Managing New Business Initiative

A Pharmaceutical Company focusing on rural areas.

IDEA BACKGROUND:

Our idea is to start with a low profit earning pharmaceutical company which would specifically focus on rural area’s health problems.

Although urbanization continues, around 70% of India’s population still resides in rural areas. We note that this untapped potential is now the next volume driver for the industry but foreign companies looking to access rural markets face many hurdles such as communication, transport, marketing and a high penetration of spurious drugs so there is tremendous opportunity for local players.

The target market here is huge but target customer base doesn’t allow to aimaiming for high profit per unit. So, company’s focus could be kept for selling high volumes across the target market. While focusing on high volumes one of the major problems would be related to the proper distribution channel.

CUSTOMER NEED:

Before entering into the main theme I need to stress that though we have come too far in terms of development of the country but approximately 73% of the country still constitutes of rural areas.

This huge percentage is India’s cultural wealth but at the same time is a complex web of social problems too. And one of such major problems is health.

Studies suggest that water borne diseases such as malaria, diarrhea, and dysentery alone kill thousands of people every year in rural areas.

In urban areas we have a good access to cure for diseases but rural areas still lack that immediate access and that is one of the reasons why mortality rate in rural areas is much higher than that in urban areas.

MARKET ENVIRONMENT:

CONSUMER SEGMENT:

Initially company could focus on rural, underprivileged, tribal and displaced tribal population of India.

The accent in the beginninginitial focus will be on infectious diseases that are more prevalent and are also cheaper to treat. But company will be eyeing the spread of lifestyle diseases such as diabetes and...