PRESENT MARKET POSITION OF DINAC-TR CAPSULE (PAINKILLER DRUGS).
Introduction: (Background information) The pharmaceutical business is a composite of a variety of professional backgrounds, including pharmaceutical, engineering, accounting, law and marketing. The founder chairman made certain commitments of principle at the onset to guide the company as it pursued its goals: •
Act always with honesty, ethical and moral standards:
•
Adhere to standards of integrity in business and in products that benefit patients and inspire trust in Navana’s good name;
•
Embrace a hands-on work ethic and a commitment to Navana’s success;
•
Exercise community stewardship by pursuing growth to provide more jobs for more families;
•
Share the blessings of success by giving first to the community and then to the world.
History Late Alhaz Jahurul Islam, the founder chairman of Navana, established the company in the year of 1992; the company started its operation in that year. For the past several years Navana has worked hard to set itself in front line of country’s pharmaceutical market and as a quality company Navana has recognition for the value of its technology and quality of the work. Navana attained ISO 9001 certificate in the year of 2001.
Objective: The Marketing plan for Dinac-TR aims at achieving the following objective. 1.To find out the existing Dinac-TR drug in the market, and its comparative position. 2.To evaluate the market,external environment and internal environment. 3. To adhere to standards of integrity in businise and in products that benefite patients and inspire trust in Navana Pharmaceuticals good name. 4.To draw a competitive picture of Dinac-TR and other homogenious product. 2
SCOPE OF WORK:1.
Forcasting market potential
2.
Product strategies,action plans and assessments
3.
Pricing strategies,action plans and assessments
4.
Placement strategies,action plans assessments
5.
Promotion strategies,action plans and assessments
Although my best effort has been made in preparing the plan certain limitations could not be avoided: LIMITATIONS OF THE STUDY:- Limitation could not be avoided:● One of the majore competitor of Dinac-TR is Diclofen of Opsonin which is not located in Dhaka.It was not possible to obtain information about Diclofen. ● In some instances organization were not able to provide the required information due to corporate confidentiality. ● although Dinac-TR is in the market of Bangladesh for the last 15 years, sales data from the beginning was not available. Data of only past 5 years could be obtained.
METHODOLOGY:In preparing the report information have been collected from interview with portfolio manager,Navana Pharmaceuticals,Executive handling Ultrafen in Beximco & Ficlon in Rhone-poulenc Rhorer and various doctors prescribing NSAID and chemists.
Information for exernal environment analysis has been obtained from Statistical Year Book of Bangladesh, published by BBS, documents of Ministry of Health(particularly about drug policy) and from Internet. After gathering all the information,the strategies,action plans & assessments have been developed. The feasibility of all that have been proposed in the plan hase been cross- checked with Navana Pharmaceuticals and opinions have been obtained from concerned parties.
Chapter-2 Findings:1.The Product:- Dinac-TR Generic name:- Sodium Diclofenac HS code: 3004.10.00 Description of the drug: Non-Steroidal-Anti-InflammatoryDrug (NSAID) Theme: A flexible Choice in acute and chronic pain. Manufacturer:- Navana Pharmaceuticals Limited.
1.2 Available forms and their uses: Forms
Suitable for use in
Dinac-TR Enteric Coated
Rheumatic conditions:
Capsule
Osteoarthritis Rheumatoid Arthritis Amkylosing Spondylitis
Dinac-TR Capsule 4
Slow-Release
Rheumatic conditions: Osteoarthritis
Rheumatoid Arthritis Amkylosing Spondylitis Suppositories for adult
Rheumatic and non-rheumatic painful Condition such as postoperative pain, Arthritis,migrane.
Suppositories for children
In postoperative pain,juvenile RA and Otitis.
Dinac-TR ampules
Renal/billary colic Severe migrane attacks Acute gout Post-traumaticpain Treatment of post-operative pain
Dinac-TR Dispersible
Acute painful non-rheumatic conditions
Capsule
Acute back pain Primary dysmenorrhoea Sprains and strains
Dinac-TR Emulgel
Local therapy for rheumatic and Post-traumatic conditions: sprains and Strains, Bursities Osteoarthritis of peripheral joints
Cataflam 25 & 50 mg
Acute painful non rheumatic conditions: Acute back pain Primary dismenorrhoe
Sprains and strains
Any patients having pain of any kind consists the market for NSAID. Dinac-TR can be applied to any kind of pain-from headache to severe rheumatic or post-operative pain.
Market size: The total size of NSAID market in Bangladesh is Tk. 12,022,433,0001.
Market growth rate: 5 to 8% annually. Market share of Dinac-TR: 11.5% Doctor coverage: 7000 doctors approximately (95 doctor for every medical representative). 2.3
Features provided by Dinac-TR and benefits desired by doctors for patients:
Forms Dinac-TR
Product Feature Benefits Desired Enteric The 25 mg form provides an excellent A high efficacy medicine
Coated Tablet Dinac-TR
solution for not so severe pain Slow-
Release Tablet
1. Eliminate
multiple
against dosage
pains
caused
by
infection, hurt, cut, etc. 1. Simplified long-term
regimen. It cover 24 hours
treatment.
While 25 mg coated tablet
2. Patient compliance.
hardly cover around 9 to 10 hours.
2. Improve
efficacy
of
the
treatment. Suppositories Adult
For
3. Decreases side effect profile. 1. Better GI tolerability as it Doctors prescribe it when does
not
pass
stomach.
through oral
administration
is
inconvenient such as in case
2. Fast onset of action as passes of mishaps. They want it to liver after absorption.
be highly tolerable. Efficacy
3. Excellent in women during in child-birth.
4. Weather friendly.
rheumatic
and
rheumatic painful condition such as post operative pain, arthritis, migraine.
