11-07-2012, 12:42 PM
MARKETING STRATEGIES WORK BY DIFFERENT PHARMACEUTICAL
COMPANIES
MARKETING.pdf (Size: 273.6 KB / Downloads: 222)
INTRODUCTION:
The pharmaceutical industry is the world’s largest industry due to worldwide revenues of
approximately US$2.8 trillion. Pharma industry has seeb major changes in the recent
years that place new demands on payers, providers and manufacturers. Customers now
demand the same choice and convenience from pharma industry that they find in other
segment.
Indian Pharmaceutical Industry is poised for high consistent growth over the next few
years, driven by a multitude of factors. Top Indian Companies like Ranbaxy, DRL
CIPLA and Dabur have already established their presence.
Pharma Marketing Process and its Challenges
While many pharmaceutical companies have successfully deployed a plethora of
strategies to target the various customer types, recent business and customer trends are
creating new challenges and opportunities for increasing profitability. In the
pharmaceutical and healthcare industries, a complex web of decision-makers determines
the nature of the transaction (prescription) for which direct customer of pharma industry
(doctor) is responsible . Essentially, the end-user (patient) consumes a product and pays
the cost .
Patents
Patents are a vital aspect of the global pharma industry. Patent protection is essential to
spur basic R&D and make it commercially viable. But, only the developed nations
endorse product patents. Most third world countries have patent laws but enforcement is
totally lax. Some developing nations like India, Egypt and Argentina allow only process
patent registration.
New Drug Approval (NDA)
Prior to launching its products in any country, a pharma company undertakes patent
registration to protect its own interests. To protect the interests of the consumers, it is
necessary that the product be approved by the drug authorities in that country. Mostly the
process for seeking approval is initiated alongside the patent registration process.
WTO
Due to pressure from the developed countries, across the world uniformity in patent laws
is being implemented under WTO (World Trade Organization - earlier GATT i.e.
General Agreement on Tariffs & Trade). Presently, different countries have different
patent types and life period. WTO has decided upon a product patent life of 20 years in
all countries.
RESEARCH & DEVELOPMENT (R&D)
The pharmaceutical industry is characterized by heavy R&D expenditure. It is only the
large pharmaceutical companies who can allocate significant resources for R&D to
introduce new products. As the products are an outcome of significant R&D expenditures
incurred by these companies, they have their products patented. The patent allows the
companies concerned to wield immense pricing power for their new products.
THE COMPETITION
The level of competition in very high in Acute segment on day to day basis however the
degree of competition in not as much as high in Chronic therapy area on day to day basis.
As doctor has to prescribe drug for a long time in chronic cases and patient is suppose to
consume it without any change of brand. While in acute cases doctor is changing brands
on day to day basis.
Pharmaceutical Company Business Strategies
What’s the secret behind these successes? For one, the company operates in niche
formulations (chronic) segments such as psychiatry, cardiovascular, gastroentology and
neurology. While most of the top Indian companies have focused on antibiotics and anti–
infectives (acute), Sun Pharma focused on therapeutic areas such as depression,
hypertension and cancer. The company has introduced the entire range of products and
has gained leadership position in each of these areas. Being a specialty company insulates
Sun Pharma from the industry growth.