A

Project Report
On
Promotion Strategy
Of
Cadila Ltd.
(Ahmedabad)

Submitted To:- Submitted By:-

Teena.Y.Sharma Bhavesh Patel (SCLM-202)
Faculty of Marketing Bhavesh Rana (SCLM-203)
HLCPE Jignesh Noriya (SCLM-207)
Manoj Sadhu (SCLM-212)
Rujul Bhatt (SCLM-219)

H.L.CETRE FOR PROFESSIONAL EDUCATION 1

 ACKNOWLEDGEMENT
We all thank you to Teena Madam for guiding us in making this project report.

We would also like to thank to our classmates those who have directly or indirectly
help us extended their kind support in completing this project.

At the time of making this report we express our sincere gratitude to all of them.

We must first express our gratitude to Mr. N.M.Rao who has worked as a Marketing
Manager and also to Medical Representative, Distributor and Chemists.

Bhavesh Patel (SCLM-202)

Bhavesh Rana (SCLM-203)
Jignesh Noriya(SCLM-207)
Manoj Sadhu(SCLM-212)
Rujul Bhatt(SCLM-219)

H.L.CETRE FOR PROFESSIONAL EDUCATION 2

 CONTENTS

LIST OF CHAPTERS

SR. TITLE PAGE

NO. NO.
1. PREFACE 4

2. COMPANY PROFILE 17

3. OBJECTIVES OF THE RESEARCH 20

4. DATA ANALYSIS 21 LIST OF

5. CONCLUSION 27 TABLES &

6. FEEDBACK & SUGGESTIONS 28
GRAPHS
7. BIBLIOGRAPHY 29
SR. TITLE PAGE
8. QUESTIONNAIRE 30
NO. NO.
1 TABLES & GRAPHS 21-27

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 PREFACE

It is often the first exposure to corporate culture that a student receives, particularly
true for students without prior work experience.

The one year course in a management programme entails the teaching of fundamental
concepts. The objective is to give the students a firm grounding in the theories of
management and expose them to a wide array of subjects. Marketing Project serves as
icebreakers, and helps the students to internalize some concepts that they have learnt
during the common module of one year programme.

As a part of curriculum of Post Graduate Diploma Programme , We had a Marketing

Project on Promotional Strategies of CADILA PHARMACEUTICALS LTD. It is
one of the well-known pharmaceutical company in India. Equipping its personnel
with the latest knowledge and skill has been the strategy of the company to gear for
the new millennium. The company believes that emphasis on employee, will provide
the company long-term benefits.

The project report gives a background of company profile and its present position in
the global industry. It also includes the strategies and planning which are to be
implemented in the near future.

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 PHARMACEUTICAL INDUSTRY OVERVIEW

“The Indian pharmaceutical industry is a success story providing employment for

millions and ensuring that essential drugs at affordable prices are available to the vast
population of this sub-continent.”

There are 20000 Pharma Industries in India. But there are 15000 are non organized
and 4000 are organized and 800 are well organized they have manufactured plant and
they have all department markting.
The company which is most famous are the Ranbaxy , Glaxo Pharma , Cipla and
Cadila .

The Indian Pharmaceutical Industry today is in the front rank of India’s science-
based industries with wide ranging capabilities in the complex field of drug
manufacture and technology. It ranks very high in the third world, in terms of
technology, quality and range of medicines manufactured.

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 Indian Pharmaceutical Industry: The Changing Prescription
Indian Pharmaceutical industry is valued at Rs.30,000 crore.

In this industry there are about 24,000 companies - big, medium and small

Out of which top 250 pharmaceutical companies have 70% of the market share
with market leader holding nearly 7% of the market share.

Indian pharmaceutical is ranked 10 among the world

It is an extremely fragmented market with severe price competition and

government price control.

Industry accounts to a growth rate of 14% (approx.) annually in (FY 2006-07).

Over 60% of drug produced in India is exported to other countries.

The total Indian production constitutes about 1.3% of the world market in
value terms and, 8% in volume terms.

Research & Development is the key to the future of pharmaceutical industry.

The R & D expenditure by the Indian pharmaceutical industry is around 1.9%

of the industry’s turnover.

