Usage and Attitude of Consumer Toward Pharmaceutical Over the Counter (OTC) Product

AProject Report

on

“Usage and Attitude of Consumer towards Pharmaceutical Over The Counter (OTC) Product”

in partial fulfillment of the requirement of

Master in Management Studies (MMS)

conducted by

Rizvi Institute of Management Studies and Research

under the guidance ofDR. KALIM KHAN

Submitted by:REHAN FAQUIH

ROLL NO. 83MMS (MARKETING)

2009-11

Acknowledgement

I would like to express my sincere gratitude to everyone who have helped & supported me

during the duration of my project. First of all, I would like to thank the Almighty Allah without

whom none of this would be possible. I am eternally grateful for the invaluable mentorship of

my guide, Dr Kalim Khan, Director, Rizvi Institute of Management Studies and Research

who acts as the backbone of the entire support system. His timely guidance, right from the initial

stages of conceptual inception and through ongoing advice & encouragement to this day has

made the completion of the project possible.

I also wish to thank Talha Khan, Nawaf Ghansar, Raees Basri and all the medical professionals

who were part of my respondent base for their invaluable support, suggestions and time during

the course of the project.

It will not be fair if I do not thank my parents for their undivided support and interest which

inspired me and encouraged me to go my own way, without whom I would be unable to

complete my project. Last but not the least I want to thank my friends and fellow batch mates

who appreciated me for my work and motivated me to finish the project.

Rehan Faquih

Roll No: 83

MMS (Marketing)

2009-2011

Declaration

I declare that the project titled “Usage and Attitude of Consumer towards Pharmaceutical

Over The Counter (OTC) Product” is a record of the research carried out by me during the

academic year 2009-2011 under the guidance of my guide Dr. Kalim Khan, Director, Rizvi

Institute of Management Studies and Research.

I also declare that this project is the result of my effort and has not been submitted to any other

university for the award of any degree, or personal favor whatsoever. All the details and analysis

provided in the report hold true to the best of my knowledge.

Rehan Faquih

Roll No: 83

MMS (Marketing)

2009-2011

Certificate

This is to certify that Mr. Rehan Faquih, a student of Master in Management Studies (MMS),

bearing Roll No. 83, from Rizvi Institute of Management Studies and Research, specializing in

Marketing has successfully completed the project titled,

“Usage and Attitude of Consumer towards Pharmaceutical Over The Counter OTC

Product”

under the guidance of Dr. Kalim Khan, Director, Rizvi Institue of Management Studies and

Research in partial fulfillment of the requirement of Master in Management Studies (MMS), by

Rizvi Institute of Management Studies and Research , for the academic year 2009-11.

______________________

Prof. (Dr.) Kalim Khan

Project Guide

__________________________

Prof. Umar Farooq Dr. Kalim Khan

Academic Coordinator Director

Executive Summary

The research was started with the objective to “Study the consumer behaviour towards the

Pharmaceutical OTC product in the city of Mumbai”. The research was carried out with the view

to analyze the usage and attitude of consumers like Doctors, Chemist, and Customers etc. with

respect to the age, marital status, occupation, nature of family, size of family factors, etc. to

identify the decision maker and the influencer for the purchase of OTC medicine made by

consumers. A structured – undisguised questionnaire was administered for a sample size of 120

which included Doctors, Chemists and Customers from distinct geographical areas of the

Mumbai city. With the help of the data collected the results were analyzed, tabulated, and

interpreted.

The inferences were drawn out with the help of statistical analytical tools. From the findings few

recommendable suggestions had been opined for the marketers and manufacturers to recognize

that OTC market is a lucrative consumer segment especially with the high competition in market,

as lots of patents are expiring in near future. It is important for companies to make better strategy

and create awareness amongst the consumers so, that they can judge on their own which OTC

medicine needs to buy to treat minor ailments so, it would be easy to switch prescription drug to

OTC drug which would help the companies to overcome the generic competition and create an

healthy portfolio of OTC product in future, which would reap high growth potentials.

The Indian OTC pharmaceuticals market generated total revenues of $2.5 billion in 2010. The

market has grown significantly over the last five years at a CAGR of 8.6%. In contrast, the US

market has witnessed a moderate expansion, with a CAGR of 4.3% for the equivalent period

leading to total revenues of $21.2 billion in 2010.

The leading revenue source for the Indian OTC pharmacy market is the traditional medicines

sector, which generated revenues of $679.3 million in 2010, equivalent to 27.3% of the market's

value. In comparison, the cough and cold preparations sector was worth $492.5 million, which

represented 19.8% of the market's revenues.

This research paper viewed the usage and attitude of pharmaceutical OTC drugs. It also found

the influence of current marketing practices in the pharmaceutical sector through different

channels, and their impact on consumers and doctors’ buying behaviour. The research found

some negative impacts like less education and awareness amongst the consumers which included

misleading advertising, disease mongering and rising costs. It argued the need to move from

industry self regulation to an independently monitored code of practice by doctors for

pharmaceutical marketing. Rural India and modern India trusted self medication in treating

minor ailments not as like in Europeans who rely on neighbourhood pharmacist for similar

ailments, North Americans rely more on the advice of doctors. In countries where healthcare

infrastructures and economies are developing, opportunities exist to lessen the extensive burden

consumers currently put on doctors and help governments reduce their healthcare expenditure.

Self medication using over the counter products in India had been common. OTC Products

Medico marketing, is the business of advertising or otherwise promoting the sale of OTC

pharmaceuticals or drugs

Thus looking at the dynamics of the consumer segment of Pharmaceutical OTC a research was to

be carried out to get the insights of the consumers to know their usage pattern of buying OTC

drug. The factors that played major role in selecting a specific branded OTC drug to the factors

that plays major role in making a purchase decision whilst buying OTC medicine were studied.

The paper started with the presentation of the relevant literature in the area of buying behaviour

and then the research hypothesis was described. After that the methodology followed to develop

the study was presented with a special reference to the sample method, data collection and

statistics. Next, the results were presented and discussed and finally the conclusions were drawn.

Table of ContentsCHAPTER NO 1: OVERVIEW OF PHARMACEUTICAL INDUSTRY..............................1

1.2. MANUFACTURING PROCESS.............................................................................................................2

1.3. RESEARCH & DEVELOPMENT............................................................................................................2

1.4. PATENTS - A PROJECTION.................................................................................................................2

1.5. THERAPEUTIC MARKET SEGMENTATION..........................................................................................2

CHAPTER NO 2: INTRODUCTION OF PHARMACEUTICAL INDUSTRY.....................2

2.3. INDUSTRY TRENDS............................................................................................................................2

2.4. KEY CHALLENGES..............................................................................................................................2

2.5. MAJOR PLAYERS IN THE MARKET.....................................................................................................2

2.6. CONCLUSION....................................................................................................................................2

CHAPTER NO 3: INDIAN PHARMACEUTICAL INDUSTRY.............................................2

3.1. HISTORY............................................................................................................................................2

3.1.1. The Policy Regime since 1970s..................................................................................................2

3.1.2. Post-Liberalisation.....................................................................................................................2

3.2. INDUSTRY STRUCTURE......................................................................................................................2

3.3. INDUSTRY SEGMENTATION..............................................................................................................2

3.3.1. Bulk Drugs..................................................................................................................................2

3.3.2. Formulations..............................................................................................................................2

3.3.3. Contract Research and Manufacturing......................................................................................2

3.4. CRITICAL SUCCESS FACTORS.............................................................................................................2

3.4.1. New Product Development........................................................................................................2

3.4.2. Therapeutic Coverage................................................................................................................2

3.4.3. Exports.......................................................................................................................................2

3.4.4. Low Cost Production through Scale...........................................................................................2

3.5. PHARMACEUTICAL REGULATORY BODIES IN INDIA..........................................................................2

3.5.1. National Pharmaceutical Pricing Authority (NPPA)....................................................................2

3.5.2. Central Drugs Standard and Control Organization (CDSCO)......................................................2

3.5.3. Department of Chemicals & Petrochemicals (DCP)...................................................................2

CHAPTER NO 4: COMPETITIVE ANALYSIS OF PHARMACEUTICAL INDUSTRY...2

4.1. PORTERS 5 FORCE ANALYSIS OF INDUSTRY......................................................................................2

4.2. PEST ANALYSIS..................................................................................................................................2

4.3. SWOT ANALYSIS................................................................................................................................2

CHAPTER NO 5: PHARMACEUTICAL OTC MARKET......................................................2

5.1. LABELING REQUIREMENTS...............................................................................................................2

5.2. ADVERTISING REQUIREMENTS.........................................................................................................2

5.3. PRESCRIPTION TO OTC SWITCH........................................................................................................2

5.4. WORLD SCENARIO OF OTC MARKET.................................................................................................2

5.4.1. US OTC Pharmaceuticals Market...............................................................................................2

5.4.2. European OTC Pharmaceuticals Market....................................................................................2

5.5. INDIAN SCENARIO OF OTC MARKET.................................................................................................2

5.6. MAJOR PLAYERS OF OTC PHARMACEUTICAL MARKET IN INDIA.......................................................2

5.6.1. Proctor & Gamble......................................................................................................................2

5.6.2. Dr. Morepen Limited.................................................................................................................2

5.6.3. GlaxoSmithKline Consumer Limited...........................................................................................2

5.6.4. Zydus Cadila...............................................................................................................................2

5.6.5. Novartis.....................................................................................................................................2

5.6.6. Paras Pharmaceuticals Private Limited......................................................................................2

CHAPTER NO 6: CONSUMER BUYING BEHAVIOUR.......................................................2

6.1. OTC CONSUMER MARKET.................................................................................................................2

6.1.1. Buyers of OTC Product...............................................................................................................2

6.1.2. The Market to Buy Different Kinds of OTC Medicine.................................................................2

6.1.3. Buying Process (Purchase Purposes)..........................................................................................2

6.1.4. Time to Buy................................................................................................................................2

6.1.5. Place to Buy...............................................................................................................................2

6.2. OTC BUYER BEHAVIOR FACTORS......................................................................................................2

6.2.1. Cultural Factors..........................................................................................................................2

6.2.2. Social Factors.............................................................................................................................2

6.2.3. Personal Factors........................................................................................................................2

6.3. OTC CONSUMER DECISION-MAKING................................................................................................2

6.3.1. Buy the Role of..........................................................................................................................2

6.3.2. Buying Behavior.........................................................................................................................2

6.4. OTC PURCHASE PROCESS..................................................................................................................2

6.4.1. Awareness of the Issue..............................................................................................................2

6.4.2. Information Gathering...............................................................................................................2

6.4.3. The Evaluation of OTC Drugs.....................................................................................................2

6.4.4. Purchase Decision-Making.........................................................................................................2

6.4.5. Post-Shopping Behavior.............................................................................................................2

CHAPTER NO 7: RESEARCH METHODOLOGY.................................................................2

7.1. NEED FOR PROJECT...........................................................................................................................2

7.2. RESEARCH OBJECTIVE.......................................................................................................................2

7.3. LIMITATION OF THE STUDY...............................................................................................................2

7.5. RESEARCH DESIGN............................................................................................................................2

7.6. SOURCE OF DATA..............................................................................................................................2

7.7. SAMPLING PROCEDURE....................................................................................................................2

7.8. SAMPLING TECHNIQUE.....................................................................................................................2

CHAPTER NO 8: DATA ANALYSIS AND INTERPRETATION..........................................2

8.1 RESPONDENT PROFILE.......................................................................................................................2

8.2. DESCRIPTIVE ANALYSIS.....................................................................................................................2

8.3. DATA INTERPRETATION OR ADVANCE ANALYSIS..............................................................................2

8.3.1. Cross Tab...................................................................................................................................2

8.3.2. Advanced Analysis.....................................................................................................................2

CHAPTER 9: SUGGESTION AND RECOMMENDATION...................................................2

9.1. SUMMARY OF ANALYSIS...................................................................................................................2

9.2. RECOMMENDATION.........................................................................................................................2

CONCLUSION..............................................................................................................................2

QUESTIONNARIE.......................................................................................................................2

LIST OF FIGURE.........................................................................................................................2

LIST OF TABLE...........................................................................................................................2

BIBLIOGRAPHY..........................................................................................................................2

Usage & Attitude of Consumers towards Pharmaceutical OTC Products 1

CHAPTER NO 1: OVERVIEW OF PHARMACEUTICAL INDUSTRY

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, ant diabetic are

growing at double-digit rates. The growth of a company in the domestic market is thus critically

dependent on its therapeutic presence.

Rehan Faquih Rizvi Institute of Management Studies & Research


1.1. 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.

Fig.1.1: Branches of Medical Science

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

1. Allopathy: It is known as the modern medicine and world over the pharmaceutical industry is

focused upon it.

2. 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.


Medical Science

Allopathy Siddha Unani Homeopathy NaturopathyAyurvedic


3. 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 account a patient’s

age, sex, race, habits, environment, diet , physiological constitution and so forth. Siddha

medicines have been effective in curing some diseases, and further work is needed to truly

understand why this system works.

4. Unani: The Unani system originated in Greece and progressed to India during the medieval

period. It involves promotion of positive health and prevention of disease. The system is

based on the humoral theory i.e. the presence of blood, phlegm, yellow bile and Allopathy

Ayurveda Siddha Unani Homeopathy Naturopathy black bile. A person’s temperament is

accordingly expressed as sanguine, phlegmatic, choleric or melancholic. Drugs derived from

plant, metal, mineral and animal origins are used in this system.

5. Homeopathy: Homoeopathy is a branch of therapeutics that treats the patient on the principle

of “SIMILIA SIMILIBUS CURENTUR” which simply means “Let likes be cured by likes”.

Homeopathy seeks to stimulate the body's defense mechanisms and processes so as to

prevent or treat illness. Treatment involves giving very small doses of substances called

remedies that, according to homeopathy, would produce the same or similar symptoms of

illness in healthy people if they were given in larger doses. Treatment in homeopathy is

individualized (tailored to each person). Homeopathic practitioners select remedies according

to a total picture of the patient, including not only symptoms but lifestyle, emotional and

mental states, and other factors.

6. Yoga and Naturopathy: Yoga and Naturopathy are ways of life. In naturopathy one applies

simple laws of nature. It advocates proper attention to eating and living habits. It also



involves hydrotherapy, mud packs, baths, massage and so forth. Yoga consists of eight

components: restraint, observance of austerity, physical postures, breathing exercises,

restraining of the sense organs, contemplation, meditation and Samadhi. Increasing interest

exists in revisiting these ancient drug systems

1.2. MANUFACTURING PROCESS

Step by step manufacturing process has been described on subsequent page.

Bulk drugs are prepared by appropriate reactions of natural/synthetic intermediate raw material

under controlled conditions.

Right dosage of the bulk drug (active ingredient) is mixed with filler substances (passive

ingredient), to make the formulation accepTab. This is done in a batch process.

Formulations are packed according to their physical form - blister strips for Tablet/Capsules,

bottles for liquids or ampoules for powders. Each pack must have price, expiry date, storage

conditions and dosage. Stringent quality control is must at each stage as per the requirement

of concern authority. The following figure shows the flow chart for manufacturing process.



Fig.1.2: Manufacturing Process


FILLER SUBSTANCE

PASSIVE INGREDIENT

(To make bulk drugs)

INTERMEDIATE RAW MATERIAL(Plant derivatives/ Animalderivatives/ Synthetic Chemical)

BULK DRUGS ACTIVE INGREDIENT(Raw medicines can’t be used formedicinal purpose)

FORMULATION(Packed with proper instructionregarding price, expiry date, storage condition and dosage)

PATIENTS(Either directly or under prescriptionof the doctors)


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 Tab.ts, 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.



1.3. 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

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,

1.3.1. 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.

1.3.2. 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 patent law will obviously, not

permit reverse engineering.



1.3.3. 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.

1.3.4. 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.

1.4. 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 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

1.4.1. 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.

1.4.2. 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 criterion drugs can be

classified as:

Under patent

Generic or off patent



1.5. 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

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:

The industry has enormous growth potential. Factors listed below determine the rising demand

for pharmaceuticals.

The growing population of over of a billion

Increasing income

Demand for quality healthcare service

Changing lifestyle has led to change in disease patterns, and increased demand for new

medicines to combat lifestyle related diseases

More than 85 per cent of the formulations produced in the country are sold in the domestic

market. India is largely self-sufficient in case of formulations. Some life saving, new generation

under-patent formulations continue to be imported, especially by MNCs, which then market



them in India. Overall, the size of the domestic formulations market is around Rs160 billion and

it is growing at 10 per cent per annum.

Market Share of Different Pharmaceutical Product Categories

Fig.1.3: Market Share of Different Pharmaceutical Product Categories

Demand for drugs for treatment of lifestyle-related diseases such as diabetes, cardiovascular

diseases, and central nervous system are on the increase. There are around 700,000 new cases of

cancer each year and total of around 2.5 million cases. It is estimated that there are around 40

million people in India with diabetes and the number is rising, 5.1 million HIV/AIDS patients,

and 14 million tuberculosis cases. According to industry reports, while the Indian pharmaceutical

industry witnessed a growth of 7 percent, the cardio-vascular segment recorded 15 to 17 percent

growth and anti-diabetes segment of over 10-12 percent growth.


5%4% 2%

5%

5%

10%

10%

10%

10%

11%

17%

Percentage of Pharmaceutical Product Categories (%)

NeuropsychiatryAntidiabeticsOpthalmologyDermatologicalGyanecologypain/analgesicvitamins/Minerals/nutrientRespiratoryCardiacGastrointestinalAnti-infective


CategoryValue

Rs in (bn)

ValueMarket Share

(%)

ValueGrowth (%)

Volume Growth(%)

Anti Infective 32.8 16.4 4 11

Gastrointestinal 21.8 10.9 8 9

Cardiac 20.7 10.3 18 15

Respiratory 20.4 10.2 9 6

Vitamin/ Mineral/Nutrient

s19.3 9.6 5 5

Pain/Analgesic 19.1 9.5 8 9

Dermatological 10.8 5.4 8 4

Gynaecology 10.7 5.3 3 -1

Neuro psychiatry 10.6 5.3 10 6

Antidiabetics 8.8 4.4 11 16



Opthologicals 3.5 1.7 18 16

Others 22 11 - -

Aggregate 200.5 100 8 9

Tab.1.1: Market Value and Market Growth of Therapeutic Segment

Historically, the low cost of domestically produced drugs together with government controlled

prices, and the absence of patent regulations had made the market less attractive for foreign

players. With the new patent laws in place the market scenario will change. Indian market will

become attractive for foreign companies.



CHAPTER NO 2: INTRODUCTION OF PHARMACEUTICAL INDUSTRY

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 Tab.

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.

2.1. 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 Rhine based family

dyestuff and chemical companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the 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 introduction of 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.



2.1.1. 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.

2.1.2. 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.

India’s traditions in the science of health and heating go back to the halcyon days of Susruta,

Vaghatta and Charska. Our systems of medicine like Ayurveda were well established and

schools and hospitals with treatises and instructions manual were in wide use.



The establishment of a modern pharmaceutical industry in India may be and to have commenced

with the setting up of Bengal Chemicals by Acharya P.C. Ray in Calcutta and of Alembic

Chemicals in Baroda, by B.D. Amin. Significant who helped the indigenous drug industry was

the establishment of the Haffkine Institute in Bombay, the King Institute in Madras in 1904 and

the Pasteur Institute in Coonoor in 1907.

2.1.3. Post Independence Development

In the post-independence years, several international pharmaceutical companies have set up

manufacturing facilities in the country. Public sector units like HAL and IDPL were also set up.

The diversified character of the industry's growth is reflected in the range and variety of products

manufactured. These cover a wide therapeutic spectrum ranging from antibiotics to vitamins.

2.2. 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 their strategies,

changing their business models to fuel their growth. For the global pharmaceutical industry, It

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 2011, while the pharmerging markets will contribute nearly

a quarter of growth worldwide . 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.



Market Market Size (US$ in billions)

Market Growth

USA. 295-305 4-5%Europe 135-145 4-5%Pharmerging 85-90 12-13%Japan 64-68 1-2%Rest of world 125-135 7-8%

Tab. No.2.1: Market Share and Market Growth of Global Market

Pharmerging market include: China, India, Brazil, Russia, Mexico, Turkey and South Korea

2.3. INDUSTRY TRENDS

2.3.1. 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 sTab. 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,

“BigPharma” 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.

“BigPharma” 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.

2.3.2. 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:

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.

2.4. 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.

2.4.1. 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 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 than those of major pharmaceutical

companies; as the result, after patent expiration, generic drugs manufacturers capture significant

market share, dramatically decreasing revenues of the “Big Pharma” companies. Finally, the

whole pharmaceutical industry competes with other health care industries. In this case,

pharmaceutical companies should not only demonstrate high efficiency of their products, but

also provide obvious proof of cost advantages in comparison with other forms of care.

2.4.2. Price Control

Pharmaceutical companies have to operate in a highly regulated environment; the degree of

regulation to a significant extent depends on the country and type of the product. One of the most

important aspects of government regulation for pharmaceutical companies is price regulation,

and different countries have different policies on this issue. In the United States –the largest and

the most attractive pharmaceutical market – currently there is no direct price control for non-

government drug sales. At the same time, it is expected that Medicare

Prescription Drug Improvement and Modernization Act will potentially increase downward price

pressure. The majority of European countries control drug prices, and this downward pressure on

prices has been increasing during last year. Japan has even stricter price controls than European

countries; all prices are controlled by the government, and they are subject to a periodic price



review. As the result of price control, prices of the same products can significantly differ in

different countries.

2.4.3. Protection of Patents

Generic drugs manufacturers represent a significant threat to research-based pharmaceutical

companies. For example, Schering-Plough’s Claritin patent expired in 2002; as the result of

generic drug competition, sales of Claritin by Schering-Plough declined from $3.2 billion in

2001 to $1.8 billion in 2002 and to $0.37 billion in 2003.Moreover, generic drugs manufacturers

sometimes start production of patent-protected drug analogues even before a patent expires.

Although research-oriented companies in many cases are able to protect their patents, they do

suffer from lost revenues. Therefore, protection of patents is one of the key conditions necessary

for further development of the pharmaceutical industry. At the same time, non-efficient

legislation that does not provide the necessary level of patent protection is one of the factors that

hamper expansion of “Big Pharma” companies to the developing countries.



2.4.4. Drugs Portfolio Management

Drug portfolio management is one of the most important determinants of long-term prosperity of

research-oriented pharmaceutical companies. First, it takes an extremely long time to develop a

new drug, and only a very small portion of all projects is successful. Projects that the company

starts today will determine its financial performance 10-15 years later. Therefore, careful

planning of R&D projects is very important for the long-term stability of the company. Second,

in so far as patents keep exclusivity of drugs only during a limited time, and soon after the

expiration of the patent the sales of the drug sharply go down, the company has to carefully

monitor its patent expiration dates, and insure that new products become available by that date.

Otherwise, we are reminded of the case of Shering- Plough, when after expiration of its major

drug patent the company did not have a new product of similar value and the company

experienced losses in 2003 and 2004. Definitely, planning errors or rapidly changing demand in

the industry can be corrected by acquisition of smaller research companies or patents from

competitors, but in any of these cases the company will have to pay a premium price, thus

reducing its profitability.

2.5. MAJOR PLAYERS IN THE MARKET

The pharmaceutical industry is characterized by a high level of concentration of multinational

companies dominating the industry. Tab. below contains information about the top 10

pharmaceutical companies across the globe that is sorted in the order of their 2009 revenues of

pharmaceutical products in terms of US dollars.



Company CountryCompany Country Total Revenues

(USD millions)

Johnson & Johnson United States 61,897

Pfizer United States 50,009

Roche Switzerland 45,304

GlaxoSmithKline United Kingdom 44,421

Novartis Switzerland 44,267

Sanofi-Aventis France 40,870

AstraZeneca United Kingdom 32,804

Abbott Laboratories United States 30,800

Tab.2.2: Major Players in Pharmaceutical Market



2.6. CONCLUSION

Given the changing trends in the industry's global value chain and gradual shifts in international

trade patterns, if the former pioneers (US, UK, Switzerland, and Germany) wish to remain

competitive, they need to expand the development of new drugs. Otherwise, they will face a

continuing of the intensified competition from developing nations that has appeared over the last

decade as outsourcing investment in drug discovery and product development has grown. Also,

as major patents expire and generic companies in countries like Israel and India enter these

markets, this will be put added pressure from emerging economies on the former pioneer nations.

The political determinants that govern the pharmaceutical industry are all regulated by the Food

and Drug Administration. The government established this organization to protect the health and

safety of all customers by ensuring the quality of all drugs produced. As a result the regulations

are extremely strict and few drugs are actually passed and reach the open market. Entering the

field takes an immense amount of capital, due to the time needed to research, test and produce

the drugs. Also drugs that have already been created are protected under WTO patents. But, once

a successful drug is marketed, the industry can be very lucrative. The demand for

pharmaceuticals is relatively Tab. even if other markets decrease in an economic slump, so with

constant research and production of new drugs, a company can benefit largely. This therefore

would ensure global competitiveness and success for a corporation; that is if the drugs also

passed the other nations regulations. Over the past 50 years, the pharmaceutical industry has

experienced tremendous growth and change. Along with this growth has come a series of

pressures to unite the industry under international standards and regulations. These international

regulatory guidelines have increased the barriers to entry in the international market and have



driven top firms to create voluntary corporate standards. Also, the idea of "corporate social

responsibility" has recently emerged as companies attempt to avoid liability issues and decrease

their impact on the environment. In addition, environmental certification issues are a becoming

driving force for change in the pharmaceutical industry. In the future, if pharmaceutical

companies are able avoid liability issues by adjusting social and environmental regulations; they

will be very competitive in the international marketplace.



CHAPTER NO 3: INDIAN PHARMACEUTICAL INDUSTRY

Pharmaceutical Industry in India is one of the largest and most advanced among the developing

countries. It is ranked 4th in volume terms and 11th in value terms globally. It provides

employment to millions and ensures that essential drugs at affordable prices are available to the

vast population of India. Indian Pharmaceutical Industry has attained wide ranging capabilities in

the complex field of drug manufacture and technology. From simple pain killers to sophisticated

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

indigenously. Indian Pharmaceutical Industry is playing a key role in promoting and sustaining

development in the vital field of medicines. Around 70% of the country's demand for bulk drugs,

drug intermediates, pharmaceutical formulations, chemicals, Tab., capsules, orals and vaccines is

met by Indian pharmaceutical industry. A number of Indian pharmaceutical companies adhere to

highest quality standards and are approved by regulatory authorities in USA and UK. The Indian

pharmaceutical industry traditionally relied on “reverse engineering” i.e. product copying,

through which vast profits were made. In recent years, however, the larger domestic companies

have realized the need to undertake original research and / or penetrate into the regulated

generics markets in the USA/EU in order to survive in the global market. At the same time, the

Indian pharmaceutical industry is renowned for supplying affordable generic versions of

patented drugs for illnesses like HIV/AIDS to some of the world’s poorest countries. Some of the

strategies that have been followed by Indian pharmaceutical companies for their growth in the

global markets have been as follows:



Geographic diversification with few companies focusing on increasing presence in the

regulated markets and others exploring the developing/under-developed markets of the

world.

As a part of diversification strategy, some of the companies have acquired brands, facilities

and businesses overseas. Some companies have even started their local marketing in foreign

markets.

Partnerships for supply of bulk drugs and formulations with the generic companies as well as

innovators.

For regulated markets such as the US, there are companies focusing on value added generics,

niche segments or patent challenges in the US.

Focus on offering research and manufacturing services on a contractual basis (CMOs and

CROs) Apart from these strategies Indian companies have to devise newer strategies

continuously to survive in the highly competitive global market in an industry that is

characterized by high capital requirement, high technical requirement, high process skills,

high value addition prospects, high export volumes, high market sophistication. Indian

companies are following the route of mergers and acquisitions to make inroads in the foreign

markets. They need to consolidate further in different parts of the world to become trans-

national players. Indian companies will have to rise above the statement of Michael Porter,

that most multi-national firms are just national firms with international operations. They shall

certainly be at an advantage, as their strong national identities will give them a competitive

advantage in the global markets.



3.1. HISTORY

The pharmaceutical industry in India has evolved through three phases over the past 50 years.

The first was the period prior to 1970, when the industry was relatively small in terms of

production capacities. The second phase spanned the late 1970s to the early 1990s, a period

during which the industry experienced policy-induced growth. In its third phase, during the

1990s, much of the regulatory structure that the Government had imposed during the previous

two decades was dismantled. Even as late as the mid-1970s, India had a relatively small

pharmaceutical industry, with a total production of just over US$ 600 million. During the

subsequent four years, the total output of the industry more than doubled, the major contribution

being made by formulations, which accounted for 85 per cent of total production. In the 70’s 43

were affiliates of foreign firms in which the parent firms' share in equity holdings exceeded 40

per cent. These foreign affiliates were deemed to be “foreign-controlled” firms, in accordance

with the guidelines stated by the Foreign Exchange Regulation Act of 1973 (commonly known

as FERA). This indicates that foreign industry had a disproportionately high share in total

production in the mid-1970s. They produced 42 per cent of bulk drugs and formulations put

together and about 38 per cent of the bulk drugs produced by the Indian industry. Major changes

that contributed in the growth of this sector are enumerated below:

3.1.1. The Policy Regime since 1970s

Three critical policy initiatives taken by the Government marked a turnaround in Indian

Pharmaceutical Industry:



a) The Drugs Price Control Order (DPCO), which was adopted in 1970.

b) Adoption of the new Patents Act, which became effective in 1972

c) Adoption of a new drug policy in 1978.

The above-mentioned policy initiatives were taken with two broad objectives in view:

(i) To develop a strategy for the expansion of the domestic pharmaceutical industry by relying

essentially on Indian enterprises, and (ii) to establish a structure for keeping the prices of drugs

within affordable limits.

3.1.1.1. DPCO, 1970

On 16 May 1970, a comprehensive order was promulgated under Section 3 of the Essential

Commodities Act and in super cession of all the earlier orders on the subject. This order was

called the Drugs (Prices Control) Order, 1970. In its introductory form, DPCO was a direct

control on the profitability of a pharmaceutical business, and an indirect control on the prices of

pharmaceuticals. The government stipulated that a company’s pre-tax profit from its

pharmaceutical business should not exceed 15% of its pharmaceutical sales (net of excise duty

and sales tax). In case profits exceeded this sum, the surplus was deposited with the government.

