introduction of the topic:

sales promotion is a key ingredient in marketing campaigns,

consists of a diverse collection ofincentive tools, mostly short
term,designed to stimulate quicker or greater purchase of
particular products or services by consumers or the trade.
where as advertising offers a reasons to buy, sales promotion
offers an incentives to buy. sales promotion includes tools for
for consumers promotions (samples,coupons,cash refunds offers,
process off, premiums, prices , patronage rewards,free trials,
tie-in promotions,cross promotions,point-of-purchase
displays,and demonstrations);trade promotions and sales force
promotions.these tools are used by most organization, including
non-profit organization.
"SALES PROMOTION COMPRISES OF TACTICAL MARKETING TEECHNIQUES
DESIGNED WITHIN A STRATEGIC MARKETING FRAMEWORK TO ADD VALUE TO
A PRODUCT OR SERVICE IN ORDER TO ACHIEVE SPECIFIC SALES AND
MARKETING OBJECTIVES"
SALES PROMOTION IS A TECHNIQUE WHICH HAS SIGNIFICANT POTENTIALTO
IMPROVE SHORT TERM SALES AND LIKE DIRECT RESPONSE WORK;ITS
EFFECTIVENESS CAN BE TIGHTLY MEASURED. ALTHOUGH ITS STRATEGIC
VALUE IS THE SUBJECT OF CONSIDERABLE DEBATE, NEVERTHELESS, IT IS
AN IMPORTANT TOOL OF MARKETING.
SEVERAL FACTORS CONTRIBUTE TO THIS RAPID GROWTH,PARTICULARLY IN
THE CONSUMER MARKETS.P[ROMOTION IS NOW ACCEPTED BY TOP
MANAGEMENTAS AN EFFECTIVE SALES TOOL;MORE PRODUCT MANAGERS
QUALIFIED TO USE SALES PROMOTION TOOLS;AND PRODUCT MANAGERS ARE
UNDER PRESSURE TO INCREASE CURRENT SALES.IN ADDITION,THE NUMBER
OF BRANDS HAS INCREASED; COMPETITORS USE PROMOTIONS FREQUENTLY;
MANY BRANDS ARE SEEN AS SIMILAR; CONSUMERS ARE MORE PRICEORIENTED; THE TRADE HAS DEMANEDE MORE DEALS FROM THE
MANUFACTURERS; AND THE ADVERTISING EFFICIENCY HAS DECLINED
BECAUSE OF RISING COSTS,MEDIA CLUTTER, AND LEGAL RESTRAINTS.

INTRODUCTION TO THE TOPIC(PHARMACUETICAL

COMPANY):
M a n y i n d u s t r y e x p e r t s b e l i e v e t h a t t h e r e t u r n o f t h e wo r l d s
l e a d i n g pharmaceutical companies will gradually erode Indias cost advantages.
According tothe Organization of Pharmaceutical Producers of India, multinational
drug companiescurrently command 24 percent of the domestic Indian market,
through their share couldrise to 40 percent by 2010.

Promotion means any activity undertaken, organised or sponso

red by a member company which is directed at healthcare
professionals to promote the
prescription,rec o mmen d ation , supply, ad min istration o r con
su mp tion of its ph armaceu tical product(s) through all
media, including the internet. A marketing program in order to
besuccessful must have a right mixture of marketing mix, not to mention
markets research,
a qu ality p ro duct, exten siv e d istribution n etwo rk accep tab i
lity, strong dose of promotion coupled with a right price.
. This leads to unique marketing mixes.The Indian pharmaceutical market is
small, both by Western standards and in terms
of per capita consumption. Although India is the worlds leading produc
er of genericdrugs, its annual per capita consumption of pharmaceuticals
is among the lowest in theworld at approximately $4.50 per person, as
compared with $820 in the United Statesand $13 in China in 2006. The
value of Indias pharmaceutical industry nearly doubledfrom $3.2
billion in 2000 to more than $6.2 billion in 2009, or by an
average of 12 percent annually (table 10). According
to the Associated Chambers of Commerce andIndustry of India
(Assocham), the Indian pharmaceutical market grew at an
averageannual rate of 13.6 percent during 2006-2010 to reach
$9.5 billion in sales by 2010.This 51 growth is expected to be
driven by: access to low cost, high volume
genericd r u g s ; m e r g e r s a n d a c q u i s i t i o n s : i n d u s t r y
co

n s o l i d a t i o n ; a n d I n d i a s g r o w i n g imp o rtan ce as a ph ar
maceu tical contract man uf acturing an d services
locatio n. Considering the healthcare of the Indian Public, the
Govt. of India encouraged thedomestic pharmaceutical companies
in India. When the international norms recognizedthe product patent,
the government of India enacted the Indian Patent Act in
1970(process patent), with the objectives of allowing the domestic
companies to grow.

