Term Paper of Beximco Pharmaceuticals Ltd.

Chapter One

Introduction

Beximco Pharmaceuticals Ltd. (Beximco Pharmacy) is a leadingmanufacturer of medicines and active pharmaceutical ingredients(APIs) based in Bangladesh. Incorporated in the late 70s, BeximcoPharmacy began as a distributor, importing products from globalMNCs like Bayer, Germany and Upjohn, USA and selling them in thelocal market, which were later manufactured and distributed underlicensing arrangement. Over the years the company has grown fromstrength to strength and today it has become a leading exporter ofmedicines in the country winning National Export (Gold) Trophy arecord four times. Benchmarked to global standards, Company’smanufacturing facilities have been accredited by the major globalregulatory authorities, and it has so far expanded its geographicfootprint across all the continents.

Beximco Pharmacy currently has a portfolio of more than 500products encompassing all major therapeutic categories, and it hassuccessfully differentiated itself by offering technology drivenspecialized products. With a dedicated workforce of around 3,000people, the simple principle on which it was founded remains thesame: producing high-quality generic drugs and making themaffordable to our people.

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© 2014Bexcimco. All right reserved Version: 1.1Date: 11/05/22

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

The two definition of Marketing Management are:

Definition of Marketing Management (Theory 2000 – 2011)

Marketingmanagement is the art and science of choosing targetmarkets and getting, keeping, and growing customers throughcreating, delivering, and communicating superior customervalue.

Definition of Marketing Management (Theory 2012 – 2016 ±)

Marketing management depends on the size of the business and theindustry in which the business operates. Effective marketingmanagement will use a company's resources to increase its customerbase, improve customer opinions of the company's products andservices, and increase the company's perceived value .

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© 2015 Bexcimco. All right reserved

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

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

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

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

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

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

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

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

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

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

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

BeximcoPharmacy has created the art and science to choosing itstarget markets and getting, keeping, and growing its customersthrough creating, delivering, and communicating superior customervalue and effectively managing its resources to increase customerbase and increase customer opinions/satisfaction, product &services and company’s perceived value.

BeximcoPharma’s core values define who they are; guide it to takedecisions andhelp realize its individual and corporateaspirations, commitment to quality. It adopts industry bestpractices in all its operations to ensure highestquality standardsof our products.BeximcoPharmacy committed to satisfying the needsof its customers, both internal and external.It gives highpriority on building capabilities of its employees and empowersthem to realize their full potential.

Mission:

BeximcoPharmacy committed to enhancing human health and well-beingby providing contemporary and affordable medicines, manufacturedin full compliance with global quality standards. They continuallystrive to improve their core capabilities to address the unmetmedical needs of the patients and to deliver outstanding resultsfor our shareholders.

Vision:Beximco’s vision will be one of the most trusted, admired andsuccessful pharmaceutical companies in the region with a focus on

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strengthening research and development capabilities, creatingpartnerships and building presence across the globe.

Business PlanThey continually strive to improve their core capabilities toaddress the unmet medical needs of the patients and to deliveroutstanding results for their shareholders.

Corporate StrategyTheir main strategy of Beximcopharmacy is to ensure highestquality standards of their products. It encourages transparency ineverything it does and strictly adheres to the highest ethicalstandards. They are accountable for their own actions andresponsible for sustaining corporate reputation.

BeximcoPharma actively taking part in initiatives that benefitour society and contribute to the welfare of our people. It takesgreat care in managing its operations with high concern for safetyand environment.

