Rectification of the Customer : Product Mismatch

A Dis e tio s rta n

Rectification of the Product : Customer Mismatch

A Dissertation
by Subir Bhowmick
Roll # 526099

Submitted to : Institute of Management Technology, Ghaziabad ( Distance Learning Programme )

as a part of the curriculum for

Diploma in Marketing Management

Submitted to :

Mr. O.P. Gupta

Institute of Management Technology, Ghaziabad

as a part of the curriculum for

Diploma in Marketing Management

drench yourself in your work beyond the capacity of the average man You are just not cut out for positions at the top.

Unless you are willing to

J.C.Penny

ACKNOWLEDGMENTS

Thanks are due, to respected Prof. S. P. Gupta, for his valuable guidance and suggestions, at all stages of this effort. A word of appreciation is in order for my family, who has been very understanding about my pre-occupation with the effort and has given me the moral support to accomplish this assignment. I am indebted to Mr. Sanjeev Batra, Manager Marketing Services, Jagsonpal Pharmaceuticals Limited, New Delhi, for his critical appraisal of my progress in the assignment.

(Subir Bhowmick ) Roll # 526099

INDEX

Section Section 1

Contents Indian Pharmaceutical Industry ones rds Self-reliance Pricing arch and Development the Future Beholds ems of Marketing

Milest Towa Drug Rese What Probl Indian

Section 2

Economy - Widening Horizons Jagsonpal Pharmaceuticals Limited cial overview Analysis of Marketing Practices Pharmaceutical Marketing transactions Statement of the Identified Problem SDL Strategy Docket Processing The Outcome ct Marketing Support Summary and Conclusion Bibliography

Finan

Section 3 Section 4 Section 5 Section 6

Data

Section 7

Indire

Section 8 Section 9

INDEX
( continued )

Annexure Annexure I Annexure II Annexure III Annexure IV Annexure V

Contents tional Tools : Pharmaceutical Industry of Pharmaceutical Specialties Of Jagsonpal

Promo Details Data Speci Data

Sheet for SDL Preparation men of Compiled Data for a HQ

Sheet for SDL Amendment

I n d i a n

P h a r m a c e u t i c a l

I n d u s t r y

Milestones Since the achievement of independence in 1947, the Indian leaders have lent their energies to the economic development of the country. Well thought-out fiveyear plans are being formulated to raise the standard of life of the Indian people. Already eight such plans have been implemented with appreciable success. The development of Indian drugs and pharmaceutical industry was not commensurate with the size of the country and the growing needs of her population, when India embarked on her planned economic expansion about 40 years ago. Since then the progress of this industry has been substantial and many-sided, industries. India is now producing a large quantity of varied pharmaceutical products. In 1948, the sale of pharmaceutical products amounted to just Rs.10 crores; by 1954 the figure had risen to Rs.54 crores and by 1960 to Rs.70 crores. The figure stood as between Rs.85 and 90 crores in 1961 and 1968 as much as Rs.175 crores worth of pharmaceuticals were produced. Likewise, the total turnover of formulations and basic drugs has increased from Rs.1500 crores in 1980-81 to about Rs.10,000 crores in 1994-95. with the result that it has become one of the countrys leading

10000 8000 6000 4000 2000 0

1991-92

1992-93

Bulk Drugs

Formulations

Bulk Drugs and Formulations

Milestones of Progress

Having embarked on a vast programme of industrialization, the Indian Government was at once confronted with a host of problems; goods abroad and lack of suitably trained personnel and the foremost basic raw among them being non-availability of foreign exchange for purchasing capital many materials. The pharmaceutical profession, so vital to the growth and development of the industry was almost no-existent. This led to a conscious increase in investment in the sector of pharmaceutical manufacturing :

Investment Year (Rs. Cr.)

1965 1973 1977 1979 1982 1985 1991 1994 1996

* estimated

140 225 450 500 600 650 1000 1200 2500 *

Forty-eight years ago it was not sufficiently released that basic chemicals and pharmaceuticals are two different industries the latter depends by and large on the former for its growth. Unfortunately, in India while the pharmaceutical industry

1994-95

1985-86

1986-87

1987-88

1988-89

1989-90

1990-91

1993-94

had grown, the chemical industry lagged behind; indeed it is in its infancy, but is now progressing at a fast rate.

Other Milestones Indicator Capital Investment Production :

Formulations Bulk Drugs

(Rs. Crores) 1965-66 1994-95

140 150 18 8.20 3.05 3.0 NA 7935 1518 1781 1804 125

Import Export R&D Expenditure

Towards self-reliance The foundations were already present in the industrially advanced countries of Europe and U.S.A. and hence the growth of synthetic drug industry was rapid. However, conditions in India were different in that the industrial development in the general field was held to be more or less parallel and this has made it necessary for the synthetic drugs industry to depend on imported intermediates and raw materials in the initial stages of development. However during recent years the country has well advanced in the production of basic chemicals and with all the heavy organic projects planned for execution the drug industry is looking forward to finding more and more of its basic raw materials from the indigenous sources. been licensed for many of the indigenously. Adequate production capacities have raw materials and one can hope that every

endeavor will be made to produce most of the necessary raw materials

Having achieved liberation from foreign domination after a grim and long struggle India was reluctant to secure outside assistance in implementing the economic plans. But the experience gained during the first five-year plan compelled the

national government to reconsider its policy not only with regard to the restriction on the import of essential drugs and raw materials but also about inviting foreign capital and securing the aid of experts and technologists. The revised policy was based on four principles : To lay firm foundation of basic organic chemical industry and a basic

inorganic chemical industry so as to cover the entire range of chemicals required by national drug industry. To establish, both in the public and private sectors, manufacturing

programmes so far so far as to : (a) produce in the country basic intermediates of drug industries; and (b) produce all basic and finished stages. To promote suitable technical and financial programmes so that the entire

range of drugs and pharmaceuticals is produced indigenously and to established suitable research programmes in the industry and in the national laboratories. To faithfully utilize the present technical personnel and man-power in the

service of the industry and to provide and adequate additional basic program needed for the industry. The production of drugs and pharmaceuticals continued to increase. The

production of Bulk Drugs and Formulation during 1994-95 is estimated to be of the order of Rs.1518 crores of Bulk Drugs and Rs.7935 crores of Formulations.

