Beximco Group the largest conglomerate in the private sector of Bangladesh
EXECUTIVE SUMMARY Beximco Pharmaceuticals Industry is one of fastest growing and one of the largest foreign revenue earning sectors in Bangladesh. It is pleasure to do my internship program from such a reputed organization which is known for its renowned quality. Beximco Pharmaceutical Ltd. is a part of Beximco Group the largest conglomerate in the private sector of Bangladesh. Beximco Pharmaceuticals Ltd. started its journey as a public limited company in 1976 by registration. But the company starts its commercial production in 1980. Currently Beximco Pharma has been established as leading Pharmaceuticals Company in Bangladesh. BPL is not only fulfilling the demand of local market but also fulfilling the demand of foreign market. BPL is UN approved supplier of pharmaceutical product in the world. It is also greatly contributing to our national economy by exporting their product in abroad. Currently BPL has exports market in 19 countries including , Cambodia, Georgia, Hong Kong, Iran, Kenya, Malaysia, Mozambique, Myanmar, Nepal, Pakistan, Philippines, Russia, Singapore, South Korea, Sri Lanka, Taiwan, Ukraine, Vietnam and Yemen. For the contribution to national economy BPL has been awarded National Export Trophy several occasions. BPL has share holder over 50,000. In 2005 the total turn over of BPL was 3879.42 million. The Pharmaceuticals Industry of Bangladesh is very bright in fact we are such a country who fulfills the local demand by ourselves. The local pharmaceutical companyâ€™s produce 78% products out of the total consumption and only 21% products are been produced by foreign companyâ€™s in Bangladesh. Beximco Pharmaceutical Ltd holds the maximum 19.26% prescription market share among the all local pharmaceuticals company in Bangladesh. Its position in different therapeutic class is
also very good. To face the challenges of 21 st century BPL has a clear vision for the future and they are preparing themselves according to that manner. In 21 st century BPL want to place it as a one of the leading pharmaceutical company in Asia with comparison with other leading pharmaceutical companies. To accomplish it vision BPL are implementing aggressive strategies and relentlessly pursuing operational excellence. CHAPTER ONE: INTRODUCTION 1.1 INTRODUCTION
Medicine is directly related to human life and therefore, its manufacturers have immense social responsibility of providing safe and effective medicine, demanding uncompromising efforts, at all levels of its activities. Beximco pharmaceuticals Ltd the leading health care company in Bangladesh has been making every effort to ensure the effectiveness and safety of the medicine that it produces. Physicians and patients of the company reply on the efficacy of the medicines of Beximco Pharma at the time of critical needs demonstrating their confidence and trust on BPL products. BPL has a remarkable mission statement, which is being seriously pursued in its thoughts and actions. An increasing amount of contribution is ploughed back into social causes demonstrating BPLâ€™s commitment to the nation. As we continue to grow, it should not only benefit BPL itself but it should also positively contribute to the nation and society where we live. In BPL believe that they manufacture and sell medicine to provide health, happiness and smile back in life of our fellow citizens. We intend to help realize the ultimate aspiration of the nation for a lifetime of good health ensuring a healthier tomorrow for the people.
1.2 ORIGIN OF THE REPORT Today, practical experience is as much essential as academic education that enables someone to be successful business executive especially in the glove, competitive business environment. In order to gather knowledge and exposure regarding the organization culture, behavior the business students has to be go internship after the successful completion of their Business degree.
Stamford University Bangladesh is known for the global standard education. Due to this slogan of Stamford University, the business students of this university is known for their excellent knowledge both theoretical and also practical which makes them a competitive and more global across the globe. This internship program of mine at BPL is a process of gathering practical knowledge regarding Pharmaceutical industry in Bangladesh. Beximco Pharmaceutical Ltd is the manufacturer and marketer of pharmaceutical product under chemical divisions of Beximco Group. Beximco Pharmaceuticals is one of the leading pharmaceutical companies in Bangladesh. It also is one of the biggest suppliers of pharmaceutical product of any Bangladeshi based company. BPL is the first Bangladeshi company to supply pharmaceutical product to Riffles Hospital the most prestigious hospital of Singapore.
1.3 SCOPE OF THE STUDY The end users of pharmaceuticals products are the doctors and pharmacists. So, we need find to out the prescription market share of BPL by analyzing and collecting the prescription through the prescription survey. We also need to analyze whether the survey findings are been properly implemented and proper strategy is been taken or not.
1.4 LIMITATION OF THE STUDY Every matter has got some limitation. So, this is also not an exception. The limitation of this research are been stated bellow. 1)
Time limitation is one of the biggest limitations regarding this research. Due to lack of time larger number prescription from different parts of the country can not been collected.
The attendants of different chemist shops are sometimes not co-operative survey activities.
Sometimes the patient or the guardians sometimes do not participate with the survey people.
As I am a business students, it was sometimes become difficult for me identify the name of the product referred by the doctors in the prescription for lack training and skills.
CHAPTERTWO: RESEARCHMETHODOLOGY 2.1 RESEARCH OBJECTIVE
The main objective of this research is to identify whether there is any discrepancy between the survey finds of MRC and also the implementation of the survey findings. More broadly if we categorized the objective of this research we can find the following objective stated bellow. 1)
The prescription percentage of BPL products in comparison with different companies under different therapeutic class.
The generic percentage of BPL products under different therapeutic class.
To see whether the survey findings of MRC are been properly implemented by Central product Management Department in terms strategies.
2.2 RESEARCH TECHNIQUE For conducting and analyzing this research project the following technique are been followed which are stated bellow. 1)
In order to identify the product collecting the prescription from the patient or their guardian from the different chemist shop in Dhaka city.
Keep standing besides the chemist shop and looking for prescription coming?
Talking with the MRC and CPM authority of Beximco Pharmaceuticals whether the survey findings are been properly implemented or not.
2.3 POPULATION The population for this research project is prescription suggested by doctors of different chemist shop, hospital and clinics. The target population of this project is been stated in details in the followings. Elements: Prescriptions. Sampling Units: Hospital, Clinic and chemist shop. Area: Dhaka Metropolitan City.
2.4 SAMPLE SIZE For any research sample size is the most important factor and this research is also not an exception. For analyzing this research 496 prescriptions and 1101 products are been analyzed for identifying the market share of BPL products.
2.5 SOURCES OF INFORMATION For any research work the information play the most significant part. Because without the update information no research can be conducted successfully. Besides in this case two sources of information are been adopted for further continuation of the research project. 1. Primary sources. 2. Secondary sources.
2.5.1 PRIMARY SOURCES Before discussing about the primary sources of this research project let us try to know first of the basic concept regarding primary sources. The primary sources are that information which has been collected for the first time relevant with the research project. In this regard the primary sources are the direct personal prescription observation from the chemist shop are been used.
2.5.2 SECONDARY SOURCES The secondary sources are that information which has been already collected by some other research project. In this case of research project the adopted two secondary sources of information. 1. Internal Sources: For my project the internal secondary sources of information was the brochures, medical book and annual report of 2005 of Beximco Pharmaceuticals Ltd. Besides the also taken some other unpublished information from the staffs of MRC dept. 2. External Sources: As an external secondary source of information the taken data from some other reports of other pharmaceuticals companies.
2.6 SAMPLING FRAME There are many hospital, clinics and chemist shop in Dhaka city. I have selected the following hospital, clinics and chemist shop randomly for my research project. • BSMMU Hospital. • BIRDEM Hospital. • Dhaka Medical College Hospital. • Holy Family Hospital. • Manoyara Hospital, siddeswari. • Mitford Hospital. • Bangladesh Medical College Hospital. • Popular Diagnostic Center.
