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A

Thesis on

TO STUDY PROMOTIONAL STRATEGY ADOPTED BY

RANBAXY LABORATORIES LTD RELATED TO

RANITIDINE-150mg (Antiulcerant) IN NAGPUR CITY

ByASHISH L. RAHATE

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Enrol.No.8NBNG169

A

Thesis on

TO STUDY PROMOTIONAL STRATEGY ADOPTED BY

RANBAXY LABORATORIES LTD RELATED TO

RANITIDINE-150mg (Antiulcerant) IN NAGPUR CITY

ByASHISH L. RAHATE

Enrol.No.8NBNG169

A report submitted in partial fulfillment of

The requirements of

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THE MBA PROGRAM

(The Class of 2010)

INC

ACKNOWLEDGEMENT

In preparation of this report by me I feel great pleasure because it gives me

extensive practical knowledge in my career. I have attended the information about

sales promotion of Ranbaxy Lab. through this project

I express my deep sense of my gratitude to my company for valuable guidanceduring my project work I also like thank to all the staff members those who

guided me in my project of Ranbaxy Lab. At Nagpur.

I am thankful to Mr.Ajay Patole (Faculty Guide) for valuable inspiration and

guidance provided me through out course of this project. Last But not least, I feel

proud to express my deep gratitude to my parents without blessings; the presence

work would have never been employed.

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TABLE OF CONTENTS

Sr.No. Particulars Page No.

Chapter-1 Introduction 6

Objective and Limitations of Study 7

Industry Profile 8

Market Structure and Trends 12

Company Profile 24

Pharmaceutical Marketing in Ranbaxy 31

Ranbaxy Business Strategy 39

Chapter- 2 SWOT Analysis 42Chapter- 3 Mission And Vision Statement 46

Chapter- 4 Product Profile 49

Details of Ranitidine 50

Histac 52

Competitors of Histac 52

Chapter- 5 Research Methodology 53

Chapter- 6 Analysis 55

Chapter- 7 About Ranbaxy 60

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and coordinates them and make them effective. It can include a host of activities

like running advertising campaigns, handling public relation activities, distribution

of free samples, offering free gifts, conducting trade fairs, offering temporary price

discounts etc.

The main purpose of sales promotion is to boost the sales of a product by creating

demand.

Sales promotion also helps in achieving the following purposes:

1. Encourage the customers to try a new product.

2. Attract new customers

3. Encourage the customers to use the product or service and make them brand

loyal.

CHAPTER- 1

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INTRODUCTION

OBJECTIVES OF THE STUDY

To study the overview of Indian Pharmaceutical Market.

To study the culture of Ranbaxy Lab.

To find out the promotional strategies used by Ranbaxy with respect to

Histac tab.

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To find out various promotional strategies used by Ranbaxy to acquire

market share in Nagpur city.

To study the competitors of Histac in pharma market.

STo study the perceptions of Doctors on sales of Histac

LIMITATIONS

The scope of study is limited to Nagpur City only.

There may be discrepancies in the actual data and the recorded data due to

misinterpretations.

Topic is vast but availability of information and timeline is short.

Unable to meet the decision maker of the organization.

Due to busy schedule of Doctors proper feedback is not possible.

4. INDUSTRY PROFILE

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

science-based industries with wide ranging capabilities in the complex field of

drug manufacture and technology. A highly organized sector, the Indian Pharma

Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent

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

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range of medicines manufactured. From simple headache pills to sophisticated

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

made indigenously.

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

medicines, Indian Pharma Industry boasts of quality producers and many units

approved by regulatory authorities in USA and UK. International companies

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

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

map of the world.

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

registered units. It has expanded drastically in the last two decades. The leading250 pharmaceutical companies control 70% of the market with market leader

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

severe price competition and government price control.

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

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

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

8000 Small Scale Units, which form the core of the pharmaceutical industry inIndia (including 5 Central Public Sector Units). These units produce the complete

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

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

used for production of pharmaceutical formulations.

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

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

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

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

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

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

The Pharmaceutical Industry, with its rich scientific talents and research

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capabilities, supported by Intellectual Property Protection regime is well set to

take on the international market.

The future of Indian pharmaceutical sector looks extremely positive. Indian

pharma companies are vying for the branded generic drug space to register theirglobal presence. Several Indian pharmaceutical companies have acquired

companies in the US and Europe and many others are raising funds to do so. For

example, Ranbaxy acquired Romania's Terapia, Ethimed NV of Belgium and

GSK's generic business Allen SpA in Italy. Dr Reddy's acquired German generic

drug maker Betapharm. Companies like Glenmark Pharma, Lupin, Aurobindo and

Jubilant Organosys are on the lookout for lucrative acquisitions.

Generic Drugs

A generic drug (generic drugs, short: generics) is a drug which is produced and

distributed withoutpatent protection. The generic drug may still have apatent on

the formulation but not on the activeingredient.

Over The Counter Drug

It is also known as medication drugs. These can be purchased without prescription.

Prescription Drugs

These have to be prescribed or administered by healthcare professionals.

Vaccines Market

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Vaccine manufacturers from all over the world have been involved in a stalematewith governments regarding supply and demand. While governments are reluctantto ensure steady demand for vaccines unless the manufacturers can prove theirability to increase their supply, the latter are apprehensive about increasing

production without a guarantee of sustained demand from the governments.Meanwhile, developing nations are increasingly demanding vaccines that are nolonger included in the immunization schedules of developed countries. Thesevaccines will have to be provided at very low costs, which will not be feasibleunless the demand can compensate for the low margins.