So, a pharmaceutical company had the freedom to decide the prices of its products. Product-wise

margins were also flexible, so long as the overall margin did not exceed the stipulated norm.

Since individual product prices did not require approval from the government, bureaucratic

hurdles were low. At that time, the Indian pharmaceutical industry was largely dominated by

MNC affiliates and subsidiaries. These MNCs were hardly affected by the relatively mild form

of DPCO and continued operating in the domestic market. However, FERA (Foreign Exchange



Regulations Act) which came in mid 70s did curb the operations of MNCs. Overall, the Indian

pharma industry prospered from 1970 to the next DPCO in 1979. The first step towards evolving

a comprehensive policy regime for the Indian pharmaceutical industry was taken by the setting

up of the Hathi Committee in 1974. The Committee had an exhaustive mandate that aimed at

the realization of the two broad objectives mentioned above. The Hathi Committee presented its

recommendations in 1975.

3.1.1.2. The Hathi Committee, 1974

The Hathi committee report which, under chapter –IV stated - “The committee believes that

health care has a direct relationship with socio economic growth of the country and a welfare

state should treat production, procurement and distribution of essential drugs, as a social

responsibility just as import as ensuring supply of food and shelter. With a view to tackling the

problem of large scale production of a Statutory Body which may be called the National Drug

Authority of India (NDA)”. The report had mentioned several functions for NDA. The

Government of India, however, did not accept this recommendation and no action was taken for

creating NDA. Thus the drug policy formulated by Government of India for the first time in

1978 did not include the concept of NDA.

3.1.1.3. The New Drug Policy of 1978

The new drug policy announced by the Government in 1978 had the following five broad

objectives:



(i) To develop a strong Indian sector with the public sector playing a leading role;

(ii) To channel the activities of the foreign firms in accordance with the national priorities

and objectives;

(iii) To deepen the production base of the domestic industry by ensuring that the production

of drugs took place from as basic a stage as possible;

(iv) To encourage research and development and improve the technological sinews of the

industry; and

(v) To provide drugs to consumers at reasonable prices.

3.1.2. Post-Liberalisation

As an integral part of economic reforms, the industrial, trade and technology policy framework

that had evolved from 1950s to late 1980s was considerably changed in the 1990s. The New

Industrial Policy (NIP) announced on 24th July 1991 and subsequent amendments brought far

reaching changes in the policy regime evolved thus far. The liberalisation of the economy in

1991 had a major impact on the two vital policies (Drug Policy and Price Controls) related to the

pharmaceutical industry which are discussed below.

3.1.2.1. Drug Policy

In September 1994, government announced a revision of the Drug Policy, 1986 making major

modifications. The modifications included: abolishing licensing policy for all bulk drugs except

those reserved exclusively for the public sector units and other using new technologies, removing



limitations on the use of imported bulk drugs, allowing foreign holdings up to 51 percent, and

automatic approval for foreign technology agreements in the case of almost all drugs. Later on,

the pharmaceutical industry was included in the list for automatic approval up to 74 per cent in

March 2000 and to 100 per cent in December 2001.

3.1.2.2. Price Controls

Another aspect of the reforms has been substantial dilution of the price controls. The Drug

Policy, 1994 liberalized the criteria for selecting drugs for price controls. In line with the changes

in drug policy a new DPCO was notified in January 1995 bringing down the number of drugs

under the ambit of price controls to 74 from 166 (as was under DPCO, 1987). These 74 drugs

accounted for only about 40 percent of the total market thus setting the bulk of the

pharmaceuticals market out of price controls. The exemption period for new drugs, produced

through indigenous R&D was also increased from 5 years to 10 years. Although, the piecemeal

reforms have been criticized for slow industrial progress gradual liberalization of the policy

regime from overbearing governmental control to subtle emergence of ‘open market’ principles

gave time and opportunity to firms and the local administration to adapt to the changing

scenarios. The policy regime adopted for the pharmaceutical industry in India thus changed from

one in which the industry was subjected to government controls in the 1970s to one that was

almost completely guided by market forces two decades later. This changed scenario can be best

understood by looking at the sharply declining number of bulk drugs under price control since

1970, the year in which the first DPCO was introduced in the country.



3.2. INDUSTRY STRUCTURE

The Pharmaceutical industry in India is fragmented with over 3,000 small/medium sized generic

pharmaceutical manufacturers. It has over 20,000 units out of which 300 units are in the

organized sector; while others exist in the small scale/unorganized sector. The leading 250

pharmaceutical companies control 70% of the market with market leader holding nearly 7% of

the market share. There are also 5 Central Public Sector Units that manufacture drugs. These

companies are:

Indian Drugs & Pharmaceuticals

Hindustan Antibiotics Ltd.

Bengal Chemical and Pharmaceuticals Ltd.

Bengal Immunity Ltd.

Smith Stanistreet Pharmaceuticals Ltd.

The Indian pharmaceutical industry consists of manufacturers of bulk drugs and formulations.

Bulk drugs include the active pharmaceutical ingredients (APIs) which are used for the

manufacture of formulations. According to estimates, the proportion of formulations and bulk

drugs is in the order of 75:25. There are over 60,000 formulations manufactured in India in more

than 60 therapeutic segments. More than 85% of the formulations produced in the country are

sold in the domestic market. India is largely self-sufficient in case of formulations, though some

life saving, new-generation-technology-barrier formulations continue to be imported. The Indian

pharmaceutical industry has the highest number of plants approved by the US Food and Drug

Administration outside the US. It also has the large number of Drug Master Files (DMFs) filed

which gives it access to the high growth generic bulk drugs market. The industry now produces



bulk drugs belonging to all major therapeutic groups requiring complicated manufacturing

processes and has also developed “good manufacturing practices” (GMP) compliant facilities for

the production of different dosage forms. Setting up a plant is 40% cheaper in India compared to

developed countries and the cost of bulk drug production is 60-70 percent less. The strength of

the industry is in developing cost effective technologies in the shortest possible time for drug

intermediates and bulk activities without compromising on quality. In accordance with WTO

stipulations, India grants product patent recognition to all New Chemical Entities.

3.3. INDUSTRY SEGMENTATION

Indian pharmaceutical industry can be widely classified into bulk drugs, formulations and

contract research. Bulk drugs are the Indian name for Active Pharmaceuticals Ingredients (API).

Formulations cover both branded products and generics. Indian pharmaceutical sector is self

sufficient in meeting domestic demand and exports successfully to various markets globally. The

existence of process patents in India till January 2005 fuelled the growth of domestic

pharmaceutical companies and developed them in areas like organic synthesis and process

engineering, as a result of which, Indian pharmaceuticals sector is able to meet almost 95 percent

of the country’s pharmaceutical needs. India is globally recognized as a low cost, high quality

bulk drugs and formulations manufacturer and supplier. Contract Research, a nascent industry in

India has witnessed commendable growth in the last few years. As per Yes Bank /OPPI report

(2007-08), formulation segment (including domestic formulation and formulation exports)

constituted 72%of the total pharmaceutical industry (in terms of sales) while bulk drugs and

contract research constituted 25% and 3% of pharmaceutical industry respectively.



49%

23%

25%

3%

Percentage Sales of Industry Segment

Domestic Formulation

Formulation Exports

Bulk Drug Exports

Contract Manufacturing

Fig.3.1: Percentage Sales of Industry Segment

3.3.1. Bulk Drugs

Bulk drug industry is the backbone of the Indian pharmaceutical industry. Growth of Indian bulk

drug industry in the last five decades has been impressive and highest among developing

countries. From a mere processing industry, Indian bulk drug industry has evolved into

sophisticated industry today, meeting global standards in production, technology and quality

control. Today, India stands among the top five producers of bulk drugs in the world. The market

is fragmented with far too many players. About 300 organized companies are involved in the

production of bulk drugs in India. Over 70 percent of India’s bulk drug production is exported to

more than 50 countries and the balance is sold locally to other formulators. Indian bulk drug

industry is mainly concentrated in the following regional belts - Mumbai to Ankleshwar,



Hyderabad to Madras and Chandigarh. Around, 18000 bulk drug manufacturers exist in India.

Some major producers of bulk drugs in Indian pharmaceutical industry are Ranbaxy

Laboratories, Sun Pharma, Cadila, Wockhardt, Aurobindo Pharma, Cipla, Dr. Reddy’s

Laboratories, Orchid Pharmaceuticals & Chemicals, Nicholas Piramal, Lupin, Aristo

Pharmaceuticals, etc. Most are involved in bulk as well as formulations while a few are solely

into bulk drugs.

India is the world’s fifth largest producer of bulk drugs. The market size is expected to grow at

higher percentages in future years with more and more international companies depending on

India to meet their bulk-drug supply needs. Moreover, India is way ahead of competitors in the

total number of Drug Master File (DMF) filings. Of the overall DMF filings to US FDA, the

portion of filings by Indian players has jumped from around 14% in 2000 to 46% of total filings

in 2008( January-June) This growth in proportion speaks volumes about the quality standards

followed in Indian manufacturing facilities. The growing number of DMF filings signifies the

increase in number of contracts that Indian players have garnered. While India has recorded 1671

DMF filings, China shows a tally of 520, the second largest number of DMF filings after India.

In 2009, India’s DMF filings were around 3.5 times that of China -187 from India vis-à-vis 51

from China. The bulk drug segment is a low-margin and volume-driven business. The thrust is

on manufacturing. In manufacturing operation, efficiency through better process skills to reduce

both manufacturing time and cost is critical. Low cost manufacturing is a distinct advantage

gained by Indian companies over a period of time with a steep learning curve. Bulk Drugs

exports have grown significantly in the past on account of growth in generic industry, increasing

share of Indian companies in DMF filings and contract manufacturing opportunity. As already



explained, India has carved a niche for itself by being one of the largest bulk drug suppliers.

India offers a number of distinctive advantages in the pharmaceutical industry, India has many

local manufacturing equipment manufacturers. These equipments are of high quality and low

cost, thus reducing the cost of capital. According to industry estimates, Indian companies are

able to reduce the upfront capital cost of setting up a project by as much as 25-50%due to locally

manufactured equipment and high quality technology/engineering skills.

Competition in the India’s domestic formulation market has made it IneviTab. for API suppliers

to continuously develop alternative production methods to improve yield or reduce costs. This

ensures that India has a significant cost advantage due to process engineering. Apart from

availability of a high number of skilled chemists, India also offers scientists with vast experience

and unmatched skills. The scientific staff in India though equivalent or better qualified are also

available at a fraction of the cost. This makes Indian research firms more competitive than many

international firms while being cost competitive. Labor costs are also low in India, being almost

1/7th of that in many developed countries and offer an obvious cost advantage.

3.3.2. Formulations

Formulations are broadly categorized into patented drugs and generic drugs. A patented drug is

an innovative formulation that is patented for a period of time (usually 20 years) from the date of

its approval. A generic drug is a copy of an expired patented drug that is similar in dosage,

safety, strength, method of consumption, performance and intended use. Formulation Industry

can be subdivided into two segments:



3.3.2.1. Domestic Formulation Industry

Between 2004 and 2010, the domestic formulation industry grew at a CAGR of 14% from

around USD4.3 billion in 2004 to USD 8.4 billion in 2010. Demand in India is growing

markedly due to rising population, increasing per capita income, increasing access to medicine,

especially in the rural areas and an increasing population of over sixty years of age.

3.3.2.2. Indian Formulation Exports

Indian formulation exports grew at a CAGR of 23.2% touching around USD 4 billion in 2009-

10. The growth has been spurred mainly due to the focus on regulated markets by most Indian

companies, thereby increasing revenues.

3.3.3. Contract Research and Manufacturing

Increasing costs of R&D, coupled with low productivity and poor bottom lines, have forced

major pharmaceutical companies worldwide to outsource part of their research and

manufacturing activities to low-cost countries, thereby saving costs and time in the process. The

global pharmaceutical outsourcing market was worth USD57.2 billion in 2007. It is growing at a

CAGR of 10% to reach USD76 billion by 2011. Global market for Contract Research and

Manufacturing Services (CRAMS) in 2010 is estimated to be USD55.48 billion. Out of the total

global CRAMS market, contract research was USD16.58 billion, growing at a CAGR of 13.8%

and contract manufacturing was USD38.89 billion accounting for the major share (approximately



68%) of the total global pharmaceutical outsourcing market. India, with more than 80 US FDA-

approved manufacturing facilities, is one of the most preferred locations for outsourcing

manufacturing services in India by the multinationals and global pharmaceutical companies. The

Indian pharmaceutical outsourcing market was valued at USD1.27m in 2007 and now it has

reached to USD3.33 billion by 2010, growing at a CAGR of 37.6%. The Indian CRAMS market

stood at USD1.21 billion in 2007, and now it has reached to USD3.16 billion by 2010. India

holds the lion's share of the world's contract research business as activity in the pharmaceutical

market continues to explode in this region. Over 15 prominent contract research organisations

(CROs) are now operating in India attracted by her ability to offer efficient R&D on a low-cost

basis. Thirty five per cent of business is in the field of new drug discovery and the rest 65 per

cent of business is in the clinical trials arena. India offers a huge cost advantage in the clinical

trials domain compared to Western countries. The cost of hiring a chemist in India is one-fifth of

the cost of hiring a chemist in the West.

3.4. CRITICAL SUCCESS FACTORS

The rules of pharmaceutical business are changing. Indian pharmaceutical companies can no

longer get away with plundering intellectual properties of multinational companies.

Pharmaceutical business has become a new ballgame altogether after the introduction of product

patents in January 2005.



3.4.1. New Product Development

3.4.1.1. Pre 2005

New product development efforts of Indian pharmaceutical companies in process patents era

were limited to reverse engineering molecules discovered by other companies. Thanks to

absence of product patents, Indian companies did not have to go through long winded drug

development process. Nor did Indian companies have to expend any effort on research focus.

Indian companies simply zeroed in on blockbuster drugs and tried to come up with an alternative

process as fast as they could. The focus of the Indian companies was to launch a copy of a

blockbuster drug ahead of their rivals in India and abroad.

Key areas to focus on R&D for Indian companies:

1. Potential product identification

a) Complex API

b) Complex finished product

c) Commercial potential of products

d) Out-licensing opportunity to MNCs

2. Novel Drug Delivery System (NDDS)

3. New Drug Development



3.4.1.2. Post 2005

A large number of drugs are going “off patent” in the next few years. According to IMH Health,

more than $60 billion worth of drugs are going “off patent” by 2011. Thus, Indian companies

will not be short of new products for at least another two years. In the long run, however Indian

companies may find it hard to make money from drugs coming off patent. Already competition

in generic market is intense and likely to increase further in the future. Hence, new molecules

rather than generics will drive revenues and profits in the product patents area. Indian companies

need to discover new drugs either through their own efforts or research alliances. Perhaps

licensing deals with multinationals could also provide Indian companies access to new drugs.

Focus on basic research will come with its own issues. Indian companies will have to acquire the

skills of identifying research areas that offer excellent revenue and profit potential. This will

entail a closer tracking of disease profiles and related therapies as well as keeping a close tab on

the research programmes of rivals. Besides, Indian companies will have to pay more attention to

economics of drug development process. A product patent is granted for a period of 20 years

3.4.2. Therapeutic Coverage

3.4.2.1. Pre-2005

In the absence of product patents, Indian pharmaceutical companies did not feel the need to focus

on specific therapeutic areas. Most Indian pharmaceutical companies eschewed narrow focus and

tried to cover as many therapeutic areas as possible. Now the product portfolio of many Indian



companies has considerable breadth and depth. Given the price controls in the market,

diversification worked to the advantage of companies in the domestic markets. In the export

markets, a wider product portfolio gave companies the option of picking and choosing from an

array of opportunities.

3.4.2.2. Post 2005

Opinion is divided over the therapeutic strategy that Indian companies should pursue in product

patent era. Some companies believe that focus on select therapeutic segment will fetch them

greater dividends in terms of new chemical entities and market share. Other companies believe

such a strategy is risky given the size of Indian companies and that a big setback in research

could sink the company. Instead such companies are pursuing a de-risking strategy of building a

wide product portfolio. In the domestic market, such a strategy will result in economies of scale

at production and marketing stage, putting the company in a better place to weather competition

from multinationals. In the export markets even after the introduction of product patents,

products under patent protection will comprise only 15 percent of the market. So a vast chunk of

the market will be still open for competition although margins will be wafer thin.



3.4.3. Exports

3.4.3.1. Pre-2005

Most Indian companies focused on exports. Exports improve the valuation of companies owing

to higher margin in overseas markets. Indian companies built fortunes by making cheaper

versions of blockbuster drugs and selling them in domestic and export markets. Indian

companies built especially strong position in manufacture of bulk drugs. Out of the total exports,

formulations constituted 55 percent and bulk drugs constituted 45 percent. Success in export

market allowed some Indian companies to build a strong position in the domestic market

organically and through acquisitions of brands and companies.

3.4.3.2. Post 2005

An export has continued to be a priority for Indian companies. Major blockbuster drugs will

come off patent in the near future, creating a big generic opportunity for Indian companies. Also,

a growing demand for anti-AIDS drugs in Africa will keep Indian companies busy. Exports have

and will continue to provide Indian companies with the strength to withstand the onslaught of

multinationals in the domestic market.



3.4.4. Low Cost Production through Scale

3.4.4.1. Pre-2005

Indian pharmaceutical companies have mastered the science of producing drugs cheaply. Thanks

to benign patents regime, Indian companies have developed a high level of chemical synthesis

skills. The absence of development costs together with efficient production has enabled Indian

companies to establish a solid position in bulk drug manufacturing. But scale did not receive as

much importance as it should have, because the cost of Indian pharmaceutical companies was

already low owing to aforesaid reasons. Many Indian companies did not find the return on

investment of world class plants compelling enough.

3.4.4.2. Post 2005

By 2011, drugs worth $60 billion will come off patent, presenting a huge generic opportunity to

Indian companies. But the competition in the generic market will be brutal, resulting in thin

margins. The cost of production will hold the key to success in the generic market. The

production cost in turn depends on scale. Indian pharmaceutical companies need to build global

scale to stand a chance in the generics market.



3.5. PHARMACEUTICAL REGULATORY BODIES IN INDIA

3.5.1. National Pharmaceutical Pricing Authority (NPPA)

NPPA is an organization of the Government of India which was established, to fix/ revise the

prices of controlled bulk drugs and formulations and to enforce prices and availability of the

medicines in the country, under the Drugs (Prices Control) Order 1995.

The organization is also entrusted with the task of recovering amounts overcharged by

manufacturers for the controlled drugs from the consumers.

It also monitors the prices of decontrolled drugs in order to keep them at reasonable levels.

3.5.2. Central Drugs Standard and Control Organization (CDSCO)

CDSCO lays down standards and regulatory measures of drugs, cosmetics, diagnostics and

devices in the country. It regulates clinical trials and market authorization of new drugs. It also

publishes the Indian Pharmacopeia. The main functions of the Central Drug Standard Control

Organization (CDSCO) include control of the quality of drugs imported into the country, co-

ordination of the activities of the State/UT drug control authorities, approval of new drugs

proposed to be imported or manufactured in the country, laying down of regulatory measures and

standards of drugs and acting as the Central Licensing Approving Authority in respect of whole

human blood, blood products, large volume parenterals, sera and vaccines. The CDSCO

functions from 4 zonal offices, 3 sub-zonal offices besides 7 port offices. The four Central Drug

Laboratories carry out tests of samples of specific classes of drugs.



3.5.3. Department of Chemicals & Petrochemicals (DCP)

DCP is responsible for the policy, planning, development, and regulation of the chemical,

petrochemical, and pharmaceutical industries in India. This department aims:

To provide impartial and prompt services to the public in matters relating to chemical,

pharmaceutical and petrochemical industries

To take steps to speedily redressal of grievances received

To formulate policies and initiate consultations with Industry associations and to

amend them whenever required



CHAPTER NO 4: COMPETITIVE ANALYSIS OF PHARMACEUTICAL

INDUSTRY

4.1. PORTERS 5 FORCE ANALYSIS OF INDUSTRY

4.1.1. Threat to Entry (entry barrier)

In pharma industry there are various stumbling blocks to enter the market. Since the industry is

one of the very high profile industry and a very profiTab. one also. Industry being profiTab. then

the entry barriers should be low but the nature of industry, the products and its relationship with

the external environment makes it difficult for the firm to enter into pharmaceutical industry. For

pharma industry some of the barriers are

4.1.1.1. Government Policies and FDA Regulations

Government policies regarding the infrastructure required and the licensing procedure to produce

drugs pose initial barriers. Also with the new patent law commencing from 2005, it would

become difficult to enter the industry, as till now in India the patent was only process patent and

not product patent therefore anybody could obtain a license and manufacture the products, but

after 2005 it would become necessary to own molecules of its own and formulate drugs on the

same. FDA is an international body, which looks after all the functioning of the firm of pharma

industry. According to FDA any new firm entering the industry should not only have complete

infrastructure facilities but it should also have required manpower and certain SOP mentioned by



FDA are needed to be followed, which now include setting up R&D facility compulsorily for all

firms.

4.1.1.2. Cost Disadvantages Independent of Economies of Scales

The government policy and FDA regulations are stricter and the patent law has made major

barriers to entry. Cost disadvantages would be in the form of product technology. As discussed

earlier till now in India it was the process patentised but now any molecule discovered by a

particular firm would be the sole applicant of the formulation of that molecule or final product

along with the technology to manufacture the product.

4.1.1.3. Capital Requirements

Pharma industry is highly capital-intensive industry. The nature of huge investments in setting up

manufacturing facilities and R&D facilities is a discouraging factor for the new entrant. In case

of pharma industry, it has been made mandatory for the firms to invest at least 4% of the equity

capital in to R&D.

4.1.2 Rivalry among Existing Firms

Though there is high competition within the firms of pharma industry but other factor such as its

relationship with Healthcare Industry makes competition and rivalry a backseat. The market

share of top five-pharma company in 2009-10 is



Sr.No.

Company Market Share

1. Ranbaxy 4.53%

2. Dr. Reddy Lab 4.87%

3. Cipla 5.38%

4. GlaxoSmithkline Pharma 1.82%

5. Sun Pharma 2.60%

Tab.4.1: Market Share of Top Five Pharmaceutical Companies India

Also the growth of industry is very high and hence market share becomes a latent factor in terms

of rivalry. The special case of this industry is that this industry follows not only concept but is

more inclined towards societal marketing.

The fixed or storage costs are high in case of pharma industry and hence firms in this industry

take various measures like sometimes outsourcing for improving upon storage costs. Many times

firms have to collaborate with each other for certain productions and operations of certain nature.

Products in this case are very important factor for competition. Standardization of any sort of

product by any firm can lead to monopoly too. The price though can become a major tool for



competition, but the social environment does not allow this strategy to gain impact. Distribution

of the all firms is almost same; hence there is no difference

4.1.3. Bargaining Power of the Buyers

The importance of the product is much higher to the buyer in terms of total cost. The bargaining

power of the buyer in this industry is almost nil as compared to other industry. For the final

consumers, the products are life saving drugs and buyers are ready to pay any amount to buy the

product so the bargaining power of buyers at the time of requirement is low.

4.1.4. Bargaining Power of the Supplier

Suppliers are abundant in this industry hence the bargaining power of suppliers is much higher.

Switching costs are very low, but the substitutability of the product is nil. The products are

bought by the buyer in bulk and hence the supplier is keen to have a long-term relationship with

the buyer, hence for the supplier buyer is very important link to maintain him in the industry.

4.1.5. Threat of Substitute

In Pharma industry, there is threat of substitutes since the industry produces life saving drugs.

The substitutes of these products are:

Ayurveda

Unani



Homeopathy

Acupressure

Acupuncture

4.1.6. Conclusion

This model gives a fair idea about the industry in which a company operates and the various

external forces that influence it. However, it must be noted that any industry is not static in

nature. It’s dynamic and over a period of time the model, which have used to analyse the

pharmaceutical industry may itself evolve.

Going forward, we foresee increasing competition in the industry but the form of competition

will be different. It will be between large players (with economies of scale) and it may be

possible that some kind of oligopoly or cartels come into play. This is owing to the fact that the

industry will move towards consolidation. The larger players in the industry will survive with

their proprietary products and strong franchisee.

In the Indian context, companies like Cipla, Ranbaxy and Glaxo are likely to be key players.

Smaller fringe players, who have no differentiating strengths, are likely to either be acquired or

cease to exist. The barriers to entry will increase going forward. The change in the patent regime

has made sure that new proprietary products come up making imitation difficult. The players

with huge capacity will be able to influence substantial power on the fringe players by their



aggressive pricing thereby creating hindrance for the smaller players. Economies of scale will

play an important part too. Besides government will have a bigger role to play.

4.2. PEST ANALYSIS

Technological advancements, tighter regulatory-compliance overheads, rafts of patent expiries

and volatile investor confidence have made the modern pharmaceutical industry an increasingly

tough and competitive environment. Below is an analysis of the structure of the pharmaceutical

industry using the PEST (political, economic, social and technological) model. To understand the

implications of the environment on any industry it is imperative to study the four cardinal

influencers on the industry namely Political, Economic, Social and Technological factors. It is

rather unfortunate that in India these factors have a rather disproportionate influence on the

functioning of a commercial organization. From the days of independence the business

environment has been overly regulated by a handful of bureaucrats, middlemen, businessmen

and politicians. It’s only a decade since the country has seen an emergence of a political thought

that encourages free enterprise. A welcome change indeed!

4.2.1. Political Factors

Today there is political uncertainty in the air. A combination of diverse political thought have

got together to cobble together a rag-tag coalition, that is riddle with ideological

contradictions. Therefore, any consistent political or economic policy cannot be expected.

This muddies the investment field.



The Minister in charge of the industry has been threatening to impose even more stringent

Price Control on the industry than before. This is throwing many an investment plan into the

doldrums.

DPCO which is the bible for the industry has in effect worked contrary to the stated

objectives. DPCO nullifies the market forces from encouraging competitive pricing of goods

dictated by the market. Now the pricing is determined by the Government based on the

approved costs irrespective of the real costs.

Effective January, 2005 the country goes in for the IPR (Intellectual Property Rights) regime,

popularly known as the Patent Act. This Act will impact the Pharmaceutical Industry the

most. Thus far an Indian company could escape paying a patent fee to the inventor of a drug

by manufacturing it using a different chemical route. Indian companies exploited this law and

used the reverse-engineering route to invent a lot of alternate manufacturing methods. A lot

of money was saved this way. This also encouraged competing company to market their

versions of the same drug. That meant that the impurities and trace elements found in

different brands of the same substance were different both in qualification as well as in

quantum. Therefore different brands of the same medicine were truly different. Here

Branding actually meant quality and a purer brand actually had purer active ingredient and

lesser or less toxic impurities. Product patent regime will eliminate all this. Now, a patented

drug would be manufactured using the same chemical route and would be manufactured by

the inventor or his licentiates using the chemicals with same specifications. Therefore, all the

brands of the same active ingredient would not have any difference in purity and impurities.

The different brands would have to compete on the basis of non input-related innovations

such as packaging, color, flavors, Excipients etc. This is the biggest change the environment



is going to impose on the industry. The marketing effort would be now focused on logistics,

communications, and economy of operation, extra-ingredient innovations and of course

pricing.

In Pharma industry there is a huge PSU segment which is chronically sick and highly

inefficient. The Government puts the surpluses generated by efficient units into the price

equalization account of inefficient units thereby unduly subsidizing them. On a long term

basis this has made practically everybody inefficient.

Effective the January, 2005 the Government has shifted from charging the Excise Duty on

the cost of manufacturing to the MRP thereby making the finished products more costly. Just

for a few extra bucks the current government has made many a life saving drugs unaffordable

to the poor.

The Government provides extra drawbacks to some units located in specified area, providing

them with subsidies that are unfair to the rest of the industry, bringing in a skewed

development of the industry. As a result Parma units have come up at place unsuiTab. for a

best cost manufacturing activity.

4.2.2. Economic Factors

India spends a very small proportion of its GDP on healthcare (A mere 1%). This has stunted

the demand and therefore the growth of the industry.

Per capita income of an average Indian is low (Rs. 12,890), therefore, spending on the

healthcare takes a low priority. An Indian would visit a doctor only when there is an



emergency. This has led to a mushrooming of unqualified doctors and spread of non

standardized medication.

The incidence of Taxes is very high. There is Excise Duty ( State & Central), Custom Duty,

Service Tax, Profession Tax, License Fees, Royalty, Pollution Clearance Tax, Hazardous

substance (Storage & Handling) license, income tax, Stamp Duty and a host of other levies

and charges to be paid. On an average it amounts to no less than 40-45% of the costs.

The number of Registered Medical practitioners is low. As a result the reach of

Pharmaceuticals is affected adversely.

There are only 50, 00,000 Medical shops. Again this affects adversely the distribution of

medicines and also adds to the distribution costs.

India is a high interest rate regime. Therefore the cost of funds is double that in America.

This adds to the cost of goods.

Adequate storage and transportation facilities for special drugs are lacking. A study had

indicated that nearly 60% of the Retail Chemists do not have adequate refrigeration facilities

and store drugs under sub-optimal conditions. This affects the quality of the drugs

administered and of course adds to the costs.

India has poor roads and rail network. Therefore, the transportation time is higher. This calls

for higher inventory carrying costs and longer delivery time. All this adds to the invisible

costs. Its only during the last couple of years that good quality highways have been

constructed.



4.2.3. Socio-Cultural Factors

Poverty and associated malnutrition dramatically exacerbate the incidence of Malaria and

TB, PrevenTab. diseases that continue to play havoc in India decades after they were

eradicated in other countries.

Poor Sanitation and polluted water sources prematurely end the life of about 1 million

children under the age of five every year.

In India people prefer using household treatments handed down for generations for common

ailments.

The use of magic/tantrics/ozhas/hakims is prevalent in India.

Increasing pollution is adding to the healthcare problem.

Smoking, gutka, drinking and poor oral hygiene is adding to the healthcare problem.

Large joint families transmit communicable diseases amongst the members.

Cattle-rearing encourage diseases communicated by animals.

Early child bearing affects the health standards of women and children.

