Term Paper of Beximco Pharmaceuticals Ltd

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© 2014Bexcimco. All right reserved Version: 1.1

Date: 04/25/15

Version: 1.1

Date: 04/25/15

Term paper on BaximcoPharcuetical Limited

Submitted to Professor Dr. M. Mahmodul Hasan School of Business MBA Program Submitted by: Golaper Kata

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LETTER OF TRANSMITTAL Date: 25thapril, 2015 Prof. Dr. M. Mahmodul Hasan Lecturer, School of Business, MBA Program North South University.

Subject: Submission of the report on “BaximcoPharcuetical Limited”

Dear Sir, We take great pleasure in submitting the term paper on ―Term Paper on BaximcoPharcuetical Limited‖; which was approved by you for the course Marketing Management (BUS 620). This report is very much relevant to what we have learnt in this course. It truly reveals the real essence of marketing and will certainly help us understand the course better. We have tried to make this report as comprehensive as possible within the given time and we would feel gratified if our paper serves its purposes. Therefore, we would be obliged if you could please accept this report. Sincerely yours,

Group Members: Golaper Kata Name ID Signature

Baly yasmin 1321056060

Molla Ashiqul haq 1230131660

Shahriar Rohmotullah 1310380660 Md. Ahasan Habib 1430772660

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ACKNOWLEDGEMENT (All praises belongs to Almighty Allah, the most beneficent, more merciful) We would like to take this opportunity to express our profound gratitude and deep regard to our honorable course instructor, Professor Dr. M. Mahmodul Hasan, for his exemplary guidance, valuable feedback and constant encouragement throughout the duration of the project. His valuable suggestions were of immense help throughout our project work. His perceptive criticism kept us working to make this project in a much better way. Working under him was an extremely knowledgeable experience for us. Next we would like to thank Shariful Islam, Asst. manager, HRM at Beximco pharmaceuticals Ltd for his continued support with all the necessary information required for the completion of this report.

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EXECUTIVE SUMMARY Beximco Pharmaceuticals Ltd is a leading manufacturer of medicines and active pharmaceutical ingredients (APIs) based in Bangladesh. Incorporated in the late 70s, Beximco Pharmacy began as a distributor, importing products from global MNCs like Bayer, Germany and Upjohn, USA and selling them in the local market, which were later manufactured and distributed under licensing arrangement. macy) is a leading manufacturer of medicines and active pharmaceutical ingredients (APIs) based in Bangladesh. Incorporated in the late 70s, Beximco Pharmacy began as a distributor, importing products from global MNCs like Bayer, Germany and Upjohn, USA and selling them in the local market, which were later manufactured and distributed under licensing arrangement. In Chapter One, We have discussed about the definition of Marketing Management (Theory 2000 – 2010 & Theory 2011 – 2015) and how it relates with Beximco Pharmaceuticals Marketing Management. We have also mentioned the mission, vision and corporate strategy of the company. In Second Chapter, we have gone through a SWOT and PESTEL Analysis of Beximco Pharmaceuticals. We have also identified Michael Porter‘s Five Forces of Beximco Pharmaceuticals. In Third Chapter we have focused on the Marketing Strategy & Core Marketing Concept and Market Segmentation of Beximco Pharmaceuticals and we have also discussed about Marketing Mix (7P and 4C) of the company. The fourth chapter focuses on Value Chain Model, Total Quality Management (TQM), Loyalty, Quality and Control of Rossini. The fifth chapter discusses about Brand & Branding. We have conducted the Box Analysis of Brand Elements (6 Categories) and the Brand Dynamic Pyramid of Beximco Pharmaceuticals. The sixth chapter focuses on The Five M‘s of Advertising and Mass Communication of Beximco Pharmaceuticals we have discussed about the Marketing Budget & Expenditure, Pricing Strategies and Breakeven Analysis with Chart/Graph in seventh chapter of this report. We have concluded our report after giving a suitable and reasonable recommendation to the assigned company.

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Table of Contents

Topic Page

No.

CHAPTER ONE

Introduction 1

Defining Marketing Management (Theory 2000 – 2010 & Theory 2011 – 2015)

2

Beximco Pharmaceuticals Marketing Management 2

Mission 3

Vision 3

Business Plan and Corporate Strategy 3

CHAPTER TWO

SWOT Analysis 4

PESTEL Analysis 5

Michael Porter’s Five Forces 6

CHAPTER THREE

Marketing Strategy & Core Marketing Concept 7-9

Market Segmentation 10

Marketing Mix (7P) and (4C) 11-12

CHAPTER FOUR

Value Chain Model 13-14

Total Quality Management (TQM) 15-16

Loyalty, Quality and Control 16

CHAPTER FIVE

Brand & Branding 17

Box Analysis of Brand Elements (6 Categories) 17-18

Brand Dynamic Pyramid 19-20

CHAPTER SIX

The Five M‘s of Advertising 21-22

Mass Communication 23

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a) Advertising Budget & Campaign Cost 23

