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The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical market of Ukraine

The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical... capacity, share and saturation of studied segment of market that allow to improve the competitive strategies of pharmaceutical manufacturing enterprises. MATERIALS AND METHODS: According to the results of content-analysis of foreign and native economic literature, we elaborated the methodology of estimation of NSAID competitive positions that consists of six main stages. The offered model of estimation of competitiveness of the studied group of medicines is based on the construction of competition map of medicines on the example of non-selective NSAID as the largest group by the number of presented trade names (TN) using the calculation of market share of medicines for 2015-2016 and dynamics of its growth. RESULTS: The results of NSAID TN distribution in groups according to the market share volume testify that only 8 TN of medicines among 74 are the leaders of market and 10 TN are characterized with strong competitive position. At the same time 51 NSAID TN are outsiders and 5 TN have weak competitive position. The results of NSAID TN distribution in groups according to the change of their competitive position allow state that 16 TN among 74 have fast worsening competitive position, 43 TN belong to the group with worsening competitive position and only 5 TN has competitive position, characterized by fast improvement. CONCLUSION: The analysis of position, occupied by NSAID TN in matrix, demonstrated that 8 TM of medicines are the leaders of the market. At the same time 51 medicines TN are outsiders. The results of research demonstrated that 59 NSAID TN are characterized with worsening and fast worsening competitive positions. Keywords pharmaceutical market – non-steroid anti-inflammatory drugs – market share – competition map INTRODUc TION One of the most important indicators of effectiveness of activity of pharmaceutical firms, enterprises and organizations enterprise activity that determines the success of work, (Levy & Weitz, 2004; Kotler & Keller, 2006; Kotvitska & Kostiuk, financial status and position of an enterprise in the market is 2016). the competitiveness of pharmaceutical products (Dolzhansky Thus, the aim of our analysis is the estimation of non-steroid & Zagorna, 2006). anti-inflammatory drugs’ (NSAID) competitiveness level, The competitiveness of each commodity in the market is calculation of capacity, share and saturation of studied determined by the totality of many factors and is considered as segment of market that allow to improve the competitive an advantage of this commodity as compared with the others strategies of pharmaceutical manufacturing enterprises. (of analogous importance). The competitiveness of medicines is determined by the totality of different characteristics that MATERIALS AND METHODS determine their comparative positions in the market. Under the conditions of rigid competitive environment that According to the results of content-analysis of foreign and has been formed in the native market of medicines, the urgent native economic literature, we elaborated the methodology and timely acceptance of managerial-productive decisions, of estimation of NSAID competitive positions that consists directed on the search and mastering of prospective market of six main stages, including the succession of arrangements niches, formation of competitive positions and unique at each stage and the use of correspondent effective indices advantages of medicines, coordination of assortment-selling (Fig. 1) (Berman & Telen,2004; Dzhuparova et al., 2010; Kaune, strategies are the determinative components of successful 2005; Mnushko et al., 2009). * E-mail: volodymyr_kostiuk@ukr.net © European Pharmaceutical Journal OR 10 Eur. Pharm. J. 2018, 65 (1): 10-14. The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical ... Hryhorovych Kostiuk V., Anatoliivna Kotvitska A. The offered model of estimation of competitiveness of the studied group of medicines is based on the construction of competition map of medicines, on the example of non- selective NSAID as the largest group by the number of presented trade names (TN), using the calculation of market share of NSAID for 2015–2016 and the dynamics of its growth. The first stage includes the analysis of assortment and determination of modern tendencies of NSAID market formation. It is necessary to note that the methodological base of estimation of competitive positions in the market share. That is why, the second stage provides the estimation of competitive situation on NSAID market, realized by calculation of the market share of each formulation of the presented TN of studied segment of medicines. Thus, the calculation of market share for each NSAID TN was carried out according to the formula 1 (Berman &Telen,2004): D% =´100 (1) gen. where, D – market share of і-th TN NSAID, % T – sales volume for і-th TN NSAID in DDDs sold per year T – general volume of NSAID sales in DDDs sold per