Ignorance of inoculation and vaccination has prevented the eradication of diseases like polio,

chicken-pox, small-pox, mumps and measles.

People don’t go in for vaccination due superstitious beliefs and any sort of ailment is

considered as a curse from God for sins committed.



4.2.4. Technological Factors

Advanced automated machines have increased the output and reduced the cost.

Computerization has increased the efficiency of the Pharma Industry.

Newer medication, molecules and active ingredients are being discovered. As of January

2005, the Government of India has more than 10,000 substances for patenting.

Ayurveda is a well recognized science and it is providing the industry with a cutting edge.

Advances in Bio-technology, Stem-cell research have given India a step forward.

Humano-Insulin, Hepatitis B vaccines, AIDS drugs and many such molecules have given the

industry a pioneering status.

Newer drug delivery systems are the innovations of the day.

The huge unemployment in India prevents industries from going fully automatic as the

Government as well as the Labor Unions voice complains against such establishments.

4.3. SWOT ANALYSIS

The Indian pharmaceutical industry is one of the fast growing sectors of the Indian economy and

has made rapid strides over the years. From being an import dependent industry in the 1950s, the

industry has achieved self-sufficiency and gained global recognition as a producer of low cost

high quality bulk drugs and formulations. Leading Indian companies have developed

infrastructure in over 60 countries including developed markets like US and Europe. In the

recent past, several pharmaceutical companies have demonstrated that they possess the ability to

engage in commercially viable research and development activities and become significant



players in the international market. SWOT Analysis, is a strategic planning tool used to evaluate

the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business

venture. It involves specifying the objective of the business venture or project and identifying the

internal and external factors that are favorable and unfavorable to achieving that objective.

4.3.1. Strengths

Indian with a population of over a billion is a largely untapped market. In fact the penetration

of modern medicine is less than 30% in India.

The growth of middle class in the country has resulted in fast changing lifestyles in urban and

to some extent rural centers. This opens a huge market for lifestyle drugs, which has a very

low contribution in the Indian markets.

Indian manufacturers are one of the lowest cost producers of drugs in the world. With a

scalable labor force, Indian manufactures can produce drugs at 40% to 50% of the cost to the

rest of the world. In some cases, this cost is as low as 90%.

Indian Pharmaceutical industry posse’s excellent chemistry and process reengineering skills.

This adds to the competitive advantage of the Indian companies. The strength in chemistry

skill helps Indian companies to develop processes, which are cost effective.

Indian pharmaceutical industry is highly developed and the most modern amongst the

developing world.

The pharmaceutical industry has a favourable balance of payment and the quality of our

products, are of international standards.

There is flexibility for the industry to move from one drug to another.



Strong distribution network of industry. Stronger presence in the foreign markets.

Low manufacturing costs as compared to global norms.

Mature players in the industry have elaborate domestic marketing setups supplied by an

efficient distribution network.

Street smarts in branded generics market, global perspective.

Good blend of eastern and western styles of management.

Superb chemists proven by strong branded generic market share in India by Indian

workforce.

High volume large-scale businesses, experience of running multiple, large, high volume

manufacturing plants and managing 1000 sales people.

Many leading companies already “Globalising” on many levels.

Strong presence in a country with a large growth potential over the next twenty-five years,

based on population and current economic and potential situation.

The new patent product regime will bring with it new innovative drugs. This will increase the

profitability of MNC Pharma companies and will force domestic Pharma companies to focus

more on R&D. This migration could result in consolidation as well. The migration into a

product patent based regime is likely to transform industry fortunes in the long term.

4.3.2. Weaknesses

The NPPA (National Pharma Pricing Authority), which is the authority to decide the various

pricing parameters, sets prices of different drugs, which leads to lower profitability for the



companies. The companies, which are lowest cost producers, are at advantage while those

who cannot produce have either to stop production or bear losses.

In India Pharmaceutical sector has been marred by lack of product patent, which prevents

global Pharma companies to introduce new drugs in the country and discourages innovation

and drug discovery. But this has provided an upper hand to the Indian Pharma companies.

Indian majors are relying on exports for growth. To put things in to perspective, India

accounts for almost 16% of the world population while the total size of industry is just 1% of

the global Pharma industry.

Due to very low barriers to entry, Indian Pharma industry is highly fragmented with about

300 large manufacturing units and about 18,000 small units spread across the country. This

makes Indian Pharma market increasingly competitive. Indian Pharma market is one of the

least penetrated in the world. However, growth has been slow to come by. The industry

witnesses price competition, which reduces the growth of the industry in value term.

While India accounts roughly 1/6th of the world’s population, it accounts only 1.6% of the

world’s value of pharmaceutical consumption. Only 30% of the population has access to

modern medicines.

R&D efforts to improve product efficacy is a continuous activity and is extremely expensive

and time consuming.

The industry is played by drug policy, price controls special restrictions on licensing etc. It is

passionately hoped that controls would be eased shortly.

The industry is characterized by low margins.



The buzzword in the pharmaceutical industry is R & D. With the signing of the GATT

agreement it is imperative for the research for discovery and development of new drug

molecule. Unfortunately, R & D is a major drawback of the Indian pharma industry.

Negotiable R & D activity.

Most of the manufacturing facilities are not eligible for exports to the developed world.

“Made in India” label is a handicap on the global markets.

4.3.3. Opportunities

The new patent product regime will bring with it new innovative drugs. This will increase the

profitability of MNC Pharma companies and will force domestic Pharma companies to focus

more on R&D. This migration could result in consolidation as well. The migration into a

product patent based regime is likely to transform industry fortunes in the long term.

Opening up of health insurance sector and the expected growth in per capita income are key

growth drivers from a long-term perspective. This leads to the expansion of healthcare

industry of which Pharma industry is an integral part.

Being the lowest cost producer combined with FDA approved plants, Indian companies can

become a global outsourcing hub for Pharmaceutical products.

Large number of drugs going off-patent in Europe and in the US between 2005 to 2009 offers

a big opportunity for the Indian companies to capture this market. Since generic drugs are

commodities by nature, Indian producers have the competitive advantage, as they are the

lowest cost producers of drugs in the world.



Pharmaceuticals and bulk drugs are identified as thrust areas for exports by the government

of India.

With economic development, it is presumed that in the next few decades almost 90% of the

population would have access to modern medicine. Thus the growth potentials are immense.

Number of manufacturing units approved by Food and Drug Administration (FDA), USA is

growing and providing vast scope for future growth.

Concentrate on R & D and technical base to create a competitive edge.

Create synergies through joining hands with other operators in the industry. Go for backward

and forward integration to utilize the resources in better manner.

The latest trend in the industry seems to be towards a greater backward integration by

manufacturing bulk intermediates. This is a plus point to the Indian industry since the

intermediates do not come under GATT agreement. This is one virgin area, which has not yet

been tapped.

Large and growing domestic markets at least 80% of products are expected to be off patent

products.

There are tremendous scopes to develop and market “New Drug Delivery System”.

Excellent opportunities in untapped niche markets.

Vast potential of the OTC market.

A 2500 crores generics market expected to grow up to 4500 crores by 2500.



4.3.4. Threats

Threats from other low cost countries like China and Israel exist. However, on the quality

front, India is better placed relative to China. So, differentiation in the contract

manufacturing side may wane.

The short-term threat for the Pharma industry is the uncertainty regarding the implementation

of VAT. Though this is likely to have a negative impact in the short term, the implications

over the long-term are positive for the industry.

There are certain concerns over the patent regime regarding its current structure. It might be

possible that the new government may change certain provisions of the patent act formulated

by the preceding government.

Increase in over the counter medicines also create problem for medicines because people will

buy it directly from market

Export of bulk drugs is vulnerable to various changes in the international market.

GATT agreement would after the pharmaceutical scenario drastically by 2005 AD. Most of

the Indian companies do not have a research base. Such companies will be severely affected

in the post GATT era.

Small-scale sector will be severally affected in the times to come. They will be forced to

close their shops or act as manufacturing base for the bigger Indian companies or MNCs.

Small and medium formulation companies to face stiff competition in the generic drugs

market leading to squeeze on their market share and profit.

Erosion of image in the domestic market due to lack of R & D.

Increased competition from china especially in the bulk drug sector.



CHAPTER NO 5: PHARMACEUTICAL OTC MARKET

‘OTC Drugs’ means drugs legally allowed to be sold ‘Over The Counter’, i.e. without the

prescription of a Registered Medical Practitioner. In India, though the phrase has no legal

recognition, all the drugs that are not included in the list of ‘prescription only drugs’ are

considered as non-prescription drugs (or OTC drugs). Prescription-only drugs are those

medicines that are listed in Schedules H and X appended to the Drug and Cosmetics Act & its

Rules. Drugs listed in Schedule G (mostly antihistamines) do not need prescription to purchase

but require the following mandatory text on the label: “Caution: It is dangerous to take this

preparation except under medical supervision”. Drugs falling in these 3 schedules are currently

not advertised to the public under a voluntary commitment by the pharmaceutical industry.

Currently, non drug-licensed stores (e.g. non-chemists) can sell a few medicines classified as

‘Household Remedies’ listed in Schedule K of the DCA&R in villages whose population is

below 1 000. OTC proprietary drugs registered as ‘Ayurvedic Medicines’ (= traditional Indian

medicines containing natural / herbal ingredients) are also regulated by the DCA and DCR.

However, as they do not require a drug licence they can be sold by non-chemists. Some of the

top OTC brands in India (e.g. Vicks VapoRub, Amrutanjan Balm, Zandu Balm, Iodex , Moov

Pain Cream, Itch Guard Cream, Eno Fruit Salt, Vicks Cough Drops, Halls Lozenges, etc.), are

registered as ‘Ayurvedic Medicines’ because of their plant-based natural active ingredients.

There are no price controls on ‘Ayurvedic Medicines’. Considering the above framework, key

categories with OTC potential in India are:

Vitamins and minerals

Cough and cold



Gastrointestinals

Analgesics

Dermatologicals

Herbal / Ayurvedic Medicines.

5.1. LABELING REQUIREMENTS

There are no separate labeling requirements for OTC drugs. Under the Packaging Commodities

Act, most packaged consumer products including drugs are required to have the Maximum Retail

Price (MRP) printed on the label. The selling of any product at a price higher than the MRP is

not permitted.

5.2. ADVERTISING REQUIREMENTS

The Drug & Magic Remedies (Objectionable Advertisement) Act mentions a list of ailments for

which no advertising is permitted. It also prohibits misleading advertisements which, directly or

indirectly, give false impressions regarding the true character of the drug, make false claims, or

are otherwise false or misleading in any particular respect. The DCGI’s office -in collaboration

with the Organisation of Pharmaceutical Producers of India (OPPI) - has released a Voluntary

Code on OTC Advertising which is being followed by all OPPI member companies. There is also

an OPPI Code of Pharmaceutical Marketing Practices, January 2007, based on the IFPMA code.

Currently, there is no specific law which prohibits the advertising of prescription drugs although

industry practice is not to advertise prescription-only drugs. The DCGI’s office is considering



coming out with a notification prohibiting the advertising of any drug which legally requires a

doctor’s prescription for its supply. The following OTC medicines advertising can be seen on TV

in India:

Digestives

Antacids

Antiflatulents

Cold rubs and analgesic balms/creams

Vitamins/tonics/health supplements (especially herbals and Ayurvedic-registered)

Medicated skin treatment

Analgesic /cold Tablets

Antiseptic creams/liquids

Glucose powders

Cough liquids

Throat lozenges

Medicated dressings (band-aids)

Baby gripe water.

5.3. PRESCRIPTION TO OTC SWITCH

Though not yet a pill-popping country, India is inching the OTC way. Indian OTC healthcare is

in nascent stages and ranks 11th in the global OTC market. But, urban India is catching up with

the concept, thanks to the advent of technology, improving literacy levels, increasing health

awareness and high work stress levels. In fact, Indian consumers, today, are confident about



sharing healthcare responsibility, especially in case of common ailments. Considering the

changing mindset and likely changes in regulatory framework, such as, OTC guidelines and open

distribution, it is reasonable to estimate that within the next ten years, India will become a major

contributor to the world of OTC market.

Currently, aches/pains, cough, colds, hyperacidity, minor topical infections, and indigestion are

major OTC categories. Emerging categories include cuts, wounds and burns, muscle pains and

sprains, diarrhea and constipation. There are many Prescription products, which could be

revitalized through OTC switches. An analytical interpretation of various data placed the focus

on vitamins, cough & cold, antacids, antipyretics and NSAIDs as opportunity areas for switch in

India. However, the big issue in OTC marketing is not the switch climate as currently even

drugs, which do not require a prescription, are promoted via the doctor because

a) Marketing through medical representatives is less expensive than mass media advertised

marketing. This makes proprietary medicines higher priced than equivalent ethically

promoted drugs.

b) Practically all prescription drugs can be purchased without prescription.

c) Doctor influence is strong in patient purchase behaviour.

d) Distribution of OTC allopathic medicines is limited to drug licensed stores (mainly

pharmacies).



5.4. WORLD SCENARIO OF OTC MARKET

At a global level pharma giants are leveraging the power of OTC to face the challenges they face

today .Globalization, shrinking new product pipeline, increasing cost of new drug discovery,

shrinking PLC of existing products, ever increasing demand by managed healthcare

organisations, public and government to cut down the prices of patent protected drugs, stringent

safety rules of FDA and entry of new players in the market are putting tremendous pressure on

all pharma companies especially the giants. Pfizer Inc’s, world’s largest drug maker, recent

decision to cut US sales force by about 20% clearly express the pressure such giants face. OTC

products are an essential component of any health care system. According to a oneyear survey in

the United States, six of the ten most frequently used drugs, including the top four, were

OTCs.41 In another report, 60 percent of medicines purchased by consumers were OTCs.42 In

fact, OTC products account for the majority of all medications used in most countries. There

were almost 16,800 OTC drugs (the total number of medicines was 22,000) available on Health

Canada’s list of drugs approved for human use in the year 2000.27 According to the Consumer

Healthcare Products Association, there were more than 100,000 OTC products (approximately

1,000 active ingredients) available in the United States as of 2001.43 The number of OTC

medicines available in the United States is much higher than any other nation. Consequently,

North America is the leading OTC market in the world; accounting for 31 percent of global sales

of OTC products in 1995. Western Europe ranked second (26 percent), followed by Japan (16

percent).



In dollar value, OTC sales comprise from 10 to 30 percent of total medication sales in various

countries (circa 1996), for example, 26 percent in Switzerland; 24 percent in the USA; 20

percent in Britain; 18 percent in Germany; 15 percent in Japan; and 11 percent in France.

Reasons for this include differences in health care funding, cultural health beliefs, and the range

of OTC drugs available on the market of each nation. In recent years, OTC spending has been

increasing in many countries, except in Japan where people are more likely to use formal

medical care rather than self-care.45 In the United States, retail sales of OTC products

(excluding Wal-Mart) in 2001 were $17.1 billion, up 2.4 percent over 2000 ($16.7

billion).Canadians spent $3.3 billion on the OTC market in 2001 (20 percent of all drug

expenditures) according to a report released by the Canadian Institute for Health Information.27

In general, OTC drugs cost about $100 per person per year. The OTC expenditure in 2001

increased 3 percent over the previous year and has risen by 73.6 percent (from $1.9 billion to

$3.3 billion) since 1995.

5.4.1. US OTC Pharmaceuticals Market

Approval of over-the-counter status for a drug requires an assessment by the Food and Drug

Administration (FDA) that the drug is safe and effective. Under current regulations, a new drug

can be exempted from prescription-only status by FDA approval of a new-drug application

supporting the use of the product on an over-the-counter basis. Alternatively, a drug can be

marketed over the counter if its ingredients are included in previously published regulations

defining the requirements for over-the-counter status and if the labeling of the product complies

with these regulations. The standards also apply to drugs that have already been approved for



prescription-only sale and that are being considered for a switch to over-thecounter status. The

Drug Price Competition and Patent Term Restoration Act of 1984 potentially provides three

additional years of marketing exclusivity for the makers of drugs switched from prescription to

over-the-counter status if the FDA has required additional clinical trials deemed essential to

evaluate the switch. If a prescription drug is approved for over-the-counter marketing, the drug

may still be available by prescription for certain indications or for use at doses not approved for

over-the-counter marketing. The Durham–Humphrey and Kefauver–Harris Amendments define

criteria to be used by the FDA in evaluating a new-drug application for a proposed over-the

counter drug. The required demonstrations of safety and efficacy for an over-the-counter drug

include components distinct from those for prescription drugs.

United States OTC Pharmaceutical Market Segmentation (in % Share, by Value)

Category % Share

Category % Share

cough and cold preparation 22.30

Vitamin and Minerals 18.70

Analgesics 15.20

Medicated skin products 12.60

Traditional Medicines 5.30

Other 25.90

Tab.5.1: USA OTC Pharmaceutical Market Segmentation



5.4.2. European OTC Pharmaceuticals Market

The European OTC Pharmaceuticals market generated total revenues of $23.6 billion in

2009, this representing a CAGR of 2.5%for the five year period spanning 2004-09.In

comparison, the Global and Asia-Pacific OTC Pharmaceuticals markets grew with CAGR of

5.1% and 6.9 % over the same period, to reach respective values of $88.7 billion and

$39.1billion in 2009.

Europe OTC Pharmaceutical Market Segmentation (in % Share, by Value)

Category % Share

Category % Share



Analgesics 15.00



Other 24.60

Tab.5.2: Europe OTC Pharmaceutical Market Segmentation



The chart above shows the percentage of problems treated with non-prescription medications by

consumers in 10 nations. The percentages are the highest in the United States and in South

Africa. While in a developed country like the US many patients consider self-treatment with

over-the-counter medicines as a cost and time-saving alternative to doctor visits for common

ailments, a country like South Africa perhaps relies on self-medication more as a major

contributor to health maintenance because of lower levels of infrastructure and professional staff.

Percentage of common conditions treated with OTCs

5.5. INDIAN SCENARIO OF OTC MARKET

The Indian market for over-the-counter medicines (OTCs) is worth about $940 million and is

growing 20 per cent a year, or double the rate for prescription medicines. The government is

keen to widen the availability of OTCs to outlets other than pharmacies, and the Organisation of

Pharmaceutical Producers of India (OPPI) has called for selling OTCs in post offices.

Developing an innovative new drug, from discovery to worldwide marketing, now involves

investments of around $1 billion, and the global industry's profitability is under constant attack

as costs continue to rise and prices come under pressure. Pharmaceutical production costs are

almost 50 per cent lower in India than in Western nations, while overall R&D costs are about

one-eighth and clinical trial expenses around one-tenth of Western levels. India's long

established manufacturing base also offers a large, well-educated, English-speaking workforce

with 700,000 scientists and engineers graduating every year, including 122,000 chemists and

chemical engineers, with 1,500 PhDs. The industry provides the highest intellectual capital per

dollar worldwide, says OPPI. The industry's exports were worth more than $3.75 billion in 2008-



09 and they have been growing at a compound annual rate of 22.7 per cent over the last few

years, according to the government's draft National Pharmaceuticals Policy for 2009, published

in January 2009. The Policy estimates that, by the year 2012, the industry has the potential to

achieve $22.40 billion in formulations, with bulk drug production going up to 5.60 billion from

$1.79 billion. "India's rich human capital is believed to be the strongest asset for this knowledge-

led industry. Various studies show that the scientific talent pool of 4 million Indians is the

second-largest English speaking group worldwide, after USA." In India the prescription drugs

are listed under Schedule H. There are about 570 modules in this category that are stocked in a

total of 5 to 8 lakh retail chemists. Currently, non pharmacy stores can sell a few drugs on the

schedule K of the Drugs & Cosmetics Act in rural areas in villages, whose population is below

1,000

Currently, aches/pains, cough, colds, hyperacidity, minor topical infections and indigestion are

major OTC categories. Emerging categories include cuts, wounds and burns, muscle pains and

sprains, diarrhoea and constipation. There are many products in the Rx sector which could be

revitalised through OTC switches. An analytical interpretation of various data places the focus

on vitamins, cough & cold, antacids, antipyretics and NSAIDs as opportunity areas for switch in

India. However, the big issue in OTC marketing is not the switch climate as currently even drugs

which do not require a prescription are promoted via the doctor because:

Marketing through medical representatives is less expensive than mass media advertised

marketing. This makes that OTC medicines are higher priced than the equivalent medicines

promoted ethically.

Practically all Rx drugs can be purchased without a prescription.



Doctor influence is strong in patients’ purchase behaviour.

Distribution of allopathic OTC medicines is limited to drug licensed stores (mainly

Pharmacies)

Indian market faces the problem of ‘Deemed OTC market’ where in ethical drugs are also sold

without a prescription due to poor monitoring and control by FDA. Self medication tendency is

traditionally very high due to the high availability of traditional medicines, the awareness and

acceptance of which is very high among the public. The Indian OTC pharmaceuticals market

generated total revenues of $2.5 billion in 2010,this representing a compound annual growth rate

of 8.3%for the five year period spanning 2005- 2010. In comparison ,the US and Chinese OTC

pharmaceuticals markets grew with CAGRs of 4.3% and 7% over the same period ,to reach

respective values of $21.2billion and $11.9billion in 2010. Traditional medicines proved the

most lucrative for the Indian OTC pharmaceuticals market in 2010, generating total revenues of

$679.3 million. In comparison, sales of cough and cold preparations generated revenues of

$492.6 million in 2010.

5.5.1. Market Data on OTC Medicines

India is currently ranked 11th in the global OTC market in size, with an estimate that it will

reach 9th position within five years.(Source: Nicholas Hall & Company, India).Currently the

Indian OTC market (i.e. non-prescription advertised medicines) is estimated to represent

approximately Rs.104 Billion growing at about 8-9% (Source :ORG-IMS)



Main self-medication product groups Category

2005 2006 2007 2008 2009

(Sales in US$ Million)

OTC sales – India 1243.4 1371.4 1491.0 1638.9 1813.4

Analgesics 178.8 192.9 201.7 223.4 258.6

Cough, Cold & Allergy 227.2 250.7 269.7 295.1 318.1

Gastrointestinal 231.4 256.7 281.0 301.2 332.6

Vitamins, Minerals & Supplements 447.1 494.3 538.6 583.0 634.5

Dermatological 144.1 160.3 181.9 212.4 236.5

Lifestyle OTCs 14.8 16.4 18.1 23.9 33.1

Tab.5.3: Market Sales of Different OTC Segment



Indian OTC Pharmaceuticals Market Segmentation (In % Share, by Value)

Category % Share

Category % Share



Analgesics 11.40



Other 27.30

Tab.No.5.4: Market Share of Indian OTC Market Segment



Top Ten Indian Brands

Sr.NoLeading brands

(Sales $Million) India2008

1638.92009

1813.4Growth’09/08

10.7%1 Dabur Chyawanprash 75.8 84.5 11.5

2 Vicks 72.4 81.9 13.1

3 Boroplus 29 32.9 13.4

4 Revital 25.4 30.7 20.7

5 Zandu Balm 28.4 30.5 7.6

6 Dettol 23.7 26.4 11.2

7 Liv.52 25 25.8 3.4

8 Becosules 22.7 24.9 10.1

9 Hajmola 20.2 21.2 4.9

10 Iodex 17.6 20.7 18.2Tab.No.5.5: Top Ten OTC Brands in Indian Market

Data Source: Nicholas Hall’s db6 2010, Asian journal of management research 232

5.6. MAJOR PLAYERS OF OTC PHARMACEUTICAL MARKET IN INDIA

5.6.1. Proctor & Gamble

P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer

Goods Companies that has in its portfolio P&G's Billion dollar brands such as Vicks & Whisper.

With a turnover of Rs. 500+ crores, the Company has carved a reputation for delivering high

quality, value-added products to meet the needs of consumers. P&G Hygiene and Health Care

Limited takes pride in being voted India's Best Employer 2003 in a survey of 200 companies

conducted by International HR Consultancy Hewitt Associates in association with Business

Today magazine. Earlier, the Company was voted India's 2nd Best Employer in previous editions



of the survey in 2001 and 2002. Notably, there are over 200 Indian employees with P&G

Subsidiaries abroad

5.6.1.1. Health Care

Vicks is India’s No.1 Cough & Cold Brand. It created the cold & cough Over-the-Counter

(OTC) category in India way back in 1952 and has led the category till date. Today it has

completed more than 50 years in India. Its current portfolio in India comprises Vicks

Action500+, Vicks VapoRub, Vicks Cough Drops, Vicks Formula 44 Cough Syrup and Vicks

Inhaler. It was rated as ‘India’s Most Trusted Brand’ by the ‘Advertising & Marketing’

Magazine and continues to be on top of the charts of Brand-Equity surveys till date. The Vicks

business in India is the biggest in the ASEAN-Australasia-India (AAI) region. Over the years,

Vicks has launched several heart-tugging advertising campaigns, some of which were – the

‘Happy Birthday Mummy’ and ‘Touch Therapy’ campaigns for Vicks VapoRub, the ‘Khich

Khich Dooor Karo’ ad for Vicks Cough Drops, the ‘Haan Bhai Haan’ ad for Vicks Action 500.

Following are the products of Proctor & Gamble:

• Vicks Cough Dros

• Vicks formula 44 cough syrup

• Vicks Action 55+

• Vicks VapoRub

• Vicks Inhaler



5.6.2. Dr. Morepen Limited

Keeping in line with Morepen's commitment to healthier future for all, The Company has taken

another step to come closer to the consumers with the launch of "Dr. Morepen", a range of self

health products. MLL has now entered the Rs.4500 crore of fast Moving Health Goods (FMHG)

market. The category of self health has been identified after lot of research on modern behavior

and preferences and Morepen sees a huge opportunity in this segment. Dr. Morepen is envisaged

as a forward looking, futuristic, lifestyle driven brand that empowers the modern customers to be

in charge of their own health and live life without any stops. The brand is positioned on a simple

philosophy of "health in your hands" A mantra for contemporary life, full of hectic schedules,

impending deadlines and tough competition. The brand is being promoted by a new subsidary

Dr. Morepen Ltd which has a vast sales & marketing network that reaches to over a lakh of retail

outlets already and the count is growing everyday. With the launch of Dr. Morepen the

distribution of Morepen has moved beyond pharmacist, to super stores, retail outlets &

neighborhood shops.

The growing list of Dr. Morepen's Self Health FMHG product includes DAB (instant antacid),

SAT ISABGOL (Natural laxative), GOL GOLI (Hajma Candy), LEMOLATE (Cold relief ),

BURNOL ( for burns and cut) to take care of minor day to day problems, where as product like

C SIP (refreshing energy drink), Y SUGAR (Low cal sweetener), and 2 KOOL, (Throat drops),

and C-CANDY (Health candy) are life style companions that vitalizes and keep people fit. Many

more products are being launched soon, thus building up the FMHG category. In a step that

would expand Dr. Morepen's franchise into a retail format, Morepen acquired LIFESPRING, the

renowned chain of health & beauty stores. Lifespring is an internationally styled, health and



beauty chain of retail stores offering a range of nearly 15,000 domestic and international branded

products under one roof. Lifespring stores are located at high retail density areas in New Delhi,

catering to a wide ensemble of health and beauty customers. The Stores have three sections -

Personal Care and Beauty, OTC and Prescription Medicines and Optical Center. Following are

the products of Dr. Morepen Ltd:

• Dab Range

• Sat – Isabgol

• Gol Goli

• Y . Sugar

• C-Sip

• Solid Taste Solid Health

• C - Candy

• Burnol

• Lemolate

5.6.3. GlaxoSmithKline Consumer Limited

GlaxoSmithKline Pharmaceuticals Limited (GSK) is India's leading research-based Company

committed to improving the quality of human life by enabling people to do more, feel better and

live longer. The Company has a formidable presence in the domestic pharmaceuticals market

with a market share of above 5.9 per cent. GSK India markets a wide range of ethical

formulations and is the leader in therapeutic areas of respiratory, dermatology and vaccines,

besides having a significant presence in areas of gastroenterology, dietary supplements,



gynecology, neurology, cardiovascular and intensive care. GSK India is also the undisputed

leader in the animal health and fine chemicals businesses. Following are the products of

GlaxoSmithKline consumer limited:

• Crocin

• Crocin Pain Relief

• CrocinQuik

• Eno

• EnoTabs

• Iodex

• Iodex Power cream

5.6.4. Zydus Cadila

Zydus Cadila is an innovative global pharmaceutical company that discovers, develops,

manufactures and markets a broad range of healthcare products. The group’s operations range

from API to formulations, animal health products and cosmeceuticals. Headquartered in the city

of Ahmedabad in India, the group has global operations in four continents spread across USA,

Europe, Japan, Brazil, South Africa and 25 other emerging markets. In its mission to create

healthier communities globally, Zydus Cadila delivers wide ranging healthcare solutions and

value to its customers. With over 8,000 employees worldwide, a world-class research and

development centre dedicated to discovery research and eight state-of-the-art manufacturing

plants, the group is dedicated to improving people’s lives. With three multi-therapy divisions and

eight specialty divisions, Zydus Cadila is one of the leading player in the Indian healthcare



industry. It is the leading player in the cardiovascular, gastrointestinal and women's healthcare

segments. The group has strong presence in respiratory, pain management, CNS, anti-infectives,

oncology, neurosciences, dermatology and nephrology segments. It has been able to maintain

overall position and market share through faster growing chronic / lifestyle segments. With

several new product introductions and pillar brands such as Aten, Ocid, Deriphyllin, Pantodac,

Atorva, Nucoxia, Mifegest to name a few, Zydus Cadila is considered a tour-de-force in therapy

management and brand management. The group has several in-licensing alliances with global

multinationals such as Schering AG, Boehringer Ingelheim, Viatris, etc. The portfolios of over

200 products are marketed by a specialised field force of 3,000. With one of the strongest

distribution channels in the industry, the group reaches out to 1, 00,000 chemists and serves

2,00,000 doctors including physicians, specialists and super specialists.

