The Study on to Identify the Effectiveness of Product Promotion by Sangrose Laboratories Pvt. Ltd

CHAPTER I

INTRODUCTION

1

1.1 INTRODUCTION

Sangrose Laboratories Pvt. Ltd is the only company in Kerala manufacturing

Clofozmine drug and is the third in India. It plays an important role in the National Leprosy

Education Program (NLEP) introduced by the Government of India under the aid of WHO. In

industry profile, a detail discussion about the pharmaceutical industry, it's advantage in India,

growth scenario etc. and in company profile it consist of background of the company, nature of

the business, vision and mission, quality policy, product profile, area of operation, ownership

pattern, competitors information, achievements, work flow model.

The present study entitled "The study on to identify the effectiveness of product

promotion by Sangrose Laboratories Pvt. Ltd" is to analyze how effectively the promotion

methods are successful in the market to attain the organizational goals. The study is being

conducted with the sample size of 50 respondents. The primary data collected with the help of

detailed questionnaire and secondary data is collected from the secondary sources. From this

study we found that the majority of the drug store owners are satisfied with the promotion

technique which is followed in the company The recommendation which were made on the

study are that the company shall concentrate much on advertisement ,provide samples and gifts

to Drug store owners and increase the frequency of advertisement, open retail stores in the

important locations. The study is concluded that the drug store owners are highly aware about the

quality of the drug. The company is mainly concentrated on personnel selling as their promotion

technique. The manufacturer is visiting the drug store owners and doctors for the improvement

of sales. If the company is concentrating on media advertisement they can easily capture the

market.

2

1.2 INDUSTRY PROFILE

INTRODUCTION TO THE PHARMACEUTICAL INDUSTRY

This section provides background information on the size, geographic distribution,

employment, production, sales and economic condition of the pharmaceutical industry. Facilities

described in terms of their standard industrial classification SIC codes.

As defined by its SIC codes, the pharmaceutical industry SIC 283 consist of

establishments that are primarily involved in fabricating or processing medicinal chemicals and

pharmaceutical products, the industry also includes establishments that formulate pharmaceutical

products and are involved in grinding, grading, and milling of botanical products. The census of

manufacturers defines an establishment as a single physical location or a facility where

manufacturing occurs. If more than one distinct line of manufacturing occurs at the same

location, the bureau of census separate reports for each activity.

Although the industry is part of the two - digit SIC code 28 for chemicals and allied

products it differs significantly from the rest of the chemicals industry in its industrial process,

the pharmaceutical industry as a whole. Since some of the bulk manufacturing operations involve

extracting small, highly concentrated quantities of active ingredients from much larger volumes

of raw material, the industry's production yield for these operations is correspondingly low.

When a pharmaceutical company discovers a compound that may have medical potential,

the company usually applies for a patent. Patents are valid for 20 years from the compound may

be marketed only after approval by the federal food and drug administration FDA. The drug

development process, beginning with initial toxicology testing, followed by clinical trials for

safety and effectiveness and review of the application by the FDA averages fifteen years. When

the company's patent or period of exclusively has expired, other companies may rely on the

original manufacturers data on safety and effectiveness to obtain approval to market a generic

version of the drug. Companies wanting to manufacture the same drug once it is off-patent are

required to obtain FDA marketing approval, based on evidence that the generic version is

"bioequivalent", ie., differs in the rate and extend of drug absorption by no more than 25 percent

nor less than the 20 percent from the original drug (FDA, 1996). While companies that specialize

3

in the development and marketing of brand name, innovator drug1 may generic drug companies

do not conduct research intended to identify and develop innovator drug (PhRMA, 1997).

Because of high cost and time to approval, effective patent protection is an essential

component in the decision to invest in drug development and marketing. This is especially true

for international companies interested in marketing drugs in several countries, each with its own

approval procedure and marketing requirements. While the international conference on

harmonization is proposed harmonized rules for drug registration and approval for Europe, Japan

and United States, each country retains its won approval system. In other countries, especially

developing countries, the issue of adequate patent protection is a central concern of

pharmaceutical manufacturers PhRMA, 1997.

Discovery of new compounds followed by further research and development R & D is

one of the primary functions of the industry. The pharmaceutical production process starts with

an extensive research stage, which can last several years. Following the discovery of a new drug

that appears to have efficiency in treating or preventing illness, pre clinical tests and clinical

trials are conducted. Then a new Drug Application (NDA) is submitted to the FDA for

pharmaceutical companies producing brand name drugs, the pharmaceutical Research and

Manufacturers of America PHRMA., it takes an average of 15 years to bring a new drug to

market, from time of discovery to approval PHRMA 1996. it is only after FDA has been secured

that market distribution in the US can begin.

The competition for discovering new drugs beginning them to market is extremely high.

As a result, a significant proportion of the industry's sales are reinvested into research and

development (R&D). according to PhRMA, total R&D expenditures, both domestically and

abroad, by its members, will be close to $19 billion dollars in 1997. PHRMA estimates that over

21% of total sales will be reinvested into RD by its members (PhRMA, 1997).

WORLD SCENARIO

Globalization of Indian pharmaceutical industry started in the early 1990s when the

Government opened its markets to foreign investments, Indian pharmaceutical industry's

Globalization took place with the coming of the foreign companies in the sector.

Globalization means the dismantling of the trade barriers and the integration of the

economies of the nations through trade in goods and services, corporate investments and

4

financial flow between nations. Globalization has increased the world over in recent years due to

the rapid progress that has been made in the field of technology especially in communication and

transport. The government of India opened its economy to foreign companies through changes in

its economic policy in 1991 and this led to the Globalization. The various advantages of

Globalization of Indian pharmaceutical industry are that it brought in huge amounts of foreign

currency into the industry which in its turn helped to boost the Indian economy. With many

foreign pharmaceutical companies entering the Indian pharmaceutical industry it increased the

number of jobs that were available to the people of the country. The benefits of Globalization of

Indian pharmaceutical industry are that the foreign pharmaceutical companies also brought in

highly advanced technology into the industry and this improved the quality of medicines that

were available to the people.

