CHAPTER I
INTRODUCTION
1
1.1 INTRODUCTION
Sangrose Laboratories Pvt. Ltd is the only company in Kerala manufacturing
Clofozmine drug and is the third in India. It plays an important role in the National Leprosy
Education Program (NLEP) introduced by the Government of India under the aid of WHO. In
industry profile, a detail discussion about the pharmaceutical industry, it's advantage in India,
growth scenario etc. and in company profile it consist of background of the company, nature of
the business, vision and mission, quality policy, product profile, area of operation, ownership
pattern, competitors information, achievements, work flow model.
The present study entitled "The study on to identify the effectiveness of product
promotion by Sangrose Laboratories Pvt. Ltd" is to analyze how effectively the promotion
methods are successful in the market to attain the organizational goals. The study is being
conducted with the sample size of 50 respondents. The primary data collected with the help of
detailed questionnaire and secondary data is collected from the secondary sources. From this
study we found that the majority of the drug store owners are satisfied with the promotion
technique which is followed in the company The recommendation which were made on the
study are that the company shall concentrate much on advertisement ,provide samples and gifts
to Drug store owners and increase the frequency of advertisement, open retail stores in the
important locations. The study is concluded that the drug store owners are highly aware about the
quality of the drug. The company is mainly concentrated on personnel selling as their promotion
technique. The manufacturer is visiting the drug store owners and doctors for the improvement
of sales. If the company is concentrating on media advertisement they can easily capture the
market.
2
1.2 INDUSTRY PROFILE
INTRODUCTION TO THE PHARMACEUTICAL INDUSTRY
This section provides background information on the size, geographic distribution,
employment, production, sales and economic condition of the pharmaceutical industry. Facilities
described in terms of their standard industrial classification SIC codes.
As defined by its SIC codes, the pharmaceutical industry SIC 283 consist of
establishments that are primarily involved in fabricating or processing medicinal chemicals and
pharmaceutical products, the industry also includes establishments that formulate pharmaceutical
products and are involved in grinding, grading, and milling of botanical products. The census of
manufacturers defines an establishment as a single physical location or a facility where
manufacturing occurs. If more than one distinct line of manufacturing occurs at the same
location, the bureau of census separate reports for each activity.
Although the industry is part of the two - digit SIC code 28 for chemicals and allied
products it differs significantly from the rest of the chemicals industry in its industrial process,
the pharmaceutical industry as a whole. Since some of the bulk manufacturing operations involve
extracting small, highly concentrated quantities of active ingredients from much larger volumes
of raw material, the industry's production yield for these operations is correspondingly low.
When a pharmaceutical company discovers a compound that may have medical potential,
the company usually applies for a patent. Patents are valid for 20 years from the compound may
be marketed only after approval by the federal food and drug administration FDA. The drug
development process, beginning with initial toxicology testing, followed by clinical trials for
safety and effectiveness and review of the application by the FDA averages fifteen years. When
the company's patent or period of exclusively has expired, other companies may rely on the
original manufacturers data on safety and effectiveness to obtain approval to market a generic
version of the drug. Companies wanting to manufacture the same drug once it is off-patent are
required to obtain FDA marketing approval, based on evidence that the generic version is
"bioequivalent", ie., differs in the rate and extend of drug absorption by no more than 25 percent
nor less than the 20 percent from the original drug (FDA, 1996). While companies that specialize
3
in the development and marketing of brand name, innovator drug1 may generic drug companies
do not conduct research intended to identify and develop innovator drug (PhRMA, 1997).
Because of high cost and time to approval, effective patent protection is an essential
component in the decision to invest in drug development and marketing. This is especially true
for international companies interested in marketing drugs in several countries, each with its own
approval procedure and marketing requirements. While the international conference on
harmonization is proposed harmonized rules for drug registration and approval for Europe, Japan
and United States, each country retains its won approval system. In other countries, especially
developing countries, the issue of adequate patent protection is a central concern of
pharmaceutical manufacturers PhRMA, 1997.
Discovery of new compounds followed by further research and development R & D is
one of the primary functions of the industry. The pharmaceutical production process starts with
an extensive research stage, which can last several years. Following the discovery of a new drug
that appears to have efficiency in treating or preventing illness, pre clinical tests and clinical
trials are conducted. Then a new Drug Application (NDA) is submitted to the FDA for
pharmaceutical companies producing brand name drugs, the pharmaceutical Research and
Manufacturers of America PHRMA., it takes an average of 15 years to bring a new drug to
market, from time of discovery to approval PHRMA 1996. it is only after FDA has been secured
that market distribution in the US can begin.
The competition for discovering new drugs beginning them to market is extremely high.
As a result, a significant proportion of the industry's sales are reinvested into research and
development (R&D). according to PhRMA, total R&D expenditures, both domestically and
abroad, by its members, will be close to $19 billion dollars in 1997. PHRMA estimates that over
21% of total sales will be reinvested into RD by its members (PhRMA, 1997).
WORLD SCENARIO
Globalization of Indian pharmaceutical industry started in the early 1990s when the
Government opened its markets to foreign investments, Indian pharmaceutical industry's
Globalization took place with the coming of the foreign companies in the sector.
Globalization means the dismantling of the trade barriers and the integration of the
economies of the nations through trade in goods and services, corporate investments and
4
financial flow between nations. Globalization has increased the world over in recent years due to
the rapid progress that has been made in the field of technology especially in communication and
transport. The government of India opened its economy to foreign companies through changes in
its economic policy in 1991 and this led to the Globalization. The various advantages of
Globalization of Indian pharmaceutical industry are that it brought in huge amounts of foreign
currency into the industry which in its turn helped to boost the Indian economy. With many
foreign pharmaceutical companies entering the Indian pharmaceutical industry it increased the
number of jobs that were available to the people of the country. The benefits of Globalization of
Indian pharmaceutical industry are that the foreign pharmaceutical companies also brought in
highly advanced technology into the industry and this improved the quality of medicines that
were available to the people.