Cadila Healthcare Limited’s parent organisation Zydus Group is one of the fastest growing

integrated healthcare companies with a turnover of Rs.13 billion. Zydus Group is the 5th largest

player in the Indian domestic formulations market and also has a global presence. Cadila

Healthcare came into being under the aegis of the Zydus Group in 1995. Zydus today has a

leadership position in key segments like cardio vascular, gastro intestinal and women’s

healthcare and is amongst top three in the respiratory, pain management and anti-infective

segments. It also is a leading producer of niche and complex bulk drugs. Some of the well known

brands of Zydus Cadila include Aten - the largest hypertensive brand in the country, Ocid,

Amlodac, Atorva, Pantodac, GRD, Penegra, Nucoxia, Ciprobid, Dexona, Primolut-N, Dulcolax,

Enew, Sugar Free, Diane 35, Mifigest among others. Following are the products of Zydus

Cadila:



5.6.4.1. 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.

• Nutralite is a healthy cholesterol-free butter substitute (Tab. margarine), and is the largest

selling Tab. margarine in India.

5.6.4.2. Specialty 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.



5.6.5. 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

• 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

5.6.6. Paras Pharmaceuticals Private Limited

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 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

5.6.7. 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 Tab.

• Dabur Hingoli

• Pudin Hara

• Pudin Hara-G



• Dabur Shankha Pushpi

• Shilajit Gold

• Dabur Sarbyna Str



CHAPTER NO 6: CONSUMER BUYING BEHAVIOUR

OTC (Over-the-Counter, OTC) is the drug regulatory agencies by the State Department

announced, without virtue of practicing physicians and licensed assistant doctor’s prescription,

consumers can judge for themselves whether to purchase and use drugs. With the new Medical

insurance scheme, the implementation of the introduction of drug classification management

practices, non-prescription drugs catalog announcement, the patient self-treatment will increase

in a large number of retail pharmacies have emerged, consumers from open sources and adequate

supply of opportunities where to buy non-prescription products a significant increase in fast

growing pharmaceutical retail sales, non-prescription drug market opportunities. More and more

pharmaceutical companies enter the retail market in the hope that through advertising and

promotions, establish their own brand of non-prescription drugs, access to Economic benefits. In

this field, the key to the success of the company's marketing directly to consumers with the

ability to develop effective non-prescription drugs and implementation of Marketing Strategy

capabilities.

The Marketing Strategy formulation must be based on the consumer market and consumer

behavior Research basis. The consumer market need to look at: Who are the buyers; buy objects;

the purpose of purchase; buying behavior; to buy time and place of purchase. Buyers require a

study: what factors affected buyer behavior affected? How do consumers make decisions? A

typical purchase process.



6.1. OTC CONSUMER MARKET

An OTC consumer market to look at includes:

6.1.1. Buyers of OTC Product

OTC medicines concept and characteristics of the decision of the OTC drugs purchased were:

adult; have a certain ability to judge the disease can be more accurate to determine the disease

type and disease severity, there is a certain Experience in the use of drugs; in the economy have a

certain the source, you can independently control the cost of drugs; the high level of Education

and Health care, more sensitive person; work fast-paced person.

6.1.2. The Market to Buy Different Kinds of OTC Medicine

Consumers buy OTC drugs because the treatment of disease categories, manufacturers, brand,

price, dosage form, packaging, etc. exist in different distinction; also because the decision

whether to enter Medical insurance claims and different directories. Consumers generally have a

grasp of product knowledge in three areas: The product attributes and characteristics of

knowledge, positive results using the product or proceeds will help to achieve the purpose of

customer satisfaction or product value.OTC products, consumer awareness, too, the combination

of these three areas of knowledge to form their understanding of OTC products. OTC product

attributes: appearance, such as packaging, manuals, medicines appearance and open

convenience, taking convenience, taste and so on. OTC product benefits: such as efficacy, side



effects, onset of speed and security. OTC product value to meet: brand position. Access to

Medical insurance catalog for the promotion of OTC drugs is very important, the survey showed:

When Consumers often use a certain effect of a good drug into a publicly-funded medicine at

their own expense, the enjoyment of public health, nearly half of consumers will look for from a

publicly-funded drug alternative medicine, rather than at their own expense to buy the drug, only

about 13% of consumers would buy the drug at their own expense. The current non-prescription

drugs have not yet been publicly funded reimbursement restrictions, at public expense

reimbursement directory, there are many varieties of non-prescription drugs. Studies have shown

that 2 / 3 of non-prescription drugs prescribed by a doctor's prescription, and thus have access to

medical insurance compensation.

6.1.3. Buying Process (Purchase Purposes)

Consumers buy OTC drugs, for the following reasons: the treatment of small ailments;

convenient; saving time; cost savings. 99% of consumers said: They go to pharmacies got the

major reason is that small problems that they were able to detect the symptoms and to determine

the extent of mitigation. Therefore, consumers take OTC drugs are the most commonly used

treatment of everyday minor illnesses method. Patients with OTC drugs on their own some of the

common, mild disease of small self-medication, significant savings to their doctor to the hospital

queue, waiting time for treatment. At the same time, non-prescription drugs market prices of

prescription drugs cheaper, so consumers can save money.



6.1.4. Time to Buy

OTC drugs easy to buy without a prescription can be easily purchased in pharmacies. OTC drugs

generally Tab. quality and long shelf life, the basic in more than two years for the treatment of

common diseases, frequently-occurring disease, purchase a large quantity, and then do not have

to worry about expired degenerate. Therefore, OTC medicines for consumers to buy an outbreak

of diseases, or at a convenient time to buy, the way to buy

6.1.5. Place to Buy

Purchase of OTC drugs can go to: hospitals, pharmacies; medical insurance, hospitals and

pharmacies designated or not designated hospitals and pharmacies; chain stores or chain

pharmacies; a brand, service or ordinary good drugstore pharmacy; parity pharmacies; Chain

Drug Stores ; the community in the vicinity, or hospital pharmacies. For the enjoyment of

consumers in medical claims, they must choose health insurance designated hospital or

pharmacy to purchase medical insurance directory OTC medicines. Consumers concerned about

the price or purchase long-term use of drugs to consumers prefer to parity pharmacy. A

pharmacy near the hospital to get more things with a prescription. Drug quality-oriented

consumers are more willing to large chain pharmacies to buy drugs, drug quality is guaranteed.



6.2. OTC BUYER BEHAVIOR FACTORS

Affect the behavior of OTC buyers main factors are:

6.2.1. Cultural Factors

As consumers increase in literacy, Health awareness increased, for the prevention of disease and

physical health gradually pay attention to it, especially in high-income class and the elderly right

vitamin supplements to enhance immune function, disease prevention to keep fit, improve

quality of life of the OTC drug spending has increased. Now middle-aged women are more

willing to buy the OTC weight loss and beauty products.

6.2.2. Social Factors

OTC consumer buying behavior by a series of social factors, such as the consumer-related

groups, family and social roles and status. Some consumers because of the role and status of

factors, the choice to take into account the non-prescription drugs and pharmaceutical-grade

brand. OTC medicines for children and adolescents affected by consumption of the main effects

of parental family, as parents have more experience, they are OTC products, purchase and

consumption of the parents play a decisive role, in general, parents, policy-makers. They can

learn from their parents to some common diseases in the diagnosis and treatment. This will affect

the children in the adult after the OTC ideas about consumption. White-collar workers in



choosing OTC products, he is more inclined to well-known brand and RepuTab. Company’s

products, such as a joint venture drugs, more inclined to the high price of medicines.

6.2.3. Personal Factors

OTC purchasing decisions of consumers is also influenced by the impact of personal

characteristics, such as changes in consumer perceptions of their illness, characteristics of the

brand perception, the attitude of the brand to other options, in particular by its age in which the

life cycle stage, occupation, the Economic environment, lifestyle, personality and self-concept

effects. Adults, the disease strong judge who is more likely to buy more OTC drugs; self-care

and self-medication and a strong sense of the people who work fast-paced, non-reimbursed

medical expenses of people to enjoy, to pharmacies even more frequent. Many chronic diseases

such as hypertension, chronic gastritis, such as diabetic patients require long-term medication,

these patients after several doctors and prescriptions, having learned that his illness, to know

what drugs, these patients may go directly to the community retail pharmacies buy medicine.

6.2.4. Psychological Factors

India’s consumer awareness, driven by the cultural influence of traditional Indian medicine,

Indian medicine side effects generally agreed that the small, many of traditional Indian medicine

and health care role in the prevention of significant safer than Western medicine; Indian

medicine in the treatment of some chronic diseases may be more effective than Western



medicine; the role of Indian medicine a comprehensive treatment of the disease from the root. In

the onset speed, generally considered less than western medicine quick.

6.3. OTC CONSUMER DECISION-MAKING

OTC how consumers make decisions? Marketers must identify who made the purchase decision

and make a purchase decision factor, the involvement of buyers and the validity of the number of

brands to determine which consumers are buying type?

6.3.1. Buy the Role of

Initiator is that the patient, including children, elderly, male, female patients included. Affected

persons, family members, friends, doctors, pharmacy staff, advertising and other spokespersons.

Policy-makers, refers to whether to buy, why buy, how to buy, where to buy, etc. to make

complete or part of the final decision-making. Purchaser, actual procurement people. Users, the

actual consumer products at all. Children’s medicines consumers are children, policy-makers and

buyers are generally the parents. Family, the wife could help her husband to purchase health care

OTC drugs.

6.3.2. Buying Behavior

It is similar to an ordinary consumer purchasing decisions. Buying behavior to seek

diversification And prescription drugs, compared, OTC medicines have a high safety, efficacy



established, Tab. quality, easy to use and so on, so buying decision-making process is relatively

simple and low consumer involvement, and other daily consumer goods showed a similar buying

patterns. However, because the same treatment of categories of non-prescription drugs brands

many quite different, performance in the efficacy, price, packaging, corporate reputation on a

different, so the buying behavior of consumers looking to diversify

6.4. OTC PURCHASE PROCESS

OTC buying process consists of the following steps: problem awareness, Information gathering,

evaluation of available options for the purchase decision-making and post-shopping behavior.

6.4.1. Awareness of the Issue

OTC products causing consumers to buy environment: possible onset of disease, resulting in

symptoms; or disease-prone season coming early to consider buying OTC medicines, such as the

environment effects, such as pharmacy-based products in supermarkets, pharmacies and other

promotional activities would cause unplanned buying behavior occurs.

6.4.2. Information Gathering

OTC drug consumer Information is four sources: personal sources, such as family, friends,

neighbors and acquaintances. Commercial sources, such as advertising, salesmen, distributors,

packaging, displays. Public sources, such as the mass media, consumer assessment of the



organization. Source of experience, such as the use of the product. The information sources and

marketing personnel can control the uncontrollable, there are from individuals and non-personal.

Individual non-personal marketing sales staff can control the layout of media advertising their

stores, their stores advertising promotional packaging of non-medical staff officers to control

marketing, consumer experience, friends, family, media, publications and behavior. OTC Drug

Marketing personnel should be through the media, advertising, layout of their stores, their stores

advertising, promotion and packaging, and marketing personnel, etc. available to the consumer

information. In addition, doctors, shopkeepers, consumers, family members and friends can pass

OTC drug information, so in marketing, planning, paying attention to their role.

6.4.3. The Evaluation of OTC Drugs

6.4.3.1. Evaluation Factors

The evaluation of the brand of OTC drugs includes the following factors: efficacy, safety, taking

convenience, price, packaging, corporate reputation and so on. Comprehensive Evaluation of the

brand should be high purchase intent.

6.4.3.2. OTC Consumer Decision-Making Focus the Brand

Beijing Xinhua letter to Business Risk Management Co., Ltd. in 1999 to procure medicines

consumer behavior Research findings, 80% of the brand before buying, have a clear tendency.

OTC drugs for the treatment of many common diseases of the standing drugs such as cold



medicine, pain medicine, gastrointestinal medicine, skin, medicine, etc., usually in the

production of these drugs are relatively mature technology, patented Technology does not have a

competitive advantage; and it is exactly because of technical a simple process, but also to the

many manufacturers of such drugs on the market OTC drugs often have the same number of

brands, the market is fiercely competitive. Because consumers do not have the ability to

distinguish between intrinsic quality medicines, so product quality and conviction on behalf of

the brand to become the guiding consumers to purchase OTC products. During the decision-

making in a wide range of consumers tend to search for product information, so with brand

promotions to interrupt their problem-solving process is relatively easy. The success of OTC

product sales must be consumer marketing and promotion of a product's brand product sales. In

view of the brand for the evaluation of the importance of OTC drugs, so apart from medical

advice and their own experiences, the ad has actually become the people to understand an

important source of drugs and influence people to buy an important factor in the decision

making.

6.4.4. Purchase Decision-Making

Consumers in the evaluation phase may form some sort of purchase intention and preference to

buy his favorite brand, however, purchase intention and purchase decision-making between the

attitudes of others may be affected and the situation is not expected to be factors. Professionals

with purchasing decisions about the capacity of OTC drugs. Although OTC drugs without a

prescription, consumers can buy in the pharmacy, OTC medicines are increasingly closer to the

general consumer goods, but the drugs, after all, is used to treat patients, and pharmaceutical



knowledge, highly specialized, not yet a universal knowledge Therefore, consumers purchase

and use of OTC products, he is very concerned professionals such as doctors, pharmacists and

others opinions. Scott-Levin, according to the U.S. health-care consulting firm to a recent survey,

about 50% of patients according to doctors recommend the use of OTC medicines. Doctors to

patients also plays an important role in OTC sample, 35% of the patients had received samples in

the past year, and about 50% of the patients said they themselves would buy the same drugs.

Staff to communicate with consumers is an important marketing strategy. Survey results show

that: In addition to TV commercials, pharmacy clerk in procuring medicines impact on

consumers than other kinds of advertising media. It is noteworthy that, once the staff

recommendation to consumers when certain drugs, 74% of consumers will receive the views of

staff, which indicates that staff in the drug consumption can play a big role. Of particular note is

that in clear and specific brands of consumers, when staff recommended to him when the other

brand-name pharmaceuticals accounted for 66% of consumers changed their minds, they

accepted the staff's views.

6.4.5. Post-Shopping Behavior

OTC medicines have a very detailed instruction manual, consumers accordance with the text of

the description can be very convenient to use, whether the effect of satisfaction with the use of

whether there are adverse reactions, first of all depends on the drugs to choose whether or

symptomatic, if the purchase OTC drugs are not symptomatic, treatment effect will be greatly

reduced, but also may produce adverse reactions. If you choose symptomatic drugs, and then

look at the efficacy of the product itself and adverse reactions, whether good efficacy, fast onset



of action and few side effects. If you use OTC drugs to consumers after the satisfaction with the

product must strengthen his faith, will stimulate the next purchase. They tend to note the last

name of a doctor's prescription drugs, or directly carrying drug packaging box, named buy the

same product. States provide instructions on the use of OTC drug manufacturers to state clearly

that the contact telephone number intended to receive timely information on adverse reactions,

which is after-sales service for manufacturers to increase the quality of the main way.In short,

non-prescription drug marketing, who is only in understanding consumer behavior, based on the

Development of mission to target customer needs and desires are met and satisfied with the

marketing strategy, have been successful in developing the site.



CHAPTER NO 7: RESEARCH METHODOLOGY

7.1. NEED FOR PROJECT

The rapid proliferation of drugs being switched from prescription (Rx) to over-the-counter

(OTC) status has raised a number of important consumer behaviour and public policy concerns.

Given the increasing assortment and widespread availability of Rx to OTC switch drugs, how

might consumers' health care preferences change? That is, what factors influence whether a

consumer is more likely to visit their physician rather than self-medicate symptoms of heartburn

and indigestion with a new switch drug? Patents for all brand name prescription drugs eventually

expire. When this happens, manufacturers of generic drugs quickly enter the market, drastically

reducing the profits of the pharma firm that developed, tested, and originally introduced the drug

to the market. One way a pharmaceutical firm, whose patent for a specific drug has expired, can

expand their market, is to switch that drug from prescription (Rx) to OTC (over-the-counter)

status. In the USA during the last 20 years, more than 600 drugs containing ingredients that were

once available by prescription only are now sold OTC, that is, without a physician's prescription.

In fact, many drugs that were switched from Rx to OTC status outsell traditional OTC brands in

their product categories. For example, popular and familiar brands such as Tylenol, Advil,

Benadryl, Motrin, Tagamet, Gelusil, Benadryl, Revital and Rogaine successfully switched from

being available by prescription only to being available OTC at most convenience drug,

supermarket, and discount stores.



Drugs that have been switched from Rx to OTC status are unique, possessing characteristics of

both Rx and the OTC products. Some of the prominent drugs (generics) that are sold over the

counter are Paracetamol, Cetrizine, Ibuprofen. Likewise, some of the brands that are sold OTC

are Crocin, Corex, Anacin, Benadryl, Aspirin, D'cold in India. In OTC selling there is another

category of products, which have now shifted from medicinal product category to FMCG

category, prominent among them are brands like: Dettol, Moov, Borosoft, Itch guard, Krack,

Dermicool etc.There are many issues like how to build consumer preferences towards the OTC

products. There are various ways through which the preferences could be altered. This could be

done through the effective brand building of the OTC product. The second issue could be on how

to build a strong brand identity for the OTC product. The procedures and measures should be

catered to in order to build strong brand equity. An analysis of the role of government's

regulations and policies as a catalyst or barrier towards the OTC product can play a crucial role.

Government's decision can play a strategic role in defining the future of the industry or the fate

of the products and these procedures should be critically dealt. The third issue can be on the role

of advertisements, celebrity endorsements and the concept of brand management in building an

effective brand image of the OTC product. How an image of the OTC product is affected and

what impact the modern ways of brand building and management have on the OTC products.

In the world of ethical pharmaceuticals, the physician is still of prime importance as has been the

case in the past. Now, however, new marketing efforts are being directed at the consumer.

Prime-time television advertising and whole page newspaper ads are happening now, certainly

unheard of in the past. For OTC pharmaceuticals, the situation is reversed. While the consumer

has been the primary focus in the past, and will certainly not be ignored in the future, campaigns



to medical professionals are becoming more commonplace. As we can see, there are many

changes in the roles of physicians and patients, and research has responded to these changes in a

variety of ways.

7.2. RESEARCH OBJECTIVE

Objectives

1. To understand the consumer’s attitude towards OTC products of the pharmaceutical industry

2. To understand the healthcare products’ contribution and also its effects on pharmaceutical

Market

3. To determine the extent to which the respondents prefer self-medication instead of going

to the doctor for common health problems

4. To find out the criteria on which the consumers rely for making their purchase decision

regarding OTC products

5. To find out the extent to which consumers read the labeling information before purchase

6. To find out the extent to which the respondents perceive OTC products as safe to use

7. To understand the influence of advertising on consumer behavior towards them

8. To find out the most preferred brand in each OTC product category

9. To know the frequency of purchase of OTC products by the consumers

10. To know the preferred medium of communication for advertisement of OTC products



7.3. LIMITATION 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 Mumbai

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 11 categories of OTC products segment were included based on frequency of usage

There may be certain loopholes in the information provided by the respondents while filling up

the questionnaires. The sample size taken for survey may not represent the whole population of

Mumbai.

7.5. 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

Research Design: Descriptive Research

Sampling Technique: Convenience sampling

Sample Size: 120 sampling units selected from the Target population

Universe: OTC user from pediatrics to geriatrics patients

Sample:

Doctor: general practioner 35 no of samples

Chemist: 35 no of sample

Consumer: 50 no sample



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 Mumbai city.

Data Sources:

Primary Source: Questionnaire

Secondary Sources: Books, journals, websites, reports

7.6. SOURCE OF DATA

Primary data through survey using a structured questionnaire.

Secondary data from previous research conducted and literatures if any.

7.7. SAMPLING PROCEDURE

Simple Random / Convenient Sampling

7.8. SAMPLING TECHNIQUE

Descriptive research will be conducted

Primary research questionnaire will be given

Convenience sampling will be carried out



CHAPTER NO 8: DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS

8.1 RESPONDENT PROFILE

8.1.1. AGE

Fig.8.1: Indicates the Age Profile of the Respondent

From the above figure, we can interpret that most of the respondent in age profile belongs to the

age group of 25-45 year

8.1.2. Gender



Fig.8.2: Indicates the Gender Profile of the Respondent

From the above figure, we can interpret that most of the respondent in gender profile belongs to

the gender group of female



8.1.3. Nature of family

Fig.8.3: Indicates the Nature of Family Profile of the Respondent

From the above figure, we can interpret that most of the respondent stays in a nuclear family

environment



8.1.4. Education

Fig.8.4: Indicates the Education Qualification Profile of the Respondent

From the above figure, we can interpret that most of the respondent education profile are well

educated in which majority of them are graduate and medical professionals as per the

requirement of survey



8.1.5. Family Size

Fig.8.5: Indicates the Family Size Profile of the Respondents

From the above figure, we can interpret that most of the respondent family size is between four

to six people in a family



8.2. DESCRIPTIVE ANALYSIS

Q.No.1. Overall how would you rate your current health?

8.2.1. Descriptive analysis for representation of overall health of respondent

Fig.8.6: Indicates the Frequency of Overall Current Health of the Respondent

From the above figure, we can interpret that most of the respondents have very good overall

health i.e.61 respondent out of 120 sample size have very good overall health



Q.No.2. Think about the condition when you had suffered from some general problem like

cold, cough, sore throat etc recently, what did you do generally in these ailments?

8.2.2. Descriptive analysis for representation of respondent taking self medication in minor

ailments

Fig.8.7: Indicates the Frequency of Respondent taking Self Medication in Minor Ailments

From the above figure, we can interpret that most of the respondents have self medication when

they suffer from minor ailments which help them save cost and time to visit the doctor for minor

problems i.e.35 respondent out of 120 sample size have purchased OTC medicine to treat their

minor problem



Q.No.4. Would you say that you are taking more, fewer or about same number of product

than you did five year ago?

8.2.3. Descriptive analysis for representation usage number of product over the years by

respondent

Fig.8.8: Indicates the Frequency of Number of Products Usage over the Years by the

Respondent

From the above figure, we can interpret that most of the respondents have used more number

OTC product over the period of five years for self medication i.e.41 respondent out of 120

sample size have more usage of different number of product over the years



Q.No.5. Are you using this OTC product more, less or about same as five year ago?

8.2.4. Descriptive analysis for representation frequency of usage of number of product over

the years by respondent

Fig.8.9: Indicates the Frequency of Number of Products Usage Frequency over the Years by

the Respondent

From the above figure, we can interpret that most of the respondents have agreed that they use

OTC product more frequently when compared with previous five years for self medication i.e.42

respondent out of 120 sample size have high frequency of usage of different OTC product over

the years



Q.No.11. When you buy or take the OTC medicine for the first time, what information do

you read on the package first?

8.2.5. Descriptive analysis for representation of usage of packaging labels

Fig.8.10: Indicates the Frequency of Usage of Packaging Labels

From the above figure, we can interpret that most of respondents do read packaging labels when

they purchase OTC medicine for the first time to see the direction of usage and dosage levels to

be used for effective response i.e.56 respondent out of 120 sample size read direction of usage on

the label



Q.No.12. Are you likely to re-read the label again in the following circumstances?

8.2.6. Descriptive analysis for representation re-read packaging labels in next purchase of

same medicine

Fig.8.11: Indicates the Frequency of Re-Read Packaging Labels in any Circumstances

From the above figure, we can interpret that most of respondents don’t read packaging labels

when they purchase same OTC medicine next time until and unless the OTC medicine is used for

child i.e.51 respondent out of 120 sample size don’t re-read labels and 52 respondent re-read

labels if the OTC medicine is used for child



Q.No.14. Based on what you know, what is most accurate way to determine the amount of

medicine to be taken in particular indication?

8.2.7. Descriptive analysis for representation knowledge of usage and dosage of OTC

product

Fig.8.12: Indicates the Frequency of Knowledge of Usage and Dosage of OTC Product

From the above figure, we can interpret that most of respondents do not have the knowledge

about the dosage calculation for a drug i.e.44 respondent out of 120 sample size don’t have any

knowledge about usage of OTC product



Q.No.13. To the best of recollection, what is Active ingredient in brand Crocin?

8.2.8. Descriptive analysis for representation awareness about OTC product

Fig.8.13: Indicates the Frequency of Awareness about an OTC Product

From the above figure, we can interpret that most of respondents do not have the awareness

about OTC Product i.e.71 respondent out of 120 sample size don’t have any awareness about the

content of most used OTC product



Q.No.15. Have you ever taken more than the recommended dose of a non-prescription

medicine?

8.2.9. Descriptive analysis for representation over usage of an OTC product

Fig.8.14: Indicates the Frequency about Over Usage of an OTC Product

From the above figure, we can interpret that most of respondents are not sure about their over

usage of an OTC i.e.48 respondent out of 120 sample size are not sure about over usage of an

OTC product



Q.No.16. If yes, how much more have you taken?

8.2.10. Descriptive analysis for representation the amount of over usage of an OTC product

Fig.8.15: Indicates the Frequency about Amount of Over Usage of an OTC Product

From the above figure, we can interpret that most of respondents are not sure about their over

usage of an OTC but those who knows about their over usage take next dose sooner than

directed i.e.23 respondent out of 47 sample size who know that they take over dosage take next

dose sooner than directed on label of an OTC product



Q.No.17.What is that one reason for taking more medicine?

8.2.11. Descriptive analysis for representation the reason for over usage of an OTC product

Fig.8.16: Indicates the Frequency Reason for the Over Usage of an OTC Product

From the above figure, we can interpret that most of respondents are don’t know the reason for

over usage of an OTC product but those who knows the reason for over usage of an OTC product

they use to treat the severe symptoms i.e.18 out of 47 sample size who know that they take over

dosage of an OTC product for the reason to treat severe symptoms



Q.No.18. If you have more than one symptom at same time like headache, sore throat, how

likely are you to take more than one OTC medicine?

8.2.12. Descriptive analysis for representation usage of multidrug to treat multiple

symptoms

Fig.8.17: Indicates the Frequency of Multidrug Usage to treat Multiple Symptoms

From the above figure, we can interpret that most of respondents are likely to use multidrug to

treat multiple symptom in same disease i.e.33 out of 120 sample size use multidrug therapy to

treat the disease



Q.No.19. Have you ever experienced any negative reaction or side effect from taking an

OTC product?

8.2.13. Descriptive analysis for representation experience of side effect of an OTC product

Fig.8.18: Indicates the Frequency of Experience of Side Effect after Usage of an OTC

Product



From the above figure, we can interpret that most of respondents experienced negative reaction

or side effect after using an OTC product i.e.94 out of 120 sample size experienced negative

reaction after usage of an OTC product

Q.No.20. what did you do mostly to stop the negative reaction?

8.2.14. Descriptive analysis for representation response to tackle side effect of an OTC

product



Fig.8.19: Indicates the Frequency Response to tackle Side Effect of an OTC Product

From the above figure, we can interpret that most of respondent experienced negative reaction or

side effect after using an OTC product they tackle the side effect reaction by contacting the

doctor i.e.39 out of 101 sample size contact doctor to treat the experienced negative reaction of

an OTC product

Q.No.3. Do you use OTC drugs or medication for mentioned below indication If Yes, please

indicates the frequency of usage?

8.2.15. Descriptive analysis for representation response to frequency of suffering from

fever



Fig.8.20: Indicates the Frequency Response of Suffering from Fever

From the above figure, we can interpret that most of respondent experienced fever every

bimonthly i.e.37 out of 120 sample size experience fever every bimonthly



8.2.16. Descriptive analysis for representation response to frequency of suffering from pain



Fig.8.21: Indicates the Frequency Response of Suffering from Pain

From the above figure, we can interpret that most of respondent experienced pain every monthly

i.e.36 out of 120 sample size experience pain every monthly





8.2.17. Descriptive analysis for representation response to frequency of suffering from cold

flu

Fig.8.22: Indicates the Frequency Response of Suffering from Cold Flu

From the above figure, we can interpret that most of respondent experienced cold flu every half

yearly i.e.43 out of 120 sample size experience cold flu every half yearly






acidity

Fig.8.23: Indicates the Frequency Response of Suffering from Acidity

From the above figure, we can interpret that most of respondent experienced acidity every

biweekly i.e.32 out of 120 sample size experience acidity every biweekly






vomiting

Fig.8.24: Indicates the Frequency Response of Suffering from Vomiting

From the above figure, we can interpret that most of respondent experienced vomiting every half

yearly i.e.48 out of 120 sample size experience vomiting every half yearly






diahorrea

Fig.8.25: Indicates the Frequency Response of Suffering from Diahorrea

From the above figure, we can interpret that most of respondent experienced diahorrea every

bimonthly i.e.43 out of 120 sample size experience vomiting bimonthly



8.2.21. Descriptive analysis for representation response to frequency usage of vitamin



Fig.8.26: Indicates the Frequency Response Usage of Vitamin

From the above figure, we can interpret that most of respondent use vitamin every half yearly

i.e.37 out of 120 sample size use vitamin every half yearly





8.2.22. Descriptive analysis for representation response to frequency of suffering from skin

disorder

Fig.8.27: Indicates the Frequency of Suffering from Skin Disorder

From the above figure, we can interpret that most of respondent suffering from skin disorder

every bimonthly i.e.28 out of 120 sample size suffering from skin disorder every bimonthly

Q.No.10.Whose Advice is taken when you decide on which OTC drug to buy?



8.2.23. Descriptive analysis for representation response to an advice taken by doctor to

purchase an OTC product

Fig.8.28: Indicates the Importance of Doctor in Advice to Purchase OTC Product

From the above figure, we can interpret that most of respondent consider doctor as an important

person to take advice to buy an OTC product i.e.50 out of 120 sample size consider doctor

advice as rank 1 for purchase of OTC medicine




8.2.24. Descriptive analysis for representation response to an advice taken by pharmacist to

purchase an OTC product

Fig.8.29: Indicates the Importance of Pharmacist in Advice to Purchase OTC Product

From the above figure, we can interpret that most of respondent don’t consider pharmacist as an

important person to take advice to buy an OTC product i.e.46 out of 120 sample size consider

pharmacist advice as rank 4 for purchase of OTC medicine




8.2.25. Descriptive analysis for representation response to an advice taken by family,

friends, colleagues, acquaintance to purchase an OTC product

Fig.8.30: Indicates the Importance of Family, Friends, Colleagues, Acquaintance in Advice to

Purchase OTC Product

From the above figure, we can interpret that most of respondent consider family, friends,

colleagues, acquaintance as an most important people to take advice to buy an OTC product i.e.

