Submitted To:Md. Farhan ImtiazLecturerInstitute of Business
AdministrationUniversity of Dhaka
Raproxain by NM Pharmaceuticals Ltd.Submitted by:Nafis Uddin
Mehran (Roll: ZR-67)Ishmam Maliha Raisa (Roll: RH-72)S.M. Fahim
Hossain (Roll: ZR-85)Tamjid Yameen (Roll: ZR-90)Md. Abrar Nakib
(Roll: ZR-115)Rahman Nahian (Roll: ZR-119)
LETTER OF TRANSMITTAL
June 01, 2014
Md. Farhan ImtiazLecturerInstitute of Business
AdministrationUniversity of Dhaka
Sir,
With due respect, we would like to present to you our term paper
for Biological Science course. It is a marketing report on the
launching of a new medicine brand named Raproxain in Bangladesh by
a hypothetical company, N.M. Pharmaceuticals. We believe that it is
in compliance with what you had instructed us to do.
For the preparation of this paper, we have collected and created
relevant information from our own knowledge, your course, past
Marketing course and various data archives online.
Finally, we wish to inform you that we have worked diligently to
present to you an impeccable report, and we would like to cordially
thank you for giving us this opportunity to perform under your
supervision. We have managed to learn a lot under your expert
guidance, and the experience has been invaluable. We hope that we
will have the honor to learn more from you in the future.
Sincerely Yours,
Nafis Uddin MehranIshmam Maliha RaisaS.M. Fahim HossainTamjid
YameenMd. Abrar NakibRahman NahianTABLE OF CONTENTSExecutive
SummaryPage 4ProductPage 5PositioningPage 7PricingPage
13PromotionPage 20PackagingPage 26PlacePage 29ProcessPage
32PeoplePage 32Physical EvidencePage 33PlanetPage 33ConclusionPage
35
Executive Summary
We have started off with the activities of a hypothetical
pharmaceutical company named NM Pharmaceuticals ltd. Through this
company we are launching our product Raproxain composing of
Naproxen 500mg as non-steroidal anti-inflammatory agent and also
added with that a proton pump inhibitor to oppose the adverse
effects of this particular NSAID upon receptors gastro-intestinal
tracts. Thus, with this medication we will enable our customers to
get rid of pains of all kinds of auto-immunity inflammation such
arthritis and also of anky-losing or spondylitis diseases.To finish
this comprehensive report, we have used the 10P strategy of
marketing formulation as our prime methodology and therefore
described the futuristic planning surrounding concepts of product,
proposition, pricing, promotion, packaging, place, process, people,
physical evidence and planet.In the product part, we have actually
shown the therapeutic properties of the drug and indications with
contraindications. We tried to position our brand with varied
different up to date techniques. In the pricing section we
summarized the whole costing process and dealt out the MRP for unit
amount of our product with that we also got the net income, the
bottom line for which we are all working upon the product.
Forecasts for next four years costing and net proceeds are also
added with it. Then there will be our extra ordinary promotion
plans to get an very optimistic yet gettable 10% market share over
the market of naproxen, which is very far from reaching saturation.
We have altered the idea of traditional packaging with all new
Rapple packaging system made of biodegradables. These strategies
will be followed by the place, process, people and planet parts
which are there mainly to make everyone familiar with our companys
humane site and environmental cum employment-health awareness. We
also designed physical evidence strategy to put our product on the
front row of retailers.