It is relatively low as compared to other developed countries of the world that

is around 16%.

Following the de-licensing of the pharmaceutical industry, industrial licensing

for most of the drugs and pharmaceutical products has been done away with.
Manufacturers are free to produce any drug duly approved by the Drug
Control Authority

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 These units produce the complete range of pharmaceutical formulations, i.e.,
medicines ready for consumption by patients and about 350 bulk drugs, i.e.,
chemicals having therapeutic value and used for production of formulations.

DOMESTIC PRODUCERS :
• Ranbaxy
• Gloxo Pharma
• Cipla
• Cadila
• Cr. Reddy’s Laboratories
• Lupin
• Nicholas Piramal India
• Orchid
• Sun Pharma
• Torrent Pharmaceuticals
• Wockhardt
• Zydus Cadila
The Indian Pharmaceuticals sector has come a long way, being almost non-
existing during 1970, to a prominent provider of health care products, meeting almost
95% of country’s pharmaceutical needs. The domestic pharmaceutical output has
increased at a compound growth rate (CAGR) of 13.7% per annum. Currently the
Indian pharma industry is valued at approximately $ 8.0 billion. Globally, the Indian
industry ranks 4th in terms of volume and 13th in terms of value. Indian
pharmaceuticals industry has over 20,000 units. Around 260 constitute the organized
sector, while others exist in the small-scale sector.

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 MARKETING MIX OF THE COMPANY

Marketing mix is a set of controllable marketing variables that the firm plans to
produce the response it wants in the target market.”

“Marketing mix is an optimum combination of all marketing components which

facilitates realization of company’s objectives.”

“Marketing mix is a set of marketing tools that the firm uses to achieve its marketing
objectives in the target market.”

“Marketing mix is the blending of 4 inputs or sub-mixes, which form the core of
marketing system. They are:
• Product
• Price
• Promotion &
• Place.

MARKETING MIX OF CADILA PHARMACEUTICAL

A Product is anything that can be offered to a market to satisfy a want or need. A
product means the bundle of things, which satisfy human needs.

PRODUCT MIX.

1. CARDIOVASCULAR DRUGS
2. GASTROINTESTINAL DRUGS
3. ANTI-INFLAMMATORY / ANALGESIC DRUGS
4. ANTIBIOTICS / ANTI-INFECTIVE
5. VACCINES / IMMUNOMODULATORS
6. ANTI-DIABETIC DRUGS
7. VITAMINS / HAEMANTINICS
8. HAEMOSTATICS

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 9. PSYCHRIATIC AGENTS / CNS DRUGS
10. ANTIHISTAMINES
11. ANTI ALLERGIC DRUGS
12. ANTI AIDS (ANTI RETROVIRAL) THERAPY
13. ANTI CANCER (CYTOTOXIC) DRUGS
14. OPHTHALMIC DRUGS
15. VETERNARY PRODUCTS
16. ANTI-ASTHMATIC DRUGS
17. HERBAL PRODUCTS

Product Packaging

The finished Product that is different medicines are packed in very attractive
packages. Cadila Pharmaceuticals concentrate mores on packaging as in the market
full of competition packaging is used as a tool of product differentiation. It has
attractive packages for different kind of therapeutic areas. The packs are normally
packed as per the order and the requirement of the various customers, the company
also offers customized packaging for its customers especially for different big
hospitals.

PRICING DECISION

It is the exchange value of product or services always expressed in monetary terms.

Price is matter of Importance both for the buyer and seller. Price is important factor in
purchase decision. to the seller price is the source of revenue and to buyer price is the
sacrifice of purchasing power. Price is powerful marketing tool. Thus it must be used
correctly from the outset Therefore all marketing planners must plan an accurate
Pricing Decision.

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 PRICING IN THE PHARMACEUTICL SECTOR

1. DRUG PRICE CONTROL ORDER

Drugs and formulations have been subjected to price control for more than three
decades now. The economic reforms initiated by the Government of India in July
1991, trickled down to the Pharmaceutical Industry only in 1994 and that too
partially.

