N.R.Institute of Business Management Page 1 RESEARCH TOPIC An In-depth-study of OTC medicine segment of Indian Pharmaceutical Industry with special emphasis on consumer behavior RESEARCH OBJECTIVES Macro objective To study the Indian Pharmaceutical Industry as a whole Micro objectives To understand the consumer’s attitude towards OTC products of the pharmaceutical industry To understand the healthcare products’ contribution and also its effects on pharmaceutical market To determine the extent to which the respondents prefer self-medication instead of going to the doctor for common health problems To find out the criteria on which the consumers rely for making their purchase decision regarding OTC products To find out the extent to which consumers read the labeling information before making a purchase To find out the extent to which the respondents perceive OTC products as safe to use To understand the influence of advertising on consumer behavior towards them To find out the most preferred brand in each OTC product category To know the frequency of purchase of OTC products by the consumers To know the preferred medium of communication for advertisement of OTC products RESEARCH METHODOLOGY Research Design: Target Population: Population of the research is the consumers who are well aware of the OTC products and who are above 18 years of age
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N.R.Institute of Business Management Page 1
RESEARCH TOPIC An In-depth-study of OTC medicine segment of Indian Pharmaceutical Industry with special
emphasis on consumer behavior
RESEARCH OBJECTIVES Macro objective
To study the Indian Pharmaceutical Industry as a whole
Micro objectives To understand the consumer’s attitude towards OTC products of the pharmaceutical
industry
To understand the healthcare products’ contribution and also its effects on pharmaceutical
market
To determine the extent to which the respondents prefer self-medication instead of going
to the doctor for common health problems
To find out the criteria on which the consumers rely for making their purchase decision
regarding OTC products
To find out the extent to which consumers read the labeling information before making a
purchase
To find out the extent to which the respondents perceive OTC products as safe to use
To understand the influence of advertising on consumer behavior towards them
To find out the most preferred brand in each OTC product category
To know the frequency of purchase of OTC products by the consumers
To know the preferred medium of communication for advertisement of OTC products
RESEARCH METHODOLOGY
Research Design: Target Population: Population of the research is the consumers who are well aware of
the OTC products and who are above 18 years of age
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Research Design : Descriptive Research
Sampling unit: Same as the sample element
Sampling Technique: Convenience sampling
Sample Size : 300 sampling units selected from the Target population
Contact Method: Researcher have contacted sampling units personally and with the help
of one to one interaction researcher have conducted survey.
Extent: The location considered by the researcher is Ahmedabad city.
Data Sources: Primary Source:
Questionnaire
Secondary Sources:
Books like Marketing Research by Malhotra
Journals
Websites
Reports
LIMITATIONS OF THE STUDY
The main limitation of the study is the time span available with researcher for conducting
the research is 6-8 months.
Another limitation is that the scope of the researcher’s study is Ahmedabad city. So the
population considered may not be the actual representative of the population of the
nation.
The information given by the respondents can be biased.
In order to limit the scope of the project only 5 categories of OTC products segment were
included based on frequency of usage, in the question that ask for highly consumed
brand.
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INTRODUCTION:
The pharmaceutical industry is a knowledge driven industry and is heavily dependent on
R&D for new products and its growth. However, Basic Research (discovering new molecules) is
a time consuming and expensive process and is thus, dominated by large global multinationals.
In the Global Pharmaceutical Market, Western Markets are the largest and fastest
growing due to introduction of newer molecules at high prices. A well-established
reimbursement and insurance system implies that per capita drug expenditure is abnormally high
in Western Countries as compared to the developing nations.
The Indian Pharmaceutical Industry is highly fragmented, but has grown rapidly due to
the friendly patent protection, low cost manufacturing structure, intense competition, high
volumes and low prices. Exports have been rising at around 30% CAGR over last five years.
The Drug Pricing Control Order (DPCO) has severely restricted profitability and hence
innovation. However, the government has been relaxing controls in a slow but progressive
manner. The span of control of DPCO has come down from 90% in 1980s to 50% in 1995 and is
likely to be further reduced as per the latest proposed changes.
In the domestic market, old and mature categories like anti-infective, vitamins, analgesics
are degrowing or stagnating while new lifestyle categories like cardiovascular, CNS, anti
diabetic are growing at double-digit rates. The growth of a company in the domestic market is
thus critically dependent on its therapeutic presence.
DEFINITION OF PHARMACEUTICALS:
Pharmaceuticals are substances known as medicines, used in preventing and curing
illness and disease. Usage of pharmaceutical is governed by underlying science of illness and
disease. The branches of medical science are shown in the following figure.
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Ancient civilization allowed India to develop various kinds of medical and
pharmaceutical systems. In addition to the allopathic system, which is prevalent in the United
States, Japan and Europe, the following types of medical and pharmaceutical systems are used by
the Indian people:
Medical Science
Allopathy: It is known as the modern medicine and world over the pharmaceutical
industry is focused upon it.
Ayurveda: Ayurveda translates as the “science of life”. It encompasses fundamentals
and philosophies about the world and life, diseases and medicines. The knowledge of
Ayurveda is compiled in Charak Samhita and Sushruta Samhita. The curative treatment
lies in drugs, diet and general mode of life.
Siddha: The Siddha system is one of the oldest Indian systems of medicine. Siddha
means “achievement”. Siddhas were saintly figures who achieved healing through the
practice of yoga. The Siddha system does not look merely at a disease but takes into
(Raw medicines can’t be used for medicinal purpose)
FORMULATION (Packed with proper instruction
regarding price, expiry date, storage condition and dosage)
FILLER SUBSTANCE PASSIVE INGREDIENT
(To make bulk drugs
PATIENTS
(Either directly or under prescription of the doctors)
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BULK DRUGS AND FORMULATION: In basic form, pharmaceutical are called bulk drugs. They are derived from intermediate raw
material, namely
Plant derivatives
Animal derivatives
Synthetic chemicals
Bulk drugs in their raw form cannot be used as medicine and they have to be converted in to
form in which human can use them as medicine. This type of final dosage form is known as
formulations. Formulations can be classified into two types namely,
Ethical products: These types of formulations are available only under medical
prescription to prevent misuse. Doctors, to cure a disease in the patient primarily
prescribe ethical formulations. Generally, for ethical products direct advertisements to
users are prohibited.
Over The Counter: These types of formulation known as OTC can be purchased by
users directly, for example pain balms, health tonics etc. For OTC product, direct
advertisements to user can be used to promote product under certain conditions.
Formulations can be categorized as per the route of administration to patients, namely,
Oral: They are taken internally by patients, for example tablets, syrup, capsules, powders
Topical: They are applied on skin, for example creams, ointments, liquids, aerosol etc.
Parenterals: They are injected in an intravenous and intramuscularly fashion.
Others: It includes eye drops, surgical dressings etc.
RESEARCH & DEVELOPMENT: Pharmaceutical industry is driven by a need to conquer disease. New diseases emerge as
humans find the solution to cure old diseases. New medicines are developed to treat new diseases
or existing medicine are reformulated to improve upon the treatment of existing diseases. That is
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why R&D of drugs is a key to success in the pharmaceutical industry. Four kind of research are
conducted in the pharmaceutical industry namely,
1. Fundamental or Basic Research: This involves discovering new molecules from
scratch. No Indian company does Basic Research, simply because it is very expensive.
