INTERNATIONAL MARKETING1

8/7/2019 INTERNATIONAL MARKETING1

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S U B M I T T E D B Y :

M E H A K A G G A R W A L

M B A I I I S E M

G U I D E : M R . A M A N C H U G H

INTERNATIONALMARKETING


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BIOTECHNOLOGY INDUSTRY

y The biotechnology industry is one of the fastest growing industry of the decade.Valued at Rs 100 crore in 1989, it is expected to be around Rs 3500 crore by theend of the century. A number of companies have entered the field, some withforeign collaborations, opening tremendous job opportunities. The privatesector has increased operations and leapfrogged over the DBT. Abiotechnologist need not worry about growth of opportunities in the next few

years.y Break biotechnology into its root words and you have

bio the use of biological processes; and technology to solve problems or make useful products.

y "New"Biotechnology the use of cellular and biomolecular processes to solveproblems or make products.

y Biotechnologycan be defined as the controlled and deliberate manipulation of

biological systems (whether living cells or cell components) for the efficientmanufacture or processing of useful products. The fact that living organisms haveevolved such an enormous spectrum of biological capabilities means that bychoosing appropriate organisms it is possible to obtain a wide variety of substances,many of which are useful to man as food, fuel and medicines.


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BIOTECHNOLOGY INDUSTRY

y Modern biotechnologyalso includes the use ofgene technology, whichallows us to move genetic material from one species to another.

y Biotechnology offers substantial economic, human health, agricultural, andenvironmental benefits, and has applications in a range of sectors ofindustry including mining, manufacturing, agriculture, biodiversityconservation and environmental management.

y Pharmaceutical is one of the most intense knowledge driven industries,which is continuously in a state of dynamic transition. The pharmaceuticalindustry is a complex matrix of processes, operations and organizationsinvolved in the discovery, development and manufacture of drugs andmedications. Currently, the pharmaceutical industry in India is a $ 10billion industry, growing at a rate of 8-9% annually. The output of Indianpharmaceutical industry ranks 4th in terms of volume and 13th in terms of

value and around 8% of the worlds drugs are manufactured in India. Indiahas 300 pharmaceutical companies of large and moderate size and another10,000 small and tiny firms. But 70% of the production is by the top 100larger companies.


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COMPANYS PROFILE

y Jubilant Organosys is an integrated pharmaceutical and life sciencescompany. It is the largest Custom Research and ManufacturingServices(CRAMS) player and a leading Drug Discovery andDevelopment Solution (DDDS) provider out of India.

y The Company has successfully positioned itself as a preferred partner

for leading global pharma& life sciences companies and has thecapability to deliver products and services across the pharma valuechain. Jubilant has geographically diversified manufacturingfacilities at ten locations worldwide. Together, these help theCompany cater to its customers in over 65 countries.

y Jubilant Organosy Limited, is an integrated Pharmaceutical & LifeSciences company . As India's largest Custom Research and

Manufacturing Services (CRAMS) player and a leading DrugDiscovery and Development Solutions provider out of India.

y It is constantly engaged in delivering value to its global customersthrough innovative technologies, products and services. Jubilantthrough its various subsidiaries in India and overseas is constantlyendeavouring to contribute towards meeting the unmet medical

needs and bringing down the healthcare costs globally.


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COMPANYS VISION


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COMPANYS PROMISE


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COMPANYS VALUES

y We will carefully select, train and develop ourpeople to be creative, empower them to takedecisions, so that they respond to all customers withagility, confidence and teamwork

y

We stretch ourselves to be cost effective andefficient in all aspects of our operations and focus onflawless delivery to create and provide the best valueto our customers

y By sharing our knowledge and learning from

each other and from the markets we serve, we willcontinue to surprise our customers with innovativesolutions

y With utmost care for the environment andsafety, we will always strive to excel in the quality of

our processes, our products and our services


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BUSINESSES

y Jubilant is the largest Custom Research and Manufacturing Services(CRAMS) Company and one of the leading Drug Discovery andDevelopment Services (DDDS) Companies of India. The Companysstrategic focus is to innovate, collaborate and accelerate the process ofdelivering products to the market for its customers which has resulted inJubilant being successfully positioned as an outsourcing partner of choice.

y The Pharma and Life Sciences business is the major building block of theCompany consisting of CRAMS, Pharmaceutical Products, Life SciencesChemicals , Nutritional Ingredients and Healthcare.

y Under the Agri and Performance Polymers segment Jubilant offersAgriculture Products like fertilizers & agrochemicals and PerformancePolymers comprises consumer products, application polymers, foodpolymers and latex segments.

y The Pharmaceuticals and Life Sciences Products and Services (PLSPS) isthe core business of Jubilant Organosys constituting over 65% of theCompanys overall business currently. During the last ten years, thisbusiness has grown almost 60 times, reflecting the Companys dedicatedfocus on being an integrated pharma and life sciences solution provider.


