Important Stages of Evolution of Indian Pharmaceutical Market
Stages of evolution of Indian pharmaceutical market:
Stage I Monopolistic PhaseStage III Multi-brand Phase
CompetitionStage II Emerging Market PhaseStage IV Commoditisation
Fig No. 1.1 depicts about the stages of evolution of Indian pharmaceutical industry. The stage 1 involves monopolistic phase when few companies were present in the market that had in early age of 1970’s and their brands enjoyed monopoly in their segments.
Multi- brand phases shifted the approach of pharmaceutical companies for diversification of product range and enter into new market areas. After that emerging market phase has come into focus where innovation and continuous improvement in product strategies is a key for successful marketers and today commoditisation is emerging to give a new shape for pharmaceutical marketing.
Pharmaceutical industry consists of two major segments: Bulk Drugs and Formulations. A bulk drug is an active substance having scientific and medical properties as a result of extensive research, and dominates low margin market segment. As India possessed Process Patent Act till year 2005 marketing of these Bulk Drug segments is restricted up to contract, tender, or on short supply basis.
Pharmaceutical industry comprises of four major branches as Ethical or Prescription based. Generic, Over The Counter (OTC) and Surgical and Medical Instruments, of these the most important for our study from marketing angle is Ethical and Generic branch as because of its high contribution and uniqueness in marketing.
Further, Pharmaceutical industry consists of three branches as Allopathic, Homeopathy and Ayurveda besides this some indigenous systems like Unani, Acupressure etc. are popular in some areas with their own limitations. Allopathic drugs have a high volumetric base representing more than 80 percent of pharmaceutical market (Fifty-sixth, World Health Assembly Report, 2007).
As civilization developed its own systems of medicine like ayurveda developed slowly and popularizing has wide opportunities to grow in the merging challenges in pharmaceutical marketing.