B2B Project Report

On
“Novartis”

Guided By:
Dr. Mohandas J Menon

Section - F
Group Members:
Achala Singh – 18BSPHH01C0055
Abhishek Reji – 18BSPHH01C0043
Aishwarya Ganesan – 18BSPHH01C0086
Pallavi Mandal – 18BSPHH01C0704
 TABLE OF INDEX

S. TOPICS PAGE NO.

NO.
1. INTRODUCTION

2. MARKETING MIX OF NOVARTIS

3. COMPARISONS WITH MAJOR

COMPETITORS
4. RECOMMENDATIONS FOR NOVARTIS
 CHAPTER 1 INTRODUCTION

OVERVIEW OF PHARMACEUTICAL INDUSTRY

The pharmaceutical industry plays a major role in the development of medicines and
vaccines to decrease disease occurrence, treat illnesses and improve people’s quality of
life. The primary input of the industry is engaging in technological advances through
innovative studies to satisfy the complicated population healthcare needs. In the year
2014 the global pharmaceutical industry was worth an estimated $1 trillion. Now The
global markets for the industry is expected to grow at an annual rate of4.9% to1.3
trillion by 2020. In the drug manufacturing category, the major publicly traded
companies include

  Novartis
  Johnson &Johnson
  Pfizer Inc.
  Merck
  Sanofi
 GlaxoSmithKline.
The Indian pharmaceutical industry is the world’s third largest of drugs by volume and
14th in terms of value. The industry is expected to grow over 15 percent per annum
between 2015-2020. The market size was valued at us$ 33 billion in 2017. India’s
pharmaceutical exports stood at US $ 17.27 billion in FY18 and reached US$ 19.14
billion in FY19. There is rapid growth in the Indian health care sector and one of the
fastest growing sectors it is expected to cross US$ 372 billion by 2022. Government of
India’s pharma vision 2020 aims to make India global leader in end to end drug
manufacturing. Some of the top publicly listed indianpharma companies are

  Sun pharmaceutical
  Lupin ltd
  Cipla
  Dr. Reddy’s Laboratories
  AurobindoPharma
 Piramal enterprise

ORGANISATIONAL BUYING BEHAVIOUR

Organizational buying is the decision-making process by which formal

organization establish the need for purchase of products and services and identify,
evaluate, and choose among alternative brands and suppliers a buying centre is a
group of people within an organization who makes business purchase decision. The
 buying process will vary from industry to industry based in the internal and
external factors and also based on demand factors.

1. PROBLEM RECOGNITION: The buying process begins when someone in

the company recognizes a problem or a need for acquiring a goods or service.
In pharmaceutical industry the internal decision might me to develop a new
medicine or a drug with the help of new technology or machinery. The problem
arises when the company does not have that particular technology for
development. Or the purchase of an equipment might turn to be unsatisfactory.

2. GENERAL NEED DESCRIPTION: This stage decides the characteristic’s and

needed quantity. Based on the drug production requirement and product
specification. The buyer identifies and prioritize by working with users,
purchasing agents and others. During this process the buyer evaluates product
value analysis to reduce the cost of components by standardizing or redesigning.
This helps to eliminate excessive cost of the product.

3. SUPPLIER SEARCH: The suppliers are not only searched in the region or the
country but also across the world. These suppliers supply raw material for the
production of the any specific drug requirement.

4. PROPOSAL SUBMISSION: After supplier selection the buyer invites the

supplier to submit the written proposal and asked to do presentations about
their product. This step involvers getting quotations from different sellers and
floating tenders.

5. SUPPLIER SELECTION: Here the proposal is evaluated by the buyer based on

the cost benefits and product quality the supplier is selected. The other important
aspects are routine order delivery, reliability, price, past reputation, warranties,
service, and discounts.

6. SELECTION OF ORDER ROUTINE: The buyer now takes the final order which
involves technical specifications, order quantity, delivery time, and payments.

