Beruflich Dokumente
Kultur Dokumente
This report entitled as New Product Development in ACME. has been prepared with a
Bangladesh. The necessary of this report arose out as a requirement of my MBA Degree
under department of Marketing, University of Dhaka. After completion of all the course
report on the internship. I have done my internship in The ACME Laboratories Ltd. In the
internship period I had to study different documents, presentation, statistical data of ACME
Main objective of the study is to unveil the steps involved in introducing a new product in
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to exemplify brand name selection procedure of a new product
The scope of the study is limited within the pharmaceutical business in Bangladesh and
especially in ACME. Here I discussed the topics related pharmaceutical marketing and
introducing a new product from marketing perspective. Some relevant information of total
pharma market has also been included in the study. This report will help the readers to
understand the total procedure of introducing a new product in pharma industry. Although the
study was conducted at ACME, new product development is almost same at all
pharmaceutical company in Bangladesh This report will also help the ACME Laboratories
Ltd. to understand the function and responsibility of different departments within the
1.4 Methodology
This report is based on the analysis of secondary data and also some data from primary
sources. Primary data have been collected by unstructured interview with different persons in
ACME. ACME managers and officers provide their expert opinions in different aspect of
marketing of their products with confidentiality limit. Secondary data were obtained from the
annual reports of ACME, memorandums, sales reports, presentations, statistical reports, ims
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data source and other sources. The official website of ACME provided a lot of relevant
information. Relevant information also collected from the websites of Drug Administration,
Interviewed persons also have kept their personal and official confidentiality.
I am an employee and intern of ACME so I had to work with the limit also.
Because of unavailability of some data of past years and some other necessary data
have made the analysis incomplete and insufficient for making generalized
comments.
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Chapter 2: Literature Review
Improving and updating product lines is crucial for the success for any organisation. Failure
for an organisation to change could result in a decline in sales and with competitors racing
ahead. The process of NPD is crucial within an organisation. Products go through the stages
of their lifecycle and will eventually have to be replaced There are eight stages of new
New product ideas have to come from somewhere. But where do organisations get their ideas
Competitors.
Customers
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This process involves shifting through the ideas generated above and selecting ones which
are feasible and workable to develop. Pursing non feasible ideas can clearly be costly for the
company.
The organisation may have come across what they believe to be a feasible idea, however, the
idea needs to be taken to the target audience. What do they think about the idea? Will it be
practical and feasible? Will it offer the benefit that the organisation hopes it will? or have
they overlooked certain issues? Note the idea and concept is taken to the target audience not
How will the product/service idea be launched within the market? A proposed marketing
strategy will be written laying out the marketing mix strategy of the product, the
segmentation, targeting and positioning strategy sales and profits that are expected.
The company has a great idea, the marketing strategy seems feasible, but will the product be
financially worth while in the long run? The business analysis stage looks more deeply into
the cashflow the product could generate, what the cost will be, how much market shares the
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Finally it is at this stage that a prototype is finally produced. The prototype will clearly run
through all the desired tests, and be presented to the target audience to see if changes need to
be made.
Test marketing means testing the product within a specific area. The product will be launched
within a particular region so the marketing mix strategy can be monitored and if needed, be
If the test marketing stage has been successful then the product will go for national launch.
There are certain factors that need to be taken into consideration before a product is launched
nationally. These are timing, how the product will be launched, where the product will be
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Chapter 3: Pharmaceutical Industry in Bangladesh
In Bangladesh pharmaceutical sector is one of the most developed hi-tech sectors, which is
contributing much in the countrys economy. After the promulgation of Drug Control
knowledge, thought and innovative ideas of the pharmacists working in this sector are the
key factors for this development. Due to recent development of this sector, we are exporting
medicines to global market including European market. This sector is also proving 96% of
the total medicine requirement of the local market. Leading pharmaceutical companies are
expanding their business with the aim to expand export market. Recently few new industries
have been established with hi-tech equipments and professionals, which will enhance the
%, is currently estimated Tk. 4,702 crore for finished products and Tk. 168 crore for raw
materials. There are nearly 245 listed pharmaceutical manufacturers in the country.
pharmaceutical manufacturers of the country was instituted in 1972, since then BAPI playing
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a pivotal role in shaping up the industry. Associations member include large, medium, small
national and foreign companies who together are responsible for manufacturing of 96% of
the countrys pharmaceutical production. This indeed provides the success of BAPI as a
responsible and acceptable body. Technological fineness has always been the highlight of the
dosage forms, inhalers, nasals sprays, insulin, soft gelatin and had gelatin liquid fills
Once upon a time multinational companies are the major players in the pharmaceuticals of
this country. But after Drug Act of 1982 local manufacturers began to dominate and
multinational companies share began to decrease. Now local companies are the leaders in this
At the same time, the total market size of locally manufactured drugs has increased rapidly
from around Tk. 100 crores in 1980 to approximately Tk. 2500 crores in 2003. This indeed
proves excellence of the locally manufactured drugs and the manufacturers constant towards
quality.
Worldwide Good Manufacturing Practice (GMP) is the basic concept of maintaining quality
of finished drugs and medicines. The finished drugs and medicines are manufactured in
Bangladesh in accordance with the GMP criteria and within the guidelines of British National
quite a few pharmaceutical companies of our country has received internationally acclaimed
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ISO 9001, UK Medicine and Healthcare Regulatory Authority (MHRA) Australian TG and
US FDA Certification.