Global vaccines market is estimated at USD10 billion in 2007; human vaccinevalued at USD8.3 billion contributes major share ie 83% of the total market andrest 17% is occupied by animal vaccine valued at USD1.7 billion. The US is theleading market, accounting for more than 50% of the global vaccine market.

Influenza vaccine is the fastest growing in the adult vaccine segment followed byHepatitis vaccines. The vaccines market in India in 2006-07 was INR30.53 billionregistering a 30.41% growth over the previous year. Indias huge populationmakes it among the worlds largest market for vaccines of all types.

India faces a growing demand for new generation and combination vaccines,such as DPT with Hepatitis B, Hepatitis A and Injectable polio vaccine, besidesseveral veterinary and poultry vaccines. Indian vaccines market is dominated by

pediatric vaccine with 60% of market share. Combination vaccines are driving thegrowth of vaccine market in India.

The business of Drug Development

Drug development is a blanket term used to define the entire process of bringing

a new drug or device to the Market. It includes Drug discovery / productdevelopment, pre-clinical research (microorganisms/animals) and Clinical trials

(on humans).

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New Chemical Entities (NCEs)(also known as New Molecular Entities (NMEs))

are compounds which emerge from the process ofdrug discovery. These will have

promising activity against a particular biological target thought to be important in

disease; however, little will be known about the

safety, toxicity,pharmacokinetics and metabolism of this NCE in humans. It is thefunction of drug development to assess all of these parameters prior to human

clinical trials. A further major objective of drug development is to make a

recommendation of the dose and schedule to be used the first time an NCE is used

in a human clinical trial ("first-in-man" (FIM) or First Human Dose (FHD)).

Many aspects of drug development are focused on satisfying the regulatory

requirements of drug licensing authorities. These generally constitute a number of

tests designed to determine the major toxicities of a novel compound prior to first

use in man. It is a legal requirement that an assessment of major organ toxicity beperformed (effects on the heart and lungs, brain, kidney, liver and digestive

system), as well as effects on other parts of the body that might be affected by the

drug (e.g. the skin if the new drug is to be delivered through the skin). While,

increasingly, these tests can be made using in vitro methods (e.g. with isolated

cells), many tests can only be made by using experimental animals, since it is only

in an intact organism that the complex interplay of metabolism and drug exposure

on toxicity can be examined.

The process of drug development does not stop once an NCE begins humanclinical trials. In addition to the tests required to move a novel drug into the clinic

for the first time it is also important to ensure that long-term or chronic toxicities

are determined, as well as effects on systems not previously monitored (fertility,

reproduction, immune system, etc). The compound will also be tested for its

capability to cause cancer (carcinogenicity testing).

MARKET STRUCTURE AND TRENDS

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The first Indianpharmaceutical company, Bengal Chemicals and

Pharmaceutical Works, which still exists today as one of 5 government-owned

drug manufacturers, appeared in Calcutta in 1930. For the next 60 years, most of

the drugs in India were imported by multinationals either in fully-formulated or

bulk form.

The government started to encourage the growth of drug manufacturing by Indian

companies in the early 1960s, and with the Patents Act in 1970, enabled the

industry to become what it is today. This patent act removed

compositionpatents from food and drugs, and though it kept process patents, these

were shortened to a period of five to seven years. The lack of patent protection

made the Indian market undesirable to the multinational companies that had

dominated the market, and while they streamed out, Indian companies started to

take their places.

They carved a niche in both the Indian and world markets with their expertise in

reverse-engineering new processes for manufacturing drugs at low costs. Although

some of the larger companies have taken baby steps towards drug innovation, the

industry as a whole has been following this business model until the present.

In 2002, over 20,000 registered drug manufacturers in India sold $9 billion worth

of formulations and bulk drugs. 85% of these formulations were sold in India

while over 60% of the bulk drugs were exported, mostly to the United States andRussia. Most of the players in the market are small-to-medium enterprises; 250 of

the largest companies control 70% of the Indian market. Thanks to the 1970

Patent Act, multinationals represent only 35% of the market, down from 70%

thirty years ago.

Most pharma companies operating in India, even the multinationals, employ

Indians almost exclusively from the lowest ranks to high level management.

Mirroring the social structure, firms are very hierarchical. Homegrown

pharmaceuticals, like many other businesses in India, are often a mix of public and

private enterprise. Although many of these companies are publicly owned,

leadership passes from father to son and the founding family holds a majority

share.

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achieve the $4 billion mark.

The implementation of Good Manufacturing Practices has become a further

supplement to the industry now producing bulk drugs for all the major therapy

segments which are the most in demand. The competencies developed in India in

organic synthesis & process engineering have helped derive the most cost effective

solutions in time efficient scales and compliant with high quality standards. An

important outcome of this was Indias low cost production of anti-retroviral for

export to humanitarian and international organizations in needy African countries

which brought global recognition and acceptance of the industry as a major player

in the global drug producing nations.

OUTSOURCING OF P H A RMA

It has been well recognized that the global pharmaceutical industry is facing anumber of challenges at present. The difficulties the industry is experiencing haveforced all drug companies to change their current operation models. They are nowforced to pursue more efficient, cost-effective and productive ways to conducttheir operations, whether in R&D or manufacturing. The keys for them to make aquick turnaround are to get drug discovered quicker, developed faster,manufactured cheaper and marketed wider.

Outsourcing has been proven to be one of the effective solutions for drugcompanies to quickly turn the situation around as it provides them with the desiredefficiency, flexibility and agility. Among all emerging countries for outsourcing,China and India have risen rapidly and become stars in the global pharmaceuticaloutsourcing arena as both countries possess the unique combination of low costand quality service. The current global financial crisis has also greatly enhancedthe importance of these two countries to many drug companies around the world

who are vigorously seeking cost reduction.