The various disadvantages of Globalization of Indian pharmaceutical industry are that the
competition increased in the Indian market between the foreign pharmaceutical companies and
domestic companies. This has resulted in many people losing their jobs and in Mumbai's Thane
region which is in Maharashtra more than 30,000 people lose their jobs between 1997 - 1999.
further the disadvantages of Globalization of Indian pharmaceutical industry are that many
foreign pharmaceutical companies are taking over the Indian pharmaceutical companies such as
SKB merged with Sterling, Ciba Geigy merged with Sandoz, and Rhone Poulenc merged with
Fashions. This has led to the fear that foreign pharmaceutical companies will take over the Indian
pharmaceutical industry.
MEDICINAL AND BOTANICALS (sis 2833)
Companies in the medicinal and botanicals industry category are primarily engaged in
1. manufacturing bulk organic and inorganic medicinal chemicals
and their derivatives.
2. Processing (grading, grinding and milling) bulk botanical drugs
and herbs. The industry is made up of establishments or facilities that manufacturer products of
natural origin, hormonal products and basic vitamins, as well as those that isolate active
medicinal principals such as alkaloids from botanical drugs and herbs(OMB, 1987). There
substances are used as active ingredients for the pharmaceutical preparations industry category.
5
Companies often produce both medicinal and botanical and pharmaceutical preparations at the
same facility.
PHARMACEUTICAL PREPARATIONS SIS 2834
The pharmaceutical preparations industry category is made up of companies that
manufactures, fabricate and process raw materials into pharmaceutical preparations for human
and veterinary uses. Finished products are sold in various dosage forms including for example,
tablets, capsules, ointments solutions suspensions and powders. These are 1) preparations aimed
for use mainly by dental, medical or veterinary professionals, and 2) those aimed for use by
patients and the general public (OMB1987). A more in depth discussion of these finished
products is provided in section 111. A.3. Pharmaceutical products also are often classified in
terms of their availability to the general public.
Both prescription and over the counter (OTC) drugs are available to the public.
Prescription drugs can be purchases only with a prescription from a licensed health care
professional authorized to prescribe, while (OTC) drugs may be purchased without prescription.
The FDA will consider approving the switch of a drug from prescription to (OTC) when the
manufacturer presents evidence that consumers can self diagnose the condition for which the
drug is approved, ie., cold or seasonal allergy, and directions for use can be written for the
consumer (PhRMA,1997).
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1.3 COMPANY PROFILE
Sangrose Laboratories Pvt. Ltd was incorporated in the year 1987 as a private
limited company under Indian Company act 1956.
The company is registered as a small scale industry with main object of
manufacturing basic drugs is located industrial estate in Kollakadavu in Vittiyar village,
Mavelikara Taluk in the notified industrial backward district Alappuzha in Kerala state the
company has branch office in Primal Nagar Mumbai, the commercial production of basic drug
CLOFAZMINE was started in the year 1989. CLOFAZMINE is the drug recommended by
world health organization(WHO) for the treatment of leprosy under multi drug therapy (MDT)
and also used for the treatment of TB and AIDS. COMPANY HAS RECEIVED GMP
CERTIFICATE FROM W.H.O EQUIVALENT TO THOSE WHO RECEIVE ISO 9002.
Sangrose Laboratories Pvt. Are the only company in Kerala manufacturing this
drug and third in India the other to being multinational competition is avoided by maintaining the
quality of the product.
The company plays an important role in national leprosy educational program
(NLEP) introduced by the Government of India under the aid WHO.
The Sangrose Laboratories Pvt. Is ideally located in Kollakadavu industrial estate
of Kerala in Alappuzha district. The company is eligible for all incentives offered by the state
government like subsidy, sale tax exemption etc. The basic infrastructure required for the
company is easily available at the industrial estate and the company does not envisage any
difficulty in availing them the company already has a low tension connection of 100kwa. But the
company intends to convert it into a high tension connection of 250kwa by while installing its
own transformer the industrial estate has well connection internal board with access to the main
road. The nearest railway station is just 5km and national highway is 15km away.
SANGROSE LABORATORIES PVT. LTD. Was founded in the year 1987 by
Mr. C.K. Alexander who is the entrepreneur-research chemist. The DNA of the company is
drawn from its founder and his vision to establish world's only largest producer of clofazimine. "
7
The vision of a research chemist takes on social and commercial expressions that's in nutshell,
briefly explain the genesis and growth of Sangrose Labs.
Mr. C.K. Alexander the founder and Managing Director was born brought up in
the tradition of Kerala. A post-graduate, approved manufacturing and quality control chemist, he
is having 25 Years experience in the pharmaceutical industry which 10 years is in the top level
management in developing and implementing project where administrative, technical marketing
and financial skills are required. He is also having 3 years experience in research and
development process know-how for a number of life-saving drugs.
Mr. Thomas Samuel, the finance director a post graduate Business Administration
is well experienced in funds management. The sound financial health of the company proves his
expertise in the field.
Mr. George Samuel have three years of experience as a chemist Bombay. He is the senior
manager international Airlines for the last 10 years.
MISSION AND VISION
MISSION:
The mission of Sangrose is to dedicate itself through the creation of innovative medical
products and services for the benefit of the medical community and human health around the
world.
VISION:
"The vision of the company is to become a leader in the Indian pharmaceutical industry
and a significant global player, providing customers delight and enhancing shareholders values".
CORE VALUES
C - Care for customer
R - Respect for associates
E - Excellent teamwork
A - Always learning
T - Trust mutually
E - Ethical practices.
