Description
pharma companies active in OTC drugs market in India.
OVER THE COUNTER PRODUCTS
NEW SEGMENT FOR PHARMA GROWTH
PATEL DHVANIL MAHENDRABHAI PGDM – IB ROLL NUMBER: 34 YEAR: 2012 - 14
PREFACE
? Life is like a balloon. Stress stretches its rubber fabric; responsibility fills it to full capacity day in and day out. One thing goes wrong, and your whole day is ruined. The very next day, the balloon rapidly fills – only to pop again. ? Coping with everyday pressures and
responsibilities can sometimes seem impossible. Hence many run to drugs, some to alcohol, a few to family, some give up entirely, and a few carry on – refusing to let responsibilities tell their demise. ? In the midst of all the stress, our people have discovered, what is for many, a new way of dealing with life?s struggles: Over The ? drugs are almost always passed over a counter from the pharmacist to the customer having valid prescription from physician. As a general rule, over-the-counter drugs have to be used primarily to treat a condition that does not require the direct supervision of a doctor and must be proven to be reasonably safe and welltolerated. ? There are very few legal restraints on the OTC drug market. And pharmacists, those permitted to sell drugs without permission from a Registered Medical Practitioner, may legally distribute OTC drugs at their own digression.
FEW OF THE REPUTED OTC DRUGS.
Counter (OTC) drugs.
INTROUCTION
? In general, any drug not included in the list of „prescription-only? drugs is considered a „nonprescription,? or „over the counter? (OTC) drug. ? The term over-the-counter is self explanatory. Since, in most of the countries, these drugs are often located on the shelves of stores like any other packaged product. Hence the term OTC came in to the picture. In contrast, prescription
1 K.J.Somaiya Institute of Management Studies & Research, Mumbai
Marketing Management – I
Trimester 1
OTC DRUGS MARKET IN INDIA ? In India, the import, manufacture, distribution and sale of drugs and cosmetics are regulated by the Drugs and Cosmetics Act (DCA) and its subordinate legislation, the Drugs and Cosmetics Rules (DCR). ? OTC proprietary drugs which are registered as „Ayurvedic Medicines? (traditional Indian medicines containing natural / herbal
ingredients) are also regulated by the DCA and DCR. However, they do not require a drug license and can therefore be sold by nonchemists. There is no price control on „Ayurvedic medicines?. ? Some of the top OTC brands in India such as Vicks VaproRub, Amrutanjan Balm,
REVITAL’S MEDIA PROMOTION BY SALMAN KHAN
Zandu Balm, Iodex, Moov Pain Cream, Itch Guard Cream, ENO Fruit Salt, Vicks Cough Drops, Halls Lozenges, etc., are registered as „Ayurvedic Medicines? because of their plant-based natural active ingredients. ? Some of the non-Aurvedic products includes Sugar Free by Zydus Wellness, Volini Gel and Revital by Ranbaxy Labs, i – Pill Capsule by Pirmal Healthcare as well.
SANJEEV KAPOOR LAUNCHING SUGER FREE NATURA
2
K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
?
It also prohibits misleading advertisements, which, directly or indirectly, give false impressions regarding the true character of the drug; make false claims, or are otherwise false or misleading in any particular respect.
?
Currently, there is no specific law, which prohibits the advertising of prescription drugs although industry practice is not to advertise prescription-only drugs. The DCGI?s office is considering coming out with a notification
CAPTION YOUR PHOTO HERE
prohibiting the advertising of any drug, which legally requires a doctor?s prescription for its purchase. ?
?
Considering the above framework, key categories with OTC potential in India would be: • Vitamins and minerals • Cough and Cold • Gastrointestinals • Analgesics /Dermatological MEDIA ADVERTISING TO THE GENERAL PUBLIC IN INDIA ?
The following OTC medicines advertising can be seen on TV in India: ? ? ? ? ? Digestives Antacids Antiflatulents Cold rubs and analgesic balms/creams Vitamins/tonics/health supplements
(especially herbals and AyurvedicThe Drug & Magic Remedies ? ? ? registered) Medicated skin treatment Analgesic/cold tablets Antiseptic creams/liquids (Objectionable Advertisement) Act mentions a list of ailments for which no advertising is permitted.
3
K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
BIG PLAYERS IN INDIAN OTC SEGMENT
?
Indian consumers, today, are confident about sharing healthcare responsibility, especially in case of common ailments.
?
Currently,
aches/pains,
cough,
colds,
hyperacidity, minor topical infections, and indigestion are major OTC categories.
Emerging categories include cuts, wounds and burns, muscle pains and sprains, diarrhea and constipation. There are many Prescription products, which could be revitalized through OTC switches. ? ? ? ? ? ? Glucose powders Cough liquids Throat lozenges Medicated dressing (band-aids) Baby gripe water. Currently, there is no specific law, which prohibits the advertising of prescription drugs although industry practice is not to advertise prescription-only drugs. The DCGI?s office is considering coming out with a notification prohibiting the advertising of any drug, which legally requires a doctor?s prescription for its purchase.
