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Chapter1: Introduction

1.1 Origin of the Paper

This report entitled as New Product Development in ACME. has been prepared with a

view to provide a clear concept of introducing a new product in a pharmaceutical company of

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

work, students are required to undergo a 90 days internship followed by submission of a

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

and other pharmaceutical industries in Bangladesh. I had to maintain confidentiality and

expose only what I am entitled to.

1.2 Objectives of the study

Main objective of the study is to unveil the steps involved in introducing a new product in

The ACME Laboratories Ltd. Specific objectives are-

to get an idea of Pharma Industry in bangladesh

to analyze pharmaceuticl marketing in Bangladesh

to analyze formulation development

to analyze raw material sorcing

to analyze profitability analysis of a pharmaceutical product

to know the roles of regulatory body in introducing a new product

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to exemplify brand name selection procedure of a new product

to analyze marketing mix for a new product

to analyze packaging steps

to analyze promotional mix

to illustrate New Product Development (NPD)

1.3 Scope of the study

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

organization in introducing a new product.

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,

Export Promotion Bureau, and websites of different pharmaceutical companies.

1.5 Limitation of the Report

There were some limitations in preparing this report, these ares-

Company secrecy or confidentiality of information of ACME.

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

2.1 New Product Development (NPD)

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

product development. These stages will be discussed briefly below:

2.1.1. Stage 1: Idea generation

New product ideas have to come from somewhere. But where do organisations get their ideas

for NPD? Some sources include:

Within the company i.e. employees

Competitors.

Customers

Distributors, Supplies and others.

2.1.2. Stage 2: Idea Screening

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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.

2.1.3. Stage 3: Concept Development and Testing

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

a working prototype at this stage.

2.1.4. Stage 4: Marketing Strategy and Development

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.

2.1.5. Stage 5: Business Analysis

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

product may achieve and the expected life of the product.

2.1.6. Stage 6: Product Development

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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.

2.1.7. Stage 7: Test Marketing

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

modified before national launch.

2.1.8. Stage 8: Commercialization

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

launched, will there be a national roll out or will it be region by region?

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Chapter 3: Pharmaceutical Industry in Bangladesh

3.1 Back ground of pharmaceuticals 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

Ordinance-1982, the development of local industries accelerated. The professional

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

strength of this sector. Pharmaceutical sector of Bangladesh, now growing at an average 10

%, 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.

3.2 History pharmaceutical Industry in Bangladesh

Bangladesh Association of Pharmaceutical Industries (BAPI), the stalwart association of

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

pharmaceutical industry. The pharmaceutical industry in Bangladesh has introduced new

dosage forms, inhalers, nasals sprays, insulin, soft gelatin and had gelatin liquid fills

capsules, IV fluids, sustained release dosage forms and suppository technology in

Bangladesh in the last few decades.

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

sector in this country.

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

Pharmacopoeia and US Pharmacopoeia. In recognition of that consistent emphasis on quality,

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

almost 120000 skilled personnel power the industry.

3.3 Pharmaceutical industry current status

Manufacturer

1Local players dominate present market.

2Local companies 87 %

3Multinational companies 13 %

4Out of top 10 players, 9 are local and only 1 is MNC (Sanofi-Aventis)

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

Bangladesh pharmaceutical industry has recently started the production of Active

Pharmaceutical Ingredients (APIs). At present, 21 different companies manufacture 41 such

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

80% of its pharmaceutical raw materials from aboard.

3.4 Pharmaceutical companies in Bangladesh

At present there are 749 registered local pharmaceutical companies and 20 multinational

pharmaceutical companies in Bangladesh. No. of registered brand is 69348.

No. of No. of registered No. of Drugs


Types
Companies drugs shops
Allopathic 245 13500 68850
Unani 295 1400 37
Ayurvedic 204 3250 162
Homoeopathic 77 810 299
Total 821 18960 69348
source: www.ddabd.org

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Table 3.2: Number of pharmaceuticals in Bangladesh

3.5 Market trend and status in Bangladesh

3.5.1 Past market trend analysis (1971-2000)

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.

3.5.2 Present market trend (2001-2009)

Present market trend of pharmaceuticals of Bangladesh has many distinctive characteristics

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

promotion and doctors are capitalizing this very shamelessly.

