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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report on Summer Training

Submitted to Lovely Professional University

In partial IulIillment oI the
Requirements Ior the award oI Degree oI
Bachelor oI Business Administration

Submitted by.
ARCHIT SHARMA
R1813A12
1O8OO482
BBA-MBA(DUAL INTEGRATED).
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA

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Table of Contents
Contents Page no
Acknowledgement...................................................................................................................2
Executive Summary..................................................3
Introduction....................................4
Company proIile.. ............................... 5
Competitors
analysis.................................... 11-12


EXACUTIVE SUMMARY
The Summer Training Program in BBA is very beneIicial to have practical exposure oI how
things really operate in market. Being a student whowants to mark in marketing Iield, the best
place to gain practical understanding oI marketing is to do summer training in the marketing
department oI Pharmaceutical Industry which can be regarded as one oI the most dynamic
industry in India. I completed the summer training with Seagull Labs India. Which is recognized
one oI the Iastest growing pharmaceutical Companies by ORG-IMS. I am proud to work as an
internee with LaboratePharma and the experience will surely help me in my Iuture assignments
as a marketing proIessional. The absolute guidance and concern oI higher management oI the
staII oI all departments especially the marketing department Iacilitated in making my summer
Training a wonderIul learning experience in all aspects.
Summer training oIIered to me was six weeks was based on marketing project. Through these
projects, I was able to get direct interaction with diIIerent chemists along with staII oI Finance,
Marketing- sales, Production and Logistics, Marketing communications, Administration and
Human Resources Departments oI LaboratePharma.

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Acknowledgement
~o man is indispensable but there are certain mortal without whom the quality work there
suIIers their guidance becomes important in acquiring quality results
I would like to express my deep sense oI gratitude to Mrs. Dogra the director oI Seagull
lavatories oI Mehtpour (branch) and project guide Mr. Choudharyto give me an opportunity to
work in seagull lavatories and who has provided me with the necessary inIormation and also
Ior the support extended out to me in the Completion oI this report and his valuable
suggestion and comments On bringing out this report in the best way possible.

I would like to extend my special thanks to all the executives oI Seagull lavatories Pvt. Ltd. and
its associates who have helped me directly or indirectly to complete this project work.

I am sincerely thanks to my Iriends to guide me and suggestion during my project work which
inspired me to put in best my eIIorts in the work

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Introduction

The pharmaceutical industry is the world`s largest industry due to worldwide revenues
approximately US$2.8 trillion. Pharma industry has seen major changes in the recent years that
place new demands on payers, providers and manuIacturers. Customers now demand the same
choice and convenience Irom pharma industry that they Iind in other segment.
Indian Pharmaceutical Industry is poised Ior high consistent growth over the next Iew years,
driven by a multitude oI Iactors. Top Indian Companies like Ranbaxy, DRL CIPLA and Dabur
have already established their presence.

The pharmaceutical industry is a knowledge driven industry and is heavily dependent on
Research and Development Ior new products and growth. However, basic research (Discovering
new molecules) is a time consuming and expensive process and is thus, Dominated by large
global multinationals.

Indian companies have only recently entered the area. The Indian pharmaceutical industry came
into existence in 1901, when Bengal Chemical & Pharmaceutical Company started its maiden
operation in Calcutta. The next Iew decades saw the pharmaceutical industry moving through
several phases, largely in accordance with government policies. Commencing with repackaging
and preparation oI Iormulations Irom imported bulk drugs, the Indian industry has moved on to
become a net Ioreign exchange earner, and has been able to underline its presence in the global
pharmaceutical arena as one oI the top 35 drug producers worldwide. Currently, there are more
than 2,400 registered pharmaceutical producers in India.

There are 24,000 licensed pharmaceutical companies. OI the 465 bulk drugs used in India,
approximately 425 are manuIactured here. India has more drug-manuIacturing Iacilities that have
been approved by the U.S. Food and Drug Administration than any country other than the US.
Indian generics companies supply 84 oI the AIDS drugs that Doctors without Borders uses to
treat 60,000 patients in more than 30 countries.

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SEAGULL PHARMA ABOUT US

Seagull Pharma a more than two decade old pharmaceutical manuIacturing & marketing
company is today a well established company having its marketing operations spanning
a large part oI the country.

Most modern production Iacilities are equipped to manuIacture tablets (coated, uncoated,
sustained released, chewable and dispersible), capsules &dermatologicals(ointments & lotions).

