Marketing Mix of Betage

by
Mirza Asad Ali (ICK-MS-10-019) Ziaullah (ICK-MS-10-006)

2010

Hamdard Institute of Management Sciences Hamdard University, Karachi, Pakistan.

Marketing Mix of Betage

by Mirza Asad Ali and Ziaullah

A report submitted in partial fulfillment of the requirements for the course of Principles of Marketing at Hamdard Institute of Management Sciences, Hamdard University

Course Instructor Mr. Faizullah Jawad

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ACKNOWLEDGMENT First of all, we would like to thank the Almighty Allah for the completion of this course project report. We sincerely wish to acknowledge our gratitude towards Mr. Shariq (AM Sales & Planning) at Hilton Pharma who became a tremendous source of inspiration and guidance for this course project report. We are also thankful to other members of company for their help to refine and polish required information regarding this report. Lastly, we acknowledge the love, prayers, help and great support of our parents, family and friends, in the completion of this course project report.

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Table of contents
1. Stock Exchange 5

1.1 How Stock Market Works 1.2 Classification of Pharmaceutical Marketing 1.2.1 Ethical Marketing / Prescription Based Marketing 1.2.2 OTC Marketing 1.3 Launching of the Pharmaceutical Products in Market 1.4 Promotion of Pharmaceutical Product 1.5 Product Promotional Pattern 1.6 Pharmaceutical Product Product 2. Marketing Mix 2.1 Marketing 2.2 Marketing Mix 2.2.1 2.2.2 2.2.3 2.2.4 3. Company Profile 3.1 Hilton Pharma Distribution Network 3.2 Global Affiliation 3.3 Some Products of Hilton Pharma 3.4 Marketing strategy adopted by Hilton Pharma 4. Betage Marketing Mix 4.1 Product 4.2 Price 4.3 Place 4.4 Promotion Product Price Place Promotion

5 5 5 5 6 7 8 9 10 10 11 11 12 13 13 14 14 15 15 16 17 17 18 21 21

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1. Introduction
1.1 Marketing in Pharmaceutical Industry Marketing management is the practical application of this process. Pharmaceutical industry plays an important role in building a strong human capital for the country. The importance of the pharmaceutical industry in the healthcare sector as well as the global economy has been increasing rapidly. The pharmaceutical marketing is different from consumer marketing, as in this the products are usually not chosen by the consumers for there convenience, but it is given by their consultant on their health complaints. Pharmaceutical marketing involves selling of drugs and medicines to qualifies person who has the basic knowledge of medicines Selling, consumer goods are quits easy, and involve less risk, but pharmaceutical marketing involves selling of medicines that too through a mediator (doctor) to the consumer. 1.2 Classification of Pharmaceutical Marketing Pharmaceutical marketing is done in two ways; Ethical Marketing / Prescription based marketing. OTC (Over the counter) marketing. 1.2.1 Ethical Marketing / Prescription Based Marketing In pharmaceutical marketing, goods (i.e. medicines) are not sold directly to consumer but through Physicians / doctors who prescribe the drugs to the patient. Physicians are perhaps the most important players in pharmaceutical sales. They write the prescriptions that determine which drugs will be used for the patient. Influencing the physician is key to pharmaceutical sales. Ethical Marketing involves influencing the physician. In Ethical marketing importance is given to prescription selling; target customer here is physician who is qualifies enough to decide which medicine is better for his patient. 1.2.2 OTC Marketing The OTC stands for 'Over the Counter', which means the direct selling from the chemist counter without any suggestion or the prescription of the physician. The drugs included major in this category are the, Analgesics (Pain Killers) Antipyretic (For Fever.) Most of the patients to save physicians fees do this type of treatment but it is ethically wrong because they don't understands the MOA (Mechanism of Action) and also the side effects of that drug.
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1.3 Launching of the Pharmaceutical Products in Market Pharmaceutical marketing is the most challenging in today's world as it is approaching the millennium. Today's pharmaceutical market is complex and multinational with products primarily aimed at the maintenance and improvement of people's health. Historically, this was done with large pharmaceutical sales forces. (Sales representative) meet to the physicians regularly providing information and free drug samples according to the companies policy to the physicians. This is still the approach today. As the competition is becoming stiff and due to entrance of new players in pharmaceutical market, making call to physicians is not sufficient. Today each and every pharmaceutical company is giving importance of the aggressive marketing along with the Productive call in the doctors chamber of the medicinal product. Aggressive marketing of the means providing the proper services to the doctor, chemist & also take care of patients. Pharmaceutical marketing is stand on four pillars of, Doctor, Chemist, Distributor, & also on Patients. 1) Physician Physician is the person who prescribes the drug and is well aware of the medicinal value of the product. 2) Retailer Retailer who makes availability of the prescribing product & also providing the guidance in the proper selection of doctor and about molecule to promote in doctor chamber. 3) Distributors Distributor makes the proper availability of stock from company for the proper distribution in the territory chemist and helps in selection of area or town to be covered. 4) Patients Patients these are the direct and end users of the products. So these are so important. Company will provide the medicines at the most economical rates for patient' Conveniences.

