Final Final Final 1

Submitted To:

Md. Farhan Imtiaz

Lecturer

Institute of BusinessAdministration

University of Dhaka

Raproxain® by NM PharmaceuticalsLtd.

Submitted by:

Nafis Uddin Mehran (Roll: ZR-67)

Ishmam Maliha Raisa (Roll: RH-72)

S.M. Fahim Hossain (Roll: ZR-85)

Tamjid Yameen (Roll: ZR-90)

Md. Abrar Nakib (Roll: ZR-115)

Rahman Nahian (Roll: ZR-119)

NMpharma

Raproxine®

LETTER OF TRANSMITTAL

June 01, 2014

Md. Farhan Imtiaz

Lecturer

Institute of Business Administration

University of Dhaka

Sir,

With due respect, we would like to present to you our term paper

for Biological Science course. It is a marketing report on the

launching of a new medicine brand named Raproxain® in Bangladesh by

a hypothetical company, N.M. Pharmaceuticals. We believe that it is

in compliance with what you had instructed us to do.

For the

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preparation of this paper, we have collected and created relevant

information from our own knowledge, your course, past Marketing

course and various data archives online.

Finally, we wish to inform you that we have worked diligently to

present to you an impeccable report, and we would like to cordially

thank you for giving us this opportunity to perform under your

supervision. We have managed to learn a lot under your expert

guidance, and the experience has been invaluable. We hope that we

will have the honor to learn more from you in the future.

Sincerely Yours,

Nafis Uddin Mehran

Ishmam Maliha Raisa

S.M. Fahim Hossain

Tamjid Yameen

Md. Abrar Nakib

Rahman Nahian

TABLE OF CONTENTS

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Executive Summary

Product Page 5

Positioning Page 7

Pricing Page 13

PromotionPage 20

PackagingPage 26

PlacePage 29

Process Page 32

People Page 32

Physical Evidence Page 33

Planet Page 33

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ConclusionPage 35

Executive Summary

We have started off with the activities of a hypothetical

pharmaceutical company named “NM Pharmaceuticals ltd.” Through

this company we are launching our product “Raproxain®”

composing of Naproxen 500mg as non-steroidal anti-inflammatory

agent and also added with that a proton pump inhibitor to

oppose the adverse effects of this particular NSAID upon

receptors’ gastro-intestinal tracts. Thus, with this

medication we will enable our customers to get rid of pains of

all kinds of auto-immunity inflammation such arthritis and

also of anky-losing or spondylitis diseases.

To finish this comprehensive report, we have used the 10P

strategy of marketing formulation as our prime methodology and

therefore described the futuristic planning surrounding

concepts of product, proposition, pricing, promotion,

packaging, place, process, people, physical evidence and

planet.

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In the product part, we have actually shown the therapeutic

properties of the drug and indications with contraindications.

We tried to position our brand with varied different up to

date techniques. In the pricing section we summarized the

whole costing process and dealt out the MRP for unit amount of

our product with that we also got the net income, the bottom

line for which we are all working upon the product. Forecasts

for next four years’ costing and net proceeds are also added

with it. Then there will be our extra ordinary promotion plans

to get an very optimistic yet gettable 10% market share over

the market of naproxen, which is very far from reaching

saturation. We have altered the idea of traditional packaging

with all new Rapple packaging system made of biodegradables.

These strategies will be followed by the place, process,

people and planet parts which are there mainly to make

everyone familiar with our company’s humane site and

environmental cum employment-health awareness. We also

designed physical evidence strategy to put our product on the

front row of retailers.

ProductRaproxain®

Generic name:

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Naproxen, as NSAID (non-steroidal anti-inflammatory drug) with

Rabeprazole as PPI.

Composition: Each enteric coated tablet contains Naproxen

500mg USP (as per US Pharma) and Rabeprazole 20mg USP as

sodium salt.

Introduction:

Naproxen is a nonsteroidal anti-inflammatory drug (NSAID). It

works by reducing hormones that cause inflammation and pain in

the body. Naproxen is used to treat pain or inflammation

caused by conditions such as arthritis, ankylosing

spondylitis, tendinitis, bursitis, gout, or menstrual cramps.

Indications:

This particular medication is indicated to treat and relief

the symptoms and signs of:

Rheumatoid Arthritis

Osteo-Arthritis

Ankylosing Spondylitis

Dosage and administration:

In general, to treat patients with pains and inflammation

causing from arthritis and spondylitis, the dosage is one

tablet of Raproxain® twice daily. The dose should be swallowed

with fluid at least before 30 minutes of a meal.