Drug Pricing There are about 500 bulk drugs which are consumed in the country, out of which about 350 bulk drugs are produced in our country and the rest of the bulk drugs and formulations are regulated as per the provisions of the DPCO 1995. At

present 76 bulk drugs and their formulations are under price control. The span of price control was reduced under the DPCO 1995 to make it more selective and effective. To encourage indigenous research and development in the field of drugs, one of the schemes of the Government is to exempt bulk drugs, and formulations based thereupon, from price control in favour of a particular manufacturing unit which has indigenously developed improved the process to manufacture it from the basic stage.

Research and Development The pharmaceuticals industry is among the most highly R&D-intensive industries on account of : rapid obsolescence of products and the need to replace them continuously inter-disciplinary character of the research needed for new drug discovery continuous social pressure to reduce the cost of drugs

This great advancement in the developed countries has been due to the large inputs that the industry has provided for its R&D work. In India, R&D in the area of drugs and pharmaceuticals is carried out in : 143 in-house R&D units in industry, recognized by the Department of 6 laboratories of the Council for Scientific and Industrial Research (CSIR) several laboratories of Indian Council for Medical Research (ICMR) nearly 50 Universities Scientific and Industrial Research

The expenditure incurred by the in-house R&D units over the years has been as follows : Year 1991-92 1992-93 Expense incurred (Rs. crores) 80 95

1993-94 1994-95

125 140

These in-house R&D units are well-equipped with necessary laboratory and instrumental facilities, pilot plant facilities, and are manned by qualified and competent R&D personnel. They are engaged in process development, product development, improvement in process / product development, cost-reduction and overall quality improvement leading to good manufacturing practices. Outstanding in-house R&D achievements have been in case of drugs like : Centchroman Dextropropoxyphene Hydrochloride Gugulipid Vinblastine Sulphate Vincristine Sulphate Pyridoxine Hydrochloride Ranitidine Doxycycline Ciprofloxacin Norfloxacin Methyldopa Enalapril Maleate

What the future beholds Where are we going from here? During the 9th plan period, Pharma turnover is expected to grow from Rs.10,000 crores (100 Billion) to Rs.25,000 crores (Rs.250 Billion ). Investment needed for achieving this turnover also will need to be brought in somewhere in the region of upto Rs.10,000 crores (Rs.100 Billion). Current years bulk drug production in India should be approximately Rs.3000 crores, out of which Rs.1500 crores is domestic and Rs.1500 crores is for export. Considering the growth in domestic as well as international demand and to

support the anticipated formulation growth the Bulk Drug Industry has to prepare itself for a turnover of around Rs.10,000 crores by the end of the 9th Five Year Plan period (2002 A.D.).

Problems of Marketing While thinking about expansion, the producers have to consider several points regarding marketing their products, the main one being that of the price, in the present economic condition the poorer classes of the people hardly afford to purchase expensive drugs. The sole reason why the Indians seek remedy of ill health through the Ayurveda or Unani systems is the economical prices of the drugs and pharmaceutical products they offer. India is an ever-expanding market for the pharmaceuticals. If the prices are within easy reach of the common man, the market can become practically unlimited and present capacity of the industry can in no way cope with the demand.

Indian economy - widening horizons Historically, government policies have favoured local players who dominate this sector, marginalising multinationals. Competition and pricing controls keep domestic profitability low. Indian companies are poised towards a strong exportled growth, owing to their low costs and ability to develop cost-efficient process technologies. Indian Health - care : a dismal present
Low health standards / low public spending

India has 16% of the worlds population (850 m people in 1990), but accounts for merely 1% of global health care spending. While per capita health expenditure amounts to US $21, the government accounts for only 22% of it; the rest comes from private sources. Health expenditure accounts for 1.6% of total government spending; in comparison, defense accounts for 17%.
Higher public spending in future

Although India spends more on health than China, the return on the health dollar spent by India is a lot less than Chinas. This owes to the fact that most of the government spending (22% compared to Chinas 60%) gets wasted due to poor targeting and inefficient public health programmes. expect the spending that comes from public sources to increase.
No insurance coverage

As incomes increase, we

percentage of income spent on health and the share of health

Medical insurance mechanisms are almost non-existent in India.

Insurance

services are regulated by the government and private sector players are not allowed entry in Indias insurance services. Insurance will become increasingly important as incomes rise, because, except for the very rich, private financing cannot cover expensive health care.

Impact of Intellectual Property Rights

Even with decontrols, Indian pharmaceutical companies will continue to operate under a complex set of rules affecting their competitive positions. No product patents Perhaps the most significant feature of the Indian pharma industry, apart from the DPCO, is that the Indian Patents Law of 1971 does not grant product patents. It grants only process patents and this gives manufacturers the right makers, it is obviously quite the opposite for the multinationals. India to change Patent laws With India signing GATT, including Trade Related Intellectual Property Rights (TRIPS), things will change. It marks a turning point for the Indian pharmaceutical industry. Product patents with effect from 2005 The main impact of Intellectual Property rights (IPS) on pharmaceutical patents in India will be : full cover for pharmaceutical products a patent term of 20 years from the date of filling, import of the product to be accepted as Working of patent. compulsory licensing to be confined to special circumstances such as reversal of the burden of proof in infringement actions relating to process to copy internationally developed and patented formulations. While this is a boon for local

emergency or abuse of patent rights and patents.

