c.paramasivan Problems of wholesale marketing of pharmaceutical products in tirunelveli districtDocument Transcript
Problems of Wholesale Marketing of Pharmaceutical Products in
Dr. C. PARAMASIVAN
Assistant Professor & Research Supervisor,
P. MARI SELVAM
Ph.D (F.T) Research Scholar,
Department of Commerce, Periyar EVR College,
Tiruchirappalli 620 023. Tamilnadu.
Email: firstname.lastname@example.org Cell: 9442384207
The term pharmaceutical means making and selling of drugs and medicines. Medicine
production is not new to India. But the modern drug store was opened by Arabian pharmacists
Baghdad in 754 billion and many more soon began operating throughout the medieval Europe.
During 1920 and 1930,Insulin and Penicillin were manufactured, Switzerland, Germany and
Italy had particularly strong industries, with the UK, US Belgium and Neither lands following
suit. The pharmaceutical industry got underway in earnest form the 1950s, due to the
development of systematic approaches, understanding of human biology (including DNA
sophisticated manufacturing techniques). Numerous new drug were developed during the 1950s,
and large scale produced and marketed through the 1960s.
The pharmaceutical industry in
India meets around 70% of the country’s demand for bulk drugs drug intermediates,
pharmaceutical formulations, chemicals, Tablets, capsules, orals, and injectibles. These are
about 250 large units and about 8000 small scale units in the pharmaceutical industry in India.
This article focused on the problems of wholesale marketing of pharmaceutical products in Tirunelveli
Key words: Pharmaceutical products, Industry, wholesale marketing, problems
The Indian pharmaceutical sector is highly fragmented with more than 20,000 registered
It has expanded drastically in the last two decades.
The leading 250
pharmaceutical companies control 70% of the market with market leader holding nearly 7% of
the market share. It is an extremely fragmented market with severe price competition and
government price control. India provides a wide variety of bulk drugs and exports sophisticated
bulk drugs. The Indian pharmaceutical Industry also need to take advantage of the recent
advances in biotechnology and information technology.
The pharmaceutical formulations
manufacturers in Tamilnadu started in 1979 with aim of manufacturing and marketing quality
pharmaceutical formulations at affordable price.
Statement of the Problem
According to WHO’s latest estimate, around 3.5 percent of new leprosy cases in India –
48000 are women. India also recorded the highest number of children newly directed with
India, which is home to over 700 leper colonies, was also ahead of all other
countries in the number of replace cases at 325. India, with 2.27 billion patients, is among the
top three countries with the highest number of HIV cases. “Cancer Scenario in India is not very
comfortable and every year there is an increment of 10,000 new cancer patients and the number
of total victimns stands at about 25 Lakhs all over”.
Anti-Diabetic drugs and those for
cardiovascular disease are expected to see fastest growth in 2011. The cardiovascular patients
will increase to 251 million in 2010. This is due to the change in demographics and lifestyle that
will boost the cardiovascular sales. However, the growth rates will be limited by continued
patients expiries for major products and due to the lack of novel the rapies.
There are 300 000 people receiving treatment, but that is about one –third of all the
people who are estimated to be in need of treatment.
While Tirunelveli district economics
growth has been forecast to however around 8.5 percent for 2010-11.
acknowledge there is need to spend more in villages where many health care do not have
medicines, doctors, or diagnostic facilities.
The main objective of the study is ,
To identify the problems relating to the wholesale marketing of pharmaceutical products
The study requires a selection of suitable place. Hence Tirunelveli district area has been
selected, since the researcher belongs to this area and has interested to study the Wholesale and
retail marketing of pharmaceutical products. Moreover, there is a heavy concentration of
wholesale and retail units in Tirunelveli district.
Scope of the Study
The present study covers Tirunelveli district. For the purpose of study, the areas are
divided in to rural, semi urban and urban areas. The researcher has interested to study marketing
practice of pharmaceutical products. Regarding marketing of pharmaceutical products, the
marketing mix namely 4P’s like Product, Price, Place and Promotion have been covered. Its
main objective is to create a professional standard and ethical code of conduct. Further its aim is
to increase the market share by influencing prescriber behavior, increasing script yield and
ensuring formulary acceptance. In the case of product, the collection of various drug groups
offered by different pharmaceutical companies was covered. With regard to place, the wholesale
and the retail market sectors have been covered.
The concept of price portrays the various information like price fixation, price control
norms and stream lining of regulatory process of price control norms, drug policy, marketing
structure and all these aspects have been covered.
Profile of Whole Sale Marketing
Nature of ownership
Fixed in Capital
Both rural and urban areas
Diploma in pharmacy
Rs.5,00,001, -- 6,00,00
From super stockiest
Both from manufactures of
No. of Respondent
Bearing transport cost Both manufactures
Both cash and credit
Less than 6%
Less than 1 month
1 Month to 2 Month
Less than one month
One month to 2 months
Non availability of drugs
Short supply of drugs
Increase in price/tax
One or two months
Length of period
More than two months
Source: Primary data
The above table exhibits that 66.67% of the respondents are sole traders and remaining
33.33% of the respondents is found to be partnership business.