SWITCH FROM PRESCRIBE DRUGS TO OTC PRODUCTS ? India is inching the OTC way. Indian OTC healthcare is in nascent stages and ranks 11th in the global OTC market. But, urban India is catching up with the concept, thanks to the advent of technology, improving literacy levels, increasing health awareness and high work stress levels. 4
K.J.Somaiya Institute of Management Studies & Research, Mumbai
Marketing Management – I
Trimester 1
1. RANBAXY LABORATORIES
? In June 2011, Ranbaxy?s sales reach to $2 Bn. It is the first ever Indian pharmaceutical company to cross this mark. ? Today it has presence in 43 countries with manufacturing facilities in 8 countries with workforce of 14,000. ? Ranbaxy?s Over-The-Counter product division also known as RGCH contributes 11% of total sale as on March 2011. ? ABOUT THE COMPANY ? Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1961. The name Ranbaxy is a combination of the names of its first owners Ranbir and Gurbax. ? ? The company went public in 1973. In 1998, Ranbaxy entered the United States, the world's largest pharmaceuticals market and now the biggest market for Ranbaxy, accounting for 28% of Ranbaxy's sales in 2010. ? In June 2008, Japan's Daiichi Sankyo ? ? ? OTC PRODUCTS BY RANBAXY ? RGCH recorded sales of US $ 212 Mn in 2011 registering growth of 12% YoY. India was the highest contributor with US $ 65 Mn sales (growth of 23%)
? REVITAL ? VOLINI GEL AND SPRAY A) REVITAL
Revital – “Jeeyo Jee Bhar Ke” Revital is a brand of health
supplement which is a combination of eleven Vitamins and nine Minerals. Revital provides most important vitamins and minerals in amounts equivalent to the required daily limit.
Company agreed to take a majority (50.1%) stake in Ranbaxy, with a deal valued at about $4.6 billion.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
REVITAL Revenue (Rs. in Crore )
160 140 120 100 80 60 40 2010 2011 2012 80.8 126.1 Revenue (in Crore Rs.) 141.3
MEDIA AND ADVERTISING
? In 2011, RGCH signed Salman Khan, a Bollywood superstar, as its new brand ambassador for Revital. ? The megastar was an obvious choice keeping in mind the huge mass appeal he carries and also being a fitness icon. It?s a unique bond between India?s No.1 health supplement Revital and India?s No.1 Superstar. ? Before Salman Khan, famous Indian cricketer Yuvraj Singh was the brand ambassador for Revital from 2009 to 2011.
?
The original product Revital has now been extended to brands like Revital Woman catering to women & Revital Senior catering to people above 50 years of age.
?
Revital was the biggest RGCH sales contributor for Ranbaxy for Year 2011 with global sales of US $ 41 Mn (growth of 22%).
?
Latest data generated by market research entity AIOCD AWACS shows that Revital brands grossed Rs 158.5 crore for the 12 months ended February 2012 (on a moving annual total or MAT basis). The MAT value on February 2011 for the brand was Rs 140.7 crore. Comparable figures for the same period in 2010 and 2009 were Rs 117.5 crore and Rs 68.1 crore, respectively.
6
K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
B) VOLINI GEL & SPRAY VOLINI Revenue (Rs. in Crore)
160 140 120 100 80 60 40 2010 2011 2012 80.8 Revenue (in Crore Rs.) 126.1 141.3
? ? Volini is a modern day pain reliever, scientifically formulated for effective pain relief. ? ? ? It is available in two forms – Gel & Spray. It can be used for Joint, Back, Neck & Shoulder pains, sprains & strains. Volini Spray is India?s No.1 selling spray. It can be used relief from back pain, joint pain, Neck & shoulder pain. It is ideal minor sports injuries & muscle sprains and strains. ? ? Volini is the fastest growing pain relief brand in India at present. In 2011, Ranbaxy launched “Volini Activ”, a transparent Ayurvedic, yet modern Pain Relieving Gel having a unique „Power of 3? combination of Clove Oil, Shallaki and Capsaicin in India. 7
K.J.Somaiya Institute of Management Studies & Research, Mumbai
Theproduct is strong on sensorials, with a warm sensation and strong fragrant smell that connotes efficacy.
?
RGCH also launched “Volini Duo”, India?s first approved two-in-one pain killer, a unique bi-layered Acetaminophen tablet, specially formulated to give dual pain relief.
? ?
Volini, the fastest growing pain relief brand crossed the Rs. 1,000 Mn mark in 2011 in India. In the pain relief category, Volini maintained its No. 1 brand status at the chemist level (Nielsen RMS MAT December 2011). It was adjudged as the best brand at the Indian Pharma Summit consecutively for 2 years. Volini was also conferred the Starbrands India 2011 Award.
?
Marketing Management – I
Trimester 1
2. ZYDUS WELLNESS LIMITED
? The group has several brands that feature amongst the top 300 pharmaceutical brands in India. ? Zydus Wellness Ltd., which spearheads the group's presence in the consumer and wellness segment were recently listed amongst Asia's 200 „Best Under a Billion? companies by Forbes. ? Zydus Wellness owns few of the most reputed and famous OTC products like “Sugar Free”, “EverYouth” Face wash, ABOUT THE COMPANY ? Zydus Cadila is an Ahmedabad based global healthcare provider and one of the top five pharma companies in India. ? The company was founded by OTC PRODUCTS BY ZYDUS WELLNESS “Nutralite” and “ActiLife”.
