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					Summer Internship
Project Report
Nielsen


Shipra Saxena
6/3/2010
  STUDYING THE INDIAN COUGH SYRUP
MARKET AND SUGGESTING STRATEGIES TO
    PARAS PHARMACEUTICALS FOR
           IMPROVEMENT




SUBMITTED TO:         SUBMITTED BY:

INDUSTRY GUIDE        SHIPRA SAXENA

VINAY JOSHI           PGDM (MARKETING)

MANAGER – GLOBAL      BIRLA INSTITUTE OF
OPERATIONS            MANAGEMENT TECHNOLOGY

THE NIELSEN COMPANY   GREATER NOIDA, UTTAR
                      PRADESH
                          Industry Guide Declaration



This is to certify that Ms. Shipra Saxena a student of Birla Institute of Management Technology

has worked on a summer project titled “Studying the Indian Cough Syrup Market and suggesting

strategies to Paras Pharmaceuticals for improvement” at THE NIELSEN COMPANY from 9th

April 2010 to 4th June 2010 and this project includes the work which is original to the best of my

knowledge.




Date:


Signature:


Seal:



Industry Guide: Mr. Vinay Joshi

                   (Manager – Global Operations, Nielsen)
                            ACKNOWLEDGEMENT
It gives me immense gratification to place on records my profound gratitude and sincere
appreciation to each and every one who have helped me in this endeavor.

I would like to express my sincere thanks to the HR Executive Ms. Shambhavi Upadhyay for
accepting me as a Summer Trainee in the organization. I would also like to express my sincere
thanks to my industry guide Mr. Vinay Joshi for his continuous cooperation, support,
suggestion, encouragement and providing input and suggestion that I needed to complete my
project successfully.

I also would also like to express my gratitude towards my faculty guide Mr. A.N. Bose for his
valuable guidance and support during the period of my summer training. He has corrected and
guided me through every step in the project report. He also inculcated in me a systematic
approach and professionalism

I would also like to thank all those people at ‘THE NIELSEN COMPANY’ who though being
total strangers to me lifted my spirit with their cheerful smiles and gave me the courage &
inspiration to work zealously on the project assigned to me and do justice to it.

Lastly, I wish to express my gratitude to my colleagues and friends for their constant
encouragement and support.

At last but not the least I would like to thank God for giving me patience and power for the
successful completion of the project.

SHIPRA SAXENA

PGDM (OPERATIONS)

BIMTECH
                       INDEX



Contents                                     Page No.

Introduction …………………………………………………. 6 – 16

The Indian Cough Syrup Market …………………………….. 17 – 24

Research Proposal …………………………………………… 25 – 27

Research Methodology ……………………………………… 28 – 38

Analysis & Results ………………………………………….. 39 – 54

Conclusions ………………………………………………….              55

Recommendations ……………………………………………             56
                                    INTRODUCTION


NIELSEN’S HISTORY




The Nielsen Company (erstwhile ACNielsen) was established in the United States in 1923 by
Arthur C. Nielsen, Sr., one of the founders of the modern marketing research industry. Among
many innovations in consumer-focused marketing and media research, Mr. Nielsen was
responsible for creating a unique retail-measurement technique that gave clients the first reliable,
objective information about competitive performance and the impact of their marketing and sales
programs on revenues and profits. Nielsen information gave practical meaning to the concept of
market share and made it one of the critical measures of corporate performance. Mr. Nielsen also
founded the business known today as Nielsen Media Research, the global leader in television
audience measurement and other media research services.


ACNielsen opened its first international office in the UK in 1939 and, after World War II,
progressively expanded its operations in Western Europe, Australia and Japan. The company
increased its presence in Asia Pacific in 1994 by acquiring Survey Research Group, and in the
Middle East and Africa in the late 1990s through the acquisition of AMER World Research.



In 2001, ACNielsen became part of VNU, a world leader in marketing information, media
measurement and information and business media.

In 2003, VNU announced a new organizational structure for VNU Marketing Information (MI),
its largest business group, to address evolving client needs and to create an enhanced platform
for accelerated growth.

In 2005, VNU attempted to expand into healthcare and pharmaceutical information by acquiring
IMS Health. Although the merger was terminated in the face of shareholder opposition, the two
companies agreed to work together to develop new capabilities.
In 2006, VNU was acquired and taken private by a consortium of six private equity firms.

In 2007, VNU changed its name to The Nielsen Company. This new identity emphasizes its best
known brand name and underscores its commitment to create an integrated, streamlined global
organization.




WHAT THEY DO




Nielsen offers an integrated suite of market information gathered from a wide range of sources,
advanced information management tools, sophisticated analytical systems and methodologies,
and dedicated professional client service to help their clients find the best paths to growth.

Clients work with their services to:

      Measure their market performance.
      Analyse market dynamics.
      Diagnose and solve marketing and sales problems, and
      Identify and capture growth opportunities.

Their people work closely with clients to help them choose the right set of information and
services and use it to make the best possible decisions.



Market Measurement
Their major market-measurement services provide comprehensive coverage of:

      Sales to consumers of fast-moving consumer packaged goods, gathered at the point of
       sale in retail stores of all types and sizes. These retail measurement services provide
       clients with essential facts on how their products are performing compared with their
       competitors, and on trends and changes in market conditions and sales results. They also
       provide critical information on the use of promotional activities at the retail level, such as
       special displays or pricing, and on distribution and stock conditions in retail stores.
      Purchases by consumers of packaged goods and other products, gathered through
       participating panels of consumer households and through customized studies. These
       consumer panel and consumer research services provide a foundation for understanding
       and analyzing consumers’ motivations, attitudes, behaviour, shopping patterns and
       demographic characteristics.



Analytical Tools and Services
They offer a wide range of software and professional services that enable clients to receive,
select and evaluate their market-measurement information, integrate it with their own data and
third-party information, and apply it to specific business issues and situations.


