International Journal of Advanced Research OF ADVANCED RESEARCH         INTERNATIONAL JOURNAL in Management (IJARM), ISSN ...
International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volu...
International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volu...
International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volu...
International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volu...
International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volu...
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Sale of over the counter otc drugs via post

  1. 1. International Journal of Advanced Research OF ADVANCED RESEARCH INTERNATIONAL JOURNAL in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) IN MANAGEMENT (IJARM)ISSN 0976 - 6324 (Print)ISSN 0976 - 6332 (Online)Volume 3, Issue 2, July-December (2012), pp. 63-68 IJARM© IAEME: ©IAEMEJournal Impact Factor (2012): 2.8021 (Calculated by GISI) SALE OF OVER THE COUNTER (OTC) DRUGS VIA POST OFFICES-A CONSUMER PERCEPTION Dr. Rajesh Kanthe Associate Professor, Bharati Vidyapeeth Deemed University, IMRDA, Sangli. Email: Ms vaishali P.Pawar Research Student, Bharati Vidyapeeth Deemed University, IMRDA, Sangli. Rajendra Mohite Research Student, Bharati Vidyapeeth Deemed University, IMRDA, Sangli.ABSTRACT Rural India and modern India put their thrust on self medication in treating minorailments not as like in Europeans who put their trust in the neighborhood pharmacist, NorthAmericans rely more on the advice of doctors. In countries where healthcare infrastructuresand economies are developing, opportunities exist to lessen the considerable burden ondoctor and help governments reduce their healthcare expenditure. Self medication using overthe counter products in India is seen to be common. OTC Products Medico-marketing, is thebusiness of advertising or otherwise promoting the sale of OTC pharmaceuticals or drugs.Evidences show that marketing practices can negatively affect both patients and the healthcare profession. The small towns and rural parts of India do not have adequate medicinefacility and treating minor ailment is a costlier business for the large section of society.secondly availability of even OTC drugs which otherwise are easily available in smallchemists and general stores are also not available to the poor section of the society and therural masses where chemist shops and general store are meager or they do not sale OTCProducts for minor ailments. This paper is attempt to craft a new marketing process ofinvolving a network of post-offices in selling of OTC products to the area wherever thepostmen goes.Keywords: Post-offices, government, Self medication, over the counter drugs, healthcaremarketing, minor ailments. 63
  2. 2. International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012)INTRODUCTION Among major systems of medicine in India that have official recognition and supportallophthy treatment dominates and in minor ailments OTC allopathy Products dominates,though ayurveda, unani, siddha, and homeopathy are also used by a few. This is because ofthe speed with which chemical drugs used in OTC allopathy alleviate symptoms and enablethe patient to resume work1. Employment for the urban and rural poor is mainly casual andon daily wages. Quick fixes prevent loss of even a day’s work and income due to illness.Hence in cases of minor ailments OTC products are the only source as low cost treatment andavoid long treatment of Doctors for majority of patients in the research study area. Highermedical professional charges coupled with excessive desire for self-medication andincreasing faith in traditional medicines, India’s over the counter drug sale has grown around10% in the last 2 years, leaving USA and China much behind, where OTC drug sale isestimated at 4% to 5% respectively7. Increasing urbanization has changed peoples lifestyles2and has led to increases in lifestyle diseases. Hand in hand, improving literacy rates coupledwith strong growth in income levels have led to rising health awareness among consumerswith change in retail formats like chain chemists and shopping malls promoting OTCproducts like FMCG. These are some of the reasons for the expansion of the OTC market. Itis expected that this trend will continue and companies will launch products targeting thiscategory and the overall OTC segment is expected to register sustained growth in the nearfuture.3 In addition, the tendency of self-medication is furthered by consumer deciding whathe needs and having a better control over what he needs be it a grocery item or a medicine.The very fact that OTC outlets are in India a novelty would attract a great deal of attentionfrom the youth. But Still The Poor And Rural Area Where The Stores Are Not Possible AndHealth Care Can Be Costlier The Chance Of A Delivery System By The Initiative OfGovernment Would Be Possible Making Use Of Indian Post Offices In Some Towns AsWell. This Is An Attempt To Understand The Consumers Opinion On What They Feel If APostmen Of Post Office Will Sell OTC Products At Their Doorstep to treat minor ailments.The study in confined to Miraj city and experiences with the larger picture and thus enablehim to find the deviation (if