The document provides a summary of the pharmaceutical industry in Nepal, including its importance to the economy and challenges it faces. It reviews literature on various topics related to pharmaceutical marketing, branding, and intellectual property. It discusses factors to consider in pharmaceutical marketing like laws, culture, and media research. It also examines issues around patents, access to medicines, and incentives for research and development. Recommendations include focusing research on new drug uses and delivery, generics, and contract manufacturing to increase access and competitiveness.

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CHAPTER- V
SUMMARY, CONCLUSION & RECOMMENDATION
5.1 Summary
The brief introduction of the Pharmaceutical industry, its role, importance & contribution in Nepal are
included in the introductory chapter. The chapter also provides the glimpse of present situation of Nepal,
majority of population in Nepal a few years ago were dependent on agriculture, but the country is
gradually shifting its economy from agricultural to industrial sector for sustaining its economic life. The
policies of the government sometimes do not favor private sectors. There are large numbers of brands of
medicines available in Nepal. The term intellectual property refers broadly to the creations of the human
mind. Intellectual property rights protect the interest of creators by giving them property rights over their
creations. This chapter also tries to make clear about the topic and its relevance.
The second chapter i.e. Review of Literature gives the concept of brand, marketing and its different
aspects where views of different scholars, writers are reviewed. Brand ideology comprises values and
commitment so deep that its owner, fans are passionate about it. They are ready and happy to offer same
commitment with defined standards time and again. True branding is much more than just the acronym,
logo or art packaging or advertising. It encompasses the feeling you want to evoke from the consumer
about the product/service. Not just that it is to stand out on the shelf. But once the purchase is made, the
consumer feels somehow connected to the product. It even goes so far as to include the customer service,
a consumer experiences when dealing with the company behind product or service. Of course part of a
branding is aesthetics, shape and structure but Brand is not decoration. It’s not the surface appearance of a
product. It’s not about the color or stylistic details. Branding is the way product works. Branding is
function, not a form. It’s rather an interface of product consumption and experiences. Branding should
comprise ethos, proposition, values and promise of a product that should act as a curtain or bridge
between consumer expectation and product. Similarly, the available dissertations in context of
pharmaceutical industry from various researchers are also reviewed. Nepal is a member of WTO, WIPO,
what opportunities can it explore, is provided in the context of Nepal. Similarly, TRIPS agreement has
been focused, how we can use TRIPS agreement being an LDC in our favor. Marketing is one of the
crucial jobs in any sector, so what are the things that need to be considered has also been discussed in the
second chapter. What aspect of a particular country needs to be considered like its law, policies, cultures,
languages etc. in developing a product and marketing it? As India is one of Nepal’s main trading partner,
Indian laws regarding pharmaceutical marketing has also been dealt with, the non-tariff barriers faced by
Nepali Pharmaceutical Industry presently has also been dealt with. The non-tariff barriers imposed by
India and how it hindered one of the company’s export has also been provided. Human Rights Guidelines
for Pharmaceutical Companies in relation to Access to Medicines has been discussed. Similarly, business
environment of Nepal, China’s growing manufacturing wage, effects of TRIPS agreement on
Availability of Medicines, the number game in customer management, advertisement in Pharmaceutical
business, strengths and weakness of our pharmaceutical industry, the role of branding in the
pharmaceutical industry, over-the-counter medicines, controversies surrounding TRIPS, Ecological
Economics and the Drug Life Cycle, Product lifecycle management through patents, The Effect of
Changing intellectual Property on Pharmaceutical Industry Prospects in India and China etc. has been the
subject of study. Exploratory research on OTC and views of chemists has also been included. One global