? Sugar Free ? EverYouth Naturals ? Nutralite ? ActiLife
Late Mr. Ramanbhai B. Patel in 1952 and went on to become the second largest pharma company in the early 1990?s. ? In 1995, the group restructured its operations and now operates as Cadila Healthcare Ltd., under the aegis of the Zydus group. The company has posted revenues of Rs. 5200 crores in FY12. The group had posted a turnover of Rs. 4600 crores in FY 11, making it a billion dollar company.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
A) SUGAR FREE
? Three types of products are available in the market under the brand name SUGAR FREE o Sugar Free Gold o Sugar Free Natura o Sugar Free Herbvia ? All products are available in several forms like pellets, sachets, diet sugars and
concentrated powders. ? SugarFree has consolidated its position in the low calorie sugar substitute market with a market share of more than 90% as of March 31, 2012. ? “SUGAR FREE” is a nutritious, safe and ideal low calorie sugar substitute, giving you the sweetness and taste of sugar but with negligible calories to worry about! ? Each teaspoon of sugar gives you 20 calories without any nutritive value. Sugar Free gives you the same taste of sugar but with negligible calories. ? Sugar Free Gold can be added to tea, coffee, milk, cornflakes, nimbupani, fruit juices etc. ? With 90 per cent market share, Sugar Free is leading the category in an INR 1.2 billion sugar substitute market (estimated in mid2000) that is growing at 20 per cent per annum.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
Zydus Wellness OTC Sales (Rs. In Cr)
600 500 400 394.6 335.4 300 267.5 200 FY FY FY FY FY 10 11 12 13 e 14 e 578.4 477.5
B) EVERYOUTH NATURALS
? ? “EverYuth–Celebrating Youth!” The face is a reflection of one's inner health. Keeping this in mind, Zydus Wellness Ltd. introduced a range of specialty skincare
Sales (Rs. In Cr)
products under the brand name of EverYuth Naturals. ? While having the advantage of being a 'skincare brand from a healthcare company', EverYuth Naturals has always come up with products that are designed keeping in mind
BRAND POSITIONING ? The brand management team constantly wanted to effectively and efficiently connect with the target market. In the recent times, increasing number of brand managers have been exploring and adopting 360° ?
the different needs and skin types of women. Today, EverYuth Naturals has a strong leadership presence in advanced skincare segments like soap-free face wash, face masks, and skin exfoliators amongst others. It also includes specialty dermatologically tested skincare solutions for sun protection, pigmentation and acne. ? EverYuth has recently forayed into the market of male skincare with the launch EverYuth Menz.
communication approaches to reach the target audience. ? Sugar Free was launched as an ethical drug and the target consumers were the diabetic patients.
?
The company therefore repositioned Sugar Free as a lower calorie sweetener and accordingly components. 10 sharpened the relevant
K.J.Somaiya Institute of Management Studies & Research, Mumbai
Marketing Management – I
Trimester 1
Key Competition: ? ? ? ? Key competitor for Nutralite is AMUL butter. Margarine market size is estimated around 300Cr at present. Currently Amul has 70% market share in Butter segment while Nutralite has 25 – 27%. Nutralite is marching much faster than
anticipated because of its unique marketing strategies and product presentation. Price of Nutralite is also another important factor of growth. It cost almost 1/3rd of Butter price which make it wiser economic decision for food industry. ?
C) NUTRALITE
? ? Nutralite – “Healthier than Butter” Keeping in line the idea of promising health along with fitness, Zydus Wellness offers Nutralite, which is a healthy alternative to butter. ? Nutralite is a table margarine which has less cholesterol ? and does not contain
To respond to the competition, Amul has launched Amul Lite but because of early comers advantage is with Zydus it is getting tough for Amul to reposition itself.
? ?
At present context, Nutralite margins to fall due to higher palm oil prices. As 75% of the Nutralite business is institutional and has lower pricing power, the company expects to continue to suffer on the margin front as palm oil prices continue to rule higher due to rupee depreciation.
hydrogenated fats. Nutralite tastes like butter; all of these advantages make its profile healthier. Today, it is widely accepted as a healthier substitute to butter.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
Key Competition: ? Key competitors for Actilife are Cadbury Bournvita, Nestle Milo, Amul Nutramul, Horlics, etc. ? ? As Actilife is launched in 2011 only, it is really hard to predict future of this product. Having strong marketing strategist team and past experience of introducing new products in competitive market can give edge to this product.