STRATEGIC ALLIENCES

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A number of firms around the world have been using strategic alliances to become

more competitive globally. The reasons attributed to such alliances vary from

economies of scale, increased revenue, cross selling, synergy, tax write-offs, and

diversification and resource transfers among others.

After the liberalization of Indian economy in 1991, Indian companies have used

these strategic alliances to expand into other markets and prepare for increased

competition at home. But after joining the World Trade Organization in 1995,

India had to change its patent laws by 1 January 2005 to meet its commitments

under the WTO's agreement on Trade Related Intellectual Property Rights

(TRIPS). In the post-2005 scenario, the pharmaceutical industry has undergone a

significant change due to the TRIPS agreement.

Though a number of reasons are attributed to these strategic alliances in literature,

there is no particular pattern that can be observed in these alliances. Analyzing the

Indian Pharmaceutical Industry and the strategic alliances in the recent past and

what drives these alliances. A value chain framework has been proposed that

analyses the critical capabilities needed along the value chain in the

Pharmaceutical Industry, the existing capabilities of the firms and how these

alliances are supposed to bridge the capability gap.

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Expansion towards Generic Drugs

The last three years has seen several major shifts in generics company strategies.From 2006 to 2008 a period of high M&A activity was seen as many companiessought to expand geographically and create the scale required to compete withlarge pharmaceutical companies. Since the global financial crisis the level of dealshas declined due to the implications of restricted debt markets and the need toreduce company debt.

The global financial crisis has also affected government debt and subsequentlyhealthcare cost containment has become a prominent issue. Many nations and in

particular the US is seeking to reduce healthcare costs through promotion ofgenerics and creating better approval pathways for biogenerics.

PRICING OF MEDICINES

WHILE MUCH PROGRESS has been made in transforming the health sectorsince 1994, we begin this first calendar year of the second decade of our freedomwith the momentous task of sustaining efforts to improve access to affordablequality medicine. The transformation of the pharmaceutical industry, both in termsof ensuring the quality of medicine and reducing prices of drugs at manufacturing,

distribution and retail industry levels has been the most challenging part of thetransformation process in the health sector so far.

Following broad and intensive consultation, government passed the Medicine andRelated Substances Act in 1997 to provide a legislative framework for improvingaccess to affordable medicine. This entails making the entire pricing system onmedicine more transparent and capping the prices where necessary.

While seeking to reduce the prices at manufacturing and distribution levels, theinterventions also sought to remove any incentive that encouraged prescribers anddispensers of medicines to issue more expensive medicines to recoup a better

percentage margin.

The opponents of the transformation process within the retail pharmacy industryinitially argued that the dispensing fee that can be charged by pharmacists was too

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low and would therefore undermine the viability of this industry. In subsequentarguments in court on this matter, they questioned not only the dispensing fee set

by government but also the whole idea of regulating prices in order to improveaccessibility to medicine. Highly priced medicine is preferred because of betterreturns when using a percentage mark-up system. The lowering of medicine pricesto benefit the consumer is therefore bad news for those who have built their

business models on this practice.

When applying government pricing regulations on the same medicine quotedabove, a pharmacist would simply add 26% on the manufacturer's price of R31.45.This means that a consumer would buy the medicine at R39.63 instead of anunjustifiable R55.43 set by MHS.

DRUG DONATION

WHO guidelines for drug donations

Selection of drugs

Drugs should be based on expressed need, be relevant to disease

pattern and be agreed with the recipient.

Medicines should be listed on the country's essential

No returned drugs from patients should be used.

All drugs should have a shelf life of at least 12 months after arrival in the

recipient country.

Quality assurance (QA) and shelf life

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Drugs should be from a reliable source and WHO certification

forquality ofpharmaceuticals should be used.

No returned drugs from patients should be used.

All drugs should have a shelf life of at least 12 months after arrival in the

recipient country.

Presentation, packing and labeling

All drugs must be labeled in a language that is easily understood in the

recipient country and contain details of generic name, batch

number, dosage form, strength, quantity, name ofmanufacturer, storage

conditions and expiry date.

Drugs should be presented in reasonable pack sizes (e.g. no sample or

patient starter packs).

DRUG SAF ETY

Pharmacovigilance (PV) is thepharmacologicalscience relating to the detection,

assessment, understanding and prevention ofadverse effects, particularly long

term and short term side effects ofmedicines. Generally speaking,

pharmacovigilance is the science of collecting, monitoring, researching, assessing

and evaluating information from healthcare providers and patients on the adverse

effects ofmedications,biological products, herbalism and traditional

medicines with a view to:

Identifying new information about hazards associated with medicines

Preventing harm to patients.

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Pharmacovigilance is particularly concerned with adverse drug reactions,

or ADRs, which are officially described as: "A response to a drug which

is noxious and unintended, and which occurs at doses normally used for

the prophylaxis, diagnosis or therapy of disease, or for the modification

of physiological function."

Pharmacovigilance is gaining importance fordoctors and scientists as the

number of stories in the mass media of drug recalls increases.

Information and management

Recipients should be informed of all drug donations that are being

considered or under way.

Declared value should be based on the wholesale price in the recipient

country or on the wholesale world market price.

Cost of international and local transport, warehousing, etc, should be

paid by the donor agency unless otherwise agreed with the recipient in

advance.

Risks of medical treatment While medicines have led to major improvement in the treatment and

control of diseases, they also produce adverse effects on the human body

from time to time

While many drugs are precisely targeted to the causes and mechanisms

of disease, they may also have minor or distressing effects on other parts

of the body, or interact negatively with the systems of the particular

individual or with other drugs or substances they are taking, or, not work

well or at all for some, many or all of those who take them for illness

There is no such thing as a safe drug. There are risks in any intrusion into

the human body, whether chemical or surgical. Nothing in this field is

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entirely predictable as the interaction between chemicals and the human

body may produce surprises.

