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Critical Analysis of Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry A THESIS Submitted for the Award of Ph.D. degree of PACIFIC ACADEMY OF HIGHER EDUCATION AND RESEARCH UNIVERSITY in the Faculty of Management Studies By Ruchi Sharma Under the Supervision of Prof. Ashok Kumar Jetawat FACULTY OF MANAGEMENT STUDIES PAHER UNIVERSITY UDAIPUR (Raj) – 313001 2014 1

Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

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Pharmaceutical Industry is regulated by the production, distribution, selling and the marketing of the products or services which directly or indirectly includes medical, diagnostic and healthcare.It is regulated by economical, political and administrative authority to manage at all levels. So, the industry is governed by both the public and private sector. Therefore innovation is done in various pharma stakeholder and is needed in chronic and acute therapeutic segment. For more details please visit www.iicecollege.com

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Page 1: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Critical Analysis of Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

  

A THESISSubmitted for the Award of Ph.D. degree of

 

PACIFIC ACADEMY OF HIGHER EDUCATION AND RESEARCH UNIVERSITY 

 

in the Faculty of Management Studies

 By

Ruchi Sharma

Under the Supervision of

Prof. Ashok Kumar Jetawat

FACULTY OF MANAGEMENT STUDIESPAHER UNIVERSITY

 

UDAIPUR (Raj) – 313001 

2014 1

Page 2: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Innovative Marketing Practices for Pharmaceutical Industries

Pharmaceutical Industry is regulated by the production,

distribution, selling and the marketing of the products or services which

directly or indirectly includes medical, diagnostic and healthcare.

It is regulated by economical, political and administrative authority

to manage at all levels. So, the industry is governed by both the public and

private sector. Therefore innovation is done in various pharma stakeholder

and is needed in chronic and acute therapeutic segment.

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Page 3: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Indian Pharmaceutical Industry

• The Indian Pharmaceutical industry is divided in the organized and unorganized segments with more than 10,000 manufacturers.

• It manufactures 23% bulk drugs that are active pharmaceutical ingredient and 77% formulations.

• Institutional clients include government hospitals, Indian defense service and private hospital so the scope of strategies is not limited to private companies but has been also done in the public pharmaceutical sectors.

• Challenges which needs to be met are dual disease burden, lack of infrastructure and manpower.

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Page 4: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Objectives

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Page 5: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Development in Public Healthcare

• The Government has launched the National Rural Health Mission in 2005 to provide healthcare services to people and has increased the budget on healthcare to 2-3 per cent of GDP from 0.9 per cent of GDP in 2012.

• Practices like setting feasible and Good Laboratory Practices, Biological Laboratories in Public-Private Partnership Mode are being planned by the government.

• Besides this Government has initiated various PPP projects like Yashaswini Scheme, introduction of mobile health services in Tamil Nadu etc.

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Page 6: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Development in Private Sector

• In private sector, too there has been vast improvement done to provide the customer that is the patient with affordable, accessible and economical quality services to rural and urban masses.

• Few actions have also been taken like training and educating the healthcare staff which include nurses, physician and related person.

• Interventions like encouraging and extending CSR in cross functional formats are exchange programs, short stay certifications in areas like hospital administration, quality controls, specialized nursing care like intensive care and operation theatre.

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Page 7: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Healthcare Industry Breakup

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50%

25%

10%

15%

Percentage of Various Sectors

Hospital

Pharma

Diagnostic

Insurance and Medical equipment

Page 8: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Research Design

• Our research was exploratory in nature. Both quantitative and

qualitative research was conducted.

• Analysis of responses of physician and medical representative was

a part of qualitative research which helped in collecting

quantitative data so structured questionnaire was prepared to

collect primary information.

• The data were collected from both primary and secondary sources. During our primary research, two questionnaires were prepared i.e. appendix 5 and appendix 6.

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Page 9: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Sampling Procedure and Size

A convenient sample of two different groups was selected from Udaipur, Jaipur and NCR region as follows:

Sample Size

Medical Representative 369

Physician 100

The Sample Size of Physician is small due to few limitations.

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Page 10: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Medical Representative's Profile Criteria Number

Age Group

0-30 70

30-40 82

40-50 127

More than 50 90

Total 369

Gender Group

Male 277

Female 92

Total 369

Qualification

B.A. 70

B. Com 82

B. Pharma 127

MBA 90

Total 369

Geographical Area

Bhiwadi 70

Gurgaon 82

Udaipur 127

Jaipur 90

Total 369 10

Page 11: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Physician Profile

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Criteria Number

Age Group

0-30 12

30-40 28

40-50 35

More than 50 25

Total 100

Gender Group

Male 60

Female 40

Total 100

Geographical Area

Gurgaon 60

Udaipur 40

Total 100

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Respondent Sample Profile of Medical Rep.