What is strategy?
Strategy, a word of military origin, refers to a plan
of actions to achieve a particular goal. In military
usage strategy is distinct from tactics, which are
concerned with the conduct of the engagement, while
strategy is concerned with how different engagements
are linked.how a battle is fought is a matter of
tactics: the term and conditions that it is fought on
and whether it should be fought at all is a matter os
strategy, which is part of the four levels of warfare:
political , or grand strategy, strategy, operations,
and tactics. building on the work of many thinkers on
the subject, one can define strategy as a
comprehensive way to pursue political ends, including
the threat or actual use of force, in a dialectic of
will be there have to be atleast two sides to a
conflict. These sides interact and thus strategy is
formedwhich will rarely be successful if it shows no
adaptability.

introduction to the company/ company profile (history):

apex is a bradnded formulation who pioneered the introduction of zinc
in the pharmaceutical formulation in india.

started in 1978,apex is a pharmaceutical manufaturing and marketing

company headquatered in chennai, india. the company's products are
available in oral solids,oral liquids and toppical dosage forms.
enjoying brand leadership in nutraceuticals and dietry supplyments
product segments in india , the company's branded formulations also
are explored to more than 25 countries.
driven bhy value baseed business operations, the company's products
are known for consistent quality and ethical promotions.apex is
ranking among 50 pharmaceutical companies in india, as per ORG-IMS.

the company has recorded stable growth over the years and has
registered steep growth in the last 10 years. the current business
size is INR300 crores (USD60 million)and the company aims to achieve
INR500 crores(USD100 MILLION) BY 2015.
marketing is a core strength of apex laboratories. the team has proven
expertise in succesful launch of new products and establishing the
brands in competative market.

activities conduncted as a part of pharmaceuticals marketing and

promotion are an important component of educating and informing health
care professionals about new treatments. direct to consumers (DTC)
advertisements aim to inform patients of imortant treatment options
while pharmaceutical sales representatives work to get accurate, upto-date information on medicines to health care professionals.
In additions, in 2008 pharma adopted a newly revised code on
interactions with health care professionals .the streghthened code
reflects a commitments to maintaining the highest ethical standards in
all marketing practices and to promote the best patient care possible.
In Nagpur company sales 50 different products. Paraceutamol produced
by the apex is the 2nd largest brand in india.
Multivitamin zincovit is the most successful product of the apex its
a 180crore brand in india.

Sophinox vis sodium phusirate creame that has been patent in the
world.
Topical anti-biotic cream.

types of sales promotion:

A.consumer oriented sales promotion.
B.targeted to the ultimated users of a product or service.coupons,
sampling, premiums, rebates, contests,sweepstakes, and POP materials
are induced the sales.

C.trade oriented sales promotions:

D.targeted toward marketing intermediaries such as retailers,
wholesalers, or distributers. promotion allowances, merchandise
allowances, price deals, sales contest and trade shows.

objectives of study:
sales promotion is a tool used to achieve most of the five major
promotional objectives:
building product awareness-several sales promotion techniques are
highly effective in exposing customers to products for the first time
and can serve askey promotional components in the early stages of new
product introduction.additionally, as part of the effort to build
product awareness, several sales promotion techniques possess the
added advantage of capturing customers information at the time of
exposure to the promotion. in this way sales promotion can act as an
effective customer informationgathering tool(i.e., sales lead
generation) which then can be used as part of follow-up marketing
efforts.
1)providing information:
ghenraly promtional strategies are designed to move customers to some
actions and are rarely simply informational in nature. however,some
sales promotions do offer customers access to product information.for
instance a promotion may allow customers to try fee-based online for
the several days.this access may include recieving product information
vis email.
2)stimulating demand:
next to building initial product awareness,the most important use of
promotion is to build demand by convincing customers to make a
purchase. special promotions, especially those that lower the cost of

ownership to the customer(eg.,price reduction), can be employed to

stimulate sales.
3)reinforcing the brands:
once customers have made a purchase promotion can be used to both
encourage additional purchasing and also as a reward for purchase
loyaltymany companies , including airlines and retails stores, rewards
good preferred customers with special promotion, such as email
spaecial deals and price reduction at the cash register.