CHAPTER THREE PHARMACEUTICALS INDUSTRY IN BANGLADESH 3.1 BACKGROUD OF PHARMACEUTICAL INDUSTRY
The pharmaceuticals sector is a high-technology and knowledge-intensive industry in Bangladesh. The industry has two-tier structure. The largest firm accounts for the majority of the R&D investment in the industry and hold the majority of patents. There are a large number of smaller firms producing mostly for local markets. The pharmaceuticals industry is heavily regulated. Once a product is brought to market, pharmaceuticals companies spend heavily on marketing and promotion. The larger drug companies maintain a large sales force, which makes direct regular contact with individual prescribing physicians and other pharmaceuticals decision makers. The money spent on marketing is huge. Pharmaceuticals marketing efforts are not only directed at physicians and consumers; drug companies have also sought to directly influence pharmacist, in some cases paying pharmacist to induce customers to change their drug consumption habits. The nature of competition in this industry differs between the two sets of firms. The second tier of firms holds fewer patents and relies primarily on manufacturing off patent generic medicines or patent medicines under license. Competition between these firms takes the conventional form of competition on price, cost efficiency and quality. In contrast, a few large research-based pharmaceutical companies invest heavily in R&D and hold the bulk of the patents, and can often enjoy substantial market power while these patents are in force. For these companies, competition is not primarily on the basis of price, but rather on the basis of marketing and innovation. These companies compete to develop entirely new drugs which treat new medical conditions, improve upon existing drugs, or serve as substitute for existing patented drugs. Some large pharmaceutical companies in this tier export and compete in international markets. The scenario of pharmaceutical industry can be depicted in two parts-before the Drug policy ordinance, 1982 and after the Drug policy ordinance, 1982. Before the ordinance there were 177 pharmaceutical companies in the country but local production is used to be dominated by multinational drug companies which
manufactured 75% of total production. 25 medium sized national companies manufactured about 15% of total production. 133 small local based companies produced the remaining 10%. The multinational companies were fully armed with modern technology for producing sophisticated essential drugs, but they were only engaged, t a large extent, in formulation of simple drugs including many useless products. At that time, the unregulated drug market of the country had very little favorable conditions for pharmaceuticals to over price their products. Near monopoly market conditions mean that local firms could not compete effectively with these multinational market tycoons. A great change was noticeable in the pharmaceutical industry after the drug policy ordinance of 1982. The total national production of pharmaceuticals has risen by a substantial 63%; the value of essential drugs made in national factories has gone up to 140% over the four years. At present there are 260 national & multinational based pharmaceutical companies in Bangladesh.
BANGLADESH Name of the Company Square. Beximco Aventis Acme Opsonin Glaxo Drug International SK+F ACI Renata
Market Share 22.5% 19.75% 12.78% 11.28% 9.77% 7.52% 6.01% 4.51% 3.75% 3.38%
3.3 MARKET SHARE OF NATIONAL COMPANIES
Name of the companies BPL Square Acme Opsonin Incepta Renata Ibn Sina Aristopharma Orion Others Total
Market share 19.26% 13.62% 6.27% 6.09% 5.90% 3.45% 3.09% 2.82% 2.18% 15.89% 78.57%
3.4 MARKET SHARE OF MULTINATIONAL COMPANIES Name of the companies Sk+F Aventis Organon Roche Drug International Glaxo Novartis Total
Market Share 5.72% 5.09% 4.04% 2.04% 2% 1.36% 1.18% 21.43%
CHAPTER FOUR: BEXIMCO GROUP ITSELF 4.1 HISTORY OF BEXIMCO GROUP Beximco is the largest business conglomerate of private sector in Bangladesh. Over the years since started it could gain a position to symbolize effective management, fund generation, and diversification of exploring business opportunities. Today it is one of the most known name is the countryâ€™s business arena. Beximco was the first private sector company to be registered in Bangladesh as a public limited company in September 1972. Since then, Beximco has taken the lead in public equity offerings in Bangladesh. At the end of 1996, the ten publicly listed companies of the Beximco Group accounted for Tk. 33.87 billion or 20.4% of the market capitalization of the Dhaka stock
exchange and Tk. 31.12 billion or 21.3% of the market capitalization in Chittagong stock exchange. Beximco shares are also the volume leaders on the national bourses, accounting for 22.08% of turnover at the DSE and 29.23% turnover at the CSE in 1996. The Beximco Group has also played a pioneering role in establishing and expanding the debt instruments market in Bangladesh. Beximco Pharmaceuticals Ltd was the first Group Company to issue debentures in 1988 and has been followed by seven additional Groups companies since. Beximco equities and debentures continue to perform the market as a rule, and have been often rated as buys by several foreign investments firms such as UBS, Crosby Securities, Peregrine and the erstwhile Smith New court. Beximco stocks are also well represented in the emerging market funds portfolios of leading mutual funds world wide. An emerging economy like that of Bangladesh needs not just newer and bigger industries, but also a reliable service infrastructure, especially in financial services. Anticipating this, the Group decided to start Beximco securities Ltd., which is the first firm formed especially for the retail individual investor offering a customer friendly environment for its growing number of individual clients. The firm is also aggressively engaged with institutional clients and issue underwritings.
4.2 MISSION OF BEXIMCO GROUP â€œEach of our activities must benefit and add value to the common wealth of our society. We firmly believe that, in the final analysis we are accountable to each of the constituents with whom we interact;
associates, our fellow citizens and our shareholders. Each of our activities must benefit and add value to the common wealth of our
society. We firmly believe that, in the final analysis we are accountable to each of the constituents with whom we interact; namely: our employees, our customers, our business associates, our fellow citizens and our shareholders.â€?
4.3 BUSINESS UNITS OF BEXIMCO GROUP Beximco Group has got some diversified business units in different challenging sectors of Bangladesh. Beximco Group is consists of 34 different companies under 8 divisions.
4.3.1 TEXTILE DIVISIONS Beximco Textile Divisions comprises of seven companies. They are:1. Padma Textile Mills. 2. Beximco Synthetics Ltd. 3. Beximco Apparels Ltd. 4. Beximco Knitting Ltd. 5. Beximco Textile Ltd. 6. Beximco Denims Ltd. 7. Beximco Fashion Ltd. Padma Textile Mills is manufacturer of both cotton and blended yarn while Beximco Synthetics Ltd. Is the manufacturer of POY and DTY for polyester filament yarn. Beximco Apparels has a 100% export oriented ready made garments units. Beximco Knitting is into manufacturing, dyeing and finishing of Knit fabrics while Beximco Textile is into weaving, dyeing and finishing. Beximco Denims is into manufacturing, dyeing and finishing of denims fabrics while Beximco Fashion is into ready made garments manufacturing. Beximco Apparels, Beximco Knitting, Beximco Textile, Beximco Denim and Beximco Fashion are continuously exporting their quality products to various countries of the world with major emphasis on USA and EU market. Among these Padma Textile Mills, Beximco Synthetics Ltd, Beximco
Knitting Ltd, Beximco Textile Ltd and Beximco Denims Ltd are listed in Dhaka stock exchange.
4.3.2 JUTE DIVISION Beximco jute division comprises of four companies, namely 1. New Dhaka Industries Ltd. 2. Sonali Ansh Ltd. 3. Esses Exporters Ltd. 4. Shinepukur Jute Spinners Ltd. Jute division’s activities include manufacturing of high quality jute yarn and twine, and trading in raw jute. New Dhaka industries Ltd. Manufactures jute yarn and twice, while Sonali Ansh Ltd. and Esses Exporters Ltd. are into trading of raw jute and jute goods. The high quality products of jute divisions are exported to USA, UK France, Belgium, Spain and Iran.
CONSTRUCTION DIVISION Beximco construction division comprises of two companies, namely 1. Beximco Engineering Ltd. 2. Shinepukur Holdings Ltd. Beximco Engineering Ltd is into construction of roads, bridges and buildings while Shinepukur Holdings Ltd manufacturer jute yarn and twice. It is also engaged in real estate business as a developer of land, multistoried private apartments and commercial shopping complexes. Shinepukur Holdings Ltd is listed in Dhaka stock exchange.
TRADING DIVISIONS Although the group’s emphasis shifted from trading to manufacturing 25 years ago, the divisions still plays significant role in group’s overall business activities. Its major strength lies in dealing under Special Trade Agreement which Beximco introduced in Bangladesh for the first time in 1972, at a time, when acute hard currency shortage
demanded innovate approach to selling countryâ€™s marketable in exchange for import of much needed essential commodities, which the country had no resources to finance. Beximco Trading Divisions comprises of three companies namely 1. Bangladesh Export Import Company Ltd. 2. Beximco Holdings Ltd. 3. Beximco Securities Ltd. Beximco Ltd is into trading and indenting business. Beximco Holdings Ltd is an investment company, while Beximco Securities Ltd is engaged in stock brokerage, underwriter and portfolio management business. Among these three companies, Beximco Ltd is listed in Dhaka stock exchange.
