PROBLEMS AND PROSPECTS PHARMA PRODUCT SELLING..

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PROBLEMS AND PROSPECTS PHARMA PRODUCT SELLING..

  1. 1. 1 Introduction:: The pharmaceutical industry is the world's largest industry due to worldwide revenues of approximately US$2.8 trillion. Pharma industry has seen major changes in the recent years that place new demands on payers, providers and manufacturers. Customers now demand the same choice and convenience from pharma industry that they find in other segment. Indian Pharmaceutical Industry is poised for high consistent growth over the next few years, driven by a multitude of factors. Top Indian Companies like Ranbaxy, Dr.Reddy's , CIPLA and Dabur have already established their presence. Indian companies have only recently entered the area. The Indian pharmaceutical industry came into existence in 1901, when Bengal Chemical & Pharmaceutical Company started its maiden operation in Calcutta. The next few decades saw the pharmaceutical industry moving through several phases, largely in accordance with government policies. Commencing with repackaging and preparation of formulations from imported bulk drugs, the Indian industry has moved on to become a net foreign exchange earner, and has been able to underline its presence in the global pharmaceutical arena as one of the top 35 drug producers worldwide. Currently, there are more than 2,400 registered pharmaceutical producers in India. There are 24,000 licensed pharmaceutical companies. Of the 465 bulk drugs used in India, approximately 425 are manufactured here. India has more drug-manufacturing facilities that have been approved by the U.S. Food and Drug Administration than any country other than the US. Indian generics companies supply 84% of the AIDS drugs that Doctors without Borders uses to treat 60,000 patients in more than 30 countries. There can be several challenges for pharma marketing with global channels opening up from all directions it has become an art of its own kind. As the fourth largest market in the Asia Pacific Region and an important player among the fast growing pharmaceutical markets, India has also witnessed considerable growth in its expansion activities with the establishment of IPR, rising middle class population, emerging rural markets and improvement in medical infrastructure facilities. Amongst the fast paced global market, Indian pharma market occupies a predominant position and is the second fastest growing sector in India, after IT. The statistic shows that the Compound Annual Growth Rate (CAGR) during 2004-08 for India’s pharmaceutical market was 13.8 per cent. In view of the significant market growth, it is estimated that by 2014 and 2019, overall pharmaceutical sales will reach Rs 1539 bn (US$40.18 bn) and Rs 2648 bn (US$ 70.60 bn) respectively. A key requirement for growth is undeniably the country’s booming economy and greater state involvement in the health sector. Apart from the fast growing economy, India’s large, growing and ageing population is a major attraction for pharmaceutical firms. According to the UN Population Division, the number of people living in the country will increase from 1.04 bn in 2000 to 1.41 bn in 2020 – a rise of 36 per cent At the same time, the population aged 65 and over will increase from 4.3 per cent to 6.3 per cent over the same period, though the pharmaceutical expenditure in 2009 was 1.24 per cent of GDP, which is just below the global average of 1.40 per cent. The inevitable growth of pharmaceutical sector in the country is vivid from the above factors.
  2. 2. 2 The Indian Pharmaceutical industry is highly fragmented with about 24,000 players (around 330 in the organized sector). The top ten companies make up for more than a third of the market. The Indian pharma industry (IPM) grew by 16% YoY in 2012 to ` 629 bn. It accounts for about 1.4% of the world's pharma industry in value terms and 10% in volume terms. Besides the domestic market, Indian pharma companies also have a large chunk of their revenues coming from exports. While some are focusing on the generics market in the US, Europe and semi-regulated markets, others are focusing on custom manufacturing for innovator companies. Biopharmaceuticals is also increasingly becoming an area of interest given the complexity in manufacture and limited competition. The drug price control order (DPCO) continues to be a menace for the industry. There are three tiers of regulations – on bulk drugs, on formulations and on overall profitability. This has made the profitability of the sector susceptible to the whims and fancies of the pricing authority. In connotation, with pricing policy of 354 drugs,NLEM (National list of essential medicines) was released, which covered the list of the drugs which the authority intends to put under price control. The policy has been stiffly opposed by the pharmaceutical industry. Introduction of GDUFA (Generic drug user fee Act) in US. As per this act, the generic companies are required to pay user fees to USFDA, for application of drugs and manufacturing facilities. This fee will be utilized by USFDA to engage additional resources in order to reduce current and pending applications