Changes In The Marketing Strategies During The

Last 5 Years

Inorganic growth
Torrent Pharma made its next big buy from the domestic market
when it snapped up Mumbai-based Elder Pharmaceuticals for Rs
2,004 crore in 2013. With that, its product portfolio widened to
include over-the-counter drugs. The company followed this up with
the acquisition of Zyg Pharma in 2015, gaining access to a portfolio of
dermatological formulations for the US market.Aligning cultures is
what Torrent Pharma stresses on after acquiring another company.
Speaking of Torrent’s Heumann acquisition, Mehta says, “The idea of
an Indian company acquiring a European company was unfamiliar
[when Heumann was bought] and the German workforce didn’t
know what to expect. But we communicated with them and even
ensured that the new CEO was German.”With the Elder deal, Torrent
Pharma acquired a highly unionised workforce, a first for the
company. “We focussed on building a trust bridge [with Elder’s
employees]. We explained the rationale behind each of our
productivity-linked HR policies and gave them the choice to either
continue with the existing policies or switch,” explains Mehta. Within
a year, all Elder employees opted for Torrent Pharma’s HR policies.

Professionalism
A true hallmark of a well-run company is that its directors and senior
executives are kept in the loop on all matters of concern to them,
and this is something that Torrent Pharma’s promoters do very well,
says Haigreve Khaitan, senior partner at law firm Khaitan and Co, and
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a director on the board of Torrent Pharma.“The professionalism with
which the board of Torrent Pharma functions is remarkable,” says
Khaitan. “No matter how big or small a decision is, it is
communicated to all, most often by Sudhir and Samir themselves.
They are open to suggestions and while they take their own
decisions, they do so after taking everyone’s
views into account.”It is this professional
approach that has helped Torrent Pharma
build a sizeable business in the US despite
being a late entrant and having a limited
product portfolio.In recent times, Torrent
Pharma has one of the best track records in
terms of securing timely approvals for its key
products. Mehta believes his company’s
strategy to take its time in preparing dossiers
to be submitted to the regulator and seeking
approval for new products has resulted in
quick nods. “We’d rather take two years to
prepare a filing, but make sure it’s
foolproof,” he says.Torrent Pharma’s
operating profit margin of around 27 percent
is several notches higher than the industry
average of 19 percent. As long as this trend
continues, the chemistry will continue to
work for the company’s stakeholders. The
constant endeavour, he says, is to build a
world-class institution that delivers “best-in-
class profitability”.

 Marketing Strategies
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 I. Acquiring newer and complex development skills leading to
diversified product delivery capabilities.
II. Segmenting specialty focus and geographies for scaling up
III. Simplifying and Harmonising Marketing Strategies
IV. Speed Through inorganic growth in key markets.
V. Building Complex capabilities, New therapies, and dosage forms
VI. Acute The Growth Driver
VII. Harmonized efforts in marketing, New launches & Practices
VIII. In Europe focusing more on Germany, Uk and OTC
IX. In India,Strengthening access in Dermatology, Gynaecology,
Oncology, Nephrology, Pain and Continuous focus on FF
Productivity (10 lacs+), Specialties & Scientific model & Revival
of “Turrant” NI Pipeline – 180 products in the next 5 years.
X. In USA, Strengthening ANDA pipeline, Entry into Differentiated
products, In- licensing.
XI. Brand building & Specialty focus in CV/CNS/Gastro.
XII. In Emerging markets, Continuous focus on FF Productivity
XIII. In EU and distributer driven models - Out-licensing, Entry into
differentiated products, In-licensing
XIV. Margin Expansion further to be driven by elder acquired
portfolios and USA
XV. Focusing on products driven by Brands, Niche products, Field
Force productivity
XVI. Focusing on brand building and productivity improvement to
continue. (8 brands 100 crs + by 18-19, currently 2 brands)
XVII. Rationalization of field force (500 over 3
XVIII. years )
XIX. Portfolio realignment to bring in better Synergies
• Harmonization of
• Marketing practices
• Product pipeline
• NDDS innovation & Investments
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 XX. Scaling up investments through new therapies and portfolio in
promising markets
Focus on Products via Region:
USA - Oral Solids, Complex Products and Oncology
Europe- Speciality and OTC
Pipeline being augmented with
- Intranasal, Derma ointments/creams, Injectables & Specialty Oral
Solids (Oncology)
XXI. In USA moving up the Value Chain By;
Strengthening Presence with customers & operational improvements
Strengthening multiple channels with anchor customers
Improve operational excellence internalize warehousing,
XXII. Growth drivers – pipeline size and diversification by:
Increasing presence in New segments – Dermatology, Oncology,
Ophthalmology and Complex Generics
XXIII. Promoting Business development by:
Augmenting pipeline with external partners and through Mergers &
Acquisitions
XXIV. Strengthening Licensing business by Forging partnerships with
regional companies in north and south Europe
XXV. In UK they intend to Move business to larger accounts – retail
chains & large wholesalers
XXVI. Portfolio diversification in non-infringing products, OTC, and
high volume tender markets
XXVII. In their indian business, they added 180 products for next 5
years and added 30 during last 3 years
XXVIII. 100 NDDS & First time launches stepped up
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XXIX. In their International operations, they added 64 new projects in
the field of Oncology, Dermatology, Ophthalmology, and
injectables
XXX. They added around 400 scientists to their operations and R&D
team which scaled up new discoveries which provided
competitive advantage in terms of launch of new products and
gave them first mover advantage