The various disadvantages of Globalization of Indian pharmaceutical industry are that the

competition increased in the Indian market between the foreign pharmaceutical companies and

domestic companies. This has resulted in many people losing their jobs and in Mumbai's Thane

region which is in Maharashtra more than 30,000 people lose their jobs between 1997 - 1999.

further the disadvantages of Globalization of Indian pharmaceutical industry are that many

foreign pharmaceutical companies are taking over the Indian pharmaceutical companies such as

SKB merged with Sterling, Ciba Geigy merged with Sandoz, and Rhone Poulenc merged with

Fashions. This has led to the fear that foreign pharmaceutical companies will take over the Indian

pharmaceutical industry.

MEDICINAL AND BOTANICALS (sis 2833)

Companies in the medicinal and botanicals industry category are primarily engaged in

1. manufacturing bulk organic and inorganic medicinal chemicals

and their derivatives.

2. Processing (grading, grinding and milling) bulk botanical drugs

and herbs. The industry is made up of establishments or facilities that manufacturer products of

natural origin, hormonal products and basic vitamins, as well as those that isolate active

medicinal principals such as alkaloids from botanical drugs and herbs(OMB, 1987). There

substances are used as active ingredients for the pharmaceutical preparations industry category.

5

Companies often produce both medicinal and botanical and pharmaceutical preparations at the

same facility.

PHARMACEUTICAL PREPARATIONS SIS 2834

The pharmaceutical preparations industry category is made up of companies that

manufactures, fabricate and process raw materials into pharmaceutical preparations for human

and veterinary uses. Finished products are sold in various dosage forms including for example,

tablets, capsules, ointments solutions suspensions and powders. These are 1) preparations aimed

for use mainly by dental, medical or veterinary professionals, and 2) those aimed for use by

patients and the general public (OMB1987). A more in depth discussion of these finished

products is provided in section 111. A.3. Pharmaceutical products also are often classified in

terms of their availability to the general public.

Both prescription and over the counter (OTC) drugs are available to the public.

Prescription drugs can be purchases only with a prescription from a licensed health care

professional authorized to prescribe, while (OTC) drugs may be purchased without prescription.

The FDA will consider approving the switch of a drug from prescription to (OTC) when the

manufacturer presents evidence that consumers can self diagnose the condition for which the

drug is approved, ie., cold or seasonal allergy, and directions for use can be written for the

consumer (PhRMA,1997).

6

1.3 COMPANY PROFILE

Sangrose Laboratories Pvt. Ltd was incorporated in the year 1987 as a private

limited company under Indian Company act 1956.

The company is registered as a small scale industry with main object of

manufacturing basic drugs is located industrial estate in Kollakadavu in Vittiyar village,

Mavelikara Taluk in the notified industrial backward district Alappuzha in Kerala state the

company has branch office in Primal Nagar Mumbai, the commercial production of basic drug

CLOFAZMINE was started in the year 1989. CLOFAZMINE is the drug recommended by

world health organization(WHO) for the treatment of leprosy under multi drug therapy (MDT)

and also used for the treatment of TB and AIDS. COMPANY HAS RECEIVED GMP

CERTIFICATE FROM W.H.O EQUIVALENT TO THOSE WHO RECEIVE ISO 9002.

Sangrose Laboratories Pvt. Are the only company in Kerala manufacturing this

drug and third in India the other to being multinational competition is avoided by maintaining the

quality of the product.

The company plays an important role in national leprosy educational program

(NLEP) introduced by the Government of India under the aid WHO.

The Sangrose Laboratories Pvt. Is ideally located in Kollakadavu industrial estate

of Kerala in Alappuzha district. The company is eligible for all incentives offered by the state

government like subsidy, sale tax exemption etc. The basic infrastructure required for the

company is easily available at the industrial estate and the company does not envisage any

difficulty in availing them the company already has a low tension connection of 100kwa. But the

company intends to convert it into a high tension connection of 250kwa by while installing its

own transformer the industrial estate has well connection internal board with access to the main

road. The nearest railway station is just 5km and national highway is 15km away.

SANGROSE LABORATORIES PVT. LTD. Was founded in the year 1987 by

Mr. C.K. Alexander who is the entrepreneur-research chemist. The DNA of the company is

drawn from its founder and his vision to establish world's only largest producer of clofazimine. "

7

The vision of a research chemist takes on social and commercial expressions that's in nutshell,

briefly explain the genesis and growth of Sangrose Labs.

Mr. C.K. Alexander the founder and Managing Director was born brought up in

the tradition of Kerala. A post-graduate, approved manufacturing and quality control chemist, he

is having 25 Years experience in the pharmaceutical industry which 10 years is in the top level

management in developing and implementing project where administrative, technical marketing

and financial skills are required. He is also having 3 years experience in research and

development process know-how for a number of life-saving drugs.

Mr. Thomas Samuel, the finance director a post graduate Business Administration

is well experienced in funds management. The sound financial health of the company proves his

expertise in the field.

Mr. George Samuel have three years of experience as a chemist Bombay. He is the senior

manager international Airlines for the last 10 years.

MISSION AND VISION

MISSION:

The mission of Sangrose is to dedicate itself through the creation of innovative medical

products and services for the benefit of the medical community and human health around the

world.