uses of sales promotions:

1) introduce new products.
2) get existing customers to buy more.
3) attract new customers.
4) combat competion.
5) maintaining sales in off season.
6) increase retail inventories.
7) tie in advertising and personal selling.
objectives of the study
*analysed the various promotion strategies adopted by apex
pharmaceutical company.
*to know awareness of people

objectives of the study

1) The present study of the apex pharmaceutical industry of India revolves

around the following basic objectives:
2) To understand how apex pharmaceutical company launch their product
3) To know what promotional strategies are used by apex pharmaceutical company
to sell their products in the market

4) To understand what is the role played by sales representatives in this regard

5) analyzed the various sales promotion strategies adopted by
apex pharmaceutical company.
6) to know awareness of people towards apex pharmaceutical
company.
7) to know which advertisement tool is mostly preferred.
8) to know the factors which affects consumers buying behavior.
9) to collect the detailed data by filling up the questionnaire
from employs of apex and doctors.

DRUG PROMOTION METHOD

The commercial needs of countless, fiercely competing pharmaceutical
companieshas led them to depend on the tried and tested 3Cs: convince if
possible, confuse if necessary, and corrupt if nothing else works.
Health professionals in developing countries like india work in overstretched
and under resourced sectors on low pay and in difficult conditions. In such
conditions the promotions from the drug companies are inviting. Disparities
in health spending between the worlds32
richest countries and the worlds poorest countries are such that a
relatively cheap promotion in a developing country will generate much more
interest there than it would in a developed country. The aim of drug promotion
is to persuade people to buy more drugs and/or to pay higher prices. This
is done by increasing the perceived value of the drug via one or more of
several approaches including:

Increasing the perceived frequency and/or severity of the indications.

Widening the indications to include more people.

Increasing the perceived likelihood and magnitude of benefits.

Decreasing the perceived likelihood and magnitude of harms.

Increasing the use of the drug for longer durations.The World Health Organization
defines drug promotion as including: all informationaland persuasive activities
by manufacturers and distributors, the effect of which is to induce the
prescription, supply, purchase and/or use of medicinal drugs. The main aimof

promotion is not to inform but to persuade. Consumer goods advertisements

rarelyconvey much information about the features of the product.

ISSUES RELATING TO PROMOTION:

The ethical promotion of prescription medicines is vital to the pharmaceutical
industry's mission of helping patients by discovering, developing and marketing
new
medicines.Et h i c a l p r o mo t i o n h e l p s t o e n s u r e t h a t h e a l t h c a r e p r o f e s s
i o n a l s h a v e a c c e s s t o information they need, that patients have access
to the medicines they need and that medicines are prescribed and used in a
manner that provides the maximum healthcare benefit to patients. It is understood
that national laws and regulations usually dictate the format and content of the
product information communicated on labeling , packaging, leaflets, data sheets
and in all promotional material. Promotion should not be inconsistent
with
locallya p p r o v e d p r o d u c t i n f o r ma t io n . P r o mo t i o n a l i n f o r ma t i o n s h o
u l d b e c l e a r , l e g ib l e , accurate, balanced, fair, objective and sufficiently
complete to enable the recipient to form his or her own opinion of the
therapeutic value of the pharmaceutical product concerned.