Market size changes in the last few years-

Year Market size in crore Tk. Growth %


2008 4,702 6.68
2007 4,407 12.37
2006 3,922 16.00
2005 3,381 15.00
2004 2,874 11.00
Table 3.3: Changes in market size from 2004 to 2008

Fig: 3.2 Market size from 2004-2008

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Fig: 3.3 Market growth trend from 2004-2008

3.5.2.1 Top manufacturers

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

multinational companies were the leaders.

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%

Fig: 3.4 Market share of top 10 companies in 2008

3.5.2.2 Top molecules

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

scientist called it unjustified.

Sl. Market size in crore Tk.


No Generic
. Year 2008 Year 2007 Year 2006
1 OMEPRAZOLE 280 247 170
2 RANITIDINE 209 228 209
3 CALCIUM 181 157 131
4 COLECALCIFEROL 175 148 101
5 ASCORBIC ACID 174 163 135
6 CIPROFLOXACIN 170 169 140
7 VITAMIN E 144 135 102
8 CEFIXIME 141 114 83
9 MAGNESIUM 133 127 107
10 PYRIDOXINE 131 118 86

Table 3.5: Top ten molecules

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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

brands antiulcerants have 10 brands.

Sl. Sales in crore taka


Brand Name Manufacturer
No. Year 2008 Year 2007
1 SECLO Square 68 57
2 NEOTACK Square 48 50
3 NEOCEPTIN R Beximco 47 48
4 CIPROCIN Square 46 46
5 LOSECTIL Eskayef 40 45
6 NAPA Beximco 35 41
7 PANTONIX Incepta 35 32
8 CEF-3 Square 34 25
9 LEBAC Square 29 29
10 RANITID Opsonin 28 21

Table 3.6 Top ten brands in pharmaceuticals industry in Bangladesh

3.5.3 Future market analysis (2010-2020)

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

from the past few years sales trend.

Sales value in Growth %


Year Comments
crore Tk.
2010 5697 8
2011 6120 7
Forecasted sales obtained from the past sales
2012 6564 7 values by linear regression.
2013 7043 7
Forecast= Independent variable*slope + Intercept
2014 7466 6
2015 7916 6
Independent variable X = Year
2016 8370 6 Dependent variable Y = Export earnings
2017 8818 5
2018 9259 Slope and Intercept obtained from the
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dependent and independent variables.
2019 9712 5
2020 10159 5

Table 3.7: Future market size

3.6 Export market

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

enormous export opportunities.

At present Bangladesh exports formulated medicines about 71 countries in the world. Some

of the countries names are mentioned below:

Afghanistan, Austria, Belize, Belgium, Bhutan, Botswana, Brazil, Cambodia, Canada,

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,

Mozambique, Myanmar, Nepal, Netherlands, New Zealand, Norway, Russia, Nicaragua,

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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,

UAE, Ukraine, U K, USA, Venezuela, Vietnam, Yemen, Zimbabwe etc.

Summary of export status

Export in cr. No. of countries where


Year Growth %
Tk. we export
Table
2008 313 10 71
3.8:
2007 285 7 67
Export
2006 266 61 65 status
2005 165 10 62 from
2005-
2008

We can also assume the export earnings of the next few years from the past few years sales

trend using the statistical method.

Export earnings Growth %


Year Comments
in crore Tk.
2010 397 6 Forecasted sales obtained from the past sales
values by linear regression.
2011 441 11
Forecast= Independent variable*slope + Intercept
2012 482 9

2013 516 7 Independent variable X = Year


Dependent variable Y = Export earnings
2014 559 8
Slope and Intercept obtained from the
2015 597 7 dependent and independent variables.
Table 3.9: Assumption of export earnings (2010-2015)

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Chapter 4: About

4.1 Organization History

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,

Information Technology Services, Aviation Services, Packaging Services, Trading services,

C& F services, Apparels and more.

4.2.1 The ACME Laboratories Ltd.

The ACME Laboratories Ltd. is the second largest manufacturer and exporter of Human,

Herbal and Animal Health Pharmaceutical Products in Bangladesh.

4.2.2 ACME Agrovet and Beverage Ltd.

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.

Figure 4.1: Products of ACME Agrovet & Beverages Ltd.

Mango Juice
ACME Spices
250ml

Mango/ Orange
ACME Tea
Juice 150ml

Mineral Water

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4.2.3 ACME IT Ltd.

ACME IT Ltd. is an information technology service company offering software

development, web development, multimedia presentation, IT consulting, software export,

software marketing, network solutions, training and education, and more.