ProductRaproxain
Generic name:Naproxen, as NSAID (non-steroidal anti-inflammatory
drug) with Rabeprazole as PPI.Composition: Each enteric coated
tablet contains Naproxen 500mg USP (as per US Pharma) and
Rabeprazole 20mg USP as sodium salt.Introduction:Naproxen is a
nonsteroidal anti-inflammatory drug (NSAID). It works by reducing
hormones that cause inflammation and pain in the body. Naproxen is
used to treat pain or inflammation caused by conditions such as
arthritis, ankylosing spondylitis, tendinitis, bursitis, gout, or
menstrual cramps.Indications:This particular medication is
indicated to treat and relief the symptoms and signs of: Rheumatoid
Arthritis Osteo-Arthritis Ankylosing SpondylitisDosage and
administration:In general, to treat patients with pains and
inflammation causing from arthritis and spondylitis, the dosage is
one tablet of Raproxain twice daily. The dose should be swallowed
with fluid at least before 30 minutes of a meal.**Extra-ordinary
differentiation:Raproxain is the first of its kind in the world to
produce an NSAID coupled with Rabeprazole as proton-pump inhibitor
which will reduce the risk of erosive gastritis, dyspepsia, and
peptic or duodenal ulcer caused from the use of anti-inflammatory
drugs.Contraindication: Known hypersensitivity towards Naproxen,
aspirin or any other NSAIDs Asthma after using NSAIDs After or
before coronary artery bypass graft (CABG) surgery Renal and
Hepatic impairment Late pregnancy & lactating
motherSide-effects:In common, there has been no side effect after
using Naproxen other than gastro-intestinal syndromes, due to
erosion of mucus level, such as dyspepsia and gastric ulcers. These
also can be reduced with the coupling use of Rabeprazole. If the
patient is hypersensitive towards Naproxen, Urticaria and other
allergic actions like asthma may be observed.Overdose: there is no
clinical data.Interaction: can interact and affect the effects of
other NSAIDS, Steroids, blood thinners (warfarin, Coumadin),
lithium.Why better than other NSAIDs: This medication is much less
powerful than Erodolac, ketorolac tromithamine and other
post-operative anti-inflammatory groups. Thus its much suitable as
an daily usable Arthritis & spondylitis pain-reliever drug.
This is absorbed and solutes much easily in lever and does little
harm to the kidney through its medicinal process than other NSAIDs
like Diclofenac and Sulindac. Diclofenac and ibuprofen also does
harm to heart. This works slower than ibuprofen, ketoprofen,
fenoprofen, etc. but its effect is longer lasting than all of
them.
Why better than other proton pump inhibitors: Rabeprazole works
on its effect one and a half times faster than Esomeprazole Its
effect lasts twice longer than omeprazolePositioning: An analysis
of Market nature, Segmentation, Target market and Consumer
behavior
Market Nature: Market Size and Expected Market ShareThe generic
product base of naproxen has a total estimated business or market
of 33.9 crore BDT. Forty three pharmaceutical companies produce 54
dosage forms of Naproxen under varied names. But, the market tends
to be only controlled by the leading five producers.Roche
Bangladesh Pharmaceuticals is the current market leader with 29.9%
market share and a business valued at close to 100 million BDT.
Name of their product is Naprosyn. Anaflex of ACI is the second
best in market with 17.02 % market share but their market tends to
be going down for unknown reason as their share has been 32.8% just
the previous year. Their downgrading is well utilized by Roche, as
they now have the largest market share. Square pharmaceuticals is
in 4th place with their Sonap and is just preceded by the Naprox of
Eskayef Pharma which is n 3rd place. They got a 13.06 and 13.7 %
market share respectively. Napro-A of Acme pharmaceuticals is in
5th place with a market share of 11.8%. Approximately, 85% market
is occupied by this 5 big market players.We, with our product
Raproxine, are planning to penetrate the much occupied market with
totally different promotional and sales strategy and expecting a
market share nearing 10% at the very first year of our production.
We know well that its bit optimistic yet we hope that we would be
able to clinch this target with our planned marketing strategy.
Besides, there are also drugs that combine naproxen and
esomeprazole so that patients just can take one tablet to solve
their targeted problem whereas taking just naproxen needs
additional drug containing similar ingredients like esomeprazole.
But they hold a a very little market together compared to the
traditional naproxen. Following are the brands and their drugs that
combine naproxen and esomeprazole is the direct rivals for our
produced drug Raproxain which uses powerful rabeoprazole instead of
esomeprazole:
Brand NameDrug NameIngredient
Delta Pharmaceuticals Ltd.DEMOVO (375/500)Naproxen Sodium +
Esomeprazole
Beximco Pharmaceuticals Ltd.DINOVO (375/500)Naproxen Sodium +
Esomeprazole
Ziska Pharmaceuticals Ltd.NAPXON (375/500)Naproxen Sodium+
Esomeprazole
Aristropharma Ltd.NESO (375/500)Naproxen Sodium+
Esomeprazole
Incepta Pharmaceuticals Ltd.PROGESIC (375/500)Naproxen Sodium +
Esomeprazole
Brand Positioning of Raproxain: The Top of the Pyramid
Now that we have seen our market scenario, we can clearly see
Raproxain will compete in a market against two genres of Drugs.