8
MARKETING DEPARTMENT OF THE COMPANY
The company has two types of product, basic drugs and capsules. Bulk drug
manufactured by the company is exported to Switzerland with the help of foreign company
named "NOVATIS" the products are sold by SANGROSE LABORATORIES Pvt. Ltd. In
Switzerland in the name Novatis. The capsule are supplied to central purchasing committee of
govt. of India through tender. Black cumin seed oil capsules are also exporting to Srilanka.
In Sangrose Laboratories there are 25 brands. Some of the brands are antibiotic,
antifungal, antitoxin, vitamin E, antioxidants. Positioning of some production are antifungal for
soft gelatin capsules, antioxidants for sun protection, depigmentary agent for skin ageing. Every
product is in introduction stage. Some of the market leader's antifungal is zockon. The market
share of each product category is less than .01 percent.
The total selling force is 10 peoples. The structure of the company is as field sales
executives, regional manger and marketing manager. The meeting of the company with the
bosses and the subordinates is once in a month. The target is growing to 20-30 percents. Control
is been exercised by the administrative control. They motivate their sales man by incentives,
recognition, awards etc. the company have a depots and also have stockiest and carry forward
agents. The discount structure of the company is 20 percent to retailers and 10 percent to
stockiest. The collection system of the company is 60 days time duration.
Competitors:-
The company enjoys monopoly position in he production of the Basic Drugs
'CLOFAZIMINE'. In the case of the other drugs they face little competition from Lark
Laboratories, Invines Laboratories etc.
PRICING POLICIES
Pricing is the marketing function whose importance is acknowledged even more easily
than that of other functions. From the point of view the customer, the price of the medicine
product as compare with the quality, quantity and package offered by Sungrose Laboratories
determines whether he will consider buying the product or not.
Price denotes the value of the product of service expressed in money. It regulates
business profits, allocates the economic resources for maximum production and distribution..
9
thus it is the prime regulator of production, distribution and consumption of goods. Every
marketing plan involves pricing decisions and hence price is a powerful marketing function.
Decision on pricing are taken on the basis of various factors influencing price,
such as demand for the product, acceptance of product, completion and other exiting market
conditions.
The pricing policy of Sungrose Laboratories Pvt. Ltd., which is basically
responsibility of the marketing department, is a function basically of cost and demand factors.
The price charged must be enabling the Sungrose Laboratories products to
recover the cost of production and also earn a reasonable margin of profit.
ADVERTISING
The term 'advertising' is derived from the Latin word 'advert era' that means to 'turn the
mind to'. In abroad sense, anything that turns attention to an appeal made to a large number of
people. It constitutes a mass approach contrary to the limited approach in the salesmanship of the
salesman. Advertising is employed to promote bright image of the firm in the society.
The Sungrose Laboratories Pvt. Ltd is the only company in Kerala manufacturing '
CLOTAZIMINE' and is the third in India. The other two being multinational competition is
avoided by maintaining the quality of the product
The company concentrates only in institutional or good will type advertisement.
Institutional advertising is designed to promote an idea or the name of the company in the eyes
of public.
Sungrose Laboratories expense on advertising is very meager that does not mean to say
that the company has compromised on advertising. The firm has advertised its product
effectively and adequately. This can easily be judged by the reputation enjoyed by its products
both in domestic and international market.
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SALES PROMOTION
Sales promotion is an important marketing strategy. It is concerned with creation,
application and dissemination of materials and techniques that supplement advertising and
personnel selling. In present days sales promotion activities are viewed more from the angle of
an investment in business rather than expenditure it is a necessary and not merely a luxury or a
fashion.
Sales promotion undoubtedly days rich dividends in the long run. It is responsible for
awakening and stimulating customer demand for a product. Its importance can be judged from its
ability to create demand, even against keen competition.
SALES MANAGEMENT
The sales management is a term applied to the process of distributing the goods form the
producer to the ultimate user or customer. It covers selling, advertising and sales promotion ,
transportation handling, financing and risk taking.
Sales management represents one of the most important functional areas of management
in Sungrose Laboratories Pvt. Ltd. The firm has successfully coordinate activities such as
planning, organizing, direction, motivation, and control applied that sales management for
securing better performance namely reasonable profit through service.
SALES PLANNING
Planning is a managerial function. It invokes the selection from among several
alternatives, enterprises, objectives, policies and procedures, programmers and schedules. As a
part of marketing planning covers sales forecast, sales programmers to achieve sales goal and
marketing planning covers sales forecast, sales programmers to achieve sales goals and
marketing future course of action regarding the marketing and selling of a product. The picture
of sales program in connection with the launching of sales campaign in future is based on
objectives, policies and procedures.
Sungrose Laboratories sales planning is initiated by laying down the objectives desires to
be achieved. The various alternative before it are evaluated and form among those the most
appropriate course of action is selected which may fulfill predetermined goals. Finally the
selected plan of action is chattered out and implemented.
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MAJOR CUSTOMERS OF THE COMPANY
Sungrose Laboratories sell its products to local area and also export their
products. Therefore the company is having local customers and international customers.
Given below are the customers of the company
1. Overseas customers.
2. Local customers.
3. Government supply (central purchasing committee)
4. Outside state customers.
SOME OF THE NATIONAL LEVEL OF CUSTOMERS
1. NOVA MILLENIUM PHARMA, CHENNAI
2. ABL BIO TECHNOLOGIES, CHENNAI
3. NOVEAU MEDICAM, CHENNAI
4. BENZOR PHARMA, COCHIN
5. HOUCHE REMEDYS, THRISSUR
6. ENKA HEALTHCARE, DELHI
These are the customers for capsules in India. The final products are handed to the excise
and they check them for dispatching. CPC is basically their customer. The distribution is by
Road and Rail.
