The amoxycillin market, which overtook ampicillin segment, saw a decline for the first time in the recent year. Ampicillin and amoxycillin segment is now shifting to amoxycillin + cloxacillin segment. This change in scenario has resulted in to 16.2% growth rate for the amoxycillin and cloxacillin combination.

Source : Industry

Amoxycillin + cloxacillin combination is dominated by Novaclox - a product introduced by Cipla. This combination takes care of betalactamase producing bacteria and is a drug of choice in many indications. Success of Ampoxin - a combination of Ampicillin and Cloxacillin led to introduction of Novaclox by Cipla. Novaclox has become a Rs 15.4 crore product.

The leading brands in this segment are :

Source : Industry

Success of Novaclox was due to identifying the right customers'' needs and translating it into a product. Right selection of doctors resulted into prescriptions.

The details are given below :

Novaclox is prescribed by larger segments of doctors due to Cipla''s wider coverage of areas but the number of prescription per doctor is less compared to Suprimox of Rexel or Tresmox of Sarabhai. Therefore, the company should take a second look at Novaclox strategy and revamp the input plan.

What could be the possible threat?

Changing Trend among doctors

Doctors today are more interested in prescribing Amoxycillin + Cloxacillin with Lactobacillus. Slow reaction of Cipla resulted in lower growth of Novaclox and Cadila''s brand of Symbiotic took a good lead. It could achieve Rs 10.6 crore sales

Growth analysis of the two products is given below :

Recently, Cipla woke up and introduced Novaclox - L to take care of this changing need. This is the right move and will help Cipla to consolidate in this segment.

Brand Becoming OTC

Novaclox has high equity among the doctors and patients. However, higher success rate lead to complacent behaviour. Representatives too feel that patients and doctors are closely associated with this brand. This led to fall in prescriptions/doctors.

Cipla must improve number of prescriptions per doctor. Larger coverage gives volume business but return per doctor is going down.

Switching over of Customer to other products

Brand switching is very common in a cluttered market. Many brands are competing in the same segment. This has resulted in a situation wherein aggressiveness is important.

Introduction of Novaclox - L is a major step to prevent the brand switch. However due to late reaction of Cipla, some doctors have switched over to other products.

pThus a remarkable shift has taken place specially in the ENT, dentist and physician segment. Introduction of Novaclox - L should help Novaclox to regain the leadership. More concerted efforts are required if Novaclox wants to retain it''s number one position.

Late response to marketing environment

Marketing alertness is the key paramount to success of any marketing company.

Suprimox being a Rexel brand was expected to come come out with Lactobacilli, but introduction of Symbiotic has taken the market by storm. Today, Symbiotic is the No. 2 brand and not Suprimox. In tomorrow''s market place if Cipla does not respond, it will lose its share and the number one position which it enjoys.

Introduction of Novaclox - L needs to be watched. Symbiotic was too quick to introduce symbiotic tablet but what about Novaclox - L tablets? Pace is an important essence of success for any marketing company.

Novaclox is no. 1 product in Amoxycillin + Cloxacillin combination. However, with introduction of Symbiotic the market is changing. Many new products are new in the market. High growth rate added with positive response to Symbiotic can give a threat. Introduction of Novaclox - L has halted the decline and should help to the brand to climb the ladder still father. Introduction of tablet should also help Novaclox to consolidate its position. Delay will lead to erosion in their leadership position. Much was expected from Suprimox but delay action on their part too has resulted in shunted growth and is now number three in Amoxycillin + Cloxycillin segment.

The author is a marketing consultant and is based in Mumbai