Clients can view and analyse information from many perspectives, such as by specific product
categories, by geographic area or by retail channel. They also organize and present information
to suit the specific needs of many individuals in manufacturing, service and retail organizations,
including general managers, marketing professionals, sales professionals, purchases,
merchandisers and category managers.


Diagnostic Services
Their consumer panel and consumer research services provide clients with many opportunities
and techniques to examine trends and understand the impact of the market forces that influence
consumers’ purchasing decisions. Consumer panels link purchasing information to demographics
and provide a controlled environment for examining motivational factors.


Their analytical and modelling services provide clients with a range of options to evaluate and
understand why marketing campaigns succeed or fail, and to address specific future marketing
opportunities and issues, such as promotion optimisation, pricing, consumer targeting and
marketing mix optimisation.
In many markets, they offer a suite of consumer-focused consumer research techniques and
services that address clients’ unique and specific marketing and sales issues.




Opportunity Identification
While their major clients all share a common focus on consumers, each individual client has its
own distinct set of business characteristics and marketing and sales concerns. Their information
and services are designed to help each client identify and act upon unique growth opportunities.


Using a structured and disciplined approach to building and managing long-term relationships,
their people work in close partnership with their clients to understand their strategies and
business objectives, design the right suite of Nielsen services that fits their needs, agree on clear
and measurable business objectives and to measure the results and clients’ return on their
investment.




THE NIELSEN CODE

Throughout its history, Nielsen has sought to provide its clients with objective and reliable
marketing information and consumer insight that add value to their businesses. Their goal is to
help clients make the best possible marketing decisions to build revenue and profits.

Arthur C. Nielsen, Sr.

Chairman, A. C. Nielsen Company, 1931




In 1931, Arthur C. Nielsen, Sr., wrote the Nielsen Code, defining the principles that would guide
Nielsen to global leadership in marketing research. The Code remains relevant today and
continues to guide their business.
Impartiality

Be influenced by nothing but your clients' interests. Tell them the truth.

Thoroughness

Accept business only at a price permitting thoroughness. Then do a thorough job, regardless of
cost to us.

Accuracy

Watch every detail that affects the accuracy of your work.

Integrity

Keep the problems of clients and prospects confidential. Divulge information only with their
consent.

Economy

Employ every economy consistent with thoroughness, accuracy and reliability.

Price

Quote prices that will yield a fair profit. Never change your price unless warranted by a change
in specifications.

Delivery

Give your clients the earliest delivery consistent with quality - whatever the inconvenience to us.

Service

Leave no stone unturned to help your clients realise maximum profits from their investment.
RETAIL MEASUREMENT SERVICES



Understands product performance and market dynamics.

To make good marketing decisions one must have accurate, timely information about what’s
selling at the retail level and how in-store conditions such as pricing, merchandising and
promotions are influencing sales.

Nielsen Retail Measurement Services are the industry standard for quality information on
product movement, market share, distribution, promotional effectiveness, pricing and other
market-sensitive information in more than 80 countries across six continents, providing their
client base with an information network and global reach second to none.

Using in-store scanning of product codes and store visits by professional auditors; Nielsen offers
a complete portfolio of sample and census information across the food, household, health and
beauty, durables, confectionery and beverage products industries.

Whether long-term strategic planning or tactical decision-making, Nielsen measures and tracks
the information you need to win in your market place.

Your global, comprehensive retail coverage solution.

Nielsen Retail Measurement Services integrate information from a variety of sources to provide
accurate, decision-ready reporting and coverage of a broad array of retail channels, including:

      Supermarkets
      Hypermarkets
      Drug stores & pharmacies
      Mass merchandisers
      Convenience stores
      Small independent grocers
      Kiosks
      Open Markets
      Military commissaries
      Liquor stores
      Dollar stores
      Pet stores
      Warehouse-clubs

Nielsen’s comprehensive coverage permits management to examine key business trends by
product, category, store, chain, or market for one brand or an entire competitive set. From
viewing an executive summary to drilling down through a robust database to the desired level of
detail, executives can make strategic decisions based on accurate, timely information.

Full client service support

All Nielsen Retail Measurement Information is fully analyzed, interpreted and presented by
experienced account managers with knowledge of a wide range of grocery markets and industry
trends. From basic market analysis to complex business issues, Nielsen Executives help fully
exploit information investment to gain maximum advantage.
RETAIL MEASUREMENT PRODUCTS AND SOLUTIONS



Retail Index

Manufacturers need detailed insights into market dynamics in order to harness category
opportunities and plan for the future. This calls for information about what is happening and how
it is happening in over 70 lakh retail distribution points in India.

Whether for long-term strategic planning or tactical decision-making, ACNielsen measures and
tracks sales volume, distribution, selling price, promotions covering an organization’s own
brands as well as the competitive set. From category-level all outlet sales volume to single item
performance in one market, Retail Index provides manufacturers and retailers the complete view
across all channels of trade.

Their information provides manufacturers and retailers with the ability to:

Improve Category Understanding: Where are the opportunities for category growth?

Track Retail Performance: What is my market share and trends?

Manage Distribution: Where are the distribution gaps and opportunities? Are out-of-stocks an
issue?

Analyze Promotion Efficiency and Effectiveness: Which product promotions have the most
impact on the company / brand growth?

Evaluate New Launches: How much has the overall market share grown as a result of the new
launch? What is the post-launch distribution build up in successful cases?

                                              Key Benefit
                                               Marketers can assess overall product performance,
                                              distribution efficiency, promotion effectiveness, and
price sensitivity through measurement and integration of the Retail Index measures.

Methodology
Retail Index data is based on measurement of consumer sales from a sample of outlets designed
to reflect the channel being measured. The same fixed sample is audited on a monthly basis with
field auditors physically counting retail stock holdings, and then recording store purchases from
any source. The ongoing measurement of these variables produces consumer sales as well as
                                      vital in-store information.

                                      Due to the constantly changing retail environment,
                                      ACNielsen updates its defined universe and sample
                                      requirements on an on going basis. This is done to ensure
                                      the sample is representative of the channel being measured.