12
CHAPTER II
REVIEW OF LITERATURE
13
REVIEW OF LITERATURE
Product promotion is concerned with any vehicle you employ for getting people to know more
about your offering. Advertising, public relations, point-of-sale displays, and word-of-mouth
promotion are all traditional ways for promotion. Promotion can be seen as a way of closing the
information gap between would-be sellers and would-be buyers. Your choice of a promotional
strategy will be dependent upon your budget, the type of offering you are selling, and availability
of said promotional vehicle - Jed C Jones
Product promotion is the process of informing, persuading and reminding the target audience
about the product on offer. A successful promotional strategy with time gives rise to a brand
wherein some specific attributes of the product are institutionalized in the market. Product
promotion refers to many kinds of incentives and techniques directed towards consumers and
traders with the intention to produce immediate or short-term sales effects-Jason Nyback
Product Promotion as those activities marketers engage in to advertise and sell their
product. Essentially, it’s all about getting the word out to your target audience and presenting
them with an offer and a message that resonates. Generally promotion is communicating with the
public in an attempt to influence them towards buying their product or services.
-Fabiantan
Promotion of a product plays vital role in Marketing Management. Companies can run same
advertisement and promotion campaign side by side, in home market or change them for each
local market- Asjid Bukhari
The word promotion is also used specifically to refer to a particular activity that is
intended to promote the business, product or service. A store might advertise that it is having a
big promotion on certain items, for instance, a business person may refer to and a
promotion.Today's market is full of offers and discounts. Marketers use simple promotion
program to entire customers to buy product and services. While the objective of advertising are
14
long term and generally of brand building, promotion programs often pursue a single goal ie., to
maximize sales in short term.
The present study titled "The effectiveness of Product Promotion" is a study
among the drug tore owners at Mavelikara to identify the effectiveness of product effectively the
promotion methods are successful in the market to attain the organizational goals. The particular
study is being conducted with the sample size of 100 respondents and the secondary data is
collected from the secondary sources.
15
CHAPTER III
RESEARCH METHODOLOGY
16
3.1 Scope of the study
The scope of the study is the following
b) To expand the target market
c) To gain the additional market share and additional revenue.
d) To develop favorable consumer experience with the product.
e) To add extra value to the product and develop franchise.
f) To generate short term cash.
g) In response to competitive move.
3.2 Objectives of the study
The main objectives are divided into two categories.
1. Primary objectives.
To find out the effectiveness of product promotion of Sangrose Laboratories Pvt.
Ltd.
2. Secondary objectives
a) to find out the efforts provided by the company.
b) To find out the frequency of advertisement media.
c) To find out which age group is targeted.
d) To find out whether cash discounts are provided
e) To find out the monthly sales of each drug store.
f) To identify how the representatives visits the drug store to promote their product.
g) To identify how often the representatives visits the doctors in their area canvas for
their product.
17
3.3Limitations of the study
a) The study is only limited to the shops in and around Mavelikara, so the study is
not relevance or applicable to other areas.
b) The Organizational limitations
c) Some information was misleading and some were false.
d) Broad frame work of the study.
3.4 METHODS OF DATA COLLECTION
Primary data
The Primary data are those which are collected afresh and for the first time. In my study I
collected Primary data through questioner method. It was carried out in a structured way.
Secondary data.
The Secondary data are those which have been already collected by someone else and
which have already been passed through the statistical process. In my study I collected
Secondary data from:
a) Company website www.sangroselabs.com
b) Annual report of the company
c) Manuals
d) Brochures
e) Booklets
The important statistical tools used in this study are
Percentage analysis.
Bar Diagram
Pie Chart
Chi-square Test of independence
18
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
19
DATA ANALYSIS AND INTERPRETATION
TABLE 1
TABLE SHOWING AWARENESS ABOUT THE DRUG CLOFAZIMINE
INTERPRETATION
From the above table it is found that 60% of the drug store owners are aware of
the drug and 30% of the drug store owners are not aware about the drug and also 10% are not
respond.
20
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 60 60
NO 30 30
NO OPINION 10 10
TOTAL 100 100
CHART 1
CHART SHOWING AWARENESS ABOUT THE DRUG CLOFAZIMINE
YES NO NO OPINION0
10
20
30
40
50
60
70
NO. OF RESPONDENTS
NO. OF RESPONDENTS
21
TABLE 2
TABLE SHOWING HOW THEY CAME TO KNOW ABOUT THE DRUG
INTERPRETATION
From the above table it shows that 18% of drug store owners are aware about the
drug through advertisements and 60% of drug store owners are aware about the drug through
personnel selling and 12% of drug store owners are aware about the drug through friends and
10% of drug store owners are aware about the drug through others.
22
FACTOR NO. OF RESPONDENTS PERCENTAGE
ADVERTISEMENTS 18 18
PERSONNEL SELLING 60 60
FRIENDS 12 12
OTHERS 10 10
TOTAL 100 100
CHART 2
CHART SHOWING HOW THEY CAME TO KNOW ABOUT THE DRUG
ADVERTIS
EMEN
TS
PERSO
NNEL SE
LLING
FRIEN
DS
OTHER
S0
10
20
30
40
50
60
70
NO. OF RESPONDENTS
NO. OF RESPONDENTS
23
TABLE 3
TABLE SHOWING ON THE BASIS DRUG STORES WILL PURCHASE THE PRODUCT
FACTOR NO. OF RESPONDENTS PERCENTAGE
PRICE 20 20
QUALITY 40 40
AVAILABILITY 24 24
LONGTERM USE 10 10
OTHERS 6 6
TOTAL 100 100
INTERPRETATION
From the above table it is clear that most of the people purchase the product
because of this quality (ie. 40%). It is also found that 24% of people purchase it because its
availability and 20% are prefer its price for purchasing. Only 10% people purchase for its long-
term use and 6% are not respond.