The main objectives of the Drug Policy 1986 are to ensure availability, at
reasonable prices of essential and life saving and prophylactic medicines of good
quality; strengthening the system of quality control over drug production and
promoting the rational use of drugs in the country; creating an environment
conducive to channel zing new investment into the pharmaceutical industry to
encourage cost-effective production with economic sizes and introducing new
technologies and new drugs; and strengthening the indigenous capability for
production of drugs.

The Drugs Price Control Order (DPCO), 1995 is an order issued by the
Government of India under Section 3 of the Essential Commodities Act, 1955 to
regulate the prices of drugs. The Order inter alia provides the list of price
controlled drugs, procedures for fixation of prices of drugs, method of
implementation of prices fixed by Government and penalties for contravention of
provisions among other things. For the purpose of implementing provisions of
DPCO, powers of the Government have been vested in the National
Pharmaceutical Pricing Authority (NPPA). Drugs are essential for health of the
society. Drugs have been declared as essential and accordingly put under the
Essential Commodities Act. Only 74 out of 500 commonly used bulk drugs are
kept under statutory price control. All formulations containing these bulk drugs
either in a single or combination form fall under the price control category.
However, the prices of other drugs can be regulated, if warranted in public
interest.

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 The NPPA was established on 29th August 1997 as an independent body of
experts following the Cabinet Committee’s decision in September 1994 while
reviewing the Drug Policy. The Authority, inter alia, has been entrusted with the
task of fixation/revision of prices of pharmaceutical products (bulk drugs and
formulations), enforcement of provisions of the Drugs (Prices Control) Order and
monitoring the prices of controlled and decontrolled drugs in the country.

2. PRICING OF OTHER PHARMACEUTICAL PRODUCTS

At CADILA PHARMACEUTICAL, Pricing Policy is decided by the Head office by

MD & VP in consultation with Director Sales & Marketing and depending upon
market condition, demand, Raw material Price, Competitors Price and Products and
other factors.
At CADILA PHARMACEUTICALS, price of the medicines is decided taking into
Consideration the following Cost.

1. Raw Material Cost

2. Production/manufacturing Cost
3. Transportation Cost.
4. Packaging & Labeling
5. Research & Development cost
6. Variable & Other Cost is undertaken.
7. Other factors Considered
• Consumer Demand For the Product.
• Analyzing the Competitors Price & Product Range.

PLACE
Pursuant to its corporate philosophy of striving for continuous improvement and
betterment, the Company has re-located its manufacturing operations at the state-of-
the-art plant at Dholka, located 50 km from Ahmedabad, the commercial capital of
Gujarat. Spread over 44 acres of verdant, picturesque surroundings, amidst lush green
lawns and thick foliage, the new locale is the most envied pharmaceutical installation

H.L.CETRE FOR PROFESSIONAL EDUCATION 11

in the Asian sub-continent.

Truly unique in every sense of the term, the Plant’s standards and facilities can match
any other, worldwide. Seven ‘zones of cleanliness’ have been defined and adhered to,
as per the 1997 GMP guidelines of the European Union. Some of the salient features
of the design concepts:

The complex also houses its own full-fledged R&D center, set up at a cost of Rs.200
million.

The Plant is equipped with modern high-speed machines and integrated packaging
lines to be cost efficient. Extensive use of non-fill devices, collators, Brevetti visual
inspection machines, multi-station tablet presses, FFS machines, high speed
vial/ampoule filler/sealers are some of the examples.

The plant—with high capacities and scope for future expansion—is capable of
manufacturing all dosage forms viz. Tablets, Capsules, Liquid Orals, Dry Syrups,
Aseptic Liquid and Solid preparations, Sachets etc.

DISTRIBUTION DEPARTMENT

CPL having well distribution department here the distribution department is related
with marketing, purchase department, supply chain department and production
department. Here the monthly planning is going on for the dispatching the materials.
Distribution department is using FIFO (first in first out) method for managing the
inventory. Works of distribution department is invoice and dispatch the raw materials
and finished goods.

SUPPLY CHAIN DEPARTMENT

Here CPL having supply chain that is use for controlling the flow of raw materials
and finished goods. Supply chain is also cares about the sales loss. This department is
also findings the alternate for purchase the raw materials. Supply chain provide the

H.L.CETRE FOR PROFESSIONAL EDUCATION 12

raw materials to production department and finished goods to marketing department,
so supply chain is the coordination of marketing and production department.