Team at the production Iacilities is constantly studying and upgrading the processes and staII
competency as required by advancements in the pharma industry. Quality Control Department is
equipped with modern equipments to carry out quality checks Irom raw material to packing
materials upto Iinished products.

To double check the quality assurance oI our products we establish the quality through
government approved external quality control agencies.

SelI liIe and stability studies are conducted on all products produced by us. The production team
at their Iacilities undergo regular health checks. Regular training programs are conducted to
upgrade their skills. All this helps us to lay down our quality parameters which are well above
the acceptable norms.

The company`s research and development team is constantly carrying out study to understand
the requirements and carry out developments to best suit the needs. Most oI the products are
manuIactured at our manuIacturing Iacilities in Bhiwadi 60 km Irom Delhi, the Capital oI
India. The Iactories are most modern and certiIied as per GMP/WHO GMP Standards. Some oI
the company`s products are also contract manuIactured by its business associates who also have
state oI the art manuIacturing Iacilities and are also WHP GMP certiIied.

All products that reach our clients through us are supervised and quality checked at every stage.
We at Seagull believe that every manuIacturing endeavor must not only yield optimum customer
satisIaction but also IulIill the customers ever changing needs.

A large part oI the company`s business involves ethical marketing oI prescription products.

Products are extensively prescribed all over the country and we ensure satisIactory customer
service in terms oI availability. They cover almost whole oI India and epal with various
distribution centers Irom where a network oI 300 wholesalers are supplied. They have a well
developed proIessional team oI 150 persons covering all important cities and towns.

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METHODOLOGY
Primary data collection: I collected all the data by personal interviews oI Chemists oI Leading
ursing Homes and chemists oI diIIerent locations oI Himachal including: Bobby Hospital,
Sharma ursing home, Rvindra Hospital, Goyal Hospital, Sanjeevni Hospital. And Irom the
company web-site and Irom my project guide Mr. choudhary and Lhe execuLlves of Seagull
lavaLorles vL LLd and lLs assoclaLes

S.No. Name of the Chemist shop Contact No.

1. Guru anak (Una) 9817513383
2. Creative Pharma near Bus stand(Amb) 9418365908
3. Lovely Medical hall (Dada Siba) 9816390674
4. Rajeev Medical store (Dehra) 9817300177
5. Suda Medical store (kangra) 9625762807
6. Akash Medical store (Seul) 9418494862

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HISTORY


Mr. D. Dogra Mr. S. Malhotra
Director Director


Seagull was incorporated in 1981 as Seagull Labs (I) Pvt. Ltd. to undertake marketing oI
Pharmaceutical Formulations. In 1985, Seagull Pharmaceuticals Pvt. Ltd. was incorporated to
give Iocused attention tomanuIacturing activities. The Iounding members Mr. S. Malhotra and
Mr. D. Dogra along with the employees have made the company what it is today and carved a
niche in the minds oI the Medical ProIessionals.
From the very onset Seagull brands like Capex Expectorant and Aglow-Fe started enjoying
major market shares so much so that well established multinationals were Iorced to monitor the
growth oI their brands in the same segment. Since then the company's synergistic approach has
resulted in remarkable success in manuIacturing and marketing oI a wide range oI products in
various therapeutic segment comprising analgesic, anti-inIlammatory drugs, nutritional products,
products Ior respiratory segment and antibiotics.
In 1989, Seagull started its Ayurvedic unit and commenced manuIacturing with the development
oI three ointments Zerub (rubeIacient), ZeIort (arthritis) and Xorexin (bed sores).

VISION

Our vision is to provide quality products & quality service.

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COMPANY`S VALUES

Creativity leads to innovation which lays the Ioundation Ior success.
Innovative and updated technology to produce the best quality products.
Utmost the employees, customers and society we live in.
Respect the employees and their contribution at workplace
Committed to the highest standards oI ethics and integrity.
Trust in the relationship with clients.

COMPA DEAL I

Herbal productslike laxatives, RubiIacients, Uterine tonic, Glactogogue, Baby oil, Hair oil and
many more.
Allopathic products portIolio Ior Respiratory, Gastroenterology, Gynaecology, eutraceuticals,
Dentistry, Pediatrics and Orthopedics.

Interested in

Having Marketing tie ups Ior research based products, Biotech products, and to be a partner in R
& D Activity.

Supply

Formulations Bulk drugs and Herbal Extracts at competitive prices.