VISION:

"The vision of the company is to become a leader in the Indian pharmaceutical industry

and a significant global player, providing customers delight and enhancing shareholders values".

CORE VALUES

C - Care for customer

R - Respect for associates

E - Excellent teamwork

A - Always learning

T - Trust mutually

E - Ethical practices.

8

MARKETING DEPARTMENT OF THE COMPANY

The company has two types of product, basic drugs and capsules. Bulk drug

manufactured by the company is exported to Switzerland with the help of foreign company

named "NOVATIS" the products are sold by SANGROSE LABORATORIES Pvt. Ltd. In

Switzerland in the name Novatis. The capsule are supplied to central purchasing committee of

govt. of India through tender. Black cumin seed oil capsules are also exporting to Srilanka.

In Sangrose Laboratories there are 25 brands. Some of the brands are antibiotic,

antifungal, antitoxin, vitamin E, antioxidants. Positioning of some production are antifungal for

soft gelatin capsules, antioxidants for sun protection, depigmentary agent for skin ageing. Every

product is in introduction stage. Some of the market leader's antifungal is zockon. The market

share of each product category is less than .01 percent.

The total selling force is 10 peoples. The structure of the company is as field sales

executives, regional manger and marketing manager. The meeting of the company with the

bosses and the subordinates is once in a month. The target is growing to 20-30 percents. Control

is been exercised by the administrative control. They motivate their sales man by incentives,

recognition, awards etc. the company have a depots and also have stockiest and carry forward

agents. The discount structure of the company is 20 percent to retailers and 10 percent to

stockiest. The collection system of the company is 60 days time duration.

Competitors:-

The company enjoys monopoly position in he production of the Basic Drugs

'CLOFAZIMINE'. In the case of the other drugs they face little competition from Lark

Laboratories, Invines Laboratories etc.

PRICING POLICIES

Pricing is the marketing function whose importance is acknowledged even more easily

than that of other functions. From the point of view the customer, the price of the medicine

product as compare with the quality, quantity and package offered by Sungrose Laboratories

determines whether he will consider buying the product or not.

Price denotes the value of the product of service expressed in money. It regulates

business profits, allocates the economic resources for maximum production and distribution..

9

thus it is the prime regulator of production, distribution and consumption of goods. Every

marketing plan involves pricing decisions and hence price is a powerful marketing function.

Decision on pricing are taken on the basis of various factors influencing price,

such as demand for the product, acceptance of product, completion and other exiting market

conditions.

The pricing policy of Sungrose Laboratories Pvt. Ltd., which is basically

responsibility of the marketing department, is a function basically of cost and demand factors.

The price charged must be enabling the Sungrose Laboratories products to

recover the cost of production and also earn a reasonable margin of profit.

ADVERTISING

The term 'advertising' is derived from the Latin word 'advert era' that means to 'turn the

mind to'. In abroad sense, anything that turns attention to an appeal made to a large number of

people. It constitutes a mass approach contrary to the limited approach in the salesmanship of the

salesman. Advertising is employed to promote bright image of the firm in the society.

The Sungrose Laboratories Pvt. Ltd is the only company in Kerala manufacturing '

CLOTAZIMINE' and is the third in India. The other two being multinational competition is

avoided by maintaining the quality of the product

The company concentrates only in institutional or good will type advertisement.

Institutional advertising is designed to promote an idea or the name of the company in the eyes

of public.

Sungrose Laboratories expense on advertising is very meager that does not mean to say

that the company has compromised on advertising. The firm has advertised its product

effectively and adequately. This can easily be judged by the reputation enjoyed by its products

both in domestic and international market.

10

SALES PROMOTION

Sales promotion is an important marketing strategy. It is concerned with creation,

application and dissemination of materials and techniques that supplement advertising and

personnel selling. In present days sales promotion activities are viewed more from the angle of

an investment in business rather than expenditure it is a necessary and not merely a luxury or a

fashion.

Sales promotion undoubtedly days rich dividends in the long run. It is responsible for

awakening and stimulating customer demand for a product. Its importance can be judged from its

ability to create demand, even against keen competition.

SALES MANAGEMENT

The sales management is a term applied to the process of distributing the goods form the

producer to the ultimate user or customer. It covers selling, advertising and sales promotion ,

transportation handling, financing and risk taking.

Sales management represents one of the most important functional areas of management

in Sungrose Laboratories Pvt. Ltd. The firm has successfully coordinate activities such as

planning, organizing, direction, motivation, and control applied that sales management for

securing better performance namely reasonable profit through service.

SALES PLANNING

Planning is a managerial function. It invokes the selection from among several

alternatives, enterprises, objectives, policies and procedures, programmers and schedules. As a

part of marketing planning covers sales forecast, sales programmers to achieve sales goal and

marketing planning covers sales forecast, sales programmers to achieve sales goals and

marketing future course of action regarding the marketing and selling of a product. The picture

of sales program in connection with the launching of sales campaign in future is based on

objectives, policies and procedures.

Sungrose Laboratories sales planning is initiated by laying down the objectives desires to

be achieved. The various alternative before it are evaluated and form among those the most

appropriate course of action is selected which may fulfill predetermined goals. Finally the

selected plan of action is chattered out and implemented.

11

MAJOR CUSTOMERS OF THE COMPANY

Sungrose Laboratories sell its products to local area and also export their

products. Therefore the company is having local customers and international customers.

Given below are the customers of the company

1. Overseas customers.

2. Local customers.

3. Government supply (central purchasing committee)

4. Outside state customers.

SOME OF THE NATIONAL LEVEL OF CUSTOMERS

1. NOVA MILLENIUM PHARMA, CHENNAI

2. ABL BIO TECHNOLOGIES, CHENNAI

3. NOVEAU MEDICAM, CHENNAI

4. BENZOR PHARMA, COCHIN

5. HOUCHE REMEDYS, THRISSUR

6. ENKA HEALTHCARE, DELHI

These are the customers for capsules in India. The final products are handed to the excise

and they check them for dispatching. CPC is basically their customer. The distribution is by

Road and Rail.