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PROBLEMS OF JUBILANT

y Despite the predictions of high revenues from the products of recombinant DNAresearch, certain problems exist that may affect or block the realization of theserevenues. First, severe competition exists in the Jubilant, as can be seen in thenumber of companies working on tPA. Only a handful of companies may besuccessful enough in their efforts to go to market with high-income products.

With the high cost of development of recombinant DNA products, the long timelag before a return can be made on investment, and competition from the largercompanies as they expand their internal efforts in biotechnology, it is likely thatmany of these small companies will not survive the next few years.

y Recently, concerns have been raised regarding the safety of geneticallyengineered products, especially genetically engineered organisms released intothe environment. Therapeutics produced by recombinant DNA techniquesappear less susceptible to negative social reactions. However, some products,

such as bovine growth hormone, which can be used to increase milk production,have recently faced public scrutiny. Also under attack are new, genetically baseddiagnostics and "gene therapies" for use in diseases such as Lesch-Nyhansyndrome. It is possible that recombinant DNA research in general will undergostronger regulation, thus making it more costly and time-consuming to developthese beneficial drugs.


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COMPETITORS OF JUBILANT

y Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is anintegrated, research based, international pharmaceutical company, producing awide range of quality, affordable generic medicines, trusted by healthcareprofessionals and patients across geographies. Ranked 8th amongst the globalgeneric pharmaceutical companies, Ranbaxy today has a presence in 23 of the top25 pharmaceutical markets of the world. The Company has a global footprint in 49countries, world-class manufacturing facilities in 11 countries and serves customers

in over 125 countries.

y GlaxoSmithKline Pharmaceuticals India: It is the Indian operating subsidiaryof giant pharmaceutical company, GlaxoSmithKline. Other than pharmaceuticals,GSKI has two businesses: Agrivet Farm Care (AFC) and Qualigens Fine Chemicals(QFC). AFC is a business activity of the company, which specializes in animal healthproducts. AFC manufactures and markets feed supplements and medicines forlivestock, poultry, sheep, equine, canine and aquaculture. Alternatively, QFC is adivision of GSKI that manufactures and markets a range of products required in alaboratory, including chemicals, diagnostic kits, glassware, culture media,instruments, filter papers and more. Glaxo SmithKline has four manufacturing unitsin India, located at Thane, Nasik, Mysore and Bangalore.


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OBJECTIVES

y To study about the various processes of imports& exportswhile exploring markets.

y To get detailed knowledge of the major industry playerswhich render services and products in this aspect.

y To find out the international market potential closely theexecution of deals of Import / Export products.

y To carry out a detailed research into the working of theInternational Business Division of JUBILANT

ORGANOSYS LTD.y To understand the depth of the sales channel for

JUBLIANT ORGANOSYS LTD.


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RESEARCH METHODOLOGY

y Data Collection: It consists ofprimary dataand secondary data.Primary data was collected by holding semi- structured and focusedindividual interviews of executives, Consultant and Personnel associatedwith the concerned with the International marketing division.

y Type of Research: The type of research used for our study was anexploratory research, as the objective of the research was to have in depth

understanding of the international marketing.The type of researchused for our studywas an exploratory research, as the objectiveof the research was to studythe various processes of imports& exportswhile exploring markets.

y The study undertaken is Descriptive studyas I studied who, what,where, when and how of this topic. The major purpose of descriptiveresearch is description of the state of affairs as it exists at present.

y The study undertaken is Communication Studyas the subjects werebeing questioned and their responses were being collected throughpersonal or impersonal means.

y The sample size is 100 respondents.


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STRATEGIES OF JUBILANT

y Jubilant's ability to produce generic medications at far lower cost thanits branded competitors placed the company in a strong position forinternational expansion, especially in less developed markets.

y First, pharmaceutical signified that the company will not look atdiversification into unrelated or even related areas and it will stick toits core area of pharmaceuticals.

y

Second, it stated their intent to be an international company. Thisimplied a focused and rapid expansion into foreign countries.y Third, it clarified that Jubilant, will be a research-based company,

which meant that Jubilant, will discover their own proprietaryinnovative drugs.

y Fourth, Jubilant advertisement: released in 2003, clearly state themission and its vision where it stated that: Better sets the standards,

innovation still remain the core-competence of the brand. Aresearch based company, internationally renowned for its research anddevelopment of novel Drug Development System.

y The message behind the campaign: to educate the consumersabout the brand, which is renowned for it innovative subjectivematters.

y Brand strategy: to educate the consumers about the brand and to

clear its strong intention of becoming a global brand.


