11 - Chapter 5 - Merged

“A Study of Promotional Mix Strategies of
Selected Generic Medicine Manufacturing

Companies in Madhya Pradesh”
A Thesis
Submitted for the Degree of
Doctor of Philosophy
in
MANAGEMENT
Submitted by
Manvi Aayush Sood
Under the co-supervision of
Dr. Harsh Purohit Dr. Nishant Joshi
Dean, Associate Professor
Faculty of Management Studies, Prestige Institute of Management
Banasthali Vidyapith and Research, Indore
FACULTY OF MANAGEMENT
BANASTHALI VIDYAPITH
Rajasthan, India
2020
Dedicated to my Parents
A Study of Promotional Mix Strategies of Selected
Generic Medicine Manufacturing Companies in
Madhya Pradesh
 CONCLUSION
The researcher found that in the Covid-19 Pandemic, there is a need to modify the strategies,
especially in the generic medicine companies. As day by day, the cases are increasing, so
they have to prepare the changes and continuously strive to meet the public's demands. These
have to strengthen the eight pillars of promotional mix marketing strategies such as appealing
social events, educational programs, offers, ethical selling, innovative services, personal
relationship, short term incentives, etc. The findings disclosed that sales growth is correlated
with these pillars mentioned above to make competent the generic medicine companies. The
new development is required along with the rising cases, and the main thing is to supply
rapidly across India. India is concerned with the Health care system, and this system depends
upon the health workers and the generic medicine companies. The study also noted that
during the implementation of the marketing strategies the generic medicine companies
endure, many challenges include unacceptance for change, financial performance, regulations
levied by the government, technological changes, legal requirements, and competition.
 SUGGESTIONS
From the results, the following recommendation has been surfaced:
1. More focus will be required on research & development in preparing the vaccine as in
India, the research process is prolonged.
2. More funds would be allocated by the Government to Research & Development so

that research may be carried out in catering the challenges occurred by the pandemic.
There is a need to strengthen the positioning of the products.
3. In the existing situation, the Indian government needs to take essential measures to
eliminate the technical and economic obstacles that will inspire the pharmaceutical
companies to ramp up manufacturing and minimize the dependency of the pharma
companies on the Chinese market.
4. By spreading the sales force through a digital platform and online communication, a
well-executed multichannel method can achieve objectives and speed up outcomes.
5. A multichannel commercial approach can attain a broader target audience to supply

core branded generics messaging leveraging newly adopted channels (like digital
access). This approach's fundamental aim is instilling faith and attention amongst
health care providers and buyers for the pharmaceutical parent industry. The sales
representative may then have a chance to concentrate on reinforcing this messaging in
strategically vital markets. The suppliers can also be extra possible to be receptive to
e-Detailing and e-Learning applications. It has been stated that the sales
representative ought to concentrate on the large town with the largest, most
technologically progressive populations.
6. Commonly, a potential to gain believe and trained practitioners about a product

company in rising markets will probably depend on personal interactions with a sales
representative. Although, a combined multichannel approach, particularly for branded
medicines, can boost the company brand and supply lower-cost options that align with
these decrease-priced markets.
7. Pharma companies can make their rising market presence by using sponsoring
domestic certification and training projects in association with domestic and
worldwide institutions. Giving knowledge about a company's products and the
diseases they tackle can increase consciousness and bring out new income
possibilities in markets that might also have much less comprehension of Western
medicine. One avenue includes the introduction of training regimens to certify
medical practitioners in using a company's product. The project will supply free
insulin and supplies and a complete training guide for healthcare expert and diabetes
educators.
8. Promotional schemes can help hold the relevance of branded generic choices in a
market and do upfront portfolio lifecycle planning and take measures to recognize
goal section demands can place industry in a robust industrial role with its branded
generic offerings.
9. Firms with a branded generics portfolio tend to have a varied concentration on

therapies. By conducting careful market research, this can foster the probability for
them to increase their depth in a precise remedy and expand a desirable understanding
of a market's medical needs, which can help them acquire focus amongst physicians.
10. Becoming involved domestically can positively boost up a large-scale pharmaceutical

player's status in the eyes of local healthcare providers, locating it as a dynamic and
progressive firm that provides high-quality products. However, firms need to weigh
the charges and profits related to setting up local R&D efficiency. Various
components can play into this situation, together with nationalistic protectionism,
which boosts domestic innovations by using blockading MNCs' entry and well-known
negative ideas of government officials brought about by way of their costing,
payment, and insurance decisions that concentrate on containing healthcare costs.
11. Advertising of prescription-based medicines treatment is indirect marketing, where

the decision-maker is a Doctor and MR, or managers are the influencers. Therefore,
growing and retaining healthy connections with Doctors is essential. Due to cut-throat
opposition in this field, illegal advertise have expanded a lot. To keep away from this,
easy moral things to do can be carried out like imparting excellent academic
references, arranging live seminars and workshops to sharpen the competencies of
Doctors, to enhance knowledge of Doctors using asking them to be a part of a medical
library owned via pharma firms, welcoming Doctors on every fortnightly or weekly to
attend case study sessions, online seminars, webinars or teleconferencing to exchange
the practical experiences of outstanding Doctors globally. These drives will be
genuinely beneficial to pharma industries for equitable brand betterment.
12. Modern advertising techniques like social networking sites, online websites, emails,
cell phone net-working, and so on must be used for brand advertising to save
expenses and enhance advertising and marketing effectiveness. Care ought to be taken
to keep away from doctors who don't like these innovative tools. Although detailing
on laptops, I-pads and Tablets will create attentiveness of Doctors and decrease the
weights of MR's and Managers; consequently, they ought to be the first choice of
most.
13. As suggested by various Doctors, physician's samples have to be stopped for well-
established medicines and vacations. Samples need to be supplied solely for new
drugs or drug treatments and that too in ample dosage quantity. 'Customized
sampling' as per the Doctors' necessities can begin for the private use or prerequisite
of Doctors. This will keep extensive wastage of sampling overheads, and the same
can be utilized to decrease the expenses of drugs as predicted by way of all the
stakeholders.
14. To make an excellent social image, the pharmaceutical industry should take social
welfare drives by arranging free medical camps at orphanages. They can even
together begin a charitable hospital facility for the social service to the poor, needy,
economically backward patients.
15. After implementing product patent in India, pharma companies should concentrate on
establishing their R&D unit for the innovation of progressive drug molecules. There
are plenty of possibilities in this for treating diseases like cancer, HIV, heart diseases,
swine flu, tuberculosis, dengue, Ebola, arthritis, diabetes and so on.
 RECOMMENDATIONS
1. Doctors don't like to meet many MR visits, so MR visits should be limited to a

maximum one to the majority of Doctors and one or two trips for important Doctors.
2. Launch of new medicines and vaccines are restricted maximum to four to six per year,
invention of different drugs and vaccines can't be given proper promotion by MR's
and also not supported by Doctors, because of which efforts taking in the launch of
new products & its expenses outcomes are like wastage of resources. Additionally,
the latest products inventory available at chemists shop and stockiest shelves may also
get expired or in future stay as non-moving which can be added to above overheads.
Overall, it proved as a loss-making project in place of business opportunity. The
researcher would also like to recommend that pharmaceutical firms concentrate on
initiating their own hospitals or begin making strategic alliances with current reputed
big hospitals in leading cities. This will make secure them guaranteed business as well
as it can save large promotional overheads also.
3. For selling and advertising of specialist healthcare packages, various pharma firms'
leaders will also have to promote comprehensive approaches, a strategy that will need
main institutional and cultural substitutes, involving the development of new skills
and ways to market. One of the significant decisions pharma industries confronting
will be which type of business approach to be used.
4. As their centre point switches to professional drugs, various industries will have to
alternate their advertising and sales features pretty substantially. Rather than hiring
lots of sales representatives to knock on the door of familiar practitioners, they will
have to hire a small group of professionals who can bargain with big healthcare
payers and communicated to highly certified consultants on an equal footing (much as
medical device producers market their products to surgeons today).
 SUGGESTIONS TOWARDS IMPLEMENTATION, OBSTACLES AND WAYS

TO OVERCOME
1. High quality and low costing: Indian pharmaceutical companies have always
worked on supplying budgeted generic drugs to the rest of the world. The quality
with low costing is essential, and thus for more sale and usage of generic
medicines, the industry certainly needs to maintain high-quality drugs. It is
necessary for the top manufacturers but also for the new local manufacturers so
that they can compete with the top branded manufacturing companies.
2. The production capacity of the units: Across the globe, India's pharma sector is
the only manufacturing sector with maximum United States Food and Drug
Administration approved manufacturing units out of the United States. This gives
an edge to the manufacturers of generic medicines to produce the vaccine for
COVID-19 and other vaccines for deadly diseases and supply to the rest of the
world.
3. Atamnirbhar Scheme: In the wake of pandemic COVID-19 the Indian
pharmaceutical industry's dependence on China was highlighted and thus under
the Atamnirbhar scheme of government encouraged local manufacturers to
produce surgical masks, personal protection (PPE) kits and sanitizers giving scope
to new entrepreneurs.
4. Bulk Drug Manufacturing: As per the fundamental research it is evidently clear
that India is the third-largest producer of generic drugs but still dependent on
China for bulk drugs used as raw materials for production of generic medicines.
Thus, to make a pharmaceutical company, self-sufficient NitiAayog has
sanctioned 3000 crores to make three bulk drug parks to manufacture 53 critical
bulk drugs. This will allow more manufacturers to evolve.
5. Research and Development: It is also evident that one of the obstacles that the
industry faces is lack of R&D. It has become necessary for the manufacturers and
government to encourage more funds so that this weakness can be converted in
the coming future into an opportunity. COVID-19 has highlighted the importance
of R&D in the sector.
“A Study of Promotional Mix Strategies of
Selected Generic Medicine Manufacturing
Companies in Madhya Pradesh”
A Thesis
Submitted for the Degree of
Doctor of Philosophy
in
MANAGEMENT
Submitted by
Manvi Aayush Sood
Under the co-supervision of
Dr. Harsh Purohit Dr. Nishant Joshi
Dean, Associate Professor
Faculty of Management Studies, Prestige Institute of Management
Banasthali Vidyapith and Research, Indore
FACULTY OF MANAGEMENT
BANASTHALI VIDYAPITH
Rajasthan, India
2020
Dedicated to my Parents
LETTER OF DECLARATION
by the Research Scholar
This is to certify that the thesis entitled “A Study of Promotional Mix
Strategies of Selected Generic Medicine Manufacturing Companies in Madhya
Pradesh”, submitted by me to Banasthali Vidyapith, for the award of the degree of
Doctor of Philosophy is a bonafide record of research work carried out by me under
the supervision of Dr. Harsh Purohit and Dr. Nishant Joshi. The contents of this
thesis, in full or in parts, have not been submitted to any other Institute or University
for the award of any degree or diploma. I declare that the work is original in nature.
Place: Banasthali Vidyapith

Date: 30/12/2020 Manvi Aayush Sood
I
Certificate by the Research Supervisor
30/12/2020
This is to certify that the research work titled, “A Study of Promotional Mix
Pradesh”, submitted to Banasthali Vidyapith, Rajasthan, in partial fulfilment of the
requirement for the award of the Degree of Doctor of Philosophy in Management is a
record of original research work done by Mrs Manvi Aayush Sood under our
supervision and guidance and the thesis has not formed the basis for the award of any
Degree/ Diploma/ Associateship/ Fellowship or similar title to any candidate of any
university.
This is also to certify that the thesis has passed the non-plagiarism test on the
Turnitin software licensed to Banasthali Vidyapith.
(Harsh Purohit)
(Nishant Joshi)
II
ACKNOWLEDGMENT
“Debts can be certainly repaid, but cooperation extended, and the guidance can never
be repaid.” This formal piece of acknowledgement may not be sufficient to express
the feeling of gratitude & affection for those who were associated with this research
and without whose cooperation & guidance this research could not have been
conducted properly.
Above all, the researcher is indeed indebted to Bhagwan Krishn who imparted health
and emotional strength to undertake the doctoral program and finally complete the
thesis. The researcher obligates herself to acquire, refine, and transfer more
knowledge to the Almighty’s creatures in return for what he has gifted her.
Sincere thanks to Prof. Aditya Shastri, the Hon’ble Vice Chancellor, Banasthali
Vidyapith for his kind acceptance of the application and permitting me to enroll into
the doctoral program. The researcher also expresses her gratitude towards the Pro-
Vice Chancellor of Banasthali Vidyapith, Prof. Ina Shastri.
The researcher would like to thank Will Care Life Sciences, Indore, for their support
and sponsoring the research. The support and encouragement served as a key
motivation factor throughout the research.
The researcher would like to express her thankfulness to Prof. (Dr.) Harsh Purohit,
Dean FMS- WISDOM, Banasthali Vidyapith and Dr. Nishant Joshi for his guidance
and support at every step of this research. Thank you so much sir for your constant
encouragement, support, patience and motivation throughout the research. You will
continue to be a great influence on me. My success is your blessing.
The researcher is grateful to Dr Vishesh Agarwal, for his comments on the research
which were of great help to the researcher to further refine the concept. The
researcher is also thankful to Dawa Bazar Association, Indore for his valuable
suggestions regarding the identification of key aspects of research. A special thanks
to Dr. Rachana Ghadge, Principal, Renaissance College of Commerce and
Management for her insight and motivation for this research.
III
The researcher expresses her gratitude to the Research Section, Banasthali
Vidyapith, for the generous support in all administrative works. The researcher did
not face any administrative hassle throughout her research.
The researcher also expresses her gratefulness to the Faculty Members of the
department who have always provided their valuable comments and feedback which
have been of immense help to improve the quality of this research. The long
discussions on various aspects of this research with the faculty members of the
department have always been of great help. A special thanks to the Staff Members of
the Library who have always been of great help to provide books and journals for the
research. The researcher also extends her gratitude to the Clerical Staff of the
department who always extended their support during her presence in the department.
The researcher would like to express a special thanks to all her friends who have
always extended their help and support for this research. The long discussions with
them have always helped to polish and refine the work.
The researcher would like to extend her sincere thanks to her husband Mr. Aayush
Sood who always inspired her to fight for her dreams. The researcher also expresses
her gratitude to her in-laws Mrs Babita Sood and Mr. Ravi Sood who have always
encouraged the researcher to pursue her research work.
Last, but not the least, the researcher would like to extend a special thanks to her
parents, Mrs. Kavita Sharma and Mr. Sunil Kumar Sharma and her siblings Miss
Jigyasa Sharma and Mr. Pranayak Sharma for their moral and emotional support
at various steps of this thesis. They have been a source of unconditional love always.
A word of ‘thanks’ would be too small for their efforts.
IV
Executive Summary
Indian pharmaceutical industry is a highly organized sector. India ranks 3rd in

production volume (10% of the global share) and is the fourteenth largest market by
value (1.5% of global share). The Indian pharmaceutical industry is highly
fragmented due to the presence of a large number of players. The domestic
pharmaceutical market is in a strong position to fulfil the country's primary
requirement of the bulk drugs and almost all the formulations' demands. The industry
has seen tremendous progress in infrastructure development, technology base and the
wide range of products manufactured. Players in the pharmaceutical industry include
branded drug manufacturers, generic drug manufacturers, the firm developing
biopharmaceutical products, non- prescription drug manufacturers and firms
undertaking contract research. This study attempts to identify the challenging areas of
innovative marketing management practices with particular emphasis on promotional
mix strategy being followed by selected generic medicine manufacturing companies.
This study is descriptive. The essential aspect is to identify the strategy of
promotional tools. After applying the factor analysis, some factors were identified,
which contributed to the promotional mix strategies. Few techniques are conduction
of conferences/symposiums, educational programs, direct advertisements,
promotional events, offering high bonus, lower price, technology savvy & short-term
incentives based on the analysis of questionnaires for medical representatives. Casual
studies exploratorily follow the research design in special reference to major cities of
Madhya Pradesh. Will Care Life Sciences, Indore have sponsored the research.
The findings disclosed that sales growth is correlated with these pillars above to make
competent generic medicine companies. New development is required along with the
rising cases, and the main thing is to supply rapidly across India. India is concerned
with the Health care system, and this system depends upon the health workers and the
generic medicine companies. The study also noted that the generic medicine
companies undergo many challenges during implementation of the marketing
strategies, which include resistance to change, financial requirements, regulations
imposed by the Government, technological changes, legal requirements, and
competition. The research work is divided into seven chapters:
V
Chapter 1 consists of introducing the topic, conceptual framework, export and
import, factors affecting the pharmaceutical industry, rationale of the study
etc. Chapter 2 explains the promotional mix strategies in selected generic medicine
manufacturing companies. Chapter 3 discusses the literature review and deals with
the evaluative report of selected past research in the area of study and gives a
theoretical base for the study and helps determine the current research's
nature. Chapter 4 deals with the research methodology, aims and objectives,
hypotheses formulation etc. In this chapter, various factors have been studied, which
have been associated with the study's dependent and independent variables. This
chapter also discusses the methodology, including sample size, the universe, sampling
techniques and tools used to obtain results from the data. The researcher collected
secondary data from published & unpublished documents of libraries. After that, the
required data were analyzed, and the inferences/interpretations have been made. All
relevant data/opinions sought from these sources are also embodied in this report.
Hence, the research design is exploratory and descriptive. After a brief description of
the study, design, and sample, the data collection and analysis tools have been
presented. Chapter 5 covers the data analysis and interpretation. Based on the
objectives, the hypotheses have been formulated. The data analysis was carried out by
using factor analysis, correlation & regression, to measure the percentage of variance
among variables. All the tables and figures which have been generated with the help
of SPSS 20.0 are presented in a systematic manner with explanations. Chapter
6 contains the findings and discussions. The results were examined in support of each
assumed hypothesis, and also supported by the other researchers findings. It also
discusses the importance of the result and connects with existing knowledge of the
subject. Chapter 7 discusses the conclusions concerning the tested objectives of the
study. The researcher has discussed that in establishing the marketing strategies, the
manufacturing industry deals with the hard-core selling. The industry should deploy
salesforce or medical representatives in different locations to improve the promotion's
aggression. The researcher found various factors that lead to promotional fix
strategies to its applicability in the generic medicine manufacturing industry: direct
advertisement, educational programs, lower price, technology savvy, offering a high
bonus, promotional events, and short-term incentives. These all factors contribute to
VI
the sales growth. It is suggested to develop a normative framework for proper
implementation of the promotional mix strategies in Indian generic medicine
manufacturing companies is well prepared for this move. There's a comprehensive
level of fluctuation regarding the development of their virtual health care supplier
commitment abilities. The study provides the base for future research. It also contains
the suggestions and recommendations that throw light on the critical issues and follow
the limitations and directions for future research. Bibliography lists the studies
referred in this doctoral thesis.
Will Care Life Sciences, Indore have sponsored the research.
VII
TABLE OF CONTENT
Chapte Page
Heading
r No. Number
Letter of Declaration by the Research Scholar I
Certificate by Research Supervisor II
Acknowledgments III- IV
Executive Summary V- VII
List of Research Publications and Paper Presentations VIII
Table of Content IX- XII
List of Figures XIII
List of Histograms XIV
List of Tables XV- XX
List of Models XXI
1 INTRODUCTION 1
1.1 A Brief Review of Generic Drugs 3

Branded and Generic Drugs, Similarities and
1.1.2 4
Differences
1.1.3 Growth of Generic Drugs Manufacturing Units. 5
1.1.4 Exports and Imports of Pharmaceuticals 9

Top Drug Manufacturing Units of Indian
1.2 11
Pharmaceutical Industry
Madhya Pradesh a Growing Hub for Drug
1.3 15
Manufacturing Units
CONCEPTUAL FRAMEWORK OF
2 19
PROMOTIONAL MIX STRATEGIES
2.1 Marketing Strategies 19
2.2 Marketing Mix 20
2.3 Promotion Mix Strategies 23
IX
2.3.1 Advertising 24
2.3.2 Sales Promotion 26
2.3.3 Personal Selling 29
2.3.4 Public Relation (PR) 30
2.3.5 Direct Selling 31
2.4 Promotional Mix Push and Pull strategies 33
2.5 Developing on Optimal Promotional Mix 34
3 REVIEW OF LITERATURE 36
3.1 Pharmaceutical Industry 36
3.1.1 Brief History of Pharmaceutical Industry 37

Challenges Witnessed by Pharmaceutical Industry Over
3.1.2 43
the Years.
3.1.3 Generic Medicines 46
3.1.4 Importance of Generic Drugs. 48
3.1.5 Government Support to Generic Drugs 49
3.2 Marketing in Pharmaceutical Sector 51
3.3 Market Segmentation 54
3.4 Promotional Mix 56
3.4.1 Promotional Mix Tools 59

Perception of Healthcare Personals and Marketing
3.5 Anchorages towards Pharmaceutical Promotional Mix 65
Strategies
3.5.1 Health Care Personals 65
3.5.2 Medical Representatives 68
3.5.3 Chemists, Retailers and Wholesalers 71
X
Research Observation
3.6 73
3.6.1 Research Gap 75
4 RESEARCH METHODOLOGY 77
4.1 Overview of Methodology & Research Process 77
4.2 Objectives of the Study 77
4.3 Hypotheses of the Study 78
4.4 Research Design 83
4.5 Sample Size 86
4.5.1 Categories of Sample 86
4.6 Sampling Method 89
4.7 Research Type 89
4.8 Research Tools & Techniques 89
4.9 Validity & Reliability 90
4.10 Statistical Analysis of Data 90
5 ANALYSIS & INTERPRETATIONS 92
5.1 Data Analysis regarding Medical Representatives (MR) 92
5.2 Data Analysis regarding Wholesalers 138
6 FINDINGS & DISCUSSIONS 177
6.1 Finding regarding Medicine Representatives 177
6.2 Findings regarding Wholesalers 181
7 CONCLUSION & SUGGESTIONS 189
7.1 Conclusion 189
XI
7.1.1 Objective wise conclusions 189
7.2 Suggestions 196
7.3 Recommendations 199

Suggestions towards Implementation, Obstacles and
7.4 200
Ways to Overcome
BIBLIOGRAPHY 202
QUESTIONNAIRE 213
XII
List of Research Publications and Paper Presentations
Publications:
1) A forecasted outlook of Indian Pharmaceutical Industry till 2030, International

Journal of Advanced Science and Technology Vol. 29, No. 11s, (2020), pp.
2998-3007
2) A Study on the Perception of Medical Representatives Towards Promotional
Tools of Selected Generic Medicine Manufacturing Companies in Madhya
Pradesh, Solid State Technology, Volume: 63 Issue: 6, pp. 3846-3855
www.solidstatetechnology.us
VIII
LIST OF FIGURES
Figure
Page
Numbe Name of Figure
Number
r
Revenue Share Sub Segments of Indian Pharmaceuticals
1.1 3
(2019)
1.2 Value Chain of Drug Manufacturers 7
1.3 Manufacturing by Indian Pharmaceutical Players 8
1.4 Top Exporting Destinations in FY 19 figures in US$ Million 10

Market Share, Revenue, Growth Rates of Leading
1.5 12
Companies (per cent), FY 15
1.6 Presence of Pharmaceuticals in Madhya Pradesh 17
2.1 Marketing Strategy is a Cyclical Process. 20
2.2 Marketing Mix 21
2.3 Promotion Mix Strategies 24
2.4 Steps Involved in Determination of Promotional Mix Tool 34

Indian Pharmaceutical Market, Annual Turnover (US$
3.1 42
billion)
3.2 A Silhouette of Pharmaceutical Industry 43
India's Government Expenditure towards Healthcare (US$
3.3 50
billion)
3.4 Competition in the Prescription of Pharmaceutical Market 52
The Supply Chain through Which Drugs are Delivered to
3.5 53
Consumers
3.6 Clinic Promotional Mix Strategies 64
3.7 The Push & Pull Strategy 64

Interrelationship Model of Promotional Strategies & Sales
4.1 84
Growth (Medical Representatives)
Interrelationship Model of Promotional Strategies & Sales
4.2 85
Growth (Wholesalers)
4.3 Type of Company 87
4.4 Experience in this Field 88
4.5 Annual Turnover of Company 89
XIII
LIST OF HISTOGRAMS
Histogra Page
HISTOGRAM
m No. Number
Conduction of Conferences/Symposium Related to
5.1 118
Promotional Mix Strategies
Educational Programs Related to Promotional Mix
5.2 121
Strategies
Direct Advertisements Related to Promotional Mix
5.3 124
Strategies
5.4 Promotional Events Related to Promotional Mix Strategies 127
Offering High Bonus Related to Promotional Mix

5.5 130
Strategies
5.6 Technology Savvy related to Promotional Mix Strategies 134
Short Term Incentives Related to Promotional Mix

5.7 137
Strategies
Social Appealing Events Related to Promotional Mix
5.8 157
Strategies
Educational Programs Related to Promotional Mix
5.9 160
Strategies
5.10 Promotional Offers Related to Promotional Mix Strategies 163
5.11 Ground Activity Related to Promotional Mix Strategies 166
5.12 Ethical Selling Related to Promotional Mix Strategies 170
5.13 Innovative Services Related to Promotional Mix Strategies 173
5.14 Point of Purchase Related to Promotional Mix Strategies 176
▪ svolume refers to sales volume
XIV
LIST OF TABLES
Table Page
Name of Table
Number Number
Category Wise Export of Pharmaceutical Products From
1.1 9
India In US$ Million
Imports of Medicinal and Pharmaceuticals Products in
1.2 11
2012-16
1.3 Some of the Key Manufacturing Units 18
3.1 Traditional Tools 56
3.2 Innovative Tools 57
4.1 Type of Company 86
4.2 Experience in this Field 87
4.3 Annual Turnover of Company 88
5.1 Mean Ranks on Promotional Tools for Generic Medicine 92
5.2 Test Statistics on Promotional Tools for Generic Medicine 93
Mean Ranks on Capturing the Market Share for Generic

5.3 94
Medicine
Test Statistics on Capturing the Market Share for Generic
5.4 94
Medicine
5.5 Mean Ranks on Sales Volume for Generic Medicine 95
5.6 Test Statistics on Sales Volume for Generic Medicine 96
Descriptive on the Types of Generic Medicine Companies

5.7 97
(Small, Medium & Large)
ANOVA on the Types of Generic Medicine Companies
5.8 97
(Small, Medium and Large)
5.9 Descriptive on Profitability 98
5.10 ANOVA on Profitability 99
XV
5.11 Descriptive on Sales Volume 99
5.12 ANOVA on Sales Volume 100
5.13 Descriptive on Promotional Tools 101
5.14 ANOVA on Promotional Tools 101
5.15 Descriptive on Profitability with Regard to Experience 102
5.16 ANOVA on Profitability with Regard to Experience 102
Descriptive on Sales Volume of Generic Medicine

5.17 103
Companies with Regard to Experience
ANOVA on Sales Volume of Generic Medicine Companies
5.18 103
with Regard to Experience
Descriptive on Promotional Tools of Generic Medicine
5.19 104
Companies with Regard to Companies’ Annual Turnover
ANOVA on Promotional Tools of Generic Medicine
5.20 105
Descriptive on Market Share in the Industry in terms of
5.21 105
Profitability with Regard to Companies’ Annual Turnover
ANOVA on Market Share in the Industry in terms of
5.22 106
Profitability with Regard to Companies’ Annual Turnover
Descriptive on Sales Volume of Generic Medicine
5.23 107
ANOVA on Sales Volume of Generic Medicine Companies
5.24 107
with Regard to Companies’ Annual Turnover
5.25 Reliability Statistics 108
5.26 KMO and Bartlett’s Test 108
5.27 Communalities 109
5.28 Total Variance Explained 110
5.29 Rotated Component Matrix 110
5.30 Standardized Regression Estimates of the Promotional Mix 113
XVI
Strategies for Generic Medicine (Medical representatives)
Promotional Mix Strategies (Medical Representatives)

5.31 115
Model Fit
Model Summary Conduction of Conferences/Symposium
5.32 116
Related to Promotional Mix Strategies
ANOVA Conduction of Conferences/Symposium Related to
5.33 117
Coefficients Conduction of Conferences/Symposium
5.34 117
Related to Promotional Mix Strategies
Model Summary Educational Programs Related to
5.35 119
ANOVA Educational Programs Related to Promotional Mix
5.36 120
Strategies
Coefficients Educational Programs Related to Promotional
5.37 120
Mix Strategies
Model Summary Direct Advertisement Related to
5.38 122
ANOVA Direct Advertisement Related to Promotional Mix
5.39 122
Strategies
Coefficients Direct Advertisement Related to Promotional
5.40 123
Mix Strategies
Model Summary Promotional Events Related to
5.41 125
ANOVA Promotional Events Related to Promotional Mix
5.42 126
Strategies
Coefficients Promotional Events Related to Promotional
5.43 126
Mix Strategies
Model Summary Offering High Bonus Related to
5.44 128
ANOVA Offering High Bonus Related to Promotional Mix
5.45 128
Strategies
Coefficients Offering High Bonus Related to Promotional
5.46 129
Mix Strategies
XVII
Model Summary Lower Price Related to Promotional Mix
5.47 131
Strategies
Model Summary Technology Savvy Related to Promotional
5.48 132
Mix Strategies
ANOVA Technology Savvy Related to Promotional Mix
5.49 132
Strategies
Coefficients Technology Savvy Related to Promotional Mix
5.50 133
Strategies
Model Summary Short Term Incentives Related to
5.51 135
ANOVA Short Term Incentives Related to Promotional Mix
5.52 135
Strategies
Coefficients Short Term Incentives Related to Promotional
5.53 136
Mix Strategies
5.54 Mean Ranks on Promotional Tools for Generic Medicine 138
5.55 Test Statistics on Promotional Tools for Generic Medicine 139
Mean Ranks on Boosting Sales Volume for Generic

5.56 140
Medicine
Test Statistics on Boosting Sales Volume for Generic
5.57 141
Medicine
5.58 142
Companies with Regard to Experience in this Field
5.59 142
Companies with Regard to Experience in this Field
Descriptive on Boosting the Sales Volume of Generic
5.60 Medicine Companies with Regard to Experience in this 143
Field
ANOVA on Boosting the Sales Volume of Generic
5.61 Medicine Companies with Regard to Experience in this 144
Field
5.62 144
Companies with Regard to Profit
XVIII
5.63 145
Companies with Regard to Profit
Descriptive on Boosting the Sales Volume of Generic
5.64 146
Medicine Companies with Regard to Profit
ANOVA on Boosting the Sales Volume of Generic
5.65 146
Medicine Companies with Regard to Profit
5.66 Reliability Statistics 147
5.67 KMO and Bartlett’s Test 147
5.68 Communalities 148
5.69 Total Variance Explained 149
5.70 Rotated Component Matrix 150
Standardized Regression Estimates of the Promotional Mix

5.71 152
Strategies for Generic Medicine (Wholesalers)
5.72 Promotional Mix Strategies (Wholesalers) Model Fit 154
Model Summary Social Appealing Events Related to

5.73 155
ANOVA Social Appealing Events Related to Promotional
5.74 156
Mix Strategies
Coefficients Social Appealing Events Related to
5.75 156
Model Summary Educational Programs Related to
5.76 158
ANOVA Educational Programs Related to Promotional Mix
5.77 159
Strategies
Coefficients Educational Programs Related to Promotional
5.78 159
Mix Strategies
Model Summary Promotional Offers Related to
5.79 161
ANOVA Promotional Offers Related to Promotional Mix
5.80 162
Strategies
XIX
Coefficients Promotional Offers Related to Promotional
5.81 162
Mix Strategies
Model Summary Ground Activity Related to Promotional
5.82 164
Mix Strategies
ANOVA Ground Activity Related to Promotional Mix
5.83 165
Strategies
Coefficients Ground Activity Related to Promotional Mix
5.84 165
Strategies
Model Summary Personal Relationship Related to
5.85 167
Model Summary Ethical Selling Related to Promotional
5.86 168
Mix Strategies
ANOVA Ethical Selling Related to Promotional Mix
5.87 169
Strategies
Coefficients Promotional Offers Related to Promotional
5.88 169
Mix Strategies
Model Summary Innovative Services Related to
5.89 171
ANOVA Innovative Services Related to Promotional Mix
5.90 172
Strategies
Coefficients Innovative Services Related to Promotional
5.91 172
Mix Strategies
Model Summary Point of Purchase Related to Promotional
5.92 174
Mix Strategies
ANOVA Point of Purchase Related to Promotional Mix
5.93 175
Strategies
Coefficients Point of Purchase Related to Promotional Mix
5.94 175
Strategies
6.1 Comparison of Work with other Studies 185
7.1 Objective V/s Results 194
XX
LIST OF MODELS
Model Page
MODELS
No. Number
5.1 Promotional Mix Strategies for Medical Representatives 114
5.2 On Promotional Mix Strategies for Wholesalers 153
XXI
CHAPTER 1
1. INTRODUCTION
INDIAN PHARMACEUTICAL INDUSTRY- AN OVERVIEW
Over the years, the most unique featured industry grew globally, well known as the
pharmaceutical industry. It is said to be unique because of its ability to help society by
generating employment and providing medication and vaccines for millions to survive
from health uncertainties (Sood, 2019). The pharma industry has evolved as the most
innovative industry of the past, present and uncertain future for worlds development
and growth. The industry firmly portraits the socio-demographic-economic
environment that prevails in the country from which it belongs too, which can further
explain as:
• Socio means the behaviour of an individual's and its attitude with which
he/she takes up life. It is about an individual and the reflection of society as to
how it put up its socializing (Veselin Dickov, 2011).
• The economic environment defined to changes in revenues and structure of
expenditure it also establishes the trade cycle which pertains in the country.
• The demographic environment defines itself as the study of the population.
The population of any country illustrates the potentials of Pharma. Industry
and importance of pharmacy prevail to provide quality of life.
India is a country of the second maximum population across the globe with one of the
worlds rapidly growing economy makes it a thrust for the improvement of the
Pharmaceutical sector in India. Sharma N. K (2016) observed that Indian
pharmaceutical industry gradually evolved to be an illustrious contributor for
healthcare supplies catering around 95 per cent of the domestic need of country
covering a population of 1.1 billion (India Pharma Summit 2014-15 and 2014-15) or
about 1/7th of the world's population. The Indian pharmaceutical industry has shown
an ideal growth since 1970; the government designed the programs and policies that
govern the sector to result in the sector's cosmic evolution considering its
infrastructure, range of products produced, and technology. It has been recorded as
1
thirteenth largest considering its sales value and third largest in volume. The pharma
sector expected to show an incremental growth of compound annual growth rate
(CAGR) by 20 per cent in coming next five years. India has marked its position in the
top 20 pharmaceutical countries of exports with a significant growth rate of CAGR 19
per cent in the 11th plan period (India Pharma Summit 2014-15 and 2014-15).
In the 'U.N. Millennium Development Goals', health has been defined as an economic
development indicator because its direct effect and cause towards economy have been
recognized; thus, the pharmaceutical industry is a lead player in boosting the
economic development of the world. India, being the world's second-largest growing
population, gives rise to various social and economic challenges. The Pharmaceutical
sector holds a remarkable position in the amelioration of society. It contributes to
creating jobs and boosting export earnings and ensuring affordable health conditions
in a country, a distinctive feature (Akhtar, 2013).
India's demographic advantages make it a terrific and a striking marketplace because

of its large population; in fact, it may lie in the category of world's youngest
population. Even after this, the disadvantage is that the per capita ability for necessary
medication is relatively high, which is a challenge for India's economic condition.
India's epidemiological truth with the binary problem of non-contagious and

contagious diseases, fragile health system, and comparatively lesser public backing
for health give rise to a focal need to access medical support. However, the Indian
government dedicated to facilitating the access of essential medicines to the various
constituents of society. It is the joint efforts of both the sectors, i.e., public and
private, and government institutions to ensure affordable medicines at the point of
care (India Pharma Summit, 2014-15 and 2014-15).
India's pharmaceutical industry has marched tremendously and shifted from its
traditional business practices to new and modern emergent business approach
available around the globe. The new business models introduce various systems that
include contact research, i.e., discovering new drugs and trials of these new drugs
clinically, manufacturing on contract bases and co-marketing alliance. India's
2
pharmaceutical sector is highly fragmented; it has around 250 massive units and
20000 small sectors. These units meet 70 per cent of the demand for drug
intermediates, pharmaceutical formulations, orals and injectable, tablets, bulk drugs,
capsules and chemicals. Despite all this, the dominant share of the Indian domestic
market is held by ten firms which own 30 per cent of the market directly and a
combined share of about 70 per cent of the market through indirect market access
such as third-party manufacturing and selling.
1.1: A BRIEF REVIEW OF GENERIC DRUGS

