ISBN NO.- 978-93-81212-11-0
ABSTRACT:
The pharmaceutical industry is the world’s largest industry due to worldwide revenues of approximately US$2.8 trillion. Ayurvedic Pharma companies have some little contribution to that but it is very important, & growing very faster too. Now a days, & in recent future Herbal/Ayurvedic companies will take a very big part in the pharma industry. India played a major role in that area. Many countries from Asia, like Chaina, Japan etc. are also leading contributors. USA, Europe are playes roles mostly as consumers. However the marketing of those products are also important. Because marketing is the key for any pharma company for growing & achieving the desired success. So for that different companies adopt different strategies & implement them on practical field.
1.Introduction:
Indian Pharmaceutical Industry is poised for high consistent growth over the next few years, driven by a multitude of factors. Top Indian Companies like Ranbaxy, DRL CIPLA, Himalaya and Dabur have already established their presence.
The Indian pharmaceutical industry came into existence in 1901, when Bengal Chemical & Pharmaceutical Company started its maiden operation in Calcutta.
2. Transforming Ayurveda1
The Indian Ayurvedic industry is re-packaging the Traditional healing principles into a modern avatar. Before the evolution of Indian Ayurveda into an industry, the practice of Ayurveda was confined to physicians and was considered more of a service than a profession
3. Pharma Marketing Process and its Challenges2
Many pharmaceutical companies have successfully deployed plethora of strategies. Use of medical representatives for marketing products to physicians and to exert some influence over others in the hierarchy of decision makers has been a time-tested tradition. Typically, sales force expense comprises an estimated 15-20% of annual product revenues, the largest line item on the balance sheet.
Most Prominent Performance Related Issues:
a) Increased competition and shortened window of opportunity.
b) The number and the quality of medical representatives
c) Very high territory development costs.
d) High training and re-training costs of sales personnel.
e) Busy doctors giving less time for sales calls.
f) Poor territory knowledge in terms of business value at medical representative.
4. Pharmaceutical Company Business Strategies3
What’s the secret behind these successes? For one, the company operates in niche formulations (chronic) segments such as psychiatry, cardiovascular, gastroentology and neurology. While most of the top Indian companies have focused on antibiotics and anti– infective (acute), Sun Pharma focused on therapeutic areas such as depression, hypertension and cancer. Two models are described for the business strategies of pharmaceutical companies.
4.1 Marketing approaches of Super Core Model
In pharmaceutical market there has been a significant shift from Acute towards Chronic Therapy area. Chronic segments are driving the growth of the market. This is evident from high growth rates achieved by firms like Sun Pharma, Dr.Reddy laboratories and Dabur Pharma Ltd.
Pharmaceutical companies are competing with one another, and might adopt a new sales strategy. For example, sometimes in the same geographical area there are five representatives for just one company, or different representatives for the same drug in different settings. As a result the aggressiveness of representatives has also been increasing. Therefore, they tend to have more frequent visits to encourage doctors to prescribe drugs and thus increase sales.
4.2 Marketing approaches of Core Model
In present scenario companies are focusing more and more on the availability of products so as to enjoy good image in their cutomer’s (doctors) chamber. Many companies such as Glaxo, Pfizer, Dabur, FDC, Aventies, Cipla etc. are known for their availability of products.
It has been observed that sometimes there are more than fifteen or sixteen representatives in a day are meeting with their customer and requesting for same type of products.
5. Global Market4
Total global herbal market is of size 62.0 billion dollars, in this India’s contribution is only one billion dollars. European union is the biggest market with the share 45% of total herbal market. North America accounts for 11%, Japan 16%, Asian countries 19% and rest of European Union 4.1%. Countries like Japan and China have successfully marketed their traditional medicines abroad.
When compared to the Chinese and the Japanese level of penetration in the global market India is not at all figuring anywhere. India has 16 Agro-climatic zones, 10 vegetative zones, 15 biotic provinces, 426 biomes, 45000 different plant species and 15000 medicinal plants that include 7000 ayurveda, 700 in Unani medicine, 600 in Siddha medicine and 30 in modern medicine. This makes India one among 12 mega biodiverse countries of the world, which despite having only 2.5 % total land area, accounting for over 8 % of the recorded species of the world. The forecast is that the global market for herbal products is expected to be $5 Trillion by 2050.
6. Regulatory Status of Herbal Medicine Worldwide5
The World Health Organization (WHO) estimates that 4 billion people—80 percent of the world population--use herbal medicine for some aspect of primary health care. Herbal medicine is a major component in all indigenous peoples' traditional medicine and is a common element in
Ayurvedic, Homeopathic, Naturopathic, traditional oriental and Native American Indian medicine.
6.1 Europe
Drug approval considerations for phytomedicines (medicines from plants) in Europe are the same as those for new drugs in the United States, where drugs are documented for safety, effectiveness, and quality.