MARINE FOOD DIVISION Bangladesh is endowed with lot of marine food resources which the group did not miss to identify and utilize. Marine Foods is engaged in cultivation and processing of shrimp and other sweets & salt water fishes, all of which are exported. Marine food Divisions comprises of two companies, namely 1. Beximco Foods Ltd. 2. Beximco Fisheries Ltd. Beximco Foods Ltd is into fish processing and export business and Beximco Fisheries Ltd. is into shrimp cultivation. Beximco Fisheries ltd. is listed in Dhaka Stock Exchange.
IT DIVISION IT Division has five companies that are related to development of software, providing IT education, reseller of IBM pc, and one of the largest internet service providers in Bangladesh. The IT Divisions of Beximco is comprises of five companies namely 1. Beximco Computers Ltd. 2. Beximco System Ltd. 3. Bangladesh On-line Ltd. 4. Beximco Softech Ltd.
5. Beximco Zenith Ltd. Beximco Computers Ltd is involved in marketing of mid-range and personal computers and develops banking and business software’s which are widely used in Bangladesh. Bangladesh On-line Ltd is into IT business. It is also renowned Internet Service Providers (ISP). Beximco System Ltd is an IT training center, joint ventures with NIIT software development.
BUSINESS UNIT Three business unit of Beximco are 1. Beximco Media Ltd. 2. Gammmatech Ltd. 3. Shinepukur Ceramics Ltd. Beximco Media Ltd. is engaged in publication of The Independent- the leading national English newspaper of the country. Gammatech Ltd. a joint venture project with Bangladesh Atomic Energy Commission. This is the country’s only such facility which provides sterilization of medical products and preservation of foods. Shinepukur Ceramics Ltd. manufactures table wares from poracelain and Bone china. Currently, the company is marketing and selling its high quality products both at home and abroad. It exports its products to USA, UK, Germany, France, Spain, KSA, India and Pakistan.
CHEMCIAL DIVISION The introduction of pharmaceutical plant in 1979 marked the beginning of today’s chemical divisions. BPL started its journey back in 1980 with manufacturing and marketing of licensee products of Bayer AG, Germany an Upjohn Inc. of USA. After its initial years of struggle, it broke ground with the launching of its own products in 1983. Today in addition to manufacturing pharmaceutical formulations in dosage forms and basic chemicals at Beximco Pharmaceutical Ltd, the divisions also produces intravenous fluids at Beximco Infusions Ltd. a state-of-art ISO 9001
certified intravenous fluid production facility. The Chemical Division also has I & I Service Ltd, its own in-house organization for direct distribution national wide. Today Beximco Pharmaceutical Ltd is one of the market leadings in Bangladesh. The bulk of the profit BEXIMCO group comes from the chemical division. Its quality services and high standard of professionalism helped to earn public recognition both home and abroad. Today Beximco Pharmaceutical Ltd is one of the market leadings in Bangladesh. Its success is evidence of what a strict focus on quality can achieve. Beximco Pharmaceuticals product range continues to expand every year and each new product adds to the many lives already improved. A partnership with former Ciba-Giedy now Aventis of Switzerland, the Beximco Pharma center for Etc & Industrial Research Ltd. was set up to conduct collaborative research programs through which Beximco scientists will be developing high performance pigments, which Aventis will screen for commercial potential and ultimate commercialization.
BOARD AND MANAGEMENT The management of BEXIMCO PHARMA is simply exceptional in comparison to any other listed companies in this country. It has a blend of professionalism and wisdom, which plays a key role in managing the champion organization. The Board of Directors includes: A S F Rahman Salman F Rahman Iqbal Ahmed M.A. Qasem O.K. Chowdhury Dr. Abdul Alim Khan A.B. Siddiqur Rahman Dr. Farida Huq Chowdury Hafizur Rahman Faheemul Huq Ahsanul Karim
Chairman Vice Chairman Director Director Director Director Director Director Director Director Director
A dedicated Management committee and an Executive Committee make sure that BEXIMCO PHARMA achieves its target with sheer professionalism. The committees are: The Management Committee: Nazmul Hassan, CEO Osman Kaiser Chowdhury Zakaria Seraj Chowdhury Jamal Ahmed Chowdhury A R M Zahidur Rahman Mohd.Tahir Siddique Afsar Uddin Ahmed Lutfur Rahman Rabbur Reza Ali Nawaz
The Executive Committee: Osman kaiser Chowdhury Chowdhury Hafizur Rahman Afsar Uddin Ahmed Nazmul Hassan Ali Nawaz
SUBDIVISION OF CHEMICAL DIVISION
Beximco Chemical Division
Basic Chemical Unit
MAJOR ACHIEVEMENT OF BEXIMCO PHARMA
1976-1985 1976 : Registration of the company 1980 : Started manufacturing and marketing of licensee products of Bayer AG of Germany and Upjohn Inc. Of USA 1985 : Listing in the Dhaka Stock Exchange (DSE) as a Public Limited Company
1986-1995 1990 : Commissioning of Basic Chemical Unit 1992 : Started export operation with Active Pharmaceutical Ingredients (apis) 1993 : First export market operation with finished formulation
1996-2005 1996 : Introduction of Sustained Release Dosage Form 1997 : Introduction of Suppository Dosage Form Commissioning of Metered Dose Inhaler (MDI) plant Introduction of Metered Dose Nasal Spray 1998 : First pharmaceutical company of the country achieving ‘National Export Trophy (Gold)’for 1994-95 1999 : UNICEF approval of BPL as an enlisted supplier 2000 : Agreement to manufacture Metered Dose Inhaler (MDI) for Glaxo smithkline 2001 : Introduction of Small Volume Parenterals (Injectables) Establishment of Analgesic-Antiinflammatory API plant 2002 : Won the first prize of ICAB National Awards 2000 for ‘Best Published Accounts and Reports’in Non- Financial Sector Category The first Bangladeshi company to supply pharmaceuticals to Raffles Hospital- the most prestigious hospital of Singapore 2003 : Received ‘National Export Trophy (Gold)’for consecutive 2 years (1998-99, 1999-2000) Won the Silver prize of ICAB National Awards 2003 for ‘Best Published Accounts and Reports’in Non-Financial Sector Category. Won a tender to supply Neoceptin R and Neofloxin to Raffles Hospital of Singapore for the whole year’s consumption. Introduced Anti-HIV drugs for the first time in Bangladesh. Diversification into Anti-Cancer therapeutic class. 2004: signed contract with Novartis to manufacture their liquid, cream, ointment and suppository products under “Toll Manufacturing “agreement. Visit of Saudi delegated by Hon’ble Minister, Kingdom of Saudi Arabia 2005: Merger of Beximco Infusions Ltd. With Beximco pharmaceuticals Ltd. Admission to alternatives Investment market (AIM) of London Stock Exchange (LSE)
THE FASTES GROWING COMPANY
With a record of highest growth rate in the history of Bangladesh Pharmaceutical industry, BPL has maintained its leadership position with consistent growth over the year. The company maintained its growth performance in 1999 even when the industry experienced a decline in market growth during the same period of time. It is
continuously adding new products of different therapeutic classes in its portfolio and those products are always appreciated by the health professionals. In the year 2001, BPL added 26 new products to its existing product lines.
BPL has been able to establish a very successful international marketing network in Asia, Middle East and Africa. In 2001, BPL signed and agreement with one of the leading distributors of Singapore with an objective to consolidate i9ts presence in Singapore market. In Pakistan, BPL comes into an agreement with one of the leading local companies to manufacture BPL brands locally and to market the same in Pakistan market. So, far Beximco has market its presence in 22 countries. These countries are. 1. Cambodia 2. Georgia 3. Hong Kong. 4. Iran. 5. Kenya 6. Malaysia 7. Mozambique. 8. Myanmar. 9. Nepal. 10. Pakistan. 11. Philippines. 12. Russia 13. Singapore. 14. South Korea 15. Srilanka. 16. Taiwan 17. Ukraine. 18. Vietnam.