**Extra-ordinary differentiation:

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Raproxain® is the first of its kind in the world to produce an

NSAID coupled with Rabeprazole as proton-pump inhibitor which

will reduce the risk of erosive gastritis, dyspepsia, and

peptic or duodenal ulcer caused from the use of anti-

inflammatory drugs.

Contraindication:

Known hypersensitivity towards Naproxen, aspirin or any

other NSAIDs

Asthma after using NSAIDs

After or before coronary artery bypass graft (CABG)

surgery

Renal and Hepatic impairment

Late pregnancy & lactating mother

Side-effects:

In common, there has been no side effect after using Naproxen

other than gastro-intestinal syndromes, due to erosion of

mucus level, such as dyspepsia and gastric ulcers. These also

can be reduced with the coupling use of Rabeprazole. If the

patient is hypersensitive towards Naproxen, Urticaria and

other allergic actions like asthma may be observed.

Overdose: there is no clinical data.

Interaction: can interact and affect the effects of other

NSAIDS, Steroids, blood thinners (warfarin, Coumadin),

lithium.

Why better than other NSAIDs:

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This medication is much less powerful than Erodolac,

ketorolac tromithamine and other post-operative anti-

inflammatory groups. Thus it’s much suitable as an daily

usable Arthritis & spondylitis pain-reliever drug.

This is absorbed and solutes much easily in lever and

does little harm to the kidney through its medicinal

process than other NSAIDs like Diclofenac and Sulindac.

Diclofenac and ibuprofen also does harm to heart.

This works slower than ibuprofen, ketoprofen, fenoprofen,

etc. but its effect is longer lasting than all of them.

Why better than other proton pump inhibitors:

Rabeprazole works on its effect one and a half times

faster than Esomeprazole

Its effect lasts twice longer than omeprazole

Positioning: An analysis of Market nature, Segmentation, Target market and Consumer behavior

Market Nature: Market Size and Expected Market Share

The generic product base of naproxen has a total estimated

business or market of 33.9 crore BDT. Forty three

pharmaceutical companies produce 54 dosage forms of Naproxen

under varied names. But, the market tends to be only

controlled by the leading five producers.

Roche Bangladesh Pharmaceuticals is the current market leader

with 29.9% market share and a business valued at close to 100

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million BDT. Name of their product is Naprosyn. Anaflex of ACI

is the second best in market with 17.02 % market share but

their market tends to be going down for unknown reason as

their share has been 32.8% just the previous year. Their

downgrading is well utilized by Roche, as they now have the

largest market share. Square pharmaceuticals is in 4th place

with their Sonap and is just preceded by the Naprox of Eskayef

Pharma which is n 3rd place. They got a 13.06 and 13.7 % market

share respectively. Napro-A of Acme pharmaceuticals is in 5th

place with a market share of 11.8%. Approximately, 85% market

is occupied by this 5 big market players.

We, with our product Raproxine®, are planning to penetrate the

much occupied market with totally different promotional and

sales strategy and expecting a market share nearing 10% at the

very first year of our production. We know well that it’s bit

optimistic yet we hope that we would be able to clinch this

target with our planned marketing strategy.

29%

17%13%

13%

12%

10%6%

Market Sharenaprosyn, rocheanaflex, acinaprox, eskayefsonap, squarenapro-a, acmenaproxine, tamtabothers

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Besides, there are also drugs that combine naproxen and

esomeprazole so that patients just can take one tablet to

solve their targeted problem whereas taking just naproxen

needs additional drug containing similar ingredients like

esomeprazole. But they hold a a very little market together

compared to the traditional naproxen. Following are the brands

and their drugs that combine naproxen and esomeprazole is the

direct rivals for our produced drug Raproxain which uses

powerful rabeoprazole instead of esomeprazole:

Brand Name Drug Name IngredientDelta Pharmaceuticals

Ltd.DEMOVO (375/500)

Naproxen Sodium +

EsomeprazoleBeximco

Pharmaceuticals Ltd.DINOVO (375/500)

Naproxen Sodium +

EsomeprazoleZiska Pharmaceuticals

Ltd.NAPXON (375/500)

Naproxen Sodium+

Esomeprazole

Aristropharma Ltd. NESO (375/500)Naproxen Sodium+

EsomeprazoleIncepta

Pharmaceuticals Ltd.