Bangladesh pharmaceutical industry is the 4th largest contributor to the national exchequer
after, Garments, Telecommunication and tobacco industry till date. Human resources
management and development is another area where the pharmaceutical sector is plying a
vital role. Pharmacists, Doctor, Biologist, Microbiologist, Chemist, Engineers and Business
professionals comprise the fantastic sector of constant change. The talents and efforts of
Manufacturer
2Local companies 87 %
3Multinational companies 13 %
1Local demands
Demand meets by local manufacturing 196%
1Demand meets by imported products, 4%
mainly
2Vaccines
3Insulin Table 3.1: Percentage of local demands met by local
manufacturer.
Anti-cancer products etc.
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4%
96%
Fig: 3.1 Market demand filled status by local and from import
products locally. However, as this is insufficient to meet the growing demand from the
domestic market, the government has approved the establishment of an API industrial park in
Munshigonj at a cost of US$30bn. Estimates suggest that API products worth US$750mn per
annum could be exported over the next five years. At present, Bangladesh imports more than
At present there are 749 registered local pharmaceutical companies and 20 multinational
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Table 3.2: Number of pharmaceuticals in Bangladesh
After the inception of Bangladesh from 1971 to 1982 pharmaceutical market was import
dependent and dominated by the multinational companies. At that time there were many
unnecessary vitamin preparations. The prices of the medicines were much more.
Professionals of this sector were honorable to the peoples. Doctors and chemists were
dependents on the pharmaceuticals. After 1982 when the drugs ordinance passed in the
parliament favoring the local industries the scenario began to change, this results the
development of a very emerging industry in Bangladesh. The 1982s drugs ordinance helps
the profession of Pharmacist who, stands the local companies in lead and multinational
companies are loosing their market share day by day. The product characteristics also have
been changed; the place of unnecessary vitamin has been taken by hi-tech high quality latest
generics of the world. The country has got rid of its dependency from the imported
medicines.
than the past, the country is now nearly capable to produce total of its drug requirement, it
contribute much to the national revenue, a class of professional pharmacist developed, export
earnings from the sector is increasing day by day, huge number of peoples are employed in
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this sector. Very high-techs, high quality, life saving and latest drugs are producing in the
country. On the other hand a class of fraud, dishonest government officials and industrialist
and doctors has been developed, which is very bad for the health sector of the country.
Doctors are prone to very unethical practices, prescribing many unnecessary unjustified
higher antibiotics and vitamins to the patients. Companies are investing much and much
behind the doctors and ultimately the healthcare expense of the people is increasing much
and much. Internal salary structure of this sector is decreasing to subsidize the product
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Fig: 3.3 Market growth trend from 2004-2008
Both in the year 2008 and 2007 Square pharma leads the sector with huge gap than the 2nd
positions holder. Top 20 companies enjoying the major share 83% of the market other
companies holding only the 17 % market share. ACME is in the position 2 with Tk. 387 crore
in 2008. In the top 10 companies there are no multinational companies, but once upon a time
Sales in Sales in
Sl.
Manufacturer 2008 in Share % 2007 in Share %
No.
crore Tk. crore Tk.
1 SQUARE 943 20 837 18
2 ACME 387 8 343 7
3 INCEPTA PHARMA 354 8 316 7
4 BEXIMCO 333 7 375 8
5 ESKAYEF 218 5 208 4
6 A.C.I. 213 5 172 4
7 OPSONIN PHARMA 202 4 160 3
8 RENATA 199 4 157 3
9 ARISTOPHARMA 197 4 179 4
10 DRUG INTERNATIONAL 159 3 174 4
Table 3.4: Top ten pharmaceutical companies in Bangladesh
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Market share of top 10 companies in 2008
SQUARE 20%
Others 35%
INCEPTA PHARMA 8%
ACME 8%
DRUG INTERNATIONAL
3% BEXIMCO 7%
ARISTOPHARMA 4%
ESKAYEF 5%
RENATA 4%
A.C.I. 5%
OPSONIN PHARMA 4%
Among the molecules Omeprazole is the leading generic is an antiulcerant. Among the top 30
molecules vitamins and the antibiotics are the major classes. This indicates the necessity and
habit of the doctors prescribing more vitamins and antibiotics, but many physicians and
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3.5.2.3 Top brands
Top 30 bands have the market share of Tk. 805 crore, which is nearly 18 % of total market
shares in 2008. Among the top 30 brand most are local companys brands and Square pharma
leading the top brands. ACME has only one brand among the thirty brands. Among the 30
From the past and present market trend and changing nature of the market, as a professional
pharmaceutical marketer I like to make the following comments about the future market of
Bangladesh. After 2016, when the patent law will be applicable for Bangladesh we will not
be able to manufacture patent drugs. As the local companies have no generic research
initiatives, further the multinational companies will get better days. More and more money
will be required to be invested to the doctors. Give and take will be more naked in this sector.
Technological development will be a must for retain in the competition. With the
development of hi-tech facilities export earning will increase much till to 2016. A substantial
market growth will be continued. Healthcare cost will be out of reach for the general people.
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With the help of statistical analysis method, we can assume the sales of the next few years
Pharmaceutical export is growing at a very faster rate. Government has taken it as a thirst
sector. Bangladesh has the strongest pharmaceutical base than other LDCs, offering
At present Bangladesh exports formulated medicines about 71 countries in the world. Some
Colombia, Chili, Curacao, Djibouti, Denmark, Ecuador, Ethiopia, France, Fiii, Georgia,
Germany, Ghana, Gambia, Guatemala, Hong Kong, Macao Honduras, Hungary, India,
Indonesia, Iran, Jordan, Japan, Kenya, Korea (South), Kinbati, Lebanon, Malaysia, Mexico,
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Pakistan, Papua New, Guinea, Philippines, Singapore, Slovenia, Somalia, South Africa,
Spain, Sri Lanka, Sudan, Sweden, Syria, Solomon Island, Taiwan, Tanzania, Thailand, Togo,
We can also assume the export earnings of the next few years from the past few years sales
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Chapter 4: About
The ACME Laboratories Ltd. has started its journey in 1954 with a few oral liquid dosage
forms. Late Hamidur Rahman Sinha was the founder of the firm and had been the main
visionary of the organization since its inception until his sad demise in February 1994.