D) ACTILIFE
? ? Actilife – “Daily Nutrition for Active Life.” Actilife is low on fat and is Enriched with prebiotic ActiFibres that improve digestion, reduce cholesterol and improve overall immunity. ? ? It has got stress relievers – 100% RDA of Vitamin C and Vitamin B complex It is available in 3 different flavors. o Chocolate o Coffee o Malt
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
Zydus OTC Products
Sugar Free Gold EverYouth Neem Facewash Nutralite ActiLife Chocolate Flavor
Quantity
330 Pellets 100 ml 500 gms 300 gms
Price
Rs. 130.20 Rs. 55.00 Rs. 108.00 Rs. 145.00
? ?
As Actilife is launched in 2011 only, it is really hard to predict future of this product. Having strong marketing strategist team and past experience of introducing new products in competitive market can give edge to this product.
3. GLAXOSMITHKLINE
ABOUT THE COMPANY ? ? ? GlaxoSmithKline (GSK) is an UK based multinational pharmaceutical company. It is world?s fourth largest company behind Pfizer, Novartis and Sanofi. GSK?s Consumer Health Care business in India is part of GLAXOSMITHKLINE CONSUMER HEALTHCARE LTD. ? ? ? GSK Consumer Healthcare?s journey in India began with Horlicks, which has presence in India over 100 years.. The company also manufactures Boost, Viva, Maltova, Biscuits, Eno, Iodex, etc. GSKCH has strong marketing and
distribution network in India comprising 4800 wholesalers and presence over
7,00,000 retail outlets.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
OTC PRODUCTS BY GSK
? Horlicks ? Iodex ? Eno
FINANCIAL STATUS OF GSK
3000 2800 2600 2400 2200 2000 1800 1600 1400 1200 1000 1210
GSKCH Sales
2430 2025 1700 1396
Sales (Rs. In Cr) 2832 400 350 300 250 200 150 100
GSKCH Profit
Profit (Rs. In Crore) 355 299
232 188 162 126
2006 2007 2008 2009 2010 2011
2006
2007
2008
2009
2010
2011
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
A) HORLICKS
JUNIOR HORLICKS
MOTHER’S HORLICKS
? ? ? ?
Horlicks – “The great Family Nourisher” Horlicks is a leading Health Food Drink in India. As per the data of 2010, it enjoys more than 50% market share of food drinks in India. There are five variants of Horlicks available in the market. o Horlicks Ninja o Junior Horlicks o Mother?s Horlicks o Horlicks Lite o Horlicks Biscuits. HORLICKS LITE
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
B) IODEX
? ? ? Iodex – “Pain should not come in the way of your life.” Iodex has presence in India since 1919. It is one of the leading brands in topical pain relief segment that provide quick relief from head, neck, joints and muscular pain. ? Iodex had sponsored Indian hockey team in past. PRICING OF IODEX ? ? ? Price for 10gm Pack: Rs. 20 Total Sales in Year 2011: 26.16 Lac Sales Growth in 2011: 18% (YoY) ? ? Iodex has three variants available in the market. o Iodex Double Power o Iodex Headfast o Iodex Ultra Gel Iodex is available in number of pack sizes: o 10 gms o 20 gms o 50 gms.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
C) ENO
? ? ? Eno is available in both sachets and bottles. Eno is available in India in more than 15,00,000 outlets. Eno has 99% market share in powder based antacid products.
? ? ? ? ?
Eno – “Eno on Acidity gone…” PRICING OF IODEX Eno – “Gets to work in 6 seconds” Eno is 100 year old global brand. It has presence in more than 40 countries. It is an antacid taken for providing instant relief from acidity, gastric discomfort and heart burn.
? ?
As per the company?s claim, Eno gets back you on track within six seconds. Eno comes in various flavours as follows: o Orange o Masaumbi o Lemon? o Guava
17
K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
SOME OTHER MAJOR OTC PLAYERS IN INDIA
Johnson & Johnson
Baby Care Products
Women Care Products
Benadryl
Clean n Clear
PARAS Pharma
Dçold
Itchguard
Moov
Krack
Dermicool
18
BCG MATRIX FOR MAJOR OTC PLAYERS
19
REFERENCES:
? ? ? ? ?
http://www.business-standard.com/content/research_pdf/zydus_301211.pdfhttp://search.proquest.com/business/docview/1014024443/13842F090D815FDDDF2/2?accountid=31551http://search.proquest.com/business/docview/867668310/13842F090D815FDDDF2/1?accountid=31551http://search.proquest.com/docview/872073532/fulltext/1384319761B38DF9ECF/2?accountid=31551http://web.ebscohost.com/ehost/pdfv...4ea2-cd6d-4381-b42f0a776e7f7869@sessionmgr112
?
http://web.ebscohost.com/ehost/pdfv...4ea2-cd6d-4381-b42f0a776e7f7869@sessionmgr112
? ?
http://gsk-ch.in/downloads/GSK_Annual_Report_2011.pdfhttp://web.ebscohost.com/ehost/resu...2&bquery=glaxosmithkline&bdata=JmRiPWJ0aCZ0eX BlPTEmc2l0ZT1laG9zdC1saXZl
?
http://web.ebscohost.com/ehost/pdfv...4ea2-cd6d-4381-b42f0a776e7f7869@sessionmgr112
?
http://business-standard.com/india/news/eno-looking-foryounger-audience/475481/
20
doc_328834840.pdf
pharma companies active in OTC drugs market in India.