                                      Information on off take and distribution across 87
                                      categories is available for Urban and Rural regions across
                                      States in India. The same is also available for retail
                                      channels such as – Grocery Store, General Store, Chemists,
                                      Food Store, Pan Plus etc.

                                      Micro level sales and distribution information are now
                                      available at State by channel types and by town classes
(Metro, Class I, Other and Rural). This make it actionable like never before for marketers.

Analysis of all data is available via ACNielsen Advisor. This flexible software allows easy yet
powerful interrogation of the rich Retail Index databases.
Modern Trade Service

Micro-level data in the Modern Trade channel on sales related parameters, on a month-to-month
basis, that enables Marketers to employ tactics that are not only relevant but differentiated
enough to be effective in a unique environment.

The rapid mushrooming of Modern Stores in Urban India earmarks the increasing retail vitality
in India. Modern Stores are fast becoming the consumers’ preferred shopping destination as they
offer an increased product choice – all under one roof, an enhanced shopping convenience, better
value for money as well as an improved shopping ambience! Little wonder then that the product
demand is progressively being diverted from Traditional Channels to Modern Stores. The Indian
FMCG companies are increasingly tapping this emergent sales potential by placing their
products in the upcoming channel: the Modern Stores.

The extensive display of products, an increased level of merchandising, the changing nature of
promotions and the continuous bevy of newly launched products, stimulate a continuous shift in
the consumer’s product preferences – thus affecting unanticipated swings in the brands’ Market
Shares.

Given the unique character of Modern Stores, Marketers need to employ a differentiated strategy
herein – whether it is for determining the product mix, price mix, promotions or in-store
activities!

Nielsen Modern Trade Service is a crucial determinant of a Marketer’s success as it measures
and monitors key category trends for a brand, and the corresponding competitive set, at a city
level – making information actionable. Moreover, it gives a point-by-point comparison with the
Traditional Channels enabling the formation of a differentiated strategy.

Nielsen Modern Trade Service helps the Marketer develop suitable micro-strategies for this
channel by:

         Determining Growth Opportunities – identifying high growth category segments and
          markets
      Benchmarking Growth Potential – by measuring performance of own brands with the
       competitive set
      Understanding Consumer Preferences – by studying the winning Product Mix (Price/
       Packs/ Promotions)

Nielsen Modern Trade Service is vital to understanding and expanding business opportunities
in the Modern Trade channel. It can assist businesses to plan, strengthen and optimize their
capacities to compete in this constantly evolving marketplace. Nielsen Modern Trade Service is a
one-stop solution that helps marketers create strategies for their sustainable business
development!

Nielsen Modern Trade Service offers micro level data in the Modern Trade Channel, on sales
related parameters on a month on month basis.

What it is?

      City level estimates of Category and Brand sales.
      Insights into the Traditional trade and Modern trade in each city.
      Monthly reporting reports delivered within 45 days of the month end.

What it is not?

      No individual chain level reporting.
      No information on POP, Display, Trade Schemes, Dealer margins, In-store Promotions.
                   THE INDIAN COUGH SYRUP MARKET


‘OTC Drugs’ means drugs legally allowed to be sold ‘Over The Counter’, i.e. without the
prescription of a Registered Medical Practitioner. In India, though the phrase has no legal
recognition, all the drugs that are not included in the list of ‘prescription drugs’ are considered as
non-prescription drugs (or OTC drugs). Prescription Drugs are those that fall under two
schedules of the Drug and Cosmetics Rules, 1945: Schedule H and Schedule X. Drugs falling
under Schedule G require the following mandatory text on the label: “Caution: It is dangerous to
take this preparation except under medical supervision” and hence are not advertised to the
public voluntarily by the industry.

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).




Ayurvedic Medicines

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 non-chemists. There is
no price control on ‘Ayurvedic medicines’.

Some of the top OTC brands in India such as Vicks VapoRub, Amrutanjan Balm, 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.

Considering the above framework, key categories with OTC potential in India would be:

• Vitamins and minerals

• Cough and cold
• Gastrointestinals

• Analgesics /Dermatological




Marketing authorization

The major source for pharmaceutical regulation is the Drugs and Cosmetics Act (DCA) and its
subordinate legislation, the Drugs and Cosmetics Rules (DCR). This legislation applies to the
whole of India and to all sorts of medicines (e.g. allopathic, ayurvedic, homeopathic, etc.)
whether imported or made in India. The legislation is enforced by the Central Government
(Ministry of Health & Family Affairs) in New Delhi, which is responsible for its overall
supervision. The office of the Drugs Controller General of India (DCGI) has prime responsibility
for approving all new molecules and unique new formulations. However, power to provide
manufacturing and selling licenses which are the two main registrations required to manufacture
and sell a drug – belongs to each individual State government through its Food and Drug
Administration (FDA), who also carry out enforcement of DCA and DCR. Matters of new
molecule approval and standards, clinical trials, introduction of a new unique formulation and
import licenses are handled by the DCGI.

Note: The OTC Committee of the Organization of Pharmaceutical Producers of India (OPPI) is
working towards the promotion of responsible self-medication with a view to growing the OTC
sector. It is aiming to get regulatory support for issues such as the accessibility of household
OTC remedies and increasing the awareness of the importance of responsible self-medication
with the general public and the Government.




Advertising to the general public

The Drug & Magic Remedies (Objectionable Advertisement) Act mentions a list of ailments for
which no advertising is permitted. 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. The DCGI’s office –in collaboration
with OPPI -has released a Voluntary Code on OTC Advertising, which is being followed by all
OPPI member companies.

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.

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 Ayurvedic-registered)

• Medicated skin treatment

• Analgesic/cold tablets

• Antiseptic creams/liquids

• Glucose powders

• Cough liquids

• Throat lozenges

• Medicated dressing (band-aids)

• Baby gripe water.
Distribution

There is at present no system of national chains of supermarkets or drugstores / pharmacies, and
small independent shops dominate retailing. However, a few chains such as Apollo Pharmacy,
Medicine Shoppe, and Good Health etc. are entering the market, which will make inroads all
over India in the near future. However, very few percentage of sales of FMCG manufacturers go
through organized retailers.