4.2.4 MARS group

MARS Group is an aviation services company offering computer reservation system, travel

agent services and a ticketing tour operator.

4.2.5 Sinha Printers

A printing and packaging company offering medicine carton printing, label printing and all

other quality printing operations.

4.2.6 AMBE Clearing Ltd.

A service-oriented business organization offering efficient custom clearing and forwarding

services.

4.3 The ACME Laboratories Ltd.

The ACME Laboratories Ltd. is the second largest manufacturer and exporter of Human,

Herbal and Animal Health Pharmaceutical Products in Bangladesh. It is an ISO 9001:2008

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

class, which includes Broad-Spectrum Antibiotics, Vitamins, Haematinic, Antidiarrhoeal,

Antiallergics, Antispasmodic, Tranquillizers, Analgesics, Antacids, H2-Blockers,

Anthelmintics, Anti-diabetic, Antituberculosis, NSAIDS, etc. all made to uncompromising

international standards of precision and care, through up to date technology and meticulous

quality control.

4.3.1 Vision of The ACME Laboratories Ltd.

ACMEs vision is to ensure Health, Vigour and Happiness for all.

4.3.2 Mission statement

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

doctors, customers, employees and with the environment.

4.4 Management executives

Chairman: Nasir-ur Rahman Sinha

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

having vast entrepreneurial foresightedness of business. He is also the Chairman of "Sinha

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

Ltd" and "The ACME Agrovet and Beverage Ltd."

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

connected with many socio-cultural and philanthropic organizations.

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

Deserving (SFD), a non-profit organization, for rehabilitating the disabled of Bangladesh.

Managing Director: Mizanur Rahman Sinha

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

companies are export-oriented in scope.

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

infrastructure, construction of schools and building roads.

Deputy Managing Director: Afzalur Rahman Sinha

Deputy Managing Director: Jabilur Rahman Sinha

4.5 Organization chart

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

team as well. There are six division of ACME this are-

Technical Davison

Marketing Division

Information Technology Division

Sales and Distribution Division

Finance Division

Human Resources Division

4.5.1. Technical division

ACMEs modernized plant is located at Dhamrai, about 40 km N. W. of dhaka, the capital of

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

equipments and machineries. As a whole, ACMEs plant is a testimony to its basic

commitment for manufacturing the highest obtainable standard of ethical drugs.

Figure 4.2: Court de la ACME; ACME Corporate building at kallayanpur

4.5.2. Marketing division

Marketing division is the main driving force and controlling for any selling organization.

ACMEs Marketing division consists of Product management department, Marketing

services department, Marketing support department.

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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

updated product and medical information.

Marketing support department performs all the supportive work of marketing.

4.5.3. Information technology (IT) division

IT division consists of the system support department, software department and data

management department performs all the technical support job and data management

function.

4.5.4. Sales and distribution division

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

from the depots.

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4.5.5. Finance division

Finance division consists of accounts department, costing and audit department performs all

the financial activities and maintains the accounts of the company.

4.5.6. Human resources division

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

and professional development.

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.

4.6 Products and services of ACME

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

available in the country like-

Tablet Powder

Capsule Syrup

Dry syrup Suspension

Injection Inhaler (MDI)

Liquid Inhaler (DPI)

Eye/Ear/Nasal drops Suppository


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Chapter 5: New Product Development in ACME

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

resources to the project.

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.

However, in pharma industry product development means research and development of a

new drug. So to omit confusion New Product Development is rather termed as New Product

Launching for pharmaceutical industry.

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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

Stage 1: Product Identification and Product Selection

New product development (NPD) in pharmaceutical industry in Bangladesh is quiet different

from those of consumer market. In pharma industry, NPD starts from Product identification

and Product selection by PMD (Product Management Department) personnel. PMD in

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.

Stage 2: Formulation Development

After getting approval from higher management, a product data sheet along with a marketing

brief is send to Product Development Department (PDD) for formulation development.

Pharmaceutical formulation is the process in which different chemical substances, including

the active drug, are combined to produce a final medicinal product. Formulation studies

29
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

with these other substances.

The product data sheet is usually used for technical communication to describe technical

characteristics of an item or product. It can be published by the manufacturer to help people

choose products or to help use the products. By contrast, a technical specification is an

explicit set of requirements to be satisfied by a material, product, or service.

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,

category of the drug-whether it is an anti-infective or antiulcerant. Physical appearance of the

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

30
box. And the tertiary packaging is done with hard paper, commonly known as carton. All

three packaging should be specified in the marketing brief.