year. gen. Figure 1. The methodology of estimation of NSAID competitive positions on pharmaceutical market of Ukraine Depending on the volume of market share, medicines can be leader or outsider in the market. To differentiate the groups of medicines − outsiders, medicines with weak, strong The estimation of medicines’ competitive positions within competitive position and leaders of the market., within the the chosen NSAID segment is the fifth stage of offered third stage, it is necessary to determine the mean-square methodology that is expedient to be realized for the revelation deviation of NSAID TN market share and also its minimal, of prospective market niches for elaboration of medicines and maximal and mean arithmetical value. Thus, we realized the introducing them in production. For the estimation of degree determination of limits of classification groups of studied of change of competitive position of the studied medicines, NSAID using the law of variation of individual values of sign we separated four groups of medicines by the dynamics of (‘three-sigma rule’). their marker share growth (Mnushko et al., 2009): The directions of fourth stage of methodology that are − medicines with fast improvement of competitive the estimation of NSAID competitive positions provide position; determination of dynamics of growth, mean value and − medicines with improvement of competitive position; dispersion of dynamics of growth of NSAID TN market share. − medicines with worsening of competitive position; Thus, the calculation of mean dynamics of the market share − medicines with fast worsening of competitive position. growth for each formulation of medicines TN for the studied period (2016) relative to the base period (2015) and its mean- At the sixth stage, the matrix of competition map of the market square deviation was realized according to the formula 2 is constructed, taking into account the received results of (Burtseva et al., 2005): estimation of the market share distribution and degree of change of competitive position of the studied NSAID TN. It is D - D i 0 based on the cross classification of NSAID TN by the indices T% =´100 (2) D of market share and its dynamics, as a result of which, we use the 16 types of strategic positions of medicines that differ by where, T – dynamics of growth of market share of і-th NSAID the degree of use of competitive advantages and potential TN, % possibility to resist the competitors’ pressure are determined Di – market share of і-th TN in the studied period, % (Mnushko et al., 2009). The competition map of medicines D – market share of і-th TN in the base period, %. allows us to determine their status and systematize the competitive advantages. 11 12 Eur. Pharm. J. 2018, 65 (1): 10-14. The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical ... Hryhorovych Kostiuk V., Anatoliivna Kotvitska A. Table 1. The criteria of reference of TN of non-selective NSAID to classification groups c lassification Formulas of calculation of Results of calculation of Number of c haracteristic groups classification groups limits, % market limits NSAID TN І D ; D +3×σ ⁄√n 15.19;…2.69 TN – leaders of market 8 max mean 2 TN with strong competi- ІІ D +3×σ ⁄√n; D 2.69;…1.35 10 mean 2 mean tive position TN with weak competitive ІІІ D ; D -3×σ ⁄√n 1.35;…1.20 5 mean mean 1 position ІV D -3×σ ⁄√n; D 1.20;…0.00* TN - outsiders 51 mean 1 min *the absolute value is 0.00002 Table 2. The results of estimation of the degree of change of NSAID TN competitive positions c lassification Formulas of calculation of Results of calculation of Number of c haracteristic groups classification groups limits % market limits NSAID TN TN with fast improvement І T ;T +3×σ ⁄√n 1579.32;…92.03 5 max mean of competitive position TN with improvement of ІІ T +3×σ ⁄√n; T 92.03;…21.91 10 mean mean competitive position TN with worsening of com- ІІІ T ; T -3×σ ⁄√n 21.91;…-48.21 43 mean mean petitive position TN with fast worsening of ІV T ; T -3×σ ⁄√n -48.21;…-99.93 16 mean mean competitive position RESULTS The results of NSAID TN distribution in groups according to the market share volume testify that only 8 TNs of At the first stage of the offered methodology, according medicines among 74 are the leaders of market and 10 TNs to the results of the data of Public register of medicines, are characterized with strong competitive position. At the which includes all medicines approved for marketing by the same time, 51 NSAID TNs are outsiders and 5 TNs have weak Ministry of Health of Ukraine, it was established that NSAID competitive positions. assortment is presented by 13 pharmacotherapeutic groups: It is well-known that the estimation of tendencies of change M01AB01 – indometacin, M01AB05 – diclofenac, M01AB15 of competitive position is realized using the index of mean – ketorolac, M01AB16 – aceclofenac, M01AC01 – piroxicam, dynamics of market share growth. Thus, the calculated mean M01AC02 – tenoxicam, M01AE01 – ibuprofen, M01AE02 – dynamics of growth of the studied NSAID segment is 21.91% naproxen, M01AE03 – ketoprofen, M01AE09 – flurbiprofen, (the fourth stage