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CHAPTER TWO

SWOT ANALYSIS FOR BEXIMCO PHARMA

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Strength:1. Patent of Beximco pharmacy.2. Beximco pharmacy is successful to establish its brand strongly3. Beximco pharmacy have a very good reputation among customers with its superior quality

Weakness:1. Managing people/staff effectively is a key challengefor Beximcopharmacy2. High cost structure

Opportunities

1. There is scope to more product extension based on R&D2. Arrival of new technologies for the manufacturing process3. Removal of international

Threats

1. Emergence of new competitors in the market2. Increased trade barriers inits global footprints

PESTEL ANALYSIS OF BEXIMCO PHARMA

Supplier Power

Supplier concentration is high for BeximcoPharma

Switching cost is

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Political 1. Political instabilityof Bangladesh2. Bangladesh GovernmentEnvironmental Regulations3. Labor Law of Bangladesh4. TAX policy of

Economical

1. Economic growth of Bangladesh2. Inflation rate of Bangladesh3. Interest rates

Social/Socio-Cultural 1. Health Consciousness of people2. Population growth rate of Bangladesh3. Career attitudes

Technological 1. R&D activity of Beximco2. Automation in Manufacturing3. Fast change in technology

Ecological/Environmental

Legal 1. Labor Law 2006 & 2013

not so high for BeximcoPharma

Threat of newentrants

Threat of new entrants is moderate because of

Different complicated compliances from Bangladesh Government

Access to inputs

Economies of scale is veryhigh

Capital Requirements is very high for new entrants

RIVALRY

Threat ofsubstitutes

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

Price performance is low in the Pharma industry

Buyer Power

Buyer power is moderate in the pharmaceutical industry

Bargaining leverage is low in this industry

Degree of Rivalry

Fixed cost is high in this pharmaceutical industry because of massmanufacturing unit

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Ecological/Environmental

Legal 1. Labor Law 2006 & 2013

Buyer volume is very high in the pharmaceutical industry

Brand Identity ofBeximco Pharma

Industry growthis high in recent times

Switching cost is very high for the players

Michael Porter’s Five Forces for Beximco Pharma

CHAPTER THREE

Marketing Strategy

To identify the Marketing Strategies of BeximcoPharmacylet’s usethe below marketing concepts:

We can find the strategies of firms by the roles they play in thetarget market:

Leader Challenger Follower Nicher

Company focused Competition focused

Pushes theboundaries

Leader Challenger: BeximcoPharma

Stays withinboundaries

Niche Follower

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Where Square Pharma is leading the industry in terms of marketshare there is Beximco Pharma whois lying in the Market Challengerposition in terms of market share.

Strategic Groups for BeximcoPharma

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Why Beximco Pharma Falls under Group D?

Beximco Pharma uses a broad line in its manufacturing process withmedium cost and low service since it is mostlyfocused on the quality of

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

COMPANY ORIENTATIONS TOWARD THE MARKETPLACE FOR BEXIMCO PHARMA

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Why Beximco Pharma Falls under Group D?

Beximco Pharma uses a broad line in its manufacturing process withmedium cost and low service since it is mostlyfocused on the quality of

From the mission, vision, business plan and corporate strategy ofBeximcopharmacy we can easily say the Beximcopharmacy focuses onProduct concept since Beximcopharmacy focuses on offering the mostquality.

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

2. Offerings and Brands: Beximcopharmacy offer differencedproducts to its customers

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

4. Marketing Channels: For communication channels and sometimesdirect selling concept. Distribution channels display, sell,or deliver the physical products.

5. Supply Chain:Beximcopharmacy has a longer channel stretchingfrom raw materials to finished goods. It represents a valuedelivery system.

6. Competition: Beximcopharmacy should consider Square pharmacy,Acme Phamra etc. as the rivals and take marketing strategiesappropriately to be in the competition with them.

7. Marketing Planning: This process consists of analyzingmarketing opportunities, selecting target markets, designingmarketing strategies,

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1) Segment Marketing

Beximcopharmacy use segment marketing concept. A market segmentconsists of a group of customers who share a similar set of needsand wants. The Beximcopharmacy identifies the segments and decideswhich one(s) to target.