In 1976 ACME started its modernized new plant equipped with sophisticated and advanced
facilities and in 1983 commercial operation started in the new plant. ACME overcome many
challenges to transform the company from a very small unit to what it is today a giant in its
field. In its continuous effort to modernize its production ACME started the construction of
its new venture, The ACME Specialized Pharmaceuticals Ltd. (ASPL). It is an innovative
and vision driven business unit designed to conform global standards like WHO cGMP, UK-
MHRA and US-FDA. Facilities and processes here are of the highest quality which has been
designed to achieve quality products with vision to export in global market. This finest and
largest solid dosage forms manufacturing facility is under construction by active guidance of
European Consultants.
ACME also has expanded its international business in different countries from the year 2003.
Over the years, the efforts made by the competent staff coupled with customer confidence
have fuelled our growth, promoting ACME to overcome hindrances and progress towards its
ultimate goal of the position, which the word ACME literally stands for.
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4.2 ACME group
ACME Group is one of the leading and diversified global conglomerates in Bangladesh, with
offices in all major cities, employing over 3000+ employee and dedicated to bringing to
highest quality products and services to our customer. The group has an annual turn over of
Tk. 600 crore with diversified interests in Pharmaceuticals, Agrovet and Beverages,
The ACME Laboratories Ltd. is the second largest manufacturer and exporter of Human,
ACME Agrovet and Beverage Ltd. is a FMCG business venture to manufacture fruits juice,
mineral water, spice, tea and many more. These are manufactured and bottled in a state-of-
the art processing factory using latest machineries and tetra pack facility.
Mango Juice
ACME Spices
250ml
Mango/ Orange
ACME Tea
Juice 150ml
Mineral Water
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4.2.3 ACME IT Ltd.
MARS Group is an aviation services company offering computer reservation system, travel
A printing and packaging company offering medicine carton printing, label printing and all
services.
The ACME Laboratories Ltd. is the second largest manufacturer and exporter of Human,
certified company. Since its inception in 1954, it has been working relentlessly with a vision
to ensure Health, Vigour and Happiness for all. It produces more than 300 products of
different category of tablet, capsule, Injection, ointment, cream, MDI, DPI, syrup,
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suspension, gel, spray etc. It manufactures and markets products of nearly all-therapeutic
international standards of precision and care, through up to date technology and meticulous
quality control.
With the vision to ensure Health, Vigor and Happiness for all, ACME manufactures ethical
drugs and medicines of the highest quality at affordable prices and reaching out even to the
remotest areas by proper distribution network. We view ourselves as partners with the
Mr Nasir-ur Rahman Sinha, Chairman of The ACME Laboratories Ltd., obtained M.A. in
political science from Dhaka University in 1965 and is a pioneer manufacturing industrialist
Printers Ltd" engaged as a pharmaceutical packers and printers unit. He is connected with
Dhaka Stock Exchange Ltd. since 1969 and is also a member of D.S.E. He is the Managing
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Director of National Equities and Financial Promoters Ltd. (Securities and Investment
Advisor). He is also the Director of "Sinha Fabrics Ltd", "Sinha Wool Wears Ltd", ACME IT
Besides, he sponsored the first Internet Service Provider of the country 'Information Services
Network Ltd.' (Bangla Net) as it's Director. He is also a sponsor director of "Holiday
Publication Ltd." engaged in publishing 'Weekly Holiday' and 'Daily New Age'. He is widely
He is a disabled man as he is suffering from Cerebral Palsy since his birth but due to his
sincere and serious efforts and co-operation of his parents, wife and siblings he turned as a
bold man to face all obstructions successfully. He is also the Chairman of Salvation for the
Mr. Mizanur Rahman Sinha obtained his graduation degree in Commerce in 1962. He started
his career as a banker in Habib Bank Ltd. of then Pakistan. After eleven years of service in
different senior positions, he left to join ACME as its Marketing Director in 1975.He is also
the founder Chairman of J. K. Fashions Ltd., Sinha Knitting Ltd. and Sinha Fabrics Ltd. All
He was actively engaged in politics since his student years and was elected Vice President in
his College. In the 1996 National Elections he was voted by his constituency of Munshianj-2
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to become a Member of Parliament of the National Assembly. He is popular among his
fellow countrymen as a devoted social worker and philanthropist for his magnanimous
contribution towards the well being of the common masses through development of
The ACME Laboratories Ltd. has a thirteen-member management team lead by the
Managing Director. There are two Deputy Managing Director and eleven Directors in the
Technical Davison
Marketing Division
Finance Division
Bangladesh. While designing and construction the plant, proper attention was paid to the
latest concepts of cross contamination, air circulation and air handling, particle free finishes,
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equipment layout, process flow, hygiene and safety. Special care has also been given in
selecting machinery and laboratory instruments. The plant has the most sophisticated
Marketing division is the main driving force and controlling for any selling organization.
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Product Management Department (PMD) is the core department of marketing; it plays a
crucial role in building image of the company. PMD performs the core function of marketing
in exploring new business, building strong brand. PMD formulate marketing plan based on
which whole marketing activities move round. PMD develop, arrange and allocate all the
promotional materials to the field forces. PMD performing the research and market analysis,
PMD always stay up to date on the market and competition. PMD imparts necessary training
to the sales team and update them for the ever-increasing competition in the market.
Medical services department arrange the scientific seminar to the medical institutions with
IT division consists of the system support department, software department and data
management department performs all the technical support job and data management
function.