PROGESIC

(375/500)

Naproxen Sodium +

Esomeprazole

Brand Positioning of Raproxain®: The Top of the Pyramid

Now that we have seen our market scenario, we can clearly see

Raproxain will compete in a market against two genres of

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First genre : Naproxen Sodium

Second genre : Naproxen Sodium and Esomeprazole

Here, our point of differentiation is (POD) for the product is

the superiority of Rabeprazole over Esomeprazole. This POD

makes it superior over 2 genres mentioned above but due to the

supply of raw materials and regarding the effectiveness of

Rabeprazole it is likely that the price will be higher than

those. As a result, we would like to serve the Top of the

pyramid, a very niche market where we will provide the best

quality NSAIDs and charge premium prices with value based

pricing. As a result if we do the Vector Mapping analysis

regarding current market we will see our Brand Raproxain® will

operate in a completely different market. A unique brand

position in the vector mapping entails that the product is

likely to be successful in the market despite the sales volume

will not match as much as those operating in the middle of the

pyramid and mass market. But with maintaining the ultimate

branding in our promotion and packaging we can make the best

profit margin by serving this niche market.

So finally the bottom line is our Brand positioning focuses on

things

1. The best quality product with Rabeprazole combined

2. Premium pricing

3. Operating Top of the pyramid

4. Reflection of the brand image in the promotion and

packaging.

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Segmentation and Target Market: Who needs NSAIDs?

Demographic Segmentation

NSAIDs can help reduce fever and are often used to treat mild

to moderate pain due to a variety of conditions, such as

arthritis, back aches, dental procedures, headaches, muscle

spasms, menstrual cramps, sprains and tendinitis. NSAIDs are

most frequently prescribed treatment for osteoarthritis. The

drugs don’t cure disease but they can help relieve its

symptoms. So basically, people who are prone to any sort of

pain are the potential customers for NSAIDs. But our target

market must look for 2 major issues:

Who are the people potentially expose to pain threat?

Are they ready to pay premium price to get the best

solution out of market?

Looking through this answer, we have got distinctively 3 clear

target market who meets two of our addressed issues.

Target Market Affordability Exposure to Pain

SportsmenSportsmen have a

higher income level

as well as desire

to do the best for

being fit.

High: Due to

exposure to

unexpected muscle

and other injury.

Urgency to recover

within a time frame

to get return to

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game

Regular gym

goer

Those who can

afford to go to gym

regularly are ready

to spend extra

money for their

fitness causes.

Moderate : due to

exposure to heavy

physical activity

40+ people

40+ people in

Bangladesh have

better income level

High : Due to their

age factor

But here comes the most important question. How do we reach

them?

And restrictions on Above The Line (ATL) promotion in

pharmaceuticals industry makes it more difficult to reach the

potential target market. Doctors and physicians are

traditional gateways to reach them. Although NSAIDs are

prescribed by the doctors but in Bangladesh, a major portion

of people show a tendency not to go to doctor for this types

diseases especially in the minor cases. Rather they ask their

peers, family members and other people around them to get the

best relief for the pain. Even shopkeepers play vital roles

and have power to drive people to buy NSAIDs. So Marketing

through “Word of Mouth” will facilitate us to communicate with

customers in Double gateways.

Direct promotion to Patient Target Market

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Direct Promotion to Doctor group who will serve our

Patient Target Market

Figure: Target Market Chain: Double Gateway

As it is not always same game as other drugs when it comes to

NSAIDs. So only promotion to doctor will make us miss a

massive opportunity to exploit particular consumer behavior to

mentioned above. So following this pattern for our targeting

and segmentation will give the best output in terms of

promotion and other Ps to gain our desired market share.

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Geographical Segmentation

Because of charging premium price, we must make geographical

segmentation to get the best out of our targeting and

positioning. So we will initially market our product just to 7

divisional cities which includes: Dhaka, Chittagong, Khulna,

Barisal, Rajshahi, Sylhet and Rangpur.

Size of the Target Market

The great volume of target market size also indicates that the

product has a great opportunity in terms of demand. Among

three patient group, 40+ aged group dominates with an

staggering figure of 5, 64, 31,665 people which is 37 percent

of the total population according to the census of 2011. But

as we are targeting the 6 divisional city that narrows down

our target figure and assuming that 40+ aged people will be of

37 percent of the district population we can calculate an

approximate size of the real target market and it becomes

almost 16.835 million 40+ aged people.

