35286540 dr redddy s lab product analysis in urban market delhi
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A PROJECT REPORT ON
“TO ANALYZ THE LEVEL OF PRESENCE AND PREFRENCE OF DR.REDDY’S PORDUCT IN DERMATOLOGY SEGMENT”
CONDUCTED AT
NARAYANA, NEW DELHI
Submitted in partial fulfillment of PGDM (Post Graduate Diploma in Management) batch (2009-2011) summer training project under the guidance of:
MR.DEEPAK MIGLANI,
Scientific Business Officer, Dr Reddy’s Lab (Organizational guide)
Prof.V.K.SURI,
Faculty Member, ITS (Institutional guide)
FACULTY-ITS
SUBMITTED BY:
ANURAG TIWARI
PGDM (2009-11)
ITS, MOHAN NAGAR CAMPUS
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APPROVAL SHEET
FACULTY OF MANAGEMENT, ITS
This is to certify that the dissertation titled “TO ANALYZ THE LEVEL OF PRESENCE AND
PREFRENCE OF DR.REDDY’S PORDUCT IN DERMATOLOGY SEGMENT” has been prepared by Anurag Tiwari in a 45 days dissertation work done in Dr Reddy’s Laboratory, Delhi for the partial fulfillment for the requirement of the course of Post Graduate Diploma in Management (PGDM) 2009-11.
The data is collected and analyzed by the student under the guidance of Prof. V.K.Suri, Faculty member, ITS, Ghaziabad and is hereby approved as indicating the proficiency of the candidate.
………………………… …………………………
Prof. V.K.Suri
(Guide and faculty member, PGDM) (H.O.D. PGDM)
…………………….... ……………………….
(External Examiner)
(Director)
TABLE OF CONTENTS
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Sl.No. TOPIC PAGE No
1 Acknowledgement 4
2 Preface 5
3 Executive Summary 6
4 Introduction 8
5 Research Methodology 31
6 Organizational and Study Area Profile 32
7 Findings & Analysis 37
8 Suggestions & Recommendations 50
9 Limitation of the Study & Conclusion 52
10 Bibliography 53
11 Annexure 54
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ACKNOWLEDGEMENT
It is a matter of great pleasure and honor to work as a summer trainee in a prestigious
organization like Dr.Reddy’s Lab. The preparation of any report calls for the contribution and
co-ordination from many others besides an individual alone. It is a matter of meticulous efforts
put in by many minds that contribute to the final report formation and this one is no exception.
Several people have made this report possible through their valuable inputs. It gives me pleasure
to express my gratitude to my project guide Mr. Deepak Miglani (Scientific Business Officer)
for his guidance and support right from the beginning of the project till the preparation of final
report. I would also like to express my sincere gratitude to Mr. Himanshu Diwedi (SBO), Prof
V.K.Suri (Faculty Member, PGDM, ITS) and all the Faculty member of ITS for their invaluable
suggestions. I would take the opportunity to thank Prof. Durba Roy who helped me getting into
such a prestigious organization like Dr. Reddy’s Lab to pursue summer training.
I would like to extend my thanks to the respondents who gave the interview and contributed
their precious time for my research work. My study would really have been incomplete without
their cooperation. I would also like to acknowledge my family members and friends who
encouraged me throughout my study. There are a number of people involved in the successful
completion of my dissertation work without the help of whom; I would never have been
successful in my endeavors.
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PREFACE
In I.T.S, PGDM program has been designed keeping in mind the requirement of companies in
the world at large. We, as a student of I.T.S are required to undergo a summer internship in any
industry related to their field of interest after the completion of 2nd semester, where the students
have to prepare a project choosing a particular area of specialization. Practical exposure
essentially forms a crucial base of theoretical learning.
I completed my summer training on the topic “ANALYZ THE LEVEL OF PRESENCE AND
PREFRENCE OF DR.REDDY’S PORDUCT IN DERMATOLOGY SEGMENT” at
DR.REDDY’S LAB, Delhi. This period was marked by good experience of exposure and joy.
This 45 days summer training program provided me with an opportunity to know the
organizational environment, the business practices of a system and the problems involved with
retaining and increasing the market share of the organization. During this period I was able to
enhance my knowledge in the field of marketing. It actually gave me a chance to test the real
water.
The research was carried out in order to find out the market potential of Dermatology segment
(Hair loss, Anti Acne, Sunscreen), and to come to know the availability of new Sunscreen
products launch by Dr.Reddy’s in the light of working environment.
This comprehensive work is definitely a result of my 45 days hard work and I anticipate that it
would be liked by my mentors and also help me immensely in my future learning in the
marketing sector.
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EXECUTIVE SUMMARY
This study was conducted in the urban areas of South Delhi; comprising of Chiraag Delhi, Yusuf
Saray, Lajpatnagar, Saket, Hauz Rani, Malviya Nagar, New Friend Colony, Safdarjung, Hauz
Khas, Mehrauli, Sarai Jullena, Lodhi Road, South Extension, Kotla, Jungpura, Maharani Bagh,
Okhla, Vasant Vihar, Kalkaji, Defence Colony, Greater Kailash, Munarika, Taimor Nagar,
Vasant Enclave, Khanna Market, Khan Market, Mahipalpur, Mehrauli and Ranjpura Road. In
this study 300 Chemists (both Whole sellers and Retailers) were personally interviewed through
a pre coded, pre tested questionnaire.
