The Growing Demand for Anti-Acne Products in the Indian Market

Best Essays
In India the problem of acne is more prone among the teenagers and young ones. To get rid of this problem there are many variety of acne creams in the market of India. There is an expanding market for the medicated skin products like acne treatments, anti-fungal and anti-bacteria creams etc. This market is valued as per the RSP (Retail Selling price) and this also comprises of the applicable taxes(Acne free, 2012).
Indian OTC pharmaceuticals industry has grown at a strong rate from the period in between 2008-2012. In this there has been a major increase in the growth of vitamin and minerals division. It is a trend which is forecasted till 2017(OTC pharmaceutical India, 2013).

There is a growing demand for anti- acne products in India and the market of Indian OTC pharmaceuticals industry has recorded its total revenue worth 1,834.2 million USD during 2012. It shows the compounded annual growth rate (CAGR) of 8.5 percent in the period in between 2008-2012. It is with the anticipated CAGR of 9.7 percent in the five year period from 2012 to 2017 that this is anticipated to give a boost to the market value worth 2,913.5 million USD by the end of 2017. The markets in Japan and China are growing with CAGRs of 7 percent and 5 percent respectively and are expected to achieve worth of USD 21,948.0 million and USD 15,902.3 million in 2017(marketline , 2013).

Table 1 India OTC pharmaceutical industry worth from 2008 -2012

Figure 1: India OTC pharmaceuticals market value 2008-12

PEST Analysis

Political analysis
It is after 1991 that the Indian government has introduced several changes in the Indian markets like the de-regulation of the markets in India. This has helped in the removal of the bottle necks that were responsibl...

... middle of paper ...

...ts. Thus a competitive pricing strategy would be used by Bursti limited so that it is able to make a profitable entry in the Indian markets. The customers would be charged such prices that the customers are able to find it as true worth for the amounts which they are incurring on its goods.

Porter’s Generic Strategy
Cost Leadership Strategy
Bursti limited would be focussing on the strategy of cost leadership by making sure that its cost of operations are least and it is able to show its efficiency in confronting the competition in the market. For this it would be using all possible means like outsourcing of its certain operations or setting up of the production plans in the low cost locations etc. so that it is able to achieve the target of having the least cost of production and achieve the position of being a leader in lowering of its costs. This would help the
Get Access