A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT AT DR.

REDDYS LABORATARIES LTD

SUDMITTED TO
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY-HYD IN PARTIALFULFILMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION BY

A. RAJESH (H.T.NO 08W91E0033)

UNDER THE GUIDENCE OF Mr. FAKRUDDIN ALI AHMED MBA.PHD (Associate Professor)

MALLA REDDY INSTITUTE OF ENGINEERING AND TECHNOLOGY MAISAMMAGUDA (AFFILIATED TO JNTU), HYDARABAD, R.R.DIST.

ACKNOWLEDGMENT

Accomplishment of any work involves many people and this project is no exception. I take this opportunity to express my heartfelt thanks to all those who have directly or indirectly contributed to make this Project a success. I am indebted to the Management of DR. REDDYS LABORATARIES LTD for providing me the opportunity to carry out the Project work in their esteemed organization. I take this opportunity to express my heartfelt thanks to Mr.AMIT marketing manager DR.REDDYS LABORATARIES LTD, Hyd. For their cooperation and support during the project. I am highly indebted to the Management, Malla Reddy Institute of Engineering and Technology-HYD. Professor RAMREDDY, Principal, and Malla Reddy Institute Of Engineering And Technology, Mr.Fakruddin Ali Ahmed, H.O.D. Department of Management Studies for their continuous encouragement and valuable advice. It was great experience to work under the inspiring guidance of Mr.Fakruddin Ali Ahmed Department of Management Studies, Malla Reddy Institute of Engineering and Technology. I take this opportunity to express my gratitude to her valuable advice and suggestions for completing this project. I would like to thank my family and friends of my college for the help and cooperation extended in this endeavor of mine.

DECLARATION

I, A. RAJESH bearing Hall Ticket No: 08W91E0033, a student of Dept .Of Management Studies, Malla Reddy Institute of Engineering & Technology, Maisammaguda, secunderabad. Hereby declare that the project work entitled CUSTOMER RELATIONSHIP MANAGEMENT, is a bonafide work done by me in partial fulfillment for the award of degree in Master of Business Administration. I further declare that this project work is a result of my own effort and has not been submitted to any other university or institution for the award of any degree or diploma

Place: Hyderabad Date:

A. RAJESH (H.T.NO:08W91E0033)

INDEX OF CONTENTS
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PARTICULARS CHAPTER-I Introduction CHAPTER-II Need of the study Objectives & Scope of the study CHAPTER-III Industry Profile Company Profile CHAPTER-IV Research methodology Limitations of the study CHAPTER-V Data Analysis and Interpretation CHAPTER-VI Findings Suggestion Conclusion CHAPTER-VI I Appendices and Bibliography

PAGE NO

6-9

11 12

14-23 24-32

34 35-38

40-61

63 64 65

67-71

CHAPTER-I

INTRODUCTION

INTRODUCTION:

Customer relationship management (CRM) is a broadly recognized, widelyimplemented strategy for managing and nurturing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service There are three parts of application architecture of CRM.

1. Operational CRM
Operational CRM means supporting the so-called "front office" business processes, which include customer contact (sales, marketing and service). Tasks resulting from these processes are forwarded to employees responsible for them, as well as the information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference.

2. Analytical CRM
In analytical CRM, data gathered within operational CRM are analyzed to segment customers or to identify cross- and up-selling potential. Data collection and analysis is viewed as a continuing and iterative process. Ideally, business decisions are refined over time, based on feedback from earlier analysis and decisions. Business Intelligence offers some more functionality as separate application software.

3. Collaborative CRM
Collaborative CRM facilitates interactions with customers through all channels (personal, letter, fax, phone, web, e-mail) and supports co-ordination of employee teams and channels. It is a solution that brings people, processes and data together so companies can better serve and retain their customers. The data/activities can be structured, unstructured, conversational, and/or transactional in nature. Collaborative CRM provides the following benefits:

Enables efficient productive customer interactions across all communications channels. Enables web collaboration to reduce customer service costs. Integrates call centers enabling multi-channel personal customer interaction. Integrates view of the customer while interaction at the transaction level.
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CRM has to two typical implementation methods: on-premise and on-demand/hosted. Each method has its advantages and disadvantages as described below. On-premise CRM is appropriate for:

Companies seeking to implement highly customized customer-management practices Companies that need specialized data structures Companies with complex or real-time integration requirements Companies with available in-house IT resources and support systems Companies who can afford the up-front capital investment and fixed costs Companies who deal with sensitive data that don't want other parties to see

On-demand/hosted CRM is appropriate for:

Customers seeking to implement standard processes from a variety of industries and companies Companies that are able to use standard data structures Companies with more basic integration requirements Companies with limited technical resources and support personnel Companies seeking variable pricing and lower up-front costs Companies dealing with non-proprietary data

Key CRM principles:

Differentiate Customers: All customers are not equal; recognize and reward best customers disproportionately. Understanding each customer becomes particularly important. And the same customers reaction to a cellular company operator may be quite different as compared to a car dealer. Besides for the same product or the service not all customers can be treated alike and CRM needs to differentiate between a high value customer and a low value customer. What CRM needs to understand while differentiating customers is: - Sensitivities, Tastes, Preferences and Personalities - Lifestyle and age - Culture Background and education - Physical and psychological characteristics Differentiating Offerings Low value customer requiring high value customer offerings Low value customer with potential to become high value in near future High value customer requiring high value service High value customer requiring low value service.
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Keeping Existing Customers

Grading customers from very satisfied to very disappointed should help the organization in improving its customer satisfaction levels and scores. As the satisfaction level for each customer improve so shall the customer retention with the organization. Maximizing Life time value Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer, marketers can maximize share of purchase potential. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances. Increase Loyalty Loyal customers are more profitable. Any company will like its mindshare status to improve from being a suspect to being an advocate. Company has to invest in terms of its product and service offerings to its customers. It has to innovate and meet the very needs of its clients/ customers so that they remain as advocates on the loyalty curve. Referral sales invariably are low cost high margin sales. (Fig 2. Categorizing Customers)

Summarizing CRM activities:

The CRM cycle can be briefly described as follows: 1. Learning from customers and prospects, (having in depth knowledge of customer) 2. Creating value for customers and prospects 3. Creating loyalty 4. Acquiring new customers 5. Creating profits 6. Acquiring new customers

What is Customer Relationship management?

Customer relationship management is creating a team relationship among sales, marketing, and customer support activities within an organization. Another narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made. Shani and Chalasani define relationship marketing as an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously strengthen the network for mutual benefit of both sides, through interactive, individualized and value-added contacts over a period of time. The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers, and/or other marketing factors. CRM is based on the premise that, by having a better understanding of the customers needs and desires we can keep them longer and sell more to them. Growth Strategies International (GSI) performed a statistical analysis of Customer satisfaction data encompassing the findings of over 20,000 customer surveys conducted in 40 countries by Info quest. The conclusions of the study were: A Totally Satisfied Customer contributes 2.6 times more revenue to a company as a Somewhat Satisfied Customer. A Totally Satisfied Customer contributes 17 times as much revenue as a Somewhat Dissatisfied Customer. A Totally Dissatisfied customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer contributes to a business. By reducing customer defection (by as little as 5%) will result in increase in profits by 25% to 85% depending from industry to industry.

