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A PROJECT REPORT ON UNDERSTANDING OF SALES AND MARKETING OF GLENMARK PRODUCTS

SUBMITTED BY MAHESH SHERKHANE

UNDER THE GUIDANCE OF Dr. S. Riasudeen

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTERS IN BUSINESS ADMINISTRATION

THROUGH

DEPARTMENT OF MANAGEMENT STUDIES, PONDICHERRY UNIVERSITY (2012-14)

CERTIFICATE

This is to certify that the project entitled Understanding of Sales and Marketing of Glenmark products carried out at Glenmark Pharmaceuticals Ltd., Mumbai, is a bonafied work carried out by Mr. Mahesh Arun Sherkhane, a student of Master of Business Administration (Marketing & Operation) of Department of Management Studies, Pondicherry, towards the partial fulfilment of the Masters of Business Administration degree awarded by Pondicherry University. He has worked under our guidance and direction. This project work has not been earlier submitted to any other institute or University for award of any degree or diploma.

Dr. T. Nambirajan Head of Department DMS, Pondicherry University

Dr. S. Riasudeen Project Guide, DMS, Pondicherry University

CERTIFICATE OF THE PROJECT GUIDE

This is to certify that the project entitled Understanding of Sales and Marketing of Glenmark Products which is being submitted herewith for the award of the degree of Masters of Business Administration of Pondicherry University, is the result of the original research work carried out at Glenmark Pharmaceuticals Ltd., Pune, by Mr. Mahesh Arun Sherkhane, under my supervision and guidance; to the best of my knowledge and belief, the work embodied in this project has not formed earlier, the basis for award of any degree or similar title of this or any other University or examining body.

Place: Pondicherry

Dr. S. Riasudeen Assistant Professor, DMS Pondicherry

Date:

DECLARATION

I undersigned, hereby declare the project entitled Understanding of Sales and Marketing of Glenmark Products carried out at Glenmark Pharmaceuticals Ltd., Mumbai, and submitted by me to the Pondicherry University, in partial fulfilment of the requirements for the award of Masters of Business Administration, under the guidance of Dr. S. Riasudeen is my original work and conclusions drawn therein are based on the material collected by myself.

Place: Pondicherry

Mr. Mahesh A. Sherkhane

Date:

ACKNOWLEDGEMENT
Gratitude is the hardest of emotion to express and often does not find adequate words to convey that entire one feels. It has been my good fortune to come across so many good hearted persons during my project activity. Although it is as good as impossible to include the names of each of them here, I gratefully thank them for their invaluable help and guidance in adding a fund of technical as well as general knowledge. I express my sincere thanks to my project guide Mr. Sameer Gaikwad (HR Manager, Glenmark Pharmaceuticals, Mumbai) not only for guiding me through my project, but also for being my motivator and mentor throughout the project period at Glenmark Pharmaceuticals, Mumbai. He helped me with all the resources and information required for the project and provided me with the practical industrial experience, which will be of immense help for me in my future. I profusely thank my internal guide Ass. Prof. Dr. S. Riasudeen for her precious and timely guidance and suggestions. I also thank HOD of the institute, Prof. Dr. T. Nambirajan for his support. Last but not the least, I express my gratitude towards all those people who directly or indirectly helped me to complete this project. Without support of all those people, completion of this project would not have been possible. Finally I thank God for gifting me this opportunity of working on such unique project.

Mr. Mahesh A. Sherkhane

1. INTRODUCTION

Health is defined both as cause and effect of economic development. Therefore, the pharmaceutical industry is specifically recognized in the UN Millennium Development Goals as an actor that can contribute to economic development. In addition, the pharmaceutical industry provides significant socio-economic benefits to the society through creation of jobs, supply chains, and through community development. The industry also plays an important role in technological innovation, which may reduce costs of economic activity elsewhere in the economy. Players in the pharmaceutical industry include: branded drug manufacturers, generic drug manufacturers, firms developing bio- pharmaceutical products, nonprescription drug manufacturers, firms undertaking contract research. In addition, there are also enablers of the industry such as universities, hospitals and research centers that play a role in R&D activities.

GLOBAL SCENARIO Market Size


Global pharmaceutical market is highly dynamic and is characterised by greater levels of R&D expenditure and extensive regulation of its products. Global pharmaceutical sales are estimated to be US$ 643 billion in 2006, a growth of 7% over the previous year. Sales have grown from US$ 334 billion in 1999 to US$ 643 billion in 2006, witnessing a CAGR of 10%. North America is the major pharmaceutical market accounting for around 48% of global pharmaceutical sales, followed by Europe (30%), Japan (9%). Leading therapy classes in world pharmaceutical market include lipid regulators (with a market share of 5.8%), oncologic (5.7%), respiratory agents (4%), acid pump inhibitors (4%), and anti-diabetics (3.5%).