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pharmaceutical company named Bayer and its history its ups and downs during its growth as a major
pharmaceutical company have also been provided. Topics like countertrade in medicine, parallel imports,
how the same brand of medicine comes with two different price tags in the same market? , are other
topics worth reading.
Medical representatives must be motivated; the job is an examination of patience, relationship building,
and conveying message to doctors and other stakeholders. There is always a team effort needed in it. The
weaker link in the chain should be motivated. Marketing Manager has an important role in there. At
individual level they should keep updating themselves and knowledge of the world market regarding their
profession would be an added advantage. Since, Doctors’ are the prime customers, medical representative
needs to learn to approach the doctor; basically “it’s all about knowing your doctor”, their sentiments
their likes and dislikes. A part from being doctor, they are human beings they may be in different moods
so while pitching, mood can be the best signal to fit ourselves to the situation.
Definitely, to encourage their sales representatives companies now have started to offer holiday packages
for their employees on meeting their targets. This is a positive package. It is the profession where most of
the time the representative is in field, and travel a lot so accidental insurance scheme can be implied in
such cases.
Selecting sales and marketing personnel may need certain factors to be considered, Maturity, Emotional
stability (not demanded in domestic sales positions), breadth of knowledge of many subjects both on and
off the job, positive outlook, flexibility, Cultural empathy, energetic and enjoy travel. In one study the
Americans who cared more about money and were more educated tended to perform better in and be
more satisfied with their sales jobs. Conversely, the Japanese sales representatives tended to be more
satisfied with their jobs when their values were consistent with those of their company.
In the international communications process, each of the seven identifiable steps can ultimately affect the
accuracy of the process. The process consists of the following:
1. An information source
2. Encoding
3. A message channel
4. Decoding
5. Receiver
6. Feedback
7. Noise
Decoding problems are generally created by improper encoding, which caused such errors as Pepsi’s
“Come Alive” slogan being decoded as “Come out of the grave.” Chevrolet’s brand name for the Nova
model (which means new star) was decoded into Spanish as No Va! Meaning “it doesn’t go.” In another
misstep, a translation that was supposed to be decoded as “hydraulic ram” was instead decoded as “wet
sheep.” In encoding step such factors as color, timing, value, beliefs, humor, tastes, and appropriateness
of spokespersons can cause the international marketer to symbolize the message incorrectly. For example,
the marketer wants the product to convey coolness so the color green is used; however, people in the
tropics might decode green as dangerous or associate it with disease.

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Noise comprises all other external influences, such as competitive advertising, other sales personnel, and
confusion at the receiving end that can detract from the ultimate effectiveness of the communication.
Noise is a disruptive force interfering with the process at any step and is frequently beyond the control of
the sender or the receiver. As with the overlapping cultural contexts, noise can emanate from activity in
either culture or be caused by the influences of the overlapping of the cultural contexts. The significance
is that one or all steps in the process, cultural factors, or the marketer’s SRC can affect the ultimate
success of the communication. For example, the message, encoding, media, and the intended receiver can
be designed perfectly but the inability of the receiver to decode may render the final message inoperative.
Table: 5.1-Salespeople’s Distribution of 100 Points among Rewards in Terms of Their Importance
Rewards Relative Importance (mean)
Japanese Americans
Job security
Promotion
Merit increase in pay
Feeling of worthwhile accomplishment
Social recognition (sales club awards)
Personal growth and development
18.5
13.7
24.7
18.5
8.1
16.6
17.6
14.9
26.2
18.2
5.2
17.8
Source: International Marketing (Data 1999)
Regarding advertisement in pharmaceutical industry in Nepal, there isn’t a much practice. However,
companies often advertise their corporate brands and products mainly in health magazines. But a
company also needs to learn whether their investment has brought certain outcomes. Different tests are
there to learn about effectiveness of the advertisement, like recognition test which can be used to find the
readership per rupee by using the formula
ܴ݁ܽ݀݁‫ݏݎ‬ℎ݅‫݌‬ ܲ݁‫ݎ‬ ܴ‫݁݁݌ݑ‬ =
ܲ݁‫ݐ݊݁ܿݎ‬ ܰ‫݀݁ݐ݋‬ × ‫ݏ݁݊݅ݖܽ݃݁ܯ‬ ܲ‫ݕݎܽ݉݅ݎ‬ ܴ݁ܽ݀݁‫ݏݎ‬
ܵ‫݁ܿܽ݌‬ ‫ݐݏ݋ܥ‬
Where, the responses gathered from respondents are categorized into three categories:
• Noted: Respondent who saw the advertisement but not read is placed in this category.
• Seen Associated: The respondent who partially read the advertisement.
• Read Most: The respondents who totally read the advertisement. If the number of this category is
more than others then the published advertisement is considered to be effective as it reaches to the
most of the people.
With the help of recognition test the number of readers attracted by the advertisement for each rupee of
space can also be calculated.
If other media is to be used ‘Media research” should be done for the selection of appropriate media or a
combination of various media (the media mix) for the diffusion of ad messages. Mainly short TV or
Radio programs to raise public awareness on quality, facility available with Nepali industry etc. can be
done. Media research aims at finding out the ‘Reach’, ‘Frequency’ and ‘Impact’ of various media on the
audience.