PHARMA : THROUGH POTER EYE

Today's business environment is extremely competitive and in economics parlance

where perfect competition exists, the profits of the firms operating in that industry

will become zero.

However, this is not possible because, firstly no company is a price taker (i.e. no

company will operate where profits are zero).

Secondly, they strive to create a competitive advantage to thrive in the competitive

scenario. Michael Porter, considered to be one of the foremost gurus' of

management, developed the famous five-force model, which influences an

industry.

Industry competition

Pharma industry is one of the most competitive industries in the country with as

many as 10,000 different players fighting for the same pie. The rivalry in the

industry can be gauged from the fact that the top player in the country has only 6%

market share, and the top five players together have about 18% market share.

Thus, the concentration ratio for this industry is very low. High growth prospects

make it attractive for new players to enter in the industry.

Another major factor that adds to the industry rivalry is the fact that the entry

barriers to pharma industry are very low. The fixed cost requirement is low but theneed for working capital is high.

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Bargaining power of buyers

Enhance over the long term, as product patents come into play from 2005.

The unique feature of pharma industry is that the end user of the product is

different from the influencer (read doctor). The consumer has no choice but to buy

what doctor says. However, when we look at the buyer's power, we look at the

influence they have on the prices of the product.

In pharma industry, the buyers are scattered and they as such does not wield much

power in the pricing of the products. However, government with its policies, plays

an important role in regulating pricing through the NPPA (National

Pharmaceutical Pricing Authority).

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Bargaining power of suppliers

The pharma industry depends upon several organic chemicals. The chemical

industry is again very competitive and fragmented. The chemicals used in the

pharma industry are largely a commodity.

The suppliers have very low bargaining power and the companies in the pharma

industry can switch from their suppliers without incurring a very high cost.

However, what can happen is that the supplier can go for forward integration to

become a pharma company. Companies like Orchid Chemicals and Sashun

Chemicals were basically chemical companies, who turned themselves intopharmaceutical companies.

Barriers to entry

Pharma industry is one of the most easily accessible industries for an entrepreneur

in India. The capital requirement for the industry is very low, creating a regional

distribution network is easy, since the point of sales is restricted in this industry in

India.

However, creating brand awareness and franchisee amongst doctors is the key forlong-term survival. Also, quality regulations by the government may put some

hindrance for establishing new manufacturing operations.

Going forward, the impending new patent regime will raise the barriers to entry.

But it is unlikely to discourage new entrants, as market for generics will be as

huge.

Threat of substitutes

This is one of the great advantages of the pharma industry. Whatever happens,

demand for pharma products continues and the industry thrives. One of the key

reasons for high competitiveness in the industry is that as an on going concern,

pharma industry seems to have an infinite future.

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However, in recent times, the advances made in the field of biotechnology, can

prove to be a threat to the synthetic pharma industry.

PHARMA INDUSTRY: GROWTH BREAKUP

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garnering US $ 330 Mn. Business in Asia is going strong with India clocking salesof around US $ 300 Mn with market leadership in several business segments,

backed by strong brand-building skills.

Strategy

Ranbaxy is focused on increasing the momentum in the generics business in itskey markets through organic and inorganic growth routes. Growth is well spreadacross geographies with focus on emerging markets The Company continues toevaluate acquisition opportunities in India, emerging and developed markets tostrengthen its business and competitiveness.

R&D

Ranbaxy views its R&D capabilities as a vital component of its business strategythat will provide a sustainable, long-term competitive advantage. The Company

has a pool of over 1,200 scientists engaged in path-breaking research.

Ranbaxy is among the few Indian pharmaceutical companies in India to havestarted its research program in the late 70's, in support of its global ambitions. Afirst-of-its-kind world class R&D centre was commissioned in 1994. Today, theCompany's multi-disciplinary R&D centre at Gurgaon, in India, houses dedicatedfacilities for generics research and innovative research. The robust R&Denvironment for both drug discovery and development reflects the Company'scommitment to be a leader in the generics space offering value added formulations

based on its New Chemical Entity (NCE) research capabilities.

The new drug research areas at Ranbaxy include anti-infectives, inflammatory /respiratory, metabolic diseases, oncology, urology and anti-malaria therapies. TheCompany has signed collaborative research programs with GSK and Merck.

People

The Companys business philosophy based on delivering value to its stakeholdersconstantly inspires its people to innovate, achieve excellence and set new global

benchmarks. Driven by the passion of its over 12,000 strong multiculturalworkforce comprising over 50 nationalities, Ranbaxy continues to aggressively

pursue its mission to become a Research-based International Pharmaceutical

Company and attain a true global leadership position.

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Life at Ranbax y

A career at Ranbaxy means an opportunity for ample learning & growth. It offersavenues to work across the globe along side the finest minds. The Company offersa challenging assignment, a world class working environment, professionalmanagement, competitive salaries, stock options along with exceptional rewards.

If you have an appetite for challenges, we have an exciting career for you

Opportunities

The global spread of Ranbaxy and the blazing growth in business provides ampleopportunities for our employees to build careers in various fields. Opportunitieshave never been a constraint for the deserving. We believe in employee growththat goes beyond vertical movements and change in designations. Potential and

performance are the pillars of career progression at Ranbaxy. A robustdevelopment process supports this.

Our managers will generally have the opportunity to live and work in different

countries; such international experience will help them better understand ourcomplex business and grow both personally and professionally.