THE VISION OF NEW MILLENNIUM
BPL has transformed its activities, culture, style and philosophy to meet the demands of the new millennium. Business diversification that is strategically important for sustained growth today is followed here as a result of its vision of the future. BPL has been producing solid products like tablets and capsules and liquid products like syrup, suspension and solution, as well as semisolid products like cream and ointment. BPL is the pioneer company to manufacture and market nasal sprays, inhalation aerosols and suppositories in Bangladesh. BPL stepped forward to manufacture small volume parental or inject able dosage form in 2001. A multi-million dollar pharmaceutical formulation plant is being built. This world class facility is structured and erected in line with international guidelines for cGMP (Current Good Manufacturing Practices) and with particular regard to the USFDA. This plant will be one of the finest facilities to be available anywhere in the globe.
4.10 NEW CUSTOMER APPROACH A BPL mission statements states â€œEach of our activities must benefit and add value to the common wealth of our societyâ€?; BPL stands on the heritage of bringing innovative medicine to people. Commitment to customers is one of the hallmarks of BPL. Its sales force of over 540 highly professional sales representative ensures timely promotion and smooth delivery of products to anywhere of the country.
4.11 BLOCKBUSTER PRODUCT OF BPL Increased market complexity now a days places great demand on the sales and marketing operations of pharmaceutical companies, making it even more difficult and costly to manage. But our marketing and sales team was able to withstand competition successfully in 2004 which enabled us not only to retain market leadership of all the key brands but also to grow in other therapeutic areas. Several new brands like
Bextrum/Bextrun Gold, Frenxit, Ultrafen Plus, Neofloxin XR, Vercef, Tycil DS etc. have already shown potential to become future Block buster brands.
4.12DEPARTMENT OF BEXIMCO PHARMACEUTICALS 4.12.1 CPM DEPARTMENT Central product management department includes the activities of marketing and sales promotion of both BPL (Beximco Pharmaceutical Ltd) and BIL (Beximco Infusion Ltd). The head of the department guides products officers. The activities that are performed by the CPM department are• Preparing product literature and promotional material for doctors. • Determining the packaging pattern, color and size. • Fixing target sales. • Searching about competitor strength, weakness, opportunity and threat. • Issuing budget in consulting with different departments. • Setting price for each products. • Collecting statistical data which are relevant to their operations. The downward communication system of the CPM department is shown in figure below:Executive Director
Senior Product Officer
Chart: Layout of CPM Department
4.12.2 SALES DEPARTMENT CPM department determines the target sales and the responsibility of the sales department is to achieve the sales target by its workforce. An executive sales director is the head of the department. This department consists of senior sales manager, regional sales controller, field supervisor and medical representative. The department divided the whole country into 20 regions and assigned 20 regional sales controllers to control sales activities. Again 6 Medical representatives are working under 5 supervisors in each region. The whole process is going on a chain of command. Field supervisor supervise all the activities of medical representatives and field supervisor are supervised by regional sales controller. The regional sales controllers take necessary indication from the senior sales manager of the sales department. The downward communication system has been developed which is shown in figure below-
Executive Director (sales)
Regional Sales Manager
Chart: Layout of Sales Department
Main activities of Sales Department: • Forecasting future sales in consultation with central product Management department. • Recruitment of sales force in consultation with Human resources department. • Budget estimation in consultation with finance department and with the director of marketing and commercial. • Strategy developing for effective sales force. • Arranging training for field force. • Handling critical customers. • Ensuring product availability. •
• Performance evaluation of the sales force. Responsibilities of Regional sales controller: • Leading the subordinates according to the sales manager’s instruction. • Evaluating the employee’s performance and reporting to the department. • Making good relationship with major customers. Responsibilities of Field Supervisor:
• Supervising medical representative’s activities. • Maintaining good relationship with customers. • Monitoring the market conditions. • Evaluating MRs field performance and reporting to regional sales controller.
Responsibilities of Medical Representative: • Visiting doctors with product sample and literature to promote products. • Visiting chemist shop to check out the product availability. • Listing the products that should be supplied to the chemist shop. • Generating comments and information from doctors and chemists and informing it to field supervisors.
4.12.3 MRC DEPARTMENT In the competitive business market, “Market Research” is a vital part of any type of company .especially who has wide rage of product like (medicine, cosmetic, and consumer goods, etc. Market research is necessary for making any types of sense about the market and which save the time, resources and wastage of money. Market research is a systematic and objective identification, collection analysis, dissemination and use of information for the purpose of assisting management in decision making related to identification and solution of the problems. MR helps to knowing the condition of the existing product, helps to set furthers steps, helps to achieve know the condition of the competitor, market share and market growth rate. Through the MR (Market research) company can keep the record of each and every product and also some others factors like which the product is earning more value for the company and
which one is not, which one the number one product by unit or which one the highest selling drug in different market (like-antibiotic) and also the performance of medical representatives (MRs). MR helps to identify the products records also keeps the doctors record, which doctor helps to earn more revenue by prescribing medicine of Beximco Pharma. MRC department was established in 1987 with one Sr. product officer and five market reach representative (MRR) under CPM department. MRC depts. divided the whole country into 440 territories under 20 regions. Headed by manger, market research representative do the task of market survey. The department discloses the trend of increasing or decreasing market share by compiling the received data from the market
Organogram of MRC Department
Sr. MR Officer
MR Officer r
Asst. MR Officer
Asst. MR Officer
Figure: Organogram of MRC department
Responsibilities of Marketing Research Department: • Calculating the market share of the company in respect to prescriptions, slip and OTC by visiting the chemist shop in different territories. • Recruiting research person in consultation with human resource department. • Strategy developing for effective market survey. • Arrange training for field force. • Performance evaluation of market researcher. • Secret tours are arranged by the department to cross-check the accuracy of the data collected by Market research representative.
Responsibilities of Marketing Research Representative: • Visiting chemist shop to collect prescription, slip and OTC drugs. • Filling up product manuals where the doctor’s name and territory code, the name of the prescribed medicine are written down. At the conclusion would like to say that marketing research and statistical cell department plays the most important role in company because it indicates the ultimate position of company in industry by identifying the market share. But in order to be marketing researcher wide product knowledge is very much essential because without product knowledge survey can not be conducted. The market research representative visit 440 territories around the year and need two day visit per territory.
4.12.4 PLANNING & INVENTORY CONTROL DEPARTMENT This department has a direct relation with the purchase, production, and finance department. Finance department develops a cash flow budget at the beginning of the
year. The sales department fixes the sales target. According to the demand, planning department starts its operation which is mentioned below in the sequential basis. • According to the market demand. Planning department fragmented every finished goods in different particulars. • Then they calculate how much and what raw materials they need to produce the products according to the demand through out the year. • Split out the whole year’s demand on monthly basis for each product type. • It determines day to day requirements of raw materials: raw material in hand, in pipe lines, and in finishes goods. • Estimate the price or cost of the product required on a month. • Decide which product to purchase from the local market and which to import. • Submit a tender to different suppliers in the first week of every month. • Raw materials are received every tow or three months after the reorder. The department sends it to the production department for finished goods. Then the production department starts producing the finished goods according to monthly requirements. It is again divided into 10 days operation for better performance. • This department also decides about the machinery requirements for a specific production process.
4.12.5 PURCHASE DEPARTMENT This department interacts directly with the planning, production and finance department. Finance department develops a cash flow budget at the beginning of the year. The sales department fixes the sales target. According to the demand, purchase department starts its operation which are mentioned below in the sequential basis• Being ordered from the planning department, the department estimates and calculates the cost of raw materials necessary. • Split out the whole year’s demand for raw materials on monthly basis.
• It asks for cash to the finance department. • Decide which product to purchase from the local market and which to import. • It arranges for bidding to the suppliers which involves close interaction with the planning department. • Along with the planning department, it has to cooperate through the whole process of purchasing raw materials form available sources. • This department also involves about the machinery requirements for a specific production process and their purchasing.