of methodology). M01AE14 – dexibuprofen, M01AE17 – dexketoprofen, M01AG01 NSAID TN classification by the degree of change of competitive – mefenamic acid (Ministry of Health of Ukraine, 2015). position is presented in Table 2 (the fifth stage of offered The analysis at the second stage included 74 TNs of medicines, methodology). divided into 2 sectors in correspondence with the occupied The results of NSAID TN distribution in groups according to the share. The first sector included medicines, for which the change of their competitive position allow us to state that 16 market share was more than the mean arithmetic value of TNs among 74 have fast worsening competitive position, 43 market shares of the studied NSAID; the other one united TNs belong to the group with worsening competitive position medicines, for which the market share was less than the mean and only 5 TNs have competitive position, characterized by arithmetic value (1.35%). fast improvement. Thus, the first sector was formed of 18 NSAID TNs with mean The received results of estimation of distribution of market volume of market share 4.51%, and other 56 TNs with mean share and the degree of change of competitive position of volume of market share 0.34%. the studied NSAID TN allowed us to construct the matrix of Within the third stage, the calculations of mean-square competition map of the market ( Table 3) within the sixth stage deviation of NSAID TN market share, that in totality with of methodology. minimal and maximal values allows us to make distribution of The results of analysis of NSAID TN position on the the studied medicines in 4 classification groups, were realized competitive map testifies that among the studied segment in each sector (Table1). of medicines, 7 TN-leaders are characterized by worsening 11 12 Eur. Pharm. J. 2018, 65 (1): 10-14. The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical ... Hryhorovych Kostiuk V., Anatoliivna Kotvitska A. Table 3. The matrix of formation of competition map of the native market of NSAID c lassification of groups by the market share TN – leaders TN with strong TN with weak TN - outsiders of market competitive position competitive position NSAID TNgroup by the change of market share Fast improvement of competitive --- --- --- 5 NSAID TN position Improvement of competitive position 1 NSAID TN 3NSAID TN --- 6 NSAID TN Worsening of competitive position 7 NSAID TN 7 NSAID TN 5NSAID TN 24NSAID TN Fast worsening of competitive position --- --- --- 16NSAID TN competitive position; 1 TN-leader has competitive position, The offered methodology of estimation of NSAID competitive characterized by improvement; 3TNs that pretend to positions, from our point of view, can be used by pharmaceutical leadership have improving competitive position; 12 TNs that enterprises for choosing the grounded approaches to pretend to leadership have worsening competitive position; elaboration of competitive strategy, preventing the negative 5TN-outsiders have fast improving competitive position; 6 tendencies in production-selling processes of enterprises. The TN-outsiders have improving competitive position; 24 TN- received results that are the real reproduction of the modern outsiders are characterized with worsening competitive market situation, allow enterprises to determine the features position; and16 TN-outsiders have fast worsening competitive of development of competitive situation on the market and position. to reveal the closest competitors. For manufacturers of medicines-leaders of market, according DIScUSSION to the market share, the main directions of competition strategies are the stabilization of competitive position by In modern practice of applied marketing research, considerable maintaining the achieved level of profitability and by creating attention is paid to the analysis of market environment. a more flexible pricing policy. The study of market processes involves determining the In order to achieve competitiveness, the following strategic dynamics of market conditions. Each company faces the alternatives are recommended for the manufacturers of task of assessing its own competitiveness, which is due to medicines with a strong competitive position: search for a the quality management of supply processes. The most vacant niche with weak competition, adapting to the selected important for enterprises are the indicators that reflect the target market, following the behaviour of the leader. dynamics of consumption of goods, the volume of wholesale Manufacturers of medicines with weak competitive position and retail trade. Also, in the conditions of limited information must focus on reducing the cost of medicines. for manufacturers, it is relevant to calculate the capacity The position of medicines-outsiders of the investigated and market share, to assess the level of competitiveness of segment of the market requires pharmaceutical companies products. to reorganize their marketing strategies (with a significant The results of the conducted research provide comprehensive reduction in costs or, conversely, an increase in the medicine