pharmacutical industry
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Reasearch Findings And Conclusions …
Executive summary
The Indian pharmaceutical industry has come a long way from
its beginnings in 1970 to become a prominent maker of healthcare
products meeting almost 95% of the country’s healthcare needs. In
terms of technology, quality and range of medicines manufactured
India ranks very high in the world. The Indian pharmaceutical
industry with over 20,000 registered units rank 4th in volume terms
& 13th in value terms globally.
Alembic Limited, Baroda is also well established and competent
part of this dynamic industry. Alembic established in 1907,is ISO-
9002 & ISO-14001 company with manufacturing practice and
facilities that conform the WHO/GMP guidelines.
A distribution system is a key external resource to any
company. A distribution channel performs the work of moving goods
from producers to consumers. Pharma company generally follows 2-
level consumer marketing channels, which includes wholesaler and
retailer. Sales fore is the important link in the company’s channel to
customers. In pharma company the Medical Representative and
stockiest are the key personnel in the channel. They require
motivation to perform their functions more fruitfully.
Respiratory products are divided into the cough &cold
markets, which constitute the largest segment of the pharma
industry. Alembic is amongst the top 3 companies in terms of Rx
generated for respiratory care. The leadings brands contributing to
this are Zeet, BroZeet and Wikoryl.
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Reasearch Findings And Conclusions …
The products are prescribed by almost all specialties
in varying proportions. In order to capitalize in this category like
Zeet expectorant & Wikoryl tablets deals have been regularly given.
So, company put in
the action trade offer in the key season months to encourage
chemist and also there is incentive for fieldforce.
The project is Trade offer analysis i.e. Summer Surprise
Scheme analysis. The scheme is for Zeet expectorant and Wikoryl
tablets. Under this scheme chemist will receive gifts by buying
certain value of Zeet expectorant and Wikoryl tablets.
The project is aimed at evaluating the success of the scheme
and to analyze and test the validity of hypothesis. This is scheme is
for two months i.e. May and June 2005.But because of time limit the
project include the analysis of data of month May only. The research
methodology is primarily an analytical. It is relied upon the
secondary data, which was received from the MRs.
The research findings of trade offer are evaluated with the help
of tables, cross tables, graphics. Region wise variations are also
analyzed.
Numbers of gifts entitled by chemists are as follows,
Traveling Bag- 472
Ajanta Clocks-104
Cello Keg-110
This numbers suggest that chemist have actively participated
in the scheme.
Out of total 504 medical representatives all over India 99 have
participated in the trade offer-summer surprise scheme during
month May. The hypothesis is that 15% of MR i.e. 75 will
participate in scheme. The per capita value is 0.20 lacs and
total value for Zeet and Wikoryl sold during the scheme is 19.4
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Reasearch Findings And Conclusions …
lacs. These values suggest that results meet with
hypothesis.
There is no any linking between fieldforce participation and
value generated.
Opportunity gap is large in almost each region except in Puna
having least opportunity gap.
In some region, Total value generated is majority due to one
product.
From findings it is concluded that overall the trade offer is
successful and hypothesis proven to be true.
Recommendations made are, some comparative studies
should be done and marketing division should carry out extra
effort to encourage field force.
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Reasearch Findings And Conclusions …
INTRODUCTION
Most producers do not sell their goods directly to the final
users between them stands a set of intermediaries performing a
variety of functions. These intermediaries constitute a distribution
channel. Some intermediaries such as wholesalers and retailers buy
and resell the merchandise. Intermediaries smooth the flow of goods
and services.
Pharma industry generally follows the 2-level consumer
marketing channels.
Pharma Company
Carrying & forwarding agent
Stockist
Retailers
Consumer
(2-level consumer marketing channel)
A company needs to view its intermediaries in the same way it
views its and users. The company should provide training progress,
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Reasearch Findings And Conclusions …
market research progress & other capability building programs such
as Trade offers, reward to improve intermediate Performance.
Alembic launched the Trade offer- summer surprise scheme.
For intermediaries in its distribution channels in order to encourage
the chemist to stock more & to increase the sale of product Zeet
expectorant & Wikoryl tablets.
The project is about the analysis of the Trade offer called
summer surprise scheme in terms of participation of fields force &
sale of the products.
SUMMER SURPRISE SCHEME :
Alembic has launched the summer surprise scheme for
chemist. This summer surprise scheme includes two products.
1.Zeet expectorant
2.Wikoryl Tablets.
Dispensing Doctors can also be included under this scheme.
Upon delivery of specified amount of Zeet & Wikoryl, chemist
can claim for different gifts as follows.
Rs.2000 /-worth =Get a Travel Bag Free
Rs.3000 /-worth =Get an Ajanta Clock Free
Rs.5000 /-worth =Get an Insulated Cello Cool Keg [5 liter] Free
This scheme also beneficial to medical representatives. MR will
gain exciting incentive under this scheme.
ROB value (Rs.)
from
To Incentiv
e
45000 65000 1000
65001 85000 1500
85001 2500
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Reasearch Findings And Conclusions …
Process Flow Chart:
6
Confirm receipt of gift.
MR
Confirm Stockist delivery
Book order from chemist
Fill in the summer surprise form.
Confirm the gifts
Collect Stockist Invoice Copy
Submit
it to
AM
Send gift to MR
Calculate the incentives.
Process it AM send it to Alembic Mkg. division
Acknowledgement card
Make a set of Summer surprise form Stockist invoice copy
Make a set of Summary of all the
chemist PTR valueii. Stockist invoice.
Collect proof of delivery
End
Disburse Incentive
Send to Alembic division
Reasearch Findings And Conclusions …
HYPOTHESIS:
5% of MR will take part in scheme.
The per capita per MR will be 0.45 lacs for two months i.e.
May, June.
Total value for Zeet & Wikoryl sold during the scheme will
be around 17 lacs per months
OBJECTIVE:
To analyze & test the validity of Hypothesis.
Analyze regional variations of the scheme through
-Skew of Zeet/Wikoryl.
-Participation of field force.
-Per capita.
SCOPE:
The Zeet-Wikoryl chemist summer surprise scheme is only
for two months i.e. May and June.
All the formats reaching Baroda before 7th July 2005 will be
included in analysis.
LIMITATIONS OF PROJECT:
Secondary comparative data is not available. so,
incremental effect cannot be Compared.
Time delays in sending the chemist card by fieldforce.
The secondary data collection of the project has to be
closed
due to time limitation
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Reasearch Findings And Conclusions …
Alembic limited has mainly three divisions
Alembic Mega care Specia.
o Macrolides
o Cough & cold
o NSAIDS
o Antibiotics
o GIT drugs.
COUGH & COLD MARKET:
Respiratory product are divided into cough & cold markets
which constitute the largest segment of the pharma industry
Cough market (Rs.680 Crore)
Antitussive Expectorants
Bronchodilators
(40%) (20%) (15%)
The cold market is dominated by the solid forms (65%) though
both solid & liquid dosage forms are growing at 7%.