For this project, a medium-sized Delhi-based company was identified J a g s o n p a l P h a r m a c e u t i c a l s L i m i t e d

The company, engaged in the manufacturing and marketing of Bulk Drugs, Drug Intermediates and Pharmaceutical Specialties, was established in 1964, and went public in the year 1986. In 1990, the company took a strategic decision to reorient its business focus both in terms of manufacturing, as well as marketing. In the over-crowded and competitive pharmaceutical sector today, comprising of over 24,000 manufacturing units, Jagsonpal Pharmaceuticals has an industry ranking of 74, as per an independent retail audit agency ORG. The customer satisfaction and the support from the medical fraternity which has been received in the last few years, speaks about the efficacy of the products as well as the effectiveness of the marketing effort. The management of company affairs is in the hands of a well-experienced board, headed by Mr.Jagmohan Singh Kochhar, Chairman & Managing Director. Mr. R.P.S. Kochhar, Commercial Director, has immense technical knowledge, gained from his rich experience in the pharmaceutical industry. The other board members hold Director-level positions in reputed organizations from various industries, and contribute tremendously to the operations of Jagsonpal. The company has a modern and GMP-certified manufacturing facility for the production of various dosage forms and bulk drugs / intermediates. The facility is situated on the National Highway # 2, upgraded. The R&D Department, established over a decade ago, is registered with and approved by the Department of Science & Technology , Government of India. on the outskirts of Delhi. The manufacturing facilities of the company have been regularly modernized and

Owing to its well-established capability in the field of developmental research, Jagsonpal has an enviable record of successful project commercialization. The in-roads into technology-intensive bulk drugs has helped Jagsonpal achieve a respectable standing among the leaders of pharmaceutical producers. The marketing support comes from a dedicated field staff comprising of nearly 400 trained medical detailmen and over 80 dedicated field managers, who thrive on challenges. The distribution network comprises of nearly 1000 authorized stockists, serviced by 16 Depots / C&F Agents and the pharmaceutical preparations are ultimately retailed at nearly one lakh pharmacy counters. The goodwill enjoyed from the medical fraternity is tremendous and over 1.25 lakh doctors are being serviced by the company personnel. The innovative techniques used in registering the brands with the doctors have become a talking point, even with the competitors, who deploy more or less the standard techniques ( Annexure I ). Jagsonpal groups, has respectable market share in a select number of therapeutic including Anti-arthritics, Analgesics, Anti-inflammatories, Anti-

spasmodics, Anabolic steroids, Progesterones, Anesthetics and Anti-fungals. To enrich its technological base and market presence, Jagsonpal has opened dialogue on a global basis, for strategic alliances. These international tie-ups are aimed at helping the company becoming a major player in specific products, through alliances with patent holders, for products already in the international market.

Financial overview The company has shown exceptional results, on all fronts, for the year ended 31st December, 1995. There has been an appreciable rise in all critical aspects . An increase of 25.9 % in sales was recorded at Rs. 69.26 crores, up from Rs. 55.01 crores has been matched by a 10.4% increase in PAT. EPS for the year ended 31st December 1995 stands at Rs. 13.17. The Indian pharmaceutical industry continues to grow at a moderate 12% and even the much-awaited DPCO 1995 did not work as a booster. However, the DPCO did not have any bad tidings for Jagsonpal, as against the reactions of disappointment from the industry in general. The main reason for this is that the drugs which now remain outside the purview of control, contribute a substantially high percentage of the total turnover of the pharma formulations of the company. The streamlining of various marketing functions - including stringent control over field operations and receivables, ensured considerable reduction in costs and thus, a healthy bottom-line. Besides, some of the non-profitable products were pruned. The short-term future plans include setting up of an ultra-modern, United States Federal Drug Authorities approved Basic Drugs & Formulations plant , through its subsidiary company . The proposed plant envisages production of several bulk drugs, primarily in the category of Hormonal Supplements / Replacements. This segment has fast caught the interest of medical practitioners worldwide and is rapidly gaining significance in India. for the (corresponding period last year - annualized) . This remarkable performance

With this addition, Jagsonpal will have a much wider base in the Bulk Drugs segment, and the end products will be used both for captive consumption, as well as for catering to other formulators within the country.

SALES : A CONSISTENT GROWTH

8000 7000 6000 5000 4000 3000 2000 1000 0 1990-91 1991-92 1992-93 1993-94 1994 * 1700.12 2594 3497.08 4088.69 5501

6926.26

1995

*Annualized

PAT: AN EXCEPTIONAL ACHIEVEMENT

500 400 292.97 300 200 100 0 46.24 126.39 8.21 1990-91 234.5

431.14

1991-92

1992-93 1993-94

1994 *

1995

* Value for nine months

A n a l y s i s

o f

M a r k e t i n g

P r a c t i c e s

Jagsonpal is strongly entrenched in the following medical specialties by virtue of its current product mix : Orthopedics Gynecology Medicine Ophthalmology Oncology and Nephrology

This group of specialties cumulatively accounts for practically half of the total doctor strength available in the country. numbering around 400. The contacts made with these customers are through trained Professional Service Representatives, currently The field operations of these PSRs are monitored through nearly 80 managers, operating at first-line and second-line levels. This field-force can be rated as average in terms of aptitude, intellect, commitment and clarity of job function. There are routine field management problems, which are not un-surmountable. However, the root cause of low per-PSR productivity was found in lack of clear directions in managing a wide portfolio of products ( Annexure II ) effectively. While the company has over 45 branded formulations, nearly 16 contribute to a 65% of the total formulations turnover.

The market presence of Jagsonpal is visible in the following specialty segments: Antispasmodics Tranquilizers Analgesics Nutritionals Hormones Anti-microbials Anesthetics

Practically all the main products of the company could be prescribed by a large number of specialties. This created an unfortunate situation, as the field operators did not deploy concentrated or focused working, but went helter-skelter after the potential prescribers, resulting in low productivity, poor feedback, inconsistent follow-up and inadequate database for forecasting territory growth levels. To analyze the problem deeply, the managers were asked to identify the various specialties, which could prescribe each product. This exercise was carried out with field managers representing various geographical locations and in statistically significant numbers. The data that emerged was then plotted in a tabular form and served as an eyeopener, even for the stalwarts of the company. These findings are depicted in the table on the following page.

