Nmims India Pharma Market

7/29/2019 Nmims India Pharma Market

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IndianPharmaceutical Market


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Dimensions of the Pharmaceutical Market

Demographic: geographical & shared socio-economic traits

Generic: generic equivalents present in a number of

formulations eg. Erythromycin

Therapeutic Group: aimed at relieving, treating and curingthe same symptoms of diseases

eg. Anti-diabetic therapeutic group

Competitive: extent of competition in terms of numbers,

their MS & growth rate

Timing: introduce at the right time, preferably become the

prime movers (Torrent: 1983-88 grew at avg.182%

moved from Rk 81 to Rk 36 & in 1992 Rk 13)


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Segments of the Pharmaceutical Market

Consumer Market: prescription market

Institutional Market: large hospitals & medical colleges

Industrial Market: bulk drugs used in formulations


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Criteria for Effective Segmentation

Measurability: number of members, growing or de-growing

Accessibility: must be reachable in a cost effective manner

Desirability: must be large enough to service profitably

Homogeneity:ensure Fit between the Need profile of

the segment and the Satisfaction qualities or

attributes of the product

Vulnerability: must not be excessively vulnerable to competition


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Four ways of Segmentation

Demographic factors: age, sex, income, education, stage infamily cycle

Usage rate: based on usage/consumption pattern

Perceived product benefits: unearth not-so-apparent benefits

Psychographic: motive behind the purchase


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Segmentation through Transaction

Two Major Potential Target Groups

Patients Doctors(Customers or influencers)(Consumers or end users)

Similar illness: Diabetic, Asthmatic

Stage of illness: Acute, Chronic

Age group: pediatric, Geriatric

Sex: Male, Female

Age group: Young, Middle aged, Elderly

Specialty: Card, Diab, Neuro, Gynec

Area: Urban, Rural, Hosp, Nrsg. Homes

Type: Rxing, Dispensing

Usage: Heavy, Medium, Past, Non-user


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Benefit of Segmentation Strategy

Helps in focusing promotional effort to

maximize profits cost-effectively

Helps in creating a strong positive product-imageTo offset competition


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Key Questions while Segmenting

1. On what basis?

Demographic, Geographic, Age group, Sex, Income levels,Therapeutic group, Severity of disease, Product benefits,

Usage rate, Place of treatment, Specialty

2. What are the needs of patients?

3. What are the needs of customers?

4. Relationship between patients & customers

5. Is the segment attractive enough?

6. What is the trend like?

7. Are there any unsatisfied needs in the segment whichthe product can satisfy?


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Market Dimension

The size of the geographical market

State-wise % contribution to all India & Rate of changeIn terms of; Volume, Value & Rx generated

The size by therapeutic group

Therapeutic group-wise contribution to the total marketRegion-wise contribution

In terms of; Volume, Value, Rate of change & Rxs

The size by demographics of both;

Patients: number treated, Age, Income, Sex, Location etc

Doctors: number, age, specialty, location, type of practice


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Market Dimension

The size of prescription market

No. of Rxtions written for the therapeutic category

The size of competition

Number operating in the segment, Regional shares of the

total market, Resources, Strengths & Weakness, BenefitPackages offered by major competitors

The size by volume

Dealer network according to volume of purchase

The size of the institutional market by

Nature, Frequency, Volume, Location, Key people, Criteria


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Served Market Concept

Is the state-of-the-art of defining market segments andunderstanding market structures-Bruce Henderson (BCG)

Helps to create a perceptible competitive advantage for

growth and survival


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Define the total market by size (volume & value), growth

rate, customer types and competitors

Define in terms of customer needs and how your product

can satisfy those needs

Define your competitors served market in terms of their

respective customer needs and the competitive advantage

of their products in satisfying those needs

Find ways of creating perceptible differentiation and turnit into a distinct competitive advantage

Communicate with all your might and drive home

the advantage


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Gelusil v/s Digene(Differentiated thro antiflatulent)

Pfizer & BE in 70s: PAS, Isoniazid, Thiacetazone & combination

Lupin in 80s emerged: ethambutol, PZA, RIF

Sarabhai in 76: narrow spectrum antibiotics & oral penicillinsRanbaxy emerged: broad spectrum semi-synthetic antibiotics