24
CHART 3
CHART SHOWING ON THE BASIS DRUG STORES WILL PURCHASE THE PRODUCT
PRICE QUALITY AVAILABILITY LONGTERM USE
OTHERS0
5
10
15
20
25
30
35
40
45
NO. OF RESPONDENTS
NO. OF RESPONDENTS
25
TABLE 4
TABLE SHOWING THE PERCENTAGE OF THE DRUG TO ALL AGE GROUP
INTERPRETATION
From the above table it is found that 56% of the people are consent that the drug is to all
age group, 40% of the people are not consent and 4% are not respond.
26
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 56 56
NO 40 40
NO OPINION 4 4
TOTAL 100 100
CHART 4
CHART SHOWING THE PERCENTAGE OF THE DRUG TO ALL AGE GROUP
YES NO NO OPINION0
10
20
30
40
50
60
NO. OF RESPONDENTS
NO. OF RESPONDENTS
27
TABLE 5
TABLE SHOWING FOR HOW LONG THE DRUG STORE OWNER WERE DEALING
WITH THE DRUG
FACTOR NO.OF RESPONDENTS PERCENTAGE
1 YEAR 20 20
5 YEAR 20 20
15 YEAR 24 24
MORE THAN 15 YEARS 36 36
TOTAL 100 100
INTERPRETATION
From the above table it is very clear that ,20% of the drug store owners were dealing with the
drug for 1 year and another 20% are also dealing and 24%f the drug store owners are dealing
with 15 years and 36% are dealing with more than 15 years
28
CHART 5
CHART SHOWING FOR HOW LONG THE DRUG STORE OWNER WERE
DEALING WITH THE DRUG
29
1 YEAR 5 YEARS 15 YEARS MORE THAN 15 YEARS
0
5
10
15
20
25
30
35
40
NO. OF RESPONDENTS
NO. OF RESPONDENTS
TABLE 6
TABLE SHOWING THE FREQUENCY OF PUCHASE MADE BY THE DRUG STORE
OWNERS
FACTOR NO. OF RESPONDENTS PERCENTAGE
DAILY 4 4
ONCE IN A WEEK 26 26
TWICE IN A WEEK 50 50
ONCE IN A MONTH 20 20
TOTAL 100 100
30
INTERPRETATION
From the above table it is very clear that ,4% of the drug store owners were purchasing w
the drug daily and another 26% are purchasing once in a week and 50%f the drug store owners
are purchasing twice in a week and 20% purchase once in a month .
CHART 6
CHART SHOWING THE FREQUENCY OF PURCHASE MADE BY THE DRUG STORE
OWNERS
31
DAILY ONCE IN A WEEK
TWICE IN A WEEK
ONCE IN A MONTH
0
5
10
15
20
25
30
35
40
45
50
NO. OF RESPONDENTS
NO. OF RESPONDENTS
TABLE
7
TABLE SHOWING THE AMOUNT OF PURCHASE MADE BY THE DRUG STORES
INTERPRETATION
From the above table it is very clear that, 12% of the drug store owners made a
purchase within Rs. 500, 8% of the drug store owners made in purchase with in Rs.500-1000,
16% of the drug store owners made a purchase above Rs.1000-1500 and 64% of te drug store
owners made a purchase above Rs.1500.
32
FACTOR NO. OF RESPONDENTS PERCENTAGE
1 - 500 12 12
500 - 1000 8 8
1000 - 1500 16 16
ABOVE 1500 64 64
TOTAL 100 100
CHART 7
CHART SHOWING THE AMOUNT OF PURCHASE MADE BY THE DRUG STORES
33
1 - 500 500 - 1000 1000 - 1500 ABOVE 15000
10
20
30
40
50
60
70
NO. OF RESPONDENTS
NO. OF RESPONDENTS
Axis Title
Axis Title
TABLE 8
TABLE SHOWING AVERAGE SALES PER MONTH
FACTOR NO. OF RESPONDENTS PERCENTAGE
1 - 5000 20 20
5000 - 10000 70 70
ABOVE 10000 10 10
TOTAL 100 100
INTERPRETATION
From the above table it is very clear that, 20% of the drug store owner’s average sale per
month below rupees 5,000, 70% of the drug store owner’s average sale between Rs. 5,000 –
10,000 and 10% of the drug. store owner’s average sale is above rupees 10,000.
34
CHART 8
CHART SHOWING AVERAGE SALES PER MONTH
35
NO. OF RESPONDENTS
Jan-005000 - 10000ABOVE 10000
TABLE 9
TABLE SHOWING DISPLAY OF GOODS AT DRUG STORE
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 76 76
NO 16 16
NO OPINION 8 8
TOTAL 100 100
INTERPRETATION
From the above table it is very clear that, 76% of the drug store owners say that the
manufacturer is displaying the product availability at their stores, 16% of the drug store owners
36
say that the manufacturer is not displaying the product availability at their stores and 8% are not
responded.
37
CHART 9
CHART SHOWING DISPLAY OF GOODS AT DRUG STORE
YES NO NO OPINION0
10
20
30
40
50
60
70
80
NO. OF RESPONDENTS
NO. OF RESPONDENTS
38
TABLE 10
TABLE SHOWING SATISFACTORY LEVEL OF DRUG STORE OWNERS
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 60 60
NO 36 36
NO OPINION 4 4
TOTAL 100 100
INTERPRETATION
From the above table it is very clear that, 60% of the drug store owners are satisfied of
the drugs, 36% are not satisfied and 4% are not responded.
