Eskayef Bangladesh Limited R I I NTRODUCTION NTRODUCTION RATUL18- RATUL18- NSU NSU We are preparing a Marketing Plan regarding international operations of the imminent pharmaceutical company of Bangladesh – Eskayef Bangladesh Ltd. The report is based on marketing challenges and strategies that Eskayef Bangladesh Ltd. has to adopt in order to meet the requirements of the competitive market to successfully operate their business in the foreign lands. Information for this report is collected maostly from secondary sources. However, information is also collected from primary sources as well. Eskayef Bangladesh Limited, also known as SK+F is a major pharmaceutical company based in Bangladesh. It is part of the Transcom Group of Companies. Eskayef Bangladesh Limited is one of the fastest growing pharmaceutical companies in Bangladesh and is engaged in the manufacture and marketing of a wide range of therapeutic drugs, bulk pellets and animal health and nutrition products. Page 1
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IINTRODUCTIONNTRODUCTIONRATUL1RATUL18-NSU8-NSU
We are preparing a Marketing Plan regarding international operations of the imminent
pharmaceutical company of Bangladesh – Eskayef Bangladesh Ltd. The report is based on
marketing challenges and strategies that Eskayef Bangladesh Ltd. has to adopt in order to
meet the requirements of the competitive market to successfully operate their business in the
foreign lands.
Information for this report is collected maostly from secondary sources. However,
information is also collected from primary sources as well.
Eskayef Bangladesh Limited, also known as SK+F is a major pharmaceutical company
based in Bangladesh. It is part of the Transcom Group of Companies. Eskayef Bangladesh
Limited is one of the fastest growing pharmaceutical companies in Bangladesh and is
engaged in the manufacture and marketing of a wide range of therapeutic drugs, bulk pellets
sets, disposable syringes, and corrugated cartons.
Some of these products are also being exported. Printing
and packaging industries and even the advertising agencies
consider pharmaceutical industry as their major clients
and a key driving force for their growth.
The sector consistently creates job opportunities for highly
qualified people. Many established entrepreneurs of today
started with pharmaceutical companies in the country.
Pharmaceutical companies are either directly or indirectly contributing largely towards Page 5
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raising the standard of healthcare through enabling local healthcare personnel to gain access
to newer products and also to latest drug information.
Following the Drug (Control) Ordinance of 1982, some of the local pharmaceutical
companies improved range and quality of their products considerably. The national
companies account for more than 65% of the pharmaceutical business in Bangladesh.
However, among the top 20 companies of Bangladesh 6 are multinationals. Almost all the
life saving imported products and new innovative molecules are channeled into and
marketed in Bangladesh through these companies. Multinational and large national
companies generally follow current good manufacturing practices including rigorous quality
control of their products.
The Drug Act of 1940 and its rules formed the basis of the country's drug legislation. Unani,
ayurvedic, homeopathic and biochemical medicines were exempted from control under the
legislation. The pharmaceutical industry was dominated by the foreign companies at that
time. Even in the allopathic market there were extemporaneous preparations dispensed from
retail pharmacies.
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EESKAYEFSKAYEF B BANGLADESHANGLADESH L L IMITEDIMITED
Eskayef Bangladesh Limited is one of the fastest growing pharmaceutical companies in
Bangladesh and is engaged in the manufacture and marketing of a wide range of therapeutic
drugs, bulk pellets and animal health and nutrition products.
The company's rapid rise since its inception has propelled it to a top ranking position among
the pharmaceutical companies operating in the country. The company is a successor of
Smith Kline & French in Bangladesh, acquired by Transcom in 1990. Eskayef started its
operation with pharmaceutical finished products for the home market. Over time the
company has diversified its operations into bulk products as well as animal health and
nutrition products.
Vision
Eskayef envisions a leading role for itself as a catalyst for improvement of the healthcare
environment.
Mission
The company’s mission is to maintain people’s health and combat disease to enhance the
quality of human life so that people may live longer, healthier and more meaningful lives.
Corporate History
Eskayef Bangladesh Limited, a successor of SmithKline & French in Bangladesh, is one of
the fastest growing pharmaceutical companies in Bangladesh and is engaged in the
manufacture and marketing of a wide range of therapeutic drugs, bulk pellets and animal
health and nutrition products. With annual sales surpassing Taka 2 billions, the company's
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rapid rise since its inception has propelled it to a top ranking position among the
pharmaceutical companies operating in the country today.
Business Information
Eskayef Bangladesh Ltd. started its operation with pharmaceutical finished products for the
home market. Over time it has diversified its operations into bulk products as well as animal
health and nutrition products and exports it to foreign markets.
International Business
Eskayef has entered into the international market with the export of Multivitamin and
Mineral tablets to North Korea in 1998. As a part of massive expansion plan in the
international market, Eskayef has already established its presence in Nepal, Sri Lanka,
Vietnam, Hong Kong, Macau, Somalia, and UAE and is under registration process in 6 more
countries.