12

CHAPTER II

REVIEW OF LITERATURE

13

REVIEW OF LITERATURE

Product promotion is concerned with any vehicle you employ for getting people to know more

about your offering. Advertising, public relations, point-of-sale displays, and word-of-mouth

promotion are all traditional ways for promotion. Promotion can be seen as a way of closing the

information gap between would-be sellers and would-be buyers. Your choice of a promotional

strategy will be dependent upon your budget, the type of offering you are selling, and availability

of said promotional vehicle - Jed C Jones

Product promotion is the process of informing, persuading and reminding the target audience

about the product on offer. A successful promotional strategy with time gives rise to a brand

wherein some specific attributes of the product are institutionalized in the market. Product

promotion refers to many kinds of incentives and techniques directed towards consumers and

traders with the intention to produce immediate or short-term sales effects-Jason Nyback

Product Promotion as those activities marketers engage in to advertise and sell their

product. Essentially, it’s all about getting the word out to your target audience and presenting

them with an offer and a message that resonates. Generally promotion is communicating with the

public in an attempt to influence them towards buying their product or services.

-Fabiantan

Promotion of a product plays vital role in Marketing Management. Companies can run same

advertisement and promotion campaign side by side, in home market or change them for each

local market- Asjid Bukhari

The word promotion is also used specifically to refer to a particular activity that is

intended to promote the business, product or service. A store might advertise that it is having a

big promotion on certain items, for instance, a business person may refer to and a

promotion.Today's market is full of offers and discounts. Marketers use simple promotion

program to entire customers to buy product and services. While the objective of advertising are

14

long term and generally of brand building, promotion programs often pursue a single goal ie., to

maximize sales in short term.

The present study titled "The effectiveness of Product Promotion" is a study

among the drug tore owners at Mavelikara to identify the effectiveness of product effectively the

promotion methods are successful in the market to attain the organizational goals. The particular

study is being conducted with the sample size of 100 respondents and the secondary data is

collected from the secondary sources.

15

CHAPTER III

RESEARCH METHODOLOGY

16

3.1 Scope of the study

The scope of the study is the following

b) To expand the target market

c) To gain the additional market share and additional revenue.

d) To develop favorable consumer experience with the product.

e) To add extra value to the product and develop franchise.

f) To generate short term cash.

g) In response to competitive move.

3.2 Objectives of the study

The main objectives are divided into two categories.

1. Primary objectives.

To find out the effectiveness of product promotion of Sangrose Laboratories Pvt.

Ltd.

2. Secondary objectives

a) to find out the efforts provided by the company.

b) To find out the frequency of advertisement media.

c) To find out which age group is targeted.

d) To find out whether cash discounts are provided

e) To find out the monthly sales of each drug store.

f) To identify how the representatives visits the drug store to promote their product.

g) To identify how often the representatives visits the doctors in their area canvas for

their product.

17

3.3Limitations of the study

a) The study is only limited to the shops in and around Mavelikara, so the study is

not relevance or applicable to other areas.

b) The Organizational limitations

c) Some information was misleading and some were false.

d) Broad frame work of the study.

3.4 METHODS OF DATA COLLECTION

Primary data

The Primary data are those which are collected afresh and for the first time. In my study I

collected Primary data through questioner method. It was carried out in a structured way.

Secondary data.

The Secondary data are those which have been already collected by someone else and

which have already been passed through the statistical process. In my study I collected

Secondary data from:

a) Company website www.sangroselabs.com

b) Annual report of the company

c) Manuals

d) Brochures

e) Booklets

The important statistical tools used in this study are

Percentage analysis.

Bar Diagram

Pie Chart

Chi-square Test of independence

18

http://www.sangroselabs.com/

CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

19

DATA ANALYSIS AND INTERPRETATION

TABLE 1

TABLE SHOWING AWARENESS ABOUT THE DRUG CLOFAZIMINE

INTERPRETATION

From the above table it is found that 60% of the drug store owners are aware of

the drug and 30% of the drug store owners are not aware about the drug and also 10% are not

respond.

20

FACTOR NO. OF RESPONDENTS PERCENTAGE

YES 60 60

NO 30 30

NO OPINION 10 10

TOTAL 100 100

CHART 1

CHART SHOWING AWARENESS ABOUT THE DRUG CLOFAZIMINE

YES NO NO OPINION0

10

20

30

40

50

60

70

NO. OF RESPONDENTS

NO. OF RESPONDENTS

21

TABLE 2

TABLE SHOWING HOW THEY CAME TO KNOW ABOUT THE DRUG

INTERPRETATION

From the above table it shows that 18% of drug store owners are aware about the

drug through advertisements and 60% of drug store owners are aware about the drug through

personnel selling and 12% of drug store owners are aware about the drug through friends and

10% of drug store owners are aware about the drug through others.

22


ADVERTISEMENTS 18 18

PERSONNEL SELLING 60 60

FRIENDS 12 12

OTHERS 10 10

TOTAL 100 100

CHART 2

CHART SHOWING HOW THEY CAME TO KNOW ABOUT THE DRUG

ADVERTIS

EMEN

TS

PERSO

NNEL SE

LLING

FRIEN

DS

OTHER

S0

10

20

30

40

50

60

70

NO. OF RESPONDENTS

NO. OF RESPONDENTS

23

TABLE 3

TABLE SHOWING ON THE BASIS DRUG STORES WILL PURCHASE THE PRODUCT


PRICE 20 20

QUALITY 40 40

AVAILABILITY 24 24

LONGTERM USE 10 10

OTHERS 6 6

TOTAL 100 100

INTERPRETATION

From the above table it is clear that most of the people purchase the product

because of this quality (ie. 40%). It is also found that 24% of people purchase it because its

availability and 20% are prefer its price for purchasing. Only 10% people purchase for its long-

term use and 6% are not respond.