2. COMPANY PROFILE
Glenmark Pharmaceuticals is a leading pharmaceutical company headquartered in Mumbai, India. The company was incorporated in 1977 by Mr Gracias Saldanha. It manufactures and markets generic formulation products and active pharmaceutical ingredients (API), both in the domestic and international markets. In the formulation business, its business spans segments such as Dermatology, Internal Medicine, Paediatrics, Gynaecology, ENT and Diabetes. It has four manufacturing facilities for formulations and additional three facilities for APIs. These manufacturing facilities are located in the states of Maharashtra, Goa, Himachal Pradesh and Gujarat in India. It operates in 95 countries through its subsidiaries, Glenmark Pharmaceuticals USA, Glenmark Pharmaceuticals UK. Glenmark Pharmaceuticals SA. The company also invests in New Chemical Entity (NCE) research and has in pipeline two drug candidates in phase II trials and four drug candidates that are expected to commence phase I trial in the near future. Glenmark has four manufacturing facilities for formulations and additional three facilities for APIs. These manufacturing facilities are located in the states of Goa, Himachal Pradesh, Gujarat and Maharashtra in India. The company also owns a manufacturing facility in Sao Polo, Brazil. The company registered sales of nearly EUR 141 million in the financial year ending 31 March 2006, which was 30 per cent higher than the previous year. The net profit of the company in FY 2006 stood at EUR 16.38 million. Glenmarks operations are spread across more than 80 markets for formulations business. It supplies APIs to over 45 markets.3 the company has presence in the highly regulated markets of the USA and Europe. It has incorporated subsidiaries in the UK, Switzerland, the USA and Brazil. International business contributed nearly42 per cent to the companys total revenues in FY 2006.

GLENMARK MARKET OVERVIEW


Glenmarks formulations business is currently organized around four regions India, Latin America, Central Eastern Europe and Semi Regulated Markets of Africa or Asia. The formulations business focuses on therapeutic areas viz. dermatology, anti-infective, respiratory, cardiac, diabetes, gynaecology, CNS, and oncology. India is the largest market in terms of revenue for the organization. The formulations business has five manufacturing facilities; three in India and two overseas. These facilities are approved by several regulatory

bodies. The facility at Baddi, Himachal Pradesh, India is also approved by MHRA and USFDA for semi-solids. The overseas facilities are situated in Brazil and the Czech Republic. While the manufacturing facility in Brazil services requirements of the Latin American region, the Czech facility services requirements of the Central Eastern Europe region. Glenmark has also invested in a dedicated R&D facility for formulations development. This R&D centre, situated near Nasik, India is engaged in developing specialty/ branded formulations for global markets.

1.1 GLENMARK PHARMACEUTICALS IN THE EUROPEAN UNION (EU)

Glenmark made a foray into the EU in 2004. Europe, contributing nearly 30 per cent in value terms to the global pharmaceutical market is the key region for the companys international ambitions. The company eyes the generics market which is set to increase in the coming years

1.2 GLENMARK PHARMACEUTICALS IN THE UK Glenmark operates in the UK through its subsidiary, Glenmark Pharmaceuticals (UK) Ltd. that was established in 2004.With an easy access to markets in London, the rest of the UK and the EU, this subsidiary caters to the European API and formulations market. Glenmark is developing generics products for the European market. Glenmarks UK subsidiary is also exploring opportunities for inorganic growth in various European countries. It recently entered into an agreement with Generics UK, a unit of Merck KgaA, Germany, for joint-development, filing and marketing of eight generic dermatological products in Europe.

1.3 GLENMARK PHARMACEUTICALS IN THE AFRICA & MIDDLE EAST

The company has operations in 29 markets in the region. The region has four subsidiaries in Nigeria, South Africa, UAE and Egypt. It also has a representative office in Kenya. All these five countries are focus markets for Glenmark in the Africa and Middle East Region. Over 350 products are sold in this region.

1.4 GLENMARK PHARMACEUTICALS IN THE ASIA

The company has presence in 12 markets in the region with 3 subsidiaries in Philippines, Malaysia and Thailand and 2 branch Offices in Vietnam and Cambodia. Malaysia, Vietnam, Philippines are the key focus market for Glenmark. Presently Malaysia is the largest subsidiary followed by Philippines for the region. More than 30 brands are sold in each of the focus markets and over 400 products are registered in the region.

1.5 GLENMARK PHARMACEUTICALS IN THE RUSSIA


Russia is the largest subsidiary in the region and the other key markets are Ukraine, Uzbekistan and Kazakhstan. In April 2006, Glenmark established its wholly-owned Russian subsidiary, Glenmark Impex and started full commercial operations, importing products, sales, distribution and marketing. The company has a class A warehouse,

on the outskirts of Moscow and sells to all major national distributors in Russia. Over 35 products are being sold in the region.

1.6 GLENMARK RMACEUTICALS IN THE INDIA

The India Formulations business is segregated into various divisions with focus on specific franchises. This move has benefited the business as it has increased the reach and relationship-building activities with associated practitioners/specialist. The various divisions and their product lists are mentioned below.

Glenmark is the main division of Glenmark Pharmaceuticals Ltd. focused on

Dermatological and includes flagship brands like Candid Candid B Formed in April 2005, this division has been constituted as a multi-specialty division. Its focus areas encompass internal medicine paediatrics, orthopaedics and surgeons.