4.12.6 MEDICAL SERVICES DEPARTMENT In 1990 this department was formally announced as a separate department and the objective is to provide continuously Medical Education program to the practicing doctors. It is involved in indirect promotion of the company by helping the doctors with academic support. As a result it causes a good image of the company among the doctors. As the medical science if an ongoing process, many know about all those things unless and until they do through all medical journals. In our country there are very few magazines on medical science. There are some good world class medical journals which are very expensive. The medical service department of Beximco Pharma prepares its own medical journal from other journals which are relevant to our medical practices and supply it to the doctors at free of cost. So the doctors can know about the new contribution of the medical world. The functions of medical service department have been listed below: • Every three months the department publishes a medical news letter of 24 pages. 22500 copies are published among which 18000 copies are most important here is Beximco is the only company in Bangladesh who has the initiative to publish such an article for the doctors.
• 4 to 5 booklets are published in a year about disease related its available medicines in Bangladesh. • MSD arranges different seminars, meetings, symposiums on different topics of medical science. They focus on a particular topic which has a significant affect in our medical practice recently. Doctors are requested to deliver a speech on that particular topic. After their speeches a medical officer of Beximco Pharma Ltd. gives a speech with the multimedia projection. They focus on their products and their functions over the diseases. • It keeps doctor’s request by making multimedia projections for them that would be used by them nationally and internationally in seminars and symposiums. Most important tasks of MSD here were adding video clippings inside the presentations. Over 15000 requests were attended by MSD last year. • BMA (Bangladesh Medical Association) arranged clinical meetings are attended by MSD. • It responds to the queries of the doctors through mail or medical representatives around the country.
4.12.7 MIS DEPARTMENT Management information system department functions as a communication highway for all other departments. The functions of the department are• It is possible to fax and enter into the internet mail by relating file of working department with the network. • Communication with the production department that is situated in Tongi is possible through radio link. • The operation department can communicate and exchange information with the BEL tower and corporate headquarters through fiber optic cable. • I & I service department can communicate with the head office through modem.
• Employees are provided computers service according to their range of activities. NT server also has a backup server to stay in the safe side. Communication between departments is also done through e-mail. Any user can use these facilities from any workstation. The users need the log in number from MIS department to use computers. 4.12.8 BRDD It is a staff department. It comprises of four specialists comprising of a pharmacist, a financial specialist, a marketing specialists and an engineer. Major Jobs performed by this Department: • Business development agent: It acts as the business development agent of BPL. It is the duty of this department unveils the alternatives regarding business functions available in the world. •
International Affairs: It tries to interact with WTO, USFDA (United States Food and Drug administration authority), MCA (Medical Council) and other regulatory authority of the world.
• Source Department: It searches of raw materials, accessories, and machineries around the world and selects the best source available. • International Market: It seeks for international export markets for BPL products. • Projects Development: 1. It takes new projects in hand. 2. It does the financial projections for the new projects. 3. It searches cheaper sources of machineries and accessories around the globe.
4.12.9 MULTIMEDIA DEPARTMENT BPL is the only pharmaceutical company that has a multimedia department. This is helping the product promotion. It designs medical videos for the doctor. The color,
size, littering etc of the text are carefully selected to attract the target audience easily. Major function of multimedia department • Web page designing • Developing multimedia presentation on program • Making video conference • Designing cover page of the annual report • Making video for product • Making video for company • Keeping the record of annual meeting and others meeting • Storing still photograph and video on medical science
4.12.10 TRAINING DEPARTMENT Beximco Pharmaceuticals Ltd. has an in-house training program for their employee which is controlled by training department. This department consists of three experts who give the training to their employees. Training has been provided through lectures with the assistance of handout, multimedia projector, technical memorandum, and training materials. This department provides three types of training1. Refreshers training program. 2. Training program for MR. 3. Training program for supervisors. Refreshers Training Program: This training program for newly recruited medical representatives. This training program is of 37 days. This program is focused on few topics• Physics. • Chemistry. • Biology.
• Mathematics. • Selling skills. • Attitude towards buyers. • Presentation of products. Training Program for MR: This training program is prepared for the medical representatives who are experienced. To make them more effective and efficient some MRs are chosen to find out their weakness. Through TNA (training needs analysis) and TGI (training gap identify) MRs are chosen. These are to go through a test questionnaire to find out the weakness. Then they are trained according to their gap. Field supervisors Training Program: Experienced MRs get promotion as field supervisors. At that time a training program is designed for newly employed field supervisors. This training is only for one week. There are several topics, which are recovered to train• Leadership. • Motivation. • Communication. • Control.
4.12.11 INTERNATIONAL MARKETING DEPARTMENT In 1991, the company took the challenge to venture into the international arena. At first it started exporting only formulation product. There were many reasons not to export finished goods. The reason are• Drug law imposed on finished products not on formulation products. • Formulation products do not require any registration operation.
• To register a finished goods bio-equivalence test is required which is too much expensive. In 1996 the company first started their finished goods export operation to Russia. After the war, there was great demand of medicine. The people of Russia needed good medicine in a cheap rate. Along with many multinationals Beximco Pharma started its operation in Russia. Beximco did well there as it provided products in a cheap rate. Bangladesh is a third world country and its image is not satisfactory in the world. So it is quite tough to operate internationally. The marketing ream has to hard to convince the buyer. Functions of the international marketing department are. • Studying rules and regulations. • Studying different market. • Studying different buying behavior. • Studying sales force for different culture. Studying different market characteristics is another major function of international marketing department. There are different types of market for pharmaceutical products. According to the market characteristics a product can be classified in three major parts. • POP (Prescription only products) - Only registered chemists can sell these pharmaceutical products under the prescriptions generated by registered doctors. • OTC (Over the counter) - Anyone can buy and sell these products. • Pharmacy products- Only registered chemists can sell theses pharmaceutical with or without a prescription of a doctor. Marketing of pharmaceutical product in abroad is not like as it is in Bangladesh. In abroad the drug buying and selling is completely regulated by rules. Pharmaceutical
product can not enjoy advertising like any other consumer products. So personal selling is the way the products can be advertised and sold. As OTC products do not require any rules to buy or sell it has a chance to go through print advertising and TV advertising. But, marketing of POP and pharmacy products can be done by personal selling. The customer of a dug is a doctor. What ever the doctors prescribe patients buy. So, the department has to decide which group of doctor they should convince for a particular product. For govt. hospitals, army or govt., institution the company participate in the tender. Different buying behavior has a great impact on marketing a product. Understanding the buyer’s buying attitude is the fist job of any marketer. To analyze behavior, the marketer has to visit the place, gain knowledge about their financial condition, culture tradition and the competitor’s position. After analyzing the buyer’s attitude, the second important factor is to make the sales force effective and efficient. International marketing department determine the process in which way they will market the products. It depends on the various factors.
4.12.12 HUMAN RESOURCE DEPARTMENT Human resource department is the most important department in any organization. Beximco pharmaceutical is also is not an exceptional one. BPL has also have a strong and effective human resource department which plays an important role maintaining and motivating the employees of entire organization. The human resource department is headed by the Human resource manger, some human resource officer and executives. All of the staffs of human resources department of BPL are very much effective and efficient in performing their tasks. Functions of Human Resource Department: • Recruitment of new employees by screening and interview. • Training of the employees in order to increase their efficiency and productivity. • Maintenance of attendance of the staffs of entire organization.
• Maintenance of data base of the officers and staffs of the organization. • Organizing training, workshop and seminars for making the staffs more efficient in fulfilling their tasks.
CHAPTER FIVE: ANALYSIS OF THE RESEARCH FINDINGS 5.1 FINDINGS ONE: In this section we will know the overall market share in the aspect of prescription and in different therapeutic classes. For analyzing the research, 496 prescriptions with total product 1101 is collected. Total prescription = 496 Total product = 1101 Five leading Pharmaceuticals Serial Company
No 1. 2. 3. 4. 5.
212 150 69 67 65
19.26% 13.62% 6.27% 6.09% 5.90%
No 1. 2. 3. 4. 5. 6. 7. 8. 9.
