PRESENT MARKET POSITION OF DINAC-TR
CAPSULE (PAINKILLER DRUGS).
Introduction: (Background information)
The pharmaceutical business is a composite of a variety of
professional backgrounds, including pharmaceutical, engineering,
accounting, law and marketing. The founder chairman made
certain commitments of principle at the onset to guide the company
as it pursued its goals:
Act always with honesty, ethical and moral standards:
Adhere to standards of integrity in business and in products
that benefit patients and inspire trust in Navana’s good name;
Embrace a hands-on work ethic and a commitment to
Navana’s success;
Exercise community stewardship by pursuing growth to
provide more jobs for more families;
Share the blessings of success by giving first to the
community and then to the world.
History
Late Alhaz Jahurul Islam, the founder chairman of Navana,
established the company in the year of 1992; the company started
its operation in that year. For the past several years Navana has
worked hard to set itself in front line of country’s pharmaceutical
market and as a quality company Navana has recognition for the
value of its technology and quality of the work. Navana attained
ISO 9001 certificate in the year of 2001.
Objective: The Marketing plan for Dinac-TR aims at achieving
the following objective. 1.To find out the existing Dinac-TR drug in the market, and its
comparative position.
2.To evaluate the market,external environment and internal
environment.
3. To adhere to standards of integrity in businise and in products
that benefite patients and inspire trust in Navana Pharmaceuticals
good name.
4.To draw a competitive picture of Dinac-TR and other
homogenious product.
SCOPE OF WORK:-1. Forcasting market potential
2. Product strategies,action plans and assessments
3. Pricing strategies,action plans and assessments
4. Placement strategies,action plans assessments
5. Promotion strategies,action plans and assessments
Although my best effort has been made in preparing the plan
certain limitations could not be avoided:
LIMITATIONS OF THE STUDY:- Limitation could not be
avoided:-
● One of the majore competitor of Dinac-TR is Diclofen of Opsonin
which is not located in Dhaka.It was not possible to obtain information
about Diclofen.
● In some instances organization were not able to provide the required
information due to corporate confidentiality.
● although Dinac-TR is in the market of Bangladesh for the last 15
years, sales data from the beginning was not available. Data of only
past 5 years could be obtained.
METHODOLOGY:-
In preparing the report information have been collected from interview
with portfolio manager,Navana Pharmaceuticals,Executive handling
Ultrafen in Beximco & Ficlon in Rhone-poulenc Rhorer and various
doctors prescribing NSAID and chemists.
Information for exernal environment analysis has been obtained from
Statistical Year Book of Bangladesh, published by BBS, documents of
Ministry of Health(particularly about drug policy) and from Internet.
After gathering all the information,the strategies,action plans &
assessments have been developed. The feasibility of all that have been
proposed in the plan hase been cross- checked with Navana
Pharmaceuticals and opinions have been obtained from concerned
parties.
Chapter-2
Findings:-1.The Product:- Dinac-TR
Generic name:- Sodium Diclofenac
HS code: 3004.10.00
Description of the drug: Non-Steroidal-Anti-InflammatoryDrug (NSAID)
Theme: A flexible Choice in acute and chronic pain.
Manufacturer:- Navana Pharmaceuticals Limited.
1.2 Available forms and their uses:
Forms Suitable for use in
Dinac-TR Enteric Coated Rheumatic conditions:
Capsule Osteoarthritis
Rheumatoid Arthritis
Amkylosing Spondylitis
Dinac-TR Slow-Release Rheumatic conditions:
Capsule Osteoarthritis
Rheumatoid Arthritis
Amkylosing Spondylitis
Suppositories for adult Rheumatic and non-rheumatic painful
Condition such as postoperative pain,
Arthritis,migrane.
Suppositories for children In postoperative pain,juvenile RA and
Otitis.
Dinac-TR ampules Renal/billary colic
Severe migrane attacks
Acute gout
Post-traumaticpain
Treatment of post-operative pain
Dinac-TR Dispersible Acute painful non-rheumatic conditions
Capsule Acute back pain
Primary dysmenorrhoea
Sprains and strains
Dinac-TR Emulgel Local therapy for rheumatic and
Post-traumatic conditions: sprains and Strains, Bursities Osteoarthritis of peripheral joints
Cataflam 25 & 50 mg Acute painful non rheumatic conditions: Acute back pain
Primary dismenorrhoe
Sprains and strains
Any patients having pain of any kind consists the market for NSAID. Dinac-TR can
be applied to any kind of pain-from headache to severe rheumatic or post-operative
pain.
Market size: The total size of NSAID market in Bangladesh is Tk.
12,022,433,0001.
Market growth rate: 5 to 8% annually.