Work of supply chain

Marketing forecast is doing then find out the raw material requirement to purchase
department, production schedule is to be made by supply chain with the meeting of
two-department purchase and production department. Collect the finished goods from
the production department and send it to distribution department. Supply chain is
maintaining the flow of raw materials and finished goods and keep process continue.
These whole processes are going on by preparing sales budget of all the products.

So supply chain is connected with production department, purchase department,

distribution department and marketing department

Flow of finished goods from production department to the

Market

Production unit

Distribution/Dispatch unit

Market/End users

Planning
Planning &
& forecasting
forecasting is
is done
done by
by three
three department
department production
production

department,
department, supply
supply chain,
chain, &
& purchase
purchase department
department

Supply chain also supplies the finished goods from production department to dispatch
department and from dispatch department to the required place means in to the
market.

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Distribution channel within pharmaceutical segment is totally different from any other
segment. In pharmaceutical segment consumer purchase the product from the retailer
on the doctor’s prescription. So, here doctors become direct consumer for any
pharmaceutical company.

DISTRIBUTION CHANNEL

MANUFACTURERS

DISTRIBUTORS

STOCKISTS

RETAILERS DOCTORS

CONSUMERS

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 SWOT- Analysis

Strength

• Cost Competitiveness
• Well Developed Industry with Strong Manufacturing Base
• Access to pool of highly trained scientists, both in India and abroad.
• Strong marketing and distribution network
• Rich Biodiversity
• Competencies in Chemistry and process development.

Weaknesses

• Low investments in innovative R&D and lack of resources

• To compete with MNCs for New Drug Discovery Research and to commercialize
molecules on a worldwide basis.
• Lack of strong linkages between industry and academia.
• Low medical expenditure and healthcare spend in the country
Production of spurious and low quality drugs tarnishes the image of industry at
home and abroad.

Opportunities

• Significant export potential.

• Licensing deals with MNCs for NCEs and NDDS.
• Marketing alliances to sell MNC products in domestic market.
• Contract manufacturing arrangements with MNCs
• Potential for developing India as a center for international clinical trials
• Niche player in global pharmaceutical R&D.
• Supply of generic drugs to developed markets.

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 Threats

Product patent regime poses serious challenge to domestic industry unless it Invests
in research and development

• R&D efforts of Indian pharmaceutical companies hampered by lack of enabling

regulatory requirement. For instance, restrictions on animal testing outdated
patent office.
• Drug Price Control Order puts unrealistic ceilings on product prices and
profitability and prevents pharmaceutical companies from generating investible
surplus.
• Lowering of tariff protection
• The new MRP based excise duty regime threatens the existence of many small scale
pharma units, especially in the states of Andhra Pradesh and Maharashtra that
were involved in contract manufacturing for the larger established players.

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 CADILA PHARMACEUTICALS LTD (CPL)

Cadila Pharmaceuticals (CPL), Ahmedabad, India, exemplifies a spirited Indian

Enterprise. Its phenomenal growth is a corporate epic, an epoch in time nurtured by
52 years of rich, caring heritage with a trail of creditable milestones, CPL today has
evolved to become the undisputed leader in the Indian Pharmaceutical sector, with the
largest therapeutic groups, its operation spanning 45 countries. CPL is multi-
locational company with its global offices & infrastructures.
There are about 200 product in Cadila. But only 50-60 products are market ranked
regular product.

DIVERSIFICATIONS
• Hospital Disposables including Fiberglass Casting Tape for the first time in
India

• Diagnostics

• Laboratory Chemicals

• Pharmaceutical Machinery Manufacturing

• Animal Health Formulations & Feed Supplements

• Agro Business : Plant Tissue Culture and Bio-fertilizers.

• Travel Business

• Strategic Business Alliances with world-leaders

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Today, Cadila Pharmaceuticals is all set to create new records, scale greater heights. It
has created new world-class production and R&D facilities, focusing on research, new
process innovations leading to patents, and meeting global standards. The Company
always places the common man at its core – who should be able to access and afford
our medicines anywhere in the world. For us at Cadila, this is the only true benchmark
of excellence, and the only thing that really matters.