OVER THE COUNTER PRODUCTS
NEW SEGMENT FOR PHARMA GROWTH
PATEL DHVANIL MAHENDRABHAI PGDM – IB ROLL NUMBER: 34 YEAR: 2012 - 14
PREFACE
? Life is like a balloon. Stress stretches its rubber fabric; responsibility fills it to full capacity day in and day out. One thing goes wrong, and your whole day is ruined. The very next day, the balloon rapidly fills – only to pop again. ? Coping with everyday pressures and
responsibilities can sometimes seem impossible. Hence many run to drugs, some to alcohol, a few to family, some give up entirely, and a few carry on – refusing to let responsibilities tell their demise. ? In the midst of all the stress, our people have discovered, what is for many, a new way of dealing with life?s struggles: Over The ? drugs are almost always passed over a counter from the pharmacist to the customer having valid prescription from physician. As a general rule, over-the-counter drugs have to be used primarily to treat a condition that does not require the direct supervision of a doctor and must be proven to be reasonably safe and welltolerated. ? There are very few legal restraints on the OTC drug market. And pharmacists, those permitted to sell drugs without permission from a Registered Medical Practitioner, may legally distribute OTC drugs at their own digression.
FEW OF THE REPUTED OTC DRUGS.
Counter (OTC) drugs.
INTROUCTION
? In general, any drug not included in the list of „prescription-only? drugs is considered a „nonprescription,? or „over the counter? (OTC) drug. ? The term over-the-counter is self explanatory. Since, in most of the countries, these drugs are often located on the shelves of stores like any other packaged product. Hence the term OTC came in to the picture. In contrast, prescription
1 K.J.Somaiya Institute of Management Studies & Research, Mumbai
Marketing Management – I
Trimester 1
OTC DRUGS MARKET IN INDIA ? In India, the import, manufacture, distribution and sale of drugs and cosmetics are regulated by the Drugs and Cosmetics Act (DCA) and its subordinate legislation, the Drugs and Cosmetics Rules (DCR). ? OTC proprietary drugs which are registered as „Ayurvedic Medicines? (traditional Indian medicines containing natural / herbal
ingredients) are also regulated by the DCA and DCR. However, they do not require a drug license and can therefore be sold by nonchemists. There is no price control on „Ayurvedic medicines?. ? Some of the top OTC brands in India such as Vicks VaproRub, Amrutanjan Balm,
REVITAL’S MEDIA PROMOTION BY SALMAN KHAN
Zandu Balm, Iodex, Moov Pain Cream, Itch Guard Cream, ENO Fruit Salt, Vicks Cough Drops, Halls Lozenges, etc., are registered as „Ayurvedic Medicines? because of their plant-based natural active ingredients. ? Some of the non-Aurvedic products includes Sugar Free by Zydus Wellness, Volini Gel and Revital by Ranbaxy Labs, i – Pill Capsule by Pirmal Healthcare as well.
SANJEEV KAPOOR LAUNCHING SUGER FREE NATURA
2
K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
?
It also prohibits misleading advertisements, which, directly or indirectly, give false impressions regarding the true character of the drug; make false claims, or are otherwise false or misleading in any particular respect.
?
Currently, there is no specific law, which prohibits the advertising of prescription drugs although industry practice is not to advertise prescription-only drugs. The DCGI?s office is considering coming out with a notification
CAPTION YOUR PHOTO HERE
prohibiting the advertising of any drug, which legally requires a doctor?s prescription for its purchase. ?
?
Considering the above framework, key categories with OTC potential in India would be: • Vitamins and minerals • Cough and Cold • Gastrointestinals • Analgesics /Dermatological MEDIA ADVERTISING TO THE GENERAL PUBLIC IN INDIA ?
The following OTC medicines advertising can be seen on TV in India: ? ? ? ? ? Digestives Antacids Antiflatulents Cold rubs and analgesic balms/creams Vitamins/tonics/health supplements
(especially herbals and AyurvedicThe Drug & Magic Remedies ? ? ? registered) Medicated skin treatment Analgesic/cold tablets Antiseptic creams/liquids (Objectionable Advertisement) Act mentions a list of ailments for which no advertising is permitted.
3
K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
BIG PLAYERS IN INDIAN OTC SEGMENT
?
Indian consumers, today, are confident about sharing healthcare responsibility, especially in case of common ailments.
?
Currently,
aches/pains,
cough,
colds,
hyperacidity, minor topical infections, and indigestion are major OTC categories.
Emerging categories include cuts, wounds and burns, muscle pains and sprains, diarrhea and constipation. There are many Prescription products, which could be revitalized through OTC switches. ? ? ? ? ? ? Glucose powders Cough liquids Throat lozenges Medicated dressing (band-aids) Baby gripe water. Currently, there is no specific law, which prohibits the advertising of prescription drugs although industry practice is not to advertise prescription-only drugs. The DCGI?s office is considering coming out with a notification prohibiting the advertising of any drug, which legally requires a doctor?s prescription for its purchase.
