Vous êtes sur la page 1sur 76

CHAPTER I

INTRODUCTION

1.1 INTRODUCTION
Sangrose Laboratories Pvt. Ltd is the only company in Kerala manufacturing Clofozmine drug and is the third in India. It plays an important role in the National Leprosy Education Program (NLEP) introduced by the Government of India under the aid of WHO. In industry profile, a detail discussion about the pharmaceutical industry, it's advantage in India, growth scenario etc. and in company profile it consist of background of the company, nature of the business, vision and mission, quality policy, product profile, area of operation, ownership pattern, competitors information, achievements, work flow model. The present study entitled "The study on to identify the effectiveness of product promotion by Sangrose Laboratories Pvt. Ltd" is to analyze how effectively the promotion methods are successful in the market to attain the organizational goals. The study is being conducted with the sample size of 50 respondents. The primary data collected with the help of detailed questionnaire and secondary data is collected from the secondary sources. From this study we found that the majority of the drug store owners are satisfied with the promotion technique which is followed in the company The recommendation which were made on the study are that the company shall concentrate much on advertisement ,provide samples and gifts to Drug store owners and increase the frequency of advertisement, open retail stores in the important locations. The study is concluded that the drug store owners are highly aware about the quality of the drug. The company is mainly concentrated on personnel selling as their promotion technique. The manufacturer is visiting the drug store owners and doctors for the improvement of sales. If the company is concentrating on media advertisement they can easily capture the market.

1.2 INDUSTRY PROFILE


INTRODUCTION TO THE PHARMACEUTICAL INDUSTRY

This section provides background information on the size, geographic distribution, employment, production, sales and economic condition of the pharmaceutical industry. Facilities described in terms of their standard industrial classification SIC codes. As defined by its SIC codes, the pharmaceutical industry SIC 283 consist of establishments that are primarily involved in fabricating or processing medicinal chemicals and pharmaceutical products, the industry also includes establishments that formulate pharmaceutical products and are involved in grinding, grading, and milling of botanical products. The census of manufacturers defines an establishment as a single physical location or a facility where manufacturing occurs. If more than one distinct line of manufacturing occurs at the same location, the bureau of census separate reports for each activity. Although the industry is part of the two - digit SIC code 28 for chemicals and allied products it differs significantly from the rest of the chemicals industry in its industrial process, the pharmaceutical industry as a whole. Since some of the bulk manufacturing operations involve extracting small, highly concentrated quantities of active ingredients from much larger volumes of raw material, the industry's production yield for these operations is correspondingly low. When a pharmaceutical company discovers a compound that may have medical potential, the company usually applies for a patent. Patents are valid for 20 years from the compound may be marketed only after approval by the federal food and drug administration FDA. The drug development process, beginning with initial toxicology testing, followed by clinical trials for safety and effectiveness and review of the application by the FDA averages fifteen years. When the company's patent or period of exclusively has expired, other companies may rely on the original manufacturers data on safety and effectiveness to obtain approval to market a generic version of the drug. Companies wanting to manufacture the same drug once it is off-patent are required to obtain FDA marketing approval, based on evidence that the generic version is "bioequivalent", ie., differs in the rate and extend of drug absorption by no more than 25 percent nor less than the 20 percent from the original drug (FDA, 1996). While companies that specialize

in the development and marketing of brand name, innovator drug1 may generic drug companies do not conduct research intended to identify and develop innovator drug (PhRMA, 1997). Because of high cost and time to approval, effective patent protection is an essential component in the decision to invest in drug development and marketing. This is especially true for international companies interested in marketing drugs in several countries, each with its own approval procedure and marketing requirements. While the international conference on harmonization is proposed harmonized rules for drug registration and approval for Europe, Japan and United States, each country retains its won approval system. In other countries, especially developing countries, the issue of adequate patent protection is a central concern of pharmaceutical manufacturers PhRMA, 1997. Discovery of new compounds followed by further research and development R & D is one of the primary functions of the industry. The pharmaceutical production process starts with an extensive research stage, which can last several years. Following the discovery of a new drug that appears to have efficiency in treating or preventing illness, pre clinical tests and clinical trials are conducted. Then a new Drug Application (NDA) is submitted to the FDA for pharmaceutical companies producing brand name drugs, the pharmaceutical Research and

Manufacturers of America PHRMA., it takes an average of 15 years to bring a new drug to market, from time of discovery to approval PHRMA 1996. it is only after FDA has been secured that market distribution in the US can begin. The competition for discovering new drugs beginning them to market is extremely high. As a result, a significant proportion of the industry's sales are reinvested into research and development (R&D). according to PhRMA, total R&D expenditures, both domestically and abroad, by its members, will be close to $19 billion dollars in 1997. PHRMA estimates that over 21% of total sales will be reinvested into RD by its members (PhRMA, 1997).

WORLD SCENARIO Globalization of Indian pharmaceutical industry started in the early 1990s when the Government opened its markets to foreign investments, Indian pharmaceutical industry's

Globalization took place with the coming of the foreign companies in the sector. Globalization means the dismantling of the trade barriers and the integration of the economies of the nations through trade in goods and services, corporate investments and 4

financial flow between nations. Globalization has increased the world over in recent years due to the rapid progress that has been made in the field of technology especially in communication and transport. The government of India opened its economy to foreign companies through changes in its economic policy in 1991 and this led to the Globalization. The various advantages of Globalization of Indian pharmaceutical industry are that it brought in huge amounts of foreign currency into the industry which in its turn helped to boost the Indian economy. With many foreign pharmaceutical companies entering the Indian pharmaceutical industry it increased the number of jobs that were available to the people of the country. The benefits of Globalization of Indian pharmaceutical industry are that the foreign pharmaceutical companies also brought in highly advanced technology into the industry and this improved the quality of medicines that were available to the people. The various disadvantages of Globalization of Indian pharmaceutical industry are that the competition increased in the Indian market between the foreign pharmaceutical companies and domestic companies. This has resulted in many people losing their jobs and in Mumbai's Thane region which is in Maharashtra more than 30,000 people lose their jobs between 1997 - 1999. further the disadvantages of Globalization of Indian pharmaceutical industry are that many foreign pharmaceutical companies are taking over the Indian pharmaceutical companies such as SKB merged with Sterling, Ciba Geigy merged with Sandoz, and Rhone Poulenc merged with Fashions. This has led to the fear that foreign pharmaceutical companies will take over the Indian pharmaceutical industry.