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 Reasons For The Change in the Strategy
 To Simplify skill scale speed
 To Prepare for the future better margins
 To Scale & Access post Elder acquisition – A new balance
 For Sustainability and productivity
 To ensure good margins in lucrative segments
 To drive acute portfolio driving growth
 To strengthen their multiple channels
 To Induce patients willingness to pay premium price
 To lead Brand models across all Branded Generic markets
 To ensure proper Portfolio re-alignments
 To ensure cost efficiencies in NI and field force deployment
 Inhouse capabilities development

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 Product Strategy
If I were to be the Chief Marketing Officer of the company then in
that case my product strategy would have been in the following way:
PRODUCT
Antifungal Tablets “ ITOFUNG-200”
Design
Transparent Gelatin Capsules of 200mg strength.
It will be transparent, and have the brand name inscribed on it
Features
The capsule will be a sustained release capsule, the active ingredient
salt Itraconazole is the best in class for the treatment of fungal
infections of skin, hair, throat and nails. It performs better in terms of
other oral salts such as terbinafine and flucanozole. It also supresses
the cell molecular activity ehich actively targets mutilated cells and
hence quite useful in treatment of cancer patients.
The product is safe to use with other medicines and can be used as a
combination drugs though patients with liver and kidney diseases
will have to be administered carefully.
It will also not leave a foul taste and smell in the oral cavity unlike
other drugs of the same salt
Quality
When raw material ( active ingredients, excipient, packaging
materials etc) is received by the manufacturing unit it is placed in
quarantine area. All raw material is tested for quality standards and
specifications mentioned before accepting for manufacturing
process. If raw material passes all the tests for specification
standards then only it is accepted for further processing. Then during
the manufacturing stage best class machinery is used and no human
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intervention is there to relinquish the threat of contamination. Every
manufacturing unit has few documents that help them to maintain
and sustain quality standards. One is master formula record. Master
formula record is one who consider as reference standard for
manufacturing batch of any particular ingredients. One more
document that is maintained during manufacturing process is Batch
manufacturing record. It contains all details about ingredients,
specifications, batch number, process time , date etc. During
manufacturing process, samples are taken during process and
conducts tests for quality standards and accuracy of process. Tests
like assay, hardness and fragile test for tablets, pH test for liquids,
flow property of power etc are checked and maintained during
manufacturing process at regular intervals. After manufacturing
process sample taken and tests for quality and specification
standards. Quality control is conducted at each and every step.
Branding
The Capsule will be made available under the brand name
“ITOFUNG-200”. It will surely have the power to provide instant sales
as the product Torrent Pharmaceuticals are one of the most reliable
in the market and the Brand name would definitely work as a
catalyst in the process. It will differentiate the product from other
products available in the market.
Target Market
The target market will be the dermatologists, general physicians ,
retail & wholesale chemists, online pharmaceutical platforms such as
netmeds, pharmeasy and 1mg. Entire World and India will be
catered.
The Product will be made available in all the 7 continents as torrent
pharma enjoys huge brand acceptance, trust and fairly a good
market share in all the international markets and with 7% share in

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Indian market it will be launched with a vision to achieve a 25% share
in the oral antifungal segment.
Positioning
The Product will be positioned as a premium oral capsule and will
compete with the Sanofi, Mankind, Lupin, Cadila, and Dr. Reddy’s
products. The product will not be made available under the generic
category. The Company has a pre established brand name, clientage
and by using such a efficient and effective mechanism, the company
intends to ensure that a product does not eat up its own capital and
considering the costs involved in the process, the medicine will be
sold under the designated brand name and will continue maintaining
its ethical and perfection standards and providing a value to the
customers.