24

CHART 3

CHART SHOWING ON THE BASIS DRUG STORES WILL PURCHASE THE PRODUCT

PRICE QUALITY AVAILABILITY LONGTERM USE

OTHERS0

5

10

15

20

25

30

35

40

45

NO. OF RESPONDENTS

NO. OF RESPONDENTS

25

TABLE 4

TABLE SHOWING THE PERCENTAGE OF THE DRUG TO ALL AGE GROUP

INTERPRETATION

From the above table it is found that 56% of the people are consent that the drug is to all

age group, 40% of the people are not consent and 4% are not respond.

26


YES 56 56

NO 40 40

NO OPINION 4 4

TOTAL 100 100

CHART 4

CHART SHOWING THE PERCENTAGE OF THE DRUG TO ALL AGE GROUP

YES NO NO OPINION0

10

20

30

40

50

60

NO. OF RESPONDENTS

NO. OF RESPONDENTS

27

TABLE 5

TABLE SHOWING FOR HOW LONG THE DRUG STORE OWNER WERE DEALING

WITH THE DRUG

FACTOR NO.OF RESPONDENTS PERCENTAGE

1 YEAR 20 20

5 YEAR 20 20

15 YEAR 24 24

MORE THAN 15 YEARS 36 36

TOTAL 100 100

INTERPRETATION

From the above table it is very clear that ,20% of the drug store owners were dealing with the

drug for 1 year and another 20% are also dealing and 24%f the drug store owners are dealing

with 15 years and 36% are dealing with more than 15 years

28

CHART 5

CHART SHOWING FOR HOW LONG THE DRUG STORE OWNER WERE

DEALING WITH THE DRUG

29

1 YEAR 5 YEARS 15 YEARS MORE THAN 15 YEARS

0

5

10

15

20

25

30

35

40

NO. OF RESPONDENTS

NO. OF RESPONDENTS

TABLE 6

TABLE SHOWING THE FREQUENCY OF PUCHASE MADE BY THE DRUG STORE

OWNERS


DAILY 4 4

ONCE IN A WEEK 26 26

TWICE IN A WEEK 50 50

ONCE IN A MONTH 20 20

TOTAL 100 100

30

INTERPRETATION

From the above table it is very clear that ,4% of the drug store owners were purchasing w

the drug daily and another 26% are purchasing once in a week and 50%f the drug store owners

are purchasing twice in a week and 20% purchase once in a month .

CHART 6

CHART SHOWING THE FREQUENCY OF PURCHASE MADE BY THE DRUG STORE

OWNERS

31

DAILY ONCE IN A WEEK

TWICE IN A WEEK

ONCE IN A MONTH

0

5

10

15

20

25

30

35

40

45

50

NO. OF RESPONDENTS

NO. OF RESPONDENTS

TABLE

7

TABLE SHOWING THE AMOUNT OF PURCHASE MADE BY THE DRUG STORES

INTERPRETATION

From the above table it is very clear that, 12% of the drug store owners made a

purchase within Rs. 500, 8% of the drug store owners made in purchase with in Rs.500-1000,

16% of the drug store owners made a purchase above Rs.1000-1500 and 64% of te drug store

owners made a purchase above Rs.1500.

32


1 - 500 12 12

500 - 1000 8 8

1000 - 1500 16 16

ABOVE 1500 64 64

TOTAL 100 100

CHART 7

CHART SHOWING THE AMOUNT OF PURCHASE MADE BY THE DRUG STORES

33

1 - 500 500 - 1000 1000 - 1500 ABOVE 15000

10

20

30

40

50

60

70

NO. OF RESPONDENTS

NO. OF RESPONDENTS

Axis Title

Axis Title

TABLE 8

TABLE SHOWING AVERAGE SALES PER MONTH


1 - 5000 20 20

5000 - 10000 70 70

ABOVE 10000 10 10

TOTAL 100 100

INTERPRETATION

From the above table it is very clear that, 20% of the drug store owner’s average sale per

month below rupees 5,000, 70% of the drug store owner’s average sale between Rs. 5,000 –

10,000 and 10% of the drug. store owner’s average sale is above rupees 10,000.

34

CHART 8

CHART SHOWING AVERAGE SALES PER MONTH

35

NO. OF RESPONDENTS

Jan-005000 - 10000ABOVE 10000

TABLE 9

TABLE SHOWING DISPLAY OF GOODS AT DRUG STORE


YES 76 76

NO 16 16

NO OPINION 8 8

TOTAL 100 100

INTERPRETATION

From the above table it is very clear that, 76% of the drug store owners say that the

manufacturer is displaying the product availability at their stores, 16% of the drug store owners

36

say that the manufacturer is not displaying the product availability at their stores and 8% are not

responded.

37

CHART 9

CHART SHOWING DISPLAY OF GOODS AT DRUG STORE

YES NO NO OPINION0

10

20

30

40

50

60

70

80

NO. OF RESPONDENTS

NO. OF RESPONDENTS

38

TABLE 10

TABLE SHOWING SATISFACTORY LEVEL OF DRUG STORE OWNERS


YES 60 60

NO 36 36

NO OPINION 4 4

TOTAL 100 100

INTERPRETATION

From the above table it is very clear that, 60% of the drug store owners are satisfied of

the drugs, 36% are not satisfied and 4% are not responded.