As and with time, there are several patent goings off-patent due to their expirations.
Therefore, the generic drug industry knows significant development throughout recent
years. The reports estimated the global market of generic drugs till 2019 to be US$
367 billion, registered a growth rate calculated CAGR 5.7 per cent during 2014-19
(IMARC, 2020). Many blockbuster drugs referred to those that reported very high
drugs sales, usually an additional of US$ one billion, to expire in 2015-16 resulting in
the introduction of more generic drugs in India. IBEF (2020) evaluated that the
“generic drug yields 70 per cent of the total revenue, resulting in the largest Indian
Pharma market segment than other components, Over the Counter (OTC) with total
revenue of 21 per cent and patent drugs 9 per cent”. Around 20 per cent of global
generic medicine demand fulfilled by generic drugs supplied from India and expected
to expand in the near feature.
FIGURE 1.1:
REVENUE SHARE SUB SEGMENTS OF INDIAN

PHARMACEUTICALS (2019)
GENERIC OTC PATENT
3
1.1.2: BRANDED AND GENERIC DRUGS, SIMILARITIES AND
DIFFERENCES
According to the U.S. Food and Drug Administration (USFDA), “generic drugs are
copies of off-patent brand-name drugs that come in the same dosage, safety, strength,
and quality and for the same intended use”. “Generic medicines are the chemical
names as both over the counter and prescription forms. Also, referred to as unbranded
formulations”. The industry further categorizes the generic pills as “branded generic
drugs and non-branded generic drugs”. Branded generic drugs are “generic drugs for
which a pharmaceutical manufacturing company has attached its brand name and may
have invested in its marketing to differentiate it from other generic brands”.
Greene (2007) mentioned that the Pharmaceutical Industry's history had proved itself
as the world's top leaders from non-existence by producing high-quality generic
medicines. It has also gained worldwide recognition. GL Singhal (2011) noted that
generic drugs are an affordable alternative to expensive medications or say out of
pocket drugs. (Ajoy Bera, 2012) opined that the generic medicines are cheaper as no
R&D is involved in developing the drug; thus, the manufacturer sells the drug at
lower rate say between 20-80 per cent lower than the branded medication. Brand
name drugs or innovator drugs patented by MNC pharmaceutical companies to
prevent them from being copied or reverse engineered by other companies (Greene
2007). Brand name drugs are discovered and developed by the company's research
and development department after various initial pre-clinical and clinical trials.
Similarities between generic and brand name drugs are:

According to the FDA, to substitute a generic for a brand name drug:
• “It must contain the same active ingredients (the chemical substance that
makes the drug work)”.
• “It must have the same dosage strength (the number of active ingredients, for
example, 20 mg or 40 mg)”.
• “It must be the same dosage form (that is, it needs to be available in the same
form as the original—for example, as a liquid, pill, etc.)”.
4
• “It must have the same route of administration (the way the medication
introduced into the body)”.
• “It must deliver similar amounts of the drug to the bloodstream (that is, it
needs to deliver a comparable quantity of the drug into the bloodstream within
an equal period as the brand name drug)”.
Differences between generic and brand name drugs are:

• “They look different. They could have different sizes, shapes, colours or
markings, and they have different names”.
• “They might have different inactive ingredients, and drugs made up of both
active and inactive ingredients. Some people may be sensitive to inactive
ingredients. For example, some people have reactions to certain dyes used in
some drugs”.
• “The generic costs are less than the brand name drug. The cash price and
insurance co-pay are usually lower, generics can cost between 20 and 80 per
cent less, but keep in mind that cost is only one factor when considering the
right medication for your condition”.
• “Generics vary by manufacturer, which means you could receive different
versions based on where you purchase your medications and what type of
generic, they dispense, different pharmacies carry other generics. Even the
same pharmacy may change generic suppliers”.
1.1.3: GROWTH OF GENERIC DRUGS MANUFACTURING UNITS
Sarda Rohit R. (2012) has mentioned that Indian Pharmaceutical Industry almost
serves 95 per cent of the country's domestic need. It ranked as “world's third largest in
terms of volume and thirteenth largest in terms of value”. All kind of manufacturing
of drugs in India requires a license. According to Drug Control Authority (DCA) of
India “manufacturing can be defined as including any process or part of a process for
making, altering, ornamenting, finishing, packing, labelling, breaking up, or otherwise
treating or adopting any drug with a view to its sale or distribution”. “A license is
required for every location at which the drugs are mass-produced, a permit is also
required to be renewed time to time to avoid any legal failures, the production of
5
drugs can also be manufactured in the premises acknowledged by the third party, this
practice is known as "loan licensing"”.
The pharmaceutical industry over the years especial in the era of process patenting
has helped the industry to grow as a world-class generic industry. Though the changes
in the Patent Act from process to product patent acted as a catalyst in the
encouragement to India manufactures to discover new drugs over the years. Indian
market witnessed a smaller number of patented medicines. The industry depends
mainly on generic drug's which produced in India in the form of active
pharmaceutical ingredient (API) is the primary, “active ingredient(s) of a final
pharmaceutical product, produced in the first stage of pharmaceutical production and
usually in bulk quantities, and bulk drugs the active chemical substances in powder
form, the main ingredient in pharmaceuticals chemicals having therapeutic value,
used for the production of pharmaceutical formulations”. Foremost bulk drugs
incorporate steroids, vitamins, sulpha drug, analgesics, and antibiotics. These drugs
give the pharma industry a foothold in the globally competitive marketplace (EXIM
bank, 2015).
The Pharma Industry is highly fragmented; it comprises about 20,000 licensed

companies employing approximately a staff of 5,00,000. Indian pharmaceutical
market also contains internationally well-known companies like Ranbaxy, Cipla, Dr
Reddy, these companies are one of the world's largest generic medicine manufactures.
The Pharmaceutical Industry is one of the major employment generators in India, not
only domestic companies, but MNC's also prefer Indian employees from top to
bottom level of management. It may be because of the easy availability of English-
speaking labor at cheaper prices. Though the molecular biologists are in tiny supply,
still several brilliant chemists are correspondingly as significant in the breakthrough
process. The Indian generic companies started to grow in the regime of a process
patent, Patent Act 1970. This Act helped the government to suppress monopolies of
the MNC's. From that time, generic companies of India seized vital market share,
from negligible to about 70 per cent. The Indian Pharma companies launched more
than 80 per cent of brands in this regime that is before 1995. Although there have
been numerous successes for product introductions in the domestic market in more
6
latest periods, on most occasions the similar products have been launched by multiple
companies underneath altered brands consequently resulting in the division of market
share for the particular brands.
Chandra, U (2016) stated that “the Indian Manufactures have also been recognized as
global manufacturing” hub due to the availability of a large number of scientific and
professional human recourses in India, for the “Contract Research and Manufacturing
Services (CRAMS)” and outsourced clinical research. The disintegrated market of
India, CRAMS Industry has displayed 48 per cent CAGR between FY15-18 and
predictable to the observer a robust development of 25 per cent over 2018-21 (IBEF,
2020). EXIM bank (2015) and IBEF (2020) mentioned that India has 22 per cent of
overall manufacturing facilities approved by the U.S. Food and Drug Administration
(US FDA). Further, one- third of all “Abbreviated New Drug Applications” (ANDA)
approved by the US FDA, belonged to Indian companies.
Even though there is a broad scope in the enlargement of the pharmaceutical industry,
it is necessary to understand the primary value chain on which the manufacturer stand
and have been witnessing growth over the years. Value chain explained, according to
Michael Porter, is the whole series of activities that create and build value at every
step. The total value delivered by the company is the total of the value built up
throughout the company—the analysis of the value change of the ultimate formulation
given below.
FIGURE 1.2: VALUE CHAIN OF DRUG MANUFACTURERS
Intermediaries and
Chemicals
Bulk drugs/Active pharmaceutical

ingredient (API)
Formulations.
Source: EXIM bank (2015)
7
Here to make the final formulation the manufacturer, first of all, needs the necessary
chemicals and intermediaries from which the API or the bulk drug formed, which
further can develop into the final formulation of the drug. From the value mentioned
above, we can conclude that the manufactures have two different segments of
manufacturing opportunities API/bulk drugs and formulations.
Formulation bulk drugs act as a catalyst in the growth of industry domestic as well as
in the international market. The EXIM bank (2015) has categorized as formulation
segment and bulk drug segment into domestic and export consumption. It examined
that from the account of total production, only 40-50 per cent of the formulation is
used domestically and rest all exported. Two ways can sell the formulation of drugs
either by the contract of supplies or directly to the retailers. Whereas in the case of
bulk drugs, only 10-20 per cent of the total production is consumed domestically and
rest all exported. There can be a supply contract in case of patent drugs or can be sold
out rightly in case of expired patents. The total contribution of exports recorded in
2013-14 was dominated by the by both drug formulations and bulk drugs.
FIGURE 1.3: MANUFACTURING BY INDIAN PHARMACEUTICAL

PLAYERS
Pharmaceutical
manufacturing
Bulk Drugs Formulatio

n
Domestic Exports Domestic Exports
Generic Patent drugs Generic Generic

contact contact contact
manufacturing of contact
manufacturin manufacturing manufacturing
g intermediates and
API Retail
Source: EXIM bank (2015)
8
1.1.4: EXPORTS AND IMPORTS OF PHARMACEUTICALS
EXPORTS
Equity master (2020) mentioned that the Indian pharmaceutical sector holds a key
position in the global market. Almost 20 per cent of global exports demanded are
fulfilled by them. India caters to 50 per cent of pharmaceutical demand across the
globe for various vaccinations, 40 per cent of generic drugs required in the United
States (U.S.) and around 25 per cent of overall medicines in the United Kingdom
(U.K.). Up to January 2020, India recorded exports of pharmaceuticals worth US$
13.69 million (IBEF, 2020). India is also a supplier of medicines to United Nations
International Children Fund (UNICEF), as per its annual report 2018 the procurement
done from India was US$ 52.96 million. Sharma, U. (2020) highlighted the Indian
Pharma exports had shown tremendous growth over the years. It has witnessed an
upward shift of 19.10 per cent, i.e. 26631.58 crores compared to its exports of the
previous year, the similar period 2019 of Rs 22361.35 crores. Indian pharma exports
recorded during 2018-19 were to be US$ 19.13 billion incorporating bulk drug,
finished formulations, and Ayush and Herbal contributed 5.79 per cent of
merchandise exports (Pharmexcil, 2019).
TABLE 1.1: CATEGORY WISE EXPORT OF PHARMACEUTICAL

PRODUCTS FROM INDIA IN MILLION US$
Change
Contribution
Category FY18 FY19 per Revenue
per cent
cent
Ayush & Herbal Products 456.12 446.12 -2.19 -10 2.33
Bulk Drugs & Drug
3525.65 3895.14 10.48 369.49 20.36
Intermediates
Drug Formulations
12747.88 14223.46 11.58 1475.58 74.33
&Biologicals
Surgical 532.16 569.72 3.19 17.61 2.98
Source: DGCIS
9
There are 25 top destinations of export which contribute to 68.3 per cent of total
Indian pharmaceutical exports. During the financial year 2018-19, India has exported
to 201 countries on an average of US$ 95.2 millions of exports. There are around
eight countries which have shown tremendous growth of 22 per cent (almost twice the
average growth) during FY-19. These countries are the USA, U.K., South Africa,
Russia, Brazil, Nigeria, Germany and Canada, the revenue generated by these eight
countries were above US$ 95.2million (Pharmexcil, 2019).
FIGURE 1.4:
TOP EXPORTING DESTINATIONS IN FY 19 FIGURES IN

100%
US$ MILLION
36.09 16.78
702.21 73.52 68.33 56.54
95.46
80%
60%
619.08 485.55 447.95

5820.41 630.17 452.05 445.78
40% 325.26
20%
0% -18.73
USA UK SOUTH RUSSIA BRAZIL NIGERIA GERMANY CANADA
AFRICA
-20%
FY 19 CHANGE
Source: Pharmexcil (2019)
IMPORTS
Department of Pharmaceutical (DoP), (2015-16) mentioned that the country is almost
self-sufficient in formulations. The imports are being made on quality and economic
considerations and not necessarily due to non-availability from domestic Sources.
Manufacturers of Drugs and Pharmaceuticals are free to produce any drug approved
by the Drug Control authorities. Imports of Drugs and Pharmaceuticals did as per
Foreign Trade Policy. However, import of some drugs and drug intermediates still
restricted under the current Foreign Trade Policy. Imports of Drugs &
10
Pharmaceuticals done as per Foreign Trade and the Drugs & Cosmetics Act
provisions. There are specific incentives available to the exporters of Drugs &
Pharmaceuticals which enables them Customs duty-free import of all inputs and
manufacture the export products in line with Advance Authorizations granted by the
Director General of Foreign Trade (DGFT). The quantities of information are as per
published Standard Input-Output Norms (SIONs).
TABLE 1.2: IMPORTS OF MEDICINAL AND PHARMACEUTICALS

PRODUCTS IN 2012-16
Source: Department of Pharmaceuticals.
1.2: TOP DRUG MANUFACTURING UNITS OF INDIAN

PHARMACEUTICAL INDUSTRY
Over 35 years, the Indian pharmaceutical industry has witnessed tremendous growth
and displayed robustness. The market is dominated by top firms which own 30 per
cent of the market directly and 70 per cent of the market through indirect access such
as third-party manufacturing and selling.
According to UBM India, the global pharmaceutical industry estimated to grow at a

rate of five per cent every year during 2015-2020 so that the Pharma can achieve the
set target of 1.3 trillion sales. The contribution of the Indian pharmaceutical market in
global growth expected to be 15 per cent annually. Such a high growth rate
anticipated because the number of approvals given by the Food and Drug
Administration (FDA) for the establishment of pharmaceutical plants is the second
largest in number.
11
Some of the top ten pharmaceutical companies that have managed to reap highest
revenues in 2014-2015 are listed below. These companies have selected based on
several factors like net revenue, profit, the price per share, number of employees
working etc.
FIGURE 1.5: MARKET SHARE, REVENUE, GROWTH RATES OF

LEADING COMPANIES (per cent), FY 15
Source: Indian equity brand foundation (2016)
1. Dr Reddy: Dr Reddy's Labs formed in 1984. Its headquarters are in

Telangana, Hyderabad, India. Its subsidiaries are widespread across the globe.
It has its representative offices in 16 countries like the U.K., the US, Germany
etc. and 21 countries have third party distribution. It has recorded consolidated
net sales of Rs. 10010.94 crores, net revenue of Rs. 15,297.4 crores with a
profit amount of Rs. 2,336.4 crores in the financial year 2015. It has been
catering medication and Active Pharmaceutical Ingredient (API) market for
various ailments domestically and globally. The company also employs a total
of 19,857 employees. It is one of the most popular India company around the
globe.
2. Lupin: It is a Mumbai-based top pharmaceutical company. Dr Desh Bandhu
Gupta founded it in the year 1968. This company leads the market with its
wide range of products from cardiovascular drugs to Anti-TB and
12
Cephalosporin antibiotics. Lupin has made significant international
acquisitions worth US$ 880 million of US-based firms namely Novel
Laboratories Inc. and Gavis Pharmaceutical LLC. It has recorded as the
second-largest revenue generator in the financial year 2015. It has recorded a
net revenue of Rs. 12,599.7 crores with a net profit of Rs. 240.32 crores. The
company employs 14,198 employees.
3. Cipla: The Chemical, Industrial and Pharmaceutical Laboratories knew by its
acronym Cipla was founded by Khwaja Abdul Hamied in 1935. The company
deals in APIs and primary medicines for ailments like diabetes, obesity,
cardiovascular diseases, etc. The company widely spread across India in cities
like Mumbai, Goa, Patalganga, Kurkumbh, Bangalore, and Vikhroli. Apart
from its stronghold in the Indian market, it also has an extensive charge across
the globe. It exports to more than 150 countries in North America, South
America, Asia, Europe, Middle East, Australia, and Africa. It is also
appreciably known for its technological innovation and processes. It has
recorded a net revenue of Rs. Eleven thousand six hundred twenty crores and
net profit of Rs. One thousand one hundred eighty-one crores in the financial
year 2015. It employs a total of 23,472 employees.
4. Cadila Healthcare: Ramanbhai Patel founded it in 1952. It has its
headquarters in Ahmedabad. The company has reserved the fourth slot
amongst the high revenue-earning companies catering to the healthcare
market. It registered as going fast in India. In the year 2000, the company
issued its initial public offering. Later on, the company acquired companies
like Química e Farmacêutica Nikkho do BrasilLtda (Nikkho) as part of Zydus
Healthcare Brasil Ltd on June 25, 2007. In 2015 the company acquired another
Indian pharmaceutical company called German Remedies. The company has
recorded consolidated net revenue of Rs. Eight thousand six hundred fifty-six
crores and a net profit of Rs. 2982.8 crores in the financial year 2015. The
total number of employees registered till then was 13,180.
5. Aurobindo Pharma: It is an Indian based pharmaceutical company who has
registered its presence across the world. Aurobindo Pharma was set up in 1986
and started its functioning in 1988-89 in Pondicherry, India. Presently, the
company has its headquarters in Hyderabad, India. It covers the segments of
13
antibiotics, anti-retroviral, gastroenterological, and anti-allergic. It has
recorded consolidated net revenue of Rs. 7,271.62 crores and a net profit of
Rs. 1,516.35 crores in the financial year 2015. A total number of employees
registered was 11,500.
6. Glenmark Pharmaceuticals: Established in 1977. It has its headquarters
based in Mumbai. Glenmark Pharmaceuticals is a highly research-driven
global pharmaceutical organization that focuses on discovering novel
molecules and developing high-quality generics and speciality products for
markets worldwide. It caters to API market and health segment like
paediatrics, dermatology, etc. The company holds sixth place in the list of high
revenue earning pharma companies, and it is one of the popular pharma
companies in India. The company has recorded a consolidated net income of
Rs. 6,650.216 crores and a net profit of Rs. 1007.53 crores in the financial
year 2015.
7. Glaxo Smith Kline Pharmaceuticals: Established in 1924. GlaxoSmithKline
Pharmaceuticals is one of the oldest pharmaceutical companies in India. It
currently registered as the seventh-largest pharma company in India. It deals
with medications and is a popular contributor to vaccines for hepatitis A, B,
Rotavirus, etc. The company has recorded consolidated net revenue of Rs.
3,486.2497 crores and a net profit of Rs. 471.6458 crores in the financial year
2015. It has employed a total of 95,575 employees.
8. Divi's Laboratories: established in the year 1990. Its headquarters is in
Hyderabad. The primary focus of the company is on Research &
Development. Divis Laboratories focused on developing new processes for the
production of Active Pharma Ingredients (APIs) & Intermediates. Divi's
Laboratories has earned a total revenue of Rs. 3126.849 crores and net profit
of 847.06 crores in the financial year 2015. Total employees as on March 31,
2015, was 3090.
9. Abbott India: It is an American Indian company as it is Abbot's Global
Pharmaceutical company. Dr Wallace Calvin Abbott founded it in Mumbai.
The company has recorded a net revenue of Rs. Two thousand three hundred
thirty-six crores and a net profit of Rs. 228.96 crores in the financial year
14
2015. It employs 2,867 employees in India and around 74000 employees
across the globe.
10. Torrent Pharmaceuticals: It is under the flagship of the Torrent Group. The
headquarters based in Ahmedabad. U.N. Mehta promoted it. It was initially
known as Trinity Laboratories Ltd. and renamed to Torrent Pharmaceuticals
Ltd in the later course of action. The company is active in Cardiovascular
(CV) therapeutic areas, Central Nervous System (CNS), gastro-intestinal,
dialectology, anti-infective, and pain management. The company has recorded
a net revenue of Rs. 2162.25 crores and a net profit of Rs. Seven hundred
fifty-one crores in the financial year 2015. It employs 11,047 employees as of
2015.
1.3: MADHYA PRADESH A GROWING HUB FOR DRUG

MANUFACTURING UNITS
Health care has emerged as the largest developing sector over the years. Madhya
Pradesh is home to 73.34 million people. The state is landlocked and has a high
density of low income and tribal population. For a very long period in history that
state witnessed seriously stressful economic conditions and listed amongst top
nonperforming states. The state's socio-cultural and economic environments are not
conducive to indicating high propensity of ethical drug consumption. In the last
decade, even though the state has recovered from the poor financial condition, the
various macroeconomic indicators do not suggest the commoners' ability to afford
branded ethical drugs. The state government has come up with medium-term
healthcare strategies to improve the healthcare condition in the state. Taking the lead
and understanding the gravity of the situation, the state government is conducive to
using and promoting generic drugs. Madhya Pradesh health sector is a budding and
vibrant untapped market when compared to other states. It is also linked with four
different potential states of the country Rajasthan, Uttar Pradesh, Maharashtra,
Chhattisgarh the state has all desired potential to become a regional hub a significant
player in the generic drug industry. The government is also keen to encourage the
private manufactures of the drugs to set up their units so that the commoners may get
quality medicines and employment opportunities. Madhya Pradesh has the necessary
15
infrastructure, which attracted multinational pharmaceutical companies to set up
pharmaceutical business in Madhya Pradesh.
The pharmaceutical sector is widespread to Madhya Pradesh's cities like Dewas,
Ujjain, Dhar and Prithampur districts surrounding Indore. Indore is said to be the
state's commercial capital, one of Asia's most significant trade houses for
pharmaceuticals is situated here, “Dawa Bazar”. Dawa Bazar has marked significant
due to wholesaler, resale outlets of small manufactures and marketing offices for
several multinationals. M.P. offers a range of advantages to MNC's and domestic
companies to invest in this sector. There are many educational institutes across the
state, which gives continues supply of skilled and semiskilled labour workforce to the
industry. The state government also provides factoring in the cost of land and
workforce, industrial policy, capital subsidiary advantages, resulting in the savings of
around 15-27 per cent in capital and 19-33 per cent in revenue annually. The
availability of mass land under District Trade and Investment Center (DTIC),
Audyogik Kendra Vikas Nigam (AKVN) and Special Economic Zone (SEZ's) at
lower rates and fiscal incentives make it although more attractive for the growth of
the industry. The government first set up of SEZ in India was in Indore, Pithampur
which became operational in August 2003. Indore SEZ also has 138 hectares of fully
developed land ready for allotment. The state has its dry port located in Pithampur,
Mandideep, Raipur, and Malanpur, giving an impetus to the export-oriented pharma
industry. More than 350 pharmaceutical units located across Madhya Pradesh out of
which 160 are formulation manufactures and rest 190 are generic companies
producing a wide variety of dosages in syrups, tablets, capsules, ointments and I.V.
fluids. There are around 200 Ayurvedic and about 50 homoeopathic units also in
operation. The Pharmaceutical Industry to date has employed more than 45,000
people directly or indirectly. The Annual turnover of Pharma is approximately USD
1.5 billion. The pharmaceutical cluster comprises the industrial estates within Indore
and the industrial regions of Dewas, Ujjain and Pithampur.
Government of Madhya Pradesh (GoMP), (2016) highlighted the pro-activeness of
government to a robust support system. The government has developed infrastructure
for growth by establishing Seven Audyogik Kendra Vikas Nigam (AKVN) to
promote industrialization by providing industrial infrastructure. There are around 19
Industrial Growth Centers which work under these seven AKVNs. Pharmaceutical
16
SEZ at Pithampur also under AKVN, Indore. About 185 Industrial Areas developed
under the control of District Trade & Industrial Centers (DTIC). There are special
incentives for Pharmaceuticals & Herbal Industries in Healthcare Investment Policy
2012. The expenditure incurred on technical services for obtaining GMP certification
cut down to 50 per cent of the total. The government developed Investor-friendly
Policies like Exemption from Electricity duty, Concession on land, Interest subsidy,
Entry Tax exemption. The state also extended all these incentive packages to vendor
units, similar to mother units. To promote Small Scale & Medium Scale
Pharmaceutical Units having FCI of over INR 50 lakh special subsidy was granted.
M.P. government also set up an Online Single Window System for Investor
Facilitation & Approval Monitoring System to ease the paperwork involved.
FIGURE 1.6: PRESENCE OF PHARMACEUTICALS IN MADHYA

PRADESH
Source: GoMP (2016)
17
Table 1.3: SOME OF THE KEY MANUFACTURING UNITS
COMPANY MANUFACTURING FACILITY

• SURGICAL PRODUCTS
• LIQUIDS ORALS
• PREFILLED SYRINGES
CIPLA INDORE
• NASAL SPRAY
• EAR DROPS
• TABLETS
• OFFERS PRODUCTS OF
AILMENTS FOR ACUTE
CARE
THE PRIMAL
• BIOTECH PITHAMPUR, DHAR
GROUP
• CARDIAC
• DIABETES
• ORTHOPAEDIC
IT HAS TO UNITS
• AFFORDABLE
• MANDIDEEP
LUPIN GENERICS
FOR API
LIMITED • BRANDED
• INDORE FOR
FORMULATIONS
FORMULATION
• API
TEVA • GENERICS MALANPUR, BHIND
• ONCOLOGY SUPPORT
RANBAXY • API
DEWAS
(C/O SUN- • FORMULATIONS
PHARMA) • TABLETS
18
CHAPTER 2
CONCEPTUAL FRAMEWORK OF PROMOTIONAL MIX STRATEGIES
2.1: MARKETING STRATEGIES
Marketing is a specialised managerial activity which involved both managers and

executives. Marketing is not just an activity, but a task of proper planning and
execution in such a manner shows that so that the set business objects can we attend
(Stevens, R.E 2010). The American Marketing Association defines marketing as,
“Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large”. Pekala (2013) and Chernev (2018) describes
marketing as just an activity of sales promotion and advertising, whereas it has more
to it. Marketing provides an approach of strategic analysis and planning for achieving
business goals. According to the founder of modern management theory given by
Peter, Ducker “marketing is the whole business seen from its final result, from the
customer's point of view”. Kotler P. T (2019) identified marketing as a process of
meeting customers' needs for making a profit.
As per the above discussion, we can conclude that marketing is a continuous process
of exploring, identifying, creating, and fulfilling the target market's needs to profit
from it. As the modern philosophy says, marketing is both art and science and thus
need a rigorous contemplation of different marketing strategies to fulfil its profit-
making activities. Marketing strategies are a layout of how marketing activities of
management will work. They are a complete package of professionalism, flexibility
and discipline. Developing a plan for any business is a continuous process, as it aims
to survive the cut-throat competition in the market. Marketing strategies bridge the
gap between the company's ideas and objectives and achieve them by planning and
developing marketing activities (Blythe, 2009).
19
FIGURE: 2.1 MARKETING STRATEGY IS A CYCLICAL PROCESS
Framing of
stratergies
Evaluating the
Framing the
outcome of
plan of action
plan of action
Implementing
the plan of
action
Marketing strategies may vary from business to business or product to product.