and reliable information on both the dynamics of prices in the case of inelastic demand). pharmaceutical market and trends in its structural segments, trademarks. Using the obtained results, the manufacturing LIMITATIONS OF RESEARcH companies are able to monitor market conditions, its capacity and development trends. Also, it is possible to conduct market Market researches on the competitiveness in pharmacy on segmentation by commodity and market characteristics various thematic areas of competitive analysis are widely to conduct their comparative analysis. Searching market represented in the scientific works of Ukrainian scientists. niches and choice of perspective directions of optimization But detailed analysis of publications shows that mainly the of commercial policy; conducting competitive analysis and competitiveness of manufacturing companies, pharmacies establishing market segments with the lowest competitive and limited analysis of the competitive advantages of activity becomes more reasonable and appropriate. medicines were investigated. Thus, the competitive map of medicines serves to determine At the same time, the lack of available state statistical their status and to systematize their competitive advantages. information on sales volumes makes it impossible to carry out In 2016, in the Ukrainian market of NSAIDs, there is a situation a full-fledged analysis of the market situation in the domestic where there are no TN-leaders of market and TN that pretend pharmaceutical market, which determines the use of special to leadership with rapid improvement of the competitive methods of calculation and additional sources of information. position. The additional sources of information include data on the 13 14 Eur. Pharm. J. 2018, 65 (1): 10-14. The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical ... Hryhorovych Kostiuk V., Anatoliivna Kotvitska A. intensity of goods consumption, information on primary and The analysis of position, occupied by NSAID TN in matrix, additional sales and information obtained from the results of demonstrated that 8 TNs of medicines are the leaders of the the retail audit. market. At the same time, 51 medicines TN are outsiders. The results of research demonstrated that 59 NSAID TNs are c ONcLUSIONS characterized with worsening and fast worsening competitive positions. According to the results of NSAID TN differentiation by Thus, the obtained results are a real reproduction of the current competitive position, it was established that 16 medicines market situation and allow developing a competition strategy among 74 have fast worsening competitive position, 43 TNs more reasonably, to avoid or prevent the negative trends in the are included in the group with worsening competitive position production and sales processes of the enterprises. Taking into and only 5 TNs have competitive position characterized with account the obtained results, enterprises have the opportunity fast improvement. to operate information about the competitive status, to know The matrix of formation of competition map of the market, that the features of the development of a competitive situation on is, an instrument of determination of status and competitive the market and to identify the closest competitors. advantages, was constructed; the NSAID TN positions on the native pharmaceutical market were determined. References [1] Berman BS, Telen SP. A guide to developing and managing a well- [7] Kotvitska AA, Kostiuk VH. Research of normative legal regulation integrate multichannel retail strategy. International Journal of of import substitution production of medicines in Ukraine. Retail Distribution Management. 2004;32:147-156. Management, Economics and Quality Assurance in Pharmacy. [2] Burtseva ТА, Sizov VS, Tsen OA. Marketing Management. Мoscow; 2016;1(45suppl):85-89. 2005:271. [8] Levy MM, Weitz BA. Retailing Management, Boston: McGraw Hill; [3] Dolzhansky ІZ, Zagorna TO. The competitiveness of enterprises. 2004:532. Kyiv: Center of educational literature; 2006:384. [9] Ministry of Health of Ukraine, Public register of medicines (http:// [4] Dzhuparova IA, Sboeva SG, Belova Yu V. Application of www.drlz.com.ua/) Accessed December 19, 2015. technologies of benchmarking for increasing the competitiveness [10] Mnushko ZN, Presnyakova VV, Rogulya O Yu. Application of results of pharmacy organizations. Vestnik NSU. Series: Social and of retail audit in the competitive analysis of the pharmaceutical Economics Sciences. 2010;10(2 suppl):93-102. market of Ukraine. Management, Economics and Quality [5] Kaune SB. Pharmacy Business Management. London: A Book LLC; Assurance in Pharmacy. 2009;2(4 suppl):44-48. 2005:367. [6] Kotler F, Keller KL. Marketing Management. Express Course. St. Petersburg: Peter; 2006:464. 13 14 http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Acta Facultatis Pharmaceuticae Universitatis Comenianae de Gruyter

The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical market of Ukraine

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de Gruyter
