Sample Report on Viability of Zylorin Market in India

Abstract

The high levels of obesity in India have prompted the need for weight loss mechanisms. Zyloprim is a new product being launched in the market amidst high competition and limiting social and legal circumstances. For instance, the legal limitations are based on the food, poison, and drug policy that require strict quality control of these products before circulation. Socially, although there is permissiveness from the population towards the need to remain slim and healthy, many stereotypes surrounding weight could prevent proper penetration, especially in the rural Indian population. Generally, weight gain is stereotyped as a disorder for careless people and those from poor backgrounds and this prevents people from exposing their obese children and relative for fear of criticism and rejection.  This report provides an assessment of the Indian health industry and recommends to Astor Ridge Nutrition how to market Zylorin in India effectively. Generally, the study recommends a competitive and social strategy in this process.

 

TABLE OF CONTENTS

Abstract 2

1.0 INTRODUCTION.. 4

1.0 INTRODUCTION.. 4

2.0 Background. 5

3.0 Product overview.. 6

4.0 Macro-environment analysis. 7

4.1 Political environment in India. 7

4.2 Economic analysis. 8

4.3 Technological aspects. 9

4.4 Environmental aspects. 10

4.5 Social aspects. 10

4.6 Legislative aspects. 11

5.0 Recommendation. 11

Conclusion. 13

1.0 INTRODUCTION

A common saying states that living healthy is living wealthy. Obesity is one of the health problems associated with processed and fast foods like fried chicken and French fries. India is one of the countries affected by this epidemic as its population steadily becomes unhealthier because of obesity (Basu et al, 2014).On the contrary, India’s pharmaceutical industry is among the world’s giants in terms of volume of production. By producing high-quality drugs that are low in cost, the industry has gained global recognition and self-sufficiency (Chibilyaev, 1968). The industry has penetrated into international markets because of research development (R&D) activities. It has a market share of about 14 billion US dollars in the United States.

In 2006-07, pharmaceutical products from export were estimated to be about 6.23 billion. However, this increased significantly to about 8.7 billion in the year 2008-09. According to a report done by Price Waters House Coopers, India is among the top global pharmaceutical markets. By 2020, its market value is projected to reach 50 billion US dollars. The Department of Pharmaceuticals according to Chadha (2005) reports that there are about 4,655 manufacturing plants in India that are employing more than 345000 people. It currently has a market share of about 1-2% globally. According to the Overseas Development Institute research of 2007, a third of adults in India are overweight (Siddiqui, Kandala & Stranges, 2014). This number has since risen by 11% in 2008 even as 5% of the population remains currently obese.

According to Brosius (2011), diet pills are becoming popular and gradually replacing the need for exercise as a control measure against weight-related disorders. The availability of diet pills in supermarkets and pharmacies has made it easier for many people who wish to lose weight without changing their eating habits. This report will assess the viability of Zylorin, a weight loss pill, in the Indian market through the Indian market analysis.

2.0 Background

India has often been regarded as a dynamic commercial pool with the conventional business insight that is hereditary across all its pedigree. Currently, there is apparently conspicuous attractiveness in the Indian market situation as the country carves its growth. In healthcare, obesity is increasing overnight with its level approximated at around 8% (Singh and Kirchengast, 2011). Although it is evident that India’s rate of obesity is below that of the US due to its growing population, the Indian market represents a good market destination for Zylorin drugs. Expert reports state that obesity is mainly an urban incidence with a prevalence rate of 30 to 50 percent (Siddiqui, Kandala, and Stranges, 2014).

The Indian weight loss market is set to swell and the weight loss supplement, Zylorin from Astor Ridge Nutrition, can take a share of this. Zyloprim is a weight loss pill, that helps to burn fats, increase the rate of metabolism, stabilize the level of sugar in the blood, and suppress appetite. When accompanied by a healthy diet and extra physical exercise, the pill is the most efficient weight loss product reachable to a majority of customers. India has a huge potential for profits for companies involved in weight reduction. The current size of India’s anti-obesity market is projected at more than Rs 2,000 (Singh and Kirchengast, 2011). The cure for obesity includes fitness centers, surgical corrections, anti-obesity Ayurveda cures, and low-calorie food ingredients. Moreover, the Indian wellness sector that encompasses fitness, spas, and grooming products is set to grow to around Rs 95,000core (Singh and Kirchengast, 2011). The consumer buying habits and preferences in India have gradually changed and the healthcare market’s usual equilibrium is shifting to display a dynamic market full of opportunities. This leads to a growing demand for weight loss products like Zyloprim. Astor Ridge can invest in public health awareness program focusing on print and infomercial marketing efforts to correspond with the product’s retail sales.