First genre : Naproxen Sodium Second genre : Naproxen Sodium and
Esomeprazole Here, our point of differentiation is (POD) for the
product is the superiority of Rabeprazole over Esomeprazole. This
POD makes it superior over 2 genres mentioned above but due to the
supply of raw materials and regarding the effectiveness of
Rabeprazole it is likely that the price will be higher than those.
As a result, we would like to serve the Top of the pyramid, a very
niche market where we will provide the best quality NSAIDs and
charge premium prices with value based pricing. As a result if we
do the Vector Mapping analysis regarding current market we will see
our Brand Raproxain will operate in a completely different market.
A unique brand position in the vector mapping entails that the
product is likely to be successful in the market despite the sales
volume will not match as much as those operating in the middle of
the pyramid and mass market. But with maintaining the ultimate
branding in our promotion and packaging we can make the best profit
margin by serving this niche market.So finally the bottom line is
our Brand positioning focuses on things1. The best quality product
with Rabeprazole combined2. Premium pricing 3. Operating Top of the
pyramid4. Reflection of the brand image in the promotion and
packaging.
Segmentation and Target Market: Who needs NSAIDs?
Demographic SegmentationNSAIDs can help reduce fever and are
often used to treat mild to moderate pain due to a variety of
conditions, such as arthritis, back aches, dental procedures,
headaches, muscle spasms, menstrual cramps, sprains and tendinitis.
NSAIDs are most frequently prescribed treatment for osteoarthritis.
The drugs dont cure disease but they can help relieve its symptoms.
So basically, people who are prone to any sort of pain are the
potential customers for NSAIDs. But our target market must look for
2 major issues: Who are the people potentially expose to pain
threat? Are they ready to pay premium price to get the best
solution out of market?Looking through this answer, we have got
distinctively 3 clear target market who meets two of our addressed
issues.
Target MarketAffordabilityExposure to Pain
SportsmenSportsmen have a higher income level as well as desire
to do the best for being fit.High: Due to exposure to unexpected
muscle and other injury. Urgency to recover within a time frame to
get return to game
Regular gym goerThose who can afford to go to gym regularly are
ready to spend extra money for their fitness causes.Moderate : due
to exposure to heavy physical activity
40+ people40+ people in Bangladesh have better income levelHigh
: Due to their age factor
But here comes the most important question. How do we reach
them?And restrictions on Above The Line (ATL) promotion in
pharmaceuticals industry makes it more difficult to reach the
potential target market. Doctors and physicians are traditional
gateways to reach them. Although NSAIDs are prescribed by the
doctors but in Bangladesh, a major portion of people show a
tendency not to go to doctor for this types diseases especially in
the minor cases. Rather they ask their peers, family members and
other people around them to get the best relief for the pain. Even
shopkeepers play vital roles and have power to drive people to buy
NSAIDs. So Marketing through Word of Mouth will facilitate us to
communicate with customers in Double gateways. Direct promotion to
Patient Target Market Direct Promotion to Doctor group who will
serve our Patient Target Market
Figure: Target Market Chain: Double Gateway
As it is not always same game as other drugs when it comes to
NSAIDs. So only promotion to doctor will make us miss a massive
opportunity to exploit particular consumer behavior to mentioned
above. So following this pattern for our targeting and segmentation
will give the best output in terms of promotion and other Ps to
gain our desired market share.Geographical Segmentation Because of
charging premium price, we must make geographical segmentation to
get the best out of our targeting and positioning. So we will
initially market our product just to 7 divisional cities which
includes: Dhaka, Chittagong, Khulna, Barisal, Rajshahi, Sylhet and
Rangpur.
Size of the Target Market
The great volume of target market size also indicates that the
product has a great opportunity in terms of demand. Among three
patient group, 40+ aged group dominates with an staggering figure
of 5, 64, 31,665 people which is 37 percent of the total population
according to the census of 2011. But as we are targeting the 6
divisional city that narrows down our target figure and assuming
that 40+ aged people will be of 37 percent of the district
population we can calculate an approximate size of the real target
market and it becomes almost 16.835 million 40+ aged people.
