Marketing Mix Of Cipla and 4Ps (Updated 2024)

The Marketing mix of Cipla analyses the 4Ps of Cipla, including the Product, Price, Place, and Promotions. Cipla is a multinational company of Indian origin associated with the biotechnology and pharmaceutical industry. It is a public company formed in 1935 by its founder, Dr K.A Hamied. The company serves globally through its headquarters in Mumbai. In terms of market value, it ranks at 42nd position in India. Cipla uses knowledge and technology to develop life-saving drugs and has committed to providing medicines at affordable rates. Brand Cipla has done a commendable job of making medicines accessible for cancer patients. Some of its competitors are as follows-

• Ranbaxy Labs
• Lupin
• Dr Reddy’s Laboratories
• Sun Pharmaceuticals

Cipla Product Strategy

Cipla has India’s most significant product kitty and a vast and varied product range. It includes 1500 products for therapeutic segments and nearly sixty dosage forms. The company provides services like commissioning, plant engineering, distribution channels, marketing strategy consulting, and technical know-how support and transfer. It was the first to manufacture an oral iron chelator in the world.

Cipla offers customers a diverse range of products across various therapeutic categories.

The new Product Mix of Cipla in 2023 is as follows (Source).

1. Anti-Allergic Medications: Cipla produces a variety of anti-allergic drugs, such as Loratadine and Levocetirizine, in different forms, including tablets and syrups.
2. Anti-Asthmatic Drugs: The company provides a range of products for asthma treatment, including combinations of Theophylline and Etophylline in tablet forms.
3. Antibiotics: Cipla’s antibiotic range is extensive, covering medications like Azithromycin, Cefuroxime, Cefixime, and Amoxicillin in various formulations such as tablets, suspensions, and injections.
4. Other Therapeutics: The company also manufactures medications for various other therapeutic needs, including but not limited to antifungal, cardiovascular, dermatological, and gastrointestinal drugs.
5. Generic Products: Besides branded medicines, Cipla has a significant presence in the generic pharmaceutical market, offering various generic drugs across different therapeutic areas.

Cipla Place Strategy

Cipla exports several of its products to nearly one hundred and sixty countries, including the United States and numerous countries in the Middle East, Latin America, Australia, Africa, and Europe. Its distribution policy for global companies includes tie-ups with other proficient companies so that it and its customers can take advantage of their distribution system. India has thirty-five manufacturing plants in places like Goa and Patalganga. The company has several research and development units for developing new and existing drugs. It has corporate offices to deal with customers. Cipla has a strong distribution network in the retail market, and its various brands of medicines are readily available at medicinal stores.

Cipla’s place strategy is a crucial aspect of its sales, service, and marketing mix, reflecting its commitment to accessibility and global reach. Here are five key points:

1. Global Presence: Cipla has a robust global presence, with operations in over 80 countries. This broad geographical reach ensures that its pharmaceutical products are available worldwide to a diverse and extensive customer base.
2. Strong Distribution Network: The company maintains an efficient distribution network, which includes partnerships with various distributors, hospitals, and healthcare providers. This network ensures timely delivery and availability of its products in different markets.
3. Manufacturing Facilities: Cipla has multiple state-of-the-art manufacturing facilities in India and abroad, which adhere to strict quality standards. These facilities enable the company to meet large-scale demand efficiently.
4. Online and Digital Platforms: Recognizing the growing trend of digitalization, Cipla has ventured into online platforms, both for information dissemination and for facilitating online sales of its products, enhancing accessibility for consumers.
5. Strategic Collaborations and Partnerships: Cipla frequently collaborates with other pharmaceutical companies and healthcare organizations. These alliances help in expanding its reach, especially in markets where it does not have a direct presence.

Cipla Pricing Strategy

Cipla is the leading healthcare company in India and aims to provide access to high-quality medicines at affordable rates. To meet the needs of its patients, it has decided to keep an economical and reasonable pricing policy. It aims to make life-saving drugs accessible to every needy patient. Therefore, it has kept a minimum pricing policy for those drugs. Its efforts have reduced the prices of several vital medicines in the market. It has maintained a competitive pricing policy for exported products and services to compete with its competitors successfully.

Cipla’s pricing strategy combines market competitiveness, value-based pricing, brand name, and social responsibility. Here are the critical elements of their approach:

1. Competitive Pricing: Cipla is known for its competitive pricing strategy, especially in the generic drug market. By offering cost-effective alternatives to branded medications, Cipla ensures affordability and accessibility for a broader patient base.
2. Cost-Plus Pricing: The company often adopts a cost-plus pricing model, where the selling price is determined by adding a specific markup to the cost of producing or acquiring the product. This strategy ensures a consistent profit margin while remaining competitive in the market.
3. Value-Based Pricing: Cipla also employs value-based pricing for its innovative and specialty drugs. Prices for these products are often set based on the value they offer patients, such as improved health outcomes or the novelty of the treatment.
4. Tiered Pricing for Global Markets: Recognizing the economic disparities in different regions, Cipla uses a tiered pricing strategy for global markets. This means adjusting drug prices according to each country’s economic conditions and healthcare infrastructure, enhancing accessibility in lower-income regions.
5. Social Responsibility and Accessibility: Cipla strongly focuses on social responsibility, often reflected in its pricing decisions. The company has been known to reduce prices significantly for essential drugs in developing countries, aligning with its mission to ensure that no patient is denied life-saving medications due to cost constraints.

Cipla Promotion Strategy

Cipla has undertaken various promotional activities to market its products. Its tagline is Caring for Life, and this has become its mission; hence, this idea has been incorporated into its employees, processes, marketing strategy, mix, and products. To make a difference, the company contributes to society through themes like education, health & sanitation and by creating opportunities for decent livelihood. Cipla provides free-of-cost medication to terminally ill patients with cancer through the Palliative Care Centre. It has developed strategies like selling anti-aid drugs at only 1/3rd of the price to developing countries like South Africa. It has tie-ups with several global generic companies like Mylan and Watson, and this helps it to hone its own manufacturing, development, and marketing skills. It has also initiated a No Touch Breast Scan program for females.

Cipla believes in providing employees with the best available opportunities and has provided them with employee benefits. Cipla has used commercial television and print media advertisements to advertise some of its brands and products. Cipla-I-Pill was its most advertised product of 2007.

Some Recent Video ads and Print ads of Cipla are:

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