b) Sales Promotion & Budget 23

c) Events & Experiences/Sponsors 24-25

d) Public Relation/Government Lobbying 25

e) Corporate Social Responsibility

CHAPTER SEVEN

Marketing Budget & Expenditure 26

Pricing Strategies 27-28

Breakeven Analysis with Chart/Graph 29-31

Conclusions 32

Recommendations 33

References 34

Appendix 35

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Chapter One Introduction Beximco Pharmaceuticals Ltd. (Beximco Pharmacy) is a leading manufacturer of medicines and active pharmaceutical ingredients (APIs) based in Bangladesh. Incorporated in the late 70s, Beximco Pharmacy began as a distributor, importing products from global MNCs like Bayer, Germany and Upjohn, USA and selling them in the local market, which were later manufactured and distributed under licensing arrangement. Over the years the company has grown from strength to strength and today it has become a leading exporter of medicines in the country winning National Export (Gold) Trophy a record four times. Benchmarked to global standards, Company‘s manufacturing facilities have been accredited by the major global regulatory authorities, and it has so far expanded its geographic footprint across all the continents. Beximco Pharmacy currently has a portfolio of more than 500 products encompassing all major therapeutic categories, and it has successfully differentiated itself by offering technology driven specialized products. With a dedicated workforce of around 3,000 people, the simple principle on which it was founded remains the same: producing high-quality generic drugs and making them affordable to our people.

With decades of contract manufacturing experience with global MNCs, skilled manpower and proven formulation capabilities, the company has been building a visible and growing presence across the continents offering high quality generics at the most affordable cost. Ensuring access to quality medicines is the powerful aspiration that motivates more than 2,700 employees of the organization, and each of them is guided by the same moral and social responsibilities the company values most

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The two definition of Marketing Management are: Definition of Marketing Management (Theory 2000 – 2011)

Marketingmanagement is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Definition of Marketing Management (Theory 2012 – 2016 ±) Marketing management depends on the size of the business and the industry in which the business operates. Effective marketing management will use a company's resources to increase its customer base, improvecustomeropinions of the company's products and services, and increase the company's perceived value . BeximcoPharmacy has created the art and science to choosing its target markets and getting, keeping, and growing its customers through creating, delivering, and communicating superior customer value and effectively managing its resources to increase customer base and increase customer opinions/satisfaction, product & services and company‘s perceived value. BeximcoPharma‘s core values define who they are; guide it to take decisions andhelp realize its individual and corporate aspirations, commitment to quality. It adopts industry best practices in all its operations to ensure highestquality standards of our products.BeximcoPharmacy committed to satisfying the needs of its customers, both internal and external.It gives high priority on building capabilities of its employees and empowers them to realize their full potential.

Mission: BeximcoPharmacy committed to enhancing human health and well-being by providing contemporary and affordable medicines, manufactured in full compliance with global quality standards. They continually strive to improve their core capabilities to address the unmet medical needs of the patients and to deliver outstanding results for our shareholders.

http://www.businessdictionary.com/definition/industry.html

http://www.businessdictionary.com/definition/operate.html

http://www.businessdictionary.com/definition/effective.html

http://www.businessdictionary.com/definition/customer-base.html

http://www.businessdictionary.com/definition/improve.html




http://www.businessdictionary.com/definition/opinion.html

http://www.businessdictionary.com/definition/product.html

http://www.businessdictionary.com/definition/services.html

http://www.businessdictionary.com/definition/perceived-value.html

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Vision: Beximco‘s vision will be one of the most trusted, admired and successful pharmaceutical companies in the region with a focus on strengthening research and development capabilities, creating partnerships and building presence across the globe.

Business Plan They continually strive to improve their core capabilities to address the unmet medical needs of the patients and to deliver outstanding results for their shareholders.

Corporate Strategy Their main strategy of Beximcopharmacy is to ensure highest quality standards of their products. It encourages transparency in everything it does and strictly adheres to the highest ethical standards. They are accountable for their own actions and responsible for sustaining corporate reputation. BeximcoPharma actively taking part in initiatives that benefit our society and contribute to the welfare of our people. It takes great care in managing its operations with high concern for safety and environment.

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CHAPTER TWO SWOT ANALYSIS FOR BEXIMCO PHARMA

Strength: 1. Patent of Beximco pharmacy. 2. Beximco pharmacy is successful to establish its brand strongly 3. Beximco pharmacy have a very good reputation among customers with its superior quality 4. Strong distribution channel 5. High tech manufacturing facilities 6. Global footprints

Weakness: 1. Managing people/staff effectively is a key challenge for Beximcopharmacy 2. High cost structure

Opportunities

1. There is scope to more product extension based on R&D 2. Arrival of new technologies for the manufacturing process 3. Removal of international trade fairs Loosening of regulations

Threats

1. Emergence of new competitors in the market 2. Increased trade barriers in its global footprints

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PESTEL ANALYSIS OF BEXIMCO PHARMA