Market segments can be defined in many different ways as follows:

One way to carve up a market is to identify preferencesegments

Homogeneous preferences exist when consumers want the samethings

Diffused preferences exist when consumers want very differentthings

SEGMENTING CONSUMER MARKETS FOR BEXIMCO PHARMA

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Geographic

Demographic

Psychographic

Behavioral

Beximco Pharma segment its market based on the geographical need found from its R&D wing.

Beximco Pharma offers different types of products based on demographic segmentation

Beximco Pharma very seldom use psychographic segmentation

Beximco Pharma seldom use behavioral segmentation since its operating in pharmaceutical industry

Demographic Segmentation for Beximcopharmacy

Beximcopharmacy is using Demographic segmentation base on the needof the different type of consumers.In demographic segmentation the market is divided into groups onthe basis of variables such as age, family size, family lifecycle, gender, income, occupation, education, religion, race,generation, nationality, and social class. Consumer needs, wants,usage rates, and product and brand preferences are oftenassociated with demographic variables. Demographic variables areeasy to measure.

Marketing Mix and (7P + 4C):This business tool will help Beximco Pharmacy marketers todetermine what product related offerings to be made, at whatprice, which the targeted customers will be, how to promote theproduct to the masses, which point of distribution to be selectedand so on. There are two ways of marketing mix, a combination of which aBeximco Pharmacy marketer can use when dealing with the targetsegment:

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Price decisionIn Bexim copharm a Som e exam ples of pricing decisions to be m ade include:1. Price flexibility2. Price discrim ination3. Seasonal pricing

Place (D istribution decisionsDistribution is about getting the products to the custom er:1. Distribution channels2. M arket coverage (inclusive, selective, or 3. exclusive distribution)Specific channel m em bers

4. Inventory m anagem ent.5. W arehousing6. Distribution centers,Transportation8. O rder processing.

Prom otion D ecisions:prom otion represents the various aspects of m arketing com m unication, that is, the com m unication of inform ation about the product with the goal of generating a positive custom er response.decision include:1. Prom otional strategy,Advertising2. Personal selling and sakes force3. Sales prom otion

PeopleIn Bexim copharm a they are focuson the custom er in such way:1. BPL’s success is based on attracting, developing and retaining talented and m otivated em ployees.2. BPL has highly educated white-collar em ployees com prising of approxim ately 76% of total BPL’s workforce.

Product D ecisionsThe term “product” refers to tangible, physical products as well as services. Here are som e exam ples of the product decisions to be m ade:1. Brand nam e2. Functionality3. Styling4. Quality5. Safety6. Packaging7. Repairs and Support

PhysicialEvidence1. Bexim co pharm aceutical provide sam ples of new m edicine or m edicines that they want to increase sales to doctors from tim e to tim e.2. Bexim co Pharm aceuticals Lim ited has sustained a good im age from the tim e it started its operation, but to reach the top position in term s of overall im age, it has to em phasis m ore on the quality, availability and presentation aspects of

ProcessIn Bexim copharm a Som e exam ples of process decisions to be m ade include:1. Bexim co pharm a ranging from the color to the design.2. Bexim co pharm a frequently arrange sem inars and sym posia covering a wide range of m edical topics attended by m em bers of health care com m unity.

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Marketing Mix and (4C):

CLIEN TSBexim co Pharm aceuticals should undergo a m arket research through which they can understand what kind of product custom ers are looking for and what im pression do they have in m ind when they think of.

CO STS: All costs should be considered while designing the product which m eans the costs incurred to m ake the Products and the costs incurred by the custom ers to gain the product. In this way they can do appropriate pricing and m ake the custom ers feel that Bexim co Pharm aceuticals understands what a custom er goes through to purchase a watch in term s of costing.

Com m unicationsAll sorts of com m unications done between Bexim co Pharm aceuticals and its clients should be clear and engaging so that consum ers do not feel confused about the products and custom ers feel interested to buy the product

ConvenienceBexim co Pharm aceuticals needs to understand the appropriate locations where the distributions can be done easily from the perspective of the custom ers so that the products gain a wide reach.

