1. SANDIPAN MANDAL
FRESENIUS KABI INDIA PVT. LTD.
Rural Market – An Insight

2. Why Rural Markets???
 India’s growth trajectory is highly driven by the development of the
rural population
 For many years, rural India was not much acknowledged by the
pharmaceuticals companies
 But as the ‘bottom of the pyramid’ is getting empowered with
education, higher purchasing power and awareness, companies are
looking for opportunities
 Players in various industries such as retail, FMCG, pharmaceuticals,
consumer durables, automobiles etc, are looking towards the untapped
potential of these markets

3. IPM - 2012
Total IPM
 Value: 48871.35 crs
 % growth: 14%
Extra Urban Market
 Value: 15000 crs
 % growth: 19%
Ref: ORG-IMS MAT Apr’2011

4. Key Points
 IPM is doubling every 5 years
 Growth factors:
 Old products
 New products
 Price
 Acute shortage of new launch options
 Increased contribution from hospital segment
 Focus of extra urban segment

5. Key Players
 Mankind Pharma
 Abbott Healthcare
 Dr. Reddys Lab
 Ranbaxy Labs
 Glenmark Pharma
 Sanofi Aventis
 Fresenius Kabi India
The rural market is also cluttered with local generic players

6. Model
 Head Quarters: Class I to Class III towns
 Doctor: All Doctors
 Products: All fast moving molecules
 High thrust on Prescription generation
 Price Advantage
 Retails Schemes

7. Strategy & Tactics
 Visual Aids must be designed with simple and eye-catching text &
images, if possible in local language
 Promoting brands in local medical publications or in the local
associations publication
 Detailing and educating the doctors enhance the relationship, organize
GP Meets (Audio/Visual) campaigns
 Pricing & packaging to suit the GP and Rural markets (Low Value/Low
Volume packaging)

8. Target Audience
 General Practitioners (MBBS & Non-MBBS)
 RMPs / PMPs
 Primary Healthcare Centers
 Govt. Dispensaries
 Major Rural chemists (Having self practice)
 All Doctors in Class III HQs

9. Challenges
 Pricing – Highly price dependent, hence need to be as par or lower
than competitors
 Recruitment - shortage of skilled manpower
 Attrition
 Low brand Loyalty
 Trade Discounts / Schemes – Chemists dominate the markets
 Profitability – Time to reach break-even are delayed due to low margins

10. Sandipan.mandal@fresenius-kabi.com
9999915848