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• Reach: Number or percent of different homes or people exposed at least once to a media vehicle
or schedule during a given time, usually four weeks.
• Coverage: Area, geography.
• Frequency: Average number of times an advertising message reaches the same person or
household. It depends upon the continuity.
• Impact: Impact implies to the effect created by an advertisement in a type of media. It is the
impression that has taken place on the minds of the audience.
• Gross Rating Points: Reach × Frequency.
• Cost per Thousands: Cost to deliver a vehicle or schedule to 1,000 homes or people.
• Circulation: Total number of copies of a publication.
Research needs to be carried out to make every sum of money that we spend worthy. Even though
companies cannot bear such expenses, research agencies can be consulted, by paying minimum sum to
them for their jobs.
Patent is a monopoly, and how to expect a competitive market unless patent owner gives license to more
manufacturing industries on reasonable terms. What is the scope of competitiveness? Hasn’t been much
addressed in TRIPS. There are no uniform policies regarding compulsory licensing among nations. LDCs
have less resource and are helped by donor agency in law formulation, and these agencies might enforce
law in their favor and even might threaten to stop donation if laws are made against their will e.g.
Countries seeking to use the flexibilities under TRIPS fear they will be punished by trade sanctions
imposed in retaliation. Countries fear that pharmaceutical companies will use unfair tactics, really, every
trick in the book, to reduce competition from lower-priced generic.
If patent is a monopoly why would the owner and the licensee want market to be competitive. WHOs
access to medicine may not turn into truth unless market becomes competitive. So, it is better, to adopt
differential pricing strategy for patented products and more stringent policy can be discussed in TRIPS
council regarding illegal parallel imports.
Rapidly changing markets, shorter product life cycles, rapid technological change etc. are few challenges
being faced by a companies in today’s ever changing marketing environment. Pharmaceutical companies
are not far from this, every day or so a new challenge comes regarding product standards e.g. just a day
before the standard limit for size of a capsule might be 2cm, now today the standard might change, a new
standard limit for a size of a capsule might be 1cm. Safety and efficacy of drugs e.g. in any corner of the
world the drug might show adverse drug reaction. So, companies now should focus on, to gain maximum
profit within shorter period of time.
The provision of compulsory license may decrease in investment in R&D; by knowing that we won’t be
able to compensate costs and then, in spite of focusing in new drug formulations or NCE’s the
pharmaceutical companies might focus on neglected diseases, new drug delivery mechanisms or
identifying new uses of existing drugs, developing efficacy and stability of drugs etc. And NCE’s to new
and rare diseases might be out of thinking.
Yet the pharmaceutical industry operates in response to economic factors and market forces. This is a
profit-driven industry, and not a philanthropist, not a humanitarian enterprise. What incentives does this
industry have to fix prices according to their affordability among the poor?

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Second, price has a decisive impact on access to medicines. Access is influenced by many other factors,
like remoteness, lack of staff, poor procurement practices and delivery systems, and the absence of health
insurance schemes. But price can be an absolute barrier to access for the poor. For the poor, access and
affordability are usually one and the same. Tensions arise between the motives of a profit-driven industry
and ethically-driven public health, but these can be circumvented, if not entirely overcome.
If in the name of selling product if we only inflate wealth of the middlemen in transaction like
wholesalers, retailers then how we can increase assess of poor and marginalized group to medicine. The
medicine would be costly and how affordable would it be to the poor one, companies and even
government should bring out strong policy regarding it, as it is said, the move towards greater
accountability does not involve jettisoning sound economic principles, such as being in business to make
a profit. Making money is being repositioned, not relegated. It can be likened to our perception of
breathing: life is impossible without it but we do not live to breathe.
It should be clearly discussed about compensation packages to patent owner and differential
compensation packages can be enforced on the basis of country’s economy in the case of patent law
violation, inspite of focusing on violation why not patent owner gives voluntary licenses at reasonable
price. If in case, patent law is violated by LDC the compensation should be within its limit and also patent
owner can give the license to remain competitive, and through TRIPS it can even be discussed about how
much share should patent owner gain from his innovation this might depend upon owners failure to
innovation and the cost of present patented product.
Suppose, if someone failed in inventing product for 3-4 times and in 5th
attempt he succeeds. The cost
he/she bears should without any doubt compensated. But how much compensation should the patent
owner gets can be made clear. The cost can be spread like for developed countries a higher compensation
can be asked. Differential compensation schemes can be developed. In one way we would be encouraging
R&D and at the other, through differential compensation packages the attempt to competitive market
could be secured. And, instead of saying developed, developing and LDCs as variables for compensation,
compensation base might relate to the investment in pharmaceutical industry and its market base e.g.
suppose Indian investment in pharmaceutical is huge and even robust and strong market base so higher
compensation can be sought from such industries.
Multinational pharmaceutical companies (MNCs) spend billions of dollars in research and development
(R&D) of new medicines every year and also generate data on clinical aspects of medicine which needs to
be submitted to regulatory agency for getting marketing approval. The marketing approval of drug is
based on the outcome of the clinical trials and ratio of benefits to risks. If risks outweigh the benefits, the
drug is not marketed and company loses large sum of money. When a company invests money for
development of a new drug, it would expect to recover investment from sale of medicines without fear of
competition. Patents provide a strong incentive to pharmaceutical companies to invest in R&D. Contrary
to this; it is argued that patents create a barrier for accessing medicine in developing countries due to high
cost of product and market monopoly enjoyed by the pharmaceutical companies with regard to patented
medicines. The opponents of patents argue that many life saving medicines and medicines for AIDS and
cancer are out of reach of patients in developing countries due to patent protection enjoyed by MNCs.
For, country like ours where companies aren’t so much robust, world market share is dismal, instead of
focusing in making patented medicine we can focus our R&D on new use of existing drugs that are out of
patent, new drug delivery mechanism, work on Bolar provision i.e. we can prepare ourselves for