However, one can categorise the market segmentation based on dominance in the
market; forms ranked as per their market shares. Categorically there are four types of
firm authority which prevails in the market. First, the strategic leaders aim to expand
the markets by maintaining current market share and finding new users. The
competitors eventually try to compete with the leaders so that they can part of the
competition. Third, these are types of firms that imitate the leaders' strategies for their
profit the last one is Nicher these are small firms that avoid the more prominent firms
and target only remote market areas (Kotler P., 2015).
2.2: MARKETING MIX

Marketing mix concept was introduced by professor Neil H Borden (1895-1980) In
his article, “the idea of the marketing mix”. In 1960 professor Jerome McCarthy
designed the model of four Ps concerning Borden. Borden defines this concept of
marketing which enables the marketers to formulate effective process so that the
companies can achieve targeted sales in the desired market. The objective of the
marketing mix is to secure the success of the product Brand or services.
20
McCarthy classifies marketing mix tool as four useful marketing tools: product, price,
place, and promotion (McCarthy, E.J, 2005). As shown in Figure 2.2, the marketing
mix tools are used to influence trade and consume. The firms frame short term
marketing mix strategies which keep changing time to time. According to Robert
Lauterborn (1990), the seller's four Ps should match the customers' four Cs.
Four P’s Four C’s

Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication
The four Ps in today's world help the marketers answer the most important questions
after business: what kind of product demanded or required in the market? Indeed, one
can figure out the characters of the product and design it. The marketing mix's second
most important strategy is the pricing of a product, as the choice of a consumer may
change based on price in this competitive market. The product design and distribution
must carefully be planned to maintain product availability when and where
demanded. At last, the essential marketing strategy is promotions. Promotions of any
goods or services help to increase its sales in the target market. The advertising helps
in Building the image of the product in the mind of the consumer. It also helps to
bridge the gap between Identifying the consumer's need and its benefits.
FIGURE 2.2: MARKETING MIX
PRODUCT
PROMOTI
TARGET
PLACE
ON
MARKET
PRICE
Source: Adopted form McCarthy’s Model
21
Product is anything that is offered to the consumer so that his needs, wants and desire
can be satisfied. While designing its development, a firm keeps in mind to quality,
features, and services as these are the basic parameters of customers choice. Product
mix helps the business to decide all the tangible and non-tangible attributes that make
an offer. Product mix can further be categorised into width means the different
products the company has to offer.
• The depth describes the variant of a product the company offers in the market.
• The length refers to the cluster of the items provided.
• Consistency refers to the relationship between the development of end-use.
These four dimensions allow the company to expand its business. Price is an essential
element in the marketing mix. Price is the only concept which talks about the revenue
where are rest three P's are all about the cost the company has to incur. Price
considered as a most flexible element; it is highly cost-oriented. Price is the major
problem which companies are facing these days, to price a product company must
keep in mind certain aspects they are as follows:
• Select an objective of pricing which may be profit-oriented, market share
oriented, quality-oriented or nearly survival-oriented.
• Determination of demand and the price affects the market if the fees are too
high, then the demand falls, and vice versa does request a ceiling for price.
• The product's cost includes fixed and variable factors like taxes, packing, and
so on; thus, the cost of any product or service provides a floor price.
• The competitor's cost prices and offers are kept in mind too, along with the
possibility of price variation a business competitor can offer.
• Pricing method is also closely analysed and studied as there are six different
methods one can price the good or services.
• Selecting the final price in this the company evaluates all the additional factors
like other marketing mix elements, companies policies of pricing, and the
impact of price on other parties.
The place is a factor when chosen correctly yield profit as well as maximises sale.
Placement of the product is an activity to reach the target audience at the right time. It
22
helps to establish a connection between where the product is, and it's targeted market.
The marketing mix P's includes all aspects of storing the goods, transporting them,
and intermediaries involved in the transition period of a product from the
manufacturer to the final consumer. The primary decision is,
• Distribution channels and intermediaries are all about how the product will
move to customers. The third party selection is the intermediary as a
wholesaler or retailer of the product acts as a middle man between the product
and manufacturers. They also provide warehouse facilities for the product.
The availability of the product impacts the sale quantity. As a product designed,
priced and promoted, it should be available across the target market when demanded;
it affects the consumers' choice. Luenendonk (2019) describes that promotion in
modern marketing promotion plays a more critical role than designing the product,
attractive pricing, or accessibility. The foremost question a company has to answer in
this competitive environment is who, what to say and how often. The target of the
promotional strategy is to make the target market customers aware of the new
products. It continues the promotion of the product so that the existing product
remains in the customer's mind. Different advertising methods are available, and
selection of these methods is made based on the product's use, size of the audience
and market segmentation.
2.3: PROMOTION MIX STRATEGIES
Marketers adopt various methods to sell their products. The main focus is a too high
awareness of products and change the customer mind and focus on its development.
The significant interest of companies is to increase its sale volume to attain maximum
profits. There may be different promotional methods and strategies, depending on the
variety of product or services.
23
FIGURE: 2.3: PROMOTION MIX STRATEGIES
Advertisin
g
Public Pomotional Sales

Relation promomti
Mix on
Personal
selling
2.3.1: ADVERTISING
Advertising is one of the most acceptable methods is advertising. That helps to attract
its audience and set up their mind on the product, services, or values. It does a paid
form of presentation of ideas about the product in a non-formal manner. Mainly the
product name is focused, and its uses and benefits concentrated in the advertisement.
There are various types of Sources by which a product can be advertised, such as
television sets, radios, magazines, newspapers etc. It is the most common and
efficient method by which many targeted audiences can be reached. The main focus is
to inform and turn on consumer toward the product. It requires inefficient designing
of the message so that the correct message delivered to the targeted audience or the
customers Through identified and renowned sponsors Inform of any company or
dealer. Product costing carries a tremendous amount for advertisement. The amount is
high because advertising is a repetitiveness to attain consumer interest, focusing on
the ad's message to be a non-personal type to any entity. There can be both
commercials and non-commercial use of advertising, and it can vary according to the
planning of sponsors. Due to the increase in the competitors and growing root of the
market, advertisement is a useful tool to attain the desired target. There can be many
other non-commercial purposes in which advertising can be used, i.e. social, religious
24
and political, etc. Any hired agency can place the advertisement on behalf of a
product or its company (Maclinnis, 2005).
OBJECTIVES OF ADVERTISEMENT:
• The product advertised in media on any platform focuses on communicating to
the consumer by creating awareness of existing and new products.
• Once the consumer is well informed about the product, advertising helps
remind the company's product and services.
• The customer needs to be motivated now and then to buy the same product or
services through advertised media whenever required
• The main objective of any repeated advertisement is to maintain the
customer's continuity not to change their focus towards any other competitor
available in the market.
ADVANTAGES:
• Advertising is a single platform where a large number of audiences are
approached. The message reaches many people through radios, television, and
print media, which is highly cost-effective. The amount of advertisement may
seem to be high but have a per head cost-effectiveness.
• The mass media coverage is also extended if the advertisement placed on the
national radiofrequency can cover all urban and rural areas.
• The penetration of product or service is done in a very effective manner. The
message is created and sent with clarity through audios and videos, so
objective behind the advertisement is loud and clear.
• It helps create a perfect image in the target audience's mind to make a
symbolic appeal.
• The review of advertisement can be done before sharing it to the target
audience either by the company or by the advertising agency hired.
DISADVANTAGES:
• With many advantages by its side advertisement also carries disadvantages or
limitations. These may be as follows:
25
• Cost, Particularly on television cost for repetitive advertisements, is
prohibitive, so many medium and small scale companies do not opt for the
same.
• The advertisements placed through a variety of media Source. A considerable
amount spent on it, but at the same time, it becomes challenging for the
companies or agencies to determine or predict the effectiveness of
advertisements on its sales figure.
• An advertisement is a useful tool for the product and can turn into the sale of
the product there is a need for proper supply chain so it can be available to the
final consumer.
• Trust is the foremost thing for any product is sometimes compromised through
false promotions by unidentified sponsors. The claims covered in false
advertising leads in misguiding the customer.
• Despite all the limitations, it can be incorporated that it very much required for
product or service in the current trend of competitions.
2.3.2: SALES PROMOTION
Sales promotion is a promotional mix tool in which efforts are made to increase the
sale by providing any type of motivation to anyone involved in sales of the product.
There are significant involvements of the salesperson, dealers or distributors and
customers. The sales promotion technique encourages them to buy a product in
massive quantity through various incentives and benefits. It has a short term
objective. The company uses different methods to increase the sale of product or
services whenever intended. Efforts made to increase sales other than advertisement
and personal selling is known as sales promotion. The actions are made in marketing
to enhance the sale and motivate the buyer to buy bulk quantities or incentives. These
type of activities can be done on salesmen, dealers or customers for short term basis.
The promotion can be done focusing customer, trade or sales enforcement. The
targeted groups are provided with extra benefits to buy the product and increase their
sales and profit. The different parties involved in sales promotion are customers; the
end-users are persuaded to purchase the product. Extra benefits are provided that
increases the relative worth of money spent. Another segment on which this tool is
26
used is the sales force. Salesforce needs to be motivated so that the efforts provided to
link-up between the company and trader, company and customer are not
compromised; in fact, gets boosted. After-sales, support and services are maintained,
which helps to attain increments in sales. The dealers selling the product also needs to
be motivated through different types of motivation other than the actual profit
margins; dealers also put extra efforts to sell the product. Promotion is done to all the
parties separately with different tools as one technique or method of motivation
cannot be used for all. The promotional tools are separated from customers, dealers
and sales associates (Charles W. Lamb, 2016).
OBJECTIVE:
• Introducing new products: The companies use free sampling promotion
technique for introducing a new product to parties. The future demand
depends on how the customer responds to the samples.
• Attract customers: promotional techniques are used to attract customers
initially and retain the existing customer through additional benefits. The
customers are attracted to a product through discounts, gifts, and price off's on
buying. Many promotional tools are tested to retain the existing customer and
add new to the list.
• Seasonal products: Some products are seasonal in demand by the customer
such as woollen clothes, room coolers, Ac's, heaters and raincoats etc. These
types of products are in less or no need in other seasons. Sales promotion is a
beneficial supplement for such products. The customers' motivation is
provided through additional benefits for buying to increase such seasonal
products' sales.
• Competitive effects: In this competitive era, there is a challenge for the
company to increase the sales as every product of the same segment is
promoted and marketed at the same pace. Sales promotion motivates the
customer to buy the product. Sales promotion scheme is brought in line to
neutralise the competition effects. The sales of other products may increase if
not done so which turns in less of opportunity.
• Slow-moving product: The product with their old design, features or outdated
lose its demand. These products are of non-moving types and are dumped in
27
company stores. Suitable promotion techniques are used to enhance the
movement of these products. Benefits of a higher value are introduced to boost
the demand for such products by the companies.
• Different types of sales promotional tools are used to attain various
objectives. A similar method cannot be used every time; it needs it to be
changed or moulded according to situations. The process may vary according
to the party or objectives of the company.
ADVANTAGES:
• There are some price-sensitive customers. It makes it appealing to them. Such
types of customers wait for promotional schemes to buy the product.
• Customers are attracted and encouraged through promotional schemes to buy
the product.
• Helps to boost sales of seasonal, slow-moving and current demand products.
• The competition effects are also neutralised through promotional tools.
• The time to time sales promotion also varies its profits.
• It has a direct effect on sales and can be easily measured.
• Sales promotion also acts as a push strategy to the customer to ultimately buy
the product in large quantity.
DISADVANTAGES:
• These are some limitations of sales promotion:
• The focus of sale promotion is short-term as an increase in sales are observed
at a particular time till the promotion schemes are present.
• It gives short-term gains, and the long-term gains or objectives are sacrificed.
It does not also help to develop the image for the product and company.
• The price-sensitive customers are mainly focused on the incentives given and
become habitual of it.
• The marked expected profits of the budget is also compromised by adding
sales promotional schemes.
28
2.3.3: PERSONAL SELLING
Among the different promotional methods, personal selling used to increase or

generate products or services. The customers or dealers come in direct contact with
salespeople of the company. The company's salesmen go into action and meet the
customer directly depending upon the nature and type of the product. To build
customer relationships and make sales, there is a presentation made by the sales force
personally. An attempt made to inform and persuade customers through paid personal
communication. The sale person provides all product-related details at the time of
personal selling, such as information regarding the product, company management,
how one's development is different from the competitor's story, and other endless
details. Before meeting the customer, sales assistants propose to list and details
prospect, product features etc., which can also be termed as its homework, a crucial
part in selling. The salesperson provides every required information to convince the
customer to buy the product. The salesperson does After-sales the follow-ups. During
the customer visits, salesperson clears every doubt, anxiety and curiosity related to the
product. Itis very challenging task for a salesperson to do. It is the most effective tool
that helps in gathering feedback through customers and salesperson interaction. The
salesmen expect long-term commitments towards the customer due to their changing
interest and increased market choices. It can be considered most expensive in the
promotion and one of the most effective one (Burrow, L. James, 2015).
OBJECTIVES:
• Customer relationships are created for a long-term through problem handling
feedback and assurance.
• Personal selling suffices the requirement of persona presentation. It gives a
personal touch in sales.
• Industrial or heavily priced products requires personal selling as it is not
convenient to sell these types of development through dealers, retailers or
wholesalers.
ADVANTAGES:
• In personal selling, two-way communication is beneficial.
29
• The best suitable method for demonstration and clarifying doubts. It gives a
personal touch and develops the company's trust due to direct human
involvement.
• The product can be demonstrated, which helps convince the customer and
create ease to buy the product.
• Salespeople give assurance to the customer through personal meetings which
make a long-term impact on customers mind.
• It builds the image of the company and healthy relationships in the marketing
environment.
DISADVANTAGES:
• The market coverage of personal selling is significantly less, and the salesmen
Cover limited individual in the given time.
• The expense incurred in Personal promotion is very high. When calculated per
head with other methods of advertising.
• It is restricted to specific industries as every product promotion does not fit in
personal selling category.
• Personal selling activities required a considerable amount and hefty budget,
which cannot be afforded by small and medium scale industries.
2.3.4: PUBLIC RELATION (PR)
The fourth element of promotional mix strategies is public relations. It builds and
sustains the favourable image of any organisation, product or services, celebrity,
leaders, non-profit organisations etc. The implementation of successful and effective
public relation strategies is a crucial marketing component. PR is meant to convey a
message to the targeted audience with the media's help on clients' behalf or directly by
the organisations. The objectives behind influence can be to create a favourable image
of the company, business, product and services. The PR aims to earn a bright idea of
the company by highlighting and making people attentive about worthy news
activities. PR often is said as “free advertising”, but it is not at all cost less. People are
hired and are heavily paid to plan the promotional activities and events associated
with a sponsor (Wilson, 2020).
30
OBJECTIVES:
• The main goals or purpose of any organisation is to strive following efforts
with the aim of public relations.
• Developing and sustaining the positive image of the company and its brands
• Informing the target customers about the positive association of product
service, brand etc.
• It aims to maintain strong relations with the influencers who can influence the
target market.
• Maintaining goodwill of the company along with its brand and product.
• Trigger the demand of products, goods, services and brand
ADVANTAGES:
• When the public relations are aligned, and well-coordinated with the
marketing activities organisation can get an opportunity to magnify the
messaging company wants to communicate.
• People tend to believe more and give creditability to public relation marketing
when compared to paid advertisements.
• When a company organises or sponsors a charitable show, it boosts employee
morale and pride, allowing collaboration and teamwork.
• The PR team's content and ideas help maintain relativity on websites and
social media platforms to encourage visitors to visit sites and stay engaged.
DISADVANTAGES:
• It is highly costly and expensive, and it isn't "FREE". It needs a team of
planners and executors to develop an entire marketing campaign.
• There is no guarantee that the promotional strategies will be positive in many
cases the campaign has gone out of control and backfired with a negative
stance.
2.3.5: DIRECT SELLING

Direct selling is termed as the sale of product or service directly to the customer
without an intermediary. I'm like any other promotional tool it is done online via
direct mail, social platforms irrespective of workplace, home or non-store location. It
31
is an additional Source of gradual income for any business it may be for beginners or
existing business. Direct selling gives an excellent opportunity to monitor customer
and market closely (Roach, 2019).
OBJECTIVES:
• Direct selling rises brand awareness in the market and builds loyal customers
when coordinated with indirect marketing approaches.
• Improve customer relationship management by treating each customer
individually and fulfilling their requirements and improving the satisfaction
level.
• It helps in generating leads and convincing new customers and also in repeat
and cross-selling.
ADVANTAGES:
• With direct selling, a business can specify its message to certain potential
customer groups based on Demographic segmentation or buying pattern.
• It helps to build loyalty amongst the customer by continually reminding them
about brands and the line of products business offers.
• The message can be personalised to the audience to improvise the rate of
response.
• Direct selling is highly a fordable as it is mostly on Emails, social media
platforms or postcard marketing.
• It is considered highly informative as all the details of the product and services
can be given In campaigns deliver.
• The effort of direct selling can be measured as a result can be analysed.
DISADVANTAGES:
• It may be very intrusive at times, and it and people may find it annoying.
• The rate of response on direct mail can be considered 1-3 per cent and sending
to uninterested customers may result in the waste of money.
• There can be legal issues of privacy and data protection Which the company
may face from the customer.
32
• It becomes a challenge to stand out in a highly competitive business
environment.
2.4: PROMOTIONAL MIX PUSH AND PULL STRATEGIES
Two alternative strategies can be chosen to promote one's product. These are push and
pull strategies (Kotler P. T 2019).
• Push strategy: in this, the product involved is pushed through its distribution
channel till it reaches the final customer or end-user. Manufacturer or
organisation makes the product to the distribution channel and focuses on
bringing and promoting the product to the customer. Advertising and sales
promotion are the primary promotional tools used in these strategies.
Push Strategy
Producer’s marketing Activities Resellers Marketing Activities
Producer Consumer
Middlemen
Source: Cole, Gerald (2020)
• Pull strategy: in this strategy, the customer is persuaded to buy a product to

stop the process. It can be said to be useful when the customer demands the
channel member or middlemen's creation. It is also the most used strategy
because of the consumers' demand for the channel. What does strategies can
be used together by the organisation. The business to customer (B2C) pulls
technique is used more and for business supply channels (B2B) push strategies
are often used and accepted.
33
Pull Strategy
Producer’s marketing Activities
Demand of Producer Demand of Consumer

Middlemen
Source: Cole, Gerald (2020)
2.5: DEVELOPING ON OPTIMAL PROMOTIONAL MIX
The marketing objectives achieved are the proper blend of the promotion mix. For a
given market segment, all the quantitative measures are pushed according to their
effectiveness. The most challenging task for the marketer is to choose a proper mix of
all the promotional tools. A manager develops an optimal promotional mix for any
organization in such a way that it benefits the brand and fulfils the needs of the target
audience.
FIGURE 2.4: STEPS INVOLVED IN DETERMINATION OF

PROMOTIONAL MIX TOOL
Identifying target
audience
Determination of
needs
Determination of
the objective of
promotion
Determining the
appropriate
promotional mix
34
Step1- Identifying target audience: the first step in the promotional mix is to
observe and select the audience to target. It involves identifying potential buyer that
can be general or specific public, current buyer or potential new buyer, individual or
group.
Step 2- Determination of needs: the need for the targeted audience are to be
observed and study to know precisely their basic expectations from the product type
which is further analysed by the business to their product with the need of the
audience.
Step 3- Determination of the promotion objective: there can be two objectives of
any promotional activity. It can be either creating awareness or increment of sale does
the aim of promotional strategy be loud and clear.
Step 4- Determining the appropriate promotional mix: this is the most crucial step
as the promotion mix strategy depends. Once all the above steps are evaluated and
critically analysed, a suitable system that needs to form shows that the promotions no
proceed.
35
CHAPTER 3
REVIEW OF LITERATURE
3.1: PHARMACEUTICAL INDUSTRY
Akhtar (2013) highlighted the tremendous growth in the Indian Pharma industry. The
author appreciates the global footprint left by this relatively new enterprise facing a
massive challenge from the already established transnational companies. India has
shown tremendous growth and has become the World's largest and most developed
pharmaceutical market. India ranks to be the fourth concerning volume and thirteen
regarding worth across the globe. India's pharmaceutical market accounts for 10 per
cent of the global production and two per cent of global consumption. Pharmaceutical
companies of Indian provide to the nation's well-being and contribute to overall
economic growth. Indian Pharma industry caters to bulk drugs domestically and
internationally, adhering to all the leading quality concerns and conventions. José
Niño-Amézquita (2017) conducted a study on “small and medium scale enterprises
SME's” to identify their economic and sustainable growth and success in the Indian
pharmaceutical sector. It is clear from the past that the expenditure on research and
development, export and profits has acted as a positive stimulus in SME's growth.
The prime part of growth and expansion happened mostly by the end of the 1990s.
When compared to the large industries, the gross development in the workplace is
comparatively higher. The study has also pointed out heavy expenditure on
promotions. The author considers that if more amount spent on research and
development, then the SME's may expand even further (Nauriyal, 2017).
The author has identified the different determinants behind the profitability of the
Indian pharmaceutical industry. The determinants that came out playing a significant
role and a powerful tool to enhance the firm's profitability are expanding global
markets and increasing their focus on advertising and marketing. The other
determinants such as economic environment, exports are the external environment
factors which if fall in place may also increase the operations at a global level
resulting in higher growth and profit. The government of India also encourages its
campaign. “Made in India” has given acceleration to manufacturers to make raw
36
materials within the country and reduce the industry's dependency on its primary raw
material partner China. Katara (2019) researched the Indian Pharmaceutical Alliance
(IPA) to identify the Indian pharmaceutical industry's growth. IPA has suggested few
measures for the industry to continue its journey of one of the largest global market
and also stands with the vision of 2030. The key drivers of growth have identified
India's incremental economic progression, product innovation, growing demands of
USA, and improved grip in countries like China and Japan. It noted that 2.7 million
jobs had been generated directly and indirectly by this sector. The report shows that
the industry can reach US$ 120-130 billion by the financial year 2030. Sood, A. M
(2020), forecasted the growth of pharmaceutical industries based on its total output,
total per capita sale and total revenue by 2030 and the result shows positive change
and income within US$ 100 billion by 2030. India's government also focuses on
enhancing the production of bulk formulation drugs and reducing the sector's
dependency on importing these drugs from China. The export shows tremendous
growth and expected to reach US$ 29,991 million by 2030. The output also expected
to increase to US$ 50.96 million.
3.1.1: BRIEF HISTORY OF PHARMACEUTICAL INDUSTRY
India's pharmaceutical sector said to be the third largest in terms of volume in 2018,
which was of no existence in post-independence till the 1970s. It has now become the
most advanced and largest industry across the globe. The phases of industrial growth
can be categorised into four eras: pre-1970, 1970-1995, 1995-2005, and 2005.
Pre-1970s: The history of Indian Pharma mainly comprised of therapies and

Ayurveda. The rule of Britishers proved to be a paradigm shift for the industry. India
introduced to allopathic medicines, which produced here. Instead, India became the
exporter of the raw materials required to make these allopathic medicines, which
further imported to the country. In 1901, Acharya PC Ray started the first Indian
Pharmaceutical company, Bengal Chemicals in Calcutta, which exits even today and
is one of the Government's five drug owned companies. Many other entrepreneurs
came forward to contribute to the industry like “Alembic chemical works, Baroda
1907 and Bengal immunity 1919”. The volume of the sector was almost negligible
37
due to the small size of the industry. MNCs dictated this phase as the regime
governed by the Indian Patent and Design Act 1911, that facilitated both product and
process patent. The British Government legally prevented indigenous firms from
manufacturing any of these patented drugs for 16 years, extending to 10 years. The
Patent Act,1911 gave a monopoly to the MNCs, which resulted in higher drug price.
Despite India being independent in 1947, its pharmaceutical industry dominated by
MNCs. About 80 to 90 per cent of the market was based on importation. In India,
almost 99 per cent of pharmaceutical patents possessed by foreign companies. As a
result, the Indian drug price remained high, being one of the highest in the World.
The global pharmaceutical sector showed tremendous growth from the 1950s, where
countries like Germany, Switzerland, the United Kingdom and the United States
contributed to its development. Contrasting, India was not a part of this global
revolution. The primary reason for the setback for India was the lack of capital and
up-gradated technology. These challenges required foreign capital and participation of
entrepreneurs for rapid industrialisation of the country. The Government of India to
attract foreign investments adopted the liberalisation policy. Many foreign companies
invested in India. Henceforth, the Indian pharmaceutical sector achieved Rs 10 crore
growth in 1947 to 35 crores in 1952.
Up till 1970's Indian pharmaceuticals market mainly comprise of imported drugs. The
domestic market focused primarily on bulk drugs manufacturing. The domestic
companies became state-owned in the 1950s and 1960s with the World Health
Organization (WHO). These state-owned companies contributed maximum in the
growth of pharmaceutical sector till 1970.
1970-1995: In this era, the Government mined to improvise Indian pharmaceutical

companies' self-reliance. The Government became reluctant to pharmaceutical
imports. To reduce imports, it imposed highly paid tariffs and duty on the imported
medicines and also demanded the foreign companies to reduce their share in Indian
subsidies to two fifths. The Government of India also introduced a new patent act,
which came into effect in 1972. According to the revised act, only the process patent
was given recognised and not the product patent. It enabled the Indian firms to use the
38
“reverse engineering process” to manufacture the drug without paying any high
royalties to the patent holders. “The drug price control orders” controlled the
incentives which MNC's received by introducing new drugs in India that gave another
pushback along with the act. Indian Pharmaceutical companies to gain benefits of the
revised patent act, needed to develop a new process to produce various existing drugs.
Ranbaxy, an Indian based company, managed to establish a new method for the anti-
infective drug known as Cefaclor which was already process patented by Eli Lilly
company and had 32 steps to attain the final cure.
Ranbaxy produced the drug with a new fold. It gained a lot of popularity and
international fame for the company. The new policy proved to be a blessing for the
Indian pharmaceutical industry as it boosted the sector growth and enabled
expansions. It was a significant setback for MNCs as the Government was able to
curb their monopoly. By the end of 1980s, the contribution of MNCs dropped down
to 50 per cent. However, the states owned company also declined due to the increase
of central government bureaucracy and lack of efficient governance in the company.
The Government gave a lot of relaxations in 1986 to increase private players'
involvement in the policies.
This era resulted in being glorious for the pharmaceutical sector in India. The number
of domestic firms increased considerably from 2000 units in 1970 to 24000
companies in 1994-95. Even the bulk drugs production showed tremendous growth of
up to Rs 1518 crores from Rs 18 crores in 1965-66 and formulations increased to Rs
7935 crores from Rs 150 crores. The large-scale production of formulation generics
by domestic firms opened gates for exports. The total output share showed significant
growth of 24 per cent in 1994-95, which was merely 3.22 per cent in 1980-81. The
growth momentum, which started in the early decade continue to show its effect in
this era too. This era witnessed the new policy of liberalisation, privatisation, and
globalisation adopted in 1991. Due to this policy, the Government had to go liberal,
and there was a drop-in import duty. Considering the globe as a single market to
work, foreign investors set up many MNCs in India. It also gave a new opportunity to
Indian companies to set up their business cross borders. Thus, the level of competition
rose gradually.
39
1995-2005: The Indian companies in this phase witnessed global competitors as
Government became liberal. Pharma companies introduced many new drugs in the
market. The primary concern for the Government was to curb the prices of essential
medicines. Act, 1955 fixed the prices of various drugs under the Essential
Commodities. There was no such adequate patent protection given to the patentee
from 1970 till 2005, which encouraged the duplication of expensive foreign
composition. Indian drug manufactures produced these generics by re-engineering the
process of production. These generics were highly cost-effective as they did not
involve any research and financial risks. The production and formulation of bulk
drugs rose to new heights. The share of output has increased from 11 per cent in
1955-66 to meagre 19 per cent in 1999-2000. The percentage of Indian generic drugs
in the global market became higher than the comprehensive pharmaceutical market.
The world markets frequently named India as the “pharmacy of the poor”.
India's pharmaceutical industry has gone through various transitions for several years.
The pharmaceutical industry's strategic policy's notable changes witnessed when India
became the founder member of the “World Trade Organization” (WTO). Following
this, India had to follow its agreement for Trade-Related Intellectual Property Rights
(TRIPS) forced the Government to amend the Indian Patent Act 1970. The act
protected the production process. The patentee was secure for seven years. The act
amended in 2005 in the parliament and new Patents Act 2005 was introduced, which
came into force on April 4, 2005 (Goyal, 2014). Product patents for 20 years
applicable for drug, food and chemicals sector. The pharma companies witnessed a
significant shift from almost drug copying and reprocessing pattern to research and
development method. The new patent act protected the patentee of the patented drugs.
Without his permission, no company can produce the drugs; the production of these
patented drugs requires licenses only after paying hefty fees.
In this decade, the pharmaceutical market has shown remarkable growth despite
undergoing many changes. The Indian market continued to grow at nine per cent per
annum compared to the World's market growth rate of just seven per cent per annum.
The year 1995 proved to be a milestone for the industry. Agreements under WTO
complied with TRIPS reintroduced the patent acts in India. Further, during this
40
period, the tariff and non-tariff barriers were also at ease. Despite all this, the
indigenous producers managed to dominate the domestic market with 70 per cent of
the share. It was possible only after a lot of research that lowered production cost;
thus, essential drugs remained cost-effective. The low labour cost of India attributed
to the low price of production. When matched external markets, India is the center of
management and technical personnel, thus requiring external management assistances
and local accessibility of apparatus prerequisite for manufacturing.
Post-2005: India entered the product patent regime on January 1, 2005. This act
changed the Indian pharmaceutical sector's protectionist scenario and gave a better
introduction of it globally. Indian Pharmaceutical industry recognised as one of the
best generic sectors, even after all the challenges it has face earlier. Many MNC' s
invested in India in 2005-06 because of the potential of Indian markets. The growth of
MNC's resulted in intense competition for domestic producers. A series of regulation
and rules were adopted in 2005 which enhanced the global industries' match towards
India. The Government introduced the implementation of “Value Added Tax (VAT)
shifting of excise duty-based levy system to MRP based levy system and schedule
M”.
“The Drug and Cosmetics Act specifies the general and specific requirements for
factory premises and materials, plants and equipment's where given”. The industry
witnessed critical changes in the policies such as the “National Pharmaceutical
Pricing Policy 2012 (NPPP-2012), which aimed to control the price of the essential
drugs initially not in the Drug Price Control Order”. The Government sought to give a
ceiling price to the medicines, i.e., the Maximum Retail Price (MRP) should be within
the set ceiling price brackets. Food and Drug director issued another policy “New
Drug price control Order 2013, which intended to reduce the drugs' price”. The
pharmaceutical sector permitted 100 per cent Foreign Direct Investments (FDI) by the
Government.
The companies adopted intense competition, thus adopting the market’s aggressive
strategies, especially for the sale of new molecules. The companies introduced “Key
Account Management (KAM, i.e., defines the relationship between business and the
41
business customers. It is the personal touch to the sales by appointing salesperson to
develop an everlasting business relationship) contract sale organization”. The
projected progression of the pharmaceutical sector of Indian is higher than the
World's total growth. The Indian pharmaceutical industry has shown remarkable
progress since 2005 in its turnover. Domestic market turnover has reached US$ dollar
20.03 billion (1.4 lakh crores in rupees) in 2019, as compared to US$ 18.2 billion
(1.29 lakh crores in rupees) in 2018.
FIGURE 3.1: INDIAN PHARMACEUTICAL MARKET, ANNUAL

TURNOVER (US$ BILLION)
year Trunover
4 2019 20.03
3 2018 18.12
2 2017 17.87
1 2016 16.41
Source: IBEF,2020
42
FIGURE 3.2: A SILHOUETTE OF PHARMACEUTICAL INDUSTRY
Phase IV
(Post 2005)
Phase III
1.Witnessed
(1995-2005) global
1.India became competition.
Phase II WTO founder 2.National
(1970-1995) member. Pharmaceutica
1.Introduction 2. India was l Pricing
of Patent Act exposed to Policy 2012.
1970. TRIPS. 3.100 per cent
• Phrase I 2. growth 3. Essential Foreign Direct
Indian Commodities Investments.
(Pre 1970) Act 1955.
companies. 4. New Drug
1.Foreign
companies 3. MNC 4. New Patent Price Control
dominated monopoly was Act 2005 was Act 2013.
market. crubed. introduced
2. Indian 4. Introduction
companies to
strugled liberalization,
hard. globalization,
3. Patent privatization.
Act 1911
3.1.2: CHALLENGES WITNESSED BY PHARMACEUTICAL INDUSTRY