Pricing

Price controls are carried out on certain drugs by virtue of the Drugs (Prices Control) Order 1995
(DPCO), under the Essential Commodities Act (ECA). The DPCO is the responsibility of the
Ministry of Chemicals and Fertilisers and is supervised by the National Pharmaceutical Pricing
Authority (NPPA). It outlines the classification of price-controlled products and methods of price
fixation and revision. The NPPA monitors the prices by fixing and revising prices of drugs. Only
a few OTC actives, e.g. acetylsalicylic acid and ephedrine & its salts, fall under current DPCO
price control.




Market data on OTC medicines

India is currently ranked 11th in the global OTC market in size, with an estimate that it will
reach 9th position within five years.(Source :Nicholas Hall & Company,India,DB6 2006)

Currently the Indian OTC market (i.e. non-prescription advertised medicines) is estimated to
represent approximately Rs.104 Billion growing at about 8-9% (Source :ORG-IMS)




Prescription to OTC Switch

Though not yet a pill-popping country, 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. In fact, Indian consumers, today, are confident about
sharing healthcare responsibility, especially in case of common ailments. Considering the
changing mindset and likely changes in regulatory framework, such as, OTC guidelines and open
distribution, it is reasonable to estimate that within the next ten years, India will become a major
contributor to the world of OTC market.

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. An analytical interpretation of various data placed the focus
on vitamins, cough & cold, antacids, antipyretics and NSAIDs as opportunity areas for switch in
India.

However, the big issue in OTC marketing is not the switch climate as currently even drugs,
which do not require a prescription, are promoted via the doctor because

a) Marketing through medical representatives is less expensive than mass media advertised
marketing. This makes proprietary medicines higher priced than equivalent ethically promoted
drugs.

b) Practically all prescription drugs can be purchased without prescription.

c) Doctor influence is strong in patient purchase behaviour.

d) Distribution of OTC allopathic medicines is limited to drug licensed stores (mainly
pharmacies).




According to a study, there is a clear willingness among both doctors and consumers to accept
more OTC medicines.

When asked for opinions on which categories were suitable for OTC, both groups were receptive
to more OTC treatments for cough & cold, muscle pain, cuts & burns, diarrhea, constipation and
skin problems.
Striking a good balance between continued prescription heritage and high consumer familiarity is
one of the key factors in a successful Rx-to-OTC switch, as proven by brands such as Benadryl.

Reinforcing strong retail influence and continuous consumer loyalty represents another
successful OTC model. Marketers should consider the value of each model on the basis of
category of product switch, today’s retail influence and the extent of consumer familiarity with
the brand due to present prescription status.

Among various influencers, television followed by retail was the strongest. Innovative integrated
media strategy would be one of the major reasons in the early success of OTC switches.




In a study, 117 families, having a total population of 558 were studied regarding drug
consumption pattern. It was found that the average number. of episodes per person was 0.99 of
which drugs were consumed for 72% of episodes. Significant difference was observed in
consumption of drugs between males and females. Allopathic medicines were consumed for
93.3% of the episodes and the major source (53.8%) of medical care was from private
practitioners. It was seen that the number of drugs consumed per episode of sickness rose as the
per capita income increased. Vitamins and Minerals (22.3%) were the main group of drugs
consumed. Drugs acting on the alimentary system (17.5%), Respiratory System (14.7%),
Antimicrobials (14.6%) and Analgesics (10.8%) contributed to 80% of drug intake.




When diseases like diabetes and hypertension are becoming our lifestyle, cough and cold still
bothers us the most.


Cough and cold formulations sold the maximum among the 10 top selling brands in the domestic
market, with total sales touching Rs 270 crore, compared to sales of only one anti-diabetes
(insulin) drug reaching Rs 90 crore, in 2007.


The cough and cold segment led by Phensedyl Cough Linctus and Corex cough syrup was the
largest selling category in 2006, followed by pain-killer drug, Voveran. Antibiotic drug Taxim
and Vitamin-B complex capsules Becosule were fourth and fifth largest brands in terms of
volumes.


Cough and cold segment is the largest segment largely because most of the brands are available
over the counter without need to have a prescription, industry experts say.


"Cough, cold, flu formulations and vitamins etc have a large share of the pharma market in India
mainly because of self-medication and non-dependence on doctors. Internationally too, allergies
are a massive segment", Cipla joint MD Amar Lulla said.

With fast changing consumer beliefs, values and aspirations the marketing executives perhaps
have a difficult task on their hands.

Professionals have gone to the extent of penetrating the consumer mind with technologies like
'Neuro Marketing' to know what would really click with their identified consumers. The change
is not only rapid but it is also of high magnitude affecting the multiple segments including
health.

However, thanks to this high involvement of consumers, Fast Moving Health Goods (FMHG) is
now a burgeoning market in India. More and more businesses from pharma, OTC, nutraceuticals
and dietary supplements, functional foods and Fast Moving Consumer Goods (FMCG) are
entering into this high growth segment. Indian market is largely a prescription oriented market.
While Rx to OTC switches are implemented more frequently by the pharma majors, many other
pharmaceutical and nutraceutical companies who were trying to promote their products through
the doctor are now adopting a different route, the direct route to the identified end user.

FMHG market represents products for health that are directly promoted to end users. For eg.
Saffola Gold a FMCG product is more like a FMHG product the way it is promoted and used;
health drinks (like Complan and Horlicks) are categorically FMHG products along with other
health beverages such as fruit, energy and protein drinks. Equal, Sugarfree, Natura and other low
calorie sweeteners, Benadryl and Glycodin the cough syrups, Tums and Gelusil the antacids,
Vicks, Coldarin, Anacin, Listerine, Waterbury's Compound, Woodward's gripe water, and Iodex
are some of the other FMHG products. Rejuvenators, weight loss products, dietary supplements,
honey, joint pain relievers and even pregnancy test kits and emergency contraceptive pills have
found their way in this segment.
                              RESEARCH PROPOSAL



OBJECTIVE:

To study the Indian Cough Syrup Market, analyze the position of the product in the market as
compared to its competitors and to probe the reasons for its increase or decrease in the market
share.