EVIDENCE OF ETHICAL FAILURES

Do cto rs are th e main targets fo r the p ro mo tion al activities
of d rug co mp anies in developing countries. With the power to
prescribe and a high status in society their opinion of a drug very
often determines its sales success. It is therefore not surprisingthat the
majority of marketing spend by industry leaders goes towards direct-todoctor (DTD)
promotion.These mark eting p ractices are co mmon to mo st con
tex ts wh ether in d ev elo pin g countries or developed. However some
issues are of particular concern to developingcountries where health
budgets are smaller and resources have to stretch much further.For
instance in developing countries the lack of government funding for
professionaldevelopment activities for health professionals can ma
ke drug company sponsoredmeetings more valuable. Lack of

resources for surgeries and even personal medical resources can

also make offers from drug companies more inviting.
Gifts
Among the promotional tactics employed by Apex pharmaceutical
company is the practice of giving gifts to doctors. In Nagpur region
these range from small items such as gifts, pens and notebooks to
expensive foreign holidays, televisions, air conditioner sand even
jewellery. However what stands out in the companies context is
the practice of giving lavish personal gifts that have no pretence at
medical value.
BUT DOES THIS GIFT GIVING MATTER?
A sales representative in India reported: Since there is no documentation of these
gifts ,the doctors can switch over from one product to another when perks of one
company exceed that of another. The doctors neglect other aspects of the drug like
its efficacy
,s u i t a b i l i t y f o r t h e p a t i e n t , t h e c o s t e t c . Wi t h s o ma n y mu l t i n a t i o n
a l c o mp a n i e s competing in India, the money spent over these activities is
increasing day by day. these gifts do have an impact on prescribing behavior.
HEALTH PROFESSIONALS BELIEFS ABOUT GIFTS
As a marketing strategy, in cultivating a gift relationship with doctors, drug
companiesare in effect creating a relationship of reciprocity where, upon receiving
a gift, doctorsmay feel obligated to respond. Whether they are conscious of it or
not is not relevant.Existing literature suggests that doctors hold a range of
views about gifts. In generaldoctors readily accept gifts that are smaller
and socially more acceptable. There is asense of unique invulnerability, that
only other doctors are influenced by gifts.

Sales representatives:
There is a clear need for interaction between physician and pharmaceuticals industry for
ensure
The free flow of valid scientific information .when the information s is accurate and complete,
Physicians have the necessary tools to make the right prescribing decision.

According to their career profile, pharmaceutical sales representatives spend most

of t h e i r b u s i n e s s t i m e o n t h e r o a d , t a l k i n g w i t h p h a r m a c i s t s ,
h o s p i t a l p e r s o n n e l , physicians, patient advocacy groups, and even retireme
nt homes, increasing thevisibility of their companys products and the volume of
their sales. One to one visits from sales representatives are proven to be the most
effective way to promote drugs to doctors because they can identify the behaviour
change stage and themain motivators and decision-making styles of the person they
are selling to and
adaptt h e i r a p p r o a c h a c c o r d i n g l y. T h e ma i n i n f l u e n c i n g t e c h n i q u e s
u s e d b y d r u g s a l e s representatives try to focus on doctors tendencies to trust
experts, trust their peers andtrust likable (friendly and/or attractive) people, to
be consistent with their commitments and to act on reciprocal obligations when
given gifts
.Samples:
sample provides many benefits to the patient, allowing them to begin treatment
sooner and helping them find the right medicine.
Another role that pharmaceutical promotion often plays is providing samples to
physicians. Doctors may distribute samples for several reasons for example to get
patient started on the therapy right away, to optimize dosing or choice of drug
before committing to a particular course of treatments and sometimes to help
patient who might not be able to medicines on their own.
a 2008 KRC Research survey found 69% of the physicians believe free drug
samples are either always useful(52%) or often useful (17%) . (95%) physicians
surveyed agreed that samples allow patience to start immediate treatment and
(84%) said that samples provide them useful first-hand experience.
samples provide a clear and direct benefit to patient who have indicated need foer
treatment but lack the resources to obtain the necessary care.

LIMITATIONS of samples:
The process employed to select the sample
was simple random sampling. Simple random sampling refers to that sampling
technique in which each and every unit of the population has an equal and same
opportunity of being on the sample.
In simple random
s a mp l i n g , wh i c h i t e m g e t s s e l e c t e d i s ju s t a ma t t e r o f c h a n c e .
R a n d o m s a mp l i n g technique is generally employed to extract the fruitful
results. This includes the overall design, the sampling procedure, the data
collection methods, the field methods and the analysis procedures the
pharmaceutical industry is one of the major, most successful also rapidly growing
industries worldwide.