Process
Swot Ananlysis of Torrent Pharmaceuticals
Strengths: Actively Targets Generic Drugs, Leader in Cephalosporin
and Anti TB Drugs, Innovation Focused and presence in over 70
countries
Weaknesses: 84% revenue from the US Market, forecasting less on
technological level, operates in low growth segments
Opportunities: Increase in investments, Increasing health awareness,
emerging technological trends, increasing prevalence of TB in
developing countries
Threats: Price regulation by the Government, FDA approval delays
and lawsuits affects the export market
From the above swot analysis I conclude that the product suits well
and adheres to the factors of swot analysis and shall positively
leverage the company’s vision and mission.

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Screening The Idea
The Customers will surely benefit from the product. The Precison and
perfection and quality is top notch and according to the research the
salt ingredient is one of the best to treat the target disease.
Testing The Concept
A survey will be conducted , it will be a sample survey and would
consist of sales force opinion method and market research.
Demand Forecasting and Demand Estimation will also be ensured
with the help of this .
Business Analytics
On the basis of data from the testing methods and of the available
data base of existing products a well defined analysis will be done to
ensure the feasibility of the product manufacturing and product
sales.It will ensure that it’s worth considering the project.
Maketability Tests
A prototype of the product will be made available in the market prior
to the mass production to ensure that it satisfies the needs of the
consumer and its performance in the market and if some
modifications are to be done then it can be done well on time
Technicalities and Product Development
Prototype will be created in the marketplace allowing exact and real
life investigations, product specifications and any manufacturing
methods. This stage also includes the process of logistics plan,
supplier collaboration, engineering operations planning and quality
management.
Commercialise
Product will be launched into the market alongside advertisements
and other promotions.
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Post Launch Review and Perfect Pricing
After the product is launched, it’s market performance will be
reviewed in order to assess the success of the project on the entire
product portfolio. This stage will also include product costsand the
forecast of future profit and revenue, differing price and using
competitive technologies for competition in the market. Value chan
analysis will be useful for this stage of the process

Product Life Cycle

The Product will be launched and will go through the Introductory

phase
Characteristics of PLC
Critical Factor - Product Development and Design
Researching, developing and launching the product.
Product passes through a low volume introduction phase where unit
profit margin is low and sales volume starts to rise.
Growth
Critical factor - Advertising and Distribution, Sales increases at a
faster rate. Volume and profit both starts to rise.

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Maturity
Critical Factor - Marketing Effectiveness
Unit profit margin at its highest but the rate of sales volume is
slowing down. For example, there are now new competitors in the
market.
Decline
Reducing sales, Constant cost, Reducing profits, Obsolescence,
Critical Factor - Cost Efficiency
Sales and profit began to fall. Declining volume pushes costs up until
all profits are eliminated. This may be due to the need of
disappearing or a better and cheaper product has been developed in
the market. To extend a life of the product, techniques include
advertising, price reduction (attract new customers), adding value to
the product (new features), explore new markets (selling your
product overseas) and new packaging (freshen up old packaging).
Pros
Basis - The product strategy forms the basis of implementing a
product road map. It allows the company to manage and measure
for success, minimise the risks and to focus on a specific target
market. Creates value - A strategy that focuses on specific target
markets highlights the cost and durability of a product compared to
other products, which adds on value towards customers and
potential customers. It can also win businesses with improved
performance, thus increasing reputation and revenue.
Non-price competition - Allows businesses to compete in other areas
other than price. For example, taste and design.
Customer-centric approach - The company will be able to keep up
with changes in the marketplace as it approaches to targeting

