cipla

BYNAVNEET KUMAR 1076088

10/6/2012

Introduction :
Cipla Limited is a Indian pharmaceutical company, probably bestknown outside its home country for pioneering the manufacture of low-cost anti-AIDS drugs for HIV positive patients in developing countries. It has played a similarly prominent role in expanding access to drugs to fight influenza, respiratory disease and cancer. Founded by nationalist Indian scientist Khwaja Abdul Hamied as The Chemical, Industrial & Pharmaceutical Laboratories in 1935, Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control, depression and many other health conditions, and its products are distributed in virtually every country of the world.

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Distribution Channel :
Product distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. Channels and Intermediaries Distribution of products takes place by means of channels. Channels are sets of interdependent organizations (called intermediaries) involved in making the product available for consumption . Merchants are intermediaries that buy and resell products. Agents and brokers are intermediaries that act on behalf of the producer but do not take title to the products.

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Channel Design A firm can design any number of channels. Channels are classified by the number of intermediaries between producer and consumer . A level zero channel has no intermediaries. This is typical of direct marketing. A level one channel has a single intermediary. This flow is typically from manufacturer to retailer to consumer. Distribution Types Intensive distribution means the producer's products are stocked in the majority of outlets. This strategy is common for basic supplies, snack foods, magazines and soft drink beverages. Selective distribution means that the producer relies on a few intermediaries to carry their product. This strategy is commonly observed for more specialized goods that are carried through specialist dealers, for example, brands of craft tools, or large appliances. Exclusive distribution means that the producer selects only very few intermediaries. Exclusive distribution is often characterized by exclusive dealing where the reseller carries only that producer's products to the exclusion of all others. This strategy is typical of luxury goods retailers such as Gucci.

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Manufacturing
The manufacturing of products of CIPLA are done in 5 states & 1 union territory comprising of : Maharashtra Madhya Pradesh Daman & Diu Goa Sikkim Himachal Pradesh Their R & D division is situated in Mumbai and Bangalore.

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Orissa division :
The Orissa division of cipla is headed by Saroj Kumar Mohanty. It is the head office of the whole Eastern Division comprising of 2 states. There are 18 divisions of Cipla under each head office. Location- AB Complex,Pratapnagari,Bhanapur,Cuttack Mobile- 08018249706 email-mohanty@cipla.com CIPLA does not follow a particular system of distribution it depends on the coverage area and basically the demand.

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Management Hierarchy
Manager

Sales manager

Business manager

Territory manager

Management

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DISTRIBUTION SYSTEM :
Bhubaneswar
Company Depot

Direct selling Mahanadi coal field ESI hospital Rourkela Steel Plant

Distributor

small towns sub-stockist are there

Retailer

Corporate supplies are done through local stockiest.

N.B- C& F agent is CIPLA

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Distributors & Retailers in Bhubaneswar

Dr. Acharya Pharmaceuticals, Behind Keshari cinema hall MAA enterprises, Satya nagar Near S complex Ravindra medicals, Ashok Nagar

Main distributorCD Associates, Ashok Nagar Mr. Nitin Singhania, contact details- 0674-6544968/2535886 RetailersSurya life care Apollo pharmacy

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Products of Cipla Asthalin Ineva Ciplox Norflox Thivashthelin Urima axis Oxicip Cerovin Inover Foracot Mysoprost There are over 2000 products manufactured by cipla.

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Product pricing
Price in the market differs in 10% approx. according to the drug controller in the MRP

Peak season
Market demand remains very high in the rainy seasons i.e. AprilAugust As the company produces life saving drugs therefore the demand remains high in the market

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Payments
Purchase order is taken in installments and it is taken by the sales manager. 50% payment is done at the time of order supply and it is done through cheques. The company gives a time limit of 20 days for the rest of the payment

Turnovers
Turnovers of the distributors goes around 5-6 lacs per month

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Conflict resolution

Stockist interface at the time of dealing with the stockist Due to competitors if there stock falls distributors deal with the situation If products are returned it is given in credit note Payment conflict- DD is given by the stockist

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DISTRIBUTOR & RETAILER

Retailer gets direct supply from the distributors.

Order books are maintained by the retailers in order to specify the number of products they are going to purchase from the distributor. At the end of month sales agent of distributor comes takes the data from the order book and the necessary information is passed to the distributor and vice versa to C & F in case the distributor dont have the stock. e.g.- Medicine norflox if we take suppose there is a minimum supply of 4 box but sometimes the quantity may increase or decrease as per the customer demand.

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Market share percentage of retailers of cipla is 20% Transportation of products from distributor to retailer is done by transporters which can be appointed by distributors or retailers according to the convenience.

TRANSPORTER - BHUBANESHWAR ROADLINES, GATI,PHOENIX

A letter named as LR is maintained between distributors and transporter so that there is no problem with the accurate distribution of goods at the defined place .

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There are two types of drugs selling procedureScheduled drugs- here government fix the price of the products Non- scheduled drugs- price fixation is done by private parties Schedule drugs marginWholesaler- 8% retailer-16% Non schedule drugsWholesaler- 10% retailer-20% NOTE- the supply is done within 24hrs of order received.

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Supplies are done to hospitals also like Ayush, APOLLO, ADITYA CARE THROUGH QUOTATAIONS AND MEMORANDUM from retailers. Market demand fluctuates in the retailers market depending on the season as it was same with distributors. If the supply gets low for a particular product then substitute medicines are provide according to the customers preference. The stock remaining is kept on hold and if it reaches expiry date it is returned to the company. In that case company provides credit note to the retailer on the behalf of medicines which has been returned.

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Calculation of stock remaining(Sales closing stock) * 2.5% PAYMENT SCHEMEPayment is either through cash or cheque Distributor C& f- 21 days to the maximum Retailer- distributor- 25 days minimum and maximum 2months In case during the payment if the cheque gets bounced the supply gets closed for 3-4 months as penalty.

NOTE- In every state there is only one transporter and in Orissa it is situated in Cuttack road . Cipla is the only pharma company who deals with single transporter.

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In cipla life saving drugs has a margin of 8% for distributor and 12% for retailers For capsules and tablets distributor gets 10% margin and retailer 18% Inhalers produced by CIPLA has a margin of 400%-900% In terms of profit with retailers and distributors per annum. Market share of CIPLA in terms of competition with other companies in Orissa is 70%. Market demand of medicines are understood by retailers through the prescriptions for certain specific medicines.

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From the total percentage of 70% retailers gets 20% from the share. CD ASSOCITES is the main distributor who covers the maximum area in terms of retailing supply. Even distributors also contact CD ASSOCIATES when there is some problem in the channel.

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Retailers: Hari om medical store-shaheed nagar Mr. Sudam Subuddhi-9437922444 Suryansh life care- Near sainik school

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THANK YOU.