Market share of Dinac-TR: 11.5%
Doctor coverage: 7000 doctors approximately (95 doctor for every medical
representative).
2.3 Features provided by Dinac-TR and benefits desired by doctors for patients:
Forms Product Feature Benefits Desired
Dinac-TR Enteric
Coated Tablet
The 25 mg form provides an excellent
solution for not so severe pain
A high efficacy medicine
against pains caused by
infection, hurt, cut, etc.
Dinac-TR Slow-
Release Tablet
1. Eliminate multiple dosage
regimen. It cover 24 hours
While 25 mg coated tablet
hardly cover around 9 to 10
hours.
2. Improve efficacy of the
treatment.
3. Decreases side effect profile.
1. Simplified long-term
treatment.
2. Patient compliance.
Suppositories For
Adult
1. Better GI tolerability as it
does not pass through
stomach.
2. Fast onset of action as passes
liver after absorption.
3. Excellent in women during
child-birth.
4. Weather friendly.
Doctors prescribe it when
oral administration is
inconvenient such as in case
of mishaps. They want it to
be highly tolerable. Efficacy
in rheumatic and non-
rheumatic painful condition
such as post operative pain,
arthritis, migraine. 1 Source: IMS, 1999 (2nd quarter)
Suppositories
for children
1. Better GI tolerability as it does
not pass through stomach.
2. Fast onset of action as passes liver
after absorption.
3. Weather friendly.
Doctors prescribe it when
oral administration is
inconvenient. They want it to
be highly tolerable. Efficacy
in postoperative pin, juvenile
RA and otitis.
Dinac-TR
Ampoules
Pain relief occurs within 45 minutes. This
form is particularly suitable in case of
major pains such as post-operative pain.
High efficacy drug against
severe pain.
Dinac-TR
Dispersible
Tablet
1. Dispersion time in water is 15
seconds.
2. Absorption attains within 1 hour.
3. Pain relief occurs within 20 to 30
minutes.
1. Swift dispersion
2. Swift absorption
3. Speedy action
Dinac-TR
Emulgel
2 to 4 gm Dinac-TR Emulgel are
sufficient to treat an area of about 400 to
800 semi square.
Suitable for local therapy.
Cataflam 25
and 50 mg
1. Highly soluble, so absorption
starts immediately after
administration.
2. Pain relief within 15 to 30
minutes.
Fast relief in short term
therapy.
History of the Product within the industry and the firmDinac-TR is an original research product of Navana. So, history of product in
Industry and Firm coincide.
The molecule, Sodium Diclofenac, was invented by Navana Pharmaceuticals Ltd. It
was introduced in the market by the company by the brand name Dinac-TR. The
product image has been enhanced by the good reputation of Navana as a house of
anti-rheumatic.
In Bangladesh, the product was first introduced in 0000. Before the introduction, the
product was being smuggled into Bangladesh from India. Finding the demand for
Dinac-TR, Navana Pharmaceuticals Ltd. Decided to formally launch it in our country.
With time, different forms were introduced such as Dinac-TR, Ampoule, Emulgel and
like. Some forms exhibited extraordinary success e.g. the Suppository form proved
essential for patients who could not take in the oral form. As time passes by, the local
competitors began to emerge and challenge Dinac-TR. One of the successful is
Opsonin. Other local companies posing threat to Dinac-TR are,Square
Pharmaceuticals Ltd (the product is Clofenac), Beximco Pharmaceuticals Ltd
(Ultrafen), and Rhone-Poulenc Rhorer and Fisons (Ficlon).
Among the seven forms, Navana Pharmaceuticals Ltd produce Dinac-TR Suppository
for adult and child and Emulgel from the parent company.
Goals of Navana Pharmaceuticals Ltd Aspiration of NavanaCapture and hold a leadership position in all of our business with a strong, sustainable
performance, based on continuous innovation. Our long-term success is founded on
meeting expectations of all our stakeholders customers, our people, shareholders and
all the communities, in which we live and work.
Mission Statement of NavanaWe, Navana Pharmaceuticals, Guided by our Aspirations Believe in ensuring our
long-term existence by being profitable and sustainable with our commitment to
providing value adding products and services to satisfy the needs of our customers
services in the sectors of: Health Care, Animal Health, Crop Protection. Our
innovative efforts will be designed to incorporate all the technological Advances that
will best serve the interest of all our stakeholders.
We aim to lead the industry in terms of quality and effectiveness, by providing
products and services that will serve as the standard of reference in the overall
industry.
In carrying out these activities our leaders exihibit behavior based on our principles of
a high-performance organization and empowered leadership. Our associates are
customer focused, have a drive to learning, competence and professionalism.
We believe in good citizenship based on openness and honesty. Our decisions are
based on balancing the needs of all the organization and our people as well the
society we work and live in. In all our activities we consider the impact on the
environment.