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Eskayef at a Glance
Eskayef Bangladesh Limited is amongst the top five pharmaceutical companies in
Bangladesh.
It was incorporated in 1980 as a subsidiary of SmithKline & French, USA and was
acquired by Transcom in 1990 in the wake of merger between SmithKline and
French, USA and Beecham, UK.
The company manufactures high quality pharmaceutical health care products. Its
Quality Assurance practices of WHO recommended standard was certified by both
UNICEF and SB’s international Auditors.
Eskayef Bangladesh Limited currently ahs an annual turnover of USD 39 million.
Approximately 1250 employees are working in this company.
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Production & Products
Eskayef Bangladesh Limited is engaged in the manufacture and marketing of a wide range
of - therapeutic drugs, bulk pellets and animal health and nutrition products.
The manufacturing facilities of Eskayef are fully compiled with current Good
Manufacturing Practice (cGMP). Eskayef offers sophisticated formulation know-how and
facilities for:
Solid doses: Tablets, Coated Tablets (aqueous, organic, and enteric coating),
Capsules and Powder for Suspension/Syrup.
Liquids: Syrups, Suspensions and Solutions.
Semisolids: Gel, Ointment, Cream etc.
Powder for Oral Liquids in sachets.
Bulk Pellets.
Animal Health & Nutrition products.
Yearly production capacity of formulation unit – Normal Hour (8 hour shift)
Tablets 533.7 million tablets
Coated Tablets 322 .0 million tablets
Encapsulation 230.0 million capsules
Liquid Syrup 3.80 million bottles
Dry Suspension 5.00 million bottles
Semi Solid 2,00 million tubes
Powder in Sachets 12.00 million sachets
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Quality Systems
Eskayef management believes in effectiveness of a quality system based on the principle of
continuous improvement, progress and prevention as per WHO recommended guidelines.
The procedure assures consistent high quality, improved safety of the work environment.
Concepts of quality represent a commitment to quality in each and every activity of our
process. We regard the permanent orientation towards a high quality of services as the
prerequisite for assuring an enduring partnership with our customer. Quality means fulfilling
a guaranteed standard of performance, which conform to specifications. It also means
maintaining a high standard in production, delivery services and in after-sales service.
Included in out concept is constant innovation in all areas of work, health and safety
demands in the handling of all materials, installations as well as the welfare of our
employees. Our services are at satisfying the quality demands of our customers. We have
built the Quality Assurance System to satisfy these high standard demands. The system
stipulates the procedure and methods basis of the specifications of international standard.
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10 Basic Facts of GMP Practice
Must have written procedureHave to follow the written procedureHave to document (record) the workHave to validate the workMust design & build proper facilities & equipmentMaintain facilities & equipment in proper stateMust have education, training and experienceHave to maintain a clean environmentMust control the qualityHave to periodically audit for compliance
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Human Resources
The workforce of Eskayef Consists of more than 1250 qualified, trained and skilled
personnel who are drawn form different disciplines that have a bearing on the
pharmaceutical industry. The teams of dedicated professionals include panoply of
pharmacists, medical graduates, microbiologists, biochemists, chemists, engineers and
business management experts. Their competencies, experience and strict adherence to the
work ethics go into the manufacturing and marketing of each of the company’s products.
Eskayef Bangladesh Limited is committed to sustainable development. The objective is to
be a leading corporate citizen, both technologically and economically. The belief is –
achievement of goal is closely linked to the organizations ability to contribute to the benefit
of the people. This policy on corporate citizenship outlines the organizations pledge, and it
is both a strategic business initiative and the right thing to do.
The Eskayef core values are based on the fundamental rights of every individual,
such as the protection of privacy, freedom of opinion, freedom of association, non-
discrimination and the to be heard.
Eskayef believes associates are the key to its success bases its human resources
policies and practices on fairness, openness and mutual respect.
Eskayef wants to be the leader in health, safety and environmental protection of
Eskayef employees, its consumers, its customers and all others affected by its
business activities.
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Eskayef cares about the expectations and concern of its share holders, employees,
customers, and public at large in it social behavior.
Marketing & Sales
Eskayef believes that professional marketing is the hallmark of their commitment to
customers. Eskayef accomplishes marketing objectives through efficient and qualified
cadres of Product Executives, Sales Executives and Market Research Executives.
Development programs are being organized to provide the medical professionals with the
required support. With large number of skilled field forces in its sales team, Eskayef has
reached distant corners of Bangladesh and is providing continuous service to the medical
professionals, chemists and druggists as well as the public general by clinical meetings
scientific seminars, awareness development programs and scientific information.