City Population40+ aged

Percentage

40+ aged people

per cityDhaka 10 million 37% 3.7 million

Chittagong 4 million 37% 1.48 millionRajshahi .7 million 37% .26 millionKhulna 1.3 million 37% .481 million

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Barishal .28 million 37% .1036 millionSylhet .27 million 37% .0999 millionRangpur .285 million 37% .10545 million40+ aged people who are our target market 16.835 million

Among sportsmen approximate number of professional footballers

from 3 football divisions all over Bangladesh is 1500. Cricket

has 4 divisions which sum up a number of 2000. And if we count

other sport professionals as well as amateur sports the figure

will cross at least 20000.

Bangladesh having 2500 gyms all over the country including 600

in Dhaka and suburban area the approximate gym goers number of

people will be almost 15000. So it looks the total market size

is very huge with almost 17 million people.

Pricing and Costing

Financial planning & cost structure

costing per tablettotal cost for 3million tablets

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Particulars bdt Bdtraw material cost

naproxen r/m 1.9 5700000rabeprazole r/m 1.1 3300000

wastage (5%) 0.15 450000packaging material 0.25 750000total material cost 3.4 10200000conversion cost (medc+pacg) 0.5 1500000

direct labor 0.75 2250000total product cost 4.65 13950000distribution & admin exp. 0.95 2850000

VFOH (machinery+utilityetc.) 0.85 2550000

FFOH for 3 mil tabs 0.55 1650000marketing/promotional cost 3.3 9900000

TOTAL COST 10.3 30900000mark up (12.2%) 1.2566 ---VAT (16.5%) 1.6995 ---retailer comiss. (16%) 1.648 4944000MRP per tab 14.9041MRP per 20s pack 298.1

From the above schedule of costing it can be seen that three

million tablets are being produced. The number is a very good

one keeping in mind that the factory is at its initial stage

of production. This huge number of tablets will enable the

company to achieve high levels of efficiency in a very short

period of time. Since the factory is already producing a huge

number of tablets, the company does not need to increase

production levels to achieve optimum level of production since

it is already producing a high level.

The raw material cost is 1.9bdt per unit for naproxen and

1.1bdt for rabeprazole. It is expected that the firm will be

able to bring down the raw material cost over the years when

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it has bargaining power which it does not have at this moment

because it is a new entrant. The wastage is expected to be 5%

which shows how efficiently the management is expected to run

the factory. All other cost is in acceptable range except for

marketing and promotional cost. This cost is very high because

the company will be launching this tablet this year. It has no

brand loyalty and consumers are not even aware that such a

product exists in the market. Therefore, a huge marketing

campaign needs to be carried out. Not only the consumers need

to know about this product, but the doctors, who would be

prescribing the medicine to the patient, needs to know about

this. If the doctors do not prescribe it to the patient, the

product would not be at all successful. The doctors are more

important than the consumers in terms of marketing. Therefore,

marketing needs to be done for the doctors also by giving

those pads and other things. Retailers’ commission is 16%.

This cost is expected to be brought down over the years once

the product gets widely available.

In the overall context, it can be said that the factory is

expected to run very efficiently. Some of the variable cost

seems to be a bit high. However, the company will be able to

bring those costs down over the years. Moreover, the company

is not very far away from achieving optimum level of

production. Therefore, it can be concluded that the company

would be able to record huge amount of profits in the coming

years.

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After adding major medicinal substance and packaging material

cost the total raw cost is calculated at 10.2 million BDT

whereas after adding the manufacturing and labor cost the

total production cost becomes 13.95 million BDT. There will be

a fixed factory overhead of 1.65 million which is not prone to

change with the units sold. Adding with this, the huge

promotional cost of 9.9 million BDT of introductory first year

we get total cost of 30.9 million BDT.

While 12.2% mark up, 16.5% value added tax and a retailers’

commission as stated before is added, per tablet MRP becomes

14.9 Taka and maximum retail price for the whole box is

estimated to be 298 Taka per 20s pack. We can eventually get

the mark up percentage up when we finish our 1st year

successfully with very less inventory and are unable to get

our products’ demand at its peak.

Expected Net Proceeds

The following diagram shows the net proceeds for the first

year. It can be seen that 90% of the total production will be

sold. It shows that the demand of the product will be very

high given that the demand analysis was done correctly and a

successful marketing campaign is done. However, 10% of the

production will remain as ending inventory and it is essential

for maintaining a steady flow of inventory so that the company

can adapt to changes in demand in the market and can avoid a

short fall in inventory levels. At the same time, it can be

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said with assurance that the factory will be able to operate

at its full capacity and therefore keeping some slack may come

in handy.