PharmaceuticalCompany Company Pharmaceutical

Doctors/ Physician Doctors/ Physician

Chemist Retailer Chemist // Retailer

Distributor Distributor

Patient Patient
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1.4 Promotion of Pharmaceutical Product The process of convincing the doctor also providing the information to retailer about the product and doctors promise for product and taking order and give to the stockiest make product available for the patient convenience is major duty of the medical. Some of the techniques adopted by Pharma Company's are Steps of promotion of pharmaceutical product. Special comp nigh for some product Targeting the Physicians for particular Molecule Meeting to the physician. Sampling. Giving a regular follow-up providing informative literature. Arranging Doctor's meet. Giving gifts as token of gesture. Advertisement of the product in books, journals and magazines used by the physicians. Participate in medical conference.

Conceptual Framework Before starting the main project it is necessary to yet analytical with certain concepts so that it helps to get better understanding of the project following are some of the concept used in the project. Pharmacy Pharmacy is defined as "The art of preparing and dispensing medicines and embodies the knowledge and skill requisite to carry them out in practice." Drug According to WHO "A drug is any substance or products used or intended to be used to modify or explore physiological system or pathological state for the benefits of the recipient Bulk Drug

"Bulk drugs are active or inactive ingredients used in the manufacture of finished dosages drugs products". Compounding
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Compounding is defined as "Produce a dosage form of drug other than that manipulation

that is provided for in the directions for use on the labeling of the approved drug product, for example, the reconstitution of a sterile powder with sterile water for injection. Pharmacist

The Person licensees and have operating in conformity and dispensing in response to a valid prescription. 1.5 Product Promotional Pattern In classification various techniques are used to promote and sell a pharmaceutical such as TV advertising, distributing broachers, regular visits by medical representative, gift and sample distribution. An ethical drug first has to be approved and recommended by a physician and then sold to the patient or consumer, through medical stores, non ethical or patented products can be directly sold to the consumer through persuasive advertising through various media such as newspaper, magazine, radio or TV. It can be sold through point of sale advertising which means poster in the medical shop or window displays, but the proportion of non ethical or patented products is hardly about 20% of the total output of drugs and pharmaceutical products. Hence an indirect method, a round about way of promotion and distribution has been adopted in pharmaceutical marketing. It can be shown diagrammatically as given under. Physician Doctor Physician // Doctor

Patient/Direct Patient/Direct

Medical Medical Executive Executive

Chemist /Retailer Chemist /Retailer

e e m m i i s s t t / / Page 8 of 21

1.6 Pharmaceutical Product Product Pharmaceutical Product Product

R R e e t t a

i l l e e r r

It has been observed that about 15% to 20% products are sold directly to the institutional customers such as hospitals, nursing homes, etc and above 80% sale is individual customer on the basis of prescription given to individual and submitted to the druggist. Hence the primary and most important task for the medical representative is to pay sales calls to the physicians. He is expected to pay sales calls of about 12 or more physicians everyday about 25 days a month. He has to plan his sales calls carefully, for which he has to make a tentative list of physicians in his history. Company

Central Depot

District wise Stockiest

Retailers

Patients

2 Marketing Mix
2.1 Marketing
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The term marketing has changed and evolved over a period of time, today marketing is based around providing continual benefits to the customer, these benefits will be provided and a transactional exchange will take place. The Chartered Institute of Marketing define marketing as The management process responsible for identifying, anticipating and satisfying customer requirements profitability If we look at this definition in more detail Marketing is a management responsibility and should not be solely left to junior members of staff. Marketing requires co-ordination, planning, implementation of campaigns and a competent manager(s) with the appropriate skills to ensure success. Marketing objectives, goals and targets have to be monitored and met, competitor strategies analyzed, anticipated and exceeded. Through effective use of market and marketing research an organization should be able to identify the needs and wants of the customer and try to delivers benefits that will enhance or add to the customers lifestyle, while at the same time ensuring that the satisfaction of these needs results in a healthy turnover for the organization. Philip Kotler defines marketing as satisfying needs and wants through an exchange process. Within this exchange transaction customers will only exchange what they value (money) if they feel that their needs are being fully satisfied; clearly the greater the benefit provided the higher transactional value an organization can charge. Marketing is a social and managerial function that attempts to create, expand and maintain a collection of customer. A market - focused, or customer focused, organization first determines what its potential customer desires, and then builds the product or services. Marketing theory and practice is justified on the belief that the customer uses a product/ service has a perceived benefit.