50 out of 120 sample size consider family, friends, colleagues, acquaintance advice as rank 1 for

purchase of OTC medicine




8.2.26. Descriptive analysis for representation response to an advice taken by media

advertisement to purchase an OTC product

Fig.8.31: Indicates the Importance of Media Advertisement in Advice to Purchase OTC

Product

From the above figure, we can interpret that most of respondent consider media advertisement as

an not so important factor to consider for taking advice to buy an OTC product i.e. 37 out of 120

sample size consider media advertisement advice as rank 6 for purchase of OTC medicine




8.2.27. Descriptive analysis for representation response to an advice taken by past

experience to purchase an OTC product

Fig.8.32: Indicates the Importance of Past Experience as an Advice to Purchase OTC Product

From the above figure, we can interpret that most of respondent consider past experience as an

important factor to take advice to buy an OTC product i.e.40 out of 120 sample size consider

past experience as an advice on rank 2 for purchase of OTC medicine

Q.No.10.Whose Advice is taken when you decide on which OTC drug to buy?Rehan Faquih Rizvi Institute of Management Studies & Research


8.2.28. Descriptive analysis for representation response to an advice taken by

advertisement on chemist store to purchase an OTC product

Fig.8.33: Indicates the Importance of Advertisement on Chemist Store in Advice to Purchase

OTC Product

From the above figure, we can interpret that most of respondent consider advertisement on

chemist store as an not so important factor to consider for taking advice to buy an OTC product

i.e. 52 out of 120 sample size consider media advertisement advice as rank 5 for purchase of

OTC medicine




8.2.29. Descriptive analysis for representation response to an advice taken from internet

information to purchase an OTC product

Fig.8.34: Indicates the Importance of Internet Information in Advice to Purchase OTC

Product

From the above figure, we can interpret that most of respondent consider internet information as

an least important factor to consider for taking advice to buy an OTC product i.e. 78 out of 120

sample size consider internet information advice as rank 7 for purchase of OTC medicine

8.3. DATA INTERPRETATION OR ADVANCE ANALYSIS



8.3.1. Cross Tab

Age * Overall how would you rate your current health

Ho: There is no significant difference between overall health of people and the age of a person

Ha: There is a significant difference between the overall health of people and the age of a person

Crosstab

Count

Overall how would you rate your current health

Totalexcellent Very good Fair poor Very poor

Age Below 25 yrs 4 17 3 0 0 24

25-35 6 19 9 4 1 39

35-45 0 19 9 2 0 30

Above 45 years 1 6 12 7 1 27

Total 11 61 33 13 2 120

Tab.8.1: Crosstab to identify overall health with respect to age of the person

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 29.598a 12 .003

Likelihood Ratio 34.770 12 .001

Linear-by-Linear Association 18.583 1 .000

N of Valid Cases 120

a. 12 cells (60.0%) have expected count less than 5. The minimum expected count is .40.

Tab.8.2: Chi square to measure the overall health with respect to age of the person

Since, Value of Pearson chi square <0.05, we accept alternative hypothesis

Hence, we accept Ha.

There is significant difference between the overall health and the age of the person



Age * would you say that you are taking more, fewer or about same number of product


Ho: There is no significant difference between number of product usage and the age of a person

Ha: There is a significant difference between number of product usage and the age of a person

Crosstab

Count

Would you say that you are taking more, fewer or about same number of product than you did five year ago?

More Fewer About same Don't know Total

Age Below 25 yrs 7 4 11 2 24

25-35 13 15 8 3 39

35-45 12 6 10 2 30

Above 45 years

9 10 5 3 27

Total 41 35 34 10 120

Tab.8.3: Crosstab to identify number of product usage with respect to age of the person

Chi-Square Tests

Value df Asymp. Sig. (2-sided)



Linear-by-Linear Association .573 1 .449


a. 4 cells (25.0%) have expected count less than 5. The minimum expected count is 2.00.

Tab.8.4: Chi square to measure number of product usage with respect to age of the person

Since, Value of Pearson chi square >0.05, we accept Ho null hypothesis

Hence, we accept Ho.

There is no significant difference between number of product usage and the age of the person



Age * Are you likely to re-read the label again in the following circumstances?

Ho: There is no significant difference between usage of label and the age of a person

Ha: There is a significant difference between usage of label and the age of a person

Crosstab

Count

Are you likely to re-read the label again in the following circumstances?

OTC medicine to a child

OTC medicine with prescription drug at same

OTC medicine with OTC medicine at same time

Don't read label Other Total

Age Below 25 yrs

11 3 2 8 0 24

25-35 15 2 3 18 1 39

35-45 16 4 1 9 0 30

Above 45 years

10 0 0 16 1 27

Total 52 9 6 51 2 120

Tab.8.5: Crosstab to identify usage of packaging labels with respect to age of the person



Chi-Square Tests

Value DfAsymp. Sig. (2-sided)



Linear-by-Linear Association

.818 1 .366


Tab.8.6: Chi square to measure usage of packaging labels

with respect to age of the person

Since, Value of Pearson chi square >0.05, we accept Ho null

hypothesis


There is no significant difference between usage of label and

the age of the person



Age * Based on what you know, what is most accurate way to determine the amount of

medicine to be taken in particular indication?

Ho: There is no significant difference between knowledge of dosage and the age of a person

Ha: There is a significant difference between knowledge of dosage and the age of a person

Crosstab

Count

Based on what you know, what is most accurate way to determine the amount of medicine to be taken in particular indication?

Weight Age

Both weight and age

Neither weight nor age

Don't know/not sure Total

Age Below 25 yrs

4 3 3 3 11 24

25-35 3 10 6 6 14 39

35-45 3 3 5 8 11 30

Above 45 years

5 4 5 5 8 27

Total 15 20 19 22 44 120

Tab.8.7: Crosstab to identify knowledge of usage of medicine with respect to age of the person



Chi-Square Tests

Value dfAsymp. Sig. (2-sided)




.294 1 .587



Tab.8.8: Chi square to measure the knowledge of usage of

medicine with respect to age of the person



There is no significant difference between knowledge of dosage and the age of the person



Age * Have you ever taken more than the recommended dose of a non-prescription

medicine?

Ho: There is no significant difference between more usage of medicine and the age of a person

Ha: There is a significant difference between more usage of medicine and the age of a person

Crosstab

Count

Have you ever taken more than the recommended dose of a non-prescription medicine?

Yes NO Not sure Total

Age Below 25 yrs 3 11 10 24

25-35 12 7 20 39

35-45 15 4 11 30

Above 45 years 12 8 7 27

Total 42 30 48 120

Tab.8.9: Crosstab to identify excessive usage of medicine with respect to age of the person

Chi-Square Tests





5.789 1 .016


Tab.8.10: Chi square to measure excessive usage of

medicine with respect to age of the person

Since, Value of Pearson chi square <0.05, we reject Ho null hypothesis


There is no significant difference between more usage of medicine and the age of the person



Age * what is the reason for taking more medicine is?

Ho: There is no significant difference between reason for taking more medicine and the age of a

person

Ha: There is a significant difference between reason for taking more medicine and the age of a

person

Crosstab

Count

What is the reason for taking more medicine is?

0-No response

Believe it relieves more quickly

Had severe symptoms

Didn't get any better by taking recommended dose

Used prescription Total

Age Below 25 yrs

19 0 4 1 0 24

25-35 27 0 5 6 1 39

35-45 14 5 5 5 1 30

Above 45 years

13 2 4 2 6 27

Total 73 7 18 14 8 120

Tab.8.11: Crosstab to identify reason for excessive usage of medicine with respect to age of

the person



Chi-Square Tests





8.155 1 .004



Tab.8.12: Chi square to measure the reason for excessive

usage of medicine with respect to age of the person



There is no significant difference between more usage of medicine and the age of the person



Age * Have you ever experienced any negative reaction or side effect from taking an OTC

product?

Ho: There is no significant difference between negative reaction experienced and the age of a

person

Ha: There is a significant difference between negative reaction experienced and the age of a

person

Crosstab

Count

Have you ever experienced any negative reaction or side effect from taking an OTC product?

Yes No Not sure Total

Age Below 25 yrs 17 5 2 24

25-35 33 5 1 39

35-45 19 9 2 30

Above 45 years

25 1 1 27

Total 94 20 6 120

Tab.8.13: Crosstab to identify experience of negative reaction with respect to age of the person



Chi-Square Tests





.915 1 .339



Tab.8.14: Chi square to measure the experience of negative reaction with respect to age of the person



There is no significant difference between negative reaction experienced and the age of the

person





Age * Pain

Ho: There is no significant difference between frequency of suffering from pain and the age of a

person

Ha: There is a significant difference between frequency of suffering from pain and the age of a

person

Crosstab

Count

Pain

Daily Weekly Biweekly Monthly Bimonthly Half yearly Yearly Total

Age

Below 25 yrs 0 2 6 3 6 6 1 24

25-35 0 0 7 13 12 7 0 39

35-45 0 2 3 14 9 2 0 30

Above 45 years 1 4 12 6 3 1 0 27

Total 1 8 28 36 30 16 1 120

Tab.8.15: Crosstab to identify the frequency of suffering with pain with respect to age of the

person



Chi-Square Tests





13.312 1 .000



Tab.8.16: Chi square to measure the frequency of suffering with pain with respect to age of the person



There is significant difference between frequency of suffering from pain and the age of the

person





Age * Acidity

Ho: There is no significant difference between frequency of suffering from acidity and the age of

a person

Ha: There is a significant difference between frequency of suffering from acidity and the age of a

person

Crosstab

Count

Acidity

Daily Weekly Biweekly

Monthly Bimonthly Half yearly Total

Age

Below 25 yrs 3 3 10 2 5 1 24

25-35 6 5 7 11 8 2 39

35-45 2 7 11 5 2 3 30

Above 45 years 7 8 4 5 2 1 27

Total 18 23 32 23 17 7 120

Tab.8.17: Crosstab to identify the frequency of suffering from acidity with respect to age of

the person



Chi-Square Tests





2.977 1 .084



Tab.8.18: Chi square to measure the frequency of suffering from acidity with respect to age of the person



There is no significant difference between frequency of suffering from acidity and the age of the

person





Age * Skin Disorder

Ho: There is no significant difference between frequency of suffering from skin disorder and the

age of a person

Ha: There is a significant difference between frequency of suffering from skin disorder and the

age of a person

Crosstab

Count

Skin Disorder


Age

Below 25 yrs 0 7 0 2 9 6 0 24

25-35 0 3 9 5 13 6 3 39

35-45 0 1 5 8 6 4 6 30

Above 45 years 2 4 5 7 0 6 3 27

Total 2 15 19 22 28 22 12 120

Tab.8.19: Crosstab to identify the frequency of suffering from skin disorder with respect to

age of the person



Chi-Square Tests





.061 1 .804



Tab.8.20: Chi square to measure the frequency of suffering from skin disorder with respect to age of the person



There is significant difference between frequency of suffering from skin disorder and the age of

the person



Q.No.6. what makes you take decision on your own to purchase medicine?

Age * Past experience

Ho: There is no significant difference between past experience as the influence of purchase of

OTC product and the age of a person

Ha: There is a significant difference between past experience as the influence of purchase of


Crosstab

Count

Past experience

Disagree Undecided Agree Strongly Agree Total

Age Below 25 yrs 1 3 10 10 24

25-35 0 9 13 17 39

35-45 0 10 12 8 30

Above 45 years 0 9 7 11 27

Total 1 31 42 46 120

Tab.8.21: Crosstab to identify influence of past experience in purchase of OTC drug with

respect to age of the person



Chi-Square Tests






a. 4 cells (25.0%) have expected count less than 5. The minimum expected count is .20.Tab.8.22: Chi square to measure the influence of past experience in purchase of OTC drug

with respect to age of the person


Hence, we accept Ho. There is no significant difference between past experience as the influence

of purchase of OTC product and the age of the person




Age * Advertisement

Ho: There is no significant difference between advertisement as the influence of purchase of


Ha: There is a significant difference between advertisement as the influence of purchase of OTC

product and the age of a person

Crosstab

Count

Advertisement

Strongly Disagree Disagree Undecided Agree

Strongly Agree Total

Age Below 25 yrs 3 10 6 5 0 24

25-35 6 14 11 8 0 39

35-45 4 5 11 9 1 30

Above 45 yrs 5 7 11 4 0 27

Total 18 36 39 26 1 120

Tab.8.23: Crosstab to identify influence of advertisement in purchase of OTC drug with




Chi-Square Tests





.185 1 .667


a. 7 cells (35.0%) have expected count less than 5. The minimum expected count is .20.Tab.8.24: Chi square to measure the influence of advertisement in purchase of OTC drug with respect to age of the personSince, Value of Pearson chi square >0.05, we accept Ho null hypothesis Hence, we accept Ho.

There is no significant difference between advertisement as the influence of purchase of OTC

product and the age of the person




Age * Chemist promotion

Ho: There is no significant difference between chemist promotion as the influence of purchase of


Ha: There is a significant difference between chemist promotion as the influence of purchase of


Crosstab

Count

Chemist promotion



Age Below 25 yrs 1 7 8 5 3 24

25-35 2 7 8 15 7 39

35-45 0 2 8 14 6 30

Above 45 yrs 2 4 8 8 5 27

Total 5 20 32 42 21 120

Tab.8.25: Crosstab to identify influence of chemist promotion in purchase of OTC drug with




Chi-Square Tests





1.431 1 .232


a. 8 cells (40.0%) have expected count less than 5. The minimum expected count is 1.00.Tab.8.26: Chi square to measure the influence of chemist promotion in purchase of OTC drug with respect to age of the personSince, Value of Pearson chi square >0.05, we accept Ho null hypothesis. Hence, we accept Ho.

There is no significant difference between chemist promotion as the influence of purchase of

OTC product and the age of the person



Q.No.7. please indicate the importance of following attribute in a purchase of OTC drug

Age * Family /Friend Recommendation

Ho: There is no significant difference between family or friend recommendation as the influence

of purchase of OTC product and the age of a person

Ha: There is a significant difference between family or friend recommendation as the influence


Crosstab

Count

Family /Friend Recommendation

Unimportant

Of little importance

Moderately important Important

Very important Total

Age

Below 25 yrs

4 6 5 2 7 24

25-35 6 11 8 3 11 39

35-45 5 2 6 5 12 30

Above 45 yrs

5 6 7 2 7 27

Total 20 25 26 12 37 120

Tab.8.27: Crosstab to identify influence of family /friends recommendation in purchase of

OTC drug with respect to age of the person



Chi-Square Tests





.070 1 .792


a. 6 cells (30.0%) have expected count less than 5. The minimum expected count is 2.40.Tab.8.28: Chi square to measure the influence of family/friends recommendation in purchase of OTC drug with respect to age of the personSince, Value of Pearson chi square >0.05, we accept Ho null hypothesis


There is no significant difference between family or friend recommendation as the influence of

purchase of OTC product and the age of the person



Q.No.8. Have you seen advertisement of OTC drug recently, if Yes, please indicate if you

have use or recommended it to others?

Age * Magazine

Ho: There is no significant difference between advertisement effect of magazine as the influence


Ha: There is a significant difference between advertisement effect of magazine as the influence


Crosstab

Count

Magazine

Definitely recommend/use

Probably will recommend/ use

Not sure

Probably will not recommend /use

Definitely will not recommend/use

Never used/ Recommended Total

Age Below 25 yrs

2 9 7 3 3 0 24

25-35 4 16 0 5 4 10 39

35-45 2 12 10 2 4 0 30

Above 45 years

6 13 2 2 3 1 27

Total 14 50 19 12 14 11 120

Tab.8.29: Crosstab to identify advertisement effect of magazine influences in purchase of

OTC drug with respect to age of the person



Chi-Square Tests





2.499 1 .114


a. 19 cells (79.2%) have expected count less than 5. The minimum expected count is 2.20.Tab.8.30: Chi square to measure advertisement effect of magazine influences in purchase of OTC drug with respect to age of the person



There is significant difference between advertisement effect of magazine as the influence of




Gender * Overall how would you rate your current health?

Ho: There is no significant difference between overall health and gender of people

Ha: There is a significant difference between overall health and gender of people

Crosstab

Count

Overall how would you rate your current health?

Excellent Very good good PoorVery poor Total

Gender Male 4 25 17 9 2 57

Female 7 36 16 4 0 63

Total 11 61 33 13 2 120

Tab.8.31: Crosstab to identify overall health with respect to gender of the person

Chi-Square Tests







Tab.8.32: Chi square to measure the overall health with respect to gender of the person


Hence, we accept Ho and reject Ha.

There is no significant difference between overall health and gender of people



Gender * Would you say that you are taking more, fewer or about same number of product


Crosstab

Count



Gender Male 20 14 18 5 57

Female 21 21 16 5 63

Total 41 35 34 10 120

Tab.8.33: Crosstab to identify number of product usage with respect to gender of the person

Chi-Square Tests





.117 1 .733



Tab.8.34: Chi square to measure number of product usage with respect to gender of the

person


Hence, we accept Ho and reject Ha

There is no significant difference between number of product usage and gender



Gender * Are you likely to re-read the label again in the following circumstances?

Ho: There is no significant difference between usage of packaging instruction and gender of

people

Ha: There is a significant difference between usage of packaging instruction and gender of

people

Crosstab

Count






Gender Male 24 5 2 25 1 57

Female 28 4 4 26 1 63

Total 52 9 6 51 2 120

Tab.8.35: Crosstab to identify usage of packaging labels with respect to gender of the person



Chi-Square Tests


Pearson Chi-Square .807a 4 .937

Likelihood Ratio .818 4 .936


.039 1 .844



Tab.8.36: Chi square to measure usage of packaging labels with respect to gender of the person



There is no significant difference between usage of packaging instruction and gender of people



Gender * If you have more than one symptom at same time like headache, sore throat, how

likely are you to take more than one OTC medicine?

Ho: There is no significant difference between usage of multiple drug and gender of people

Ha: There is a significant difference between usage of multiple drug and gender of people

Crosstab

Count

If you have more than one symptom at same time like headache, sore throat, how likely are you to take more than one OTC medicine?

Not at all likely

Not very likely

Somewhat likely

Very likely

Extremely likely Total

Gender Male 7 19 11 10 10 57

Female 7 11 12 23 10 63

Total 14 30 23 33 20 120

Tab.8.37: Crosstab to identify excessive usage of multidrug with respect to gender of the

person

Chi-Square Tests





2.068 1 .150


a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 6.65.

Tab.8.38: Chi square to measure multidrug usage of medicine with respect to gender of the person.



There is no significant difference between usage of multiple drug and gender of people



Gender * Have you ever experienced any negative reaction or side effect from taking an

OTC product?

Ho: There is no significant difference between negative reaction or side effect and gender of

people

Ha: There is a significant difference between negative reaction or side effect and gender of

people

Crosstab

Count

Have you ever experienced any negative reaction or side effect from taking an OTC product?

Yes No Not sure Total

Gender Male 47 8 2 57

Female 47 12 4 63

Total 94 20 6 120

Tab.8.39: Crosstab to identify experience of negative reaction with respect to gender of the

person



Chi-Square Tests





1.148 1 .284



Tab.8.40: Chi square to measure the experience of negative reaction with respect to gender of

the person



There is no significant difference between negative reaction or side effect and gender of people





Gender * Pain

Ho: There is no significant difference between frequency of pain suffering and gender of people

Ha: There is a significant difference between frequency of pain suffering and gender of people

Crosstab

Count

Pain


Gender Male 0 4 13 16 15 9 0 57

Female 1 4 15 20 15 7 1 63

Total 1 8 28 36 30 16 1 120

Tab.8.41: Crosstab to identify the frequency of suffering with pain with respect to gender of

the person

Chi-Square Tests





.280 1 .597



Tab.8.42: Chi square to measure the frequency of suffering with pain with respect to gender

of the person



There is no significant difference between frequency of pain suffering and gender of people





Gender * Acidity

Ho: There is no significant difference between frequency of acidity suffering and gender of

people

Ha: There is a significant difference between frequency of acidity suffering and gender of people

Crosstab

Count

Acidity

Daily Weekly Biweekly Monthly Bimonthly Half yearly Total

Gender Male 9 12 15 9 7 5 57

Female 9 11 17 14 10 2 63

Total 18 23 32 23 17 7 120

Tab.8.43: Crosstab to identify the frequency of suffering from acidity with respect to gender of

the person

Chi-Square Tests





.017 1 .896



Tab.8.44: Chi square to measure the frequency of suffering from acidity with respect to

gender of the person





There is no significant difference between frequency of acidity suffering and gender of people



Gender * Skin Disorder

Ho: There is no significant difference between frequency of skin problem suffering and gender

of people

Ha: There is a significant difference between frequency of skin problem suffering and gender of

people

Crosstab

Count

Skin Disorder

Daily WeeklyBiweekly Monthly Bimonthly

Half yearly Yearly Total

Gender

Male 1 6 9 10 16 10 5 57

Female

1 9 10 12 12 12 7 63

Total 2 15 19 22 28 22 12 120





Chi-Square Tests





.045 1 .833



Tab.8.46: Chi square to measure the frequency of suffering from skin disorder with respect to


Since, Value of Pearson chi square >0.05, we accept Ho null hypothesis Hence, we accept Ho

and reject Ha. There is no significant difference between frequency of skin problem suffering

and gender of people




Gender * Past experience


OTC product and gender of a person



Crosstab

Count

Past experience



Female 1 16 20 26 63

Total 1 31 42 46 120


respect to gender of the person

Chi-Square Tests





.069 1 .793



with respect to gender of the person



Since, Value of Pearson chi square >0.05, we accept Ho null hypothesis Hence, we accept Ho

and reject Ha. aThere is no significant difference between past experience as the influence of

purchase of OTC product and gender of a person


Gender * Advertisement




product and gender of a person

Crosstab

Count

Advertisement



Gender Male 11 16 16 13 1 57

Female 7 20 23 13 0 63

Total 18 36 39 26 1 120





Chi-Square Tests





.144 1 .704


a. 2 cells (20.0%) have expected count less than 5. The minimum expected count is .48.Tab.8.50: Chi square to measure the influence of advertisement in purchase of OTC drug

with respect to gender of the person

Since, Value of Pearson chi square >0.05, we accept Ho null hypothesis Hence, we accept Ho.


product and gender of a person



Q.No.7. please indicate the importance of following attribute in a purchase of OTC drug?

Gender * Price

Ho: There is no significant difference between price as an attribute that influence of purchase of


Ha: There is a significant difference between price as an attribute that influence of purchase of


Crosstab

Count

Price


Moderately important Important Very important Total


Female 9 9 26 19 63

Total 28 27 38 27 120

Tab.8.51: Crosstab to identify influence of price in purchase of OTC drug with respect to


Chi-Square Tests





13.020 1 .000


Tab.8.52: Chi square to measure the influence of price in purchase of OTC drug with respect

to gender of the person




Hence, we accept Ha and reject Ho. There is significant difference between price as an attribute

that influence of purchase of OTC product and gender of a person


Gender * Promotion

Ho: There is no significant difference between promotion as an attribute that influence of


Ha: There is a significant difference between promotion as an attribute that influence of purchase

of OTC product and gender of a person

Crosstab

Count

Promotion

UnimportantOf little importance



Gender

Male 3 12 13 20 9 57

Female 0 15 23 20 5 63

Total 3 27 36 40 14 120

Tab.8.53: Crosstab to identify influence of promotion in purchase of OTC drug with respect to




Chi-Square Tests





.363 1 .547


a. 2 cells (20.0%) have expected count less than 5. The minimum expected count is 1.43.Tab.8.54: Chi square to measure the influence of promotion in purchase of OTC drug with



Hence, we accept Ho and reject Ha. There is no significant difference between promotion as an

attribute that influence of purchase of OTC product and gender of a person




Gender * Pharmacist recommendation

Ho: There is no significant difference between pharmacist recommendation as an attribute that

influence of purchase of OTC product and gender of a person

Ha: There is a significant difference between pharmacist recommendation as an attribute that


Crosstab

Count

Pharmacist recommendation



Gender Male 9 32 16 57

Female 11 31 21 63

Total 20 63 37 120

Tab.8.55: Crosstab to identify influence of Pharmacist recommendation in purchase of OTC

drug with respect to gender of the person



Chi-Square Tests





.084 1 .772


a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 9.50.Tab.8.56: Chi square to measure the influence of Pharmacist recommendation in purchase of

OTC drug with respect to gender of the person


Hence, we accept Ho. There is no significant difference between pharmacist recommendation as

an attribute that influence of purchase of OTC product and gender of a person




Gender * Family /Friend Recommendation

Ho: There is no significant difference between family or friend recommendation as an attribute


Ha: There is a significant difference between family or friend recommendation as an attribute


Crosstab

Count





Gender

Male 8 13 11 6 19 57

Female 12 12 15 6 18 63

Total 20 25 26 12 37 120



Chi-Square Tests





.384 1 .535


Tab.8.58: Chi square to measure the influence of family /friends recommendation in purchase

of OTC drug with respect to gender of the person



Since, Value of Pearson chi square >0.05, we accept Ho null hypothesis hence, we accept Ho.

There is no significant difference between family or friend recommendation as an attribute that




Gender * Television

Ho: There is no significant difference between advertisement effect of television on purchase of


Ha: There is a significant difference between advertisement effect of television on purchase of


Crosstab

Television



Not sure


Definitely will not recommend/use Total

Gender Male 13 13 11 16 4 57

Female 7 15 14 21 6 63

Total 20 28 25 37 10 120

Tab.8.59: Crosstab to identify advertisement effect of television influences in purchase of OTC

drug with respect to gender of the person



Chi-Square Tests





2.065 1 .151


Tab.8.60: Chi square to measure advertisement effect of television influences in purchase of


Since, Value of Pearson chi square >0.05, we accept Ho null hypothesis hence, we accept Ho and

reject Ha .There is no significant difference between advertisement effect of television on






Gender * Chemist shop

Ho: There is no significant difference between advertisement effect of chemist shop on purchase


Ha: There is a significant difference between advertisement effect of chemist shop on purchase


Crosstab

Chemist shop



Not sure



Never used/ Recommended Total

Gender Male 17 15 10 1 6 8 57

Female 22 10 9 13 8 1 63

Total 39 25 19 14 14 9 120

Tab.8.61: Crosstab to identify advertisement effect of chemist shop influences in purchase of




Chi-Square Tests





.212 1 .645


Tab.8.62: Chi square to measure advertisement effect of chemist shop influences in purchase

of OTC drug with respect to gender of the person

Since, Value of Pearson chi square <0.05, we reject Ho null hypothesis hence, we reject Ho and

accept Ha. There is significant difference between advertisement effect of chemist shop on




Nature of family * Overall how would you rate your current health?

Ho: There is no significant difference between overall health and nature of family

Ha: There is a significant difference between overall health and nature of family

Crosstab

Count


Excellent Very good good Poor 5 Total

Nature of family Nuclear 7 33 24 8 1 73

Joint 4 28 9 5 1 47

Total 11 61 33 13 2 120

Tab.8.63: Crosstab to identify overall health with respect to nature of family of the person

Chi-Square Tests





.460 1 .497



Tab.8.64: Chi square to measure the overall health with respect to nature of family of the

person



There is no significant difference between overall health and nature of family



Nature of family * would you say that you are taking more, fewer or about same number of

product than you did five year ago?

Ho: There is no significant difference between number of product usage and nature of family

Ha: There is a significant difference between number of product usage and nature of family

Crosstab

Count



Nature of family

Nuclear 27 17 23 6 73

Joint 14 18 11 4 47

Total 41 35 34 10 120

Tab.8.65: Crosstab to identify number of product usage with respect to nature of family of the

person

Chi-Square Tests





.000 1 .986


Tab.8.66: Chi square to measure number of product usage with respect to nature of family of

the person


Hence, we accept Ho and reject Ha There is no significant difference between number of product

usage and nature of family



Nature of family * Are you likely to re-read the label again in the following circumstances?

Ho: There is no significant difference between usage of packaging instruction and nature of

family

Ha: There is a significant difference between usage of packaging instruction and nature of family

Crosstab

Count






Nature of family

Nuclear 32 6 3 32 0 73

Joint 20 3 3 19 2 47

Total 52 9 6 51 2 120

Tab.8.67: Crosstab to identify usage of packaging labels with respect to nature of family of the

person

Chi-Square Tests





.124 1 .725


Tab.8.68: Chi square to measure usage of packaging labels with respect to nature of family of

the person


Hence, we accept Ho and reject Ha.There is no significant difference between usage of

packaging instruction and nature of family



Nature of family * Based on what you know, what is most accurate way to determine the

amount of medicine to be taken in particular indication?

Ho: There is no significant difference between knowledge of dosing and nature of family

Ha: There is a significant difference between knowledge of dosing and nature of family

Crosstab

Count


Weight Age

Both weight and age



Nature of family

Nuclear 12 14 10 14 23 73

Joint 3 6 9 8 21 47

Total 15 20 19 22 44 120

Tab.8.69: Crosstab to identify knowledge of usage of medicine with respect to nature of family

of the person

Chi-Square Tests





3.529 1 .060


Tab.8.70: Chi square to measure the knowledge of usage of medicine with respect to nature of

family of the person


Hence, we accept Ho and reject Ha. There is no significant difference between usage of

knowledge of dosing and nature of family



Nature of family * Have you ever taken more than the recommended dose of a non-

prescription medicine?

Ho: There is no significant difference between overdosage of OTC medicine and nature of

family

Ha: There is a significant difference between overdosage of OTC medicine and nature of family

Crosstab

Count



Nature of family

Nuclear 27 16 30 73

Joint 15 14 18 47

Total 42 30 48 120

Tab.8.71: Crosstab to identify excessive usage of medicine with respect to nature of family of

the person

Chi-Square Tests





.020 1 .889



Tab.8.72: Chi square to measure excessive usage of medicine with respect to nature of family

of the person





There is no significant difference between overdosage of OTC medicine and nature of family

Nature of family * If yes, how much more have you taken?

Ho: There is no significant difference between reason of overdosage and nature of family

Ha: There is a significant difference between reason of overdosage and nature of family

Crosstab

Count

If yes, how much more have you taken?