Target M arketing

CHAPTER FOUR

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The Value Chain:

The value chain is a tool for identifying ways to create morecustomer value because every firm is a synthesis of primary andsupport activities performed to design, produce, market, deliver, andsupport its product.

Beximco Pharmaceuticals Ltd (BPL) is a leading manufacturer ofpharmaceutical formulations and Active Pharmaceutical Ingredients(APIs) in Bangladesh. The company is one of the largest exportersof pharmaceuticals in the country and its state-Of-the-artmanufacturing facilities are certified by global regulatory bodiesof Australia, European Union, Gulf nations, Brazil, among others.

The company is consistently building upon its portfolio andcurrently producing more than 500 products in different dosageforms covering broader therapeutic categories. . Beximco Pharmaceuticals Ltd (BPL) should focus to create value forits customers.

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Figure: Porter’s Generic Value Chain

A) Primary activities:

1) Inbound logistics (material procurement): BeximcoPharmaceuticals Ltd (BPL) needs to find ways how cost effectivelyprocures its raw materials for the products. Quality raw materialswill ensure quality finished products.

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

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

5) Servicing (service after the sale): After sales service shouldmake the customers at ease so they don’t fall into hesitation ordifficulty after buying the product. Beximco Pharmaceuticals Ltd(BPL) should have the image in the customers’ minds that afterbuying the product they don’t have to fall in a problem in case anafter sale is required.

B) Support activities:

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1) Procurement: A well trained procurement is required to ensurequality supply chain management. The inputs needed to producewatches are sophisticated in nature and hence care should be takenso that procurement ensures quality inputs.

2) Technology development: As said earlier global MNCs like Bayer,Germany and Upjohn, USA is good an advanced technology for whichtop quality production is not a problem. Beximco Pharma is one ofthe largest exporters of medicines in Bangladesh, winning NationalExport (Gold) Trophy a record four times. .

3) Human resource management (HRM): planning is the core area ofall the functions of management. It is the foundation upon whichthe other three areas should be built. Planning requiresmanagement to evaluate where human resource of the company isCurrently, and where it would like to be in the future. From therean appropriate course of action to attain the company's goals andobjectives is determined and implemented.

4) Firm infrastructure: This refers to an organization's structureand its management, planning, accounting, finance and qualitycontrol mechanisms. Beximco Pharmaceuticals Ltd (BPL) shouldensure that they have a proper management who can Manage properly the whole operations, have an expert team lookingafter finance and accounts so that no fraud takes place and properbudgeting can be done and maintain strict Total Quality Management(TQM) so that the final products are strictly quality controlled.

TOTAL QUALITY MANAGEMENT

Quality Control DepartmentQuality control department makes all types of chemical assay andchemical analysis find the result in terms of potency, presence,

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identity, stability etc. The persons working here are responsiblefor the quality of the products. This is actually the analyticalpart of the plant.

Working Division of Quality Control Department Analytical section Microbiology section Packaging section

Analytical Section:Analytical section of Quality Control Department performsanalytical tests. Analytical tests are mainly of two types asfollows:

Quantitative Qualitative

Activities of Quality Control Department:# Sampling(A quality control officer does it when Raw materials arrive inWarehouse)# Analysis(The analyst analyses the sample according to the specification)# Checking(After the tests, the results are checked)# Final approval(The Q.C manager verifies the result)# Collection(A Q.A officer collects the results of the sample that wasassigned previously) QUALITY ASSURANCE

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Quality Assurance is an organized department in BeximcoPharmaceuticals Ltd. which deals with ensuring the quality of theproduct up to the end user. In1980s the approach for assuringproduct quality extended the responsibilities of quality controlfar beyond the area of testing and compliance check, and theconcept of Quality Assurance was developed:

QA=Product design + GMP + QC + Quality goal activitiesThe activities of Quality Assurance are as follows:

Approval of source Checking of Dispensing operation In process checking of all production area Product sampling, release