1
6
Source: IMS, 1999 (2nd quarter)
non-
Suppositories
1. Better GI tolerability as it does Doctors prescribe it when
for children
oral
not pass through stomach.
administration
is
2. Fast onset of action as passes liver inconvenient. They want it to be highly tolerable. Efficacy
after absorption.
in postoperative pin, juvenile
3. Weather friendly. Dinac-TR
Pain relief occurs within 45 minutes. This
RA and otitis. High efficacy drug against
Ampoules
form is particularly suitable in case of
severe pain.
Dinac-TR
major pains such as post-operative pain. 1. Dispersion time in water is 15
Dispersible
seconds.
Tablet
1. Swift dispersion 2. Swift absorption
2. Absorption attains within 1 hour.
3. Speedy action
3. Pain relief occurs within 20 to 30 Dinac-TR
minutes. 2 to 4 gm Dinac-TR Emulgel are
Emulgel
sufficient to treat an area of about 400 to
Cataflam
25
800 semi square. 1. Highly soluble, so absorption
and 50 mg
starts
immediately
Suitable for local therapy.
Fast relief in short term
after therapy.
administration.
2.
Pain relief within 15 to 30 minutes.
History of the Product within the industry and the firm Dinac-TR is an original research product of Navana. So, history of product in Industry and Firm coincide. The molecule, Sodium Diclofenac, was invented by Navana Pharmaceuticals Ltd. It was introduced in the market by the company by the brand name Dinac-TR. The product image has been enhanced by the good reputation of Navana as a house of anti-rheumatic. In Bangladesh, the product was first introduced in 0000. Before the introduction, the product was being smuggled into Bangladesh from India. Finding the demand for Dinac-TR, Navana Pharmaceuticals Ltd. Decided to formally launch it in our country.
With time, different forms were introduced such as Dinac-TR, Ampoule, Emulgel and like. Some forms exhibited extraordinary success e.g. the Suppository form proved essential for patients who could not take in the oral form. As time passes by, the local competitors began to emerge and challenge Dinac-TR. One of the successful is Opsonin.
Other
local
companies
posing
threat
to
Dinac-TR
are,Square
Pharmaceuticals Ltd (the product is Clofenac), Beximco Pharmaceuticals Ltd (Ultrafen), and Rhone-Poulenc Rhorer and Fisons (Ficlon). Among the seven forms, Navana Pharmaceuticals Ltd produce Dinac-TR Suppository for adult and child and Emulgel from the parent company.
Goals of Navana Pharmaceuticals Ltd Aspiration of Navana Capture and hold a leadership position in all of our business with a strong, sustainable performance, based on continuous innovation. Our long-term success is founded on meeting expectations of all our stakeholders customers, our people, shareholders and all the communities, in which we live and work.
Mission Statement of Navana We, Navana Pharmaceuticals, Guided by our Aspirations Believe in ensuring our long-term existence by being profitable and sustainable with our commitment to providing value adding products and services to satisfy the needs of our customers services in the sectors of: Health Care, Animal Health, Crop Protection. Our innovative efforts will be designed to incorporate all the technological Advances that will best serve the interest of all our stakeholders. We aim to lead the industry in terms of quality and effectiveness, by providing products and services that will serve as the standard of reference in the overall industry.
8
In carrying out these activities our leaders exihibit behavior based on our principles of a high-performance organization and empowered leadership. Our associates are customer focused, have a drive to learning, competence and professionalism. We believe in good citizenship based on openness and honesty. Our decisions are based on balancing the needs of all the organization and our people as well the society we work and live in. In all our activities we consider the impact on the environment. 1.
Maintain current market share.
2.
Foster successful relationship marketing with prospects.
3.
Serve new untapped segments.
4.
Enhance ‘quality image’ and ‘corporate image’.
5.
Achieve operational excellence by embracing change with a mind set of or continuous improved.
6.
Exploit synergic integrated company with harmonious relationship among functional areas.
7.
Upgrade MIS with timely, relevant and reliable information.
Chapter 4: Target market segments
TARGET MARKET SEGMENTS Segmentation variables for patients: 1.
Demogrphic
2.
Purchasing behavior pattern
3.
Based on diseas
Segmentation variable for doctors: 1. Demographic 2. Psychographic 3. Prescription Patter
4. Area of specialization
TARGET MARKET COMPONENTS 1. Doctors practicing in urban area 2. Years of practice 3. Area of specialization of doctors 4. Regular prescriber of NSAID Chapter 5: Product Category Demand Analysis:
Market Demand Analysis for Patients Demographic Description: Income: Upper and Upper middle income group (e.g. 7000 & above ) Age and lifestyle: All age groups have certain demand. But one particular segmentation can be patients of over 40 years of age who suffer from acute Gout.
Purchase Behavior Pattern: Usually sales increases in winter.
Segmentation based on disease: Patients suffering from following diseases are potential market segments for Dinac-TR:
Osteoarthritis
Rheumatoid arthritis Spondylitis Post operative pain Juvenile RA Otitis Migrane Renal biliary colic Acute Gout
10
Post traumatic pain Scute back pain Primary dismenorrhoea Appain and strains Buritis
Market Demand Analysis for Doctor Demographic Descriptor: 1.
