Presented By:

Varun
Viral
Milan
Paresh
Kirit
Core strength of Indian
Industry
Disease pattern
Alternative medicine
Patents
Doctors
Health insurance
Healthcare infrastructure
Information technology
CHANGING FACE OF INDIAN PHARMA

MNC-Domestic MNC-Domestic
Competition Collaboration
 Growth in disposable incomes & the
number of middle-class households
RETAIL PHARMACEUTICAL MARKET IN INDIA
 Expansion of medical infrastructure
20
 Greater penetration of health insurance US $ billion

 Rising prevalence of chronic diseases

 Adoption of product patents 4.6 6.1

3.4 3.9
 Aggressive market penetration

 Debut of organized retail chains 2000 2002 2004 2006 2015

Source: India Pharma 2015,

McKinsey & Co
 Threat of New Entrants
•Very low Barrier to entry
•Government polices
supportive for entry but
price regulation exists.

Suppliers’ Bargaining •Economies of scale exists Buyers’ Bargaining

Power
Power
Volume benefit occur •Proprietary technology and
product will exist after 2005 •End consumers do not
Inputs standard, Intensity of Rivalry among have bargaining power
available locally existing competitors •Brand identity exists
Numerous suppliers •Lower fixed cost and high but It’s in the hands of
switching cost low working capital. influencer (Doctors)

Suppliers can go for •Highly competitive •Rice sensitivity is less

forward integration
•Top five players have mere
•Highly fragmented
Raw material cost 18% of market share
•Duplicate medicines market, so buyer
constitute more than concentration v/s
50% of the total industry is low
expenses Pressure from Substitute
Products
•No substitute for the
medicines
•Biotechnology is a threat to
1. Product- Portfolio related
The ability to be the first to enter the market
New product for existing Geographies and Existing Products for
New Geographies
Right kind of portfolio mix as per the prevalent disease pattern
Right positioning

2. Well- trained sales force

3. Integration to widen business opportunity

4. R & D effort to provide competitive advantage

5. Information technology to derive cost advantage & to be

customer responsive
6. Good manufacturing practices to provide
competitive advantage in terms of quality

7. Strong over-the-counter(OTC) brands

8. Exports- allopathic & Ayurvedic products

9. Strategic Alliance & Acquisitions

10. Business Design & Strategy

 Methods Awareness Comprehension Conviction Action

Journal advertising 1 2 2 2
Direct mailing, couriers 1 1 2 2

Promotional trials 1 1 2 3
Conferences and symposia 1 1 2 3
Clinical trials 4 2 2 1
Samples 1 4 4 1
Gifts 1 4 4 1
Newspaper advertisement 1 2 4 2
Free stand-alone 1 1 1 3
supplements
Telemarketing 1 2 4 4
Conference videos 1 1 1 3
Video Magazines 1 2 3 4
Audio cassettes - - - -
Television 1 4 2 1
Group detailing 1 2 2 4

1-Most Useful; 2-Useful; 3-Not Useful; 4-Least Useful

High Employee turnover compare to other sectors
retention Strategies (Mfg. & Mkt.)
Employee Development Program