No response

More than recommended no of pills at single time

Next dose sooner than directed on label

More no of dosages per day directed on label

Don't know Total

Nature of family

Nuclear 43 6 16 4 4 73

Joint 30 5 7 5 0 47

Total 73 11 23 9 4 120

Tab.8.73: Crosstab to identify reason for excessive usage of medicine with respect to nature of


Chi-Square Tests





.675 1 .411



Tab.8.74: Chi square to measure the reason for excessive usage of medicine with respect to

nature of family of the person





There is no significant difference between overdosage of OTC medicine and nature of family

Nature of family * If you have more than one symptom at same time like headache, sore

throat, how likely are you to take more than one OTC medicine?

Ho: There is no significant difference between usage of multiple drug and nature of family

Ha: There is a significant difference between usage of multiple drug and nature of family

Crosstab

Count


Not at all likely

Not very likely

Somewhat likely

Very likely


Nature of family

Nuclear 9 21 17 17 9 73

Joint 5 9 6 16 11 47

Total 14 30 23 33 20 120

Tab.8.75: Crosstab to identify usage of multidrug with respect to nature of family of the

person

Chi-Square Tests





3.637 1 .057



Tab.8.76: Chi square to measure multidrug usage of medicine with respect to nature of family

of the person





There is no significant difference between usage of multiple drug and nature of family



Nature of family * Cold,Flu

Ho: There is no significant difference between frequency of cold flu suffering and nature of

family

Ha: There is a significant difference between frequency of cold flu suffering and nature of family

Crosstab

Count

Cold,Flu

Weekly Biweekly Monthly Bimonthly


Nature of family

Nuclear 1 7 18 22 25 0 73

Joint 0 1 6 18 18 4 47

Total 1 8 24 40 43 4 120

Tab.8.77: Crosstab to identify the frequency of suffering with cold flu with respect to nature of


Chi-Square Tests





7.450 1 .006


Tab.8.78: Chi square to measure the frequency of suffering with cold flu with respect to




Since, Value of Pearson chi square <0.05, we reject Ho null hypothesis Hence, we accept Ha and

reject Ho. There is significant difference between frequency of cold flu suffering and nature of

family



Nature of family * Vitamin

Ho: There is no significant difference between frequency of vitamin usage and nature of family

Ha: There is a significant difference between frequency of vitamin usage and nature of family

Crosstab

Count

Vitamin

Daily Weekly Biweekly Monthly Bimonthly


Nature of family

Nuclear

3 3 10 5 20 18 14 73

Joint 1 1 2 9 5 19 10 47

Total 4 4 12 14 25 37 24 120

Tab.8.79: Crosstab to identify the frequency of suffering from vitamin with respect to nature

of family of the person

Chi-Square Tests





1.904 1 .168



Tab.8.80: Chi square to measure the frequency of suffering from vitamin with respect to





Hence, we accept Ha and reject Ho.

There is significant difference between frequency of vitamin usage and nature of family


Nature of family * Past experience


OTC product and nature of family



Crosstab

Count

Past experience


Nature of family Nuclear 1 22 29 21 73

Joint 0 9 13 25 47

Total 1 31 42 46 120


respect to nature of family of the person

Chi-Square Tests





6.222 1 .013



with respect to nature of family of the person




Hence, we accept Ho. There is no significant difference between past experience as the influence

of purchase of OTC product and nature of family


Nature of family * Advertisement




product and nature of family

Crosstab

Count

Advertisement



Nature of family

Nuclear 12 23 26 11 1 73

Joint 6 13 13 15 0 47

Total 18 36 39 26 1 120





Chi-Square Tests





1.787 1 .181


a. 2 cells (20.0%) have expected count less than 5. The minimum expected count is .39.Tab.8.84: Chisquare to measure the influence of advertisement in purchase of OTC drug with



Hence, we accept Ho.There is no significant difference between advertisement as the influence

of purchase of OTC product and nature of family



Q.No.7. Please indicate the importance of following attribute in a purchase of OTC drug

Nature of family * Price





Crosstab

Count

Price




Nature of family

Nuclear 20 16 22 15 73

Joint 8 11 16 12 47

Total 28 27 38 27 120





Chi-Square Tests





1.430 1 .232


a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 10.58.Tab.8.86: Chi square to measure the influence of price in purchase of OTC drug with respect

to nature of family of the person


Hence, we accept Ho. There is no significant difference between price as an attribute that

influence of purchase of OTC product and nature of family




Nature of family * past experience

Ho: There is no significant difference between past experience as an attribute that influence of

purchase of OTC product and nature of family

Ha: There is a significant difference between past experience as an attribute that influence of


Crosstab

Count

past experience


Nature of family Nuclear 24 31 18 73

Joint 10 27 10 47

Total 34 58 28 120





Chi-Square Tests





.373 1 .542


a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 10.97.Tab.8.88: Chi square to measure the influence of past experience in purchase of OTC drug

with respect to nature of family of the person


Hence, we accept Ho. There is no significant difference between past experience as an attribute

that influence of purchase of OTC product and nature of family




Nature of family * Family /Friend Recommendation

Ho: There is no significant difference between family/friend recommendation as an attribute that


Ha: There is a significant difference between family/friend recommendation as an attribute that


Crosstab

Count


Unimportant




Nature of family

Nuclear 13 14 15 7 24 73

Joint 7 11 11 5 13 47

Total 20 25 26 12 37 120


OTC drug with respect to nature of family of the person



Chi-Square Tests





.079 1 .779


a. 1 cells (10.0%) have expected count less than 5. The minimum expected count is 4.70.Tab.8.90: Chi square to measure the influence of family /friends recommendation in purchase

of OTC drug with respect to nature of family of the person


Hence, we accept Ho. There is no significant difference between family/friend recommendation

as an attribute that influence of purchase of OTC product and nature of family





Nature of family * Television

Ho: There is no significant difference between advertisement effect of television on purchase of


Ha: There is a significant difference between advertisement effect of television on purchase of


Crosstab

Television



Not sure


Definitely will

not

recommend/use Total

Nature of family

Nuclear 15 16 16 20 6 73

Joint 5 12 9 17 4 47

Total 20 28 25 37 10 120

Tab.8.91: Crosstab to identify advertisement effect of television influences in purchase of OTC

drug with respect to nature of family of the person



Chi-Square Tests





1.208 1 .272



Tab.8.92: Chi square to measure advertisement effect of television influences in purchase of

OTC drug with respect to nature of family of the person



There is no significant difference between advertisement effect of television on purchase of OTC

product and nature of family



Q.No.10. Whose Advice is taken when you decide on which OTC drug to buy? Rank

accordingly

Nature of family * Past experience

Crosstab

Ho. There is no significant relation between nature family and past

experiences as a parameter of advice to purchase an OTC product

Ha .There is significant relation between nature family and past experiences as

a parameter of advice to purchase an OTC product

Count

Past experience

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Total

Nature of

family

Nuclear 1 29 11 11 9 12 73

Joint 1 11 17 10 5 3 47

Total 2 40 28 21 14 15 120

Tab.8.93: Crosstab to identify past experience as a mean of advice which influences in

purchase of OTC drug with respect to nature of family of the person



Chi-Square Tests





.223 1 .636


a. 2 cells (16.7%) have expected count less than 5. The minimum expected count is .78.Tab.8.94: Chi square to measure past experience as a mean of advice which influences in

purchase of OTC drug with respect to nature of family of the person


Hence, we reject Ho and accept Ha.

There is significant relation between nature family and past experiences as a parameter of advice

to purchase an OTC product



Q.No.10. Whose Advice is taken when you decide on which OTC drug to buy? Rank

accordingly

Nature of family * Advertisement on chemist store

Ho. There is no significant relation between nature family and advertisement chemist store as a

parameter of advice to purchase an OTC product

Ha. There is significant relation between nature family and advertisement chemist store as a

parameter of advice to purchase an OTC product

Crosstab

Count

Advertisement on chemist store

Rank 1 Rank 2 Rank 3 Rank 5 Rank 6 Rank 7 Total

Nature of family

Nuclear 0 13 0 36 14 10 73

Joint 1 3 1 16 20 6 47

Total 1 16 1 52 34 16 120

Tab.8.95: Crosstab to identify advertisement chemist store as a mean of advice which

influences in purchase of OTC drug with respect to nature of family of the person



Chi-Square Tests





2.414 1 .120



Tab.8.96: Chi square to measure advertisement chemist store as a mean of advice which

influences in purchase of OTC drug with respect to nature of family of the person



There is significant relation between nature family and past experiences as a parameter of advice

to purchase an OTC product



Education * Think about the condition, when you had suffered from some general problem

like cold , cough, sore throat etc. recently, what did you do generally in these ailments?

Ho: There is no significant difference between approach to find treatment and education

Ha: There is a significant difference between approach to find treatment and education

Crosstab

Count

Think about the condition, when you had suffered from some general problem like cold , cough, sore throat etc.recently, what did you do generally in these ailments?

Used medicine already at home

See doctor

Purchased OTC medicine

Purchased prescription drug

Use home remedy

Used nothing Total

Education School level 5 0 1 1 3 1 11

Graduate 9 13 16 6 2 2 48

Post graduate

2 5 8 2 2 2 21

Professional 3 6 10 12 6 3 40

Total 19 24 35 21 13 8 120

Tab.8.97: Crosstab to identify approach to find treatment for general ailment with respect to

education of the person



Chi-Square Tests





5.724 1 .017



Tab.8.98: Chi square to measure to find treatment for general ailment with respect to




There is significant difference between approach to find treatment and education



Education * Would you say that you are taking more, fewer or about same number of

product than you did five year ago?

Ho: There is no significant difference between number of product usage and education

Ha: There is a significant difference between number of product usage and education

Crosstab

Count



Education School level 0 4 5 2 11

Graduate 12 17 13 6 48

Post graduate 7 7 7 0 21

Professional 22 7 9 2 40

Total 41 35 34 10 120

Tab.8.99: Crosstab to identify number of product usage with respect to education of the

person

Chi-Square Tests





11.364 1 .001

0N of Valid Cases 120

Tab.8.100: Chi square to measure number of product usage with respect to education of the

person

Since, Value of Pearson chi square <0.05, we reject Ho null hypothesis, Hence we reject Ho and

accept Ha. There is significant difference between number of product usage and education



Education * Are you likely to re-read the label again in the following circumstances?

Ho: There is no significant difference between usage of packaging instruction and education

Ha: There is a significant difference between usage of packaging instruction and education

Crosstab

Count






Education School level 5 1 1 4 0 11

Graduate 19 4 4 21 0 48

Post graduate 13 1 1 5 1 21

Professional 15 3 0 21 1 40

Total 52 9 6 51 2 120

Tab.8.101: Crosstab to identify usage of packaging labels with respect to education of the

person



Tab.8.102: Chi square to measure usage of packaging labels with respect to education of the

person



There is no significant difference between usage of packaging instruction and education


Chi-Square Tests





.425 1 .514




Education * Based on what you know, what is most accurate way to determine the amount

of medicine to be taken in particular indication?

Ho: There is no significant difference between knowledge of dosing and education

Ha: There is a significant difference between knowledge of dosing and education

Crosstab

Count


Weight Age

Both weight and age




Graduate 5 7 5 8 23 48



Total 15 20 19 22 44 120

Tab.8.103: Crosstab to identify knowledge of usage of medicine with respect to education of

the person

\



Chi-Square Tests





3.947 1 .047



Tab.8.104: Chi square to measure the knowledge of usage of medicine with respect to




There is no significant difference between usage of knowledge of dosing and education



Education * Have you ever taken more than the recommended dose of a non-prescription

medicine?

Ho: There is no significant difference between overdosage of OTC medicine and education

Ha: There is a significant difference between overdosage of OTC medicine and education

Crosstab

Count



Education School level 5 3 3 11

Graduate 21 8 19 48

Post graduate 7 8 6 21

Professional 9 11 20 40

Total 42 30 48 120

Tab.8.105: Crosstab to identify excessive usage of medicine with respect to education of the

person



Chi-Square Tests





3.647 1 .056



Tab.8.106: Chi square to measure excessive usage of medicine with respect to education of the

person



There is no significant difference between overdosage of OTC medicine and education



Education * If you have more than one symptom at same time like headache, sore throat,

how likely are you to take more than one OTC medicine?

Ho: There is no significant difference between usage of multiple drug and education

Ha: There is a significant difference between usage of multiple drug and education

Crosstab

Count


Not at all likely

Not very likely

Somewhat likely

Very likely



Graduate 6 14 8 12 8 48



Total 14 30 23 33 20 120

Tab.8.107: Crosstab to identify usage of multidrug with respect to education of the person

Chi-Square Tests





.025 1 .876


Tab.8.108: Chi square to measure multidrug usage of medicine with respect to education of

the person

Since, Value of Pearson chi square >0.05, we accept Ho null hypothesis hence, we accept and

reject Ha. There is no significant difference between usage of multiple drug and education





Education * Pain

Ho: There is no significant difference between frequency of pain suffering and education

Ha: There is a significant difference between frequency of pain suffering and education

Crosstab

Count

Pain

Daily Weekly Biweekly Monthly BimonthlyHalf yearly Yearly Total

Education School level

0 0 3 7 1 0 0 11

Graduate 0 5 15 13 8 6 1 48

Post graduate

0 1 5 6 9 0 0 21

Professional

1 2 5 10 12 10 0 40

Total 1 8 28 36 30 16 1 120

Tab.8.109: Crosstab to identify the frequency of suffering with pain with respect to education

of the person

Chi-Square Tests





5.252 1 .022


Tab.8.110: Chi square to measure the frequency of suffering with pain with respect to





reject Ha. There is no significant difference between frequency of pain suffering and education



Education * Cold,Flu

Ho: There is no significant difference between frequency of cold flu suffering and education

Ha: There is a significant difference between frequency of cold flu suffering and education

Crosstab

Count

Cold flu

Weekly BiweeklyMonthly Bimonthly Half yearly

Yearly Total

Education School level 1 0 5 2 1 2 11

Graduate 0 5 7 16 20 0 48

Post graduate 0 0 4 7 9 1 21

Professional 0 3 8 15 13 1 40

Total 1 8 24 40 43 4 120

Tab.8.111: Crosstab to identify the frequency of suffering with Cold flu with respect to


Chi-Square Tests





.279 1 .598



Tab.8.112: Chi square to measure the frequency of suffering with coldflu with respect to




Since, Value of Pearson chi square <0.05, we reject Ho null hypothesis Hence, we reject Ho and

accept Ha. There is significant difference between frequency of cold flu suffering and education



Education * Skin Disorder

Ho: There is no significant difference between frequency of skin disorder and education

Ha: There is a significant difference between frequency of skin disorder and education

Crosstab

Count

Skin Disorder

Daily Weekly Biweekly

Monthly Bimonthly Half yearly Yearly Total

Education School level 1 1 1 1 3 3 1 11

Graduate 1 8 7 10 7 6 9 48

Post graduate 0 2 4 4 2 8 1 21

Professional 0 4 7 7 16 5 1 40

Total 2 15 19 22 28 22 12 120



Chi-Square Tests





.072 1 .788


Tab.8.114: Chi square to measure the frequency of suffering from skin disorder with respect

to education of the person




reject Ha. There is no significant difference between frequency of skin disorder and education


Education * Past experience


OTC product and education



Crosstab

Past experience



Graduate 1 10 20 17 48



Total 1 31 42 46 120


respect to education of the person

Chi-Square Tests





.091 1 .763


Tab.8.116: Chi square to measure the influence of past experience in purchase of OTC drug with respect to education of the person




reject Ha There is no significant difference between past experience as the influence of purchase

of OTC product and education


Education * Advertisement




product and education

Crosstab

Count

Advertisement




Graduate 8 15 14 10 1 48



Total 18 36 39 26 1 120





Chi-Square Tests





.949 1 .330


a. 10 cells (50.0%) have expected count less than 5. The minimum expected count is .09.Tab.8.118: Chi square to measure the influence of advertisement in purchase of OTC drug

with respect to education of the person


Hence, we accept Ho and reject Ha






Education * Save the cost of doctor visit

Ho: There is no significant difference between save cost to visit doctor as the influence of

purchase of OTC product and education

Ha: There is a significant difference between save cost to visit doctor as the influence of


Crosstab

Count

Save the cost of doctor visit

Strongly Disagree Disagree Undecided Agree Total


Graduate 7 19 11 11 48



Total 22 43 34 21 120

Tab.8.119: Crosstab to identify influence of saving the cost to visit doctor in purchase of OTC

drug with respect to education of the person



Chi-Square Tests





.597 1 .440


a. 6 cells (37.5%) have expected count less than 5. The minimum expected count is 1.93.Tab.8.120: Chi square to measure the influence of saving the cost to visit doctor in purchase

of OTC drug with respect to education of the person



There is significant difference between save cost to visit doctor as the influence of purchase of





Education * Price





Crosstab

Count

Price





Graduate 14 8 15 11 48



Total 28 27 38 27 120





Chi-Square Tests





.027 1 .869


a. 7 cells (43.8%) have expected count less than 5. The minimum expected count is 2.48.Tab.8.122: Chi square to measure the influence of price in purchase of OTC drug with respect




There is significant difference between price as an attribute that influence of purchase of OTC





Education * Promotion

Ho: There is no significant difference between promotion as an attribute that influence of


Ha: There is a significant difference between promotion as an attribute that influence of purchase


Crosstab

Count

Promotion

Unimportant


Moderately important

Important



Graduate 0 11 13 21 3 48

Post graduate

0 5 8 6 2 21


Total 3 27 36 40 14 120

Tab.8.123: Crosstab to identify influence of promotion in purchase of OTC drug with respect




Chi-Square Tests





.969 1 .325


a. 11 cells (55.0%) have expected count less than 5. The minimum expected count is .28.Tab.8.124: Chi square to measure the influence of promotion in purchase of OTC drug with




There is significant difference between promotion as an attribute that influence of purchase of





Education * Advertisement

Ho: There is no significant difference between advertisement as an attribute that influence of


Ha: There is a significant difference between advertisement as an attribute that influence of


Crosstab

Count

Advertisement


Moderately important Important Total


Graduate 9 16 16 7 48



Total 31 40 37 12 120





Chi-Square Tests





1.376 1 .241


a. 7 cells (43.8%) have expected count less than 5. The minimum expected count is 1.10.Tab.8.126: Chi square to measure the influence of

advertisement in purchase of OTC drug with respect to




There is significant difference between advertisement as an attribute that influence of purchase





Education * past experience





Crosstab

Count

past experience


Education School level 5 3 3 11

Graduate 12 23 13 48

Post graduate 6 13 2 21

Professional 11 19 10 40

Total 34 58 28 120





Chi-Square Tests





.004 1 .950


a. 3 cells (25.0%) have expected count less than 5. The minimum expected count is 2.57.Tab.8.128: Chi square to measure the influence of past experience in purchase of OTC drug

with respect to education of the person



There is significant difference between past experience as an attribute that influence of purchase





Education * Family /Friend Recommendation

Ho: There is no significant difference between family/friend recommendation as an attribute that

influence of purchase of OTC product and education

Ha: There is a significant difference between family /friend recommendation as an attribute that


Crosstab

Count






Graduate 6 11 13 5 13 48

Post graduate

3 3 4 4 7 21


Total 20 25 26 12 37 120


OTC drug with respect to education of the person



Chi-Square Tests





.423 1 .516


a. 11 cells (55.0%) have expected count less than 5. The minimum expected count is 1.10.Tab.8.130: Chi square to measure the influence of family /friends recommendation in

purchase of OTC drug with respect to education of the person



There is significant difference between family/friend recommendation as an attribute that






Education * Newspaper

Ho: There is no significant difference between advertisement effect of newspaper on purchase of


Ha: There is a significant difference between advertisement effect of newspaper on purchase of


Crosstab

Count

Newspaper



Not sure



Never used/ Recommended

Total

Education

School level

0 4 1 3 1 2 11

Graduate 0 15 9 9 11 4 48

Post graduate

1 7 1 3 6 3 21

Professional

5 15 6 6 5 3 40

Total 6 41 17 21 23 12 120

Tab.8.131: Crosstab to identify advertisement effect of newspaper influences in purchase of




Chi-Square Tests





3.137 1 .077



Tab.8.132: Chi square to measure advertisement effect of newspaper influences in purchase




There is no significant difference between advertisement effect of newspaper on purchase of






Education * Magazine

Ho: There is no significant difference between advertisement effect of magazine on purchase of


Ha: There is a significant difference between advertisement effect of magazine on purchase of


Crosstab

Count

Magazine



Not sure




Total

Education

School level

1 6 1 1 1 1 11

Graduate 9 21 10 2 4 2 48

Post graduate

0 8 2 4 4 3 21

Professional

4 15 6 5 5 5 40

Total 14 50 19 12 14 11 120

Tab.8.133: Crosstab to identify advertisement effect of magazine influences in purchase of




Chi-Square Tests





3.758 1 .053



Tab.8.134: Chi square to measure advertisement effect of magazine influences in purchase of




There is no significant difference between advertisement effect of magazine on purchase of OTC






Education * Chemist shop

Ho: There is no significant difference between advertisement effect of chemist shop on purchase


Ha: There is a significant difference between advertisement effect of chemist shop on purchase


Crosstab

Count

Chemist shop



Not sure




Total

Education

School level

4 2 1 1 2 1 11

Graduate 18 15 9 4 1 1 48

Post graduate

8 4 5 3 1 0 21

Professional

9 4 4 6 10 7 40

Total 39 25 19 14 14 9 120

Tab.8.135: Crosstab to identify advertisement effect of chemist shop influences in purchase of




Chi-Square Tests





11.582 1 .001



Tab.8.136: Chi square to measure advertisement effect of chemist shop influences in purchase



Hence, we accept Ha, hence reject Ho

There is significant difference between advertisement effect of chemist shop on purchase of OTC




Occupation * Overall how would you rate your current health?

Ho: There is no significant difference between overall health and occupation

Ha: There is a significant difference between overall health and occupation

Crosstab

Count


Excellent Very good good Poor Very poor Total

Occupation Business 4 20 9 3 2 38

Service 4 27 19 8 0 58

Student 3 14 5 2 0 24

Total 11 61 33 13 2 120

Tab.8.137: Crosstab to identify overall health with respect to occupation of the person

Chi-Square Tests





.485 1 .486



Tab.8.138: Chi square to measure the overall health with respect to occupation of the person





There is no significant difference between overall health and occupation

Occupation * Based on what you know, what is most accurate way to determine the

amount of medicine to be taken in particular indication?

Ho: There is no significant difference between knowledge of dosing and occupation

Ha: There is a significant difference between knowledge of dosing and occupation

Crosstab

Count


Weight Age

Both weight and age




Service 6 12 11 7 22 58

Student 4 5 2 3 10 24

Total 15 20 19 22 44 120

Tab.8.139: Crosstab to identify knowledge of usage of medicine with respect to occupation of

the person



Chi-Square Tests





.286 1 .593



Tab.8.140: Chi square to measure the knowledge of usage of medicine with respect to

occupation of the person



There is no significant difference between usage of knowledge of dosing and occupation



Occupation * Have you ever taken more than the recommended dose of a non-prescription

medicine?

Ho: There is no significant difference between overdosage of OTC medicine and occupation

Ha: There is a significant difference between overdosage of OTC medicine and occupation

Crosstab

Count



Occupation Business 12 8 18 38

Service 26 11 21 58

Student 4 11 9 24

Total 42 30 48 120

Tab.8.141: Crosstab to identify excessive usage of medicine with respect to occupation of the

person

Chi-Square Tests





.002 1 .965





Tab.8.142: Chi square to measure excessive usage of medicine with respect to occupation of

the person

Since, Value of Pearson chi square <0.05, we reject Ho null hypothesis Hence, we reject Ho and

accept Ha. There is significant difference between over dosage of OTC medicine and occupation

Occupation * what is the reason for taking more medicine is?

Ho: There is no significant difference between reason of overdosage and occupation

Ha: There is a significant difference between reason of overdosage and occupation

Crosstab

Count

What is the reason for taking more medicine is?

0-No response

Believe it relieves more quickly

Had severe symptoms

Didn't get any better by taking recommended dose

Used prescription Total


Service 30 3 9 10 6 58

Student 20 1 3 0 0 24

Total 73 7 18 14 8 120

Tab.8.143: Crosstab to identify the reason for excessive usage of medicine with respect to


Chi-Square Tests





1.854 1 .173





Tab.8.144: Chi square to measure the reason for excessive usage of medicine with respect to



reject Ha. There is no significant difference between reason of overdosage and occupation



Occupation * Acidity

Ho: There is no significant difference between frequency of acidity suffering and occupation

Ha: There is a significant difference between frequency of acidity suffering and occupation

Crosstab

Count

Acidity

Daily Weekly Biweekly Monthly BimonthlyHalf yearly Total

Occupation Business 7 11 6 6 6 2 38

Service 7 10 18 13 6 4 58

Student 4 2 8 4 5 1 24

Total 18 23 32 23 17 7 120

Tab.8.145: Crosstab to identify the frequency of suffering with acidity with respect to




Chi-Square Tests





.836 1 .360



Tab.8.146: Chi square to measure the frequency of suffering with acidity with respect to




There is no significant difference between frequency of acidity suffering and occupation





Occupation * Vitamin

Ho: There is no significant difference between frequency of vitamin usage suffering and

occupation

Ha: There is a significant difference between frequency of vitamin usage suffering and

occupation

Crosstab

Count

Vitamin


Occupation Business 1 0 6 3 12 10 6 38

Service 3 4 6 11 11 14 9 58

Student 0 0 0 0 2 13 9 24

Total 4 4 12 14 25 37 24 120

Tab.8.147: Crosstab to identify the frequency of suffering of vitamin with respect to




Chi-Square Tests





6.164 1 .013


Tab.8.148: Chi square to measure the frequency of usage

of vitamin with respect to occupation of the person

Since, Value of Pearson chi square <0.05, we reject Ho null hypothesis hence, we accept Ha and

reject Ho. There is significant difference between frequency of pain suffering and occupation




Occupation * Lack of time to visit doctor

Ho: There is no significant difference between availability of time to visit doctor as the influence

of purchase of OTC product and occupation

Ha: There is a significant difference between availability of time to visit doctor as the influence

of purchase of OTC product and occupation

Crosstab

Lack of time to visit doctor



Occupation

Business 0 13 8 11 5 38

Service 4 14 18 15 7 58

Student 1 9 5 3 6 24

Total 5 36 31 29 18 120

Tab.8.149: Crosstab to identify influence of availability of time to visit doctor in purchase of

OTC drug with respect to occupation of the person

Chi-Square Tests

Value df Asymp. Sig. (2-sided)





.Tab.8.150: Chi square to measure the influence of availability of time to visit in purchase of

OTC drug with respect to occupation of the person

Since, Value of Pearson chi square >0.05, we accept Ho null hypothesis hence, we accept Ho.

There is no significant difference between availability of time to visit doctor as the influence of

purchase of OTC product and occupation




Occupation * past experience





Crosstab

Count

past experience


Occupation Business 14 18 6 38

Service 15 32 11 58

Student 5 8 11 24

Total 34 58 28 120


respect to occupation of the person



Chi-Square Tests





5.652 1 .017


Tab.8.152: Chi square to measure the influence of past experience in purchase of OTC drug

with respect to occupation of the person

Since, Value of Pearson chi square <0.05, we reject Ho null hypothesis hence, we accept Ha and

reject Ho .There is significant difference between past experience as an attribute that influence of




Maritial Status * Have you ever taken more than the recommended dose of a non-

prescription medicine?

Ho: There is no significant difference between overdosage of OTC medicine and marital status

Ha: There is a significant difference between overdosage of OTC medicine and marital status

Crosstab

Count



Maritial Status Single 4 11 9 24

Married 34 19 35 88

Divorce 4 0 4 8

Total 42 30 48 120

Tab.8.153: Crosstab to identify excessive usage of medicine with respect to marital status of

the person

Chi-Square Tests




Linear-by-Linear Association .784 1 .376



Tab.8.154: Chi square to measure excessive usage of medicine with respect to marital status of

the person



There is significant difference between overdosage of OTC medicine and marital status





Marital Status * Cold, Flu

Ho: There is no significant difference between frequency of cold flu suffering and marital status

Ha: There is a significant difference between frequency of cold flu suffering and marital status

Crosstab

Count

Cold, Flu

Weekly Biweekly Monthly BimonthlyHalf yearly Yearly Total

Marital Status

Single 0 1 2 8 10 3 24

Married 0 7 22 30 28 1 88

Divorce 1 0 0 2 5 0 8

Total 1 8 24 40 43 4 120

Tab.8.155: Crosstab to identify the frequency of suffering with cold flu with respect to marital

status of the person



Chi-Square Tests





2.575 1 .109



Tab.8.156: Chi square to measure the frequency of suffering with cold flu with respect to

marital status of the person



There is significant difference between frequency of cold flu suffering and marital status





Maritial Status * Acidity

Ho: There is no significant difference between frequency of acidity suffering and marital status

Ha: There is a significant difference between frequency of acidity suffering and marital status

Crosstab

Count

Acidity

Daily WeeklyBiweekly Monthly

Bimonthly

Half yearly Total

Maritial Status

Single 4 2 8 2 7 1 24

Married 10 21 21 21 9 6 88

Divorce 4 0 3 0 1 0 8

Total 18 23 32 23 17 7 120

Tab.8.157: Crosstab to identify the frequency of suffering from acidity with respect to marital




Chi-Square Tests





2.517 1 .113



Tab.8.158: Chi square to measure the frequency of suffering from acidity with respect to

marital status of the person



There is significant difference between frequency of acidity suffering and marital status





Marital Status * Vitamin

Ho: There is no significant difference between frequency of vitamin suffering and marital status

Ha: There is a significant difference between frequency of vitamin suffering and marital status

Crosstab

Count

Vitamin


Marital Status

Single 0 0 0 0 2 15 7 24

Married 4 3 11 13 20 21 16 88

Divorce 0 1 1 1 3 1 1 8

Total 4 4 12 14 25 37 24 120

Tab.8.159: Crosstab to identify the frequency of usage of vitamin with respect to marital status

of the person



Chi-Square Tests





11.848 1 .001



Tab.8.160: Chi square to measure the frequency of usage of vitamin with respect to marital




There is significant difference between frequency of vitamin suffering and marital status




Marital Status * Advertisement


OTC product and marital status


product and marital status

Crosstab

Advertisement

Strongly DisagreeDisagree Undecided Agree


Marital Status Single 3 8 8 5 0 24

Married 14 24 29 21 0 88

Divorce 1 4 2 0 1 8

Total 18 36 39 26 1 120


respect to marital status of the person

Chi-Square Tests





.025 1 .875


Tab.8.162: Chi square to measure the influence of advertisement in purchase of OTC drug

with respect to marital status of the person


Hence, we reject Ho hence; accept Ha. There is significant difference between advertisement as

the influence of purchase of OTC product and marital status



8.3.2. Advanced Analysis

Q.No.7. please indicate the importance of following attribute in a purchase of OTC drug

8.2.2.1. ANOVA for the most important attribute in purchase of an OTC product

Ho: There is no significant difference across the attribute in purchase of an OTC product

Ha: There is a significant difference across the attribute in purchase of an OTC product

Descriptives

VAR00002

N MeanStd. Deviation

Std. Error

95% Confidence Interval for Mean

Minimum MaximumLower Bound

Upper Bound

Brand Name120

4.1083 .74242 .06777 3.9741 4.2425 3.00 5.00

Price120

3.5333 1.08414 .09897 3.3374 3.7293 2.00 5.00

Promotion120

3.2917 1.02405 .09348 3.1066 3.4768 1.00 5.00

Advertisement120

2.2500 .95486 .08717 2.0774 2.4226 1.00 4.00

Physical Recommendation

120

3.8667 .82943 .07572 3.7167 4.0166 2.00 5.00

Past Experience120

3.9500 .72006 .06573 3.8198 4.0802 3.00 5.00

Pharmacist Recommendation

120

4.1417 .67731 .06183 4.0192 4.2641 3.00 5.00

Family/Friend Recommendation

120

3.1750 1.48189 .13528 2.9071 3.4429 1.00 5.00

Total960

3.5396 1.13550 .03665 3.4677 3.6115 1.00 5.00

Tab.8.163: Indicates the descriptive analysis of important parameter to purchase an OTC

product



ANOVA

VAR00002

Sum of Squares df Mean Square F Sig.