MEDICINAL AND BOTANICALS (sis 2833) Companies in the medicinal and botanicals industry category are primarily engaged in 1. 2. manufacturing bulk organic and inorganic medicinal chemicals and their derivatives. Processing (grading, grinding and milling) bulk botanical drugs and herbs. The industry

is made up of establishments or facilities that manufacturer products of natural origin, hormonal products and basic vitamins, as well as those that isolate active medicinal principals such as alkaloids from botanical drugs and herbs(OMB, 1987). There substances are used as active ingredients for the pharmaceutical preparations industry category. Companies often produce both medicinal and botanical and pharmaceutical preparations at the same facility.

PHARMACEUTICAL PREPARATIONS SIS 2834 The pharmaceutical preparations industry category is made up of companies that manufactures, fabricate and process raw materials into pharmaceutical preparations for human and veterinary uses. Finished products are sold in various dosage forms including for example, tablets, capsules, ointments solutions suspensions and powders. These are 1) preparations aimed for use mainly by dental, medical or veterinary professionals, and 2) those aimed for use by patients and the general public (OMB1987). A more in depth discussion of these finished products is provided in section 111. A.3. Pharmaceutical products also are often classified in terms of their availability to the general public. Both prescription and over the counter (OTC) drugs are available to the public. Prescription drugs can be purchases only with a prescription from a licensed health care professional authorized to prescribe, while (OTC) drugs may be purchased without prescription. The FDA will consider approving the switch of a drug from prescription to (OTC) when the manufacturer presents evidence that consumers can self diagnose the condition for which the drug is approved, ie., cold or seasonal allergy, and directions for use can be written for the consumer (PhRMA,1997).

1.3 COMPANY PROFILE Sangrose Laboratories Pvt. Ltd was incorporated in the year 1987 as a private limited company under Indian Company act 1956. The company is registered as a small scale industry with main object of manufacturing basic drugs is located industrial estate in Kollakadavu in Vittiyar village, Mavelikara Taluk in the notified industrial backward district Alappuzha in Kerala state the company has branch office in Primal Nagar Mumbai, the commercial production of basic drug CLOFAZMINE was started in the year 1989. CLOFAZMINE is the drug recommended by world health organization(WHO) for the treatment of leprosy under multi drug therapy (MDT) and also used for the treatment of TB and AIDS. COMPANY HAS RECEIVED GMP CERTIFICATE FROM W.H.O EQUIVALENT TO THOSE WHO RECEIVE ISO 9002. Sangrose Laboratories Pvt. Are the only company in Kerala manufacturing this drug and third in India the other to being multinational competition is avoided by maintaining the quality of the product. The company plays an important role in national leprosy educational program (NLEP) introduced by the Government of India under the aid WHO. The Sangrose Laboratories Pvt. Is ideally located in Kollakadavu industrial estate of Kerala in Alappuzha district. The company is eligible for all incentives offered by the state government like subsidy, sale tax exemption etc. The basic infrastructure required for the company is easily available at the industrial estate and the company does not envisage any difficulty in availing them the company already has a low tension connection of 100kwa. But the company intends to convert it into a high tension connection of 250kwa by while installing its own transformer the industrial estate has well connection internal board with access to the main road. The nearest railway station is just 5km and national highway is 15km away. SANGROSE LABORATORIES PVT. LTD. Was founded in the year 1987 by Mr. C.K. Alexander who is the entrepreneur-research chemist. The DNA of the company is drawn from its founder and his vision to establish world's only largest producer of clofazimine. " The vision of a research chemist takes on social and commercial expressions that's in nutshell, briefly explain the genesis and growth of Sangrose Labs. Mr. C.K. Alexander the founder and Managing Director was born brought up in the tradition of Kerala. A post-graduate, approved manufacturing and quality control chemist, he 7

is having 25 Years experience in the pharmaceutical industry which

10 years is in the top level

management in developing and implementing project where administrative, technical marketing and financial skills are required. He is also having 3 years experience in research and development process know-how for a number of life-saving drugs. Mr. Thomas Samuel, the finance director a post graduate Business Administration is well experienced in funds management. The sound financial health of the company proves his expertise in the field. Mr. George Samuel have three years of experience as a chemist Bombay. He is the senior manager international Airlines for the last 10 years.

MISSION AND VISION MISSION: The mission of Sangrose is to dedicate itself through the creation of innovative medical products and services for the benefit of the medical community and human health around the world. VISION: "The vision of the company is to become a leader in the Indian pharmaceutical industry and a significant global player, providing customers delight and enhancing shareholders values". CORE VALUES C - Care for customer R - Respect for associates E - Excellent teamwork A - Always learning T - Trust mutually E - Ethical practices.