Background

Paras Pharmaceuticals Limited is one of the India’s leading FMCG Company with household
brands in the Healthcare & Personal care space. They have over four decades of experience and a
series of successful brand launches.

The innovative nature of their products have gained wide acceptance beyond national
boundaries. Paras is known for developing new categories and is widely respected for its
category creation ability. As a result, they have one super brand in pain management and they are
market leaders in at least two other healthcare categories.

As a corporate they believe in providing innovative solutions to everyday health & personal care
problems and have an entrepreneurial culture to build categories and brands.

Paras understand the needs and requirements of an individual regarding health care. Their
experts are more than happy to assist and guide you in finding the right route to taking care of
your health. They have the following Healthcare Brands:

Moov

Krack

ItchGuard
RingGuard

D’Cold

Stopache

Moov Neck & Shoulder


D’Cold - “Treats Cold With Care”

D’Cold takes great pride in providing its consumers with effective cold and cough remedy at an
affordable price. In a market where competition is rampant, in a short span of 10 years D'Cold
has become synonymous with cold and cough relief. D'Cold understands the dynamics of its
customer base and it is that understanding that helped it carve a niche for itself.

D'Cold is available in three variants –

        New D’Cold Total Tablets
        D’Cold Natural Ayurvedic Cough Syrup
        D'Cold Cough Syrup

D'Cold Cough Syrup, an alcohol free non-drowsy formula, is targeted at children and adults.

D’Cold Natural Cough Syrup is a powerful and unique combination of 11 natural ingredients that
give instant relief from cough, cold & sore throat.

It is an ayurvedic syrup, fortified with Active Haldi & other 10 natural ingredients is targeted at
children and adults




Aim of the Study

To study the Indian cough syrup market and suggest strategies to Paras Pharmaceuticals for
improvement.
Research Objective

To study the Indian Cough Syrup Market, analyze the position of the product in the market as
compared to its competitors and to probe the reasons for its increase or decrease in the market
share.




Scope of the Study

The study was conducted from April, 2005 to April, 2010. The scope of this research is limited
to the geographical region of All India (462 towns, 1427 villages) with 100% coverage of all 0.5
million+ population. This research is limited to all stores handling minimum two FMCG (fast
moving consumer goods) product categories.




Limitations of the Study

        Many shopkeepers could not give the required time.
        Only Valid for All India (462 towns, 1427 villages).
        Non readiness of some shopkeepers in providing data.
        If data could not be collected due to some natural calamity etc., then the data for last
         month was taken for that particular month.
        Withdrawal or cancellation of the shopkeepers from the agreement, at the last moment.
                              RESEARCH METHODOLOGY



 RESEARCH DESIGN:-



Type of research technique

 A Research design is a framework or blueprint for conducting a research project which depends
 upon the type of research studies that are made. Here, this research study is a Quantitative
 Research.




 Sampling design

 Two-staged Stratified Random Sampling.




       DCV – Dealer Classification Value



 Place of study

 All India (462 towns, 1427 villages) with 100% coverage of all 0.5 million+ population.
Population

All stores handling minimum two FMCG (fast moving consumer goods) product categories.




Fieldwork and data collection methods

The data was collected through the Retail Store Audit, which is monthly monitoring of a panel
of retail outlets. The data was collected on Purchases, Stocks and Sales for product categories of
interest. Hence primary data collection technique has been used for the research.

Secondary data was used in the form of Census Reports, provided by the Government of India,
for population details.

The stores and the products available were all collected through primary data collection. The
framework of Retail Store Audit is as follows.
Retail Universe




Retail Universe covers all stores handling minimum two FMCG product categories.

The Scope of the Retail Universe is All India (462 towns, 1427 villages) with 100% coverage of
all 0.5 million+ population.

A complete enumeration in 1/3rd towns is done every year and in villages it is done every third
year. Population is used as a surrogate variable to derive the overall store universe. There is a
high correlation between the stores and the population.
Sample

                                         Retail Universe
                                         Definition, Measurement

         Client                           Scope, Sizing, Update                 Sample
       Management                                                              Size, Precision

          Account Plans,                                                    Process, Maintenance

           Satisfaction
   Value Added                               Retail Audit
                                                                                 Data Collection
                                                                                 Methodology, Field Force,
        Services                             Framework
                                                                                 Technology Enablement

   Modeling & Analytics,
    Measures, Verticals

                                                                              Estimation
             Coverage
       Elements, Industry Coverage,                                           Procedures
       Comparison with Financials                                      Projections, Platform, Standards
                                               Reporting
                                      Platform, Facts, Levels, Efficiency




A Two Stage – Stratified Random Sampling Process has been followed. It takes into account the
Heterogeneity/variation.




        DCV – Dealer Classification Value
Sample (Urban/Rural Settlements)

Urban/Rural Settlements cover all places with a municipality, corporation, cantonment board or
notified town area committee etc.

OR

All Other Places With

        A minimum population of 5000
        At least 75% of the male working population engaged in non-agricultural pursuits and
        A density of population of at least 400 persons per square kilometer.



Heterogeneity in Universe
The towns are divided into different classes according to population.

Town Class Population

Metro           > 10,00,000

Class I         > 5,00,000

Class IA        1,00,000 to 5,00,000

Class II        50,000 to 1,00,000

Class III       20,000 to 50,000

Class IV        10,000 to 20,000

Rural           < 10,000




Sampling (Stage One)
There is 100 percent coverage for FLP (Five Lakh Plus) towns. Sampling is done at lower town
class and village class level. Town sampling is done at State * Town class level. At least 60 % of
the districts within each state are covered.




Sampling (Stage Two)




In the second stage of sampling, we multiply Outlet type with the Dealer Class Value for each
town class.