Doctors practicing in urban areas
2. Years of practice
Segmentatation based on diseases: 1.
General surgeons
2.
Orthopedic Surgeons
3.
Medicine Specialists
4.
General Practitioners
5.
ENT Specialists
6.
Gynecologists
7.
Neurologists
8.
Dentists
Prescription behavior pattern description: Category A: Most potential doctor They are regular prescribers.
Category B: Potential doctors Doctors who prescribe pain killer less regularly.
Category C: Less potential doctors
Hardly prescribes painkiller.
Psychographics descriptor: Preference for original research products. Chapter 6: Competitor analysis 6.
Competitors Analysis: Brand competitors: They are the companies who offer similar product and service to the same customers at similar price. There are no mentionable brand competitors of Navana as no other companies are offering similar products at same price as far as Dinac-TR concerned.
Industry competitors: They are the companies who offer similar or similar class of product and services not at same price. The industry competitors of Navana as far as Dinac-TR is concerned are Ziska Pharmaceuticals, General Pharmaceuticals, Orion Pharmaceuticals, ACI Pharmaceuticals, Globe Pharmaceuticals and Gaco Pharmaceuticals. Among them the major competitors are Orion Pharmaceuticals, Globe Pharmaceuticals, Acme Laboratories.
Form competitor: They are the companies who manufacture and offer those products that provide similar service. As far as pain killing aspect of DinacTR is concerned, Orfenac, Ronac, A-Fenac, Genac, Mobifen, Dicloferal etc. can be regarded as form competitors.
Generic competitor: They are the companies that compete for the same consumer dollars. The generic competitors for Dinac-TR are the producers of hot water bags, ice packs etc. They also do not represent any significant competition. It is apparent from the above discussion that major competitors of Dinac-TR are Orion Pharmaceuticals, General Pharmaceuticals,Aci Pharmaceuticals. Globe Pharmaceuticals,
Competitors Profile: Company
12
Market
Product
share
growth
Area covered
Sales force
Doctor Coverage
rate Orion
3.1%
7%
Both Rural
Not Available
Around
and urban
20,000
Market share of major companies in NSAID
General Globe ACI Orion Navana 0.00%
2.00%
4.00%
6.00%
8.00%
10.00% 12.00%
Market share ACI
2.5%
3 to 5%
Both rural
120
And urban Globe General
2.0% 1.5%
Not
Both rural
Available
And urban
5%
Both rural
Around 15,000
200
Around 12,000
150
10,000
And urban
Chapter 7: Analysis of external environment
7.1 Economic Analysis Economic cycle stage: Recession Real GDP in crore taka (2002-2003): 45,573 GNP per capita (Atlas method): $ 250 GNP per capita growth rate (2002): 4.2%, projected growth rate 3.9% up to 2003. Total population: 125.6 million Urban population: 20% of 125.6 million (25.12 million) Consumer price index (2002-2003) National: 208.70 (1985-86=100) Consumer price index (2002-2003) Urban: 905 (1973-74=100)
14.00%
Rate if infliction: 7% International rate of exchange
Median Income per house hold: US$255 Total national debt: $16,354 million 7.2
Legal Environment
Legal environment: The main legal frame work for the pharmaceutical industry is provided by the Drug (control) Ordinance Act, 1982. This Act strictly regulates the production scope in the industry. The Act has given great impetus to the local firms. As a consequence, multinationals have faced a rather restrictive environment to work in. The Act outlines that, when at least two local firms starts manufacturing any specific drug and are able to satisfy local demand, import of such drug would be banned. Current regulation permits pharmaceutical companies to charge premium price on drugs that are their original research product. This is allowed to let The companies recover the huge cost of research and development. In other categories, government has set certain price ceilings. One important aspect of drug policy of Bangladesh is that it refrains multinational companies from offering certain profitable drugs such as vitamins. However, the government of Bangladesh is reconsidering this barrier in favor of multinational companies.
Consumer rights: Current drug policy has provisions for consumer safety. In this respect the following main objectives of the policy can be quoted: 1. Ensure adequate supply of good quality drug. 2. Reduce price of drugs and ensure supply of raw materials at reasonable price. 3. Prevent abuse of drugs. 4. Ensure safety of consumer by stopping use of unnecessary and harmful drugs. 5. Ensure that drugs available in stores do not cross the expiry date.
Regulatory bodies: The two main bodies which regulate the pharmaceutical industry are: 14
1.
Department of Drug Administration: This body issues licenses permitting manufacture of drugs and import of necessary raw materials.
2.
Department of Narcotics Control: This body controls firms that manufacture drugs using opium derivates.
3.
Both the departments work under the Ministry of Health, Government of Bangladesh.
7.3 Political Environment Consumer right agencies: Consumer’ Association of Bangladesh (CAB) is the major body that deals with protecting consumer rights. They conducted several studies on Drug policy and Drug (control) Ordinance act.
Domestic political climate: The political parties of Bangladesh are in a major strife. Two opposition parties have try to reached an agreement to initiate a mass movement against present ruling Four Party Alliance lead by BNP. They want interim elections. As a result, they are staging ‘hartals’ and other demonstrations at random intervals. Best possible scenario for domestic political climate is that the Government reaches reconciliation with the others. Worst possible is continuous strike hindering all social and financial activities.
Potential domestic political impact: More political instability, inter-party clashes, political turmoil. International political climate (per country or trade association): 1.
Last three years SAARC is not working well as Pakistan has experienced a coup and none of the other SAARC members are willing to carry on any PM level meeting but now it will be started recently.
2.
