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           PROJECT REPORT ON
   TO STUDY THE PROBLEM OF NEW PRODUCT
  MARKETING IN PHARMACEUTICALS INDUSTRY
                   AT
               CIPLA LTD




                   BY
             SUBMITTED BY

              VIVEK V ALAI

                  TO
          UNIVERSITY OF PUNE,
                PUNE

     IN PARTIAL FULFILLMENT OF THE
   REQUIREMENT FOR THE AWARD OF THE
DEGREE OF MASTER BUSINESS ADMINISTRATION

        DR B.V. HIRAY INSTITUTE OF
        MANAGEMENT & RESEARCH
                 MALEGAON
                  (2012-13)
Chapter no.           Topic          Page no.
     I          Introduction of
                     project
              Introduction of the
                      topic
                Selection of the
                      topic
                Scope of study
              Limitation of study
    II             Research
                 methodology
                   Definition
              Data collection on
               Objective of study
              Hypothesis of study
              Review of literature
    III        Company profile
    IV        Theory of literature
     V           Data analysis,
               interpretation,&
                 presentation
    VI          Observation &
                    findings
   VII           Conclusion &
                  suggestions
   VIII         Bibliography &
                 webliography
    IX             Annexure
I. Introduction of
       project
i.       Introduction of topic

     OVERVIEW OF PHARMACEUTICAL SECTOR:

     Accounting for two percent of the world's pharmaceutical market, the Indian
     pharmaceutical sector has an estimated market value of about US $8 billion. It's at
     4th rank in terms of total pharmaceutical production and 13th in terms of value. It
     is growing at an average rate of 7.2 % and is expected to grow to US $ 12 billion
     by 2010.

     Over the last two years the pharmaceutical market value has increased to about
     US $ 355 million because of the launch of new products. According to an estimate,
     3900 new generic products have been launched in the past two years. These have
     been by and large launched by big brands in the pharma sector. And in the year
     2005 Indian pharmaceutical companies captured around 70% of the domestic
     market.

     As in the present scenario, only a few people can afford costly drugs, which have
     increased price sensitivity in the pharmaceutical market. Now the companies are
     trying to capture the market by introducing high quality and low price medicines
     and drugs.

     With the Product Patent Act, which came into action in January 2005, this industry
     is able to attract big MNCs to India. Earlier these big firms had apprehensions in
     launching new drugs in the Indian market.

     At present, a large number of Indian pharmaceuticals companies are looking for
     tie-ups with foreign firms for in-license drugs. GlaxoSmithKline is among the top
     choices for the firms that wish to launch their product in India, but do not have any
     branch over here.

     Contract research and pharmaceutical outsourcing are the new avenues in the
     pharmaceutical market. Contract manufacturing is growing at a very fast pace and
     is estimated to grow to US $30billion, whereas contract research is estimated to
     reach US$6-10 billion.

           Indian multinational companies like Dr.Reddy's Lab, Cipla, Ranbaxy, etc
     have created awareness about the Indian market prospects in the international
     pharmaceutical market. Approvals given by Foods and Drugs Administration
     (FDA) and ANDA (Abbreviated New Drug Application)/DMF (Drug Master File)
     have played an important role in making India a cost effective and high quality
     product manufacturer. Furthermore, the changes that took place in the patent law,
change of process patent to product patent, have helped in reducing the risk of
   loss for intellectual property.

 ii.    Scope of study

   Scope of Study
 The research helps in dealing with consumers.
 Future researches nay use it as a secondary source of data.
 It provides very useful information about usage behaviors of the cipla respiratory
  new product brand.
 The research report could be further used by me in future for advanced research
  on the topic.

   Limitation

 The area covered by me was very very small that is only Dehradun.
 Consumers were not aware about the entire new products of Sanofi-Aventis
  Pharmaceuticals.
 There were not enough parameters or the study material available for the
  interpretation of the result so as to reach to a final conclusion.
II. Research
 methodology
SWOT OF SANOFI -AVENTIS
STRENGTH:

 Good market position of blockbuster drugs.
 Good Indian culture/background

WEAKNESS:

 Relative small market share (5 %) compared to Pfizer(10.9%)
 Same infrastructure in many countries.