Outlet Types are as follows:

    Grocers
    Chemists
    Food Stores
    Cosmetic Stores
    General Stores
    Pan Plus
    Modern Stores
# Based on product stocking
DCV on the basis of:

Outlet Turnover        (52%)

Product Width          (28%)

No. of Salesperson     (11%)

Cooling Equipment      (09%)

Data Collection

The collection of data is done through devices called, Hand Held Terminals (HHTs). Monthly
collection of stocks and purchases is done through HHTs. There is a structured data collection
format to be followed as given:

      Date of Audit
      Number of days shop was closed
      Store Status
            Re Audit
            Non Audit
            Count as New Store
            Cancelled Store
            Initial Audit
Re Audit is when, that particular store has been audited before, and we are auditing it again.

Non Audit is when, the particular shop is found to be closed for 15 days continuously, and thus
the audit could not be done or completed fully.

Count as a New Store is when, the particular store was being audited continuously for quite
sometime, but due to some reason, the shop was closed for sometime, for example, may be due
to some natural calamity, in which the store was destroyed and closed. Thus when the audit in
that particular store starts again we put it under Count as a New Store.

Cancelled Store is when, the particular shopkeeper or store owner has withdrawn from the
agreement of auditing.
Initial Audit is when, audit is being done in the particular shop for the very first time. The first
time, only stocks are taken into consideration and not the transactions, since they have no proper
records of their purchases, thus they are provided with purchase books, to store all their purchase
details.




Audit Methodology

Each and every Stock Keeping Unit (SKU), in the store, is counted physically. In case of any
new introductions, pictures are clicked of the new introduction, including barcode,
manufacturing date, etc. with the HHTs. the pictures clicked are called pack shots, and these
pack shots help validate and confirm the entry as well as the availability of the product in the
market. There are a total of 112 FMCG categories, across 16 Super groups and 3 Meta Groups
that are of our interest.

The three Meta Groups are, Food Products, Non-Food Products and OTC Products.

Super Groups have under them various categories, all the 112 FMCG categories have been
divided in these 16 Super Groups. Examples of Super Groups are, Fabric Care, Baby Care,
Contraceptives, etc. for example, Fabric Care, comprises of various categories like, Washing
Powders, Detergents/Cakes, Blues, Pre/Post Wash, etc.

Purchases data is taken from Purchase Invoices, Purchase Record Books and Kuccha Bills.

The Sale Equation followed or used for the data collection is:

Off take = Opening stock + Purchase-Closing Stock

Audit follows the WYSWYW Rule, which says that, ‘What You See is What You Write.’ It
includes the following details of the SKU:

          Company, Brand, Pack size, Variant, Other Information
          Volume
          Price (MRP, Price-off, Net Price)
          Manufacturing Month and Year
Each SKU relates to a unique item code, which is to be entered in the HHT. Also if the SKU has
a barcode, then the barcode has to be scanned and saved with the help of the HHT.




Item Master Updation

All the collected data is transferred into the Item master Database (IMDB). Before entering the
data in the IMDB, it is validated and checked. For example, for all new introductions, the pack
shots and any information from the respective company about the new launch are referred to. For
New SKUs the criteria is, Client Letter or Supporting Document from the Field. Also, all banded
packs, i.e. all packs with offers, like cash discounts, cash in kind (something free) are entered
separately. The pack code and bar code are also checked, since often more than one people enter
the details of the same product. Also the manufacturing month and year are checked, products
with no manufacturing month and year are not audited. Merging two SKUs is primarily based on
clients’ request, for example Rin Supreme and New Rin Supreme. After the checks are
completed, the data is entered into the master database according to various characteristics in the
following format.
Data Analysis Techniques

Normal Statistical techniques were used to analyze the data in Ms Excel.



Qualification of the researcher
The qualification of the researcher is as follows -

    Shipra Saxena (Pursuing PGDM in Marketing from Birla Institute of Management
       Technology) and awarded with the degree of BBA (Bachelors in Business
       Administration) from the University of Lucknow.
                            ANALYSIS AND RESULTS


Cough and cold segment is the largest segment largely because most of the brands are available
over the counter without need to have a prescription

Company “V” is aware about the decline in the product share & hence has launched D Cold
Naturals to subside the competition as a product extension.




Consumption Pattern
                                      Monthly Sales Pattern - Rural
    1.80
    1.60
    1.40
                                                                                       North Rural
    1.20
                                                                                       South Rural
    1.00
    0.80                                                                               West Rural
    0.60                                                                               East Rural
    0.40                                                                               All India Rural
    0.20
    0.00


                                                                      Source:Nielsen




Inference

Consumption of the D’ Cold Cough syrup in Rural areas is mostly dependent on the Climatic Change
factor.

Company V has better sales in North India but a very poor market in Rural Areas of East.

North contributes to the maximum sales in the rural market, whereas West generates the highest number
of sales in the urban market.

Minimum sales in both markets are in the eastern region, where there is not much climate change.
                    Market Share of Co. " V "among Others -
                                     Rural
                                               V, 2.33




                                                                                       V

                                       Others, 97.67                                   Others



                                                                      Source:Nielsen




Inference:

Looking athe the monthly sales (Vol-Ltrs) of the top 10 companies, compared with company V we see
that its share is almost negligible.

Also in the Others Category, which covers all companies except the top 10 companies (23 companies
including company V), we see its share is very less.

Thus sales in the rural market in India are very low for company V.
               Market Share of Co. " V "among Others -
                               Urban
                                            V, 4.79




                                                                                           V
                                 Others, 95.21
                                                                                           Others




Inference:

The average sales of company V in the urban market when compared to the top 10 companies in the
market is negligible (0.88) but amongst the others it has a decent market share of 4.79.