P h a r m a c e u t i c a l

m a r k e t i n g

t r a n s a c t i o n s

In order to segment a pharmaceutical market effectively, one should understand the process of transactions and the inter-relationship of the marketing channel clearly. The flow-chart below depicts a classic transaction path, in the Indian pharmaceutical context :

Patient

Hospital Doctor GP Prescriptions Nurses Pharmacist / Retail Chemist

Pharmacist

Patient

The characteristic feature of pharmaceutical marketing is that one reaches the end consumer (patient) through an intermediate customer ( the physician) who advises the end consumer through a prescription. It is clear from the flow-chart, that the two major potential target groups are : the patients (consumers) the doctors (customers)

To a marketing follower, it will be obvious that both groups have different needs.

S t a t e m e n t

o f

t h e

I d e n t i f i e d

P r o b l e m

The problem as analyzed during discussions with various levels of managers, both in the field and corporate office, was that the product range being very typical, had a lot of use potential overlap. The managers were predictably very resistant to any changes in the style of working, as they had apprehensions that any re-strategizing may result in loss of present business from the prescribing fraternity. Therefore, a radical change had to be proposed within the basic frame-work of the existing practices, as any major departure would have resulted in noncompliance. A fairly challenging task - indeed ! A comprehensive strategy was then designed for being put into operation and was code-named Operation SDL Strategy . The strategy document draft was vetted with several first and second-line managers of the company ; some changes and suggestions offered by the former were incorporated in the document. These were included more for providing a sense of appeasement and involvement, than actual requirement of the same. The plan was then circulated amongst the entire field-force, during the Business Cycle meetings and all possible objections were answered by the managers, to their respective teams. The initial feedback received, immediately after the meetings was positive to the extent that the PSRs assured that the SDL strategy will be implemented in letter and spirit. Under the circumstances, this assurance was very gratifying. To share the spirit of the exercise, the documentation is being reproduced, in totality, on the following pages.

SDL

Strategy

Docket

Dear Friends, Efficiency is doing things right, and, Efficacy is doing right things. In the context of pharmaceutical selling, it would mean that apart from making effective and productive sales calls to our doctors, we must first be sure as to whom are we going to call upon. Described differently, one can say that proper `Prospecting is indeed most crucial. `Prospecting means identifying the present and potential customers, i.e. doctors, for the company. This docket on SDL - Standard Doctor List, provides guidelines on drawing up the total list of doctors in your territory. For your territory, not only you should have a complete list of doctors with whom you are going to interact in the coming year, but you must also categorize these doctors according to their potential for contributing to your total business. Our strategies for grooming these various doctors are going to be different for the different categories. It makes ample sense to expend more time and resources on high potential doctors and curtail the same for others. This docket also contains the suggested call frequencies alongwith the samples and other inputs allocation for different categories. We expect you to go through your present lists vis--vis the criteria laid down in this, SDL- docket, spend adequate time in reviewing each and every present customer in your territory, and consult your managers in the field, before preparing the final SDL for 1996.

( Divisional Manager )

Segmentation Segmentation is at the consumer level (the patient). The second logical step is at the customer level (doctor). Whether he is a general practitioner or a specialist or a hospital doctor, he is the influencing parameter. Let us look at these two groups in greater detail : Patients (Consumers or end-users) 1. Patients with similar illness fall under the same therapeutic group.

e.g.: diabetic patients, asthmatic patients, tubercular patients, etc. 2. Patients can be classified depending on the stage at which the illness or disease has been progressing. e.g. : Patients with acute or chronic moderate or severe hypertension. 3. bronchial asthma. Patients with mild

Patients according to their age group.

e.g. : Pediatric patients, geriatric patients, etc. 4. Patients can be segmented according to sex : Male / Female Doctors (intermediate customers, who are the influencers) 1. 2. Doctors according to their age group Doctors according to their specialty

e.g.: Surgeons, Cardiologists, Gynecologists, etc. 3. Doctors according to the place where they practice

e.g.: Urban, rural, govt. hospitals, primary health centers, private nursing homes 4. Doctors according to the type of practice

e.g.: Prescribing doctors, dispensing doctors, etc.

5.

Doctors according to their usage rate

e.g.: Heavy -users, light-users, non-users, past-users, etc. The scope for segmentation becomes clearer and broader from these examples. However one should bear in mind that the size of the segment should be large enough to be attractive. One should never, in the enthusiasm to finesegment the market, break down the market to the ultimate degree but just enough to uncover the opportunities. A segment should be viable. That is the cardinal principle.

SELECT

D O C T O R,

GOOD

D O C T O R,

COMMITTED

D O C T O R.

To succeed , companies need a new philosophy. To win in todays marketplace, companies must be customercentered - they must deliver superior value to their target customers. They must become adept in building products. building customers, not just

DOCTOR SELECTION Select 200 Most Potential Doctors Of Your Territory To make appropriate selection : Make thorough scrutiny of your present Standard Doctors List. Present list should be upgraded by making additions and/or deletions. Carry out in-depth market survey to finalize any additions or deletions. Ensure that every selected doctor is either already a strong supporter, or a young upcoming potential doctor, who can be cultivated into a strong supporter of our products.

THE SELECTED 200 DOCTORS WILL BE VISITED BY YOU EVERY MONTH

DOCTOR SELECTION Criteria For Doctor Selection Ask the following questions to the chemists who are in close proximity of the doctor being scrutinized. Who prescribes JAGSONPALs products? Which products of JAGSONPAL does he prescribe and how frequently?

Proportion of his prescription support to competitive brands.

Does he keep shifting between the brands or sticks to one brand ? Who are the extensive prescribers of Indomethacin Sustained release and other NSAIDs, Allylestrenol, Hydroxyprogesterone caproate, Nandrolone decanoate, Nandrolone phenylpropionate, Doxycycline, Thiopental Sodium, Ampicillin/ Amoxycillin and Cloxacillin combinations, Dextropropoxyphene combinations and Tonics etc. ?

Reconfirm your information with at-least two more chemists

DOCTOR SELECTION Finalize Your Doctor Selection, Prioritizing On Doctors who are already prescribing Jagsonpals products. Doctors who are prescribing therapeutic groups in which our products fall, but not prescribing our brands and can be nurtured by frequent exposures and suitable investments.