CityPopulation40+ aged Percentage40+ aged people per city
Dhaka10 million37%3.7 million
Chittagong4 million37%1.48 million
Rajshahi.7 million37%.26 million
Khulna1.3 million37%.481 million
Barishal.28 million37%.1036 million
Sylhet.27 million37%.0999 million
Rangpur.285 million37%.10545 million
40+ aged people who are our target market16.835 million
Among sportsmen approximate number of professional footballers
from 3 football divisions all over Bangladesh is 1500. Cricket has
4 divisions which sum up a number of 2000. And if we count other
sport professionals as well as amateur sports the figure will cross
at least 20000.Bangladesh having 2500 gyms all over the country
including 600 in Dhaka and suburban area the approximate gym goers
number of people will be almost 15000. So it looks the total market
size is very huge with almost 17 million people.
Pricing and Costing
Financial planning & cost structure
costing per tablettotal cost for 3 million tablets
ParticularsbdtBdt
raw material cost
naproxen r/m1.95700000
rabeprazole r/m1.13300000
wastage (5%)0.15450000
packaging material0.25750000
total material cost3.410200000
conversion cost (medc+pacg)0.51500000
direct labor0.752250000
total product cost4.6513950000
distribution & admin exp.0.952850000
VFOH (machinery+utility etc.)0.852550000
FFOH for 3 mil tabs0.551650000
marketing/promotional cost3.39900000
TOTAL COST10.330900000
mark up (12.2%)1.2566---
VAT (16.5%)1.6995---
retailer comiss. (16%)1.6484944000
MRP per tab14.9041
MRP per 20s pack298.1
From the above schedule of costing it can be seen that three
million tablets are being produced. The number is a very good one
keeping in mind that the factory is at its initial stage of
production. This huge number of tablets will enable the company to
achieve high levels of efficiency in a very short period of time.
Since the factory is already producing a huge number of tablets,
the company does not need to increase production levels to achieve
optimum level of production since it is already producing a high
level. The raw material cost is 1.9bdt per unit for naproxen and
1.1bdt for rabeprazole. It is expected that the firm will be able
to bring down the raw material cost over the years when it has
bargaining power which it does not have at this moment because it
is a new entrant. The wastage is expected to be 5% which shows how
efficiently the management is expected to run the factory. All
other cost is in acceptable range except for marketing and
promotional cost. This cost is very high because the company will
be launching this tablet this year. It has no brand loyalty and
consumers are not even aware that such a product exists in the
market. Therefore, a huge marketing campaign needs to be carried
out. Not only the consumers need to know about this product, but
the doctors, who would be prescribing the medicine to the patient,
needs to know about this. If the doctors do not prescribe it to the
patient, the product would not be at all successful. The doctors
are more important than the consumers in terms of marketing.
Therefore, marketing needs to be done for the doctors also by
giving those pads and other things. Retailers commission is 16%.
This cost is expected to be brought down over the years once the
product gets widely available.In the overall context, it can be
said that the factory is expected to run very efficiently. Some of
the variable cost seems to be a bit high. However, the company will
be able to bring those costs down over the years. Moreover, the
company is not very far away from achieving optimum level of
production. Therefore, it can be concluded that the company would
be able to record huge amount of profits in the coming years.After
adding major medicinal substance and packaging material cost the
total raw cost is calculated at 10.2 million BDT whereas after
adding the manufacturing and labor cost the total production cost
becomes 13.95 million BDT. There will be a fixed factory overhead
of 1.65 million which is not prone to change with the units sold.
Adding with this, the huge promotional cost of 9.9 million BDT of
introductory first year we get total cost of 30.9 million BDT.While
12.2% mark up, 16.5% value added tax and a retailers commission as
stated before is added, per tablet MRP becomes 14.9 Taka and
maximum retail price for the whole box is estimated to be 298 Taka
per 20s pack. We can eventually get the mark up percentage up when
we finish our 1st year successfully with very less inventory and
are unable to get our products demand at its peak.
Expected Net ProceedsThe following diagram shows the net
proceeds for the first year. It can be seen that 90% of the total
production will be sold. It shows that the demand of the product
will be very high given that the demand analysis was done correctly
and a successful marketing campaign is done. However, 10% of the
production will remain as ending inventory and it is essential for
maintaining a steady flow of inventory so that the company can
adapt to changes in demand in the market and can avoid a short fall
in inventory levels. At the same time, it can be said with
assurance that the factory will be able to operate at its full
capacity and therefore keeping some slack may come in handy. On the
other hand, the markup of this product is 33% which means that
almost 67% of what is sold goes into gross margin. The factory
overhead cost is 3945000 and this acceptable whereas the selling
and admin expenses and VAT and commission seems a bit high. This is
because the company is only at its first year in operation and it
will take some time to produce more efficiently and in a production
level where it can achieve optimum economies of scale. It can be
expected that in the coming years the company will be more
efficient and keep cost to a minimum level and hence increase the
profit levels. After paying a tax level of 27.5% the net income is
1212556. This is only 3.8% of the total revenue and this is a bit
low. None the less, the co. is only at its first year in operation
and a margin like this is acceptable and quite good actually. There
is a clear sign that the co. can keep its cost down in the coming
years and then this net profit to sale percentage will
increase.
