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A Case Study on a Mid-Sized Firm in Pharmaceutical Industry

By Vipul Tyagi, 3EA
A Case Study on a Mid-Sized Firm in Pharmaceutical Industry

A Mid-Sized Firm in Pharmaceuticals

In the year 2017, the mid-sized firm in pharmaceuticals was incorporated with a vision to sell the medicine as a white labeling for the drugs. But they had several issues pertaining to the marketing of the products they were offering. They have a portfolio of 16 drugs that are with them currently. They wanted to understand how could they market their products well so that doctors start prescribing their medicines.

Operations and SCM

From operations point of view, the procurement of the finished goods is done from the facility in the Uttrakhand who supplies to the other pharma companies and has a forte in the packaging of the medicines also. They have a tie up with a transport agency that helps them in timely supplies of the medicines at Lucknow center. Since they already have a big pharma drugs shop inside the premises of a big hospital there, they know how to handle the drugs. Their pharma shop is one of the major source of the monetary funding and the setup also provides them the storage facilities for the incoming lot of the medicines.

Products

There are 16 products that are present with the brand currently. 6 Injectable, 2 Syrup, 4 tablets, 3 capsule and 1 Sachet. The Product list (The salts/composition) is mentioned in the ANNEXURE 1.

USP and Packaging

The overhead costs of finding a new supplier of the medicines is approximately 2 lacs (Which is considered as the sunk Cost). The products come in packaging at par with the competitors i.e. in a good packaging with proper naming & all the details required by the law.

Dealer's Margin

There is no percentage cut being offered to the dealers. Rather free products are provided to them which are being mentioned in the Annexure 1. Some are provided 20% of the lot being provided and for some products either less or more.

How we helped?

We contacted people in the Industry (Like MRs and Doctors) and understood their perspective about the kind of product we are offering. From the MRs (Medical Representatives), we understood that the products portfolio brand has is "Me Too" products i.e. every big or small pharma company is manufacturing them. Thus, there is a lot of clutter in the market and every brand is pushing these products. There is nothing much that can be done in the new tactic that can be applied here. Thus, we understood that to push the products, we need the right kind of MRs and the strategies that can be derived from their experiences with the doctor. Along with the meeting, they should be professionally groomed and should be punctual in receiving, following up and meeting with the doctors. If they are able to articulate whatever they want to say and keenly observe the doctor's behavior, they can approach the doctor in a better way. We also understood from the doctors the product offering our client should keep so that while approaching the doctors (Surgeons, Gaynecs etc.) what all should be there so that the doctor has a choice to choose from a wide range of products. They suggested certain number of salts combination that will complement those products.

Gynecologists also suggested what is the latest trend with the big companies. From our secondary research, we suggested the number and names of the drugs that are going off-patent which can be leveraged by the brand along with the drug's potential market size and their Y-o-Y growth (In the patented Years). We also suggested the KPIs and KRAs for the MR team for their efficient working.

ANNEXURE 1:
Products and Pricing

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This case is solely written for the purpose of the company's understanding. The Author doesn't intend to illustrate either effective or ineffective handing of the managerial situation. The Authors may have disguised certain names and identifying information to protect confidentiality.

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Article by: Vipul Tyagi, 3EA