39
CHART 10
CHART SHOWING SATISFACTORY LEVEL OF DRUG STORE OWNERS
40
YES NO NO OPINION0
10
20
30
40
50
60
70
NO. OF RESPONDENTS
NO. OF RESPONDENTS
TABLE 11
TABLE SHOWING WHETHER THE DRUG IS COMMONLY PRESCRIBED BY THE
DOCTORS
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 60 60
NO 30 30
NO OPINION 10 10
TOTAL 100 100
INTERPRETATION
From the above table it is very clear that ,16% of the drug store owners say that the drug
is commonly prescribed by the doctors, 30& of the drug store owners say that the drug in not
commonly prescribed and 10% not responded.
41
CHART 11
CHART SHOWING WHETHER THE DRUG IS COMMONLY PRESCRIBED BY THE
DOCTORS
42
PERCENTAGE
YES
NO
NO OPINION
TABLE 12
TABLE SHOWING WHETHER SANGROSE IS PROVIDING ANY DISCOUNTS AT THE
TIME OF DELIVARY
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 80 80
NO 14 14
NO OPINION 6 6
TOTAL 100 100
INTERPRETATION
From the above table it is very clear that ,08% of the drug store owners say that the
manufacturer provides discount at the time of delivery of drugs, 14% of the drug store owners
say that the manufacturer doesn’t provide discount at the time of delivery of drugs.
43
CHART 12
CHART SHOWING WHETHER SANGROSE IS PROVIDING ANY DISCOUNTS AT THE
TIME OF DELIVERY
44
PERCENTAGE
0
10
20
30
40
50
60
70
80
90
YES NO NO OPINION
PERCENTAGE
TABLE
13
TABLE SHOWING GIVING OF MEDICINES WITHOUT DOCTOR'S PRESCRIPTION.
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 0 0
NO 100 100
TOTAL 100 100
INTERPRETATION
From the above table, it is clear that 100% of store owners are say that medicines are not giving
without doctor’s prescription.
45
CHART 13
CHART SHOWING GIVING OF MEDICINES WITHOUT DOCTOR'S PRESCRIPTION
YES
NO
46
TABLE 14
TABLE SHOWING THE OPINION ABOUT THE DISPLAY OF DRUGS MADE BY
SANGROSE
INTERPRETATION
From the above table, it is clear that 50% of the drug store owners are highly satisfied by
the display of drugs made by the manufacturer, 20% of the drug store owners are satisfied by the
display of drugs made by the manufacturer, and 12% of the neutral by the display of drugs made
by the manufacturer, 8% of the drug store owners are dissatisfied by the display of drugs made
by the manufacturer and 10% are highly dissatisfied by the display of drugs made by the
manufacturer.
47
FACTOR NO. OF RESPONDENTS PERCENTAGE
HIGHLY SATISFIED 50 50
SATISFIED 20 20
NEUTRAL 12 12
DISSATISFIED 8 8
HIGHLY DISSATISFIED 10 10
TOTAL 100 100
CHART 14
CHART SHOWING THE OPINION ABOUT THE DISPLAY OF DRUGS MADE BY
SANGROSE
48
0
10
20
30
40
50
60
PERCENTAGE
HIGHLY SATISFIED
SATISFIED
NEUTRAL
DISSATISFIED
HIGHLYDISSATISFIED
TABLE
15
TABLE SHOWING THE DRUG STORE OWNERS SATISFACTORY LEVEL WITH
DISCOUNTS OFFERED BY SANGROSE
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 80 80
NO 16 16
NO OPINION 4 4
TOTAL 100 100
INTERPRETATION
From the above table, it is clear that 80% of the drug store owners are say that the
manufacturer provided discounts, 16% are say that the manufacturer doesn’t provide discount
and 4% are not responded.
49
CHART 15
CHART SHOWING THE DRUG STORE OWNERS SATISFACTORY LEVEL WITH
DISCOUNTS OFFERED BY SANGROSE
50
PERCENTAGE
YES
NO
NO OPINION
TABLE 16
TABLE SHOWING WHETHER SANGROSE IS PROVIDING SPECIAL INCENTIVE PRICE
FOR INCREASING THE SALE OF DRUGS
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 48 48
NO 40 40
NO OPINION 12 12
TOTAL 100 100
INTERPRETATION
From the above table it is very clear that, 48% of the drug store owners say that the
manufacturer provides special incentive price for increasing the sale of drugs, 40% of the drug
51
store owners say that the manufacturer doesn’t provide special incentive price and 12% are not
respond.
52
CHART 16
CHART SHOWING WHETHER SANGROSE IS PROVIDING SPECIAL INCENTIVE PRICE
FOR INCREASING THE SALE OF DRUGS
53
05
101520
253035
404550
YES NO NO OPINION
PERCENTAGE
PERCENTAGE
TABLE 17
FACTOR NO. OF RESPONDENTS PERCENTAGE
VERY HIGH 14 14
HIGH 40 40
MEDIUM 24 24
LOW 18 16
VERY LOW 6 6
TOTAL 100 100
TABLE SHOWING THE FREQUENCY OF ADVERTISEMENT MADE BY SANGROSE
54
INTERPRETATION
From the above table, it is clear that 14% of the drug store owners are say that the
frequency is very high, 40% of the drug store owners say that the frequency of advertisement is
high, 24% of the drug store owners say that the frequency of advertisement is medium, 16% of
the drug store owners say that frequency of advertisement is low and 6% of the drug store
owners say that frequency of advertisement is very low.
55
CHART 17
CHART SHOWING THE FREQUENCY OF ADVERTISEMENT MADE BY SANGROSE
0
5
10
15
20
25
30
35
40
VERYHIGH
MEDIUM VERYLOW
PERCENTAGE
PERCENTAGE
56
TABLE 18
TABLE SHOWING WHETHER THE RUPRASENTATIVES VISITING THE DRUG
STORES
FACTOR NO. OF RESPONDENTS PERCENTAGE
DAILY 24 24
ONCE IN A WEEK 48 48
TWICE IN A WEEK 22 22
ONCE IN A MONTH 6 6
TOTAL 100 100
INTERPRETATION
From the above table, it is clear that 24% of the drug store owners are say that the
manufacturer visit the doctors daily, and 48% of the drug store owners say that the manufacturer
visit the doctors once in a week and 22% of the drug store owners say that the manufacturer visit
the doctors twice in a week, and 6% are say that manufacturer visit the doctors once in a month.