Thus sales are being made in the urban market.
              Average Monthly Sales Volume - Rural + Urban
                            (In Ltrs) -2009
                                                                                             W
                                        L, 8.27    U, 8.28                                   I
                              I, 9.87
                                                              R, 7.86                        L
                W, 13.85                                                K, 7.06              U

                                                                          M, 6.78            R
                                                                                             K
                                                                       C, 5.69
                      Others, 21.06                                                          M
                                                             F, 5.55
                                                  A6, 5.03                                   C
                                                                                             F
                                                                                             A6

                                             V, 0.71                                         V
                                                                         Source:Nielsen




Inference:

We can very clearly see the almost negligible volume of sales of company V when compared to the top
10 companies in the market.

The sales of company V’s cough syrup in 2009 in India is extremely low, compared to the other brands in
the market.
                 Quarterly Movement of the Product ( In terms of Sales ( Vol : Ltrs )
3.00                                                                                         North
2.50                                                                                         Rural
                                                                                             South
2.00                                                                                         Rural
1.50                                                                                         West
                                                                                             Rural
1.00
                                                                                             East
0.50                                                                                         Rural
0.00


                                                                                   Source:Nielsen


Inference

The sales in the south and east region are almost consistent in Rural India, the maximum sales are
generated byth Northern region followed by the Western region, since these are the places with maximum
climate change, and thus more prone to such illness.

But the sales of the company have declined from 2006 to 2009in Rural India

Whereas in North the sales have been very fluctuating.


                         Quarterly Movement of the Product:Sales (Vol : Ltrs)
3.50                                                                                          North
                                                                                              Urban
3.00                                                                                          South
2.50                                                                                          Urban
                                                                                              West
2.00
                                                                                              Urban
1.50                                                                                          East Urban
1.00
                                                                                              All India
0.50                                                                                          Urban
0.00

                                                                                        Source:Nielsen



Inference

In the urban market in India, the sales are very consistent, there are no sharp or steep changes.
Although the sales have declined continuously from 2006 to 2009.
Thus this calls for the need of the company probing into the reasons to get back its sales.



2.00   1.79
1.80
1.60                 1.47 1.53 1.48
              1.32
1.40
                                      1.17 1.20 1.14
1.20                                                   1.06
                                                              0.93 0.91 0.89                             All India R+U
1.00
                                                                               0.75               0.77
                                                                                                         Average Sales(vol)ltrs
0.80                                                                                  0.65 0.63
0.60                                                                                                     Linear (All India R+U)

0.40
0.20
0.00


                                                                                                         Source: Nielsen




Inference

The sales of company V have been decreasing every quarter from the last 4 years (2006-2009).
We do notice a rise in sales from quarter 0206 to quarter 0406, but that also started declining
from the year 2007. There has been a rise in sales in the last quarter 0409.

Thus there is still scope for improvement and increasing the sales as well as the market share in
India for company V.
                             Sales Performance - 2006 - 2009
  2.00
  1.80
  1.60
  1.40
                                                                                 2006
  1.20
  1.00                                                                           2007
                      1.79




                                                                     1.53
  0.80                                                                           2008
                   1.48




                                                      1.47
                                       1.32




                                                    1.20
                                      1.17




                                                                  1.14
  0.60
               1.06




                                                                                 2009
                                    0.93




                                                 0.91




                                                                0.89
                                                               0.77
            0.75




  0.40
                                 0.65




                                              0.63
  0.20
  0.00
               Qtr1                Qtr2          Qtr3            Qtr4
                                                                    Source: Nielsen




Inference

It is very clearly that the sales of company V in each quarter have been reducing each year.

For quarter 1 the sales decreased by 58% over the 4 years.

For quarter 2 the sales decreased by 50% over the 4 years.

For quarter 3 the sales decreased by 57% over the 4 years.

For quarter 4 the sales decreased by 50% over the 4 years.
  0.70                                                                                     North Rural
                                                                                           North Urban
  0.60                                                                                     South Rural
                                                                                           South Urban
  0.50                                                                                     West Rural
                                                                                           West Urban
  0.40                                                                                     East Rural
                                                                                           East Urban
  0.30                                                                                     All India Rural
                                                                                           All India Urban
  0.20                                                                                     All India R+U
  0.10

  0.00
                                   Standard Deviation                               Source:Nielsen



            Sales Vol (Ltrs) – Rural – Zone/Pan India
                                                             3.00
                                                                           Sales Vol (Ltrs) - Urban -
 2.50
                                               North Rural                                          North
                                                             2.50                                   Urban
 2.00
                                               South Rural                                          South
                                                             2.00
                                                                                                    Urban
 1.50
                                               West Rural    1.50                                   West
                                                                                                    Urban
 1.00
                                                             1.00                                   East Urban
                                               East Rural
 0.50                                                        0.50
                                               All India                                            All India
 0.00                                          Rural         0.00                                   Urban
          2006    2007      2008      2009                          2006    2007    2008    2009
                                                 Source:Ni                                           Source:


Inference

Rural Market

The sales of company V’s product has been maximum in the North. The sales in the western region
stooped by approx. 55% in just one single year, from 2006 to 2007. In the year 2009 except for the
southern region sales in all other markets have decreased. Thus company V can try to focus on the south
market.

Urban Market

The maximum sales have been generated from the north as well as the east markets for company V.
however, sales in all the markets have been continuously declining in the urban markets.
                                Market Share – India Rural + Urban


    1.80        1.53
    1.60
    1.40                           1.25                                                   All India R+U
    1.20                                           0.95                                   Average Sales(vol)ltrs
    1.00                                                             0.71
    0.80      Average                                                                     Linear (All India R+U)
    0.60 Sales(vol)ltrs, 1.11
    0.40
    0.20
    0.00
                                                                                     Source:Nielsen
                2006               2007           2008           2009



Inference

The market share of company V has decined every year from 2006 to 2009 in the Indian cough
syrup market.