On the other hand, the markup of this product is 33% which

means that almost 67% of what is sold goes into gross margin.

The factory overhead cost is 3945000 and this acceptable

whereas the selling and admin expenses and VAT and commission

seems a bit high. This is because the company is only at its

first year in operation and it will take some time to produce

more efficiently and in a production level where it can

achieve optimum economies of scale. It can be expected that in

the coming years the company will be more efficient and keep

cost to a minimum level and hence increase the profit levels.

After paying a tax level of 27.5% the net income is 1212556.

This is only 3.8% of the total revenue and this is a bit low.

None the less, the co. is only at its first year in operation

and a margin like this is acceptable and quite good actually.

There is a clear sign that the co. can keep its cost down in

the coming years and then this net profit to sale percentage

will increase.

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Net Proceeds: 1st yearExpected revenue (90% of tot. prod.) 40241070

COGS (product cost) 12555000Gross margin 27686070factory over heads 3945000sales and admin cost 12750000vat and commission 9038250EBIT 1952820tax (27.5%) 537025.5Net Income 1415794.5

Forecasting the cost and prices for next four years

In our second fiscal year, production will increase 2.5% to 3075000units. Some other important costs including a major change inpromotional cost will occur as follows:

costing per tabletin 2nd year

total cost for 3.075million tablets

Particulars Bdt Bdtraw material cost


Wastage (5%) 0.1495 459712.5packaging material 0.25 768750total material cost 3.3895 10422713conversion cost (medc+pacg) 0.5 1537500


VFOH (machinery+utility etc.)

0.85 2613750

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TOTAL COST 9.4895 29180213Mark up (12.2%) 1.157719 ---VAT (16.5%) 1.565768 ---Retailer comiss. (16%) 1.51832 4668834MRP per tab 13.73131MRP per 20s pack 274.6261

3rd year production increase by another 2.5% for the second consecutive year to3150000 units:

costing per tablet3rd fiscal

total cost for 3.15million tablets

particulars bdt Bdtraw material cost


Wastage (5%) 0.149 469350packaging material 0.25 787500total material cost 3.379 10643850conversion cost (medc+pacg) 0.5 1575000



0.85 2677500


TOTAL COST 9.179 28913850Mark up (12.2%) 1.119838 3527490VAT (16.5%) 1.514535 4770785Retailer comiss. (16%) 1.46864 4626216MRP per tab 13.28201MRP per 20s pack 265.6403

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In the fourth and fifth year production increases to 3225000,

all other cost remain unchanged, except marketing and

promotional cost, as the company has already taken steps to

reduce cost in the earlier years. And, as the market now gets

much more saturated than before there would be very less

difference between years else than the promotional cost. The

changes are as follows:

costing per tablet total cost for 3.225million tablets

particulars bdt Bdtraw material cost


Wastage (5%) 0.149 480525packaging material 0.25 806250total material cost 3.379 10897275conversion cost (medc+pacg) 0.5 1612500



0.85 2741250


TOTAL COST 9.029 29118525Mark up (12.2%) 1.101538 3552460VAT (16.5%) 1.489785 4804557Retailer comiss. (16%) 1.44464 4658964MRP per tab 13.06496MRP per 20s pack 261.2993

Net Proceeds: 2ND yearExpected revenue (92% 38001391

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of tot. prod.)COGS (produc cost) 12839816Gross margin 25161574factory over heads 4043625sales and admin cost 10608750vat and commission 8535212EBIT 1973987Tax (27.5%) 542846.5Net Income 1431141

Net Proceeds: 3RD yearExpected revenue (92% of tot. prod.) 37654507COGS (produc cost) 13123215Gross margin 24531292factory over heads 4142250sales and admin cost 9922500vat and commission 8457301EBIT 2009241Tax (27.5%) 552541.2Net Income 1456700

Net Proceeds: 4 & 5THyear

Expected revenue (92% of tot. prod.) 37921055COGS (produc cost) 13435673Gross margin 24485383factory over heads 4240875sales and admin cost 9675000vat and commission 8517169EBIT 2052339tax (27.5%) 564393.2Net Income 1487946

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year 1 year 2 year 3 year 4 year 50

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

45000000

4024107038001391 37654507 37921055 37921055

1415794.5 1431141 1456700 1487946 1487946

revenue final profit

Promotion

As we have mentioned our promotional strategy it will work in

two dimensions. One way would be promotion to our target

market and another way would be promotion to the doctor and

physician group who serves to this target. Thus a two

dimensional promotion would be able to make a 360 marketing

strategy. Following are the media for our promotion plan.