The motivating force behind the growth of India’s anti-obesity market is the dramatic rise in the rate of obesity and the rising desire of the young and affluent population to look good. According to Brosius (2011), the encouraging demand and supply growth forces are projected to form a strong business for health providers in India’s anti-obesity market. The segment provides a considerable value for Zylorin in selected parts of the country, in bigger cities, and among people willing to spend to look fit and trim.

3.0 Product overview

Zyloprim is a drug manufactured by Astor Ridge nutrition for the purpose of weight loss.  argue that this drug enhances one’s diet and exercise programs by energizing their workouts and metabolism which leads to a maximum loss of fats. Zyloprim has chromium that is very helpful in the process of weight loss. This is because it turns the sugar in the body into energy and other than fats. Hoodia Gordonii is also a component of Zylorin and experts contend that it suppresses appetite safely.

Wright (2005) maintains that as the demand to look thinner becomes strong among men and women, weight loss supplements like Zylorin, together with good dietary behavior and physical activity will experience strong growth in the future. The growing purchasing power among many Indians has put the functional food and nutraceutical industries in a suitable position for expansion and this gives Astor Ridge Nutrition immediate returns on Zyloprim. As the level of Indian per capita income in metropolitans increases, the market for Zylorin will also grow (Krishna and Shariff, 2011). However, comprehensiveness in service delivery and lucid customer segmentation should be the main business priorities as Astor Ridge Nutrition launches its products in India. Besides, due to the high population and number of obese people, India becomes a potential market for the pill.

4.0 Macro-environment analysis

To understand the operational environment in the Indian market, a PESTLE analysis (political, economic, social, technological, environmental, and legal factors) was conducted. The reason for this analysis was to access Astor Ridge Nutrition’s viability in getting a share of the attractive pharmaceutical industry in the country. For the Nutrition Company to be successful, it should evaluate the following.

4.1 Political environment in India

When a multinational company wants to reach any market, it is important that the company familiarizes with the regulations and procedures put in place by the government of that country and its political nature.

Primarily, the Indian government is highly involved in major decisions involving the pharmaceutical industry. It has a variety of laws and regulations that govern the industry. These include the foods and poisons Act which requires an in-depth analysis of anything edible that is sold to the people. Such a product cannot be sold without meeting the minimum standards by the Indian Bureau of standards which is the key regulatory organ. Several legislations have been enacted in relation to patents in terms of brand names for drugs and the innovation or invention involved in the discovery of the drugs (Cohosh et al, 2008). Indeed, Lanjouw (1998) agrees that many drugs have been stopped from circulating for failure to meet patent requirements. The bureau has tasked the Drugs Administration commission with monitoring the pharmaceutical industry including price control for medicines and other drugs decided upon by the state (Prasad and Iyengar, 2008). This body reviews the prevailing mechanisms of drug regulation, by providing key guidelines regarding drug pricing and other related issues.

Secondly, there are new regulatory policies regarding tax, customs, and operational licensing. Multinational pharmaceutical companies that have a market share in India are expected to pay a higher tax percentage than existing local firms. This could affect the pricing of the drugs hence expected revenues. Thirdly, India is often associated with tribal clashes and terrorism especially between Muslims and other religions. Another good example is Gaza which experiences civil unrest. These political risks may have an effect on the market for Astor Ridge Nutrition drugs.

4.2 Economic analysis

India has one of the fastest-growing populations in the world and as of 2011; the country had more than 1.2 billion people (World Bank, 2011). At the same time, the country has an adult literacy level of 68%, GDP per capita average annual growth rate of 5%, and an average annual inflation rate of 6%. India is among the G-20 major economies. However, during the 2012-13 financial year, its economy dropped slightly by 5%. Because of the decrease of the economy, the government introduced capital controls on investments both corporate and individual. Astor Ridge should therefore analyze these capital controls to determine the effect of the changes on the company’s investment needs prior to product launch. Nevertheless, the GDP is good enough denoting a potential for better future demand in various drug categories in the country.