Gracewell therapeutic

strives options

to in

bring the

innovative field of

Dermatology to attain leadership in key therapeutic areas like dry skin disorders, acne management and alopecia. Integrace has redefined milestones in the Orthopaedic and the Intensive care arena.

This division focuses on diabetes and related complications. Healtheon has led the industry with many first time launches in India

This division caters primarily to the cardiology therapy group.

Launched in July 2006 this division has been constituted to provide quality products and services to individuals suffering from cancer. Launched in April 2008 this division has been constituted with a view to strengthen presence in the critical care segment by providing a one stop shop for all critical care anti-biotic. G&G stands for Glenmark & Gynaecology, a new division committed to nurturing woman health through dedicated customer & patient centric services. The endeavour of the division is to partner the fraternity in creating awareness on women health and provide quality & novel product for better therapy

management. This division primarily focuses on

Government Tender Contracts.

This division is formed to address the needs & requirements of family physicians, ENT and includes gold standards formulations with focus on quality and affordability of products. Gracewell specialized Speciallty is dedicated therapies. for Its

dermatological

mission is to carve a niche in high end cosmetologicals & Dermatological.

KEY THERAUPTIC SEGMENTS

MARKET STRATEGIC FOCUS

VISION AND VALUES OF GLENMARK


Our Vision To emerge as a leading integrated research based global pharmaceutical company. Our Values Achievement We value achievement of objectives and consistently strive towards our Vision, with perseverance. Respect We respect all our stakeholders. Knowledge We value knowledge such that it empowers our people to find innovative solutions to manage change

OBJECTIVES OF PROJECT WORK


To analyze the market value of the product. To analyze the company image in the market. To analyze the marketing field in the pharmaceutical sector. To check the awareness about Glenmark products at chemists level To find out the factors affecting the stocking and selling decision of chemists To convince the chemists to stock and sell the product To carry out competitor analysis for Glenmark products in Mumbai region To find out the effectiveness of marketing communication of Glenmark To find out the basis of acceptance of the product by the customer For the evaluation of the product. To provide Healthcare representatives with the market and medical (anatomy, physiology, pathology and pharmacology) knowledge required under the proposed Marketing Code of Practice for Marketing of Healthcare Products.

RESEARCH METHODOLOGY

Fields that were covered in this study: Products popularity in the market. Products efficacy compared to other companys products. Products results. Products limitations. Products advantages. Products side effects. Magnitude of these side effects. Products competitors in the market. Patient and society demands for the product. Factors that affect the prescribing behavior of the physician.

To get information about above mentioned points one structured questionnaire was prepared which consist of open ended as well as close ended questions with regard the information that was sought for the carrying the project. The questionnaire was prepared for one type of target population i.e. chemists.

RESEARCH DESIGN Since source of secondary data directly relevant were scares. It was decided that the analysis had to be primary data analysis, collected directly from chemists. The survey method was chosen to be shop to shop Personal Interview survey.

The research could be classified as a descriptive research (conclusive) due to availability of knowledge of specific problems. It was aimed to get an idea about the awareness and availability of our product.

CONCLUSION
In all aspect, it is really knowledgeable project for the understanding of marketing and sales of Glenmark products. After working over the project I came to know that Glenmark is market leader and in strong position in many molecules in Mumbai along with this there should be need to pay their attention over some of the molecules to grab the market position. There are many global competitors in the market and they have good share in many molecules. Glenmark comes under the categories of top Indian pharmaceutical companies along with companies like Ranbaxy, Mankind, Cipla, FDC, Lupin etc. Along with these top competitors from market company also facing tough competition from other companies. There were some limitations on my work area in spite of these I completed this project with the right guidance of my mentor and support of retailers in Mumbai.

RECOMMENDATION
From the data representation and interpretation, I conclude and recommended following points,

In order to capture the market share in Mumbai region, Glenmark Mileus division should try to make more calls at regular intervals to Chemist as well as prescriber. Chemists play important role in final selling of the product.

Good and formal relationship of Medical representative with prescriber is very important in increase market share of company. To capture more market share Glenmark should do market survey of prescribers to get an idea about their practise and habit of prescription. To capture more market share Glenmark should focus on more and more consultant as well as General Physician having more practises. Slight compromise with the pricing of these drugs should be made and it should be made sown somewhere to leading brands. Distribution network should be maintained all over in Mumbai region. Manger should be visit with trainee Medical Representative at regular interval to create to good relation with prescribers as well as chemists. Replacement of the expired product must be offered to chemists which will help company to improve loyalty about their products among chemists.

GLENMARK PHARMACEUTICALS LTD.

GLENMARK PHARMACEUTICALS LTD.

LIMITATIONS OF THE STUDY


Non co-operative behaviour of the chemists. The chemists shop, those were around the hospitals and medical institutions avoid telling the prescribers name. All the things are based on the response given by the respondent so any false information from respondent could make the actual result wrong. Some chemists didnt have enough time to give the response. Lack of information about chemists and doctors in survey area.

GLENMARK PHARMACEUTICALS LTD.