CHAPTER-II

SCOPE& 0BJECTIVIES

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NEED FOR THE STUDY

For the Company:

After sales service is a concept very much associated with sales especially in Parma industry. The person who buys a products from a dealer does not stop his relationship as a buyer, instead he starts continuing to be a customers. There after in the name of after sales service here in this case there is a specific problem. The authorized dealer is facing on the area of after sales service. To utilize the full life span of the vehicle it has to be serviced regularly. But a small portion of the total customer population is not reporting regularly and the part is not satisfied with the service provided. So the project is done to explore the reasons for why those customers are not reporting regularly and how to delight the customer. So the research has been conducted to make possible suggestions and recommendations.

For the Researcher:

It will be a very good experience for the researcher during the training period. It is a better chance to study the market conditions.

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OBJECTIVES OF THE STUDY

1. To find out the overall level of customer satisfaction for Dr Reddys products. 2. To study customer opinion regarding the pricing of products. 3. To study about the present market scenario of Dr Reddys products after sales service. 4. To study about the strategies required to push the sales. 5. To analyze the reasons for choosing a particular authorized service station. 6. To recommend steps to create awareness among the People

SCOPE OF THE STUDY

1. The study can be extended to cities other than the Hyderabad. 2. The study can be extended to all members of the population. 3. The study will throw valuable feedback to the service firm to assess the level of customer satisfaction index which intern could be made use for upgrading the service levels. 4. The study helps the firm to analyze the gap between customers importance and company performance.

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CHAPTER-III

INDUSTRYAND COMPANY PROFILE

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MARKETING IN PHARMACEUTICAL INDUSTRYMarketing in Pharmaceutical industry is totally different from other industries like FMCG. Industrial goods etc. because of following reasons:The pharmaceutical product does not reach directly as the patients consume only those brands which are being prescribed by the doctor so as we know companies cant sell directly to patients i.e the end users of the products is away from companies. So there cant be concept of direct seeking in the pharma market. So it is doctor who is the customer for companies. Pharma marketing is also different as the product is technical in nature as compared to any consumer product. The product has to undergo various clinical trails, medical test, before it is introduced in the market.

Strategies are followed by pharmaceutical companies: Personal Selling Symposium Sample Gifts Promotional Literature Conferences Direct Mailing 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.

The Indian Pharmaceutical Industry today is in the front rank of Indias science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world.

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INDIAN PHARMACEUTICAL INDUSTRY -

The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are about 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). 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 pharmaceutical formulations. 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. Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs of
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production, low R&D costs, innovative scientific manpower, strength of national laboratories and an increasing balance of trade. The Pharmaceutical Industry, with its rich scientific talents and research capabilities, supported by Intellectual Property Protection regime is well set to take on the international market. ADVANTAGE INDIA: Competent workforce: India has a pool of personnel with high managerial and technical competence as also skilled workforce. It has an educated work force and English is commonly used. Professional services are easily available. Cost-effective chemical synthesis: Its track record of development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs.

Legal & Financial Framework: India has a 53 year old democracyand hence has a solid legal framework and strong financial markets. There is already an established international industry and business community.

Information & Technology: It has a good network of world-class educational institutions and established strengths in Information Technology. Globalization: The country is committed to a free market economy and globalization. Above all, it has a 70 million middle class market, which is continuously growing. Consolidation: For the first time in many years, the international pharmaceutical industry is finding great opportunities in India. The process of consolidation, which has become a generalized phenomenon in the world pharmaceutical industry, has started taking place in India. THE GROWTH SCENARIO India's US$ 3.1 billion pharmaceutical industry is growing at the rate of 14 percent per year. It is one of the largest and most advanced among the developing countries. Over 20,000 registered pharmaceutical manufacturers exist in the country. The domestic pharmaceuticals industry output is expected to exceed Rs260 billion in the financial year 2002, which accounts for merely 1.3% of the global pharmaceutical sector. Of this, bulk drugs will account for Rs 54 bn (21%) and formulations, the remaining Rs 210 bn (79%). In financial year 2001, imports were Rs 20 bn while exports were Rs87 bn.
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STEPS TO STRENGTHEN THE INDUSTRY Indian companies need to attain the right product-mix for sustained future growth. Core competencies will play an important role in determining the future of many Indian pharmaceutical companies in the post product-patent regime after 2005. Indian companies, in an effort to consolidate their position, will have to increasingly look at merger and acquisition options of either companies or products. This would help them to offset loss of new product options, improve their R&D efforts and improve distribution to penetrate markets. Research and development has always taken the back seat amongst Indian pharmaceutical companies. In order to stay competitive in the future, Indian companies will have to refocus and invest heavily in R&D. The Indian pharmaceutical industry also needs to take advantage of the recent advances in biotechnology and information technology. The future of the industry will be determined by how well it markets its products to several regions and distributes risks, its forward and backward integration capabilities, its R&D, its consolidation through mergers and acquisitions, co-marketing and licensing agreements.

Industry Trends

The pharma industry generally grows at about 1.5-1.6 times the Gross Domestic Product growth Globally, India ranks third in terms of manufacturing pharma products by volume The Indian pharmaceutical industry is expected to grow at a rate of 9.9 % till 2010 and after that 9.5 % till 2015 In 2007-08, India exported drugs worth US$7.2 billion in to the US and Europe followed by Central and Eastern Europe, Africa and Latin America The Indian vaccine market which was worth US$665 million in 2007-08 is growing at a rate of more than 20% The retail pharmaceutical market in India is expected to cross US$ 12-13 billion by 2012 The Indian drug and pharmaceuticals segment received foreign direct investment to the tune of US$ 1.43 billion from April 2000 to December 2008

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Challenges
every industry has its own sets of advantages and disadvantages under which they have to work; the pharmaceutical industry is no exception to this. Some of the challenges the industry faces are:

Regulatory obstacles Lack of proper infrastructure Lack of qualified professionals Expensive research equipments Lack of academic collaboration Underdeveloped molecular discovery program Divide between the industry and study curriculum

Government Initiatives
The government of India has undertaken several including policy initiatives and tax breaks for the growth of the pharmaceutical business in India. Some of the measures adopted are:

Pharmaceutical units are eligible for weighted tax reduction at 150% for the research and development expenditure obtained. Two new schemes namely, New Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Program have been launched by the Government. The Government is contemplating the creation of SRV or special purpose vehicles with an insurance cover to be used for funding new drug research The Department of Pharmaceuticals is mulling the creation of drug research facilities which can be used by private companies for research work on rent

Pharma Export
In the recent years, despite the slowdown witnessed in the global economy, exports from the pharmaceutical industry in India have shown good buoyancy in growth. Export has become an important driving force for growth in this industry with more than 50 % revenue coming from the overseas markets. For the financial year 2008-09 the export of drugs is estimated to be $8.25 billion as per the Pharmaceutical Export Council of India, which is an organization, set up by the Government of India. A survey undertaken by FICCI, the oldest industry chamber in India has predicted 16% growth in the export of India's pharmaceutical growth during 2009-2010.