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Seagull Trading

Seagull aims to be single stop solution to all hospitals needs oI its clients .ThereIore Seagull has
tied up with superior producers in the surgical and medical disposable sectors such as Disposable
syringes, needles, sterile gloves, I.V. set, I.V cannula, Ieeding tube, scalp vein set and
examination gloves etc.

All products that reach to their clients through us are supervised and quality checked at every
stage. We at Seagull believe that every manuIacturing endeavour must not only yield optimum
customer satisIaction but also IulIil the customers ever changing needs.

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PRODUCTION

Their most modern production Iacilities are equipped to manuIacture tablets (coated, uncoated,
sustained released, chewable and dispersibles), capsules (soIt and hard), dermatologicals
(ointment and lotions), liquids and injectables.

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Seagull has two production Iacilities located at Bhiwadi (Rajasthan), an industrial township in
the vicinity oI Delhi - the capital oI India.
These production units are laid out according to ! regulations is shortly awaiting the
approvals.
The production units are manned by trained production staII and senior supervisory staII Ior
stringent production check and in-process controls.

Production Capacities per annum (in millions)


Tablets 600
Capsules 150
Ointments 20
Liquids 10
Injectables 50

Seagull is Iast moving towards doubling the capacities by the year 2002.

Their team at the production Iacilities is constantly studying and upgrading the processes and
staII competency as required by advancements in the pharma industry.

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PRODUCTS

Prescription Medicines

Aglow Fe Capsule




Alertac Tablet
Neogat- 400
Tablet

Gravimem Injection



Exports


Duozid-Forte
Tablet

Fertile Tablet



Fertile-M
Tablet
Ibustal Cream


Painrub Gel

Their entry into the export market received a very Iavorable response Irom overseas buyers
primarily because oI their product quality, presentation and time bound delivery.




At present Seagull is exporting to:

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South America
U.K.
Nigeria
Ghana
Afghanistan
Myanmar
Philippines
Syria
Nepal
Brands are currently under registrations in various countries. The company holds Iree sales
certiIicate and GMP certiIicate which are required by their Ioreign buyers.

They export their products under their own label as well as under neutral label depending upon
the client requirement
























Marketing Process and its Challenges

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Seagull lavatories have successIully deployed a excess oIstrategies to target the various customer
types, recent business and customer trends arecreating new challenges and opportunities Ior
increasing proIitability. In thepharmaceutical and healthcare industries, a complex web oI
decision-makers determinesthe nature oI the transaction (prescription) Ior which direct customer
oI pharma industry(doctor) is responsible. Essentially, the end-user (patient) consumes a product
and paysthe cost.
Use oI medical representatives Ior marketing products to physicians and to exert someInIluence
over others in the hierarchy oI decision makers has been a time-tested tradition.Typically, sales
Iorce expense comprises an estimated 15 percent to 20 percent oI annualproduct revenues, the
largest line item on the balance sheet. Despite this other expense,the industry is still plagued
some very serious strategic and operational level issues.From organizational perspective the most
well-known perIormance related issues are enlisted below:

Increased competition and shortened window oI opportunity.
Low level oI customer knowledge (Doctors, Retailers, Wholesalers).
Poor customer acquisition, development and retention strategies.
Varying customer perception.
The number and the quality oI medical representatives
Very high territory development costs.
High training and re-training costs oI sales personnel.
Very high attrition rate oI the sales personnel.
Busy doctors giving less time Ior sales calls.
Poor territory knowledge in terms oI business value at medical representative
level.
Unclear value oI prescription Irom each doctor in the list oI each sales person.
Unknown value oI revenue Irom each retailer in the territory
Virtually no mechanism oI sales Iorecasting Irom Iield sales level, leading to
huge deviations.
Absence oI analysis on the amount oI time invested on proIitable and not-soproIitable.
customers and lack oI time-share planning towards developing
customer base Ior Iuture markets.
Manual and cumbersome administrative systems and processes designed
which don't Iacilitate optimal eIIiciency levels in sales teams.
and many more....







How to Access Market

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Potential exporters should contact established importers or processors in order to have their
Sample evaluated and to obtain advice on the possibilities Ior penetrating a given market. The
current market Ior Seagull Lavatories is not short oI supplies, and all things considered,
newcompanies seeking entry will have to compete with traditional suppliers. The only way
topenetrate the market is to oIIer products oI consistently high quality. Clean products oIassured
quality, good appearance, and iI possible, with properties distinguishing them Iromtheir
competitors (Ilavor, color, essential oil content) can secure a place in European market.They can
be sold at a premium price over products Irom other origins. The Seagulls consuming countries
in Europe are quality conscious. Their quality requirements are more stringent,particularly with
respect to cleanliness and chemical contamination.

