Success Strategies for Indian Pharmaceutical Industry for their Product Penetration in India

India’s economy is growing faster, creating a large segment comprising middle-class people, allowing a rise in demand for Western medicines. Also, with the change in epidemiology, the need for cardiovascular medications and other chronic diseases is rising too. These factors have made India a promising market for global pharmaceutical companies.

While the top 10 companies in India contribute to 41% of the total sales, others contribute to 22% and 37%, respectively, making India rank 3rd in terms of volume and 14th in terms of value in the pharmaceutical industry.

Why is Global Pharma showing Interest in the Indian Medical Sector?

With increased investment in healthcare infrastructure, there has been a rise in the number of multi-specialty and super-specialty hospitals. Each of them is equipped with the latest technologies and treatment procedures. Today India boasts almost 44,000 private hospitals consisting of nearly 2 million beds, 59,000 ICUs, and 29,600 ventilators. There are private hospitals, too, that come with 35,000 ICUs, 17,850 ventilators, and nearly 713986 beds.

Thanks to advanced internet tools and network systems, information about a new drug and the ways to use it penetrates the market easily.

Moreover, with the rise of the middle-class population, costly medicines are no longer burdensome as healthcare providers offer discounts and coupons. Also, the Indian middle class prefers going to private hospitals for treatment as these hospitals ensure personalized attention and quality care.

Besides, most Indian families have secured themselves with health insurance policies. Studies say that Government’s Ayushman Bharat policy is likely to benefit almost 65 crore people in the country, promising the out-of-pocket expenses to reduce to 20-30% in the coming years.

Apart from all these, India also has been an ideal market for global pharmaceutical companies to conduct several clinical trials. As per the recent study, the cost of Phase 1 trials is lower by 50%, and Phase 2 is lower by almost 60% compared to other markets.

India’s Government has consistently encouraged favorable policies to extend financial support to people reaching out for help with treatments. As a result, several consultant companies in India can legally facilitate the availability of newly approved medicines that are still unregistered. This is a big benefit for Indian patients and global pharma companies.

Importance of Market Entry Strategy for Enhanced Product Penetration in India

Market entry strategies help provide pharma companies with a rock-solid plan to easily venture into the international markets. Here’s how market entry strategies help:

• Effective market entry strategies followed by Indian companies help in faster market adoption of the products and services. It spreads out to the market easily, allowing customers to buy them.
• Companies aiming to achieve growth will surely benefit from the market penetration strategy for Product Penetration in India as they enhance the customer base. This is done by marketing experts who lower the prices of products and services, attracting customers’ attention and triggering more sales.
• Effective market penetration strategies trigger customer referrals since it creates goodwill among the customers as they purchase affordable products.
• Market penetration strategies discourage competitors from entering the market. Therefore, due to less competition, companies can place themselves effectively as their marketing teams offer low prices while introducing a new product in the market. This enables high turnover as sales increase rapidly.
• These strategies enhance market share and sales volume and increase profits as products can be purchased in bulk to keep up with the rising demand of customers.
• Market penetration strategies use advanced tools and technologies for the optimal functioning of operations. This reduces errors and manual handling of the system and boosts the functioning of the system as well.

Apart from all these, companies use marketing and advertising strategies which are excellent tools that enhance product awareness. Depending on their marketing budget, these pharma companies plan short and long-term marketing activities. A thoughtful and well-planned strategy will always help in the development of a business.

Role of Expanding Sales and Distribution Network for Improved Product Penetration in India

The most crucial aspect of the success of any business is the expansion of sales and distribution networks. Since the pharma sector is large, it requires effective sales and distribution planning to reach out to every customer.

• A proper sales and distribution network is a major revenue generator as it facilitates profit for the company.
• Sales and distribution network plays a massive role in meeting the corporate sales target and enhancing the company’s overall performance.
• These networks stay abreast of competitive sets, consumer preferences, and government rules that impact sales.
• Through a wonderful sales strategy, companies could build long-lasting relationships between the companies and the customers and create a reliable supply chain as well. In addition, earning long-term liability will generate profit within the businesses.
• Creating long-term growth is another major role the sales and distribution networks play. As they capture the bigger markets over time, they tend to build repeat businesses by attracting a greater number of customers.

Why Enlisting the help of Management Consulting Firms is Crucial for Global Pharma Companies to Succeed in India?

An attractive ground for renowned pharma organizations to run their business, India consists of some top management consulting firms, such as Tecnova Global, that help these global pharmaceutical companies with valuable marketing strategies to succeed here.

Management consulting firms in India offer excellent cost-effective solutions and ensure the strategies they provide are properly aligned with the operations of the businesses.

These management consulting firms adopted a new approach to the remote working system, where digital operations expand beyond video conferences. With more preference for virtual operations, the incorporation of no-code software, AI system, and other advanced technologies have boosted businesses globally.

India’s growing pharmaceutical industry is likely to become a world leader in this sector in the coming years. With effective manufacturing expertise, Indian pharma companies are now global leaders in the production of vaccines and several medicines. Therefore, as these areas tend to strengthen further, the pharmaceutical companies in India will partner with the global pharma giants to market their products outside the country.

Reference

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