A

PRESENTATION
ON
COMPREHENSIVE PROJECT REPORT-II
OF
“An In-depth study of consumer attitude toward OTC segment of Pharmaceutical Industry.”

PRESENTED TO:
Honorable Jury Members of KSV University

P R E S E N T E D B Y:
Bhavin Mansuriya
Viral Patel
Jignesh Kapadiya
Jatin Patel
FLOW OF PRESENTATION

 Introduction of Pharmaceutical Industry

 Pharmaceutical Industry in India
 Pharmaceutical OTC Market
 Research Methodology
 Limitation of the study
 Data analysis
 Inferential statistics
 Findings
Introduction and Origin of Pharmaceutical Industry

 Pharmaceuticals are substances known as medicines, used in preventing and curing illness
and disease. Usage of pharmaceutical is governed by underlying science of illness and
disease. The branches of medical science are:

 Allopathy
 Ayurveda
 Siddha
 Unani
 Homeopathy
 Yoga and Naturopathy
Pharmaceutical Industry in India

 Pharmaceutical Industry in India is one of the largest and most advanced among the developing
countries. It is ranked 4th in volume terms and 11th in value terms globally.

 Around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical
formulations, chemicals, tablets, capsules, orals and vaccines is met by Indian pharmaceutical
industry.

 A number of Indian pharmaceutical companies adhere to highest quality standards and are
approved by regulatory authorities in USA and UK.

 Geographic diversification with few companies focusing on increasing presence in the

regulated markets and others exploring the developing/under-developed markets of the world.
 As a part of diversification strategy, some of the companies have acquired brands, facilities
and businesses overseas. Some companies have even started their local marketing in
foreign markets.

KEY CHALLENGES:
 Competition
 Price control
 Protection of patents
 Drugs portfolio management
Pharmaceutical OTC Market

 Over-the-counter (OTC) drugs are medicine sold directly to a consumer without a

prescription from a healthcare professional.

 Over the counter (OTC) drugs also called self-medication drugs.

 Prescription-only drugs are those medicines that are listed in Schedules H and X appended to
the Drug and Cosmetics Act & its Rules.

 Drugs listed in Schedule G (mostly antihistamines) do not need prescription to purchase but
require the following mandatory text on the label: “Caution: It is dangerous to take this
preparation except under medical supervision”.

 Currently, non- drug-licensed stores (e.g. non-chemists) can sell a few medicines classified as
‘Household Remedies’ listed in Schedule K of the DCA&R in villages whose population is
below 1 000.
• However, as they do not require a drug licence they can be sold by non-chemists. Some of the
top OTC brands in India (e.g. Vicks VapoRub, Amrutanjan Balm, Zandu Balm, Iodex, Moov
Pain Cream, Itch Guard Cream, Eno Fruit Salt, Vicks Cough Drops, Halls Lozenges, etc.), are
registered as ‘Ayurvedic Medicines’ because of their plant-based natural active ingredients.

 OTC drugs are usually regulated by active pharmaceutical ingredients (APIs), not final
products.

 The Indian market for over-the-counter medicines (OTCs) is worth about $940 million and is
growing 20 per cent a year.

 India is presently ranked 11th in the International OTC market in size, with an expectation that
it will get to the 9th position within five years.

 Indian OTC market is estimated to be worth $ 1,793 million with an annual growth rate of
approximately 23 per cent.
 The Indian pharma market in comparison is valued at about $ 8.4 billion in 2009. It grew at
about 12 percent CAGR from 2002 to 2007 while it is expected to reach $ 20 billion by 2015
(CAGR of 16 percent from 2009 to 2015).

 the document said that "India is the sixth largest market globally in terms of size," and is
"expected to rank amongst the top three pharmaceutical markets in terms of incremental growth
by 2020".
OTC Products
• Vicks Cough Dros
• Vicks VapoRub
• Vicks Inhaler
• Dab Range
• Sat – Isabgol
• Gol Goli
• Y. Sugar
• C-Sip
• C - Candy
• Burnol
• Lemolate
• Benefiber powder
• Benefiber Caplets
• Benefiber plus calcium
• Excedrin®
• Extra Strength Excedrin®
• Crocin
• Crocin Pain Relief
• CrocinQuikItchGuard
• Moov
• Moov spray
• RingGuard
• Stopache
• Softgels
• Chewables
• Bufferin
• Aspirin
• Calcium
• Sandoz
• Eno
• EnoTabs
• Iodex
• Iodex Power cream
• Afterbath FreshnessCream
• BoroSoft
• Krack
• D’cold
• D'Cold Cough Syrup
Major players of OTC Market in India

• Proctor & Gamble

• Dr. Morepen Ltd.
• GlaxoSmithKline Pharmaceuticals Limited
• Zydus Cadila
• Novartis
• Paras pharmaceuticals Pvt. Ltd.
• Dabur India Limited
Research Methodology

 Title of the Research

An In-depth study of consumer attitude toward OTC segment of Pharmaceutical Industry.

 Research Objective
 To study the Indian Pharmaceutical Industry.
 To understand the consumer’s attitude towards OTC products of the pharmaceutical industry.
 To know the preferred medium of communication for advertisement of OTC products.
 To find out the extent to which consumers read the labelling information before making a
purchase.
 To determine the extent to which the respondents prefer self-medication instead of going to the
doctor for common health problems.
 Research Design : Descriptive Research
 Sources of Data : Primary source & Secondary source
 Sampling Method : Non- probability (Convenience sampling)
 Sources of Data : Primary source & Secondary source
 Sampling Method : Non- probability (Convenience sampling)
 Sample Size : 119
 Data collection instrument : Questionnaire
 Analytical techniques applied : Chi-square analysis
One-way Anova analysis
Rank Score
T- Test
Limitation of the study
 The first limitation of our project is the time constraint, as we have to complete this project in
limited time period.

