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
Executive Summary- Allround is the leading medical product for cold in the OTC market. It is the most frequent purchase with a high conversation ratio, though the retention ratio has been decreasing, along with market share. Some competitors have introduced new products, and Allround is slowly waning having reached maturity. Therefore, the OCM Marketing team has developed a long term Marketing mix strategy until 10th period.
The drug manufacturing industry is concerned with the development, production and marketing of drugs which are to be used as medication. This is one of the oldest industries in the world. The first drug stores date back to the middle Ages. Some of today’s pharmaceutical companies have been founded in the beginning of the previous century. Important discoveries have been made in the early 20th century such as insulin and penicillin who became mass produced. More drugs were developed during the 1950s-1960s such as contraceptives and heart drugs. During that time numerous organizations and declarations were established in order to regulate the industry. Until the 1970s the drug manufacturing industry remained relatively small, and then it began expanding quickly. With the development of technologies and the internet research, manufacturing, marketing and sales of drugs became a lot easier.
Saigusa, O. (2006). Japan's healthcare system and pharmaceutical industry. Journal of Generic Medicines , 4, 23–29.
...ll help the company in selling generic drugs and provide affordable medications to its customer base.
Mazal Group was founded in 2007, in Chatsworth, California. They have six main brands and two brands being developed. With their emphasis on cosmetics, they have shown excessive growth in the last few years, opening an average of eight new stores and ten kiosks each year. They have eighty-four employees in their headquarters, up from the initial eight that started in 2007. In 2013, the cosmetics industry in the United States earned revenues of $56.63 billion, with facial skin care representing 27% of the industry (Exhibit 1). CEO, Adi Oded, says, “The cosmetics industry, especially in skincare, is booming. We have all these baby boomers getting older and looking for anti-aging solutions and we are giving them those solutions” (personal communication, June 27, 2014). The cosmetic industry is constantly developing and this in-depth analysis will provide the explanation of why Mazal Group has had so much success in recent years.
The Indian pharmaceutical industry enjoys certain advantages, which include low cost of innovation and capital expenditure, and strong domestic support in production, from raw material requirements to finished goods. The competitive structure of the pharmaceutical industry was being redefined due to the threat of new entrants, intense price competition, entry of large players, and new regulations and rules as well as a shift in focus. In addition, the partnerships between pharmaceutical and biotechnology companies were growing rapidly. The global pharmaceutical market is undergoing rapid transformation. There has been a dramatic shift towards emerging markets as western markets slow down.
According to Brand India Equity Foundation, the Indian pharmaceutical market is likely to grow at a compound annual growth rate (CAGR) of 14-17 per cent in between...
McTigue Pierce, L. (2005, July). Pfizer: Growth amid adversity. Food & Drug Packaging, 69, p. 60.
There is an increasing pressure within pharmaceutical markets to reduce prices in line with medical budgets, as well as maintaining patent expirations. Being a global brand means disturbance in the operations when the market fluctuates. There is an internal weakness in the pharmaceutical industry, which includes theft and counterfeiting of drugs, and therefore is a weakness of Johnson & Johnson. While Johnson & Johnson has these specified weaknesses they deal with, there are even more opportunities which gives them an advantage for strengthening their position in the market. They already have the strength of meeting a broader range of customer needs with their products falling under three categories. Expiring patents on brand name drugs lead to an increase in the sales of generic drugs, Johnson & Johnson could capitalize upon this opportunity. With diagnostic markets growing, this positions the company in a good place as well as new medical therapies and findings that align with some of the company’s primary capabilities. Threats the company faces is with product recalls, extreme competition in pharmaceuticals that results usually in the first to enter is generally where success is determined. With technology developments, biotech concepts might possibly move the traditional pharmaceutical methods out of the
With the pharmaceutical industry constantly changing, it makes it very important for a company to analyze the macro environment. The first force is political; right now that pharmaceutical industry is greatly affected by politicians due to changes in health care structure, healthcare platforms, and partnerships with certain pharmaceutical companies. Within the next three to five years as politicians rotate we can foresee the political force being an even greater impact on the industry. The next force is economic. For the now we feel that the pharmaceutical industry is greatly affected by the economic force as people have more spendable income and will be more likely to purchase brand name drugs. As income dwindles, some poor individuals may be unable to purchase even generic drugs. Within the next three to five years since we are coming out of a recession, we will see consumer spending increase and the demand for the highest quality of medicines increase. The economic force will greatly impact the pharmaceutical industry for some time. The next force of the macro environment is the social force. The social force greatly affects the industry since we have begun to focus on preventative health care and detection recently. Moving forward we expect the trend of preventative health care and our tendency to change our health habits will prompt the pharmaceutical industry to deliver new and innovative products. The fourth force is technological; right now the pharmaceutical industry is greatly impacted by changes in technology, and will continue to be affected for years to come. The next force, ecological, somewhat affects the industry. Events like natural disasters, plagues, and other mass causalities can greatly affect the pharmaceutic...
Acne is described as the most common skin disorder that affects 85% of individuals ranging from pre-teenagers to grown adults, specifically between the ages of 12-24 (Tahir 2010). In the midst of the 50 million people affected with acne vulgaris, adolescences are generally most susceptible due to elevated sexual hormones (Zaenglein et al., 2016). Numerous factors increase the production of acne vulgaris. Inadequate diet, menstruation, sweating, over exposure to ultra violet rays and excessive stress influence the appearance of acne (Shamsi et al, 2015). High rates of acne vulgaris occurring in people across the world produce a greater need for antibiotics along with it. Topical and oral antibacterials are the typical forms of treatment yet an innumerable amount of products have been created to medicate the disorder. Bacterial resistance has issued the growing need for newer and
What is acne? Acne is typically known as a pimple or a clogged pore, medically it is known as Acne Vulgaris. Nearly 85 percent of the human race encounter acne in their lives (American Academy). Acne Vulgaris is a skin disease that involves the oil glands at the base of hair follicles (Medical News). Acne can occur anywhere from the face, neck, chest, back, shoulders, and even the upper arms. There are several factors in which result in the causes of the development of acne. These factors include overproduction of oil, hair follicle blockage, bateria, hormones, stress, and even genetics. Acne can be treated medically, with over the counter products, or even natural remedies. Although over the counter products may contain harsh chemicals, it is one of the most beneficial and effective way to treat acne vulgaris.
At the end of 60’s, there were a number of changes in the market and trade structure. A number of financially strong companies brought out new brands of cream and differentiated skincare ranges.
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
manpower and a large base of FDA approved plants, positions India high on the outsourcing