The study actually aims to find out the sale of different brands of Dermatology products under
various segments like Hair loss, Sunscreen and Anti Acne. It also focuses to find out the
popularity of Dr Reddy’s products and the competition it faces from other brands. The study also
aims to find out the availability of Dr Reddy’s new launched products in the market.
The purpose of taking up such a study was to actually find out the ways the dermatology
products of Dr Reddy’s are marketed and the ways its products can maintain and expand its
presence in the market.
The study also unfolds the preferred brands of customers and doctors in the segments of hair
loss, sunscreen and anti acne prevention which further helps to establish an interesting
correlation between the demands of the various brands under these above mentioned segments
with the respective sale of the products.
It also helps to assess the performance of Dr Reddy’s products under various segments and the
steps that can be adopted to improve its presence as well as sale in the market. In a way, the
research findings can help to strategize the way these products are marketed and streamline the
organizational efforts. In a way, the present study can prove useful for the organizational
members to meticulously adopt ways to maintain the product repute as well as to maximize sales
of its product in the market.
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A major reason for interviewing the chemist was because; they actually act as an interface
between a pharmaceutical company and their customers. They are the best people to tell about
the sales of products and its popularity among the customers. They sometimes form the part of
those untapped, unutilized potentials on which the company hardly banks on. Conducting such
study not only touches this potential but also bridges the gap between the organization and this
interface. In a way such research also helps the organization reach to its lakhs of customers in a
particular region.
A major finding of the study is that under the hair loss segment the market share of Mintop is
very high, which is Dr Reddy’s product. Mintop is in a handsome position but at the same time
Nexret which is the organizational product in the anti acne segment is not holding a major share
of the market.
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CHAPTER-1
INTRODUCTION
The Global Pharmaceutical Industry is at a growing trend. Most of the famous business forecasters have predicted that the demands of drugs would increase this year, thereby giving a positive push to the sales. The global pharmaceutical market is set to grow 4 percent to 6 percent next year, exceeding $825 billion, market intelligence and research company IMS Health (RX) said on Oct 7. This is higher than previous IMS estimates by one percentage point. Through 2013, the researcher predicts worldwide pharmaceutical sales will grow at a 4 percent to 7 percent compound annual growth rate and reach a market value of more than $975 billion in 2010.1There will be some sudden changes in the key market dynamics this year like growth in the US Pharmacy industry and despite the economic downturn the BRIC countries namely Brazil, Russia, India and China are expected to grow in the coming years. The BRIC countries (Brazil, Russia, India and China) are all becoming more industrialized and as the middle class grows, so does demand for quality healthcare. That presents new opportunities for smart companies with resources and infrastructure. These trends are seen across the board, not just in sales and marketing, but also in R&D as companies seek to reduce development costs and speed time to market by going to emerging markets where there is a much larger, untapped pool of newly diagnosed patients available.2Thus the Global Pharmaceutical Industry now looks quite promising.
In a country like India, where there is a shift in the disease pattern. When we look back, the cause of most of the deaths in our country were due to serious epidemic that used to break earlier but now the Indian population has evolved and it faces disorder like stress and obesity that leads to high incidence of acute diseases. With increasing awareness and increased purchasing power, the Indian population has started spending on health care. Driven by increasing affordability, shifting disease pattern and modest healthcare reforms, the total consumer spending on healthcare products and services in the country grew at a compounded annual rate of 14% from 2000 to 2005. The pharmaceuticals industry which accounts for 15 to 20 percent in the total health care spend, grew at a compounded annual rate of 9 percent during this period.3
1. “A slightly healthier forecast for global pharmaceutical sales in 2010” by Melly Alazraki.2. “Strategic trends in Pharmaceutical industry” by Sally Church, PhD3. “Indian Pharma-2015, Unlocking potential of Indian Pharmaceutical Market” by Gautam Kumar, Palash
Mitra and Chandrika Pasricha
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Yet there are a number of questions that remains unanswered like what will be the future potential of Pharmaceutical industry in India and how will it further evolve. However one thing is very true that, the increasing trend that this industry is showing and its major share in the health care industry has indicated the tough competitive environment which will be created among the Indian Pharmacy companies. In this regard several marketing research agencies have conducted research to study the future of Indian Pharmaceutical industry. One of such research was conducted by Mckinsey & Company using different growth models. The analysis shows that the Indian pharmaceutical industry will undergo a major transformation in the next decade. Six trends will influence the growth of Indian pharmaceutical industry namely, doubling of disposal income and the number of middle class house hold, expansion of medical infrastructure, greater penetration of health insurance, rising prevalence of chronic diseases, adoption of product
patents and aggressive market penetration by relatively smaller companies.4
Graph-1: India will be among top 5 markets globally during 2005- 2015
US (196)
China (23
India (14)
France (14)
Japan (14)
U.K (13)
Canada (12)
Brazil (11)
Germany (7)
Source: IMS World Review, analyst projections, Mckinsey India Pharmaceutical Demand Model
4. “Indian Pharma-2015, Unlocking potential of Indian Pharmaceutical Market” by Gautam Kumar, Palash Mitra and Chandrika Pasricha
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The various factors that are held responsible for the immense potential Indian pharmaceutical Industry has are as follows:
The influence of physicians remains very high in India. Growing prevalence of lifestyle disorder will spur the growth of specialty and super-
specialty therapy. These diseases include chronic heart diseases, Diabetes, Asthma, Obesity and Cancer.