 The information given by the respondents can be biased.

 Another limitation is that the scope of the researcher’s study is Ahmedabad city. So the
population considered may not be the actual representative of the population of the nation.
Data analysis
Q.1 What do you do when you have minor disease?
Use home remedy 58
Consult to the Doctor 52
Take a medicine on your own 42
Take a medicine which the storekeeper suggests 35
Do nothing 15
Total 202

Consumer behavior while they have minor disease

7%
Use home remedy
17% 29% Consult to the Doctor
Take a medicine on your own
Take a medicine which the storekeeper suggests
Do nothing

21%
26%
Q.2 For which dieses do you use OTC products?

Pain 21.16
Acidity 15.34
Fever 15.34
Skin Disease 6.88
Vitamin 8.20
Headache 15.87
Vomiting 12.17
Other 5.03
Total 100.00

Use OTC product for different use

5% Pain Acidity
12% 21%
Fever Skin Disease

16%
15% Vitamin Headache

8%
15% Vomiting Other
7%
Q.3 Which place do you prefer to purchase OTC product?

Grocery shop 18
Specialist store 17
Nearest chemist store 75
Super market/ mall 3
Other 6
Total 119

75

18 17

6
3
Grocery shop Specialist store Nearest chemist store Super market/ mall Other
Q.4 Which factor influence you to buy OTC product? (Rate the
following scale, where 1 is for strongly agree and 5 is for strongly
disagree)

Recommendatio Advertise Suggest

n from ment of Past Prescription by medical Effecti Brand
friend/relatives product experience from doctor store veness name price

Very highest 42 13 50 60 27 50 23 22
highest 52 61 31 30 48 33 30 27
Average 20 25 30 16 36 21 35 30
Lowest 3 17 6 6 5 10 23 20

Very lowest 2 3 2 7 3 5 8 20

Very highest highest Average Lowest Very lowest

61

60
52

50

50
48
42

36

35
33
31
30

30

30

30
27

27
25

23

23

22
21
20

20
20
17

16
13

10

8
7
6

5
3

3
2

2
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Q.5 Which medium of communication is most attract you to
purchase of OTC product? (Give rank 1 to 5)

1 2 3 4 5
Television 74 30 6 5 4
Magazine 10 15 47 30 17
Newspaper 24 42 27 13 13
Pamphlet 5 15 20 44 35
Internet 7 17 18 28 49

80
74
70

60

49
50 47
44
42
40 35
30 30
30 27 28
24
20
20 17 18 17
15 15
13 13
10
10 7 6
5 5 4
0
1 2 3 4 5

Television Magazine Newspaper Pamphlet Internet

Q.6 Do you believe that OTC product is safe to use?

YES NO

112 7

6%

YES NO

94%
Q.7 Do you agree about you should consult a doctor before using it?

Strongly agree 32
agree 18
Undecided 27
Disagree 39
Strongly disagree 3
Total 119

3%
27%
33%
Strongly agree
agree
Undecided
15% disagree
Strongly disagree
23%
Q.8 Do you follow the instruction which is given in the OTC
product?

YES NO

108 11

9%

YES NO

91%
Q.9 What would be your action if OTC medicine does not work or give result?

Increase the usage of product more often 13

Decrease the usage of product 29
Stop usage and consult the doctor 66

Stop usage and ask the retailer 7

Use for longer time 4

Total 119

70 66
60
50
40
29
30
20 13
10 7 4
0
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Inferential statistics-One way Anova

No. Hypothesis Value Result

H0a There is no significance difference between past experience and

education. .101 Accept
H0b There is no significance difference between Promotional offer and
education. .452 Accept

H0c There is no significance difference between Advertisement of the product

and education. .833 Accept

H0d There is no significance difference between suggestion by medical store

and education. .797 Accept

H0e There is no significance difference between prescription from doctor and

education. .893 Accept
Chi-Square

No. Hypothesis Value Result

H0a Monthly income and preferred time interval for buying is independent
to each other. .550 Accept

T- Test
No. Hypothesis Value Result

H0a There is no significant difference in recommendation from

friends/relatives for gender. .167 Accept

H0b There is no significant difference in Advertisement of product

for gender. .368 Accept

H0c There is no significant difference in Past Experience for

gender. .749 Accept
 Findings

 Most of the respondents prefer to purchase Pharma OTC products from Neighbour-hood
chemist store.

 When people suffer from minor disease most of them 30 per cent use home remedy and 25 per
cent consult to the doctor.

 Most of the respondents prefer to purchase OTC medicines as and when needed as responded
by 73 per cent of respondents.

 When asked about the factors that influence them in making the purchase decision, most of
respondents has said that early prescription from doctors influence them.

 50 per cent of respondents has ranked efficacy as most preferred feature of particular brand of
OTC products.
 85 per cent respondents perceive OTC products as safe to buy and use.

 People are well informed as 50 per cent of respondents are aware of the side effects of the
OTC products they take.

 Second highest proportion of respondents that is around 40 per cent has ranked brand name
as second most preferred feature of particular brand of OTC products.

 Among the medium of communication television is ranked first by around 75 per cent of
respondents as most appealing for advertisement of OTC products.

 The respondents that always follow directions given on drug package are maximum in
number.
 According to respondents, Non-prescription medicines can also cause addiction when
used for a longer period of time.

 25 per cent respondents said they are agree to take advice from doctor before using the
OTC product.

 When asked about what action you will take if an OTC medicine did not work within
reasonable period of time, 65 per cent respondents would stop using the product and
consult the doctor.