A Comparative Analysis of Brand Management of Cipla and Sun Pharma

Abstract

This research presents a comparative analysis of brand management strategies employed by two leading pharmaceutical companies, Cipla and Sun Pharma. The study aims to provide insights into how these companies manage their brands in the highly competitive pharmaceutical industry. The analysis encompasses various dimensions of brand management, including market share, brand equity, product portfolio, global reach, and innovation/R&D strategies. Data was collected from primary and secondary sources, including financial reports, industry publications, and customer surveys. The findings reveal significant differences between Cipla and Sun Pharma in terms of market share, brand strength, product diversity, international presence, and innovation focus. These differences highlight the unique approaches each company takes in managing their brands and positioning themselves in the market. The research contributes to the understanding of brand management practices in the pharmaceutical industry and provides valuable insights for practitioners and scholars alike.

Introduction

I. INTRODUCTION

In the dynamic and highly competitive pharmaceutical industry, brand management plays a critical role in shaping the success and market positioning of companies. Cipla and Sun Pharma, two prominent pharmaceutical giants, have carved out significant market shares and established strong brand identities globally. This research paper aims to conduct a comparative analysis of the brand management strategies employed by Cipla and Sun Pharma. By examining various facets of brand management, including market share, brand equity, product portfolio, global reach, and innovation/R&D strategies, this study seeks to provide valuable insights into the approaches these companies take to manage their brands effectively. Understanding the nuances of brand management in the pharmaceutical sector is crucial not only for the companies themselves but also for industry stakeholders and scholars seeking to comprehend the factors driving success in this competitive landscape. Through this comparative analysis, we aim to shed light on the distinct strategies and practices adopted by Cipla and Sun Pharma, contributing to a deeper understanding of brand management dynamics within the pharmaceutical industry.

The pharmaceutical industry stands as a cornerstone of modern healthcare, with companies like Cipla and Sun Pharma holding significant influence. In this context, effective brand management becomes a linchpin for success, shaping market perception, customer loyalty, and industry competitiveness. Cipla and Sun Pharma, both renowned for their innovative products and global reach, offer an intriguing case for comparative analysis in brand management.

II. LITERATURE REVIEW

1. The Economist Intelligence Unit Special Report No R201, 1992 - “…marketing is no longer a mere component of the pharmaceutical business process where profits were the natural reward for scientific and management skills. Rather, marketing is now the central business philosophy as success can no longer be guaranteed by pursuing old rules and approaches. Branding improves the effectiveness and efficiency of marketing by encouraging customer loyalty, enhancing price and margin, and providing opportunities for brand extension.
2. Pilling, 2000 -Pharmaceutical business has been sceptic about the added value of branding for the industry. Nevertheless, recently pharmaceutical marketers started to explore that some strategies and tactics from consumer goods markets can be successfully used in pharmaceutical business. They started to realize that both physicians and patients are susceptible to branding activities when they are supported by clinical evidence.
3. Moss & Schuiling, 2003: It is clear that the ways how the business has been conducted in the past are somehow exhausted. Pharmaceutical business is an environment, where R&D efficiency and effectiveness is decreasing, risk coming from possible loss of revenues from blockbuster products after patent expiry is increasing, sales efforts are reaching a saturation level.
4. Blackett & Harrison, 2001L: Building a robust brand strategy is important and rather difficult task. It involves a series of stages, which include:

• Brand positioning – unique, hard to copy position in the market
• Brand personality – expresses the emotional appeal of the brand
• Brand values – functional, expressive (emotional) and central (what the brand and I share at a fundamental level) values
• Unique attributes of the brand that support the values – identifying which functional and emotional elements of the brand can support its core values and what are the reasons to believe them.

III. OBJECTIVES OF THE STUDY

1. To study the brand perception & trust of select companies
2. To analyse the brand reputation and its impact on customers
3. To asses the service and accessibility of select companies towards ensuring the better services to customer.

IV. SCOPE OF RESEARCH

1. Financial Performance Analysis

Investigate the financial health of both companies by analysing key metrics such as liquidity ratios, profitability, and market-related ratios.

Compare their financial performance over a specific period (e.g., five years) to identify trends and differences1.

2. Market Positioning Strategies:

Explore how Cipla and Sun Pharma position their brands in the pharmaceutical market.

Investigate their target segments, competitive advantages, and differentiation strategies.

3. Brand Equity and Perception:

Assess the brand equity of Cipla and Sun Pharma.

Conduct surveys or interviews to understand how customers perceive their brands.

Investigate factors influencing brand loyalty and trust.

4. Product Portfolio Management:

Compare the product portfolios of both companies.

Analyse their product diversification, focus areas (generic vs. specialty drugs), and new product launches.