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Key players in Indian Pharmaceutical Industry

There are several national and international pharmaceutical companies that operate in India. Most of the country's requirements for pharmaceutical products are met by these companies. Some of them are briefly described below:

Ranbaxy Laboratories Limited is the biggest pharmaceutical manufacturing company in India. The company is ranked at the 8th position among the global generic pharmaceutical companies and has presence in 48 countries including world class manufacturing facilities in 10 countries and serves to customers from over 125 countries. Ranbaxy Laboratories 2009-2010 Q3 Net Profit Results showed a profit of Rs 116.6 crore as compared to Rs 394.5 crore deficit, recorded during the corresponding period last fiscal. Dr. Reddy's Laboratories manufactures and markets a wide range of pharmaceuticals both in India and abroad. The company has 60 active pharmaceutical ingredients to manufacture drugs, critical care products, diagnostic kits and biotechnology products. The company has 6 FDA plants that produce active pharma ingredients and 7 FDA inspected and ISO 9001 and ISO 14001 certified plants. Dr. Reddy's Q1 FY10 result shows the revenues of the company at Rs. 18,189 million which is up by 21%. During this quarter the company introduced 24 new generic products, applied for 22 new generic product registrations and filed 4 DMFs. Cipla is an Indian pharmaceutical company renowned for the manufacture of low cost anti AIDS drugs. The company's product range comprises of anthelmintics, oncology, anti-bacterials, cardiovascular drugs, antibiotics, nutritional supplements, anti-ulcerants, anti-asthmatics and corticosteroids. Cipla also offers other services like quality control, engineering, project appraisal, plant supply, consulting, commissioning and know-how transfer, support. For the financial year 2008-09 the company registered an increase of 22% in sales and other income over the previous year. Nicholas Piramal is the second largest pharmaceutical healthcare company in India. The brands manufactured by the company include Gardenal, Ismo, Stemetil, Rejoint, Supradyn, Phensedyl and Haemaccel. Nicholas Piramal has entered into join ventures and alliances with several international corporations like Cheissi, Italy; IVAX Corp; UK, F. Hoffmann-La Roche Ltd., Allergan Inc., USA etc. Glaxo Smithkline (GSK) is a United Kingdom based pharma company; it is the world's second largest pharmaceutical company. The company's portfolio of pharma products consist of central nervous system, respiratory, oncology, vaccines, anti-infectives and gastro-intestinal/metabolic products among others. On November 2009, the FDA had announced that the H1N1 vaccine manufactured by GSK would join the list of the four vaccines approved. Zydus Cadila also known as Cadila Healthcare is an Indian pharmaceutical company located in Gujarat. The company's 1QFY2010 results show the net sales at Rs880.3cr which is higher than the estimated Rs773cr. The net profit was
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Rs124.8cr which was increase of 39%; the increase was on account of higher sales and improvement in the OPM. India's Domestic Pharmaceutical Market (12 Months Ended January 2009) Company Total Pharma Market Cipla Ranbaxy Glaxo Smithkline Piramal Healthcare Zydus Cadila Source: ORG IMS Size ($ Billion) 6.9 .36 .34 .29 .27 .24 Market Share (%) 100.0 5.3 5.0 4.3 3.9 3.6 Growth Rate (%) 9.9 13.4 11.5 -1.2 11.7 6.8

Future Scenario:
With several companies slated to make investments in India, the future scenario of the pharmaceutical industry in looks pretty promising. The country's pharmaceutical industry has tremendous potential of growth considering all the projects that are in the pipeline. Some of the future initiatives are:

According to a study by FICCI-Ernst & Young India will open a probable US$ 8 billion market for MNCs selling expensive drugs by 2015 The study also says that the domestic pharma market is likely to reach US$ 20 billion by 2015 The Minister of Commerce estimates that US$ 6.31 billion will be invested in the domestic pharmaceutical sector Public spending on healthcare is likely to raise from 7 per cent of GDP in 2007 to 13 per cent of GDP by 2015 Dr Reddy's Laboratories has tied up with GlaxoSmithKline to develop and market generics and formulations in upcoming markets overseas Lupin, a Mumbai based pharmaceutical company is looking to tap opportunities of about US$ 200 million in the US oral contraceptives market Due to the low cost of R&D, the Indian pharmaceutical off-shoring industry is designated to turn out to be a US$ 2.5 billion opportunity by 2012

In the list of top pharmaceutical companies in India it is not the Indian companies but also the MNCs that are becoming the part of the race. Indian pharmaceutical market in 2008 was $7,743m and if compared to year 2007 it was 4% more than that. It is expected that Indian pharmaceutical market will grow more than the global pharmaceutical market and will become $15,490 million in 2014. Today Indian pharmaceutical industry is the second most fastest growing industry displaying the revenue of Rs 25,196.48 crore and
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growth of 27.32 percent. Top pharmaceutical companies in India are also acquiring the small companies worldwide to further expand the market. Pharmaceutical drugs injections, tablets, capsules, syrups are the products of pharma companies in India along with many more. Looking back into history reveals that it was in 1930 when the first pharmaceutical company in India came into existence in Kolkatta. It is called the "Bengal Chemicals and Pharmaceutical Works". This Indian company is still there and today it is the part of five drug manufacturing companies that are owned by the government. Till the period of 60 years the pharmaceutical industry in India was overshadowed by the foreign drug manufacturing companies but with the Patent Act in 1970, the whole scenario of pharmaceutical companies in India had changed since then. With this the Indian market was more open to Indian pharmaceutical companies than the MNCs. So with this Pharmaceutical companies in India started to grow in number.