Political 1. Political instability of Bangladesh 2. Bangladesh Government Environmental Regulations 3. Labor Law of Bangladesh

4. TAX policy of Bangladesh

Economical 1. Economic growth of Bangladesh 2. Inflation rate of Bangladesh 3. Interest rates

Social/Socio-Cultural 1. Health Consciousness of people 2. Population growth rate of Bangladesh 3. Career attitudes

Technological 1. R&D activity of Beximco 2. Automation in Manufacturing 3. Fast change in technology

Ecological/Environmental 1. Climate Change of Bangladesh

2. Inconsistent Weather

Legal 1. Labor Law 2006 & 2013 amendments 2. Company Law

3. Taxation Law

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Michael Porter’s Five Forces for BeximcoPharma

Supplier Power

Supplier concentration is high for BeximcoPharma

Switching cost is not so high for BeximcoPharma

Threat of new entrants

Threat of new entrants is moderate because of

Different complicated compliances from Bangladesh Government

Access to inputs Economies of

scale is very high Capital

Requirements is very high for new entrants

RIVALRY

Threat of substitutes

Buyer indignation to substitutes is not that high in the Pharmaceutical industry

Price performance is low in the Pharma industry

Buyer Power

Buyer power is moderate in the pharmaceutical industry

Bargaining leverage is low in this industry

Buyer volume is very high in the pharmaceutical industry

Brand Identity of BeximcoPharma plays a big role in buyer power

Degree of Rivalry Fixed cost is high in

this pharmaceutical industry because of mass manufacturing unit

Industry growth is high in recent times

Switching cost is very high for the players already in the pharmaceutical industries

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CHAPTER THREE Marketing Strategy To identify the Marketing Strategies of BeximcoPharmacylet‘s use the below marketing concepts: We can find the strategies of firms by the roles they play in the target market:

Leader

Challenger

Follower

Nicher

Company focused Competition focused

Pushes the boundaries Leader Challenger: BeximcoPharma

Stays within boundaries Niche Follower

Where Square Pharma is leading the industry in terms of market share there is BeximcoPharma who is lying in the Market Challenger position in terms of market share.

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Strategic Groups for BeximcoPharma

In the strategic group they Beximco Pharmacy fall under Group D which is Broad line, medium manufacturing cost, low service, and low price.

Why Beximco Pharma Falls under

Group D?

Beximco Pharma uses a broad line in

its manufacturing process with

medium cost and low service since it is

mostly focused on the quality of the

product and offer in lower prices.

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COMPANY ORIENTATIONS TOWARD THE MARKETPLACE FOR BEXIMCO PHARMA From the mission, vision, business plan and corporate strategy of Beximcopharmacy we can easily say the Beximcopharmacy focuses on Product concept since Beximcopharmacy focuses on offering the most quality.

1. Target Markets, Positioning, and Segmentation: BeximcoPharma‘s target segments for different production are well defined, each product are well positioned and segmentation done on well planned manner

2. Offerings and Brands: Beximcopharmacy offer differenced products to its customers

3. Value and Satisfaction: The products are successful because it delivers value and satisfaction to the target buyer.

4. Marketing Channels: For communication channels and sometimes direct selling

concept. Distribution channels display, sell, or deliver the physical products.

5. Supply Chain:Beximcopharmacy has a longer channel stretching from raw materials to finished goods. It represents a value delivery system.

6. Competition: Beximcopharmacy should consider Square pharmacy, Acme

Phamra etc. as the rivals and take marketing strategies appropriately to be in the competition with them.

7. Marketing Planning: This process consists of analyzing marketing opportunities,

selecting target markets, designing marketing strategies,

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1) Segment Marketing Beximcopharmacy use segment marketing concept. A market segment consists of a group of customers who share a similar set of needs and wants. The Beximcopharmacy identifies the segments and decides which one(s) to target. Market segments can be defined in many different ways as follows:

One way to carve up a market is to identify preference segments

Homogeneous preferences exist when consumers want the same things

Diffused preferences exist when consumers want very different things

SEGMENTING CONSUMER MARKETS FOR BEXIMCO PHARMA

Demographic Segmentation for Beximcopharmacy Beximcopharmacy is using Demographic segmentation base on the need of the different type of consumers. In demographic segmentation the market is divided into groups on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class. Consumer needs, wants, usage rates, and product and brand preferences are often associated with demographic variables. Demographic variables are easy to measure.

Geographic

Demographic

Psychographic

Behavioral

Beximco Pharma segment its market

based on the geographical need found

from its R&D wing.