ACME has a skilled devoted about 1400 field forces throughout the country. Sales team
performs all the sales activities like the product promotion, order taking, order placing and
bill collection. ACME has a large distribution network with 18 depots throughout the
country. The distribution department delivers products to the depots and to the chemist shops
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4.5.5. Finance division
Finance division consists of accounts department, costing and audit department performs all
People are out prime asset and in the business one of the key to our success. We feel that
invaluable mix of man-machine interface makes the technology work. ACME has been
placing utmost importance on the continuous development of its human resources. We train
people not only to do the job well, but also give them an environment, which fosters personal
AMCE staffed with highly qualified, experienced and innovative personnel. Over 4000
energetic, skilled and devoted employees from diversified disciplines are working with
ACME at home and abroad. Teamwork culture is the secret of ACMEs success.
The ACME Laboratories Ltd. has more than 350 brands of 160 generics in its human and
animal health product line. ACME has introduced almost all the dosage forms of products
Tablet Powder
Capsule Syrup
In Bangladesh, more than three hundred new brands launch in each year in the
pharmaceutical industry. New product launches are crucial to the success of a business; they
demand careful planning and flawless execution. Internal communications are vital to the
early success of the program, as is the support of senior management, who must commit
New product launches are a pivotal time for businesses, and they require meticulous
planning. A product launch is the culmination of months or even years of effort, from across
the organization, in readying a product for market. It constitutes a high profile activity that
can signal corporate success or failure. Product launches also requireand displaya
considerable amount of investment. Thus, an intensive effort is required to execute the launch
program successfully.
New Product development generally means design, creation, and marketing of new products.
new drug. So to omit confusion New Product Development is rather termed as New Product
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A product launch progresses through a number of important stages:
Stage 1
Product Identification and Product Selection
Stage 2
Formulation Development
Stage 3
Raw material sourcing
Stage 4
Profitability analysis
Stage 5
Recipe approval Brand name selection Product presentation
Stage 6
Preparation of marketing mix
Stage 7
Development of
packaging material
Stage 8
Registration and Price
approval
from drug administration
Stage 9
Preparing production forecast Development of promotional tools
Stage 10
Fixation of launching date
Stage 11
Launch the product
Stage 12
Customer Feedback Analysis
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Figure 5.1: Stages of New Product Launching in ACME
5.1
from those of consumer market. In pharma industry, NPD starts from Product identification
ACME consist of twenty Executive. Each year, all the executives propose their new product
to the management. One executive can propose as much product as he/she like. The overall
process of NPD is conducted by assigned PMD personnel. Ideas for new products can be
obtained from considering the market potential, market size, growth, feasibility, FPs
competency to detail the product, sales strategy, profitability, product feasibility etc of the
product. After idea generation a proposal is submitted through New Product Proposal Sheet
(NPPS) to New Product Proposal Meeting (NPPM) for evaluation. After getting positive
evaluation from NPPM, the proposal is submitted to higher management (National Sales
Manager, General Manager and Director Marketing Sales) for final approval.
5.2.
After getting approval from higher management, a product data sheet along with a marketing
the active drug, are combined to produce a final medicinal product. Formulation studies
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involve developing a preparation of the drug which is both stable and acceptable to the
patient. For orally taken drugs, this usually involves incorporating the drug into a tablet or a
capsule. It is important to appreciate that a tablet contains a variety of other substances apart
from the drug itself, and studies have to be carried out to ensure that the drug is compatible
The product data sheet is usually used for technical communication to describe technical
In marketing brief, some basic information regarding the market of the product is included.
At first the generic name of the product and a roughly proposed brand name is included. The
proposed brand name will be finalized after Brand Name Selection procedure. Few other
things should be included in the marketing brief like dosage form and strength of the drug,
medicine is another important aspect to consider. The color of the tablet, round or oval
shaped, concave or flat. What is the packing material for the medicine. Generally there are
three level of packing for a pharmaceutical product. Primary, secondary and tertiary
packaging. The primary packaging is most essential for the drugs quality and efficacy. If the
drug is capsule or tablet then the packaging is done with alu- alu blister or alu-plastic blister.
The secondary packaging is for protection from environment. It is usually made with paper
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box. And the tertiary packaging is done with hard paper, commonly known as carton. All
A tentative unit price of the tablet, market size of the drug and leading brand of this generic is
Proposed Brand Name : Panto-A (Actual brand name will be selected after
submission of recipe)
surface tablet
Secondary Packing : Printed carton with 300 GSM white back duplex /
information leaflet
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5.3.
After getting product data sheet and marketing brief, PDD starts to develop formulation of
the product. According to the formulation, PPIC (Procurement Planning and Inventory
Control Department) start to find out raw material from the local and international suppliers.
PPIC has around two hundred enlisted suppliers. At first they search among their enlisted
suppliers. If these suppliers can not support then PPIC search the raw materials at other
sources. A quotation is called from PPIC. A raw material specification, which is generated by
Quality Control (QC) or Product Development Department (PDD) is given to the interested
indenting firms. They send the specification to the foreign manufacturer of the raw material.
Manufacturer than send a sample of the raw material to ACME which is analyzed by QC.
After QC approval comparative statement (CS) is done among qualified indentors and the
5.4.
venture will make a profit, and, if so, how much. This is important information in deciding
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A profit projection consists of identifying future income streams and expenses (outflows).
The process enables small companies to identify tradeoffs inherent in any business. Although
we probably recognize the immediate benefits of this type of planning, we might lack a
A profit projection weighs assumptions, projected revenues, and projected expenses. After we
have established detailed sales and expense projections for a given period and have identified
and noted key assumptions, we can use a simple formula to project profitability. It's essential
Assumptions- Assumptions are at the heart of every financial projection and determine the
these assumptions, and we need to review them thoroughly. In addition, assumptions should
Projected revenues
When developing projections, it's wise not to be overly optimistic. For example, it doesn't
pay to underestimate the impact of such factors as seasonality and the changing buying habits
of our customers or to ignore the actions of our competition. If we do, we might overestimate
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Identify repeat or recurring revenue sources because our company has a history with these
Document potential new customers and markets Identifying prospective customers along
with the expected revenues and unique product requirements helps substantiate growth
projections.