Indian drug companies do not make the kind of profit required for this kind of research.
In the West, hi-tech equipments screen, can compound a cost up to $3 billion.
2. Process research or Reverse Engineering: This involves a copy of existing molecule by
manufacturing it with different process. Indian patent law, at present, covers process
patents, not product patents. Indian companies are very effective and efficient in reverse
engineering. However, a new paten law will obviously, not permit reverse engineering.
3. Analogue or Discovery Research: Companies modify an existing molecule (or a new
one that has not yet commercialized), after accessing international patent databases, to
arrive at a new molecule. Some of the bigger Indian companies like Dr. Reddy, Ranbaxy,
Cadila, and Torrent etc. are conducting discovery research or plan to do so.
4. Genetic research: It aims at establishing the link between genes and diseases and one
day determine the best drugs for individuals based on their makeup. World leaders of the
pharmaceutical industry have started devoting resources to this type of research called
“Genomic”. No Indian company does this kind of research, but several government or
academic institutions like National Institute of Immunology, New Delhi and Center for
Microbiology, Hyderabad have begun work in this area.
PATENTS - A PROJECTION:
Discovery of a new drug or modifications on existing drug requires intensive R&D efforts
and companies have to spent huge amount on R&D to find new drugs or modify existing one. If
a protection is not provided to innovator of drugs no one would prefer to spend on R&D and it
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will hinder to growth of pharmaceutical industry and of human being. To protect the interest of
an innovators patent is provided to ensure commercial gains on their R&D investment. Patents
are a vital aspect for the global pharmaceutical industry. Two kind of patent protection is granted
to the innovators by different countries, namely
Product patent: It provides an exclusive manufacturing and licensing rights of product,
to innovator of that product for a stipulated time period. So, if company A discovers drug
Z then no other manufacture can produce drug Z without consent of company A. At
present only the developed nations endorse product patent.
Process patent: It provides an exclusive manufacturing and licensing rights of process to
manufacture a product, to innovator of that product for a stipulated time period. So, if
company A discovers drug Z by process P then no other manufacture can produce drug Z
by process P without consent of company A. But other manufactures can produce drug Z
by any other process then P. Most under developed nations endorse process patent.
Patent is granted for stipulated time period. Once this time period gets over a drug
becomes off patent or generic and any one can manufacture that drug. Based on this criteria
drugs can be classified as:
Under patent
Generic or off patent
THERAPEUTIC MARKET SEGMENTATION:
Commencing with repackaging and preparation of formulations from imported bulk
drugs, the Indian industry has moved on to become a net foreign exchange earner, and has been
able to underline its presence in the global pharmaceutical arena as one of the top 35 drug
producers worldwide. Currently, there are more than 2,400 registered pharmaceutical producers
in India. There are 24,000 licensed pharmaceutical companies. Of the 465 bulk drugs used in
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India, approximately 425 are manufactured here. India has more drug-manufacturing facilities
that have been approved by the U.S. Food and Drug Administration than any country other than
the US. Indian generics companies supply 84% of the AIDS drugs that Doctors without Borders
uses to treat 60,000 patients in more than 30 countries. However total pharmaceutical market is
as follows:
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INTRODUCTION:
The pharmaceutical industry is a very unique and spectacular industry, with an
impressive evolution along the 20th and the beginning of the 21st centuries, as well as facing a
challenging future. The situation in the industry at the global level has spectacularly changed in
the past two decades, leading to new strategies and new portfolios, especially for the major
pharmaceutical companies worldwide. The current pharmaceutical industry characterizes as a
mature and stable industry that is constantly affected by mergers and acquisitions, as well as by
new scientific discoveries. Therefore, it becomes very essential to understand the global scenario
and the current trends in the pharmaceutical industry for the companies to operate in a single
market and serve the mankind across the globe. In this chapter an overview of the global
pharmaceutical industry has been given. Starting from the origins and evolution of the global
pharmaceutical industry to the current market structure and the industry trends are being
discussed. Also the challenges that are faced by the global pharmaceutical industry are
mentioned. Finally the future outlook is being provided for the current year 2009 based on the
predictions of IMS Global Pharmaceutical and Therapy Forecast 2009.
The pharmaceutical industry is a knowledge driven industry and is heavily dependent on
R&D for new products and its growth. However, Basic Research (discovering new molecules) is
a time consuming and expensive process and is thus, dominated by large global multinationals.
In the Global Pharmaceutical Market, Western Markets are the largest and fastest
growing due to introduction of newer molecules at high prices. A well-established
reimbursement and insurance system implies that per capita drug expenditure is abnormally high
in Western Countries as compared to the developing nations.
ORIGINS AND EVOLUTION: The modern pharmaceutical industry is a highly competitive non-assembled1 global
industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth
century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have
antiseptic properties. A host of modern pharmaceutical companies all started out as Rhinebased
family dyestuff and chemical companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the
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product of a merger between Ciba and Geigy), and Novartis etc. Most are still going strong
today. Over time many of these chemical companies moved into the production of
pharmaceuticals and other synthetic chemicals and they gradually evolved into global players.
The introduction and success of penicillin in the early forties and the relative success of other
innovative drugs, institutionalised research and development (R&D) efforts in the industry. The
industry expanded rapidly in the sixties, benefiting from new discoveries and a lax regulatory
environment. During this period healthcare spending boomed as global economies prospered.
The industry witnessed major developments in the seventies with the introductionof tighter
regulatory controls, especially with the introduction of regulations governing the manufacture of
‘generics’. The new regulations revoked permanent patents and established fixed periods on
patent protection for branded products, a result of which the market for ‘branded generics
emerged.
Branded companies: Branded companies are the innovative companies that carry out the
Research and Development (R&D) of new drugs (or contract this process). Initially, their
products are protected by patents. The clinical test data, used for the approval of the drugs, is
usually protected as well.
Generic companies: Generic companies produce drugs that they have not developed
themselves. Normally these drugs are not protected by patents anymore. However, many
branded companies have divisions or subsidiaries that produce generics as well.
With regard to the products of these companies, three categories of drugs are commonly
distinguished.
Prescription drugs These have to be prescribed or administered by healthcare
professionals.
Over the counter (OTC) drugs also called self-medication drugs. These can be
purchased without a prescription.
Vaccines These are usually regarded as a separate category next to pharmaceuticals. In
contrast to pharmaceuticals, vaccines are not based on chemical compounds but on live
bacteria and viruses. The production process of vaccines is therefore quite different and far
more complicated.
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GLOBAL SCENARIO:
The global pharmaceutical market can be classified into two categories: regulated and
unregulated/semi regulated. The regulated markets are governed by government regulations like
intellectual property protection, including product patent recognition. As a result, they have
greater stability in both volumes and prices like the United States. The unregulated/semi-
regulated markets have lower entry barriers in terms of regulatory requirements and hence, they
are highly competitive. The global pharmaceutical companies till 2010 will be closely regulated
by emerging issues like patent safety, side effects, adverse action reporting, strengthening
harmonization and regulations and stronger clinical evidence. Global pharmaceutical market has
increased its focus on novel drugs, good delivery system, and new chemical entities. The other
factor which is driving the growth of global pharmaceutical market is speeding up regulation in
bio-generic segment. Moreover there will be shift in growth from top ten markets to emerging
economies. The global pharmaceutical market will change its shape from primary care driven to
specialty care driven that is oncology and biotech. The global pharmaceutical industry will take a
shape of virtually integrated pharmaceutical company. There is a widening gap between mature
market performance and emerging market performance, which will require many pharmaceutical
companies all over the globe to make changes throughout their operations from shifting their
sales and market, revising there strategies, changing there business models to fuel there growth.