MARKETING DEPARTMENT OF THE COMPANY The company has two types of product, basic drugs and capsules. Bulk drug manufactured by the company is exported to Switzerland with the help of foreign company named "NOVATIS" the products are sold by SANGROSE LABORATORIES Pvt. Ltd. In Switzerland in the name Novatis. The capsule are supplied to central purchasing committee of govt. of India through tender. Black cumin seed oil capsules are also exporting to Srilanka. In Sangrose Laboratories there are 25 brands. Some of the brands are antibiotic, antifungal, antitoxin, vitamin E, antioxidants. Positioning of some production are antifungal for soft gelatin capsules, antioxidants for sun protection, depigmentary agent for skin ageing. Every product is in introduction stage. Some of the market leader's antifungal is zockon. The market share of each product category is less than .01 percent. The total selling force is 10 peoples. The structure of the company is as field sales executives, regional manger and marketing manager. The meeting of the company with the bosses and the subordinates is once in a month. The target is growing to 20-30 percents. Control is been exercised by the administrative control. They motivate their sales man by incentives, recognition, awards etc. the company have a depots and also have stockiest and carry forward agents. The discount structure of the company is 20 percent to retailers and 10 percent to stockiest. The collection system of the company is 60 days time duration. Competitors:The company enjoys monopoly position in he production of the Basic Drugs 'CLOFAZIMINE'. In the case of the other drugs they face little competition from Lark Laboratories, Invines Laboratories etc.

PRICING POLICIES Pricing is the marketing function whose importance is acknowledged even more easily than that of other functions. From the point of view the customer, the price of the medicine product as compare with the quality, quantity and package offered by Sungrose Laboratories determines whether he will consider buying the product or not. Price denotes the value of the product of service expressed in money. It regulates business profits, allocates the economic resources for maximum production and distribution..

thus it is the prime regulator of production, distribution and consumption of goods. Every marketing plan involves pricing decisions and hence price is a powerful marketing function. Decision on pricing are taken on the basis of various factors influencing price, such as demand for the product, acceptance of product, completion and other exiting market conditions. The pricing policy of Sungrose Laboratories Pvt. Ltd., which is basically responsibility of the marketing department, is a function basically of cost and demand factors. The price charged must be enabling the Sungrose Laboratories products to recover the cost of production and also earn a reasonable margin of profit.

ADVERTISING The term 'advertising' is derived from the Latin word 'advert era' that means to 'turn the mind to'. In abroad sense, anything that turns attention to an appeal made to a large number of people. It constitutes a mass approach contrary to the limited approach in the salesmanship of the salesman. Advertising is employed to promote bright image of the firm in the society. The Sungrose Laboratories Pvt. Ltd is the only company in Kerala manufacturing ' CLOTAZIMINE' and is the third in India. The other two being multinational competition is avoided by maintaining the quality of the product The company concentrates only in institutional or good will type advertisement. Institutional advertising is designed to promote an idea or the name of the company in the eyes of public. Sungrose Laboratories expense on advertising is very meager that does not mean to say that the company has compromised on advertising. The firm has advertised its product effectively and adequately. This can easily be judged by the reputation enjoyed by its products both in domestic and international market.

10

SALES PROMOTION Sales promotion is an important marketing strategy. It is concerned with creation, application and dissemination of materials and techniques that supplement advertising and personnel selling. In present days sales promotion activities are viewed more from the angle of an investment in business rather than expenditure it is a necessary and not merely a luxury or a fashion. Sales promotion undoubtedly days rich dividends in the long run. It is responsible for awakening and stimulating customer demand for a product. Its importance can be judged from its ability to create demand, even against keen competition.

SALES MANAGEMENT The sales management is a term applied to the process of distributing the goods form the producer to the ultimate user or customer. It covers selling, advertising and sales promotion , transportation handling, financing and risk taking. Sales management represents one of the most important functional areas of management in Sungrose Laboratories Pvt. Ltd. The firm has successfully coordinate activities such as planning, organizing, direction, motivation, and control applied that sales management for securing better performance namely reasonable profit through service.

SALES PLANNING Planning is a managerial function. It invokes the selection from among several alternatives, enterprises, objectives, policies and procedures, programmers and schedules. As a part of marketing planning covers sales forecast, sales programmers to achieve sales goal and marketing planning covers sales forecast, sales programmers to achieve sales goals and marketing future course of action regarding the marketing and selling of a product. The picture of sales program in connection with the launching of sales campaign in future is based on objectives, policies and procedures. Sungrose Laboratories sales planning is initiated by laying down the objectives desires to be achieved. The various alternative before it are evaluated and form among those the most appropriate course of action is selected which may fulfill predetermined goals. Finally the selected plan of action is chattered out and implemented. 11

MAJOR CUSTOMERS OF THE COMPANY Sungrose Laboratories sell its products to local area and also export their products. Therefore the company is having local customers and international customers.

Given below are the customers of the company 1. Overseas customers. 2. Local customers. 3. Government supply (central purchasing committee) 4. Outside state customers.

SOME OF THE NATIONAL LEVEL OF CUSTOMERS 1. NOVA MILLENIUM PHARMA, CHENNAI 2. ABL BIO TECHNOLOGIES, CHENNAI 3. NOVEAU MEDICAM, CHENNAI 4. BENZOR PHARMA, COCHIN 5. HOUCHE REMEDYS, THRISSUR 6. ENKA HEALTHCARE, DELHI

These are the customers for capsules in India. The final products are handed to the excise and they check them for dispatching. CPC is basically their customer. The distribution is by Road and Rail.