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Online Marketing

Facebook: We are going to launch our own Facebook page

named by our brand name “NM Pharma”. In this page we are

going to keep our consumers and peers updated about our

latest products, our researches and ongoing health issues

discussed worldwide. We believe through this page we will

be able to reach more people worldwide and we will be

able to expand the NM Pharma family and help others to

differentiate themselves from others through forming a

better health, hence a better life.

Website: We will also be launching our own website. It

will be introduced as “nmpharma.com.bd”. This website

will be our enhanced online portal and ongoing calendar

of our company. Our pharmaceutical products, personnel,

current researches, future expeditions will be

comprehensively illustrated and displayed in this

website. People will also be able to experience an online

tour of our company premises if they will to. Internship

and application to be a fellow member of a particular

research study under our expert pharmaceutical scientists

would also be collected through this website prior to the

personal interviews session.

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Apps: We are going to unveil two android apps which would

be initiated by our company, considering the colossal

amount of android users worldwide, which is constantly

rising every single second. We are going to induce two

gaming applications named as “PackPain” and “NM Fighter”.

Through both of these games people will be more concerned

about arthritis and spondylitis and try to prevent these

diseases before encountering and grow communal and social

awareness against them.

YouTube: We are going to start a YouTube channel under

the name of NM Pharma where the promo videos and

observations of the reactions and hence the effectiveness

of Naproxen and Rabeprazole would be telecast continually

with time. The prime purpose of this program broadcast is

to communicate with the consumers in a more direct and

intimate way about our products. These videos would

answer all the questions and queries in a more direct

approach and help the consumers to reach out for our

product the most convincingly.

Advertising to Doctors

Literature: Product literature would be presented to the

doctors by our medical representatives. These would be

composed in the latest literature fashion and trend as an

attempt to become a food for thought for the doctors.

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Medical journal advertisements: Our product would be

advertised in local and global medical journals and

magazines in order to attain global doctoral exposure.

Doctor gifts: We would be presenting our doctors with

some gifts on occasion. Diaries, metal pens and dinner

sets are one of the gifts our company wills to convey to

the doctors as a gratitude to approve our product to the

patients.

PUBLIC RELATIONS

Newspaper article: We will be publishing awareness

against arthritis and spondylitis through the

effectiveness of our medicine elements, naproxen and

rabeprazol. We would be disseminating these articles

quarterly which mean four times a year to keep people

abreast of the demerits of the diseases we are trying to

grow awareness against.

Old home: We would be providing old homes with free

samples. This would actually be a part of our CSR

activities. Old homes are a beneficial potential target

for us as there are many forty above aged women

ambivalent. There will be a doctor who will suggest our

medicine. And since this is a huge favorable potential

market site for us, they will hence create massive word

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of mouth which is basically the final expectation or

outcome for us from this particular CSR excursion.

“Rapple booths”: We would be creating “apple shaped

booths” beside lakes in all the divisional cities in the

country, which would be named as “Rapple Booths”. We

will give free check-up to the people visiting the booths

and there will be a paid doctor by us to diagnose them.

For their various health problems, we will suggest them

our other products of the brand and we will also diagnose

them on regards of their current bodily pains. If we find

anyone matching our Raproxain criteria, then we will be

giving out the medicine for free.

This will ensure rapid word of mouth spread by the

visitors of the Rapple booth and since most of the

morning park goers are above 40 and close to 40, this

market capture expedition will increase more consumers

because-

The effect of painkillers work very fast especially

on this age group.

This specific age group is the focal gateway to

penetrate a family circumference.

Sales Promotion

Incentive to trainer: Sports trainers or physicians will

get one time incentives for recommending our product to

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their students and peers. It will be monitored

subsequently with time to enhance the rewarding process.

Incentive to shopkeepers and sales personnel:

Pharmaceutical shopkeepers will get one ‘rapple box’ to

sell if he deposits twenty vacant boxes to our local

wholesale outlets. He will also avail himself to 10

percent commission on the total monthly sales that he

makes. We want to establish our brand as a shopkeeper

amicable company and we want Raproxain to be their apple

of the eye.