The product can be prescribed by almost all specialties.
However the Key specialties are Peds, ENT, CP, GP& surgeons.
All types of product are prescribed by these specialties in the
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Reasearch Findings And Conclusions …
varying proportions. For Alembic, the old Rx brand in
this category are Zeet expectorant & Wikoryl Tablets
Alembic division is dealings in different brand as follows.
Brand group value (lacs)
1. Althrocin 5977
2. Roxid 4622
3. Zeet 1099
4. Wikoryl 607
5. Sharkoferrol 661
6. Nimegesic 749
7. Rekool 510
INTRODUCTION TO PRODUCTS:
ZEET EXPECTORANT:
Launched in >35 years
Zeet expectorant is a popular remedy in the management of
Productive cough.
Expectoration: Process of expelling sputum, & other foreign
bodies through explosive airflow.
Punch line : Pushes cough up & away.
Composition :
o Each 5 ml contains,
o Bromhexine Hcl IP 4mg
o Amm. Chloride IP 100mg
o Guaiphenesin IP 50mg
o Diphenhydramine Hcl IP 8mg[Antihistamine]
Packing: 100 ml Bottle
Price: Rs 33.89
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Reasearch Findings And Conclusions …
MOA: Expectorants act by,
Breaking mucus into smaller molecular weight chains
Dilute sputum viscosity.
Helps upwards movements in RT
Increased respiratory muscle strength
Zeet has three expectorants:
A. Bromhexine - breaks disulphide bones
B. Ammonium Chloride – dilutes sputum
C. Guaiphenesin- expels cough by reflex initiation
About the Constituents:
Bromhexine Mycolytic expectorant
Reduces viscosity so that mucus/sputum
can flow easily.
Amm.ChlorideSaline expectorant
Increases bronchial secretion to reduce
viscosity of sputum
GuaiphenesinExpectorants
Increases fluid flow in RT
Reduces viscosity of secretion
Facilitates the removal of secretion by cough
reflexes & cilliary action.
Diphenhydramine Hcl
Antihistamine
Time tested anti allergic
Relieves irritation & inflammation.
With respect to other anti histamines, it is
more potent & has minimal sedation.
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Reasearch Findings And Conclusions …
WIKORYL TABLETS:
Launched in > 35 years
Wikoryl is a complete formula that provides relief from all
symptoms of cold like fever, body ache, congestion,
rhinorrhoea, sneezing etc. it is an ideal preparation as an
adjuvant in URI or viral fever.
Punch line : For multisymptom cold relief.
Composition:
Each tablet contains,
Paracetamol 500mg
Phenylpropanolamine Hcl 25mg
Chlorpheniramine Maleate 2mg
Packing : 10 Tablets
Price : Rs. 14.91
About the constituents:
Paracetamol: It is a centrally acting analgesic cum
antipyretic it rapidly relieves the Pains & also
the temperature.
Phenylpropanolamine:
It is one of the most widely accepted nasal
decongestants. It acts on alpha as well as
beta-receptors & exerts its effects by
stimulating them. Its dual action makes it a
patent long acting nasal decongestant with
minimal side effects.
Chlorpheniramine Maleate:
It is one of the most potent antihistamines. It
has minimal sedative & anticholinegic effects.
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Reasearch Findings And Conclusions …
Today CPM is one of the most accepted
antihistamines in common cold preparation.
Highlights of Wikoryl:
The following salient features of Wikoryl are worth nothing.
1.Wikoryl removes pains.
2.Wikoryl reduces nasal discharge.
3.Wikoryl relives congestion.
4.Wikoryl prevents sneezing.
5.Wikoryl opens up the air passage
6.Wikoryl brings back the mood.
7.Wikoryl prevents otitis media.
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Reasearch Findings And Conclusions …
RESEARCH METHODOLOGY
RESEARCH DESIGN:
Type of research: Analytical
Data collection: All the secondary data received from MRs.
Universe: Universe include all the chemists and field force
participated in the scheme.
Duration: Month-May
Analysis And Conclusions: Simple statistical tools were used
to analyze the secondary data collected. It has been done
by Percentage, Mean and whenever required different types
of graphs are used to make the findings more clear.
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Reasearch Findings And Conclusions …
INDIAN PHARMACEUTICAL INDUSTRY
“The Indian pharmaceutical industry is a success story
providing employment for millions & ensuring that essential drugs
at affordable prices are available to the vast population of this
subcontinent”
-Richard Gerster
The Indian pharmaceutical industry has come a long way,
being almost non-existing during 1970,to a prominent provider of
healthcare products meting almost 95% of country’s
pharmaceutical needs. The Indian pharmaceutical industry is in
the front rank of India’s science-based industries with wide
ranging capabilities in the complex field of drug manufacture &
technology. A highly organized sector, the Indian pharma industry
is estimated to be worth $ 4.5 billion, growing at about 15
percent annually.
It ranks very high in the third world, in terms of technology,
quality & range of medicines manufactured. From simple
headache pills to sophisticated antibiotics & complex
cardiac compounds, almost every type of medicine is now
made indigenously.
The Indian pharma market can be divided into bulk drugs
segments & formulations.
The industry produces about 60,000 finished medicines &
roughly 400 bulk drugs.
Playing a key role in promoting & sustaining development in
the vital field of medicines, Indian pharma industry boasts of
quality producers & many units approved by regulatory
authorities in USA & UK.
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Reasearch Findings And Conclusions …
Technologically strong & totally self reliant, the
pharmaceutical industry in India has low costs of production,
low R & D costs, innovative scientific manpower, strength of
national laboratories & an increasing balance of trade. The
pharmaceutical industry with its rich scientific talents &
research capabilities supported by intellectual property
protection regime is well set to take on the international
market.
KEY STATISTICS OF INDIAN PHARMA MARKET :
Global ranking 13th in value terms & 4th in volume terms.
Share of world pharma market 1 % in value & 8% in volume
terms.
5th largest manufacture of bulk drugs.
Number of registered units over 20,000 .out of which
approximately 250 in-organized Sector & are recognized &
certified by international agencies.
Leading 250 pharmaceutical companies in India control 70% of
market with market leader holding nearly 7% of market share.
Annual turnover more than $5.02 billion
A future projection is $26.66 billion by 2010.
OTC market $ 0.77 billion, growth rate 18-20 %
Indian pharma exports is $ 1.6 billion during 2004-2005 & are
projected to grow $ 6 Billion by 2015.India is among top 20
pharmaceutical exporters in the world.
Industry employee approximately 35 lacs people.
Number of generic brands over 60,000 in 60 therapeutic
categories.