57
CHART 18
CHART SHOWING WHETHER THE RUPRASENTATIVES VISITING THE DRUG
STORES
58
PERCENTAGE
0
10
20
30
40
50
60
DAILY ONCE IN AWEEK
TWICE IN AWEEK
ONCE IN AMONTH
PERCENTAGE
TABLE 19
TABLE SHOWING THE WHETHER THE RUPRASENTATIVES VISITING THE DOCTOR
FACTOR NO. OF RESPONDENTS PERCENTAGE
DAILY 24 24
ONCE IN A WEEK 56 56
TWICE IN A WEEK 14 14
ONCE IN A MONTH 6 6
TOTAL 100 100
INTERPRETATION
From the above table, it is clear that 24% of the drug store owners are say that the
manufacturer visit the doctors daily, and 56% of the drug store owners say that the manufacturer
59
visit the doctors once in a week and 14% of the drug store owners say that the manufacturer visit
the doctors twice in a week, and 6% are say that manufacturer visit the doctors once in a month.
60
CHART 19
CHART SHOWING THE WHETHER THE RUPRASENTATIVES VISITING THE DOCTOR
61
PERCENTAGE
DAILY
ONCE IN A WEEK
TWICE IN A WEEK
ONCE IN A MONTH
TABLE 20
TABLE SHOWING WHETHER DISCOUNT IS PROVIDED AT THE TIME OF PURCHASE
FACTOR NO. OF RESPONDENTS PERCENTAGE
YES 70 70
NO 20 20
NO OPINION 10 10
TOTAL 100 100
INTERPRETATION
From the above table it is clear that 70% of the drug store owners say that discount is provided at
the time of purchase and 20% of the drug store owners say that discount is not provided at the
time of purchase.
62
CHART 20
CHART SHOWING WHETHER DISCOUNT IS PROVIDED AT THE TIME OF PURCHASE
PERCENTAGE
YES
NO
NO OPINION
63
CHI-SQUARE ANALYSIS
CHI-SQUARE TEST-1
1.To find out the relation between advertisement and locality of the drug store
Null hypothesis: H0 There is no significant difference between the advertisement and locality
of the drug store
Alternative hypothesis: H1 There is significant difference between the advertisement and
locality of the drug store
Locality
Advertise
ment
Rural areas Urban areas City areas Total
Very high 3 5 6 14
High 5 15 20 40
Medium 9 10 5 24
Low 6 7 3 16
Very low 3 3 - 6
ssssTotal 26 40 34 100
Expected frequency
3.64 5.6 4.76
10.4 16 13.6
6.24 9.6 8.16
4.10 6.04 5.44
1.56 2.40 2.04
64
CHI- SQUARE TABLE
Sl no O E O-E (O-E)2 (O-E)2/E
1 3 3.64 - .64 .4096 .1125
2 5 5.6 - .6 .36 .0642
3 6 4.74 1.24 1.5376 .3230
4 5 10.4 -5.4 29.16 2.8038
5 15 16 -1 1 .0625
6 20 13.6 6.4 40.96 3.0117
7 9 6.24 2.76 7.6176 1.2207
8 10 9.6 .4 .16 .O166
9 5 8.16 - 3.16 9.9856 1.2237
10 6 4.16 1.84 3.3856 .8138
11 7 6.40 .6 .36 .0562
12 3 5.44 -2.44 5.9536 1.0944
13 3 1.56 1.44 2.0736 1.3292
14 3 2.40 .6 .36 .15
15 - 2.04 -2.04 4.1616 2.04
Total 14.3223
CHI-SQUARE TEST
Level of significance = 5%
Chi-square =∑ (O i –E i) 2/E i
Degrees of freedom =(r-1) (c-1) = (5-1) (3-1)
4 x 2 = 8
i.Calculated value =14.3223
ii.Tabulated value =
iii.Calculated value < Tabulated value
65
Therefore, H0 is accepted
CONCLUSION:
There is no significant difference between the advertisement and locality of the drug
store
66
CHI-SQUARE TEST-2
2.To find the relationship between the amount of purchase of drug and locality of the drug
store
Null hypothesis: H0 There is no significant difference between the amount of purchase of drug
and locality of the drug store
Alternative hypothesis: H1 There is significant difference between the amount of purchase of
drug and locality of the drug store
Locality
Amount
Of purchase
Rural areas Urban areas City areas Total
1-500 2 2 7 12
500-1000 2 2 4 8
1000-1500 3 4 9 16
Above-1500 11 18 35 64
Total 18 27 55 100
Expected frequency:
2.16 3.24 6.6
1.44 2.16 4.4
2.88 4.32 8.8
7.04 17.28 35.2
67
Chi-square table
S.No O E O-E (O-E) 2 (O-E) 2/E
1 2 2.16 -.16 0.0256 0.0118
2 3 3.24 -.24 0.0576 0.0177
3 7 6.6 0.4 0.16 0.0242
4 2 1.44 0.56 0.3136 0.2177
5 2 2.16 -.16 0.0256 0.0118
6 4 4.4 -.4 0.16 0.0363
7 3 2.88 0.12 0.0144 0.005
8 4 4.32 -.32 0.1024 0.0236
9 9 8.8 0.2 0.4 0.0454
10 11 7.04 3.96 15.6816 2.2275
11 18 17.28 0.72 0.5184 0.03
12 35 35.2 -.2 0.4 0.0113
Total 2.6623
CHI-SQUARE TEST
Level of significance = 5%
Chi-square =∑ (O i –E i) 2/E i
Degrees of freedom =(r-1) (c-1) = (4-1) (3-1) =6
i.Calculated value =2.6623
ii.Tabulated value =
iii.Calculated value < Tabulated value
Therefore, H0 is accepted
CONCLUSION:
68
There is no significant difference between the the amount of purchase of drug and
locality of the drug store
69
CHAPTER V
FINDINGS
SUGESSIONS
CONCLUTIONS
FINDINGS
70
1. Majority (60%) of the drug store owners are aware about the drug
2. Majority (60%) of the drug store owners know about the drug through personnel selling
3. 40% of the drug store owners are influenced by the quality of the drug and 20% of the
drug store owners are influenced by the price.