CHAPTER FIVE

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Brand & Branding

Brand Story

"We are happy with the progress achieved in the first half of 2010and our achievement during the period reinforces our focus ondifferent strategic priorities which would enable us to deliverbroader range of medicines for our patients and greater value forthe shareholders" - as the Managing Director of the company wasspeaking. The Company was awarded Super brands for the year 2010-11 recently. The company delivered strong performance during thefirst half of the year 2010 with an impressive 28% growth over thecorresponding period of 2009. This performance was largely drivenby strong growth of key brands, as well as excellent response with28 new products launched during the period. The company developedand registered over 50 generic formulations for launching in thecurrent year which will significantly strengthen its productportfolio.

Brand Leadership

As survey showed that 27 of BPL’s products are found to be brandleaders out of 47 products surveyed while 10 stand at second place

Box Analysis of Brand Elements (6 categories)

Brand elements are devices that identify and differentiate thebrand. Multiple brand elements application may strong the brandequity. The outcome of this activity can be judged by whatconsumers would think or feel about the product if the brandelement were all they knew.

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Box Analysis of Brand Elements (6 categories)

BrandBuilding

Memorable Bexcimco

A necessary condition for building brandequity is achieving a high level ofbrand awareness. How easily do consumersrecall and recognize the brand element,and when—at both purchase andconsumption? Beximco is short andmemorable brand name.

Meaningful --

Choosing brand elements to buildawareness, brand elements can also bechosen whose inherent meaning enhancethe formation of brand associations.Brand elements may take on all kinds ofmeaning, varying in descriptive, as wellas persuasive.

Likable Bexcimco

Independent of the product or service,how much would consumers like the brandelements. Beximco pharma’s medicines areone of the most likable products amongthe customer.

Defensive

Transferable

-- The forth general criterion concerns thetransferability of the brand element- inthe both a product category and

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geographic sense.

Adaptable Bexcimco

The more adoptable and flexible thebrand element, the easier it is toupdate it. For example, logos andcharacters can be given a new looking ora new design to make them appear moremodern and relevant. As pharmaceuticalscompany Beximco has a strong R&Ddepartment so they are frequentlydeveloping their product.

Protectable

Bexcimco

‘Beximco’, the brand element isprotectable-both in a legal andcompetitive sense. In term of legalconsiderations, it is importantto1.choose brand elements that can belegally protected on an internationalbasis, 2.formally register them with theappropriate legal bodies, and 3.Vigorously defendtrademarks from unauthorized competitiveinfringement

Brand dynamic Pyramid:

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The firm spent 30 years tracking brand-health studies fromthousands of organizations. It then used this research to createits original model. The pyramid, as shown in figure, illustratesthe five key stages that customers go through with a brand,starting with basic awareness and finishing with complete loyalty.

The "Brand Pyramid" is a useful tool that can help you think aboutwhere your customers are on this journey to loyalty. In this termpaper, we'll explore how Beximco can use it to increase people'sloyalty to your brand, product, or organization

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Level 1: Presence At this level, customers are aware of yourbrand, but little else. They may have tried your products andservices before, but they have no emotional attachment tothem. We think Beximco successfully pass this stage.

Level 2: Relevance At this level, customers start to think aboutwhether the brand meets their wants and needs. It's here thatthey begin comparing the cost of your products with respectto the value they provide. Customers begin asking questionslike: Does this brand fit my needs? Is it worth it? Being acustomer of Beximco pharmacy we got positive answer from theabove questions.

Level 3: Performance Here, customers begin comparing the brandwith competing brands, to see if it delivers on itspotential. They're also starting to associate the brand witha specific identity, and they're beginning to recognize itand associate with it. By now, the brand is on the customer's"short list" of brands to choose from.

Level 4: Advantage At these level, customers has determined thatthere is a distinct advantage to using the brand, comparedwith others. They're also beginning to associate the brandwith their emotions and with their sense of self. Becausethey are still looking for the X factor which give them thecompetitive advantage than their competitor.

