what price would you begin to think product is too expensive to consider?
16. At what price would you begin to think product is so inexpensive that you would question
the quality and not consider it?
17. At what price would you begin to think product is getting expensive, but you still might
consider it?
Can‟t Say NO YES
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ANNEXURE-2: Factor Analysis
Output Created 19-Jul-2010 16:13:56
Comments
Input Active Dataset DataSet1
Filter<none> Weight
<none>
Split File <none>
N of Rows in Working
Data File
iv
Missing Value Definition of Missing
Handling
Cases Used Syntax Resources Processor Time
Elapsed Time
MISSING=EXCLUDE: User-
defined missing values are
treated as missing.
MEAN SUBSTITUTION: For
each variable used, missing
values are replaced with the
variable mean.
FACTOR
/VARIABLES Brand1 Price1
Package1 Package2 Shift1
Service1
/MISSING MEANSUB
/ANALYSIS Brand1 Price1
Package1 Package2 Shift1
Service1
/PRINT INITIAL DET
KMO AIC ROTATION
/PLOT EIGEN
/CRITERIA
FACTORS(3)
ITERATE(25)
/EXTRACTION PC
/CRITERIA ITERATE(25)
/ROTATION VARIMAX
/METHOD=CORRELATION.
00:00:00.26
6
v
Maximum Memory
Required
00:00:00.296
5544 (5.414K)
bytes
Correlation Matrixa
a. Determinant = .377
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
Bartlett's Test of Approx. Chi-Square
Sphericity df
Sig.
.523
49.931
15
.000
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Communalities
Initial
Brand1
Price1
Package1
Package2
Shift1
Service1
1.000
1.000
1.000
1.000
1.000
1.000
Extraction Method: Principal Component Analysis.
Total Variance Explained
Component Initial Eigenvalues Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1
2
3
4
5 6
1.684 28.073 28.073 1.510 25.173 25.173
1.468 24.468 52.541 1.495 24.909 50.081
1.297
21.625
74.166
1.445
24.085
74.166
.713
11.882
86.048
.521
8.678
94.726
.316
5.274
100.000
Extraction Method: Principal Component Analysis.
vii
Component Matrixa
a. 3 components extracted.
viii
Rotated Component Matrixa
Component
1 2 3
Brand1
Price1
Package1
Package2
Shift1
Service1
.173
-.502
-.141
.313
-.574
.835
.028
-.041
-.800
.724
.496
-.066
.831
.695
-.114
.316
-.276
-.050
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 9 iterations.
Component Transformation Matrix
Component 1 2 3
1
2
3
-.732 -.384 .563
-.181 .906 .383
.657 -.179 .732
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Component Transformation Matrix
Component 1 2 3
1
2 3
-.732 -.384 .563
-.181 .906 .383
.657 -.179 .732
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
ANNEXURE -3:Multi-Dimension Scaling Results
Proscal Notes
Case Processing Summary
Cases
Source
Objects
Proximities Total Proximities
Missing Proximities
Active Proximitiesb
216
54
4
324a
6
318
a. Sum over sources of all strictly upper-triangular proximities.
b. Active proximities include all non-missing proximities.
x
Final Coordinates
Dimension
1 2
S.Vial
Ampoule
M.Vial
Kit
-.514
1.618
-.048
-1.057
1.615
-.543
-.025
-1.047
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Distances
S.Vial Ampoule M.Vial Kit
S.Vial
Ampoule
M.Vial
Kit
.000
3.033
1.705
2.717
.000
1.744
2.722
.000
1.436
.000
Annexure-4: List of Doctors Sampled and Surveyed
Name
Profile
Yrs of
experience
Contact no.
