Site Loader
Rock Street, San Francisco

AbstractParacetamol is a painkilling ingridient in drugs and it is one of the most used and available medicine pills( Panadol ) in Bahrain and middle east, and there are no any manufacturing restrictions towards its production as it is very cheap and simple top produce or manufacture. All of these factors are having a great responsibility in a competetive market where as the market always dictates the price of the produces.In this case some brand charge a execcable price of x20 the value of the cheapest brand for the drug contained in panadol which is paracetamol. Due to the reason thats why i was always curious and wanted to find out what are the main reasons for the failuer of panadol in the market but to understant that i had to create my own survery between my friends and family. i asked them which brand out of 2 would they pick and along this i recorded their age. from the investigation i found out that there is no difference in the outcome in the user of the drug or the information that was a major factor which had affected its market for Panadol.IntroductionWhat is panadol and what is inside it?Panadol is the brand name for a drug known as Paracetamol and it is mostely reliable in cases of painkilling such as body sprains or headaches or migraines etc. some people use the drug as a way to lower their fever and it works by inflitirating the prostaglandins which is a hormone that is responsible for the muscles relaxation. it has been on the bahraini market for over 60 years and its patent hasnt expired and as a result of that , mutliple firms can now legally ,anufacture and produce the drug. Panadol is really cheap and easy to manufacture and it is one of the most popular if not the most popular drug on the bahraini market which means there is a high demand towards it. This means that over the years many brands of Paracetamol will become available on the market. In bahrain the consumer spends around 500BHD per year on painkillers. These products do not differ hugely from the brands that are equivalent to it and are considerably cheap. Yet these drugs can be upt to x15 the price of the cheapest product and this is where my essay will cover the conspiracy that occurs with painkilling  drug brands that contain Paracetamol in the market.Problem CaseDue to the patent of Paracetamol as it has expired and really easy to produce and manufcature, the market for Paracetamol drug should be very competetive. This shows that there would be alot of producers selling and resupplying the product at a similar price as the firms should be the price takers. These are the qualities of a competetive market. However in reality this is not the case and yet it still shows that how easy it is to be dominated and ruled out by other large firms which sell and profit from their products due to their great price but it generates them high sales.There is a large number of generic or own branded Paracetamols on the market which is being sold at a much lower price. What makes it an issue is that it is really intriguing is the fact and idea that it can be assumed that the chemical manufacturing of the active used ingridients in all the brands of Paracetamol are almost the same and from another perspective, there is no difference between the brands.MethodologyIn order to answer the question (Problem case) i needed to find out whether the different brands of Panadol have almost the same contentParacetamol inside them and whether the different brands have any other differences in any clinical ability affects. I will analyze the data from an experiment about the comparison of branded paracetamols ( for example Panadol ) and a generic equivalent brand and by the journal of research in pharamacies inside Bahrain i was able to conduct a experiment which is to find the quantinty of a specific substance in some brands. These substances i am looking for are the active ingridients that actually affect the prostaglandis( hormones ) in our body.Economics ThoeryIn this analysis of the market for Paracetamolic drugs i will be focusing on economics theories from firms in microeconomics and demand and supply. This means i will look over the different types of firms such as the perfectly competetive markets. I will find out what fits the Paracetamol market as it is important to know that these are only theories and markets are much more complexed.Perfectly Competetive Market in theories of the firms i looked atht eh changes of firms in the market and this is how they operate around each other. And above that i will also try to deduce what type of market is present in each market. One of the possible economics situatuations could be if the market is actually perfectly competetive or not. Perfectly competetive is impossible in real life as it is only theoritical but we can assume that there is a competetive market around the world which sahres very similar features in a perfectly competetive manners as we have to realize a number of things.1. Market are made up of large number of firms2. Goods in the economt are great in number3. There are no barries in entrance or exit4. All producers and consumbers must know all about Marketing knowledge5. The firms are so small that none are the actual price makers but they are the price takers which means that the price is belonging to the market.Unlike many Pharmaceutical markets there is no patent towards paracetamol and that means anyone can have the right to commercially manufacture and produce and sell the product as it is the ingridient inside the brands such as Panadol. So theoritically there are few number of barriers to enter in the market and it can be argued that the goods in the market such as paracetamol are plenty in numbers. A research paper by the Bahraini pharmacies compare branded drugs to their generic equivalents for the active ingridients in both of the forms in the drugs.Tests analyzingI have setted up 2 methods of paracetamols under mass of 500mg/tablet of active ingridients , first method is Branded paracetamol and it contains 500Mg/tab and the generic paracetamol contains 510mg/tab and in the second method the Branded paracetamol stayed 500mg/tab whilst the Generic paracetamol decreased to 480mg/tab.The conclusion from this test was that the more the price of the brand of paracetamol shows