SWITCH FROM PRESCRIBE DRUGS TO OTC PRODUCTS ? India is inching the OTC way. Indian OTC healthcare is in nascent stages and ranks 11th in the global OTC market. But, urban India is catching up with the concept, thanks to the advent of technology, improving literacy levels, increasing health awareness and high work stress levels. 4
K.J.Somaiya Institute of Management Studies & Research, Mumbai
Marketing Management – I
Trimester 1
1. RANBAXY LABORATORIES
? In June 2011, Ranbaxy?s sales reach to $2 Bn. It is the first ever Indian pharmaceutical company to cross this mark. ? Today it has presence in 43 countries with manufacturing facilities in 8 countries with workforce of 14,000. ? Ranbaxy?s Over-The-Counter product division also known as RGCH contributes 11% of total sale as on March 2011. ? ABOUT THE COMPANY ? Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1961. The name Ranbaxy is a combination of the names of its first owners Ranbir and Gurbax. ? ? The company went public in 1973. In 1998, Ranbaxy entered the United States, the world's largest pharmaceuticals market and now the biggest market for Ranbaxy, accounting for 28% of Ranbaxy's sales in 2010. ? In June 2008, Japan's Daiichi Sankyo ? ? ? OTC PRODUCTS BY RANBAXY ? RGCH recorded sales of US $ 212 Mn in 2011 registering growth of 12% YoY. India was the highest contributor with US $ 65 Mn sales (growth of 23%)
? REVITAL ? VOLINI GEL AND SPRAY A) REVITAL
Revital – “Jeeyo Jee Bhar Ke” Revital is a brand of health
supplement which is a combination of eleven Vitamins and nine Minerals. Revital provides most important vitamins and minerals in amounts equivalent to the required daily limit.
Company agreed to take a majority (50.1%) stake in Ranbaxy, with a deal valued at about $4.6 billion.
5
K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
REVITAL Revenue (Rs. in Crore )
160 140 120 100 80 60 40 2010 2011 2012 80.8 126.1 Revenue (in Crore Rs.) 141.3
MEDIA AND ADVERTISING
? In 2011, RGCH signed Salman Khan, a Bollywood superstar, as its new brand ambassador for Revital. ? The megastar was an obvious choice keeping in mind the huge mass appeal he carries and also being a fitness icon. It?s a unique bond between India?s No.1 health supplement Revital and India?s No.1 Superstar. ? Before Salman Khan, famous Indian cricketer Yuvraj Singh was the brand ambassador for Revital from 2009 to 2011.
?
The original product Revital has now been extended to brands like Revital Woman catering to women & Revital Senior catering to people above 50 years of age.
?
Revital was the biggest RGCH sales contributor for Ranbaxy for Year 2011 with global sales of US $ 41 Mn (growth of 22%).
?
Latest data generated by market research entity AIOCD AWACS shows that Revital brands grossed Rs 158.5 crore for the 12 months ended February 2012 (on a moving annual total or MAT basis). The MAT value on February 2011 for the brand was Rs 140.7 crore. Comparable figures for the same period in 2010 and 2009 were Rs 117.5 crore and Rs 68.1 crore, respectively.
6
K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
B) VOLINI GEL & SPRAY VOLINI Revenue (Rs. in Crore)
160 140 120 100 80 60 40 2010 2011 2012 80.8 Revenue (in Crore Rs.) 126.1 141.3
? ? Volini is a modern day pain reliever, scientifically formulated for effective pain relief. ? ? ? It is available in two forms – Gel & Spray. It can be used for Joint, Back, Neck & Shoulder pains, sprains & strains. Volini Spray is India?s No.1 selling spray. It can be used relief from back pain, joint pain, Neck & shoulder pain. It is ideal minor sports injuries & muscle sprains and strains. ? ? Volini is the fastest growing pain relief brand in India at present. In 2011, Ranbaxy launched “Volini Activ”, a transparent Ayurvedic, yet modern Pain Relieving Gel having a unique „Power of 3? combination of Clove Oil, Shallaki and Capsaicin in India. 7
K.J.Somaiya Institute of Management Studies & Research, Mumbai
Theproduct is strong on sensorials, with a warm sensation and strong fragrant smell that connotes efficacy.
?
RGCH also launched “Volini Duo”, India?s first approved two-in-one pain killer, a unique bi-layered Acetaminophen tablet, specially formulated to give dual pain relief.
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Volini, the fastest growing pain relief brand crossed the Rs. 1,000 Mn mark in 2011 in India. In the pain relief category, Volini maintained its No. 1 brand status at the chemist level (Nielsen RMS MAT December 2011). It was adjudged as the best brand at the Indian Pharma Summit consecutively for 2 years. Volini was also conferred the Starbrands India 2011 Award.
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Marketing Management – I
Trimester 1
2. ZYDUS WELLNESS LIMITED
? The group has several brands that feature amongst the top 300 pharmaceutical brands in India. ? Zydus Wellness Ltd., which spearheads the group's presence in the consumer and wellness segment were recently listed amongst Asia's 200 „Best Under a Billion? companies by Forbes. ? Zydus Wellness owns few of the most reputed and famous OTC products like “Sugar Free”, “EverYouth” Face wash, ABOUT THE COMPANY ? Zydus Cadila is an Ahmedabad based global healthcare provider and one of the top five pharma companies in India. ? The company was founded by OTC PRODUCTS BY ZYDUS WELLNESS “Nutralite” and “ActiLife”.
