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Module: Marketing

Group Assignment: FAMVIC CASE STUDY

Course instructor: Mr. Imran Ejaz

Submitted by:

(11338) - Leader





Program: – A (2)

FAMVIC means Family Amino Acid Minerals Vitamin Compound and was introduced
by Mr. Aziz A Khan Managing Director of STEDEC (Scientific and Technological
Development Corporation) Lahore Pakistan. Having sugar its major content by weight
and was rich in amino acids. This product was introduced in two different sizes, 120 ml
and 280 ml bottles .


1. When product reached second stage the marketing manager looked into the
budget given for product which was not enough for market surveys and could not
be carried out. They surveyed competitive products price structure, channels of
margins etc and decided to lower their prices than that of competitor’s product but
it couldn’t easily found buyers.
2. Later on they hired Uzma Foods (UF) as their distributor on the basis that they
had a small network of distribution and have experience of dealing in
pharmaceutical products. And due to their wrong anticipation results did not turn
out very encouraging because UF’s have no strong distribution network in Punjab
and the steps taken by them was not improving FAMVIC sales. As a result
STEDEC decided to sign on Ali Pharma as their distributor who were relatively
have large distribution network. But still did not bring about the needed results in
sales. During this time management wondered whether they had made a mistake
in launching FAMVIC as ethical product and choosing small distributors. So they
approached UDL (United Distributor Ltd). UDL advised to sell FAMVIC as an
OTC (over the counter) product with improved advertisement strategies. However
sales were up in the initial months but didn’t stay for long. By Dec 1994 both
STEDEC and UDL became frustrated due to lack of sales and blamed STEDEC
that they are not investing enough in advertisement which led to poor sales of the
product at retail level.

Later on UDL proposed that if STEDEC could provide them promotional expense of
15% in addition to their current margin of 30% they would use their medical
representatives to visit doctors and also provide information to doctors and medical stores
to bring sales. Later on Mr. Khan realized that it was better that STEDEC should improve
marketing strategies than to rely on different distributors and realizes that “Now we have
some data on the market as well as our own experience we should come up with a solid
re-launch plan for FAMVIC”.


If we were on the place of Mr. Aziz we will make all plans before launching FAMVIC
specially production strategies because FAMVIC a tonic rich in amino acids and proteins
however pulses, eggs and other items have protein but the major source of protein is meat
which was and is expensive in Pakistan and is out of reach of common man. Secondly
make proper plan for budget allocation because through this we will know before the
hurdles face by us in near future. Thirdly, marketing strategies because these strategies
plays important role in the promotion of any product. At the end they need a huge
marketing plan to promote their product and should launch as an supplement not an
ethical product.