Analysis of the Demand for Pharmaceutical Drugs

<p>The bachelor&rsquo;s thesis &ldquo;Analysis of the Demand for Pharmaceutical Drugs&rdquo; contains 10 figures, 10 tables and 1 appendix. It consists of 70 pages and 55 sources. Keywords: pharmaceutical market, the demand for drugs, factors that affect the demand for pharmaceutical drugs, the economic analysis of the pharmaceutical market, the regression model.</p><p>The pharmaceutical industry has always been of great interest to economists as a large and internationally competitive industry, and an enormous generator of innovation, investment and high-skilled employment. Besides it is one of the most successfully and quickly developing sector of modern world economy. The pharmaceutical industry is also characterized by a high level of concentration with several multinational companies dominating the industry that creates intense competition on the pharmaceutical market. Under those circumstances, the importance of the pharmaceutical market investigation is increasing rapidly as it provides a basis for companies&rsquo; strategic and marketing decisions.</p><p>Marketing is a social process manifested on the market. Rather than in an isolated vacuum, companies operate in a complex dynamic environment. A substantial number of top organizations are engaged in continuous efforts to influence a large number of factors from their environment so as to harmonize their state and movement with their own interests. Within any organization, marketing strategy bears the greatest responsibility for making insights into the environment and responding to challenges it faces. A substantial part of sources dealing with the principles of marketing is devoted to the analytic definition of environmental forces making a direct or indirect impact on business operations. Of particular interest is studying factors that affect the demand for pharmaceutical drugs because understanding of demand-moving forces peculiarly assists companies to raise competitive capacity of their products.</p><p>The purpose of this bachelor thesis is to analyze the internal factors of demand for pharmaceuticals and their impact on demand. The object of the paper is the demand for pharmaceuticals. The demand for pharmaceutical drugs in the Kaliningrad region makes the subject of the research.</p><p>The study of the related scientific literature on chosen subjects revealed that despite the abundance of theoretical work on the studied subject, empirical studies have been carried mostly by foreign researchers and have been focused on foreign pharmaceutical markets.</p><p>Scientific novelty of the paper consists in adapting foreign approaches to the analyzing of the influence of various factors on demand for pharmaceuticals for Russian regional market. The findings of the conducted research can be used by management of pharmaceutical companies to improve the competitiveness of the enterprise, as it is stated the recommendations for creating a successful marketing strategy for a pharmaceutical company. So the paper has practical application.</p><p>The remainder of the paper is organized as follows. Section 1 considers fundamental theoretical aspects on demand for consumer goods and its investigating. It illuminates the following issues: the concept of consumer demand specification, a review of existing methods and techniques of recording and analysis of the demand for the products, making a comparison between analysis of the demand for consumer goods and analysis of the demand for pharmaceuticals, considering basic factors the affect the demand for pharmaceutical drugs that are usually considered in the related researches.</p><p>Section 2 consists in examination of structural peculiarities of Russian pharmaceutical market. Then it is carried out the analysis of Kaliningrad pharmaceutical market and its distinguishing features, that creates the basis for the model development presented in Section 3.</p><p>In Section 3 it is represented by its own model, which describes the interaction between the selected in-process research major internal factors of demand for pharmaceuticals and selling drugs on the market Kaliningrad region using regression analysis.</p><p>The proposed model consists of two stages. At the first stage analyzes the influence of selected factors on the demand for demand drugs for the treatment of common infections. At the second stage the influence of the same factors on the demand for drugs for the treatment of chronic disease. To create the model, was conducted surveys among buyers Kaliningrad drugstore chains &quot;Avicenna&quot; and &quot;Aloe&quot; which includes 957 respondents. The purpose of the survey was to identify, on a choice of several customers affected certain demand factor. Based on the survey responses was created sample of 113 observations for the first experiment and 180 for the second. For each experiment was made separate regression model to identify the influence of factors on the demand. There was also a statistical analysis of the respondents to identify the degree of influence of the personal characteristics of consumers in the model results. According to the conclusions derived from the model, was created a number of recommendations for pharmaceutical companies to create a successful marketing strategy in the light of demand for pharmaceuticals.</p>