Zydus Cadila is looking to expand into foreign markets. It currently generates 52% of its revenue from the Indian market and 37% from other emerging markets. It has had success expanding in markets like the US, Brazil, France, Japan, Spain and other parts of Asia and Africa. Some highlights include filing 38 new drug applications in the US, launching multiple new drugs in Brazil, France, Japan and Spain, and generating over $500 million in business in the US. However, Zydus Cadila decided to exit the Japanese market in 2014 due to tough competition. The document outlines Zydus Cadila's global marketing strategy which includes assessing market needs, competition, positioning products, and conducting primary and secondary research across
2. Market Overview – Zydus Cadila
269.8 300.9 335.5 374
417.1
465
518.5
578.1
644.6
CAGR 11.5%
0
200
400
600
800
2012 2013 2014 2015 2016 2017 2018 2019 2020
Global Generic Drugs Market ( $ Billion)
Source - http://www.bccresearch.com/market-
research/pharmaceuticals/generic-drugs-markets-phm009g.html
13.4
12.8
5
15.3
20
8
3
4
7
7
0 5 10 15 20 25
USA
Spain
Japan
France
Brazil
Generic drugs market as % of total
Pharma market (2011)
% increase in
share
% Market Share
Source - http://www.reportlinker.com/ci02261/Generic-
Drug.html
52
11
37
% Revenue breakup
by region for Zydus
Domestic (India)
Emerging markets
Regulated mkts
USA
• Business crossed
US$ 500 mil
• Filed 38 ANDAs
with USFDA, taking
cumulative ANDA
filings to 260
• Launched 9 new
products
• US Formulations
posted sales of Rs.
33.932 Mio., up by
56%
BRAZIL FRANCE JAPANSPAIN
• Launched 5 new
products in generic
market
• Rationalized the
product portfolio by
expanding the share
of in-house products
• Launched 12 new
products in generic
market
• Performance was in line
with market with focus
on increasing customer
base and share of in-
house products
• Launched two new
divisions to focus on
segments of
Cardiology and
Central nervous
system
• Launched 7 new
products
• Overall, Latin
America formulations
posted sales of Rs.
2348 Mio.
HIGHLIGHTS OF OPERATIONS – 2014-15
• Overall, the European business posted sales of Rs. 3,376 Mio.
• Launched 20 new products in different markets of Asia Pacific, Africa and
Middle East
• Overall, EM market posted sales of Rs. 4,075 Mio, up by 14%
• In Jan 2014, 7 years
after its entry, Zydus
decided to move out
of Japan due to
tough competition
from Japan’s copycat
drug market
3. Develop a robust, well-articulated brand
architecture strategy to consolidate goals
Plan, plan, plan. Have a transition plan ready to implement as soon as
the deal closes
To make sure that Acquisition must reflect the brand’s value in light of
how Cadila has used it
Value brands based on their worth to Cadila
Clear and
common
Brand and
Purpose
Differing
views of the
organization
Potentially
different Agendas
on how Cadila
subsidiary should
be branded
Focus on
buyer- the
main
audience
Bring together the
merging
companies’ back
office system and
processes
Key Challenges following
M&A
1. Capture
marketing
synergies to create
value for
consolidated unit
2. Look beyond
current integration
approach to target
opportunities for
transformation
5. Address all the
stakeholders and
promise high value
creation and
propositions
7. PR Marketing:
Work with media to
bring awareness of
acquisition and
benefits your products
offer.
6. Relationship
Marketing: Focus on
building relationships
with new customers of
acquired firm
3. Build Sales
Momentum: Aggressive
sales in first few weeks
boost customer’s
confidence
4. Outbound
Marketing: Let your
potential customers
know you exist as a
merged company.
8. Review Customer
Portfolio: Focus on
retaining all the
customers regardless of
expense
Marketing Strategy after M&A RoadMap