Projected expenses
Companies tend to spend more time analyzing revenue streams and less time evaluating the
cost structure required to support those revenue streams. Thoroughly analyzing our
company's existing expense structure is crucial in developing a good baseline that can be
For many small businesses, two of the most significant categories of expenses are labor and
overhead.
When projecting labor costs, be sure to take into account the impact of such items as
insurance and taxes, employee turnover, annual compensation adjustments, and overtime pay
so that you're less likely to underestimate total costs. If we're projecting significant growth,
it's a good idea to quantify the capacity of current staff levels and identify the incremental
Overhead consists of expenses that are incurred but are not directly tied to a specific
customer or sale. Overhead typically includes items such as rent, insurance, utilities, and
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need to be factored into the profit projection. Pay particular attention to these indirect
expenses, because it's easy to underestimate the impact that these overhead costs have on the
profitability of a product or service. After we identify expense items, categorize the items as
Fixed expenses- these are costs that are incurred regardless of sales levels for example,
Variable expenses- These are costs that generally increase or decrease based on sales
Breakeven analysis
After we have created a profit projection, analyze sales and cost figures under different
operating scenarios to determine breakeven levels. A breakeven level is the minimum sales
level that is required to cover projected expenses. This analysis is useful for all firms,
reevaluate pricing and expense assumptions to ensure that they're reasonable. For example,
variable costs, such as direct labor, might be reduced over time as our company becomes
more efficient at producing our particular product or service. Cost estimates need to reflect
these savings.
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Because of unpredictable and constantly changing economic conditions, it's a good idea to
develop several different breakeven scenarios. The results of these various scenarios provide
valuable data that can help us make more informed short-term and long-term decisions.
Strength : 20 mg
Profitability Grade : B D
36
In ACME, Accounts and Costing Department is responsible for profitability analysis of new
products. For Pantoprazole, they found that if the products MRP (Maximum Retail Price) is
fixed at 4.00 taka per tablet then it will be more profitable than MRP 3.00 taka per tablet. For
Taka 4.00, cost will be 59.27% of unit trade price (TP), whereas for Taka 3.00 it will 79.20%.
MRP is an independent value. Trade Price (TP) and VAT are calculated as below-
TP = 75.5% of MRP
VAT = 16.5% of TP
Finally, Costing department concluded that this specific product has a profitability grade of
B if price is 4.00 taka and D, if price is 3.00 taka per tablet. Management will decide later
what will be the price of the product. If the price is fixed by government, then the
management will take decision based on the findings of costing whether to launch the
5.5.
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In this stage, all three steps can take place simultaneously.
Drug Administration (DDA), governments legislative body for Drug and Medicine. As a part
of registration, one must submit the recipe of the drug for approval from the Drug
initial stage of NPD, each product is given a temporary name, final name is given at later
stage. In brand name selection process, each executive of the PMD is given a proposal sheet.
The sheet contains some common information regarding the product which may help the
executives to propose a name. One may propose as many names as one likes. Available
brands of the competitor are also included in the proposal so that the new name does not
overlap with an existing name of the competitors. Overlapping names may confuse
physicians during writing prescription. Moreover, it may create problem during approval of
the new product from Drug Administration. Drug Administration does not approve same
After collecting all the proposal sheets it was seen that a bunch of brand names has been
proposed like ACNIL, PANTADIN, TORA, TOZO, TOPRA, PAPA, PNP, PENTALOCK,
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PENTA-A, PROTOLE, NOCID, PROTOCID, PTR, ACILOC, PANPRA, PAZOLE,
PANTOSEC, PENSEC, PANTOSEC, PIPRA and many more. The assigned executive then
selects a few names, four or five, among these names. Top management then selects one of
Executive presents his/her new product to the higher management. In the presentation, he/she
advocates for the product by showing rationale to launch the product. The presentation
usually consists
- Dosage and Administration of the drug (when and how the drug can be taken)
- Contraindications (In which physical condition the drug can not be applied)
39
- Present market scenario, it may include-
> Prescription survey report (taken from internal source like MKSD-
Switzerland)
- Sales forecast-monthly, quarterly and yearly (cumulative forecast of the sales team)
Available Dosage
Form and Strength : Tablet/Capsule 20 mg
Tablet/Capsule 40 mg and
Injection 40ml /10ml vial
40
Dosage form Unit price in Pack size Profitability
Taka grade
Capsule 20mg 3 10x4s D
Capsule 20mg 4 10x4s B
Capsule 40mg 5 5x4s D
Capsule 40mg 7 5x4s B
Injection 40mg/10ml vial 70 Single pack B
Injection 40mg/10ml vial 70 Single pack with syringe D
Pantoprazole is a proton pump inhibitor. Like other Proton pump inhibitors this generic also
have a good market share. Previously it was management decision not to launch
Brand leader of pantoprazole (Pantonix, INCEPTA) has market of 24.6 crore/year (Daily
So company may proceed further to launch Pantoprazole. It may earn good revenue for
the company.