any) in the behavioral and attitudinal patterns of the consumers inOTC Product shopping and stocking at home to use in minor ailments likecold,cough,pain,stomach ache and pains.. Over the Counter sales is not restricted tomedicines and drugs but covers a larger ambit of household goods and remedies.4 What mostof consumers do when catch a sudden cold or get a headache? they will search in medicinebox for a pill of No cold or Aspirin. Exactly most of people will do the same because now thetrend is expanding towards the most inexpensive form of health care which is self-medicationwith over the counter (OTC) medicines.5 So increase demand leads to increase in competitionwhich in turn leads to increase in need of differentiation in between various over the counterproducts. Currently pains, cough, colds, hyperacidity, minor topical infections andindigestion are major OTC categories. Emerging categories due to change in lifestyle includecuts, wounds, burns, muscle pains, sprains, diarrhea and constipation.CHANGING BUSINESS LANDSCAPE Pharmaceutical marketplace is growing significantly due to the getting old population,increasing income level, and higher awareness of new products etc.India has witnessed aboom in organized retail trade in the last decade. The retail format, which has shown themaximum growth among all, is the multipurpose shopping center or the mall. It is well know 64
  3. 3. International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012)that this format is a favorite hang around in of the consumers in the current generation and itis also likely that OTC outlets are an epicenter for evolving an altogether new consumptionculture within the study area. Therefore, it is of utmost interest to the retailers andpharmaceutical companies and academia equally to understand the consumer dynamicsbehind this newly evolving consumption culture. This paper takes a look at the OTC drugmarketing at a local level with special focus on FMCG markets6. The first section deals withchanging consumer and environment which is followed by a brief introduction to OTCsegment. Section TWO deals with a small pilot study done by the author and the last sectiongives the holistic approach which Indian OTC drug marketing firms can adopt to createawareness about health and wellbeing using post offices resources’ to market their OTCproducts directly to the consumers. Though self-administration of treatment with over-the-counter drugs relies on the patients judgment, which is supplemented by the information onthe label, for correct diagnosis of the disorder or symptom. In general, these products poseless dangers of misdiagnosis. Possibility is that in future OTC drugs can be sold through postoffices and postmen.OTC MARKET IN INDIA In 2005 the Indian OTC segment was Rs 4500 crore it could be considered as Rest17000 crores if cosmeceuticals & neutraceuticals are also included. The CAGR for IndianOTC markets is currently hovering between 12 and 15% and this is much faster than OTCmarket growth of most development countries. The OTC Market in India in 2007 will bearound Rs. 6000 & 20000 crores. As per Euro RSCG India, OTC market is hovering aroundRs. 2800 crores. 8The global OTC market is projected to be USD 75 billion with a cumulativeannual growth rate (CAGR) of 4.5%, which will make it 82 B$ in 2007.In Indian Marketsethical drugs are also sold without a prescription due to poor monitoring and control by FDA.Self medication tendency is traditionally very high due to the high availability of traditionalmedicines, the awareness and acceptance of which is very high among the public. (adex -division of TAM Media Research).OTC MEDICINES(ref: Category 2005 2006 2007 2008 2009 (Sales in US$ Million) OTC sales - 1243.4 1371.4 1491.0 1638.9 1813.4 India Analgesics 178.8 192.9 201.7 223.4 258.6 Cough, Cold & 227.2 250.7 269.7 295.1 318.1 Allergy Gastrointestinal 231.4 256.7 281.0 301.2 332.6 Vitamins, 447.1 494.3 538.6 583.0 634.5 Minerals & Supplements Dermatologicals 144.1 160.3 181.9 212.4 236.5 Lifestyle OTCs 14.8 16.4 18.1 23.9 33.1 Source: Nicholas Hall & Company, India, DB6 2010 – 1US$ = INR.46.54 65
  4. 4. International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012)The market is growing at 18 per cent annually, almost 1.5 times the rate of the FMCG sectorFaith in homeopathy and ayurveda is increasing as more organized players get into the fray,Increase in disposable incomes, coupled with an increase in lifestyle-related diseases, isspurring demand for such products and the most important factor is rising fees of medicalprofessionals is prompting more people to self-medicate resulting into new strategies bycompanies to reach their consumers as early as possible. So the attempts in this pilot study tofigure out whether it is possible to sale the OTC products along with your letter, money orderwith the post men.OBJECTIVE1. To inquire about Opinion of Medical Professionals on sale of OTC Drugs through postmen2. To Seek Opinion of customers on sale of OTC Drugs through postmen.RESEARCH METHODOLOGY1. Collect secondary data on marketing of OTC medicines from books, magazines, researcharticles, and websites2. Survey of Consumers, Doctors through a structured questionnaire being administered tothe respondentsSAMPLING1. Sampling unit:• Experienced Doctors (General practitioners as well as consultants) selected from differentparts of miraj and Consumers selected from different parts of Miraj2. Sample size:• Doctors – 50• Consumers – 1003. Sampling procedure:STUDY LIMITATIONS• Only confined to miraj city, so not representative of entire countryDATA ANALYSIS Doctor’s Opinion on Increased Level of Relying on OTC Drugs Docs Opinion No. of docs out of 100 Yes No Advertisement 77 77.00% 23 23.00% Doctors Distrust 71 71.00% 29 29.00% Easily Available 65 65.00% 35 35.00% Educated 65 65.00% 35 35.00% Customers Effective 76 76.00% 24 24.00% Low Cost 68 68.00% 32 32.00% Time Saving 72 72.00% 28 28.00% 66