7. PERFORMANCE REVIEW: The buyer periodically reviews the performance

of chosen suppliers. Based on the end user review that is how this product
helped to recover health problems. This stage decides whether to re-order,
modify the order or drop the seller.
CHAPTER 2 MARKETING MIX OF NOVARTIS

Marketing Mix of Novartis analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Novartis marketing strategy. The report elaborates the
pricing, advertising & distribution strategies used by the company.
Let us start the Novartis Marketing Mix:
Product
Novartis is catering to various medical sectors including generic pharmaceuticals, eye care
products, neurology, respiratory, psychiatry and many more. Novartis is targeting new growth
markets like India and China where average spending in medicine sector is very less. It is
slowly shifting towards generic pharmaceuticals along with patent expiries. They provide all
types of Allopathic, Ayurvedic medicines in different forms like tablets, syrups and capsules
as well. It is also producing generic medicines, specifically for low cost baring consumers in
poor and developing countries.

Product Mix Width

Product categories offered by Novartis include:

  Pharmaceuticals
  
Consumer health
  
Animal health
  
Pet care
  
Bioprotection
 
Livestock


some of the top selling products A

Gleevac,
 Sandostain, Afinator and Tasigna are the best selling drugs in the oncology division,
which helps to treat various forms of cancer.

 Diovan, Galvus and Exforge  are the best selling drugs from the primary care segment of
pharmaceuticals division.
  Lucentis is top selling medicine in opthalmics segment.
 
Gilenya is the top selling medicine from neuroscience segment.

Price
Generally, brands charge premium price for their exclusive products. But, Novartis does not
follow market oriented pricing strategy. Usually, companies set their prices according to the
demand and brand equity of product. Novartis prices are comparable to market behavior and
demands. Novartis is more focused on its better quality and better research. Operational cost
also plays important challenges to maintain its cost pricing strategy.

 competitive based pricing strategy, because of large number of
Novartis follows
 competitors.

Novartis adopt “pay for performance” strategy. Novartis has most innovative approach
towards the means by which customer would pay. Under this strategy, only those
  would pay for product. This shows
patients who directly benefitted from the treatment
that company has confidence in its products.

 They also use product bundle pricing strategy, where products are bundled together and
sold at lower prices.

They also use optional product pricing as well for certain products, where they offer a
 price for the base 
product and separate prices for the accessories that come along with
the main product.
 
Cost of online deliveries of medicine is high because of additional delivery cost.

Place

Following is the distribution strategy of Novartis:

Novartis have the presence overall developed countries and today they're that specialize
in developing nations like China and Republic of India thanks to its merchandise of generic
medicines. The company sector targets the attention phase and connected services. Novartis
has tie-ups with some governments for its provide of generic medicines to the mass (Due to
price factor). Novartis has R&D centers across the world to fulfil the wants of the purchasers
with time. the necessity has been modified across the world with time. the corporate has
managed its provide chain network to succeed in to mass.
often helpful because of its massive reach and talent to draw in an
oversized variety of individuals. It uses on-line and social media advertising, that is
cheaper and helpful because of the increasing usage of the net.

2. It advertises on varied social media platforms with attention on YouTube, Facebook

and Twitter because of the high monthly usage of those. it's over 100 thousand likes
or client following on these pages, that square measure exposed to frequent content
uploaded by Novartis.

3. Novartis undergoes varied marketing participating in varied trade exhibitions and

events round the year.

4. Novartis undergoes personal marketing, with an oversized business department to

extend its presence in retails.
 5. Novartis uses a share of sales methodology to see the promotions take into
account the year.

CHAPTER3: COMPARISION WITH MAJOR

COMPETITORS
MARKETING STRATEGIES OF NOVARTIS
Novartis is the leading pharmaceutical company, which has prepared various
medicines for the treatment of different patients. The pharmaceutical company is
analyzing the market and understands the demand of the patients for particular
medicines. This company has wide range of its products and it is considered the
world leading company in manufacturing of the medicines.

Novartis has provided its products in the market in vast range and these medicines
are of great quality, which are also affordable for most of the people. The
medicines are prepared after research work for the particular diseases and these are
also recommended from leading doctors and pharmacists. This company has
provided its medicines in all segments of society and the clients in every market
can find on the leading medical stores of their city.