Top 10 Pharmaceutical Companies in India: 1. Ranbaxy With a 2007 turnover of Rs 4,198.96 crore (Rs 41.989 billion) by sales, Ranbaxy is the largest pharmaceutical company in India. 2. Dr Reddy's Laboratories With the turnover of Rs 4,162.25 crore (Rs 41.622 billion), Dr Reddy's Laboratories is the second largest pharmaceutical company in India. 3. Cipla With the revenue of Rs 3,763.72 crore (Rs 37.637 billion) Cipla is the third largest pharmaceutical company in India. 4. Sun Pharma Industries Sun Pharma Industries is the fourth largest pharma company in India with the total revenue of Rs 2,463.59 crore (Rs 24.635 billion) and led by Dilip Sanghvi. 5. Lupin Labs Lupin Labs has the total revenue of Rs 2,215.52 crore (Rs 22.155 billion 6. Aurobindo Pharma Sales revenues stood at Rs 2,080.19 crore (Rs 20.801 billion) makes it the sixth largest pharmaceutical company in India. 7. GlaxoSmithKline Pharma (GSK) GSK is the seventh largest pharma company with the total sales revenue of Rs 1,773.41 crore (Rs 17.734 billion) 8. Cadila Healthcare Eight largest company has the total sale revenue at Rs 1,613.00 crore (Rs 16.13 billion)
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9. Aventis Pharma Aventis Pharma has the revenue of Rs 983.80 crore (Rs 9.838 billion) and the ninth largest pharmaceutical company in India. 10. Ipca Laboratories Revenue of Rs 980.44 crore (Rs 9.804 billion) makes Ipca India's 10th largest pharma firm by sales. The global pharmaceutical market research has been done by many companies and almost all of the market reports indicate a significant growth of of pharma market in 2010. The forecasting indicates pharmaceutical market growth of about 4 - 6% in 2010. Pharmaceutical Industry Trends- Global Scenario If present industry overview is taken into consideration then the global pharmaceutical market in 2010 is projected to grow 4 - 6% exceeding $825 billion. The global pharmaceutical market sales is expected to grow at a 4 - 7% compound annual growth rate (CAGR) through 2013. This industry growth is driven by stronger near-term growth in the US market and is based on the global macroeconomy, the changing combination of innovative and mature products apart from the rising influence of healthcare access and funding on market demand. Global pharmaceutical market value is expected to expand to $975+ billion by 2013. Different regions of the world will influence the pharmaceutical industry trends in different ways. Asia Pacific Pharmaceutical Market The pharma market world over will experience significant shifts. Asia-Pacific region will emerge as the fastest growing pharmaceutical market over the recent past. The reason for this positive shift can be attributed to the low costs and favorable regulatory environment. This region has experienced important developments regarding contract manufacturing, especially in generics and APIs. Increased R&D activities in the region has helped AsiaPacific pharmaceutical industry to achieve an estimated market size of around US$ 187 Billion in 2009. Here, the Pharmaceutical Industry is expected to grow at a CAGR of around 12.6% during 2010-2012. It can, in fact, become the global API production hub in next few years. pharmaceutical sales are growing at a fast rate in India, China, Malaysia, South Korea and Indonesia due to the rising disposable income, several health insurance schemes (that ensures the sales of branded drugs), and intense competition among top pharmaceutical companies in the region (that has boosted the availability of low cost drugs). Chinas pharmaceutical market will continue to grow at a 20+ % annually, and will contribute 21% of overall global growth through 2013. India - 3rd Largest Producer of Pharmaceuticals Across the World- is already a US$ 8.2 Billion pharmaceutical market. The Indian pharmaceutical industry is further expected to grow by 10% in the year 2010. Pharmaceutical companies in India are growing at a very fast pace and this has made the Indian pharmaceutical industry as the second largest growing industry. Also the pharmaceutical industry in India is the third largest in the world, which will be of US$20 billion by 2015. Mergers and acquisitions are the part of this growth. The compounded
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annual growth rate of pharma in India is 12-15% and the global figures are 4-7% for the period of 2008-2013. With such a profound growth of pharmaceutical companies in India numerous pharmaceutical jobs can be seen. This in turn is helping biotechnology industry and booming the biotechnology jobs in India. Angel Broking has done a research on the growth of pharmaceutical industry and found that by 2015 the pharmaceutical industry in India will be in the top 10 markets. Yet another finding of FICCI-Ernst & Young study reveals that the population of high income group in India is rising which will give rise to more influx of MNCs and expensive drugs. Pharmaceutical companies along with native companies are also competing with the top MNCs. Such a profound growth is because of the heavy population figures and with the increasing number of middle class people and their income the access to drugs and medicines is also increasing. But still the low-priced generics are popular in Indian pharmaceutical industry. From India in year 2007-08 total of US$ 8.25 billion were exported and there was seen 29% rise in this figure in 2009. MR Anand Sharma, Union Minister of Commerce said that pharmaceutical sector in India has grown and it is the major contributor to exports from India. In 1990 the amount was meager as compare to today's massive figures.

Initiatives by Government 1. 2. 3. 4. Tax breaks are offered to pharma industry New procedure for the development drugs Proper clinical procedures New Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Programme - Two schemes launched by the government.

Some Vital Information on Pharmaceutical Companies in India

In terms of volume - India's pharmaceutical industry is the third largest in the entire world. In terms of value - India's pharmaceutical industry ranks fourteenth By 2015 - It will be in the list of top 10 global pharmaceutical markets and it will touch US $ 20 billion. 2008-2009 - Saw 29% growth in exports of pharmaceutical drugs as compared to 2007 2013 - Indian formulation market is expected to touch US$ 13.7 billion

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COMPANY PROFILE

Dr. Reddys laboratories were founded by Dr. ANJI Reddy, a entrepreneur scientist in 1984. The DNA of the company is drawn from its founder and his vision to establish Indias first discovery led global pharmaceutical company. The company is focused on creating and delivering innovative and quality products to help people lead the healthier lives. Dr. Reddys is the research based company with vertically integrated operations . The company develops ,manufacturers and markets a wide range of pharmaceutical products in India and overseas. The basic research program of Dr. Reddys focuses on cancer diabetes, bacterial infections and pain. Dr. ANJI Reddy, having moved out of sol ltd{ standard organics limited } a company he had successfully co-founded, started Dr. Reddys laboratories with $40,000 in cash and $1,20,000 in bank loan. Today, the company with revenues of rs.194t company and youngest among its peer group. Dr. Reddys create and deliver innovative pharmaceutical health care solutions that help people enjoy longer healthier and more productive lives through two objectives. A. Delivering affordable and accessible mediation to all parts of the world. B. Discovering, developing and commercializing innovative medicines that satisfy unmet medical needs. parallel

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Scope of DR. Reddys world markets:

I. Reddys generic formulations have also become very popular in quality conscious regulated markets such as the us and Europe. II. Reddys is the first pharmaceutical company from Asia pacific (outside Japan) to be listed in new York stock exchange on April 11,2001. III. We manufacture active pharmaceutical ingredients and finished dosage forms and market globally with a focus on united states, Europe ,India, Russian. IV. Generics businesses started operations in 2001 and focuses primarily on the north America and Europe markets. V. API is one of the major business divisions of Dr. Reddys, where they are equipped with six multi-ton, state of the art facilities which offer over 100 varieties of bulk actives and several key intermediates. Where their API are exported worldwide, which include both emerging as well as developed market. VI. Principal markets in the business segment include north America, united states and Canada, Europe, middle east, south east Asia and India. VII. Dr. Reddys branded formulations are marketed in the country across Russia, Latin America, south Asia, china and Africa. MAKING OF DR.REDDYS: In 1973 after gaining six years of expertise and experience in the

manufacturing and implementation new technologies in bulk drugs from public sector company IDPL HYD. Dr .Reddys decided to set up a basic drug unit at that time there were few other players in the private sector at the end of the pharmaceutical value chain. Reddys aim was to develop and manufacturing a wide spectrum of bulk drugs to enable the pharmaceutical industry to launch their formulations unfettered.
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In the yr 1976 to manufacture for the first time in India, a drug called metrodinazole for the treatment of amoebic dysentery the drug became a hit. Dr .Reddys played a major role in pioneering the technology and production of sulphamethonazole an antibacterial in India.