Net Proceeds: 1st year
Expected revenue (90% of tot. prod.)40241070
COGS (product cost)12555000
Gross margin27686070
factory over heads3945000
sales and admin cost12750000
vat and commission9038250
EBIT1952820
tax (27.5%)537025.5
Net Income1415794.5
Forecasting the cost and prices for next four yearsIn our second
fiscal year, production will increase 2.5% to 3075000 units. Some
other important costs including a major change in promotional cost
will occur as follows:costing per tablet in 2nd yeartotal cost for
3.075 million tablets
ParticularsBdtBdt
raw material cost
naproxen r/m1.8955827125
rabeprazole r/m1.0953367125
Wastage (5%)0.1495459712.5
packaging material0.25768750
total material cost3.389510422713
conversion cost (medc+pacg)0.51537500
direct labor0.752306250
total product cost4.639514266463
distribution & admin exp.0.952921250
VFOH (machinery+utility etc.)0.852613750
FFOH for 3 mil tabs0.551691250
marketing/promotional cost2.57687500
TOTAL COST9.489529180213
Mark up (12.2%)1.157719---
VAT (16.5%)1.565768---
Retailer comiss. (16%)1.518324668834
MRP per tab13.73131
MRP per 20s pack274.6261
3rd year production increase by another 2.5% for the second
consecutive year to 3150000 units:costing per tablet 3rd
fiscaltotal cost for 3.15 million tablets
particularsbdtBdt
raw material cost
naproxen r/m1.895953500
rabeprazole r/m1.093433500
Wastage (5%)0.149469350
packaging material0.25787500
total material cost3.37910643850
conversion cost (medc+pacg)0.51575000
direct labor0.752362500
total product cost4.62914581350
distribution & admin exp.0.952992500
VFOH (machinery+utility etc.)0.852677500
FFOH for 3 mil tabs0.551732500
marketing/promotional cost2.26930000
TOTAL COST9.17928913850
Mark up (12.2%)1.1198383527490
VAT (16.5%)1.5145354770785
Retailer comiss. (16%)1.468644626216
MRP per tab13.28201
MRP per 20s pack265.6403
In the fourth and fifth year production increases to 3225000,
all other cost remain unchanged, except marketing and promotional
cost, as the company has already taken steps to reduce cost in the
earlier years. And, as the market now gets much more saturated than
before there would be very less difference between years else than
the promotional cost. The changes are as follows:costing per
tablettotal cost for 3.225 million tablets
particularsbdtBdt
raw material cost
naproxen r/m1.896095250
rabeprazole r/m1.093515250
Wastage (5%)0.149480525
packaging material0.25806250
total material cost3.37910897275
conversion cost (medc+pacg)0.51612500
direct labor0.752418750
total product cost4.62914928525
distribution & admin exp.0.953063750
VFOH (machinery+utility etc.)0.852741250
FFOH for 3 mil tabs0.551773750
marketing/promotional cost2.056611250
TOTAL COST9.02929118525
Mark up (12.2%)1.1015383552460
VAT (16.5%)1.4897854804557
Retailer comiss. (16%)1.444644658964
MRP per tab13.06496
MRP per 20s pack261.2993
Net Proceeds: 2ND year
Expected revenue (92% of tot. prod.)38001391
COGS (produc cost)12839816
Gross margin25161574
factory over heads4043625
sales and admin cost10608750
vat and commission8535212
EBIT1973987
Tax (27.5%)542846.5
Net Income1431141
Net Proceeds: 3RD year
Expected revenue (92% of tot. prod.)37654507
COGS (produc cost)13123215
Gross margin24531292
factory over heads4142250
sales and admin cost9922500
vat and commission8457301
EBIT2009241
Tax (27.5%)552541.2
Net Income1456700
Net Proceeds: 4 & 5TH year
Expected revenue (92% of tot. prod.)37921055
COGS (produc cost)13435673
Gross margin24485383
factory over heads4240875
sales and admin cost9675000
vat and commission8517169
EBIT2052339
tax (27.5%)564393.2
Net Income1487946
Revenue & net income over five years in graphs
Promotion
As we have mentioned our promotional strategy it will work in
two dimensions. One way would be promotion to our target market and
another way would be promotion to the doctor and physician group
who serves to this target. Thus a two dimensional promotion would
be able to make a 360 marketing strategy. Following are the media
for our promotion plan.