and speed up the approval process. (Note: This act was passed in 2011, which was signed into Law in July 2012). The R&D spends of the top five companies is about 5% to 10% of revenues. This ratio is still way below the global average of 15% to 20% of sales. Indian companies have adopted various strategies for their R&D efforts. Some have entered into collaboration and partnership agreements with innovator companies; others have out-licensed their molecules for milestone payments. Hiving off R&D units into separate companies has also become a preferred option for many Indian pharma players. That said, given that the research pipelines of Big Pharma are drying up, they have now begun to dabble in generics. In this regard, these innovator companies are either buying out Indian firms or are forging alliances with them. Objectives:: The objective of the study is find problem and prospect of medical product selling of Dankuni Regeion with the help sample of 50 no of sales staff and some doctors & suppliers. Study area:: Different studies have been done on problem & prospects medical products selling previously. The present investigation has been carried out at Dankuni Region of west
  3. 3. 3 Bengal with the help of 50 no of sales staff (GSK Ltd) and some doctors & suppliers. . For proper and orderly study the selected salesmen are asked to give their views. Methodlogy:: The present study was a descriptive research conducted between Dec-2012-Feb 2013(3months).The study comprises on some selected open-ended & close-ended questions to 50 no of sales people of age group between 30 - 56 years and some doctors & supplier of selected questions (Table 1). Table 1:: Sales people:: 1. How many customers do you meet every day? 2. What types of medicine do you sell every day? 3. What do you think about your profession? 4. What is the level of satisfaction you have got in this profession? 5. Do you find any future in this profession? 6. What is your food habit during working time? 7. What types of behavior do you expect from the customer (Doctors & Distributors)? 8. What types of behavior do you got from them? 9. Does this profession create any problems regarding your family matter? Company:: 1. Are you satisfied with your salary? 2. What is your boss first reaction when you failed to achieve target? 3. What is your reaction in perspective of your boss’s reaction? Suppliers:: 1. Do you face any problems regarding supply of product as per sales people Commitments? 2. Do you think sales people are satisfied with their job? 3. What types of behavior do you got from them? Doctors:: 1. What types of behavior do you got from the sales people? 2. Are think that they are satisfied with their job? 3. What is your first reaction when you meet with the sales people?
  4. 4. 4 Sample size:: N=50 (Where n= No of Respondents) The primary data collect from 50 no of sales people of GSK Ltd of age group between 30 - 56 years and some doctors & supplier doctors to present the entire profession of Dankuni Region of W.B. Data collection:: Data collection is done in one stage with face to face conversation and over telephone. Of 50 no of sales people of age group between 30 - 56 years and some doctors & supplier doctors of Dankuni Region of W.B. of GSK Ltd. Discussion:: The study tells that the sales people of GSK Ltd are visit average 18 persons (Dr.- 11/Chemist-6/Store-1) every day as per data. They sell different types of medicine like Paracetamol, Calcium & Health drink ( Horliks). Maximum people (70%) are enjoy their work while few (20%) are not happy with their profession and some of them(10%) trying for substitute work according to their qualification. More than 30% people sometimes get tired due to busy scheduled and heavy pressure of target and some times get depressed. Maximum time they don’t give much time for food and can’t maintain proper fooding habit. More than 80% people think that there is a good future in this profession. They eat light food like fruit, fruit, juice, biscuits & sandwiches. They don’t like to take heavy food during their visit. They expect good behavior from the customer but get average behavior from them (77%). More than 45% sales people think that selling profession create a problem in their family life but maximum people don’t think like that. Maximum people (80%) are satisfied with their income (Salary + Incentives).When they don’t achieve their target the team leader try to find out the problem and give proper solution for that. Sometime get angry with them but most of the time help them according to their expectation. Maximum supplier(79%) are very much satisfied regarding supply of the medicine and get medicine according to their(sales people) commitment. They think that maximum (74%) sales people are satisfied with their job and try to maintained good behavior with them (supplier). Doctor’s thinks (60%) Sales people are very much professional and intelligent people and maintained good behavior with them. Doctor thinks that the maximum sales people are satisfied with their job but sometime get board due to repetitive work in nature.47% doctor don’t like to attend to many sales call and try to maintained good behavior with them.