INTEGRAT-ED PRODUCT DEVELOPMENT

PRODUCTIO-N AND R&D

QA/ QC

API DEVELOPMENT

SUPPLY CHAIN MANAGEM-NT

REGULATORY

MISSION:
To be the first pharmaceutical company that successfully discovers takes its products from discovery to commercial launch globally. CORE PURPOSE:
STATEMENT: To help people lead healthier lives. The purpose of

this statement

answers the question why do we exist? we exist as an organization to help people lead healthier lives by innovating to meet unmet medical needs and by making

pharmaceutical products affordable and available to a larger cross section of society.

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VISION: STATEMENT:
To become a discovery led global pharmaceutical company. The vision statement underlines two aspects of what Dr. Reddys wants to become discovery led and global. In the words of Dr. ANJI Reddy Dr. Reddys laboratories will innovate again not just for mankind.

Vision statement helps in the following steps:

It provides long term direction to the company. It challenges and inspires every member of Dr. Reddys. It unites all members of the Dr. Reddys family in the pursuit of a common goal. It motivates us to define global benchmarks for each business activity in Dr. Reddys. .

EXCELLENCE:
We strive for excellence in everything we think say and do. Excellence means continuously improving. Striving to be the best. Creating a benchmark for others to follow. Excellence is execution. It has no place for mediocrity.

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Dr. Reddys being a one of the leading pharmaceutical industry to launch their formulations , unfiltered. There were only a couple of pharmaceutical companys at that time with the capacity to develop newer drugs , bit they would not sell the bulk to other formulators . Here ,Dr. Reddys played a major role in pioneering the technology and production of sulphamethonazole an anti bacterial in India. Another dream was to do it on his own , because that was the time that his second experiment with partnership was also rumbling. He realize his dream shortly thereafter then he established Dr. Reddys laboratories in 1984. The process and production of methyldopa was the ultimate challenge. Chemists at Dr. Reddys streamlined and simplified. The unit process for it in spite of the complicated nature of the process for it and within a matter of 6 months the company was ready to manufacture the drug. The company has several distinctions to its credit. Being the first pharmaceutical company from Asia pacific to be listed on the new York stock exchange is only one among them. Dr. ANJI Reddy is well know for his passion for research and drug discovery. Dr. Reddys started its drug discovery programmed in 1993 and within three years it achieved its first break through by out licensing an anti-diabetes molecule to novo nor disk in march 1997.with this very small but significant step, the Indian industry went through a paradigm shift in its image from being known a just copycats to innovators! Through its success, Dr. Reddys pioneered drug discovery in India. There are several such inflection points in the companys evolution from a bulk drug {API} manufacture into a vertically integrated global pharmaceutical company today. Today , the company manufactures and markets API(bulk actives), finished dosages and biologics in over 100 countries worldwide, in addition to having a very promising drug discovery pipeline . when Dr. Reddys started its first big move in 1986
28

from manufacturing and marketing bulk actives to the domestic(Indian)market to manufacturing and exporting difficult-to-manufacture bulk actives such as methyldopa to highly regulated overseas market, it had to not only overcome regulatory and legal hurdles but also battle deeply entrenched mind-set issues of Indian pharmacy industry, in stark contrast, is know globally for its proven high quality-low-cost advantage in delivering safe and effective pharmaceuticals . This transition although and often-perilous one, was made possible thanks to the pioneering efforts of companies such as Dr. Reddys laboratories. Today, Dr. Reddys continues its journey. Leveraging on its low cost, high intellect advantage. Foraying into new markets and new businesses . Taking on new challenges and growing Stronger and more capable . Each failure and each success renewing the sense of purpose and helping the company evolve. With over 950 scientists working across the globe around the clock , the company continues its relentless march forward to discover and deliver a breakthrough medicine to address an unmet medical need make a difference to peoples lives worldwide . and when it does that, it would only one the beginning an yet it would be the most important step. As Lao Tzu wrote long time ago, Even a 1000 mile journey starts with a single step. BUSINESSES: DR. Reddys is a vertically integrated , global pharmaceutical company with proven research capabilities and presence across the pharmaceutical value chain . we manufacture active pharmaceutical ingredients and finished dosage forms and market them globally, with a focus on united states ,Europe , India and Russia .In addition , the drug discovery arm of the company conducts basic research in the areas of diabetes ,cardiovascular, inflammation and bacteria infection.

29

CORE AREAS: The core businesses of active pharmaceutical ingredients (API) and branded formulations are well established with an impressive track record of growth and profitability. Our generics business started operations in 2001 and focuses primarily on the North America and EU markets . we have built a robust pipeline of generic products , which will help us drive growth in the medium and long term . in addition ,the company is investing in creating businesses of the future the innovation led businesses- of specialty and drug discovery. The revenues for fiscal 2005 were U.S. $446 million. ACTIVE PHARMACEUTICAL INGREDIENTS : Active pharmaceutical ingredients (API) is one of the major business divisions of Dr. Reddys . we are equipped with six multi-ton, state-of the art facilities, which offer over 100 varieties of bulk actives and several key intermediates. our active pharmaceutical ingredients are exported worldwide ,which include both emerging as well as developed markets . Principal markets in this business segment include north America (the united states and Canada),Europe, Middle East , SE Asia and India . Their expertise in organic synthesis ,process development and a controlled supply chain enables us to provide our customers with high quality bulk actives at competitive prices . we are aggressively building our product portfolio to cater to generic players in the emerging markets and generic and patent challenge formulators in regulated markets . Dr. Reddys offers an unparalleled portfolio to its customers , who include innovators and generic formulators world wide . The products are well documented according to the latest ICH and other regulatory guide lines. All the above advantages make Dr. Reddys API ,an ideal partner in the product development efforts.
30

DEFINE Literature survey &process route finalization RESEARCH Feasibility studies

IMPLEMENT Dmf filing

DESIGN Process optimization

DEVELOP Scale up demo analytical validation process validation

RESEARCH AND DEVELOPMENT : The research and development division, established in the late 1980s, is the central to the active pharmaceutical ingredients business. It contributes significantly to our business by creating intellectual property, providing research to reduce the cost of production of our products and playing an active role in the selection and development of new products. The analytical research group supports the development activity by carrying out impurity profiling, structure elucidation and stability studies. BRANDED FORMULATIONS: The branded formulations has evolved from an Indian market player to a global organization starting with brands based on its own formulations , it has grown through brand and company acquisition , a valuable product mix distribution strength and therapeutic area focus to become one of the countrys largest players.
31

Dr. Reddys branded formulations are marketed in the country across Russia, cist, Latin America, South Asia, china and Africa. GENERICS: The generics business gives a direct presence in the world markets .it has grown aggressively on the back of some profitable products successfully clearing inspections by USFDA, MCC and the MCA its path to value has taken the higher risk, high return route, with a series of patent challenge products . Its current focus is to innovate and build both technological and commercial skills to build capabilities for special products. DIMENSIONS: Chemisorbs drugs ltd. merged in to Dr. Reddys labs in the year 2000-01 restructured as strategic business units, and presently notified as business units {BU} Bulk Branded formulation Generics R&D emerging business Corporate center

ORGANIZATION UNITS: SBU BULK has 6 units 3 units in bollaram. I unit in Jeedimetla. 1unit in miryalaguda. 1unit in pydi bhimavaram

32

CHAPTER-IV

METHODOLOGY

33

RESEARCH METHODOLOGY
Research Methodology is a method to solve the research problems systematically. It guides us in conducting the research scientifically. It consists of different steps that are generally adopted by the researcher to study the research problem along with logic behind them.