Online Marketing Facebook: We are going to launch our own
Facebook page named by our brand name NM Pharma. In this page we
are going to keep our consumers and peers updated about our latest
products, our researches and ongoing health issues discussed
worldwide. We believe through this page we will be able to reach
more people worldwide and we will be able to expand the NM Pharma
family and help others to differentiate themselves from others
through forming a better health, hence a better life.
Website: We will also be launching our own website. It will be
introduced as nmpharma.com.bd. This website will be our enhanced
online portal and ongoing calendar of our company. Our
pharmaceutical products, personnel, current researches, future
expeditions will be comprehensively illustrated and displayed in
this website. People will also be able to experience an online tour
of our company premises if they will to. Internship and application
to be a fellow member of a particular research study under our
expert pharmaceutical scientists would also be collected through
this website prior to the personal interviews session.
Apps: We are going to unveil two android apps which would be
initiated by our company, considering the colossal amount of
android users worldwide, which is constantly rising every single
second. We are going to induce two gaming applications named as
PackPain and NM Fighter. Through both of these games people will be
more concerned about arthritis and spondylitis and try to prevent
these diseases before encountering and grow communal and social
awareness against them.
YouTube: We are going to start a YouTube channel under the name
of NM Pharma where the promo videos and observations of the
reactions and hence the effectiveness of Naproxen and Rabeprazole
would be telecast continually with time. The prime purpose of this
program broadcast is to communicate with the consumers in a more
direct and intimate way about our products. These videos would
answer all the questions and queries in a more direct approach and
help the consumers to reach out for our product the most
convincingly.
Advertising to Doctors Literature: Product literature would be
presented to the doctors by our medical representatives. These
would be composed in the latest literature fashion and trend as an
attempt to become a food for thought for the doctors.
Medical journal advertisements: Our product would be advertised
in local and global medical journals and magazines in order to
attain global doctoral exposure.
Doctor gifts: We would be presenting our doctors with some gifts
on occasion. Diaries, metal pens and dinner sets are one of the
gifts our company wills to convey to the doctors as a gratitude to
approve our product to the patients.
PUBLIC RELATIONS Newspaper article: We will be publishing
awareness against arthritis and spondylitis through the
effectiveness of our medicine elements, naproxen and rabeprazol. We
would be disseminating these articles quarterly which mean four
times a year to keep people abreast of the demerits of the diseases
we are trying to grow awareness against.
Old home: We would be providing old homes with free samples.
This would actually be a part of our CSR activities. Old homes are
a beneficial potential target for us as there are many forty above
aged women ambivalent. There will be a doctor who will suggest our
medicine. And since this is a huge favorable potential market site
for us, they will hence create massive word of mouth which is
basically the final expectation or outcome for us from this
particular CSR excursion.
Rapple booths: We would be creating apple shaped booths beside
lakes in all the divisional cities in the country, which would be
named as Rapple Booths. We will give free check-up to the people
visiting the booths and there will be a paid doctor by us to
diagnose them. For their various health problems, we will suggest
them our other products of the brand and we will also diagnose them
on regards of their current bodily pains. If we find anyone
matching our Raproxain criteria, then we will be giving out the
medicine for free.
This will ensure rapid word of mouth spread by the visitors of
the Rapple booth and since most of the morning park goers are above
40 and close to 40, this market capture expedition will increase
more consumers because- The effect of painkillers work very fast
especially on this age group. This specific age group is the focal
gateway to penetrate a family circumference.
Sales Promotion Incentive to trainer: Sports trainers or
physicians will get one time incentives for recommending our
product to their students and peers. It will be monitored
subsequently with time to enhance the rewarding process.
Incentive to shopkeepers and sales personnel: Pharmaceutical
shopkeepers will get one rapple box to sell if he deposits twenty
vacant boxes to our local wholesale outlets. He will also avail
himself to 10 percent commission on the total monthly sales that he
makes. We want to establish our brand as a shopkeeper amicable
company and we want Raproxain to be their apple of the eye.