A tentative unit price of the tablet, market size of the drug and leading brand of this generic is

also included in the marketing brief.

Marketing Brief of Protocid

Generic Name : Pantoprazole

Proposed Brand Name : Panto-A (Actual brand name will be selected after

submission of recipe)

Dosage form with strength : delayed release tablet, Pantoprazole 40 mg

Category of drug : Antuiulcerant

Physical Appearance : Light blue colored, round shape with concave

surface tablet

Primary packing : Alu-Alu blister pack

Secondary Packing : Printed carton with 300 GSM white back duplex /

Chromolex/ Swedish board

Packed Product Description : 5 X 10 tablets in a carton with a product

information leaflet

Tentative Unit Price : 5.00 tk. Per Tablet

Market Size : N/A

Brand Leader : Pantonix (Incepta)

31
5.3.

Stage 3: Raw Material Sourcing

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

lowest bidder got the purchase order.

5.4.

Stage 4: Profitability Analysis

Profitability Analysis is an analysis of costs and revenue to determine whether or not a

venture will make a profit, and, if so, how much. This is important information in deciding

on whether to make an investment.

Develop a profit projection

32
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

structured approach and the appropriate tools to accomplish the task.

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

to thoroughly review the results of this analysis.

Assumptions- Assumptions are at the heart of every financial projection and determine the

usefulness of those projections. A considerable amount of time should go into developing

these assumptions, and we need to review them thoroughly. In addition, assumptions should

be clearly identified as such, and we shouldn't hesitate to modify them as needed to

accommodate different business scenarios or to reflect real-world experience.

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

attainable sales levels and develop unrealistic profit projections.

When developing revenue projections, start with these steps:

33
Identify repeat or recurring revenue sources because our company has a history with these

customers, we can develop assumptions based on historical purchasing patterns.

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

used to project future expense levels.

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

costs required to meet growth targets.

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

administrative expenses. Expected increases in overhead expenses, such as a rent increase,

34
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

either "fixed" or "variable."

Fixed expenses- these are costs that are incurred regardless of sales levels for example,

rent, electricity, and fixed wages.

Variable expenses- These are costs that generally increase or decrease based on sales

volumes, such as cost of goods sold and cost of direct labor.

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,

because it helps to determine revenue thresholds.

Often, breakeven analyses result in aggressive revenue requirements. In these cases,

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.

Look at a variety of scenarios

35
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.

Table 5.1: Profitability analysis of Pantoprazole

Product name : Pantoprazole

Strength : 20 mg

Product category : Capsule

MRP-Tk 4.00 MRP-Tk 3.00

A) Cost of Raw Material : 1.30 1.30

B) Cost of Packing Material : 0.40 0.40

C) Total Material Cost (A+B) : 1.70 1.70

D) Normal Loss (5%) : 0.09 0.09

E) Total (C+D) : 1.79 1.79

Unit cost (E) : 1.79 1.79

Trade Price : 3.02 2.26

VAT : 0.50 0.37

Indicative /MRP with VAT : 4.00 3.00

Cost/Trade Price (%) : 59.27 79.20

Trade Price : Cost : 1.69 1.26

Profitability Grade : B D

Yearly sales Forecast (Qty) : 7,113,560 Pcs 7,113,560 Pcs

Yearly Sales Forecast (Trade Price) 21,482,951 Tk. 16076645 Tk.

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

product or not. Profitability grade is designed here as following way-

Cost/TP (%) Profitability Grade


40-49 A
50-59 B
60-69 C
70-79 D
80-89 E
90-100 F
Table 5.2: Criteria for profitability grade

5.5.

Stage 5: Recipe Approval, Brand Name Selection and Product Presentation

37
In this stage, all three steps can take place simultaneously.

5.5.1. Recipe Approval

Recipe is a written document of detailed manufacturing procedure of a drug. According to

Bangladesh government legislation, every drug needs to be registrar from Directorate of

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

Administration. This step is called Recipe approval.

5.5.2. Brand Name Selection

Brand name of a new product is selected by a systemic approach in ACME. Although, at

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

brand name or same sounding brand name with a competitor.

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,

38
PENTA-A, PROTOLE, NOCID, PROTOCID, PTR, ACILOC, PANPRA, PAZOLE,

PROZOLE, PULCER, QUINZOL, PANTOLE, PPIP, PANCER, TORAZOL, PPZ,

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

them. In this way Pantoprazole got the brand name PROTOCID.