  5. 5. 5 Conclution:: FY12/CY11 was a challenging on domestic front. The companies witnessed a sluggish growth in the 1HFY12, on the back of severe competition in the acute segment. Increasing competition from MNCs and unlisted companies impaired the growth of local players. Though the Indian Pharma Industry grew by 16% vs 18% in FY11, large part of the growth was contributed by the chronic segment. MNC pharma companies continued to excel during FY12/CY11. Of the 25 top selling brands, 13 were from the MNCs. On the margin front, performance was not good. Most of the companies saw increase in raw material and employee costs. Companies continued to increase their MR strength and expand their reach to rural areas. In the US, generic companies witnessed robust growth, as billion dollar products like, Lipitor, Zyprexa, Plavix came off patent. On the other hand Europe continued to face pressure. Rupee depreciation was one important aspect which helped the industry. Many companies benefited due to rupee depreciation, especially the companies who had not hedged their receivables. Many companies had received warning letters from the USFDA in the past. The year saw some green signals from US regulator. While Aurobindo, Cadila and Claris got USFDA clearances, Ranbaxy entered into a consent decree with USFDA in order to gets its two manufacturing facilities re-approved by the US authorities. The product patents regime heralds an era of innovation and research resulting in the launch of new patented product launches. In the longer run, domestic companies would face fresh competition from MNCs, as they would make aggressive new launches. However, the latter would most likely be subject to price negotiation. Drugs having estimated sales of over US$ 80 bn are expected to go off patent between CY12 and CY15. With the governments in the developed markets looking to cut down healthcare costs by facilitating a speedy introduction of generic drugs into the market, domestic pharma companies will stand to benefit. However, despite this huge promise, intense competition and consequent price erosion would continue to remain a cause for concern. The developing markets viz; Brazil, Turkey, Mexico, Russia etc are expected to witness growth of around 25% during 2014-15. Like India, emerging markets are also “Branded” by nature, thus Indian companies are well poised to capitalise on the opportunities in these markets as well. The life style segments such as cardiovascular, anti-diabetes, anti-depressants and anti- cancers will continue to be lucrative and fast growing owing to increased urbanization and change in lifestyle patterns. High growth in domestic sales in the future will depend on the ability of companies to align their product portfolio towards the chronic segment
  6. 6. 6 as the lifestyle diseases like hypertension, congestive heart failure, depression, asthma, and diabetes are on the rise. Contract manufacturing and research (CRAMS) is expected to gain momentum going forward. India’s competitive strengths in research services include English-language competency, availability of low cost skilled doctors and scientists, large patient population with diverse disease characteristics and adherence to international quality standards. As for contract manufacturing, both global innovators and generic majors are finding it profitable to outsource production. Although the scenario has yet not improved for this space after the financial crisis, it is expected to improve going forward as the pressure to prune costs increases. As per the McKinsey report, Indian pharmaceuticals market is expected to grow to US$ 55 bn in 2020 and has a potential to reach US$ 70 bn by 2020. As the sales division and the sales person are the back bone of the company and all the planning are failed if they failed not only that the problem and prospects of the pharmaceutical industries are very much affecting the sales man life and the company policy as we discuss above. From that above discussion and on the basis of discussion of questioner we get following problem & prospects of medical products selling: Problems:: • Loneliness can be a problem for medical sales representatives, who are often away from their home base for long periods of time. In spite of the rewards, this can be a very stressful job, with some reps experiencing burnout after some years in the role. • The working day is often extended by travel, which has the potential to disrupt domestic routine and family and social life. However, many appreciate getting to know their customers in social settings and enjoy the benefits of corporate entertainment. • Travel within a working day is frequent, absence from home at night is occasional and overseas work or travel is uncommon. • Food habits & family life create problem. Prospects:: • Range of typical starting salaries: 18,000 – 24,000 (salary data collected Jan 13). • Range of salaries with three to five years' experience: 25,000 – 35,000 (salary data collected Jan 13). • Range of salaries at senior levels: 30,000 – 55,000 (salary data collected Jan 13).
  7. 7. 7 • The range of salaries varies according to level and experience. Successful sales staff can achieve high earnings consisting of a basic salary supplemented with performance-related pay. • Many companies offer other incentives and benefits such as a quality company car, private health insurance, holidays abroad and similar rewards. • Working hours typically include regular extra hours, but not weekends or shifts. The car is a mobile office, but a room at home is also necessary for storing promotional products and samples. • Self-employment/freelance work is not possible. It may be possible to offer a service to companies launching new products and wanting extra coverage, though this requires a lot of contacts. • The prospects for re-employment after a career break are good. Part-time work is possible. • Opportunities occur throughout the UK, but the job usually involves responsibility for a particular geographical area. Good sales staff may find themselves head-hunted from one company/region to another. • One can rise from the position of a medical representative depending on his caliber to higher positions in sales division or can enter into marketing division. References:: 1. http://www.wikipedia.org. 2. http://www.google.co.in. 3. McKinsey consultancy. 4. The Indian Pharmaceutical Industry, Feb2012, ICRA. 5. The International Pharmaceutical Industry, Feb2012, ICRA. 6. http://www.iitk.ac.in. 7. GSK Sales people.

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