OVER THE YEARS
It is often said that the journey of success has a slump in its history. Usually, it is
believed that the demand for various drugs has increased over time. The
pharmaceutical industry acts as the key player to meet market demands. Over the
years to strive success, the pharmaceutical industry has witnessed many challenges
until date, which ultimately proved to be a blessing to fight back the past difficulties
and cope with the present.
43
Umesh Chandra (2016) highlighted that Indian pharmaceutical companies dealing in
generic medicines are leading global market players. Indian is one of the pharmerging
markets, giving various opportunities to the market and facing challenges. The
industry's nature abides by the legal framework, and health care objectives pose
distinct challenges for the sector—the pharma. Industry confronted major problems in
research and development. The Indian companies witness immature new molecules'
errors due to very minimal funds in the field research and development. “Companies
like Ranbaxy and Dr Reddy invest only five to ten per cent of their total revenues on
Research and Development, lagging far behind the western companies, for example,
Pfizer. They support an amount equivalent to the total of the payment of the entire
pharmaceutical industry of India”. The research and development here hindered by
the requirement of expensive equipment and less availability of qualified biologists.
The lack of availability represents absences of coordination between the industry and
academic collaborations compared to the rest of the World (Shah, 2012).
Akhtar (2013) opined that today, the World is developing new technology and
becoming its intellectual property owner. The irony of Indian companies is that not
even a single company undertakes its R&D and original technology. The New Indian
Patent Act makes it all the more difficult. Umesh Chandra (2016) observed that the
Indian Patent Act (2005) developed according to the requisites of TRIPS. According
to the Organization of Pharmaceutical Producers of India (OPPI), “the impermissible
hurdle has been added to this, a fourth substantive criterion of enhanced efficiency to
the TRIPS requirements”. “This hurdle appears only for pharmaceutical products.
Some substances like salts, esters, ethers, and other derivatives of known substances
are presumed to be the same substance of original chemical and cannot be patented
unless proven these substances differ significantly concerning efficiency”. EXIM
bank (2015) elaborated that there is also significant concern regarding the grant of
compulsory license (CLs) have been controversial. Though it has become necessary
for the pharmaceutical sector, it has also pointed out outcome serious evil outcomes,
especially in a developing country like India. The industry has witnessed revenue loss
due to CLs.
44
There were inadequate regulations and laws to be followed. There were large
quantities of counterfeit drugs available in the market that too at significantly higher
prices, raising other concerns for the Government to benefit the general public. The
Government came with various pricing policies for the Pharma. Sector. Umesh
Chandra (2016) observed that the policies that control India's drug prices like
“National Pharmaceutical Pricing Policy” (NPPA) under which the MRP of the
product cannot be more than the ceiling price mentioned by the committee. New
Drug Price Control Order controls the pricing of various essential drugs listed under
it. It was ultimately resulting in a new challenge of market access barriers.
The MNCs dominated the Indian pharmaceutical industry 1970s it was only after that
when the Government came in support for domestic market development. The Indian
Patent Act 1970 was a boon to the industry; still, there are various inadequacies to
which the sector is exposed even today. Indian firms face competition from multiple
MNCs domestically as well as around the globe. Government has open up for 100 per
cent Foreign Direct Investments (FDI) in the pharmaceutical sector. The lack of new
molecules' availability ascends the competition, as it gets difficult for the domestic
firms to accord the global standards.
In a country like India, Infrastructure becomes a keynote matter of concern. The share
of India in the world pharmaceutical sale has witnessed an annual growth of eight per
cent between 2006 to 2015. When compared to the rest of the World, India's growth
rate is two per cent higher. For such an intense growth of the industry, the
infrastructure becomes a significant challenge. The Government's support in the
sector is not satisfactory as it spends only 1.2 per cent of its Gross Domestic Product
(GDP) on the betterment of health care and infrastructure. The hindrance of
infrastructural development majorly affects the traditional industry and small
businesses which, as a consequence, would merge or disappear.
On the contrary, there are significant ethical challenges which also acts as a barrier in
growth. Akhtar (2013) highlighted the Indian companies undertake R&D on two
stages pre-clinical, which means trials on animals, the next step is clinical that is
testing on humans. Umesh Chandra (2016) opined that many international agencies
45
believe that clinical trials in India are of ethical concern, as clinical trials' regulations
are uncertain and inappropriate. Also, there is no such compensation to the person
who gets injured during the tests. Another concern showed on the marketing done by
the companies in India as they opt for an aggressive approach which misleads the
consumers. It is also getting difficult for the industry to fulfil the rural area's needs,
and it remains untapped due to poor economic conditions.
3.1.3: GENERIC MEDICINES
Warren A. Kaplan (2012) studied what more found that the various “policies to
promote the use of generic medicine in low and middle-income countries
(i.e.LMIC)”. According to the study, generic drugs on an average have been priced
2.6 times lesser than the originator, i.e., patented drug and thus turn out to be
affordable for LMIC. The study aims to highlight the barriers of demand and supply
of generic medicines. Another objective of the study is to analyse the nature,
existence and length of the evidence for successfully implementing the policies for
promoting generic medicines policy. The researcher has followed the Preferred
Reporting Items for Systematic Reviews and Meta-Analysis (PRIMSA) guidelines
and reviewed near about 4994 articles, 315 (i.e., 6.3 per cent) full-text publication
related to the policies for generic medicine. Out of 315, the 236 (i.e., 75 per cent)
publications dealt with generic medicine policies of high-income countries and 79
publications (i.e., 25 per cent) dealt with policies in LMIC's. The study concluded that
the impact of pro-generic medicine policies in LMIC's suffers more than that in
higher-income countries. India and Brazil, due to its trade policy are an exception to
suffering impact in LMIC's. The study has light three issues. Firstly, a regulatory
system of medicines functioning should be adopted to enhance the confidence of the
stakeholders. Second; a competitive market for medicines should be developed.
Thirdly, an appropriate mix and alignment of financial incentives to be given in the
absence of health insurance among prescribers, dispensers, and consumers supports
generic medicines' uptake. Bera and Mukherjee (2012) reviewed the importance of
generic drug in India and found that these benefit consumers. While studying
literature, they indicated a study by the World Health Organization (WHO) showing
major concern regarding an average Indian's ability to afford his medical bills,
46
especially prescription drugs. The Asian countries are still suffering from certain
diseases due to lack of quality medicines and health care facilities. WHO has stressed
the need for more effective check-in India by the apex committees like Drugs and
Therapeutics Committee (DTC) and Pharmacy and Therapeutics Committee (PTC) in
India's hospitals. These committees can help the patient to obtain the required drugs at
an affordable cost. The Planning Commission also accepts the growing problem of
costly health care, especially prescription drugs. The Government, via its Ministry of
Health, recently made it compulsory for medical practitioners to write alternative
cheaper medicines and their costlier cousins, better referred to as branded ethical
drugs. The Department of Pharmaceuticals under the Ministry of Chemical and
Fertilizers plans to include provision for generic medicines in the final draft of pricing
policies of drugs in their final draft of the pricing policy. Like Gujarat, Rajasthan,
Maharashtra, Madhya Pradesh, many states have already opened up government
stores to provide generic drugs and branded drugs at a stabilise price. India's
Government also plans to “provide free medicines to all”, especially poor rural and
urban areas. Khajuria and Khajuria (2013) similarly discussed the impact of various
marketing strategies of generic medicines manufacturers. The study based on the
questionnaire and interview responses of 34 postgraduate and 21 graduate physicians.
The researcher also took the choice of physicians regarding generic and branded
medicines into account. The results depicted that graduate doctors preferred more of a
generic drug, whereas postgraduate doctors preferred more branded drugs. The
significant difference between the response of graduate and postgraduate doctors were
basically because of the practice demography. Graduate doctors found to be generally
practising in rural or semi-urban areas, and postgraduate doctors in urban areas. It's
noted that an enormous part of India's population resides in the rural setup, and these
responses have been a great encouragement to generic medicine manufacturers. Thus,
to gain the benefit of promotions, it is utmost important to understand physicians'
preference. It becomes most important as these practitioners are the guiding force
behind these medicines' final sale conversation. Amudha, Alamelu, Cresenta and
Badrinath (2015) in their study, specifically highlighted the ethical challenges faced
by the pharma industry. The pharma industry's promotion activities performed by
sales personals of manufacturers and advertisement of the product initiated through
electronic or print media. Authors describe ethical advertisements should not make
47
erroneous claims and should maintain the decorum. The reputation, creditability and
success of the company depend largely on its ethics it adopts; hence ethical
advertising is critical. There are three major problems which phased in namely fake
advertising, fraud and forgery. There are greedy global and Indian laws that try to
curb the problems mentioned above for the pharma industry's gradual and constant
growth and development. Many technological innovations have ensured that
pharmacists and manufacture corporates follow a healthy and ethical code of conduct
in advertising and promotional methods.
3.1.4: IMPORTANCE OF GENERIC DRUGS
Generic drugs shows a vital part of the Indian economy, along with the
Pharmaceutical Industry. The Pharmaceutical Industry has travelled a long journey of
struggle because of the Intellectual properties protection acts. In the year 1970,
introduction of the Indian Patent Act 1970, according to “which formulating a drug
can be patented but not the product”. It became a thrust to the slow growth of the
pharmaceutical industry. This era witnessed a significant increase in the sector
resulting in various benefits to the country. Bera Ajoy (2012) opined the generic
medicines tend to be less expensive than the brand name medicines. The cost of
production is comparatively cheaper. It generally happens because of no significant
investment in the R&D of the drug, which minimises the cost of production; hence the
profit margin becomes low. Generic drugs are 20 to 80 per cent less to that of brand
name drugs. Both developed and underdeveloped countries use a day's generic
medicines to use generic drugs for acute diseases like AIDS and Cancer. In a country
like India, the World Health Organization (WHO) has shown significant concern for
Out-Of-Pocket (OOP) medicines expense. According to WHO, “3.2 per cent of
Indians will be below the poverty line because of their medical bills. Around 39
million Indians every year are pushed below the poverty line because of the critical
health conditions which prevail in the country. Usage of generic medicines in place of
brand name drugs will be a saviour in health and their pockets”.
The Government of India worked so that there can be an increase in generic drugs'
consumption. The rise in utilisation of drugs will be sustainable to the ultimate
48
individual the medicines' payer and will also save their expenditure on expensive
drugs. According to one study, “switching prescriptions from brand name drugs to
generic drugs could lead to an 11 per cent reduction in annual overall drug costs, a
considerable amount given that prescription drug spending expected to reach US$ 516
billion in the next ten years. Correspondingly, IMS Health, a company that provides
market intelligence to the pharmaceutical and healthcare industries, has estimated that
a one per cent increase in generic utilisation would yield almost US$ 4 billion in
savings”. Warren A. Kaplan (2012) highlighted that the generic manufacturers also
act as a blessing to the Low- and middle-income countries (LMIC's) and
underdeveloped countries as the generic medicines' price on an average 2.6 times less
costly to that of originator medicines. With the usage of generic drugs, there can be
massive potential for saving, which will help develop the country's economy.
3.1.5: GOVERNMENT SUPPORT TO GENERIC DRUGS
The Department of Pharmaceutical (DoP) under the Government of India (GOI) has
its vision to develop the industry as the primary hub from end-to-end drug discovery
by the year 2020. To pave the path for the growth and development GOI have
introduced specific policies and incentives which are as follows: Sood (2019) and
Department of Pharmaceuticals (2017) observed that “to promote domestic drug
manufacturing, the Government has corrected the duty structured in the medical
device industry”.
• “The customs duty has been brought down to 25 per cent and full exemption
of Special Additional Duty (SAD) on the medical device's raw material”.
• “The primary customs duty on specific medical devices has increased from
five per cent to 7.5 per cent to boost domestic manufacturers”.
• “Custom and excise duties of HIV/AIDS, TB, Malaria are fully exempted”.
• Umesh Chandra (2016) “observed that to upgrade technology zero duty to be
levied on the imports of capital goods for technological enhancement”.
• “100 per cent FDI is allowed through the automatic route of greenfield
pharmaceutical projects”.
49
• “The approval time for new facility and NOC is also reduced to two weeks
from 12 weeks”.
• Singhal G.L (2011) highlighted that “to promote generic medicines, the
Government has initiated the scheme of "Jan Aushadhi Store" so that the
supply of generics is more to the masses than costlier patent medicines”.
• Department of Pharmaceuticals (2017) observed “around 683 Jan Aushadhi
Stores in operations on December 31, 2016”.
• Indian equity brand foundation (2016) found that “in 2015 the expenditure
incurred by the Government on health care was US$ 30.4 billion”.
• IBEF (2020) mentioned that “the financial year expenditure is recorded to be
US$ 45.96 billion”.
FIGURE 3.3: INDIA'S GOVERNMENT EXPENDITURE TOWARD

HEALTHCARE (US$ BILLION)
FY 2020 45.96
FY 2019 41.42
FY 2018 34.91
FY 2017 35.07
FY 2016 23.58
0 5 10 15 20 25 30 35 40 45 50
Expenditure
Source: IBEF, 2020
50
3.2: MARKETING IN THE PHARMACEUTICAL SECTOR
Sanyal Nath Shamindra (2011) explores its original image on branded generic drugs'
brand equity. The researcher has hypothesised that the country's actual image is an
influencing component of brand equity, i.e. brand strength and brand awareness. An
empirical investigation carried out among professionally similar respondents, i.e.
doctors of different categories in Kolkata, India. The results show a high correlation
between the variables, i.e., that country of origin image and brand equity. The study
has explored that in India, physicians prefer the pharmaceutical brands that coined
from a rich country in research and development, maintains a high level of quality,
and maintains an image of newer drug development and prestige in drug
manufacturing. In this particular case, the country with an image plays a crucial role
in establishing its users' overall brands. The researchers concluded that the young and
junior doctors would prefer country of origin image at any point in time.
On the other hand, expert consumers, i.e., senior and experienced medical
practitioners only rely on the country of origin trait when the product quality is not
very prominent. Managers, in this particular case, categorise the physicians and set
their marketing communication strategy accordingly. The marketers cannot easily
regulate this factor of the country of origin image upon the consumers. Still, to
overcome the power of well-known brands in shaping brand image in consumer
minds, marketing strategies made accordingly. Mishra, Vishnu Prakash (2013) tried to
figure out the changes the pharmaceutical sector has witnessed over the years. In the
Patent Act regime, the Indian pharmaceutical industry has seen lots of mergers and
acquisitions with MNc's like Glaxo and Smithline, Zydus and Cadila. It increased
competition in the Indian market the companies to survive in the changing
environment have to adopt various marketing strategies.
There are different strategies applied to different categories of product. Targeted

advertising is used for the over the counter OTC products, whereas concept selling
strategies evolved over the years for medicinal and pharmaceutical generic drug
segments. The article also throws light on the various marketing strategies and their
outcomes for Indian pharmaceutical sectors. The study has revealed the marketing
51
strategy is the marketing representative's collective efforts, whole seller, and retailers.
The pharma sector can serve its core customer, which is the doctor. The customer is
said to be the 'King' of the market and is now treated almost like a 'God'. The
selection of “four Ps of marketing, i.e. product, price, promotion, and place”, is done
with the most practical combination of marketing activities to ensure success. The
company selects the distribution channel so that the doctor's prescription can be
honoured with a proper supply of medicines in every single territory of urban and
rural markets. Thus, the marketing mix elements act as a substitute for one another to
a certain extent. In this whole marketing, process intermediaries work as a vital role in
making medicines available in the marketplace. There is various unethical marketing
also, which needs a continuous check by the government. Yu Yu (2014) observed
generic drug in the market, the competition it faces in the first three years after
expiring the patent. The researcher also examines the competitive advantage of
entering the market first, as numerous generic companies arrive in the marketplace
soon after the patent expiry.
FIGURE 3.4: COMPETITION IN THE PRESCRIPTION OF

PHARMACEUTICAL MARKET
Source: adopted from Yu Yu (2014)
According to the above diagram, it is evident that many generic firms are there in the
market. The researcher identified logistic network through which the drugs supplied
52
to the consumer of the drugs. It also throws significant light on the considerable role
of wholesalers in the supply of these drugs. The figure below summarises the USA's
drug distribution process for wholesaler's product liability, insurance, the reputation
of the generic companies, the level of profit margin, and incidents of drug product
recalls considered as most essential attributes.
FIGURE 3.5: THE SUPPLY CHAIN THROUGH WHICH DRUGS ARE

DELIVERED TO CONSUMERS
Source: Data percentage in dollar sales, adopted from Yu Yu (2014)
The researchers have found out that the first to enter the market has a better advantage
due to early entry of 80 per cent high market share compared to the second company
entering the market. When compared further to the entrant, have a higher market
share that is 225 per cent than the third entry. O'Connor (2014) aims to review the
advancement of pharmaceutical industry through government legislation in the USA.
The researcher seeks to provide an inclusive review of pharmaceutical marketing
practices and provide direction to the emerging pricing and promotional approaches.
As a result, the author concluded that there is immense pressure on the
pharmaceutical industry to grow in a flat market with limited opportunities. The
companies have to come up with their most effective strategies. To survive in a cost-
53
conscious, highly regulated industry, pharmaceutical companies must influence
approaches to build associations with physicians with useful marketing tools to offset
changing industry dynamics' financial impact. The companies that will be successful
are those that understand all the dynamics involved in making a sale. Providing
information alone will not suffice; instead, it is through the streamlining of marketing
efforts may set a company apart. To succeed and excel, it is essential for the
pharmaceutical companies must sustain a positive public image, transparency of a
certain degree and excellent customer relationship management. The pharmaceutical
industry must also properly evaluate the market environment; the right balance
between pricing and contracting must be done after identifying the costs and benefits
of alternative pricing strategies. K, Anusha (2017) presents how the pharmaceutical
industry should plan its sales and manage the marketing strategies to become global
leaders. Author, the pharmaceutical industry and its products should help cure the
patient of a disease or at least improve their conditions. The company takes care of
selling product as it is specialised and technical nature of the job, whereas; the
logistics are taken care of by the distributers. The paper is highlighting the appropriate
marketing mix strategies to be adopted while launching a product. The product is
designed as per the needs of consumer health, dosage, delivery, name of the drug,
competitors in the market, and ultimately, the product's unique selling point. The
price answers the consumer's sensitivity towards it, price structure as per the
distribution channel and competitors pricing policy. The place helps in the availability
of the drug and the access of distribution channel, the sales force needed and what
competitors do. Finally, the promotion policies made to market the message to the
target market, the media of promotion used to communicate and how the competitors
do. Its concluded that the industry could benefit not only by drug discovery but also
by controlling the product management process.
3.3: MARKET SEGMENTATION
Khajuria, A (2013) has undergone a study to identify the numerous marketing

strategies adopted by the pharmaceutical houses to influence the Physicians on
prescribing drugs. The author has highlighted 17 different promotional methods
adopted by the pharmaceutical houses; he also developed a questionnaire and
54
presented 34 postgraduate doctors and 21 graduate doctors. The responses recorded,
and weightage given. The choice of branded products and generic products also asked
from them. As the results depicted that graduate doctors preferred generic medicines
over the branded once while the postgraduate preferred vice versa. The postgraduate
and graduate doctors showed the same preference to the product's cost, publications
featuring products, Seminars, and Broachers and Booklets were more critical factors
than mailing information about products, gifts and prints and broadcast ads were less
important. Therefore, pharmaceutical companies should plan marketing
communication strategies accordingly.
Maruthi Haluvarthy Nagarajappa (2020) analyses customer behaviour towards the Jan
Aushadi Scheme (Generic Medicines) launched by the Government in 2008 to
provide affordable generic drug across the country. As a result, the availability, cost,
quality and doctors prescribing generic medicines have acted upon the enhanced
consumption of Jan Aushadi (Generic Medicines). The most important finding of the
study was that patients who consume generic drugs also suggest others. Thus, it is
evident from the survey that generic medicines are also promoted by pharmacists,
doctors and consumers word of mouth. Y, Keerthana (2020) conducted a perception
study of consumers towards the consumption of generic drugs. Indian Pharmaceutical
Industry has established a prominent existence in generic markets, globally. It is very
well known for catering to high quality and low-priced drugs—research conducted in
Vijaywada, Andhra Pradesh of a total sample size of 150 respondents. The study's
finding states that generic drugs' effectiveness is equivalent to that of branded
medicines and involves the same active ingredients as branded drugs. The research
conducted proves that 80 per cent of the survey respondents are familiar with generic
drugs and their features. The essential characteristics and usage of the generic
medication are conveyed mainly through media and the internet. It also found that
giving information's to the patients of effectiveness and safety of choosing a drug
plays an encouraging role in promoting drugs.
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3.4: PROMOTIONAL MIX
World Health Organization (WHO) in its Ethical criteria for medicinal drug
promotion, Geneva 1988 defines promotion of pharmaceutical as “All informational
and persuasive activities by manufacturers and distributors, the effect of which is to
induce the perception, supply, purchase and use of medicinal drugs”.
Jain, S. (2011) has done an empirical study on the importance of promotional tools for
various prescribed drugs in the pharmaceutical market. The drugs have been classified
into two classes general medicines and lifestyle medicines. The researcher took
primary research on a sample size of 49 managers from 26 pharmaceutical companies.
All 22 promotional tools were identified through secondary data out of which 14 were
traditional tools, and eight were innovative tools. Further, a questionnaire developed
in two parts, one based on demographic condition and the type of medicine—the
other based on information relating to different medical classes' different promotional
strategies. As a result, it was made clear that a different promotional approach should
be used for the various medical type.
TABLE 3.1. TRADITIONAL TOOLS
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TABLE 3.2: INNOVATIVE TOOLS
Source: Adopted by Jain,S. (2011)
Kotler and Armstrong (2013) defined the promotional mix as a communication tool
used to inform the target market customers about goods and services to facilitate the
exchange process. It is concerned with informing, educating, persuading and
reminding customers. It is a supporting activity that includes displays, trade shows,
advertising materials, contents, and trade promotion. Promotion is the most visible
element of the marketing mix. Angela B (2018) identified the various internal and
external risk factors associated with the pharmaceutical enterprise's marketing
communication activities while introducing a new product in the market. The research
is based on the professional and economists' publications in the field, outcomes of
interviews, the director of pharmaceutical manufacturers, wholesalers, pharmacists,
etc. It has been marked that the risks factor associated may affect the outcome of
promoting the new product. In conclusion, if risks are managed and planned to
minimise the enterprise investment cost will achieve the program goals for promoting
new products. The optimal risk management strategy helps the enterprise avoid risk,
transfer or reduction in danger, and enhance risk-taking. Panigrahi. A (2018) tried to
apply “Integrated Marketing Communication” (IMC) in the pharmaceutical industry.
The author divided the promotional tools of pharmaceuticals into two phases out of
the clinic and in the clinic. These include leaflets of information, product samples,
gifts, camps, seminars, advertisements, etc. The paper also identifies promotional
tools involved in marketing pharma products: advertising, personal selling, public
relations, direct selling, and sales advancements. There are specific challenges which
are faced by the pharma industries while promoting or planning marketing strategies
57
of the products. These challenges may be regulatory barriers, the readiness of doctors.
The integrated marketing effective for promoting a new product can be personal
selling, sponsorships, sampling, internet-based drug promotion and electronic
detailing. With these tools, the law will also be protected, and marketing can also be
done. Jacob (2018) reviewed the practices for promoting drugs. The promotion of
drugs is an essential and vital part of the industries. All the pharmaceutical companies
invest a fortune of their resources and generated revenue in the promotion of drugs.
The promotional tools aim to create profit for the manufacturer and play the role of
information provider to the physicians and the customers. The promotions must be
done with ethical boundaries and rules in achieving primary objectives. The problem
arises when these tools are manipulated to create unilateral gains, i.e. only thinking
about the company's profits and not taking care of the patients. The pharmaceutical
industry is well known for providing global health and safety and has enormous
revenues by selling drugs. The company is supported and guided by numerous
guidelines given by WHO and other government bodies to maintain transparency and
accountability. The author concludes by highlighting that if there are delusional
promotional activities or practices, it may ruin the company's image and trust.
Lexchin (2019) opined the “promotion of medicines in low- and middle-income
countries (LMIC)”. The research is based on literature review; maximum studies are
cited and referred from Indian subcontinents and the Middle East. However, the paper
aimed to identify the various promotional mix strategies adopted by the
pharmaceutical companies of LMIC. The author has thrown light on different
promotional activities undertaken by the companies are as follows: Visits from
medical representatives, gifts to doctors, sample distribution, advertisement in
journals, brochures and sponsorships of conferences for doctors is done very often. It
is clear and evident that a tremendous amount of money is spent on the
pharmaceutical industries' promotional activities. The author has also highlighted the
negative impact of excessive promotions generally ignores the adverse effects of
drugs.
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3.4.1: PROMOTIONAL MIX TOOLS
Kotler, P (2014) identified public relations as a vital technique for mass-promotion. It

can be used to promote “products, people, places, ideas, activities, organisations and
even nations”. It's about developing healthy and positive relations with the various
companies of the target market to build up 'corporate image' and manage roamers,
stories and events unfavourable for a company. Public relations (PR) units of a
company have to perform many or all of the following functions:
• “Press relations or press agency”.
• “Product publicity”.
• “Public affairs”.
• “Lobbying”.
• “Investor relations”.
• “Development”.
Ljupka Naumovska (2016) analysed public relation as a tool for the high level of
transparency in its internal and external communication. He has interviewed the
company's representatives to know their view on public relations over advertising in
marketing strategies. The results are analysed using theoretical and quantitative
research. The results were so that the marketing representatives have detained their
attention on public relations for communications. They have also shown increased
interest in public relations as a marketing tool and decrease advertising usage. The
primary reason behind the shift is its cost and efficiency, both in favour of public
relations. Hence the author concludes that public concern is a more trustworthy and
efficient form of marketing communication marketing mix that companies should
practice today. The future comprises the same five elements, advertising, sales
promotion, public relations, direct selling and personal selling. All the company needs
to do is change the focus from advertising to public relations to achieve better
marketing and business results.
Kotler, P (2014) explains sales promotion as comprised of additional short-term

inducements, to the primary benefits offered by the product or service, to boost a
product or service's purchase or sale. It involves a wide variety of promotion tools
59
specially designed to stimulate a quick or more robust market response. These tools
are used manufacturers, distributors, retailers, trade associations and non-profit
institutions. It can be targeted towards the consumer or final buyer, business
customers, the trade or retailer, and its sales force. There four types of sales
promotion.
• “Consumer promotions include money-off, coupons, premiums, contests and

others”.
• “Trade promotions range from special discounts, free goods and loyalty
bonuses to training”.
• “Business promotions include many of the same tools used for consumer or
trade promotions such as conventions and trade shows and sales contests”.
• “Salesforce promotions include bonuses, commissions, gifts and
competitions”.
Many tools are identified which can be used to accomplish sales promotion
objectives. The promotion designer should consider the type of market, the sales
promotion objectives, the competition, and each instrument's cost-effectiveness while
selecting the tools. Some of the commonly used tools are:
• “Samples: Offers to consumers of a trial amount of a product”.

• “Coupons: Certificates that give buyers saving when they purchase a
product”.
• “Cash refund: offers a refund of a specific part of a product's purchase price to
consumers, once the purchase proof is sent to the manufacturer”.
• “Price packs: Reduced prices that are marked by the producer directly on the
label or package”.
• “Premiums: incentive to buy a product is given to the customer either free of
cost or at a low price”.
• “Advertising specialities: Useful articles imprinted with an advertiser's name,
given as gifts to consumers”.
• “Patronage rewards: Company provide certain cash amount or awards to the
customer on regular use of a particular company's products or services”.
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• “Point-of-purchase (POP) promotions: Displays and demonstrations at the
point of purchase or sale”.
• “Competitions, sweepstakes, lotteries and games: Promotions that offer
customers the chance to win something in a form by luck or extra effort, cash,
goods or trips”.
Kotler, P (2014) defined advertising as any paid form of non-personal form of

communication, which can be done by presenting and promoting ideas, goods, or
services through mass media such as newspapers, magazines, television, or radio
identified sponsor. Most business firms use advertising. It is used to stimulate a
response from the target audience. The answer developed through advertising may be
perceptual. Any firm to achieve a specific communication task advertising objective
needs to be set up, classified by primary purpose, informing, persuading, or
reminding. There are four types of advertising objectives:
• Informative advertising: a new product or feature and to build immediate

demand by introducing the product.
• Persuasive advertising: developing selective demand for a brand by

persuading consumers about the quality of the product.
• Comparison advertising: a comparison of one brand directly or indirectly to

other brands.
• Reminder advertising: advertising used to keep consumers thinking about a

product.
Amudha, R (2015) highlights the extreme importance of ethical codes of conduct to

be followed while advertising pharmaceuticals products. The company's success
creditability and reputation entirely count on how honest it carries out its advertising
work. Advertising can be done directly to consumers or sale promotion involving
directly to physicians, health care personals, and pharmacists. The promotional
activities are generally performed by the sales workforce hired by pharmaceutical
61
manufacturers, and advertising is done electronically or in print media. The paper
displays various laws and regulations for advertising and ethical practices to be
followed. The author has also come across multiple problems of promotions, namely
fraud, fake, forgery. To create a preventive, anti-fraud environment and proactively
face the risks, it has become a necessity of the present World, and laws are framed in
all the developed markets for the pharmaceutical companies to follow. The
enhancement of technology has forced and bided the pharmacists and corporates with
robust ethical code in advertising and promotional tools used. The society always
expects “a pharmacist to be ethical as the people believe them as health care
professionals”. Bhutada S. Nilesh (2015) research analysed pharmaceutical product
advertisement's response when done directly to the consumer (DTC) and how
particular gender endorsers affect consumers' buying patterns. The study was done in
the U.S. and a sample size of 514 adults was taken. After the analysis, the result
showed that consumers have a positive attitude towards the ads endorsed by experts
and celebrity endorsers compared to non-celebrity endorsers. However, there is no
significant difference found between the experts and the celebrity endorsers. At last,
the gender difference also shows no significant influence on the effectiveness of the
ads. Kotler, P (2014) defines personal selling as an interpersonal arm of the promotion
mix. Advertising consists of one-way, non-personal communication with target
consumer groups. In contrast, personal selling involves two-way personal
communication between salespeople and individual customers it can be face to face,
by telephone, through videoconferences or by other means. According to him,
personal selling can be more effective than advertising. Salespeople can probe
customers to learn more about their problems. They can adjust the marketing offer to
fit each customer's unique needs and negotiate terms of sale. They can build long-
term personal relationships with key decision-makers. According to Kotler, P (2014)
it consists of communications directly with carefully targeted individual customers to
achieve an immediate response and enrich lasting customer relationships. Direct
marketers communicate directly with customers, often on a one-to-one, interactive
basis. Marketers tailor their marketing offers and communications to the needs of
narrowly defined segments or even individual buyers. Beyond brand and image
building, they usually seek a direct, immediate and measurable consumer response.
Direct marketing has undergone a dramatic transformation over the years. Early direct
62
marketers used catalogue companies, direct mailers and telemarketers to gathered
information about customer names and sold their goods mainly through the post and
by telephone. But today, due to rapid advances in database technologies and new
marketing media, especially the internet and other electronic channels, has boosted
the potential of direct marketing. The primary forms of direct marketing include
personal selling, telephone marketing, direct- mail marketing, catalogue marketing,
Direct-Response Television (DRTV) marketing and online shopping.
Rizwan Raheem Ahmed V. P (2014) developed a compelling mix of communication/

promotional mix in the pharmaceutical industry's marketing, Pakistan. This task
undergoes by identifying the target audience, communication objectives, message
designing, delivery method, and collecting feedback. The marketing functions of
pharmaceutical industries involve a considerable task force. The promotional mix
includes sales promotion, public relations, direct selling, personal selling and
advertising being the primary tool to pursue the marketing objective. The author has
divided the promotional mix into two categories in-clinic communication mix and
out–of–clinical communication mix. Conclusion, the promotional tools used in
isolation from each other to change the messages and formats according to the
requirements. Still, now a day's all the tools work in connection to another, thus
repeating the same message impact as the previous one. This helps the product in the
positioning of the product. The in-clinic promotional tools and out of clinic
promotional mix strategies help convince the product and the patients to buy the same
product, which creates a link between product chain and prescription chain, the
ultimate marketing object.
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FIGURE 3.6: CLINIC PROMOTIONAL MIX STRATEGIES
TWO APPROCAHES OF PROMOTIONAL

MIX
IN- CLINIC OUT-OF-CLINIC

COMMUNICATION
COMMUNICATION
DETAILING
AID LEAVE BEHIND DIRECT SEMINARS/SYMP SPONSORSHI
MATERIALS MAILERS FILM SHOWS
OSIS/ROUND P
TABLE
PUBLIC
ADVERTISEMENTS RELATION
Valeriy Viktorovich Nikishkin (2013) examined how wholesalers and retailers

influence patients' purchase decision-making. Thus, the pharmaceutical companies, to
stimulate sales they are implementing pull and push strategies. Whenever the
consumer wishes the outlets (pharmacies) with the prescription, the retailers need to
maintain the stock. The public relations boost the wholesalers and the retailers' ability
to influence the purchasing decision to be made in favour of the company. In
conclusion, it is highlighted that manufacturers' success largely depends on the
communication with the target group who tend to influence the user's purchase
decision.
FIGURE 3.7:
Source: Valeriy Viktorovich Nikishkin (2013)
64
Guzman (2015) analyses how direct to consumer advertising helps a group of
Hispanic (Spanish) consumers in the United States. A comparison between the two
major pharmaceutical campaigns was made in the English language, and Spanish
language commercials and their outcomes were recorded. Advertising in Spanish
language and informing the Hispanic group about the ethnic character of medication
helped develop medicalisation trends in the consumers. In conclusion, the boost of
sale was seen with both English and Spanish commercials. It helped in the demand for
prescription drugs with affirmative drugs in lifestyle. The direct to consumer
advertisement resulted in more of the individual's transformation into patient
consumers who demanded the medicines as per prescription. It also reduces the
significant gaps, which was evident between the racial and ethical group of Hispanics
and the rest of the US. The awareness towards the excess of healthcare products and
services was also witnessed. Dhara Parekh (2016) opined the World is going digital
and pharmaceutical companies' needs to do so. The paper reviews pharmaceutical
companies' stance, as per the website's usage and adaptability of digital marketing
platforms. Some giant foreign companies like Pfizer and Jonson's and Jonson have
shown active participation on social media; in fact, Jonson's and Jonson was the first
companies to start a YouTube channel. According to the study, around 95 per cent of
pharmaceutical companies understand the need for websites, yet some of them are
more updated, and some are not. 50 per cent of the pharmaceutical sector realise the
necessity of online responses but cannot determine its proper uses. The adaptability of
digital platforms will give an edge to the pharmaceutical industry in the
implementation of appropriate marketing strategies and also make it a two-way
communication than one way or traditional way.
3.5: PERCEPTION OF HEALTHCARE PERSONALS AND MARKETING