? Sugar Free ? EverYouth Naturals ? Nutralite ? ActiLife
Late Mr. Ramanbhai B. Patel in 1952 and went on to become the second largest pharma company in the early 1990?s. ? In 1995, the group restructured its operations and now operates as Cadila Healthcare Ltd., under the aegis of the Zydus group. The company has posted revenues of Rs. 5200 crores in FY12. The group had posted a turnover of Rs. 4600 crores in FY 11, making it a billion dollar company.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
A) SUGAR FREE
? Three types of products are available in the market under the brand name SUGAR FREE o Sugar Free Gold o Sugar Free Natura o Sugar Free Herbvia ? All products are available in several forms like pellets, sachets, diet sugars and
concentrated powders. ? SugarFree has consolidated its position in the low calorie sugar substitute market with a market share of more than 90% as of March 31, 2012. ? “SUGAR FREE” is a nutritious, safe and ideal low calorie sugar substitute, giving you the sweetness and taste of sugar but with negligible calories to worry about! ? Each teaspoon of sugar gives you 20 calories without any nutritive value. Sugar Free gives you the same taste of sugar but with negligible calories. ? Sugar Free Gold can be added to tea, coffee, milk, cornflakes, nimbupani, fruit juices etc. ? With 90 per cent market share, Sugar Free is leading the category in an INR 1.2 billion sugar substitute market (estimated in mid2000) that is growing at 20 per cent per annum.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
Zydus Wellness OTC Sales (Rs. In Cr)
600 500 400 394.6 335.4 300 267.5 200 FY FY FY FY FY 10 11 12 13 e 14 e 578.4 477.5
B) EVERYOUTH NATURALS
? ? “EverYuth–Celebrating Youth!” The face is a reflection of one's inner health. Keeping this in mind, Zydus Wellness Ltd. introduced a range of specialty skincare
Sales (Rs. In Cr)
products under the brand name of EverYuth Naturals. ? While having the advantage of being a 'skincare brand from a healthcare company', EverYuth Naturals has always come up with products that are designed keeping in mind
BRAND POSITIONING ? The brand management team constantly wanted to effectively and efficiently connect with the target market. In the recent times, increasing number of brand managers have been exploring and adopting 360° ?
the different needs and skin types of women. Today, EverYuth Naturals has a strong leadership presence in advanced skincare segments like soap-free face wash, face masks, and skin exfoliators amongst others. It also includes specialty dermatologically tested skincare solutions for sun protection, pigmentation and acne. ? EverYuth has recently forayed into the market of male skincare with the launch EverYuth Menz.
communication approaches to reach the target audience. ? Sugar Free was launched as an ethical drug and the target consumers were the diabetic patients.
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The company therefore repositioned Sugar Free as a lower calorie sweetener and accordingly components. 10 sharpened the relevant
K.J.Somaiya Institute of Management Studies & Research, Mumbai
Marketing Management – I
Trimester 1
Key Competition: ? ? ? ? Key competitor for Nutralite is AMUL butter. Margarine market size is estimated around 300Cr at present. Currently Amul has 70% market share in Butter segment while Nutralite has 25 – 27%. Nutralite is marching much faster than
anticipated because of its unique marketing strategies and product presentation. Price of Nutralite is also another important factor of growth. It cost almost 1/3rd of Butter price which make it wiser economic decision for food industry. ?
C) NUTRALITE
? ? Nutralite – “Healthier than Butter” Keeping in line the idea of promising health along with fitness, Zydus Wellness offers Nutralite, which is a healthy alternative to butter. ? Nutralite is a table margarine which has less cholesterol ? and does not contain
To respond to the competition, Amul has launched Amul Lite but because of early comers advantage is with Zydus it is getting tough for Amul to reposition itself.
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At present context, Nutralite margins to fall due to higher palm oil prices. As 75% of the Nutralite business is institutional and has lower pricing power, the company expects to continue to suffer on the margin front as palm oil prices continue to rule higher due to rupee depreciation.
hydrogenated fats. Nutralite tastes like butter; all of these advantages make its profile healthier. Today, it is widely accepted as a healthier substitute to butter.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
Key Competition: ? Key competitors for Actilife are Cadbury Bournvita, Nestle Milo, Amul Nutramul, Horlics, etc. ? ? As Actilife is launched in 2011 only, it is really hard to predict future of this product. Having strong marketing strategist team and past experience of introducing new products in competitive market can give edge to this product.