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Salary and Benefits

Salaries and other benefits in Ranbaxy are comparable with the best in the industryand one can expect to be rewarded highly if the performance is consistentlyoutstanding.

Group Life Insurance, Medical Insurance and Pension plans are a few examples ofthe benefits we provide to our employees and their dependents with adequatefinancial protection on long term basis.

Stock Ownership

The ownership in business is fundamental to personal progression, we encourageyou to take ownership of your investments.

Stock ownership is a part of the compensation for our managers early in theircareer at Ranbaxy: you will see the business results straight in your pay slip!

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CORPORATE PROFILE OF RANBAXY

Board of Directors

Dr.Tsutomu Une

Chairman Non Executive and Non independent Director

Mr.Atul Sobti

CEO and managing Director

Mr.Takashi Soda

Non Executive Director

Mr.Rajesh V. Shah

Independent Director

Executive Team

Mr. Atul Sobti

Chief Executive Officer & Managing Director

Mr. Ramesh L. AdigePresident, Corporate Affairs & Global Corporate Communications

Mr. Dipak Chattaraj

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President, Corporate Development & Strategy

Dr. Sudarshan K. Arora

President, R&D (Generics, NDDS & Drug Development)

Mr. Omesh Sethi

Chief Financial Officer

Mr. Arun Sawhney

President, API GBU, Global Manufacturing & Supply Chain

Mr. Bhagwat YagnikHead Global Human Resources

Mr. David BriskmanChief Information Officer

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DIFFERENT PROMOTIOANL TOOLS

Promotional mix

It is helpful to define the five main elements of the promotional mix before

considering their strengths and weakness

Advertising

Advertising is any paid form of non personal communication of ideas and productsin the prime media i.e. television, newspaper, magazines, billboard posters,

radio, cinema etc. Advertising is intended to persuade and to inform.

Direct marketing

Direct marketing creates direct relationship between customer and the business on

an individual basis.

Personal selling

Personal selling refers to oral communication with potential buyers of a product

with the intention of making of sale.

Sales promotion

Sales promotion refers to the provision of incentives to customer or the

distribution channel to stimulate demand for a product.

Public relation

Public relation is the communication of brands , product or business by placing

information about it in the media without paying for the time or media space

directly.

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PHARMACEUTICALS MARKETING IN RANBAXY

Pharmaceutical marketing is the business of advertising or otherwise promoting

the sale of pharmaceuticals ordrugs.

Mass marketing of prescription medications was rare until recently, however. It

was long believed that since doctors made the selection of drugs, mass marketing

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

thought to be cheaper and just as effective. This would involve ads in professional

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

part of these efforts was marketing to medical students.

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

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

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

been practiced. Mass marketing of prescription medications was rare until

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

drugs, mass marketing was a waste of resources; specific ads targeting the medical

profession were thought to be cheaper and just as effective. This would involve

ads in professional journals and visits by sales staff to doctors offices and

hospitals. An important part of these efforts was marketing to medical students.

Direct and indirect marketing to health care providers

Physicians are perhaps the most important component in pharmaceutical sales.

They write the prescriptions that determine which drugs will be used by the

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patient. Influencing the physician is the key to pharmaceutical sales. Historically,

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

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

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

Sales representatives called upon physicians regularly, providing information andfree drug samples to the physicians.

This is still the approach today; however, economic pressures on the industry are

causing pharmaceutical companies to rethink the traditional sales process to

physicians.

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

physician network, will adopt new guidelines prohibiting physicians and

researchers from accepting gifts from pharmaceutical manufacturers. This will

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

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

fellowships will also be required to be centrally reviewed and approved.

Pharmaceutical companies are developing processes to influence the people who

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

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

interaction with pharmaceutical companies, patients, and public or private

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

determine the influencers and buying motives of physicians.

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

pharmaceutical marketing.

Individual research

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

PDAs with applications.

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

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

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

representatives at their place of employment or at conference exhibitions.

Peer influence

Key opinion leaders

Key opinion leaders (KOL), or "thought leaders", are respected individuals, suchas prominent medical school faculty, who influence physicians through their

professional status. Pharmaceutical companies generally engage key opinion

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

marketing feedback.Some pharmaceutical companies identify key opinion leaders

through direct inquiry of physicians (primary research).

Colleagues

Physicians acquire information through informal contacts with their colleagues,

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

influential colleagues through commercially available prescription writing and

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

acquire educational information from respected peers. These meetings are

sponsored by some pharmaceutical companies.

Direct physician contact with pharmaceutical sales representatives

A pharmaceutical representative will often try to see a given physician every few

weeks. Representatives often have a call list of about 200 physicians with 120

targets that should be visited in 1-2 week cycles.

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Because of the large size of the pharmaceutical sales force, the organization,

management, and measurement of effectiveness of the sales force are significant

business challenges. Management tasks are usually broken down into the areas of

physician targeting, sales force size and structure, sales force optimization, call

planning, and sales forces effectiveness.

A few pharmaceutical companies have realized that training sales representatives

on high science alone is not enough, especially when most products are similar in

quality. Thus, training sales representatives on relationship selling techniques in

addition to medical science and product knowledge, can make a difference in salesforce effectiveness. Specialist physicians are relying more and more on specialty

sales reps for product information, because they are more knowledgeable than

primary care reps.