For the global pharmaceutical industry, 2008 will be a year of softening growth and a
widening gap in performance between the increasingly generalized and cost-constrained mature
markets, as well as the burgeoning ‘pharmerging’ sectors where demand is growing and
economies and access to healthcare are expanding at record levels. Marking an important
inflection point for the industry, for the first time the world’s seven key markets (US, Japan, UK,
Germany, France, Spain and Italy) will drive less than half of the industry’s growth in 2008,
while the pharmerging markets will contribute nearly a quarter of growth worldwide (Figure 1).
Further divergence will be apparent between primary care-driven and specialist-driven therapy
areas, and between therapy classes with major unmet needs and innovations, and those
dominated by generics.
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PACE OF THE MARKET GROWTH:
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INDUSTRY TRENDS:
Structural changes: The pharmaceutical industry is currently undergoing a period of
very significant transformation. The majority of “Big Pharma” companies are generating
high returns which provide them with excess cash for further rapid growth – whether
organic, or through mergers and acquisitions. In pharmaceutical industry size of the company
on its own is a significant advantage. Besides economies of scale in manufacturing, clinical
trials and marketing, bigger companies can get a competitive advantage by allowing
investments in more research and development (R&D) projects which in turn diversify their
future drugs portfolio and make them much more stable in the long term. As the result, top-
companies in the industry were active participants of mergers and acquisitions (M&A). Another form of structural change in the industry was establishing of new strategic alliances and joint ventures. So far as the research and development process for each drug take many years and requires significant investments, and the outcome of these investments of time and financial resources remains unclear until the final approval of the drug, “Big Pharma” companies are constantly looking for synergies that they can get from cooperation with their competitors. For example, cooperation of Sanofi-Aventis and Bristol-Myers Squibb resulted in production of Plavix, which is currently one of the top-selling products for each of these companies. Yet another trend is selling off low-profitability or non-core businesses. “Big
Pharma” companies in order to maintain strong sales growth and meet profitability
expectations of their shareholders actively engage in these activities. For example, in 2003
Merck sold its low-profitability Medico Health Solutions that helped to increase its
profitability margin. Massive sales of non-pharmaceutical businesses by Takeda also were
compatible with its strategy to concentrate its financial resources on its core pharmaceutical
business.
Major factors of future growth: The pharmaceutical industry showed high sales
growth rates in the recent past, and a number of factors suggest that this trend will continue
in the future. Some of these factors are:
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1) According to various studies, a significant portion of elderly population in the United
States and other countries does not receive proper treatment. For example, only about one
third of the U.S. population who requires medical therapy for high cholesterol is actually
receiving adequate treatment. As it is expected, the Medicare Prescription Drug
Improvement and Modernization Act starting from the beginning of 2006 will increase
access of senior citizens to the prescription drug coverage, thus increasing pharmaceutical
sales.
2) Although developing countries at the moment have a small portion of world
pharmaceutical sales, these countries also have a significant potential for the
pharmaceutical industry in the future. Fast growing economies in Asia, South America
and Central & Eastern Europe suggest an increasing solvency of population and make
these markets more and more attractive for “Big Pharma” companies. Further reforms of
legislation systems in the countries of these regions, especially regarding patent
protection issues, will inevitably result in growing pharmaceutical sales.
KEY CHALLENGES:
The main challenges for drug companies come from four areas. First, they must deal with
competition from within and without. Second, they must manage within a world of price controls
that dictate a wide range of prices from place to place. Third, companies must be constantly on
guard for patent violations and seek legal protection in new and growing global markets. Finally,
they must manage their product pipelines so that patent expirations do not leave them without
protection for their investment.
➢ Competition
The pharmaceutical industry currently represents a highly competitive environment. One can
distinguish three layers of competition for “Big Pharma” companies. First, obviously, “Big
Pharma” companies compete among themselves. Although not all leading pharmaceutical
companies cover all segments of pharmaceutical market, almost all of them are active in
R&D and production of drugs in the segments with the highest potential – such as treatment
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of infectious, cardiovascular, psychiatric or oncology diseases. Secondly, “Big Pharma”
companies experience significant profit losses due to competition from the generic drug
manufacturers. Opposite to the research-oriented pharmaceutical companies, which invest
significant financial resources and time to develop new medicines, generic drug
manufacturers spend minimum resources on R&D, and start manufacturing already
developed by other companies drugs after their patent expiration. Because generic drug
manufacturers do not have to recoup high R&D costs, prices of their products are usually
much lower then those of major pharmaceutical companies; as the result, after patent
Dulcolax, Enew, Sugar Free, Diane 35, Mifigest among others. Following are the products of
Zydus Cadila:
a) Functional Health Foods and Dietary Products
In the health foods segment, the Consumer Division is a pioneer in offering healthier
dietary options to the consumers with the Sugar Free and Nutralite range of products.
• Sugar Free Gold is the largest selling aspartame based low calorie sugar
substitute in India with market share of over 75%.
• Sugar Free Natura is the latest new generation zero calorie sugar substitute
made from sucralose - a sugar derivative.
• Sugar Free D’lite is a low calorie healthy drink fortified with electrolytes,
vitamins and just 10 calories. It is available as powder soft drink as well as in a
ready to drink form.
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• Nutralite is a healthy cholesterol-free butter substitute (table margarine), and is
the largest selling table margarine in India.
b) Speciality Skincare Products
In the skincare segment, the EverYuth brand enjoys the distinction of being a 'skincare
brand from a healthcare company'. Enriched with the power of natural ingredients, EverYuth has
a strong presence in advanced skincare segments like soap-free face washes, face masks, skin
exfoliators amongst others.
The EverYuth range also includes speciality dermatologically tested skincare solutions
for sun protection, pigmentation, acne and aging under the recently launched EverYuth Derma
Care range.
5) Novartis:
Novartis was created in 1996 through the merger of Ciba-Geigy and Sandoz. Novartis offers a
wide range of healthcare products through our Pharmaceuticals, Vaccines and Diagnostics,
Sandoz and Consumer Health Divisions. Nearly 100 000 people are working at Novartis to help
save lives and improve quality of life. Corporate citizenship at Novartis rests on four pillars:
patients, business conduct, people and communities, and environmental care. Operate in 140
countries, with our global headquarters in Basel, Switzerland. Novartis is one of the industry’s
biggest investors in research. Over-the-Counter (OTC) is a world leader in the research,
development, production and marketing of self-medication products that do not require
prescriptions. Our products are designed for the in-home treatment and prevention of medical
conditions and ailments as well as the enhancement of overall health and well-being. The main
OTC product categories are analgesics, cough, cold, allergy, gastrointestinal, skin care and
smoking-cessation treatments, as well as mineral supplements. Following are the products of the
Novartis:
• Benefiber powder
• Benefiber Caplets
• Benefiber plus calcium
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• Excedrin®
• Extra Strength Excedrin®
• Excedrin® Tension Headache
• Excedrin® Migraine
• Excedrin® PM
• Gas-X® Products
• Children's Gas-X® Tongue Twisters™ Thin Strips™
• Baby Gas-X® Infant Drops
• Gas-X® Thin Strips™
• Softgels
• Chewables
• Bufferin
• Aspirin
• Calcium
• Sandoz
• Mineral supplement
• Excedrin
• Ex-Lax
• Overnight laxative
• Keri
• Lamisil AT
• Athlete’s foot and jock itch
6) Paras pharmaceuticals Pvt. Ltd.:
It is this incessant desire on part of people that has inspired Paras to dedicate itself to
issues that might appear to be trivial, but in reality, are quite significant in life. The range of such
issues is extensive. To identify them, one simply needs to be sensitive towards such problems.