ANCHORAGES TOWARDS PHARMACEUTICAL PROMOTIONAL MIX
STRATEGIES
3.5.1: HEALTHCARE PERSONALS
Handa Meenakshi (2013) tries to figure out physicians' perception of the

pharmaceutical companies' promotional strategies in India. The pharmaceutical
65
companies spend a lot on the various promotional strategies to influence the
physicians towards their product. Primary research was conducted considering a total
of 115 physicians which were the respondents to the study. The study was confined
with the influence of promotional tools adopted by the companies such as promotion
by educational programs on prescription, gifts on prescription, promotion by the
medical representative on prescription, advertisement on prescription, samples on
prescription, other activities on prescind other of the study activities made it evidently
clear that the of promotion by educational programs on prescription has got the
highest rating resulting that the conferences and symposia have been indicated as the
major promotional tool influencing the physician's prescription behaviour. It also
indicated that the prescription's promotional strategies' influence depends more on the
working environment or types of the hospital they work. In contrast, some showed the
influence of demographic conditions also. Kasliwal. N (2013) states that prescribing
behaviour is a dynamic and complex process involving the intermediate customers
who follow the norm of reciprocity as one of the fundamental guiding principles for
taking decisions. The aim of this study was to find out the impact of psychosocial
factors on different age groups and different area of speciality of doctors in Rajasthan,
India. A total of 431 doctors' responses were gathered through the questionnaire
method from different cities of Rajasthan. The results showed that the Pediatricians
rated psychosocial (nonmedical) factors as the least important factors influencing
prescribing as compared to other specialities. Moreover, senior doctors who are
looked upon as KOL (key opinion leaders) to make rational prescribing decisions
based on clinical facts also rated these psychosocial factors as less influencing as
compared to younger doctors. The study also revealed that the impact of these
psychosocial factors varies across different demographic characteristics of the doctors
and the young doctors are more influenced by them as compared to the senior doctors.
The study results provided a framework to the pharmaceutical managers to segment
and targeted different profiles of doctors according to their demographic profiles and
avoided any wasteful expenditure, time and effort in interacting with their transitional
customers. Srivastava, V. (2014) identified the prescription behaviour of physicians
towards the offers, advertisement and medical representatives, educative promotional
tools, promotional policies and drug efficacy. It is a study with primary data with 189
physicians as respondents to the study. It is being identified that 20.2 per cent of the
66
dependent variable on offers, advertisement and medical representatives. Dixit, R.
(2014) explored the various drug promotional activities that are considered a vital
Source of information and influence medical professionals' prescribing behaviours.
For this, a questionnaire of 156 respondents has filled, i.e. 58 doctors, 20 dentists, 32
interns and 46 pharmacists. As a result, it was concluded that the pharmaceutical
companies spent a fortune in promotional activities like giving a gift to the doctors,
sponsoring conferences, arranging tours and incentives yet many times it has
considered that the companies tend to hide the safety clauses of the medicines or the
drugs and also promote irrational doses and give false claims. It has also pointed out
that it is the responsibility of health care professionals not to be involved in profit-
making strategies and should not blindly trust the drug information provided to them.
There is a need for laws and regulation to identify and penalise the unethical practices
prevailing in the pharmaceutical market. Rizwan Raheem Ahmed J. V. (2016) here
has done empirical research on the mediating and marketing factors that influence
physicians' prescription behaviour. To conduct this study, he has developed a
questionnaire-based survey conducted from around 350 respondents a mix of
graduates and postgraduate's doctors working with both private and public hospital in
Karachi, Pakistan and the pharmaceutical personnel of national and multinational
companies operating in Pakistan. The questionnaire was based on the framed
hypotheses, which was further tested with the help of ANOVA. To analysis, its
certain base variables were identified, which was the research base, such as scientific
pieces of literature, promotional material, regular follow-up, conferences, and
personalized activities. The findings show a relation between the different variables
and strong public relations of a medical representative, and the brand image of a
company or product strongly reflects on the prescription behaviour of doctors. This
research is a huge help to the pharmaceutical companies to take up better marketing
strategies so that the mediating effect remains intact.
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3.5.2: MEDICAL REPRESENTATIVES
Mahmoud Abdullah Al-Areefi (2012) explores the view of medical representatives

towards the promotion technique in Yamen. The “in-depth interview technique” was
used to explore how the various promotional techniques like educational materials,
symposia, scientific meetings, gifts and incentives, commercial offers and free
samples help promote and boost the sale of the company. The participants were
characterised with their experience, type of company's; original company, Generic
company and country of origin. In conclusion, the promotional techniques are widely
used and are enormously consolidated in the pharmaceutical companies' marketing
strategies used by the medical representatives. As interviewed, most of the MR's did
not have any awareness of any code of conduct; they performed as per the companies'
strategies. The drug companies preferred providing scientific information about the
drugs, whereas the MR's from generic companies were not in support of any scientific
information. The free samples played an important role in promoting the
pharmaceutical product, though they are not for sale. The author believes that bonus
and commissions also played an important role in promotional activities. Yet, he
suggests that the government establish ethics and laws to promote drugs and monitor
its compliance by pharmaceutical companies and MR's of Yamen. Goyal, R. (2013)
reviewed the medical representatives of Rajasthan and how they influence doctors'
prescription behaviour. The articles are though based on secondary data where the
author explains how the medical representatives give partial information's about the
drugs to influence the prescription behaviour of healthcare personnel, the medical
companies generally does this by giving gifts, incentives, arranging conferences,
seminars, vacations and sponsorships to the doctors. The author concludes that these
practices may result in unethical marketing and may also affect the patients'
prescriptions. Syed Asim Shah (2015) evaluated the pharmaceutical industry's
persuasion promotional strategies on the prescription of drugs. A sample size of 600
health consultants with different specialisations was collected from various hospitals
of Pakistan. A five-pointer liker was collected, and a co-relation regression analysis
was done. As a result, the promotional mix tools do influence the consultants while
prescribing medicines and the continues promotional expenditures, reminder gifts,
drug samples, academic detailing and medical, educational programs are significant
68
and have positive results on prescribing behaviour. Fickweiler F (2017) systematically
reviewed the prescribing behaviour of physicians after their interaction with the
pharmaceutical industry's sales representatives. A secondary database was searched
and used from 1992 to Aug 2016. The data synthesis revolved around the increase in
prescription drugs due to the interaction and persuasion of pharmaceutical sales
representatives. The interaction also involves conference travels, symposia, research
funding, free samples and gifts. The physician pharmaceutical industry and sales
representative's interaction helps develop trust and years of the relation between them.
It affects physician behaviour while prescribing and sometimes may result in
prescribing dangerous company drugs; thus, there is a need for policy implementation
and education for the code of conduct towards interaction. Kok Leong Wong (2018)
studies the behaviour of salesperson or medical representatives of the pharmaceutical
industry towards adaptive selling, i.e. to have a tailored approach to selling as per the
consumers' needs. The more the salesperson's ability to adopt as per the need of the
consumer the more it will influence the prescription of medicines thus, the paper
focuses on how adaptable selling behaviour is controlled, stimulated and empowers
the salesperson. The study was conducted in Malaysia in a group of 154 participants
from nine pharmaceutical companies. As a result of the promotion participation,
expressing confidence, control, and empowerment helps the salesperson adopt a
positive sales behaviour. Bhatt (2018) did a secondary “study on the influence of
medical representatives in the conversation of doctor's prescription in India”. The
pharmaceutical market is a unique business which targets the doctors rather than
targeting consumers directly. The medical representatives are part of the personal
selling concept and relationship building of the promotional strategies. The promotion
of drugs and the companies' persuasion strategies and proper distribution channels
ultimately result in a positive return on incremental sale, supply, purchase, and
prescription. The companies sell their products through different communicational
strategies. The first and foremost is personal selling. Medical representatives are
hired, and the major work lies with follow-ups continues reminders, and builds
relationships with doctors and chemists. The MR's tries to influence the physicians by
giving gifts, academic journals, conferences, and effectively communicating the
drugs' details and giving regular updates and updated publications to the doctors. The
research concluded that the physicians' effective and positive attitude and behaviour
69
toward prescribing drugs. Winter, E. A (2019) analyses the promotional activities
performed by the medical representatives in order to promote the medications. For
this purpose, a survey method was used to gain information from 266 respondents of
Russian federation participants. The research included chemists, pharmacists and
healthcare personnel. In conclusion, it was found that the MR's largely depend on
regular contact and interaction with pharmaceutical organisations and doctors.
According to the survey, it marked frequency of visiting the pharmacies was one to
five times a week so that the information and demand of products can be analysed.
Though it is also noticed that there is less trust between the pharmacy employees and
MR's thus, the researchers suggest that better relations can be built so that these
activities can be improved. Saswothi, P (2020) performs a quantitative study about
female medical representatives' perception and attitude. The representatives'
responsibility and the activities remain same as male MR's, like organising
conferences for doctors, building relationships, marketing analysis of new products,
feedback, giving samples, a regular visit to chemists, and so on. Thus, for the study,
the primary data was collected from 50 female MR's of different cities of Karnataka,
Maharashtra and Orissa and was supported by secondary data. As a result, there was
no major difference in the response of chemist and doctors towards female MR's
when compared to male representatives. It is also marked that those lady doctors were
found to be more comfortable with lady representatives. The conclusion states that
Indian pharmaceutical markets are evolving with their marketing teams by
introducing female members, and with such promising results, the future will accord
more positive results on female medical representatives. Ligade, V (2020) conducted
a quantitative study to evaluate medical representatives' knowledge and attitude
towards pharmaceutical marketing. The study involved primary and secondary data,
for primary data, a questionnaire was collected from 100 MR's Mumbai, Maharashtra.
The medical representatives of companies have specific jobs to do based on their
knowledge of pharmaceuticals, clinical marketing and selling skills. The information
provided by the MR's to healthcare personnel's so that further sales can be generated.
The study indicates that the MR's are given basic knowledge and training about the
drugs so that they can be fortunate enough in making the sales. The study also
suggests that more scientific knowledge and training should be given to the MR's so
that they may be more successful and effective in their persuasion techniques and can
70
prove as an effective workforce.
3.5.3: CHEMISTS, RETAILERS AND WHOLESALERS
Jamshed, Q Shazia (2010) tried to do qualitative research about the community

pharmacist's knowledge attitude and perception concerning generic medicines in
Karachi, Pakistan. For this purpose, the snowball sampling technique was applied, the
participants were professional and qualified pharmacist doing their practice near
doctors' clinic. The interviews were conducted, recorded and were further analysed by
the author. As a result, the pharmacist knows the generic medicines and has a positive
perception towards them as per their safety, efficacy and cost. The study concluded
that with appropriate knowledge and understanding of generic drugs, the community
pharmacist also highlighted the cost-saving aspect of generic drugs to control overall
pharmaceutical individuals. Sarah Amir Al Akshar (2014) focuses on the limited data
about community pharmacists' perception in the UAE. The study's objective is to
evaluate the practices and knowledge of the pharmacist towards the drug regulation
given by the ministry of health UAE. For this purpose, more than 300 sectional
surveys were done within Ajman and Sharjah's community pharmacist. As a result,
the pharmacist couldn't identify the problem in giving away the prescribed drugs
without any prescriptions. In conclusion, the pharmacist provides pharmaceutical care
service dispensing to the patients and contributes to healthcare. The community
pharmacist also looks forward to facing new challenges in their work to improve the
experiences and capabilities. Suzanne S. Dunne (2014) researched the pharmacist
which were from Ireland. Interviews were conducted on a sample size of 44
communities' pharmacists to identify their views and attitude toward the generic
drugs. As a result, 98 per cent of the pharmacist believed that generic drugs were
more or like the original drugs. In contrast, a small number of pharmacists showed
their reluctance towards generic drugs as they are not manufactured not as per the
same quality of the original drugs. In conclusion, overall community pharmacists
have a positive attitude towards generic medicines, yet some may have concerns
about its implementation about price and substitution. Lack of confidence was also
observed in the general public for the use of generic drugs. Abdallah Q. Bataineh
(2015) conducted a study in Amman and Zarga areas of Jordan; the study aims to
71
identify the “relationship marketing on customer retention of pharmaceutical sectors”.
A direct questionnaire was used to collect data from 500 retail pharmacies, and
hypotheses were developed based on a conceptual framework. The aspects were
customer relationship, developing relationship marketing with the help of
communication, seller expertise, the comparison level of alternatives, cooperation and
dependency on sellers and relationship quality and trust. The analysis showed that the
effect of quality relationship, which further leads to retention of consumers. The study
indicates that with proper communication and relationship channel, the service
provider's trust will enhance. The study also shows a problem when it comes to
trusting the pharmaceutical suppliers for customer retention; thus if the marketing
mangers develop trust between buyers and suppliers the risks and uncertainties
associated can be overcome. The main aim should be to fulfil buyer commitment and
improve the level of satisfaction. Hendrik T. Ensing (2015) mentioned the transitional
phase of healthcare and the role of a pharmacist so that the clinical outcomes during
this phase can be improved is the paper's objective. For this, secondary data was
assessed till November 2014, and a total of 30 studies were found that could meet the
criteria's out of which 15 best studies were taken into consideration. In conclusion, the
pharmacist performs successfully in the involvement at different healthcare intervals.
It is also reviewed that the pharmacist's involvement will reduce the risk during the
transitional phase of healthcare. It is also found that a close-knitted association
between the pharmacist and physicians at all the various stages of hospitalisation is
definitely beneficial to secure the continuity of care. Butterworth Jo. (2017) observed
that a physician's general practice may comprise various roles like educating the
patients, providing drug information and reviewing medication, etc. The author has
reviewed pharmacists' perception in the UK and their roles in general practice and
primary care. For this purpose, a quantitative study was conducted in the UK between
October' 15 to July' 16. Confidential semi-structured telephonic interviews were
conducted. The result showed the influence of training with respect to any
uncertainties and managing them boosted confidence in their role and was beneficial
for predicting the future. The participants understand the work of primary care and
also identifies the difficulties and uncertainties associated with the job. It is also noted
that qualified pharmacists with minimal experience of primary care are also willing to
come up with training and build this opportunity for their near future. Dadhich (2017)
72
observed the perception of chemists towards Over the Counter (OTC) medicines
pharmaceutical marketing, in reference to Rajasthan. The study's objective is to
analyse the impact of marketing mix on the attitude and perception of the chemists. A
sample size of 147 chemists participated in random based sampling technique. The
study resulted in a positive impact and perspective of chemists towards the
pharmaceutical companies' marketing mix strategies. Promotions of OTC products
give an edge to the chemist. The promotions also help to push up the brand of OTC
medicines among the consumers. The product labelling plays a vital role in assisting
the chemist in giving proper counselling to the consumers as per their ailment. In
conclusion, the chemist has a positive perception of the marketing mix of OTC
medicines. Younes Ben Said (2019) aims to identify “the impact of the companies'
sales promotion on consumers purchasing decisions at the community pharmacies”.
For this, an interview was conducted in Riyadh's community pharmacies as per the
result, the respondents there is a positive and strong impact on consumers purchasing
decisions towards sales promotion techniques. Tools like buy one and get two, gifts,
trade promotions, and free samples were considered the most prominent tools. As a
conclusion sales promotion has a positive impact on consumers buying behaviour.
3.6: RESEARCH OBSERVATION
All across the globe researchers and academicians are doing various researches and
discoveries. In the course of finding and analysing the literature review, many studies
came across, which proved to be contributory in my study. The studies have been
conducted across the World like the U.S., U.K. and India. The authors like Jose Nino-
Amezquita, Warren A. Kaplan, Lexcin, YuYu, O’Connor and Genevieve Elizabeth
have been active contributors. A large number of studies were conducted in 2012,
2014, 2017.
With reference to India, there were significant studies conducted for Indian Generic
Promotions by Mishra (2013), Khajuria (2013), Jain (2011), Panigrahi (2018). These
are the following observations identified during the present study through its literature
review:
73
• Studies have highlighted Positive roles played by India's pharmaceutical
industry in the growth and improvement of the health sector across the globe
by fulfilling the global demands. Researchers like Akhtar (2013), Jose Nino-
Amezquita (2017), Nauriyal (2017) and Katara (2019).
• Warren A. Kaplan (2012), Bera and Mukherjee (2012) and Khajuria and
Khajuria (2013), highlighted the need and importance of generic medicines in
lower and middle-income countries, the WHO stress in use of generic
countries because of their affording quality, and at last identifying the view of
physicians on generic and branded medicines.
• Amudha, Alamelu, Cresenta and Badrinath (2015) highlighted the
pharmaceutical industry's ethical challenges in the promotions of their
products.
• Shamindra Nath Saniyal (2011) and Dr Vishnu Prakash Mishra (2013)
conducted significant research about the brand image and competition level
amongst the companies in India. The companies have adopted various
marketing strategies to survive the Indian Pharmaceutical market.
• YuYu (2014) examined the competition faced by the generic medicines while
entering in the market. He has also come up with the competition faced in
prescribing the generic medication.
• O’Connor (2014) and Genevieve Elizabeth (2014) reviewed the United States'
government legislation for the need for cost-effective drugs and various
pricing and promotional approaches to achieve so. K Anusha (2017) also
marked the importance of appropriate marketing strategy to keep in mind the
consumer's price sensitivity.
• Maruthi Haluvarthy Nagarajappa (2020) and Y. Keerthana (2020) analysed
the consumer's perception of generic drugs' consumption and the government's
Jan Aushadi Scheme. (Generic Medicines).
• Jain (2011), Jacob (2018) and Panigrahi, Ashok (2018) identified promotional
strategies and promotional tools available to be used for the pharmaceutical
industry.
• Lexchin (2017) identified the importance of generic medicines and their
promotion in low- and middle-income countries.
74
• Handa (2013) and Kasliwal (2013) identified physicians' perception towards
promotional tools used by pharmaceutical companies.
• Fickweller F (2017), Syed Asim Shah (2015), Ravindra Goyal (2013) and
Mahmoud Abdullah Al-Areefi (2012) worked on the relationship between the
MR's and Doctors built on. A review of sales representatives of
pharmaceutical companies and various tools like symposia, free sampling,
gifts, conference etc. and the response of physicians towards it. The research is
conducted in cities of countries from the UK, Pakistan, India and Yamen
respectively.
• E.A.Winter (2019), Priyadarshani Saswothi (2020) and Virendra Ligade
(2020) worked the basis of product and drug knowledge they have. The
research is conducted in Russia and India.
• Younes Ben Said (2019) studied the influence of sales promotional techniques
used on community pharmacist and how it reflects on consumers' purchasing
decisions.
• Hendrik T Ensing (2015) and Jo Butterworth (2017) reviewed pharmacists'
perceptions towards the primary healthcare and service to society.
• Suzanne S Dunne (2014) studied the attitudes and perceptions of pharmacists
towards generic medicines.
3.6.1: RESEARCH GAP
It is amply clear from the above discussion that many studies have been conducted in
the area of sales promotion, market efficiency, market strategies and branding of
ethical and duly patented medicines. In India's context, especially Madhya Pradesh,
there is a significant research gap in the field of generic drugs promotion mix
strategies. The pharmaceutical sector is widespread to the cities of Madhya Pradesh
like Dewas, Ujjain, Dhar and Pithampur districts surrounding Indore; in fact, the
industry's strategic position has been researched significantly less. The above review
of available literature clearly indicates that very few of such concerted studies have
taken place in the past. However, some fragmented studies have taken place in the
past focusing on one or the other component of the promotional mix in India's
75
different states like Maharashtra, Rajasthan and Karnataka. It is also witnessed that
the critical role is played by the wholesalers and retailers in the supply chain. Yet,
there is significantly less research done to understand their perception of generic
drugs.
76
CHAPTER 4
RESEARCH METHODOLOGY
4.1: OVERVIEW OF METHODOLOGY & RESEARCH PROCESS
This chapter covers the research methodology overview, including research design,
research approach, research strategy, instrument scale, sampling technique, and pilot
test. It also has sample size, sample universe considered to carry out the study to
prove the objectives by developing hypotheses. The new variables are found in the
environment that explains the operations of research. Through the self-constructed
questionnaire, responses were gathered based on the primary data on a five-point
Likert scale. In this study, the research design was applied because various
promotional mix strategies are considered in accelerating the sales of the companies.
The investigation disclosed that three types of generic medicine companies were
selected for the study, i.e., small-scale companies, medium scale companies, and
large-scale companies. In the study majority of companies were large scale. Total of ,
483 respondents were taken into consideration 247 medical representatives (MRs)
and 236 wholesalers/retailers respectively.
4.2: OBJECTIVES OF THE STUDY

• To analyze the framework for marketing strategies of the Indian generic
medicine manufacturing industry.
• To identify the factors associated with the promotional mix strategies in
generic medicine manufacturing industry.
• To evaluate the viewpoint of the marketing anchorages on the effectiveness of
existing promotional mix strategies and future plans.
• To analyze the viewpoint of the medical representatives and wholesalers &
retailers on effective implementation of existing promotional mix strategies.
• To study the effect of promotional mix strategy on the sales growth of the
selected companies.
• To study the effect of promotional mix strategy on the profitability of the
selected companies.
77
• To develop a model on promotional mix strategies from the perspectives of
medical representatives and wholesalers & retailers in Indian generic medicine
manufacturing companies.
4.3: HYPOTHESES OF THE STUDY

(for the questionnaire regarding Medical Representatives (MRs))
H01: There is no significant difference in the Medical Representatives' preferences

towards the promotional tools for generic medicine.
Ha1: There is a significant difference in the Medical Representatives' preferences

towards capturing the market share for generic medicine.

towards sales volume for generic medicine.
H04: There is no significant difference in the promotional tools among the types of
generic medicine companies (small, medium and large).
Ha5: There is a significant difference in the promotional tools among the types of
H05: There is no significant difference in the market share in the industry in terms of
profitability among the types of generic medicine companies (small, medium and
large).
Ha5: There is a significant difference in the market share in the industry in terms of
profitability among the types of generic medicine companies (small, medium and
large).
78
H06: There is no significant difference in boosting the sales volume among the types
of generic medicine companies (small, medium and large).
Ha6: There is no significant difference in boosting the sales volume among the types
H07: There is no significant difference in the promotional tools of generic medicine

companies with regard to experience in this field.
Ha7: There is a significant difference in the promotional tools of generic medicine
profitability with regard to experience in this field.
profitability with regard to experience in this field.
H09: There is no significant difference in boosting the sales volume of generic

medicine with regard to experience in this field.
Ha9: There is no significant difference in boosting the sales volume of generic
medicine companies with regard to experience in this field.

companies with regard to companies' annual turnover.
profitability with regard to companies' annual turnover.
profitability with regard to companies' annual turnover.

medicine with regard to companies' annual turnover.
79
medicine companies with regard to companies' annual turnover.
H013: There is no significant impact of conduction of conferences/symposium related

to promotional mix strategies on sales growth of generic medicine manufacturing
companies.
Ha13: There is a significant impact of conduction of conferences/symposium related
companies.
H041: There is no significant impact of educational programs related to promotional

mix strategies on sales growth of generic medicine manufacturing companies.
Ha14: There is a significant impact of educational programs related to promotional
H015: There is no significant impact of direct advertisements related to promotional

Ha15: There is a significant impact of direct advertisements related to promotional
H016: There is no significant impact of promotional events related to promotional

Ha16: There is a significant impact of promotional events related to promotional mix
strategies on sales growth of generic medicine manufacturing companies.
H017: There is no significant impact of offering high bonus related to promotional

Ha17: There is a significant impact of offering high bonus related to promotional mix
H018: There is no significant impact of lower price related to promotional mix

80
Ha18: There is a significant impact of lower price related to promotional mix
H019: There is no significant impact of short-term incentives related to promotional

Ha19: There is a significant impact of short-term incentives related to promotional
(Hypotheses for the questionnaire regarding wholesalers)

H01: There is no significant difference in the wholesalers' preferences towards the
promotional tools for generic medicine.
Ha1: There is a significant difference in the wholesalers' preferences towards the
H02: There is no significant difference in the wholesalers' preferences towards

boosting the sales volume for generic medicine.
Ha2: There is a significant difference in the wholesalers' preferences towards boosting
the sales volume for generic medicine.



companies with regard to profit.
81
medicine with regard to profit.
medicine companies with regard to profit.
H07: There is no significant impact of appealing social events related to promotional

Ha7: There is a significant impact of appealing social events related to promotional

Ha8: There is a significant impact of educational programs related to promotional mix
H09: There is no significant impact of promotional offers related to promotional mix

Ha9: There is a significant impact of promotional offers related to promotional mix
H010: There is no significant impact of ground activity related to promotional mix

Ha10: There is a significant impact of ground activity related to promotional mix
H011: There is no significant impact of Personal Relationship related to promotional

Ha11: There is a significant impact of Personal Relationship related to promotional

82
H013: There is no significant impact of Innovative Services related to promotional

Ha13: There is a significant impact of Innovative Services related to promotional mix
H014: There is no significant impact of Point of Purchase related to promotional mix

Ha14: There is a significant impact of Point of Purchase related to promotional mix
4.4: RESEARCH DESIGN
This study attempts to identify the challenging areas of innovative marketing

management practices with particular emphasis on promotional mix strategy being
followed by selected generic medicine manufacturing companies. The researcher
designed the questionnaire in line with the objectives and consulting studies by Jain
(2011), Mahmoud Abdullah Al-Areefi (2012), Goyal, R. (2013), Handa (2013),
Kasliwal (2013), Shah, Syed Asim. (2015), Fickweller F (2017), Jacob (2018) and
Panigrahi, A. (2018) followed by a pilot study. This study is descriptive. The essential
aspect is to identify the strategies of promotional tools. After applying the factor
analysis, some factors were identified, which contributed to the promotional mix
strategies. Techniques like conduction of conferences/symposiums, educational
programs, direct advertisements, promotional events, offering a high bonus, lower
price, technology-savvy & short-term incentives based on the questionnaire analysis
for Medical representatives. The second questionnaire is related to wholesalers that
explored the following factors: appealing social events, educational programs,
promotional offers, ground activity, personal relationship, ethical selling, innovative
services & point of purchase. The study's scope is confined to the cluster of
enterprises registered in the National Stock Exchange (NSE) and Bombay Stock
Exchange (BSE). This cluster includes Cipla, The Piramal group, Lupin limited,
83
Teva, Sun Pharma, Divi's Laboratories, Torrent Pharmaceuticals, Abbott India,
GlaxoSmithKline Pharmaceuticals, Glenmark Pharmaceuticals, Aurobindo Pharma,
Cadila Healthcare, Dr Reddy. Casual studies exploratorily follow the research design
in particular reference to major cities of Madhya Pradesh.
FIGURE 4.1: INTERRELATIONSHIP MODEL OF PROMOTIONAL

STRATEGIES & SALES GROWTH (MEDICAL REPRESENTATIVES)
The model describes the relationship between promotional strategies and sales growth
from the perspectives of MR. The following factors such as conduction of seminars,
organizing educational programs, short term incentives for motivation, offering a high
84
bonus, promotional events and advertisements etc. are contributed to the sales growth
of generic medicine. In this model, sales growth is dependent on these independent
variables.
FIGURE 4.2: INTERRELATIONSHIP MODEL OF PROMOTIONAL

STRATEGIES & SALES GROWTH (WHOLESALERS)
Independent Variables
Social Appealing Events
Educational Programs
Promotional Offers
Dependent Variable
Ground Activity Sales Growth
Personal Relationship
Ethical Selling
Innovative Services
Point of Purchase
The model describes the relationship between promotional strategies and sales growth
from the perspectives of Wholesalers. The following factors such as appealing social
events, organizing educational programs, promotional offers, ground activity,
managing the personal relationship, ethical selling, innovative services and point of
purchase contributes in the sales growth of generic medicine. In this model, sales
growth is dependent on these independent variables.
85
4.5: SAMPLE SIZE
In order to minimize sampling error and following the principle of Beri proposed by
Beri (2005), the responses collected by researcher followed the key functionaries and
anchorages in a manner that covered more than 70 per cent of the industry in terms of
value and volume. For determining the sample size, the formula was adopted in which
a sample is calculated on the value of Z=1.96 at 0.05. For this study total, 247
Medical Representatives (MRs) and 236 Wholesalers have been taken.
4.5.1: CATEGORIES OF SAMPLE
Different profile of population included MRs and Wholesalers, and these were
considered for the study. They were subcategorized as per the company's profile like
annual turnover of the company, working experience in the field, profit, type of
company etc.
TABLE 4.1: TYPE OF COMPANY
Frequency Per cent Valid Per Cumulative

cent Per cent
Small Scale 41 16.6 16.6 16.6
Medium Scale 49 19.8 19.8 36.4
Valid
Large Scale 157 63.6 63.6 100.0
Total 247 100.0 100.0
For the study, three types of companies were selected. 16.6 per cent Medical
Representatives were from Small Scale companies, 19.8 per cent of Medical
representatives were from Medium Scale companies, and 63.6 per cent Medical
representatives were from Large Scale Companies. Majority of them were from large
scale companies.
86
FIGURE 4.3 : TYPE OF COMPANY
small scale medium scale large scale
16%
20%
64%
TABLE 4.2 EXPERIENCE IN THIS FIELD
Frequency Percent Valid Cumulative

Percent Percent
Less than 5 Yrs 90 36.4 36.4 36.4
5.1 to 10 Yrs 69 27.9 27.9 64.4
Valid 10.1 to 15 Yrs 29 11.7 11.7 76.1
More than 15 Yrs 59 23.9 23.9 100.0
Total 247 100.0 100.0
Regarding an experience of Medical representatives, it shows that 36.4 per cent are
having less than five years of experience in this field, 27.9 per cent have 5.1 to 10
years, 11.7 per cent are having an experience of 10.1 to 15 years and rest 23.9 per cent
are having an experience of more than 15 Years.
87
FIGURE 4.4: EXPERIENCE IN THIS FIELD
less than 5 years 5.1 to 10 years

10.1 to 15 years more than 15 years
24%
36%
12%
28%
TABLE 4.3: ANNUAL TURNOVER OF COMPANY

Frequency Percent Valid Cumulative
Percent Percent
Less than 10 Crore 54 21.9 21.9 21.9
11 Crore to 15 Crore 30 12.1 12.1 34.0
Valid
More than 15 Crore 163 66.0 66.0 100.0
Total 247 100.0 100.0
Regarding an annual turnover of the company, it is found that 21.9 per cent Medical
Representatives stated that their companies' annual turnover is less ten crores, 12.1
per cent indicated that their companies' annual turnover is 11 crores to 15 crores and
rest 66 per cent stated for more than 15 crores.
88
FIGURE 4.5: ANNUAL TURNOVER OF COMPANY
less than 10 Crore 11 crore to 15 crore more than 15 crore
22%
12%
66%
4.6: SAMPLING METHOD
In this study, the researcher collected data-based on judgmental as those respondents

were selected who were involved in promotional tools and directly came in contact
with the Physicians or Consultants. The wholesalers also have been identified based
on their market share and sales volume. In this study, the type of company has been
identified and then its profit, turnover, sales etc. aspects were considered. So, it was
feasible for the researcher to collect data as per judgmental basis.
4.7: RESEARCH TYPE
Descriptive Research was helpful to have insight on the research topic at hand.
4.8: RESEARCH TOOLS & TECHNIQUES
Data Collection- The primary data was collected mainly from MRs & wholesalers of
generic medicine companies. The questionnaire was based on past studies; many
journals included both national and international were read and identified the
important variables and compiled it accordingly. Apart from this, websites, reports,
bulletins and other magazines were referred. The research design is descriptive
89
because the variables studied present in past studies and based on those variables, new
variable shaves been identified and reviewed by the promotional mix strategies. Few
prominent studies were Suzanne S Dunne (2014), Fickweller F (2017), Syed Asim
Shah (2015), Ravindra Goyal (2013), Mahmoud Abdullah Al-Areefi, (2012). A pilot
survey was conducted before collecting the final responses. There was a set of two
questionnaires for the medical representatives of promotional mix strategies and
another for selected wholesalers, distributors and retailers of these companies for
seeking their opinion about the effectiveness of existing promotional mix strategies
being followed by the organization and its impact on the sales growth and profit
growth. During the pilot survey, many variables were eliminated. Some of them were
restructured so that proper data was finally framed for continuing the research,
excluding the questions based on the companies' profile. These selected relevant
questions were close-ended to get analysis with adequacy.
4.9: VALIDITY & RELIABILITY
After observing the normally distributed data, the Cronbach alpha was applied to
check the scale's reliability. Once the test of normality is used, and the result is found
normal that ensure the data is normally distributed test of reliability was carried out
on real data collected. The closer value of reliability is near 1.00 means that much
internal consistency and reliability are highly higher. The validity of the scale was
assessed by the reliability index (square root of reliability value). The Cronbach alpha
for the questionnaire of Wholesaler, the reliability of the questionnaire is 0.774, and
validity is the square root of reliability that is .879. The reliability of the questionnaire
for the Medical representative is, .863 and the validity is .928.
4.10: STATISTICAL ANALYSIS OF DATA
Through SPSS, the data were coded and analysed using statistical tools. All the
variables are checked for its internal consistency so that it can be accepted.
Thereafter, the scale's reliability and validity were done using Cronbach's Coefficient
Alpha, Factor Analysis, Kruskal Wallis Test, One Way ANOVA and Pearson's
coefficient of correlation, Regression.
90
Factor analysis was conducted to identify the crucial factors related to the generic
medicine companies' promotional mix strategies. The purpose was to determine the
variables after reducing those and carry out the ease of study. For this study,
significant factors were identified on its loadings. These factors have been tested in
the study to better understand its impact on the sales growth of the generic medicine
companies.
Kruskal Wallis Test: This test is used to give weightage of the variables based on the
mean value. In this study, to provide the mean rank, this test has been applied and
found the crucial variables based on mean rank for the promotional tools, sales
volume and market share. The value of chi-square shows the significance of the test
and depicts the goodness of fit model.
Correlation & Regression: It is used to examine the impact of promotional mix

strategies on the sales growth of generic medicine companies. Correlation signifies
the relationship between the dependent variable and independent variable. Regression
measures the variance that is explained in the dependent variable by independent
variables.
Analysis of Variance (ANOVA): ANOVA is used in checking the mean differences

among the groups. It indicates the model to fit to get the sum of row and column. The
value is calculated at 0.05. Through the mean difference, one can come to know
which group is performing better than other groups. The deviation of mean also
indicates the proximity of variables. In this study, it was applied to make out the mean
difference among the segments like working experience, type of companies and profit
towards boosting the sales volume, market share, variety of companies and
promotional tools of the generic medicine companies.
Corporate Support Research: The research is also supported and financed by Will
Care Life Sciences, Indore. The researcher is grateful for the sponsorship and all the
help provided by them to understand the ground-level reality of the business and
highlight the factors involved in the marketing of generic drugs.
91
CHAPTER 5
ANALYSIS & INTERPRETATIONS
This chapter is divided into two sections. The first section has analysis and
hypotheses testing on the perspective of M.R. towards generic medicine
manufacturing company. The second section carries an analysis of the manufacturing
companies. For this study total, 483 respondents were selected, out of the 247 were
medical representatives, and the remaining 236 were wholesalers/distributors.
5.1: DATA ANALYSIS REGARDING MEDICAL REPRESENTATIVES (MR)

TABLE 5.1: MEAN RANKS ON PROMOTIONAL TOOLS FOR GENERIC
MEDICINE
S. No. Promotional Tools Mean Score Rank
1 Gifts to Doctors 146.00 1
2 Sponsorship to Doctors 118.25 7
3 Physician samples 115.36 8
4 Personal Selling 130.51 3
5 Journal of Advertising 145.17 2
6 Direct Mail 123.06 6
7 Sponsorship of Events/Conferences 78.50 10
8 Symposia and Doctors’ Meetings 107.15 9
9 Organizing camps 129.29 4
10 Press Release/Advertisements 126.92 5
92
In the above table, the mean rank is given for ten categories of promotional tools. It
was found that the first mean rank is assigned to gift to doctors (146.00), the second
rank assigned to journal advertising (145.17), the third rank is given to personal
selling (130.51), the fourth rank is assigned to organizing camps (129.29), the fifth
rank is assigned to press release/advertisements (126.92), the sixth rank is assigned to
direct mail (123.06), the seventh rank is given to sponsorship to doctors (118.25), the
eighth rank is assigned to physician samples (115.36), ninth rank is assigned to
symposia and doctors' meetings (107.15), and the tenth rank is assigned to
sponsorship of events/conferences (78.50).
TABLE 5.2: TEST STATISTICSA,B ON PROMOTIONAL TOOLS FOR

GENERIC MEDICINE
The above table shows the chi-square value, which presents the association between
the category of ranks and promotional tools. The chi-square value (38.569) at .008 <
0.05 level of significance reveals that null hypotheses-'There is no significant
difference in the Medical Representatives' preferences towards the promotional tools
for generic medicine' is not accepted. It concluded that there is a significant difference
in the Medical Representatives' preferences towards the promotional tools for generic
medicine.

93
TABLE 5.3: MEAN RANKS ON CAPTURING THE MARKET SHARE FOR
GENERIC MEDICINE
S.No. Market Share Mean Score Rank

1 Well trained Medical Representatives. 138.10 1
2 Company’s relation with doctor community. 128.33 2
Company’s relation with dealers like
3 111.70 8
wholesalers and retailers.
Company’s product basket or therapeutic
4 126.39 4
segment operating in.
Product segmentation and differentiation as
5 126.27 5
strategy.
6 New product development (R&D) 126.75 3
7 Maximum market coverage. 112.18 7
8 Entry in overseas market. 117.10 6
In the above table, the mean rank is given for eight categories of capturing the market
share for generic medicines. It was found that the first mean rank is assigned to Well-
trained Medical Representatives (138.10), the second rank assigned to company's
relation with doctor community (128.33), the third rank is assigned to New product
development (R&D) (126.75), the fourth rank is assigned to company's product
basket or therapeutic segment operating in (126.39), the fifth rank is assigned to
Product segmentation and differentiation as a strategy (126.27), the sixth rank is
assigned to Entry in overseas market (117.10), the seventh rank is assigned to
Maximum market coverage (112.18) and the last eighth rank is assigned to company's
relation with dealers like wholesalers and retailers (111.70).
TABLE 5.4: TEST STATISTICSA,B ON CAPTURING THE MARKET SHARE

FOR GENERIC MEDICINE
94
the category of ranks and capturing the market share. The chi-square value (32.989) at
.006 < 0.05 level of significance reveals that null hypotheses- 'There is no significant
difference in the Medical Representatives' preferences towards capturing the market
share for generic medicine' is not accepted. It concluded that there is a significant
difference in the Medical Representatives' preferences towards capturing the market
share for generic medicine.