4. Majority (56%) of the drug store owners say that the drugs are not preferable to all age
group
5. Majority (36%) of the drug store owners are dealing with the drugs more than 15 years.
6. Majority (50%) of the drug store owners are purchasing the drugs twice a week
7. Majority (64%) of the drug store owners are purchasing the drug for more than Rs. 1500
in twice a week.
8. Majority (70%) of the sales per month is in Rs.5000 - 10000
9. Majority (76%) of the drug store owners say that there is display of goods made by the
manufacturer.
10. Majority (60%) of the drug store owners satisfied with the display of goods made by the
manufacturer.
11. Majority (60%) of the drug store owners say that the drugs is commonly prescribed by
the doctors.
12. Majority (80%) of the drug store owners say that the manufacturer is providing discounts
at the time of delivery
13. All the respondents say that nobody will purchase the medicines without doctor's
prescriptions.
14. Majority (80%) of the drug store owners are highly satisfied with the display of goods
made by the manufacturer.
15. Majority (80%) of the drug store owners are satisfied with the discounts offered by the
manufacturer
16. Majority (48%) of the drug store owners are agreeing that the manufacturer is providing
special incentives for increasing the sale
17. Majority (40%) of the drug store owners say that the frequency of advertising is high
18. Majority (48%) of the drug store owners are agreeing that the manufacturer visit the shop
once in a week
71
19. Majority (56%) of the drug store owners are agreeing that the manufacturer visit the
doctors once in a week
20. Majority (70%) of the drug store owners say that the manufacturer is offering
SUGGESTIONS
72
The company shall concentrate much more advertisement.
The company shall identify the requirements of the drug store owners.
The company shall give free samples and gifts to the drug store owners.
The company shall target on specific age group
The company shall open small retail stores at important locations
The company shall increase the volume of sale by identifying the requirements of the
drug store owners.
The company shall increase the frequency of visiting the doctors
The company shall provide more discounts on bulk purchase
The company shall improve the quality of the drugs
The company shall improve the incentive pricing at the time of delivery
The company shall increase the display made by the drug store.
73
CONCLUSION
From the study conducted it is concluded that the majority of the drug
store owners are satisfied with the present promotion techniques which is carried out by the
company. The drug store owners are highly aware about the quality of the drug. The company is
mainly concentrating on personnel selling as a promotion technique. The manufacturers are
visiting the drug store and doctors for the improvement of their sales. If they are concentrating
more on media advertisement they can easily capture the market.
74
APPENDICES
75
A STUDY AMONG THE DRUG OWNERS TO IDENTIFY THE
EFFECTIVENESS OF PRODUCT PROMOTION BY SANGROSE
LABORATORIES PVT LTD.
QUESTIONNAIRE
Name :
Place :
Gender:
Age :
1. Are you aware about the drug Clofazimine?
Yes No No opinion
2. How do you know about the drug?
Advertisement Personnel Selling
Friends Others
3. On what basis you will purchase the drug?
Price Quality
Availability Long term Use Others
4. Is it preferable to all age group?
Yes No No opinion
5. For how long are you dealing with the drug?
1 year 5 years
15 years more than 15 years
76
6. What is the frequency of purchase?
Daily Once in a week
Twice in week Once in a month
7. What is the amount of purchase (Rs)?
100 - 500 500 - 1000
1000 - 1500 Above 1500
8. What is average sales of the drug per month?
1 - 5000 5000 - 10000
Above 10000
9. If the manufacturer gives you display goods at your shops?
Yes No No opinion
10. Are you satisfied with the display goods made by the manufacturer?
Yes No No opinion
11. Is the drug commonly prescribed by the doctors?
Yes No No opinion
12. While delivering the samples are they making any discounts?
Yes No No opinion
13. Did you ever give medicines without doctor's prescription?
Yes No No opinion
14. What is your option about the display made by Sangrose at your drug store?
Highly Satisfied Satisfied Neutral
Dissatisfied Highly dissatisfied
77
15. Are you satisfied with the cash discounts offered by Sangrose?
Yes No No opinion
16. Is Sangrose providing special incentives for selling more of Sangrose drugs?
Yes No No opinion
17. What do you think about the frequency of advertisement of Sangrose drugs?
Very high High Medium
Low Very low
18. How often did the manufacturer visit the drug shop?
Daily Once in a week
Twice in a week Once in a month
19. How often did you visit the doctors?
Daily Once in a week
Twice in a week Once in a month
20. Is Sangrose providing any discount price at time of purchasing?
Yes No No opinion
THANK YOU
78
BIBLIOGRAPHY
79
BIBLIOGRAPHY
1. Philip Kotler. "MARKETING MANAGEMENT ”
2. Tapan K. Panda MARKETING MANAGEMENT"
3. C.R. Kothari “RESEARCH METHODOLOGY"
4. Naresh K. Malhotra MARKETING RESEARCH "
5. Donald R. Cooper & Pamela S. Schindler MARKETING RESEARCH "
80