FIXING THE SAMPLE SIZE

The sample size has been fixed 60. Respondents 50.

Sources of Data: The data can be collected in two ways: 1 2 Primary data Secondary data

Primary data
It is the fresh data collected for the study by the researcher with his own personal effort. .

Secondary data
It refers to the data that was collected for some other purpose and are readily available with the organization.

34

LIMITATIONS OF THE STUDY

1. The Study is mostly confined to Hyderabad city. 1. In depth survey is not possible due to time constraint. 2. Bias in responses in case of some respondents might have crept in. 3. Few respondents provide the information in hurry so accuracy could not be expected. 5. Increased competition Today the competition in the Health Care sector has Became very stiff. Currently there are various health care companies working in India.

35

REVIEW OF THE LITERATURE

Service:
A service is any act or performance offered by one party to another. Although the process may be tied to a physical; the performance is essentially intangible and does not result in ownership of any of the factors of production. Service are economic activities that create value and provide benefits fro customers at specific times and places as a result of bringing about desired changes in or on behalf of the recipient of the service.

Christopher Lovelock.

Components of Integrated service management:-

When discussing strategies to market manufacture goods, marketers usually address four basic strategic elements; product, price, place (or distribution) and promotion (or communication). Collectively, these categories are often referred to as the 4 ps of the Marketing mix. However, the distinctive nature of service performances, especially such aspects as customer involvement in production and the importance of the time factors, requires that other strategic elements be included. To capture the nature of these challenges, we will use the 8ps model of integrated service management.

36

After Sales Service

Historically, after sales service was regarded in most manufacturing Companies as a supporting but relatively minor function in the overall structure of the organization. This also applies in some degrees to the channels in case of industrial products. It will usually be the manufacturer who provides service, while in many consumers and other types of goods it responsible of the retailers or dealers. As consumers grow most sophisticated, they became less willing to accept poor quality goods and services. Firms undertake after sales service after service guarantees and service warranties to enhance their survival in a competitive position. After sales service place a crucial role in ensuring the long-term credibility of company and brand image. An efficient after sales service in the post purchase stage leads to customer satisfaction.

Tools for Tracking and Measuring Customer Satisfaction In After Sales Service:-

1 Methods of listening to the customer 2 Complaint management 3 Designing customer satisfaction surveys 4 Service guarantees 5 Improving service 6 Relationship marketing 7 Ghost shopping 8 Lost customer analysis

37

METHODS OF LISTENING TO THE CUSTOMERS

Focus group
A focus group is a moderated discussion Among 6 to 12 participants. The idea is

to generate a free flowing discussion about the service among members of a target group using interaction among participants to relax them and to trigger ideas.

One-on-one method
The most effective technique for achieving a deeper understanding of the

consumer view is the one-on-one interview.

3 Critical incident technique

The (CII) is one-on-one exercise to elicit details about services that particularly dissatisfy or delight customers. In particular, the questionnaire asking probing questions to find What makes a service encounter particularly satisfying the customers? What makes service encounter dissatisfying the customers? Are the components that determine satisfactory and unsatisfactory encounters related to each other? The other methods such as Laddering, Leading Edge user studies, direct observation and also using Management experience.

38

CHAPTER-V

DATAANALYSIS& INTERPRETATION

39

HYDROHEAL-AM BURN CREAM

ANALYSIS
Materials & Methods: - The following lists of products were given
PRODUCTS

HYDROHEAL-AM (DR REDDYS ) BURNOL SOFROMYCIN SILVEREX PLUS (BOOTS PIRAMAL HEALTH CARE) (HOECHSTMARION ROUSSEL LTD) (RANBAXY LABORATORIES LTD)

Following areas as per the dates given below

100% DATE AREA MEDICAL STORES

HYDR OHEAL -AM 18/3/10 Hyderabad MUKESH MEDICAL STORE NIZMS MEDICAL STORE BIMAL MEDICAL STORE ARORA CHEMIST

BUR NOL

SOF ROM YCI N

CILV EREX

40

19/3/10

KAPOOR MEDICAL STORE SAHIL MEDICAL STORE BALAJI MEDICAL STORE

20/3/10

SHIVA MEDICAL STORE HARSH CHEMIST THIRUMALA CHEMIST

22/3/10

VIVEK MEDICAL STORE SHIVA MEDICAL STORE MEDICINE PALACE

24/3/10

VENKAT SAI CHEMIST CHEMIST PALACE MEDICINE

RELIANCE MEDICARE 26/3/10 SUPER MEDICAL STORE UMA CHEMIST G.P MEDICAL STORE 27/3/10 STAR MEDICAL STORE VANI MEDICAL STORE FRIENDS MEDICAL STORE SHYAM MEDICAL STORE 29/3/10 HARISH MEDICAL STORE LAXMI MEDICAL STORE GAGAN MEDICAL STORE SHIV MEDICAL STORE 1/4/10 APOLLO CHEMIST SRI SAI MEDICAL STORE

41

HANUMAN CHEMIST SHIVA MEDICAL STORE SARASWATI MEDICAL 2/4/10 VIMAL MEDICAL SAPRA MEDICAL STORE CARE CHEMIST BHAI MEDICAL STORE SRI LAXMI STORE 4/4/10 POOJA MEDICAL MEDPLUS CHEMIST HETERO CHEMIST SRIRAM MEDICAL STORE MEDPLUS CHEMIST 5/4/10 GUPTA MEDICAL STORE SACHIN MEDICAL STORE POOJA MEDICAL STORE APOLLO CHEMIST MEDMART CHEMIST 6/4/10 MEDICAL

SECUNDERABAD

YASHODA CHEMIST SHARMA STORE MEDICAL

HETERO CHEMIST KIIMS MEDICAL STORE KARTIK MEDICALSTORE 7/4/10 B HARDWAJ MEDICAL STORE SRI BALAJI MEDIC AL S APNA MEDICAL STORE