All the selected doctors for standard doctors list should have the following essential feature :

POTENTIAL

FOR

SIZABLE

BUSINESS

CATEGORIZATION OF

DOCTORS

IN

SDL

Divide the 200 doctors into two categories : 1. 2. CATEGORY I - 60 doctors CATEGORY II - 140 doctors

Subdivide the CATEGORY I into : 1. 2. HIGH VOLUME PRESCRIBING DOCTORS (HVPD) - 25 CORE DOCTORS - 35

To summarize: SDL (200 Doctors)

CATEGORY I (60 doctors)

CATEGORY II ( 140 doctors)

HVP doctors (25)

Core doctors (35)

SUGGESTED DOCTORS MIX OF CATEGORY I

( 60 DOCTORS)

S.No. 1. 2. 3. 4. 5. 6.

Speciality GYNECOLOGISTS ORTHOPEDIC SURGEONS GPs/PHYSICIANS ANESTHETISTS DENTAL/ENT SURGEONS OPHTHALMOLOGISTS

No. Of Doctors 20 17 - 20 15 - 17 2-3 3 3

Who Is The Category I Doctor ? For inclusion into the CATEGORY I , consider the following : A doctor who has a potential to provide a prescription support of Rs. 2500 / month, or more, but is not contributing at present. A doctor whose present prescription support is equal to or above Rs.2500/month. This doctor is to be maintained and developed further. These doctors should be : 1. 2. THE TREND SETTERS / OPINION BUILDERS Major consultants with roaring practice

A Category I doctor should necessarily belong to the head-quarter town. If you have more than one district town, then besides the HQ , you may extend your selection to one or more district towns, considering the business potential.

WHO IS A HVP DOCTOR ? A HVP doctor is from the cream of CATEGORY I doctors. A HVP doctor should be contributing / having the potential to contribute more than Rs.7500 / month 25 doctors will be selected for the promotion of following major products. S.No 1. 2. 3. 4. 5. Product INDOCAP SR METADEC 25/50 MAINTANE TAB/INJ DOXYPAL ANESTHAL No. Of Doctors 7 (Ortho-5) (Ophth. - 2) 5 6 5 2

THE ABOVE PRODUCTS SHOULD BECOME THE MAJOR BRANDS FOR JAGSONPAL

HVP doctors should be : Consistent prescribers of the product(s). Major contributors territory. Potential contributors for the future. to the existing market share of the product(s) in the

WHO IS A CATEGORY II DOCTOR ? A category II doctor should meet the following qualifying criteria : Present prescription contribution should be equal to or more than Rs.800 / month. Potential to contribute a prescription support of Rs.800 / month or more.

Doctors with total potential or present prescription contribution below Rs.800 / month should not be considered for this category.

Rolling Product Promotion The products on promotion have been categorized as per the specialty to whom they are to be promoted. Beneath each specialty, products feature in decreasing order of priority for promotion.
Gynecologists Maintane range Doxypal Parvon-spas Vecredil Amplus range Equirex J.P.Tone Seflox Tinidafyl Orthopedic surgeons Indocap SR Parvon-forte Metadec 25/50 Doflex / SR Amplus range Seflox Doxypal Consec Metabol G.P.s./ Physicians Amplus range J.P.Tone Equilibrium Equirex Parvon range Metabol Metadec 25/50 Diarlop / Plus Doxypal Seflox Doflex / SR Indocap SR Consec Tinidafyl-plus Quiss Anesthetists Anesthal Parvon Parvon-forte Amplus range Seflox Doxypal Dental surgeons Doxypal Amplus range Parvon-forte Doflex / SR Seflox Tinidafyl Consec Ophthalmologists Indocap SR Doxypal Amplus Parvon Parvon-forte

Maximum Of Two Products Should Be On Active Promotion At Any Given Time To A Doctor

ROLLING PRODUCT PROMOTION Some important guidelines are as follows : Product for promotion should be strictly selected starting product No. 1 under each specialty. Example : I. For Gynecologist - Maintane Tab/Inj. should be considered first for

promotion, followed by Doxypal, Parvon- spas and so on. II. For GP/Physician - Amplus range followed by J.P. Tone, Equilibrium, Equirex and so on. III. If a doctor belonging to any specialty does not has potential for products listed at number 1 and 3 (assessed after in-depth market survey) then products listed at number 2 and 4 should be taken up for promotion after assessing the prescription potential for these products.

Two products will be on active promotion at any given time. Once the doctor starts prescribing one of the products he should be thanked next visit onward. for his prescription support for that product, Another product

down the priority list should be included for promotion from the next visit. Thus in all there are three products on promotion, out of which doctor will be only thanked for his prescription support for one product and for the other two elaborate detailing will be done. A maximum of four products should be promoted in the manner

described above.

Within six visits, individually by the you the doctor should start prescribing one of the products. If not, two more visits should be made to the doctor alongwith AM/RM/SDM. If the doctor still does not prescribe either of the product, he should AM/RM. be considered for deletion in consultation with your

ROLLING PRODUCT PROMOTION

Example 1 for Gynecologists Maintane range and Doxypal are the first two products on priority of promotion to a Gynecologist. These two products should be detailed and samples of Maintane Tab. / Inj. and Doxypal should be only given. Consider a case where the doctor starts the third visit, his doctor done for Maintane range. INSTEAD, Parvon-spas, the product next on the priority, should be promoted alongwith Doxypal from fourth visit onward. Thus from fourth visit two products, Doxypal and Parvon-spas will be on active promotion and doctor will be thanked for his prescription support to Maintane Tab. / Inj.. Samples / promotional inputs should comprise of a mix of Doxypal and Parvonspas only from fourth visit onward. prescribing Maintane Tab. / Inj. from from fourth visit

should be only extended thanks

onward for the support to Maintane range. Elaborate detailing should not be

However occasional inquiry should be made in advance, before sampling, about the requirement of the samples of a particular product, which is not on active promotion but for which the doctor is being thanked for his prescription support ( in above case: Maintane Tab. / Inj. ). Do Cater To Any Specific Demand Suitable Reallocation Should Be Made In The Other Samples

ROLLING PRODUCT PROMOTION Example 2 - GPs / PHYSICIANS If a GP / Physician does not has any potential for Amplus range, J.P. Tone and Equilibrium but has the potential for Equirex (as assessed by the prescription audit) then Equirex, alongwith any product from Parvon range listed below it will be the two products on promotion. When the doctor starts prescribing Equirex he should be thanked for Equirex, next visit onwards and another product from Parvon range or Metabol should be taken up for active promotion.