DTC (direct to customer)/& doctor/ patient relationship:

Many physicians and patients report that DTC advertising enhances their
communication.
Pharmaceutical advertising increases communication between the physician and
the patient. According to 2004FDA survey of patients, over 90% of patients who
asked about a drug reported that their physicians welcomes the question.
Many doctors find that ,overall , DTC advertising benefits patients and helps
strengthen the patient/physician relationship research published in 2004 in healthy
affairs reported that 70% po surveyed doctors reported thsat ads help educate
patients about available treatments . 67% felt that advertisement help them have
better discussion with their patient.
Apex pharmaceutical company has rarely promoted their products through DTC.

Celebrating birthdays and ceremony:

Remembering and celebrating birthdays and anniversary is another important
promotional strategy of the apex pharmaceutical company in Nagpur region this

helps in maintaining the relations between the doctors and the pharma company.
For this purpose important dates are duly noted by the sales representatives and
managers.

Patient educational & empowerment:

DTC advertising creates awareness of diseases and treatment options, helps get
patients into needed treatment , and empowers patients with information.
The major goal of DTC advertising is to inform consumers about diseases . their
symptoms and available therapies. Research shows that many poatients gain
valuable information from ads.
Reformulation:
A similar strategy to gaining new indications is to produce a new
formulation on
ane x i s t i n g ma r k e t e d d r u g . Th i s l i n e e x t e n s i o n wi l l o f t e n b e a s s o c i
a t e d wi t h a mo r e convenient dosing form or a longer lasting formulation. This strategy is
most commonly used where old technology is an immediate-release formulation
requiring multiple dailydoses is replaced by a new technology once daily
formulation of the drug.

Limitations of the sales promotion:

Although sales promotions is an important strategy for producing quick, short tterm, positive results it is not cure for bad product, poor advertising , or an
inferior sales team. After a consumer uses a coupon for the initial purchase of a
product, the product must then taken over and convince them to become repeat
buyers. In addition, sales promotion activities may bring several negative
consequences, including clutter due to the number of competitive promotions.
New approaches are promptly cloned by competitors , as each marketer tries to be
more creative,more attention getting or more effective in attracting the attention
of the consumers and the trade.
Finally consumers and resellers have learned how to milk the sales promotion
game , consumers may wait to buy certain items knowing that prices will
eventually be reduced, for example, while resellers have become experts at
negotiating deals and manipulating competitors against one another.

Scope of the study:

*The scope of the study is to identify and analyze the consumer behavior
promotional strategies of apex pharmaceutical company and also analyze their
behavior towards the service, price of the product.
*The study will help the organization to increase the sales of their products.
*The scope of the study is limited to Nagpur city.
*The research undertaken by the researcher is useful to dealer and the company in
many waysthe study is useful in finding the market potential and total
consumptions of the medicines of the apex pharmaceutical company.

METHODOLOGY & PROCEDURE OF WORK

A Research Methodology defines the purpose of the research, how it proceeds,

how to measure progress and what constitute success with respect to the objectives
determined for carrying out the research study. The appropriate research
design formulated is detailed below .Exploratory research: this kind of
research has the primary objective of development of insights into the problem. It
studies the main area where the problem lies and also tries to evaluate some
appropriate courses of action. The research methodology for
the present study has been adopted to reflect these realties and help reach the logic
alconclusion in an objective and scientific manner. The present study contemplated
anexploratory research
Research Design
The research design is the basic framework, which provides guidelines for the rest
of the research process. The present research can be said to be exploratory. The
researchd e s i g n d e t e r mi n e s t h e d i r e c t i o n o f t h e s t u d y t h r o u g h o u t
a n d t h e p r o c e d u r e s t o b e followed. It determines the data collection method,
sampling method, the fieldwork andso on.
Nature of Data
Primary Data:
Primary data is basically fresh data collected directly fro m thetarget
respondents; it could be collected through QuestionnaireSurveys, Interviews, Focus
Group Discussions Etc.
Secondary Data:
Secondary data that is already available and published. It
could be internal and external source of data. Internal source: whicho r i g i n a t e s f
r o m t h e s p e c i f i c f i e l d o r a r e a wh e r e r e s e a r c h i s carried out e.g. publish
broachers, official reports etc.
External Source:
This originates outside the field of study like books, periodicals, journals,
newspapers and the Internet.