Some EEC members and US firms have become anxious about drilling for oil & gas in Bangladesh. At present, Bangladesh Government is under stress from these foreign countries regarding this issue.
3.
India had asked for transshipment facilities to Bangladesh but the local opposition parties and some other groups are strongly opposing it.
4.
The GATT phasing out in 2005 have major legal/political and financial implications due to free market. However , many third world countries are trying to postpone it.
Best possible situation under current scenario is that Bangladesh Government will enforce the interest of Bangladesh most effectively, in each of the above issues. Worst can be Western nations not co-operating Bangladesh pursuing Bangladesh to enter into agreement that are against the interest of Bangladesh as an agenda.
Potential International Political Impact (per country or trade associations): 1.
After the implementation of GATT, Bangladesh can enter the foreign market without any barriers.
2.
Bangladesh Government may find that it is concerned by the much stronger nations lobbying for the oil.
3.
India may raise its non-tariff barriers across its borders with Bangladesh.
4.
If Pakistan military fails to return power to civilians SAPTA activities can be severely hampered.
Cultural values: 1.
Bengali culture.
2.
Give more emphasis on context rather than the content of message.
3.
The lion share of population is Muslim.
4.
Place high value on national days as 21st February, 16th December, 26th march.
5.
An important element of the culture of Bangladesh is the Liberation War of 1971.
6.
Festivals such as Nababarsha are an integrated part of a Bengali life.
Cross culture impact: 1.
The society has turned more materialistic.
2.
Growth of English medium school in urban societies.
3.
Rising number of nuclear family.
4.
Rising number of restaurants offering cuisines of various cultures.
5.
Fast food shops, cyber cafĂŠ and large departmental stores such as HNP Family Mart.
16
Social analysis
7.3 6.
Growing preference toward English and Hindi movies and songs.
7.
Adoption of western clothes.
Sub cultural values: 1.
Strong sense of regional intimacy is observed among people of certain districts, such as, Noakhali, Sylhet, Chittagong.
2.
Relatively higher influence of religion among people of certain regions such as Sylhet.
Social group values: 1.
Informal communication is a significant part of working life.
2.
Chatting and gossiping is favorite pass-time.
3.
Less conscious about time.
4.
Places high value on marriage. Although the rate of divorce is increasing in urban area, people try their best to avoid divorce.
5.
The society is male dominated. But as days pass by, women are becoming more and more independent and aware of their rights and louder about abuse. Within the industry
Outside the industry
Domestic/o
No local R & D. however,
Not a very positive scenario.
Nshore
technology is being imported.
Bangladesh has a poor
business
capital goods manufactur-ing sector.
Government
No mentionable role NSAID
BCSIR and BRRI.
Market. However, ICDDRB conducts some research. University
Some very small-scale resear-
BUET and Bangladesh
are done during internship.
Agricultural University con-ducts various researches on technology.
7.5 Technological analysis Foreign/ There are many organizations
Great progress is taking place
offshore
that substantially contribute in
business technological research and development. Example: Navana, Orion.
particularly in West Europeand American business. Some research oriented organization Are IBM, General Electronics, Microsoft, Apple Macintosh Bell Laboratories, Davidson Laboratories,
Government Has taken noteworthy initiatives Tremendous in many sectors research. For example,Governm- .Like, NASA Wave resource, -ent Laboratories who test the
Space Plasma, Del Laborato-
efficacy of drugs, FDA, Advanc-
-ries, Wharton Laboratories
-ed Technology Laboratories.
etc.
Universities Leading bodies in research in
Here again Universities are
the fields are Harvard School of
the leading bodies. For exam-
Medicine, John Hopkins School
-ple, Massachusetts Institute
, and California Institute of
of Technology (MIT), Camb-
Technology.
–ridge & Oxford.
The analysis of technological environment reveals an important aspect for Dinac-TR. The major molecule of this drug Sodium Diclofenac has a side-effect. It patient taking any drug containing Sodium Diclofenac may have gastro-intestinal diseases. Currently, research has been carrying out to invent a new molecule that will minimize the chance of having any kind of side-effect. If the research is a success, then the new drug will replace Dinac-TR. 7.6 Opportunities and Threats to the firm based on External Analysis
Opportunity: 1.
GATT may offer great opportunity to Navana allowing it to freely import drugs.
2.
Government Drug Administration Department is reconsidering to give permission to produce restricted drug items to multinational companies.
Threats:
18
1.
Four imported forms of Dinac-TR are under threat of Government restriction because more than two local firms are now capable of successfully meeting demand of local market with similar quality. According to Government drug policy, imports of such drugs are normally restricted.
2.
Hartal-Current political instability can disrupt the distribution of drugs and seriously hamper marketing activities by creating shortage.
3.
A new generation drug having fewer side effects than Sidium Diclofenac may be invented and replace Dinac-TR.
4.
Local firms who enter into contracts with physicians and druggists may also hamper successful marketing of Navana Pharmaceuticals.
Chapter 8: SWOT Analysis
Strengths: 1.
Dinac-TR is in the Bangladesh market for past 10 years. As a result it enjoys a long heritage.
2.
High brand awareness.
3.
Dinac-TR is availability in all galanical forms.
4.
Since Dinac-TR is an original research product of Navana the company enjoys an image over others.
5.
Navana enjoys a high image as a multinational company providing drugs of superior quality.
6.
It also is renowned as a house of anti-rheumatic.
7.
Dinac-TR is known for its high quality.
8.