Beximco Pharma offers different

types of products based on

demographic segmentation

Beximco Pharma very seldom use

psychographic segmentation

Beximco Pharma seldom use

behavioral segmentation since its

operating in pharmaceutical

industry

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Marketing Mix and (7P + 4C):

This business tool will help BeximcoPharmacy marketers to determine what product related offerings to be made, at what price, which the targeted customers will be, how to promote the product to the masses, which point of distribution to be selected and so on. There are two ways of marketing mix, a combination of which a BeximcoPharmacy marketer can use when dealing with the target segment:

Price decisionIn Beximco pharma Some examples of pricing decisions to be made include:1. Price flexibility2. Price discrimination3. Seasonal pricing

Place (Distribution decisionsDistribution is about getting the products to the customer:1. Distribution channels2. Market coverage (inclusive, selective, or 3. exclusive distribution)

Specific channel members4. Inventory management.5. Warehousing6. Distribution centers,Transportation8. Order processing.

Promotion Decisions:promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response.decision include:1. Promotional strategy,Advertising

2. Personal selling and sakes force3. Sales promotion

PeopleIn Beximco pharma they are focus on the customer in such way:1. BPL‘s success is based on attracting, developing and retaining talented and motivated employees.2. BPL has highly educated white-collar employees comprising of approximately 76% of total BPL‘s workforce.

Product DecisionsThe term ―product‖ refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:1. Brand name2. Functionality3. Styling4. Quality5. Safety6. Packaging7. Repairs and Support

Physicial Evidence1. Beximco pharmaceutical provide samples of new medicine or medicines that they want to increase sales to doctors from time to time.2. Beximco Pharmaceuticals Limited has sustained a good image from the time it started its operation, but to reach the top position in terms of overall image, it has to emphasis more on the quality, availability and presentation aspects of

ProcessIn Beximco pharma Some examples of process decisions to be made include:1. Beximco pharma ranging from the color to the design.2. Beximco pharma frequently arrange seminars and symposia covering a wide range of medical topics attended by members of health care community.

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Marketing Mix and (4C):

CLIENTSBeximco Pharmaceuticals should undergo a market research through which they can understand what kind of product customers are looking for and what impression do they have in mind when they think of.

COSTS: All costs should be considered while designing the product which means the costs incurred to make the Products and the costs incurred by the customers to gain the product. In this way they can do appropriate pricing and make the customers feel that Beximco Pharmaceuticals understands what a customer goes through to purchase a watch in terms of costing.

CommunicationsAll sorts of communications done between Beximco Pharmaceuticals and its clients should be clear and engaging so that consumers do not feel confused about the products and customers feel interested to buy the product

ConvenienceBeximco Pharmaceuticals needs to understand the appropriate locations where the distributions can be done easily from the perspective of the customers so that the products gain a wide reach.

Target Marketing

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CHAPTER FOUR

The Value Chain:

The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product. Beximco Pharmaceuticals Ltd (BPL) is a leading manufacturer of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. The company is one of the largest exporters of pharmaceuticals in the country and its state-Of-the-art manufacturing facilities are certified by global regulatory bodies of Australia, European Union, Gulf nations, Brazil, among others. The company is consistently building upon its portfolio and currently producing more than 500 products in different dosage forms covering broader therapeutic categories. . Beximco Pharmaceuticals Ltd (BPL) should focus to create value for its customers.

Figure: Porter‘s Generic Value Chain

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A) Primary activities:

1) Inbound logistics (material procurement): Beximco Pharmaceuticals Ltd (BPL) needs to find ways how cost effectively procures its raw materials for the products. Quality raw materials will ensure quality finished products.

2) Operations (turn into final product): Global MNCs like Bayer, Germany and Upjohn, USA is good in technology hence they possess advanced production methods to turn the raw materials into quality final product. The whole idea should be about turning the raw materials into final product effectively and efficiently.

4) Marketing (marketing and sales): Marketing and Sales should be such that the target market can be influenced. Marketing and Sales approach for product are more formal and sophisticated.

5) Servicing (service after the sale): After sales service should make the customers at ease so they don‘t fall into hesitation or difficulty after buying the product. Beximco Pharmaceuticals Ltd (BPL) should have the image in the customers‘ minds that after buying the product they don‘t have to fall in a problem in case an after sale is required. B) Support activities:

1) Procurement: A well trained procurement is required to ensure quality supply chain management. The inputs needed to produce watches are sophisticated in nature and hence care should be taken so that procurement ensures quality inputs. 2) Technology development: As said earlier global MNCs like Bayer, Germany and Upjohn, USA is good an advanced technology for which top quality production is not a problem. BeximcoPharma is one of the largest exporters of medicines in Bangladesh, winning National Export (Gold) Trophy a record four times. . 3) Human resource management (HRM): planning is the core area of all the functions of management. It is the foundation upon which the other three areas should be built. Planning requires management to evaluate where human resource of the company is Currently, and where it would like to be in the future. From there an appropriate course of action to attain the company's goals and objectives is determined and implemented.

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4) Firm infrastructure: This refers to an organization's structure and its management, planning, accounting, finance and quality control mechanisms. BeximcoPharmaceuticals Ltd (BPL) should ensure that they have a proper management who can Manage properly the whole operations, have an expert team looking after finance and accounts so that no fraud takes place and proper budgeting can be done and maintain strict Total Quality Management (TQM) so that the final products are strictly quality controlled.