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competition through reverse engineering of the patented products and bolster our industry. We can focus
on plain vanilla generics, biogenerics. Indeed, some companies are doing this. Like National Healthcare,
It has even built a sterile plant for this purpose, instead of only getting GMP certificates companies have
advanced themselves by getting ISO certificates in different categories. Now, DDA has opened a way for
contract manufacturing we can focus on generics and provide it in minimum costs. We can even explore
the opportunities of joint venture with foreign multinationals. With manufacturing wage on increase in
China and bourgeoning middle class in India the manufacturing cost is likely to go up in future this can
attract foreign companies to Nepal. We can cash on the weaknesses of India i.e. biology and China i.e.
Chemistry, Language barriers etc. In the world market, the step to globalization is a long and an arduous
journey. First, we should become strong in our own market whether penetrate it or skim it with new and
hot products. If we really want to focus on ARV segment we can go for generics ARVs e.g. Zidovudine,
Didanosine, Stavudine etc. There are plenty of opportunities like go on life saving drug segments like
Heparin production as initiated by National.
The appropriate research methodology is presented in chapter three. Marketing research is carried out
with different purpose some are problem identification oriented while others are problem solving
research. This study does rely on data collection, although selected interviews were conducted with
informants in order to confirm and supplement information gleaned from written reports. It is focused on
a cost-effective means of gathering information from available reports, studies, and interviews to answer a
set of policy-relevant questions.
Methods included a review of literature, including academic, Press. Interviews were held with the
following categories of people: academics, pharmaceutical analysts, researchers and medical
practitioners, medical representatives, pharmacy students and chemists.
With the help of methodology described, the data are presented and analyzed in chapter four. Now, in this
chapter an effort has been made to present summary of findings and give some suggestion for future
course of action.
This study is an attempt to project the present scenario of the Nepalese Pharmaceutical Industries and
their place in costumers mind with focus on how it can improve its image and how it can make its
presence in the world of medicines. The information and data are presented in analytical method. Besides
these, quantitative data are described in words in detail wherever necessary. The Primary data are
analyzed through simple statistical tools like average, percentage, mean etc. The opinion of public or
customers has been found to be like these:
• People aren’t much familiar with Nepali Pharmaceutical Products.
• Peoples attitude towards Nepali Pharmaceutical products (brands) are less than moderately favorable.
• People are less than moderately favorable towards Nepali Brands in terms of quality.
• Mean agreeableness in severity and going with foreign brands is greater than 2, they still disagree
with the concept, which is a positive sign for Nepali companies. They are going towards being
neutral, but may be their emotional attachments with national products and ethics might have played
crucial role. This is proved by their brand preference of foreign products incase of component
prescription.