12

CHAPTER II REVIEW OF LITERATURE

13

REVIEW OF LITERATURE

Product promotion is concerned with any vehicle you employ for getting people to know more about your offering. Advertising, public relations, point-of-sale displays, and word-of-mouth promotion are all traditional ways for promotion. Promotion can be seen as a way of closing the information gap between would-be sellers and would-be buyers. Your choice of a promotional strategy will be dependent upon your budget, the type of offering you are selling, and availability of said promotional vehicle - Jed C Jones

Product promotion is the process of informing, persuading and reminding the target audience about the product on offer. A successful promotional strategy with time gives rise to a brand wherein some specific attributes of the product are institutionalized in the market. Product promotion refers to many kinds of incentives and techniques directed towards consumers and traders with the intention to produce immediate or short-term sales effects-Jason Nyback

Product Promotion as those activities marketers engage in to advertise and sell their product. Essentially, its all about getting the word out to your target audience and presenting them with an offer and a message that resonates. Generally promotion is communicating with the public in an attempt to influence them towards buying their product or services. -Fabiantan

Promotion of a product plays vital role in Marketing Management. Companies can run same advertisement and promotion campaign side by side, in home market or change them for each local market- Asjid Bukhari

The word promotion is also used specifically to refer to a particular activity that is intended to promote the business, product or service. A store might advertise that it is having a big promotion on certain items, for instance, a business person may refer to and a promotion.Today's market is full of offers and discounts. Marketers use simple promotion program to entire customers to buy product and services. While the objective of advertising are

14

long term and generally of brand building, promotion programs often pursue a single goal ie., to maximize sales in short term. The present study titled "The effectiveness of Product Promotion" is a study among the drug tore owners at Mavelikara to identify the effectiveness of product effectively the promotion methods are successful in the market to attain the organizational goals. The particular study is being conducted with the sample size of 100 respondents and the secondary data is collected from the secondary sources.

15

CHAPTER III RESEARCH METHODOLOGY

16

3.1 Scope of the study


The scope of the study is the following b) To expand the target market c) To gain the additional market share and additional revenue. d) To develop favorable consumer experience with the product. e) To add extra value to the product and develop franchise. f) To generate short term cash. g) In response to competitive move.

3.2 Objectives of the study


The main objectives are divided into two categories.

1. Primary objectives. To find out the effectiveness of product promotion of Sangrose Laboratories Pvt. Ltd. 2. Secondary objectives a) to find out the efforts provided by the company. b) To find out the frequency of advertisement media. c) To find out which age group is targeted. d) To find out whether cash discounts are provided e) To find out the monthly sales of each drug store. f) To identify how the representatives visits the drug store to promote their product. g) To identify how often the representatives visits the doctors in their area canvas for their product.

17

3.3Limitations of the study


a) The study is only limited to the shops in and around Mavelikara, so the study is not relevance or applicable to other areas. b) The Organizational limitations c) Some information was misleading and some were false. d) Broad frame work of the study.

3.4 METHODS OF DATA COLLECTION Primary data The Primary data are those which are collected afresh and for the first time. In my study I collected Primary data through questioner method. It was carried out in a structured way. Secondary data. The Secondary data are those which have been already collected by someone else and which have already been passed through the statistical process. In my study I collected Secondary data from:

a) Company website www.sangroselabs.com b) Annual report of the company c) Manuals d) Brochures e) Booklets The important statistical tools used in this study are Percentage analysis. Bar Diagram Pie Chart Chi-square Test of independence

18

CHAPTER IV DATA ANALYSIS AND INTERPRETATION

19

DATA ANALYSIS AND INTERPRETATION


TABLE 1 TABLE SHOWING AWARENESS ABOUT THE DRUG CLOFAZIMINE

FACTOR YES NO NO OPINION TOTAL

NO. OF RESPONDENTS 60 30 10 100

PERCENTAGE 60 30 10 100

INTERPRETATION From the above table it is found that 60% of the drug store owners are aware of the drug and 30% of the drug store owners are not aware about the drug and also 10% are not respond.

20

CHART 1 CHART SHOWING AWARENESS ABOUT THE DRUG CLOFAZIMINE

NO. OF RESPONDENTS
70 60 50 40 30 20 10 0 YES NO NO OPINION NO. OF RESPONDENTS

21

TABLE 2 TABLE SHOWING HOW THEY CAME TO KNOW ABOUT THE DRUG

FACTOR ADVERTISEMENTS PERSONNEL SELLING FRIENDS OTHERS TOTAL

NO. OF RESPONDENTS 18 60 12 10 100

PERCENTAGE 18 60 12 10 100

INTERPRETATION From the above table it shows that 18% of drug store owners are aware about the drug through advertisements and 60% of drug store owners are aware about the drug through personnel selling and 12% of drug store owners are aware about the drug through friends and 10% of drug store owners are aware about the drug through others.

22

CHART 2 CHART SHOWING HOW THEY CAME TO KNOW ABOUT THE DRUG

NO. OF RESPONDENTS
70 60 50 40 30 20 10 0 NO. OF RESPONDENTS

23

TABLE 3 TABLE SHOWING ON THE BASIS DRUG STORES WILL PURCHASE THE PRODUCT

FACTOR PRICE QUALITY AVAILABILITY LONGTERM USE OTHERS TOTAL

NO. OF RESPONDENTS 20 40 24 10 6 100

PERCENTAGE 20 40 24 10 6 100

INTERPRETATION From the above table it is clear that most of the people purchase the product because of this quality (ie. 40%). It is also found that 24% of people purchase it because its availability and 20% are prefer its price for purchasing. Only 10% people purchase for its longterm use and 6% are not respond.