As the parent company has own research and development department that pioneers new drugs, Navana Pharmaceuticals has an advantage to introduce those drugs in Bangladesh and gain a competitive advantage over the competitors who will have to manufacture the generic form.
9.
When necessary, Navana Pharmaceuticals can seek technical and managerial support form parent company.
10. Navana Pharmaceuticals can charge a premium price on certain drugs that are original research product of Navana Pharmaceuticals.
Weakness: 1.
Inadequate sales force.
2.
High price of Dinac-TR acts as a barrier to pursue rural market.
3.
Being a multinational company, there are certain restrictions on Navana. For example, drug policy restricts the company from production of some profitable products such as vitamins.
4.
As a multinational company Navana must be abide by certain special Industrial norms.
5.
Navana does not have the capacity to manufacture four forms of Dinac-TR locally. These forms (Ampoules, Suppository for adult and child, Gel) are imported.
6.
Since Dinac-TR is an original product, Navana Pharmaceuticals must procure the raw materials as per the parent company requirement.
7.
Less dynamic upper management.
Opportunity: 1.
Above average growth of NSAID market.
2.
Increasing use of Dinac-TR suppository to quickly reduce very high fever has created a new opportunity for Navana to promote this drug for treating high fever.
3.
GATT may offer great opportunity to Navana allowing it to freely import drugs.
4.
Government Drug Administration Department is reconsidering to give permission to produce restricted drug items to multinational companies.
Threat: 1.
20
Availability of less expensive generics.
2.
Due to the drug regulation of Bangladesh government which specifies that if more than two Bangladeshi companies produce any form of medicine which is currently being imported and fulfill adequate demand of market the quality medicines produced locally is satisfactory than the form cannot be imported, Navana is under a threat of facing an import ban on the four forms: Ampoules, Suppository for adult and child, gel.
3.
If Navana cannot import those forms than the company will loose 6 crore taka which is 15% of company’s sale annually.
4.
A new generation drug having fewer side effects than Sodium Diclofenac may be invented and replace Dinac-TR.
5.
Hartal- Current political instability can disrupt the distribution of drugs and seriously hamper marketing activities by creating shortage.
6.
Local firms who enter into contracts with physicians and druggists may also hamper successful marketing of Navana.
Chapter 9: Forecasting Market Potential
9.1 Forecasting Marketing Potential Factors
Importan ce rank)
(in
Rationale
Source
Trend in
prescription
1
generation by selected
This will be an important tool inPrescription audit ‘prospecting’. The firm can pursue doctors more effectively.
doctors Trend in sales and
order
pattern size
in
1
chemists’ shop
Trend of number of people diagnosed with rheumatic osteothritis &
2
other related diseases Trend in prescription of different forms Trend on the number of
Sales data of the When Compared to prescriptionfirm generation, the trend in sales pattern will reveal whether chemists are influencing customers to buy drug other than what is prescribed. It can also reveal troubles and potentials inRequesting the relationship among distributionrespective doctors to staff and chemists. This informationmaintain a present will help Navana to deviselogbook to keep appropriate plans about promotion &records of patient. This will also help placement strategy. doctors to look into Dinac-TR is a NSAID whose chiefpatient flow for application is in treating abovethemselves. mentioned diseases. Chemists & IMS.
people operated each year. Number
of
doctors
starting practice
2
Chapter 10: Product Life Cycle and Sales Trend Analysis Sales
Pattern
NSAID market
in
Survey of hospital records. This information will help in production and promotion planning Review the doctors e.g.which form to promote more. registration list. One use of Dinac-TR is in posttraumatic pain reduction. This trend gives a fair insight in to the market potential for Dinac-TR
3 Number of doctors entering field that need NSAID products a good opportunity for increasing prescription of Dinac-TR
1200.00
M i l l i
22
o n
1000.00
800.00
600.00
400.00
200.00
0.00
Salaries1
1994
1995
1996
1997
1998
549
516.55
581.874
804.788
796.041
1999(projected)
996.87
Sales pattern of Dinac-TR 160.00
M
140.00
i l
120.00
l
100.00
i o
80.00
n 60.00
T
40.00 20.00 0.00
1994
1995
1996
1997
1998
1999(projected)
73.3
60.28
68.053
107.889
122.136
134.725
Salaries1
The above two graphs shows the sales pattern of Dinac-TR and the total NSAID market respectively from 1994.
Product Life Cycle Stage and Rationale for Judgment Dinac-TR is entering the maturity state. Its market share is gradually leveling. The age of Dinac-TR in NSAID market of Bangladesh is 10 years. The average growth rate of Dinac-TR has declined from around 14% to around 6% over the last eight years.The high R&D cost inventing Dinac-TR has been recovered over the years after its introduction. At present, there is low cost per customer and high profits. The following BCG matrix shows the position of Dinac-TR in its life cycle.
M
21%
Stars
A R
Question mark
18%
K
Relative Market Share
E T
BCG Matrix
15%
Chapter 11: General strategies of Navana
General strategies
G 11.1 R
12%
O
•
W T
Dinac-TR
• 9%
Defend the existing market share. Search for and launch new products to enter
H
Cash cow
markets.
profitable Dogs
6% 10X
•
4X
2X 1.5X
1X
0.5X 0.4X 0.3X
Preemptive attack on competitors posing threat. •
Extend product line.
•
Enhance corporate image.
•
Strengthen commitment safety & environmental protection.
11.2
24
Functional Area General Strategies
0.2X
0.1X
Finance: 1. Increase Value to the stakeholders. 2. Effective portfolio Analysis. 3. Well planned capital budgeting.