212 150 69 67 65 63 56 51 38
19.26% 13.62% 6.27% 6.09% 5.90% 5.72% 5.09% 4.63% 3.45%
Beximco Pharma Square Acme Opsonin Incepta
Overall Prescription Percentage
Beximco Pharma Square Acme Opsonin Incepta SK+F Aventis ACI Renata
10. 11. 12. 13. 14. 15. 16. 17.
Ibn Sina Aristopharma Orion Drug International Navana Glaxosmithkline Novartis Others Total Total Prescription = 496
34 31 24 22 16 15 13 175 1101
3.09% 2.82% 2.18% 2% 1.45% 1.36% 1.18% 15.89% 100
Total Product = 1101
Prescription Market share Novartis 1.18% Navana 1.45%
Drug International 2% Orion 2.18% Aristopharma 2.82% Ibn Sina 3.09% Renata 3.45%
ACI 4.63% Aventis 5.09%
From this above bar diagram you can see the overall market share of different companies in the aspects of prescriptions. Here in this case Beximco Pharmaceuticals leading the market with market share of 19.26% and Square Pharmaceutical holds the second place with market share of 13.62% currently. The rest of market share of different companyâ€™s arei. Acme Laboratories Ltd 6.27%. ii. Opsonin 6.09%. iii. Incepta 5.9%.
iv. Eeskaf Bangladesh 5.72%. v. Aventis 5.09%. vi. ACI 4.63%. vii. Renata 3.45%. viii. Ibn Sina 3.09%. ix. Aristopharma 2.82%. x. Orion 2.18%. xi. Drug International 2%. xii. Navana 1.45%. xiii. Glaxosmithkline 1.36%. xiv. Novartis 1.18%. xv. Others 15.89%. FINDINGS TWO: In the earlier part we have seen the overall prescription market share in Beximco Pharmaceuticals Ltd. in comparison with other companies. In this part we try to analyze the market share of Beximco Pharmaceuticals in Diabetics therapeutic class in comparison with other companies. Therapeutic class: Diabetics. Total Product: 26. Four leading Pharmaceuticals Serial No. 1. 2. 3. 4.
Company Name Pacific Aventis Acme Square
Percentage 26.92% 23.07% 15.38% 11.54%
Company Percentage Company Name Acme Aventis Pacific
Products 4 6 7
Percentage 15.38% 23.07% 26.92%
Square Others Total
3 6 26
11.54% 23.08% 100 Diabetics
diagram Square 11.54%
therapeutic class of Diabetics Pacific is the leading the market with the market share of 26.92% and Aventis hold second place with 23.07% market share. The market shares of rest of the companies are Acme-15.38%, Square-11.54% and others 23.08%. FINDINGS THREE: Therapeutic class: Angina & Ischemic. Total Product: 17 Three Leading Pharmaceuticals Serial No. 1. 2. 3.
Company Name Drug International Beximco Medimpex
Prescription Percentage 52.94% 23.53%. 11.76%
Company Percentage Company Name Drug International Beximco Medimpex Others Total
Product 9 4 2 2 17 Angina & Ischaemic
Prescription Share 52.94% 23.53% 11.76% 11.76% 100
Others Medimpex 11.76% 11.76% Drug Intl. 52.94%
From this above bar chart we can easily see that in the therapeutic class of Angina and Ischemic class Drug International holds 52.94% market share and Beximco Pharma stand second place with market share of 23.53%. Others company Medimpex and others hold 11.76% respectively. FINDINGS FOUR: Therapeutic class: Antipsychotic. Total Product: 8
Two Leading Pharmaceuticals Serial No. 1. 2.
Company Name Lundbeck Square
Percentage 50% 25%.
Company Percentage Company Name Lundbeck Square Others Total
Product 4 2 2 8
Percentage 50% 25% 25% 100
Antipsychotic Others 25% Lundbeck 50% Square 25%
Lundbeck Square Others
From this above bar diagram we can well understand that in the therapeutic class of Antipsychotic Lunbeck leads the way with 50% market share and square hold the
second place with 25% market share. The others different small companies hold rest of the 25% market share in the industry. FINDINGS FIVE Therapeutic Class: Anthelmintics. Total products: 14. Company percentage Company Name Acme SK+F Others Total
Products 2 5 7 14
Percentage 14.29% 35.71%. 50% 100
Anthelmintics Acme 14.29% Acme Others 50%
SK+F SK+F 35.71%
bar chart we can well understand that in the therapeutic class of Anthelmintics Eskaf holds 35.71% market share and Acme holds 14.29% market share. The rest of the market share is hold by others different small companies who hold 50% market share.
FINDINGS SIX: Therapeutic class: Antidepressant. Total Product: 11.
Company Percentage Company Name Aristopharma Drug International Square Others Total
Product 2 2 4 3 11
Percentage 18.18 18.18 36.36 27.27 100
Antidepressant Others, 27.27%
Aris to pha rma 1 8 .1 8 %
Aristopharma Drug Int. 18.18%
Drug Int. Square Others
From this above bar diagram we can easily identify that in the therapeutic class of Antidepressant square leads the way with market share of 36.36%. Both Aristopharma and Drug International hold 18.18% market share. The others hold market share of 27.27%.
FINDINGS SEVEN: Therapeutic class: Antihistamine. Total Product: 63. Five Leading Pharmaceuticals Serial No. 1. 2. 3.
Company Name Beximco Acme Opsonin
Percentage 20.63% 14.29% 11.11%
Products 5 9 13 7 5 3 3 3 15 63
Percentage 7.94% 14.29% 20.63% 11.11% 7.94% 4.76% 4.76% 4.76% 23.81% 100
Company Percentage Company Name ACI Acme Beximco Opsonin SK+F Square Aventis Orion Others Total
Antihistamine Others 23.81%
BPL Acme Opsonin
ACI 7.94% SK+F 7.94%
SK+F ACI Others
From this above bar diagram we can determine that Beximco is the leading in the therapeutic class of Antishistamine with market share of 20.63% and Acme hold the second position with market share of 14.29%. The market shares of rest of the
companies are Opsonin 11.11%, SK+F and ACI 7.94% and other small companies 23.81% market share. FINDINGS EIGHT: Therapeutic class: Vitamins. Total Product: 122. Five leading Pharmaceuticals Serial No. 1. 2. 3. 4. 5.
Company Name Square Beximco Orion Acme Drug International
Percentage 23.77% 15.57% 9.84% 9.02% 8.20%
Products 11 19 5 4 10 12 6 29 26 122
Percentage 9.02% 15.57% 4.10% 3.28% 8.20% 9.84% 4.92% 23.77% 21.31% 100
Company Percentage Company Name Acme Beximco Gaco Glaxo Drug International Orion Renata Square Others Total
Vitamins Others 21.31% Drug Int. 8.20%
Square BPL Orion
Acme Drug Int. Others
From this bar chart we can assume that in Vitamins therapeutic class Square leads the market with 23.77% market share and BPL hold 15.57% market share. The rest of the companies market shares are Orion-9.84%, Acme-9.02%, Drug International-8.20% and others- 21.31%. FINDINGS NINE: Therapeutic class: Anti-protozoal. Total Product: 31. Three Leading Pharmaceuticals Serial No. 1. 2. 3.
Company Name Beximco Aventis/ Opsonin ACI
Percentage 38.71% 12.90% 9.68%
Products 3 4 12 4 8 31
Percentage 9.68% 12.90% 38.71% 12.90% 25.81% 100
Company Percentage Company Name ACI Aventis Beximco Opsonin Others Total
Antiprotozoal Others 25.81% ACI 9.68% Opsonin 12.90%
BPL Aventis Opsonin
From the above bar diagram we can see here that in the therapeutic class of Antiprotozoal Beximco leading the industry with market share of 38.71% and others different small companyâ€™s leads second position with 25.81% market share. The rest of the companyâ€™s market shares are ACI 9.68%, Opsonin 12.90%, Aventis 12.90%.
FINDINGS TEN: Therapeutic Class: Antibacterial Total Product: 284 Five Leading Pharmaceuticals Serial No. 1. 2. 3. 4. 5.