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© 2018 Kotvitska A. A. et al., published by Sciendo
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1338-6786
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1338-6786
DOI
10.1515/afpuc-2017-0017
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Abstract

capacity, share and saturation of studied segment of market that allow to improve the competitive strategies of pharmaceutical manufacturing enterprises. MATERIALS AND METHODS: According to the results of content-analysis of foreign and native economic literature, we elaborated the methodology of estimation of NSAID competitive positions that consists of six main stages. The offered model of estimation of competitiveness of the studied group of medicines is based on the construction of competition map of medicines on the example of non-selective NSAID as the largest group by the number of presented trade names (TN) using the calculation of market share of medicines for 2015-2016 and dynamics of its growth. RESULTS: The results of NSAID TN distribution in groups according to the market share volume testify that only 8 TN of medicines among 74 are the leaders of market and 10 TN are characterized with strong competitive position. At the same time 51 NSAID TN are outsiders and 5 TN have weak competitive position. The results of NSAID TN distribution in groups according to the change of their competitive position allow state that 16 TN among 74 have fast worsening competitive position, 43 TN belong to the group with worsening competitive position and only 5 TN has competitive position, characterized by fast improvement. CONCLUSION: The analysis of position, occupied by NSAID TN in matrix, demonstrated that 8 TM of medicines are the leaders of the market. At the same time 51 medicines TN are outsiders. The results of research demonstrated that 59 NSAID TN are characterized with worsening and fast worsening competitive positions. Keywords pharmaceutical market – non-steroid anti-inflammatory drugs – market share – competition map INTRODUc TION One of the most important indicators of effectiveness of activity of pharmaceutical firms, enterprises and organizations enterprise activity that determines the success of work, (Levy & Weitz, 2004; Kotler & Keller, 2006; Kotvitska & Kostiuk, financial status and position of an enterprise in the market is 2016). the competitiveness of pharmaceutical products (Dolzhansky Thus, the aim of our analysis is the estimation of non-steroid & Zagorna, 2006). anti-inflammatory drugs’ (NSAID) competitiveness level, The competitiveness of each commodity in the market is calculation of capacity, share and saturation of studied determined by the totality of many factors and is considered as segment of market that allow to improve the competitive an advantage of this commodity as compared with the others strategies of pharmaceutical manufacturing enterprises. (of analogous importance). The competitiveness of medicines is determined by the totality of different characteristics that MATERIALS AND METHODS determine their comparative positions in the market. Under the conditions of rigid competitive environment that According to the results of content-analysis of foreign and has been formed in the native market of medicines, the urgent native economic literature, we elaborated the methodology and timely acceptance of managerial-productive decisions, of estimation of NSAID competitive positions that consists directed on the search and mastering of prospective market of six main stages, including the succession of arrangements niches, formation of competitive positions and unique at each stage and the use of correspondent effective indices advantages of medicines, coordination of assortment-selling (Fig. 1) (Berman & Telen,2004; Dzhuparova et al., 2010; Kaune, strategies are the determinative components of successful 2005; Mnushko et al., 2009). * E-mail: volodymyr_kostiuk@ukr.net © European Pharmaceutical Journal OR 10 Eur. Pharm. J. 2018, 65 (1): 10-14. The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical ... Hryhorovych Kostiuk V., Anatoliivna Kotvitska A. The offered model of estimation of competitiveness of the studied group of medicines is based on the construction of competition map of medicines, on the example of non- selective NSAID as the largest group by the number of presented trade names (TN), using the calculation of market share of NSAID for 2015–2016 and the dynamics of its growth. The first stage includes the analysis of assortment and determination of modern tendencies of NSAID market formation. It is necessary to note that the methodological base of estimation of competitive positions in the market share. That is why, the second stage provides the estimation of competitive situation on NSAID market, realized by calculation of the market share of each formulation of the presented TN of studied segment of medicines. Thus, the calculation of market share for each NSAID TN was carried out according to the formula 1 (Berman &Telen,2004): D% =´100 (1) gen. where, D – market share of і-th TN NSAID, % T – sales volume for і-th TN NSAID in