Sales Growth (Sales in Million)
Year Sales (TK) Sales (USD) Growth
1998 527.59 10.99 37%
1999 466.50 9.72 -12%
2000 639.00 11.85 37%
2001 796.00 14.21 24%
2002 1000.85 17.26 26%
2003 1130.00 18.83 13%
2004 1380.00 23.79 22%
2005 1720.00 25.67 25%
2006 2020.00 28.85 17.44%
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MMARKETINGARKETING P PLANLAN
A marketing plan is a written document that details the necessary actions to achieve one or
more marketing objectives. It can be for a product or service, a brand, or a product line. It
can cover one year (referred to as an annual marketing plan), or cover up to 5 years.
A marketing plan may be part of an overall business plan. Solid marketing strategy is the
foundation of a well-written marketing plan. While a marketing plan contains a list of
actions, a marketing plan without a sound strategic foundation is of little use.
Eskayef Bangladesh Limited also has mission and vision to achieve success in the long run
in the international market. That’s why they started exporting their products in the foreign
market in 1998 and still now they are doing their job very successfully. They actually follow
the Business-to-Business communication strategy. Though they are somewhat introvert as it
is still the early stages of their abroad operation but they have established their foothold to
different countries all over the world. Thus while planning for the product exporting abroad
they thought about different segment to achieve their target sale. Marketing plan for Eskayef
Bangladesh Limited in the international market is comprehended in the following:
Marketing Objectives
The objective is the starting point of the marketing plan. Once environmental analyses (such
as SWOT, Five Forces Analysis, and PEST) and marketing audit have been conducted, their
results inform objectives. Objectives of Eskayef Bangladesh Limited seek to answer the
question 'Where do we want to go?' The purposes of objectives include:
To enable the company to control its marketing plan.
To help to motivate individuals and teams to reach a common goal.
To provide an agreed, consistent focus for all functions of an organization.
All objectives of Eskayef follow the SMART rule i.e. Specific, Measurable, Achievable,
Realistic, and Timed.
Specific - Precise about what going to achieved
Measurable - Quantify the objectives
Achievable – Not attempting “too much”
Realistic - Having the resources to make the objective happen (men, money,
machines, materials, minutes)
Timed - State the time to achieve the objective
Specific and current objectives of Eskayef Bangladesh Limited for international market:
1. Profitability Objectives - To achieve a 20% return on capital by December 2007.
2. Market Share Objectives - To gain 25% of the foreign markets currently exporting for vitamin and mineral drugs by September 2008.
3. Promotional Objectives - To increase awareness of the dangers of AIDS in African countries from 12% to 25% by June 2008.
To increase trail of pellets from 2% to 5% of the target group by January 2008.
4. Objectives for Survival - To survive the current double-dip recession in Bangladesh and some host countries.
5. Objectives for Growth - To enter the market and increase the size of Latin American operation in 2008.
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6. Objectives for Branding - To make “Vitrum” brand of bottled vitamins the preferred brand of 45-55 year old males and females in the operating countries by June 2008.
Target Market
Currently Eskayef is following the Business-to-Business communication strategy. The target
market will grow alongside the time and reputation in the international market. The target
market is influenced by demographic factors like income and country status but not specific
by Eskayef. The target market consists of businesses based on two specific factors:
i. Any country preferring drugs from Bangladesh due to high quality and
competitive price.
ii. Any company preferring Eskayef’s products.
They are targeting different markets in different countries to sell their drugs and pellets all
over the world. They are currently exporting in some specific international markets like
Hong Kong, Nepal, Bhutan, Vietnam, Macao, Sri Lanka, UAE, Yemen, and Somalia. There
are some other countries where Eskayef is under registration pipeline.
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So, Eskayef is involved in the international market with their products and also seeking
opportunities to enter into the new market.
Company Registered Under Registration Pipeline
Hong Kong Philippines
Nepal Myanmar
Bhutan Pakistan
Vietnam Czech Republic
Macao Tunisia
Sri Lanka Morocco
UAE Algeria
Yemen Ghana
Somalia Uganda
Belize Page
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Guatemala
Costa Rica
Expected Sales
Eskayef has different expectations in terms of sales for their different products being
exported:
Pharmaceuticals Finished Goods: More than 350 million taka.
Bulk Pellets: More than 80 million taka.
Intermediate Products: More than 68 million taka.
(All data provided is an approximate calculation)
Profit Expectations
Eskayef’s expected profit is pretty larger in case of exporting their products. Their
expectation is to achieve a 20% return on capital.
Market Penetration & Coverage
Market penetration is one of the four growth strategies as defined by Ansoff. Market
penetration occurs when a company enters/penetrates a market with current products. The
best way to achieve this is by gaining competitors' customers that is part of their market
share. Other ways include attracting non-users of your product or convincing current clients
to use more of your product/service like by advertising etc.