Pharmaceutical marketing and policies

2. Contents
Definition
Overview
Pakistan Pharmaceutical Market
Opportunities
Various Therapeutic Segments in Pakistan Market
 Challenges to the Pharmaceutical Industry
Effective Marketing Strategies and Recommendations
Govt. Policies to regulate pharma-market in Pakistan
References

3. Definition:
Marketing:
Marketing is the process of communicating the value of a
product or service to customers, for the purpose of selling that
product or service.
Pharmaceutical marketing:
Pharmaceutical marketing sometimes called medico-marketing
or pharma marketing in some countries, is the business of
advertising or otherwise promoting the sale
of pharmaceuticals or drugs.
Policy:
A policy is a statement of intent, and is implemented as a
procedureor protocol.

4. Overview of Global Pharmaceutical Market:
The whole global Pharmaceutical market is valued at
650 billion US$ (2008-09), with an annual growth rate
of 8% and continuing with the rate it will cross the
value of 1.1 trillion US$ by 2014.
On the basis of value the global market is governed by
USA, EU and Japan with a share of 48%, 28% and 12%,
respectively. The rest of the world has only 20% of the
total world Pharmaceutical market.

5. Overview of Pakistan Pharmaceutical Market:
Enterprises/ Companies 600
Number of employees Over100,000
R&D Expenditure 1% to MOH
Registered Drugs 47000
Controlled price drugs Almost all
Market size
1.64 billion
US$

6. Pakistan Pharmaceutical Market:
Present and future:
The Pakistan Pharmaceutical market is over saturated
due to the inclusion of many routine pharmaceutical
companies manufacturing or supplying traditional
products of same kind with different brands.
Pakistan has US$1.64bn pharmaceutical market and is
the 10th largest in Asia Pacific.
Annual per-capita spending on medicine is US$10,
which is far below the regional average of US$142.

7. Cont...
 Pakistan meets 80% of its domestic demand of medicines
from local production and 20% through imports.
 The market for pharmaceuticals in Pakistan has been
expanding at a rate of around 10 to 15% since last few years.
 Pakistan is also exporting its surplus drugs to a large
number of countries particularly to the Asian and African
regions.
 By 2019, we expect the pharmaceutical market to reach a
value of PKR290bn (US$2.12bn). Because of growth rate of
2.69 and increase health awareness, which increases the
per capita expenditure in the future.

8. Opportunities:
 Among all the therapeutic groups, alimentary tract and
metabolism, and systemic anti-infective lead the market
with shares of 20.28% and 24.7%, respectively.
 These two segment have got extreme importance in the
pharmaceutical sector.
 But by looking at the current situation, the number of
hypertensive patients is increasing at an alarming ratio,
along with the emergence of new diseases.

9. Various Therapeutic Segments in Pakistan Market :
S.No Therapeutic Class Share% Growth%
TOTAL MARKET 100 11
01 Alimentary Tract & Metabolism 20.8 10
02 Blood & Blood Forming Organs 3.3 19
03 Cardiovascular System 7.2 07
04 Dermatological 3.5 13
05 GU System & Sex Hormones 2.6 05
06 Systemic Hormones (excluding sex
hormones)
1.0 12
07 Systemic Anti-infective 24.7 13
08 Hospital Solutions 1.0 03

10. Challenges to the Pharmaceutical Industry:
 Pakistan pharmaceutical market is growing at a steady rate
but there are certain challenges which pose a great threat to
the industry.
1. Total government control on the prices of all the enlisted
products.
2. Import of raw material which costs a lot of precious
foreign exchange.
3. Rapid devaluation of the rupee against the major
currencies, due to which the profit margins are shrinking.

11. Cont...
4. Increasing cost of manpower and energy.
5. Low R&D expenditure, which can lead to the suffering of
the masses for not conducting sufficient research on the
newly emerging diseases in the Pakistani environment.
6. Political instability which leads to discontinuation of the
policies.
7. Last but not the least, the deteriorating law and order
situation, due to which most of companies have suffered
in terms of sales and also lack of reach to the customers
in the affected areas.