Alternative medicine –Herbal/Ayurvedic market $ 0.84 billion
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Reasearch Findings And Conclusions …
Per capita drug expenditure Rs.220 per annum.
ADVANTAGE INDIA:
Competent Workforce: India has a pool of personnel with high
managerial & technical competence as also skilled workforce.
Professional services are easily available.
Legal & Financial Framework: India has a 53-year-old democracy
and hence has a solid legal framework & strong financial
markets.
Information & Technology: It has good network of world-class
educational institutions & established strengths in information
technology.
Globalization: The country is committed to free market
economy & globalization. Above all, it has a 70 million middle
class market, which is continuously growing.
Production & Research Low cost of production & low R& D costs.
Indian pharma industry is an efficient & cost effective source
for procuring generic drugs especially the drugs going off
patent in the next few years. It is an excellent center for
clinical trials in view of the diversity in population.
RESEARCH & DEVELOPMENT:
R & D spending,
World- 10-16 % of sales turnover.
India- 1.5-2 % of sales turnover.
Scope for collaborative R & D by development of,
- Combinatorial chemistry
- New synthetic molecules
- Plant derived drugs.
Indian pharma industry provides cost-effectives clinical trial
research.
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Reasearch Findings And Conclusions …
It has an excellent record of development of improved, cost
beneficial chemical synthesis for various drug molecules.
SWOT ANALYSIS OF INDIAN PHARMA
INDUSTRY:
STRENGTHS:
Cost Competitiveness.
Well-developed industry with strong manufacturing base
Well-Established network of laboratories and R & D
infrastructure.
Access to pool of highly trained scientists, both in India &
abroad.
Strong marketing & distribution network
Rich biodiversity
Competences in chemistry & process development
India has the largest no. of US FDA approved plants outside US
WEAKNESSES:
Low investments in innovative R& D
Lack of resources to compete with MNCs for new drug
discovery research & to commercialize molecules on a
worldwide basis.
Inadequate regulatory standards
Production of spurious & low quality drugs spoils the image of
the industry in International arena.
OPPORTUNITIES:
Significant export potential
Licensing deals with MNCs
Marketing alliances to sell MNC products in Indian market
Contract manufacturing agreements with the MNCs
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Reasearch Findings And Conclusions …
Potential for developing India as a centre for
international clinical trials
THREATS:
Product patent regime posses serious challenge to domestic
industry unless it invests in R & D
DPCO puts unrealistic ceilings on product prices & profitability
and prevents pharma companies in generating investible
surpluses.
Export effort hampered by procedural hurdles & non-tariff
barriers imposed abroad.
Lowering of tariff protection.
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Reasearch Findings And Conclusions …
MAJOR PLAYERS IN INDIAN PHARMA
INDUSTRY(MAY-2004)
RANK COMPANY VALUE
(CRORE)
GROWTH RATE
1 Cipla 20.44 2.3
2 Glaxosmithkline 1.13 4.4
3 Ranbaxy 1.11 - 0.5
4 Nicholas Piramal 0.90 1.5
5 Sun Pharma 0.84 -0.5
6 Zydus Cadila 0.50 1
7 Dr.Readdy’slaboratories 0.49 -0.9
8 Aristo Pharma 0.47 9.1
9 Abbott India Ltd. 0.46 0.5
10 Sanofi Aventis 0.46 -0.3
11 Alkem Laboratories 0.45 8.5
12 Lupin Labs 0.45 10.8
13 Micro labs 0.40 10.6
14 Torrent Pharma 0.38 2.9
15 Novartis India Ltd. 0.37 -4.1
16 Wockhardt 0.36 -5.3
17 Unichem Labs. 0.35 7.3
18 Alembic Limited 0.34 1.1
19 U.S.V.limited 0.33 1.3
20 Intas 0.29 15.1
TOTAL MARKET 20.44 2.3
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Reasearch Findings And Conclusions …
ALEMBIC LIMITED
Alembic established in 1907 in Baroda with the philosophy of
self-reliance and quality & now it is Asia’s respected integrated
pharmaceutical company with manufacturing facilities in Baroda &
Baddi, India With R & D Facilities.
Alembic is certified ISO-9002 & ISO-14001 Company with
manufacturing practice & facilities that conform the WHO-
GMP guidelines.
Alembic is in the business of improving the quality of life &
health care in over 75 countries around the world.
MISSION: To give access to the best healthcare products at
affordable price to everyone, anywhere in the world.
LOGO: Just as a country identified by the national flag , for
a company, a logo stands for its identity. A logo reflects the
basic ethos of a company, what it stands for & how it
expects to ride into the future.
The unidirectional arrows below the name of Alembic indicate
the momentum. it is said that,
Speed X Direction = Velocity
It is this velocity. These Feelings of direction & purposeful
movement that company want. The Blue colour stands for stability,
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Reasearch Findings And Conclusions …
dependability & Strength of character. Green stands for
prosperity & freshness.
To gather Blue & Green symbolize the colour of the ocean,
which has an unparallel depth & is in constant movement. A logo of
Alembic combines the stability of the past with the freshness of the
present & the dynamism of the future.
Major Areas Of Interest :
Active pharmaceutical ingredients (API): API remains to be
significant operation for alembic limited. Alembic has exclusive
facility for manufacturing synthetic APIs consisting
independents manufacturing blocks for macrolides, NSAIDS &
other drugs.
Bulk Drugs: The synthetic BPC business is supported with an
independent facility equipped with an excellent pilot facility.
Formulations: Basket of formulation products contains more
than 150 products in second forms belonging to diverse
therapeutic segments including anti-infective, cough & cold
products to cardiovascular & oral antidiabetics.
Veterinary products: Alembic veterinary Division was
established in 1986.Now, ranked among the top 10 in Indian
Veterinary industry.
Research :
Alembic has well equipped R& D facilities spearheading
landmark research in the areas of chemistry, microbiology &
pharmaceutical technology & bioequivelence. Alembic has just
launched “BIOARC RESEARCH CENTRE” at Baroda to further
capitalize their strength in research.
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Reasearch Findings And Conclusions …
Alembic has undertaken educational, environmental &
healthcare program to make a world better place to live.
- Alembic is using the state-of-the-art-effluent treatment plant
for all the waste generated.
- Alembic has promoted Bhailal Amin Trust that manages one of
the most successful hospitals in the state of Gujarat.
- Alembic is also managing one educational trus
Future Of Alembic :
Alembic believes that in the future, their global presence will
serve as the perfect vehicle for further growth. Over the year they
have seen considerable success is non-regulated markets, they
are also aggressively making in-roads into regulated markets.
Alembic has built a reputation for itself in the international
pharmaceutical and fine chemical arena, as a company focusing
on delivering quality products & services that conform to global
norms. The cater specific needs of local markets of various
countries around the world.
This allows them to collaborate through every stage of an
international product launch, which makes us the ideal business
in API’s, BPC’s & FDF’s is responsible for enhancing life in over75
countries in four continents around the world.