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ENTRY CHANNELS FOR JUBILANT

y Being a pharmaceutical industry, jubilant uses licensing as their major entrystrategy because they produce generic products and they dont have a brandname. So licensing is the easiest and the most beneficial way to enter into newmarkets.

y Jubilant Organosys, which does contract research and manufacturing services,has linked up with the UAB Research Foundation, University of Alabama atBirmingham and Southern, a non-profit research organization. The tie-up

between the three will attempt to marry the respective academic and profitpursuits of these organizations, co-fund the development process and pave a wayfor a clear marketing strategy for the products under development.

y These three organizations will forge a collaboration that will focus on thetherapeutic areas of oncology (cancer), metabolic diseases and infectiousdiseases. The MoU signed between the three companies provides for selection oftargets from a joint pool of candidates, development work done by all threeparties, the US entities will use early research data to create jobs and securefederal funding, develop drugs to the pre-clinical or up to Phase-2 clinical trialsstage.

y At this stage, the joint venture has the option of entering into licensingagreements for co-development with pharmaceutical companies. Milestonepayments will be received, from such licensing agreements and when a drugfinally enters the market, more milestone payments and royalty sharing will bedone.


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EPRG APPROACH

y The approach used by jubilant is found to be Polycentrismy Jubilant Organosys has modern plants strategically located at Bhartiagram,

Gajraula (100 kms. from Delhi), Nira (near Pune, Maharashtra), Samlaya (nearVadodara, Gujarat) Nanjangud (near Mysore, Karnataka) and Maryland USA.Their strength in manufacturing is due to their constant effort to updateprocesses, implement safety measures and focus on consistency in productquality.

y

Research, Development and Application studies form the They have wellequipped laboratories and pilot plant facilities for the synthesis of organiccompounds and polymers and sophisticated instrumental facilities for completeanalysis of products and their structures A commitment to quality in all theoperations of Jubilant Organosys Limited is carried out through a rigorousmethod of checks and control. ISO 9000 standards have been implemented at alltheir plants and in all their processes. ISO 14001 Certification has also beengranted for achieving international environmental standards in plants atB

hartiagram, Nira and Nanjangud.y International Sales is a key driver in the growth of Jubilant Organosys. They are

exporting their products to leading companies across 60 countries. They exportto some of the most quality conscious customers in Europe and Americas and atthe same time to some of the most cost conscious countries in Asia. InternationalSales is focused towards regulated markets of North America, Europe and Japanwhich contribute 73% of their international sales.Their products touch different facets of life of their global customers.


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DATA ANALYSIS

1-Have you heard of Jubilant Organosys?

Interpretation:When I started the survey I was also looking for respondents whohad heard of Jubilant Organosys and pooled their resources on other instruments. But,all the respondents had known in one form or the other. It can be inferred that mostpeople have knowledge of Jubilant but their objectives may be different.Everyone knows about jubilant because its a big company and it is listed in the stocksas well all the respondent know in one form or another like as dominoes, jubilant

chemical, jubilant biosys,jubilant foods.


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Responses

2-What sort of Businesses do Jubilant owns?

Interpretation:: The histogram shows the various shares as the histogram represents the response as JivanjorAdhesives, Dominos, Organic compounds, chemicals and no idea respectively.


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3-In your view, what the share of different divisions of Jubilant ?

58%23%

19%

Dominos

Jivanjor

Chemical Mix

Interpretation:: 58 percent of the respondents said its Dominos, 23 said Jivanjor Adhesives while rest said a mix of chemicalsetc.


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4-How would you rate youre the opportunity to go for international marketing?

Interpretation: The response for going into the international market, the response were as the above histogram shows.


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5-Do you think jubilant faces a strong competiton while entering into a new market?

25%

75%

Competition Ananylsis

Strong competition Weak competition

Interpretation:- Jubilant does not face so many problems because its a precise market and its products are

distinguished & not common.


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6-What do you think which product of jubilant can do better in the international marketing?

Energy Drinks

50 %

DOMINO'S

20 %

INDUSTRIAL

CHEMICAL

10 %

FOOD

SUPPLEMENT

20%

NO. OF RESPONDENTS

Interpretation:- most of the people are influenced by energy drink than the otherones.