A study by UNICEF (2011) indicates that as of 2011, more than a third (33%) of India’s population lived below the poverty line of $1.25 per day (UNICEF, 2011), while over two thirds (68.7%) of India’s population live below 2 dollars a day (World Bank, 2011). The literacy levels imply that a large part of the population is illiterate and this increases the need for the company to invest heavily in drug use and awareness programs before, after, or during launching. The poverty levels dictate the pricing and costing strategy for drugs as well. In fact, because of poverty, the manufacture of generic products by the pharmaceutical industry of India was launched by the state, which resulted in the production of high-quality and low-cost drugs (Gupta, 2012).

In order for Astor Ridge to be successful in the Indian market, it should therefore develop a strategy on how to deal with the competition from generic manufactured products. If the Zylorin pill should be successful among people living below a dollar per day, that means it should cost less than one dollar. However, as it is now, the Zylorin pill is a brand product and it is expensive compared to generic products. Astor Ridge Nutrition should exploit mechanisms on how to improve their Zylorin pill and maximize its profit in the Indian market by strategizing on how to counter the competition from generic products.

4.3 Technological aspects

There has been the innovation of new technology that many companies are using to reach their target market. The internet can be accessed by millions of citizens through the social media platform in healthcare. According to a report released by the Internet and Mobile Association of India, there are around 243 million internet users in India (Gupta, 2012). The company can undertake this key step to ensure that clients access information about its products. The company has a website where all its products are advertised and clients across the world are able to get any information that they may require. The internet is a powerful information tool, which provides unlimited resources of information. Through the internet, Zylorin information can be published including how it helps patients to lose weight and where the pill is available.

Another technology is the aspect of customization. In essence, Astor Ridge Nutrition can practice customized treatments for their customer and patients where drugs are custom made for specific individuals. Customization is possible through the use of genetic information of the patient when taking the pill. This will help the manufacturer of the Zylorin pill to reduce side effects that might be caused due to incompatibility with a patient’s body. Customization of drug administration is a practice and innovation that is slowly gaining momentum in India hence, the earlier the adoption, the better for the firm and its customers.

4.4 Environmental aspects

Because of the growing environmental agenda, pharmaceutical industry stakeholders in India have become aware of the importance of being protective in this field (Yadav and Garg, 2011). Companies have come up with marketing strategies that link their objectives with those of the environment. It is important for Astor Ridge Nutrition to assess the environmental factors associated with its drug in the Indian market. One of such factors is waste management related to its drug. Related to this are packaging requirements by environmental policy implementation agencies.

4.5 Social analysis

Socially and demographically, obesity in India is a big issue among women in the reproduction ages. Research done by National Health Survey states that the percentage of women between the ages of 15 and 49 years is high with obese conditions. It is during this age bracket that many women are more conscious of their looks. It is important for Astor Ridge Nutrition to reach these women without overstepping the regulations made by the government. Astor Ridge Nutrition Company can organize seminars to educate women with obesity on how the pill works and where to get the pills. This is because, as earlier alluded, obesity is highly stigmatized in India meaning that affected people may not have the audacity to go to rehabilitation centers. This may require an extra initiative such as seminars or physical movement to villages where the people reside to administer the drug for quick market penetration.

According to Bhardwaj et al (2008), the increase in obesity among the Indian population has been associated with health risks. Basu et al (2014) contend that individuals who are obese in India are at a very high risk of getting diabetes II. Because of this, the population is more concerned with ways how to lose weight to avert any possible health problems. This is a crowded market and for Astor Ridge Nutrition to be successful, it should produce pills that are of high quality and have minimum side effects. Patients are becoming more informed and they will only use their money on products that are effective and have no side effects.

4.6 Legislative aspects

Many governments have put in place measures that ensure there is a procedure on how things are done. In India, every drug manufactured is subject to regulation. This ensures the safety and efficiency of the drug industry. For instance, much of the litigation in India involving patent issues for drugs has prompted the government to formulate a law requiring all manufacturers to provide clearance documentation from the intellectual property department for patent ownership matters before licensing and registration of a drug. India has ratified international law (federal laws) in relation to nutrition, health, drug administration, food, and poisons. This means that any new drugs entering the market must be standardized through the ISO certification documentation for ease in distribution. This also implies that the manufacturer should be ready to reveal the technology behind the drug including chemical composition and ingredients yet this can be dangerous for competition because of divulging confidential information. The government has mandated the law enforcers and the court institutions to execute tax evaders.