39

CHART 10

CHART SHOWING SATISFACTORY LEVEL OF DRUG STORE OWNERS

40

YES NO NO OPINION0

10

20

30

40

50

60

70

NO. OF RESPONDENTS

NO. OF RESPONDENTS

TABLE 11

TABLE SHOWING WHETHER THE DRUG IS COMMONLY PRESCRIBED BY THE

DOCTORS


YES 60 60

NO 30 30

NO OPINION 10 10

TOTAL 100 100

INTERPRETATION

From the above table it is very clear that ,16% of the drug store owners say that the drug

is commonly prescribed by the doctors, 30& of the drug store owners say that the drug in not

commonly prescribed and 10% not responded.

41

CHART 11

CHART SHOWING WHETHER THE DRUG IS COMMONLY PRESCRIBED BY THE

DOCTORS

42

PERCENTAGE

YES

NO

NO OPINION

TABLE 12

TABLE SHOWING WHETHER SANGROSE IS PROVIDING ANY DISCOUNTS AT THE

TIME OF DELIVARY


YES 80 80

NO 14 14

NO OPINION 6 6

TOTAL 100 100

INTERPRETATION

From the above table it is very clear that ,08% of the drug store owners say that the

manufacturer provides discount at the time of delivery of drugs, 14% of the drug store owners

say that the manufacturer doesn’t provide discount at the time of delivery of drugs.

43

CHART 12

CHART SHOWING WHETHER SANGROSE IS PROVIDING ANY DISCOUNTS AT THE

TIME OF DELIVERY

44

PERCENTAGE

0

10

20

30

40

50

60

70

80

90

YES NO NO OPINION

PERCENTAGE

TABLE

13

TABLE SHOWING GIVING OF MEDICINES WITHOUT DOCTOR'S PRESCRIPTION.


YES 0 0

NO 100 100

TOTAL 100 100

INTERPRETATION

From the above table, it is clear that 100% of store owners are say that medicines are not giving

without doctor’s prescription.

45

CHART 13

CHART SHOWING GIVING OF MEDICINES WITHOUT DOCTOR'S PRESCRIPTION

YES

NO

46

TABLE 14

TABLE SHOWING THE OPINION ABOUT THE DISPLAY OF DRUGS MADE BY

SANGROSE

INTERPRETATION

From the above table, it is clear that 50% of the drug store owners are highly satisfied by

the display of drugs made by the manufacturer, 20% of the drug store owners are satisfied by the

display of drugs made by the manufacturer, and 12% of the neutral by the display of drugs made

by the manufacturer, 8% of the drug store owners are dissatisfied by the display of drugs made

by the manufacturer and 10% are highly dissatisfied by the display of drugs made by the

manufacturer.

47


HIGHLY SATISFIED 50 50

SATISFIED 20 20

NEUTRAL 12 12

DISSATISFIED 8 8

HIGHLY DISSATISFIED 10 10

TOTAL 100 100

CHART 14

CHART SHOWING THE OPINION ABOUT THE DISPLAY OF DRUGS MADE BY

SANGROSE

48

0

10

20

30

40

50

60

PERCENTAGE

HIGHLY SATISFIED

SATISFIED

NEUTRAL

DISSATISFIED

HIGHLYDISSATISFIED

TABLE

15

TABLE SHOWING THE DRUG STORE OWNERS SATISFACTORY LEVEL WITH

DISCOUNTS OFFERED BY SANGROSE


YES 80 80

NO 16 16

NO OPINION 4 4

TOTAL 100 100

INTERPRETATION

From the above table, it is clear that 80% of the drug store owners are say that the

manufacturer provided discounts, 16% are say that the manufacturer doesn’t provide discount

and 4% are not responded.

49

CHART 15

CHART SHOWING THE DRUG STORE OWNERS SATISFACTORY LEVEL WITH

DISCOUNTS OFFERED BY SANGROSE

50

PERCENTAGE

YES

NO

NO OPINION

TABLE 16

TABLE SHOWING WHETHER SANGROSE IS PROVIDING SPECIAL INCENTIVE PRICE

FOR INCREASING THE SALE OF DRUGS


YES 48 48

NO 40 40

NO OPINION 12 12

TOTAL 100 100

INTERPRETATION

From the above table it is very clear that, 48% of the drug store owners say that the

manufacturer provides special incentive price for increasing the sale of drugs, 40% of the drug

51

store owners say that the manufacturer doesn’t provide special incentive price and 12% are not

respond.

52

CHART 16

CHART SHOWING WHETHER SANGROSE IS PROVIDING SPECIAL INCENTIVE PRICE

FOR INCREASING THE SALE OF DRUGS

53

05

101520

253035

404550

YES NO NO OPINION

PERCENTAGE

PERCENTAGE

TABLE 17


VERY HIGH 14 14

HIGH 40 40

MEDIUM 24 24

LOW 18 16

VERY LOW 6 6

TOTAL 100 100

TABLE SHOWING THE FREQUENCY OF ADVERTISEMENT MADE BY SANGROSE

54

INTERPRETATION


frequency is very high, 40% of the drug store owners say that the frequency of advertisement is

high, 24% of the drug store owners say that the frequency of advertisement is medium, 16% of

the drug store owners say that frequency of advertisement is low and 6% of the drug store

owners say that frequency of advertisement is very low.