41
Maintenance and healing of Reflux esophagitis
Gastric Ulcer
Duodenal Ulcer
Zollinger-Ellison Syndrome
42
Table 5.7: Dosage and Administration of Pantoprazole
43
Condition Pantoprazole Omeprazole Lansoprazole
Dosage form
SL Brand Name Company
and strength
1 PANZ Tablet 20 & 40 mg ACI Limited
2 PANTOPRA Tablet 20 & 40 mg Alco Pharma Limited
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Table 5.11: Market Share (b)
45
Sales forecast from Sales Team
Product Total Units/Month Total Tk./month
Pantocap 20 668640 2353612.8
Pantocap 40 118460 728529
Pantocap Inj. 7176 441682.8
Total 3523824.6
After presentation, if the management is satisfied with the business potentiality of the
5.6.
Before preparing the marketing mix Product Positioning, Unique Selling Proposition (USP)
PROTOCID is an effective antiulcerant drug which provide round the clock relief from
Gastroesophageal Reflux Disease (GERD) and Non-ulcer Dyspepsia (NUD) and which will
46
5.6.2. Target Doctors:
All GPs and specialists except pediatricians and loyal Protocid (ACMEs brand name of
targeted.
5.6.3.1. Product:
which are approved by USFDA or included in the BNF are only approved by DA. Product
quality before the introduction and periodically after the introduction checked and approved
by the DA. So, many manufacturers market the same generic by different brand name. No
generic research occurs in Bangladesh. Raw materials are also imported from different
countries except few antibiotics and paracetamol. Bangladeshi companies mostly produce
47
E. Strength: 20mg & 40mg
F. Pack Size: 510 Tablets in alu-alu blister strips.
G. Major Indications: Gastric ulcer, Duodenal ulcer, Gastro Oesophageal Reflux
Disease (GERD), ZollingerEllison syndrome (ZES) and
other hypersecretory conditions
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Figure 5.3: Prescribing Info: PROTOCID
Description Contraindications
Pantoprazole is chemically a novel It is contraindicated in patients with known
substituted benzimidazole derivative, which hypersensitivity to Pantoprazole.
suppresses the final step in gastric acid Precautions
production by forming a covalent bond to Patients should be cautious that
two sites of H+-K+ATPase enzyme system at Pantoprazole tablets should not be spilt,
the secretory surface of the gastric parietal chewed or crushed.
cell. This leads to inhibition of both basal Use in Pregnancy and Lactation
and stimulated gastric effect that persists There are no adequate or well-controlled
longer than 24 hours. Pantoprazole is studies in pregnant women. Pantoprazole
quantitatively absorbed and its should be used during pregnancy only if
bioavailability does not change upon the potential benefit justifies the potential
multiple dosing. Pantoprazole is extensively risk to the fetus.
metabolized in the liver. Almost 80% of an It is not known whether Pantoprazole is
oral dose is excreted as metabolites in excreted in human breast milk.
urine; the remainder is found in feces. Pantoprazole should be used during
Indications lactation only if the potential benefit
PROTOCID is indicated where suppression justifies the potential risk.
of acid secretion is of therapeutic benefit. Adverse Effects
Pantoprazole is registered in the following No potentially life-threatening effects have
indications: been reported with Pantoprazole.
Peptic ulcer diseases (PUD) Symptomatic adverse effects include
Gastro-esophageal reflux diseases headache and diarrhea are two common
Treatment of ulcer resistant to H2 blocker reported adverse effects. Peripheral edema
Treatment of ulcer induced by NSAIDs has been occasionally reported in female
GI bleeding from stress or acid patients. Other side effects may include
Peptic diseases abdominal pain, dizziness, nausea,
Eradication of Helicobacter pylori epigastric discomfort, flatulence, skin rash,
Zollinger-Ellison syndrome pruritus etc.
Prophylaxis for acid aspiration syndrome Drug Interactions
During induction of anesthesia There is no interaction with concomitantly
Dosage and Administration administered antacids. No dosage
The usual recommended adult oral dose is adjustment is needed with combination use
40mg given once daily, preferably in the of the following drugs: T h e o p h y l l i n e ,
morning with or without food. The duration C a ffeine, Diazepam, Digoxin, Ethanol,
of therapy is ranging from 2-8 weeks. Metoprolol, Nifedipine or Warfarin.
Duodenal ulcers : Pantoprazole 40 mg Commercial Pack
tablet once daily for 2-4 weeks PROTOCID 20 tablet : Box containing 50
Gastric ulcer : Pantoprazole 40 mg tablet tablets in 5 x 10s Alu-Alu form packs. Each
once daily for 4-8 weeks tablet contains Pantoprazole Sodium
Reflux esophagitis : Pantoprazole 40 mg Sesquihydrate INN equivalent to
tablet once daily for 4-8 weeks Pantoprazole 20 mg.
Ulcers induced by NSAIDs : Pantoprazole PROTOCID 40 tablet : Box containing 50
40 mg tablet once daily tablets in 5 x 10s Alu-Alu form packs. Each
Maintenance therapy : M a i n t e n a n c e tablet contains Pantoprazole Sodium
therapy should involve the lowest effective Sesquihydrate INN equivalent to
dose of the drug. Pantoprazole both 20 mg Pantoprazole 40 mg.
& 40 mg doses are safe and effective in Manufactured by
maintaining patients with healed reflux ACME LABORATORIES LTD.
esophagitis and PUD in remission. DHAKA, BANGLADESH
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5.6.3.2. Pricing:
As a regulated market, price of pharmaceutical products are also controls by the DA. There
are two pricing options one is MRP (Maximum Retail Price) which are fixed and companies
can not exceed the set price for the drugs of same generic, another is IP (Indicative Price) in
this case price can be increases than the existing products prices through DA approval with
proper explanation.
In case of new product the manufacturer with DA approval selects price. Price of
pharmaceutical products mostly depends on the price of raw materials in the international
market and the cost involve with the product. At present huge promotional cost further
PROTOCID price is fixed on MRP. Each tablets retail price is 4 taka only. Competitors
have the same price for this generic, so Drug Administration fixed the price at four taka. The
price of PROTOCID is very reasonable as far as the quality of the product is concern.