Level 5: Bonding here, customers have established a bond with thebrand. They've determined that cost, advantage, andperformance are all at levels that they like. This, in turn,encourages them to exclude other brands in favor of this one.

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CHAPTER SIX

The Five M’s of Advertising

Message

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Celebrateevery

minutes ofbeing aliveby Providing

hope &ensuring abetter

Mission Money Measurement

Media

The five M’s of advertising provide a framework by which you cancreate an advertising platform.First, the firm must decide what the purpose of the advertisementswill be. This is called the mission. Monetary constraints usuallydetermine how large any project can be. Since measuring changes incustomer opinion can be time consuming and costly.

MISSION First of the entire marketing manager must be clear on thecompany’s purpose for advertising. “Increase in sales figure” willbe a very broad and to a certain context a vague objective.

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Through creating strong emotional attachment building a strong bonding

Initially ApxBDT 25,00,000

Telavision,magazines,billboards, internet& social media

Customer fromall around the

world

Beximco's 5 M

According to Mr. Philip Kotler, a renowned authority in thisfield, there can be three possible objectives behind.

MONEY After the objective has been decided upon; the next step isto decide upon the budget. There are several methods for decidingon the advertising budget. The most common among them is thepercentage of sales method. But then like each individual eachcompany is also different.

MessageAdvertising is a creative process. There are slogans, themes andgimmicks that try to lure the customer in. The message of anadvertisement is this creative aspect.

MediaThis aspect of the program refers to the media that will be usedto communicate the message. This can include television, radio,mail, telephone and in person contact. Choosing the right mediacan make or break an advertising program.

MeasurementFinally, Beximco must measure the effects of the program on theirintended audience. It is often very difficult to measure how muchthe advertisements actually impacted customer interest and howmuch other external factors played a part.

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Mass Communication

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

The main promotion activities are carried out by the medicalrepresentatives & they are covering Hospitals & Clinics, asbecause a new product will be launched in the market, themanagement can think of a launching program or an introductoryprogram. All leading gastroenterologists, Surgeons, Generalpractice doctors who are practicing in Hospitals, clinics in Dhakawill be invited in that campaign to make the product familiar tothem. In this way the message of their products spread among thedoctors. Since, it is not practical or difficult to go fornationwide campaign for a single product at once, so they focus onthe doctors based in Dhaka first but they will be ready to usemechanisms procedures to ensure that the message spreads to otherdoctors through their colleagues to all over Bangladesh. Alldoctors will be provided with initial samples & other promotionalitems.

beximco pharma increase their Selling, Marketing and DistributionExpenses(budget) from BDT993,331(2013) to BDT1,069,778(2014)

B. Event & Experiences/Sponsor:

Bexcimco organize different types of social events, like The Sufi fest was a remarkable event laid in the golden page

of history of Bangladesh which was also sponsor was byBeximco Group

Bangabandhu international football tournament which hadcombats from six nations contending to claim victory and be

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immortal in page of history this tournament also sponsored bybeximco Group

Sponsoring events and national sport stars and teamsOfficialsponsor of the Bangladesh National Cricket team for the ICCCricket World Cup 2011

Official sponsor of the FIFA friendly match between Argentinaand Nigeria held in September, 2011

C. Public relation/Government Lobbying

The stakes are always high when it comes to marketing, managing and promoting brands and handling the media in this age of mass communication. Get it right, and Your message will hit home at the heart of your target audience. Get it wrong, and you might stir up a crisis.Beximco Group, the largest private sector industrial conglomerate in Bangladesh, They appointed Impact PR as its official public relations agency.

Beximco Group's Director Finance and Corporate Affairs O K Chowdhury and Impact PR Chief Executive Officer M Shamsur Rahman signed the agreement at Beximco Group's head office.Under the agreement, Impact PR will provide public relations services to companies under the umbrella of Beximco Group and willtake care of all media inquiries on a 24-hour and seven-day-a-week

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basis, said a press release.