5.5.3. Product Presentation

Simultaneously, another event takes place; Product Presentation. Respective Product

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

- Proposed dosage form of the drug (Tablet, capsule or Injection)

- Justification to launch the product (Financial or Marketing aspect)

- Pharmacology (Technical description)

- Indications (Diseases in which the drug is indicated)

- Dosage and Administration of the drug (when and how the drug can be taken)

- Precautions (for patients during using the drug)

- Adverse effects (What may happen if the drug is taken in overdose)

- Contraindications (In which physical condition the drug can not be applied)

- Drug Interactions (With which drugs this new drug interact)

- Comparative advantage over the same class of drugs.

39
- Present market scenario, it may include-

> Present competitor of this specific generic

> Prescription survey report (taken from internal source like MKSD-

Marketing Services Department)

> Prescription survey report (taken from external source like-IMS,

Switzerland)

- Sales forecast-monthly, quarterly and yearly

- Sales forecast-monthly, quarterly and yearly (cumulative forecast of the sales team)

Table 5.3: Product Information

Generic : Pantoprazole sodium

Therapeutic Class : Antiulcerant

Type : Proton pump inhibitor

Available Dosage
Form and Strength : Tablet/Capsule 20 mg
Tablet/Capsule 40 mg and
Injection 40ml /10ml vial

Table 5.4: Proposed Dosage Form

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

Table 5.5: Justification to launch the product

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

pantoprazole as we have better generic Esomeprazole. But 15 companies have all

Pantoprazole, Omeprazole and Esomeprazole preparations and another 10 companies have

both Pantoprazole and Omeprazole preparations.

Brand leader of pantoprazole (Pantonix, INCEPTA) has market of 24.6 crore/year (Daily

Prothom Alo: ref-ims )

So company may proceed further to launch Pantoprazole. It may earn good revenue for

the company.

Table 5.6: Indications of Pantoprazole

GERD(Gastro Esophageal Reflux Disease)

41
Maintenance and healing of Reflux esophagitis

Gastric Ulcer

Duodenal Ulcer

NSAID induced ulcer

P. pylori associated ulcer

Zollinger-Ellison Syndrome

Dyspepsia Or any other hyperacid secretory disorder.

42
Table 5.7: Dosage and Administration of Pantoprazole

Conditions Dose Frequency Duration

Usually recommended adult oral 40 mg Once daily 2-8 weeks


dose
Duodenal Ulcer 40 mg Once daily 2-4 weeks

Gastric Ulcer 40 mg Once daily 4-8 weeks

Reflux esophagitis 40 mg Once daily 4-8 weeks

In resistant ulcers 40 mg Once daily 8 weeks

Eradication of Helicobacter pylori 40 mg Twice daily in combination with 1 week


appropriate antibiotic

Zollinger-Ellison syndrome 20 mg Maximum 8 capsules per day Up to control acid secretion.

Prophylaxis for acid aspiration 20 mg Given at the evening before ----


syndrome during induction of surgery and repeated again in the
anaesthesia morning of surgery

Maintenance therapy 20 mg Once daily ---

Table 5.8: Comparative Advantages

43
Condition Pantoprazole Omeprazole Lansoprazole

Healing rates of esophagitis 93.5% 81.0% 90.7%

Decrease of heartburn 100% 89.6%, 82.4%,


Decrease of acid regurgitation 92.2% 75.0%,

Decrease of epigastric pain. 95.2% 82.6%,

Table 5.9: Market Information

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

3 PROTON-P Tablet 20 & 40 mg Aristopharma Limited


4 P-20 TABLET Tablet 20 & 40 mg Asiatic Laboratories Ltd.
5 Pantobex Tablet 20 & 40 mg Beximco

6 PANSEC Tablet 20 & 40 mg Drug International Ltd.


7 PANTOGEN Tablet 20 & 40 mg General Pharmaceuticals Ltd.

8 PANTO Tablet 20 & 40 mg Globe Pharmaceuticals Ltd.


Tablet 20, 40 mg &
9 PANTONIX inj. 40mg Incepta Pharmaceuticals Ltd.