It is inferred that out of 3
respondents contacted, two respondents are sole traders and the remaining one respondent has a
66.67% of the respondents cover the area of operation both at urban and rural areas and
the remaining 33.33% covers the area of operation at Taluk level. It is inferred that urban and
rural areas are the major marketing areas for the wholesalers. The wholesalers may extent their
market to the semi-urban and rural area to meet the demand for the non-availability of drugs and
It is inferred that majority (66.67%) of respondents have the basic knowledge about
pharmaceutical products which is very essential to run the business further it show that both of
them are diploma holders in pharmacy.
It is understood that 66.67% of the respondents has invested fixed capital ranging
between from Rs.50, 001 -- Rs.100,000. It is learnt that out of 3 respondents contacted, 2
respondents have the fixed capital ranging between Rs.50, 000 – Rs.1, 00,000 and the remaining
one respondent has fixed capital of Rs.50, 000 or less to meet the long-term needs of the
66.67% of the respondents have invested working capital ranging between from
Rs.5,00,001 – Rs.6,00,000 and the remaining 33.33% has invested working capital Rs.5,00,000
of less. It is inferred that the range of working capital invested by wholesalers lies under the
category of below Rs.5, 00,000 and ranging between Rs.5, 00,001 -- Rs. 6, 00,000. This range of
amount is sufficient to meet the day to day operations of the wholesale trade of pharmaceutical
Indicates that 66.67% of the respondents prefer super stockiest for their stock
requirements and the remaining 33.33% of the respondents prefers both from manufactures and
It is learnt from the analysis that majority (66.67%) of the respondents have made
purchases from super stockiest only. It is the major source of purchase for the wholesalers.
It Indicates that 33.33% of the respondents is availing cash discount up to 6% get from
the suppliers followed by 33.33% - of the respond out 6 – 12% discount and another 33.33%
discount ranging between 12—18% suppliers of pharmaceutical products. It is inferred that out
of 3 respondents, each respondents is getting cash discount at rate of less than 6%, 6 – 12% and
12 – 18% which accounts for 33.33% each for their immediate payment.
It is found that two respondents (66.67%) are allowing the credit period ranging between
one or two months to the customers and the remaining one respondent (33.37%) is allowing
credit period of more than two months to the customers.
It is inferred that majority (66.67%)
of the respondents are allowing credit period ranging between one or two months to clear the
Findings and Suggestions:
On the basis of the above findings the following suggestion have been offered by the researcher
to prevent the problems involved in both wholesale and retail marketing of pharmaceutical products.
To channelize the sources of purchase in wholesale and retail marketing it is suggested that the
manufacturers / distributors may send their representative to visit pharma traders and canvass for
To over come the problems faced by the wholesalers and retailers while purchasing drugs, it is
suggested that the distributors / manufacturers shall inform the availability of the scarce products
to the wholesalers and retailers through representatives or in their monthly association meetings.
To reduce average payment period of the retailers are well as the cost, it is suggested that the
wholesalers and retailers shall make necessary steps to go for only cash purchases to take
advantage of discount facilities and other offers.
To reduce stagnation of stock, it is recommended that the wholesalers and retailers should plan
for their stock requirements and place the order as per the sales and the customer’s needs.
Since promotion plays a key role in the success of any retail unit, it is suggested that in case of
wholesalers, they have to improve the promotional measures by way giving advertisement for the
drugs on a large scale, giving advertisement for the drugs on a large scale, giving compliments
who are making large quantities of drugs at regular intervals. In the case of retailers, they have to
All the wholesalers are selling their products both on cash and credit basis. Most of the
respondents are allowing cash discount of less than 5% to the buyers and the credit period
allowed is me to two months. All the respondents supply the drugs directly to the doctors while
visiting their dispensaries.
The method of collecting credit amount from the retailers is
collecting the wholesalers by himself. The major problems they are non – availability of drugs,
short supply of drugs, increase in price tax, stagnation of stock, inadequacy of sources of finance.
Since pharmaceutical sector is a growing sector, the problems must be controlled in the future by
careful consideration of both internal and external factors.
1. Gandhi, J. C., Marketing 2001, Tata McGraw Hill Company, New Delhi.
2. Gupta S.P. (2001). Statistical Methods. Sultan Chand & Sons, New Delhi.
3. Kothari C.R. (1998). Research Methods. Wishwa Prakasham, Second Edition.
4. Mamoria, C.B., Marketing Management, 1984, Kitab Maha, Allahabad.
5. Meenal Dhotre, Channel Management and Retail marketing, 2005, Himalaya
publishing House, Mumbai.
6. Nageswara Rao, D., Indian Journal of marketing, pp2-4
7. Paramasivan C. Research Methodology for Commerce and Management. Regal
Publication, New Delhi.
8. Philip Kotler, Marketing Management, 1999, Prentice Hall of India Private
Limited, New Delhi.
9. Tamil Nadu Chemist, Vol.2, Nov. 2005, p.15-18.
10. Veerappan P.P.L. Tamil Nadu chemist vol.3 June 2002.
11. www.pharmaceutical-manufacturers.com/ pharmaceutical industry
12. www.pharmacutical-manufacturersrs.com /pharmaceutical industry