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customers. Thus, the company will know how to advance products
tailored to a way that it satisfies consumers expectations.
Cons
Marketing and Sales Demands - Tailoring products to certain target
markets requires increased administration efforts, thus a higher
number of staffs required.
Higher Costs - Cost to customise and research into certain products
in terms of a certain target market is expensive, as well as the
increase number of staffs hired.
Consistency Challenges - If the company fails to provide an efficient
and effective product to a certain market, there maybe a negative
damage to the brand's image. Thus, the company needs to maintain
a consistent standard of quality of its product.
Product-Centric Focus - The company can get too focused on a
certain product's research and development aimed towards a certain
market and fail to response efficiently to changes in customers
demand and interest.
Risks - Market and customer research may not be sufficient, leading
to product development that do not meet the needs of potential
customers. Thus, failure in delivering benefits of the product to
customers.
Example
Product differentiation occurs when you have to distinguish a certain
product in the marketplace as you're competing for a product that
bring about the same need (e.g. tea) amongst different firms. In
order to do so, your aim is to make the product more attractive to
the marketplace compared to other competitors. This does not only
include price, but also features of your product, quality, packaging,
benefits and services. Successful product differentiation creates a

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comparative advantage for the firm. For example, your competitor in
the market sells Tea A but you sell Tea B, you will then have to focus
on producing Tea B so that your customers find your product to be
more appealing (in terms of price, taste and services) compared to
your competitor.

Distribution Stratey

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Intensive Distribution: As numerous outlets as could be expected
under the circumstances. The objective of serious appropriation is to
enter however much of the market as could reasonably be expected.
Selective Distribution: Select outlets in explicit areas. This is regularly
founded on a specific decent and its fit inside a store. Doing this
enables producers to pick a value point that objectives a particular
market of buyer, subsequently giving a more redone shopping
experience. Specific appropriation tops the quantity of areas in a
specific territory.
Exclusive Distribution: Limited outlets. This can mean anything from
extravagance marks that are restrictive to extraordinary assortments
accessible just specifically areas or stores. This technique keeps up a
brand's picture and item restrictiveness. A few instances of
organizations that establish elite dispersion would be top of the line
originators like Chanel or even a car organization like Ferrari.
Channels Of Distribution

Level Zero: A level zero appropriation channel is the most

straightforward. It includes an immediate deal from makers to
purchasers with no middle person.
Level One: A level one channel has one mediator as the go between
the maker and buyer. A model is a retailer among producer and
buyer.
Level Two: When pondering levels, partner the number to the
quantity of middle people. For this situation, a level two channel
includes two mediators among maker and purchaser. A model here
would be a distributer offering to a retailer who at that point offers
to the customer.

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Level Three: Here's the place an operator or dealer comes in.
Specialists deal with benefit of organizations and manage
wholesalers. From here, the wholesalers offer to retailers who at
that point offer to shoppers.
Distributor: A distributor is a wholesaler who accepts additional
accountability. Notwithstanding satisfying retailer orders, they
effectively sell items for the makers. From overseeing requests and
comes back to going about as a salesperson, they go past being the
mediator among retailers and makers. They perform showcase
examination and are always looking for new chances to accomplish
top deals execution. A merchant centers around a specific region and
market which enables them to develop solid associations with
producers. In contrast to a wholesaler, they no doubt have a more
grounded association with specific organizations. Distributors have
an immediate duty to ensuring items are taking off retail retires. For
instance, one distributor may work out a concurrence with a famous
drink organization who works with them consistently, while
wholesalers are utilized on a need-by-need premise. They have the
alternative to offer to retailers and different merchants, or
straightforwardly to purchasers and businesses.
Wholesalers: A wholesaler satisfies requests of retailers, by
exchanging products, regularly in huge amounts for makers.
Wholesalers buy in mass, normally, which brings down the cost, from
either distributors or manufacturers. This enables wholesalers to
make a benefit since they can sell to retailers in littler bundles that
yield more significant expenses. In contrast to distributors,
wholesalers just manage the capacity and conveyance of products.
Be that as it may, in specific cases, you need to experience a
wholesaler to get to a distributor.

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Retailers: Retailers are where buyers can buy items. This is your
nearby market or Walmart down the road. They can sell through
retail facade areas or through online channels. Retailers buy items
from distributors or wholesalers.
Brokers and Agents: Make route for operators. They handle the
coordinations of the deals. Agents handle agreements, advertising,
and pulling together specific shipments. An aspect of their
responsibilities is client relationship the executives. For the benefit of
producers, they take responsibility for through the appropriation
procedure. They speak to the producers in the business procedure.

The Product will be sold Through the following channels:

Level One
Level Two
Level Three
As Through online sales medium with prescription being uploaded a
person can directly order online
In level two the chemists , MR , wholesalers and retailers takes up
the task of distribution. This is the major and most important
distribution channel of the industry and the product will use the
following channels listed above efficiently to facilitate a proper
distribution channel.

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