  5. 5. International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012)The above table and chart presents the Doctors opinion on consumer relying on OTC drugs. Itwas found that the doctors surveyed were in favor of using OTC drugs in minor ailmentswhere doctor’s involvement is not required. it was found that almost 65% to 78% of doctorsopined that the consumer’s dependence on OTC drugs is increased. Doctor’s Opinion on Sale of OTC Drugs by Postmen Doctors Opinion YES Yes 24 24.00% No 61 61.00% Don’t know 15 15.00% Total 100 100.00%The above table and chart represents the response of doctors on sale of OTC drugs bypostmen. It was found that 24% doctors in were positive in promoting the OTC drugs as bypostmen and making products available, affordable and Creating awareness throughaggressive advertisements. Hence doctors across the strata were against promoting OTCdrugs as FMCG products. Consumers treating minor ailments with OTC Drugs. Ailments OTC Home remedy Total Headache 68 68% 32 32% 100 100% Fever 65 64.00% 35 34.00% 100 100% Cough/Cold 71 71% 29 29% 100 100% Acidity 55 55% 45 45% 100 100% Pain 66 66.00% 34 34% 100 100% digestive 56 56% 44 44% 100 100% Skin Disorders 71 71.00% 29 29% 100 100%The above table shows Consumers response on minor ailments, it was found that the allConsumers age; gender strata were overwhelmingly supporting the self medication process.on of the surveyed Consumers opined that they take OTC drugs without doctors permission.Thus it was revealed that use of OTC drugs in minor ailment as first line of defense iscommon phenomenon in consumers for self medication. Consumers’ Opinion on Direct Selling of OTC drugs By Postmen Freq of Clinical Most Somewhat Least Total Stores*/ Area likely likely likely Urban 29.57% 39.13% 31.30% 100% Semi-Urban 57.26% 26.97% 15.77% 100% Rural 6. 82% 45.45% 47.73% 100% Total 100 100 100The above exhibit presents the Frequency of Clinical Stores visit. It reveals that in urban area29.57% is most likely, 57.26% is somewhat likely and 6.82% is least likely. In Semi-Urbanareas 39.13% is most likely, 26.97% is somewhat likely and 45.45% is least likely. In Rural 67
  6. 6. International Journal of Advanced Research in Management (IJARM), ISSN 0976 –6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012)area 31.30% is most likely, 15.77% is somewhat likely and 47.73% is least likely. It showsthat most likely is higher in Semi-Urban area then in Rural area and in Urban area.Somewhat likely is higher in Urban area then in Semi-Urban area and lastly in Rural area.Least likely is higher in Rural area then in Semi-urban area and lastly in Urban area. Thus thefrequency of Clinical stores visit is higher in Semi-Urban area. it shows that the Consumersfrom semi urban area prefer to shop at clinical stores inside the hospitals even for OTC drugs.CONCLUSION In this growing market of OTC Products companies are trying there their bestweapons to market their products through innovative marketing strategies. it is crystal clearthat there would be number of possible measures which can improve the market share .Consumer who consume OTC Products available to Counters freely and either switch fromthe existing brand or continue to earlier brand. a marketing strategy using post office andpostman can also be a implemented as a channel o marketing OTC drugs to reduce the,affordability, accessibility and availability of OTC products for consumers as and whenrequired .thus reducing the healthcare expenses in treating minor ailments and secondly willgenerate a profit making avenue for department of post.REFRENCES 1. Philip Kotler, Kevin Lane Keller, Abraham Koshy and Mithleshwar Jha:Marketing Management, 13/e, Pearson Education, 2009 2. Subbarao Chagmati, (2007) “Pharmaceutical Marketing in India” concept strategy cases Pharma Book Syndicate – Hyderabad Published 2008 3. Mickey Smith, 2000 “Pharmaceutical Marketing in 21st Century’ Viva Books Pvt. Ltd., New Delhi. – 2001 4. Anshal Kausherh 2006”Pharmaceutical Marketing, Emerging Trends “ICFAI University ICFAI Press,Hydrabad 2006 5. Dr.Atmaram Pawar 2007.A handbook on community Pharmacists (Exclusively for Chemists & Druggists) - Career publications, Nasik.May2007 6. Ajith Paninchukunnath OTC Drug Marketing – Global Trends and Indian Experiences. 7. Madrid A, (2005), Sensory Evaluation- More than just food, ESN Seminar, May 25- 26 8. Worthington J. (2007), Let’s Talk about Sense Appeal, Available at:http// www. (Accessed on26th September, 2009) 68