A. Domestic

Investigate the industries using Seagulls in their Iinal products
Contact established traders and manuIacturers
Acquire market inIormation on price, demand, quantity, supply season (peak season,
leanseason, etc)

B. International

Approach traders/importers/end-users by contacts (mail, electronic media, internet)
Send oIIer with representative samples
Get sample evaluated and obtain advice Irom the importer Ior quality & quantity
egotiate contract on the basis oI quantity delivered, purchasing price, mode oI delivery
And payment



THE COMPETITION


The level oI competition in very high in Acute segment on day to day basis however the
Degree oI competition in not as much as high in Chronic therapy area on day to day basis.
As doctor has to prescribe drug Ior a long time in chronic cases and patient is suppose to
consume it without any change oI brand. While in acute cases doctor is changing brands
on day to day basis.


Current Distribution Chain in India

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The Indian pharmaceutical industry is continuing its high growth rate at 13 Ior the last six
years. From Ioreign control, to domestic grass-roots growth, the Indian pharmaceutical segment
has evolved over the last three decades. According to BioPlan Associate`s recent report,
Advances in Biopharmaceutical Technology in India, the Indian pharmaceutical industry has the
potential to reach $25 billion by 2010.
This rapid growth has yet to create radical changes in the Indian distribution system. The main
hurdles include the highly Iragmented nature oI the distribution network, limited advancement in
regulatory reIorms, and presence oI strong resistance Irom lobbies oI traders involved in the
supply chain oI pharmaceutical products. India`s current distribution situation creates greater
risks Ior biotech products, which require careIul climate control throughout their transit period.
The lack oI awareness toward the importance oI these requirements makes biotherapeutics even
more vulnerable to spoilage during distribution. Moreover, the inIrastructure Ior coldchain
management is still developing in India. This situation has Iorced both pharmaceutical and
biotech companies to consider alternate distribution systems. These attempts, however, have
Iaced severe resistance by the lobbies oI traders involved in the channel.

Indian distribution
System: The Current State

India is a geographically diverse country with extreme climates that make distribution critical
Iunction. The long channel oI distribution and high incidence incadenceoI brand substitution
makes it mandatoryIor a company to make all its stock keeping units(SKUs) available at all
levels at all times. In India,most brands have generic versions oI drugs and retailers can usually
obtain higher margins withgenerics than Ior branded products. To reducerisks oI substitution,
innovator companies mustmake sure their products are made available tothe stockiest and retail
shops.Drug distribution in India has witnessed aparadigm shiIt. BeIore 1990,
pharmaceuticalcompanies used a diIIerent distribution system, in which they established their
own depots andwarehouses that now have been replaced byclearing and Iorwarding agents
(CFAs).

Theseorganizations are primarily responsible Iormaintaining storage (stock) oI the
company`sproducts and Iorwarding SKUs to the stockiest on request. Most companies keep 13
CFAs ineach Indian state. On an average, a companymay work with a total oI 2535 CFAs.
Unlikea CFA that can handle the stock oI one company,a stockiest (distributor) can
simultaneouslyhandle more than one company (usually, 515depending on the city area), and
may go up toeven 30 50 diIIerent manuIacturers. The stockiest,in turn, aIter 3045 days (a
typical creditor time limit) pays Ior the products directly inthe name oI the pharmaceutical
company. TheCFAs are paid by the company yearly, once ortwice, on a basis oI the percentage
oI total turnoveroI products.In above Figure shows how a manuIactured productpasses through
the company-owned central warehouse,which supplies it to the CFA or super stockiest.From the
CFA the stocks are supplied either tothe stockiest, sub-stockiest, or hospitals. The retailpharmacy
obtains products Irom the stockiest or

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sub-stockiest through whom it Iinally reaches theconsumers (patients). Certain small

manuIacturersdirectly supply the drugs to the super stockiest.