Between Groups 338.263 7 48.323 51.216 .000

Within Groups 898.233 952 .944

Total 1236.496 959

Tab.8.164: ANOVA to measure the difference amongst the parameter to purchase an OTC

drug



There is a significant difference across the parameter in an OTC product



POST-HOC-TUKEY TEST

VAR00002Tukey HSDa

VAR00001 N Subset for alpha = 0.051 2 3 4

Advertisement 120 2.2500Family and Friends recommendation

120 3.1750

Promotion 120 3.2917Price 120 3.5333 3.5333Physician Recommendation 120 3.8667 3.8667Past experience 120 3.9500Brand Name 120 4.1083Pharmacist recommendation 120 4.1417Sig. 1.000 .083 .137 .357Means for groups in homogeneous subsets are displayed.a. Uses Harmonic Mean Sample Size = 120.000.

Tab.8.165: Tukey to identify the most important parameter to purchase an OTC drug

From the above Tab., we can see the most important parameter or attribute on which OTC

product always need to deliver are respectively

1. Pharmacist Recommendation

2. Brand Name

3. Past experience

4. Physician recommendation



Q.No.6 what makes you take decision on your own to purchase medicine

8.2.2.2. ANOVA for parameters which influences the consumer to purchase OTC medicine

on their own

Ho: There is no significant difference across the parameters of influence for consumer to

purchase OTC medicine on their own

Ha: There is a significant difference across the parameters of influence for consumer to purchase

OTC medicine on their own



Descriptives

VAR00002


Std. Error



Upper Bound

Past experience120

4.1083 .81782 .07466 3.9605 4.2562 2.00 5.00

Advertisement120

2.6333 1.01197 .09238 2.4504 2.8163 1.00 5.00

Lack of time to visit doctor

120

3.1500 1.14238 .10428 2.9435 3.3565 1.00 5.00


120

2.4500 .98604 .09001 2.2718 2.6282 1.00 4.00

Chemist promotion120

3.4500 1.09122 .09961 3.2528 3.6472 1.00 5.00

Internet & blog recommendation

120

1.5750 .58930 .05380 1.4685 1.6815 1.00 3.00

Total720

2.8944 1.24696 .04647 2.8032 2.9857 1.00 5.00

Tab.8.166: Indicates the descriptive analysis of important parameter that influence the

consumer to purchase OTC medicine on their own

ANOVA

VAR00002

Sum of Squares Df Mean Square F Sig.

Between Groups 462.494 5 92.499 100.757 .000

Within Groups 655.483 714 .918

Total 1117.978 719



Tab.8.167: ANOVA to measure the difference amongst the parameter to that influence the

consumer to purchase OTC medicine on their own



There is a significant difference across the parameters of influence for consumer to purchase

OTC medicine on their own

VAR00002

Tukey HSDa

VAR00001 NSubset for alpha = 0.05

1 2 3 4

Internet & blog recommendation 120 1.5750

Save the cost of doctor visit 120 2.4500

Advertisement 120 2.6333



Lack of time to visit doctor 120 3.1500

Chemist promotion 120 3.4500

Past experience 120 4.1083

Sig. 1.000 .676 .149 1.000

Means for groups in homogeneous subsets are displayed.

a. Uses Harmonic Mean Sample Size = 120.000.

Tab.8.168: Tukey to identify the most important parameter that influence the consumer to

purchase OTC medicine on their own

From the above Tab., we can see the most important parameter of influence for consumer to

purchase OTC medicine on their own is Past Experience


have use or recommended it to others? Accordingly

8.2.2.3. ANOVA to find out the most effective medium of advertisement which leads to use

or recommendation of an OTC product



Ho: There is no significant difference across the different medium of advertisement which leads

to use or recommendation of an OTC product

Ha: There is a significant difference across the different medium of advertisement which leads to

use or recommendation of an OTC product

Descriptive

VAR00002


Std. Error



Upper Bound

Newspaper 120 3.4167 1.49275 .13627 3.1468 3.6865 1.00 6.00

Magazine 120 2.9583 1.51406 .13821 2.6847 3.2320 1.00 6.00

Television 120 2.9083 1.24344 .11351 2.6836 3.1331 1.00 5.00

Internet 120 3.3833 1.47348 .13451 3.1170 3.6497 1.00 6.00

Chemist shop

120 2.7167 1.64589 .15025 2.4192 3.0142 1.00 6.00

Doctor’s cabin

120 2.2250 1.26000 .11502 1.9972 2.4528 1.00 6.00

Total 720 2.9347 1.49637 .05577 2.8252 3.0442 1.00 6.00

Tab.8.169: Indicates the descriptive analysis of different types of mediums of advertisement

used to promote an OTC product



ANOVA

VAR00002

Sum of Squares Df Mean Square F Sig.

Between Groups 118.324 5 23.665 11.328 .000

Within Groups 1491.608 714 2.089

Total 1609.932 719

Tab.8.170: ANOVA to measure the difference between the different medium of advertisement

which leads to use or recommendation of an OTC product



There is a significant difference across the different medium of advertisement which leads to use

or recommendation of an OTC product



VAR00002

Tukey HSDa

VAR00001 NSubset for alpha = 0.05

1 2 3

Doctors cabin 120 2.2250

Chemist shop 120 2.7167 2.7167

Television 120 2.9083 2.9083

Magazine 120 2.9583 2.9583

Internet 120 3.3833

Newspaper 120 3.4167

Sig. .090 .788 .072

Means for groups in homogeneous subsets are displayed.

a. Uses Harmonic Mean Sample Size = 120.000.Tab.8.171: Tukey to identify the most important medium of advertisement which leads the

consumer to use or recommendation of an OTC product

From the above Tab., we can see the most important medium of advertisement which leads the

consumer to use or recommendation of an OTC product is respectively

1. Newspaper

2. Internet

3. Magazine

4. Television




8.2.2.4. TWO WAY ANOVA WITH REPLICATION FOR AGE AND GENDER OF

RESPONDENT WITH ATTRIBUTES IMPORTANT FOR PURCHASE OF OTC

PRODUCT

8.2.2.4.1. BRAND NAME

Descriptive Statistics

Dependent Variable: Brand name

Age Gender MeanStd. Deviation N

Below 25 yrs Male 3.82 .751 11

Female 4.23 .725 13

Total 4.04 .751 24

25-35 Male 3.95 .780 19

Female 3.95 .686 20

Total 3.95 .724 39

35-45 Male 4.40 .737 15

Female 4.27 .594 15

Total 4.33 .661 30

Above 45 years

Male 3.83 .835 12

Female 4.40 .737 15

Total 4.15 .818 27

Total Male 4.02 .790 57

Female 4.19 .692 63

Total 4.11 .742 120

Tab.8.172: Descriptive statistics with dependent variable brand nameHo1: There are no significant differences in rating to brand name as important attribute to

purchase OTC product with respect to the age of the respondents

Ho2: There are no significant differences in rating to brand name as important attribute to

purchase OTC product with respect to the gender of the respondent



Ho3: There are no significant differences in rating to brand name as important attribute to

purchase OTC product with respect to age and gender of the respondents

Tests of Between-Subjects Effects

Dependent Variable:Brand name

SourceType III Sum of Squares Df Mean Square F Sig.

Corrected Model

5.950a 7 .850 1.596 .144

Intercept 1948.152 1 1948.152 3658.413 .000

Age 2.669 3 .890 1.670 .177

Gender 1.300 1 1.300 2.442 .121

Age * Gender 2.361 3 .787 1.478 .224

Error 59.641 112 .533

Total 2091.000 120

Corrected Total 65.592 119



a. R Squared = .091 (Adjusted R Squared = .034)Tab.8.173: Two way ANOVA with dependent variable brand name

Since P value is more than 0.05, hence we accept Ho1,Ho2,Ho3

Ho1: There are no significant differences in rating to brand name as important

attribute to purchase OTC product with respect to the age of the respondents


attribute to purchase OTC product with respect to the gender of the

respondents


attribute to purchase OTC product with respect to age and gender of the

respondents

8.2.2.4.2. PRICE


Dependent Variable:Price



Female 3.69 .947 13

Total 3.33 .963 24

25-35 Male 3.26 1.147 19

Female 4.45 .686 20

Total 3.87 1.105 39



35-45 Male 3.27 1.163 15

Female 3.53 .990 15

Total 3.40 1.070 30

Above 45 years

Male 3.08 .996 12

Female 3.60 1.183 15

Total 3.37 1.115 27

Total Male 3.16 1.049 57

Female 3.87 1.008 63

Total 3.53 1.084 120

Tab.8.174: Descriptive statistics with dependent variable price

Ho1: There are no significant differences in rating to price as important attribute to purchase

OTC product with respect to the age of the respondents


OTC product with respect to the gender of the respondents


OTC product with respect to age and gender of the respondents


Dependent Variable:Price

SourceType III Sum of Squares df Mean Square F Sig.

Corrected Model

26.371a 7 3.767 3.718 .001

Intercept 1395.317 1 1395.317 1376.927 .000

Age 6.840 3 2.280 2.250 .086

Gender 13.689 1 13.689 13.509 .000

Age * Gender 3.963 3 1.321 1.304 .277

Error 113.496 112 1.013

Total 1638.000 120




a. R Squared = .189 (Adjusted R Squared = .138)Tab.8.175: Two way ANOVA with dependent variable price

Since P value is more than 0.05 for Ho1,Ho3 but for Ho2 P value is less than

0.05, hence we accept Ho1,Ho3 but we reject Ho2

Ho1: There are no significant differences in rating to price as important


Ho3: There are no significant differences in rating to price as important

attribute to purchase OTC product with respect to age and gender of the

respondents

Ho2: There are significant differences in rating to price as important attribute

to purchase OTC product with respect to the gender of the respondents

8.2.2.4.3. PROMOTION


Dependent Variable:Promotion


Below 25 yrs Male 3.18 1.250 11

Female 3.54 .967 13

Total 3.38 1.096 24

25-35 Male 3.05 1.177 19

Female 3.35 .813 20

Total 3.21 1.005 39



35-45 Male 3.80 .862 15

Female 3.13 1.060 15

Total 3.47 1.008 30

Above 45 years

Male 3.42 1.240 12

Female 2.93 .799 15

Total 3.15 1.027 27

Total Male 3.35 1.142 57

Female 3.24 .911 63

Total 3.29 1.024 120

Tab.8.176: Descriptive statistics with dependent variable promotion

Ho1: There are no significant differences in rating to promotion as important attribute to



purchase OTC product with respect to the gender of the respondents




Dependent Variable:Promotion


Corrected Model

8.444a 7 1.206 1.161 .331

Intercept 1259.107 1 1259.107 1212.055 .000

Age 1.711 3 .570 .549 .650

Gender .444 1 .444 .428 .515

Age * Gender 6.167 3 2.056 1.979 .121

Error 116.348 112 1.039

Total 1425.000 120




a. R Squared = .068 (Adjusted R Squared = .009)Tab.8.177: Two way ANOVA with dependent variable promotion

Since P value is more than 0.05, hence we accept Ho1, Ho2, Ho3







8.2.2.4.4. ADVERTISEMENT


Dependent Variable:Advertisement



Female 2.31 .947 13

Total 2.08 .881 24

25-35 Male 2.42 1.017 19

Female 2.25 .851 20

Total 2.33 .927 39



35-45 Male 2.40 .828 15

Female 2.47 1.125 15

Total 2.43 .971 30

Above 45 years

Male 2.00 .953 12

Female 2.13 1.125 15

Total 2.07 1.035 27

Total Male 2.21 .921 57

Female 2.29 .991 63

Total 2.25 .955 120

Tab.8.178: Descriptive statistics with dependent variable advertisement

Ho1: There are no significant differences in rating to advertisement as important attribute to







Dependent Variable: Advertisement


Corrected Model

4.646a 7 .664 .716 .659

Intercept 571.925 1 571.925 616.786 .000

Age 3.021 3 1.007 1.086 .358

Gender .485 1 .485 .523 .471

Age * Gender 1.632 3 .544 .587 .625

Error 103.854 112 .927

Total 716.000 120




a. R Squared = .043 (Adjusted R Squared = -.017)Tab.8.179: Two way ANOVA with dependent variable advertisement








8.2.2.4.5. PHYSICIAN RECOMMENDATION


Dependent Variable: Physician recommendation



Female 3.85 .555 13

Total 3.79 .721 24

25-35 Male 3.89 .809 19

Female 4.10 .852 20

Total 4.00 .827 39



35-45 Male 3.87 .743 15

Female 4.07 .799 15

Total 3.97 .765 30

Above 45 years

Male 3.42 .900 12

Female 3.80 1.014 15

Total 3.63 .967 27

Total Male 3.75 .830 57

Female 3.97 .822 63

Total 3.87 .829 120

Tab.8.180: Descriptive statistics with dependent variable physician recommendation

Ho1: There are no significant differences in rating to physician recommendation as important



attribute to purchase OTC product with respect to the gender of the respondents


attribute to purchase OTC product with respect to age and gender of the respondents


Dependent Variable:Physician recommendation


Corrected Model

4.420a 7 .631 .913 .499

Intercept 1703.883 1 1703.883 2464.073 .000

Age 2.894 3 .965 1.395 .248

Gender 1.487 1 1.487 2.150 .145

Age * Gender .243 3 .081 .117 .950

Error 77.447 112 .691

Total 1876.000 120




a. R Squared = .054 (Adjusted R Squared = -.005)Tab.8.181: Two way ANOVA with dependent variable physician recommendation








8.2.2.4.6. PAST EXPERIENCE


Dependent Variable: past experience



Female 4.15 .801 13

Total 4.13 .741 24

25-35 Male 4.00 .816 19

Female 3.90 .718 20

Total 3.95 .759 39



35-45 Male 3.87 .743 15

Female 3.80 .561 15

Total 3.83 .648 30

Above 45 years

Male 4.17 .718 12

Female 3.73 .704 15

Total 3.93 .730 27

Total Male 4.02 .744 57

Female 3.89 .698 63

Total 3.95 .720 120

Tab.8.182: Descriptive statistics with dependent variable past experience

Ho1: There are no significant differences in rating to past experience as important attribute to







Dependent Variable: past experience


Corrected Model

2.565a 7 .366 .694 .677

Intercept 1815.853 1 1815.853 3439.190 .000

Age 1.113 3 .371 .703 .552

Gender .521 1 .521 .986 .323

Age * Gender .874 3 .291 .552 .648

Error 59.135 112 .528

Total 1934.000 120




a. R Squared = .042 (Adjusted R Squared = -.018)Tab.8.183: Two way ANOVA with dependent variable past experience








8.2.2.4.7. PHARMACIST RECOMMENDATION


Dependent Variable: Pharmacist recommendation



Female 3.85 .689 13

Total 4.04 .690 24

25-35 Male 4.11 .658 19

Female 4.30 .733 20

Total 4.21 .695 39



35-45 Male 3.93 .704 15

Female 4.47 .516 15

Total 4.20 .664 30

Above 45 years

Male 4.25 .622 12

Female 3.93 .704 15

Total 4.07 .675 27

Total Male 4.12 .657 57

Female 4.16 .700 63

Total 4.14 .677 120

Tab.8.184: Descriptive statistics with dependent variable pharmacist recommendation

Ho1: There are no significant differences in rating to pharmacist recommendation as important







Dependent Variable: Pharmacist recommendation


Corrected Model

4.878a 7 .697 1.570 .152

Intercept 1979.254 1 1979.254 4459.071 .000

Age .469 3 .156 .352 .788

Gender .000 1 .000 .001 .976

Age * Gender 4.204 3 1.401 3.157 .028

Error 49.714 112 .444

Total 2113.000 120




a. R Squared = .089 (Adjusted R Squared = .032)Tab.8.185: Two way ANOVA with dependent variable price

Since P value is more than 0.05 for Ho1,Ho2 but for Ho3 P value is less than 0.05, hence we

accept Ho1,Ho2 but we reject Ho3





Ho3: There are significant differences in rating to pharmacist recommendation as important


8.2.2.4.8. FAMILY/FRIENDS RECOMMENDATION


Dependent Variable: Family /Friend Recommendation


Below 25 yrs Male 3.18 1.401 11

Female 3.00 1.633 13

Total 3.08 1.501 24

25-35 Male 3.05 1.545 19

Female 3.05 1.432 20

Total 3.05 1.468 39



35-45 Male 4.00 1.414 15

Female 3.13 1.506 15

Total 3.57 1.501 30

Above 45 years

Male 2.75 1.357 12

Female 3.20 1.568 15

Total 3.00 1.468 27

Total Male 3.26 1.482 57

Female 3.10 1.489 63

Total 3.18 1.482 120

Tab.8.186: Descriptive statistics with dependent variable family/friends recommendation

Ho1: There are no significant differences in rating to family/friends recommendation as

important attribute to purchase OTC product with respect to the age of the respondents


important attribute to purchase OTC product with respect to the gender of the respondents


important attribute to purchase OTC product with respect to age and gender of the respondents


Dependent Variable: Family /Friend Recommendation


Corrected Model

13.408a 7 1.915 .865 .536

Intercept 1162.022 1 1162.022 524.960 .000

Age 6.432 3 2.144 .969 .410

Gender .652 1 .652 .295 .588

Age * Gender 6.469 3 2.156 .974 .408

Error 247.917 112 2.214

Total 1471.000 120




a. R Squared = .051 (Adjusted R Squared = -.008)Tab.8.187: Two way ANOVA with dependent variable past experience


Ho1: There are no significant differences in rating to family/friends recommendation

as important attribute to purchase OTC product with respect to the age of the respondents

Ho2: There are no significant differences in rating to family/friends recommendation

as important attribute to purchase OTC product with respect to the gender of the respondents


important attribute to purchase OTC product with respect to age and gender of the respondents



CHAPTER 9: SUGGESTION AND RECOMMENDATION

9.1. SUMMARY OF ANALYSIS

Most of respondent belongs to age group of between 25-45 years

Most of respondent are gender female

Most of respondent stays in nuclear family

Most of respondent are well educated have done graduation

Most respondent stays in family size of 4-6 member in family

Most of the respondents have very good health i.e.61 respondent out of 120 sample size

Most of the people suffer from these normal diseases on day to day basis, in that most of

the respondent i.e. 35 respondent use OTC medicine product first to treat the condition

The usage number of OTC product have increased over the period of five years due to

more education and better standard of living i.e.41 respondent use more OTC product

The frequency of usage of OTC product have been same for last five year i.e. 42

respondent has same frequency of usage

Most of respondent think it is important to consult the Doctor before consumption of

OTC medicine after reading or watching a medicine advertisement

Most of respondent read packaging label when they purchase OTC medicine for first time

Most of respondent first read direction usage on packaging labels

Most of Respondent don’t re-read label until and unless the medicine is to be given to

child



Most of the respondent doesn’t have knowledge about the amount of medicine needs to

be taken for therapeutic response

Most respondent doesn’t even have basic knowledge about a regularly used Brand Crocin

pharmaceutical content

Most respondent have taken more medicine than recommended dosage

Those who have taken more medicine than recommended dosage have taken next dose

sooner than directed on label so, most respondent don’t take risk of taking unnecessary

dosage ,they understand the risk of taking more dosage

Most respondent take more dosage only when they have more severe symptoms

Most respondent take multiple medicine when suffer from more than one symptom in a

particular disease, so they know the usage of different medicine in different symptoms

Most of respondent are aware of negative reaction of OTC medicine and have

experienced some negative reaction or side effect after taking an OTC medicine

Most respondent experience side effect or negative reaction first they contact doctor and

other most respondent contact chemist

Most respondent suffer symptom of fever every bimonthly

Most respondent suffer symptom of Pain every monthly

Most respondent suffer symptom of Cold,Flu every half yearly

Most respondent suffer symptom of acidity every biweekly

Most respondent suffer symptom of vomiting in every six month

Most respondent suffer symptom of diahorrea every bimonthly

Most respondent take vitamin every half yearly

Most respondent suffer skin disorder problems often every bimonthly



Most respondent take doctor’s advice for purchase decision of OTC product

Very few respondents take Chemist advice for purchase decision of OTC product

Most respondent take acquaintance, family, friend advice as most important advice for

purchase decision of OTC product

Most respondent do not take media advertisement based advice for purchase decision of

OTC product

Most respondent find past experience as good influencer for purchase decision of OTC

product

Most respondent do not take advice from advertisement displayed on chemist store for

purchase decision of OTC product

Most respondent think information on internet is the last source of information to depend

as advice for purchase decision of OTC product

There is significant difference between the overall health and the age of the person

There is no significant difference between number of product usage and the age of the

person

There is no significant difference between usage of label and the age of the person

There is no significant difference between knowledge of dosage and the age of the person

There is no significant difference between more usage of medicine and the age of the

person

There is no significant difference between more usage of medicine and the age of the

person

There is no significant difference between negative reaction experienced and the age of

the person



There is significant difference between frequency of suffering from pain and the age of

the person

There is no significant difference between frequency of suffering from acidity and the

age of the person

There is significant difference between frequency of suffering from skin disorder and the

age of the person

There is no significant difference between past experience as the influence of purchase of


There is no significant difference between advertisement as the influence of purchase of


There is no significant difference between chemist promotion as the influence of


There is no significant difference between family or friend recommendation as the

influence of purchase of OTC product and the age of the person

There is significant difference between advertisement effect of magazine as the influence

of purchase of OTC product and the age of the person

There is no significant difference between overall health and gender of people

There is no significant difference between number of product usage and gender

There is no significant difference between usage of packaging instruction and gender of

people

There is no significant difference between usage of knowledge of dosing and gender of

people

There is no significant difference between usage of multiple drug and gender of people



There is no significant difference between negative reaction or side effect and gender of

people

There is no significant difference between frequency of pain suffering and gender of

people

There is no significant difference between frequency of acidity suffering and gender of

people

There is no significant difference between frequency of skin problem suffering and

gender of people





There is significant difference between price as an attribute that influence of purchase of


There is no significant difference between promotion as an attribute that influence of


There is no significant difference between pharmacist recommendation as an attribute


There is no significant difference between family or friend recommendation as an

attribute that influence of purchase of OTC product and gender of a person

There is no significant difference between advertisement effect of television on purchase




There is significant difference between advertisement effect of chemist shop on purchase


There is no significant difference between overall health and nature of family

There is no significant difference between number of product usage and nature of family

There is no significant difference between usage of packaging instruction and nature of

family

There is no significant difference between usage of knowledge of dosing and nature of

family

There is no significant difference between overdosage of OTC medicine and nature of

family

There is no significant difference between reason of overdosage and nature of family

There is no significant difference between usage of multiple drug and nature of family

There is significant difference between frequency of cold flu suffering and nature of

family

There is significant difference between frequency of vitamin usage and nature of family





There is no significant difference between price as an attribute that influence of purchase

of OTC product and nature of family

There is no significant difference between past experience as an attribute that influence of




There is no significant difference between family/friend recommendation as an attribute

that influence of purchase of OTC product and nature of family

There is no significant difference between advertisement effect of television on purchase

of OTC product and nature of family

There is significant difference between approach to find treatment and education

There is significant difference between number of product usage and education

There is no significant difference between usage of packaging instruction and education

There is no significant difference between usage of knowledge of dosing and education

There is no significant difference between overdosage of OTC medicine and education

There is no significant difference between usage of multiple drug and education

There is no significant difference between frequency of pain suffering and education

There is significant difference between frequency of cold flu suffering and education

There is no significant difference between frequency of skin disorder and education





There is significant difference between save cost to visit doctor as the influence of


There is significant difference between price as an attribute that influence of purchase of


There is significant difference between promotion as an attribute that influence of




There is significant difference between advertisement as an attribute that influence of


There is significant difference between past experience as an attribute that influence of


There is significant difference between family/friend recommendation as an attribute that


There is no significant difference between advertisement effect of newspaper on purchase


There is no significant difference between advertisement effect of magazine on purchase


There is significant difference between advertisement effect of chemist shop on purchase


There is no significant difference between overall health and occupation

There is no significant difference between usage of knowledge of dosing and occupation

There is significant difference between over dosage of OTC medicine and occupation

There is no significant difference between reason of overdosage and occupation

There is no significant difference between frequency of acidity suffering and occupation

There is significant difference between frequency of pain suffering and occupation

There is no significant difference between availability of time to visit doctor as the

influence of purchase of OTC product and occupation

There is significant difference between past experience as an attribute that influence of


There is significant difference between overdosage of OTC medicine and marital status



There is significant difference between frequency of cold flu suffering and marital status

There is significant difference between frequency of acidity suffering and marital status

There is significant difference between frequency of vitamin suffering and marital status

There is significant difference between advertisement as the influence of purchase of

OTC product and marital status

There is a significant difference across the parameter in an OTC product

The most important parameter or attribute on which OTC product always need to deliver

are respectively

1. Pharmacist Recommendation

2. Brand Name

3. Past experience

4. Physician recommendation

The most important parameter of influence for consumer to purchase OTC medicine on

their own is Past Experience

The most important medium of advertisement which leads the consumer to use or

recommendation of an OTC product is respectively

1. Newspaper

2. Internet

3. Magazine

4. Television

Brand Name being an important attribute to purchase an OTC product does not depend

on the age and gender of the respondent.



Price being an important attribute to purchase an OTC product does not depend on the

age but it depends on the gender of the respondent.

Promotion being an important attribute to purchase an OTC product does not depend on

the age and gender of the respondent.

Advertisement being an important attribute to purchase an OTC product does not depend


Physician recommendation being an important attribute to purchase an OTC product does

not depend on the age and gender of the respondent.

Past experience being an important attribute to purchase an OTC product does not depend


Pharmacist recommendation being an important attribute to purchase an OTC product

depends on the age and gender of the respondent.

Family/friend recommendation being an important attribute to purchase an OTC product

does not depend on the age and gender of the respondent.

9.2. RECOMMENDATION

It is very important for the brand manager of OTC products to increase awareness

amongst the consumer so, they take proper treatment for their general ailments, for now,

most of them use home remedy

The usage of OTC product over the years have increased with better education and

increase in disposable income but, there are still lot of areas where the market is untapped



The frequency of usage of same OTC product over the year have remained same, it is

important for brand manager to do proper positioning and branding to increase the

frequency of usage

It is important for brand manager to generate a campaign for the awareness of importance

of reading a packaging labels each time before using a medicine

If the medicine has more side effect it is the moral responsibility of the organization to

instruct the consumer to take advice from doctor before taking the medicine

There is no awareness in consumer about the dosage and usage of OTC product for a

particular indication, the doctor and pharmacist should be informed to impart some

knowledge when a consumer purchase or ask for a particular product

The awareness level of consumer is very low about the basic science of medicine, so

brand manager can launch a campaign to increase the knowledge about the OTC product

with the help of Media, Doctors and Chemists

There are lot of consumer who abuse drug usage so, it is important for brand manager to

give training to the retailer about the harmful effect of excessive usage which will help

them make understand the consumer about the harmful effect of excessive usage of

medicine

The multiple drug usage amongst the consumer is high. brand manager can provide the

different product for common symptoms of disease

The most important parameter to purchase a particular OTC medicine are advice of

pharmacist , doctor and brand name of the product so, it is important for the organization

to educate retailer, doctors and consumer simultaneously



Brand manager can use innovative methods to communicate the handling of negative

reaction caused by particular drug or it is advisable to check with doctor before using

drug

The OTC player should have drug portfolio in every general symptoms or aliment

because the frequency of suffering happens in every 6 months for same common

symptoms

The most effective communication mode in media for OTC medicine are usage of

Newspaper, magazine or any print media which helps the consumer to understand the

usage and indication of product

The advice of doctors and chemist helps to influence the purchase of particular brand and

OTC product. Organization should influence the doctors and chemist for advice of their

product

The past experience with the product is most importance influencing parameter for

purchase of medicine so brand manager should make sure to give better experiences with

the brand usage

The promotion at chemist store are the best promotion for purchase of a product because

the brand and the advisor is present at same place and time

The peer influence in decision plays an important role in purchase of a product, the

awareness amongst the consumer needs to be increased

The advertisement medium do play role in influencing the usage and recommendation of

the OTC product. The most effective medium is print medium which helps the consumer

read and understand the usage of OTC medicine



CONCLUSION

The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries.