YOU SHOULD STRICTLY FOLLOW THE ROLLING PRODUCT PROMOTION Specificity of call will ensure better productivity and accountability. REMEMBER A maximum of four products to be promoted to a doctor. To a HVP doctor , promote a maximum of two products.

DOCTOR CALL PLAN DOCTOR CATEGORY I HVP (25) CORE (35) CATEGORY II (140) INPUTS DURING MONTHLY VISIT VISIT I VISIT II SAMPLES SAMPLES SAMPLES J.P.MEDITIMES J.P.MEDITIMES ---TOTAL CALLS 50 70 140 260

No sampling to be done when a doctor is called upon alongwith

regional manager or sales development manager. You shall receive 60 copies of J.P.MEDITIMES every month.

THE OBJECTIVE OF REPEAT CALLS To ensure that every core and HVP becomes a key supporter for the selected product.

Further HVP Doctors Should Extend A Fairly Large Prescription Support To

Another One Product. Core Doctors Products. Should Extend Prescription Support To Another Three

SUGGESTED SAMPLE DISTRIBUTION PLAN

S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

PRODUCT AMPLUS CAP. AMPLUS KIDTAB DOXYPAL EQUILIBRIUM EQUIREX INDOCAP SR J.P.TONE MAINTANE 250 MAINTANE 500 MAINTANE TAB METABOL METADEC 25 METADEC 50 PARVON-FORTE PARVON-SPAS QUISS

MAX. UNITS TO BE GIVEN IN ONE VISIT 3-5 3-5 3-5 1-2 1-2 3-5 1 1-2 1 3-4 1-2 1-2 1 3-4 3-4 1-2

Sample Allocation Has Been Rationalized Depending Upon The Product Sale In Individual Headquarters

HOW TO MAINTAIN RECORD OF CATEGORY I DOCTORS In your Standard Doctors List : HVP doctor should be numbered serially from 1 to 25. CORE doctors should be numbered from 26 to 60. The remaining 140 doctors should be listed from serial No. 61 onwards.

The Numbering Should Be Strictly Adhered To , Irrespective Of Specialty And Location Of Doctor.

HOW TO GO ABOUT THE ENTIRE EXERCISE

Conduct an in-depth market survey. Re-analyze the present SDL based upon the latest market survey. List out names of all 200 doctors on rough sheets. HVP doctors should be numbered serially from 1 to 25. CORE doctors should be numbered from 26 to 60. The remaining 140 doctors should be listed from serial No. 61 onwards. Mention the product(s) to be promoted to the doctor, giving appropriate

weight-age to doctor specialty , potential and prescribing habits. During joint field working , your AM will spend one full day for discussion, scrutiny and finalization of the entire list. Thereafter, the data of all 200 doctors will be entered in your SDL.

DATA SHEET FOR SDL ( Annexure III )

Each sheet will carry detailed data of 6 doctors. Fill in the relevant details, in capital letters only. Leave one block blank between two words.
D R. S. P. G U P T A

Doctors name should be written as it appears in his letter - head or name plate.

Give full and correct address of the doctor, with pin code. Give the address of the place where you call on him. Numbering should be in continuous serial order. Give product codes as per the codes attached herewith.

SEND THE PHOTOCOPY OF CATEGORY I DOCTORS LIST ( SR. NO. 1 - 60) TO THE MARKETING DIVISION.

PRODUCT CODE S.No . 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. PRODUCT AMPLUS CAP. AMPLUS KIDTAB ANESTHAL CONSEC TAB. DIARLOP CAP. DIARLOP O.S. DIARLOP- PLUS CAP. DIARLOP - PLUS SUSP. DOXYPAL EQUIREX EQUILIBRIUM INDOCAP SR J.P.TONE MAINTANE 250 INJ. MAINTANE TAB. MAINTANE 500 INJ. METABOL METADEC 25 METADEC 50 PARVON PARVON-FORTE PARVON-SPAS QUISS TINIDAFYL PLUS CODE A+ AKT AN CON DR DOS DPC DPS DOXY EQX EQL IDSR JPT MTN250 MTN MTN500 MTB MTD 25 MTD50 PV PVF PVS QS T+

Data Processing The filled-in SDL data-sheets were received from the field staff, after vetting by the respective first and second-line managers. Upon receipt of the same at the Marketing Division, the entire material was handed over to the EDP department. After this effort, the PSR HQ-wise print-outs were generated ( Annexure IV )and returned to the respective AMs. The managers then corrected all inadvertent mistakes or input errors and re-sent the same to the Marketing Division, with overall modifications and amendments, as per the prescribed format ( Annexure V ). This set of corrections was finally incorporated into the database. This was a marathon effort, but it ensured that the database was current and active. All finished contact-lists were then printed and forwarded to the respective : PSRs AMs RMs for the individual HQs for the area of 5-6 HQs for the region of 4-5 AMs

The database and package was then transferred to the individual depots for continuous updating and follow-up of PSR activity monitoring.