the same amount of active ingridients unlikely to the generic version of the paracetamol. This test confirms that the branded paracetamol has no any inactive ingridients in it such as caffiene.The market for the drugs in Bahrain is stricly regulated by the medical and healthcare agencies as this proves that even producers of low priced paracetamols have to go by the same rule and regulation that the firms producing branded paracetamols should follow.This also provesv that there should be no difference in the qualities of the drugs and it also mean that the chemical composition of products labeled as paracetamol must have the same.There is no difference  in the affects of the difference brands have towards your body such as caffiene which is the part of numerous composition of many premium brands, they have litte to no any  health affect on the consumer. Pharmacists said that they are the same drug at the same dose in the same type of drug or medicine. if you took the ingridients they do look different but these are just to make it easier to manufacture the tablets. Despite the branded paracetamo/tab it can cost up to double the price of the generic version and this means firms are not price takers but they are the price makers. This is all about the fact that the lack of patent is for a few major firms in the Panadol type painkilling industry. This confirms that this market is like an oligopoly( limited competition ) more than a perfectly competetive market.Demand And SupplyDemand for a product is all about the amount that the consumer is willing and is able to purchase at a given price. The law of demand says that the demand is inversely proportional to price which shows that the higher the price then the demand is low. This is due to the income affect at which the increase in price of one product will change the similar competing item which has no price difference. According to this law it states that the different types of paracetamol brands are the same type of goods as the more expensive the brand gets it should be less demanded rather than the cheaper versions to it.Panadol could be down to the fact that the cheaper generic brands are seen as inferior goods while the branded drug ( panadol ) is more expensive than normal goods and when it comes to rising demand for the normal goods, the data concerning the incomes will always show that there is no great data or difference between the income of each brand of paracetamol. This could show us that income has a big role in knowing who buys each type of brand. There is no any reason that the fact of paracetamolthat income affect does nost rely to be in the role of deman in Painkilling drugs and there is no reason behind this but infact paracetamol is very cheap and it is the reason for all painkilling drugs( panadol) to be the most expensive brand to be sold, aswell within the reach of almost all people living in Bahrain, no matter how low the income is that people will still be willing to be paying a few Bahraini Dinars for more than what they feel is superior to them and this means that the income affect does not have a large existence in the market.How is its price mechanism takes place?Its price mechanism shows how market collects its resources and all resources are depending on the price of the good, for example if there was a low demand for the product Panadol then the price of the produce will fall aswell as the producers so lets assume these are rational and they will not be willing to produce and manufacture as much as good as they used to, well actually that applies due to the demand curve for the market of paracetamol as it is not downfacing slope, it shows the data collected from the survey as the price mechanism of it can no longer be working under it since it is a form of a market failure.OligopolyIt is another reason of why these results could be rising about the advertising and brand loyality, this could be documented and presented by a drug advertisment. It has its own effects on consumer satisfactory behaviour towards it since it is mentioned before that information is ket to a competetive market. Advertising in media and packaging makes up a large proportion of consumer informations. Companies use this to their advantage in non price competing firms and it is one of the ideas that the market is an oligopoly and its reason shows that it is dominated by a low number of firms.Large companies have the funds to advertise their products more efficiently as well as design a much more good looking and eye catching packaging. with the help of advertising and the idea that numerous of branded drugs have been on the market for a long time is all about brand loyality and that could have people willing to pay the extra Dinars to assure themselves they are taking in the correct products.This essay also includes how advertising of drugs is and such as paracetamol has a significant differentials on the behaviour of consumers, but however it also states that their behavior can be more influencial by their doctors recommendation. The packaging plays a very important key in this investigation as people tend to use the looks as a indicator of quality. So therefore more simple paper package like the value of health packaging could represent  product with inferior quality than the plastic packaging of Panadol.Another reason why people tend to rely on branded drug than generic version is that they are much more expensive but theres a reason behind its value.Market FailureWith the help of lack of perfectly information in the markets, these informations have taken its price and according to that this is a situation in which one indivisual has more superiror information compared to the other and this often happens in transactions where the seller knows more than the buyer, although the reverse can happen aswell but potentially this could be harmful for the society, because one person can take advantage of the other persons lack of knowledge. In this case the producers of Painkilling drugs have much better information than the consumers and can therefore scam the consumers into paying more for their product than they actually need to and this is a form of a market failure. This is when the factors prevent the market from being a completely perfect and this is in turn means that the markets do not collect the resources in it. This is supported by the results from the question about consumer knowledge on painkilling drugs. The results showed that the majority of peoply had no or very less idea about paracetamol and this resulted that the majority of painkilling druh consumers have low informational criteria towards it, meanwhile there was a better proportion of people who knew a bit about paracetamols. This could show that people who have a better understanding of the drug are more likely to purchase a cheaper adn equivalent version as they are aware that there is a very tiny difference between both.  