DDDs sold per year T – general volume of NSAID sales in DDDs sold per year. gen. Figure 1. The methodology of estimation of NSAID competitive positions on pharmaceutical market of Ukraine Depending on the volume of market share, medicines can be leader or outsider in the market. To differentiate the groups of medicines − outsiders, medicines with weak, strong The estimation of medicines’ competitive positions within competitive position and leaders of the market., within the the chosen NSAID segment is the fifth stage of offered third stage, it is necessary to determine the mean-square methodology that is expedient to be realized for the revelation deviation of NSAID TN market share and also its minimal, of prospective market niches for elaboration of medicines and maximal and mean arithmetical value. Thus, we realized the introducing them in production. For the estimation of degree determination of limits of classification groups of studied of change of competitive position of the studied medicines, NSAID using the law of variation of individual values of sign we separated four groups of medicines by the dynamics of (‘three-sigma rule’). their marker share growth (Mnushko et al., 2009): The directions of fourth stage of methodology that are − medicines with fast improvement of competitive the estimation of NSAID competitive positions provide position; determination of dynamics of growth, mean value and − medicines with improvement of competitive position; dispersion of dynamics of growth of NSAID TN market share. − medicines with worsening of competitive position; Thus, the calculation of mean dynamics of the market share − medicines with fast worsening of competitive position. growth for each formulation of medicines TN for the studied period (2016) relative to the base period (2015) and its mean- At the sixth stage, the matrix of competition map of the market square deviation was realized according to the formula 2 is constructed, taking into account the received results of (Burtseva et al., 2005): estimation of the market share distribution and degree of change of competitive position of the studied NSAID TN. It is D - D i 0 based on the cross classification of NSAID TN by the indices T% =´100 (2) D of market share and its dynamics, as a result of which, we use the 16 types of strategic positions of medicines that differ by where, T – dynamics of growth of market share of і-th NSAID the degree of use of competitive advantages and potential TN, % possibility to resist the competitors’ pressure are determined Di – market share of і-th TN in the studied period, % (Mnushko et al., 2009). The competition map of medicines D – market share of і-th TN in the base period, %. allows us to determine their status and systematize the competitive advantages. 11 12 Eur. Pharm. J. 2018, 65 (1): 10-14. The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical ... Hryhorovych Kostiuk V., Anatoliivna Kotvitska A. Table 1. The criteria of reference of TN of non-selective NSAID to classification groups c lassification Formulas of calculation of Results of calculation of Number of c haracteristic groups classification groups limits, % market limits NSAID TN І D ; D +3×σ ⁄√n 15.19;…2.69 TN – leaders of market 8 max mean 2 TN with strong competi- ІІ D +3×σ ⁄√n; D 2.69;…1.35 10 mean 2 mean tive position TN with weak competitive ІІІ D ; D -3×σ ⁄√n 1.35;…1.20 5 mean mean 1 position ІV D -3×σ ⁄√n; D 1.20;…0.00* TN - outsiders 51 mean 1 min *the absolute value is 0.00002 Table 2. The results of estimation of the degree of change of NSAID TN competitive positions c lassification Formulas of calculation of Results of calculation of Number of c haracteristic groups classification groups limits % market limits NSAID TN TN with fast improvement І T ;T +3×σ ⁄√n 1579.32;…92.03 5 max mean of competitive position TN with improvement of ІІ T +3×σ ⁄√n; T 92.03;…21.91 10 mean mean competitive position TN with worsening of com- ІІІ T ; T -3×σ ⁄√n 21.91;…-48.21 43 mean mean petitive position TN with fast worsening of ІV T ; T -3×σ ⁄√n -48.21;…-99.93 16 mean mean competitive position RESULTS The results of NSAID TN distribution in groups according to the market share volume testify that only 8 TNs of At the first stage of the offered methodology, according medicines among 74 are the leaders of market and 10 TNs to the results of the data of Public register of medicines, are characterized with strong competitive position. At the which includes all medicines approved for marketing by the same time, 51 NSAID TNs are outsiders and 5 TNs have weak Ministry of Health of Ukraine, it was established that NSAID competitive positions. assortment is presented by 13 pharmacotherapeutic groups: It is well-known that the estimation of tendencies of change M01AB01 – indometacin, M01AB05 – diclofenac, M01AB15 of competitive position is realized using the index of mean – ketorolac, M01AB16 – aceclofenac, M01AC01 – piroxicam, dynamics of market share growth. Thus, the calculated mean M01AC02 – tenoxicam, M01AE01 – ibuprofen, M01AE02 – dynamics of growth of the studied NSAID segment is 