OPPURTUNITY:

 Good Market Power.
 Economies of scale/ R&D
 Synergies in administration.
 Many developments cannot be financed without merger.

THREATS:

 Diseconomies of scale due to the broader organization and
Complicated communications.

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  • 1. A PROJECT REPORT ON TO STUDY THE PROBLEM OF NEW PRODUCT MARKETING IN PHARMACEUTICALS INDUSTRY AT CIPLA LTD BY SUBMITTED BY VIVEK V ALAI TO UNIVERSITY OF PUNE, PUNE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER BUSINESS ADMINISTRATION DR B.V. HIRAY INSTITUTE OF MANAGEMENT & RESEARCH MALEGAON (2012-13)
  • 2. Chapter no. Topic Page no. I Introduction of project Introduction of the topic Selection of the topic Scope of study Limitation of study II Research methodology Definition Data collection on Objective of study Hypothesis of study Review of literature III Company profile IV Theory of literature V Data analysis, interpretation,& presentation VI Observation & findings VII Conclusion & suggestions VIII Bibliography & webliography IX Annexure
  • 4. i. Introduction of topic OVERVIEW OF PHARMACEUTICAL SECTOR: Accounting for two percent of the world's pharmaceutical market, the Indian pharmaceutical sector has an estimated market value of about US $8 billion. It's at 4th rank in terms of total pharmaceutical production and 13th in terms of value. It is growing at an average rate of 7.2 % and is expected to grow to US $ 12 billion by 2010. Over the last two years the pharmaceutical market value has increased to about US $ 355 million because of the launch of new products. According to an estimate, 3900 new generic products have been launched in the past two years. These have been by and large launched by big brands in the pharma sector. And in the year 2005 Indian pharmaceutical companies captured around 70% of the domestic market. As in the present scenario, only a few people can afford costly drugs, which have increased price sensitivity in the pharmaceutical market. Now the companies are trying to capture the market by introducing high quality and low price medicines and drugs. With the Product Patent Act, which came into action in January 2005, this industry is able to attract big MNCs to India. Earlier these big firms had apprehensions in launching new drugs in the Indian market. At present, a large number of Indian pharmaceuticals companies are looking for tie-ups with foreign firms for in-license drugs. GlaxoSmithKline is among the top choices for the firms that wish to launch their product in India, but do not have any branch over here. Contract research and pharmaceutical outsourcing are the new avenues in the pharmaceutical market. Contract manufacturing is growing at a very fast pace and is estimated to grow to US $30billion, whereas contract research is estimated to reach US$6-10 billion. Indian multinational companies like Dr.Reddy's Lab, Cipla, Ranbaxy, etc have created awareness about the Indian market prospects in the international pharmaceutical market. Approvals given by Foods and Drugs Administration (FDA) and ANDA (Abbreviated New Drug Application)/DMF (Drug Master File) have played an important role in making India a cost effective and high quality product manufacturer. Furthermore, the changes that took place in the patent law,
  • 5. change of process patent to product patent, have helped in reducing the risk of loss for intellectual property. ii. Scope of study Scope of Study  The research helps in dealing with consumers.  Future researches nay use it as a secondary source of data.  It provides very useful information about usage behaviors of the cipla respiratory new product brand.  The research report could be further used by me in future for advanced research on the topic. Limitation  The area covered by me was very very small that is only Dehradun.  Consumers were not aware about the entire new products of Sanofi-Aventis Pharmaceuticals.  There were not enough parameters or the study material available for the interpretation of the result so as to reach to a final conclusion.
  • 7. SWOT OF SANOFI -AVENTIS STRENGTH: Good market position of blockbuster drugs. Good Indian culture/background WEAKNESS: Relative small market share (5 %) compared to Pfizer(10.9%) Same infrastructure in many countries. OPPURTUNITY: Good Market Power. Economies of scale/ R&D Synergies in administration. Many developments cannot be financed without merger. THREATS: Diseconomies of scale due to the broader organization and Complicated communications.