Their goals are on emerging opportunities; as a result, our
capabilities are in-sync with our overall belief of extending life.
They have also paved the way for new molecule development.
Established their presence in the major regulated markets.
Focused & result oriented approach in R& D, resulting in the
development of newer analogues of macrolides and
introduction of Newer Drug Delivery System.
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Reasearch Findings And Conclusions …
Development of non-infringing routes and obtain
process patents.
Strengthen the knowledge base through tie-ups and
collaborations with scientific & research institutions in India
and abroad.
Consolidate their position as one of the leading pharmaceutical
companies in India.
Introduce products in new therapeutic categories by utilizing
distribution end.
R& D strengths, as well as through strategic alliance.
PRODUCT :
Branded Formulation
Antibiotics & Antibacterials
Antihistamines
Oral Hypoglycemic
Cough & Cold
NSAIDS
Herbal & Nutraceuticals
Others
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Reasearch Findings And Conclusions …
MARKETING CHANNEL SYSTEM
Marketing channels are set of interdependent organization
involved in the process of making a product or service available for
use or consumption. Most producers don’t sell their goods directly to
the final users, between them stands a set of intermediaries
performing a variety of functions these intermediaries constitute a
marketing channel. Marketing channel also called a trade channel or
distribution channel.
Intermediaries :
Merchants: Some intermediaries such as wholesalers &retailers
buy, take titles to goods and resell the merchandise. They are
called merchants.
Agents: Others like brokers, manufacturers’ representatives,
sales agent search for customers and may negotiate on the
producer’s behalf but don’t take title of goods, they are called
agents.
Facilitators: Still others transportation companies, independent
warehouses, banks, advertising agencies assist in the
distribution process but neither take the title to goods nor
negotiate purchase or sales; they are called facilitators.
Marketing channel decisions are among the most critical
decision facing management. The channels chosen intimately
affect all other marketing decisions. The firm’s sales force and
advertising decision depend on how much training and
motivation dealers need. In addition, the company’s channel
decision involves relatively long term commitments to other
firms.
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Reasearch Findings And Conclusions …
A distribution system…is a key external resource.
Normally it takes years to build and it is not easily changed. It
represents a significant corporate commitment to large
numbers of independent companies whose business is
distribution and to the particular market they serve.
Channel functions and flow :
Intermediaries normally achieve superior efficiency in making
goods widely available and accessible to target markets. Through
their contacts, experience, specialization and scale of operation,
intermediaries usually offer the firms more than it can achieve on
its own. Intermediaries smooth the flow of goods and services.
This procedure is necessary in order to bridge the discrepancy
between the assortment of goods and services generated by the
producer and the assortment demanded by the consumer. The
discrepancy results from the fact that manufacturers typically
produce a large quantity of limited variety of goods, where as
consumers usually desire only a limited quantity of a wide variety
of goods.
A distribution channel performs the work of moving goods from
producers to consumers. It overcomes the time, place, and
possession gaps that separate goods and services from those
who need or want them. Members of distribution channel perform
a number of key functions.
They gather information about potential and current
customers, competitors and other actors and forces in the
marketing environment.
They develop and disseminate persuasive communications to
stimulate purchasing.
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Reasearch Findings And Conclusions …
They reach agreements on price and others terms so
that transfer of ownership or possession can be affected
They place orders with manufacturers.
They acquire the funds to finance inventories at different levels
in the marketing channel.
They assume risks connected with carrying out channel work.
They provide for the successive storage and movement of
physical products.
They provide for buyers’ payment of their bills through banks
and other financial institutions.
They oversee actual transfer of ownership from one
organization or person to another.
Some functions like physical, title, promotion constitute a
forward flow of activity from the company to the customer
other functions like ordering and payment constitute backward
flow customers to the company. Still others like information,
negotiation, finance and risk taking occur in both directions. A
manufacturer selling a physical product and services might
require three channels: A sales channel, a delivery channel and
a Service channel.
Channel levels :
The producer and the final customer are part of every
channel. The Chart illustrates several consumer-good
marketing channels of different lengths.
A zero level channel also called a direct marketing channel
consists of a manufacturer selling directly to the final
customer.
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Reasearch Findings And Conclusions …
E.g. Door to door sales, home parties, mail order,
telemarketing, Tv selling, Internet selling and manufacturer
owned stores.
A one level channel contains one selling intermediary, such as
retailer
A two level channel contains two intermediaries in consumer
markets. These are typically a wholesaler & a retailer.
O – Level 1- Level 2- Level 3-Level
A three level channel contains three intermediaries. In Japan
food distribution may involve as many as six levels.
From the producer’s point of view, obtaining information about
end users and exercising control becomes more difficult as
the number of channel levels increases. Channels normally
describe forward movements of product from source to user.
Reverse flow channels are also important.
E.g. Milk bottles & soft drinks bottles are returned.
Push And Pull Strategy :
27
Manufacturer Manufacturer Manufacturer Manufacturer
Wholesaler Wholesaler
Retailer Retailer Jobber
Retailer
Consumer Consumer Consumer Consumer
Reasearch Findings And Conclusions …
In managing its intermediaries, the firm must decide
how much effort to devote to push versus pull marketing.
Push Strategy: A push strategy involves the
manufacturer using its sales force and trade promotion
money to induce intermediaries to carry, promote and sell
the product to end users. Push strategy is appropriate
where there is low brand
loyalty in a category, brand choice is made in the store, the
product is an impulse item and product benefits are well
understood.
Pull Strategy: Pull strategy involves the manufacturer
using advertising and promotion to induce consumers to ask
intermediaries to order it. Pull strategy is appropriate when
there is high brand loyalty and high involvement in the
category. When people perceive differences between brands
and when people choose the brand before they go to the
store.
Companies in the same industry may differ in their
emphasis on push and pull strategies.
Number Of Intermediaries :
Exclusive Distribution: Exclusive distribution
severely limiting the number of intermediaries. It is
used when the producer wants to maintain control
over the service level and outputs offered by resellers.
Often it involves exclusive dealing arrangements. By
granting exclusive distribution, the producer hopes to
obtain more dedicated and knowledgeable selling.
Selective Distribution: Selective distribution
involves the use of more than a few but less than all of
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Reasearch Findings And Conclusions …
the intermediaries who are willing to carry a
particular product. It is used by established companies
and by new companies seeking distributors. Eg.Disney,
car, and two wheelers.
Intensive Distribution: Intensive distribution consists
of the manufacturer placing the goods or services in as
many outlets as possible. This strategy is generally
used
for items such as tobacco products, soap, snack foods
and gum, products for which the consumer requires a
great deal of location convenience.