The

outcome

Shortly after the plan was put into action, positive reports from the field started trickling in - the PSRs were now able the manage the Doctor : Product mix very effectively. The enthusiasm thus generated rapidly snowballed into a major revamping effort and the following benefits accrued: Specific product prescriber association Ease in handling a large number of products Focused working Better control over sample distribution Better promotional input control Reduced promotional expenses Higher per doctor productivity Pruning of less-productive doctors Addition of specific high-profile doctors from the category of consultants Sharp focus on prescribers rather than dispensing doctors

Another interesting finding which emerged from this exercise, was the identification of many latent needs of the doctors, which were genuinely in the pursuit of academic interest. Most customers exhibited the need for answers to their academic queries, rather than receiving routine sales promotion gimmicks. In fact, a surprisingly high number of doctors support. Thus emerged the need for shifting resource allocation and attention towards providing indirect marketing support. Based on the evaluated needs, the segments for providing indirect marketing support were identified. even suggested that the company should curtail the expenses on samples, gifts, etc. and focus attention on providing meaningful

Indirect marketing support

Learning Workshops Jagsonpal has tied-up with leading institutions and experts, to provide hands-on experience in sophisticated techniques, for the interested doctors. An observer programme in Ophthalmic Micro-surgery has been initiated, at Amritsar, for the ophthalmologists across the country. Jagsonpal also plans to start more such workshops, in other highly specialized fields, for which talks are at an advanced stage, with a leading institute in Chennai ( in the field of fertility ) and others across the country. Medical Videos Since the practicing doctors are hard-pressed for time to devote to learning new techniques being introduced in the medical, Jagsonpal has started distributing medical video cassettes through its field force, to various doctors in the country, for their home viewing. This medical video library, christened J P Medivideo, enables the doctors to get the titles of their choice, watch the same at their leisure and ask for more titles as per their interest and available time. This service also comes to the practicing doctors, free of cost. Medical Newsletters In order to make accessible the latest news and happenings in the field of medicine from all over the world, Jagsonpal has initiated a monthly newsletter by the name of JP Meditimes. This publication is distributed free of cost to doctors through the companys field force. The news articles contained in JP Meditimes pertain to all specialties and therapeutic entities, irrespective of whether Jagsonpal is at present active in those segments or not. The effort in bringing out this monthly news capsule has been widely welcomed and the company keep receiving requests from doctors, for being enrolled on the permanent mailing list. Computer Reference Search Service There is a lack of availability of good quality topical reference material, on diagnosis and treatment or management of various disorders, or research being

done on the latest drugs, all over the world. This information is required by all practicing doctors, especially by academicians, researchers and medical students. Jagsonpal has filled-in this gap by providing a Computer Reference Search Center, called JP Medisearch. Through JP Medisearch doctors now have a free and easy access to almost all of the worlds medical reference data. Post-Marketing Clinical Surveillance After a drug is successfully launched, the company keeps organizing clinical trials and studies on various drugs from reputed medical centers in the country, like AIIMS, Safdarjung Hospital and LHMC etc.. The results of these studies are then communicated to all the customers across the country. Medical Symposia and Conferences Jagsonpal is now actively participating in various medical conferences being organized by different medical bodies in the country, where not only are the products displayed for the benefit of medical fraternity, but participation in CME activities like sponsoring the various scientific sessions and panel discussions is also being done. On its own initiative, Jagsonpal arranges symposia and get - togethers, where medical persons of eminence deliberate on and share their experiences on the latest in the clinical findings. An effort is made to conduct such symposia in different parts of the country, so that doctors from all over the regions have an opportunity to benefit from them.

Summary

and

Conclusion

Any pharmaceutical company operating in the market, in the present times, should be vibrant, pro-active and sensitive to the changing needs of the market and the customers. The core group involved in strategy-making should be in constant touch with the market-place and customers. All changing needs of the market should be evaluated in perspective of the companies mission, long-term and short-term plans and whichever changes or modifications are approved by the management, should be implemented without any delay. It has been observed that delay in implementing the changes proves very expensive, because if the company does not react fast, there will be other competitors in the market, who will adopt a similar idea and derive the First Entry Advantage. The ethos of the entire exercise is amply reflected in the saying :

I cannot say whether things will change for the better, all I can say is that
they must change if they apt to get better G C Lichtenberg

Bibliography

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Batra Pramod : Management Thoughts Current Index of Medical Specialties : Bio-Gard (P) Ltd. Jan-Apr 1997 Drugs Price Control Order - 1995 : Eastern Book Company Drugs Under Patent : A Study by Operations Research Group, Jun 1993 Indian Pharmaceutical Guide : Pamposh Publications, 1996 Jones, John Harvey : Managing to Survive Kotler, Philip : Principles of Marketing, 6th edition Monthly Index of Medical Specialties : A.E.Morgan Publications Peters, Thomas J. : In Search of Excellence Retail Store Audit - Pharmaceutical Products : ORG Stanton, William J : Fundamentals of Marketing, 10th edition Subbarao, S.V.R: Handbook of Pharmaceutical Marketing in India, 1997

Annexure I

Promotional Tools : Pharmaceutical Industry

Direct support Doctor - oriented Visual-aid Product Literature Physician sample Catalogue Advertising in medical journals Advertising in doctors association journals Therapeutic index Dear Doctor letter Leave behind card Product sticker Gift / Product recall aid New Year card Birthday / Anniversary greetings Wall / Table calendar Patient education chart / leaflet

Retailer - oriented Visual-aid Product Literature Price list Counter service material Push support give-away material Retailers meet Best performance reward

Stockist - oriented Price list Counter service material Push support give-away material Stockists meet Best performance reward

Field force oriented Promotion Incentive scheme Recognition letters Recognition certificates Recognition awards Performers club membership Paid holidays Highlighting achievers in corporate newsletter

Indirect Support Participation in medical conferences Participation in symposia Participation in public education meets

Annexure II

Details of Pharmaceutical Specialties

( Jagsonpal Pharmaceuticals Limited )

S.No 1.

PRODUCT
Amplus cap.