2.2 Marketing Mix Marketing Mix is a term used to describe the combination of tactics used by a business to achieve its objectives by marketing its products or services effectively to a particular target Page 10 of 21

customer group. It is also referred to as the 4 Ps i.e. Product, Price, Promotion and Place. Why it is important? Businesses need to make sure they are marketing; The right product to The right person at The right price in The right place and at The right time

For example, if you manufacture pens, and have decided to target schoolchildren, it would be more appropriate to market. Colored ballpoint pens (product) At a low price (price) Selling them through newsagents and stationers (place) And promoting them through point of sale material (promotion) than it would be to market. Gold fountain pens (product) At a high price, including insurance against loss (price) Selling them through specialist outlets and jewellery stores (place) And promoting them in glossy magazines and Sunday Supplements (promotion) 2.2.1 Product Marketing is about identifying, anticipating and satisfying customer needs. You need to be sure that your products and services continue to meet your customers needs. 1. Carry out simple research by asking your customers. What they think of each product/service How satisfied are they with the quality How satisfied are they with any support services you may provide How effective it is in meeting their needs How they see their needs changing in the short and long term future

2. Carry out step 1 for each product or service offered 3. Have a system for collecting and analyzing feedback from your customers so that ideas are fed into a new product development process that is ongoing.
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4. What stage of the product life cycle your products or services have reached. The product life cycle is one way of looking at how the marketing mix links together. 5. Analyze the profitability of each product/service you offer. 2.2.2 Place Place is the means of distribution you select depending on the type of product or service you are marketing. 1. Are the customers for your products and services consumers or businesses? 2. If sell through wholesalers and retailers, remember when price for products that they will each want their own mark-up to cover their overheads. Will also need to promote your products and services to all members of the channel. Wholesalers and retailers will have to be persuaded to stock your product and end customers to buy them. 3. If selling to businesses you will have to cover the cost of a sales force. This can be an expensive overhead and will again impact on your pricing. 2.2.3 Price Price generates profit so is an important element of the mix. 1. What your target group of customers will be prepared to pay for your product or service. It is important not to set the price too low as customers may think there is something wrong with the product. Equally, if set the price too high, customers may think that it is too expensive for the benefits offered. Think about how positioned your product in terms of quality. This will help you to assess how to price it. 2. What it costs you to produce it. This will show you what you need to charge and not what you could or should charge. However, if do not calculate what it costs you to produce your Page 12 of 21

product correctly, the more you sell, the more you will lose. Dont forget to make an allocation for costs such as selling which are usually treated as fixed. 3. What your competitors charge. Look at competitors. Web sites, or simply phone them and ask for a price list or quotation. 2.2.4 Promotion The promotional mix is made up of 5 elements: advertising sales promotion public relations direct marketing personal selling

The combination of tools you use depends on the budget.

3 Company Profile
Hilton Pharma is a member of the Progressive Group of Companies. Combining the best of values of entrepreneurship, strong work ethics, and strict compliance with current Good
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Manufacturing Practices (cGMP) with wide range of products, Hilton Pharma has emerged as Pakistans largest national pharmaceutical company. We market products under license from more than a dozen world-renowned research based pharmaceutical companies besides our own branded generic specialties. Since its inception, Hilton Pharma has mainly promoted research based pharmaceutical products. Companys innovative marketing strategies together with its strong marketing base have helped our products to be significantly positioned in their respective therapeutic areas. With regard to manufacturing, Hilton Pharma has always been committed to strict adherence with international standards of quality and cGMP and has been awarded ISO 14001 and ISO 9001:2000 certifications. Hilton Pharma has attained this prestigious position through continuous focus on human resource development, close team work, innovative marketing skills and modern production facilities. Collaboration with research based world renowned multinational companies demonstrates Hilton Pharmas commitment to bring the best and most innovative health products in Pakistan. Companys Vision Working towards a healthy future 3.1 Hilton Pharma Distribution Network One of the major reasons for Hilton Pharmas success is its strong nation-wide distribution network; which ensures uninterrupted availability of Hilton Pharma products in all parts of the country.

3.2 Global Affiliation Hilton Pharma enjoys firm partnerships with many pharmaceutical companies all

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over the world. This is in-line with the companys strategy of constant expansion and forging strategic ties.