HRM: 1. Train and build up personnel in each department to excel in his/her functions. 2. Design effective motivational package. 3. Arrange for objective performance appraisal. 4. Maintain database on internal public.
Marketing: 1. Defend market share. 2. Delivering superior customer value, satisfaction and quality market/centered strategy and “taking care of the customer�. 3. Relationship marketing- keeping customers and capturing customer lifetime value by building value-laden customer relationship. 4. Applying marketing technologies and communications that are revolutionizing the ways companies deliver customer values. 5. Total marketing Quality- cross-functional teamwork within companies and cross company, supply- chain partnerships to create effective customer value-delivery system. 6. Arrange for efficient forecasting.
Production: 1. Ensure quality of product 2. Produce per schedule 3. Ensure timely purchased and proper maintenance of raw materials 4. Upgrade production technology when necessary. 11.3
Prior marketing strategies that substantially exceeded expectation
Strategy Creation of
Action Plan 1.
Introduction of Dinac-TR suppository greatly increased
Utility
sales by affective form utility e.g. people who were unable to take in oral dosage due to for example, in case of accidents or in case of very high fever. 2.
Prior to the introduction of Dinac-TR dispersible there was a demand for 50 mg NSAID tablet in the market. Navana predicted that if the company Dinac-TR 50 mg tablet it would face tremendous competition. Therefore they introduced Dinac-TR dispersible, which satisfies the same demand of Dinac-TR 50 mg. But provides a different form utility. This resulted in a success story for Navana and Dinac-TR.
Targeting new
At early stages, Dinac-TR was promoted primarily to
doctors
specialists. A survey reals that patients first go to general
segment
practitioners and if that treatment did not work they went to specialists. Finding this Navana promoted Dinac-TR to general practitioners. The result was a success.
12.0 Product Strategies, Action Plans and Assessments
Product Strategies
Introduce
Bring in new
Distinctive
new use of
technology
positioning
from competitor’s
of various
products through
forms of
product differentiation
Dinac-TR
Differentiate Dinac-TR
Dinac-TR Figure: Product Strategies
Strategies 1: Introduce new use of Dinac-TR. Navana has successfully promoted its ‘intra muscular injection’ use in some markets instead of the conventional ‘intravenous form’. It can easily initiate this use in Bangladesh. No other local brand has yet safely claimed such use. But Navana can, since it has already found this use through research. Such use opens a completely new door. 26
Action Plan: 1. Inform opinion leaders (major doctors). 2. Presentation on this new use can be arranged. 3. Highlight the new use in journals. 4. Provide doctors with promotional material and mention this new use. 5. Also inform druggist of this new development.
Evaluation methods: 1. Doctor’s feedback (through field force). 2. Prescription audit in following months and compare the result with that of previous prescription audit. 3. Sales data of the new form.
Strategy 2: Bring in new technology. Another new technology that can be adopted is Dividela Ampoule. This technology allows the user to directly inject from a Syringe instead of the loading the drug from an ampoule into a syringe.
Action Plan: 1. Inform doctors. 2. Arrange seminars and presentations. 3. Highlight the news in medical journals and health pages of various newspapers. 4. Develop appropriate promotion and distribution system for this product.
Evaluation methods: Prescription audit. Sales pattern of Dividela Ampoule.
Strategy 3: Some of the local pharmaceutical companies have started using Leudocane (a calcium based anesthesia) that stops the skin irritation caused when Sodium Diclofenac is injected. But Navana has not added this to Dinac-TR. Under the circumstances, DinacTR has two strategic options open to it.
Navana can highlight the fact that Leudocane is an unnecessary chemical that is being injected to the body of a patient. Here Dinac-TR can really cash in on the conservative attitude of doctors who always try to avoid prescription leading to ‘unnecessary chemical intake’.
Action Plan: 1. Arranging seminars and informing the opinion leaders (usually professors) about this issue.
Strategy 4: Sodium Diclofenac has an internationally recognized standard of Calcium to Sodium ratio. However, most of the local companies usually do not maintain this ratio because adding excess calcium increases the shelf life. For example, it can increase the shelf life up to 3 years. But for maintaining the internationally recognized ratio, Dinac-TR’s shelf life is 2 years. Thus Dinac-TR can high light this issue of not following the standard ratio to doctor’s and discourage them from prescribing.
Action Plan: Arranging seminars and informing the opinion leaders (usually professors) about these issues.
Strategy 5: Distinctive positioning of various forms of Dinac-TR.
Action Plan: Dinac-TR 25 mg will be positioned as acute painful conditions. Dinac-SR 100 mg will be positioned as for chronic forms of rheumatism. Dinac-TR ampoule will be positioned as for acute painful conditions of post-operative and post-traumatic origin, Renal colic, Biliary colic etc. Dinac-TR suppository will be positioned as an alternative choice for painful conditions of rheumatism. Dinac-TR dispersible will be positioned as a medicine against all kind of pain to daily patient management. 28
Dinac-TR Emulgel will be positioned as a drug for soft-tissue rheumatism and traumatic painful conditions. Cataflam tablet 25 mg and 50 mg will be positioned as a fast acting analgestic antiinflammatory drug for the short-term treatment of acute painful inflammatory nonrheumatic conditions.
Evaluation: Whether the positioning has been successful can be identified though a survey conducted on doctors asking for what symptoms they prescribe each form of Dinac-TR.
Strategy 6: Differentiate Dinac-TR from competitor’s products through product differentiation.