STRENGTHS & SKILLS

o Extensive network of hospitals & medical institutes throughout India.
o GCP trained clinical trial monitoring team.
o Database of investigatiors in diversified therapeutic area.
o Collaborative work with the prestigious Government Research Institutes.
o Production volume equivalent to $ 500 million in sales for a domestic U.S
company considering purchasing power parity.
o 3600 employees.
o 56 years of strong equity in pharmaceuticals.
o Strategic International collaboration with companies in France, Germany,
Australia, U.S.A, Africa & Japan.
o Experienced professionals & highly qualified management & staff.

MAIN PRODUCTS

• A wide spectrum of Anti-TB drugs  Anti-Allergics

• Anti-retrovirals  Pediatric Drugs
• Ophthalmology Drugs  Anti-Migraine
• Cardiovascular Drugs  Anti-Peptic Ulcerants
• Respiratory Drugs  Anxyolytics
• Bone Supplements  Prokinetic
• Cough & Cold  Anti-infectives
• Anti-Hypertensives/Anti-anginals  Anti-Ulcerants
• Anti-Anaemic  Anti-Bacterials
• Anti-Peptic Ulcerants  Vaccines & Sera

H.L.CETRE FOR PROFESSIONAL EDUCATION 18

 • Psychiatry  Anti-Diabetics
• ED Drugs  Antibiotics
• Pain Management  Anti-Oxidants

CADILA’S BASIC PHILOSOPHY

“ A strong accent on indigensation, loyalty to the customers & commitment to

quality”.
IT ATTRIBUTES ITS SUCCESS FOR:
“ AMBITION, INNOVATION, & PERSEVERANCE”

“Our vision is to be a leading pharmaceutical company in India and to become a

significant global player by providing high quality, affordable and innovative
solutions in medicine and treatment “

MISSION

“ We will discover, develop and successfully markets pharmaceutical products to

prevent, diagnose, alleviate and cure diseases “.

“ We shall provide total customer satisfaction and achieve leadership in chosen

markets, products and services across the globe, through excellence in
technology, based on world wide research and development “.

“ We are responsible to the society. We shall be good corporate citizens and will
be driven by high ethical standards in our practices “.

H.L.CETRE FOR PROFESSIONAL EDUCATION 19

 OBJECTIVES OF STUDY

1. To know the different promotion schemes used by different pharmaceutical

companies

2. To set the pricing and promotion strategies.

3. To know the role of doctors in promoting the sales.

The study also gives a view to the company as to which promotional tool should be
used by the company to make awareness of the product.

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 RESEARCH METHODOLOGY

METHODS OF DATA PRIMARY DATA

COLLECTION
RESEARCH INSTRUMENT QUESTIONNAIRE.
PURPOSE OF THE STUDY EXPLORATORY STUDY.
METHOD OF DATA PERSONAL INTERVIEW.
COLLECTION
RESEARCH ENVIRONMENT FIELD STUDY.
SAMPLING AREA AHMEDABAD

ANALYSIS OF QUESTIONARIES SURVEY

H.L.CETRE FOR PROFESSIONAL EDUCATION 21

1. Do you think that promotional activities of any product are required to increase
the sales?

YES
NO

Findings: From the above chart, it could be analyzed, that out of 10 responses
majority of them, i.e. about 70% of the respondents said that promotional activity
is must for Expanding/Increasing sales and 30% said, promotional activity does
not have any influence on increasing the sales of the product.

2. Do you think that Medical Representatives had any impact on sales?

YES
5 NO
DEPENDS

Findings: From the above chart it could be analyzed, that out of 10 responses,
50% of them say that Medical Representative have an impact on sales whereas

H.L.CETRE FOR PROFESSIONAL EDUCATION 22

 20% of them believe that MR do not have any impact on sales whereas 30% of
respondents believe that it depends on other factors as Market Demand,
Company’s Brand name, promotional schemes, types of product and quality as
well.