TOTAL QUALITY MANAGEMENT

Quality ControlDepartment Quality control department makes all types of chemical assay and chemical analysis find the result in terms of potency, presence, identity, stability etc. The persons working here are responsible for the quality of the products. This is actually the analytical part of the plant.

Working Division of Quality Control Department

Analytical section

Microbiology section

Packaging section

Analytical Section:

Analytical section of Quality Control Department performs analytical tests. Analytical

tests are mainly of two types as follows:

Quantitative

Qualitative

Activities of Quality Control Department:

# Sampling

(A quality control officer does it when Raw materials arrive in Warehouse)

# Analysis

(The analyst analyses the sample according to the specification)

# Checking

(After the tests, the results are checked)

# Final approval

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(The Q.C manager verifies the result)

# Collection

(A Q.A officer collects the results of the sample that was assigned previously)

QUALITY ASSURANCE

Quality Assurance is an organized department in Beximco Pharmaceuticals Ltd. which deals with ensuring the quality of the product up to the end user. In1980s the approach for assuring product quality extended the responsibilities of quality control far beyond the area of testing and compliance check, and the concept of Quality Assurance was developed: QA=Product design + GMP + QC + Quality goal activities The activities of Quality Assurance are as follows:

Approval of source

Checking of Dispensing operation

In process checking of all production area

Product sampling, release

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CHAPTER FIVE

Brand & Branding

Brand Story "We are happy with the progress achieved in the first half of 2010 and our achievement during the period reinforces our focus on different strategic priorities which would enable us to deliver broader range of medicines for our patients and greater value for the shareholders" - as the Managing Director of the company was speaking. The Company was awarded Super brands for the year 2010-11 recently. The company delivered strong performance during the first half of the year 2010 with an impressive 28% growth over the corresponding period of 2009. This performance was largely driven by strong growth of key brands, as well as excellent response with 28 new products launched during the period. The company developed and registered over 50 generic formulations for launching in the current year which will significantly strengthen its product portfolio. Brand Leadership As survey showed that 27 of BPL‘s products are found to be brand leaders out of 47 products surveyed while 10 stand at second place

Box Analysis of Brand Elements (6 categories) Brand elements are devices that identify and differentiate the brand. Multiple brand elements application may strong the brand equity. The outcome of this activity can be judged by what consumers would think or feel about the product if the brand element were all they knew.

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Box Analysis of Brand Elements (6 categories)

Brand Building

Memorable Bexcimco

A necessary condition for building brand equity is achieving a high level of brand awareness. How easily do consumers recall and recognize the brand element, and when—at both purchase and consumption? Beximco is short and memorable brand name.

Meaningful --

Choosing brand elements to build awareness, brand elements can also be chosen whose inherent meaning enhance the formation of brand associations. Brand elements may take on all kinds of meaning, varying in descriptive, as well as persuasive.

Likable Bexcimco

Independent of the product or service, how much would consumers like the brand elements. Beximcopharma‘s medicines are one of the most likable products among the customer.

Defensive

Transferable -- The forth general criterion concerns the transferability of the brand element- in the both a product category and geographic sense.

Adaptable Bexcimco

The more adoptable and flexible the brand element, the easier it is to update it. For example, logos and characters can be given a new looking or a new design to make them appear more modern and relevant. As pharmaceuticals company Beximco has a strong R&D department so they are frequently developing their product.

Protectable Bexcimco

‗Beximco‘, the brand element is protectable-both in a legal and competitive sense. In term of legal considerations, it is important to1.choose brand elements that can be legally protected on an international basis, 2.formally register them with the appropriate legal bodies, and 3. Vigorously defend trademarks from unauthorized competitive infringement

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Brand dynamic Pyramid:

The firm spent 30 years tracking brand-health studies from thousands of organizations. It then used this research to create its original model. The pyramid, as shown in figure, illustrates the five key stages that customers go through with a brand, starting with basic awareness and finishing with complete loyalty. The "Brand Pyramid" is a useful tool that can help you think about where your customers are on this journey to loyalty. In this term paper, we'll explore how Beximco can use it to increase people's loyalty to your brand, product, or organization

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Level 1: PresenceAt this level, customers are aware of your brand, but little else. They may have tried your products and services before, but they have no emotional attachment to them. We think Beximco successfully pass this stage.

Level 2: RelevanceAt this level, customers start to think about whether the brand meets

their wants and needs. It's here that they begin comparing the cost of your products with respect to the value they provide. Customers begin asking questions like: Does this brand fit my needs? Is it worth it? Being a customer of Beximco pharmacy we got positive answer from the above questions.

Level 3: PerformanceHere, customers begin comparing the brand with competing

brands, to see if it delivers on its potential. They're also starting to associate the brand with a specific identity, and they're beginning to recognize it and associate with it. By now, the brand is on the customer's "short list" of brands to choose from.