TABLE 5.5: MEAN RANKS ON SALES VOLUME FOR GENERIC

MEDICINE
S. No. Sales Volume Mean Score Rank

Value addition to the brand has accelerated our
1 144.56 1
sales volume.
Share of the server market is expected to increase
2 substantially if firms position their brands properly 129.74 3
in the minds of the prospects.
In order to enhance overall sales, positioning of the
3 109.74 8
brand by specific usage is recommended.
Marketers have to position their offerings in terms
4 122.87 5
of price/quality if they have to maximize the sales.
Product line extensions have substantially
5 132.95 2
increased the sales in the server market.
Our strategy of market segmentation on the basis of
6 income, sex, age or lifestyle has substantially 126.23 4
improved overall sales
A firm may set a high initial price to attain
7 110.44 7
maximum sales in short duration of time.
A firm that positions its products in the high-price
8 120.15 6
high-quality segment of the market may not
95
necessarily attain a larger sale.
In the above table, the mean rank is given for eight categories of boosting sales
volume. It was found that the first mean rank is assigned to Value addition to the
brand has accelerated our sales volume (144.56), second rank assigned to Product line
extensions have substantially increased the sales in the server market (132.95), third
rank is given to share of the server market is expected to increase considerably if
firms position their brands correctly in the minds of the prospects (129.74), fourth
rank is assigned to Our strategy of market segmentation on the basis of income, sex,
age or lifestyle has substantially improved overall sales (126.23), fifth rank is
assigned to Marketers have to position their offerings in terms of price/quality if they
have to maximize the sales (122.87), sixth rank is given to A firm that places its
products in the high-price high-quality segment of the market may not necessarily
attain a more extensive sales (120.15), seventh rank is assigned to A firm may set a
high initial price to achieve maximum sales in short duration of time (110.84), eighth
and the last rank is given to In order to enhance overall sales, positioning of the brand
by specific usage is recommended (109.74).
TABLE 5.6: TEST STATISTICSA,B ON SALES VOLUME FOR GENERIC

MEDICINE
the category of ranks and sales volume. The chi-square value (44.892) at .003 < 0.05
level of significance reveals that null hypotheses 'There is no significant difference in
the Medical Representatives' preferences towards sales volume for generic medicine'
is not accepted. It concluded that there is a significant difference in the Medical
Representatives' preferences towards sales volume for generic medicine.
96
H04: There is no significant difference in the promotional tools among the types of
Ha4: There is a significant difference in the promotional tools among the types of
TABLE 5.7: DESCRIPTIVE ON THE TYPES OF GENERIC MEDICINE

COMPANIES (SMALL, MEDIUM AND LARGE)
The above table exhibits the mean value of promotional tools of generic medicine
companies in terms of the type of generic medicine companies (small, medium and
large), it is found that there is no difference in the mean value for promotional tools
among the type of generic medicine companies (small, medium and large) as in all
three types of companies, the mean value is equally perceived.
TABLE 5.8: ANOVA ON THE TYPES OF GENERIC MEDICINE

COMPANIES (SMALL, MEDIUM AND LARGE)
97
For the promotional tools among the types of generic medicine companies (small,
medium and large), it is found that the mean of all experience of M.R. group is equal,
so it is stated that there is no difference in the promotional tools among the types of
generic medicine companies (small, medium and large). The value of F is .508 which
is insignificant at .602 > 0.05 hence, the null hypotheses namely, 'there is no
significant difference in the promotional tools among the types of generic medicine
companies (small, medium and large)' is accepted and found that there is no
difference in the promotional tools among the types of generic medicine companies
(small, medium and large).
Profitability among the types of generic medicine companies (small, medium and
large).
Profitability among the types of generic medicine companies (small, medium and
large).
TABLE 5.9: DESCRIPTIVE ON PROFITABILITY
The above table exhibits the mean value of the market share in the industry in terms
of Profitability among the types of generic medicine companies (small, medium and
large), it is found that there is no difference in the mean value of the market share in
the industry in terms of Profitability among the types of generic medicine companies
(small, medium and large) as mean value is equally perceived.
98
TABLE 5.10 ANOVA ON PROFITABILITY
For the market share in the industry in terms of Profitability among the types of
generic medicine companies (small, medium and large), it is found that the mean of
all kind of company in terms of Profitability is equal, so it is stated that there is no
difference in the market share in the industry in terms of Profitability among the types
of generic medicine companies (small, medium and large). The value of F is .165
which is insignificant at .848 > 0.05 hence, the null hypotheses namely, 'there is no
significant difference in the market share in the industry in terms of Profitability
among the types of generic medicine companies (small, medium and large)' is
accepted and found that there is no difference in the market share in the industry in
terms of Profitability among the types of generic medicine companies (small, medium
and large).
H06: There is no significant difference in boosting the sales volume among the types
Ha6: There is no significant difference in boosting the sales volume among the types
TABLE 5.11: DESCRIPTIVE ON SALES VOLUME
99
The above table exhibits the mean value of in boosting the sales volume among the
types of generic medicine companies (small, medium and large), it is found that there
is no difference in the mean value of boosting the sales volume among the types of
generic medicine companies (small, medium and large) as mean value is equally
perceived.
TABLE 5.12: ANOVA ON SALES VOLUME
For the boosting the sales volume among the types of generic medicine companies
(small, medium and large), it is found that the mean of all kinds of company in terms
of sales volume is equal, so it is stated that there is no difference in boosting the sales
volume among the type of generic medicine companies (small, medium and large).
The value of F is .355 which is insignificant at .702 > 0.05 hence, the null hypotheses
namely, 'there is no significant difference in the boosting the sales volume among the
types of generic medicine companies (small, medium and large)' is accepted and
found that there is no difference in boosting the sales volume among the types of


100
TABLE 5.13: DESCRIPTIVE ON PROMOTIONAL TOOLS
companies with regard to experience in this field, and it is found that there is no
difference in the mean value of promotional tools of generic medicine companies with
respect to experience in this field as mean value is equally perceived.
TABLE 5.14: ANOVA ON PROMOTIONAL TOOLS
For promotional tools of generic medicine companies with regard to experience in

this field, it is found that the mean of promotional tools is equal, so it is stated that
there is no difference in promotional tools of generic medicine companies with regard
to experience in this field. The value of F is 1.108 which is insignificant at .346 >
0.05; hence, the null hypotheses namely, 'there is no significant difference in the
promotional tools of generic medicine companies with regard to experience in this
field' is accepted and found that there is no difference in promotional tools of generic
Profitability with regard to experience in this field.
101
Profitability with regard to experience in this field.
TABLE 5.15: DESCRIPTIVE ON PROFITABILITY WITH REGARD TO

EXPERIENCE
of Profitability with regard to experience in this field, and it is found that there is no
difference in the mean value of the market share in the industry in terms of
Profitability with regard to experience in this field as mean value is equally perceived.
TABLE 5.16: ANOVA PROFITABILITY WITH REGARD TO EXPERIENCE
For the market share in the industry in terms of Profitability with regard to experience
in this field, it is found that the mean of market share is equal, so it is stated that there
is no difference in the market share in the industry in terms of Profitability with
regard to experience in this field. The value of F is .334 which is insignificant at .801
> 0.05 hence, the null hypotheses namely, 'there is no significant difference in the
102
market share in the industry in terms of Profitability with regard to experience in this
field' is accepted and found that there is no difference in the market share in the
industry in terms of Profitability with regard to experience in this field.


TABLE 5.17: DESCRIPTIVE ON SALES VOLUME OF GENERIC

MEDICINE COMPANIES WITH REGARD TO EXPERIENCE
The above table exhibits the mean value of boosting the sales volume of generic
medicine companies with regard to experience in this field; it is found that there is no
difference in the mean value of increasing the sales volume of generic medicine
companies with respect to experience in this field as mean value is equally perceived.
TABLE 5.18: ANOVA SALES VOLUME OF GENERIC MEDICINE

COMPANIES WITH REGARD TO EXPERIENCE
103
For boosting the sales volume of generic medicine with regard to experience in this
field, it is found that the mean of market share is equal, so it is stated that there is no
difference in the sales volume in the industry with regard to experience in this field.
The value of F is 1.011 which is insignificant at .389 > 0.05; hence, the null
hypotheses namely, 'there is no significant difference in boosting the sales volume of
generic medicine with regard to experience in this field' is accepted and found that
there is no difference in boosting the sales volume of generic medicine with regard to
experience in this field.


TABLE 5.19 DESCRIPTIVE ON PROMOTIONAL TOOLS OF GENERIC

MEDICINE COMPANIES WITH REGARD TO COMPANIES’ ANNUAL
TURNOVER
companies with regard to companies' annual turnover, and it is found that there is no
difference in the mean value of promotional tools of generic medicine companies in
relation to companies' annual turnover as mean value is equally perceived.
104
TABLE 5.20: ANOVA PROMOTIONAL TOOLS OF GENERIC MEDICINE
COMPANIES WITH REGARD TO COMPANIES’ ANNUAL TURNOVER
For the promotional tools of generic medicine companies with regard to companies'
annual turnover, it is found that the mean of annual turnover is equal, so it is stated
that there is no difference in the promotional tools of generic medicine companies
with regard to companies' annual turnover. The value of F is 2.897 which is
insignificant at .057 > 0.05; hence, the null hypotheses namely, 'there is no significant
difference in the promotional tools of generic medicine companies with regard to
companies' annual turnover' is accepted and found that there is no difference in the
promotional tools of generic medicine companies with regard to companies' annual
turnover.
Profitability with regard to companies' annual turnover.
Profitability with regard to companies' annual turnover.
TABLE 5.21: DESCRIPTIVE ON MARKET SHARE IN THE INDUSTRY IN

TERMS OF PROFITABILITY WITH REGARD TO COMPANIES’ ANNUAL
TURNOVER
105
of Profitability with regard to companies' annual turnover, and it is found that there is
no difference in the mean value of the market share in the industry in terms of
Profitability with regard to companies' annual turnover as mean value is equally
perceived.
TABLE 5.22: ANOVA ON MARKET SHARE IN THE INDUSTRY IN TERM

OF PROFITABILITY WITH REGARD TO COMPANIES’ ANNUAL
TURNOVER
For the market share in the industry in terms of Profitability with regard to companies'
annual turnover, it is found that the mean of market share is equal, so it is stated that
there is no difference in the market share in the industry in terms of Profitability with
regard to companies' annual turnover. The value of F is 2.098 which is insignificant at
.335 > 0.05; hence, the null hypotheses namely, 'there is no significant difference in
the market share in the industry in terms of Profitability with regard to companies'
annual turnover' is accepted and found that there is no difference in the market share
in the industry in terms of Profitability with regard to companies' annual turnover.

medicine with regard to companies' annual turnover.

medicine companies with regard to companies' annual turnover.
106
TABLE 5.23: DESCRIPTIVE ON SALES VOLUME OF GENERIC
MEDICINE COMPANIES WITH REGARD TO COMPANIES’ ANNUAL
TURNOVER
The above table exhibits the mean value of boosting the sales volume of generic
medicine companies with regard to companies' annual turnover, and it is found that
there is a difference in the mean value of boosting the sales volume of generic
medicine companies with regard to companies' annual turnover as mean value have to
difference. Those company who have less than ten crores, they have higher sales
compared to those who have 11 crores to 15 crores.
TABLE 5.24: ANOVA ON SALES VOLUME OF GENERIC MEDICINE

COMPANIES WITH REGARD TO COMPANIES’ ANNUAL TURNOVER
For boosting the sales volume of generic medicine with regard to companies' annual
turnover, it is found that the mean of sales volume is different, so it is stated that there
is a difference in boosting the sales volume of generic medicine with regard to
companies' annual turnover. The value of F is 3.114 which is significant at .046 <
0.05 hence, the null hypotheses namely, 'there is no significant difference in boosting
the sales volume of generic medicine with regard to companies' annual turnover' is
107
not accepted and found that there is a difference in boosting the sales volume of
generic medicine with regard to companies' annual turnover.
Reliability Scale
TABLE 5.25: RELIABILITY STATISTICS
The total 24 items are constituted of variables related to the promotional mix
strategies of generic medicine manufacturing companies, and its reliability is .863
means that 86.3 per cent scale is reliable.
TABLE 5.26: KMO AND BARTLETT’S TEST
Table no. 5.29 shows that KMO & Bartlett's test applied to check the adequacy of
factors for determinant analysis. It is found that the KMO & Bartlett's test is
satisfactory and significant at five per cent level. This states that the variables of
promotional mix strategies of generic medicine manufacturing companies are
adequate in explaining the attributes of medical representatives.
108
TABLE 5.27: COMMUNALITIES
The communality table given above explains the variances in the favourable
components of promotional mix strategies of generic medicine manufacturing
companies. From table no. 5.30 it is found that the variance of 23 factors
advantageous elements ranged from .514 to .810 except in variable no—07 where the
value is less than .5, so this variable has been eliminated from the study. The upper
limit of the variance is statistically significant and properly predominant factors as
expressed in the table.
109
TABLE 5.28: TOTAL VARIANCE EXPLAINED
The study identifies the factors, and the cumulative loading is 64.157 means that 64
per cent approx. is contributed in promotional mix strategies. Total of eight factors
has been explored based on loadings. The eigenvalue is declined, so the result is
appreciated. The analysis is carried out in examining the impact of these factors.
TABLE 5.29: ROTATED COMPONENT MATRIXA
110
Factor 1: Conduction of Conferences/Symposiums-the first important determinant
having the highest loadings contributed to promotional mix strategies of generic
medicine manufacturing companies consisted of five variables which have significant
loading value higher than .7. This factor have further following variables During
every visit by a Medical Representative or during a Medical camp, free medicines are
distributed, For promoting generic medicines, conferences/CMEs are being
conducted, Companies get films made on their products, and arrange film show for
doctors, usually inwards of hospitals, and for general physicians, Companies that run
the social cause-related marketing campaigns (social marketing) have subsequently
expanded the share of their served market and Companies promote the drugs
unethically by hiding their safety profiles, by exaggerated efficacy claims of 'me-too
drugs', irrational drug combinations and off label use. (Variance explained is 10.405
per cent)
Factor 2: Educational Programs-the second important determinant having the highest

loadings contributed to promotional mix strategies of generic medicine manufacturing
companies consisted of four variables which have significant loading value higher
than .7. This factor has further following variables: Educational programs are a good
Source of promotions, Drug company sponsors journals to academic journals for
promotions, maintain customer relationships by providing innovative services based
on digital capabilities (disease management applications, medical education, web
community platforms and Digital Pharma helps improve customer service and
consequently strengthens brand image. (Variance explained is 10.160 per cent)
Factor 3: Direct Advertisements-the third important determinant having the highest

companies consisted of three variables which have significant loading value higher
than .7. This factor includes: Samples and catch covers act as brand reminders, Direct
to consumer advertisements create interest amongst physicians and free sample
generates the first trial for any new brand & secure a larger number and more
significant customer back. (Variance explained is 9.753 per cent)
111
Factor 4: Promotional Events-the fourth important determinant having the highest
companies consisted of two variables which have significant loading value higher
than .8. This factor has further following variables: After the sale of medicines,
margin or percentage of profit has been given and through the arrangement of tours/
trips to dinner/party is also a tool for promotions. (Variance explained is 8.746 per
cent)
Factor 5: Offering High Bonus-the fifth important determinant having the highest
than .8. This factor has further following variables: Trade bonus offer from the
company is a tool to boost companies' sale in the market and offering a high bonus to
retailers can increase the sale of a product for the company. (Variance explained is
7.426 per cent)
Factor 6: Lower Price-the sixth important determinant having the highest loadings
contributed to promotional mix strategies of generic medicine manufacturing
companies consisted of only one variable which have significant loading value higher
than .8. This factor has one variable: adopting the lowest pricing can be a strategy for
the companies to capture better market share. (Variance explained is 6.309 per cent)
Factor 7: Technology Savvy-the seventh important determinant having the highest

than .8. This factor has further following variables: Indian doctors are technology
savvy (they use all the modern electronic gadgets for communication), and Bonus
offer from pharmaceutical companies destroy healthy competition in the marketplace.
(Variance explained is 6.125 per cent)
Factor 8: Short Term Incentives-the last important determinant having the highest
112
than .5. This factor has further following variables: doctors spare time to the
companies as per the relationship with the company's medical representative and
Short-term incentives to encourage the purchase or sale of a product or service.
TABLE 5.30: STANDARDIZED REGRESSION ESTIMATES OF THE

PROMOTIONAL MIX STRATEGIES FOR GENERIC MEDICINE
(MEDICAL REPRESENTATIVES)
Estimate S.E. C.R. P
sales <--- F1 .210 .009 3.574 ***
sales <--- F2 .199 .013 3.380 ***
sales <--- F3 .061 .015 1.038 .299
sales <--- F8 .164 .022 2.787 .005
sales <--- F7 -.002 .022 -.030 .976
sales <--- F6 -.163 .032 -2.772 .006
sales <--- F5 .094 .018 1.596 .110
sales <--- F4 -.003 .016 -.047 .963
The above table shows the standardized regression estimates of the promotional mix
strategies for generic medicine and its effect on sales growth. the p-value is
significant in depicting the relationship between sales and conduction of
conferences/symposiums at 0.000 which is significant at 0.05, between sales and
educational programs in which p-value is significant at 0.000 < 0.05, between sales
and short-term incentives at 0.005 < 0.05 and sales and lower price at 0.006 < 0.05. in
other factors such as sales and direct advertisements, sales and offering high bonus,
sales and promotional events and sales and technology savvy in these factors p-value
is higher than 0.05, so these were insignificant.
113
MODEL 5.1: PROMOTIONAL MIX STRATEGIES FOR MEDICAL
REPRESENTATIVES
Confirmatory Factor Analysis (Medical Representatives): The driver of promotional

mix strategies for generic medicine. AMOS was used to test the validity of the scales.
For assumptions of CFA, the data were selected. For the promotional mix strategies
scale, CFA results indicated the eight-factor model. The arrows reveal the impact of
promotional mix strategies for generic medicine on sales growth. Thus, it can be
concluded that promotional mix strategies had eight factors namely, conduction of
symposium/conferences, educational programs, direct advertisements, promotional
114
events, offering a high bonus, lower price, technology savvy and short-term
incentives.
TABLE 5.31: PROMOTIONAL MIX STRATEGIES (MEDICAL

REPRESENTATIVES) MODEL FIT
Measures Threshold
Chi-Square/df (CMIN/DF) 13.492
P-Value for the Model 0.000
Goodness-of-Fit Statistic (GFI) .606
Adjusted Goodness-of-Fit Statistic (AGFI) .508
Comparative Fit Index (CFI) .125
Normed Fit Index (NFI) .133
Tucker-Lewis Index (TLI) .125
Incremental Fit Index (IFI) .142
Root Mean Square Residual (RMR) .260
Root Mean Square Error of Approximation (RMSEA) .212
The CFA provided fit to the data, as indicated in the table. All estimated loadings like
GFI, AGFI, CFI. NFI, RMR & RMSEA were all significant at 0.000, so the
relationship has been accepted between promotional mix strategies and sales growth
for generic medicine.
H013: There is no significant impact of conduction of conferences/symposium related

companies.
Ha13: There is a significant impact of conduction of conferences/symposium related

companies.
115
TABLE 5.32: MODEL SUMMARYB: CONDUCTION OF
CONFERENCE/SYMPOSIUM RELATED TO PROMOTIONAL MIX
STRATEGIES
The above table exhibits the correlation between the conduction of

conferences/symposium and sales growth of generic medicine manufacturing
companies. The correlation value is .343 between the conduction of
conferences/symposium and sales growth of generic medicine manufacturing
companies indicating correlation and is significant at .000 < 0.05. Hence, it is
accepted that the consistency between the conduction of conferences/symposium and
sales growth of generic medicine manufacturing companies is significant. The value
of regression is .118 means that only 11.8 per cent variance is explained in sales
growth of generic medicine manufacturing companies by conduction of
conferences/symposium. The value of Durbin Watson is 1.858 higher than the
tabulated value (1), so both variables are auto correlated means that a unit increase in
conduction of conferences/symposium (independent variable) resulted into increase in
sales growth of generic medicine manufacturing companies (dependent variable).
Therefore, the hypotheses namely, 'there is no significant impact of conduction of
conferences/symposium related to promotional mix strategies on sales growth of
generic medicine manufacturing companies' is rejected and concluded that there is a
significant impact of conduction of conferences/symposium related to promotional
116
TABLE 5.33: ANOVAA: CONDUCTION OF CONFERENCES/SYMPOSIUM
RELATED TO PROMOTIONAL MIX STRATEGIES
The value of F is 32.642 for the conduction of conferences/symposium related to

promotional mix strategies at .000 < 0.05. The result indicated that the model is fit to
explain the regression line depicting the variance in the dependent variable. Hence,
conduction of conferences/symposium related to promotional mix strategies is useful
as a predictor of sales growth of generic medicine manufacturing companies.
TABLE 5.34: COEFFICIENTSA: CONDUCTION OF

CONFERENCES/SYMPOSIUM RELATED TO PROMOTIONAL MIX
STRATEGIES
In the table, the value of Beta is .343, indicating the increase in promotional
strategies. It means that if one unit is increased in inputs of promotional strategies
regarding the conduction of conferences/symposium, then 3.43 unit is increased in
output regarding the sales growth. The value is significant at .05.
117
HISTOGRAM 5.1: CONDUCTION OF CONFERENCES/SYMPOSIUM
(svolume refers to sales volume)
The histogram shows the standardized regression residual in which regression line is
usually distributed for the independent variable conduction of
conferences/symposium. Thus, the model of regression is accepted.

118
Ha14: There is a significant impact of educational programs related to promotional
TABLE 5.35: MODEL SUMMARYB EDUCATIONAL PROGRAMS

The above table exhibits the correlation between educational programs and sales
growth of generic medicine manufacturing companies. The correlation value is .324
between academic programs and sales growth of generic medicine manufacturing
accepted that the consistency between educational programs and sales growth of
generic medicine manufacturing companies is substantial. The value of regression is
.105 means that only 10.5 per cent variance is explained in the sales growth of generic
medicine manufacturing companies by educational programs. The value of Durbin
Watson is 1.791 higher than the tabulated value (1), so both variables are auto
correlated means that a unit increase in educational programs (independent variable)
resulted into increase in sales growth of generic medicine manufacturing companies
(dependent variable). Therefore, the hypotheses namely, 'there is no significant
impact of educational programs related to promotional mix strategies on sales growth
of generic medicine manufacturing companies' is rejected and concluded that there is
a significant impact of educational programs related to promotional mix strategies on
sales growth of generic medicine manufacturing companies.
119
TABLE 5.36: ANOVAA EDUCATIONAL PROGRAMS RELATED TO
The value of F is 28.824 for the educational programs related to promotional mix
strategies at .000 < 0.05. The result indicated that the model is fit to explain the
regression line depicting the variance in the dependent variable. Hence, educational
programs related to promotional mix strategies are useful as a predictor of sales
growth of generic medicine manufacturing companies.
TABLE 5.37: COEFFICIENTSA EDUCATIONAL PROGRAMS RELATED TO

regarding the conduction of educational programs, then 3.24 unit is increased in
output regarding the sales growth. The value is significant at .05.
120
HISTOGRAM 5.2: EDUCATIONAL PROGRAMS RELATED TO
usually distributed for the independent variable educational programs. Thus, the
model of regression is accepted.
H015: There is no significant impact of direct advertisements related to promotional

Ha15: There is a significant impact of direct advertisements related to promotional

121
TABLE 5.38: MODEL SUMMARYB DIRECT ADVERTISEMENTS
The above table exhibits the correlation between direct advertisements and sales
between direct advertisements and sales growth of generic medicine manufacturing
accepted that the consistency between direct advertisements and sales growth of
generic medicine manufacturing companies is significant. The value of regression is
medicine manufacturing companies by direct advertisements. The value of Durbin
Watson is 1.791 higher than the tabulated value (1), so both variables are auto
correlated means that a unit increase in direct advertisements (independent variable)
resulted into increase in sales growth of generic medicine manufacturing companies
(dependent variable). Therefore, the hypotheses namely, 'there is no significant
impact of direct advertisements related to promotional mix strategies on sales growth
of generic medicine manufacturing companies' is rejected and concluded that there is
a significant impact of direct advertisements related to promotional mix strategies on
TABLE 5.39: ANOVAA DIRECT ADVERTISEMENTS RELATED TO

122
The value of F is 21.126 for the direct advertisements related to promotional mix
regression line depicting the variance in the dependent variable. Hence, direct
advertisements related to promotional mix strategies are useful as a predictor of sales
TABLE 5.40: COEFFICIENTSA DIRECT ADVERTISEMENTS RELATED TO

regarding the direct advertisements, then 2.82 unit is increased in output regarding the
sales growth. The value is significant at .05.
123
HISTOGRAM 5.3: DIRECT ADVERTISEMENTS RELATED TO
usually distributed for the independent variable direct advertisements. Thus, the
124
H016: There is no significant impact of promotional events related to promotional
Ha16: There is a significant impact of promotional events related to promotional mix

TABLE 5.41: MODEL SUMMARYB PROMOTIONAL EVENTS RELATED

TO PROMOTIONAL MIX STRATEGIES
The above table exhibits the correlation between promotional events and sales growth
of generic medicine manufacturing companies. The correlation value is .195 between
promotional events and sales growth of generic medicine manufacturing companies
indicating correlation and is significant at .002 < 0.05. Hence, it is accepted that the
consistency between promotional events and sales growth of generic medicine
manufacturing companies is significant. The value of regression is .038 means that
only 3.8 per cent variance is explained in the sales growth of generic medicine
manufacturing companies by promotional events. The value of Durbin Watson is
1.850 higher than the tabulated value (1), so both variables are autocorrelated means
that a unit increase in promotional events (independent variable) resulted into increase
in sales growth of generic medicine manufacturing companies (dependent variable).
Therefore, the hypotheses namely, 'there is no significant impact of promotional
events related to promotional mix strategies on sales growth of generic medicine
manufacturing companies' is rejected and concluded that there is a significant impact
of promotional events related to promotional mix strategies on sales growth of generic
medicine manufacturing companies.
125
TABLE 5.42: ANOVAA PROMOTIONAL EVENTS RELATED TO
The value of F is 9.634 for the promotional events related to promotional mix
regression line depicting the variance in the dependent variable. Hence, promotional
events related to promotional mix strategies are useful as a predictor of sales growth
of generic medicine manufacturing companies.
TABLE 5.43: COEFFICIENTSA PROMOTIONAL EVENTS RELATED TO

regarding the promotional events, then 1.95 unit is increased in output regarding the
126
HISTOGRAM 5.4: PROMOTIONAL EVENTS RELATED TO
normally distributed for the independent variable promotional events. Thus, the model
of regression is accepted.
H017: There is no significant impact of offering high bonus related to promotional

Ha17: There is a significant impact of offering high bonus related to promotional mix
127
TABLE 5.44: MODEL SUMMARYB OFFERING HIGH BONUS RELATED
The above table exhibits the correlation between offering a high bonus and sales
between providing a high bonus and sales growth of generic medicine manufacturing
accepted that the consistency between offering a high bonus and sales growth of
medicine manufacturing companies by offering a high bonus. The value of Durbin
Watson is 1.844 higher than the tabulated value (1), so both variables are
autocorrelated means that a unit increase in offering high bonus (independent
variable) resulted into increase in sales growth of generic medicine manufacturing
companies (dependent variable). Therefore, the hypotheses namely, 'there is no
significant impact of offering high bonus related to promotional mix strategies on
sales growth of generic medicine manufacturing companies' is rejected and concluded
that there is a significant impact of offering high bonus related to promotional mix
TABLE 5.45: ANOVAA OFFERING HIGH BONUS RELATED TO

128
The value of F is 9.375 for the offering high bonus related to promotional mix
regression line depicting the variance in the dependent variable. Hence, offering high
bonus related to promotional mix strategies is useful as a predictor of sales growth of
generic medicine manufacturing companies.
TABLE 5.46: COEFFICIENTSA OFFERING HIGH BONUS RELATED TO

regarding the high offering bonus, then 1.92 unit is increased in output regarding the
129
HISTOGRAM 5.5: OFFERING HIGH BONUS RELATED TO
normally distributed for the independent variable offering a high bonus. Thus, the
H018: There is no significant impact of lower price related to promotional mix

Ha18: There is a significant impact of lower price related to promotional mix

130
TABLE 5.47: MODEL SUMMARYB LOWER PRICE RELATED TO
The above table exhibits the correlation between the lower price and sales growth of
generic medicine manufacturing companies. The correlation value is .012 between the
lower price and sales growth of generic medicine manufacturing companies indicating
correlation and is significant at .852 > 0.05. Hence, it is accepted that the consistency
between the lower price and sales growth of generic medicine manufacturing
companies is significant. The value of Durbin Watson is .862 lower than the
tabulated value (1), so both variables are not autocorrelated. Therefore, the
hypotheses namely, 'there is no significant impact of lower price related to
promotional mix strategies on sales growth of generic medicine manufacturing
companies' is accepted and concluded that there is no significant impact of lower
price related to promotional mix strategies on sales growth of generic medicine
H018: There is no significant impact of technology-savvy related to promotional mix

Ha18: There is a significant impact of technology-savvy related to promotional mix

131
TABLE 5.48: MODEL SUMMARYB TECHNOLOGY SAVVY RELATED TO
The above table exhibits the correlation between technology savvy and sales growth
technology savvy and sales growth of generic medicine manufacturing companies
consistency between technology savvy and sales growth of generic medicine
manufacturing companies by technology savvy. The value of Durbin Watson is 1.831
higher than the tabulated value (1), so both variables are autocorrelated means that a
unit increase in technology-savvy (independent variable) resulted into increase in
Therefore, the hypotheses namely, 'there is no significant impact of technology-savvy
related to promotional mix strategies on sales growth of generic medicine
of technology-savvy related to promotional mix strategies on sales growth of generic
TABLE 5.49: ANOVAA TECHNOLOGY SAVVY RELATED TO

132
The value of F is 7.214 for the technology savvy related to promotional mix strategies
at .008 < 0.05. Hence, technology-savvy related to promotional mix strategies is
useful as a predictor of sales growth of generic medicine manufacturing companies.
TABLE 5.50: COEFFICIENTSA TECHNOLOGY SAVVY RELATED TO

regarding the technology savvy, then 1.69 unit is increased in output regarding the
133
HISTOGRAM 5.6: TECHNOLOGY SAVVY RELATED TO PROMOTIONAL
MIX STRATEGIES
normally distributed for the independent variable technology savvy. Thus, the model
of regression is accepted.
H019: There is no significant impact of short-term incentives related to promotional

Ha19: There is a significant impact of short-term incentives related to promotional

134
TABLE 5.51: MODEL SUMMARYB SHORT TERM INCENTIVES RELATED
The above table exhibits the correlation between short term incentives and sales
between short term incentives and sales growth of generic medicine manufacturing
accepted that the consistency between short term incentives and sales growth of
medicine manufacturing companies by short term incentives. The value of Durbin
autocorrelated means that a unit increase in short term incentives (independent
significant impact of short-term incentives related to promotional mix strategies on
that there is a significant impact of short-term incentives related to promotional mix
TABLE 5.52: ANOVAA SHORT TERM INCENTIVES RELATED TO

135
The value of F is 23.537 for the short-term incentives related to promotional mix
regression line depicting the variance in the dependent variable. Hence, short term
incentives related to promotional mix strategies are useful as a predictor of sales
TABLE 5.53: COEFFICIENTSA SHORT TERM INCENTIVES RELATED TO

regarding the short-term incentives, then 2.96 unit is increased in output regarding the
136
HISTOGRAM 5.7: SHORT TERM INCENTIVES RELATED TO
The standard probability plot is obtained to test the assumption about the normality of
residuals, and it appears that the residuals are approximately normally distributed for
the independent variable short-term incentives. Thus, the deductions for regression
analysis appear to be met.
137
5.2: DATA ANALYSIS REGARDING WHOLESALERS
H01: There is no significant difference in the wholesalers' preferences towards the

Ha1: There is a significant difference in the wholesalers' preferences towards the
TABLE 5.54: MEAN RANKS ON PROMOTIONAL TOOLS FOR GENERIC

MEDICINE
S. No. Promotional Tools Mean Score Rank
1 Gifts to Doctors 96.46 5
2 Sponsorship to Doctors 187.65 1
3 Physician samples 80.27 7
4 Personal Selling 115.60 3
5 Journal Advertising 71.23 9
6 Direct Mail 79.65 8
7 Sponsorship of Events/Conferences 61.58 10
8 Symposia and Doctors’ Meetings 130.31 2
9 Organizing camps 98.56 4
10 Press Release/Advertisements 90.81 6
In the above table, the mean rank is given for ten categories of promotional tools. It
was found that the first mean rank is assigned to Sponsorship to Doctors (187.65), the
second rank assigned to Symposia and Doctors' Meetings (130.31), the third rank is
given to Personal Selling (115.60), the fourth rank is assigned to organizing camps
(98.56), the fifth rank is assigned to Gifts to Doctors (96.46), the sixth rank is
assigned to Press Release/Advertisements (90.81), the seventh rank is given to
Physician samples (80.27), the eighth rank is set to direct mail (79.65), ninth rank is
assigned to Journal advertising (71.23) and tenth rank is given to Sponsorship of
Events/Conferences (61.58).
138
TABLE 5.55: TEST STATISTICSA,B ON PROMOTIONAL TOOLS FOR
GENERIC MEDICINE
the category of ranks and promotional tools. The chi-square value (99.238) at .000
level of significance reveals that null hypotheses 'There is no significant difference in
the wholesalers' preferences towards the promotional tools for generic medicine' is
not accepted and concluded that there is a significant difference in the wholesalers'
preferences towards the promotional tools for generic medicine.
H02: There is no significant difference in the wholesalers' preferences towards

boosting the sales volume for generic medicine.
Ha2: There is a significant difference in the wholesalers' preferences towards boosting

the sales volume for generic medicine.
139
TABLE 5.56: MEAN RANKS ON BOOSTING SALES VOLUME FOR
GENERIC MEDICINE
S. Mean
Sales Volume Rank
No. Score
Value addition to the brand has accelerated our sales
1 124.08 5
volume.
Share of the server market is expected to increase
2 substantially if firms position their brands properly in 87.67 6
the minds of the prospects.
In order to enhance overall sales, positioning of the
3 188.69 1
brand by specific usage is recommended.
Marketers have to position their offerings in terms of
4 138.63 4
price/quality if they have to maximize the sales.
Product line extensions have substantially increased the
5 67.92 8
sales in the server market.
Our strategy of market segmentation on the basis of
6 income, sex, age or lifestyle has substantially improved 149.93 2
overall sales
A firm may set a high initial price to attain maximum
7 70.63 7
sales in short duration of time.
A firm that positions its products in the high-price high-
8 quality segment of the market may not necessarily 143.15 3
attain a larger sale.
In the above table, the mean rank is given for eight categories of boosting sales
volume. It was found that the first mean rank is assigned to In order to enhance
overall sales, positioning of the brand by specific usage is recommended (188.69),
second rank assigned to Our strategy of market segmentation on the basis of income,
sex, age or lifestyle has substantially improved overall sales (149.93), third rank is
assigned to A firm that positions its products in the high-price high-quality segment of
the market may not necessarily attain a more extensive sales (143.15), fourth rank is
assigned to Marketers have to position their offerings in terms of price/quality if they
have to maximize the sales (138.63), fifth rank is assigned to Value addition to the
140
brand has accelerated our sales volume (124.08), sixth rank is assigned to Share of
the server market is expected to increase substantially if firms position their brands
correctly in the minds of the prospects (87.67), seventh rank is assigned to A firm
may set a high initial price to attain maximum sales in short duration of time (70.63),
eighth and the last rank is assigned to Product line extensions have substantially
increased the sales in the server market (67.92).
TABLE 5.57: TEST STATISTICSA,B ON BOOSTING SALES VOLUME FOR

GENERIC MEDICINE
the category of ranks and boosting the sales volume. The chi-square value (65.798) at
.000 level of significance reveals that null hypotheses 'There is no significant
difference in the wholesalers' preferences towards boosting sales volume for generic
medicine' is not accepted and concluded that there is a significant difference in the
wholesalers' preferences towards boosting sales volume for generic medicine.