42

9/4/10

DEVI SANTHOSH MEDICAL STORE R AJ MEDICAL STORE KUMAR MEDICAL STORE

10/4/10

SURYA MEDICAL STORE J AI MATHA MEDIC AL SUNEJA MEDICAL STORE T ARUN MEDICAL STORE

11/4/10

NERAJ MEDICAL STORE S ACHIN MEDICAL STORE H APPY MEDICAL STORE MAHI MEDICAL STORE

12/4/10

G AURAV MEDICAL STORE SURESH MEDICAL STORE S APNA MEDICAL STORE

13/4/10

R.M MEDICAL STORE P EE KAY MEDICAL STORE K APOOR MEDICAL STORE KESHAV GUPTA

14/4/10

P LUS POINT PHARMA GOYAL MEDIC AL

15/4/10

D ASS MEDICAL STORE ISHAN MEDICAL STORE SHRI RAM MEDICAL STORE

16/4/10

IMAGE PHARMCY

43

SAI PRIYA PHARMA SAI MEDICAL STORE 17/4/10 BHARATH MEDICAL STORE PRASAD MEDICOS DEEPAK MEDICOS AJAY CHEMIST 20/4/10 LAKSHIMI MEDICAL SHRI KRISHNA RAMA MEDICAL STORE SRI VASAVI MEDICAL 23/4/10 YASHOODA PHARMA SRI SRINIVASA MEDICAL SUPER MEDICAL VANI MEDICAL 26/4/10 SAI VIJAYA MEDICAL VENKAT SAI MEDICAL NAVEEN MEDICAL FAMILY MED. STORE 28/4/10 RAJ MEDICAL STORE SRI NIZMS MEDICAL 1/05/10 JAI MEDICAL STORE MEDPLUS MEDICAL STORE APOLLO CHEMIST 3/05/10 RAMA MEDICAL STORE SAI HANUMAN MEDICAL SURYA MEDICAL SRI RAM MEDICAL STORE

44

Total no. of Chemists covered in six days- 108 Results: - I observed the following things during my market survey: (1) From the List- Two No. of chemists were having

HYDROHEAL-AM (DR REDDYS ) BURNOL SOFROMYCIN SILVEREX PLUS (BOOTS PIRAMAL HEALTH CARE)

- 74 - 98

(HOECHSTMARION ROUSSEL LTD) - 81 (RANBAXY LABORATORIES LTD) - 76

45

COMPETITORS OF HYDROHEAL-AM BRAND NAME

MANUFACTURERS BOOTS PIRAMAL HEALTH CARE

BURNOL

HOECHSTMARION SOFROMYCIN ROUSSEL LTD SILVEREX PLUS RANBAXY LABORATORIES LTD CROSSLANDS LABS LTD RESEARCH

SILVEREX

INFLUENCE OF VARIOUS FACTORS PRESCRIBING Z&D1:- Dosage form. 2:- Advertisement. 3:-Frequency of doctor visits by Medical representitative. 4:- Samples & gifts. 5:- Quality of products. 6:- Aviability of products

46

TABLE 1: YOU KNOW ABOUT THIS PRODUCT THROUGH

AWARENESS

NO. of Responds

PERCENTAGE

NEWS PAPERS

10

MARKETING

25

50

ADVERTISEMENTS

10

ONLINE

10

BRAND IMAGE

10

20

Total

50

100

47

GRAPH 1: This graph is represents the customer awareness

50 40 30 20 10 0 News Papers Advertising Segment Brand Image

customer awareness

INTERPRETATION: The above table shows that 50 % of the respondents are known about the Dr Reddys products through marketing and 20% of the respondents are known about the because of brand image and where as 10% of the respondents known about the news papers and 10% of the respondents are known about the advertisements and remaining 10% of the respondents are known about the through online.

48

TABLE 2: QUALITY OF DR REDDYS PRODUCTS COMPARED TO OTHER BRANDS

QUALITY

NO. of Responds

PERCENTAGE

HYDROHEALAM

25

50

BURNOL

10

SOFROMYCIN

10

20

SILVEREX PLUS

05

SILVEREX

15

Total

50

100

49

GRAPH 2: This graph is representing the quality of Dr Reddys Products

QUALITY OF RESPONDS
60 50 40 30 20 10 0

NO OF RESPONDS PERCENTAGE

O L

SO FR O M

O HE A

INTERPRETATION: The above table shows quality of brand and it is found that 50% of respondents are buying because of Hydroheal-am and 20% of the respondents are buying because of safromycin and remaining 30% of respondents buying other brands.

HY DR

SI LV ER EX

50

SI LV ER EX

BU RN

PL US

LAM

YC IN

TABLE 3: THE MAJOR FACTORS TO BUY THIS PRODUCT

PARTICULARS

NO.of Responds

PERCENTAGE %

QUALITY PRICE DURABILITY BRAND IMAGE Total

15 10 10 15 50

30 20 20 30 100

GRAPH 3: This graph is representing the major factors to buy this Product

30 25 20 15
Percentage

10
5 0 Quality Price Durability Brand Image

51

INTERPRETATION: The above data reveals the fact that 30%of the respondents buy the product because of quality, the same percent of customer by the products because of

brand image. Where as 20%of them buy because of price and the remaining 20% buy due to durability. TABLE 4: WHAT GRADE YOU WILL GIVE TO OUR PRODUCTS OPINIONS PERCENTAGE % EXCELLENT VERY GOOD GOOD POOR 15 30 45 10

GRAPH 4: This graph is represents the opinions of Dr Reddys Products

45 40 35 30 25 20 15 10 5 0 EXCELLENT VERY GOOD GOOD POOR

PERCENTAGE

52

INTERPRETATION: The illustration shows the opinion of the respondents regarding the Dr Reddys products as a whole. The over all response of the respondents is good.

TABLE 5: PRICE OF SANGAM HEALTHCARE PRODUCTS COMPARED TO OTHER BRANDS

PRICE

NO. of Responds

PERCENTAGE %

HYDROHEALAM

20

40

BURNOL

15

SAFROMYCIN

10

20

SILVEREX PLUS

10

20

SILVEREX

05

Total

50

100

53

The graph is representing the price of Dr Reddys Products Compared to Other brands

PERCENTAGE OF EACH BRAND

45 40 35 30 25 20 15 10 5 0 HYDROHEAL-AM SAFROMYCIN SILIVEREX PLUS Series1 Series2

INTERPRETATION: The above table shows price of brand and it is found that 40% of respondents are buying because of Hydroheal-am reddprice and 20% of the respondents are buying because of Safromycin price and the same percent of respondents buying because Dora one price remaining 20% of respondents buying other brands.

54

TABLE 6: PACKING OF DR REDDYS PRODUCTS

PACKING OPINONS EXCELLENT VERYGOOD GOOD POOR

NO. of Responds

%OF EACH BRAND

18 9 13 10

36 18 26 20

The graph representing the packing of DR REDDYS Products

%OF EACH BRAND

POOR 20%

EXCELLEN T 36%

GOOD VERYGOO 26% D 18%

INTERPRETATION: The above graph shows the 34% of the respondents are said that Dr Reddys products are excellent, 25% of the respondents are said that Dr Reddys products are poor, 22% of the respondents are said that it is good and remaining 19% of the respondents are said that very good.
55

TABLE 7: ARE YOU SATISFIED WITH THE DELIVERY FORM THE DEALAR OPINION YES NO Total NO. of Responds 40 10 50 %OF BRAND 80 20 100

This graph is represent the delivery form Dr Reddys Products

80 70 60 50 40 30 20 10 0
PERCENTAGE OF BRAND

YES

NO

INTERPRETATION: The above graph it is found that the 80% of the respondents are satisfied from the dealer and remaining 20% of the respondents are dissatisfied from the dealer.