10 PANTID Tablet 20 & 40 mg Opsonin Chemical Industries Ltd.

11 TROPAZ Tablet 20 & 40 mg Orion Laboratories Ltd.

12 Trupan 20 Tablet 20 & 40 mg Square


Capsule 20, 40
13 Pantogut 20 mg & inj. 40mg Popular

Table 5.10: Market Share (a)

44
Table 5.11: Market Share (b)

Table 5.12: Sales forecast (a)

Table 5.13: Sales forecast (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

product, furthers action are taken.

5.6.

Stage 6: Preparation of Marketing Mix

Before preparing the marketing mix Product Positioning, Unique Selling Proposition (USP)

and target doctors is specified.

5.6.1. Product positioning:

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

be promoted to doctors especially General Practitioners (GP) and Gastroenterologists.

Unique Selling Proposition (USP):

Once daily dosing for combined therapy of GERD and NUD.

46
5.6.2. Target Doctors:

All GPs and specialists except pediatricians and loyal Protocid (ACMEs brand name of

Pantoprazole) prescribers. Three doctors for every MR (Medical Representative) will be

targeted.

5.6.3. Marketing Mix

5.6.3.1. Product:

Products introduced in the Bangladesh needs to be approved by drug administration. The

market of Bangladesh is basically a formulation market. The products of international market

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

products of Painkillers, antibiotics and vitamins. Few companies manufacture products of

other therapeutic classes also.

A. Product Name: PROTOCID


B. Generic Name: Pantoprazole
C. Therapeutic Class: Antiulcerant
D. Dosage Form: Tablet

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

H. Dosage Regimen: Once daily


I. Price: 4.00 Taka per tablet

Fig 5.2: Commercial Pack

48
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

49
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

increases the price of the pharmaceutical products.

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

market share will obviously be gained.

50
5.6.3.3. Promotion:

Promotion of pharmaceutical product is different from consumer product. Mass promotion is

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

types of doctor gifts.

5.6.3.3.1. Resources for Promotion:

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

to build and maintain an integrated marketing environment within the organization.

However, the core marketing job is accomplished by six departments-

Product Management Department (PMD)

Sales Department

Distribution Department

Medical Services Department (MSD)

Training Department and

Marketing Services Department-MKSD (Market Research Team)

51
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 people to win in the market.

Product Management Department

Figure 5.4: Executives working at PMD

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

success of the sales department in ACME.

Figure 5.5: Medical Representative promotes PROTOCID to Doctor

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.

This training is structured, conducted and evaluated by the Training Department.

Medical Services Department

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

53
& 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

professionals. Responsibility of MSD is also to maintain strong communication and relation

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.

Marketing Services Department

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.

5.6.3.3.2. Promotional Tools

Several types of promotional materials has been provided to inform the benefits of our

products to doctors. This includes-

Physicians sample

Literature

Pad

Gift

Booklet

54
Sticker

Danglar

Medical Journal

Newsletter

5.6.3.3.3. Promotional Mix

All of the various tools available to marketing managers for promotional activities constitute

what is known as the promotional mix. Promotional mix in Pharmaceutical market of

Bangladesh is discussed below-

5.6.3.3.3.1. Advertising

Advertising of Pharmaceutical products is controlled, because mass promotion is prohibited

for medicinal products. Considering these factor pharmaceutical products can be advertised

in the following ways-

Information Advertising: Advertise of launching and launching program can be published

in daily news papers This type of advertisement contains only the launching new alone with

the product name, packaging, pack size, price etc.

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.

Poster and sticker: Advertisement of pharmaceutical products is also published as Poster

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

professors as the keynote speaker.

5.6.3.3.3.2. Personal selling

Customer promotion

In personal selling of pharmaceutical products the medical representative visit the physician

frequently, and pursue them with

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

prescription and as well as promoting the products.

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

prescribe the drugs.

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.

56
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

chikitshoks and detailed of the product is discussed

In all the cases the medical representative directly requests the physicians to prescribe their

products in the applicable cases.

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.

5.6.3.3.3.3. Sales promotion

Sales promotion strategy in pharmaceuticals is different from the consumer sales. In

Bangladesh sales promotion strategy offers-

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

the drug only on the prescription.

Public relation activities performs by pharmaceuticals are-

Countrywide meeting: Countrywide meeting with the healthcare professionals are arranged

to inform and to discuss the product with them.

Press articles: Articles are published in the daily newspapers discussing the health issues,

disease, national events etc.

Promotion of health issue: Promotion of health issues by courtesy of the company is

another way of public relation in our country.

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

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A strong distribution network comprising 18 depots throughout the country and

the specialized distribution team to distribute the products among this region.