24

CHART 3 CHART SHOWING ON THE BASIS DRUG STORES WILL PURCHASE THE PRODUCT

NO. OF RESPONDENTS
45 40 35 30 25 20 15 10 5 0 PRICE QUALITY AVAILABILITY LONGTERM USE OTHERS NO. OF RESPONDENTS

25

TABLE 4 TABLE SHOWING THE PERCENTAGE OF THE DRUG TO ALL AGE GROUP FACTOR YES NO NO OPINION TOTAL NO. OF RESPONDENTS 56 40 4 100 PERCENTAGE 56 40 4 100

INTERPRETATION From the above table it is found that 56% of the people are consent that the drug is to all age group, 40% of the people are not consent and 4% are not respond.

26

CHART 4 CHART SHOWING THE PERCENTAGE OF THE DRUG TO ALL AGE GROUP

NO. OF RESPONDENTS
60 50 40 30 20 10 0 YES NO NO OPINION

NO. OF RESPONDENTS

27

TABLE 5 TABLE SHOWING FOR HOW LONG THE DRUG STORE OWNER WERE DEALING WITH THE DRUG

FACTOR 1 YEAR 5 YEAR 15 YEAR MORE THAN 15 YEARS TOTAL

NO.OF RESPONDENTS 20 20 24 36 100

PERCENTAGE 20 20 24 36 100

INTERPRETATION From the above table it is very clear that ,20% of the drug store owners were dealing with the drug for 1 year and another 20% are also dealing and 24%f the drug store owners are dealing with 15 years and 36% are dealing with more than 15 years

28

CHART 5 CHART SHOWING FOR HOW LONG THE DRUG STORE OWNER WERE DEALING WITH THE DRUG

NO. OF RESPONDENTS
40 35 30 25 20 NO. OF RESPONDENTS 15 10 5 0 1 YEAR 5 YEARS 15 YEARS MORE THAN 15 YEARS

29

TABLE 6 TABLE SHOWING THE FREQUENCY OF PUCHASE MADE BY THE DRUG STORE OWNERS FACTOR DAILY ONCE IN A WEEK TWICE IN A WEEK ONCE IN A MONTH TOTAL NO. OF RESPONDENTS 4 26 50 20 100 PERCENTAGE 4 26 50 20 100

INTERPRETATION From the above table it is very clear that ,4% of the drug store owners were purchasing w the drug daily and another 26% are purchasing once in a week and 50%f the drug store owners are purchasing twice in a week and 20% purchase once in a month .

30

CHART 6 CHART SHOWING THE FREQUENCY OF PURCHASE MADE BY THE DRUG STORE OWNERS

NO. OF RESPONDENTS
50 45 40 35 30 25 20 15 10 5 0 DAILY ONCE IN A WEEK TWICE IN A WEEK ONCE IN A MONTH NO. OF RESPONDENTS

31

TABLE 7 TABLE SHOWING THE AMOUNT OF PURCHASE MADE BY THE DRUG STORES FACTOR 1 - 500 500 - 1000 1000 - 1500 ABOVE 1500 TOTAL NO. OF RESPONDENTS 12 8 16 64 100 PERCENTAGE 12 8 16 64 100

INTERPRETATION From the above table it is very clear that, 12% of the drug store owners made a purchase within Rs. 500, 8% of the drug store owners made in purchase with in Rs.500-1000, 16% of the drug store owners made a purchase above Rs.1000-1500 and 64% of te drug store owners made a purchase above Rs.1500.

32

CHART 7 CHART SHOWING THE AMOUNT OF PURCHASE MADE BY THE DRUG STORES

NO. OF RESPONDENTS
70 60 50 Axis Title 40 30 20 10 0 1 - 500 500 - 1000 1000 - 1500 ABOVE 1500 Axis Title NO. OF RESPONDENTS

33

TABLE 8 TABLE SHOWING AVERAGE SALES PER MONTH

FACTOR 1 - 5000 5000 - 10000 ABOVE 10000 TOTAL

NO. OF RESPONDENTS 20 70 10 100

PERCENTAGE 20 70 10 100

INTERPRETATION From the above table it is very clear that, 20% of the drug store owners average sale per month below rupees 5,000, 70% of the drug store owners average sale between Rs. 5,000 10,000 and 10% of the drug. store owners average sale is above rupees 10,000.

34

CHART 8 CHART SHOWING AVERAGE SALES PER MONTH

NO. OF RESPONDENTS

Jan-00 5000 - 10000 ABOVE 10000

35

TABLE 9 TABLE SHOWING DISPLAY OF GOODS AT DRUG STORE

FACTOR YES NO NO OPINION TOTAL

NO. OF RESPONDENTS 76 16 8 100

PERCENTAGE 76 16 8 100

INTERPRETATION From the above table it is very clear that, 76% of the drug store owners say that the manufacturer is displaying the product availability at their stores, 16% of the drug store owners say that the manufacturer is not displaying the product availability at their stores and 8% are not responded.

36

CHART 9 CHART SHOWING DISPLAY OF GOODS AT DRUG STORE

NO. OF RESPONDENTS
80 70 60 50 40 30 20 10 0 YES NO NO OPINION NO. OF RESPONDENTS

37

TABLE 10 TABLE SHOWING SATISFACTORY LEVEL OF DRUG STORE OWNERS

FACTOR YES NO NO OPINION TOTAL

NO. OF RESPONDENTS 60 36 4 100

PERCENTAGE 60 36 4 100

INTERPRETATION From the above table it is very clear that, 60% of the drug store owners are satisfied of the drugs, 36% are not satisfied and 4% are not responded.