D. Corporate social responsibility

CSR initiatives are an integral part of our strategiccommitment, and we are always guided by strong ethical valuesto operate responsibly within broader social and economiccontext. Responding to the evolving needs of the society, andmaking a meaningful impact on the quality of their lives arecentral to Beximco’s CSR philosophy.

From Rana a plaza victim to those affected by naturalcalamities, BPL always stands by the distressed donating alarge amount of medicines.

BeximcoPharmacy works together with non-profit organizationswho work to improve people's lives through research,information, and advocacy. The company has extended supportto Mobile Alliance for Maternal Action (MAMA) in Bangladesh,as its founding corporate partner which aims to deliver life-saving health messages to pregnant and new mother usingmobile phones.

BPL continues to support JAAGO Foundation; the largest youthbased volunteer organization in Bangladesh, which aims tobring about substantial improvement in the lives ofdisadvantaged people with special emphasis on their literacyand nourishment. BeximcoPharmacy sponsors Jaago’s varioushealth and education initiatives and actively takes part incelebration of special days.

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Since 2003, we have continued our ARV drugs donation to localNGOs for treating AIDS patients in Bangladesh. The companyruns its awareness campaign in the form of rally, discussion,poster presentation, and seminar to observe WorldHypertension day, Osteoporosis Day, Asthma Day, Diabetes Day,and AIDS Day etc. The company also sponsors a good number ofscientific seminars for various associations and societies ofmedical disciplines.

Through the FRF foundation, Beximco has been engaged inphilanthropic activities for the last 12 years, providing medicalconsultation and diagnostic support both for its Employees and general people at a nominal cost. BPL also plays aleading role in promoting sports and preserving cultural heritagethrough sponsorship.

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CHAPTER SEVEN

Marketing Budget and Expenditure

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

Contents BUDGET

Descriptions 2014 2013Raw and Packing Material (Including Work in Process and Transit)* Inventory

1,768,608 1,675,642

Capital Expenditure / Project 29,734 39,234

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Raw & Packing Material * Loans 431,840 409,578Physician Sample 99,961 99,961

TOTAL 2,330,143 2,224,415

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

Market growth

The market is expected to grow by 15 to 20% per annum for the next5 years. The compounded annual growth for the previous 6 years was15%. The next stage of growth is expected to come from backwardintegration to manufacture high volume raw materials, introductionof Hi-Tech manufacturing processes that are difficult to imitateproducts, and exports,

PRODUCT MARKETING COSTS

Figures for Products are given: - by EACH COUNTRY / STATE / REGION by YEAR.

MARKETING COSTS: BY YEAR: Sales & selling costs: during product launch. Distribution/ warehousing / handling / processing costs: during product launch. Advertising / promotional costs: during product launch. After-sales costs. After-sales costs: during product launch. Total marketing costs: during product launch.

Pricing Strategies

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

Select the price objectiveDetermine demand

Estimate costsAnalyze competitor

price mixSelect pricing method

Select final price

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

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Price is not a very important factor due to the nature of theproduct. Quality is more important. However, the purchasingcapacity of the patients is also an important consideration.Therefore, it is important for the companies to charge areasonable price for their product.According the survey, most of the doctors perceive Beximco asoffering reasonable pricing for their product.

