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Thesis Hr

PARADIGM SHIFTS: PHARMACEUTICALS MARKETING

A Case Study: ELDER HEALTH CARE LTD MUMBAI (EHCL)

OVERVIEW

The traditional model of pharmaceutical marketing has undergone a sea change. Companies have moved on from being primarily sales-oriented to now realizing the significance of services marketing with the focus on cross selling.

Apart from their regular distribution channels, which end with the Retail Chemist, Companies involved in pharmaceutical sales & marketing operations have to deal with doctors, and to some extent, patients too. With this recognition of the importance of services marketing, most top companies have set up separate Customer Relations Departments, and ELDER HEALTH CARE LTD (EHCL) is no exception to the trend. Such a department is usually responsible for providing an above average level of service to Doctors and Patients, who are both the actual customers, giving business.

With a diversified business approach to its products, EHCL has a team of Marketing Executives (ME) with the Area Business Manager(ABM) supporting them by coordinating, directing and trying to solve their problems related to service for doctors located in their respective markets.

In 2004-2005, the Customer Relations Department of EHCL invested a disproportionately large amount in the market on both Doctors as well as Retailers through the launch of a totally new Division ELKIDZ in January 2005. This was done with a great deal of trepidation, since hitherto, such expenses unfortunately, did not translate into improved bottom lines and the Return on Investment was far below expectations.

The Company already had a record of loss in the financial year 2001-2002. Assorted ABM’s invested on Doctors trip abroad, their clinical equipments and in some cases even under the accounting head of education; as a Company strategy the concerned ME’s followed up closely with such identified Doctors in terms of business. However, the game was completely one-sided and the...