Significant parts of Indian population BPL are now moving above the poverty line thereby an increase on basic health care and consumption of mass therapy drug is anticipated.
Generic products will continue to dominate in the Indian Market till we the regulatory issues settled.
The Pharmacy sector has various segments. One of its branches is Dermatology, which deals with the disorders related to skin and hair. The cosmetic sector of our country is gradually converging with it and seeking solutions from the dermatology segment of Pharmaceutical industry.
The present study reveals the market presence of various dermatology products of Dr Reddy’s Lab and its performance in South Delhi. The study is basically an assessment study and a bit exploratory which has emerged out of 45 days research work and is compiled into various chapters. The second chapter deals with the research methodology, third one deals with the organizational and study area profile, the fourth chapter deals with the findings and analysis section, the fifth chapter comprises of the suggestions and recommendations while the sixth chapter includes the conclusion. The study ends with the annexure section.
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CURRENT POSITION OF INDIAN PHARMA INDUSTRY
The value growth of Indian pharma market as per secondary sales for the month of
Mar 2009 was higher at 18.4%, as compared to 13.3% growth in the month of Feb 2009,
according the latest data from ORG IMS, a business intelligence firm
The value growth as per Mar 2009 MAT once again touched the double-digit mark of
10.1%, with marginally higher growth, as compared to 9.8% as per Feb 2009 MAT.
The value growth in the month of Mar 2009 was higher at 16.8%, as compared to 12.5%
in the month of Feb 2009. The value growth as per Mar 2009 MAT (14.1%) was
marginally higher as compared to Feb 2009 MAT (13.6%).
In October 2008, sales in the Rs 35,000-crore drug retail market had dipped by 1.2%, the
first time in many years, due to consumers shifting to cheaper brands and stockiest facing
a financial crunch. However, retail sales have gradually strengthened and in February, it
rose 13.3%.
ORG IMS tracks the sales figures of stockiest and not the actual sales of drugs sold by
over five lakh chemists across the country. During March, drugs worth Rs 2,908 crore
were sold to stockiest.
Despite the brief slowdown in growth in 2008, ORG projects the Indian pharmaceutical
industry to grow at 15-20% over the next few years. The industry has been growing at
14-15% over the last few years
Due to economic prosperity, a lot more customers are entering organized healthcare,
antibiotics and acute therapies are normally the first line of defence, say analysts.
Rising disposable income, improving health infrastructure such as the government’s
incentives to set up 100-bed hospitals in non-metro towns, and the general increase in
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health awareness due to deep penetration of the electronic media are the corner stones of
sales expansion.
Even though export and overseas trade remains key for most of the domestic companies,
many of them derive nearly 40% of their sales from the desi market.
As far as MNCs in India are concerned most of the sales are generated in urban or semi-
urban areas. However, multinationals like GSK, Sanofi-Aventis, MSD India (Merck) etc.,
have started tapping the rural sector too, of late, realizing their growing potential.
Indian pharmaceutical companies are able to provide FDA approved facilities for the
complete range of services for drug development. R&D services, API sourcing, finished
formulation manufacture and clinical trials can all be completed in India, at less cost than
in many developed markets. The leading Indian pharmaceutical companies are also
beginning to increase market presence and market share in the US and EU markets.
The Indian pharmaceutical market is entering a pivotal period of change. Although it is
unlikely to see significant growth before 2011, it expects extensive company activity as
the leading Indian pharmaceutical companies strive towards international
competitiveness.
Global pharmaceutical companies have already begun to take advantage of the changing
regulatory and economic conditions in India. The following five years will see further
merger and acquisition activity, including key overseas acquisitions.
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COMPETETIVE DYNAMICS
The Indian Pharmaceutical Market to 2011.Traditionally has been characterized by a core
competency in generics manufacturing and relatively immature capabilities in R&D. This
outlook has evolved substantially since the 1990s and Indian companies have been
making investments towards expanding drug discovery and development capabilities.
The acceptance of patent laws and the rise of contract manufacturing have led to the
diversification of revenue streams, enabling Indian pharma companies to experience high
market growth.
The Indian Pharmaceutical Market to 2011 provides a detailed analysis of the leading
players and discusses how they are planning to sustain growth over the next five years.
MNCs have a modest representation among the top 20 companies in the Indian
pharmaceutical industry. As the market leader, GSK captured a 6.3% share, illustrating
the highly fragmented nature of the market.
India has an established domestic industry, responsible for around 8% of world
pharmaceutical production. The larger domestic companies are striving to compete in the
global market for both generics and original products. The market is dominated by low
priced, domestically-produced generics and relatively low per capita expenditure on
pharmaceuticals.
Driven by a huge patient base, increasing incomes, improving healthcare infrastructure
and strong penetration of health insurance, the pharmaceutical market is expected to grow
more than double its size in the next five years.
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ADVANTAGE INDIA
Competent workforce: India possesses a skillful work force with high managerial and technical
competence.
Cost-effective chemical synthesis: The track record for development, particularly in the area of
improved cost-beneficial chemical synthesis for various drug molecules is excellent.
Legal & Financial Framework: India is a democratic country with a solid legal framework and
strong financial markets. There is already an established international industry and business
community
Information & Technology: It has a good network of world-class educational institutions and
established strengths in Information Technology.
Globalization: The country is committed to a free market economy and globalization. Above all,
it has a 70 million middle class market, which is constantly growing.