data collection:
primary data :
primary data was collected by self administered questionnaire in the presence of
interviewer.
Apex pharmaceutical company, medical practioneers ,
And medical representatives of apex in Nagpur region.
SECONDARYDATA:
Secondary data was collected through
*Articles,
*Reports,
*Journals,
*Magazines,
* Newspapers and
*Internet
Sampling Technique
Random sampling technique is generally employed to extract the fruitful results.
This includes the overall design, the sampling procedure, the data collection
methods, thefield methods and the analysis procedures
Sampling Procedure Actually Employed:
The process employed to select the sample
was simple random sampling. Simple random sampling refers to that sampling
technique in which each and every unit of the population has an equal and same
opportunity of being on the sample. In simple random sampling, which item gets
selected is just a matter of chance.
Analytical Tools:

Simple statistical tools have been used in the present study to analyze and interpret
the data collected from the field. The study has used percentiles method and the
data are presented in the form of tables and diagrams.

FINDINGS, INFERENCES & RECOMMENDATIONS

India's pharmaceutical market currently stands ninth in the
w o r l d m a r k e t f o r pharmaceuticals with a 1.5% share. The market was
valued at more than $3 billion lastyear (1998). At its annual growth rate of
15% (almost double the world's 6% annualgrowth rate), this market is
expected to reach $6 billion by 2001 and should more thandouble to $13.3
billion in 2006.
Apex was first launched 20 years ago,the sales turnover of the apex in
year 2012-2013 was 1crore
In year 2013-2014 it grew up to 1.5 crores.
Now in 2014-2015 according to the collected data it has already reached
to 1.5 crores and is still going up.
Certain formulas are use to determine growth ,orders and achievements
of the company:

*Growth fomula= (this year sale/current sales) (last

year sales)
Devided by last year sales *100.

*Oderr formula=
Last months sale *2-closing= order.
* achievement formula=sales/target*100.

Apex pharmaceutical company has doesnt promote their

products through mass media and they dont launch OTC
(over the counter)products.
I n d i a n p h a r ma c e u t i c a l i n d u s t r y i s climbing up the value chain from
bringing a pure reverse engineering industry focus ondomestic market. The
industry is moving towards basic research driven expert orientedglobal presence
and providing wide range of value added quality product and services.The
pharmacy formulation market varies radically from the consumer market in
manyways. The rules governing the pharmacy market are different except
a few over-the-counter (OTC) drugs. Pharma companies are not allowed
to publicly market their products. Marketing has to be restricted to promotional
campaigns, advertisement onlyin medicinal magazines, journals etc., through
medical representatives. It is not a meanof mass communication, which is
usually applicable to consumer products. . Indian companies dominate this
class of drugs with a market share of 71%. Multinational companies are reluctant
to enter these markets as most of them are under government price
controls.Pharmaceutical Industry is one of the most intense knowledge driven
industry, which is c o n t i n u o u s l y i n a s t a t e o f d yn a mi c t r a n s i t i o n .

The aim of this project is to study the strengths and weaknesses

of the apex pharmaceutical company in Nagpur region. It help[s
to reveal the future of the company in Nagpur. In the marketing
research I found that the demand of apex products are going to
increase day by day. The company should participate in
advertising in order to acquire as much profit as possible, thus
competing successfully with other operators

The final survey incremented my knowledge how to market

ones product and how to deal wth various types of people, thus I
really enjoyed this project and learnt a lot. Development of good
relations with the dealers is must.

Company should also make efforts to attract more and more

customers through various schemes etc.

After conducting this survey on apex, the researchers come to

the conclusion that, company has huge potential in Nagpur

region & it can capture major share by providing excellent after

sales service. There are some other conclusions:
The market reach of the company is very good.
The growth of the product is also appraisable.
Th eservice providing network of this company is very
strong.
Bibliograghy:
Books
Robet c. blattberg and Scott A. Neslin, sales
promotion concepts and methods, and
strategies,(Prentice Hall, 1990).
Philip kotler, marketing management prentice Hall of
india Pvt. Ltd. New delhi.
C.R Kothari research methodology, Vishwa
publication, new Delhi.

JOURNALS:
Brochures of the company.
Magazines.
Newspapers.
Websites referred:
http://www.apex pharmaceutical company.com

 http://www.businessdictionary.com
http://www.answers.com
http://drypen.in/sales-promotion/defination-ofpromotions.html