1.

Industry Scope
Company Wise Grid

Total Market – 28559 Crs RANK

Growth Industry - 14%

TO
1 CIP
2 RA
3 GL
 Company Wise -
Grid
STARS
55
15
19
?
50

45

In
40 the TOP rung of 40 companies , 1 company is in STAR &

13 companies in Q Mark.
Market Growth

35

30 7 companies in Cash Cow

25 24 26 29
10 17
9 31
20 7
32
13 16 27
15 22
5
CASH COWS

12 6 35
11 33
10 12 20
8 30 37
18
4 14 28
5 23

DOGS
3 25 39
21 38
0 34 36
40
      
100% 75% 50% 25% 10 % 0
Market Share
17. Intas 25. USV 33. Indoco
1. CIpla 9. DRL
18. WOckhardt 26. Glenmark 34. Wyeth
2. Ranbaxy 10. Lupin
19. Emcure 27. Ipca 35. Unique
3. GlaxoSmithkline 11. Sanofi Aventis
20. Novartis 28. Cadila 36. Astra
4. Nicholas Piramal 12. Aristo
21. Micro 29. Elder 37. Blue Cross
5. Zydus - Cadila 13. Abbott
22. FDC 30. Merck Limited 38. Shreya
6. Sun Pharma 14. ALembic
23.Unichem 31.Himalya 39. Raptokas
7. Alkem 15. Mankind
24. Macleods 32.Franco Indian 40. Jannsen
16. Torrent
Therapeutic
Market Grid

The
STARS Therapeutic Market Grid
55 ?
50

45
Musculo/ Derm/Diab/Gynae/Ophth/Oto/AntiPara/Hormn
40
Are in Q Mark
35
Anti Infective/GI disorders in Cash Cow
GROWTH

30
14
6
25

20 9 13

8 10 12
15
1 2 3 4
CASH COWS

5 11
10 7
15
5

DOGS
0

100%  75%
  50%  25%
  10 %  0

RELATIVE MARKET SHARE

1. Anti Infectives / Infest 6. Musculo Skeltal 11. Blood Related
2. GI disorders 7. Vitamins 12. Ophtahl/Otology
3. CardioVascular 8. Dermatology 13. Anti Parasites
4. Respiratory 9. Diabetology 14. Hormones
5. Nervous 10. Gynaecology 15 Digestive enzymes
 ‘

History : ▪ A 17 year old company

▪ Went public in 2003

Identity/Scope : • Integrated company operating in Research,

Manufacturing and Marketing of Pharmaceuticals
• Business interests span formulations and bulk actives

Global Footprint : ▪ Headquartered in Mumbai, India

▪ Operate in over 100 countries across the Globe
▪ About 60% of FY 2005 revenues from outside India

Financial Perf. : • Results FY 2005

– Consolidated Revenues of $ 150 m (Rs 670 cr)
 ‘

To help people LIVE their Life Healthy

 ‘

• To become the most admired pharmaceutical

company in India with leadership in Cardiology,
Diabetology, Neurology.
• Develop NCEs & Out Source to MNCs for clinical
development
• To have our own patented products globally in the
next 4 years
• To establish profitable product mix in the Gynae,
Oncology, Dermatology, Pain Segment
 ‘

• Customer Focus
• Accountability
• Respect
• System adherence CARSIT
• Innovation
• Teamwork
 ‘

Domestic
• To achieve 1500 cr in the next 5 years from
the
current Rs 670 crs with a Market Share of 3%
&
• To achieve Leadership ( No. 1 ) in Cardiology by
reach 10th Rank in IPM
2010
introducing Products in area of Critical Cardiac
Care
International Operation :
• To expand Market Presence to 130 countries in
European & African continent

Research :
To Successfully complete Phase 1 trial of Anti Inflammatory
drug LVN1002
 ‘

To achieve 850 cr during 2008-09 with a

growth of 26% & ensure Rank of 15th in IPM

To expand market presence in African &

European continents ( 24 countries )
 SWOT
STRENGTHS WEAKNESS
• Large market with a Better • A fragmented market
Growth rate • Low opportunity for
• Well defined customer differentiation
segment • The dominant media,
• Organised industry ‘Personal’ having bias
• Organised Health affects the advertising
Infrastructure with delivery
- District hospital - PHC - • Low per
Current - Rs.900
capita
vs China –
Rs 10080
Public / Private consumptionBrazil –of drugsUS – Rs 2.19
Rs25787
L
- Corporate Hospitals Japan - 1.22 lacs
OPPORTUNITY
- Nursing homes - Private
• A host of unmet demands allowing launch
Clinics THREATS
of new therapy
• Development of newer geographical markets • Growing Retail Resistance
( Rural gaining attention early) • Growing MNC force
• Life expectancy is improving: Old age • Lesser opportunity to
population is growing. offer new advances
• Preventive Cardiology is being focused • Attractive Opportunities
• Healthcare spend expected to go up from
at BPO.
5.2 % to 8-10% by 2015
•
• Aventis may bring in
Zydus & Sun are not present in Critical Care
area newer molecule in Diab.
• Torrent Field strength is shrinking in Neuro
segment
 Assumptions /Anticipation