12.1 Product Component Description Action Plans: 1. Add surrogate cues to enhance product. This is particularly applicable for DinacTr dispersible tablet (Dinac-TR). The taste of this tablet is bitter. This product feature often refrain doctors from prescribing it. An improved taste of Dinac-TR will generate substantial amount of prescription. Brand considerations: A new brand name is usually used in case of original research product. Promotional campaigns are designed to strongly back up the new brand image. The company image further adds to the brand aura. For generic products the general procedure is to add part of the molecule name to some prefix/suffix in order to create a new name. 13.0 Pricing Strategies, Action Plans and Assessment Strategies
Action Plans
Evalution methods
Use pricing as an
Follow
implicit promotion tool
pricing
for chemists
Market survey on chemists
Pricing Strategy
Make Dinac-TR more
Determine the best price
affordable
level
Market survey on chemists
Figure: Pricing strategies, action plans and evaluation methods
Strategy 1: Use pricing as an implicit promotion tool for chemists.
Action plan: Follow odd pricing.
Rationale: Currently Dinac-TR is priced evenly, that is, for example, the price of Dinac-TR 100 mg is Tk. 12.50 per tablet and Dinac-TR ampoule (75 mg) is priced Tk. 75. Following odd pricing approach, Dinac TR 100 mg can be priced Tk. 8.73 and Dinac-TR ampoule (75 mg) can be priced Tk. 49.64. Then in every Dinac-TR 100 mg, the chemist will gain Tk. 0.17 and in every Dinac-TR ampoule (75 mg), the chemist will gain Tk. 0.26. This would not be possible in case of Tk. 12.50 and Tk. 75 as customer will get a change. In case of Tk. 12.50, although it will not be possible to give change of Tk. 0.50, if the customer by even number of tablet, chemist will not gain anything and no matter how many tablet a customer purchases, the chemist will gain at best Tk. 0.50. as a result, chemists are often found to dishonor a prescription of Dinac-TR and favor odd priced competitor brands e.g. Clofenac of Square Pharmaceuticals.
Evaluation: Market survey on chemists to find out whether they any more dishonor Dinac-TR and favor competitor brands on the basis of pricing will reveal the effectiveness of odd pricing.
Strategy 2: Make Dinac-TR more affordable. 30
Rationale: Currently the price of Dinac-TR is about four to five times higher than competitor brands. Even though doctors regard Dinac-TR as number one in quality, but due to the high price of this drug, often they cannot prescribe it. A reduction in the price of Dinac-TR will increase the number of prescription substantially, leading to greater market share in terms of volume and profit.
Action plans: 1. Determine the price at which the reduction in price will be offset by the increase in revenue. 2. Reduce the price of Dinac-TR at that level.
Evaluation: Conduct market survey to find out increase in prescription generation in favor of DinacTR due to reduced price. 1. Maximize profit while defending market share. 2. Maintain the price leadership. 3. Enhance the image of the firm and its offerings. 13.2 External environmental influence to be considered when developing the firm’s price policy:
Environmental factor 1. Since the raw materials of Dinac-TR
Influence Higher cost of product.
must be purchased from sources specified from the parent company, cost of raw material is higher than those of competing brands. 2. Doctors prescribe Dinac-TR when they
Navana must be cautious about
want to be sure about the effectiveness of
setting the price of Dinac-TR.
medicine. 3. The price of Dinac-TR is higher than
Doctors are more likely to
competing brands. As a result the competing prescribe competing brands companies often engage in negative campaign when the purchasing power of using high price of a Dinac-TR as an attack- patient is crucial.
-ing tool. 4. It is internationally acknowledged that
The price of Dinac-TR can be
pharmaceutical companies can charge
higher than that of competitors.
premium price for their original research product to recover the huge cost of R&D.
13.1 Pricing policy objectives: 5. Chemists often prefer odd pricing (Tk. Navana should consider odd Chapter 14: Placement Strategies, Action Plans and Assessments Placement Strategies
Ensure on time Delivery system
Computerize the inventory
Enhance skill of depot staff
Reduce order cancellation
Figure: Placement strategies, action plans and evaluation methods
Strategy 1: Ensure on time delivery system to prevent stock out of major retailing & wholesaling centers.
Action Plan: 1. Quarterly review of forecasts of the entire sales region. 2. Assess reasons for late delivery. 3. Feedback from regional depot heads about the forecast. 4. Arrange for extra storage space during winter. If needed rent extra storage space with adequate facilities. 5. Allocate and reschedule vehicles in each regional depots depending on demand basis so that increased number of visits to druggists can be arranged.
Evaluation methods: 1. Feedback from sales force who visit druggists. 2. Independent survey.
Strategy 2: Computerize the inventory management system in the depots i.e. keep track of pharmaceuticals from depots.
Action plan: 1. Critical review by specialists about the system about inventory management. 32
2. Evaluate and prove the most suitable proposed model of computerization. 3. Train relevant staff with basic computer literacy so as to operate the system.
Evaluation: 1. Expert opinion on implementation of systems. 2. Cost benefit analysis in terms of installation cost and benefits due to early warning of stock-out, error reduction, labor cost reduction etc. 3. Druggist survey about the impact of the new system to find out if delivery timing has been improved after implementing computerization. 4. Review ‘order cancellation’ situation.
Strategy 3: Enhance skill of depot staff through training in order to improve service quality.