And make the right solutions available. At Paras, the process behind finding every such solution
is backed by extensive consumer research, often carried out in an obsessive manner. While
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identifying these real life problems and related behavioral patterns, the health aspects are also put
on high priority, so that the end result is not just a cosmetic one, but a truly healthy solution.
The result of these efforts is that today, Paras has a diverse range of innovative products,
many of which have created totally new categories by themselves. Not to mention, they have
been enormously successful. So much so, that today, Paras products have not only found a place
on the shelves of most households, but in the hearts of people as well. In short, the philosophy at
Paras, of providing solutions that care about you, is quite visible in its many works of art - the
many brands that truly enhance life.
New categories. New promises. What makes the customer believe in them all?
It’s the faith that comes with time, with a positive experience of using a product/service
offered by the company. By realizing that the promises were indeed fulfilled. But winning this
faith isn't easy. It comes after plenty of research and consumer study done on a large scale.
In case of Paras, the entire process of advanced research hinges on one focal point to
provide care, and not just cure. To serve people with value added products and not just cosmetic
makeovers. And to create new product categories. All this has made Paras a reliable and
favoured name amongst the masses.
For Paras, this long journey of many years has indeed been a glorious one. And with
more and more dreams taking shape at Paras, its glorious streak will continue to brighten up
many more lives. Following are the products of the Paras Pharmaceuticals Pvt.Ltd.:
• Afterbath FreshnessCream
• BoroSoft
• Krack
• D’cold
• D'Cold Cough Syrup
• ItchGuard
• Moov
• Moov spray
• RingGuard
• Stopache
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7) Dabur India Limited:
Dabur India Limited is the fourth largest FMCG Company in India with interests in
Health care, Personal care and Food products. Building on a legacy of quality and experience for
over 100 years, today Dabur has a turnover of Rs.2233.72 crore with powerful brands like Dabur
Amla,Dabur,Chyawanprash,,Vatika, Hajmola & Real. Dabur India Limited is a leader in
manufacturing and marketing herbal, nature-based products. Today Dabur’s products are
available for people in more than 50 countries across the world, helping them move towards a
healthy, natural and holistic lifestyle. Our products are available in the markets of the Middle
East, South-East Asia, Africa, the European Union and America. Following are the products of
Dabur India Limited:
• Dabur Glucose-D
• Dabur Hajmola table
• Dabur Hingoli
• Pudin Hara
• Pudin Hara-G
• Dabur Shankha Pushpi
• Shilajit Gold
• Dabur Sarbyna Strong
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Survey Analysis: Demographic Profile:
Gender
EXHIBIT I
Frequency Percent Male 148 49
Female 152 51
FIGURE I
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Age
EXHIBIT II
Frequency Percent 19 years - 30 years 210 70 31 years - 40 years 34 11 41 years - 50 years 22 7 51 years - 60 years 26 9 Above 60 Years 8 3 Total 300 100
1) What do you do when you suffer from a minor disease?
EXHIBIT 1
Frequency Percent
Consult to the doctor 54 18 Consult a friend 12 4 Consult to a family member 52 17 Take a medicine on your own 118 40 Take a medicine which the storekeeper suggests 34 11 Do nothing 30 10 Total 300 100
FIGURE 1.1
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FIGURE 1.2
Interpretation:
The above column graph indicates that 118 respondents take medicine on their own when
they suffer from minor disease while the number of respondents that consult to the doctor and the
number of respondents that take advice from family members are almost equal i.e 54 & 52
respondents respectively. 34 respondents take a medicine which the storekeeper suggests and 30
respondents do nothing when they suffer from minor disease. The option being least preferred by
the respondents when they suffer from minor disease is consulting a friend i.e 12 respondents.
The above pie chart implies that 40% respondents take medicine on their own which is the
most preffered option . while the number of respondents that consult to a doctor or a family
member when they suffer from minor disease is almost half the number of respondents that take
medicine on their own. On the other hand only 4% of the respondents consult to a friend.
Thus, from the above analysis one can easily conclude that people are well aware of the OTC
medicines and for the minor diseases they don’t prefer anybody’s advice.
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2) Have you ever used any of the pharma OTC products?
EXHIBIT 2
Frequency Percent
Yes 266 89
No 34 11
Total 300 100
FIGURE 2.1
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FIGURE 2.2
Interpretation:
According to the column chart given above, 266 out of 300 respondents have used any of the
Pharma OTC products atleast once in their life which is quite a significant number.
The pie chart also draws attention to the same thing that 89% of respondents have used
Pharma OTC products while 11% of respondents have never used any of the pharma OTC
products.
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3) Which place you generally prefer to purchase pharma OTC products? EXHIBIT 3
Frequency Percent
Neighborhood chemist store 215 81 Drug retail chain 30 11 Supermarket/mall 14 5 Grocery stores 7 3 Total 266 100 Missing 34 Grand Total 300
FIGURE 3.1
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FIGURE 3.2
Interpretation:
Many of the healthcare products are also available at grocery store and supermarket/mall but
still from the above graphs it can be said that majority of the respondents ie 215 respondent out
of 300 prefer to purchase from Neighborhood chemist store which accounts to about 81% of total
respondents while about only 7 out of 300 respondent which accounts to 3% of total respondents
prefer Grocery stores for purchasing OTC products. Moreover, respondents preferring Drug
retail chain and supermarket/mall are 11% and 5% respectively.
The above analysis indicates that people still prefer conventional chemist stores to purchase
medicines. However, with Supermarket/mall growth this percentage will fall down as the share
of supermarket will grow. At the same time, Drug retail chains like Apollo pharmacy are gaining
preference quickly.
N.R.Institute of Business Management Page 82
4) What is your preferred time interval for buying OTC products?
EXHIBIT 4
Frequency Percent As and when needed 231 87 Every week 14 5 Every fortnight 6 2 Every month 15 6 Total 266 100 Missing 34 Grand Total 300
FIGURE 4.1
N.R.Institute of Business Management Page 83
FIGURE 4.2
Interpretation:
The above column graph indicates that 231 respondents buy OTC products As and When
needed while the number of respondents that purchase OTC products on weekly basis, fortnight
basis and monthly basis are 14, 6, and 15 respectively.
It can be implied from the above pie chart that majority of the respondents i.e. 87% prefer
buying OTC products As and When needed. While only 2% of respondents prefer buying OTC
products on fortnight basis.
Thus, above analysis implies that people generally don’t prefer stocking OTC products at
home.
N.R.Institute of Business Management Page 84
5) Which factors influence you while making the purchase decision regarding
particular brand of OTC product?