Consolidation: After many years, the international pharmaceutical industry has discovered great
opportunities in India. The process of consolidation, which has become a popular phenomenon in
the world pharmaceutical industry, has started taking place in the Indian pharmaceutical
industry as well. The Indian pharmaceutical industry which is worth US $ 3.1 billion is
growing at the rate of 14 percent per annum.
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GOVERNMENT SUPPORT
On the regulatory front, govt. is also trying to promote the growth of this industry by providing
tax exemption on all services carried out by the contract research and clinical trials industry. In
the product patent regime, many Indian pharma companies have embarked on R&D activities to
achieve a sustainable long term advantage. These are now adopting innovative funding models to
advance their R&D activities. R&D investment today account for 7-9% of sales for leading
pharma companies.
EXPORT PROMOTION CELL
An export promotion cell in this sector has been incorporated with the objectives of
Boosting pharmaceuticals exports.
Function as a nodal centre.
Promotional activities aiming at accelerating pharma export.
Suggestion for modification in the EXIM policy.
Seminars/workshops on standards, quality control requirements etc.
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PHARMA EXPORT PROMOTION COUNCIL (PHARMEXCIL)
The Pharma Export Promotion Council (Pharmexicl) has been constituted with the objective of:
Facilitation of export of Drugs, pharmaceuticals, Bio-technology products, Herbal
medicines, Diagnostics.
Exports thrusts to various products through workshops, conferences, seminars and
delegates visits.
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SWOT ANALYSIS OF INDIAN PHARMACEUTICAL INDUSTRY
STRENGTHS
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STRENGTHS
Strong marketing & distribution network
Access to pool of highly trained scientist
Well established R&D and
infrastructureDeveloped industry with strong
manufacturing base
Cost competitiveness
Competency in chemistry and process development
WEAKNESS
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Weakness
Low share in world pharmaceutical production.
Low level of biotechnology in India
Inadequate regulatory standards
Low medical & healthcare expenditure.
Lack of linkage between industry and academia
Production of spurious and low quality drugs
OPPURTUNITIES
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OPPURTUNITIES
Significant export potential
Health insurance boom
Growing income Clinical research
India as global outsourcing hub
Contract research
THREATS
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THREATSDrug price control
Threat from low cost drug producing
countries like China.
Strict registration procedure.
High cost of discovering new
products
MESSAGE FROM THE CHAIRMAN
Dr. Anji Reddy (Chairman of Dr. Reddy’s Lab)
The world of healthcare by nature part and parcel of sustainability. Fifteen years ago Dr.Reddy’s
lab was promoting actions in supports of sustainability, with initiatives for employee protection,
against counterfeit drugs and in favor of access to medicines.
Today it may seem commonplace to emphasize the importance of ensuring our products for the
safety for the environment, yet it is a everyday reality for the men and women of Dr.Reddy’s
lab.
Dr. Anji Reddy (Chairman of Dr. Reddy’s Lab): The fact that 80% of the world’s
population still has little or no access to medicines led us to develop a long term strategy. For
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several years, our access to medicines divisions has been carrying out and co-coordinating
initiatives focused on several areas like anti-allergic, skin diseases, anti infective, neurology,
nephrology, cardio-vascular, central nervous system, dental, orthopedic, oncology, respiratory,
Surgery, mental health etc. Thanks to our efforts in R&D and production. We are helping to
provide medicines at prices aligned with local needs. Dr. Reddy’s Foundation was recently
conferred the “Corporate Citizen Award” under ‘The Economic Times’ Corporate Excellence
Awards 2007-2008 by a jury of global business leaders What is significant is that the jury chose
Dr. Reddy’s for this honor over other worthy nominees not only because of our focus on CSR,
but also because our core business philosophy contributes to society at large. Over the years, I have
become more convinced than ever that the corporate sector, with its entrepreneurial and
institution building skills, can play a significant role in developing and scaling up innovative,
workable models that yield measurable results both within and outside of the organization. There
are opportunities for good all around us. The question we must ask ourselves is whether we will
stand on the sidelines or seize the opportunity to have an enduring impact on our world through
our business and beyond it. As we have done in our business, we have similarly harnessed the
power of collaboration in executing social initiatives to derive the maximum impact from each
one. For example, the safe drinking water project that Dr. Reddy’s anchors with the non-profit
organization Nandi, is another example of a sustainable model which is being successfully
replicated in numerous villages covering a population of more than 2 million in the Indian states
of Andhra Pradesh and Punjab. This project has won champions in both the private and public
sectors, giving us good reason to believe that one day we will be able to ensure that all Indians
have access to safe drinking water.
In order for sustainable development to reality, it must be a approach that is understood, thought
out and integrated by all concerned.
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MESSAGE FROM CEO
G.V. PRASAD/ CEO OF DR.REDDY’S LAB
Every day, our Company’s products help to alleviate pain and suffering caused by disease,
directly touching the lives of people around the world. This is not something every company can
say. We at Dr. Reddy’s are inspired daily by the fact that the core purpose of our business
providing affordable and innovative medicines for healthier lives is beneficial to society. We are
uniquely fortunate to be in a position where we can play a significant role in providing
sustainable solutions to the serious medical problems facing humanity.
We evolved from a small, $1 million India-centric company to a $1 billion global pharmaceutical
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player in the relatively short period of 25 years because we paid close attention to the needs and
expectations of our stakeholders. We were often far ahead of the pharmaceutical industry in
India in implementing good practices in areas such as Quality Assurance, Product Responsibility
and R&D and in introducing progressive Safety, Health and Environment management policies
and people policies. In many instances, we were pioneers in the Indian pharmaceutical industry,
with a number of “firsts” to our credit _ from becoming the first to out license an original
molecule to an innovator company to being the first company from India to enter a Global Phase
III trial for our NCE.