Level 4: AdvantageAt these level, customers has determined that there is a distinct

advantage to using the brand, compared with others. They're also beginning to associate the brand with their emotions and with their sense of self. Because they are still looking for the X factor which give them the competitive advantage than their competitor.

Level 5: Bondinghere, customers have established a bond with the brand. They've

determined that cost, advantage, and performance are all at levels that they like. This, in turn, encourages them to exclude other brands in favor of this one.

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CHAPTER SIX The Five M’s of Advertising

Message

Mission

Money

Measurement

Media

Celebrate every minutes of

being alive by Providing hope & ensuring a better future

Through creating strong emotional attachment building a strong bonding

Initially Apx BDT 25,00,000

Customer from all around the world

Telavision,magazines,billboards,

internet & social media

Beximco's 5 M

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The five M‘s of advertising provide a framework by which you can create an advertising platform. First, the firm must decide what the purpose of the advertisements will be. This is called the mission. Monetary constraints usually determine how large any project can be. Since measuring changes in customer opinion can be time consuming and costly. MISSION First of the entire marketing manager must be clear on the company‘s purpose for advertising. ―Increase in sales figure‖ will be a very broad and to a certain context a vague objective. According to Mr. Philip Kotler, a renowned authority in this field, there can be three possible objectives behind. MONEY After the objective has been decided upon; the next step is to decide upon the budget. There are several methods for deciding on the advertising budget. The most common among them is the percentage of sales method. But then like each individual each company is also different. Message Advertising is a creative process. There are slogans, themes and gimmicks that try to lure the customer in. The message of an advertisement is this creative aspect. Media This aspect of the program refers to the media that will be used to communicate the message. This can include television, radio, mail, telephone and in person contact. Choosing the right media can make or break an advertising program. Measurement Finally, Beximco must measure the effects of the program on their intended audience. It is often very difficult to measure how much the advertisements actually impacted customer interest and how much other external factors played a part.

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Mass Communication

A. Advertising budget & Campaign Cost, Sales Promotion & Budget

The main promotion activities are carried out by the medical representatives & they are covering Hospitals & Clinics, as because a new product will be launched in the market, the management can think of a launching program or an introductory program. All leading gastroenterologists, Surgeons, General practice doctors who are practicing in Hospitals, clinics in Dhaka will be invited in that campaign to make the product familiar to them. In this way the message of their products spread among the doctors. Since, it is not practical or difficult to go for nationwide campaign for a single product at once, so they focus on the doctors based in Dhaka first but they will be ready to use mechanisms procedures to ensure that the message spreads to other doctors through their colleagues to all over Bangladesh. All doctors will be provided with initial samples & other promotional items.

beximcopharma increase their Selling, Marketing and Distribution Expenses(budget) from BDT993,331(2013) to BDT1,069,778(2014)

B. Event & Experiences/Sponsor:

Bexcimco organize different types of social events, like

The Sufifest was a remarkable event laid in the golden page of history of Bangladesh

which was also sponsor was by Beximco Group

Bangabandhu international football tournament which had combats from six

nations contending to claim victory and be immortal in page of history this

tournament also sponsored by beximco Group

Sponsoring events and national sport stars and teamsOfficial sponsor of the

Bangladesh National Cricket team for the ICC Cricket World Cup 2011

Official sponsor of the FIFA friendly match between Argentina and Nigeria held in

September, 2011

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C. Public relation/Government Lobbying

The stakes are always high when it comes to marketing, managing and promoting brands and handling the media in this age of mass communication. Get it right, and Your message will hit home at the heart of your target audience. Get it wrong, and you might stir up a crisis. Beximco Group, the largest private sector industrial conglomerate in Bangladesh, They appointed Impact PR as its official public relations agency. Beximco Group's Director Finance and Corporate Affairs O K Chowdhury and Impact PR Chief Executive Officer M Shamsur Rahman signed the agreement at Beximco Group's head office. Under the agreement, Impact PR will provide public relations services to companies under the umbrella of Beximco Group and will take care of all media inquiries on a 24-hour and seven-day-a-week basis, said a press release.

D. Corporate social responsibility

CSR initiatives are an integral part of our strategic commitment, and we are always

guided by strong ethical values to operate responsibly within broader social and

economic context. Responding to the evolving needs of the society, and making a

meaningful impact on the quality of their lives are central to Beximco‘s CSR

philosophy.

From Rana a plaza victim to those affected by natural calamities, BPL always stands

by the distressed donating a large amount of medicines.

BeximcoPharmacy works together with non-profit organizations who work to

improve people's lives through research, information, and advocacy. The company

has extended support to Mobile Alliance for Maternal Action (MAMA) in

Bangladesh, as its founding corporate partner which aims to deliver life-saving

health messages to pregnant and new mother using mobile phones.

BPL continues to support JAAGO Foundation; the largest youth based volunteer

organization in Bangladesh, which aims to bring about substantial improvement in

the lives of disadvantaged people with special emphasis on their literacy and

nourishment. BeximcoPharmacy sponsors Jaago‘s various health and education

initiatives and actively takes part in celebration of special days.

