The document provides an overview of the global and Indian pharmaceutical industries and pharmaceutical marketing. It discusses how pharmaceutical companies research and develop new drugs, the large market size and top companies globally and in India, India's role as a major exporter of generic drugs, and common marketing strategies used in India's prescription-driven branded generic market, which involve establishing relationships with doctors who are the key decision-makers through regular visits and promotion by marketing representatives.

1. PHARMACEUTICAL MARKETING
Authored by
Prof. K. Ravindran

2. Pharma Marketing
2
Contents
1. Overview of Pharmaceutical Industry
2. Indian Pharma Industry
3. Pharmaceutical Marketing

3. Overview of PharmaceuticalIndustry
• A pharmaceutical
company whose
focus is to:
• Research
• Develop
• Manufacture
• Market
drugs in the
context of
healthcare.
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They also deal in generic as well as
branded medications.

4. •What do they
research?
•For e.g.
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Insulin (1920)
Penicillin (1930)

5. How do they develop
and grow the
industry?
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• A systematic and
scientific approach;
• Studying human
biology (DNA) and
• Sophisticated
manufacturing
techniques.

6. The Marketing Impacts:
• The global spending on
prescription drugs topped almost
US$ 845 bn. expected to reach
US$ 880 bn. by 2011
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 Demand for nutritional
supplements and
alternative medicines
created new
opportunities and
increased marketing
activities in the industry.

7. •In 2004, the pharmaceutical market
worldwide comprised roughly:
Country Market
Share
U S 45%
Europe 25%
Others 30%
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8. • A single drug
called Lipitor
(cholesterol pill) from
Pfizer with an
annual sales of
$12.9 billion.
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The Second The Third

9. •New drugs hitting the market have
fallen drastically, also the period of
exclusivity has shrunk.
•This has made the brand name drug
makers in the US to focus more on
marketing.
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10. Top 12PharmaCompaniesby Sales2009
Rank Company Country Revenue
in UD$ millions
1 Johnson & Johnson United States 63,747.0
2 Pfizer United States 48,296.0
3 GlaxoSmithKline United Kingdom 44,654.0
4 Roche Switzerland 44,267.5
5 Sanofi-Aventis France 42,179.0
6 Novartis Switzerland 41,459.0
7 AstraZeneca United Kingdom 31,601.0
8 Abbott Laboratories United States 29,527.6
9 Merck United States 23,850.3
10 Wyeth United States 22,833.9
11 Bristol-Myers Squibb United States 21,366.0
12 Eli Lilly United States 20,378.0
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11. Indian Pharmaceutical Industry Overview
• The Indian Pharmaceutical sector:
• Highly fragmented
• With more than 20,000 registered units
• The leading 10 pharmaceutical companies control
36% of the market
• The market leader holding nearly 7% of the market
share
• It meets around 70% of the country's total drug
demand.
Industry is estimated to be worth $ 12
billion, and growing at about 8 to 10 percent
annually.
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12. •In India Pharmaceuticals industry
faces:
1. Severe price competition
2. Government price control (DPCO).
•Added to it the process patent
application;
•Companies will need strong R&D
capabilities as well as innovative
marketing strategies to emerge as
winner.
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13. Top 10 PharmaCompaniesin India
Rank Company Name Revenue 2010
(in crores)
1 Abbot Labs 3,360
2 Cipla 2,507
3 Ranbaxy 2,270
4 GSK 2,015
5 Zydus Cadila 1,800
6 Sun Pharma Ind. 1,790
7 Alkem Pharma 1,600
8 Mankind Pharma 1,556
9 Pfizer 1,525
10 Lupin 1,307
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14. Major Export Markets
• USA is the largest export market (13%),
followed by Russia (8%), Nigeria (7%)
• Export accounts for nearly 32% of the total
revenues and
• Generic drugs constitute 90% of the
exports
Imports
• Germany is the country from where largest
drugs and pharmaceutical imports are
made, followed by Switzerland and USA.
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15. 15
 Marketing means
the whole
business seen
from the point of
view of the final
result, i.e. from
the customer's
point of view.
- Drucker
Pharmaceutical
Marketing in India
It works in this way:

16. •Market in India is prescription-
driven and branded generic.
•80% Prescription market
•20% Institutions/ hospitals and
dispensing doctors.
•The greatest market potential exists
in interior and rural markets, where
growth is estimated at 25% per
annum
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17. • A successful marketing program must
have the following:
• Market research
• Right marketing mix (4 Ps)
• A quality product
• Right price
• Strong dose of promotion
• An extensive distribution network (place)
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18. MarketingStrategies Adoptedin India
• India has over more than 39 million doctors
• A doctor on an average may meet 15 MRs, each
discussing four or more products in a single day.
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Mfgr. • The
producer
Doctor • The
intermediary
Patient • The
consumer

19. • In this scenario, getting the doctor to
remember – let alone the prescription –
will be great challenge to the company’s
marketing representatives.
• The easiest way of creating brand
awareness / loyalty among physicians is
through MR’s visits and persuasion to
doctors on a regular basis
• Doctors are the key decision-makers and
the success of a drug depends upon its
level of acceptance among the doctors
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Sustained promotion pays

20. •In India, marketing of prescription
pharmaceuticals through mass
media is not permissible
•The company’s MR becomes the
chief link between the company
and the doctor, often being
described as the company’s
“ambassador”
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