Pharmaceutical Companies, has targeted low price sensitive pharmaceutical market where demand with respect to prices may be due to several factors as:
1. Indian people typically attribute a large value to health improvement. Especially in cases of severe afflictions, patients will be prepared to spend large sums of money. Therefore priority on specialty product range like anti-asthmatic and cardiovascular is highly focused.
2. It is also observed that many people are (partially) insured against pharmaceutical costs. This affects the price of a pharmaceutical product when deciding on a therapy (Medical Expenses). Therefore Pharmaceutical Companies, strategies are in tune with it to think and start their own insurance aid to create a separate image in the market.
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3. It is also seen that most of the time Patients is not the key decision-makers in pharmaceutical selection, since physicians do not bear the cost consequences of their medication choice, they may be less price sensitive than their patients. In such a situation Cipla’s focus on only physicians to convince him from price factor to quality factor.
4. On the other side it is possible that an effect of marketing may be that it increases price sensitivity by providing information. But it may also increase brand loyalty, resulting in a lower sensitivity to prices.
Relative Importance of Cost Factor to Build a Brand:
| Factors | Impact Rating |
| Cost factor | 1 |
| Dosage convenience | 2 |
| Company logo | 3 |
| Side effect profile | 4 |
| Product availability | 5 |
| Investments on input given | 6 |
| Inadequate response | 7 |
| Other | 8 |
Above table depict about the relative importance of cost factor as compare to other factors. The analysis of the table concludes that defines the prescription trend and acceptance of the molecule or shift from one brand to another.
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Amongst all factors, the most important in our context is the cost factors that majority of Indian doctor’s stick to it and strategies and price revision from time to time of Pharmaceutical Companies, are commensurate to that. Here Company logo and dosage convenience has equal importance and Pharmaceutical Companies. Has strong market image that helps them for further strengthening market activities.