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CHART 17

CHART SHOWING THE FREQUENCY OF ADVERTISEMENT MADE BY SANGROSE

0

5

10

15

20

25

30

35

40

VERYHIGH

MEDIUM VERYLOW

PERCENTAGE

PERCENTAGE

56

TABLE 18

TABLE SHOWING WHETHER THE RUPRASENTATIVES VISITING THE DRUG

STORES


DAILY 24 24



ONCE IN A MONTH 6 6

TOTAL 100 100

INTERPRETATION


manufacturer visit the doctors daily, and 48% of the drug store owners say that the manufacturer

visit the doctors once in a week and 22% of the drug store owners say that the manufacturer visit

the doctors twice in a week, and 6% are say that manufacturer visit the doctors once in a month.

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CHART 18

CHART SHOWING WHETHER THE RUPRASENTATIVES VISITING THE DRUG

STORES

58

PERCENTAGE

0

10

20

30

40

50

60

DAILY ONCE IN AWEEK

TWICE IN AWEEK

ONCE IN AMONTH

PERCENTAGE

TABLE 19

TABLE SHOWING THE WHETHER THE RUPRASENTATIVES VISITING THE DOCTOR


DAILY 24 24



ONCE IN A MONTH 6 6

TOTAL 100 100

INTERPRETATION


manufacturer visit the doctors daily, and 56% of the drug store owners say that the manufacturer

59

visit the doctors once in a week and 14% of the drug store owners say that the manufacturer visit

the doctors twice in a week, and 6% are say that manufacturer visit the doctors once in a month.

60

CHART 19

CHART SHOWING THE WHETHER THE RUPRASENTATIVES VISITING THE DOCTOR

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PERCENTAGE

DAILY

ONCE IN A WEEK

TWICE IN A WEEK

ONCE IN A MONTH

TABLE 20

TABLE SHOWING WHETHER DISCOUNT IS PROVIDED AT THE TIME OF PURCHASE


YES 70 70

NO 20 20

NO OPINION 10 10

TOTAL 100 100

INTERPRETATION

From the above table it is clear that 70% of the drug store owners say that discount is provided at

the time of purchase and 20% of the drug store owners say that discount is not provided at the

time of purchase.

62

CHART 20

CHART SHOWING WHETHER DISCOUNT IS PROVIDED AT THE TIME OF PURCHASE

PERCENTAGE

YES

NO

NO OPINION

63

CHI-SQUARE ANALYSIS

CHI-SQUARE TEST-1

1.To find out the relation between advertisement and locality of the drug store

Null hypothesis: H0 There is no significant difference between the advertisement and locality

of the drug store

Alternative hypothesis: H1 There is significant difference between the advertisement and

locality of the drug store

Locality

Advertise

ment

Rural areas Urban areas City areas Total

Very high 3 5 6 14

High 5 15 20 40

Medium 9 10 5 24

Low 6 7 3 16

Very low 3 3 - 6

ssssTotal 26 40 34 100

Expected frequency

3.64 5.6 4.76

10.4 16 13.6

6.24 9.6 8.16

4.10 6.04 5.44

1.56 2.40 2.04

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CHI- SQUARE TABLE

Sl no O E O-E (O-E)2 (O-E)2/E

1 3 3.64 - .64 .4096 .1125

2 5 5.6 - .6 .36 .0642

3 6 4.74 1.24 1.5376 .3230

4 5 10.4 -5.4 29.16 2.8038

5 15 16 -1 1 .0625

6 20 13.6 6.4 40.96 3.0117

7 9 6.24 2.76 7.6176 1.2207

8 10 9.6 .4 .16 .O166

9 5 8.16 - 3.16 9.9856 1.2237

10 6 4.16 1.84 3.3856 .8138

11 7 6.40 .6 .36 .0562

12 3 5.44 -2.44 5.9536 1.0944

13 3 1.56 1.44 2.0736 1.3292

14 3 2.40 .6 .36 .15

15 - 2.04 -2.04 4.1616 2.04

Total 14.3223

CHI-SQUARE TEST

Level of significance = 5%

Chi-square =∑ (O i –E i) 2/E i

Degrees of freedom =(r-1) (c-1) = (5-1) (3-1)

4 x 2 = 8

i.Calculated value =14.3223

ii.Tabulated value =

iii.Calculated value < Tabulated value

65

Therefore, H0 is accepted

CONCLUSION:

There is no significant difference between the advertisement and locality of the drug

store

66

CHI-SQUARE TEST-2

2.To find the relationship between the amount of purchase of drug and locality of the drug

store

Null hypothesis: H0 There is no significant difference between the amount of purchase of drug

and locality of the drug store

Alternative hypothesis: H1 There is significant difference between the amount of purchase of

drug and locality of the drug store

Locality

Amount

Of purchase

Rural areas Urban areas City areas Total

1-500 2 2 7 12

500-1000 2 2 4 8

1000-1500 3 4 9 16

Above-1500 11 18 35 64

Total 18 27 55 100

Expected frequency:

2.16 3.24 6.6

1.44 2.16 4.4

2.88 4.32 8.8

7.04 17.28 35.2

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Chi-square table

S.No O E O-E (O-E) 2 (O-E) 2/E

1 2 2.16 -.16 0.0256 0.0118

2 3 3.24 -.24 0.0576 0.0177

3 7 6.6 0.4 0.16 0.0242

4 2 1.44 0.56 0.3136 0.2177

5 2 2.16 -.16 0.0256 0.0118

6 4 4.4 -.4 0.16 0.0363

7 3 2.88 0.12 0.0144 0.005

8 4 4.32 -.32 0.1024 0.0236

9 9 8.8 0.2 0.4 0.0454

10 11 7.04 3.96 15.6816 2.2275

11 18 17.28 0.72 0.5184 0.03

12 35 35.2 -.2 0.4 0.0113

Total 2.6623

CHI-SQUARE TEST

Level of significance = 5%

Chi-square =∑ (O i –E i) 2/E i

Degrees of freedom =(r-1) (c-1) = (4-1) (3-1) =6

i.Calculated value =2.6623

ii.Tabulated value =

iii.Calculated value < Tabulated value

Therefore, H0 is accepted

CONCLUSION:

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There is no significant difference between the the amount of purchase of drug and

locality of the drug store

69

CHAPTER V

FINDINGS

SUGESSIONS

CONCLUTIONS

FINDINGS

70

1. Majority (60%) of the drug store owners are aware about the drug

2. Majority (60%) of the drug store owners know about the drug through personnel selling

3. 40% of the drug store owners are influenced by the quality of the drug and 20% of the

drug store owners are influenced by the price.