This highly fragmented industry is very competitive. The companies are compelled to focus on

R&D and innovative methods to improve their manufacturing capabilities. In the OTC drug

marketing, the Customer and Consumer being the same, companies have to immediately address

the information needs more effectively and on a continuous basis. The acceptability of OTC

drugs will improve once the awareness level is enhanced. When the knowledge of the traditional

medicine is rooted in the culture, the knowledge about allopathic OTC drugs has to be

disseminated by manufacturing company and ensure drastic reduction in the high information

asymmetry existing today. The OTC drug offering is incomplete without empowering the public

on its rational use through well planed strategic marketing initiative revolving around the

aliment, the knowledge to diagnose and manage the same.

In this empowerment process which can be considered as CSR, the objective should be

prevention and holistic awareness creation leading to health and wellbeing than just offering the

minimum needed information to use one’s products. Thus by educating public (consumer) on

how to manage common ailments and finally how to prevent them, the pharma companies can

achieve its real goal of health for all and improve the quality of people’s life. The social benefit

at a national level will be lesser work load on general practitioners, pharmacists who are more

empowered to guide and counsel patients and more confident public who are in a better position

to take more informed choice of the best available solution to treat their common ailments and

prevent the frequent occurrence of the same. This will increase productivity at work and every

one in society can make superior contribution towards nation building as it strives to be a



developed one. In India, most residents are aware that OTC medicines could be purchased in

convenience stores, although most still showed preference for making purchases in pharmacies.

This may be due to different expectations for this outlet – the public may expect that pharmacies

can provide professional help, as well as offer good quality, lower prices, and a greater variety of

products. This survey conducted in Mumbai, the finding gives us an insight regarding consumers'

attitudes, usage and preferences towards OTC products. The surveyed consumer perceived that

OTC drug marketing strategies will make the drugs cheaper, easily available at stores and also

information of the brand. This will encourage Consumers to use OTC drugs as first line of

defense and reduce cost on healthcare management, but, it has high negative risk towards self

medication through OTC medicines across the consumer strata. As we know self medication

leads to taking health in own hands and will have detrimental effects. OTC brands in minor

ailments are safe and easily available.

Doctors were of the opinion that consumers will get more involved in health management if

more OTC Drugs are available in open market without prescription. But, OTC products will help

the company reach the areas where primary health care is question market; private healthcare

cost more even in minor ailment also so .the companies should bring down the cost of OTC

products to reach the poor. Thus OTC products are marketed and advertised freely so that

maximum consumers are educated and treat minor ailments at home using OTC products as first

line of defense. Since it can be expected that more Rx to OTC switch will increase number of

drugs in OTC category in near future, it may be valuable to conduct more research on group of

Consumer who consume OTC Products available to Counters freely and either switch from the

existing brand or continue to earlier brand.



As OTC product today enjoy a good market share and also in coming future as numbers of drugs

are going off-patent, so OTC market is going to see increasing market share. The entire

consumer surveyed uses some or other OTC products. Earlier prescription from a doctor,

recommendation from a friend/relative, advertisements of a product and through product trial

emerged as major reasons for purchasing OTC product. Pharmacist recommendation of a product

followed by its brand name & past experience can play role on purchase behavior.

Advertisements substantially affect consumer behavior towards OTC products in building brand

equity, majority of the consumers don't know the parent company of brand consumed. Thus,

study corroborates consumers prefer OTC products as a substitute to Rx products.



QUESTIONNARIE

Topic: Usage and Attitude of Consumer towards Pharmaceutical over the Counter (OTC) drugs

Name of Consumer

Age

o Below 25yrs

o 25-35

o 35-45

o Above 45

Gender

o Male

o Female

Nature of Family

o Nuclear

o Joint

Education

o School level

o Graduate

o Post Grad

o Professional

o Any other

Occupation:

Marital Status

o Single

o Married

o Divorce

Family Size

o More than 3

o 3 to 6

o Above 6



1. Overall how would you rate your current health?

o Excellent

o Very good

o Good

o Fair

o Poor

2. Think about the condition when you had suffered from some general problem like cold,

cough, sore throat etc recently, what did you do generally in these ailments?

o Used medicine already at home

o See doctor

o Purchased OTC medicine

o Purchased prescription drug

o Use home remedy

o Used nothing

3. Do you use OTC drugs or medication for mentioned below indication If Yes, please indicates

the frequency of usage?

Indication or Ailments

Yes/No

Daily

Weekly

Biweekly

Monthly

Bimonthly

Half Yearly

Yearly

FeverPainCold, FluAcidityContraceptionVomitingDiahorreaVitaminDietary supplementMineralSkin disorder


Frequency


4. Would you say that you are taking more, fewer or about same number of product than you

did five year ago?

o More

o Fewer

o About same

o Don’t know

5. Are you using this OTC product more, less or about same as five year ago?

o More frequently

o Less frequently

o About same

o Don’t know/not sure

6. What makes you take decision on your own to purchase medicine?

Rate on a scale of 1-5 where 1-represents lowest and 5-represents Highest

Parameter 1 2 3 4 5Past experienceAdvertisement

Lack of Time to visit Doctor


Chemist promotion

Internet & Blog recommendation



7. Please indicate the importance of following attribute in a purchase of OTC drug

1-Unimportant

2- of little importance

3-Moderately Important

4- Important

5- Very Important

Sr no

Parameter 1 2 3 4 5

1 Brand Name2 Price3 Promotion4 Advertisement5 Physical Recommendation6 Past Experience7 Pharmacist

Recommendation8 Family/Friend

Recommendation



Advertisement effect

8. Have you seen advertisement of OTC drug recently, if Yes, please indicate if you have use or

recommended it to others? Accordingly

1. Definitely will recommend/Use2. Probably will recommend/Use3. Not sure4. Probably will not recommend/Use5. Definitely will not recommend/Use6. Never Used/Recommended

Sources of watching Yes/No 1 2 3 4 5 6NewspaperMagazineTelevisionInternetChemist shopDoctors cabin

9. Do you agree after reading or watching a medicine advertisement, one should consult a physician about it before using it?

o Strongly Disagreeo Disagreeo Undecidedo Agreeo Strongly Agree

10. Whose Advice is taken when you decide on which OTC drug to buy? Rank accordingly



Parameter Rank The doctorThe PharmacistAcquaintances, Family,Friends,ColleaguesMedia AdvertisementPast experienceAdvertisements on Chemist storeInternet information

Consumer usage of OTC labels

11. When you buy or take the OTC me9dicine for the first time, what information do you read on

the package first?

o Direction of usage

o Dosage levels

o Symptoms it is used for

o Possible side effect of usage

o Warning about usage with other medicine

o Expiry date

o Other response

12. Are you likely to re-read the label again in the following circumstances

o OTC Medicine to a child

o OTC Medicine with prescription drug at same

o OTC medicine with OTC medicine at same time

o Don’t read the label long time

o Other

Knowledge of OTC



13. To the best of recollection, what is Active ingredient in brand crocin?

______________________________________________________________

14. Based on what you know, what is most accurate way to determine the amount of medicine to

be taken in particular indication?

o Weight

o Age

o Both Weight and Age

o Neither weight nor age

o Don’t know/Not sure

Taking too much of an OTC drug

15. Have you ever taken more than the recommended dose of a non-prescription medicine?

o Yes

o No

o Not sure

16. If yes, how much more have you taken?

o More than recommended no of pills at single time

o Next dose sooner than directed on label

o More no. Of dosage per day directed on label

o Don’t know/ not sure



17. What is the one reason for taking more medicine is

o Believe it relieve more quickly

o had severe symptoms

o Did not get any better by taking recommended dose

o Used prescription all to my judgment

o Any other please specify

18. If you have more than one symptom at same time like headache, sore throat, how likely are

you to take more than one OTC medicine?

o Not at all likely

o Not very likely

o Somewhat likely

o Very likely

o Extremely likely

Side effect

19. Have you ever experienced any negative reaction or side effect from taking an OTC product?

o Yes

o No

o Not sure

20. What did you do mostly to stop the negative reaction?

o Stopped taking OTC medicine

o Contacted doctor

o Waited until you felt better

o Contacted chemist

o Contacted friend or family

o Took other medicine

o Others

Which different places do you think OTC medicine should be made available other than Medical



stores?

LIST OF FIGURE

Figure Description Page

No.

CHAPTER NO 1: OVERVEIW OF PHARMACEUTICAL INDUSTRY

Fig.1.1 Branches of Medical Science 2

Fig.1.2 Manufacturing Process 5

Fig.1.3 Market share of Different Pharmaceutical Product Categories 11

CHAPTER NO 3: INDIAN PHARMACEUTICAL INDUSTRY

Fig.3.1 Percentage Sales of Industry Segment 37

CHAPTER NO 8: DATA ANALYSIS AND INTERPRETATION

Fig.8.1 Indicates the Age Profile of the Respondent 108

Fig.8.2 Indicates the Gender Profile of the Respondent 109

Fig.8.3 Indicates the Nature of Family Profile of the Respondent 110

Fig.8.4 Indicates the Education Qualification Profile of the Respondent 111

Fig.8.5 Indicates the family Size Profile of the Respondents 112

Fig.8.6 Indicates the Frequency of Overall Current Health of the Respondent 113

Fig.8.7 Indicates the Frequency of Respondent Taking Self Medication in Minor

Ailments

114

Fig.8.8 Indicates the Frequency of Number of Products Usage Over the Years by the

Respondent

115

Fig.8 .9 Indicates the Frequency of Number of Products Usage Frequency Over the Years 116



by the Respondent

Fig.8.10 Indicates the Frequency of Usage of Packaging Labels 117

Fig.8.11 Indicates the Frequency of Re-read Packaging Labels in Any Circumstances 118

Fig.8.12 Indicates the Frequency of Knowledge of Usage and Dosage of OTC Product 119

Fig.8.13 Indicates the Frequency of Awareness About an OTC Product 120

Fig.8.14 Indicates the Frequency About over Usage of an OTC Product 121

Fig.8.15 Indicates the Frequency about Amount of Over Usage of an OTC Product 122

Fig.8.16 Indicates the Frequency Reason for the Over Usage of an OTC Product 123

Fig.8.17 Indicates the Frequency of Multidrug Usage to Treat Multiple Symptoms 124

Fig.8.18 Indicates the Frequency of Experience of Side Effect after Usage of an OTC

Product

125

Fig.8.19 Indicates the Frequency Response to Tackle Side Effect of an OTC Product 126

Fig.8.20 Indicates the Frequency Response of Suffering from Fever 127

Fig.8.21 Indicates the Frequency Response of Suffering from Pain 128

Fig.8.22 Indicates the Frequency Response of Suffering from Cold Flu 129

Fig.8.23 Indicates the Frequency Response of Suffering from Acidity 130

Fig.8.24 Indicates the Frequency Response of Suffering from Vomiting 131

Fig.8.25 Indicates the Frequency Response of Suffering from Diahorrea 132

Fig.8.26 Indicates the Frequency Response Usage of Vitamin 133

Fig.8.27 Indicates the Frequency Suffering from Skin Disorder 134

Fig.8.28 Indicates the Importance of Doctor in Advice to Purchase OTC Product 135

Fig.8.29 Indicates the Importance of Pharmacist in Advice to Purchase OTC Product 136



Fig.8.30 Indicates the Importance of Family, Friends, Colleagues, Acquaintance in Advice

to Purchase OTC Product

137

Fig.8.31 Indicates the Importance of Media Advertisement in Advice to Purchase OTC

Product

138

Fig.8.32 Indicates the Importance of Past Experience as an Advice to Purchase OTC

Product

139

Fig.8.33 Indicates the Importance of Advertisement on Chemist Store in Advice to

Purchase OTC Product

140

Fig.8.34 Indicates the Importance of Internet Information in Advice to Purchase OTC

Product

141



LIST OF TABLE

Tab. DESCRIPTIONPAGE

NO.

CHAPTER NO 1: OVERVIEW OF PHARMACEUTICAL INDUSTRY

Tab.1.1 Market Value and Market Growth of Therapeutic Segment 12

CHAPTER NO 2: INTRODUCTION OF PHARMACEUTICAL INDUSTRY

Tab.2.1 Market Share and Market Growth of Global Market 19

Tab.2.2 Major Players in Pharmaceutical Market 25

CHAPTER NO 4: COMPETITIVE ANALYSIS OF PHARMACEUTICAL INDUSTRY

Tab.4.1 Market Share of Top Five Pharmaceutical Companies India 51

CHAPTER NO 5: PHARMACEUTICAL OTC MARKET

Tab.5.1 USA. Pharmaceutical OTC Market Segmentation 72

Tab.5.2 Europe Pharmaceutical OTC Market Segmentation 73

Tab.5.3 Market Sales of Different OTC Segment 77

Tab.5.4 Market Share of Indian OTC Market Segment 78

Tab.5.5 Top Ten OTC Brands in Indian Market 79

CHAPTER N0 8: DATA ANALYSIS AND INTERPRETATION

Tab.8.1 Crosstab to Identify Overall Health with Respect to Age of the Person 142

Tab.8.2Chi square to Measure the Overall Health with Respect to Age of the

Person142



Tab.8.3

Crosstab to Identify Number of Product Usage with Respect to Age of

the Person143

Tab.8.4Chi square to Measure Number of Product Usage with Respect to Age

of the Person143

Tab.8.5Crosstab to Identify Usage of Packaging Labels with Respect to Age of

the Person144

Tab.8.6Chi square to Measure Usage of Packaging Labels with Respect to Age

of the Person145

Tab.8.7Crosstab to identify knowledge of usage of medicine with respect to age

of the person146

Tab.8.8

Chi square to Measure the Knowledge of Usage of Medicine with

Respect to Age of the Person147

Tab.8.9

Crosstab to Identify Excessive Usage of Medicine with Respect to Age

of the Person148

Tab.8.10Chi square to Measure Excessive Usage of Medicine with Respect to

Age of the Person149

Tab.8.11Crosstab to Identify Reason for Excessive Usage of Medicine with


Tab.8.12Chi square to Measure the Reason for Excessive Usage of Medicine

with Respect to Age of the Person150

Tab.8.13Crosstab to Identify Experience of Negative Reaction with Respect to

151



Age of the Person

Tab.8.14

Chi square to Measure the Experience of Negative Reaction with


Tab.8.15Crosstab to Identify the Frequency of Suffering with Pain with Respect

to Age of the Person153

Tab.8.16Chi square to Measure the Frequency of Suffering with Pain with


Tab.8.17Crosstab to Identify the Frequency of Suffering from Acidity with


Tab.8.18

Chi square to Measure the Frequency of Suffering from Acidity with


Tab.8.19Crosstab to Identify the Frequency of Suffering from Skin Disorder


Tab.8.20

Chi square to Measure the Frequency of Suffering from Skin Disorder


Tab.8.21Crosstab to Identify Influence of Past Experience in Purchase of OTC

Drug with Respect to Age of the Person159

Tab.8.22Chi square to Measure the Influence of Past Experience in Purchase of

OTC drug with Respect to Age of the Person160

Tab.8.23Crosstab to Identify Influence of Advertisement in Purchase of OTC

Drug with Respect to Age of the Person161



Tab.8.24Chi square to Measure the Influence of Advertisement in Purchase of

OTC Drug with Respect to Age of the Person162

Tab.8.25Crosstab to Identify Influence of Chemist Promotion in Purchase of

OTC Drug with Respect to Age of the Person163

Tab.8.26Chi square to Measure the Influence of Chemist Promotion in

Purchase of OTC Drug with Respect to Age of the Person164

Tab.8.27Crosstab to Identify Influence of Family /Friends Recommendation in


Tab.8.28

Chi square to Measure the Influence of Family/Friends

Recommendation in Purchase of OTC Drug with Respect to Age of the

Person

166

Tab.8.29Crosstab to Identify Advertisement Effect of Magazine Influences in


Tab.8.30Chi square to Measure Advertisement Effect of Magazine Influences in


Tab.8.31Crosstab to Identify Overall health with Respect to Gender of the

Person169

Tab.8.32Chi square to Measure the Overall Health with Respect to Gender of

the Person169

Tab.8.33

Crosstab to Identify Number of Product Usage with Respect to Gender

of the Person170

Tab.8.34Chi square to Measure Number of Product Usage with Respect to

170



Gender of the Person

Tab.8.35Crosstab to Identify Usage of Packaging Labels with Respect to Gender

of the Person171

Tab.8.36Chi square to Measure Usage of Packaging Labels with Respect to

Gender of the Person172

Tab.8.37Crosstab to Identify Excessive Usage of Multidrug with Respect to


Tab.8.38

Chi square to Measure Multidrug Usage of Medicine with Respect to


Tab.8.39Crosstab to Identify Experience of Negative Reaction with Respect to


Tab.8.40Chi square to Measure the Experience of Negative Reaction with

Respect to Gender of the Person175

Tab.8.41Crosstab to Identify the Frequency of Suffering with Pain with Respect

to Gender of the Person176

Tab.8.42

Chi square to Measure the Frequency of Suffering with Pain with


Tab.8.43Crosstab to Identify the Frequency of Suffering from Acidity with


Tab.8.44Chi square to Measure the Frequency of Suffering from Acidity with


Tab.8.45 Crosstab to Identify the Frequency of Suffering from Skin Disorder 178



with Respect to Gender of the Person

Tab.8.46Chi square to Measure the Frequency of Suffering from Skin Disorder

with Respect to Gender of the Person179


Drug with Respect to Gender of the Person180


OTC Drug with Respect to Gender of the Person180




OTC Drug with Respect to Gender of the Person182

Tab.8.51Crosstab to Identify Influence of Price in Purchase of OTC Drug with


Tab.8.52Chi square to Measure the Influence of Price in Purchase of OTC


Tab.8.53Crosstab to Identify Influence of Promotion in Purchase of OTC Drug

with Respect to Gender of the Person184

Tab.8.54Chi square to Measure the Influence of Promotion in Purchase of OTC

Drug with Respect to Gender of the person185

Tab.8.55Crosstab to Identify Influence of Pharmacist Recommendation in

Purchase of OTC Drug with Respect to Gender of the Person186

Tab.8.56Chi square to Measure the Influence of Pharmacist Recommendation

in Purchase of OTC Drug with Respect to Gender of the Person187





Tab.8.58

Chi square to Measure the Influence of Family /Friends

Recommendation in Purchase of OTC Drug with Respect to Gender of

the Person

188

Tab.8.59Crosstab to Identify Advertisement Effect of Television Influences in


Tab.8.60Chi square to Measure Advertisement Effect of Television Influences


Tab.8.61Crosstab to Identify Advertisement Effect of Chemist Shop Influences


Tab.8.62

Chi square to Measure Advertisement Effect of Chemist Shop

Influences in Purchase of OTC Drug with Respect to Gender of the

Person

192

Tab.8.63Crosstab to Identify Overall Health with Respect to Nature of Family of

the Person193

Tab.8.64

Chi square to Measure the Overall Health with Respect to Nature of

Family of the Person193

Tab.8.65

Crosstab to Identify Number of Product Usage with Respect to Nature

of Family of the Person194

Tab.8.66 Chi square to Measure Number of Product Usage with Respect to

Nature of Family of the Person

194



Tab.8.67Crosstab to Identify Usage of Packaging Labels with Respect to Nature

of Family of the Person195

Tab.8.68Chi square to Measure Usage of Packaging Labels with Respect to

Nature of Family of the Person195

Tab.8.69

Crosstab to Identify Knowledge of Usage of Medicine with Respect to


Tab.8.70Chi square to Measure the Knowledge of Usage of Medicine with

Respect to Nature of Family of the Person196

Tab.8.71Crosstab to Identify Excessive Usage of Medicine with Respect to


Tab.8.72Chi square to Measure Excessive Usage of Medicine with Respect to


Tab.8.73Crosstab to Identify Reason for Excessive Usage of Medicine with


Tab.8.74Chi square to Measure the Reason for Excessive Usage of Medicine

with Respect to Nature of Family of the Person198

Tab. 8.75Crosstab to Identify Usage of Multidrug with Respect to Nature of

Family of the Person199

Tab.8.76



Tab.8.77Crosstab to Identify the Frequency of Suffering with Cold flu with

Respect to Nature of Family of the Person

200



Tab.8.78Chi square to Measure the Frequency of Suffering with Cold flu with


Tab.8.79Crosstab to Identify the Frequency of Suffering from Vitamin with


Tab.8.80Chi square to Measure the Frequency of Suffering from Vitamin with



Drug with Respect to Nature of Family of the Person202


OTC Drug with Respect to Nature of Family of the Person202





Tab.8.85Crosstab to Identify Influence of Price in Purchase of OTC Drug with


Tab.8.86Chi square to Measure the Influence of Price in Purchase of OTC







209



Purchase of OTC Drug with Respect to Nature of Family of the Person

Tab.8.90


Recommendation in Purchase of OTC Drug with Respect to Nature of

Family of the Person

210

Tab.8.91Crosstab to Identify Advertisement Effect of Television Influences in

Purchase of OTC Drug with Respect to Nature of Family of the Person211

Tab.8.92

Chi square to Measure Advertisement Effect of Television Influences

in Purchase of OTC Drug with Respect to Nature of Family of the

Person

212

Tab.8.93

Crosstab to Identify Past Experience as a Mean of Advice which

Influences in Purchase of OTC Drug with Respect to Nature of Family

of the Person

213

Tab.8.94

Chi square to Measure Past Experience as a Mean of Advice which

Influences in Purchase of OTC Drug with Respect to Nature of Family

of the Person

214

Tab.8.95

Crosstab to Identify Advertisement Chemist Store as a Mean of Advice

which Influences in Purchase of OTC Drug with Respect to Nature of

Family of the Person

215

Tab.8.96 Chi square to Measure Advertisement Chemist Store as a Mean of

Advice which Influences in Purchase of OTC Drug with Respect to

Nature of Family of the Person

216

Tab.8.97Crosstab to Identify Approach to Find Treatment for General Ailment

217



with Respect to Education of the Person

Tab.8.98

Chi square to Measure to Find Treatment for General Ailment with

Respect to Education of the Person218

Tab.8.99

Crosstab to Identify Number of Product Usage with Respect to

Education of the Person219

Tab.8.10

0

Chi square to Measure Number of Product Usage with Respect to


Tab.8.10

1

Crosstab to Identify Usage of Packaging Labels with Respect to


Tab.8.10

2

Chi square to Measure Usage of Packaging Labels with Respect to


Tab.8.10

3



Tab.8.10

4



Tab.8.10

5

Crosstab to Identify Excessive Usage of Medicine with Respect to


Tab.8.10 Chi square to Measure Excessive Usage of Medicine with Respect to 225



6 Education of the Person

Tab.8.10

7

Crosstab to Identify Usage of Multidrug with Respect to Education of

the Person226

Tab.8.10

8



Tab.8.10

9

Crosstab to Identify the Frequency of Suffering with Pain with Respect

to Education of the Person227

Tab.8.11

0

Chi square to Measure the Frequency of Suffering with Pain with


Tab.8.11

1

Crosstab to Identify the Frequency of Suffering with Cold flu with


Tab.8.11

2

Chi square to Measure the Frequency of Suffering with Cold flu with


Tab.8.11

3

Crosstab to Identify the Frequency of Suffering from Skin Disorder

with Respect to Education of the Person229

Tab.8.11

4

Chi square to Measure the Frequency of Suffering from Skin Disorder




Tab.8.11

5

Crosstab to Identify Influence of Past Experience in Purchase of OTC

Drug with Respect to Education of the Person230

Tab.8.11

6

Chi square to Measure the Influence of Past Experience in Purchase of

OTC Drug with Respect to Education of the Person230

Tab.8.11

7

Crosstab to Identify Influence of Advertisement in Purchase of OTC


Tab.8.11

8

Chi square to Measure the Influence of Advertisement in Purchase of


Tab.8.11

9

Crosstab to Identify Influence of Saving the Cost to Visit Doctor in

Purchase of OTC Drug with Respect to Education of the Person233

Tab.8.12

0

Chi square to Measure the Influence of Saving the Cost to Visit Doctor

in Purchase of OTC Drug with Respect to Education of the Person234

Tab.8.12

1

Crosstab to Identify Influence of Price in Purchase of OTC Drug with


Tab.8.12

2

Chi square to Measure the Influence of Price in Purchase of OTC


Tab.8.12

3

Crosstab to Identify Influence of Promotion in Purchase of OTC Drug


Tab.8.12 Chi square to Measure the Influence of Promotion in Purchase of OTC

Drug with Respect to Education of the Person

238



4

Tab.8.12

5



Tab.8.12

6

Chi square to Measure the Influence of Advertisement in Purchase of


Tab.8.12

7



Tab.8.12

8



Tab.8.12

9

Crosstab to Identify Influence of Family /Friends Recommendation in


Tab.8.13

0


Recommendation in Purchase of OTC Drug with Respect to Education

of the Person

244

Tab.8.13

1

Crosstab to Identify Advertisement Effect of Newspaper Influences in


Tab.8.13

2

Chi square to Measure Advertisement Effect of Newspaper Influences


Tab.8.13 Crosstab to Identify Advertisement Effect of Magazine Influences in

Purchase of OTC Drug with Respect to Education of the Person

247



3

Tab.8.13

4

Chi square to Measure Advertisement Effect of Magazine Influences in


Tab.8.13

5

Crosstab to Identify Advertisement Effect of Chemist shop Influences


Tab.8.13

6

Chi square to Measure Advertisement Effect of Chemist Shop

Influences in Purchase of OTC Drug with Respect to Education of the

Person

250

Tab.8.13

7

Crosstab to Identify Overall Health with Respect to Occupation of the

Person251

Tab.8.13

8

Chi square to Measure the Overall Health with Respect to Occupation

of the Person251

Tab.8.13

9


Occupation of the Person252

Tab.8.14

0


Respect to Occupation of the Person253

Tab.8.14

1





Tab.8.14

2

Chi square to Measure Excessive Usage of Medicine with Respect to


Tab.8.14

3

Crosstab to Identify the Reason for Excessive Usage of Medicine with


Tab.8.14

4

Chi square to Measure the Reason for Excessive Usage of Medicine

with Respect to Occupation of the Person255

Tab.8.14

5

Crosstab to Identify the Frequency of Suffering with Acidity with


Tab.8.14

6

Chi square to Measure the Frequency of Suffering with Acidity with


Tab.8.14

7

Crosstab to Identify the Frequency of Suffering of Vitamin with


Tab.8.14

8

Chi square to Measure the Frequency of Usage of Vitamin with


Tab.8.14

9

Crosstab to Identify Influence of Availability of Time to Visit Doctor in

Purchase of OTC Drug with Respect to Occupation of the Person260

Tab.8.15

0

Chi square to Measure the Influence of Availability of Time to Visit in

Purchase of OTC Drug with Respect to Occupation of the Person

260



Tab.8.15

1


Drug with Respect to Occupation of the Person261

Tab.8.15

2


OTC Drug with Respect to Occupation of the Person262

Tab.8.15

3


Marital Status of the Person263

Tab.8.15

4

Chi square to Measure Excessive Usage of Medicine with Respect to


Tab.8.15

5

Crosstab to Identify the Frequency of Suffering with Cold flu with

Respect to Marital Status of the Person264

Tab.8.15

6

Chi square to Measure the Frequency of Suffering with Cold flu with


Tab.8.15

7

Crosstab to Identify the Frequency of Suffering from Acidity with


Tab.8.15

8

Chi square to Measure the Frequency of Suffering from Acidity with


Tab.8.15

9

Crosstab to Identify the Frequency of Usage of Vitamin with Respect to


Tab.8.16

0

Chi square to Measure the Frequency of Usage of Vitamin with


Tab.8.16

1


Drug with Respect to Marital Status of the Person270

Tab.8.16 Chi square to Measure the Influence of Advertisement in Purchase of 270



2 OTC Drug with Respect to Marital Status of the Person

Tab.8.16

3

Indicates the Descriptive Analysis of Important Parameter to Purchase

an OTC Product271

Tab.8.16

4

ANOVA to Measure the Difference amongst the Parameter to Purchase

an OTC Drug272

Tab.8.16

5

Tukey to identify the Most Important Parameter to Purchase an OTC

Drug273

Tab.8.16

6

Indicates the Descriptive Analysis of Important Parameter that

Influence the Consumer to Purchase OTC Medicine on their Own274

Tab.8.16

7

ANOVA to Measure the Difference amongst the Parameter to that

Influence the Consumer to Purchase OTC Medicine on their Own275

Tab.8.16

8

Tukey to Identify the Most Important Parameter that Influence the

Consumer to Purchase OTC Medicine on their Own276

Tab.8.16

9

Indicates the Descriptive Analysis of Different Types of Mediums of

Advertisement used to Promote an OTC Product277

Tab.8.17

0

ANOVA to Measure the Difference Between the Different Medium of

Advertisement which Leads to Use or Recommendation of an OTC

Product

278

Tab.8.17

1

Tukey to Identify the Most Important Medium of Advertisement which

leads the Consumer to Use or Recommendation of an OTC Product279

Tab.8.17

2

Descriptive Statistics with Dependent Variable Brand Name 280



Tab.8.17

3Two Way ANOVA with Dependent Variable Brand Name 281

Tab.8.17

4Descriptive Statistics with Dependent Variable Price 282

Tab.8.17

5Two Way ANOVA with Dependent Variable Price 283

Tab.8.17

6Descriptive Statistics with Dependent Variable Promotion 284

Tab.8.17

7Two Way ANOVA with Dependent Variable Promotion 285

Tab.8.17

8Descriptive Statistics with Dependent Variable Advertisement 286

Tab.8.17

9Two Way ANOVA with Dependent Variable Advertisement 287

Tab.8.18

0

Descriptive Statistics with Dependent Variable Physician

Recommendation288

Tab.8.18

1

Two Way ANOVA with Dependent Variable Physician

Recommendation289

Tab.8.18

2Descriptive Statistics with Dependent Variable Past Experience 290

Tab.8.18

3Two Way ANOVA with Dependent Variable Past Experience 291

Tab.8.18 Descriptive Statistics with Dependent Variable Pharmacist 292



4 Recommendation

Tab.8.18

5Two way ANOVA with Dependent Variable Price 293

Tab.8.18

6

Descriptive Statistics with Dependent Variable Family/Friends

Recommendation294

Tab.8.18

7Two Way ANOVA with Dependent Variable Past Experience 295



BIBLIOGRAPHY

Web sites

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2011

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Usage and Attitude of Consumer Toward Pharmaceutical Over the Counter (OTC) Product

Documents