Sales Meeting: We will organize a half yearly divisional sales
meeting where all the sales personnel will be invited. There we
will discuss and declare the total sales of the last six months and
let them know about the up-gradation Raproxain is attaining when it
is being marketed for the next six months. And the sales target and
expectations are also going to be announced for the next 6 months.
There will be incentives for the divisional best seller and runner
up and the third place as well. This incentive can be monetary,
non-monetary or both, but must be substantially lucrative.
Raproxain
| NMpharma
10
Promotional Budget
promotional forecasting
raproxain 20s pack
Criteriamedicine specialistsorthopedic
surgeonsrheumatologistsgym instructorssports coach
no. of persons approached3502005017038
no. of prescriptions for raproxain/week225
no. of packs suggested per prescription222
monthly pack needs5600320020001417283
annual need of tablets134400076800048000034000068000
total number of tabs required3000000
Packaging
Below are the packagings of two of the competing brands of our
product.
Napro-A by ACME Pharma Sonap by Square Pharmaceuticals
Both the packets have more similarities than differences, and
the subtle dissimilarities of one from another, throughout the
industry, is not enough to position the medicine, in terms of
outlook, uniquely in the minds of the customer as something
different.
The basic functions of packaging are promotion, protection,
identification and description. Driven by the significance of
differentiation, we have come up with a new and totally different
packaging that will surely attract peoples attention and capture
mind share. The idea which inspired and defined our packaging came
from one of the most recognizable expressions around us all: "An
apple a day keeps the doctor away."The tablets will come in an
apple shaped container made ofPolybutylene
succinate(PBS),polycaprolactone(PCL), which are synthetic made
biodegradable plastic materials. This container will look like an
apple (slightly smaller), and will be called RRapple. It will have
the same colour combination as the real one, and can be opened by
rotating the two halves (upper and lower, along the diameter) in
opposite directions to reveal a hollow chamber inside. The lower
half of the sphere inside will house all the tablets in layers, one
on top of the other, in circular strips, with the bottom strip
containing the least number of tablets, and the one along the
diameter inside will contain the most due to the shape of space
available. The literature will be folded and placed inside the
upper half of the sphere. Refer to the figures below (not accurate
samples):
"An Apple A Day Keeps The Doctor Away" will be printed on the
outer surface of the apple.Along with the specifications of
Raproxain
There is no other packaging except cartoons in which the apples
will be shipped from factory to the pharmacies, out of sight of the
public.Each Rapple will consist of 20 tablets. If someone buys the
full amount, then he or she gets to take the apple, and store the
tablets inside it at home. On the other hand, if someone wishes to
buy any amount less than 20, then the retailer will simply cut off
the required number of tablets from the strip inside the Rapple and
sell on per piece basis. In this case, however, the customer will
not get the apple; rather, it will be the retailer who gets to keep
it to accommodate the remaining number of tablets inside the apple
unsold.
Justification Package is easy to manufacture, or subcontract to
suppliers, and cost of production is not high. No need for tertiary
packaging, saving costs. The apple package looks creative and is
interesting, which will grab peoples attention, when displayed on
the shelf at pharmacies. The target market is the top of the
pyramid. These people can afford to buy the entire apple with 20
tablets all at once, and hence has the derived mentality to store
at home in case of emergency such as sudden pain. So, the apple
will sell. Will serve as alternative storage container for various
small items and a toy for children after the tablets are used.
People in our country usually do not consult doctors when they
suffer from minor pain that they know of and buy painkillers
themselves, sometimes with suggestions from the pharmacist. In such
a scenario, the apple will market itself with it differentiation
from all other packaging of competing pain killers. Other
justifications are explained in Planet section of the report.
Place
Placement (or distribution)refers to how the product gets to the
customer; for example, point-of-sale placement or retailing. It
consists of the channel by which a product or service is sold, in
which geographic region or industry, to which segment of the
population etc., and also referring to how the environment in which
the product is sold in can affect sales.
The normal distribution channel of pharmaceutical products in
Bangladesh is given below:
The distribution process of NM Pharma will be:
The medicine manufactured in the factory in Gazipur will be
housed in the central warehouse in the same district. From there,
it will be distributed to the depots in the seven divisional cities
of the country, and subsequently supplied to the local drug
stores.NM Pharma has direct distribution system; we do not use any
wholesaler or middleman in our distribution system. The
distribution system includes three channel members:
1. Distribution Department2. Sales representative3. Drug
storeThe sales representatives collect information about the
requirements of the drug store and inform the distribution
department of NM Pharma. After analyzing the information collected,
the distribution department decides and sends goods to the depot,
and from the depot the goods are sent to the drugstores which are
at the end of the distribution system.The distribution system of NM
Pharma is shown graphically below.