BE Ltd v/s SII v/s Hoechst: competing in Immunologicals


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Served Market Opportunity Analysis

1. Strengths of your product in your served market as well as

in your competitors served market as opposed to their product

2. Analysis of any possible gaps in customer needs and whether

the gaps can be exploited profitably

4. Any possible weaknesses existing in your product offerings ascompared to changing customer needs and the ways in which

your competitors are responding

5. Quantitative analysis of the new product in terms of; demand,

profitability, the edge it would give the companys current

product-mix, the impact it would have on the existing product-

mix

6. Detailed analysis of competitors response to this new segment


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Market Opportunity Analysis

Step-1

Analyze your existing market

What is your directly competing market?

Step-2

Build on your strength

Have you realized all probable opportunities in existing markets?Do SWOT Analysis of your products in all your existing markets

Are there any unmet needs in your existing markets not fulfilled

by you and your competitors?

Are there any major sub-segments where you do not have anyproduct?

What are the strengths & weakness of your products as

compared to the competitors-is there need for product devpmt?

What are the opportunities & threats in your markets?


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Market Opportunity Analysis

Step-3

Explore new market opportunities

List fast growing, largest, less entrenched markets, and

prioritizethem in order of importance & attractiveness. Also,

analyze how congruent is the market identified/shortlisted.

Step-4

Evaluate new opportunities in new segments

Is the market large enough and growing rapidly?

What is the intensity of competition?How does your firm compare with them?

What is the attribute of your product planned for introduction?


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What Strategic Options?

1. Concentrated Marketing

Segmenting the market by customer specialty

Advantages

Niche for the company &products

Provides competitive advantage

Helps better customer services

Focuses the resources &optimizes the result

Disadvantages

Close monitoring requiredFailure can be devastating

Segment may not be viable


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What Strategic Options?

2. Differentiated Marketing

Marketing to many segments each with differentiated

marketing-mix

Advantages

Minimizes vulnerability factor

Makes the firm more flexible

Cost is spread out

Disadvantages

Lacks focus

Cannot achieve dominance

Diminishing profits


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Positioning: Definition

Is the battle for space in the consumers mind

Is less what we do to the product and more what we do to

the consumers perception of the product

The positioning of a brand is its perception among targetcustomers

Is the art of selecting, out of a number of unique selling

propositions, the one which will get you maximum sales


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Positioning: Definition

1. The positioning of a brand is the perception it brings aboutIn the mind of a target consumer

2. This perception reflects the essence of the brand in terms

of its functional and non-functional benefits in the judgement

of that consumer

3. It is relative to the perception, held by that consumer, of

competing brands, all of which can be represented as points

or positions in his/her perceptual space and together, makeup a product class

Thus, positioning creates a unique, credible, sustainable and

valued place in consumers minds for the brand


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Positioning: Four Components

1. Product class or the structure of the market in which thebrand will compete

2. Consumer segmentation

3. Consumer perception of our brand in relation to competitors,which leads to perceptual mapping

4. The benefits offered by the brand. These benefits may also

be expressed as attributes or dimensions along which brandsare fitted to represent consumer judgement


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Positioning:Types

1.Who Am I?

Positioning by Parentage/Corporate Identity

Positioning by Brand Endorsement

2.What Am I?

Category Related Positioning

Benefit Related PositioningPositioning by Usage Occasion & Time

Price-Quality Positioning

3.For Whom Am I?

Demographic Fit

Behavioral Fit

Satisfaction Fit

Psychographic Fit

The Consumer as a Whole Person

4.Why Me?

Positioning by Unique Attribute

Positioning by Competitor


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Positioning Types Explained

1.Who Am I?

Positioning by Parentage/Corporate Identity

Sony, Tata, HLL, Bajaj, BPL, GSK, Ranbaxy, Unichem

Positioning by Brand EndorsementCadbury, Ponds, Charminar, Taxim-O


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2.What Am I?

Category Related

Milkmaid, Maruti Van, Sugar Free, Alprazolam, Ranitidine

Benefit RelatedComplan, Pepsodent, Close-Up, Liril, Cardace, Disogel

Usage Occasion & Time

Prestige Cooker, Vicks, Burnol, Dettol,Listril, Zentel

Price-Quality

Akai, Aiwa, Peter England, Nirma



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3.For Whom Am I?