Motivating Channel Members :
A company needs to determine intermediaries' need and
construct a channel positioning such that its channel
offering is tailored to provide superior value to these
intermediaries. The company should provide training
programs, market research programs, schemes and other
capability building programs to improve intermediaries'
performance. The company must constantly communicate
its view that the intermediaries are partners in a joint effort
to satisfy end users of the product.
The intermediary often acts as a purchasing agent for
his customers & only secondarily as a selling agent for his
supplier. The intermediary attempts to weld all of his
offerings into a family of items, which he can sell in
combination, as a packaged assortment, to individual
customers. His selling effort are directed primarily at
assortment, rather than for individual items unless given to
do so, intermediaries will not maintain separate sales
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Reasearch Findings And Conclusions …
records by brand .Producers vary greatly in skill in
managing distributors. They can draw on the following types
of power to elicit co-operation.
Coercive power: A manufacturer threatens to
withdraw a resource or fail to co-operate This power can
be effective, but its exercise produces resentment and
can lead the intermediaries to organize countervailing
power.
Reward Power: The manufacturer offers
intermediaries an extra benefit for performing specific
acts or functions. Reward power typically produces better
results than coercive power, but can be overhead. The
intermediaries may come to except a reward every time
the manufacturer wants a certain behavior to occur.
Legitimate Power: The manufacturer request a
behavior that is warranted under the contract. As long as
the intermediaries view the manufacturer as a legitimate
leader, legitimate power works.
Expert power: The manufacturer has special
knowledge that the intermediaries value. Once the
expertise is passed on to the intermediaries, however, this
power weakens. The manufacturer must continue to
develop new expertise so that the intermediaries will want
to continue cooperating.
Referent power: The manufacturer is so highly
respected that intermediaries are proud to be associated
with it. Companies such as IBM, Caterpillar, and Hewlett-
Packard have high referent power.
30
Reasearch Findings And Conclusions …
Most producers see the main challenge as
gaining intermediaries' cooperation. They often use
positive motivators such as higher margins, special deals,
premiums, cooperative advertising allowances, display
allowances & sales contest.
Channel Dynamics :
Conventional Marketing Channel: It comprises
an independent producer, wholesaler & retailer. Each is
separate business seeking to maximize its own profits,
even
if this goal reduces profit for the system as a whole. No
channel member has complete or substantial control over
other members. e.g. Pharma companies distribution
channel.
Vertical marketing system (VMS): VMS
comprises the producers, wholesalers and retailer acting
as a unified system. One channel member, the channel
captain, owns the others or franchises them. The channel
captain can be the producer, the wholesalers or the
retailer. The VMSs achieve economies through size,
bargaining power and elimination of duplicated services.
There are three types of VMS: corporate, administer and
contractual. e.g. Franchise organizations.
Horizontal Marketing Systems: In this two or
more unrelated companies put to gather resources or
programs to exploit an emerging marketing opportunity.
Many super market chains have arrangements with local
banners to offer in store banking. e.g. ATM counter in
super market, Crossword in barista.
31
Reasearch Findings And Conclusions …
Multi Channel Marketing Systems:
Multi channel marketing occurs when a single firm uses
to two or more marketing channels to reach one or more
customer segments. Today, with the proliferation of
customer segments and channel possibilities more
companies have adopted multi channel marketing. By
adding more channels, companies can gain benefit of
increased market coverage, lower channel cost and more
customized selling.
Wholesaling :
Wholesaling is one of the important level in the
distribution channel. Wholesaling includes all the activities
involving in selling goods or service to those who buy for resale
or business use. Wholesalers pay less attention to promotion,
atmosphere & location because they are dealing with business
customers rather than final consumers. In this aspects
wholesaler differ from retailers. Wholesale transactions are
usually larger than retail transactions and wholesalers usually
cover a larger trade area than retailers.
Wholesalers generally perform one or more of the following
functions:
Selling and promoting: Wholesalers' sales forces help
manufacturers reach many small business customers at a
relatively low cost.
Wholesalers have more contracts, and often buyers trust
wholesalers more than they trust a distant manufacturer.
32
Reasearch Findings And Conclusions …
Buying and assortment building: Wholesalers are
able to select items and build the assortments their
customers need, saving the customers considerable work.
Bulk breaking: Wholesalers achieve the savings for their
customers through buying in large carload lots and
breaking the bulk into smaller units.
Warehousing: Wholesalers hold inventories, thereby
reducing inventory costs and risks to suppliers and
customers.
Transportation: Wholesalers can often provide quicker
delivery to buyers because they are closer to the buyers.
Financing: Wholesalers finance customers by granting
credit, and finance suppliers by ordering early and paying
bills on time.
Risk bearing: Wholesalers absorb some risk by taking title
and bearing the cost of theft, damage, spoilage, and
obsolescence.
Market information: Wholesalers supply information to
suppliers and customers regarding competitors' activities,
new products, price developments, and so on.
Management service and counseling: Wholesalers often
help retailers improve their operations by training sales
clerks, helping with store layouts and displays, and setting
up accounting and inventory control systems. They may
help industrial customers by offering training and
technical services.
Types of wholesaling:
Merchant Wholesaler: Independently owned business that
take title to the merchandise they handle. They are called
33
Reasearch Findings And Conclusions …
distributors, jobbers or mill supply houses and
fall into two categories.
Full service.
Limited Service.
e.g. Pharma distributors.
Broker and Agents: Don’t take title to goods and perform
only a few functions. Main function is to facilitate buying
and selling for which they earn a commission of 2 to 6
percent of the selling price.
Brokers: Chief function is bringing buyers and sellers to
gather and assisting negotiation. They are paid by the
party who hired them. The most familiar examples are
food
brokers, real estate brokers, insurance brokers and
security brokers.
Agents: Represents either buyer or seller on a more
permanent basis. Manufacturer's agents represent two or
more manufacturers of complementary line. They enter
into formal agreement with each manufacturer.
Miscellaneous wholesalers: A few specialized types of
wholesalers are found in certain sectors of the economy.
This includes agricultural assemblers, petroleum bulk
plans and terminals and auction companies. e.g.
Seasonal wholesaler for kites and crackers.
Trends in wholesaling:
Manufacturers always have the option of bypassing
wholesalers or replacing in efficient wholesalers with better
34
Reasearch Findings And Conclusions …
ones. Manufacturer's major complaint against
wholesalers is as follows.
- They don’t aggressively promote the manufacturer's
product line & act more like order taker.
- They don’t carry enough inventories & therefore fail to fill
customers' order fast enough.
- They don’t supply the manufacturer with up to date market.
- They don’t attract high caliber managers & bring down their
own costs.
To strengthen the relationship with manufacturer
distributed the use following ways.
1. Distributor sought a clear agreement with their
manufacturers about their expected functions in the
marketing channel.
2. Distributor gained insight into the manufacturer's
requirements by visiting their plants & attending
manufacturer association’s conventions & trade shows.