21.91% naproxen, M01AE03 – ketoprofen, M01AE09 – flurbiprofen, (the fourth stage of methodology). M01AE14 – dexibuprofen, M01AE17 – dexketoprofen, M01AG01 NSAID TN classification by the degree of change of competitive – mefenamic acid (Ministry of Health of Ukraine, 2015). position is presented in Table 2 (the fifth stage of offered The analysis at the second stage included 74 TNs of medicines, methodology). divided into 2 sectors in correspondence with the occupied The results of NSAID TN distribution in groups according to the share. The first sector included medicines, for which the change of their competitive position allow us to state that 16 market share was more than the mean arithmetic value of TNs among 74 have fast worsening competitive position, 43 market shares of the studied NSAID; the other one united TNs belong to the group with worsening competitive position medicines, for which the market share was less than the mean and only 5 TNs have competitive position, characterized by arithmetic value (1.35%). fast improvement. Thus, the first sector was formed of 18 NSAID TNs with mean The received results of estimation of distribution of market volume of market share 4.51%, and other 56 TNs with mean share and the degree of change of competitive position of volume of market share 0.34%. the studied NSAID TN allowed us to construct the matrix of Within the third stage, the calculations of mean-square competition map of the market ( Table 3) within the sixth stage deviation of NSAID TN market share, that in totality with of methodology. minimal and maximal values allows us to make distribution of The results of analysis of NSAID TN position on the the studied medicines in 4 classification groups, were realized competitive map testifies that among the studied segment in each sector (Table1). of medicines, 7 TN-leaders are characterized by worsening 11 12 Eur. Pharm. J. 2018, 65 (1): 10-14. The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical ... Hryhorovych Kostiuk V., Anatoliivna Kotvitska A. Table 3. The matrix of formation of competition map of the native market of NSAID c lassification of groups by the market share TN – leaders TN with strong TN with weak TN - outsiders of market competitive position competitive position NSAID TNgroup by the change of market share Fast improvement of competitive --- --- --- 5 NSAID TN position Improvement of competitive position 1 NSAID TN 3NSAID TN --- 6 NSAID TN Worsening of competitive position 7 NSAID TN 7 NSAID TN 5NSAID TN 24NSAID TN Fast worsening of competitive position --- --- --- 16NSAID TN competitive position; 1 TN-leader has competitive position, The offered methodology of estimation of NSAID competitive characterized by improvement; 3TNs that pretend to positions, from our point of view, can be used by pharmaceutical leadership have improving competitive position; 12 TNs that enterprises for choosing the grounded approaches to pretend to leadership have worsening competitive position; elaboration of competitive strategy, preventing the negative 5TN-outsiders have fast improving competitive position; 6 tendencies in production-selling processes of enterprises. The TN-outsiders have improving competitive position; 24 TN- received results that are the real reproduction of the modern outsiders are characterized with worsening competitive market situation, allow enterprises to determine the features position; and16 TN-outsiders have fast worsening competitive of development of competitive situation on the market and position. to reveal the closest competitors. For manufacturers of medicines-leaders of market, according DIScUSSION to the market share, the main directions of competition strategies are the stabilization of competitive position by In modern practice of applied marketing research, considerable maintaining the achieved level of profitability and by creating attention is paid to the analysis of market environment. a more flexible pricing policy. The study of market processes involves determining the In order to achieve competitiveness, the following strategic dynamics of market conditions. Each company faces the alternatives are recommended for the manufacturers of task of assessing its own competitiveness, which is due to medicines with a strong competitive position: search for a the quality management of supply processes. The most vacant niche with weak competition, adapting to the selected important for enterprises are the indicators that reflect the target market, following the behaviour of the leader. dynamics of consumption of goods, the volume of wholesale Manufacturers of medicines with weak competitive position and retail trade. Also, in the conditions of limited information must focus on reducing the cost of medicines. for manufacturers, it is relevant to calculate the capacity The position of medicines-outsiders of the investigated and market share, to assess the level of competitiveness of segment of the market requires pharmaceutical companies products. to reorganize their marketing strategies (with a significant The results of the conducted research provide