EXHIBIT 5
Frequency Percent Earlier prescription from doctors 142 52 Recommendation from a friend/relative 62 23
Advertisement of a product 20 7 Through product trial 50 18
Total 266 100 Missing 34 Grand Total 300
FIGURE 5.1
N.R.Institute of Business Management Page 85
FIGURE 5.2
Interpretation:
From the above column graph 142 respondents uses earlier prescription from doctors as a
basis for making purchase decision regarding particular brand of OTC products. This is the most
influencing factor as 52% of respondents base their purchase decision on it. The second most
influencing factor is recommendation from a friend/ relative as 62 respondents i.e. 23% take it
into account while making purchase decision. 50 respondents i.e. 18% of respondents make
purchase decision through product trial.
Thus the conclusion is that in India people still consider doctors next to God.
N.R.Institute of Business Management Page 86
6) Rank the following features of particular brand of OTC products in order
of your preference.
EXHIBIT 6
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Efficacy 146 79 28 5 8
Brand Name 102 122 38 2 36
Packaging 2 15 109 88 50
Pricing 11 36 57 132 28
Promotional Offer 4 14 31 37 178
Descriptive Statistics
N Mean Std. Deviation Statistic Statistic Std. Error Statistic Efficacy 266 1.6842 .05829 .95062 Brand name 264 1.7727 .04399 .71476
I reach for OTC medicines at the first sign of illness EXHIBIT 17.1
Frequency Valid Percent Strongly disagree 89 34 Disagree 38 14 Neutral 57 21 Agree 32 12 Strongly agree 50 19 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.1
Interpretation:
It can be seen from the above Pie-chart that 34% respondents have strongly Disagreed
with this statement while only 19% have strongly agreed with this statement. Thus, it shows that
people take OTC medicines only when the illness is severe.
N.R.Institute of Business Management Page 128
I use OTC medicines only if the illness is quite severe EXHIBIT 17.2
Frequency Percent Strongly disagree 42 16 Disagree 44 16 Neutral 53 20 Agree 56 21 Strongly agree 71 27 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.2
Interpretation:
In this statement, 27% respondents strongly agree with this statements and so it
reconfirms first statement that people use OTC medicines only if the illness is quite severe. Only
16% of sample strongly disagrees with this statement.
N.R.Institute of Business Management Page 129
Non-prescription medicines are totally safe to use
EXHIBIT 17.3
Frequency Valid Percent
Strongly disagree 87 33 Disagree 47 18 Neutral 73 27 Agree 33 12 Strongly agree 26 10 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.3
Interpretation: The above Pie chart indicates that 33% respondents strongly disagree with this statement
while only 10% respondents strongly agrees with this statement. This means that people are well
aware of the fact that no medicines are devoid of any side-effects and no medicine in the world is
good for our health.
N.R.Institute of Business Management Page 130
Non-prescription medicines can have dangerous side-effects EXHIBIT 17.4
Frequency Percent Strongly disagree 32 12 Disagree 27 10 Neutral 83 31 Agree 61 23 Strongly agree 63 24 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.4
Interpretation: 31% respondents are neutral to this statement as seen in above pie while 23% and 24%
respondents agree and strongly agree respectively. The proportion of neutral respondents is high
because of the word ‘dangerous’. People know that Non-prescription medicines have side-effects
but they are not sure if they are having dangerous side-effects or not.
N.R.Institute of Business Management Page 131
The effect of incorrect use of non-prescription medicines can be as serious as that of prescription medicines
EXHIBIT 17.5 Frequency Percent Strongly disagree 51 19 Disagree 21 8 Neutral 51 19 Agree 65 25 Strongly agree 78 29 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.5
Interpretation: 29% respondents strongly agree with this statement and 25% respondents agree with this
statement. It means people believe that medicines should be used according to directions for use.
N.R.Institute of Business Management Page 132
Non-prescription medicines can sometimes mask serious health problems EXHIBIT 17.6
Frequency Percent Strongly disagree 33 12 Disagree 20 8 Neutral 67 25 Agree 69 26 Strongly agree 77 29 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.6
Interpretation: The response for this statement is quite clear as 29% respondents strongly agree and 26%
respondents agree with this statements. Thus, people believe that use of Non-prescription
medicines can mask serious health problems.
N.R.Institute of Business Management Page 133
Some non-prescription medicines interfere with the natural healing process of
the body EXHIBIT 17.7
Frequency Percent Strongly disagree 28 10 Disagree 44 17 Neutral 67 25 Agree 56 21 Strongly agree 71 27 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.7
Interpretation: Proportion of respondents agreeing with this statement is almost half of the total
respondents while ¼ of the respondents have expressed neutral opinion about the statement while
remaining ¼ of the respondents have disagreed with the statement.
N.R.Institute of Business Management Page 134
With continual use, some non-prescription medicines lose their effectiveness
EXHIBIT 17.8
Frequency Percent Strongly disagree 30 11 Disagree 27 10 Neutral 48 18 Agree 73 28 Strongly agree 88 33 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.8
Interpretation:
It can be seen from the Pie-chart that 28% respondents agree and 33% strongly agree
with the statement. So it can be easily concluded that people believe that Non-prescription
medicines should not used frequently as they may lose their effectiveness and thereafter they will
not work at a same dose.
N.R.Institute of Business Management Page 135
Some non-prescription medicines may cause dependency or addiction if taken
for a long period of time EXHIBIT 17.9
Frequency Percent Strongly disagree 30 11 Disagree 25 10 Neutral 45 17 Agree 62 23 Strongly agree 104 39 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.9
Interpretation: 39% respondents strongly agree to this statement as seen in above pie chart while 23%
respondents agree to this statements. People believe that Non-prescription medicines can also
cause addiction when used for a longer period of time but 17% respodents are not sure about this
statement.
N.R.Institute of Business Management Page 136
Non-prescription medicines should be used frequently to relieve minor health
problems
EXHIBIT 17.10
Frequency Percent Strongly disagree 66 25 Disagree 38 14 Neutral 71 27 Agree 37 14 Strongly agree 54 20 Total 266 100 Missing 34 Grand Total 300
FIGURE 17.2.10
Interpretation: From the above Pie-chart it can be concluded that 27% respondents are neutral to this
statement. Moreover, 25% respondents strongly disagree with this statement and 20%
respondents strongly agree with this statement. Thus, the response is quite ambigious and it
cannot be clearly stated as what is the opinion of the respondents.
N.R.Institute of Business Management Page 137
18) What action would you take if an OTC medicine did not work within
reasonable period of time?
EXHIBIT 18
Frequency Percent Stop using the product and consult the doctor 198 74 Stop using the product and ask the retailer 31 12 Decrease the dose or stop the medication 23 9 Increase the dose or use product more often 12 4 Use for longer time 2 1 Total 266 100 Missing 34 Grand Total 300
FIGURE 18.1
N.R.Institute of Business Management Page 138
FIGURE 18.2
Interpretation:
When asked what action they would take if an OTC medicine did not work within the
recommended period of time, 198 respondents reported that they would stop and consult the
Doctor. 31 respondents said that they would stop using the product and ask the retailer while 23
respondents said that they would decrease the dose or stop the medication. Moreover 12
respondents indicated that they would increase the dose or use the product more often while only
2 respondents said that they would use the product for a longer time.