Name of the Pharmaceutical Company

Respondent

BIOCON 86

PFIZER 98

IDPL 87

CIPLA 98

Total 369

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Page 13: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Respondent Sample Profile of Physician

Name of the Hospital Respondent

FORTIS 20

MEDANTA 15

MAA GAYATRI 15

OTHERS 50

Total 100

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Page 14: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Percentage of Total Responses Received from Pharma Industry

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Page 15: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Percentage of Total Responses Received from Hospitals

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Page 16: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Contributions of Individual Factors for Pharmaceutical Marketing

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Page 17: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Contributions of Individual Factors for Pharmaceutical Marketing

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Page 18: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Marks of Different Ranks

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Different Ranks Weightage Marks

Rank 4 Strongly Agree 4

Rank 3 Agree 3

Rank 2 Disagree 2

Rank 1 S. Disagree 1

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S. No. List of Individual Factors Total Score

1 Promotional Measures 330

2 Unethical Standard 327

3 Use of Technology 323

4 Fastest Growing 319

5Different Marketing

Strategy308

6Non Conventional

Methods263

7 Medical Ethics 259

8 MNC as Challenge 222

List of Individual Factors for Pharmaceutical Marketing:

Page 20: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Chi Square Test for Awareness Level of Medical Rep.

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S. No. HypothesisResult @ 5% level

Ho 1Awareness of promotional tools in pharmaceutical

marketing is independent of gender Rejected

Ho 2Level of implementation of pharmaceutical marketing

in private sector is independent of qualification Accepted

Ho 3Level of positive attitude towards innovation in

private pharmaceutical sector is independent of age Accepted

Ho 4Level of positive attitude towards innovation in public

pharmaceutical sector is independent of gender Accepted

Ho 5Level of awareness of promotional strategy mitigating corruption in pharmaceutical sector is independent of

geographical area.

Accepted

Ho 6Level of employee improvement in performance

towards private pharmaceutical sector is independent of geographical area.

Accepted

Ho 7Level of employee improvement in performance

towards public pharmaceutical sector is independent of age .

Rejected

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Chi Square Test for Awareness Level of Physician

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S. No. HypothesisResult @ 5% level

Ho 8Extent of agree level that India’s pharmaceutical industry is one of

the fastest growing segments of the Indian economy is independent of gender.

Accepted

Ho 9Level of marketing strategy of the pharmaceutical industry should

be different from the marketing strategy in other industrial segments is independent of age.

Accepted

Ho 10Level of awareness of pharmaceutical companies resort to

promotional measures for selling their products is independent of age.

Accepted

Ho 11Unethical standards exist in the promotion of pharmaceutical

products in India is independent of gender. Accepted

Ho 12Entry of multinationals is a major challenge to the domestic players

in the pharmaceutical market and are they ready to face the challenges of the foreign players is independent of area.

Accepted

Ho 13Medical ethics as a major factor in the new distribution channel of

marketing is independent of area. Accepted

Ho 14Non-conventional marketing methods are effective methods of

pharmaceutical marketing in the present ages independent of area. Accepted

Ho 15Technology utilization and innovative distribution channels will help in marketing of pharmaceutical products in India is independent of

gender.Rejected

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Findings

• Various domestic companies are competing with the foreign pharmaceutical firms.

• Pharmaceutical marketing is taught from grass root level to all stakesholders so it shows uniformity in there implementation level.

• Males were more aware about the promotional strategies than females.

• Price approval mechanism takes 6-8 weeks.

• People suggests that the public awareness should be enhanced. 22

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Related Issues

• Intense competition leads to unethical practices.

• Lack of knowledge affects the strategies.

• Varying customer perception leads to huge deviations.

• High attrition rate of the sales personnel occur. 

• Cost affects the production and marketing strategy.

• Time affects business value at medical representative level.

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Conclusion

• We analyzed the performance of various pharmaceutical companies working in few regions of Rajasthan and NCR on the basis of three aspects viz. marketing, human resource and technology.

• Lack of general awareness among people regarding the healthcare services. Very few people are aware of the services provided by pharmaceutical firms. Thus, lack of marketing measures makes the efforts inefficient.

• Various stakesholders are equally responsible for drug promotion. Therefore proper regulations help in lowering cost and providing the masses with best medications.

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Future Potential & Suggestive Framework

• Rational use of medicine can be done by pharmaceutical firms.

• Marketing of drugs should be done by providing the physician with informative ideas about all drugs related to product.

• Proper control on promotion is required and planning to improve its system so that all the documents can be registered and be returned within time and thereby saving the time.

• Access to information by every stakesholder can play very important role in processing, marketing and prescribing drugs.

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Future Potential & Suggestive Framework

• It is important to find the key stakesholders which will help in better communication and can bring consistency in their services thereby reducing loss and dissatisfaction among people.

• The internal, external and interactive dimensions should be considered by the pharmaceutical firms.

• Companies can create differentiation by use of technology and innovations. Senior manager should be more friendly with the employees.

• Market should be analyzed so proper use of ICT is required. So Pharmaceutical community should create online community so as to get right feedback.

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Page 27: Innovative Marketing Practices for Optimization in Selected Pharmaceutical Industry

Thank you!

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