D) ACTILIFE
? ? Actilife – “Daily Nutrition for Active Life.” Actilife is low on fat and is Enriched with prebiotic ActiFibres that improve digestion, reduce cholesterol and improve overall immunity. ? ? It has got stress relievers – 100% RDA of Vitamin C and Vitamin B complex It is available in 3 different flavors. o Chocolate o Coffee o Malt
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
Zydus OTC Products
Sugar Free Gold EverYouth Neem Facewash Nutralite ActiLife Chocolate Flavor
Quantity
330 Pellets 100 ml 500 gms 300 gms
Price
Rs. 130.20 Rs. 55.00 Rs. 108.00 Rs. 145.00
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As Actilife is launched in 2011 only, it is really hard to predict future of this product. Having strong marketing strategist team and past experience of introducing new products in competitive market can give edge to this product.
3. GLAXOSMITHKLINE
ABOUT THE COMPANY ? ? ? GlaxoSmithKline (GSK) is an UK based multinational pharmaceutical company. It is world?s fourth largest company behind Pfizer, Novartis and Sanofi. GSK?s Consumer Health Care business in India is part of GLAXOSMITHKLINE CONSUMER HEALTHCARE LTD. ? ? ? GSK Consumer Healthcare?s journey in India began with Horlicks, which has presence in India over 100 years.. The company also manufactures Boost, Viva, Maltova, Biscuits, Eno, Iodex, etc. GSKCH has strong marketing and
distribution network in India comprising 4800 wholesalers and presence over
7,00,000 retail outlets.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
OTC PRODUCTS BY GSK
? Horlicks ? Iodex ? Eno
FINANCIAL STATUS OF GSK
3000 2800 2600 2400 2200 2000 1800 1600 1400 1200 1000 1210
GSKCH Sales
2430 2025 1700 1396
Sales (Rs. In Cr) 2832 400 350 300 250 200 150 100
GSKCH Profit
Profit (Rs. In Crore) 355 299
232 188 162 126
2006 2007 2008 2009 2010 2011
2006
2007
2008
2009
2010
2011
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
A) HORLICKS
JUNIOR HORLICKS
MOTHER’S HORLICKS
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Horlicks – “The great Family Nourisher” Horlicks is a leading Health Food Drink in India. As per the data of 2010, it enjoys more than 50% market share of food drinks in India. There are five variants of Horlicks available in the market. o Horlicks Ninja o Junior Horlicks o Mother?s Horlicks o Horlicks Lite o Horlicks Biscuits. HORLICKS LITE
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
B) IODEX
? ? ? Iodex – “Pain should not come in the way of your life.” Iodex has presence in India since 1919. It is one of the leading brands in topical pain relief segment that provide quick relief from head, neck, joints and muscular pain. ? Iodex had sponsored Indian hockey team in past. PRICING OF IODEX ? ? ? Price for 10gm Pack: Rs. 20 Total Sales in Year 2011: 26.16 Lac Sales Growth in 2011: 18% (YoY) ? ? Iodex has three variants available in the market. o Iodex Double Power o Iodex Headfast o Iodex Ultra Gel Iodex is available in number of pack sizes: o 10 gms o 20 gms o 50 gms.
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
C) ENO
? ? ? Eno is available in both sachets and bottles. Eno is available in India in more than 15,00,000 outlets. Eno has 99% market share in powder based antacid products.
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Eno – “Eno on Acidity gone…” PRICING OF IODEX Eno – “Gets to work in 6 seconds” Eno is 100 year old global brand. It has presence in more than 40 countries. It is an antacid taken for providing instant relief from acidity, gastric discomfort and heart burn.
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As per the company?s claim, Eno gets back you on track within six seconds. Eno comes in various flavours as follows: o Orange o Masaumbi o Lemon? o Guava
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K.J.Somaiya Institute of Management Studies & Research, Mumbai Marketing Management – I Trimester 1
SOME OTHER MAJOR OTC PLAYERS IN INDIA
Johnson & Johnson
Baby Care Products
Women Care Products
Benadryl
Clean n Clear
PARAS Pharma
Dçold
Itchguard
Moov
Krack
Dermicool
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BCG MATRIX FOR MAJOR OTC PLAYERS
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REFERENCES:
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http://www.business-standard.com/content/research_pdf/zydus_301211.pdfhttp://search.proquest.com/business/docview/1014024443/13842F090D815FDDDF2/2?accountid=31551http://search.proquest.com/business/docview/867668310/13842F090D815FDDDF2/1?accountid=31551http://search.proquest.com/docview/872073532/fulltext/1384319761B38DF9ECF/2?accountid=31551http://web.ebscohost.com/ehost/pdfv...4ea2-cd6d-4381-b42f0a776e7f7869@sessionmgr112
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http://web.ebscohost.com/ehost/pdfv...4ea2-cd6d-4381-b42f0a776e7f7869@sessionmgr112
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http://gsk-ch.in/downloads/GSK_Annual_Report_2011.pdfhttp://web.ebscohost.com/ehost/resu...2&bquery=glaxosmithkline&bdata=JmRiPWJ0aCZ0eX BlPTEmc2l0ZT1laG9zdC1saXZl
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http://web.ebscohost.com/ehost/pdfv...4ea2-cd6d-4381-b42f0a776e7f7869@sessionmgr112
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http://business-standard.com/india/news/eno-looking-foryounger-audience/475481/
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doc_328834840.pdf