Moreover to gain large market share within short span of time it is essential to focus on
quality packaging, quality product and reasonable pricing. Since we have other antiulcerant
products, the organizations monetary & human resources are adequate and we have strong
supply chain as it is going for forward integration, the variable cost is low. Thus leadership in
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5.6.3.3. Promotion:
prohibited here. Only the information based promotion is allowed. Pharmaceutical market is
consisting of very high skilled professional marketers. With the change of time new
promotional stools in different presentation is introducing in the market. Once upon a time
literature and pad was the usual promotional items, now it has been changed to varieties
The theme of ACMEs Marketing is to care for its customers and this responsibility doesnt
lie only on the shoulder of Marketing Department rather all the companys departments work
together to serve the customers interests. And by the customers we dont mean only the
external customers, but also the internal customers i.e. our employees. Thus we always thrive
Sales Department
Distribution Department
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Product Management Department
Product Management Department lies in the center of all marketing activities. A dedicated
team of twenty five people with solid professional background comprising Pharmacists,
Biochemists, Microbiologists, MBAs and Medical Graduates work in this department. They
formulate the strategies to uphold the market share of companys products, select and
introduce new products to keep the company growing and develop promotional materials for
Sales Department
The sales department lies as an important part of marketing as they do the implementation
part of all strategies. Today because of the high level of competition, the sales team of ACME
has been designed as the best that a pharmaceutical company can strive for. It represents a
unique mix of around 1400 experienced professionals with solid background in sales of
medicines. Due to their devoted efforts many of the companys products today hold the
52
leadership positions in their respective therapeutic classes. Team spirit remains as the key to
Training Department
Training of the Field forces is an obligatory part of the pharmaceutical marketing. In ACME
field forces are trained both at the time of joining and in the job continuous training (Short
course training). Before of joining, field forces are required to pass comprehensive one
month long training on the products and related physiology, and pathology of the diseases.
Medical Services Department (MSD) has been contributing & actively participating in
various Medical Scientific Seminars / Clinical Meetings, Intern Doctor Reception Programs
& CME programs throughout Bangladesh. MSD not only play a vital role in coordinating,
conducting & presenting in scientific seminar but also create tangible media of information
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& communication (like, Health Inquest; ACMEs News Letter, ACME Sashthaya Katha,
Medical Booklets; Leaflets; Information cards; and decoration appliances for seminars etc.),
which help to project product profile, companys image, and corporate identity to the medical
with the key opinion leaders of medical profession of different specialties for exchanging
views that would certainly bring good results for the organization to go ahead.
The Market Research Team conducts prescription audit throughout the country to find out the
prescription behavior of the doctors, which acts as the major guide for formulating marketing
strategies.
Several types of promotional materials has been provided to inform the benefits of our
Physicians sample
Literature
Pad
Gift
Booklet
54
Sticker
Danglar
Medical Journal
Newsletter
All of the various tools available to marketing managers for promotional activities constitute
5.6.3.3.3.1. Advertising
for medicinal products. Considering these factor pharmaceutical products can be advertised
in daily news papers This type of advertisement contains only the launching new alone with
Advertise in medical journals and souvenirs: Products feature, benefit, getup and other
things are free to advertise in medical journals and souvenirs to reach the target doctors.
and sticker in the doctor chamber, in the hospitals and in the chemist shops. Sticker is a small
printing promotional item, especially for the doctors and chemist and for the customer to
55
remember the name of the product with the main message of the product. Poster is larger than
sticker.
Launching program: This arranged for some products, with the presence of renowned
Customer promotion
In personal selling of pharmaceutical products the medical representative visit the physician
The product information literature: Literature is a type of promotional items used for the
pharmaceutical products contains all the related information with color and design. This
literature is detailed to the target doctors by the Medical Representatives. Literatures contain
all the prescribing information. A literature is introduced on a theme related to the products
feature or advantages
Writing pad with product information: This type of pad is provide to the doctor to write
Free sample: Free sample is a good promotional item. Medical representatives provide free
samples to the doctors in their regular visit. Doctors are requested to use these samples to
their next patients, if the patient gets satisfactory result, the doctor is then requested to
Doctors, gift of varieties types: This is now a very common promotional item. Gifts of
various types with product name are given to the doctors in pursue to write the products.
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Scientific seminars and PC conferences: In this seminar different research out comes and
some post-marketing patient responses are discussed. Scientific seminars are arranged mainly
in the medical colleges. PC conferences are the conferences in attendance of the Palli
In all the cases the medical representative directly requests the physicians to prescribe their
Chemist promotion:
Field persons try to maintain a good relation with the chemist. In pharma business chemist is
a very important player. So without keeping good relation with chemist none can do business
here.
Incentives for the field forces: The Medical Representatives are offered a cash incentives on
their monthly and quarterly target achievements. The discount incentives also offered to the
chemists on a minimum amount of order. These amounts are selected as per company policy
in different times.
Cash and quantity discounts: The discount incentives also offered to the chemists on a
minimum amount of order. These amounts are selected as per company policy in different
times.
Free samples: Some times free samples are offered to the chemists to faceplate their sales.
As a bad practice most of the chemist demand free samples during giving order.
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5.6.3.3.3.4. Public relation
Promotion through public relation is prohibited and ineffective for pharmaceutical products.
There is no OTC (Over the counter drug) list in our country. So it is DAs direction to sales
Countrywide meeting: Countrywide meeting with the healthcare professionals are arranged
Press articles: Articles are published in the daily newspapers discussing the health issues,
5.6.3.4. Place:
Place means the distribution of finished goods from the manufacture warehouse to the
chemist shop. In pharmaceuticals most of the companies have their own distribution system
with depot in major cities. Availability of drug in the chemist shop near the prescription
center is necessary, because doctors become annoyed if patients do not find the drug
available and further prescription hampered. So, most of the companies maintain strong
distribution system for smooth flow of the drug throughout the country.