4. Majority (56%) of the drug store owners say that the drugs are not preferable to all age

group

5. Majority (36%) of the drug store owners are dealing with the drugs more than 15 years.

6. Majority (50%) of the drug store owners are purchasing the drugs twice a week

7. Majority (64%) of the drug store owners are purchasing the drug for more than Rs. 1500

in twice a week.

8. Majority (70%) of the sales per month is in Rs.5000 - 10000

9. Majority (76%) of the drug store owners say that there is display of goods made by the

manufacturer.

10. Majority (60%) of the drug store owners satisfied with the display of goods made by the

manufacturer.

11. Majority (60%) of the drug store owners say that the drugs is commonly prescribed by

the doctors.

12. Majority (80%) of the drug store owners say that the manufacturer is providing discounts

at the time of delivery

13. All the respondents say that nobody will purchase the medicines without doctor's

prescriptions.

14. Majority (80%) of the drug store owners are highly satisfied with the display of goods

made by the manufacturer.

15. Majority (80%) of the drug store owners are satisfied with the discounts offered by the

manufacturer

16. Majority (48%) of the drug store owners are agreeing that the manufacturer is providing

special incentives for increasing the sale

17. Majority (40%) of the drug store owners say that the frequency of advertising is high

18. Majority (48%) of the drug store owners are agreeing that the manufacturer visit the shop

once in a week

71

19. Majority (56%) of the drug store owners are agreeing that the manufacturer visit the

doctors once in a week

20. Majority (70%) of the drug store owners say that the manufacturer is offering

SUGGESTIONS

72

The company shall concentrate much more advertisement.

The company shall identify the requirements of the drug store owners.

The company shall give free samples and gifts to the drug store owners.

The company shall target on specific age group

The company shall open small retail stores at important locations

The company shall increase the volume of sale by identifying the requirements of the

drug store owners.

The company shall increase the frequency of visiting the doctors

The company shall provide more discounts on bulk purchase

The company shall improve the quality of the drugs

The company shall improve the incentive pricing at the time of delivery

The company shall increase the display made by the drug store.

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CONCLUSION

From the study conducted it is concluded that the majority of the drug

store owners are satisfied with the present promotion techniques which is carried out by the

company. The drug store owners are highly aware about the quality of the drug. The company is

mainly concentrating on personnel selling as a promotion technique. The manufacturers are

visiting the drug store and doctors for the improvement of their sales. If they are concentrating

more on media advertisement they can easily capture the market.

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APPENDICES

75

A STUDY AMONG THE DRUG OWNERS TO IDENTIFY THE

EFFECTIVENESS OF PRODUCT PROMOTION BY SANGROSE

LABORATORIES PVT LTD.

QUESTIONNAIRE

Name :

Place :

Gender:

Age :

1. Are you aware about the drug Clofazimine?

Yes No No opinion

2. How do you know about the drug?

Advertisement Personnel Selling

Friends Others

3. On what basis you will purchase the drug?

Price Quality

Availability Long term Use Others

4. Is it preferable to all age group?

Yes No No opinion

5. For how long are you dealing with the drug?

1 year 5 years

15 years more than 15 years

76

6. What is the frequency of purchase?

Daily Once in a week

Twice in week Once in a month

7. What is the amount of purchase (Rs)?

100 - 500 500 - 1000

1000 - 1500 Above 1500

8. What is average sales of the drug per month?

1 - 5000 5000 - 10000

Above 10000

9. If the manufacturer gives you display goods at your shops?

Yes No No opinion

10. Are you satisfied with the display goods made by the manufacturer?

Yes No No opinion

11. Is the drug commonly prescribed by the doctors?

Yes No No opinion

12. While delivering the samples are they making any discounts?

Yes No No opinion

13. Did you ever give medicines without doctor's prescription?

Yes No No opinion

14. What is your option about the display made by Sangrose at your drug store?

Highly Satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

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15. Are you satisfied with the cash discounts offered by Sangrose?

Yes No No opinion

16. Is Sangrose providing special incentives for selling more of Sangrose drugs?

Yes No No opinion

17. What do you think about the frequency of advertisement of Sangrose drugs?

Very high High Medium

Low Very low

18. How often did the manufacturer visit the drug shop?


Twice in a week Once in a month

19. How often did you visit the doctors?


Twice in a week Once in a month

20. Is Sangrose providing any discount price at time of purchasing?

Yes No No opinion

THANK YOU

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BIBLIOGRAPHY

79

BIBLIOGRAPHY

1. Philip Kotler. "MARKETING MANAGEMENT ”

2. Tapan K. Panda MARKETING MANAGEMENT"

3. C.R. Kothari “RESEARCH METHODOLOGY"

4. Naresh K. Malhotra MARKETING RESEARCH "

5. Donald R. Cooper & Pamela S. Schindler MARKETING RESEARCH "

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The Study on to Identify the Effectiveness of Product Promotion by Sangrose Laboratories Pvt. Ltd

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Transcript of The Study on to Identify the Effectiveness of Product Promotion by Sangrose Laboratories Pvt. Ltd