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• Customers don’t have the habit of asking medicine manufactured by Nepali Companies to the
chemist.
• Customers prefer foreign brands in case of component prescription.
• Most of the customers, while buying the medicine check the label.
• Most people believe, medicine should cure disease, should be easy to consume and come in attractive
and safe packages. However, the opinion on the functional aspect of the medicine cannot be
overlooked.
5.2 Conclusion
Generally, brand promotion refers to the corporate brand promotion and Product brand promotion. The
concept of product branding is new concept in Nepal. Product brands like Viagra, Nims, Avomin, Neeko
etc. occupy huge market share. In case of pharmaceutical products, mostly in Nepal costumers remember
product brands at most. Companies should talk to customers about their brand. If a patient, suppose takes
‘Caspy’ which is a branded product of NPL. When patient feels well, he might show the medicine to the
visitors and indirectly convey the message of product brand. Now, if he also conveys the message of
corporate brand i.e. NPL, definitely company brand image will get benefitted but we cannot be
inconsiderate regarding the fact that; it is a prescription medicine. What it definitely helps is create a
positive image of the company, and company’s brand value increases. If suppose, NPL sells its corporate
brand name to others then what’s its value. The value is perceived through the eyes of a doctor or a
costumer. So, companies should not hesitate to convey the message to the costumer and then to the end
users. The better the control the company has in its product i.e. if the company has a reach to the end
users the message can even be clear.
The inequities in global distribution of drugs are apparent when it is realized that 75% of the world’s
production of drugs are consumed by 25% of the World’s population living in developed countries. Other
25% of medicine is consumed by 75% of population in developing countries and LDCs. It means market
has not been penetrated. It is not like other consumer products. To penetrate, message should be
communicated and other variables needs to be addressed like education, affordability, fear etc. People
should know that even minor ailments can be an omen to some serious consequences. When thinking of
doctor money comes first, if gone to public hospitals for service, environment is at its worst state. In
Private clinic minimum fees of Rs.250-Rs.400. People even might have doubt that, the doctor might send
them to examine that would be a worthless expense. People might think doctor is writing a prescription
beyond the requirement. Cases of adverse drug reaction and frequent malpractices by doctors can bring in
a fear among service taker.
Since, ultimate end user of medicine is a patient, message should be sent to the customer regarding
quality, safety and efficacy of drugs. The customer should get best value for their money. Message can
relate to regular pharmacovigilance, regular stability testing, quality testing, facility of the infrastructure
etc. Companies under CME program take health campaign to rural areas, why don’t they use the
opportunity and interact with the public, public could be made aware about Adverse Drug Reactions,
communicated the infrastructure facility available with the company, in what way the company medicine
are of good quality and how they can assure that public won’t risk their health taking Nepali company

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medicine, they can even make assure they are providing best value for their hard earned money, the
slogans like “ Together We Care About Yours’ Health“ can be effective in such cases, message can
also relate to easy access to jurisdiction in case of accidental mishappenings.
This is an age of brands we should confer message to the public as well.
We definitely have opportunities in the market abroad; it’s all up to how pharmaceutical industry lobbies
the government and present issues in front of the International forums. How we use the opportunities
provided to us. How we convert the foreign agreements into our laws. These all things matter, and
definitely we are positive our market share is on increase. We have manpower, world is a global village,
definitely, thinking strategically and having a positive outlook can help overcome any barrier; we can
follow the policy of economic diplomacy.
There is a good initiation, expos are now being organized and also foreign companies and their
representatives have started to participate. Basically industry is striving hard for its growth. There is a
definite success and our future prospect isn’t a bleak.
Overall, pharmaceutical business: it’s all about seeing the product in the right hands.
5.3 Recommendations
1. Focus on quality products.
2. Try and maintain a good rapport with the doctors.
3. Lobby the government for Pharmaceutical Industry Friendly Policy.
4. Try to imply tariff and non-tariff barriers to foreign products.
5. Don’t take customers for granted. Nepali customers are rapidly developing ideas in medicines as
well. Customers are the god. Doctors are the first one and final are the end users patients and
those who buy medicines for them.
6. Employees are the best assets of the companies; companies should try to retain the employee as
longer as possible.
7. Pitching about product infront of doctor is not enough; presentation and detailing should be
outstanding. Use of phonetic codes in product brand promotion can make presentation attractive
and get attention from doctors.
8. If incentives to doctors and other stakeholders have been the weakness address it properly.
9. WTO membership isn’t enough to explore opportunity, taking the issues and presenting it infront
of the international forum is important. Membership isn’t important but its outcome only counts.
10. Government should present itself responsibly.
11. Ethical promotion should not only cover the Nepali company but should be implied to foreign
ones also, to bring in a fair play in the market.
12. If Nepal is giving easy way for foreign products in the market, Nepalese pharmaceutical
companies have equal rights to enter foreign country by the same means and ways, provided they
fulfill the basic requirement in medicines e.g. quality, efficacy and safety. International business
is all about give and take, while both the side gets benefitted by the pact.
13. While bringing in the rule in their law, countries always manipulate, the rule hasn’t been always
straight forward, and they always try in bringing non-tariff barriers in a way or the other, so we
should also bring laws that help our industry.

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14. Advertisement of pharmaceutical products is not allowed in Nepal, but short films and
programmes can be aired through national television and radio stations, to communicate the
message about the quality of medicines that may include WHO-GMP conformance,
pharmacovigilance etc. to develop awareness among people and bring positive thought among
people.
15. Companies run different health camps, and even provide free medicines but message should be
communicated to the public that this medicine belong to Nepali company, only free medicines is
not going to help.
16. Pass the anti-dumping act.