Rural Pharma Market-final
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Transcript of Rural Pharma Market-final
RURAL PHARMA MARKETCHALLENGES AND ISSUES
Presented By DAXESH PATEL MBA 1st Sem
FLOW OF PRESENTATION INDIA HAS DISCOVERED THE WORLD
MARKET PHARMA MARKET IN INDIA POTENTIAL OF PHARMACEUTICALS IN RURAL MARKETS GROWING OPPORTUNITIES STRATEGIES FOR RURAL MARKETING 4 Ps OF RURAL MARKET THE 4A APPROACH OTHER OPTIONS THE SPEED BREAKERS PROMISING FUTURE
INDIA HAS DISCOVERED THE WORLD MARKET Since the end of 1980s India has been
exporting more pharmaceuticals than it imports. The export surplus has widened from EUR 370m to EUR 20bn. At 32% in 2006, the export ratio was about twice as high as in 1996. Up until 2015,pharmaceutical sales are expected to rise by 8% p.a.
Source- Deutsche Bank Research, April 9,2008.
PHARMA MARKET IN INDIA Fastest Growing Pharma Market Of World
In 2006-07,this was valued at $7 billion, the
rural share was $1.4 billion. Metros and cities major revenue generators. As a %age to the total market ,the rural market in India has evolved from 18% in 2005 to 21% in 2007
Source- Mckinsey Report, Indian Pharma 2015
Contd.Rural Market vs. Urban MarketRURAL MARKETIN 2005IN 2007 EXPECTED IN 2015
URBAN CONTRIBUTION OF MARKET82%79% 56%
18%21% 44%
What does Mckinsey report say?5 factors will drive the growth of the Indian Pharma market over the next decade o Doubling the disposable incomes -40% o Significant expansion of medical infrastructure 20% o Greater penetration of health insurance-15% o A gradual shift in disease profile 10% o Population growth -15%
Middle class, rural mkt to fuel pharma growth The Financial Express: September 02, 2008 The Indian pharma industry's growth rate will touch 19% from the current normal growth rate of 13%. The incremental growth of 6.6% will be fuelled
by factors like a growing middle class (contributing 2% of the incremental growth), pricing of the pharma products (1%), untapped rural markets (2%), and marketing efficiencies (1%). The middle class, estimated to consist around
8% of total population, is expected to grow four-fold by 2015 to reach 364 million
POTENTIAL OF PCEUTICALS IN RURAL MARKETIntense Competitio n in Urban Area
Health Insurance
Potential
72.2% Populatio n
Rising Income
GROWING OPPORTUNITIES
Access to Better Healthcare Facilities
Lifestyle Diseases
Rising Aspiration of Better Health
Marketing of OTC Products in Rural MarketsHuge Scope for OTC drugs.
Spurious,
Untapped Market
Big Market Opportunity
Misbranded Qualities present
STRATEGIES FOR RURAL MARKETINGPENETRATION IN OTC SEGMENT AYURVEDIC REGIONAL BRANDS
P to P or P to G CONTACT
Contd..
Focused Distribution Channels
Developing Locally Trained Sales Personnel
Regularly Updating Rural Physicians
4 Ps OF RURAL MARKETLUPIN- Quality medicines at Affordable price Close to the people by creating AwarenessAROGYA JAGRITI MELA ,SWASTHA MELA by recruiting and developing persons of local region as MEDI- PRACHARAKSPRODUCT PRICE
PLACE
PROMOTION
NOVARTIS 4A ApproachThe more daring MNCs are meeting the challenges ofAVAILABILITY AFFORDABILITY
ATTRACTIVENESS
AWARENESS
DISTRIBUTING DRUGS Different strategies by different companies
LUPIN has a strong franchise in anti-infective
, pain management and GI agents. Dedicated rural field force of more than 300 people Nicolas Piramal has field force of 800 people to cater to rural market. Novartis has awareness campaign in rural areas. Ranbaxy has already a major presence.
OTHER OPTIONSCompanies can create separate marketing division to the rural marketing. Ipca was the first company to create separate division called as INTIMA. Cadilas rural division Explora has contributed around Rs 50 crore to the companys revenue. Nicholas Piramal enters rural pharma market .It has launched a pilot project in Rajasthan to take its drugs to rural areas
Contd. Vadodara-based Alembic also established its
rural business division, Maxis. Mankind Pharma focuses on the grassroots
by tapping small towns and rural areas through its team of about 1,900 medical representatives. Ranbaxy had setup continuous medical
education (CME) hubs, which are highly valued by doctors.
Himalaya gets ready for rural play Himalaya Drug Company is set for a bigger
push into rural markets with the launch of a new strategic business unit (SBU). The new division Zera will take
Himalayas products to doctors.
PHARMA COMPANIES IN RURAL AREAS SHOULD CONSIDER Price
Delivery Spread Availability Safety Quick Relief Profit Margins and Incentive
THE SPEED BREAKERSUnderdeveloped Markets
Absence of Regional Brands
Communication Facilities
Low per capita Income
Dispersed Market
HEALTHCARE SYSTEM IN INDIANATIONAL LEVEL Ministry of Health and Family welfare
STATE & U.T.S. Department of Health Family Welfare
DISTRICTS District Hospital
Continued..District LevelURBAN AREAS RURAL AREAS
Hospital Dispensary
Community Health Centre Primary Health Centre Sub-centre Village Health Guides and trained Dias
Rural-Urban Disparities IndiaRURAL (per 1000 population) Hospital Beds = 0.2 Doctors = 0.6 Public Expenditure = Rs.80, 000 Out of pocket = Rs.750, 000 URBAN (per 1000 population) Hospital Beds = 3.0 Doctors = 3.4 Public Expenditure = Rs.560, 000 Out of Pocket = Rs.1, 150,000
Source: Centre for Enquiry into Health and Allied Themes
CHALLENGES
Inadequate Infrastructure Connectivity Problem Distance Local Remedies Unavailability of Stockists Lack of Proper Distribution Network
PUBLIC PRIVATE PARTNERSHIPS Essential Strategy
Initiative to Improveo Efficiency o Effectiveness
o Equity
in the Provision of Health Care Services
A DIFFERENT BALL GAME Pharma companies have to play a dual role of
an educator and provider Each village is different in its ethnicity, values and culture. The companies would have to price their products strategically keeping in mind the spending power of villagers
PROMISING FUTURE Significant Share of Rural Pharma Market Emerging Rural Middle Class Improving Health Care Facilities
Government Plans
THANK YOU