Sales Meeting: We will organize a half yearly divisional

sales meeting where all the sales personnel will be

invited. There we will discuss and declare the total

sales of the last six months and let them know about the

up-gradation Raproxain is attaining when it is being

marketed for the next six months. And the sales target

and expectations are also going to be announced for the

next 6 months. There will be incentives for the

divisional best seller and runner up and the third place

as well. This incentive can be monetary, non-monetary or

both, but must be substantially lucrative.

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Promotional Budget

promotional forecasting

raproxain® 20s pack

Criteria medicinespecialists

orthopedicsurgeons

rheumatologists

gyminstructors

sportscoach

no. of persons approached 350 200 50 170 38

no. of prescriptions forraproxain/week 2 2 5

no. of packs suggested perprescription 2 2 2

monthly pack needs 5600 3200 2000 1417 283

annual need of tablets 1344000 768000 480000 340000 68000

total number of tabs required 3000000

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Packaging

Below are the packagings of two of the competing brands of our

product.

Napro-A by ACME Pharma Sonap by SquarePharmaceuticals

Both the packets have more similarities than differences, and

the subtle dissimilarities of one from another, throughout the

industry, is not enough to position the medicine, in terms of

outlook, uniquely in the minds of the customer as something

different.

The basic functions of packaging are promotion, protection,

identification and description. Driven by the significance of

differentiation, we have come up with a new and totally

different packaging that will surely attract people’s

attention and capture mind share. The idea which inspired and

defined our packaging came from one of the most recognizable

expressions around us all: "An apple a day keeps the doctor away."

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The tablets will come in an apple shaped container made

of Polybutylene succinate (PBS), polycaprolactone (PCL), which

are synthetic made biodegradable plastic materials. This

container will look like an apple

(slightly smaller), and will be called RRapple. It will have

the same colour combination as the real one, and can be opened

by rotating the two halves (upper and lower, along the

diameter) in opposite directions to reveal a hollow chamber

inside. The lower half of the sphere inside will house all the

tablets in layers, one on top of the other, in circular

strips, with the bottom strip containing the least number of

tablets, and the one along the diameter inside will contain

the most due to the shape of space available. The literature

will be folded and placed inside the upper half of the sphere.

Refer to the figures below (not accurate samples):

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http://en.wikipedia.org/wiki/Polycaprolactone

http://en.wikipedia.org/wiki/Polybutylene_succinate

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"An Apple A Day Keeps The Doctor Away" will be printed on the outersurface of the apple.

Along with the specifications of Raproxain®

There is no other packaging except cartoons in which the apples will

be shipped from factory to the pharmacies, out of sight of the

public.

Each Rapple will consist of 20 tablets. If someone buys the full

amount, then he or she gets to take the apple, and store the tablets

inside it at home. On the other hand, if someone wishes to buy any

amount less than 20, then the retailer will simply cut off the

required number of tablets from the strip inside the Rapple and sell

on per piece basis. In this case, however, the customer will not get

the apple; rather, it will be the retailer who gets to keep it to

accommodate the remaining number of tablets inside the apple unsold.

Justification

Package is easy to manufacture, or subcontract to suppliers,

and cost of production is not high.

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No need for tertiary packaging, saving costs.

The apple package looks creative and is interesting, which

will grab people’s attention, when displayed on the shelf at

pharmacies.

The target market is the top of the pyramid. These people can

afford to buy the entire apple with 20 tablets all at once,

and hence has the derived mentality to store at home in

case of emergency such as sudden pain. So, the apple will

sell.

Will serve as alternative storage container for various small

items and a toy for children after the tablets are used.

People in our country usually do not consult doctors when they

suffer from minor pain that they know of and buy painkillers

themselves, sometimes with suggestions from the pharmacist. In

such a scenario, the apple will market itself with it

differentiation from all other packaging of competing pain

killers.

Other justifications are explained in Planet section of the

report.

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Place

Placement (or distribution) refers to how the product gets to

the customer; for example, point-of-sale placement or

retailing. It consists of the channel by which a product or

service is sold, in which geographic region or industry, to

which segment of the population etc., and also referring to

how the environment in which the product is sold in can

affect sales.

The normal distribution channel of pharmaceutical products in

Bangladesh is given below:

The distribution process of NM Pharma will be:

The medicine manufactured in the factory in Gazipur will be

housed in the central warehouse in the same district. From

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there, it will be distributed to the depots in the seven

divisional cities of the country, and subsequently supplied to

the local drug stores.