12. Effective Marketing Strategies and Recommendations:
1. Pharmaceutical Marketing Plan;
 In pharmaceutical the drugs can not be promoted directly to the
end users. Drugs are promoted to the doctors and in return
these doctors prescribe those drugs to the patients for the end
use.
 As in other industries, marketing plan for advertising or
promoting products is crucial to pharmaceutical industry.
 However, a few countries (till date two countries- New Zealand
and United States) allow direct-to-consumer advertising (DTC
advertising) for pharmaceutical products.

13. 2. Traditional Pharmaceutical Marketing Strategies
adopted in Pakistan;
 Giving drugs as free samples to doctors.
 Providing details of their products through journal articles or
opinion leaders.
 Gifts that hold the company logo or details of one or multiple
drugs.
 Sponsoring continuing medical education.
Pharmaceutical representatives/medical representatives, are
the major pharmaceutical marketing strategyfor marketing
drugs directly to the physicians. Typically, the expense of this
sales force of any pharmaceutical company comprises anything
ranging from 15-20% of annual product revenues.

14. 3. New Pharmaceutical Marketing policies-Why
Needed?
 the current business and customer trends are continuously creating
new challenges as well as opportunities for increasing profitability.
 If the pharmaceutical companies want to improve their Return-On-
Investment (ROI), they have to adopt new communication
technologies (digital media) along with their conventional sales force
of medical representatives.
 They really need to adopt this multi channel marketing strategies for
the following reasons.
1. The concept of blockbuster drugs ( patent drugs ) is dying out for big
pharmaceutical companies.

15. Cont...
2. Small pharmaceutical companies use the force of digital media,
having a lower investment cost.
3. Due to increase patient load customer behaviour are rapidly
changing they are more inclined towards Internet for obtaining
relevant information.
4. Digital media marketing are Website marketing, online marketing,
social media, forums, chat rooms and any other such media.

16. 4. The Right Pharmaceutical Marketing Strategy ;
 Internet marketing plan is the best marketing strategy.
 It should be a multi channel marketing strategy but should identify
the target audience.
 Every digital media used for all people can not be called the right
marketing strategy.
 The focus should be on the high value customer segment for
pharmaceutical products.
 To formulate a marketing strategy, it is also crucial to know the
existing markets as well as emerging markets of pharmaceutical
drugs.

17. Govt. Policies to regulate pharma-market in Pakistan;
 The Drugs Act, 1976, regulates the pharmaceutical sector in
Pakistan.
Salient features;
 An Act to regulate the import, export, manufacture, storage,
distribution and sale of drugs.
 It extends to the whole of Pakistan and Federally Administered
Tribal Areas(including Export Processing Zones).
 Drugs Act, 1976 is a Federal legislation with distribution of
functions between the Federal Government and Provincial
Governments as follows:-

18. Federal Government Provincial Government
Manufacture
 Registration
Pricing
Import
Export
Sale

19. Cont...
 Under this Act, the Federal Government has laid down
the following rules to carry out various functions entrusted
to it.
1. The Drugs (Licensing, Registering and Advertising) Rules
1976.
2. The Drugs (Labelling and Packing) Rules, 1986
3. The Drugs (Import and Export) Rules, 1976
4. The Drugs (Appellate Board) Rules 1976
5. The Drugs (Research) Rules, 1978.
6. The Drugs (Specifications) Rules, 1978.
7. The Drugs (Federal Inspectors, Federal Drug Laboratory
and Federal Government Analysts) Rules, 1976

20. References:
1. www.scribd.com/doc/32798131/PHARMACEUTICAL-SECTOR-IN-
PAKISTAN.
2. Int. Jour. of Business & Inf. Tech. Review of Pakistan Pharmaceutical
Industries.