Physician targeting

Marketers attempt to identify the universe of physicians most likely to prescribe a

given drug. Historically, this was done by measuring the number of total

prescriptions (TRx) and new prescriptions (NRx) per week that each physician

writes. This information is collected by commercial vendors. The physicians are

then "deciled" into ten groups based on their writing patterns. Higher deciles are

more aggressively targeted. Some pharmaceutical companies use additional

information such as:

profitability of a prescription (script),accessibility of the physician,

tendency of the physician to use the pharmaceutical company's drugs,

effect of managed care formularies on the ability of the physician to prescribe a

drug,

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Recent years have seen an increase in mass media advertisements for

pharmaceuticals. Expenditures on direct-to-consumer (DTC pharmaceutical

advertising) have more than quintupled in the last seven years since the FDA

changed the guidelines.

PHARMA MARKETING AND ITS CHALLENGES

While many pharmaceutical companies have successfully deployed a plethora of

strategies to target the various customer types, recent business and customer trends

are creating new challenges and opportunities for increasing profitability. In the

pharmaceutical and healthcare industries, a complex web of decision-makers

determines the nature of the transaction (prescription) for which direct customer

(doctor) of pharma industry is responsible . Essentially, the end-user (patient)

consumes a product and pays the cost .

Use of medical representatives for marketing products to physicians and to exert

some influence over others in the hierarchy of decision makers has been a time-

tested tradition. Typically, sales force expense comprises an estimated 15 percent

to 20 percent of annual product revenues, the largest line item on the balance

sheet. Despite this other expense, the industry is still plagued with some very

serious strategic and operational level issues.

From organizational perspective the most prominent performance related issuesare

Enlisted below:

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Increased competition and unethical practices adopted by some of the

propaganda base companies.

Low level of customer knowledge (Doctors, Retailers, Wholesalers).

Poor customer (both external & internal) acquisition, development and

retention strategies

Varying customer perception.

The number and the quality of medical representatives

Very high territory development costs.

High training and re-training costs of sales personnel.

Very high attrition rate of the sales personnel.

Busy doctors giving less time for sales calls.

Poor territory knowledge in terms of business value at medical

representative level .

Unknown value of revenue from each retailer in the territory

Absence of ideal mechanism of sales forecasting from field sales level,

leading to huge deviations

Patents

Patents are a vital aspect of the global pharma industry. Patent protection is

essential to spur basic R&D and make it commercially viable. But, only the

developed nations endorse product patents. Most third world countries have patent

laws but enforcement is totally lax.

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New Drug Approval (NDA)

Prior to launching its products in any country, a pharma company undertakes

patent registration to protect its own interests. To protect the interests of theconsumers, it is necessary that the product be approved by the drug authorities in

that country. Mostly the process for seeking approval is initiated alongside the

patent registration process.

WTO

Due to pressure from the developed countries, across the world uniformity in

patent laws is being implemented under WTO (World Trade Organization - earlier

GATT i.e. General Agreement on Tariffs & Trade). Presently, different countries

have different patent types and life period. WTO has decided upon a product

patent life of 20 years in all countries.

RESEARCH & DEVELOPMENT (R&D)

The pharmaceutical industry is characterized by heavy R&D expenditure. It is

only the large pharmaceutical companies who can allocate significant resources

for R&D to introduce new products. As the products are an outcome of significant

R&D expenditures incurred by these companies, they have their products patented.

The patent allows the companies concerned to wield immense pricing power for

their new products.

THE COMPETITION

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Super Core Model

Involving the search for, and distribution of a small number of drugs

from TherapyChronic Area that achieve substantial global sales. The success of

this model depends on achieving large returns from a small number of drugs in

order to pay for the high cost of the drug discovery and development process for a

large number of patients. Total revenues are highly dependant on sales from a

small number of drugs.

This model incorporates highly specialized approach in all the manner . Initially

the competition is seems more at entry level but since growth is stable and more in

this area;

Every company is striving very hard to enter in this area. The major strategy in

this model involves right focus to highly specialized customer by well trainedteam.

Core Model

In which a larger number of drugs from Acute Threapy Area are marketed to big

diversified markets. The advantage of this model is that its success is not

dependant on sales of a small number of drugs. Here presenting a large number of

product and taking the advantage of opportunity cost is one of the importantstrategy Other strategy includes daily reminders to cross the perceptual filter and

get the brand name in to the sub-conscious state of mind.

SALES PROMOTION ACTIVITY THROUGH MEDICAL

REPRESENTITIVE

Job description

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Medical sales representatives are a key link between medical and pharmaceuticalcompanies and healthcare professionals. They work strategically to increase theawareness and use of a companys pharmaceutical and medical products insettings such as general practices, primary care trusts and hospitals.

Based in a specific geographical location, and usually specializing in a particularproduct or medical area, medical sales representatives try to ensure clients areaware of, buy and subsequently use their company's products. They may alsomake presentations and organize group events for healthcare professionals, as wellas working with contacts on a one-to-one basis.

Typical work activities

In particular, typical work activities include:

Arranging appointments with doctors, pharmacists and hospital medical teams,which may include pre-arranged appointments or regular 'cold' calling;

Making presentations to doctors, practice staff and nurses in GP surgeries,hospital doctors, and pharmacists in the retail sector. Presentations may take

place in medical settings during the day or may be conducted in the eveningsat a local hotel or conference venue;

organizing conferences for doctors and other medical staff;

building and maintaining positive working relationships with medical staff andsupporting administration staff e.g. receptionists;

managing budgets (for catering, outside speakers, conferences, hospitality,etc);

keeping detailed records of all contacts and reaching (and if possible

exceeding) annual sales targets;

Planning work schedules and weekly and monthly timetables. This mayinvolve working with the area sales team or discussing future targets with thearea sales manager. Generally, medical sales executives have their own

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regional area of responsibility and plan how and when to target healthprofessions;

regularly attending company meetings, technical data presentations andbriefings;

keeping up with the latest clinical data supplied by the company andinterpreting, presenting and discussing this data with health professionalsduring presentations;

monitoring competitor activity and competitors' products;

developing strategies for increasing opportunities to meet and talk to contactsin the medical and healthcare sector

staying informed about the activities of health services in a particular area;

Working with team managers to plan how to approach contacts and creatingeffective business plans for making sales in a particular area.