COMPOSITION
Ampicillin Trihydrate I.P. equiv. to Ampicillin 250 mg. Cloxacillin Sodium I.P. equiv. to Cloxacillin 250 mg. Lactic Acid Bacillus 60 million spores. Ampicillin Sodium I.P. equiv. to Ampicillin (anh.) 250 mg. Cloxacillin Sod. I.P. equiv. to Cloxacillin 250 mg. Ampicillin Trihydrate I.P. equiv. to Ampicillin 125 mg. Cloxacillin Sodium I.P. equiv. to Cloxacillin 125 mg. Lactic Acid Bacillus 60 million spores. Each vial contains : Thiopentone Sodium 0.5gm. Thiopentone Sodium 1.0gm. Ranitidine Hydrochloride U. S. P. equiv. to Ranitidine 150mg. Loperamide HCl U.S.P. 2mg. Loperamide HCl U.S.P. 2mg. Furazolidone I.P. 100 mg. Doxycycline HCl I.P. equiv. to Doxycycline 100 mg. Diclofenac Sodium 50mg. Diclofenac Sodium 100 mg. (in sustained release form ) Clidinium Bromide U.S.P. 2.5mg. Chlordiazepoxide I.P. 5 mg. Chlordiazepoxide I.P. 10 mg . Ergot Preparata B.P.C. 150 mg. Ergot Preparata B.P.C. 270 mg. Indomethacin I.P. 25 mg. Indomethacin I.P. 75 mg. (in sustained release form)

THERAPEUTIC USE
Broad-spectrum antibiotic

2.

Amplus 500 Inj.

Broad-spectrum antibiotic

3.

Amplus Kidtab

Broad-spectrum antibiotic

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Anesthal 0.5gm 1.0gm Consec-150 Tab. Diarlop Cap. Diarlop-Plus Cap. Doxypal Cap. Doflex Tab. Doflex SR Tab. Equirex Tab. Equilibrium Tab. Ergotab Tab. Ergotab Forte Cap. Indocap Cap. Indocap SR Cap.

General anesthetic Anti-ulcerant Anti-diarrhoeal Anti-diarrhoeal Broad-spectrum antibiotic Anti-inflammatory Analgesic Anti-inflammatory Analgesic Anti-cholinergic Tranquilizer For regulating postdelivery hemorrhage For regulating postdelivery hemorrhage Anti-arthritic Anti-arthritic

17.

J.P.Tone

18. 19.

Maintane-250 Inj. Sterile unipack Maintane-500 Inj. Sterile unipack Maintane Tab. Sterile unipack Metabol-25 Inj. Metadec-25 Inj. Sterile unipack Metadec-50 Inj Sterile unipack Parvodex Cap.

Each 10 ml contains : Ferrous gluconate I.P. 200mg. Vitamin B-12 I.P. 2.5mcg. Vitamin B-1 I.P. 2.25mg. Vitamin B-2 I.P. 2.5mg. D-Panthenol I.P. 2.5mg. Vitamin B-6 I.P. 0.75mg. Niacinamide I.P. 22.5mg Hydroxyprogesterone Caproate U.S.P. 250 mg. Hydroxyprogesterone Caproate U.S.P. 500 mg. Allylestrenol 5 mg. Nandrolone Phenylpropionate B.P. 25 mg. Nandrolone Decanoate I.P. 25 mg. Nandrolone Decanoate I.P. 50 mg. Each cap. contains : Dextropropoxyphene HCl I.P. equiv. to Dextropropoxyphene 60mg. Dextropropoxyphene HCl I.P. 65 mg. Paracetamol I.P. 400mg. Dextropropoxyphene HCl I.P. 65 mg. Ibuprofen I.P. 400mg. Dextropropoxyphene HCl I.P. 32 mg. Paracetamol I.P. 350mg. Dextropropoxyphene HCl I.P. 65mg. Dicyclomine HCl B.P. 10mg. Paracetamol I.P. 400mg . Each ml contains: Promethazine HCl 5 mg. Each ml contains : Vitamin B-1 50mg. Vitamin B-6 25mg. Vitamin B-12 500mcg. Lignocaine Hydrochloride I.P. 1% w/v. Methyl Paraben I.P. 0.1% w/v. Propyl Paraben I.P. 0.02% w/v.

Hematinic and General debility tonic

For maintaining pregnancy For maintaining pregnancy For maintaining pregnancy Anabolic steroid Anabolic steroid Anabolic steroid Analgesic

20. 21. 22. 23. 24.

25.

Parvon Cap.

Analgesic

26. 27.

Parvon - Forte Cap. Parvon - N Cap

Anti-inflammatory Analgesic Analgesic

28.

Parvon- Spas Cap

Anti-spasmodic Analgesic

29.

Promethazine Elixir

Anti-histamine

30.

Pyrimine- 12 Inj.

B-Complex Vitamin supplement

31.

Quiss Cream

Each gm. contains: Betamethasone Valerate I.P. 0.50 mg. Gentamicin (as Sulphate) I.P. 1mg. Tolnaftate USP 10 mg. Iodochlorhydroxyquinoline I.P. 10 mg. in a cream base.

For mixed skin infections

32.

Seflox-250 Tab.

Ciprofloxacin HCl Monohydrate U.S.P. equiv. to Ciprofloxacin 250mg. Ciprofloxacin HCl Monohydrate U.S.P. equiv. to Ciprofloxacin 500mg. Tinidazole I.P. 500 mg. Tinidazole I.P. 300 mg. Diloxanide Furoate I.P. 250 mg. Methylpolysiloxane 25 mg. Each ml. contains: Tolnaftate USP 10 mg. Each vial contains : Ethacridine lactate 1mg./ml.

Anti-bacterial

33.

Seflox-500 Tab.

Anti-bacterial

34. 35.

Tinidafyl-500 Tab. Tinidafyl-plus Tab.

For anerobic infections Anti-amoebic

36.

Tolsol Soln.

Anti-fungal

37.

Vecredil

Abortifacient

Annexure III

Data Sheet For SDL Preparation

NAME OF PSR: __________________ NAME SDL NO.:
Dr .R

H.Q.
QUALIFICATION

__________________

SPECIALITY

ADDRESS PIN PRODUCT ON PROMOTION

NAME SDL NO.:

Dr .R

SPECIALITY

QUALIFICATION

ADDRESS PIN PRODUCT ON PROMOTION

NAME SDL NO.:

Dr .R

SPECIALITY

QUALIFICATION

ADDRESS PIN PRODUCT ON PROMOTION

NAME SDL NO.:

Dr .R

SPECIALITY

QUALIFICATION

ADDRESS PIN PRODUCT ON PROMOTION

NAME SDL NO.:

Dr .R

SPECIALITY

QUALIFICATION

ADDRESS PIN PRODUCT ON PROMOTION

Annexure IV