Key Points of Distribution
1. Medicine are stored as per requirement considering
temperature/sunlight, moisture etc.2. Delivery schedules are
developed and prepared in consultation with the sales force.3.
Execution of order (invoicing) is done in time.4. Issue of goods in
line with FIFO5. Packing of the stocks is done meticulously.6.
Physical delivery is arranged as per schedule.7. Collection and
deposition of sales proceeds are made through bank, increasing
transparency.8. Vigilance towards market demand for managing the
right product at the right time.9. Cash and stock balance are
checked on regular basis.10. Restrict entrance to the premise.11.
Sales order is always signed.12. Daily sales performance should be
notified to national sales manager through ERP (Enterprise Resource
Planning) software.13. Controlling office expense.14. Temperature
recording of the warehouse is done regularly.15. Drug license,
trade license and fire license are always in order and up to
date.
Process
Process brings a service dimension to the entire value chain.
Since our selling proposition is our intangible quality of
providing care, it is important that we achieve this through
diverse ways. One of our proposed methods is through the training
of people and employing them to perform primary treatment and then
sale of the pain killer in old age homes, and set up booths in
parks along its walkways, etc. where individuals often face
headaches or various kinds of pain, making it a necessity to have
large supplies of the required drug at hand. This will result in
extensive marketing eventually as people will come to know of this
unique process of providing service. This again highlights NM
Pharmas target of providing care in the form of medicine. This will
bring a promotion dimension as well to the process we are
using.
People
The people who are trained on how to market our product to
physicians, pharmacists etc. are an integral part of providing
comprehensive service. The information that these employees of NM
Pharma impart and their interactions with potential customers
dictate how the service is perceived and valued. Since our
orientation is towards care, our personnel will be specifically
trained to talk about the benefits of Raproxain which may be
required at any time.
Physical Evidence
Even though the care received from consumption of our pain
killer in intangible, the apple shaped package is visible and
tangible. Not only is it visible in stores, but also can also be
brought home. This will serve as evidence in ones surroundings that
he or she is comfortable and relaxed in, increasing the chances of
greater acceptance and satisfaction with our product, because the
guarantee of relief from pain and consequent positive result will
facilitate that. Parents watching their child play with an empty
apple will not be out of sight of Raproxain for long.
Planet
Planet refers to the societal dimension of marketing. It calls
for the production methods used in the manufacturing process to be
eco-friendly and resource-efficient. We will be focusing on the 3
Rs Reduce, Reuse and Recycle.Our package is made of recyclable
material. Alternative use of the apple has already been discussed,
and we have come with a strategy to encourage the stakeholders
customers and retailers - to reduce and reuse.
PharmacyNot everyone who will buy Raproxain will be buying the
apple if they choose to buy any less than 20 tablets. So the
pharmacy or licensed dealer will experience a growing number of
unsold apples that they cannot dispose profitably.So, NM Pharma
will give one free apple with 20 tablets for every 10 empty apples
that the vendor returns to us. This will be a win-win situation,
because the pharmacy will be able to increase its profits by large,
as the tablets will be sold at market price that was actually free
of cost for the retailer. On the other hand, we will be able to
collect the unsold apples for reuse, thereby lowering material cost
and reducing the demand for non-biodegradable plastic
containers.
CustomerOur customers will get 10% discount on the purchase of
one new 20 tablet apple pack for every empty apple container that
he or she will return to the retailer. So, for example, if a person
returns three empty apples to buy one new apple, the price will be
30% lower. The implication of this strategy is massive, because
this is a win-win-win scenario: Customer gets discount Retailer
collects empty apple packages which he or she will return to the
company to get free tablets, the revenue from sale of which will be
entirely profit. We get back empty packages for reuse.
Conclusion
We have strategized 360 degree marketing to ensure sales, and
hence make a successful product launch with strong forecasts of
increasing our market share. Considering the humane industry we are
operating in, we have the scope of expanding our business further,
and at the same time, contribute towards the betterment of the
society.NM Pharmaceuticals is here because it cares.
THE END