Thus the most prominent response is to stop the medication and consult the doctor as chosen
by 74% of respondents while the least preferred action is to use the product for a longer time as
only 1% of respondents prefer that action.
N.R.Institute of Business Management Page 139
19) Tick ( ) against the brand(s) which you have used for personal
Total 266 2.0038 .98478 .06038 1.8849 2.1226 1.00 5.00
N.R.Institute of Business Management Page 156
EXHIBIT 1.2
ANOVAFollow direction on package
Sum of Squares df Mean Square F Sig.
Between Groups 22.672 4 5.668 6.313 .000 Within Groups 234.324 261 .898
Total 256.996 265
Follow direction on package Scheffe
(I) Age (J) Age
Mean Difference (I-
J) Std. Error Sig.
95% Confidence Interval
Lower Bound Upper Bound19 years - 30 years 31 years - 40 years -.67742* .18642 .012 -1.2558 -.0991
41 years - 50 years -.75637* .22821 .029 -1.4644 -.0484 51 years - 60 years -.34409 .20551 .592 -.9817 .2935 Above 60 Years -.74885 .36481 .380 -1.8806 .3829
31 years - 40 years 19 years - 30 years .67742* .18642 .012 .0991 1.2558 41 years - 50 years -.07895 .27781 .999 -.9408 .7829 51 years - 60 years .33333 .25949 .800 -.4717 1.1384 Above 60 Years -.07143 .39772 1.000 -1.3053 1.1625
41 years - 50 years 19 years - 30 years .75637* .22821 .029 .0484 1.4644 31 years - 40 years .07895 .27781 .999 -.7829 .9408 51 years - 60 years .41228 .29096 .734 -.4904 1.3150 Above 60 Years .00752 .41894 1.000 -1.2922 1.3072
51 years - 60 years 19 years - 30 years .34409 .20551 .592 -.2935 .9817 31 years - 40 years -.33333 .25949 .800 -1.1384 .4717 41 years - 50 years -.41228 .29096 .734 -1.3150 .4904 Above 60 Years -.40476 .40702 .911 -1.6675 .8580
*. The mean difference is significant at the 0.05 level.
N.R.Institute of Business Management Page 157
Interpretation:
The ANOVA table reveals that significance level is much lower than alpha (α) (0 < 0.05).
This means that there are significant differences in population means for following the directions
given on the package across age groups. Hence, null hypothesis Ho is rejected and Alternate
hypothesis H1 is accepted. In order to examine where differences existed, the post-hoc Scheffe
Test is employed. First, for age level, there are significant differences between mean direction
follow for 19 years - 30 years against the group of 31 years - 40 years.
The difference was also significant between respondents who are between 41 years - 50
years and those who are between 19 years - 30 years. Moreover it can be concluded from the
descriptive table that respondents that are between 19 years – 30 years follow directions given on
package more often than other age groups. Respondents between 51 years – 60 years follow
directions given on package more often than other age groups except respondents falling in age
group of 19 years – 30 years.
N.R.Institute of Business Management Page 158
Education
Ho: Population means for following the directions given on the package are not
significantly different across education level groups
H1: Population means for following the directions given on the package are significantly
The significance level as indicated in the table is 0.554 which is much than
predetermined level of significance (α) (0.554 > 0.5). This implies that there are no significant
differences in population means for following the directions given on the package across income
groups. So, null hypothesis Ho is accepted and Alternate hypothesis H1 is rejected. Hence, it can
be concluded that respondents falling in any of the income groups follow the directions given on
the package to the same extent.
N.R.Institute of Business Management Page 163
2) CHI- SQUARE
Income and Doctors’ inquiry
H0: Income and feel about Doctors’ inquiry are independent to each other
H1: Income and feel about Doctors’ inquiry are dependent on each other
Degree of freedom= (row-1) (column-1) = (5-1) (5-1) = 16
Level of significance = 0.10
EXHIBIT 2.1
Feel when
doctor inquires you
Monthly income
Total Rs. 0 - Rs.
10,000 Rs. 10,001 -
Rs. 20,000
Rs. 20,001 - Rs.
30,000
Rs. 30,001 - Rs.
40,000
Above Rs. 40,000
He should do it routinely 52 24 22 16 7 121
It would be a good idea
sometimes 14 16 12 4 10 56
I don't mind either ways 31 13 6 8 6 64
It would be better if he
don't 5 2 6 3 2 18
I would rather be upset if he
did 5 0 0 2 0 7
Total 107 55 46 33 25 266
N.R.Institute of Business Management Page 164
Row Column Observed Frequency
Expected Frequency Fo - Fe (Fo - Fe)^2 (Fo-Fe)^2/Fe
1 1 52 48.7 3.3 10.89 0.224
1 2 24 25 -1 1 0.040
1 3 22 20.9 1.1 1.21 0.058
1 4 16 15 1 1 0.067
1 5 7 11.4 -4.4 19.36 1.698
2 1 14 22.5 -8.5 72.25 3.211
2 2 16 11.6 4.4 19.36 1.669
2 3 12 9.7 2.3 5.29 0.545
2 4 4 6.9 -2.9 8.41 1.219
2 5 10 5.3 4.7 22.09 4.168
3 1 31 25.7 5.3 28.09 1.093
3 2 13 13.2 -0.2 0.04 0.003
3 3 6 11.1 -5.1 26.01 2.343
3 4 8 7.9 0.1 0.01 0.001
3 5 6 6 0 0 0.000
4 1 5 7.2 -2.2 4.84 0.672
4 2 2 3.7 -1.7 2.89 0.781
4 3 6 3.1 2.9 8.41 2.713
4 4 3 2.2 0.8 0.64 0.291
4 5 2 1.7 0.3 0.09 0.053
5 1 5 2.8 2.2 4.84 1.729
5 2 0 1.4 -1.4 1.96 1.400
5 3 0 1.2 -1.2 1.44 1.200
5 4 2 0.9 1.1 1.21 1.344
5 5 0 0.7 -0.7 0.49 0.700
27.222
N.R.Institute of Business Management Page 165
FIGURE 2.1
χTabulated = 23.542
χCalculated = 27.222
Thus, Ho is rejected and H1 is accepted.
Interpretation:
The above analysis shows that H1 is accepted and Ho is rejected. So it can be concluded
that there is dependence between feel about Doctors’ inquiry and income.
The given conclusion is due to the fact that income of the people has the bearing on their
attitude towards the society. People with high income do not prefer being inquired by any person
may it be a Doctor. They feel that they have a higher status in the society than others and they
are not required to answer anybody’s questions. While the people with low income think
logically that it is better if Doctor inquires them as it would help the Doctor to diagnose more
accurately.