comprehensive reduction in costs or, conversely, an increase in the medicine and reliable information on both the dynamics of prices in the case of inelastic demand). pharmaceutical market and trends in its structural segments, trademarks. Using the obtained results, the manufacturing LIMITATIONS OF RESEARcH companies are able to monitor market conditions, its capacity and development trends. Also, it is possible to conduct market Market researches on the competitiveness in pharmacy on segmentation by commodity and market characteristics various thematic areas of competitive analysis are widely to conduct their comparative analysis. Searching market represented in the scientific works of Ukrainian scientists. niches and choice of perspective directions of optimization But detailed analysis of publications shows that mainly the of commercial policy; conducting competitive analysis and competitiveness of manufacturing companies, pharmacies establishing market segments with the lowest competitive and limited analysis of the competitive advantages of activity becomes more reasonable and appropriate. medicines were investigated. Thus, the competitive map of medicines serves to determine At the same time, the lack of available state statistical their status and to systematize their competitive advantages. information on sales volumes makes it impossible to carry out In 2016, in the Ukrainian market of NSAIDs, there is a situation a full-fledged analysis of the market situation in the domestic where there are no TN-leaders of market and TN that pretend pharmaceutical market, which determines the use of special to leadership with rapid improvement of the competitive methods of calculation and additional sources of information. position. The additional sources of information include data on the 13 14 Eur. Pharm. J. 2018, 65 (1): 10-14. The estimation of competitive positions of non-steroid anti-inflammatory drugs on pharmaceutical ... Hryhorovych Kostiuk V., Anatoliivna Kotvitska A. intensity of goods consumption, information on primary and The analysis of position, occupied by NSAID TN in matrix, additional sales and information obtained from the results of demonstrated that 8 TNs of medicines are the leaders of the the retail audit. market. At the same time, 51 medicines TN are outsiders. The results of research demonstrated that 59 NSAID TNs are c ONcLUSIONS characterized with worsening and fast worsening competitive positions. According to the results of NSAID TN differentiation by Thus, the obtained results are a real reproduction of the current competitive position, it was established that 16 medicines market situation and allow developing a competition strategy among 74 have fast worsening competitive position, 43 TNs more reasonably, to avoid or prevent the negative trends in the are included in the group with worsening competitive position production and sales processes of the enterprises. Taking into and only 5 TNs have competitive position characterized with account the obtained results, enterprises have the opportunity fast improvement. to operate information about the competitive status, to know The matrix of formation of competition map of the market, that the features of the development of a competitive situation on is, an instrument of determination of status and competitive the market and to identify the closest competitors. advantages, was constructed; the NSAID TN positions on the native pharmaceutical market were determined. References [1] Berman BS, Telen SP. A guide to developing and managing a well- [7] Kotvitska AA, Kostiuk VH. Research of normative legal regulation integrate multichannel retail strategy. International Journal of of import substitution production of medicines in Ukraine. Retail Distribution Management. 2004;32:147-156. Management, Economics and Quality Assurance in Pharmacy. [2] Burtseva ТА, Sizov VS, Tsen OA. Marketing Management. Мoscow; 2016;1(45suppl):85-89. 2005:271. [8] Levy MM, Weitz BA. Retailing Management, Boston: McGraw Hill; [3] Dolzhansky ІZ, Zagorna TO. The competitiveness of enterprises. 2004:532. Kyiv: Center of educational literature; 2006:384. [9] Ministry of Health of Ukraine, Public register of medicines (http:// [4] Dzhuparova IA, Sboeva SG, Belova Yu V. Application of www.drlz.com.ua/) Accessed December 19, 2015. technologies of benchmarking for increasing the competitiveness [10] Mnushko ZN, Presnyakova VV, Rogulya O Yu. Application of results of pharmacy organizations. Vestnik NSU. Series: Social and of retail audit in the competitive analysis of the pharmaceutical Economics Sciences. 2010;10(2 suppl):93-102. market of Ukraine. Management, Economics and Quality [5] Kaune SB. Pharmacy Business Management. London: A Book LLC; Assurance in Pharmacy. 2009;2(4 suppl):44-48. 2005:367. [6] Kotler F, Keller KL. Marketing Management. Express Course. St. Petersburg: Peter; 2006:464. 13 14

Journal

Acta Facultatis Pharmaceuticae Universitatis Comenianaede Gruyter

Published: Jun 1, 2018

Keywords: pharmaceutical market; non-steroid anti-inflammatory drugs; market share; competition map

References