Locality
Dr.Mohan GP 9 9845762145 Hanumanth Nagar
Dr.Prakash GP 14 9900263603 Malleshwaram
Dr.V.Prabakar GP 25 28360292/9448050292 Peenya 2nd stage
Dr.Shridhar GP 30 9845192834 Basaweshwara nagar
Dr.Vittal GP 2 9739548896 Peenya 2nd stage
Dr.Kalavathi
Dr.Indhu Mohan GP 8 Basaweshwara nagar
Dr.Vijayalatchumi GP 1
0
42516699 Koramangala
Dr.Ashok GP 25-
27
23224052 Koramangala
Dr.Ramesh ORT >2
5
23376446 Yeshwantpur
Dr.Ravi ORT 1
0
9480701778 Peenya 2nd stage
Dr.SheejaKrishna RMP 1
3
8123543236 Peenya 2nd stage
Dr.Viswanath GP 8 23449325 Malleshwaram
Dr.Govindraj GP 1
0
23601102 Mathiker
e Dr.Vijayalakshmi GYN 2
5
9980544255 Basaweshwara nagar
Dr.Shreen GP >1
0
64514516 Jayanagar 2nd block
Dr.Dilip Kumar GP 3
0
9341223709 Malleshwaram
Dr.Padma A. GYN 3
5
23464580 Malleshwaram
Dr.Nafees GP 2
2
Jayanagar 2nd block
Dr.Narendhran GP 15-
16
Jayanagar 2nd block
Dr.Raju GP 3
0
9845666099 Rajaji nagar
Dr.Padmakshi GYN 1
5
9901926919 Indira nagar
Dr.Sashi kumar GP 1
2
Rajaji nagar
Dr.Jeyamma GP 2
3
Jaya nagar 4th block GH
Dr.Shirdi Tekur GP 3
3
22453655/944807979
0
Jaya nagar 3rd block
Dr.Dinesh GP 2
8
9845133191 Jayanagar 4th block
Dr.Raju GP 2
3
Jayanagar 6th block
Medicur
GP
20
23376446
Kalavathi hospitals,Yeshwantpur
Dr.Kumar GP 18 Hanumanth Nagar
Dr.Masood GP 30 22243908 Shanti nagar
Dr.Jothi GP 6 25615682 K.R.puram
Dr.Pratap Kumar ORT 9 23372856 Yeshwantpur
Dr.Dheena ganesh GYN >12 Shanti nagar
Dr.Paras GP 13 2237183 Shanti nagar
Dr.Prabhakar
GP
7
9900261534
Shreyas hospitals,Peenya 2nd stage
Dr.D.K.Clinic GP 17-18 Hanumanth Nagar
Dr.Jeeyamma Toravi
GP
12
Basaweshwara nagar
Dr.Radhakrishnan GP 9 9844454253 Malleshwaram
xii
Dr.Vijaykumar GP 25 23422913 Rajaji nagar
Dr.Kishore GP 5 Yeshwantpur
Dr.Prakash GP 10 23362414 Peenya 2nd stage
Dr.Padma GYN >30 23597770 Rajaji nagar
Dr.Vimala Balal GP 8 55316758 Basaweshwara nagar
Dr.Mohan Kumar GP 12 Peenya 2nd stage
Dr.Indhu Mohan GP 8 Basaweshwara nagar
Dr.Vijayalatchumi GP 10 42516699 Koramangala
Dr.Ashok GP 25-27 23224052 Koramangala
Dr.Ramesh ORT >25 23376446 Yeshwantpur
Dr.Ravi ORT 10 9480701778 Peenya 2nd stage
Dr.SheejaKrishna RMP 13 8123543236 Peenya 2nd stage
Dr.Viswanath GP 8 23449325 Malleshwaram
Dr.Govindraj GP 10 23601102 Mathike
re Dr.Vijayalakshmi GYN 25 9980544255 Basaweshwara nagar
Dr.Shreen GP >10 64514516 Jayanagar 2nd block
Dr.Dilip Kumar GP 30 9341223709 Malleshwaram
Dr.Padma A. GYN 35 23464580 Malleshwaram
Dr.Nafees GP 22 Jayanagar 2nd block
Dr.Narendhran GP 15-16 Jayanagar 2nd block
Dr.Raju GP 30 9845666099 Rajaji nagar
Dr.Padmakshi GYN 15 9901926919 Indira nagar
Dr.Sashi kumar GP 12 Rajaji nagar
Dr.Jeyamma GP 23 Jaya nagar 4th block GH
Dr.Shirdi Tekur GP 33 22453655/9448079790 Jaya nagar 3rd block
Dr.Dinesh GP 28 9845133191 Jayanagar 4th block
Dr.Raju GP 23 Jayanagar 6th block
Dr.Rajalakshmi
Rao
GYN
26
9844125142
Medicure
hospitals,Jayanagar
6th block Dr.Ramesh Raheja
GP
15-17
41137940
Malleshwaram
Dr.Seema
GYN
3
9880318066
Medicure
hospitals,Jayanagar
6th block Dr.Ananda Rao GP 17 K.R.puram
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Dr.K.Y.Prabhakar GP 12 23365841 Malleshwaram
Dr.V.C.Kulkarni GP 28 Rajaji nagar
Dr.Leela GYN 17 23420908 Rajaji nagar
Dr.Bhanuprakash GP 21 2470594 Hanumanth Nagar
Dr.D.K.Prasad GP 28 26612717 Hanumanth Nagar
Dr.Gayatri GP 5 3463452 Malleshwaram
Dr.Mulumathi GP 25 23345226 Malleshwaram
Note: GP – General Practioner; GYN – Gynaecologist; ORT – Ortho Specialist
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