A dedicated team of around 1200 people and

A fleet of vehicles comprising delivery vans, three wheelers etc. are engaged in

the timely distribution of products throughout the country.

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.

Stage 7: Developing Packaging Material

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,

commonly known as carton.

For a tablet, an executive has to prepare four designs with the assistance of a graphic

designer. These ares-

- Foil design of the primary pack

- Design of commercial carton or secondary pack

- Label design of the outer box or tertiary carton

- Physicians sample pack design

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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

code is obtained from PPIC and

Figure 5.7: Foil design of the primary pack

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Figure 5.8: Inner carton or secondary pack design


Figure 5.9: Label design of the outer carton

5.8.

Stage 8: Registration and Price Approval from Drug Administration

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.

The recipe of PROTOCID is already approved from DA. Now an application is to be

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

printed in all package of the drug.

Recipe Inclusion Price Commercial


In Production
DML
Approval Approval

Figure 5.10: Role of Drug Administration during new production


introduction

Price is also to be approved by DA. After registration, price is informed to DA trough an

application. DA then issues a notice to the company with fixation of the price.

5.9.

Stage 9: Preparing production forecast and Development of promotional tools

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.

Item Type 1st Month 2nd Month 3rd Month

63
Protocid 20 tablet Commercial 735000 613000 613000
Physicians Sample 160000 130000 130000
Protocid 40 tablet Commercial 100000 95000 95000

Table 5.14: Production forecast of first three months

As promotional tools of PROTOCID, following items is prepared-

- A literature

- Physicians sample

- A gift (Dettol Liquid Soap)

- A gift (Wet tissue)

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.)

Figure 5.11: Promotional tool: Literature of PROTOCID-Front


part

Figure 5.12: Promotional tool: Literature of PROTOCID-Inner


part
65
Figure 5.13: Promotional tool: Box for Figure 5.14: Promotional tool: Inner label for
gift item (Dettol liquid soap) gift item (Dettol liquid soap)

5.10.

Stage 10: Fixation of Launching Date

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.

66
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.

Stage 11: Launch the Product

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.

Stage 12: Customer Feedback Analysis

After three months of launching the product, customers comment, specially physicians

comment is taken as a feedback. An average of thirty doctors is interviewed randomly around

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

necessary and feasible.

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Chapter 6: Recommendations and Conclusion

ACME is one of the top leading pharmaceutical companies in Bangladesh. It is contributing


much in the health sector, revenue and employment of the country. It has a large number of
highly devoted sales forces throughout the country. Pharmaceutical market is now very
competitive. Each year around three hundred new brand is introduced in the pharma industry
of Bangladesh. Although ACME is very successful in formulating and implementing
marketing strategies in this completive market, number of new products introduced here is
not sufficient with respect to companys own market size. Moreover, pharmaceutical
competition is increasing gradually. So, ACME should be more strategic in blending the
elements of marketing mix. Promotional activities are one of the most important ways of
increasing market share and company image. ACME should increase its promotional effort
and aggressiveness in promotional activities to increase the market share.

ACMEs new product launching decision should be more prompt.


It should not take more than eight months to launch a new product.
A committee of cross functional department can be formed who will work dedicatedly
for new product launching.
New product launching promotion should be more aggressive.
Short course training program on the new product can be arranged for sales team.
Promotional materials allocation must be ensured before launching a new product.
For some special products present pricing policy should be product specific.
Skimming or market penetration policy may be applied if required.
A committee comprising of the personnel of PMD, distribution, and production
should be formed to ensure smooth distribution of products and promotional
materials. Committee will formulate an SOP to solve the problems.

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New alternative promotional strategy and items can be introduced.

Chapter 7: Bibliography

Books:

1. PHILIP KOTLER & GARY ARMSTRONG, Principle of Marketing (, 12th ed.),

2. GRIFFIN, RICKY W. Management, (Boston: Houghton Mifflin Company, 2005), 8th ed.

3. CATEORA, PHILIP R. & GRAHAM, JOHN L., International Marketing,(McGraw-Hill

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

Time 12.10 pm on 12.04.10

2. http://www.acmeglobal.com

Time 03.00 pm on 06.04.10

3. http://www.learnmarketing.net/npd.htm

Time 11.25 am on 18.04.10

4. www.ddabd.org

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Time 10.45 am on 21.04.10

5. www.epb.gov.bd

Time 04.30 pm on 14.04.10

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