Challenges Facing Marketing of Pharmaceutical Products in Kenya

A Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)All business firms exist in an open system. This means they impact and are impacted by the internal and external conditions largely beyond their control. This requires managers to look beyond the limits of the firm’s own operations (Pearce and Robinson, 2002). It thus calls for all organizations, regardless of the sector in which they are, to formulate competitive strategies in response to this turbulent environment. This will enable them cope with competition. Several studies revealed the existence of competitive strategies in the firms studied. However, when executing these strategies on the performance of the firms studied, they did not examine the influence of the challenges faced nor did not relate challenges facing marketing to performance (Obado, 2005). This therefore justifies the need for further research in this area. Therefore this research seeks to determine the challenges facing the marketing of pharmaceutical products in Kenya by distributors. Specifically, the study seeks to determine if there are any company specific, regulatory and market challenges affecting the marketing of pharmaceutical products in Kenya. Empirical investigations into those challenges, in order to confirm or refute is important. The descriptive method of research is used to gather information about the present existing condition using questionnaires. To undertake this study, data was collected from both primary and secondary sources. Descriptive research design was used to determine the challenges facing the marketing of pharmaceutical products in Kenya by importers and distributors. Questionnaires were designed and administered to obtain information from both marketing managers and marketers. The Yamane formula of 1967 was employed and a sample size of 28 marketing managers from a total of 30 respondents in the three pharmaceutical distribution companies and 171 marketers from 300 target population in the three selected pharmaceutical distribution companies.Data was analyzed using both quantitative and qualitative methods, these was presented in form of tables and figures. The study targeted a sample size of 199 respondents; with an 82.41% response rate of with 164 filled in and returned the questionnaires. This response rate was satisfactory and representative to make conclusions for the study. According to Mugenda and Mugenda (2003), a response rate of 60% is good, a rate of 50% is adequate and a response rate of 70% and over is excellent for analysis and reporting. Based on this assertion, the response rate the study obtained was considered excellent. The findings showed that the Pharmaceutical distribution companies face lack of adequate product knowledge from the customers and their clients, competition from other marketers with similar products at cheaper prices, company deadlines and commission based salaries therefore a lot of pressure to perform, regulatory hindrances from the aggressive promotion of pharmaceuticals and receipt of funding from the pharmaceutical company to conduct medical education event(s) locally Over the past decades, pharmaceutical distribution have had to navigate a challenging and rapidly changing environment, in which stakeholders such as shareholders, physicians, patients, payers and regulators are creating significant pressures for change. Despite steady demand for its pharmaceutical products, the fundamental dynamics that the industry faces and that are reshaping the pharmaceutical marketplace where demand for medicines is likely to grow most rapidly over the coming years, are highly varied; governments are beginning to focus on prevention rather than treatment; regulators are becoming more risk-averse. There is a real need for the pharmaceutical industry to change its marketing and sales functions in order to sustain future growth and performance. In order to be successful, Pharmaceutical distribution companies will need to stop the aggressive marketing focusing only on the product of the current model and understand the uniqueness of the pharmaceutical industry therefore recognizing the importance and interdependence of the payer, provider and pharmaceutical value chains, therefore benefiting from the complex and interactive process