3. Distributors fulfilled their commitments to the manufacturer
by meeting the volume targets, paying bills promptly, and
feeding back customers information to their manufacturers.
4. They identified and offered value added services to help
their suppliers.
Retailing :
Retailing includes all the activities in selling goods or
services directly to final consumers for personal, non-business
use. A retailer or retail store is any business enterprise
35
Reasearch Findings And Conclusions …
wholesale volume comes primarily from retailing. Any
organization. Selling to final consumers whether it is a
manufacturer, wholesaler or retailer is doing retailing.
Retailer Types:
Specialty Store: Narrow product line with a deep assortment. A
clothing store would be a single line store. A men's clothing
store would be a limited line store & A men's custom short
store would be a super specialty store. Chemist store or
pharmacy store is perfect example of specialty store.
Department Store: Several product lines typically clothing, home
furnishings & household goods with each line operated as a
separate department managed by specialist buyers or
merchandisers.
Supermarkets: Relatively large, low – cost, low margin, high
volume, self service operation designed to serve total needs
for food, laundry & household products big bazaar.
Convenience Store: Relatively small store located near
residential are, open long hours, seven days a week & carting
limited line of high turnover convenience products at slightly
higher prices.
Discount Store: Standard merchandise sold at lower prices
lower margins & higher volumes. Discount retaining has
moved into specialty merchandise stores such as discount
sporting goods stores, electronic stores & book storese.g. Apna
bazaar, Army shop.
Off price retailer: Merchandise bought at less than regular
wholesaler price & sold at less than retail.
36
Reasearch Findings And Conclusions …
Factory outlets owned and operated by manufacturers
and normally carry the manufacturer's surplus, discontinued or
irregular goods.
Independent off price retailers are owned and run by
entrepreneurs or by divisions of larger retail corporations.
Warehouse clubs sell a limited selection of brand name grocery
items, appliances and clothing of other goods at deep
discounts to members who pay annual membership fees.
Super store: About 35,000 square feet of selling space
traditionally and aimed at meeting consumer's total needs for
routinely purchased food and nonfood items plus services such
as laundry, dry cleaning, shoe repair, check cashing & bill
paying.
Catalog Showroom: Broad selection of high markup, fast
moving brand name goods at discount prices. Customer orders
goods from a catalog, then pick these goods up at
merchandise pick up area in the store.
Managing the sales force:
Sales personnel serve as the company's personal link to
the customers. The sales representative to is the company to
many of its customers. No one debates the importance of the
sales force in the marketing mix. Therefore, the company
needs to carefully consider issues in sales force design –
namely the development of sales force objectives, strategy,
structure, size and compensation.
- A direct company sales force consists of full or part time
paid employees who work exclusively for the company. This
sales force
37
Reasearch Findings And Conclusions …
- Includes inside sales personnel who conduct
business from the office using the telephone and receive
visits from prospective buyer.
- Contractual sales force consists of manufacturer's
representative, sales agent and brokers, who are paid a
commission based on sales.
Training Sales Representatives:
Today's customers expect sale person to have deep product
knowledge, to add ideas to improve the customer's
operations and to be efficient and reliable. These demands
have required companies to make a much higher
investment in sales training. Sales force received training to
recognize value-adding opportunities rather then price
cutting opportunity. As a result the company's sales
revenue climbed
further and so did its margins. Training time varies with the
complexity of the selling task and the type of person
recruited into the sales organization.
Motivating Sales Representatives:
Some sales representatives will put forth their best
effort without any special coaching from management.
However, the majority requires encouragement and special
intensive. This is especially true of field selling.
The basic model for motivating sales representative
works as follows:
Higher the sales person's motivation
Greater the effort
38
Reasearch Findings And Conclusions …
Greater performance
Greater rewards
Greater satisfaction
Reinforce motivation
The reward with highest value is extra pay followed by
incentive, promotion, personal growth and sense of
accomplishment. The list value rewards are liking and respect,
security and recognition. In other words, sales person are
highly motivated by pay and the chance to get ahead and
satisfy their intrinsic needs and less motivated by compliments
and security.
Sales Quotas: Many companies set annual sales quotas.
Quotas can be set on sales value, unit volume, margin,
selling effort or activity and product type. Compensation is
often tied to degree of quota fulfillment. Sales quotas are
developed from
the annual marketing plan. Quotas are set higher than the
sales forecast to encourage managers and sales person to
perform at their best level. Quotas drive representative to
get as much as business possible.
Supplementary Motivators: Companies use additional
motivators to stimulate sales force effort. Sales meeting are
and important tool for educations, communication and
motivation. Companies also sponsor sales contests to spur
the sales force to a special selling effort above what is
39
Reasearch Findings And Conclusions …
normally expected. The contest should presented
reasonable opportunity for enough sales people to win. The
contest period should not be announced in advance.
RESEARCH FINDINGS AND CONCLUSIONS
The secondary data received from medical representative in
set of summer surprise card and stockist invoice copy is checked
and processed for conformation of claimed gifts. After that all the
collected data is analyzed by different criteria with tabulation and
cross tabulation as follows.
TABLE:1 MR WISE CONTRIBUTION
Sr.No. Region No.of MRs No.of MRs Value Average Regional
participated(Rs.in lacs)(Rs.in lacs) Average
A B C D=C/B E=C/A
1 Banglore 31 7 0.6 0.08 0.02
2 Chanigarh 19
40
Reasearch Findings And Conclusions …
3 Chennai 28
4 Cochin 23 13 1.41 0.1 0.06
5 Delhi 34 6 1.89 0.31 0.05
6 Ghaziabad 40 6 3.26 0.54 0.08
7 Gujarat 29 6 0.77 0.12 0.02
8 Guwahati 16 7 1.25 0.17 0.07
9 Howrah 27 3 1.28 0.42 0.04
10 Hyderabad 19
11 Indore 22 6 0.87 0.14 0.03
12 Jaipur 19
13 Kolkata 24 8 1.16 0.14 0.04
14 Lucknow 34 4 1.15 0.28 0.03
15 Mumbai 20 2 0.20 0.1 0.01
16 Nagpur 24 6 0.96 0.16 0.04
17 Patna 33 7 1.12 0.16 0.03
18 Pune 28 18 3.48 0.19 0.12
19 Vijaywada 34
All over
India 504 99 19.4 0.19 0.03
GRAPH:1 OPPORTUNITY GAP
REGION
AVERAGE
D=C/B
REGIONAL AV.
