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A Study of the CRM Strategies Adopted by the Pharmaceutical Companies at the Level of Retailers (Chemist) in Delhi City


Affiliations
1 Department of Management, Mewar University, Chittorgarh, Rajasthan, India
2 Department of Management, Mewar University, Chittorgarh, Rajasthan, India
     

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Background- Pharmaceutical companies often focus their CRM strategies towards doctors only. An important aspect that they ignore in the pharmaceutical prescription process is the role of chemist. The prescription written by the doctor is honoured by the chemist and more often than always, the brand prescribed by the doctor may get substituted at the chemist level in case the same is not available or if the patient insists on buying a low priced version of the same drug formulation. Role of chemist is therefore crucial in the sales generation of pharmaceutical products. However the irony of the situation is that effective relationship management at chemist level is still weak with majority of the pharmaceutical companies in India. This paper tries to analyze the extent of use of CRM strategies by the pharmaceutical companies and their effectiveness with chemists in Delhi city.

Methods- A sample of 150 Chemists from different areas of Delhi city were selected through Non-probability method sampling method. The selection of the chemist was based upon Judgement Sampling technique and the criteria of selection was based on vicinity(within 1 Km) to a major hospital/Nursing Home/Practicing doctor. The responses generated were marked on a 5 point Likert scale ranging from “Strongly disagree (score=1) to Strongly agree(score=5).

Results: While MR visits, conducting retailers meet, giving discounts, schemes & offers on purchase of products, gifts such as pen, writing pad, mugs, T-shirts etc. are commonly used offline CRM tactics at retail level. The online tactics include the use of specialized software like ERP solutions, CRM solutions and SCM software. Chemists keep stocks only once the prescription is generated from the doctor, not on the recommendation of MR.

Conclusions: Chemists find incentive schemes offered by the companies as the most lucrative and effective CRM tactic. Often in the initial stage when prescription of a new product is generated and the stock of the same is not available at the chemist counter than it is substituted with some other brand having same or similar molecule. E-CRM strategies are still not very popular with the chemist/pharmacist.

 


Keywords

Medical Representatives(MRs), Pharmaceutical Firms, Chemist, Doctors.
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  • A Study of the CRM Strategies Adopted by the Pharmaceutical Companies at the Level of Retailers (Chemist) in Delhi City

Abstract Views: 498  |  PDF Views: 13

Authors

Gurpreet Kaur
Department of Management, Mewar University, Chittorgarh, Rajasthan, India
R. L. Tamboli
Department of Management, Mewar University, Chittorgarh, Rajasthan, India

Abstract


Background- Pharmaceutical companies often focus their CRM strategies towards doctors only. An important aspect that they ignore in the pharmaceutical prescription process is the role of chemist. The prescription written by the doctor is honoured by the chemist and more often than always, the brand prescribed by the doctor may get substituted at the chemist level in case the same is not available or if the patient insists on buying a low priced version of the same drug formulation. Role of chemist is therefore crucial in the sales generation of pharmaceutical products. However the irony of the situation is that effective relationship management at chemist level is still weak with majority of the pharmaceutical companies in India. This paper tries to analyze the extent of use of CRM strategies by the pharmaceutical companies and their effectiveness with chemists in Delhi city.

Methods- A sample of 150 Chemists from different areas of Delhi city were selected through Non-probability method sampling method. The selection of the chemist was based upon Judgement Sampling technique and the criteria of selection was based on vicinity(within 1 Km) to a major hospital/Nursing Home/Practicing doctor. The responses generated were marked on a 5 point Likert scale ranging from “Strongly disagree (score=1) to Strongly agree(score=5).

Results: While MR visits, conducting retailers meet, giving discounts, schemes & offers on purchase of products, gifts such as pen, writing pad, mugs, T-shirts etc. are commonly used offline CRM tactics at retail level. The online tactics include the use of specialized software like ERP solutions, CRM solutions and SCM software. Chemists keep stocks only once the prescription is generated from the doctor, not on the recommendation of MR.

Conclusions: Chemists find incentive schemes offered by the companies as the most lucrative and effective CRM tactic. Often in the initial stage when prescription of a new product is generated and the stock of the same is not available at the chemist counter than it is substituted with some other brand having same or similar molecule. E-CRM strategies are still not very popular with the chemist/pharmacist.

 


Keywords


Medical Representatives(MRs), Pharmaceutical Firms, Chemist, Doctors.

References





DOI: https://doi.org/10.25089/MERI%2F2018%2Fv12%2Fi1%2F180115