38

CHART 10 CHART SHOWING SATISFACTORY LEVEL OF DRUG STORE OWNERS

NO. OF RESPONDENTS
70 60 50 40 30 20 10 0 YES NO NO OPINION NO. OF RESPONDENTS

39

TABLE 11 TABLE SHOWING WHETHER THE DRUG IS COMMONLY PRESCRIBED BY THE DOCTORS FACTOR YES NO NO OPINION TOTAL NO. OF RESPONDENTS 60 30 10 100 PERCENTAGE 60 30 10 100

INTERPRETATION From the above table it is very clear that ,16% of the drug store owners say that the drug is commonly prescribed by the doctors, 30& of the drug store owners say that the drug in not commonly prescribed and 10% not responded.

40

CHART 11 CHART SHOWING WHETHER THE DRUG IS COMMONLY PRESCRIBED BY THE DOCTORS

PERCENTAGE

YES NO NO OPINION

41

TABLE 12 TABLE SHOWING WHETHER SANGROSE IS PROVIDING ANY DISCOUNTS AT THE TIME OF DELIVARY FACTOR YES NO NO OPINION TOTAL NO. OF RESPONDENTS 80 14 6 100 PERCENTAGE 80 14 6 100

INTERPRETATION From the above table it is very clear that ,08% of the drug store owners say that the manufacturer provides discount at the time of delivery of drugs, 14% of the drug store owners say that the manufacturer doesnt provide discount at the time of delivery of drugs.

42

CHART 12 CHART SHOWING WHETHER SANGROSE IS PROVIDING ANY DISCOUNTS AT THE TIME OF DELIVERY

PERCENTAGE 90 80 70 60 50 40 30 20 10 0 YES NO NO OPINION PERCENTAGE

43

TABLE 13 TABLE SHOWING GIVING OF MEDICINES WITHOUT DOCTOR'S PRESCRIPTION.

FACTOR YES NO TOTAL

NO. OF RESPONDENTS 0 100 100

PERCENTAGE 0 100 100

INTERPRETATION From the above table, it is clear that 100% of store owners are say that medicines are not giving without doctors prescription.

44

CHART 13 CHART SHOWING GIVING OF MEDICINES WITHOUT DOCTOR'S PRESCRIPTION

YES NO

45

TABLE 14

TABLE SHOWING THE OPINION ABOUT THE DISPLAY OF DRUGS MADE BY SANGROSE

FACTOR HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED TOTAL

NO. OF RESPONDENTS 50 20 12 8 10 100

PERCENTAGE 50 20 12 8 10 100

INTERPRETATION From the above table, it is clear that 50% of the drug store owners are highly satisfied by the display of drugs made by the manufacturer, 20% of the drug store owners are satisfied by the display of drugs made by the manufacturer, and 12% of the neutral by the display of drugs made by the manufacturer, 8% of the drug store owners are dissatisfied by the display of drugs made by the manufacturer and 10% are highly dissatisfied by the display of drugs made by the manufacturer.

46

CHART 14 CHART SHOWING THE OPINION ABOUT THE DISPLAY OF DRUGS MADE BY SANGROSE

60 50 40 30 20 10 0 PERCENTAGE HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED

47

TABLE 15 TABLE SHOWING THE DRUG STORE OWNERS SATISFACTORY LEVEL WITH DISCOUNTS OFFERED BY SANGROSE

FACTOR YES NO NO OPINION TOTAL

NO. OF RESPONDENTS 80 16 4 100

PERCENTAGE 80 16 4 100

INTERPRETATION From the above table, it is clear that 80% of the drug store owners are say that the manufacturer provided discounts, 16% are say that the manufacturer doesnt provide discount and 4% are not responded.

48

CHART 15 CHART SHOWING THE DRUG STORE OWNERS SATISFACTORY LEVEL WITH DISCOUNTS OFFERED BY SANGROSE

PERCENTAGE

YES NO NO OPINION

49

TABLE 16 TABLE SHOWING WHETHER SANGROSE IS PROVIDING SPECIAL INCENTIVE PRICE FOR INCREASING THE SALE OF DRUGS FACTOR NO. OF RESPONDENTS PERCENTAGE

YES

48

48

NO

40

40

NO OPINION

12

12

TOTAL

100

100

INTERPRETATION From the above table it is very clear that, 48% of the drug store owners say that the manufacturer provides special incentive price for increasing the sale of drugs, 40% of the drug store owners say that the manufacturer doesnt provide special incentive price and 12% are not respond.

50

CHART 16 CHART SHOWING WHETHER SANGROSE IS PROVIDING SPECIAL INCENTIVE PRICE FOR INCREASING THE SALE OF DRUGS

PERCENTAGE

50 45 40 35 30 25 20 15 10 5 0 YES NO NO OPINION

PERCENTAGE

51

TABLE 17 TABLE SHOWING THE FREQUENCY OF ADVERTISEMENT MADE BY SANGROSE

FACTOR VERY HIGH HIGH MEDIUM LOW VERY LOW TOTAL

NO. OF RESPONDENTS 14 40 24 18 6 100

PERCENTAGE 14 40 24 16 6 100

INTERPRETATION From the above table, it is clear that 14% of the drug store owners are say that the frequency is very high, 40% of the drug store owners say that the frequency of advertisement is high, 24% of the drug store owners say that the frequency of advertisement is medium, 16% of the drug store owners say that frequency of advertisement is low and 6% of the drug store owners say that frequency of advertisement is very low.