E=C/AGhaziabad 0.54 0.08
Howrah 0.42 0.04
Delhi 0.31 0.05
Lucknow 0.28 0.03
Pune 0.19 0.12
Guwahati 0.17 0.07
Nagpur 0.16 0.04
Patna 0.16 0.03
Indore 0.14 0.03
41
Reasearch Findings And Conclusions …
Kolkata 0.14 0.04
(Top 10 Regions showing opportunity gap)
Graph shows comparative average value contributed by top ten
regions. Ghaziabad is on top with average value of 0.54 lacs per
medical representative participated. While, per capita for each
medical representative whether participated or not is 0.08,which is
very less. So, there is large opportunity gap. If more no. Of medical
representatives have actively participated in the trade Offer, the
opportunity gap would be less. Here, opportunity gap is large in
almost all region except in Puna having least opportunity gap.
From these findings we can say that more participation from the
field force is invited.
42
Reasearch Findings And Conclusions …
Table No.2 Value -Zeet and Wikoryl
SR.NO REGION ZEET Value WIKORYL Value
Qnty. (QtyxRate) Qnty. (QtyxRate)
1 Banglore 211 6417 4163 54993
2 Cochin 1390 42270 7644 100977
3 Delhi 2992 90986 7824 103355
4 Ghaziabad 6426 195414 12161 160647
5 Gujarat 773 23506 3854 50911
6 Guwahati 2410 73288 3874 51176
7 Howrah 3127 95092 2809 37106
8 Indore 1343 40840 3134 41400
43
Reasearch Findings And Conclusions …
9 Kolkata 3005 91382 2147 28361
10 Lucknow 2223 67601 3279 43316
11 Mumbai 144 4379 1373 18137
12 Nagpur 1761 53552 3069 40541
13 Patna 2958 89952 2060 27212
14 Pune 5708 173580 12748 168401
Total 34471 1048259 70139 926533
ZEET STD.RATE= 30.41
WIKORYL STD.RATE= 13.21
Here total values contributed by Zeet and Wikoryl in each
region is calculated by the considering the standard rate in all over
India.
TABLE:3 REGIONAL AVERAGE VALUE FOR ZEET & WKL.
Sr.No. Region No.of MRs Total Value Zeet Value Avg.Zeet Wkyl Value Avg.Wkyl Avg.totalParticipated. Value Value Value
(Rs.in lacs)(Rs.in lacs)(Rs.in lacs)(Rs.in lacs)(Rs.in lacs)(Rs.in lacs)A B C D=C/A E F=E/A G=B/A
1 Ghaziabad 6 3.26 1.95 0.32 1.60 0.26 0.54
2 Howrah 3 1.28 0.95 0.31 0.37 0.12 0.42
3 Delhi 6 1.89 0.90 0.15 1.03 0.17 0.31
4 Lucknow 4 1.15 0.67 0.16 0.43 0.10 0.28
5 Pune 18 3.48 1.73 0.09 1.68 0.09 0.19
6 Guwahati 7 1.25 0.73 0.1 0.51 0.07 0.17
7 Patna 7 1.12 0.89 0.12 0.27 0.03 0.16
8 Nagpur 6 0.96 0.53 0.08 0.40 0.06 0.16
9 Indore 6 0.87 0.40 0.06 0.41 0.07 0.14
44
Reasearch Findings And Conclusions …
10 Kolkata 8 1.16 0.91 0.11 0.28 0.03 0.14
11 Gujarat 6 0.77 0.23 0.04 0.50 0.08 0.12
12 Cochin 13 1.41 0.42 0.03 1.00 0.07 0.10
13 Mumbai 2 0.20 0.04 0.02 0.18 0.09 0.10
14 Banglore 7 0.60 0.06 0.009 0.54 0.08 0.08
45
Reasearch Findings And Conclusions …
GRAPH:2 SKEW STUDY
GRAPH:2.1
Graph: 2.2
Graph: 2.3
46
Reasearch Findings And Conclusions …
Graph-2 shows MR Average contribution in each Zeet and
Wikoryl.
Graph-2.1 shows 5 regions contributing highest sale value.
They are contributing approximately 60 percent of total sale
value
Ghaziabad has 0.54 lacs average sale value from which Zeet
contributed 0.32 lacs and Wikoryl contributed 0.32 lacs. We
can consider it around 0.26 lacs. We can consider it almost
same. So, there is no skew in almost all top regions except in
Howrah.Howrah is highly skewed region. In Howrah the
contribution of Zeet is 0.31 lacs whereas contribution from
Wikoryl is only 0.12 out of 0.42 lacs.
This findings shows that top 5 regions that
contributed higher value having almost same contribution from
both Zeet and Wikoryl
47
Reasearch Findings And Conclusions …
TABLE: 4 FIELDFORCE PARTICIPATION
Sr.No. Region No. Of MRs No. of MRs Value % Participation Rank accordingParticipated (Rs.in lacs) To value
A B C1 Pune 28 18 3.48 64 1
2 Cochin 23 13 1.41 57 4
3 Guwahati 16 7 1.25 44 6
4 Kolkata 24 8 1.16 33 7
5 Indore 22 6 0.87 27 11
6 Nagpur 24 6 0.96 25 10
7 Banglore 31 7 0.60 23 13
8 Gujarat 29 6 0.77 21 12
9 Patna 33 7 1.12 21 9
10 Delhi 34 6 1.89 18 3
11 Ghaziabad 40 6 3.26 15 2
12 Lucknow 34 4 1.15 12 8
13 Howrah 27 3 1.28 11 5
14 Mumbai 20 2 0.20 10 14
15 Chanigarh 19
16 Chennai 28
17
Hyderaba
d 19
18 Jaipur 19
19 Vijaywada 34
Table shows region Pune has maximum participation of
fieldforce and also ahead of all regions in terms of value contributed.
Whereas, Ghaziabad has only 15 percent of fieldforce participation,
still it ranks second in value.
From table it is clear that Top 5 regions having maximum
participation of fieldforce ranked almost behind last regions having
minimum participation of fieldforce.
48
Reasearch Findings And Conclusions …
So, there is no linking between fieldforce participation and
value generated. The sale is depend upon the individual
performance of the medical representative.