Challenges and Opportunities
o Providing Affordable and Innovative Medicines
o Financial Performance
o The Environmental Imperative
o Developing the Leaders of Tomorrow
Every journey if at all worth undertaking, is fraught with twists and turns, surprises and
enormous rewards. Our journey of sustainability has had its share of all of these, and the lessons
we have learned on the way have made us the respected global pharmaceutical player that we are
today. We are proud of the trust and confidence we have inspired in our various stakeholders. It
is this trust that drives our aspirations ever higher and gives fresh impetus and meaning to our
Unwavering pursuit of sustainability.
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MANAGEMENT OF DR.REDDY’S LAB
Mr. Satish Reddy MD & COO Dr. Bruce LA Carter
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Ravi Bhoothalingam Kalpana Morparia
HISTORY OF DR.REDDY’S LAB
Dr. Reddy’s Laboratories (Dr. Reddy’s), incorporated in 1984
Founder- Dr. K. Anji Reddy
Headquarter- Hyderabad, India
Dr. Reddy’s Laboratories Limited (Dr. Reddy’s) was established in 1984, manufacturing
ingredients for medicines. The Company was incorporated under the laws of Indian Companies
Act, 1956 as a Public Limited Liability Company.
At a time when India was largely dependent on imports, Company began operations with a
single drug facility near Hyderabad, India. In 1986, the first consignment of Methyldopa was
shipped to West Germany, launching the Company’s foray into global markets. Subsequently,
Dr. Reddy’s moved up the value chain, by entering the Finished Dosage business and launching
its drug discovery program.
Over the years, related diversification and acquisitions transformed Dr. Reddy’s into a leading
pharmaceutical company from India. Company’s stated purpose is to provide affordable and
Innovative medicines for healthier lives.
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Dr. Reddy’s today is divided into three core businesses of Pharmaceutical Services & Active
Ingredients (PSAI), Generics and Innovative Products. Businesses of company have a dual
impact.
Through PSAI and Generics business,they strive to make medicines more affordable globally
and through their focus on Innovative products they address unmet or poorly met medical needs.
COMPANY
It is India’s second-largest pharmaceutical company. It is the first Asian company other than
Japan to be listed in New York Stock exchange. It produces and sells Active Pharmaceutical
Ingredients (API), Finished Dosages and Biologics. It manufactures ulcer medicines, antibiotics,
pain relievers, anti depressants and cardiovascular drugs. The company carries out research and
development (R&D) in diabetes, cancer, cardiovascular diseases, and inflammation and bacterial
infections. It also has a significant presence in the biotech sector.
PEOPLE
10000 + Employees
2000 + At International Locations
3300 + Marketing & Sales force
3300 + manufacturing staff
1700 + Research & Scientific personnel
DRUGS & THERAPEUTIC AREAS
Focus on mainly;
Cardiovascular diseases Oncology Central nervous system Metabolic disorders Dermatology
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Anti-invectives Inflammation Respiratory Nephrology Neurology Surgery
Metabolic
AFFILATIONS
Drugs Technical Advisory Board (DTAB)
Indian Institute of Public Health
The Energy Research Institute (TERI) – Business Council for Sustainable
Development (BCSD) in India – Indian regional network partner of WBCSD
Confederation of Indian Industry (CII)
Indian Pharmaceutical Alliance (IPA)
The Conference Board
Sustain Ability, UK
World Wide Fund, India
Acumen Fund
Young Presidents Organizations forum..
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GLOBAL PRESENCE
Global commercialization infrastructure with focus on US, Europe, India, and Russia.
Manufacturing locations in India, UK, US, China and Mexico
Research and development locations in India and the US
Wholly-owned subsidiaries in the US, UK, Russia, Germany, Brazil, New Zealand,
. Turkey and Mexico.
Joint Ventures in China, South Africa and Australia
Representative Offices in 16 countries.
Third party distribution setups in 23 countries
79% of the company's revenues in FY08 came from geographies outside India.
VALUES
Focus on strong, sustainable and profitable growth, and company values –Solidarity,
Performance, Audacity, Respect, Courage and Creativity-are at the core of success: living those
values on a daily basis is the key to future.
COMPANY LOGO
Logo consists of a person standing with both of its arms open. There are three terms written
below the logo- Life, Research and Hope. These terms explains the enthusiasm, innovation and
positive thoughts.
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SWOT ANALYSIS OF DR.REDDY’S LAB
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CHAPTER-2
RESEARCH AND METHODOLOGY
Rationale of the study:-
The major purpose of taking up such a study was to analyze the presence of the dermatology
products of Dr Reddy’s Lab in the South Delhi market and to asses the market share of these
products by interviewing 300 chemists of the area. This not only helped to get a clear picture of
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WEAKNESSHigh amount of revenues from overseas Lack of resources similar to US and Europe based competitors to develop a drug to marketing stage.Smallest portion of revenues from generics at around 20%.Lack of patent legislation in India harms sales of its products
OPPURTINITIESTake a molecule from its pipeline all the way to the market place cost-effectively marketBuy back of the integrated drug development company from ICICI Ventures and CitigroupDomestic Generic drugs marketIn another 4-6 years, many product patents obtained after the 2004 legislation will go off providing an opportunity to the company increase its domestic footprint in Generics
THREATSNeeds to gain FDA approval for all sources and productsProducts have to pass strict FDA trials before going to market, which can be costly and time consumingThis may delay the company entry to particular markets which affects revenueCompetition from US and European CompaniesReddy’s lost the case against Pfizer for the use of generic form of Norvasc drug.