Despite the rapid increase in thenumber oI stockiest and pharmacies,there has not been a
proportionalincrease in the volume oIprescriptions distributed. Thus, theeIIiciency oI the current
systemhas clearly not been demonstrated.Further, it is estimated that morethan three-IiIths oI
Indians still donot have access to modern medicines.This clearly shows that therural market is
largely unattendedand untapped
Large Untapped Rural Market

The growth oI institutional sales hadlittle impact on the accessibility oImedicine in rural areas,
accordingto an analysis by the Indian RetailDruggists and Chemists Association.
A large proportion oI the rural populationstill does not have access toproper medication and the
situationmay take long to improve. Ruralareas contribute around 21 to the total pharmaceutical
market. In200607, the rural pharmaceuticalmarket was estimated at around $1.4billion. early
70 oI India`s populationlives in rural areas where healthcareinIrastructure is poor.
Withincreasing rural household incomes,the rural market is becoming moreattractive. According
to estimatesby the Planning Commission, ruralhouseholds now spend 12 oI theirincome on
healthcare.


Value Added Tax (VAT) Impact
With the introduction oI VAT,medicine prices have been standardizedand price discrimination,in
which diIIerent states pay diIIerentprices Ior the same products,has reduced. VAT has also
helpedreduce the illegal interstate transIer oI goods and the unethical interstatetrade Ior higher
margins. Perthe new rules, sales tax is leviedat each stage oI value additionand credit Ior the tax
paid on theinputs can be obtained.

Futures challenges

Pharmaceutical companies in Indiahave realized the importance oISCM and are aggressively
lookingIor ways to improve the costs associatedwith SCM. Distribution in
India is proportionally much morecostly than it is in the US or EU.The companies, which have
spent asmuch as one-third oI their revenuestoward Iinancing their supply-chainoperations,
recognize that the costoI logistics is very high in India. In US and EU, the expenditure on
SCMalone is perhaps 2, whereas inIndia it averages 46 oI total sales.Its mainlybecause in
India the cost oI drugs isvery low compared to the developed markets.Taking into
considerationthe poor inIrastructure and extreme geographic conditions, it is diIIicultto curtail
the cost involved in SCM.

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Long-ChannelInventory Management

The multilayered distribution channeland lobbying at all layers hasbeen successIul at preventing
pharmaceuticalcompanies Irom bringingin signiIicant reIorms towardhigher trade margins, and
at bypassingthe multiple distribution layersto reach customers directly. Becausepharmaceutical
companies do nothave direct access to retailers` dataon sales (tertiary sales), most
pharmaceuticalcompanies depend onsockets` sales data to monitor sales(secondary sales). The
primary saleinvolves transIerring stock Irom thecentral warehouse to its CFA. Themedical
representatives are givenpredeIined sales targets. To meetthese targets they push inventoryon the
stockiest to levels that exceed the actual demand. When the next level oI sale does not take place,
thestockiest will either return goods tothe company or the stock expires.

Increasing Competition between Wholesalers and Retailers

Today, with so many mergers andacquisitions in the Indian pharmaceuticalindustry, the
numberoI stockiest Ior each company hasincreased. ow two stockiest oI thesame company may
be competingagainst each other. Retailerstake advantage oI this situation byprolonging the credit
period andasking Ior more discounts, whichhas an adverse eIIect on stockiest,because they have
to complywith the retailers.

International Competitivenessand Cold-Chain Management

Indian pharmaceutical companies areincreasingly seeking opportunities tosupply drugs to the
world market.More developed cold-chain managementpractices will be required toachieve this
goal. This is one oI themajor challenges Iaced by the industry iI they are to retain product
qualityduring shipment. Companies likeEli Lilly in India have implementedinitiatives such as
having their ownvehicles equipped with cold-chainmanagement systems. Other companiessuch
as World Courier havedeveloped cold-chain managementmodels to help pharmaceutical
companiesmaintain the cold chain.

Conclusion
There can be various ways through which a business organization can achieve success in the
market, but all those ways can be comprised into as above, then it can be rightly said that it
revolves speciIically around three parties or more; the triangular linkages or the relationship
between these three parties (company, customers and competitors) determine the success and
Iailure oI business organization.ManuIacturers must ensure that their drug reaches customerswith
uncompromised quality.
InIndia, because manuIacturers donot retain control over the multilayered distribution
system,the cold-chain management processcontinues to be diIIicult andexpensive. However,
manuIacturersare increasingly realizing theimportance oI an eIIective distribution system, all the
way to theend-customer. Coping with thechallenges oI streamlining the systemsin India will
ultimately beneIitthe patient and the healthcaresystem.