CHAPTER- 2SWOT ANALYSIS

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SWOT ANALYSIS

STRENGTHS:

Low cost of production.

Large pool of installed capacities

Efficient technologies for large number of Generics.

Large pool of skilled technical manpower.

Increasing liberalization of government policies.

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WEAKNESS:

Fragmentation of installed capacities.

Low technology level of Capital Goods of this section.

Non-availability of major intermediaries for bulk drugs.

Lack of experience to exploit efficiently the new patent regime.

Very low key R&D.

Low share of India in World Pharmaceutical Production

Very low level of Biotechnology in India and also for New Drug Discovery

Systems.

Lack of experience in International Trade.

Low level of strategic planning for future and also for technology

forecasting.

OPPORTUNITY:

Aging of the world population.

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Growing incomes.

Growing attention for health.

New diagnoses and new social diseases.

Spreading prophylactic approaches.

Saturation point of market is far away.

New therapy approaches.

New delivery systems.

Spreading attitude for soft medication (OTC drugs).

Spreading use of Generic Drugs.

Globalization

Easier international trading.

New markets are opening.

THREATS:

Containment of rising health-care cost.

High Cost of discovering new products and fewer discoveries.

Stricter registration procedures.

High entry cost in newer markets.

High cost of sales and marketing.

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Competition, particularly from generic products.

More potential new drugs and more efficient therapies.

Switching over form process patent to product patent.

CHAPTER- 3

MISSION AND VISIONSTATEMENT

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MISSION AND VISION STATEMENT OF RANBAXY LAB.

MISSION:

To become a research based international pharmaceutical company.

VISION:

Achieving customer satisfaction is fundamental to our business.

Provide product and service of the highest quality.

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Practice dignity and equity in relationship and provide opportunity for

people to realize their potential.

Foster mutually beneficial relation, with all our business partner.

Manage our operation with high concern for strategy and environment.

Be a responsible corporate citizen.

VISION2012:

Achieve significant business in proprietary prescription product by 2012 a

strong presence in developed market.

ASPIRATIONS 2012:

Aspire to be a $5bn company.

Become a top global generic player.

Significant income from proprietary product.

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CHAPTER- 4

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PRODUCT PROFILE

DETAILS OF RANITIDINE- 150mg MOLECULE

Structure of Ranitidine hydrochloride:

Ranitidine Hydrochloride- C13H22N4O3S.HCl

Composition:

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RANITIDINE 150 mg: Each tablet contains ranitidine hydrochloride

equivalent to 150 mg ranitidine.

Pharmacological Action:

Ranitidine hydrochloride is a histamineH2-receptor antagonist that

inhibits stomach acid production. It is commonly used in treatment ofpeptic

ulcerdisease (PUD) and gastro esophageal reflux disease (GERD).

Ranitidine is also used alongside antihistamines for the treatment of skin

conditions such as hives.

Indications:

Ranitidine is indicated for the treatment of duodenal ulcers, benign gastric ulcer

including prevention of duodenal ulceration associated with non-steroidal anti-

inflammatory agents, reflux oesophagitis.

To minimize the consequences of acids-aspiration syndrome during anesthesia,

ranitidine is used as premedication to reduce volume and acid content of gastric

secretion.

Doses and Direction for Use:

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Peptic ulceration: Usual dosage is 150 mg twice daily, taken in the morning

and before retiring.

Reflux-oesophagitis: Treatment for 8 up to 12 weeks with RANITIDINE

150 mg twice daily.

Maintenance treatment: Patients, particularly those with a history of a

recurrent ulcer, should be advised to take 150 mg at bedtime.

Anesthesia: 300 mg RANITIDINE given 2 hours before induction, in order

to reduce the volume and acid content of gastric secretion, will minimize the

consequences of the acid aspiration syndrome.

Side -Effects:

Headache, lethargy, diarrhea, constipation, nausea, vomiting, and skin rash such

kind of Side-effects arise.

HISTAC

HISTAC is a product name of Ranbaxy Brand which is made up from

Ranitidine-150mg molecule

COMPETITORS OF HISTAC tab.

ZINETAC------------GSK

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ULTAC-------------- CIPLA

ULFAST-------------SUN Pharma.

INTAC---------------DWD

PEPLOC-------------ZYDUS CADILA

MANOTAC---------MANO R-LOC---------------ZYDUS ALIDAC

RENITAB----------MAICROLAB

ULCITAB----------THEMIS

ZORAN------------DR.REDDY

ZOMOTAC-------EMCURE

RANTAC---------J.B.CHEMECALS

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To study the culture of Ranbaxy Lab.

To study the competitors of Histac in pharma market

Types of Research

Data source:

Primary data was used to for the analysis and drawing conclusion.

Secondary data was used for the study of overall pharma market.

Research Instrument:

A questionnaire containing a set of questions was presented to the Doctors for

their answering.

Contact method:

All the respondents were personally interviewed.