56

TABLE 8: REGULARITY OF THE CUSTOMER

RESPONSE YES NO Total

NO. of Responds 40 10 50

PERCENTAGE% 80 20 100

This graph is represents the regularity of the customer

REGULARITY OF THE CUSTOMERS 100 80 60 40 20 0 YES NO PERCENTAGE

INTERPRETATION: The above table shows that 80% of the customers buying the products regularly and remaining 20% of the customers are buying irregularly. So the company need to focus on the remaining 20% customers also to increase the market share comparing with the customers.

57

Table 9: THE IMPORTANCE OF ONLINE ADVERTISEMENT

%NO. OF IMPORTENCE Very important Important Not important Not at all important Total NO. of Responds RESPONDENTS 9 25 9 7 50 18 49 18 15 100

This graph represents the importance of online advertisement

50 40 30 20 10 0 Very important Iportant Not Important Not at all important
% NO.OF RESPONDENTS

INTERPRETATION: The above table shows that 49% of the respondents believe that online advertisement is important. 18% of the respondents believe that online advertisement is not important. 18% of the respondents believe that Online advertisement is very important.15% of the respondents believe that Online advertisement is not at all important.

58

TABLE 10: WHICH IS THE FAST MOVING BRAND COMPARING TO THESE BRAND? %OF BRANDS NO. of Responds Safromycin Burnol Silverex Others Total 15 20 10 5 50 RESPONDENTS 30 40 20 10 100

This graph is represents the fast moving brand comparing to Other brands
FAST MOVING BRANDS

SAFROMYCIN BURNOL SILVEREX OTHERS

INTERPRETATION: The above graph shows that 40% of the burnol brand is fast moving brand in the market, 30% of the Safromycin brand is fast moving brand in the market, and 20% of the Silverex brand is fast moving brand in the market, and 10% of the other brands are existing in the market.
59

TABLE 11: WHAT DO YOU EXPECT FROM Dr Reddys? %OF EXPECTATIONS NO. of Responds Low price High quality Good packing Time to delivery Total 25 10 10 5 50 RESPONDENTS 50 20 20 10 100

This graph is represents the customer expectations form the Dr Reddys

EXPECTATIONS OF THE CUSTOMERS

% of the respondents

60 50 40 30 20 10 0

% of .respondents

Expectstions

INTERPRETATION:

The above graph shows the 50% of the respondents are expecting the good

expecting the low price from the Dr Reddys, 20% of the respondents are expecting the high quality from the Dr reddys, and in 20% of respondents are from the Dr Reddys.
60

packing and in the same percentage of respondents are expecting the time to delivery

Good packing

Time to delivery

Low price

High quality

. TABLE 12: DO YOU KNOW AWARE ABOUT THE NEW PRODUCTS IN DR REDDYS %OF OPINONS NO.of Responds Yes No Total 40 10 50 RESPONDENTS 80 20 100

This graph is represents the awareness about the new Products in Dr Reddys

80 70

60
50 40 30
No of respondents

20
10 0 Yes No

INTERPRETATION:

The graph shows the 80% of the respondents aware about the

new products, and 20% of the respondents are they dont no about the new products. Which means company need to try to Conduct awareness Programs to the customers.

61

CHAPTER-VI

FINDINGS, SUGGESTIONS AND CONCLUTION

62

FINDINGS

Brand image founded Quality of products founded out Major factors which are effecting are founded Competitors Performance founded Price compared and founded very less Packaging standards founded Customers satisfaction on delivery system founded Regularity of customers founded Advertisements effectiveness founded Schemes effectiveness founded Brands comparison Customers expectations exhibited Awareness of products founded

63

SUGGESTIONS
From above conclusion I am suggesting the company to improve the marketing segments of the Dr Reddys products.

1. The company should provide a good pricing scheme to the dealers according to their sales in the market with this scheme the dealers would be able to make good sales of their products. 2. The frequent changes in the price of products will decrease the sales of the Dr Reddys products. So company must maintain constant price so that more customers will be attracted towards Dr Reddys products. 3. In market the company must maintain an efficient and effective distribution network to win the confidence of dealers to attract the customers. 4. The company will require some educational workers to decrease the damage of the products while packing loading and unloading. 5. In the present situation the company needs some advertising media to improve its sales with the competition to the new brands which is launched in the market. 6. The company will provide discount offers on order of bulk amount of products load to the dealers and stockiest.

64

CONCLUSIONS
The following conclusions or emerged from the study on customers perception towards the DR REDDYS PRODUCTS. 1. The respondents expressed that their relations with the company are good and hope that they will be continued in future also. 2. In the Hyderabad area and the other areas most of customers prefer the Dr Reddys products mainly by seeing the brand name. 3. The customers are very much satisfied with the products available in the market and also with the price and packaging. 4. The customers expressed satisfaction of the pricing police and promoting activities followed by the Dr Reddys products. 5. Most of customers in regional level know about the product since 10 years long time.

65

APPENDICES

66

QUESTIONNAIRE
Q. Name of the Chemist & Address? Q. Do you have HYDROHEAL-AM GEL? Yes/ No Q. Any cream for burns? Q. What are the brands you most frequently sell of (products)? BRAND NAME PACK NO. OF UNITS

Q. How much stock do you have from the latest introduction of DR.REDDY S LAB.LTD?

Latest Introduction of Dr.Reddys are:PRODUCTS NO. OF UNITS

DOXOBID MUCOLITE SR Pecef (DT&Sus)

(Doxophylline 400 mg) (Ambroxol 75 mg sustained release Cap) (Cefpodoxime Proxitill 50/100 mg )

Q. Do you know about the Dr reddys laboratories Ltd products? A. Yes B. No

Q. Are you happy with the quality and performance of the product? A. Yes If no shat is the reason?
67

B. No

Q. What are the major factors to buy this product? A. Quality C. Durability B. Price D. Brand image

Q. What grade you will give to our products? A. Excellent C. Good B. Very good D. Poor

Q. Are you happy with the price and performance of this product? A. Yes If no shat is the reason Q. Are you happy with the packing of Dr reddys laboratories Ltd products? A. Excellent C. Good B. Very good D. Poor B. No

Q. Are you satisfied with the delivery from the dealers? A. Yes Q. Regularity of the customers? A. Yes B. No B. No

Q. How much important of the online advertisements? A. Very important C. Not important B. Important D. Not at all important

Q. Which is the fast moving brand comparing to these brands? A. Romson C. Nirlife B. Hindustan D. Others
68

Q. what you expect from Dr reddys (as a customer) A. Low price C. Good packing B. High quality D. Time to delivery

Q. Do you know aware about the new products in Dr reddys? A. Yes B. No

Q. Any value suggestions towards Dr reddys as a customer? Suggestion..

69

BIBLIOGRAPHY

70

BIBLIOGRAPHY REFERENCES
Books and journals

Sl. No.
1

Author Name

Book Name

Edition

Philip Kotler

Marketing Management

The Millennium Edition

Ramaswamy & Ram Kumari

Marketing Management

2000

3 4

S.P. Gupta C.R. Kothari

Statistical Methods Research Methodology

1986 2000

A. Singaravelu & R. Sampangi

Quantitative Methods in 1998 Business

Other sources:
News papers, articles Magazines and journals.

Web links www.Dr Reddys.com

71