141
TABLE 5.58: DESCRIPTIVE ON PROMOTIONAL TOOLS OF GENERIC
MEDICINE COMPANIES WITH REGARD TO EXPERIENCE IN THIS
FIELD
companies in terms of the experience of wholesalers; it is found that irrespective of
experience like less than five years, 5.1 to 10 years, 10.1 to 15 years and more than 15
years, there is no difference in the mean value, so it is concluded that there is no
significant difference in the promotional tools of generic medicine companies with
regard to experience in this field.
TABLE 5.59: ANOVA ON PROMOTIONAL TOOLS OF GENERIC

FIELD
For the promotional tools of generic medicine companies with regard to experience, it
is found that the mean of all experience of wholesalers group is equal, so it is stated
that there is no difference in the promotional tools of generic medicine companies
142
with regard to experience. The value of F is 1.982 which is insignificant at .117 >
0.05; hence, the null hypotheses namely, 'there is no significant difference in the
promotional tools of generic medicine companies with regard to experience in this
field' is accepted and found that there is no difference in the promotional tools of
generic medicine companies with regard to experience.


TABLE 5.60: DESCRIPTIVE ON BOOSTING THE SALES VOLUME OF

GENERIC MEDICINE COMPANIES WITH REGARD TO EXPERIENCE IN
THIS FIELD
The above table exhibits the mean value of sales volume of generic medicine
companies in terms of sales, and it is found that those who have an experience of 10.1
to 15 years of experience, they assume that sales volume is high followed by those
who have an experience of fewer than five years, 5.1 to 10 years and more than ten
years. Hence, it is concluded that experience-wise they have different perception
towards sales volume of generic medicine.
143
TABLE 5.61: ANOVA ON BOOSTING THE SALES VOLUME OF GENERIC
FIELD
For the promotional tools of generic medicine companies with regard to sales, it is
found that the mean of all experience of wholesalers group is different, so it is stated
that there is a difference in the sales volume of generic medicine companies with
regard to sales. The value of F is 2.857 which is significant at .038 < 0.05 hence, the
null hypotheses namely, 'there is no significant difference in the sales volume of
generic medicine companies with regard to experience in this field' is not accepted
and found that there is a difference in the sales volume of generic medicine
companies with regard to experience.

TABLE 5.62: DESCRIPTIVES ON PROMOTIONAL TOOLS OF GENERIC

MEDICINE COMPANIES WITH REGARD TO EXPERIENCE IN PROFIT
144
The above table exhibits the mean value of sales volume of generic medicine
companies in terms of profit, and it is found that those who have earned 51 per cent to
70 per cent profit, they assume that promotional tools are essential in boosting the
sales high followed by those who have reached 31 per cent to 50 per cent, less than 30
per cent and more than 70 per cent. Hence, it is concluded that profit wise they have
in the promotional tools of generic medicine companies with regard to profit.
TABLE 5.63: ANOVA ON PROMOTIONAL TOOLS OF GENERIC

MEDICINE COMPANIES WITH REGARD TO EXPERIENCE IN PROFIT
For the promotional tools of generic medicine companies with regard to profit, it is
found that the mean of all profit of wholesalers group is different, so it is stated that
there is a difference in the promotional tools of generic medicine companies with
regard to profit. The value of F is 2.818 which is significant at .040 < 0.05 hence, the
null hypotheses namely, 'there is no significant difference in the promotional tools of
generic medicine companies with regard to profit' is not accepted and found that there
is a difference in the promotional tools of generic medicine companies with regard to
profit.
medicine with regard to profit.

medicine companies with regard to profit.
145
TABLE 5.64: DESCRIPTIVE ON BOOSTING THE SALES VOLUME OF
GENERIC MEDICINE REGARD TO PROFIT
The above table exhibits the mean score of sales of generic medicine with regard to
profit. It is an extract from the data that all the group of wholesalers equally perceive
towards profit margin categorization as, less than 30 per cent, 31 to 50 per cent, 51
per cent to 70 per cent and more than 70 per cent for sales. The sales depend upon the
requirements of generic medicine, so wholesalers are not able to state the actual
position.
TABLE 5.65: ANOVA ON BOOSTING THE SALES VOLUME OF GENERIC

MEDICINE WITH REGARD TO PROFIT
For boosting the sales volume of generic medicine with regard to profit, it is found
that the mean of all profit of wholesalers group is equal, so it is stated that there is no
difference in the sales volume of generic medicine companies with regard to profit.
The value of F is .463 which is insignificant at .709 > 0.05 hence, the null hypotheses
namely, 'there is no significant difference in boosting the sales volume of generic
146
medicine with regard to profit' is accepted and found that there is no difference in the
boosting the sales volume of generic medicine with regard to profit.
Reliability Scale
TABLE 5.66: RELIABILITY STATISTICS
The total 22 items are constituted of variables related to the promotional mix
strategies of generic medicine manufacturing companies and its reliability is .774
means that 77.4 per cent scale is reliable.
Factor Analysis on promotional mix strategies of generic medicine

manufacturing companies
TABLE 5.67: KMO AND BARTLETT’S TEST
The table shows that KMO & Bartlett's test applied to check the adequacy of factors
for determinant analysis. It is found that the sampling adequacy value .626 and the
Chi-square value 1322.617 are statistically significant at five per cent level. This
implies that the variables of promotional mix strategies of generic medicine
manufacturing companies are adequate in explaining the concept and the sampling
distribution is also normal to explain the characteristic features of the population of
wholesalers.
147
TABLE 5.68: COMMUNALITIES
The communality table given above explains the variances in the favourable
components of promotional mix strategies of generic medicine manufacturing
companies. From the table, it is found that the variance of 20 factors favourable
components ranged from .546 to .754 except in two variables no. 18 & 21 where the
value is less than .5, so these two variables have been eliminated from the study. The
upper limit of the variance is statistically significant and properly predominant factors
as expressed in the table.
148
TABLE 5.69: TOTAL VARIANCE EXPLAINED
The study has been extracted by a fixed number of factors, i.e. instead of Eigenvalues
greater than 1. Cumulative frequencies of the extracted sum of squared loadings with
eight factors are 64.492. Whereas the Cumulative frequencies of the initial
Eigenvalues greater than 1 are 1.296. From the above table, it is found that the 22
factors are reduced into eight significant factors, with Eigenvalue 2.130 to 1.296 are
statistically significant. The eight major determinants also possess significant total
cumulative variances from 9.683 to 64.492. This clearly indicates the very existence
of eight factors with their respective loadings.
149
TABLE 5.70: ROTATED COMPONENT MATRIXA
Factor 1: Social Appealing Events-the first important determinant having the highest
than .7. This factor has further following variables: placement of appealing ads pushes
your selling towards a larger market share and Social events organized by the
company are having an effect on a product sale. (Variance explained is 9.683 per
cent)
Factor 2: Educational Programs-the second important determinant having the highest

than .7. This factor has further following variables: Educational programs are a good
Source of promotions; a Website is a potent tool in creating awareness amongst
150
physicians and Direct to consumer advertisements create interest amongst physicians.
Factor 3: Promotional Offers-the third important determinant having the highest

companies consisted of one variable which has significant loading value higher than
.7. This factor includes only one variable: Schemes on sale of medicines are also
given. (Variance explained is 8.855 per cent)
Factor 4: Ground Activity-the fourth important determinant having the highest

than .7. This factor has further following variables: Free samples are given to
consumers are economical from the point of selling, Progressive companies are
adopting this technique and preferring it to seminars and other forms of direct
communication and gain maximum earnings by combining ground activations with
the digital contest. (Variance explained is 8.529 per cent)
Factor 5: Personal Relationship-the fifth important determinant having the highest

than .7. This factor has further following variables: doctors spare time to the
companies as per the relationship with company's medical representative and Drug
company sponsors journals to academic journals for promotions. (Variance explained
is 8.055 per cent)
Factor 6: Ethical Selling-the sixth important determinant having the highest loadings
than .7. This factor has further following variables: Generic medicines give more
profit when compared to the ethical or branded drug, and there is a warning that uses
after prescribed by the Physician. (Variance explained is 7.344 per cent)
151
Factor 7: Innovative Services-the seventh important determinant having the highest
than .7. This factor has further following variables: Indian doctors are technology
savvy (they use all the modern electronic gadgets for communication) and Maintain
customer relationships by providing innovative services based on digital capabilities
(disease management applications, medical education, web community platforms.
Factor 8: Point of Purchase-the last important determinant having the highest loadings
than .6. This factor has further following variables: email marketing, mobile phone-
based SMS marketing platforms are capable of pushing into capturing a big market,
and No wholesaler can deny providing Generic medicines. (Variance explained is
5.982 per cent)
TABLE 5.71: STANDARDIZED REGRESSION ESTIMATES OF THE
PROMOTIONAL MIX STRATEGIES FOR GENERIC MEDICINE
(WHOLESALERS)
Standardized
S.E. C.R. P
Estimate
sales <--- SAE .037 .017 .696 .486
sales <--- EP -.009 .012 -.169 .865
sales <--- OFFERS .118 .030 2.240 .025
sales <--- GA .206 .011 3.908 ***
sales <--- PR -.077 .016 -1.461 .144
sales <--- ES .179 .015 3.391 ***
sales <--- IS .024 .016 .462 .644
sales <--- POP .499 .016 9.456 ***
The above table shows the standardized regression estimates of the promotional mix
strategies for generic medicine and its effect on sales growth. The p-value is
152
significant in depicting the relationship between sales and high offering bonus at
0.025 which is significant 0.05, between sales and ground activity in which p-value is
significant at 0.000 < 0.05, between sales and ethical selling at 0.000 < 0.05 and sales
and point of purchase at 0.000 < 0.05. In other factors such as sales and appealing
social events, sales and educational programs, sales and personal relationship and
sales and innovative services in these factors, the p-value is higher than 0.05, so these
were insignificant.
Model 5.2: On Promotional Mix Strategies for Wholesalers
153
Confirmatory Factor Analysis (Wholesalers): The driver of promotional mix
strategies for generic medicine. AMOS was used to test the validity of the scales. For
assumptions of CFA, the data were selected. For the promotional mix strategies scale,
CFA results indicated the eight-factor model. The arrows reveal the impact of
promotional mix strategies for generic medicine on sales growth. Thus, it can be
concluded that promotional mix strategies had eight factors namely, appealing social
events, educational programs, promotional offers, ground activity, personal
relationship, ethical selling, innovative services and point of purchase.
TABLE 5.72: PROMOTIONAL MIX STRATEGIES (WHOLESALERS)

MODEL FIT
Measures Threshold
Chi-Square/df (CMIN/DF) 7.953
P-Value for the Model 0.000
Goodness-of-Fit Statistic (GFI) .699
Adjusted Goodness-of-Fit Statistic (AGFI) .623
Comparative Fit Index (CFI) .385
Normed Fit Index (NFI) .368
Tucker-Lewis Index (TLI) .209
Incremental Fit Index (IFI) .400
Root Mean Square Residual (RMR) .592
Root Mean Square Error of Approximation (RMSEA) .193
The CFA provided fit to the data, as indicated in the table. All estimated loadings like
GFI, AGFI, CFI. NFI, RMR & RMSEA were all significant at 0.000, so the
relationship has been accepted between promotional mix strategies and sales growth
for generic medicine.
154
Correlation & Regression
H07: There is no significant impact of appealing social events related to promotional

Ha7: There is a significant impact of appealing social events related to promotional

TABLE 5.73: MODEL SUMMARYB SOCIAL APPEALING EVENTS

The above table exhibits the correlation between appealing social events and sales
between appealing social events and sales growth of generic medicine manufacturing
accepted that the consistency between appealing social events and sales growth of
medicine manufacturing companies by appealing social events. The value of Durbin
autocorrelated means that a unit increase in appealing social events (independent
significant impact of appealing social events related to promotional mix strategies on
that there is a significant impact of appealing social events related to promotional
155
TABLE 5.74: ANOVAA SOCIAL APPEALING EVENTS RELATED TO
The value of F is 19.118 for the appealing social events related to promotional mix
regression line depicting the variance in the dependent variable. Hence, appealing
social events related to promotional mix strategies are useful as a predictor of sales
TABLE 5.75: COEFFICIENTSA SOCIAL APPEALING EVENTS RELATED

regarding the appealing social events, then 2.75unit is increased in output regarding
the sales growth. The value is significant at .05.
156
HISTOGRAM 5.8: SOCIAL APPEALING EVENTS RELATED TO
normally distributed for the independent variable social appealing events. Thus, the
model for regression is accepted.

Ha8: There is a significant impact of educational programs related to promotional mix

157
TABLE 5.76: MODEL SUMMARYB EDUCATIONAL PROGRAMS
The above table exhibits the correlation between educational programs and sales
between educational programs and sales growth of generic medicine manufacturing
accepted that the consistency between educational programs and sales growth of
medicine manufacturing companies by educational programs. The value of Durbin
autocorrelated means that a unit increase in educational programs (independent
significant impact of educational programs related to promotional mix strategies on
that there is a significant impact of educational programs related to promotional mix
158
TABLE 5.77: ANOVAA EDUCATIONAL PROGRAMS RELATED TO
The value of F is 5.152 for the Educational Programs related to promotional mix
regression line depicting the variance in the dependent variable. Hence, Educational
Programs related to promotional mix strategies is useful as a predictor of sales growth
TABLE 5.78: COEFFICIENTSA EDUCATIONAL PROGRAMS RELATED TO

regarding the educational programs, then 1.47 unit is increased in output regarding the
159
HISTOGRAM 5.9: EDUCATIONAL PROGRAMS RELATED TO
normally distributed for the independent variable educational programs. Thus, the
model for regression is accepted
160

TABLE 5.79: MODEL SUMMARYB PROMOTIONAL OFFERS RELATED

The above table exhibits the correlation between promotional offers and sales growth
promotional offers and sales growth of generic medicine manufacturing companies
consistency between promotional offers and sales growth of generic medicine
manufacturing companies by promotional offers. The value of Durbin Watson is
1.771 higher than the tabulated value (1), so both variables are auto correlated means
that a unit increase in promotional offers (independent variable) resulted into increase
in sales growth of generic medicine manufacturing companies (dependent variable).
Therefore, the hypotheses namely, 'there is no significant impact of promotional
offers related to promotional mix strategies on sales growth of generic medicine
of promotional offers related to promotional mix strategies on sales growth of generic
161
TABLE 5.80: ANOVAA PROMOTIONAL OFFERS RELATED TO
The value of F is 8.461 for the Promotional Offers related to promotional mix
regression line depicting the variance in the dependent variable. Hence, Promotional
Offers related to promotional mix strategies is useful as a predictor of sales growth of
generic medicine manufacturing companies.
TABLE 5.81: COEFFICIENTSA PROMOTIONAL OFFERS RELATED TO

regarding the promotional offers, then 1.87 unit is increased in output regarding the
162
HISTOGRAM 5.10: PROMOTIONAL OFFERS RELATED TO
normally distributed for the independent variable promotional offers. Thus, the model
for regression is accepted.
H010: There is no significant impact of ground activity related to promotional mix

Ha10: There is a significant impact of ground activity related to promotional mix

163
TABLE 5.82: MODEL SUMMARYB GROUND ACTIVITY RELATED TO
The above table exhibits the correlation between ground activity and sales growth of
generic medicine manufacturing companies. The correlation value is .376 between
promotional offers and sales growth of generic medicine manufacturing companies
consistency between ground activity and sales growth of generic medicine
manufacturing companies by ground activity. The value of Durbin Watson is 1.779
unit increase in ground activity (independent variable) resulted into increase in sales
growth of generic medicine manufacturing companies (dependent variable).
Therefore, the hypotheses namely, 'there is no significant impact of ground activity
of ground activity related to promotional mix strategies on sales growth of generic
164
TABLE 5.83: ANOVAA GROUND ACTIVITY RELATED TO
The value of F is 38.533 for the ground activity related to promotional mix strategies
at .000 < 0.05. The result indicated that the model is fit to explain the regression line
depicting the variance in the dependent variable. Hence, ground activity related to
promotional mix strategies is useful as a predictor of sales growth of generic medicine
TABLE 5.84: COEFFICIENTSA GROUND ACTIVITY RELATED TO

regarding the ground activity, then 3.76 unit is increased in output regarding the sales
growth. The value is significant at .05.
165
HISTOGRAM 5.11: GROUND ACTIVITY RELATED TO PROMOTIONAL
MIX STRATEGIES
normally distributed for the independent variable ground activity. Thus, the model for
regression is accepted.
H011: There is no significant impact of Personal Relationship related to promotional

166
Ha11: There is a significant impact of Personal Relationship related to promotional
TABLE 5.85: MODEL SUMMARYB PERSONAL RELATIONSHIP RELATED

The above table exhibits the correlation between Personal Relationship and sales
between Personal Relationship and sales growth of generic medicine manufacturing
companies indicating no correlation and is insignificant at .464 > 0.05. Hence, it is
accepted that the consistency between Personal Relationship and sales growth of
generic medicine manufacturing companies is insignificant. The value of regression
is not accepted at five per cent level of significance. Therefore, the hypotheses
namely, 'there is no significant impact of Personal Relationship related to promotional
mix strategies on sales growth of generic medicine manufacturing companies' is
accepted and concluded that there is no significant impact of Personal Relationship
H012: There is no significant impact of ethical selling related to promotional mix

Ha12: There is a significant impact of ethical selling related to promotional mix

167
TABLE 5.86: MODEL SUMMARYB ETHICAL SELLING RELATED TO
The above table exhibits the correlation between ethical selling and sales growth of
generic medicine manufacturing companies. The correlation value is .314 between
ethical selling and sales growth of generic medicine manufacturing companies
consistency between ethical selling and sales growth of generic medicine
manufacturing companies by ethical selling. The value of Durbin Watson is 1.779
unit increase in ethical selling (independent variable) resulted into increase in sales
growth of generic medicine manufacturing companies (dependent variable).
Therefore, the hypotheses namely, 'there is no significant impact of Ethical Selling
of ethical selling related to promotional mix strategies on sales growth of generic
168
TABLE 5.87: ANOVAA ETHICAL SELLING RELATED TO PROMOTIONAL
MIX STRATEGIES
The value of F is 25.603 for the Ethical Selling related to promotional mix strategies
at .000 < 0.05. The result indicated that the model is fit to explain the regression line
depicting the variance in the dependent variable. Hence, Ethical Selling related to
promotional mix strategies is useful as a predictor of sales growth of generic medicine
TABLE 5.88: COEFFICIENTSA PROMOTIONAL OFFERS RELATED TO

In the table, the value of Beta is .314 indicating the increase in promotional strategies.
It means that if one unit is increased in inputs of promotional strategies regarding the
ethical selling then 3.14unit is increased in output regarding the sales growth. The
value is significant at .05.
169
HISTOGRAM 5.12: ETHICAL SELLING RELATED TO PROMOTIONAL
MIX STRATEGIES
normally distributed for the independent variable ethical selling. Thus, the model for
regression is accepted.
H013: There is no significant impact of Innovative Services related to promotional

170
Ha13: There is a significant impact of Innovative Services related to promotional mix
TABLE 5.89: MODEL SUMMARYB INNOVATIVE SERVICES RELATED TO

The above table exhibits the correlation between Innovative Services and sales growth
Innovative Services and sales growth of generic medicine manufacturing companies
consistency between Innovative Services and sales growth of generic medicine
manufacturing companies by Innovative Services. The value of Durbin Watson is
1.729 higher than the tabulated value (1), so both variables are autocorrelated means
that a unit increase in Innovative Services (independent variable) resulted into
increase in sales growth of generic medicine manufacturing companies (dependent
variable). Therefore, the hypotheses namely, 'there is no significant impact of
Innovative Services related to promotional mix strategies on sales growth of generic
medicine manufacturing companies' is rejected and concluded that there is a
significant impact of Innovative Services related to promotional mix strategies on
171
TABLE 5.90: ANOVAA INNOVATIVE SERVICES RELATED TO
The result indicated that the model is fit to explain the regression line depicting the
variance in the dependent variable. The value of F is 6.699 for the Innovative Selling
related to promotional mix strategies at .010 < 0.05. The result indicated that the
model is fit to explain the regression line depicting the variance in the dependent
variable. Hence, Innovative Selling related to promotional mix strategies is useful as a
predictor of sales growth of generic medicine manufacturing companies.
TABLE 5.91: COEFFICIENTSA INNOVATIVE SERVICES RELATED TO

regarding the innovative services, then 1.67 unit is increased in output regarding the
172
HISTOGRAM 5.13: INNOVATIVE SERVICES RELATED TO
normally distributed for the independent variable innovative services. Thus, the model
H014: There is no significant impact of Point of Purchase related to promotional mix

Ha14: There is a significant impact of Point of Purchase related to promotional mix

173
TABLE 5.92: MODEL SUMMARYB POINT OF PURCHASE RELATED TO
The above table exhibits the correlation between Point of Purchase and sales growth
Point of Purchase and sales growth of generic medicine manufacturing companies
consistency between the Point of Purchase and sales growth of generic medicine
only 33.1 per cent variance is explained in sales growth of generic medicine
manufacturing companies by Point of Purchase. The value of Durbin Watson is 1.625
unit increase in Point of Purchase (independent variable) resulted into increase in
Therefore, the hypotheses namely, 'there is no significant impact of Point of Purchase
of Point Of Purchase related to promotional mix strategies on sales growth of generic
174
TABLE 5.93: ANOVAA POINT OF PURCHASE RELATED TO
The value of F is 115.594 for the Point of Purchase related to promotional mix
regression line depicting the variance in the dependent variable. Hence, Point of
Purchase related to promotional mix strategies is useful as a predictor of sales growth
TABLE 5.94: COEFFICIENTSA POINT OF PURCHASE RELATED TO

regarding the point of purchase, then 5.75 unit is increased in output regarding the
175
HISTOGRAM 5.14: POINT OF PURCHASE RELATED TO PROMOTIONAL
MIX STRATEGIES
normally distributed for the independent variable Point of Purchase. Thus, the model
176
CHAPTER 6
FINDINGS & DISCUSSIONS
6.1: FINDINGS REGARDING MEDICAL REPRESENTATIVES
1. For the promotional tools, most MR stated that Gift to Doctors is beneficial in
promoting the drugs followed by advertisements in Journals. Journals are
reachable to all the Practitioners, which is the best way to reach Doctors or
Practitioners in bulk. Apart from these tools, there are many ways to capture
the attention like Sponsorship to Doctors, Physician samples, personal selling,
mail to them about drugs information, events and conferences are sponsored
by MR, conduction of Symposia or Meetings, organization of camps, Press
release etc.
2. While analyzing the preferences of MR towards capturing the market share for
generic medicine, the researcher found that the first rank goes to well-trained
MR as they have a competency to convince the Doctors and their confidence
level is high. It is also found that the company's relationship with the doctor's
community also helps in promoting drugs. Apart from these some other
attributes also contributed in capturing the market share like company's
relation with dealers like wholesalers and retailers, Product segmentation and
differentiation as strategy, Maximum market coverage, New product
development (R&D), segment operating in, Entry in overseas market etc.
3. The findings indicated the weightage on sales volume for generic medicine
that the essential factor is the value added to the brand has accelerated sales
volume followed by Product line extensions. This has substantially increased
sales in the server market. Besides these, other ways also contributed in
increasing the sales like the share of the server market is expected to increase
considerably if firms position their brands correctly in the minds of the
prospects, In order to enhance overall sales, positioning of the brand by
specific usage is recommended, Marketers have to position their offerings in
177
terms of price/quality if they have to maximize the sales, market segmentation
on the basis of income, sex, age or lifestyle has substantially improved overall
sales, A firm may set a high initial price to attain maximum sales in short
duration of time, A firm that positions its products in the high-price high-
quality segment of the market may not necessarily achieve a more extensive
sales etc.
4. The result stated that no difference was observed in the promotional tools
among the types of generic medicine companies (small, medium and large) as
these companies equally perceive the importance of promotional tools as per
its capability in ruling the Indian market. These companies have an idea about
promotions' role, and they allocate some budget on their promotions directly
or indirectly.
5. The findings also disclosed that no significant difference was observed in the
industry's market share in terms of profitability among the types of generic
medicine companies (small, medium and large). The researcher found that as
per their capital, they gain profit in the market and position its drugs. It means
that they get an equitable proportion of profit according to investment.
6. The findings revealed that no difference in the mean value of generic medicine
companies' promotional tools with regard to experience in this field as mean
value is equally perceived. Irrespective of expertise, medical representatives
apply all the promotional strategies in accelerating the sales of generic
medicine.
7. The research also disclosed that companies are able to capture a market share
in terms of profitability as medical representatives learn from their experience
how to monitor the market. The findings also indicated that in boosting the
sales volume, medical representatives have attained growth irrespective of
background.
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8. The researcher found that the mean value of generic medicine companies'
promotional tools concerning companies' annual turnover, no difference was
observed, so it is concluded that mean value is equally perceived for the
companies' annual turnover.
9. The result also showed that the mean value of the market share in the industry
in terms of profitability concerning companies' annual turnover, is also equal
for the companies' annual turnover.
10. The research revealed that those companies who have sales less than ten
crores are in a better position to boost sales than other groups of an annual
turnover. It is also stated that as annual turnover increases, the profit of
companies is also increased but at peak point companies have to face break-
even point.
11. Through factor analysis total, eight factors have been identified related to
promotional mix strategies contributing to the sales growth of generic
medicine companies. These eight factors were: Conduction of
Conferences/Symposiums, Educational Programs, Direct Advertisements,
Promotional Events, Offering High Bonus, Lower Price, Technology Savvy
and short-term incentives.
12. The researcher found that conduction of conferences/symposium related to

promotional mix strategies has an impact on the sales growth of generic
medicine manufacturing companies. Companies conduct conferences on
generic medicines to promote on a large scale so that maximum relationship
can be built up for future sales. Companies get films made on their products
and arrange film show for doctors, usually inwards of hospitals, and for
general physicians, Companies that run the social cause-related marketing
campaigns (social marketing) have subsequently expanded the share of their
served market and Companies promote the drugs unethically by hiding their
safety profiles, by exaggerated efficacy claims of 'me-too drugs', irrational
drug combinations and off label use. Hence, all these causes are responsible
for sales.
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13. The correlation between Educational programs and sales growth is observed
and found that educational programs are a good Source of promotions. Drug
Company sponsors academic journals for generic medicine advancements that
have the latest updates containing the relevant information and a good start for
researchers. Digital Pharma helps improve customer service and consequently
strengthens brand image by maintaining customer relationships or providing
innovative services based on digital capabilities (disease management
applications, medical education, and web community platforms.
14. The positive relationship is also found between direct advertisements and sales
growth for generic medicine. It is noted that advertisements create interest
amongst physicians, and free sample generates the first trial for any new brand
& secure a larger number and more significant customer back.
15. Promotional events have also correlated with the sales growth as after the sale
of medicines, margin or percentage of profit is increased. It also includes
tours/trips' arrangement to dinner/ party is also a tool for promotions.
16. The researcher also found a correlation between offering a high bonus and the
sales growth for generic medicine. Trade bonuses offer from the company are
a tool to boost companies' sales in the market and offer an increased premium
to retailers to promote a product's sale.
17. The result found no correlation between the lower price and sales growth of
generic medicine; adopting the lowest pricing cannot be a strategy for the
companies to capture better market share. Hence, the lower price is not
considered as a component forsake.
18. The positive relationship is also found between technology and sales. Indian
doctors are technology savvy (they use all the modern electronic gadgets for
communication). It saves time and opens new paths for research &
development.
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19. The result showed a positive correlation between short term incentives and
sales growth of generic medicine as doctors spare time to the companies as per
the relationship with company's medical representative and Short-term
incentives to encourage the purchase or sale of a product or service.
6.2: FINDINGS REGARDING WHOLESALERS
1. Regarding the difference in the wholesalers' preferences towards the

promotional tools for generic medicine, the first rank goes to sponsorship to
Doctors for promoting the drugs and the least weightage is given to the
support of conferences and events. Wholesalers offer sponsorship directly to
Doctors in terms of monetary benefits for the promotions.
2. Regarding wholesalers' preferences towards boosting the sales volume for

generic medicine, the researcher found that first rank goes to enhancing
overall sales, positioning of the brand by specific usage is recommended
which is benefitted to accelerate the sales of generic medicine. The least
weightage is given to Product line extensions have substantially increased the
sales in the server market. In this path, maximum capital has been invested in
gaining profits for a long time, and it also demands always research &
developments.
3. For the promotional tools of generic medicine companies with regard to

experience in this field, the result indicated that experience-wise they have no
differences and they equally perceived the promotional tools for accelerating
the sales growth of generic medicine. As boosting the sales volume of generic
medicine companies with regard to experience in this field is concerned, the
findings disclosed that experience-wise respondents have differences as those
wholesalers have an expertise of 10.1 to 15 years, they are in a better position
to understand the essential tools of promotions and also have depth knowledge
of the market.
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4. For the promotional tools of generic medicine companies with regard to profit,
the findings show that profit wise they have different strategies for promoting
its drugs. Those wholesalers who earn profit 50.1 to 70 per cent they have an
attentive attitude towards promotions and perceive various opportunities for
better outcomes. It is found that according to its profit wholesaler opted
promotional strategies.
5. To boost the sales volume of generic medicine companies with regard to

profit, the findings revealed no difference in their perception towards sales
volume in terms of profit. It is concluded that irrespective of profit, no
difference in their perception is observed for accelerating the sales volume.
6. Through factor analysis, eight factors were identified related to the

promotional mix strategies for generic medicine. These factors were:
appealing social events, educational programs, promotional offers, ground
activity, personal relationship, ethical selling, innovative services and point of
purchase.
7. Regarding the impact of appealing social events related to promotional mix

strategies on sales growth of generic medicine manufacturing companies, it is
found that social events have its own importance in the placement of
appealing ads push your selling towards a larger market share and Social
events organized by the company are having an effect on a product sale.
Hence, it is evident that there is a significant impact of appealing social events
related to promotional mix strategies on generic medicine manufacturing
companies' sales growth.
8. Regarding the impact of educational programs related to promotional mix

found that Educational programs are a good Source of promotions as it
spreads knowledge and awareness among the people. In the digital era, a
website is a potent tool in creating awareness amongst physicians and Direct
182
to consumer advertisements create interest amongst physicians. Hence, it is
evident that there is a significant impact of educational programs related to
promotional mix strategies on generic medicine manufacturing companies'
sales growth.
9. Regarding the impact of promotional offers related to promotional mix