6.1.1 France
where traditional medicines can be sold with labeling based on traditional use, requires licensing by the French Licensing Committee and approval by the French Pharmacopoeia Committee. These products are distinguished from approved pharmaceutical drugs by labels stating "Traditionally used for . . .".
6.1.2 Germany
In Germany there is a further distinction between "prescription-only drugs" and "normal prescription drugs." The formers are available only by prescription.
6.1.3 England
England generally follows the rule of prior use, which says that hundreds of years of use with apparent positive effects and no evidence of detrimental side effects are enough evidence that the product is safe.
6.2 Asia:
In more developed Asian countries such as Japan, China, and India, "patent" herbal remedies are composed of dried and powdered of herbs or herb extracts in liquid or tablet form. Liquid extracts are used directly in the form of medicinal syrups, tinctures, cordials, and wines.
6.2.1 China: In China, traditional herbal remedies are still the backbone of medicine. Use varies with region, but most herbs are available throughout China. Until 1984 there was virtually no regulation of pharmaceuticals or herbal preparations. In 1984, the People's Republic implemented the Drug Administration Law.
6.2.2 Japan:
Traditional Japanese medicine, called ‘Kampo’, is similar to and historically derived from Chinese medicine but includes traditional medicines from Japanese Folklore. Today 42.7 percent of Japan's Western-trained medical practitioners prescribe Kampo medicines, and Japanese national health insurance pays for these medicines.
7. THE AYURVEDIC MEDICINE INDUSTRY IN INDIA6
Ayurvedic medicines are produced by several thousand companies in India. The industry has been dominated by less than a dozen major companies for decades.The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market.
Dabur India Ltd. is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine.
Sri Baidyanath Ayurvedic Bhawan Ltd. was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector. Baidyanath has a sales volume of about 350 million dollars. The company reports having over 700 Ayurvedic products.
Zandu Pharmaceutical Works was incorporated in Bombay in 1919. The company focuses primarily on Ayurvedic products. Today its total sales volume is about 45 million dollars. One of its current projects is to develop a dopamine drug from a plant extract.
The Himalaya Drug Company was established in 1934 in Bangalore. It currently has a business of about 500 million dollars. It is known in the U.S. for the product Liv-52, marketed as a liver protector.
Charak Pharmaceuticals was founded in 1947, and currently has three distribution centers in India. It has gained a large advantage with its new product Evanova.
Vicco Laboratories was established in 1958. It is best known internationally for its toothpaste product, Vajradanti, which has been marketed in the U.S. for more than 25 years.
The Emami Group founded in 1974, provides a diverse range of products, doing 110 million dollars of business annually. The parts, himani & Zandu prepare Ayurvedic preparations.
Aimil Pharmaceuticals Ltd. incorporated in 1984 and engaged in manufacturing and sale of both generic and proprietary Ayurvedic medicines, with a business level of about 20 million dollars annually. It was honored by the Indian Government's National Award for Quality Herbal Preparations and National Award for R & D in the year 2002.
8. STATUS OF AYURVEDA IN INDIA7
The statistics on the Ayurvedic system in India and these data about the manpower and institutional aspects of Ayurveda have emerged:
• Number of registered medical practitioners: 366,812
• Number of dispensaries: 22,100
• Number of hospitals: 2,189
• Number of hospital beds: 33,145
• Number of teaching institutions (undergraduate): 187
• Number of upgraded postgraduate departments: 51
• Number of specialties in postgraduate medical training: 16
• Number of pharmacies manufacturing Ayurvedic medicines: 8,400
9.CONCLUTION
There has been a shift in universal trend from synthetic to herbal medicine recently. It is ancient wisdom that plants have therapeutic value and are used to treat various diseases since Neanderthal age. All ancient civilizations in the world are known to use plants for medicinal purposes. Ayurveda and traditional Chinese medicines are well known to the world for their natural ingredients and multiple benefits. Nature has bestowed our country with an enormous wealth of medicinal plants; therefore India has often been referred to as the Medicinal Garden of the world.
Today, people around the globe are giving preference to alternative medicines such as Ayurveda, Naturopathy, Homeopathy and Herbal Medicine. Increasing realization of the side effects of Allopathic medicines, coupled with the growing awareness about the medicinal benefits as well as therapeutic effect of herbal products is pushing up the demand for herbal extracts, dietary supplements and herbal-based beauty aids worldwide.
10.REFERENCE
1. www.expresspharmaonline.com/20080831/market01.shtml
2.searchengineland.com/getting-to-the-heart-of-things-big-pharma-marketing-challenges-12002
3. www.glgroup.com/News/Pharmaceutical-business-strategy-27029.html
4. http://www.hindu.com/2010/03/24/stories/2010032454380500.htm
5. www.who.int/medicinedocs/pdf/whozip57e/whozip57e
6. www.itmonline.org/arts/ayurind.htm
7. www.ccimindia.org/colleges_status_ayurveda_2010-11.php