N.R.Institute of Business Management Page 166
Age and Doctors’ inquiry
H0: Age and feel about Doctors’ inquiry are independent to each other
H1: Age and feel about Doctors’ inquiry are dependent on each other
Degree of freedom= (row-1) (column-1) = (5-1) (5-1) = 16
Level of significance = 0.10 EXHIBIT 2.2
Feel when
doctor inquires you
Age
Total 19 years - 30 years
31 years - 40 years
41 years - 50 years
51 years - 60 years
Above 60 Years
He should do it routinely
85 12 11 12 1 121
It would be a good idea sometimes
34 10 4 6 2 56
I don't mind either ways
48 8 4 4 0 64
It would be better if he don't
14 0 0 2 2 18
I would rather be upset if he did
5 0 0 0 2 7
Total 186 30 19 24 7 266
N.R.Institute of Business Management Page 167
Row Column Observed Frequency
Expected Frequency Fo - Fe (Fo-Fe)^2 (Fo-
Fe)^2/Fe 1 1 85 84.6 0.4 0.16 0.002
1 2 12 13.6 -1.6 2.56 0.188
1 3 11 8.6 2.4 5.76 0.670
1 4 12 10.9 1.1 1.21 0.111
1 5 1 3.2 -2.2 4.84 1.513
2 1 34 39.2 -5.2 27.04 0.690
2 2 10 6.3 3.7 13.69 2.173
2 3 4 4 0 0 0.000
2 4 6 5.1 0.9 0.81 0.159
2 5 2 1.5 0.5 0.25 0.167
3 1 48 44.8 3.2 10.24 0.229
3 2 8 7.2 0.8 0.64 0.089
3 3 4 4.6 -0.6 0.36 0.078
3 4 4 5.8 -1.8 3.24 0.559
3 5 0 1.7 -1.7 2.89 1.700
4 1 14 12.6 1.4 1.96 0.156
4 2 0 2 -2 4 2.000
4 3 0 1.3 -1.3 1.69 1.300
4 4 2 1.6 0.4 0.16 0.100
4 5 2 0.5 1.5 2.25 4.500
5 1 5 4.9 0.1 0.01 0.002
5 2 0 0.8 -0.8 0.64 0.800
5 3 0 0.5 -0.5 0.25 0.500
5 4 0 0.6 -0.6 0.36 0.600
5 5 2 0.2 1.8 3.24 16.200
34.484
N.R.Institute of Business Management Page 168
FIGURE 2.2
χTabulated = 23.542
χCalculated = 34.484
Thus, Ho is rejected and H1 is accepted.
Interpretation:
The above analysis shows that H1 is accepted and Ho is rejected. So it can be concluded
that there is dependence between feel about Doctors’ inquiry and age.
The given conclusion is due to the fact that people in different age groups have different
attitude towards the society. Most people in age group of 19 years- 30 years ie young generation
prefer being inquired by Doctor because they know the importance of Doctors’ inquiry about
prior OTC medication use. Still many people in age group of 19 years – 30 years do not mind
either ways whether Doctor inquires or do not inquires. While the people in the age group of
Above 60 years have narrow minded approach and they feel that why should I tell everything to
the Doctor? More than 50% of people in this age group feel that Doctors should not inquiry them
about prior OTC medicines usage.
N.R.Institute of Business Management Page 169
3) Z-Test
Ho: p = 0.5 50% of people seek detail information from the chemist of brand of the OTC
products
H1: p > 0.5 Proportion of people seeking detail information from the chemist of brand of
the OTC products is greater than 50%
Level of Significance (α) = 0.05
Defining the probability of success
p1 = p/n = 157/266 = 0.5902 pHo = 0.5
q1 = q/n =109/266 = 0.4098 qHo = 0.5
Calculation of Standard Deviation
Standard deviation = σp = √pq/n
= √ (0.50X0.50)/266
= √ 0.00094
=0.0307
N.R.Institute of Business Management Page 170
FIGURE 3.1
Calculation of z-statistics
Calculated Z statistics = (p1 – pHo) / σp1
= (0.5902 – 0.50) / 0.0307
= 2.9381
Z-Critical for 95% confidence level is 1.645 from the z table which is less than the calculated
value i.e. 2.9381
Therefore Ho rejected and H1 is accepted.
Interpretation:
Hence, Proportion of people seeking detail information from the chemist of brand of the
OTC products is greater than 50%. Thus, It can be safely concluded that in India, Chemist play a
major role in creating awareness about the medicines among the people.
N.R.Institute of Business Management Page 171
4) Kruskal-Wallis Test
Between age and features of brand of OTC products
EXHIBIT 4.1
Age N Mean Rank Efficacy 19 years - 30 years 186 132.28
31 years - 40 years 30 159.13 41 years - 50 years 19 102.82 51 years - 60 years 24 148.04 Above 60 Years 7 89.57 Total 266
Brand name 19 years - 30 years 186 130.98 31 years - 40 years 28 116.36 41 years - 50 years 19 160.13 51 years - 60 years 24 123.50 Above 60 Years 7 193.21 Total 264
Packaging 19 years - 30 years 186 132.67 31 years - 40 years 28 126.68 41 years - 50 years 19 131.11 51 years - 60 years 24 146.71 Above 60 Years 7 106.36 Total 264
Pricing 19 years - 30 years 186 129.25 31 years - 40 years 28 114.88 41 years - 50 years 19 160.08 51 years - 60 years 24 161.04 Above 60 Years 7 116.71 Total 264
Promotional offer 19 years - 30 years 186 134.79 31 years - 40 years 28 135.89 41 years - 50 years 19 128.45 51 years - 60 years 24 105.92 Above 60 Years 7 160.14 Total 264
N.R.Institute of Business Management Page 172
Test Statisticsa,b
Efficacy Brand name Packaging Pricing Promotional offer Chi-Square 11.818 10.197 2.057 9.245 5.955 df 4 4 4 4 4 Asymp. Sig. .019 .037 .725 .055 .202 a. Kruskal Wallis Test b. Grouping Variable: Age
EFFICACY Ho: There are no differences among the population groups so they have same mean
H1: There are differences among the population groups so they do not have same mean
Interpretation: As observed significance level is below 0.05, there is significant difference in importance
that respondents in the age groups give to the efficacy. Thus, Ho is rejected and H1 is accepted.
Moreover, analysis of the mean ranks shown in the above table indicates that people above 60
years give the maximum importance to efficacy among all the age groups.
BRAND NAME
Ho: There are no differences among the population groups so they have same mean
H1: There are differences among the population groups so they do not have same mean
Interpretation: As observed significance level is below 0.05, there is significant difference in importance
that respondents in the age groups give to the brand name. Thus, Ho is rejected and H1 is
accepted. Moreover, analysis of the mean ranks shown in the above table indicates that people in
31-40 years give the maximum importance to brand name among all the age groups.
N.R.Institute of Business Management Page 173
PACKAGING Ho: There are no differences among the population groups so they have same mean
H1: There are differences among the population groups so they do not have same mean
Interpretation: As observed significance level is above 0.05, there is no significant difference in
importance that respondents in the age groups give to the packaging. Thus, Ho is accepted and
H1 is rejected.
PRICING Ho: There are no differences among the population groups so they have same mean
H1: There are differences among the population groups so they do not have same mean
Interpretation: As observed significance level is above 0.05, there is no significant difference in
importance that respondents in the age groups give to the pricing. Thus, Ho is accepted and H1 is
rejected.
PROMOTIONAL OFFER
Ho: There are no differences among the population groups so they have same mean
H1: There are differences among the population groups so they do not have same mean
Interpretation: As observed significance level is above 0.05, there is no significant difference in
importance that respondents in the age groups give to the promotional offer. Thus, Ho is
accepted and H1 is rejected.