To make its quality products available at every corner of the country, ACME has
58
A strong distribution network comprising 18 depots throughout the country and
the specialized distribution team to distribute the products among this region.
A fleet of vehicles comprising delivery vans, three wheelers etc. are engaged in
B A N G L A D E S H 59
Figure 5.6: ACME covers the whole country through their self-distribution channel
with 18 depots throughout Bangladesh
5.7.
Packaging is a crucial part for a new product. In pharma industry, power of the business is in
the hands of physicians and chemists (retailer). Ultimate consumer has much less power in
buying decision. The people who make the buying decision usually do not consume the
product. In this instance packaging plays a critical role. A good packaging always attracts the
customer.
Generally there are three level of packaging for a pharmaceutical product. Primary,
secondary and tertiary packaging. The primary packaging is most essential for the drugs
quality and efficacy. If the drug is capsule or tablet then the packaging is done with alu- alu
blister or alu-plastic blister. The secondary packaging is for protection from environment. It
is usually made with paper box. And the tertiary packaging is done with hard paper,
For a tablet, an executive has to prepare four designs with the assistance of a graphic
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Care should be taken for the information, spelling and alignment of the text on the package.
Length, width and height of each package should be specified in the design. Packing material
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5.8.
ACME has its own manufacturing license which is commonly told DML or Drug
Manufacturing License. DML is a number given by Drug administration (DA). For ACME, it
is 250 & 115. Each new product needs to be included in this DML before commercial
production. This is called Inclusion. Inclusion is a kind of registration for any new product.
submitted to DA for Inclusion along with Recipe approval letter, Stability Data Sheet of the
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product, dummy of packaging and inner leaflet, particulars of the QA Manager and Plant
Manager, specific fee for license and sample of the product for chemical analysis. If all
conditions are met, the product will get a DAR no (Drug Administration Registration
Number) which will be published in an Annexure issued by DA. This DAR no must be
application. DA then issues a notice to the company with fixation of the price.
5.9.
Before going to final commercial production, a three month production forecast has to be
prepared so that demand does not exceed supply. Product shortage immediate after launching
is a serious issue. This incident may harm product life cycle. So a scientific production
forecast is crucial. Sales forecast, market condition and industry condition should be taken
into account during preparation of production forecast. Usually first month production is to
be higher than later months because of higher market demand. This demand is created by the
field force.
63
Protocid 20 tablet Commercial 735000 613000 613000
Physicians Sample 160000 130000 130000
Protocid 40 tablet Commercial 100000 95000 95000
- A literature
- Physicians sample
Protocid 20
Literature
sample
FP Group Base FP Qty.
Per FP Per FP
allocation (cc) allocation (Unit)
Group A Metro (Dhaka City) 74 0 0
Metro (Ctg. City) 17 0 0
Metro (Others) 34 0 0
Urban 42 0 0
Group B Metro (Dhaka City) 74 60 32
Metro (Ctg. City) 17 55 30
Metro (Others) 34 50 28
Urban 42 45 26
Group G Metro (Dhaka City) 62 50 30
Metro (Ctg. City) 14 45 28
Metro (Others) 37 40 26
Urban 173 35 24
Rural 442 35 22
Buffer Metro (Dhaka City) 35 50 30
Metro (Ctg. City) 4 45 28
Metro (Others) 25 40 26
Urban 5 40 26
Area Manager 141 0 10
Regional Sales Manager 24 0 10
Total 1296 38830 25604
Table 5.15: FP wise sample and literature allocation of Protocid at launching month.
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(Note: FP- Field personnel, CC- Cache cover, Ctg.-Cittagong
In ACME FPs are divided into four groups. FP who has target for all product is in group G, who has target for
half of all products is either in group A or group B. Therefore, a product must have a target for group G and
either group A or B. Buffer group concentrate on some specialized product.)
5.10.
Production unit is ready for production, literature is complete, gift item is ready, allocation of
sample and gift item is final, marketing strategy is finalized, all forecasts have been finalized.
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Now the product is ready to launch. After a final checking of all the necessary activities, and
doing any needful revisions, a launching date is fixed, usually at starting of a month.
5.11.
A field personnel must have a target and an action plan for the newly launching product. An
action plan generally consist some basic product information, positioning of the product, the
way of presenting the product in front of a physician with the help of a literature (literature
detailing), a picture of the total market size for this generic, individual market size of
competing brands and type of target doctors for this product. Immediate before launching, a
general marketing circular is issued mentioning the name, price, target and objective of the
product.
5.12.
After three months of launching the product, customers comment, specially physicians
the whole country. This interview is done through a structured questionnaire where doctors
put their comment mainly on taste, efficacy, patients complain and side effects of the
medicine. The feedback are then compiled and analyzed. Corrective actions are taken if it is
67
Chapter 6: Recommendations and Conclusion
68
New alternative promotional strategy and items can be introduced.
Chapter 7: Bibliography
Books:
2. GRIFFIN, RICKY W. Management, (Boston: Houghton Mifflin Company, 2005), 8th ed.
Irwin, 2005)
4. Churchill, G. A., and Peter, P. J. (1995). Marketing: Creating Value for Customers. Boston:
Irwin.
5. ims 4Q/2008
Website:
1. http://www.bnet.com/2410-13240_23-57049.html
2. http://www.acmeglobal.com
3. http://www.learnmarketing.net/npd.htm
4. www.ddabd.org
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Time 10.45 am on 21.04.10
5. www.epb.gov.bd
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