found that schemes on sale of medicines are also given which promotes
healthy competition in the market. Hence, it is evident that there is a
significant impact of promotional offers related to promotional mix strategies
on generic medicine manufacturing companies' sales growth.
10. Regarding the impact of ground activity related to promotional mix strategies
on sales growth of generic medicine manufacturing companies, it is found that
free samples are given to consumers are economical from the point of selling.
Progressive companies adopt this technique and prefer it to seminars and other
forms of direct communication and gain maximum earnings by combining
ground activations with the digital contest. Hence, it is evident that there is a
significant impact of ground activity related to promotional mix strategies on
generic medicine manufacturing companies' sales growth.
11. Regarding the impact of personal relationship related to promotional mix

found that doctors spare time to the companies as per the relationship with
company's medical representative and drug company sponsors academic
journals for promotions that contain all the information. Hence, it is evident
that there is a significant impact of personal relationship related to
promotional mix strategies on sales growth of generic medicine manufacturing
companies.
12. Regarding the impact of ethical selling related to promotional mix strategies
on sales growth of generic medicine manufacturing companies, it is found that
generic medicines give more profit when compared to the honest or branded
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drug and there is warning that use after prescribed by the physician. The price
should be fair as per moral law for the sake of humanity. Hence, it is evident
that there is a significant impact of ethical selling related to promotional mix
strategies on generic medicine manufacturing companies' sales growth.
13. Regarding the impact of innovative services related to promotional mix

found that Indian doctors are technology savvy (they use all the modern
electronic gadgets for communication) and maintain customer relationships by
providing innovative services based on digital capabilities (disease
management applications, medical education, web community platforms.
Hence, it is evident that there is a significant impact of innovative services
related to promotional mix strategies on generic medicine manufacturing
companies' sales growth.
14. Regarding the impact of short-term incentives related to promotional mix

found that email marketing, mobile phone-based SMS marketing platforms
can push into the capturing a big market, and no wholesaler can deny
providing generic medicines. For promoting generic drug, Doctors are
provided lucrative benefits and impact sales growth positively. Hence, it is
evident that there is a significant impact of short-term incentives related to
promotional mix strategies on generic medicine manufacturing companies'
sales growth.
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TABLE 6.1: COMPARISON OF WORK WITH OTHER STUDIES
S. No. Comparison Remark
1 In the present research, the various Both findings are similar in
promotional tools such as educational the context of marketing
events, conduction of conferences for mix strategies.
understanding, direct in touch with the
Physicians, are discussed that has been part
of marketing mix similarly, Khajuria and
Khajuria (2013) also discussed the impact of
various marketing strategies of generic
medicines manufacturers. Thus, to gain the
benefit of promotions, it is utmost important
to understand the preference of the
physicians. This becomes most important as
these practitioners are the guiding force
behind the final sale conversation of these
medicines.
2 The present study also emphasized on ethical Both results of the studies
selling as it is the corporate responsibility of concentrated on ethical
any firm to take care of society. Hence, this sales as a part of social
finding even in alien with the study by responsibility.
Amudha, Alamelu, Cresenta and Badrinath
(2015) in their study specifically highlighted
the ethical challenges faced by the pharma
industry. The promotion activities in the
pharma industry are performed by sales
personals of manufacturers, and
advertisement of the product is initiated
through electronic or print media. Authors
describe ethical advertisements should not
make erroneous claims and should maintain
the decorum.
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3 The present research has thrown light on the Both findings have
various marketing strategies and their similarities, and these
outcomes for Indian pharmaceutical sectors. added that sales growth
The study by Mishra, V. (2013) has revealed depends upon the
the marketing strategy are collective efforts promotion of drugs.
of the marketing representative, whole seller
and retailers, in such a manner that the core
customer which in case of pharma sector is
the doctor should be served. The selection
“four Ps of marketing, i.e., product, price,
promotion, place” is done with the most
practical combination of marketing activities
to ensure success.
4 The present study has gathered the responses The results of both
for promotional tolls which are highly researchers’ studies have
preferred by the respondents, and the rank is the same perspectives as
given to consider the most. In the same way, they wanted to check the
Khajuria, A. (2013) has undergone the study essential factors which
to identify the numerous marketing strategies contribute to promotion of
adopted by the pharmaceutical houses to the generic drugs.
influence the Physicians on prescribing
drugs. The author has highlighted 17
different promotional methods adopted by
the pharmaceutical houses; he also
developed a questionnaire and presented to
34 postgraduate doctors and 21 graduate
doctors. The responses were recorded, and
weightage was given.
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5 The present study also discussed the open Both studies have the same
communication between buyer and seller results in terms of
through many social events, symposiums, communication related to
conferences, seminars to impart the best and promotional strategies.
relevant information. The survey by Kotler
and Armstrong (2013) has also defined the
promotional mix as a tool of communication
used to inform the target market customers
about goods and services, to help facilitate
the exchange process. It is concerned with
informing, educating, persuading and
reminding customers.
6 The present study argued the public relations Both studies have the same
that is the most important in promotions of concept for promoting
the generic drug medicine that is contacted medicines through
in Physicians or Consultants who are the first Physicians or Consultants.
promoter. This study supports the results of
Ljupka Naumovska (2016) analyzed the
public relation as a tool for the high level of
transparency in internal and external
communication of the organization. The
results were so that the marketing
representatives have detained their attention
on public relations for communications.
They have also shown increased interest in
the use of public relations as a marketing
tool and decrease the usage of advertising.
The primary reason behind the shift is
basically due to its cost and efficiency, both
in favour of public relations.
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7 The present study discussed on a direct The present study is in
advertisement that convinces the Physicians contrast to the survey by
or Consultants about the medicines as they Bhatoda as he considers
are the only person who prescribes the drugs the consumers directly, but
to their patients but the study by Bhatuda S. this study defines the role
(2015) analyses the response of of Doctors.
pharmaceutical product advertisement when
done directly to the consumer (DTC) and
also how particular gender endorsers affect
the buying patterns of consumers. The study
was done in the US, and a sample size of 514
adults was taken, after the analysis, the result
showed that consumers have a positive
attitude towards the ads endorsed by experts
and celebrity endorsers when compared to
non-celebrity endorsers.
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CHAPTER 7
CONCLUSION & SUGGESTIONS
7.1: CONCLUSION
The researcher found that in the Covid-19 Pandemic, there is a need to modify the
strategies, especially in the generic medicine companies. As day by day, the cases are
increasing, so they have to prepare the changes and continuously strive to meet the
public's demands. These have to strengthen the eight pillars of promotional mix
marketing strategies such as appealing social events, educational programs, offers,
ethical selling, innovative services, personal relationship, short term incentives, etc.
The findings disclosed that sales growth is correlated with these pillars mentioned
above to make competent the generic medicine companies. The new development is
required along with the rising cases, and the main thing is to supply rapidly across
India. India is concerned with the Health care system, and this system depends upon
the health workers and the generic medicine companies. The study also noted that
during the implementation of the marketing strategies the generic medicine
companies endure, many challenges include unacceptance for change, financial
performance, regulations levied by the government, technological changes, legal
requirements, and competition.
7.1.1: OBJECTIVE WISE CONCLUSIONS HAVE BEEN DRAWN FOR

BETTER UNDERSTANDING
1. To analyze and present a marketing strategic framework of the Indian

Under this objective, the research discussed that in establishing the marketing
strategies, manufacturing industry deals with the hard-core selling. It has to deploy
salesforce or medical representatives in different locations to increase the
representatives' hard work and aggressiveness. The marketing aspects have to pay
189
many visits and encourage doctors to go for the prescription. In this method, medical
representatives regularly visit the Physicians or Consultants and intimate them about
medicine's latest developments. In this way, they motivate them to prescribe the
medication to their patients and them directly in contact with their patients. Many
offers like holiday plan for Doctors, expensive gift or some other valuable items, they
are lured by the representatives. The company proposed some model on which they
are asked to go onto the path. A medical representative is the backbone of the pharma
industry. The manufacturing companies require more skilled field force in selling
these products directly to buyers. The MR has better knowledge in convincing the
industrial customer and involved the Doctors even in promoting the medicines. The
Indian pharmaceutical industry presents both a competitive threat and partnering
opportunities with high-quality research, low-cost manufacturing facilities and
educated personnel. The pharmaceutical sector passed many phases in which they
have to see the rules and regulations constituted by the government. The Indian
industry has moved on repackaging and preparation of formulations from imported
bulk drugs.
2. To identify the factors associated with the promotional mix strategies in

The researcher found that various factors that lead to promotional fix strategies to its
applicability in the generic medicine manufacturing industry are direct advertisement,
educational programs, lower price, technology savvy, offering a high bonus,
promotional events, and short-term incentives. These factors have noticed sales
growth. Pharmaceuticals companies for marketing their products generally exercise
two models based on push and pull strategies for promotion. The price of the drugs
should be affordable by the public, and the representatives are instructed to grasp the
knowledge about the drugs/medicines so that they can spread ethical issues among
them. Due to Covid-19, the concept of promoting medicines has totally changed, and
now these will be replaced by digital marketing so industries would be careful in
explaining all the pros and cons to the Doctors/Physicians or the patients. The
knowledge would be shared and maintain transparency for sustaining social
responsibility.
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3. To evaluate the viewpoint of the marketing anchorages on the effectiveness of
existing promotional mix strategies and future plans.
The world of Pharma will also convert into a digital world where all have to make its
presence virtually. In the ensuing years, the Internet will become a reasonable force in
capturing a larger market share. It is an inescapable fact that today to complete the job
is so complicated in today's world. There should be teamwork in developing drugs
and helping out channel the distribution network. Hence, it has quickly become an
accepted practice to use social media internally and externally to achieve
organizational outcomes. In particular, it is commonly agreed that social media sites
have had a profound effect by changing the efficiency of strategies. At present, the
time of health emergency, pharma companies, however, is a vital industry confronting
extreme challenges to conducting its business movement. The innovation of new
medicines for various diseases is delayed due to all progressing and pre-planned
clinical trials. Important seminars and meetings arrange for medical experts are
getting delayed or are now dropped. There is a restriction on importing all raw
materials, which will influence the manufacturing process and prompt lower sales.
Inadequate auxiliary supplies, for example, containers, seals and packing material for
medicine will impact the finished product, the effect of which is relied upon to be felt
over a time of next 3 to 4 quarters. This lack of supply may also prompt valuing
instability in future. Industries will attempt to keep up stocks for a more extended
period, and buffer capacity will be expanded, influencing the stock cycles.
4. To analyze the viewpoint of the Medical Representatives and Wholesalers &

Retailers on effective implementation of existing promotional mix strategies.
The researcher found that all projected acquisitions and tie-up, new projects and
ventures have been postponed for some time. However, every critical situation brings
with it a chance and this time, and the favourable conditions knock the doors of small-
scale pharma industries. It is indeed conceivable that for rate reducing strategies,
primary medicines manufacturer may outSource the plans of secondary significance
to small pharma industries. Significantly, the local suppliers can profit by taking hold
of new tasks and, whenever followed supportive government strategies, can
191
encourage the pharma business of resource restricted as well as developed nations. In
COVID-19 influenced area, International Pharma Trade Association (IPTA), World
Trade Organization (WTO) and other trade authorities of every country are attempting
to reduce the shortage of necessary medicines, increase because of various export
bans and at the same time need requisition of some medical gadgets and essential
drugs. Multiple nations have begun infusing reserves in foreign trade markets, to
confront the critical situations posed by COVID-19. Russia has brought in an ideal
treatment for FX loans gave to pharma and clinical supplies industries. The Reserve
Bank of India has continued the realization time frame for trade process so drives can
hold their purchaser deals in future. This will be helpful when export from Europe and
the US as they are more significant importers from India and most influenced areas
because of COVID-19 pandemic. To study the effect of promotional mix strategy on
the selected companies' sales growth and its dealers.
5. To study the effect of promotional mix strategy on the sales growth of the
selected companies.
The objective reveals that in developing countries like India has witnessed much
crisis, especially in the health care sector, which is a challenge for health workers to
face and establish options like a front line. The study stated that the promotional mix
strategies influence sales growth, and various tools are introduced in promoting the
drugs. There are two promotional channels for the company: direct company's dealers
and the other through representatives who are involved in branding the image of the
company. These representatives directly contact with the Physicians/ Consultants for
promoting the drugs. In this promotion, face to face medium is the best in convincing
the dealers or Doctors. But this phase has been totally changed and found that due to
COVID-19, virtual sales are promoted to keep social distancing with the people. This
will have been a strong challenge for the pharmaceutical companies as the Sales force
is to be quite intelligent in creating the best understanding with the dealers as it is also
observed that not demand of drugs is increased. There is a challenging task for the
pharmaceutical companies to allocate a fair amount of budget for research and
development.
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6. To study the effect of promotional mix strategy on the profitability of the
selected companies.
Under this objective, it is found that promotional mix strategies positively affect the
profitability of the industries as these strategies move on increasing the efficiency of
the distribution channel. Supply chains are likely to undergo significant restructuring,
but the process is expected to set off national debates over the trade-offs involved.
Most notably, Lewis points out, repatriating more drug manufacturing from offshore
suppliers will increase the security of supply and product quality but is likely to
require higher prices to offset the higher costs. Ultimately, pharmaceutical companies
are likely to see their margins squeezed between price pressures on the top line and
the higher costs of supply-chain restructuring and new channels for interacting with
providers and patients. Even broader changes are possible as government and citizen
views of health care as a “public good” evolve. Healthcare providers and pharma
companies will need to work even harder to manage costs as they broaden
accessibility to care and medicines. In the pharmaceutical industry, various marketing
strategies are existed focusing on integration to make out differentiation in products,
and through the expansion of companies, now the business has no limits. Like
integration and merger, these strategies led to pharmaceutical industries to a great
height of growth and earn high profits and create a space for the competitive
advantage.
7. To develop a Model on Promotional Mix Strategies from the perspectives of

Medical Representatives and Wholesalers & Retailers in Indian generic medicine
The study suggested developing a normative framework for proper implementation of

the promotional mix strategies in Indian generic medicine manufacturing companies
is well prepared for this move; there's a comprehensive level of fluctuation with
regards to the development of their virtual health care supplier commitment abilities.
Of course, the various computerized solutions that present in the current market that
can support them. Many software dealers and IT service suppliers have created
inventive CRM solutions, for example, around customized engagement, interactive
193
enumerating, and live video through natural mobile applications and online interfaces,
so as to efficiently attract medical care suppliers virtually. Because of the health
emergency, numerous dealers have just a while ago started to improved item
usefulness. For example, Veeva just now begun new capacities for distant medicine
testing in Veeva CRM Engage Meeting.
The organization also declared a various partnership for digital field engagement.
However, going ahead, getting virtual deals right could be a significant main factor
for whether pharmaceuticals industries can change over broad Research &
Development endeavours and patent successes into commercially successful
treatments.
TABLE 7.1: OBJECTIVE V/S RESULTS
S.No. Objective Results

1 To analyze and present a Under this objective, the researcher
marketing strategic discussed that in establishing the marketing
framework of the Indian strategies, manufacturing industry deals with
generic medicine the hard-core selling. It has to deploy
manufacturing industry. salesforce or medical representatives in
different locations to increase the
representatives' hard work and
aggressiveness.
II To identify the factors The researcher found that various factors
associated with the that lead to promotional fix strategies to its
promotional mix strategies in applicability in the generic medicine
generic medicine manufacturing industry are direct
manufacturing industry. advertisement, educational programs, lower
price, technology savvy, offering a high
bonus, promotional events and short-term
incentives. These factors help to achieve
sales growth.
194
III To evaluate the viewpoint of It has quickly become an accepted practice
the marketing anchorages on to use social media internally and externally
the effectiveness of existing and achieve organizational outcomes. In
promotional mix strategies particular, it is commonly agreed that social
and future plans. media sites have had a profound effect by
changing the nature of efficiency of
strategies.
IV To analyze the viewpoint of The researcher found that all projected
the Medical Representatives acquisitions and tie-up, new projects and
and Wholesalers & Retailers ventures have been postponed for some time.
on effective implementation However, each and every critical situation
of existing promotional mix brings with it a chance and this time; the
strategies. favourable conditions knock the doors of
small-scale pharma industries.
V To study the effect of The results reveal that in developing
promotional mix strategy on countries like India has witnessed much
the sales growth of the crisis, especially in the healthcare sector, this
selected companies. is a challenge for health workers to face and
establish options like a front line. The study
stated that the promotional mix strategies
influence sales growth, and various tools are
introduced in promoting the drugs.
VI To study the effect of Under this objective, it is found that
promotional mix strategy on promotional mix strategies positively affect
the profitability of the the profitability of the industries as these
selected companies. strategies move on increasing the efficiency
of the distribution channel.
VII To develop a Model on The study suggested developing a normative
195
Promotional Mix Strategies framework for proper implementation of the
from the perspectives of promotional mix strategies in Indian generic
Medical Representatives and medicine manufacturing companies is well
Wholesalers & Retailers in prepared for this move; there's a
Indian generic medicine comprehensive level of fluctuation with
manufacturing companies. regards to the development of their virtual
health care supplier commitment abilities.
7.2: SUGGESTIONS
From the results, the following recommendation has been surfaced:
1. More focus will be required on research & development in preparing the

vaccine as in India, the research process is prolonged.
2. More funds would be allocated by the Government to Research &

Development so that research may be carried out in catering the challenges
occurred by the pandemic. There is a need to strengthen the positioning of the
products.
3. In the existing situation, the Indian government needs to take essential

measures to eliminate the technical and economic obstacles that will inspire
the pharmaceutical companies to ramp up manufacturing and minimize the
dependency of the pharma companies on the Chinese market.
4. By spreading the sales force through a digital platform and online

communication, a well-executed multichannel method can achieve objectives
and speed up outcomes.
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5. A multichannel commercial approach can attain a broader target audience to
supply core branded generics messaging leveraging newly adopted channels
(like digital access). This approach's fundamental aim is instilling faith and
attention amongst health care providers and buyers for the pharmaceutical
parent industry. The sales representative may then have a chance to
concentrate on reinforcing this messaging in strategically vital markets. The
suppliers can also be extra possible to be receptive to e-Detailing and e-
Learning applications. It has been stated that the sales representative ought to
concentrate on the large town with the largest, most technologically
progressive populations.
6. Commonly, a potential to gain believe and trained practitioners about a

product company in rising markets will probably depend on personal
interactions with a sales representative. Although, a combined multichannel
approach, particularly for branded medicines, can boost the company brand
and supply lower-cost options that align with these decrease-priced markets.
7. Pharma companies can make their rising market presence by using sponsoring
domestic certification and training projects in association with domestic and
worldwide institutions. Giving knowledge about a company's products and the
diseases they tackle can increase consciousness and bring out new income
possibilities in markets that might also have much less comprehension of
Western medicine. One avenue includes the introduction of training regimens
to “certify” medical practitioners in using a company's product. The project
will supply free insulin and supplies and a complete training guide for
healthcare expert and diabetes educators.
8. Promotional schemes can help hold the relevance of branded generic choices
in a market and do upfront portfolio lifecycle planning and take measures to
recognize goal section demands can place industry in a robust industrial role
with its branded generic offerings.
197
9. Firms with a branded generics portfolio tend to have a varied concentration on
therapies. By conducting careful market research, this can foster the
probability for them to increase their depth in a precise remedy and expand a
desirable understanding of a market's medical needs, which can help them
acquire focus amongst physicians.
10. Becoming involved domestically can positively boost up a large-scale

pharmaceutical player's status in the eyes of local healthcare providers,
locating it as a dynamic and progressive firm that provides high-quality
products. However, firms need to weigh the charges and profits related to
setting up local R&D efficiency. Various components can play into this
situation, together with nationalistic protectionism, which boosts domestic
innovations by using blockading MNCs' entry and well-known negative ideas
of government officials brought about by way of their costing, payment, and
insurance decisions that concentrate on containing healthcare costs.
11. Advertising of prescription-based medicines treatment is indirect marketing,

where the decision-maker is a Doctor and MR, or managers are the
influencers. Therefore, growing and retaining healthy connections with
Doctors is essential. Due to cut-throat opposition in this field, illegal advertise
have expanded a lot. To keep away from this, easy moral things to do can be
carried out like imparting excellent academic references, arranging live
seminars and workshops to sharpen the competencies of Doctors, to enhance
knowledge of Doctors using asking them to be a part of a medical library
owned via pharma firms, welcoming Doctors on every fortnightly or weekly
to attend case study sessions, online seminars, webinars or teleconferencing to
exchange the practical experiences of outstanding Doctors globally. These
drives will be genuinely beneficial to pharma industries for equitable brand
betterment.
12. Modern advertising techniques like social networking sites, online websites,
emails, cell phone net-working, and so on must be used for brand advertising
to save expenses and enhance advertising and marketing effectiveness. Care
198
ought to be taken to keep away from doctors who don't like these innovative
tools. Although detailing on laptops, I-pads and Tablets will create
attentiveness of Doctors and decrease the weights of MR's and Managers;
consequently, they ought to be the first choice of most.
13. As suggested by various Doctors, physician's samples have to be stopped for

well-established medicines and vacations. Samples need to be supplied solely
for new drugs or drug treatments and that too in ample dosage quantity.
'Customized sampling' as per the Doctors' necessities can begin for the private
use or prerequisite of Doctors. This will keep extensive wastage of sampling
overheads, and the same can be utilized to decrease the expenses of drugs as
predicted by way of all the stakeholders.
14. To make an excellent social image, the pharmaceutical industry should take
social welfare drives by arranging free medical camps at orphanages. They
can even together begin a charitable hospital facility for the social service to
the poor, needy, economically backward patients.
15. After implementing product patent in India, pharma companies should

concentrate on establishing their R&D unit for the innovation of progressive
drug molecules. There are plenty of possibilities in this for treating diseases
like cancer, HIV, heart diseases, swine flu, tuberculosis, dengue, Ebola,
arthritis, diabetes and so on.
7.3: RECOMMENDATIONS
1. Doctors don't like to meet many MR visits, so MR visits should be limited to a

maximum one to the majority of Doctors and one or two trips for important
Doctors.
2. Launch of new medicines and vaccines are restricted maximum to four to six
per year, invention of different drugs and vaccines can't be given proper
promotion by MR's and also not supported by Doctors, because of which
199
efforts taking in the launch of new products & its expenses outcomes are like
wastage of resources. Additionally, the latest products inventory available at
chemists shop and stockiest shelves may also get expired or in future stay as
non-moving which can be added to above overheads. Overall, it proved as a
loss-making project in place of business opportunity. The researcher would
also like to recommend that pharmaceutical firms concentrate on initiating
their own hospitals or begin making strategic alliances with current reputed
big hospitals in leading cities. This will make secure them guaranteed business
as well as it can save large promotional overheads also.
3. For selling and advertising of specialist healthcare packages, various pharma

firms' leaders will also have to promote comprehensive approaches, a strategy
that will need main institutional and cultural substitutes, involving the
development of new skills and ways to market. One of the significant
decisions pharma industries confronting will be which type of business
approach to be used.
4. As their centre point switches to professional drugs, various industries will
have to alternate their advertising and sales features pretty substantially.
Rather than hiring lots of sales representatives to knock on the door of familiar
practitioners, they will have to hire a small group of professionals who can
bargain with big healthcare payers and communicated to highly certified
consultants on an equal footing (much as medical device producers market
their products to surgeons today).
7.4: SUGGESTIONS TOWARDS IMPLEMENTATION, OBSTACLES AND

WAYS TO OVERCOME
1. High quality and low costing: Indian pharmaceutical companies have

always worked on supplying budgeted generic drugs to the rest of the
world. The quality with low costing is essential, and thus for more sale and
usage of generic medicines, the industry certainly needs to maintain high-
quality drugs. It is necessary for the top manufacturers but also for the new
200
local manufacturers so that they can compete with the top branded
2. The production capacity of the units: Across the globe, India's pharma
sector is the only manufacturing sector with maximum “United States
Food and Drug Administration” approved manufacturing units out of the
United States. This gives an edge to the manufacturers of generic
medicines to produce the vaccine for COVID-19 and other vaccines for
deadly diseases and supply to the rest of the world.
3. Atamnirbhar Scheme: In the wake of pandemic COVID-19 the Indian
pharmaceutical industry's dependence on China was highlighted and thus
under the Atamnirbhar scheme of government encouraged local
manufacturers to produce surgical masks, personal protection (PPE) kits
and sanitizers giving scope to new entrepreneurs.
4. Bulk Drug Manufacturing: As per the fundamental research it is
evidently clear that India is the third-largest producer of generic drugs but
still dependent on China for bulk drugs used as raw materials for
production of generic medicines. Thus, to make a pharmaceutical
company, self-sufficient NitiAayog has sanctioned 3000 crores to make
three bulk drug parks to manufacture 53 critical bulk drugs. This will
allow more manufacturers to evolve.
5. Research and Development: It is also evident that one of the obstacles
that the industry faces is lack of R&D. It has become necessary for the
manufacturers and government to encourage more funds so that this
weakness can be converted in the coming future into an opportunity.
COVID-19 has highlighted the importance of R&D in the sector.
201
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QUESTIONNAIRE
A Study of Promotional Mix Strategies of Selected Generic Medicine

Manufacturing Companies in Madhya Pradesh
I am a Ph.D Student currentlyundertaking a Research on A Study of Promotional Mix

Pradesh. I will begratefulifyouwouldkindlyextendyourkindcooperation in
collectingthisusefuldatafromyou. Youropinion will strictlybeyoursanditdoes not
haveanyreflection on yourpositionandtheorganizationwhereyouareworking. The
Information collectedshallbeusedpurelyforacademicpurpose.
Section –A
PROFILE OF THE COMPANY
1. Name of the Company :
2. Type of the Company : Small Scale Medium Scale Large Scale
3. Experience in the field : Less than 5 Years 5-10 years
10-15 years Above 15 years
4. Specify your Company’s Annual Turnover:
Less than 10crore
11 to 15crore
Above 15 crore
213
Section –B
Indicate your response on the promotional tools in accordance with the importance
choice (where 1 is most important and 10 as least important so put numbers
accordingly):
S. No. Promotional Tools Rank
1 Gifts to Doctors
2 Sponsorship to Doctors
3 Physician samples
4 Personal Selling
5 Journal Advertising
6 Direct Mail
7 Sponsorship of Events/Conferences
8 Symposia and Doctors’ Meetings
9 Organising camps
10 Press Release/Advertisements
Rank from least important to most important order by putting (1 as least important, 2,
3, 4, 5,6,7 in increasing order of importance and 8 as most) important factor for
capturing better market share in the industry in terms of Profitability:
S. No. Market Share Rank
1 Well trained Medical Representatives.

2 Company’s relation with doctor community.
Company’s relation with dealers like wholesalers and
3
retailers.
Company’s product basket or therapeutic segment
4
operating in.
5 Product segmentation and differentiation as strategy.
6 New product development (R&D)
7 Maximum market coverage.
8 Entry in overseas market.
214
Rank from least important to most important order by putting (1 as least important, 2,
3, 4 , 5, 6, 7 in increasing order of importance and 8 as most) important factor for
boosting the sales volume:
S. No. Sales Volume Rank
1 Value addition to the brand has accelerated our sales volume.
Share of the server market is expected to increase substantially

2 if firms position their brands properly in the minds of the
prospects.
In order to enhance overall sales, positioning of the brand by
3
specific usage is recommended.
Marketers have to position their offerings in terms of
4
price/quality if they have to maximize the sales.
Product line extensions have substantially increased the sales in
5
the server market.
Our strategy of market segmentation on the basis of income,
6
sex, age or lifestyle has substantially improved overall sales
A firm may set a high initial price to attain maximum sales in
7
short duration of time.
A firm that positions its products in the high-price high-quality
8
segment of the market may not necessarily attain a larger sales.
215
Section –C
Please express how far do you agree with these parameters by indicating your
level of agreement/ disagreement on four point scale(Where SA 5= Strongly
Agree, A 4=Agree, N 3= Neutral D 2= Disagree and SD 1=Strongly Disagree.)
S.No Number of Items

Do you agree adopting lowest pricing
can be a strategy for the companies to
1
capture better market share?
Do you agree with the point that
doctors spare time to the companies as
2
per the relationship with company’s
medical representative?
Do you think Indian doctors are
technology savvy (they use all the
3
modern electronic gadgets for
communication)?
Do you think offering high bonus to
4 retailers can boost sale of a product for
company?
Trade bonus offer from company is a
5 tool to boost companies’ sale in the
market.
Bonus offer from pharmaceutical
6 companies destroy healthy competition
in the market place.
Progressive companies are adopting
this technique and preferring it to
7
seminars and other forms of direct
communication.
216
Companies get films made on their
products, and arrange film show for
8
doctors, usually in wards of hospitals,
and for general physicians.
Short-term incentives to encourage the
9
purchase or sale of a product or service.
Free sample generates first trial for any
10 new brand & secure a larger number
and greater customer back.
Maintain customer relationships by
providing innovative services based on
11 digital capabilities (disease
management applications, medical
education, web community platforms.
Companies promote the drugs
unethically by hiding their safety
12 profiles, by exaggerated efficacy claims
of ‘me too drugs’, irrational drug
combinations and off label use.
For promoting generic medicines,
13 conferences/CMEs are being
conducted.
During every visit by a Medical
14 Representative or during a Medical
camp, free medicines are distributed.
After the sale of medicines, margin or
15
percentage of profit has been given.
Through the arrangement of Tours.
16 Trips to Dinner/Party is also a tool for
promotions.
217
Drug company sponsors journals to
17
academic journals for promotions.
Educational programs are good Source
18
of promotions.
Website is a potent tool in creating
19
awareness amongst physicians.
Direct to consumer advertisements
20
create interest amongst physicians.
Companies that run the social cause
related marketing campaigns (social
21 marketing) have subsequently
expanded the share of their served
market.
The point of purchase promotion (POP)
i.e. bills, posters, stickers often done at
22
retail level is to strengthen the brand
and increases the sales.
Samples and catch covers act as brand
23
reminders.
Digital Pharma helps improve customer
24 service and consequently strengthens
brand image
218
Willcare Lifesciences Pvt. Ltd.
Central Depot: G-39, Chetak Chambers, 14 R.N.T. Marg, Indore-452 001
WillcareLifesciences Pvt. Ltd.

Contact: 0731-4035510 Web : www.willcarelifesciences.com
Head Office: H-502, Rose Valley, Nearby Kunal Icon,

Pimple Saudagar, Pune (MAH)-411027
June 25th, 2017
To
Mrs. Manvi Ayush Sood,
Reasearch Scholar,
Banasthali Vidyapeeth
Rajasthan.
Dear Ma'am,
Based on your research proposal, we would like to provide you with a sponsorship of Rs
1,50,000/- (One Lakh Fifty Thousands onty) for your research .Please deposil your jee
Receipt, once the thesis is awarded toyou.
Wishing you all the best for your research.
Thanking you.
For, Willcare lifesciences Pvt. Ltd.,
Mr. Prashant Srikanti

(Accounts In charge)

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“A Study of Promotional Mix Strategies of

Selected Generic Medicine Manufacturing

From the results, the following recommendation has been surfaced:

2. More funds would be allocated by the Government to Research & Development so

5. A multichannel commercial approach can attain a broader target audience to supply

6. Commonly, a potential to gain believe and trained practitioners about a product

9. Firms with a branded generics portfolio tend to have a varied concentration on

10. Becoming involved domestically can positively boost up a large-scale pharmaceutical

11. Advertising of prescription-based medicines treatment is indirect marketing, where

1. Doctors don't like to meet many MR visits, so MR visits should be limited to a

 SUGGESTIONS TOWARDS IMPLEMENTATION, OBSTACLES AND WAYS

This is to certify that the thesis entitled “A Study of Promotional Mix

Strategies of Selected Generic Medicine Manufacturing Companies in Madhya

Pradesh”, submitted by me to Banasthali Vidyapith, for the award of the degree of

Doctor of Philosophy is a bonafide record of research work carried out by me under

Place: Banasthali Vidyapith

Strategies of Selected Generic Medicine Manufacturing Companies in Madhya

Pradesh”, submitted to Banasthali Vidyapith, Rajasthan, in partial fulfilment of the

requirement for the award of the Degree of Doctor of Philosophy in Management is a

Degree/ Diploma/ Associateship/ Fellowship or similar title to any candidate of any

Turnitin software licensed to Banasthali Vidyapith.

Indian pharmaceutical industry is a highly organized sector. India ranks 3rd in

Will Care Life Sciences, Indore have sponsored the research.

Certificate by Research Supervisor II

Executive Summary V- VII

List of Research Publications and Paper Presentations VIII

Table of Content IX- XII

List of Figures XIII

List of Histograms XIV

List of Tables XV- XX

List of Models XXI

1.1 A Brief Review of Generic Drugs 3

1.1.4 Exports and Imports of Pharmaceuticals 9

2.2 Marketing Mix 20

2.3 Promotion Mix Strategies 23

2.3.2 Sales Promotion 26

2.3.3 Personal Selling 29

2.3.4 Public Relation (PR) 30

2.3.5 Direct Selling 31

2.4 Promotional Mix Push and Pull strategies 33

2.5 Developing on Optimal Promotional Mix 34

3.1 Pharmaceutical Industry 36

3.1.1 Brief History of Pharmaceutical Industry 37

3.1.4 Importance of Generic Drugs. 48

3.1.5 Government Support to Generic Drugs 49

3.2 Marketing in Pharmaceutical Sector 51

3.3 Market Segmentation 54

3.4 Promotional Mix 56

3.4.1 Promotional Mix Tools 59

3.5.2 Medical Representatives 68

3.5.3 Chemists, Retailers and Wholesalers 71

3.6.1 Research Gap 75

4.1 Overview of Methodology & Research Process 77

4.2 Objectives of the Study 77

4.3 Hypotheses of the Study 78

4.4 Research Design 83

4.5 Sample Size 86

4.5.1 Categories of Sample 86

4.6 Sampling Method 89

4.7 Research Type 89

4.8 Research Tools & Techniques 89

4.9 Validity & Reliability 90