N.R.Institute of Business Management Page 174
Between Income and features of brand of OTC products
EXHIBIT 4.2
Monthly income N Mean Rank Efficacy Rs. 0 - Rs. 10,000 107 134.69
Company profile retrieved from http://www.novartis.com/products/over-counter.shtml
Company profile retrieved from http://www.zyduscadila.com/aboutus.html
Company profile retrieved from http://www.gsk-india.com/product-index.html
Journals Empirical analysis of OTC supplements in India retrieved from International Journal of
Indian Culture and Business Management
N.R.Institute of Business Management Page 187
Efficacy: Power or capacity to produce a desired effect; effectiveness. Laxatives: Laxatives are foods, compounds, or drugs taken to induce bowel
movements or to loosen the stool, most often taken to treat constipation.
Anti-Diarrheal: An anti-diarrheal drug is any medication which provides
symptomatic relief for diarrhea.
Hemorrhoid: Hemorrhoids are swelling and inflammation of veins in the rectum and
anus.
Point of sale display: A point-of-sale display (POS) is a specialized form of sales
promotion that is found near, on, or next to a checkout counter (the "point of sale").
Indigestion: Used in curing Acidity
Antacid: used in curing Acidity
Lozenges: A small, medicated candy intended to be dissolved slowly in the mouth to
lubricate and soothe irritated tissues of the throat.
Gastrointestinal: The digestive system is the system by which ingested food is acted
upon by physical and chemical means to provide the body with nutrients it can absorb
and to excrete waste products; in mammals the system includes the alimentary canal
extending from the mouth to the anus, and the hormones and enzymes assisting in
digestion.
API: An active ingredient (AI) is the substance in a pharmaceutical drug or a pesticide
that is biologically active.
Drug Master File or DMF: DMF is a document prepared by a pharmaceutical
manufacturer and submitted solely at its discretion to the appropriate regulatory authority
in the intended drug market.
Stem cells: Stem cells are cells found in most, if not all, multi-cellular organisms. They
are characterized by the ability to renew themselves through mitotic cell division and
differentiating into a diverse range of specialized cell types.
Antiflatulent: An antiflatulent agent is a drug used for the alleviation or prevention
of excessive intestinal gas, i.e., flatulence
N.R.Institute of Business Management Page 188
QUESTIONNAIRE FOR CONSUMERS
Dear Sir/Madam,
I am conducting a survey which is a part of Grand Project for partial fulfillment of MBA curriculum. Your views about the questions asked are welcomed and are of great importance to my project. The survey is solely for the academic purpose and details provided by you will be very much confidential.
1) What do you do when you suffer from a minor disease? Consult to the doctor Consult a friend Consult to a family member Take a medicine on your own Take a medicine which the storekeeper suggests Do nothing
2) Have you ever used any of the pharma OTC products?
(OTC products are the medicines that can be purchased without advice of the Doctor) Yes No
3) Which place you generally prefer to purchase Pharma OTC products? Neighborhood Chemist store Drug retail chain (like Apollo Pharmacy) Supermarket/mall Grocery stores
4) What is your preferred time interval for buying OTC products?
As and when needed Every Week Every Fortnight Every Month
5) Which factors influence you while making the purchase decision regarding particular brand of
OTC product? Earlier prescription from a Doctor Recommendation from a friend/relative Advertisements of a product Through product trial
6) Rank the following features of a particular brand of OTC products in order of your preference.
Efficacy Brand name Packaging Pricing Promotional Offer
N.R.Institute of Business Management Page 189
7) Which medium of communication is most appealing to you for advertisements of OTC products?
Newspaper Magazines Television Internet Billboard Pamphlet
8) Do you seek detail information from the chemist of brand of the OTC products which you
purchase? Yes No
9) Do you perceive OTC products as safe to buy and use? yes No
10) Are you aware of side effects of OTC products you take?
Yes No
11) Do you read the labeling information on an OTC products’ package before using it? Yes No
If Yes, when you look at the package including the front, back, and sides, what information do you read? (Tick multiple options if you want)
Directions for use Active ingredients Warnings (about using it with other drugs or conditions) Possible side effects Price, manufacture date and expiry date Other_______________________________________________________
12) How often do you follow directions given on OTC drug package? Always Most of the times Sometimes Rarely Never
N.R.Institute of Business Management Page 190
13) Do point of sale display influence you while making a purchase decision regarding OTC products?
Always Most of the times Sometimes Never
14) Do you visit Drug store with primary intention to purchase only OTC products?
Yes No
15) How would you feel when your doctor inquires you about OTC medicines taken before
consulting him/her? He should do it routinely It would be a good idea sometimes I don’t mind either ways It would be better if he don’t I would rather be upset if he did
16) Frequency of stocking common OTC medicines at home
CATEGORIES ALWAYS SOMETIMES SELDOM NEVER
Vitamin and Minerals
Indigestion/Heartburn
Medicated skin care products
Cough remedies
Sore throat
Herbal remedies
Laxatives
Anti‐Diarrheals
Hemorrhoid product
N.R.Institute of Business Management Page 191
17) Give the following ten statements score from 1 to 5 where 1 means you strongly disagree and 5 means you strongly agree
STATEMENTS SCORE
1 2 3 4 5
I reach for OTC medicines at the first sign of illness
I use OTC medicines only if the illness is quite severe
Non‐prescription medicines are totally safe to use
Non‐prescription medicines can have dangerous side‐effects
The effect of incorrect use of non‐prescription medicines can be as serious as that of prescription medicines
Non‐prescription medicines can sometimes mask serious health problems
Some non‐prescription medicines interfere with the natural healing process of the body
With continual use, some non‐prescription medicines lose their effectiveness
Some non‐prescription medicines may cause dependency or addiction if taken for a long period of time
Non‐prescription medicines should be used frequently to relieve minor health problems
18) What action would you take if an OTC medicine did not work within reasonable period of time?
Stop using the product and consult the doctor Stop using product and ask the retailer Decrease the dose or stop the medication Increase the dose or use product more often Use for longer time
N.R.Institute of Business Management Page 192
19) Tick ( ) against the brand(s) which you have used for personal consumption.
COLD AND COUGH SEGMENT
TABLET
BRAND USAGE
Lemolate
Dcold Total
Crocin Cold and Flu
Vicks Action 500
Okaset Cold
Other (Specify all the names)
SYRUP
BRAND USAGE
Benadryl
Corex‐dx
Tossex
Brozedex
Phensedyl
Other ( specify all the names)
LOZENGES
BRAND USAGE
Alex
Vicks
Strepsils
Halls
Koflet
Other (Specify all the names )
N.R.Institute of Business Management Page 193
ANALGESIC (PAIN KILLER)
BRAND USAGE
Voveran
Metacin
Disprin
Calpol
Combiflam
Saridon
Dolo
Other (Specify all the names)
MULTI‐VITAMIN
BRAND USAGE
Revital
Riconia
Beplex‐ forte
Becosules
Polybion
Other (Specify all the names)
ANTACID
BRAND USAGE
Digene
Gelucil‐ Mps
Rantac
Zintac
Ranitin
Others(Specify all the names)
N.R.Institute of Business Management Page 194
BALM AND OINTMENT
BRAND USAGE
Zandu
Tiger
Moov
Iodex
Amrutanjan
Vicks
Other (Specify all the names)
Personal Details:
Name (Optional):________________________________________________________
Gender: Male Female
Age: 19 years ‐ 30 years 31 years ‐ 40 years 41 years ‐ 50 years 51 years ‐ 60 years Above 60 years Education: Undergraduate