Demographic FitColgate Kids, Cartoon Network, MTV

Behavioral Fit

Lays, Gelusil, Coke

Satisfaction Fit

Wills, McDowells No.1, Foster Beer

Psychographic Fit

Pepsi, Arrow Shirts, Pulsar

The Consumer as a Whole Person

Saffola Wife, J&J Mom, Surf Housewife



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4. Why Me?

Positioning by Unique Attribute

Dove Soap, Centre Shock, Amron Batteries

Positioning by CompetitorCaptain Cook Salt v/s Tata Salt, Time Pass v/s Pan Masala

Savlon v/s Detol, Avis v/s Hertz, Rin Detergent v/s others



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Over 8000 Companies, Over 6500 Products

Doctor meets on an average 10+ Medical Representatives

exposing 5-8 products

Daily exposure of 50+ to 80+ products

Therefore products are ranked in doctors mind

based on perception

With the coming down of product differentiation/

product uniqueness, finding slot in customers mind

is becoming extremely difficult

Positioning In Pharma


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1. The type of conditions for which the product will be Rxed

2. The type of patient for whom the product will be considered

suitable

3. The products with which the product will compete closely(Direct & Indirect Competition)

Positioning and selection of target market (consumer segment)

are inseparable. A brand must be positioned to appeal to a

target audience and likewise a target audience too will respond

to a brand that occupies the position preferred by it.

Positioning In Pharma: 3 Primary Tasks


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Uniqueness or perceived uniqueness is a products onlyprotection against commodity status. Therefore marketers

should create a perceivable uniqueness i.e., differential

advantage.

A differential advantage should satisfy 3 fundamental criteria;

1. It should differentiate the product from all other others

in the product class

2. It is important or can be made to seem important to thetarget audience

3. It should be sustainable over time against competition

Positioning In Pharma: Sustainable

Differential Advantage


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GriseofulvinGris-OD (American Remedies) v/s Grisovin & Dermonorm

(IDPL & Glaxo) in anti-fungal market: micronization & OD v/s

QID

Ranitidine

Zantac (Glaxo) v/s Losec (Astra): preemptive campaign to push

Losec to Reserve Drug status, and also market development

strategy by expanding usage in non-ulcer dyspepsias,

gastritis

Positioning In Pharma


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What position do we already own in the customers mind?

What position do we want to own?

What is the Gap like?

Which companies must be out performed to establish that

position?

Does the company have sufficient resources to take thatposition?

Does the company have the conviction & perseverance?

Key Questions before Positioning


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1. You cannot appeal to everyoneA product that tries to appeal to everyone winds up appealing

to no one.

Eg. Fefol (SKB) & Livogen (Allenburys) v/s others for

Anaemia in Pregnancy

Betnelan (Glaxo) in bronchial asthma

Ground Rules for Positioning

G f


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2. You cannot beat the brand leaders head-on

pH4 Biological Evans in Antacid Market (Sodium-free)

3. You can reposition your brand

Incidal (Bayer) v/s Avil & Foristal (Hoechst & Ciba Geigy)

in anti-histamine market: Alert & Daytime Anti-histamine

Tylenol v/s Aspirin

Do not mimic another products theme just because ithappens to be a similar product or falls into the same

product category

eg. Ridake (Burroughs Wellcome) hyper-critical campaign

against Aspirinresistance leading to withdrawal of product


G d R l f P iti i


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Repositioning of Septran against Tetracycline

Rs. 40 Mio in 1973 to Rs. 750 Mio in 1992 even when other

Sulpha drugs de-grew

4. Aim to occupy Top-7 Rungs in the customers mind

Unless this happens, there is no chance your brand will

survive.Because in any product category the few top-brands, usually

5-7 brands, account for over 90% of the market share.

If you have a truly new product, tell the customer what the

product is not, rather than what it is. Because, the mind has

no room for what is new and different unless it is related to

the old and matches with prior knowledge.

Eg. Na Free antacid, Pain-free injection, Non-narcotic cough

Syrup for children, Non-staining topical ointment etc.


G d R l f P iti i


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5. Establish Credibility

Claiming your product is different is not going to create a

unique & distinct position. Only when the difference isperceived by the customers, will the product gain acceptance.



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Thank You

Nmims India Pharma Market

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