52

CHART 17 CHART SHOWING THE FREQUENCY OF ADVERTISEMENT MADE BY SANGROSE

PERCENTAGE 40 35 30 25 20 15 10 5 0 VERY HIGH MEDIUM VERY LOW PERCENTAGE

53

TABLE 18 TABLE SHOWING WHETHER THE RUPRASENTATIVES VISITING THE DRUG STORES

FACTOR DAILY ONCE IN A WEEK TWICE IN A WEEK ONCE IN A MONTH TOTAL

NO. OF RESPONDENTS 24 48 22 6 100

PERCENTAGE 24 48 22 6 100

INTERPRETATION From the above table, it is clear that 24% of the drug store owners are say that the manufacturer visit the doctors daily, and 48% of the drug store owners say that the manufacturer visit the doctors once in a week and 22% of the drug store owners say that the manufacturer visit the doctors twice in a week, and 6% are say that manufacturer visit the doctors once in a month.

54

CHART 18 CHART SHOWING WHETHER THE RUPRASENTATIVES VISITING THE DRUG STORES

PERCENTAGE 60 50 40 30 20 10 0 DAILY ONCE IN A TWICE IN A ONCE IN A WEEK WEEK MONTH PERCENTAGE

55

TABLE 19 TABLE SHOWING THE WHETHER THE RUPRASENTATIVES VISITING THE DOCTOR

FACTOR DAILY ONCE IN A WEEK TWICE IN A WEEK ONCE IN A MONTH TOTAL

NO. OF RESPONDENTS 24 56 14 6 100

PERCENTAGE 24 56 14 6 100

INTERPRETATION From the above table, it is clear that 24% of the drug store owners are say that the manufacturer visit the doctors daily, and 56% of the drug store owners say that the manufacturer visit the doctors once in a week and 14% of the drug store owners say that the manufacturer visit the doctors twice in a week, and 6% are say that manufacturer visit the doctors once in a month.

56

CHART 19 CHART SHOWING THE WHETHER THE RUPRASENTATIVES VISITING THE DOCTOR

PERCENTAGE

DAILY ONCE IN A WEEK TWICE IN A WEEK ONCE IN A MONTH

57

TABLE 20 TABLE SHOWING WHETHER DISCOUNT IS PROVIDED AT THE TIME OF PURCHASE

FACTOR YES NO NO OPINION TOTAL

NO. OF RESPONDENTS 70 20 10 100

PERCENTAGE 70 20 10 100

INTERPRETATION From the above table it is clear that 70% of the drug store owners say that discount is provided at the time of purchase and 20% of the drug store owners say that discount is not provided at the time of purchase.

58

CHART 20 CHART SHOWING WHETHER DISCOUNT IS PROVIDED AT THE TIME OF PURCHASE

PERCENTAGE

YES NO NO OPINION

59

CHI-SQUARE ANALYSIS
CHI-SQUARE TEST-1

1.To find out the relation between advertisement and locality of the drug store
Null hypothesis: H0 There is no significant difference between the advertisement and locality of the drug store Alternative hypothesis: H1 There is significant difference between the advertisement and locality of the drug store

Locality Advertise ment Very high High Medium Low Very low ssssTotal

Rural areas

Urban areas

City areas

Total

3 5 9 6 3 26

5 15 10 7 3 40

6 20 5 3 34

14 40 24 16 6 100

Expected frequency 3.64 10.4 6.24 4.10 1.56 5.6 16 9.6 6.04 2.40 4.76 13.6 8.16 5.44 2.04

60

CHI- SQUARE TABLE Sl no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 O 3 5 6 5 15 20 9 10 5 6 7 3 3 3 E 3.64 5.6 4.74 10.4 16 13.6 6.24 9.6 8.16 4.16 6.40 5.44 1.56 2.40 2.04 O-E - .64 - .6 1.24 -5.4 -1 6.4 2.76 .4 - 3.16 1.84 .6 -2.44 1.44 .6 -2.04 (O-E)2 .4096 .36 1.5376 29.16 1 40.96 7.6176 .16 9.9856 3.3856 .36 5.9536 2.0736 .36 4.1616 Total (O-E)2/E .1125 .0642 .3230 2.8038 .0625 3.0117 1.2207 .O166 1.2237 .8138 .0562 1.0944 1.3292 .15 2.04 14.3223

CHI-SQUARE TEST Level of significance = 5% Chi-square = (O i E i) 2/E i Degrees of freedom =(r-1) (c-1) = (5-1) (3-1) 4x2=8

i.Calculated value =14.3223 ii.Tabulated value = iii.Calculated value < Tabulated value

61

Therefore, H0 is accepted CONCLUSION: There is no significant difference between the advertisement and locality of the drug store

62

CHI-SQUARE TEST-2 2.To find the relationship between the amount of purchase of drug and locality of the drug store Null hypothesis: H0 There is no significant difference between the amount of purchase of drug and locality of the drug store Alternative hypothesis: H1 There is significant difference between the amount of purchase of drug and locality of the drug store

Locality

Rural areas

Urban areas

City areas

Total

Amount Of purchase 1-500 500-1000 1000-1500 Above-1500 Total 2 2 3 11 18 2 2 4 18 27 7 4 9 35 55 12 8 16 64 100

Expected frequency: 2.16 1.44 2.88 7.04 3.24 2.16 4.32 17.28 6.6 4.4 8.8 35.2

63

Chi-square table S.No O E O-E (O-E) 2 (O-E) 2/E

1 2 3 4 5 6 7 8 9 10 11 12

2 3 7 2 2 4 3 4 9 11 18 35

2.16 3.24 6.6 1.44 2.16 4.4 2.88 4.32 8.8 7.04 17.28 35.2

-.16 -.24 0.4 0.56 -.16 -.4 0.12 -.32 0.2 3.96 0.72 -.2

0.0256 0.0576 0.16 0.3136 0.0256 0.16 0.0144 0.1024 0.4 15.6816 0.5184 0.4 Total

0.0118 0.0177 0.0242 0.2177 0.0118 0.0363 0.005 0.0236 0.0454 2.2275 0.03 0.0113 2.6623