S W O T
the market share of these products but also would help in market creation for its new products.
The study helped to dig out the tough competition that Dr Reddy’s Derma products face in actual
market conditions thereby giving a view of the prevailing market trends in South Delhi.
Objectives of the study:-
1. To study the sales of Mintop in hair loss segment and Nexret in anti-acne segment in
South Delhi and to asses its market share.
2. To study the most preferred brands in the segments of hair loss, anti acne and sunscreen.
3. To study the sunscreen segment closely and examine the present availability of newly
launched sunscreen products of Dr Reddy’s namely Clearz-ultra and Shadowz.
4. Mapping the potential of the market in dermatology segment.
The study was conducted from 2nd May 2010 to 20th June 2010. The study is basically an
assessment study as well as a bit of exploratory. The data is collected through a pretested
questionnaire by personally interviewing 300 Chemists of South Delhi. The data was collected
both by Primary as well as secondary sources. The primary data was collected from market areas
of South Delhi. It helped to get most vital information for market analysis of derma products in
the segments of hair loss, Anti acne and to asses the availability of new launched products of the
organization.
The sampling is primarily purposive convenient sampling. During the interview the attitude of
the Chemists towards Dr Reddy’s products were also closely examined.
Sales data of Hair loss, Anti Acne and sunscreen of Dr.Reddy’s Lab and its competitor products
are collected on the basis of TOTAL SALES PER MONTH. Collected data has been analyzed
on Microsoft Excel and the key findings are mentioned in the further part of the report.
CHAPTER-3
ORGANIZATIONAL AND STUDY AREA PROFILE
This research study was conducted at Dr Reddy’s Lab located in Narayana, New Delhi. Dr.
Reddy’s Laboratories Limited (Dr. Reddy’s) was established in 1984, manufacturing ingredients
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for medicines. The founder member of the Organization is Dr K.Anji Reddy. It has it’s
Headquarter at Hyderabad, India. The Company was incorporated under the laws of Indian
Companies Act, 1956 as a Public Limited Liability Company.
At a time when India was largely dependent on imports, Company began operations with a single
drug facility near Hyderabad, India. In 1986, the first consignment of Methyldopa was shipped to
West Germany, launching the Company’s foray into global markets. Subsequently, Dr. Reddy’s
moved up the value chain, by entering the Finished Dosage business and launching its drug
discovery program. Over the years, related diversification and acquisitions transformed Dr.
Reddy’s into a leading pharmaceutical company from India. Dr. Reddy’s today is divided into
three core businesses of Pharmaceutical Services & Active Ingredients (PSAI), Generics and
Innovative Products. Businesses of company have a dual impact. Through PSAI and Generics
business, they strive to make medicines more affordable globally and through their focus on
Innovative products they address unmet or poorly met medical needs.
It is India’s second-largest pharmaceutical company. It is the first Asian company other than
Japan to be listed in New York Stock exchange. It produces and sells Active Pharmaceutical
Ingredients (API), Finished Dosages and Biologics. It manufactures ulcer medicines, antibiotics,
pain relievers, anti depressants and cardiovascular drugs. The company carries out research and
development (R&D) in diabetes, cancer, cardiovascular diseases, and inflammation and bacterial
infections. It also has a significant presence in the biotech sector.
The Organization drugs and therapeutic areas focus mainly on Cardio-vascular diseases,
Oncology, Central nervous system, Metabolic disorders, Dermatology, Anti-invectives,
Inflammation, Respiratory, Nephrology, Neurology, Surgery and Metabolic
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The ethics of the organization is to focus on strong, sustainable and profitable growth, and
company values –Solidarity, Performance, Audacity, Respect, Courage and Creativity-are at
the core of success: living those values on a daily basis is the key to future.
Dr. Reddy’s commitments to the 3R’s principle
REDUCTION
Optimize research strategies in order to eliminate unnecessary experiments and ensure
that approaches are scientifically sound.
Obtain as information as possible from each experiment.
Animals are only where there is the firm expectation that the result will contribute to
protection and improvement of human health and safety.
Choose appropriate animals: 95% of the animals used by the group are rodents.
Each protocol is reviewed by an internal Ethics Committee.
Reduce where possible the use of Non-Human Primates.
As required by national law, all animal use is recorded and reported to competent
authorities. For each study or project the no. of animals is reviewed by ethics committee
and the least no. of animals is used to obtain the scientific or regulatory objective.
Biostaticians review all experimental protocols. These data are provided only to relevant
national authorities.
REPLACEMENT
Animals are only used when valid alternative methods do not exist. The justification of
any animal use is reviewed by an internal ethics committee.
Systematic use and the contribution to the development of in vitro systems: Tissue cell
cultures, High throughput screening (HTS) in vitro dosing.
Replacement of higher evolutionary with lower order species.
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REFINEMENT
Each experimental protocol must be approved by an Ethics Committee that evaluates the
scientific justification for the study, the appropriateness of the techniques employed and/or the
animals used as well as taking into account the pain the animal may experience. Dr. Reddy’s lab
places particular attention on ensuring that pain is define and monitored for each case.