NM Pharma has direct distribution system; we do not use any

wholesaler or middleman in our distribution system. The

distribution system includes three channel members:

1. Distribution Department

2. Sales representative

3. Drug store

The sales representatives collect information about the

requirements of the drug store and inform the distribution

department of NM Pharma. After analyzing the information

collected, the distribution department decides and sends goods

to the depot, and from the depot the goods are sent to the

drugstores which are at the end of the distribution system.

The distribution system of NM Pharma is shown graphically

below.

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Key Points of Distribution

1. Medicine are stored as per requirement considering

temperature/sunlight, moisture etc.

2. Delivery schedules are developed and prepared in

consultation with the sales force.

3. Execution of order (invoicing) is done in time.

4. Issue of goods in line with FIFO

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5. Packing of the stocks is done meticulously.

6. Physical delivery is arranged as per schedule.

7. Collection and deposition of sales proceeds are made

through bank, increasing transparency.

8. Vigilance towards market demand for managing the right

product at the right time.

9. Cash and stock balance are checked on regular basis.

10. Restrict entrance to the premise.

11. Sales order is always signed.

12. Daily sales performance should be notified to national

sales manager through ERP (Enterprise Resource Planning)

software.

13. Controlling office expense.

14. Temperature recording of the warehouse is done

regularly.

15. Drug license, trade license and fire license are always

in order and up to date.

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Process

Process brings a service dimension to the entire value chain.

Since our selling proposition is our intangible quality of

providing care, it is important that we achieve this through

diverse ways. One of our proposed methods is through the

training of people and employing them to perform primary

treatment and then sale of the pain killer in old age homes,

and set up booths in parks along it’s walkways, etc. where

individuals often face headaches or various kinds of pain,

making it a necessity to have large supplies of the required

drug at hand. This will result in extensive marketing

eventually as people will come to know of this unique process

of providing service. This again highlights NM Pharma’s target

of providing care in the form of medicine. This will bring a

promotion dimension as well to the process we are using.

People

The people who are trained on how to market our product to

physicians, pharmacists etc. are an integral part of providing

comprehensive service. The information that these employees of

NM Pharma impart and their interactions with potential

customers dictate how the service is perceived and valued.

Since our orientation is towards care, our personnel will be

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specifically trained to talk about the benefits of Raproxain

which may be required at any time.

Physical Evidence

Even though the care received from consumption of our pain

killer in intangible, the apple shaped package is visible and

tangible. Not only is it visible in stores, but also can also

be brought home. This will serve as evidence in one’s

surroundings that he or she is comfortable and relaxed in,

increasing the chances of greater acceptance and satisfaction

with our product, because the guarantee of relief from pain

and consequent positive result will facilitate that. Parents

watching their child play with an empty apple will not be out

of sight of Raproxain for long.

Planet

Planet refers to the societal dimension of marketing. It calls

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to be eco-friendly and resource-efficient. We will be focusing

on the 3 Rs – Reduce, Reuse and Recycle.

Our package is made of recyclable material. Alternative use of

the apple has already been discussed, and we have come with a

strategy to encourage the stakeholders – customers and

retailers - to reduce and reuse.

Pharmacy

Not everyone who will buy Raproxain will be buying the apple

if they choose to buy any less than 20 tablets. So the

pharmacy or licensed dealer will experience a growing number

of unsold apples that they cannot dispose profitably.

So, NM Pharma will give one free apple with 20 tablets for

every 10 empty apples that the vendor returns to us. This will

be a win-win situation, because the pharmacy will be able to

increase its profits by large, as the tablets will be sold at

market price that was actually free of cost for the retailer.

On the other hand, we will be able to collect the unsold

apples for reuse, thereby lowering material cost and reducing

the demand for non-biodegradable plastic containers.

Customer

Our customers will get 10% discount on the purchase of one new

20 tablet apple pack for every empty apple container that he

or she will return to the retailer. So, for example, if a

person returns three empty apples to buy one new apple, the

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price will be 30% lower. The implication of this strategy is

massive, because this is a win-win-win scenario:

Customer gets discount

Retailer collects empty apple packages which he or she

will return to the company to get free tablets, the

revenue from sale of which will be entirely profit.

We get back empty packages for reuse.

Conclusion

We have strategized 360 degree marketing to ensure sales, and

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of increasing our market share. Considering the humane

industry we are operating in, we have the scope of expanding

our business further, and at the same time, contribute towards

the betterment of the society.

NM Pharmaceuticals is here because it cares.

THE END

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Final Final Final 1

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