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Since 2003, we have continued our ARV drugs donation to local NGOs for treating

AIDS patients in Bangladesh. The company runs its awareness campaign in the

form of rally, discussion, poster presentation, and seminar to observe World

Hypertension day, Osteoporosis Day, Asthma Day, Diabetes Day, and AIDS Day etc.

The company also sponsors a good number of scientific seminars for various

associations and societies of medical disciplines.

Through the FRF foundation, Beximco has been engaged in philanthropic activities for the last 12 years, providing medical consultation and diagnostic support both for its Employees and general people at a nominal cost. BPL also plays a leading role in promoting sports and preserving cultural heritage through sponsorship.

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CHAPTER SEVEN

Marketing Budget and Expenditure

In the previous section we talked about mass communication campaign strategies, and we have shown the budget. Our overall marketing budget will be the same, which makes the grand total shown below.

Contents BUDGET

Descriptions 2014 2013

Raw and Packing Material (Including Work in Process and Transit)* Inventory

1,768,608 1,675,642

Capital Expenditure / Project 29,734 39,234

Raw & Packing Material * Loans 431,840 409,578

Physician Sample 99,961 99,961

TOTAL 2,330,143 2,224,415

This will be our marketing budget and expenditure to rebrand Beximco Pharmaceuticals Ltd in the minds of the Bangladesh customers. It may seem a lot, but it is worth it as Beximco Pharmaceuticals Ltd will gain increased exposure, thus more profit margins.

Market growth

The market is expected to grow by 15 to 20% per annum for the next 5 years. The compounded annual growth for the previous 6 years was 15%. The next stage of growth is expected to come from backward integration to manufacture high volume raw materials, introduction of Hi-Tech manufacturing processes that are difficult to imitate products, and exports,

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PRODUCT MARKETING COSTS

Figures for Products are given: -

by EACH COUNTRY / STATE / REGION

by YEAR.

MARKETING COSTS: BY YEAR: Sales & selling costs: during product launch.

Distribution/ warehousing / handling / processing costs: during product launch.

Advertising / promotional costs: during product launch. After-sales costs. After-sales

costs: during product launch. Total marketing costs: during product launch.

Pricing Strategies

Beximco pharmaceuticals Limited maintain competition based pricing strategies. In the pharmaceuticals market there, is not much price differentiation, in general, among the different companies due to the highly competitive nature of the industry.

Steps in Setting Price(also add this figure) in slide

Select the price objective

Determine demand

Estimate costs

Analyze competitor price mix

Select pricing method

Select final price

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Price is not a very important factor due to the nature of the product. Quality is more important. However, the purchasing capacity of the patients is also an important consideration. Therefore, it is important for the companies to charge a reasonable price for their product. According the survey, most of the doctors perceive Beximco as offering reasonable pricing for their product. Beximco pharmaceuticals Limited maintain competition based pricing strategies. In the pharmaceuticals market there, is not much price differentiation, in general, among the different companies due to the highly competitive nature of the industry. Price is not a very important factor due to the nature of the product. Quality is more important. However, the purchasing capacity of the patients is also an important consideration. Therefore, it is important for the companies to charge a reasonable price for their product . According the survey, most of the doctors perceive Beximco as offering reasonable pricing for their product.

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Breakeven Analysis with Chart/Graph

Formula of the Break-even analysis

Profit = Revenue – Cost At Break-even, Revenue = Cost Profit = 0 At 2012, Beximcopharma total expense was Tk.2181521867.Since Beximcopharmais a pharmaceuticals company so there is no fixed quantity. There is different types of quantity for exampleTablet, Capsule, Suppository & DPI (unit 2,981.40 Million pcs),Liquid, Cream and Ointment, Suspension,IV Fluid, Amino Acid, Ophthalmic,Nebulizer Solution, Injectable and Inhaler (unit 63.05 Million pcs),Active Pharmaceutical Ingredients (unit 158,852kg ), Liquid Nitrogen (unit 236,597 liter ). So, when Beximcopharma revenue is Tk.2181521867 then this company reaches a break even sales or point

Revenue and Cost

Cost

Break-even point

Revenue

Quantity

Figure: Break-even point of Beximco Pharmacy, 2012 Source: Annual-Report-2012 of Beximco Pharmacy

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At 2013, BeximcoPharma total expense was Tk. 2,514,527,446.Since BeximcoPharma is a pharmaceuticals company so there is no fixed quantity. There is different types of quantity for example Tablet, Capsule, Suppository & DPI (unit 3,173.13Million pcs), Liquid, Cream and Ointment, Suspension,IV Fluid, Amino Acid, Ophthalmic, Nebulizer Solution, Injectable and Inhaler (unit 66.75Million pcs), Active Pharmaceutical Ingredients (unit 170,516kg ), Liquid Nitrogen (unit 387,153 liter ). So, when Beximcopharma revenue is Tk. 2,514,527,446 then this company reaches a break even sales or point.