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Breakeven Analysis with Chart/GraphFormula of the Break-even analysis

Profit = Revenue – CostAt Break-even,Revenue = CostProfit = 0At 2012, Beximco pharma total expense was Tk.2181521867.SinceBeximco pharma is a pharmaceuticals company so there is no fixedquantity. There is different types of quantity for exampleTablet,Capsule, Suppository & DPI (unit 2,981.40 Million pcs), Liquid,Cream and Ointment, Suspension,IV Fluid, Amino Acid,Ophthalmic,Nebulizer Solution, Injectable and Inhaler (unit 63.05Million pcs), Active Pharmaceutical Ingredients (unit158,852kg ), Liquid Nitrogen (unit 236,597 liter ). So, whenBeximco pharma revenue is Tk.2181521867 then this company reachesa break even sales or point

Revenue and Cost

Cost

Break-even point

Revenue

Quantity

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

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

Revenue and Revenue

Cost

Break Even Point

Cost

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Quantity

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

At 2014(Half Year ended June 30, 2014), Beximco pharma totalexpense was Tk. 1,284,256.Since Beximco pharma is apharmaceuticals company so there is no fixed quantity and we can’tget any quantity from annual report. So, when Beximco Pharmarevenue is Tk. 1,284,256 then this company reaches a break evensales or point.

Revenue and Revenue

Cost

Cost

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Break Even Point

Quantity

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

Recommendation

Beximco pharma is the leading pharmaceuticals company inBangladesh. Here are some recommendations for Beximco pharma.

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Beximco pharma is now one of a leading position for theirmodernization ideas and various facilities for their customers.Moreover to retain the customers, if BPL gives more importance ontheir marketing strategy, it will outperform their competitors.It will be more helpful if, Beximco pharma adaptation of moreadvance technology in the production process and improvement ofcompensation structure for the staffs and employees.Training facilities must be given to employees and officials toincrease their efficiency and effectiveness.To retain customers, Beximco pharma should give more attention ontheir field force. In this regard, they can employ more talented &educated people as representative.Training facilities must be increasing the productivity of theemployees that helps the Beximco pharma further to achieve itslong-term goal.

Training amenities in improving upon the quality of work andwork-life.Beximco pharma Training facilities lead to improved profitabilityand more positive attitudes towards profit orientation.

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Conclusion

In Bangladesh Pharmaceutical sector is one of the most developedhi tech sector that is contributing in the country’s economy.Pharmaceutical sector is one of the express mounting sectors inBangladesh. It is most developed scientific sector. There are 250registered pharmaceutical companies operating in Bangladeshpharmaceuticals industry. Pharmaceuticals market is now extremelyaggressive. Beximco pharma, the only Pharmaceutical industry toexport their medicine to foreign country. Beximco has a strongmarket share and got enlisted on London Stock Exchange. They havestrong capital in Bangladesh. Beximco pharma introduced HIV/ AIDSmedicines. Beximco pharma is the only pharmaceutical industry thatcreated group for resistance of Cancer and HIV/ AIDS.

After knowing the whole strategic management techniques followedby Beximco pharma clear that no company can follow one from orapproach from the corporate level strategy. However, Beximcopharma has also been that of a kind where they practiced differenttypes of growth strategies, reached boom and at the same timecompany followed to the need for recovery stage where they havegone through the renewal strategy. But more or less it can be saidthat Beximco pharma preferred either growth through marketdevelopments and if not so then stability; with a consistentapproach towards consumer. Well the sum up we can be stated as

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that with all their superior strategies and techniques they havecontinued to stay prosperous from centuries and hope to maintainthat throughout.

Reference

Book name:

Marketing management – A south Asian perspective – 14/e byphillip kotler, Kvein Lane Keller, Abraham koshy, andMithileshwer jha: pearson Prentice Hall

Marketing Management (Thieteen ed.) by Phillp Kotler.

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Strategic Marketing Management – Meeting the GlobalMarketing challenges by Carol H. Anderson & Julian W. Vincepublished by Houghton Mifflin Company

Web site:

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

Annual-Report-2012.pdf

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

http://www.assignmentpoint.com/science/pharmacy/quality-

control-system-of-beximco-pharmaceuticals-ltd.html


Half-Yearly-Report-2014.pdf


Half-Yearly-Report-2014.pdf

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

pharmaceuticals-presentation-in-bangladesh

Appendix

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




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

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

Term Paper of Beximco Pharmaceuticals Ltd.

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