V. LIMITATIONS OF RESEARCH

1. Data Availability: Information on brand strategies, market performance, and consumer perception may not be readily accessible for both companies, limiting the depth of analysis.
2. Industry Dynamics: Pharmaceutical industry nuances, such as regulatory constraints, patent issues, and drug development timelines, can impact brand strategies differently for each company, making direct comparisons challenging.
3. Corporate Culture: Differences in corporate culture, strategic priorities, and organizational structures may influence brand management approaches, making it difficult to draw direct parallels.
4. Market Variation: Market-specific factors, such as geographic presence, customer demographics, and competitive landscapes, may vary significantly between Cipla and Sun Pharma, affecting brand management strategies and outcomes.
5. Time Frame: Comparing brand management over a specific time frame may not capture long-term trends or changes in strategy, as companies continuously adapt to market dynamics and internal factors.

VI. RESEARCH DESIGN

The increased complexity of the industry and the range of marketing strategies available to researchers make study design crucial. It is a crucial tool for understanding consumer behaviour. Changes in purchasing habits, brand loyalty, and target markets. A research design outlines the steps that will be taken to carry out a certain study. "Research Design is a plan, conceptual structure, and strategy of investigation conceived to obtain answers to research questions and to control variance," says Kerlinger

A. Primary source of data:

Given that the survey was carried out online utilising a Google questionnaire that was provided to the respondents and had numerous study-related items. As a result, many response types were observed, additionally, we used informal interviews and observation to gather data.

 B. Secondary data:

To complete the project, secondary data is gathered from prior studies and published works. The secondary information was gathered using

• Articles.

• Academic journals.

• Online database on other web resources.

Interpretation: Sun Pharma is preferred by slightly more individuals (39) than Cipla (37) in terms of customer service and accessibility. A significant portion of respondents (24 individuals) believe that both Cipla and Sun Pharma offer equal levels of customer service and accessibility. Both Cipla and Sun Pharma seem to be perceived positively in terms of customer service and accessibility, with neither having a significant advantage over the other. The perception that both brands are equally good in this aspect indicates that they are likely meeting customer expectations in terms of service and accessibility.

VIII. FINDINGS OF STUDY

After the observations and the data analysis the things that came in front and all the findings during the study are as follows:

1. Sun Pharma has a slightly higher familiarity and trust level compared to Cipla.
2. 45% of respondents associate Cipla with trust, while 41% associate Sun Pharma with trust.
3. Most respondents prioritize high product quality (50%) over other factors when selecting a pharmaceutical product.
4. 40% prioritize competitive pricing, while only 10% prioritize a wide product range.
5. Cipla and Sun Pharma have similar reputations, with 45% and 41% of respondents associating each brand with better reputation and trustworthiness, respectively.
6. However, 14% of respondents have no preference between the two brands.
7. Sun Pharma is perceived to invest more in research and development, with 42% of respondents associating it with innovation, compared to 35% for Cipla.

Conclusion

The data indicates that both Cipla and Sun Pharma are well-established pharmaceutical brands, with each having its strengths and areas for improvement. Sun Pharma is slightly more familiar to respondents compared to Cipla, but both brands enjoy a significant level of trust among consumers. To further enhance brand perception and trust, both companies should continue to invest in building awareness, maintaining product quality, and fostering transparency in their operations. High product quality is the most important factor for consumers when selecting pharmaceutical products, followed by competitive pricing and product range. Both Cipla and Sun Pharma should prioritize maintaining and improving the quality of their products while ensuring competitive pricing and offering a diverse range of options to cater to different consumer needs. Cipla is slightly ahead in brand reputation compared to Sun Pharma, but both brands should continue efforts to strengthen their reputation and trustworthiness. Providing evidence of their commitment to quality, safety, and reliability through effective communication can further enhance brand reputation.

References

[1] Cipla Vs Sun Pharmaceutical – Financials, Future Plans & More [2] by Trade Brains | Jan 18, 2024 | Financials, Market, Stock Analysis, Stocks [3] https://mintgenie.livemint.com/news/markets/sun-pharma-vs-cipla-which-is-a-better-pharma-stock-for-long-term-investors-151672988770952 [4] https://iaeme.com/MasterAdmin/Journal_uploads/IJMET/VOLUME_9_ISSUE_6/IJMET_09_06_105.pdf [5] https://www.researchgate.net/publication/317328825_FUNDAMENTAL_AND_TECHNICAL_ANALYSIS_OF_INDIAN_PHARMACEUTICAL_COMPANIES_CIPLA_SUNPHARMA_AUROPHARMA_RANBAXY_AND_LUPIN [6] https://mintgenie.livemint.com/news/markets/sun-pharma-vs-cipla-which-is-a-better-pharma-stock-for-long-term-investors-151672988770952 [7] https://iaeme.com/MasterAdmin/Journal_uploads/IJM/VOLUME_11_ISSUE_7/IJM_11_07_049.pdf [8] Case Study: Cipla Limited V/S Sun Pharmaceutical Industries Ltd - PATHtoIP [9] The Economist Intelligence Unit Special Report No R201, 199

Copyright

Copyright © 2024 Ashish Kumar, Dr. Priyanka Ranawat. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.