• Pharma Market will continue grow only at 14 %

• Awareness about Life Style disease may be on the rise

• Glaxo may come out with newer Diabetic Molecule at a

economical cost

• MNC may turn up to African countries with their original

research molecules
 Strategic Outline
Domestic Formulations
 Establish leadership in the domestic
pharmaceutical mkt. ( Card)
 Dominate key specialty segments
 Build strength in chronic/lifestyle
diseases
 Bring in newer molecules in
Diab/Card/Neuro
Active Pharmaceutical Ingredients
 API integration to create/capture value
throughout product chain
 Partner with global generic companies
for supply opportunities
Research and Development
 Invest in R&D for sustained growth post-
GATT
 Develop NCEs for alliances with MNCs
for clinical development
International Formulations
 Global distribution network for marketing
generics and patented technologies
 Exploit regulated market opportunity
through the India cost advantage
 Promote branded generics in African &
European Markets
 Overall Growth Strategy
Existing New

Cardiology Gynae
Diabetology Onco
Therapy Ortho
NeuroLogy
Derm

India
Srilanka Other African Countries
Kenya European countries
Market Yemen
Latin America
 ‘

Divisions

Structure

Strategic Direction
Segmentation
Promotion
Systems
New Product
People
 ‘

Divisions

Card Diab Neuro Gynae/Derm Ortho/Onco

Division Division Division Division Division
 V.P. - Marketing
Structure

GM- Card Div. G.M. Diab Division

Sales Mgr. Mktg. Mgr. Mgr. Med.

Support Mktg. Mgr. Mgr. Med.
ZBM (6)
Support

ZBM (3)
PM PM PM PM RBM (32)

RBM (15) PM PM PM PM
PSR (225)

ABM (40)

PSR (225)

MIS / ADMIN - Common

 V.P. - Marketing
Structure

GM- Gynae/Derm Division G.M. Onco/Ortho Division

GPMr. Mgr. Med.

ZBM (6) GPM Mgr. Med.
Support ZBM (6)
Support

RBM (25)
EM (100)
PM PM
PSR (180) PM PM

MIS / ADMIN - Common

 STRATEGIC DIRECTIONS

Customer Segment :
( Mention Splty as per the division)
SEGMENTATION :

Market Segment :
( Define your market place like Metro & S metro only)

Therapeutic Segment :
( Define your Therapy area for eg., In Card–
Hypertension/Heart Failure)

Doctors Classification -
( Define who is a A class/ B class/C class doctors
 STRATEGIC DIRECTIONS
To position the company as the Learning
Organization

Aim at Market Expansion with positioning focus

PROMOTION :

Focus on Customer Relationship Management

Pursue a highly focussed brand building

strategy

Increase width – Increase Depth of each brand

Emphasize ‘Chemist Relationship’ and

‘Availability’
-
 STRATEGIC DIRECTIONS
Strategy Cycle
SYSTEMS & POLICIES :

Review Cycle : MR/ Mgr/ ZSM/ SM

Business Planning Methods

Reporting System

Doctor List – Inclusion Method

Coverage Plan

Appraisal System

Promotion Policy

Distribution Policy
 STRATEGIC DIRECTIONS

Selection Criteria : MR/ Mgr/ ZSM/ SM/ PMT

Education Criteria/ Experience Criteria

PEOPLE :

Induction Procedure ( MR)

Training Methods & Period

Development programmes & frequency

 STRATEGIC DIRECTIONS

Preferably in Star/Q.mark category

:

Offering first mover advantage in terms of

NEW PRODUCT

New Molecule showing appreciable benef

over existing o
New combination
New dosage, new dosage form
New drug delivery

To be synergistic with existing therapeutic

areas as New advances
Guiding Principles in Marketing

Focus on Improving Market Share in the Bigger Category

Therapy Focused Marketing division

High emphasis on Technical Competence

Effective Marketing Plan & Brand Positioning

………………………..
 When in Doubt
Go back to the Basics