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7-What are the other energy drinks prevailing in the market which result as a competitor for jubilant?

Getorad

e

50%

Lucozade

40%

Glucon

0%

Known drinks (%)

Interpretition:- Only two brands are well known ieGetorade (50%) followed by Lucozade (40%)and a few also said Glucon D(10%). That means its a good market to enter as only twoestablished brands are there and jubilant can easily encash their brand name.


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CONCLUSIONS

y Jubilant Organosys Ltd (Jubilant) is the Indias largest manufacturer and exporter of specialitychemicals and currently exports more than 30 different products to over 50 countries.

y Jubilant has consistently moved up the value chain, by changing its business mix, from being acommodity producer, to a specialty player and developing niche products.

y Over last few years, it has integrated forward and evolved from being a predominant producer ofAcetyls (Organic Intermediates),to having a considerable presence in Performance Chemicals(Latex, Emulsions, Polymers, etc), Advance Intermediates (Pyridines and derivatives), FineChemicals and APIs.

y Jubilant has also ramped up its operations significantly to achieve global economies of scale. It

has the largest alcohol distillery, outside Canada and Brazil, with storage facilities of upto 142Mn litres.It currently ranks amongst top 10 players globally for most of its key products likeAcetaldehyde, Acetic Anhydride, Ethyl Acetate,

y Pyridine & Picoline based derivatives, Choline Chloride, V P Latex, Solid PVA, etc. It is also oneof the early movers in Pyridine and Picoline-based derivatives (largest portion of Jubilantsexports), where manufacturing processes and technologies are very complex.


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CONCLUSIONS

y Jubilant has an intrinsic manufacturing and cost competitiveness overmost of its global peers who produce Acetaldehyde through thepetroleum route (vulnerable to shocks in crude prices & trade shortages),as it relies on replenishable agro products (molasses), which is availablein abundance in India. Also, complete integration of manufacturingfacilities gives it flexibility for product selection as well as optimum useof its by-products and effluents.

y Per capita income is increasing leading to increase in expenditure onhealth care in India. The growth of middle class in the country hasresulted in fast changing lifestyles in urban and to some extent ruralcenters. Jubilant is one of the Indian manufacturers which is one of thelowest cost producers of drugs in the world. With a scalable labor force,Indian manufactures can produce drugs at 40% to 50% of the cost to therest of the world. In some cases, this cost is as low as 90%. Jubilantpharmaceutical industry possesses excellent chemistry and processreengineering skills. This adds to the competitive advantage of the Indiancompanies. The strength in chemistry skill helps Jubilant to developprocesses, which are cost effective. Being the lowest cost producer

combined with Food and Drug administration


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LIMITATIONS

y Lack of primary data/data redundancy

y Limited time frame

y Most of the contents collected was difficult to

understand because it was new for me to work in thisfield as the company is more into pharmaceuticalservices rather than direct products.

y It was tricky and time consuming to understand the

mysteries of marketing.


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OUESTIONAIRE

Question 1: Had you heard of Jubilant Organosys?

Ans Yes No

Question 2: What sort of Businesses do Jubilant owns?

Ans. Jivanjor Adhesives,

Dominos,

Organic compounds,Industrial Chemicals.

Question 3: In your view, what the share of different divisions of Jubilant?

Ans Dominos

Jivanjor Adhesives

mix of chemicals etc.Question 4: Howwould you rate youre the opportunity to go forinternationalmarketing?

Ans Low

Medium

High

Very High


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QUESTIONAIRE

QUESTION5 Do you think jubilant faces a strong competiton while entering intoa newmarket?

Ans Yes

No

QUESTION6 What do you thinkwhich product of jubilant can do better in theinternationalmarketing

Ans Energy Drink

Food suplimment

Industrial Chemical

QUESTION 7 What are the other energy drinks prevailing in the market whichresult as a competitor for jubilant

Ans Getorade

Lucozade

Glucon D


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BIBLIOGRAPHYBOOKS REFFERED:

Everett M. Rogers Diffusion of Innovations, 4th Edition, New York: Free Press,1995.

Philip Kotler, Principles of Marketing, Prentice Hall of India Pvt Ltd, New Delhi,1985

Kotler Philips, Marketing Management: 11th Edition, 2004,Prentice Hall of IndiaLtd., New Delhi.

WEBSITES:-

www.jubilant.com www.businessline.com

MAGAZINES:-

Business World. Times Now.

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