3. What are the types of promotional schemes that companies are giving since 2
years?

1
GIFTS
2 4
CONFERENCES
TOUR PAKCAGES
COMISSION
3

Findings: From the above chart it could be analyzed that out of 10

responses,40% of them said that companies give gifts, 30% of them said that
companies arrange drug and disease related conferences, 20% said that companies
offer tour packages while 10% of them said that they give monetary commission
as promotional schemes.

4. Which is the other thing besides MR that impacts the sales of the product most?

H.L.CETRE FOR PROFESSIONAL EDUCATION 23

 QUALITY

1 PRICE
4
BRAND NAME
3
COMMISSION
2 FROM CHEMIST
Slice 6

Findings: From the above chart it could be analyzed that besides MR the factor
that impact the sales of the products most is quality of the product according to 10
respondents, while 3 of them believe that brand name is the next factor
influencing sales, while 2 of them say that price and 1 of them of responses say
that commission from chemists impact the sales of the product.

Are any companies giving any kind of gifts? If yes, than what does it mainly consist?
 Watches
• Diaries
• Household Items
• Doctor’s Desktop Items
• Laptops
• Various Decorative Items

5. Do you agree to the practice adopted by various companies with regard to

providing commission on sales?

H.L.CETRE FOR PROFESSIONAL EDUCATION 24

 2

YES
NO

Findings: From above analysis, it could be visualized that 2 responses disagree to the
commission concepts rather they say that indirect way of monitoring compensation
should be suitable.

6. What is the main thing in the product that it affects your prescription?

QUALITY
1
1
GOOD REALTIONSHIPS

5 EASY AVAILABILITY

3
FINANCIAL STATUS OF
PATIENTS

Findings: From the above chart, it could be visualized that 5 respondents are in a
view that quality affects their prescription the most. Whereas 3 of the respondents say
that good relations with medical representatives affect their prescriptions while 1
respondents say that easy availability and 1 respondents say that financial status of the
person affect their prescription.

7. What is the most important ways used by various other companies for their
product promotion?

H.L.CETRE FOR PROFESSIONAL EDUCATION 25

Findings: There were many different views regarding doing product promotions by
different companies. While the most common among them were as follows:-
• Television
• Posters
• Campaigns
• Newspapers
• Training Programs
• Conferences

CONCLUSION

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• From the survey, it was concluded that, for the company, promotional activity
is absolutely necessary for increasing sales. Promotional Activity is required, and
without it sales cannot be increased in this Pharmaceutical extremely fragmented
market with severe price competition.

• The most impacting promotional scheme that influences sales of the

companies are gifts which includes watches, diaries, doctor’s desktop items,
household items, laptops & various other items.

H.L.CETRE FOR PROFESSIONAL EDUCATION 27

 FEEDBACK & SUGGESTION
• Medical Representatives are the channel members require to sale the product
but in addition to it product quality is desirable only than it could be saleable, and
BRAND of the company is to desirable.

• Doctors mainly commits that sales commission given to them is less

influential, rather than non-monetary compensation is the best way to increase
sales.

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 BIBLIOGRAPHY

• Marketing Management by Philip Kotler

• Annual General Report of the Company

• Websites :

• www.google.co.in
• www.cadilapharma.com
• www.drugmanufacturers.com

H.L.CETRE FOR PROFESSIONAL EDUCATION 29

 Questionaiture for the Doctor/Retailer
1) Which kind of promotional strategy used by Cadila?

2) How they promote their existing product &new product?

3) Which kind of strategy are they using against their competitor?

4) Which kind of promotional strategy used by Cadila for prescribed drugs and
general drugs?

5) Which kind of promotional strategy do you think is effective in your point of

view?

Questionaiture for the Distributor

1) How many time a company provide a promotional scheme during a year?

2) Is there increase your sale?

3) Is any target given to you? If you achieved the target, how you get the
incentives?

Questionaiture for the Medical Reprehensive &

Employee
1) How you present an existing product?

2) How you promote a new product?

3) Is there company provide you any training? Or the other consultancy service
provides you training?

4) Is this type training helpful to you?

5) How much time a company change a promotional strategy?

6) What is the effect after changing the promotional strategy?

H.L.CETRE FOR PROFESSIONAL EDUCATION 30

7) Which kind of strategies are a using for a Doctors and Multigiant Hospitals?

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