CHI-SQUARE TEST Level of significance = 5% Chi-square = (O i E i) 2/E i Degrees of freedom =(r-1) (c-1) = (4-1) (3-1) =6 i.Calculated value =2.6623 ii.Tabulated value = iii.Calculated value < Tabulated value

Therefore, H0 is accepted

64

CONCLUSION: There is no significant difference between the the amount of purchase of drug and locality of the drug store

65

CHAPTER V FINDINGS SUGESSIONS CONCLUTIONS

66

FINDINGS
1. Majority (60%) of the drug store owners are aware about the drug 2. Majority (60%) of the drug store owners know about the drug through personnel selling 3. 40% of the drug store owners are influenced by the quality of the drug and 20% of the drug store owners are influenced by the price. 4. Majority (56%) of the drug store owners say that the drugs are not preferable to all age group 5. Majority (36%) of the drug store owners are dealing with the drugs more than 15 years. 6. Majority (50%) of the drug store owners are purchasing the drugs twice a week 7. Majority (64%) of the drug store owners are purchasing the drug for more than Rs. 1500 in twice a week. 8. Majority (70%) of the sales per month is in Rs.5000 - 10000 9. Majority (76%) of the drug store owners say that there is display of goods made by the manufacturer. 10. Majority (60%) of the drug store owners satisfied with the display of goods made by the manufacturer. 11. Majority (60%) of the drug store owners say that the drugs is commonly prescribed by the doctors. 12. Majority (80%) of the drug store owners say that the manufacturer is providing discounts at the time of delivery 13. All the respondents say that nobody will purchase the medicines without doctor's prescriptions. 14. Majority (80%) of the drug store owners are highly satisfied with the display of goods made by the manufacturer. 15. Majority (80%) of the drug store owners are satisfied with the discounts offered by the manufacturer 16. Majority (48%) of the drug store owners are agreeing that the manufacturer is providing special incentives for increasing the sale 17. Majority (40%) of the drug store owners say that the frequency of advertising is high

67

18. Majority (48%) of the drug store owners are agreeing that the manufacturer visit the shop once in a week 19. Majority (56%) of the drug store owners are agreeing that the manufacturer visit the doctors once in a week 20. Majority (70%) of the drug store owners say that the manufacturer is offering

68

SUGGESTIONS The company shall concentrate much more advertisement. The company shall identify the requirements of the drug store owners. The company shall give free samples and gifts to the drug store owners. The company shall target on specific age group The company shall open small retail stores at important locations The company shall increase the volume of sale by identifying the requirements of the drug store owners. The company shall increase the frequency of visiting the doctors The company shall provide more discounts on bulk purchase The company shall improve the quality of the drugs The company shall improve the incentive pricing at the time of delivery The company shall increase the display made by the drug store.

69

CONCLUSION
From the study conducted it is concluded that the majority of the drug store owners are satisfied with the present promotion techniques which is carried out by the company. The drug store owners are highly aware about the quality of the drug. The company is mainly concentrating on personnel selling as a promotion technique. The manufacturers are visiting the drug store and doctors for the improvement of their sales. If they are concentrating more on media advertisement they can easily capture the market.

70

APPENDICES

71

A STUDY AMONG THE DRUG OWNERS TO IDENTIFY THE EFFECTIVENESS OF PRODUCT PROMOTION BY SANGROSE LABORATORIES PVT LTD.
QUESTIONNAIRE

Name : Place : Gender : Age :

1. Are you aware about the drug Clofazimine? Yes No No opinion

2. How do you know about the drug? Advertisement Friends Personnel Selling Others

3. On what basis you will purchase the drug? Price Availability Quality Long term Use Others

4. Is it preferable to all age group? Yes No No opinion

5. For how long are you dealing with the drug? 1 year 15 years 5 years more than 15 years

72

6. What is the frequency of purchase? Daily Twice in week Once in a week Once in a month

7. What is the amount of purchase (Rs)? 100 - 500 1000 - 1500 500 - 1000 Above 1500

8. What is average sales of the drug per month? 1 - 5000 Above 10000 5000 - 10000

9. If the manufacturer gives you display goods at your shops? Yes No No opinion

10. Are you satisfied with the display goods made by the manufacturer? Yes No No opinion

11. Is the drug commonly prescribed by the doctors? Yes No No opinion

12. While delivering the samples are they making any discounts? Yes No No opinion

13. Did you ever give medicines without doctor's prescription? Yes No No opinion

14. What is your option about the display made by Sangrose at your drug store? Highly Satisfied Dissatisfied Satisfied Highly dissatisfied Neutral

73

15. Are you satisfied with the cash discounts offered by Sangrose? Yes No No opinion

16. Is Sangrose providing special incentives for selling more of Sangrose drugs? Yes No No opinion

17. What do you think about the frequency of advertisement of Sangrose drugs? Very high Low High Very low Medium

18. How often did the manufacturer visit the drug shop? Daily Twice in a week Once in a week Once in a month

19. How often did you visit the doctors? Daily Twice in a week Once in a week Once in a month

20. Is Sangrose providing any discount price at time of purchasing? Yes No No opinion

THANK YOU

74

BIBLIOGRAPHY

75

BIBLIOGRAPHY 1. Philip Kotler. "MARKETING MANAGEMENT 2. Tapan K. Panda MARKETING MANAGEMENT" 3. C.R. Kothari RESEARCH METHODOLOGY" 4. Naresh K. Malhotra MARKETING RESEARCH " 5. Donald R. Cooper & Pamela S. Schindler MARKETING RESEARCH "

76