                                Product Acceptability Deviation - From 2006 - 2009
                                                                                      North Rural
         0.70                                                                         North Urban
         0.60                                                                         South Rural
                                                                                      South Urban
         0.50                                                                         West Rural
                                                                                      West Urban
         0.40                                                                         East Rural
         0.30                                                                         East Urban
                                                                                      All India Rural
         0.20                                                                         All India Urban
                                                                                      All India R+U
         0.10
         0.00

                                              1

                                                                                Source:Nielsen
                    Percentage Change in Sales ( All India Rural + Urban ) 2006-2009

              40.00
                                      13.53                15.13                 12.51       14.88
              20.00    4.46                                        1.43
               0.00                          -0.38
             -20.00     W     U     L   I      R M C          K     F      A6 G H        B      Y     V
                                 -13.09                -18.41                 -14.23
             -40.00                                -8.35                  -3.83
                            -28.31                                                     -30.90
             -60.00
             -80.00
            -100.00
            -120.00
                                                                                                    -116.95
            -140.00


                          Percentage Change in Sales ( All India Rural + Urban ) 2006-2009
                          Poly. (Percentage Change in Sales ( All India Rural + Urban ) 2006-2009 )

                                                                                       Source: Nielsen

Inference

The sales of company V have declined drastically, they have decline by 116.95% from 2006 to
2009 in India.




                      Availability of Product "V" in Stores (YOY)-2006-09
50.00       41.51
                            37.60
40.00                                       32.95        30.41
30.00
                                                                                Availability of Product "V" in Stores
20.00                                                                           (YOY)-2006-09
10.00
 0.00                                                                      Source:Nielsen
            2006            2007            2008         2009



Inference

The availability of the product of company V has been decreasing from 2006 to 2009.

Cough syrup is an OTC product and thus non availability of the product in the market can
hamper the growth to a great extent.
                            Average Market Share - 2006 - 09
                                    V, 1.11                                         W
                 B, 1.43        Y, 1.84   Others, 7.72                              U
                                                                                    L
          G, 4.00       H, 4.62                          W, 13.17                   I
                                                                     U, 9.47        R
              A6, 5.15                                                              M
                                                                          L, 8.91   C
                                                                                    K
            F, 5.71                                                  I, 9.28        F
                                                  M,                                A6
                                                 7.11     R, 7.36
                                                                                    G
                      K, 6.93                                                       H
                                                                                    B
                                C, 6.18
                                                                                    Y
                                                                                    V
                                                                                    Others
                                                    Source:Nielsen




Inference

Company V has an almost negligible market share of 1.11, compared to the top 10 companies in
the cough syrup category.

Thus it is clearly visible that it has no hold in the market.
                         Average Inventory Turnover - 2006 - 2009

1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
       W U   L   I   R   M   C   K   F A6 G   H   B   Y   V   Q A1 T A5 X A7 Z   S   P A4 A A2 A3 E   O   D   J


Yearly Stock with retailers           Inventory Turnover                                   Source:Nielsen
                                     V
 2.50

 2.00

 1.50

                                                                          V
 1.00

 0.50

 0.00
             2006           2007           2008            2009



Inference

The amount of stock of company V with the retailers is constantly reducing from 2006 to 2009.

This shows that all the purchases are being sold, thus reducing the stock with the retailers.
Conclusions

     The entire cough syrup market is highly dependent on the climate conditions which vary
      very significantly in India.
     Also, we can infer that the concentration of D’Cold cough syrup in South India in both
      the Urban as well as Rural markets is very low and thus the company needs to focus a lot
      on the promotion of the product in this area of the country.
     The company has a very low market share of just 0.46% in the rural market and 0.88% in
      the urban market, which they need to improve.
     The overall availability of the product in stores shows a declining trend over the years,
      from 41.51% in 2006 to 30.41% in 2009. This is a major area of concern specially
      because D’Cold is an OTC product, and its unavailability in the market shifts the
      purchase to its competitor. Thus this is a major reason for its overall lower market share.
     The overall percentage sales show a huge drop of 116% which is eye popping for any
      business organization.
     The Yearly stock graph denotes a decreasing trend which is good for the company as it
      depicts that most of the product purchased is being sold, thus reducing the stock.
     The Average inventory turnover as well as the receivables turnover is in line with the
      competitors and hence the receivables and inventory as such do not show any problem for
      the company.
     The total sales volume when considered quarterly from the year 2006 to 2009 shows a
      decreasing trend which is again negative for the company.
     There are other variants of D’Cold like D’Cold Total tablets and D’Cold Naturals which
      is an ayurvedic cough syrup, which is again affecting the sales of the company as the
      customers preference is shifting towards natural products as well as one time tablets.
      Thus the D’Cold Total Cough Syrup is also suffering due to cannibalization.
     There are no advertisements or any other promotions for D’Cold Total cough syrup, there
      is one advertisement for D’Cold Naturals and many advertisements for D’Cold tablets.
      Thus people are aware of the D’Cold brand, but because of its tablets, and thus are not
      aware about the availability of its cough syrup in the market. Cough syrup being an OTC
      product, they do not purchase the product, due to their unawareness about the product.
Recommendations

     Focus on the Distribution Channel to Increase the overall availability of the
      product in stores so as to increase its availability and thus increase its sales.
     Create awareness of the product in Southern India and thus increasing the sales in
      that region, which has a declining trend in sales.
     Give incentives to doctors to encourage them to suggest D’Cold cough syrup to
      the patients, thus increasing the prescription sale of this product.
     Focus on the regions with lower climatic fluctuations and also colder regions like
      the entire northern part of the country.
     The company should try to focus on smaller packaging of the product in order to
      compete with the D’Cold Total tablets.
     The company needs to focus on the Eastern part of the country which is not that
      sensitive to climate conditions and also since currently the product is not that
      acceptable in that area of the country.
     The company needs to increase the overall sales of the product by devising a
      penetration strategy in the market, by either lowering the prices or by increasing
      the promotions, advertisements and increasing incentives for the doctors as well
      as the channel middlemen.
     They should buy out the High Visibility Shelf of Chemist Stores for the range of
      Organization’s products as most of them are directly sold through it due to the
      preemptive competition.
     A Push Pull strategy can be a boon for the company.
     Local competition should not be under estimated as these are the players who are
      taking the majority chunk of the market. Strategic Tie-Ups or Partnerships at the
      local level can shoot up sales in terms of Volume.

				
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