Company Name Square Beximco Acme ACI Opsonin
Percentage 17.10 9.85 9.15 8.45 7.39
Company Percentage Company Name Products Percentage ACI 24 8.45 Acme 26 9.15 Aristopharma 12 4.22 Aventis 18 6.34 Beximco 28 9.85 Drug International 13 4.57 Opsonin 21 7.39 Orion 12 4.22 Renata 15 5.28 Square 50 17.60 Others 65 22.88 Antibacterial Prescription Percentage Total 284 100 Square 17.10%
Acme ACI Opsonin Others
From this bar chart we can see that in the therapeutic class of Antibacterial the market share of Beximco is 9.85%. But here the market leader is Square with market share of 17.10%. The others market shares are Acme 9.15%, ACI 8.45%, Opsonin 7.39% and other small companies 22.88%. FINDINGS ELEVEN: Therapeutic class: Antirheumatic. Total Product: 79 Five Leading Pharmaceuticals Serial No. 1. 2. 3. 4. 5.
Company Name Square Novartis Aventis Opsonin/Pacific ACI Company Percentage
Percentage 22.78% 15.19% 10.13% 7.59% 6.33%
Company Name ACI Aventis Novartis Opsonin Pacific Square Others Total
Products 5 8 12 6 6 18 24 79
Percentage 6.33% 10.13% 15.19% 7.59% 7.59% 22.78% 30.38% 100
Others 30.38% ACI 6.33%
Aventis Pacific 7.59% Opsonin 7.59%
Novartis 15.19% Aventis 10.13%
Opsonin Pacific ACI Others
diagram we can well understand that in the therapeutic class of Antirheumatic Square leads the industry with 22.78% market share and Novartis hold second place with 15.19% market share. The rest of the companyâ€™s market shares are Aventis-10.13%, Opsonin-7.59%, Pacific-7.59%, ACI-6.33% and others different small companies comprises 30.38% share. FINDINGS TWELVE: Therapeutic class: Skin. Total Product: 35. Four leading pharmaceuticals Serial No. 1. 2. 3. 4.
Company Name Square Beximco ACI/Aventis Gaco/Opsonin/Rephico
Percentage 22.86% 14.28% 11.43% 8.57%
Products 4 4 5 3 3 3 8 5 35
Percentage 11.43% 11.43% 14.28% 8.57% 8.57% 8.57% 22.86% 14.28% 100
Company Percentage Company Name ACI Aventis Beximco Gaco Opsonin Rephico Square Others Total
Skin Others 14.28%
Rephico 8.57% Opsonin 8.57% Gacho 8.57%
Square BPL ACI
BPL 14.28% Aventis 11.43%
Aventis Gacho Opsonin Rephico Others
From this above all bar diagram we can easily identify that in the therapeutic class of Skin Square carry 22.86% market share and BPL hold 14.28% market share. The rest of the companies market share are ACI & Aventis- 11.43%, Gacho, Opsonin & Rephico- 8.57% and other small companies 14.28% market share. FINDINGS THERTEEN: Therapeutic class: Antiulcerant. Total Product: 156. Five Leading Pharmaceuticals Serial No. 1. 2. 3. 4. 5.
Company Name Square Opsonin Drug International Beximco Acme/Jayson/Orion
Percentage 12.18% 11.54% 9.62% 8.97% 5.13%
Products 8 6 14 15 8 6 18 8 Antiulcerant 6 6 Square 19 12.18% Oposonin 42 11.54% 156
Percentage 5.13% 3.85% 8.97% 9.62% 5.13% 3.85% 11.54% 5.13% Square 3.85% 3.85% Oposonin 12.18% Drug 26.92% International 100 Beximco
Company Percentage Company Name Acme Aristopharma Beximco Drug International Jayson Novartis Opsonin Orion Pacific Renata Square Others 26.92% Others Total Orion 5.13%
Jayson Acme 5.13% 5.13%
Drug International 9.62%
Acme Jayson Orion
From the earlier page bar diagram we can determine that in the therapeutic class of Antiulcerant Square holds the leadership with 12.18% market share while opsonin holds second place with 11.54% market share. The rest of the companies market share are Drug International-9.62%, Beximco-8.97%, Acme, Jayson and Orion-5.13% and others different small companies hold 29.93% market share. FINDINGS FOURTEEN: Therapeutic class: Anxiolytics. Total Product: 27 Three Leading Pharmaceuticals Serial No. 1. 2. 3.
Company Name Opsonin Sonear/Square Acme
Percentage 25.93% 22.22% 14.81%
Company Percentage Company Name Acme Opsonin Sonear Square Others Total
Products 4 7 6 6 4 27
Percentage 14.81% 25.93% 22.22% 22.22% 14.81% 100
Anxiolytics Others 14.81%
Opsonin Sonear Square
From this above bar diagram we can easily see that in the therapeutic class of Anxiolytics Opsonin leads the industry with 25.93% market share while Sonear and Square hold second position with 22.22% market share. Acme holds 14.81% and others different small companies also hold 14.81% market share. FINDINGS FIFTEEN: Therapeutic class: Cough Expectorants. Total Product: 14 Two leading Pharmaceuticals Serial No. 1. 2.
Company Name Square Beximco/Glaxo/Incepta Company Percentage
Percentage 35.71% 14.29%
Company Name Beximco Glaxosimithkline Incepta Square Others Total
Products 2 2 2 5 3 14
Percentage 14.29% 14.29% 14.29% 35.71% 21.43% 100
Cough Expectorants Others 21.43%
Square BPL Glaxo
From this above all chart we can determined that in the therapeutic class of Cough Expectorants Square leads in the industry with Market share of 35.71% and BPL, Glaxo and Incept hold second place 14.29% market share respectively. Others different small companies hold 21.43% market share.
FINDINGS SIXTEEN: Therapeutic class: Analgesic Total Product: 83 Five leading Pharmaceuticals Serial No. 1. 2. 3. 4. 5.
Company Name Beximco Acme Square ACI Incepta
Percentage 40.96% 16.86% 14.45% 8.43% 7.23%
Company Percentage Company Name Products Percentage ACI 7 8.43 Acme 14 16.86 Beximco 34 40.96 Incepta 6 7.23 Square 12 14.45 Others 10 12.04 Total 83 Prescription Percentage 100 Analgesic Incepta 7.23% ACI 8.43%
BPL BPL 40.96%
Acme Square ACI
From this above bar chart we easily identify that in the therapeutic class of Analgesic Beximco Pharmaceuticals Ltd leading market share with 40.96% and Acme stand in second place with 16.86% market shares. Other companies like Incept and ACI holds market share of 8.43% and 7.23% respectively. Others company holds 12.04% market share. FINDINGS SEVENTEEN:
Therapeutic class: Iron-deficiency. Total Product: 36. Four leading Pharmaceuticals Serial No. 1. 2. 3. 4.
Company Name Square SK+F Jayson Acme
Percentage 30.56% 19.44% 13.89% 8.33%
Products 3 5 7 11 10 36 Iron-deficiency
Percentage 8.33% 13.89% 19.44% 30.56% 27.27% 100
Company Percentage Company Name Acme Jayson SK+F Square Others Total Others 27.78%
Square SK+F Jayson
From this chart we can really understand that in the therapeutic class of Iron deficiency Square Pharma hold 30.56% market share and act as a market leader. The share rest of the companies are SK+F-19.44%, Jasyon-13.89%, Acme-8.33% and other different companies- 27.78% FINDINGS EIGHTEEN: Therapeutic class: Antispasmodics. Total Product: 20. Two Leading Pharmaceuticals Serial No. 1. 2.
Company Name Ambee / Aventis Beximco
Percentage 35%. 20%
Products 7 7 4 2 20
Percentage 35% 35% 20% 10% 100
Company Percentage Company Name Ambee Aventis Beximco Others Total
Ambee Aventis BPL
From above we can
Glaxo, 9.09% Reman, 12.12%
Novartis, Glaxo 18.18% others
diagram identify the
therapeutic class of Antispasmodics Ambee and Aventis leading the way with 35% market share. Beximco holds 20% market in this class and others companyâ€™s hold 10% market share in this industry. FINDINGS NINETEEN:
Therapeutic class: Anti-infective. Total Product: 33 Four Leading Pharmaceuticals Serial No. 1. 2. 3. 4.