3.3 Some Products of Hilton Pharma Deals in Human & Veterinary Products.

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3.4 Marketing strategy adopted by Hilton Pharma Marketing strategies adopted by Hilton Pharma. Hilton Pharma is leading pharmaceutical company having a range of product used as medicine. The company has the sound marketing strategy, which has helped the company to prosper. Since Pharma marketing is indirect marketing, company has developed strategy to sustain and to prosper in the market. The main features / characteristics company's marketing strategy mainly includes1. Company has framed the strategy keeping III core the prescribers. 2. Company has also framed strategy keeping III mind the retailers also. 3. Company has developed strategy keeping in view the Sales force that is the important weapon of the company 4. Company has given prime importance to the patient i.e. direct customer by making economy in the product. Strategy for Prescribe Physicians Physicians are the target customers for the company; hence the company is always trying to develop the strategy so that there is increase in the physicians. The strategy developed for the doctors mainly includes; Conduction survey. Checking the potentiality of the doctors. Positioning of the product. Detailing of the products to the doctors. Sampling Regular follow-ups Providing the informative literature. Organizing Health check-up camps. Categorizing Doctor according to the prescription support. Giving Gifts as token for gesture. Sponsorships.

Hilton always follows this principle strictly. Hilton has its own format of survey, which has to be filled at chemist retailer counter. The purpose of this mainly includes. To check the potentiality of the doctor in terms of patients checked,
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prescription generated by the doctors, and rupees value of the prescription. To check the liking of the Doctor in particular molecule, combination. To check the existence of the competitor product & if exist what is the position of the competitor's product. Positioning means placement of product in the market by identifying the needs of the customer. By positioning the product the company is able to more precisely meet the needs of more customers and consequently to gain a higher overall level of share or profit from a market. And also positioning is depending on the seasonal requirements. In Pharma marketing the positioning of the product is done the basis of the indication in which the drug has the medicinal values and accordingly the product is promoted. Hilton Pharma also follows the same principle. However they have been categorized depending upon the benefits of the product in the disease or disorder.

4. Betage Marketing Mix

4.1 Product Introduction about Betage A balanced combination of 5 highly effective free radical scavengers Beta carotene 9.000 mg Ascorbic acid 500.000 mg AlphaTocopherol 100.000 mg Optizinc 10.000 mg Selenium 0.020 mg

Betage is a highly balanced combination of strong anti oxidants. Protects the body tissues from damaging reactions Prevents cancer & cardiovascular diseases Improves general health & immune function Prevents premature aging Prevents Zinc & other vitamins (A, C & E) deficiency during pregnancy.

Administration & Dosage

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Orally: 1 tab, once daily or as directed by the physician. Packaging The packaging includes: 4.2 Price Product Registration The very first thing that happen to Pharma product life cycle is the researched molecule is registered in the Ministry of Health (MOH). Dossier along with the molecular research, raw material availability, product manufacturing or procurement report, costing and suggestive prices are provided to Ministry of Health. After complete research and viability analysis, MOH registered the product for a Pharma Company. Price Determination On the basis of costing provided with dossier (including the raw material cost and manufacturing cost), Ministry of Health determines the price of the product registered. The prices determined are MRP (market retail price) and TP (Trade Price). Price Ceiling determination The price determined and registered by the Ministry of Health, is the ceiling price or the maximum price on which the company can sell the product, until and unless company attains a price increase from the ministry. Company logo to improve credibility The brand slogan Description of the product itself The manufacturing and expiry date Price with or without tax The company address Warning Direction

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MRP TP DP Price in Pharmaceutical industry is divided into 3 major portions. MRP (market retail price) is the price that is mentioned on the product pack, it is then reduced by the percentage margin that is provided to the retailers, which drives to TP (Trade Price). TP (Trade Price) is the price on which the distributor sells the products in the market, wholesale or retailers. Company sells the product on DP (Distributor Price).

Product Discount Product discounts are provided to individuals, institutions Direct or Institutional Distributors. Betage commercial customers are more promising institutional.

Volume Discount
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On Betage the distributor is being provided 2% more discount for purchases above 100 packs. Competitive Prices Brands SURBEX Z - AB& GONADIL-F - GTZ REVITALE MULTI - GSK POLYBION Z - M/M ZINCAT - AT3 EPIVITE - STF PERFECTIL - VTB BETAGE - HL. Prices TP April 2010 89.72 466.65 192.51 63.75 89 231.21 270 132.98

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4.3 Place Target market for Betage involves any age of people. Hilton Pharma has network of 500 sales representatives dealing with 52 distributors in no of towns. Follows following distribution channels; Selling to wholesalers who will sell to retail outlets who will sell on to the consumer Selling direct to retail outlets Selling direct to the customer

4.4 Promotion Promotion activity regarding Betage involves distributing broachers, regular visits by medical representative, gift and sample distribution. Other ways include point of sale advertising by placing poster in the medical shop or window displays. Arranging free clinics or camps in which they introduce their product, may also arrange some awareness workshops for promotion.
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