Revenue and Revenue

Cost

Break Even Point

Cost

Quantity

Figure: Break-even point of Beximco pharmacy, 2013 Source: Annual-Report-2013 of Beximco pharmacy

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At 2014(Half Year ended June 30, 2014), Beximcopharma total expense was Tk.1,284,256.Since Beximcopharma is a pharmaceuticals company so there is no fixed quantity and we can‘t get any quantity from annual report. So, when BeximcoPharma revenue is Tk.1,284,256 then this company reaches a break even sales or point.

Revenue and Revenue

Cost

Cost

Break Even Point

Quantity

Figure: Break-even point of Beximcopharmacy, 2014 (Half Year ended June 30) Source: Half-Yearly-Report-2014 of Beximcopharmacy

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Recommendation Beximcopharma is the leading pharmaceuticals company in Bangladesh. Here are some recommendations for Beximcopharma. Beximcopharma is now one of a leading position for their modernization ideas and various facilities for their customers. Moreover to retain the customers, if BPL gives more importance on their marketing strategy, it will outperform their competitors. It will be more helpful if, Beximcopharma adaptation of more advance technology in the production process and improvement of compensation structure for the staffs and employees. Training facilities must be given to employees and officials to increase their efficiency and effectiveness. To retain customers, Beximcopharma should give more attention on their field force. In this regard, they can employ more talented & educated people as representative. Training facilities must be increasing the productivity of the employees that helps the Beximcopharma further to achieve its long-term goal. Trainingamenitiesin improving upon the quality of work and work-life. Beximcopharma Training facilities lead to improved profitability and more positive attitudes towards profit orientation.

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Conclusion In Bangladesh Pharmaceutical sector is one of the most developed hi tech sector that is contributing in the country‘s economy. Pharmaceutical sector is one of the express mounting sectors in Bangladesh. It is most developed scientific sector. There are 250 registered pharmaceutical companies operating in Bangladesh pharmaceuticals industry. Pharmaceuticals market is now extremely aggressive. Beximcopharma, the only Pharmaceutical industry to export their medicine to foreign country.Beximco has a strong market share and got enlisted on London Stock Exchange. They have strong capital in Bangladesh. Beximcopharma introduced HIV/ AIDS medicines. Beximcopharma is the only pharmaceutical industry that created group for resistance of Cancer and HIV/ AIDS. After knowing the whole strategic management techniques followed by Beximcopharma clear that no company can follow one from or approach from the corporate level strategy. However, Beximcopharma has also been that of a kind where they practiced different types of growth strategies, reached boom and at the same time company followed to the need for recovery stage where they have gone through the renewal strategy. But more or less it can be said that Beximcopharma preferred either growth through market developments and if not so then stability; with a consistent approach towards consumer. Well the sum up we can be stated as that with all their superior strategies and techniques they have continued to stay prosperous from centuries and hope to maintain that throughout.

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Reference Book name:

Marketing management – A south Asian perspective – 14/e by phillipkotler, Kvein

Lane Keller, Abraham koshy, and Mithileshwerjha: pearson Prentice Hall

Marketing Management (Thieteen ed.) by PhillpKotler.

Strategic Marketing Management – Meeting the Global Marketing challenges by

Carol H. Anderson & Julian W. Vince published by Houghton Mifflin Company

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2012.pdf

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pharmaceuticals.html

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beximco-pharmaceuticals-ltd.html

http://www.beximco-pharma.com/images/stories/investor/pdf/Half-Yearly-

Report-2014.pdf

http://www.beximco-pharma.com/images/stories/investor/pdf/Half-Yearly-

Report-2014.pdf

http://www.slideshare.net/tasvirchowdhury/beximco-pharmaceuticals-

presentation-in-bangladesh

http://www.beximco-pharma.com/images/stories/investor/pdf/Annual-Report-2012.pdf

http://www.beximco-pharma.com/images/stories/investor/pdf/Annual-Report-2012.pdf

http://www.assignmentpoint.com/business/report-on-beximco-pharmaceuticals.html

http://www.assignmentpoint.com/business/report-on-beximco-pharmaceuticals.html

http://www.assignmentpoint.com/science/pharmacy/quality-control-system-of-beximco-pharmaceuticals-ltd.html

http://www.assignmentpoint.com/science/pharmacy/quality-control-system-of-beximco-pharmaceuticals-ltd.html

http://www.beximco-pharma.com/images/stories/investor/pdf/Half-Yearly-Report-2014.pdf




http://www.slideshare.net/tasvirchowdhury/beximco-pharmaceuticals-presentation-in-bangladesh

http://www.slideshare.net/tasvirchowdhury/beximco-pharmaceuticals-presentation-in-bangladesh

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Appendix

Term Paper of Beximco Pharmaceuticals Ltd

Documents

Transcript of Term Paper of Beximco Pharmaceuticals Ltd