Dr Reddys Marketing Strategy & Marketing Mix (4Ps)
Published in Products category by MBA Skool Team
Marketing Strategy of Dr Reddys analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Dr Reddys marketing mix, help the brand succeed in the market. Let us start the Dr Reddys Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Dr Reddys marketing strategy can be explained as follows:
Dr Reddys are one of the leading pharmaceutical companies in the world. Dr Reddys Laboratories businesses are divided in three categories- global generics, pharmaceutical services and active ingredients, proprietary products and others. Dr Reddys offer generic medicines, branded formulations, pharmaceutical ingredients, biologics, specialty products and new chemical entities.
Dr Reddys are the leaders in the global generics segment. They sell over 200 high quality generic medicines in their marketing mix which include capsules, tablets, injectable, and topical creams. This is the largest part of their portfolio. They also have a strong portfolio of OTC medicines- Cetrine, lbuclin, Novigan, to name a few.
Dr. Reddy’s Laboratories are one of the largest active pharmaceutical ingredients (API) producer in the world. They cater to clients in Europe, The US, Latin America, Japan, Korea etc.
Through years of experience and technical skills they have made peptides, steroids and oncology API their strengths. Dr. Reddy’s Laboratories has a huge Biologics division. Biologics are large molecule protein therapies which are required by diseases like cancer or autoimmune disorders. Dr Reddys proprietary products business develops treatment solution for patients suffering from neurological and skin diseases. This business generated 3% of the net revenue for the company in 2016.
Image: company website
Dr Reddys Price/Pricing Strategy:
Below is the pricing strategy in Dr Reddys marketing strategy:
Dr Reddy’s supply medicines only against pre-payment or letters of credit. Generally, the patented medicines which are about expire witnesses an increase in price.
The pharmaceutical sector is regulated and the pricing can get affected by the policies and regulations imposed by the government or any other authority. Price control is done to widen healthcare provisions and help the people.
The cost of generic medicines is kept reasonable due to the operational excellence of Dr Reddys. There are price controls by the National Pharmaceutical Pricing Authority which compels the company to sell some generic medicines on a particular price. Biologics are very expensive and can impose a significance burden on the payer. API business’s prices are volatile as the prices of raw materials keep fluctuating and it forms a major part of the operating expenses of API business. This gives an insight in the pricing policy of the pharmaceutical company’s marketing mix.
Following is the distribution strategy in the Dr Reddys marketing mix:
Dr. Reddy’s Laboratories is a global organization with decentralized manufacturing with a deep and wide market reach. The major markets served by Dr Reddys are USA, India, Russia, United Kingdom, Venezuela and Germany. They also reach out to markets in South Africa, New Zealand, Brazil, China, Australia and ASEAN countries. Dr. Reddy’s Laboratories have 18 manufacturing units, 2 Technology Development Centers and 4 R&D in India. The major international manufacturing facilities of the company are in Tennessee, Louisiana, New York, Mexico and Mirfield in U.K.
Dr Reddys are constantly trying to make better use of their resources and also reduce the carbon footprint of their products. To make their supply chain more efficient they initiated the ‘ i^2- intelligent integration’ project. They embedded SAP APO and SAP ECC to their existing system.
With the success of this project they are able to maintain On Time In Full delivery in all their key markets.
Dr Reddys Promotion & Advertising Strategy:
The promotional and advertising strategy in the Dr Reddys marketing strategy is as follows:
Dr. Reddy’s Laboratories have a team of sales representatives who connect with the distributors and the customers. They are trained as per the standard operating procedure. Their marketing and soft skills are honed so that they communicate effectively with the customers. Dr Reddys are provided with inputs on medical background and science and therapeutic profiling. Strict codes and standards are followed regarding corporate branding, use of logo etc.
Seminars, symposium and other customer relationship management activities activity are hosted by the company. Dr Reddys make sure the promotional and patient education literature is checked by the product management team and Tea Medical Affairs.
The marketing team is constantly in contact with the doctors through doctor meets. They seek their feedback and share the knowledge built up by Dr Reddys with them. The Medical Affairs team answer queries about the products from doctors within 48 hours. The company also engage with its customers through social media like Facebook, Twitter, YouTube. Hence, this covers the Dr Reddys marketing mix.
About Dr Reddys Laboratories:
Founded in 1984 in India, Dr Reddys Laboratories is one of India’s largest multinational pharmaceutical company. They are present in 26 counties with a headquarter in Hyderabad, India. Dr. K Anji Reddy founded Dr Reddys Laboratories. He was a scientist and an entrepreneur with a vision of making medicines affordable in India. Mr. K Satish Reddy is the current chairman of the company. Over the last three decades Dr Reddys has taken a number of initiatives from product development to helping doctors to deliver good health and quality service to the patients.
They have a heart in their logo which symbolizes empathy for patients and partners. The circles on the right of the heart symbolizes the dynamism they have in their work. The driving force behind the actions and behavior at Dr Reddys is its slogan “Good health can’t wait”. Their commitment to the slogan and the values of the company go beyond just molecules and medicines.
They have a range of programs to help patients manage their disease. They have a Lifestyle support program for cancer patients, Diabetes awareness program, IBD education program etc.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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