For the Zylorin market to be successful in the Indian market Astor Ridge Nutrition should ensure that their drug passes all the regulatory tests to avoid legal cases that may result in losses for the company due to court cases. A health and safety concern is another factor that Astor Ridge Nutrition should consider. Every government has rules and regulations that govern its health sector. There are several laws that have been put in place by the Indian government to govern the health sector. The question that Astor Ridge Nutrition management should try to answer is how the company will be able to observe the laws put in place in relation to health and safety concerns.

5.0 ­Recommendation

Obesity is a problem because many people are eating processed foods and fast food. Many people find it hard to choose a healthy diet today, given that people are too busy and want to consume food that is easy to cook. India is among the countries with the highest number of obesity cases in the world. In order for Astor Ridge’s Zylorin pill to be successful in the Indian market, patients should be advised not to prescribe drugs for themselves just because they want to get well faster. This is because there are some drugs that contain substances that are harmful to the body. Before a patient uses any drug, it is important for the patient to consult their physician first so that they are advised on what to do. In case a patient is using a drug and experiences any side effects the patient should also consult their doctors. That aside, the following recommendations will help the company launch its product in the Indian market effectively.

First, ensure that their medicine is customized. This is because different patients react differently to different drugs. Some overweight patients suffer from hypertension while others have diabetes. According to Bhardwaj et al (2014), India has the highest number of diabetes mellitus patients in the world. Therefore, Astor Ridge Nutrition should manufacture pills for each specific patient to avoid side effects by looking at their genetic composition and determining which medicine is suitable for a patient.

Astor Ridge’s Zylorin pill is not sold in major pharmacies but can be found on their websites, this has reduced the accessibility of the drug to the common patient. In order for the company to reach the common patient, it should avail the pill in the necessary outlets where patients can easily access them. Many pills help the patients to lose weight in the Indian market. For Astor Ridge Nutrition to be successful the company should sell its drug at a cheaper price because many drugs manufactured in India are generic and are much cheaper.

Secondly, Astor Ridge Nutrition should study the percentage of obese people and how to determine how many are actually not comfortable with their weight. By studying these, the company is able to understand the market in the country. Next, it is important for Astor Ridge Nutrition to purchase low-cost manufacturing facilities in order to reduce the cost of production of the Zylorin pills. This is because the government subsidizes the price of medicine in India and patients are able to access medicines at a cheaper price. For the market of Zylorin to be successful, the manufacturer should also follow the regulations set by the government for it to be successful.

6.0 Conclusion

In conclusion, the Indian market is dynamic and requires dynamic strategies as well. For instance, the political, economic, and social aspects communicate a lot. In the political sense, India is a destination of varying expectations on peace and general stability having in mind the massive tribal clashes among the poverty-stricken villages. Another key concern established about the Indian market is the haphazard nature of legislation in relation to food, poisons, and drug administration with legislators wishing to control the political divide in their jurisdictions. Many of the legislations however involve patents (Lehman, 2003). Another key observation in the market is about the flooded nature of the health and pharmaceutical industry. Generally, India is the world’s top exporter of drugs according to Chadha (2005) indicating that they can afford low-cost production and distribution of both raw and finished goods in the industry. This makes penetration of new market entrants (especially foreign) rather difficult.

Economically, the country is made of a high population of members affected by abject poverty, more than two-thirds unable to raise $2 dollars every day. As a result, obesity is high because of malnutrition creating a very good market for Zylorin products that however may not compete with the local and existing drugs based on cost and pricing leaving Astor Ridge Nutrition with one solution, to lower the cost of the drug even though it may suffer losses. Similarly, obesity is full of stereotypes and the affected people may fear getting out for treatment meaning that more viability can be assured if Astor Ridge Nutrition Company considers moving around within the villages to get patients and treat them in a rather confidential manner. Is Astor Ridge Nutrition Company ready for this as it launches the Zylorin drug in India? If yes, then viability is assured but if the answer is not affirmative, then the market penetration potential is quite low.

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