Lupin Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Lupin through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Lupin Product Strategy:
Lupin is one of the leading pharma companies in India. Lupin’s businesses can be classified into, Formulations both generic and branded; API’s; Advanced Medicine Delivery Systems and also Biotechnology. It is one of the largest producer for medicines that cure tuberculosis. And the Lupin company has a major market shares in the medicines that cater to segments like - Asthma, CNS, GI, Pediatric, Anti-Infective and NSAID. All these offerings in the product mix are a part of the marketing mix. Also Lupin holds a key position in other segments like Cardiovascular and Diabetology. Its API business is the key driver of revenues and market share and Lupin targets to develop 4 to 6 API’s per quarter. From 2014 it is developing API for third party businesses in advanced markets. Its advanced medicine delivery system focuses on creating technologies that provide clinical technology and facilitate a good patient experience. Lupin’s biotechnology division develops biosimilar’ s addressing oncology, diabetes and other therapies.
Image: company website
This concludes the product strategy in Lupin marketing mix & strategy.
Lupin Price/Pricing Strategy:
Below is the pricing strategy in Lupin marketing mix strategy:
Lupin has several product offerings and hence has a diverse price range. Prices of pharma products are regulatory controlled in India unlike America where medicine manufacturers are free to price their product.
Many developing countries across the globe uses price, volume and cost-effective controls to mitigate any price increase in medicines. In India National Pharmaceutical Pricing Authority sets, the maximum price above the retail price of leading company. And it allows a 16% margin to retailers while fixing the ceiling price. So Lupin prices its products differently in different countries of its operations based on the policies of those countries. So safe to say a differential pricing. Before the frequent changes by NPPA it used to have a cost based pricing. Lupin gets nearly 81% of its revenues from formulations and rest from the API’s. All this gives an insight in the how the company prices’ its products as a part of its marketing mix.
Read more about Lupin
Lupin Place & Distribution Strategy:
Following is the distribution strategy in the Lupin marketing mix:
Lupin is present across many developed and developing markets in the world. Its major markets include India, USA, Japan, Europe, Mexico & Latin America South Africa, Philippines and Australia. Lupin’s medicines reaches nearly 70 countries in the world and have a strong distribution networks. It also emphasises on large sales force teams. Lupin enters into strategic alliances with the local players in foreign markets to capitalize on their strengths like strong distribution networks. Its partnership with Novartis, Eli Lilly and Merck Serono are some examples for this strategy.
Lupin has corporate offices in many locations where it operates and in India it is located at Bandra, Mumbai.
Lupin Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lupin marketing mix is as follows:
Lupin collaborates with other players in the industry for co-promotional activities. Its agreement with Boehringer and Eli Lilly are some of the examples for this phenomenon. It has a strong field force for each of the business units it is working in. for example in diabetes related segment Lupin holds strong 400-member field force. Its sales representatives go to doctors and promote Lupin’s medicines. As physicians are more important in prescribing medicines to patients most or all the marketing activities are targeted towards them. It promotes the brands to doctors and pharmacy stores. It gives good sales promotions to existing and new clients with customized propositions to each of those customers. The logo of the company is Lupin flower and it is named after the same. The reason for this is the traits of the lupin flower like nourishing the land where it grows and Lupin’s objectives are closely related to this phenomenon. It provides information about the company in its website and press releases. Hence, this covers the marketing mix of Lupin.
About Lupin:
Founded in 1968, Lupin is a Mumbai based transnational pharmaceutical company and is now the seventh largest in terms of market capitalization and tenth largest in terms of revenues in generic pharma industry. Founded by Desh Bandhu Gupta who is then working as a professor at Birla Institute, BITS- Pilani.
Lupin was started with a motive to produce medicines that cure life threatening diseases and more importantly that those have high social significance. Having expanded its operations over the years in several countries across the world both developed and developing, Lupin is now recognized as the fastest growing generic pharma company in the world.
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