Cipla Marketing Strategy

Cipla follows an excellent marketing strategy.

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Strategic Tie-UpsCipla has set up a wholly owned subsidiary, Cipla FZE situated at Jebel Ai Free Zone inDubai, United Arab Emirates. This is the part of strategy to explore the growing markets inMiddle East countries through exports.

Cipla entered agreement with

Pentech Pharma of USA

for marketing a range of generic products for American market. Pentech is involved indeveloping therapies for lifestyle and quality of life conditions. This will further boost itsexport performance.

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Low-risk business model :Robust partnership model – CIPLA has entered into global tie-ups with various generic players (like Watson, Mylan, Barr and Ivax) for supplying its generic products. This strategyenables Cipla to leverage local market knowledge of its partners and utilize its own R&D, product development, and manufacturing skills. Cipla's offer to sell anti- aids drugs at one-third the price to developing countries like South Africa or any other country. The questionswere raised against the strategy the company follows but Cipla is not committing any illegalor unethical act as it is entitled to sell anti- aids drugs in any country that does not have therequisite patent protection. Cipla is not using pirated technology since India does not have a product patent regime. Therefore, Cipla has the right to develop and reverse engineer any pharmaceutical product not protected by the country's laws. Therefore, the issue is whether Cipla is selling its products below its costs or is it able to sell cheaply because it has notincurred any research and development (R&D) expenses like multinationals incur indeveloping drugs.

                       Deepak kumar

                       PGDM 3^rd sem