The ethics committee is also in charge of defining and accessing the study’s endpoint so
that it is acceptable as humane as possible. In addition, all animals are under the care of
veterinarian.
COMPANY LOGO
Logo consists of a person standing with both of its arms open. There are three terms written
below the logo- Life, Research and Hope. These terms explains the enthusiasm, innovation and
positive thoughts.
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The Affiliations of the Organization includes
Drugs Technical Advisory Board (DTAB)
Indian Institute of Public Health
The Energy Research Institute (TERI) – Business Council for Sustainable
Development (BCSD) in India – Indian regional network partner of WBCSD
Confederation of Indian Industry (CII)
Indian Pharmaceutical Alliance (IPA)
The Conference Board
Sustain Ability, UK
World Wide Fund, India
Acumen Fund
Young Presidents Organizations forum.
It has global presence through Global commercialization infrastructure with focus on US,
Europe, India, and Russia, manufacturing locations in India, UK, US, China and Mexico,
research and development locations in India and the US, wholly-owned subsidiaries in the US,
UK, Russia, Germany, Brazil, New Zealand, Turkey and Mexico, joint ventures in China, South
Africa and Australia, representative Offices in 16 countries, third party distribution setups in 23
countries and 79% of the company’s revenues in FY08 came from geographies outside India.
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STUDY AREA PROFILE:-
The Study was conducted in Delhi, which is the Capital of India and the third largest city in
India,
lies at
an
altitude
of
between
700 and
1,000 feet (213 and 305 meters) and covers an area of 1,485 square kilometers. Situated on the
Yamuna River (a tributary of the Ganges River) Delhi is bordered on the east by the state of
Uttar Pradesh and on the north, west, and south by Haryana.
South Delhi, where the study is conducted include areas like Chiraag Delhi, Yusuf Saray,
Lajpatnagar, Saket, Hauz Rani, Malviya Nagar, New Friend Colony, Safdarjung, Hauz Khas,
Mehrauli, Sarai Jullena, Lodhi Road, South Extension-2, Kotla, Jungpura, Maharani Bagh,
Okhla, Vasant Vihar, Kalkaji, Defence Colony, Greater Kailash, Munarika, Taimor Nagar,
Vasant Enclave, Khanna Market, Khan Market, Mahipalpur and Ranjpura Road.
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State Capital Delhi
Population (‘000s in 2001) 1,38,50,507
Area ( sq. km) 1483
Males Females
76, 0723462, 43273
Literacy rate (2001) 81.82%
Principal Languages Hindi & English
Chapter 4
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Finding and Analysis
Analysis of Anti acne products in Dermatology Segment
0--5 5--10 10--15 15--20 20--250
20
40
60
80
100
120
NexretRatino ARatino ACSupertret
Sales figure of Nexret in comparison to other brands
The data was gathered by interviewing the Chemists.
The Red line represents that of sales of Nexret that are dropping down.
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This depicts several other things like less popularity as well as less
demand of Nexret.
It may be because stronger marketing skills have to be required to
increase its sales force effectiveness.
Nexret is not the most preferred product for Anti acne in the market.
On examining minutely, it is observed that though Nexret sales
performance is good where 90 chemists report that they sell around 0-5
bottles of Nexret in a month, however in the next category comprising of
sale of 5-10 bottles.
Ratino captures the market with higher sales.
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Approximate sales of Anti Acne Product
Nexret Ratino-A Ratino-AC Supertret0
200400600800
10001200140016001800
430
1763
893
270
The market covered by Nexret is approximately 11.15% of whole
market.
It is approximately 430 out of 3856.
Ratino A & Ratino AC are the main competitor of Dr. reddy in Anti
Acne segment.
Ratino A is covered almost 50% of Anti Acne market.
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48.2551.74
Execare
Available
Not Available
Availability of Dr Reddy’s new Anti-acne product (Exe-care)
To diversify his product Dr. Reddy’s Lab Introduce Execare.
The availability of Execare in South Delhi market is approximately
48.25%.
Compony has to give some value added service to promote Execare.
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Mintop Hair for you
Tugain Coverit Minoxy0
10
20
30
40
50
60
70
80
6257
7164
7777
20
28
16
2626
13
5 4 7
18
1 1 15
0--55--1010--1515--2020--25
Analysis of Hair loss Product in Dermatology Segment
Mintop is the most preferred brand for preventing hair loss among the chemists of South Delhi
The Market Share of Mintop is very high in comparison to other competitors in hair loss segment.
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Mintop which is the organizational product holds a handsome position in the market in comparison to other hair loss preventing products.
MIntop Capture more then 65%% of total Market.
One of the interesting finding was that during winter the sale of Tugain
increases invariably, however there is no specific reason found out for
such a finding.
Except seeling of 0-5 bottle per month MIntop leads to all other segment .
Huge demand of Mintop is there.
MIntop not only prescribe by the doctors, it is in use also because of Suggestions, Recommendation by friend.
Mintop 10% have leading market.
The main competitors are coverit and Minoxy.
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Mintop Hair For you
Tugain Coverit Minoxy0
200
400
600
800
1000
1200
1400
1600 1485
472.5 467.5347.5
475
Approx sales
Approx sales
The graph represents the monthly sales of Maintop, quantity wise in
comparison to other hair loss products available in South Delhi
The approximately sale of Mintop is 1485 out of 3248, Which is 45.5%
of total market.