Action plan: 1. Training the store-in-charge about Inventory management, Employee motivation. 2. Training Accountants on update A/C related computer software followed by the company. 3. Training the deliveryman about the Salesmanship, Necessary banking instruments like DD handling, on percentage, discount calculation. 4. Training the drivers on Mechanical know-how of vehicles to face sudden mechanical failure and for normal day-to-day maintenance.
Contingency Plan: 1. Reschedule delivery timing to counter opponent attack. 2. Arrange for emergency supply if stock-out possibility arises. 3. Maintain punctuality in delivery so as to build confidence/ reliability among chemists that Navana will deliver its product on time. This will prevent them, from buying from others even if they approach earlier. 4. Behavior training to sales personnel. 5. Relationship Marketing with retailers and wholesalers. 15.0 Promotion Strategies, Action Plans and Assessments
Strategy 1: Increasing customer base (Doctor base).
Action Plan:
 Increase the number of sales force so that they can cover more
number of doctors. At
present there is only one medical representative for 115 doctors. Increasing the number of doctors per medical representative will be adding burden to the field force and will be ineffective. To get more doctor coverage Navana must increase the size of its field force.
Performance Evaluation: The cost of keeping additional medical representative must be weighed against the number of additional prescription generated due to him.
Strategy 2: Motivate chemists to promote Dinac-TR.
Action plans: 1. Navana should apply implicit promotion to induce chemists. Dinac-TR should be priced odd (e.g. Tk.12.55 per tablet instead of Tk.13). In case of odd pricing, as in the example, chemists will get a profit of Tk. 0.45 per tablet as the change of 45 paisa is not available. This will motivate chemists to pursue customers to buy Dinac-TR even when according to prescription the chemist should give him a drug of competitor of Dinac-TR. 2. Navana will arrange sales award system for chemists on the basis of amount and volume purchased. 3. Navana will maintain a profile of chemists that will indicate the preferences and motivating factors of the chemists. The company will accordingly devise promotion materials to motivate them to promote Dinac-TR to customers. This will also help the company to build and maintain a friendly relationship with the chemists. 4. Adopt “Dear Chemists Letter�. Occasionally Navana will send mails to the listed chemists in the chemist database that will content any information that Navana finds that chemist should know.
Performance evaluation: 34
A before after experiment with control group may be used to find out the effectiveness of odd pricing.
Strategy 3: Highlight distinct positioning of each from of Dinac-TR
Action plan: Dinac-TR 25 mg, which will be positioned as acute painful conditions will be promoted as “A proven and trusted analgesic/ anti-inflammatory drug. Dinac-TR 100 mg, which will be positioned as for chronic forms of rheumatism, will be promoted as “Once a day anti-rheumatic”. Dinac-TR ampoule, which will be positioned as for acute painful conditions of postoperative and post-traumatic origin, Renal colic, Billiary colic etc, will be promoted as the fast and potent analgesic/ anti-inflammatory drug.
Evaluation: Market survey on doctors, internees to find out awareness regarding Dinac-TR within three months of implementing action plans.
Strategy 7: Build up skilled field force. Action Plan: 1. Arrange for training sales force about courtesy in dealing with doctors. Training should focus on: •
Presentation skills.
•
Helping answering queries while satisfying the inquirer.
15.1 Promotion Campaign Plan: •
To receive feedback & analyze doctor’s sentiment after seeing his behavior.
•
Details of new developments about forms, compositions, of products should be informed.
•
Management of time.
•
Handling and effective delivery of gift/ incentives to doctors.
2. Special training to great druggists.
Evaluation: 1. Prescription audit within 3 months of training of the medical representative. 2. Feedback from chemists and doctors about the representatives.
Strategy 8: Selective promotion approach. Rationale: This strategy has already been implemented by a chief competitor of Navana. 5. If any competitor starts excessively promotion of certain form, Navana can start to process alternative forms on a reshuffling basis. 16.
Performance evaluation and control
In general, the performance evaluation may be divided into two broad classes: •
Sales performance: To what extent the targeted sales (in unit) is achieved.
•
Prescription performance: To what extent the targeted prescription performance is achieved.
For the purpose of monitoring and control field force activities, Navana can use specially designed software “Filled Force Monitoring System” for pharmaceutical company. The following diagram chart depicts a summary outline of suggested performance report to evaluate the implementation of marketing plan: Performance Report:
1.Sales 2.Profit 3.Experienc e 4.Pricing variance 5.Finished 6.Inventory
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Comments
Person responsible for
Reasons for fluctuation
Fluctuation
% of actual
Actual
Plan
Year to date % of actual plan
Plan
Item
This month
7.Order backlog
The following chart shows another tool for evaluation and control of implementation of marketing plan: Aggregate 1. Sales a. Total dollar sales
Disaggregate data 1. Sales by a. Product b. Market c. Geographic area (e.g. region, district, territory) d. Major Accounts
2. Profit a. Net profit
2. Profit contribution by a. Product b. Market c. Geographic areas d. Major accounts
3. Expense b. Total marketing
3. Expenses by a. Sub-department of marketing b. Sales regions, districts, territories.
4. Pricing Variances a. Total
4. Pricing variances by a. Product b. Market c. Geographic area
5. Finished Inventories
5. Finished inventories in units by a. Product b. Plant c. Field Warehouse
6. Order Backing in excess of standard time to fill by:
6. Order Backing in excess of standard time fill by:
a. Total Taka Value
a. Product
b. Average number of days
b. Average days over standard
over standard
product
17.0 Conclusion The implementation of marketing plan must have room for flexibility. The plan may require to be modified if there is any substantial change in the internal or external environment.
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