The reason of the internet has a high informational knowledge about it and it could be a reason behind how some consumers get the cheaper versions and nowadays the internet is used by younher peoply more than elders, but they are more likely to have a brand loyality and therefore they chose the brand they are familiar with. This could be a reason of a market failure as there is an under supply of merit goods which is the cheap brands of painkillers. Society will benefit more if it spends its own money on cheaper brands of painkillers rather tgan expensive version and it is an increase in consumption of this and thats why it creates a positive alternatives so therefore i believe that its our duty to inform people about paracetamols and other painkilling drugs more beacuse the more they know then the lower the increase of market failure get led to.Data analysisThere are many limitations to investigate on as i have carried out so first of i only compared two branded of unidentified paracetamol, which were not from Bahrain and therefore i can be sure that the two brands of paracetamol used in this investigation all have the same criteria. It would have been a much better idea to test all four ( 2 branded , 2 unbranded ) but it is really complicated and expensive to do so, so it would have been really impossible to carry on with the procedure but the second limitation is within the investigation of surveys conducted and it was only in one area in bahrain, i believe different parts of the country have different habits but however i investigated in a low developed area from the other areas and therefore it was much better for me to be investigating and getting accurate answers so i only showed 2 of the brands available on the market and while doing the survey i was clear that the older the people the much more clumsy they got to take part while the younger people tend to avoid it but the survey was clear and this means the results do not properly represent the age group, but to make the results more reliable i could repeat the same experiment on a different day to make sure the purchasing trend is still on. The article also had limitation to answer my doubts that i have caused and it never specified any painkilling drugs so therefore the questions carried out in that investigational survey. It might not present the perceptions of people that have paracetamols, moreover drug companies who sell the branded drugs and claim that all painkillers around the world are assessed for safety measures, quality and effectiveness by the medical and healthcare egencies have not allowed me to go on the market unless a head office approves so here i could say that because of regulatory body has approved the sale of these products then the drug companies are not doing anything wrong but they are just following the rules and regulations asper the market and pharmacies.ConclusionSo from this investigation i came to know that the different brands of painkillers with the ingridient of paracetamol are all offering the same type of product at a similar quality and taht there is a number of factors in the market have led to information that are a result of the price mechanism in the market as it has no meaning. It is tend to be directed by a much larger pharmaceutical firms that lack this information in the market which has prompted people to pay extra for their selected products in the market. This lack of information in the market available in the market have made the consumers to pay more for their products. Despite the branded drugs tend to be established in the market, it has been aroumd for a very long period of time. This states that brand loyality has became a big importance for all the firms in the market and giving some firms a great power that allows them to sell their products at a great price, These are supported by the survey i have conducted and it shows a big majority of people that the older people are more immune to information available from the internet. So therefore most of their information comes from advertisement and media where the larger companies have the advantage to when it comes from advertising in media since larger firms have to claim their advantage and stay ahead when it comes to selling their products.  To add to this, the older people are more susceptible to brand loyality than the established painkiller products such as Panadol.However it is important to note that the essay is self assumed in many number of things and one of them being the fact that assumption is a amount of active ingridients in the same times based on a article. However many consumers perceive that the cheaper generic brand are inferior products as they could lack the same quality as the branded equivalent painkillers, this has been a result of advertising and the packaging of teh drugs have been found in, as many people tend to associate the quality og psvksging with the quality of the product in Bahrain or atleast middle east. Many consumers always pay extra to make sure that their body is receiving the best care and to assure that nothing will go wrong.So to conclude and end my essay i want to say that it is peoples perceptions and assumptions towards the products that has led to the failure of the price mechanism in this market have established many firms to take over and scam this uncertainty by charging a much higher price for the product and i feel it is the responsibility of the pharmacists and doctors and all health advisors to bring this to the publics attention and knowledge and provide them with the actual correct information.

Post Author: admin

x

Hi!
I'm Eunice!

Would you like to get a custom essay? How about receiving a customized one?

Check it out