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According to a survey Mintop has covered more over 65% of total
market.
Mintop is leading brand in there own
Segment.
Mintop Prescription not only
Comes from the doctor’s,
Coverit and Minoxy are also
trying to make their own
market in hair loss segment .
They covered approximatly
30% of over all market. AREA COVERAGE BY MINTOP
Nexret is Dr. Reddy’s lab
Product which covered
Approximately 10% 0f over all
market.
The main competitors are
Ratino A & Ratino Ac.
90% area covered by other big
Players in this Anti Acne market.
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65.95
34.04 MintopOther products
9.92
90.07
Nexret
Other products
0--5 5--10 10--15 15--20 20--250
10
20
30
40
50
60
70
80
90
71
90
18
72
Suncross
Sungrace
Photoban
Graph depicting monthly sales of Sun screen products in South Delhi
The Graph above not only shows the sale volume of the various sunscreen
brands in the market but also depict that these brands have not only
penetrated in the market but also established themselves especially Sun cross
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In such a competitive market scenario the newly launched sunscreen of Dr
Reddy’s have to be launched with best marketing advocacy to not only
capture sales volume but also expand their presence in the market.
The graph below more lucidly represents the sales of Suncross, Sungrace and
Photo ban
Suncross Sungrace Photoban0
200
400
600
800
1000
1200
14001245
385 355
Approx sales
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Graph representing the sunscreen product having maximum sales also the
most preferred brand by the Chemists
It is well known that the sunscreen segment is a potential as well as crucial segment
in the dermatology section for any pharmaceutical company because it is not that
people use medicated sunscreen only when they are prescribed by a clinician but
sometimes also use because of its effectiveness or when they come any of the
promotional activities like advertisement.
To cater the sunscreen market Dr.Reddys Lab launched product named Shadowz.
To capture this market company need to provide some value added service to the
customer.
The big player of this segment like Sunscreen covered approximately 60% of whole
market.
Sunscreen sales in a month are very high with 1245 out of 1985.
The availability of Shadowz in the market is very less.
It’s Approximately 19% in South Delhi market.
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18.40
81.59
Shadowz
Avaiable
Not Available
Availability of Dr Reddy’s newly launched products in the sunscreen sectio
RECOMMENDATIONS
Some Research Recommendations for the Organization:-
1. Strong marketing advocacy of its products among Doctors and maintaining good
relations with Chemists by adopting measures to increase their revenue from the products
so that they provide an initial push to the products.
2. More focus on promotional strategies especially for the newly launched products like
advertisement on TV, Radio, print media or mobile advertisement or even by developing
CDs or other tools like proper inserts with the product to enumerate its benefits.
3. Concentrated effort has to be made to focus on the entire distribution channel all over
Delhi.
4. A good and effective team of Medical Representative should be involved to advocate the
products among the Doctors.
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5. Product should be promoted by the help of film shows from which doctors are influenced
significantly.
6. Creating the brand awareness through corporate social responsibility among the consumers.
7. Developing customer relationship management efficiently through.
Analyzing customer revenue & cost data to identify current & future high value customer.
Targeting direct marketing efforts. Creating new distribution channel. Managing logistics & the supply chain more efficiently. Deploying knowledge management system. Tracking customer defection & retention levels. Tracking customer service satisfaction levels by conducting surveys and research
or taking feedback from time to time. Employing proper monitoring and evaluation tools to track customer satisfaction.
At the broader level or at the planning level the company should shift focus from market
share capture to market creation. That means the untapped potential should be focused
more. The organization should also try to adopt new and differentiated business models
because with the ongoing changes in the market opportunities and competitive scenario a
homogeneous business model cannot be replicated everywhere. The Company should also
make efforts to strengthen sales and marketing capabilities like new product development,
proper marketing management and increasing sales force effectiveness.
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CHAPTER-6
LIMITATIONS & CONCLUSION
People lacked information regarding the existence of the some players in the
dermatology sector so this has caused non-availability of information in some cases.
Some people were hesitant to disclose the information.
Most of the people show their rigid mindset.
Some chemists were non-cooperative, which led to great problem for me to collect
data.
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Some chemists were very busy due to which they did not entertained me, this led to
wastage of time.
Some chemists were not interested to provide their sales data.
The Indian Pharmacy industry has immense potential. If the pharmacy companies put
concentrated efforts they can maximize their efforts. The Dermatology sector has itself the power
to transform and grow in future and it can be a sector in which the Organization can bank upon.
BIBLIOGRAPHY
BOOKS
Marketing management by Philip Kilter.
Marketing research by David.J.luck and Ronald S. Rubin.
Strategic marketing management by Wilson Gillian.
MAGZINES & NEWSPAPERS
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Business today
Economic times
WEB SITES
www.dr.reddys.com
www.google.com
www.dbresearch.com
www.pharmabiz.com
www.businessmoniter.com
www.business20.com
ANNEXURE
Chemist Name -
Contact person -
Contact No. -
Area –
Segments Brands Quantity sold in a weak
Doctor’s Name
Hair loss Mintop ,M. forte ,M. 10
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Hair 4 you
Tuegain{foam, gel}
Coverit
Minoxy
Sunscreen Suncross
Sungrace
Photoban
Others
Anti-acne Nexret {0.04% & 0.1%}
Ratino-A
Ratino-AC
Supatret {0.04% & 0.1%}
New Products
Product Availability
Execare
Shadowz
Clearz Ultra
Any Comments:--
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