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2.SELECTION POSSIBILITY OF ANTIULCERANT DRUG FOR

THE ACIDITY DIESESE PATIENTS

HISTAC ZINETAC RANTAC ULTAC

37% 35% 32% 28%

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CHAPTER- 7

ABOUT RANBAXY

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RANABXY PRODUCTS DOING WELL IN MARKET

Top 20 Molecules

Simvastatin

AmoxiClav Potassium

Isotretinoin

Amoxycillin and Combinations

Ciprofloxacin and Combinations

Ketorolac Tromethamine

Omeprazole and Combinations

Cefuroxime Axetil

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Cephalexin

Loratadine and Combinations

Clarithromycin

Ginseng+Vitamins

Diclofenac and Combinations

Ranitidine

Cefaclor

Cefpodoxime Proxetil

Efavirenz

Atorvastatin and Combinations

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Fenofibrate

Ofloxacin and Combinations

TOP COMPETITORS OF RANBAXY IN PHARMA MARKET

Cipla Ltd.

Dr. Reddy'S Laboratories Ltd

Nicholas Piramal India Ltd.

Glaxosmithkline Pharmaceuticals Ltd

Cadila Healthcare Ltd.

Pfizer Ltd.

Sun Pharmaceutical Inds. Ltd

Wockhardt Ltd

Aventis Pharma Ltd

Biocon Ltd

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CHAPTER-8

FINDINGS AND CONCLUSION

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FINDINGS

Indian companies are putting their act together to tap their retail genericmarket in the regulated high margin markets of the developed countries.Dueto size the US market will remain the most lucrative market for the Indiancompanies

Indian drug market, with their chemistry skills and low cost manufacturinghave an edge in the business Indian firms are argually the worlds best indrug development with their superiority establishsed in the process

development ,they are refining their legal skills to fight the innovatorcompanies in patent challenges .The other important ingredients inmarketing/ distribution.

Ranbaxy holds its streingths in Active pharma Ingredients (APIs) andformulation development manufacturing in both the domestic andinternational market.Ranabaxy is also major exporter of technology which is

presently sold companies in china, Canada ,germany, UK,USA ,many more

From above diagrammatic representation it is found that opinionof Doctors towards Ranbaxy, Good are 28% and Best is 72%

Selection possibility of antiulcerant drug for acidity patients allabout nearer to same

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Histac- 37%

Zinetac- 35%

Ranatac- 32%

Ultac- 28%

CONCLUSION

There can be various ways through which a business organization can achieve

success in the market, but all those ways can be comprised into as above, then it

can be rightly said that it revolves specifically around three parties or more; the

triangular linkages or the relationship between these three parties (company,

customers and competitors) determine the success and failure of business

organization. In the medium to long run, the domestic pharmaceutical market will

be largely driven by the increasing prevalence of chronic segment. The basis of

success in any competitive context can be, at the most, elemental level commercial

success; and commercial success can be derived either from a cost advantage or a

value advantage or ideally from a combination of both. In other words, the

organization with Competitive Advantage tends to be the cost leader in the

industry or a seller of most differentiated products amongst all the players.

At last the role of supply chain is very prominent in both the phases (in acute as

well as in chronic). But the successes of any pharmaceutical industry; when a

company changes its concentration from Acute to Chronic therapy market

depend on competitiveness of supply chain. Supply Chain Managers can provide

considerable value to their companies by understanding the customers' delivery

requirements. A very powerful tool for understanding these requirements is

account segmentation. A company can use account segmentation to identify

market segments Such as Acute & Chronic therapy market. Which is well

positioned to serve and then organize its product range and even SKUs and

service in a superior way.

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CHAPTER- 9

BIBLIOGRAPHY

Bibliography

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A Textbook of Marketing management A Textbook of Marketing communication

www.ranbxy.com

www.en.wikipedia.org/wiki/ranbaxy

www.bharatbook.com/.detail.asp?=44690

www.news.pharma-mkting.com/

www.pharmabiz.com/article/detnews

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CHAPTER- 10

QUESTIONNA I RE

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ANNEXURE (QUESTIONNAIRE)

NAME:

AGE:

GENDER:

YEAR OF EXPERIENCE:

Q1-How many patients do you treat in a single day?

1) 1-10, 2) 11-20, 3) 21-30, 4) 31-40

Q2-What is your opinion about Ranbaxy Products quality?

1) Good 2) Best 3) Poor 4) Bad

Q3-How many Ulcer Disease patients do you treat in a single day?

1) 1-10, 2) 11-20, 3) 21-30, 4) 31-40

Q4-Mostly following which kind of drug does preferring for ulcer disease patient?

1) Histac 2) Zinetac 3)Rantac 4)Ultac

Q5-What is your view about effect of Histac Tab.?

1) Good 2) Best 3) Average 4) Poor

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G LOSSARY

Advertising. Any form of marketing communication in the paid media.

Agent. A channel institution which represents one or more suppliers for a feeconsiderations.

Budget. An amount of money set aside to cover the total cost of a communicationcampaign or other marketing activity.

Comparative advantage. One country enjoying a lower production ratio (inputto outputs) than another country under total specialization.

Competition. A product, organization or individual, in either the same or anothercategory which can be directly substituted one for the other in fulfilling the sameneeds or wants.

Competitive strategy. The adoption of a specific target market and marketingmix stance in the market place.

Cooperative. A collection of organizations or individuals, pooling their resourcesin order to gain commercial or non-commercial advantage in buying, selling or

processing goods and/or services.

Culture. The sum total of learned behavioral characteristics or traits which aremanifest and shared by members of a particular society.

Distribution channel. An institution through which goods or services are

marketed giving time and place utilities to users..Exporting. The marketing of surplus goods produced in one country into anothercountry.

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CHAPTER- 12

ABBREVIATIONS

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ABBREVIATIONS

NCE- New Chemical Entities

QA- Quality assurance

PV- Pharmacovigilance

PDR -Physician's Desk Reference

KOL- Key opinion leaders

DTC-direct-to-consumer

PUD- peptic ulcer disease

GERD-gastro esophagel reflux disease