Novartis has vast and effective distribution channel, which is responsible for the
provision of its medicines in the market. The company has provided its medicines in
almost all of the segments. The clients can find these medicines and it is needed for
the company to provide them in the emerging economy and they will earn good
profit over the sale of these medicines. The doctors also suggest the medicines of
this company to their patients and they will surely use them without any hesitation.

Novartis has wide range of its products and medicine and these are perfect for
different diseases. The patients can find medication of different types and they will
use them after getting necessary prescription from their doctors. Novartis is the
market leader in pharmaceutical and it has gained good market share due to high
quality of its medicines. These medicines are also available in all leading stores on
the market and they will get the attention of the clients.

 
COMPARISION WITH SUN PHARMA
Marketing Mix of Sun Pharmaceuticals analyses the brand/company which covers
4Ps (Product, Price, Place, Promotion) and explains the Sun Pharmaceuticals
marketing strategy. The article elaborates the pricing, advertising & distribution
strategies used by the company.
Let us start the Sun Pharmaceuticals Marketing Mix:
  The product strategy and mix in Sun Pharmaceuticals marketing strategy can be
explained as follows: Sun Pharma is a leading manufacturer of both
pharmaceuticals and active pharmaceutical ingredients (API). Sun Pharma has
been catering to various therapeutic sectors inclusive of neurology, diabetology,
psychiatry, cardiology, respiratory etc. All these product offerings come under its
marketing mix. It has always believed on innovating products and coming up
with new medicines with major focus on the growing chronic therapies. Sun
Pharma has a Patent on a medicine for curing skin lesions. It is gradually


shifting towards generic medicines along with patent expiries and the volume driven
growth in the pharma market. It provides both Ayurvedic and Allopatic medicines in the
form of syrups, tablets, capsules etc.Some of Sun Pharma’s famous brands include:
Pantocid, Glucored, Susten, Strocit Repace etc

 Below is the pricing strategy in Sun Pharmaceuticals marketing strategy:


Sun Pharma has always try to maintain a reasonable pricing strategy to meet he needs of
the local people. It tries to optimise the operational cost thus help in maintain affordable
prices. The pricing policies followed by Sun Pharma is on par with the major
competitors in its marketing mix. The consumers are now becoming highly price
sensitive. This is a threat to the company. Sun Pharma produces generic medicines at a
very low cost thus giving it a competitive advantage. With their diversified product line
they have been able to meet both high end and low end products. Also owning a lot of
patents under their name has helped them earn a lot of profits. The Sun Pharma
company has succeeded in differentiating itself as cost leadership.



 Following is the distribution strategy of Sun Pharmaceuticals:

Sun pharma is one of the leading pharmaceutical industries spreading its business
worldwide. It has around 19 manufacturing plants in almost 6 continents. Recently it
has set up manufacturing facilities in Mexico, Bangladesh and Brazil. Sun pharma has
been spending a lot in its R&D projects and tus leading to various successful
endeavours. Sun Pharma has its headquarters in Mumbai, Maharashtra. The plants are
located in India, Canada, Egypt, Hungary, Mexico, Us, Brazil, Romania, Ireland,
Morocco, Nigeria, South Africa etc.

Sun Pharma has been successfully serving patients in around 150 nations across the
globe.


 The promotional and advertising strategy in the Sun Pharmaceuticals marketing strategy
is as follows: Sun Pharma follows a very strong promotional and marketing activity in
its marketing mix and focusses on reaching the customers everywhere. Their Tagline
depicts the intentions of the company and attracts the people. They carry out various
television ads ad also spreads awareness through print medias. The Sun Pharma
company stresses on niche segment like psychiatry and lifestyle meds etc helping it to
grow fourfold to have a revenue. Sun Pharma have also earned awareness through
various sponsoring programmes and hoardings etc. they also come up with attractive
offers and schemes on meeting the described sales to its agents and distributors. This
completes an insight into Sun Pharma marketing mix.