Company Name Gaco Novartis Opso saline/Reman Glaxosmithkline
Percentage 24.24% 18.18% 12.12% 9.09%
Company Percentage Company Name Gaco Reman Opsosaline Novartis Glaxosmithkline Others Total
Products 8 4 4 6 3 8 33
Percentage 24.24% 12.12% 12.12% 18.18% 9.09% 24.24% 100
From the bar diagram of earlier pages we can identify that in the therapeutic class of Anti-infective Gaco leading the industry with market share of 24.24%. The rest of the company’s market shares are Novartis 18.18%, Opsosaline 12.12%, Reman 12.12%, GlaxoSmithKline 9.09% and others small companies hold 24.24% market share. CAUSES OF GOOD PERFORMANCE OF BPL: Until now tried to explain the performance of Beximco pharmaceuticals Ltd in the overall market and also in different therapeutic classes. But let us try to analyze the reason for which Beximco Pharmaceuticals is one of leading Brand in country. From my point of view the following variables plays the most important part behind the success of Beximco Pharmaceuticals Ltd. in Bangladesh and also across the globe. They are• Distribution Strength. • Quality controls of BPL. • Product Innovation. • Use of modern technology in production. • People 5.20.1 DISTRIBUTION STRENGTH: Distribution of product is very important no matter how good product is. In case Beximco pharmaceuticals Ltd. the distribution of BPL product is really good. In fact BPL has a distribution unit I & I services Ltd which is the distribution wing of chemical divisions. It maintained a large distribution network and covers over 25000 retail pharmacies every month all over the country. Along with this a highly sophisticated computerized order processing system, adequate logistic facilities like vehicles, depots and also professional sales people are also there in order to keep pace
with increasing market demand. So, strong distribution system of BPL plays a vital role in the success of BPL in Pharmaceutical industry Bangladesh. 5.20.2 QUALITY CONTROLS: Quality is the ultimate factor that works in the mind of the customers which create brand image at the end of day. The Beximco Pharmaceuticals Ltd. is known for its products. The strength of BPL lies in its quality controls system and up to date manufacturing facilities. It has established manufacturing facilities conforming to GMP and WHO standards. During all stages of manufacturing operation from receiving raw material to the release of the finished product the requirement of GMP are strictly adopted. 5.20.3 PRODUCT INNOVATION: Product innovation is successive factor behind the success of Beximco Pharmaceuticals Ltd in the pharmaceutical industry of Bangladesh. BPL knew that in order to survive in this challenging market product innovation is need to focus on deeply. So, as result research and development department were established in order to innovate new product, improving production process, product quality for further strengthen the position of BPL in the industry. This R & D teams is also continuously monitoring market feedback of various product to find ways of betterment. In 2005 BPL adds 49 new products lunched across a range of therapeutic classes with its existing brands including dosage forms and strength. 5.20.4 USE OF MODERN TECHNOLOGY IN PRODUCTION: Beximco Pharmaceuticals Ltd. is equipped with modern and updated technology in their production process. In the production process BPL is adopting all modern technology which strengthing the quality of product in more efficient manner. From my point view I think this is another reason for the success of BPL in Bangladesh and also across the globe. 5.20.5 PEOPLE:
BPL’s most vital resource is its people. Its dedicated team of professionals form various disciplines are integrated in conducive environment to achieve companies objective. The people of BPL strongly believe in the company’s philosophy of serving the nation and contributing to the society. BPL’s over 1,981 young, energetic, professionals ensures the timely promotion and smooth running of the product to every parts of the country. Thus this is another factor for the success of BPL. At the conclusion of this section I would like to say that now Beximco is a name of unique quality, commitment for society, customers and all parties involved with BPL. Co-ordination of this factor is another reason behind the success of BPL. If BPL could not make the co-ordination between these variables then the situation might have been different from now. CHAPTER SIX: RECOMMENDATION AND CONCLUSION From the earlier section we have seen the situation of Beximco Pharmaceuticals Ltd. overall market share and in therapeutic class in comparison with other company’s. Besides Beximco Pharmaceuticals Ltd. is doing really well in the pharmaceuticals industry of Bangladesh in fact Beximco Pharmaceutical Ltd. is one of the market leader in this industry. They are not only fulfilling the local demand but also the demand of foreign market. Beximco Pharmaceutical is exporting their product in 19 countries and earning a lot of foreign exchange. From point of view find any discrepancy between the survey findings of MRC and all partisan approach. In fact as Beximco Pharma is implementing the survey findings properly, they are acting as the market leader in this pharmaceutical industry. MRC department conduct the survey and prepare the survey report on monthly basis and send that report to CPM department. CPM department analyze that report and implement the findings if they think it as necessary. The current performance shows that Beximco Pharmaceuticals holds 19.26% market share in the overall market. But prescription also shows that there are some products which have high demand in the market in other way we can say that this product of BPL is contributing greatly for high market share. This product are-
Demandable Products of BPL Serial No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Products Napa Amdocal Tycil Arixon Intracef Neofloxin Atrizin Pedeamin Filmet Neoceptin R Bronkolax Neosten Aristovit-M
Therapeutic Class Paracetamol. Angina & ischaemic. Antibacterial. Antibacterial. Antibacterial. Antibacterial. Antihistamine. Antihistamine. Atiprotozoal. Antiulcerant. Bronchodilator. Skin. Vitamin
From prescription share analysis found that Beximco Pharmaceuticals performance in some therapeutic class is not that good in fact in those therapeutic class their market share is very low. BPL authority should not only depend on the demandable product rather they should try to focus on such therapeutic class where their market share is very low. Some of therapeutic class where BPL market share is low are• Anaesthetics. • Anthelmintics. • Antidepressant. • Anxiolytics. • Diabetics. • Anti-infective. RECOMMENDATION FOR IMPROVEMENT: From my two months of internship experience think the following measures could be taken by Beximco Pharmaceuticals authority for further strengthing their position both in the local market and also across the globe. • Adaptation of more advance technology in their production process.
• Initiative for producing the raw materials themselves that is introduction of raw material manufacturing unit so that the company does not need to import the raw material. As a result this will reduce this cost of production. • Improvement of compensation structure for the staffs and employees of BPL. • Uses of Modern updated software’s in all departments for accomplishing the task especially in MRC department use of SPSS software which I think will make the work more effective and efficient. It will also save a lot of time and energy. • Maintenance of formal dresses during the office hour. • Evaluation for the good performance of the employees by introducing award and incentives. • BPL should try to perform some social responsibility like establishment of Hospital, providing medical facility to any rural areas for particular period of time etc. At the end would like say that Bangladesh is poor country where we have to depend on import of foreign product for fulfillment of demand. But pharmaceutical industry is an exception which doest not depend on foreign
product rather we can fulfill our
demand by ourselves. This is a great proud for us. Our pharmaceutical product is full of outstanding quality which has created demand not only in Bangladesh but also across the globe. That day is not far when Beximco Pharmaceutical Ltd. will become a global based company.
BIBILOGRAPHY: 1) Annual Report of Beximco Pharmaceutical Limited, 2000. 2) Annual Report of Beximco Pharmaceutical Limited, 2001. 3) Annual Report of Beximco Pharmaceutical Limited, 2002. 4) Annual Report of Beximco Pharmaceutical Limited, 2003. 5) Annual Report of Beximco Pharmaceutical Limited, 2004. 6) Annual Report of Beximco Pharmaceutical Limited, 2005. 7) Booklet of Beximco Pharmaceuticals Ltd.
8) Marketing Research. ---------Naresh K. Malhotra ( Fourth Edition ) 9) Quick Index for Medical Product. ---------------Vol-10. 10)Quick Index for Medical Product. ----------------Vol-12. 11) www.beximco-pharma.com
Beximco Pharmaceuticals Industry is one of fastest growing and one of the largest foreign revenue earning sectors in Bangladesh. It is pleas...