TABLE:5 SALIENCE STUDYAccording to zeet salience
SR.NO REGIONTotal Value
Zeet Value
Wkyl Value
% Contribution Salience
(Rs.in lacs)
(Rs.in lacs)
(Rs.in lacs)
Zeet Wkyl Zeet Wkyl
1 Ghaziabad 3.26 1.95 1.60 60 40 18.6 17.32 Pune 3.48 1.73 1.68 50 50 16.5 18.13 Howrah 1.28 0.95 0.37 74 26 9.0 4.04 Kolkata 1.16 0.91 0.28 79 21 8.7 3.05 Delhi 1.89 0.90 1.03 48 52 8.6 11.16 Patna 1.12 0.89 0.27 80 20 8.5 2.97 Guwahati 1.25 0.73 0.51 58 42 7.0 5.58 Lucknow 1.15 0.67 0.43 58 42 6.44 4.69 Nagpur 0.96 0.53 0.40 56 44 5.0 4.310 Cochin 1.41 0.42 1.00 30 70 4.0 10.811 Indore 0.87 0.40 0.41 47 53 3.8 4.412 Gujarat 0.77 0.23 0.50 30 70 2.2 5.413 Banglore 0.60 0.064 0.54 10 90 0.6 5.914 Mumbai 0.20 0.043 0.18 21 79 0.4 1.9
All over India 19.4 10.417 9.2 54 46
According to wkyl
SR.NO REGION
Total Value
Zeet Value
Wkyl Value
% Contribution
Salience
(Rs.in lacs)
(Rs.in lacs)
(Rs.in lacs)
Zeet Wkyl Zeet Wkyl
1 Pune 3.48 1.73 1.68 50 50 16.5 18.12 Ghaziabad 3.26 1.95 1.60 60 40 18.6 17.33 Delhi 1.89 0.90 1.03 48 52 8.6 11.14 Cochin 1.41 0.42 1.00 30 70 4.0 10.85 Banglore 0.60 0.064 0.54 10 90 0.6 5.96 Guwahati 1.25 0.73 0.51 58 42 7.0 5.57 Gujarat 0.77 0.23 0.50 30 70 2.2 5.48 Lucknow 1.15 0.67 0.43 58 42 6.4 4.69 Indore 0.87 0.40 0.41 47 53 3.8 4.410 Nagpur 0.96 0.53 0.40 56 44 5.0 4.311 Howrah 1.28 0.95 0.37 74 26 9.0 4.012 Kolkata 1.16 0.91 0.28 79 21 8.7 3.0
49
Reasearch Findings And Conclusions …
13 Patna 1.12 0.89 0.27 80 20 8.5 2.914 Mumbai 0.20 0.043 0.18 21 79 0.4 1.9
All over India 19.4 10.42 9.2 54 46
GRAPH:3 SALIENCE STUDY
GRAPH:3.1
GRAPH:3.2
50
Reasearch Findings And Conclusions …
Graph 3.1 and Graph 3.2 shows top 5 regions in which
there is highest salience of Zeet and Wikoryl.These 5 regions
contributes approximately 61 % of total salience of Zeet. Ghaziabad
contributes highest Zeet value to total Zeet sold during scheme,
whereas Pune contributes highest Wikoryl value to total Wikoryl sold
during scheme.
Cochin, Banglore and Mumbai haave very low salience
compared to Wikoryl salience. Means in these regions quantity sold
for Wikoryl is higher than Zeet. Likewise in Patna and Kolkata have
low Wikoryl salience compared to Zeet salience. In these regions
the quantity sold for Wikoryl is far less from that of Zeet. These
regions are having higher demand for Zeet than Wikoryl.
So, it is clear that there are certain regions, which
contributes particularly more to Zeet or to Wikoryl. In some regions
contribution from both the products is same as demand is same.
51
Reasearch Findings And Conclusions …
CONCLUSIONS
Conclusions are the extracts squeezed out from the whole
work. After scrutinizing the study regarding Trade offer-Summer
surprise scheme analysis following conclusions can be drawn.
Number of gifts allotted to stockist during May is as follows.
o Travel Bag-472
o Ajanta Clock-104
o Cello Keg- 110
Number of gifts suggests that chemist has actively
participated in the scheme.
Out of 504 medical representatives all over the India 99 have
participated in Trade offer. The hypothesis is that 15% of MR
will participate in the scheme. The participation of field force is
meet with hypothesis.
The per capita is approximately 0.20 lacs for one month. i.e.
May The hypothesis is per capita will be 0.45 lacs for two
months. In June participation of field force is expected to grow.
So, per capita is also expected to meet with hypothesis.
Total value for Zeet and Wikoryl sold during the scheme in
month of May is 19.4 lacs. The hypothesized value is 17 lacs
per month.
There is no linking between fieldforce participation and the
value generated. The sale is depending upon the individual
performance of the medical representative.
Opportunity gap is large in almost each region. So, grater
participation of fieldforce is invited.
52
Reasearch Findings And Conclusions …
Regions with the highest sale value having the almost
same contribution from Zeet and Wikoryl. There is no skew in
top 5 regions contributing higher value except in Howrah.
Top 5 regions contributed approximately 60% of the total
salience for Zeet and Wikoryl each. Ghaziabad contributes
highest Zeet value to total Zeet sold during scheme. Where as
Pune contributes highest Wikoryl value to total Wikoryl. In same
region total value generated is majority due to one product.
So, it is concluded that overall the Trade offer is
successful. The hypothesis is proven true. The response
from the field force and distribution channels is positive.
53
Reasearch Findings And Conclusions …
SUGGESTIONS
Studies should be done to analyze the actual success of
the Trade offer-Summer surprise scheme. Some
comparative
The marketing division should be carried out more efforts
to motivate the field force to take part in the Trade
offer.
The duration of scheme should be increased specially for
more accurate analysis of trade offer.
Some intensive should be included in the scheme for area
manager so that he encourages his field force to
participate in the scheme.
Some regions, which have not yet participated in the
Trade offer-Summer surprise scheme, require more
attention from marketing division. It is need of hour that
marketing division should make extra effort to encourage
them.
54
Reasearch Findings And Conclusions …
BIBLIOGRAPHY
Kotler Philip, eleventh edition, Marketing Management,
(2005), Chp:17,18,21.
Kothari C. R., Research Methodology, Second edition
Swarbrik James, Boylayn C. James, Encyclopedia of
Pharmaceutical Technology, Vol-II.
Insight Newspaper, Alembic, page:3
“Economic Times” dated May 27,2005.
“Economic Times” dated May 4,2005.
www.healthcare industry india.com
www.express pharma pulse.com
www.Alembic.co.in
www.coolavenues.com
55
Reasearch Findings And Conclusions …
CERTIFICATE
This is to certify that Miss Ankita P. Patel, Second Year
MBA student has carried out this Summer Project work
entitled as "Trade Offer Analysis" under my guidance and
supervision in the Marketing Division, Alembic Limited,
Vadodra during the academic year 2005-2006.
The data of the entire work has been checked by me
from time to time.I am fully satisfied with the candidate's
performance of work.
I recommend this summer project work for submission
to the adjudicators.
Mrs.Minali Desai
Group Product Manager,
Marketing Division,
Alembic limited,
Vadodara
CONTENTS
Sr.
No.
subjects Page
No
1 Executive Summary
56
Reasearch Findings And Conclusions …
2 Introduction
-Project-Summer surprise scheme
-Products
3 Research Methodology
4 Indian Pharma industry profile
5 Alembic Limited
6 Theory Aspects of Study
-Marketing Channel System
-Wholesaling and Retailing
-Managing the Sales force
7 Research Findings and Conclusions
-Conclusion
8 Suggestion and Recommendation
9 Annexure
10 Bibliography
57
Reasearch Findings And Conclusions … 58
top related