1. Maintain current market share.
2. Foster successful relationship marketing with prospects.
3. Serve new untapped segments.
4. Enhance ‘quality image’ and ‘corporate image’.
5. Achieve operational excellence by embracing change with a
mind set of or continuous improved.
6. Exploit synergic integrated company with harmonious
relationship among functional areas.
7. Upgrade MIS with timely, relevant and reliable information. Chapter 4: Target market segments
TARGET MARKET SEGMENTS Segmentation variables for patients:
1. Demogrphic
2. Purchasing behavior pattern
3. Based on diseas
Segmentation variable for doctors:
1. Demographic
2. Psychographic
3. Prescription Patter
4. Area of specialization
T ARGET MARKET COMPONENTS 1. Doctors practicing in urban area
2. Years of practice
3. Area of specialization of doctors
4. Regular prescriber of NSAIDChapter 5: Product Category Demand Analysis:
Market Demand Analysis for Patients
Demographic Description:Income: Upper and Upper middle income group (e.g. 7000 & above ) Age and
lifestyle: All age groups have certain demand. But one particular segmentation can be
patients of over 40 years of age who suffer from acute Gout.
Purchase Behavior Pattern:Usually sales increases in winter.
Segmentation based on disease:
Patients suffering from following diseases are potential market segments
for Dinac-TR:
Osteoarthritis
Rheumatoid arthritis
Spondylitis
Post operative pain
Juvenile RA
Otitis
Migrane
Renal biliary colic Acute Gout
Post traumatic pain
Scute back pain
Primary dismenorrhoea
Appain and strains Buritis
Market Demand Analysis for Doctor Demographic Descriptor:1. Doctors practicing in urban areas
2. Years of practice
Segmentatation based on diseases:1. General surgeons
2. Orthopedic Surgeons
3. Medicine Specialists
4. General Practitioners
5. ENT Specialists
6. Gynecologists
7. Neurologists
8. Dentists
Prescription behavior pattern description:
Category A: Most potential doctor
They are regular prescribers.
Category B: Potential doctors Doctors who prescribe pain killer less regularly.
Category C: Less potential doctorsHardly prescribes painkiller.
Psychographics descriptor:Preference for original research products.
Chapter 6: Competitor analysis
6. Competitors Analysis:Brand competitors: They are the companies who offer similar product and
service to the same customers at similar price. There are no mentionable brand
competitors of Navana as no other companies are offering similar products at same price
as far as Dinac-TR concerned.
Industry competitors: They are the companies who offer similar or similar class
of product and services not at same price. The industry competitors of Navana as far as
Dinac-TR is concerned are Ziska Pharmaceuticals, General Pharmaceuticals, Orion
Pharmaceuticals, ACI Pharmaceuticals, Globe Pharmaceuticals and Gaco
Pharmaceuticals. Among them the major competitors are Orion Pharmaceuticals, Globe
Pharmaceuticals, Acme Laboratories.
Form competitor: They are the companies who manufacture and offer those
products that provide similar service. As far as pain killing aspect of Dinac-TR is
concerned, Orfenac, Ronac, A-Fenac, Genac, Mobifen, Dicloferal etc. can be regarded as
form competitors.
Generic competitor: They are the companies that compete for the same
consumer dollars. The generic competitors for Dinac-TR are the producers of hot water
bags, ice packs etc. They also do not represent any significant competition.
It is apparent from the above discussion that major competitors of Dinac-TR are Orion
Pharmaceuticals, General Pharmaceuticals,Aci Pharmaceuticals. Globe Pharmaceuticals,
Competitors Profile:
General
Globe
ACI
Orion
Navana
Company Market
share
Product
growth
rate
Area covered Sales force Doctor
Coverage
Orion 3.1% 7% Both Rural Not Available Around
and urban 20,000
Market share of major companies in NSAID
Market share
ACI 2.5% 3 to 5% Both rural 120 Around
And urban 15,000
Globe 2.0% Not Both rural 200 Around
Available And urban 12,000
General 1.5% 5% Both rural 150 10,000
And urban
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%
Chapter 7: Analysis of external environment
7.1 Economic AnalysisEconomic cycle stage: Recession
Real GDP in crore taka (2002-2003): 45,573
GNP per capita (Atlas method): $ 250
GNP per capita growth rate (2002): 4.2%, projected growth rate 3.9% up to 2003.
Total population: 125.6 million
Urban population: 20% of 125.6 million (25.12 million)
Consumer price index (2002-2003) National: 208.70 (1985-86=100)
Consumer price index (2002-2003) Urban: 905 (1973-74=100)
Rate if infliction: 7%
International rate of exchange
Median Income per house hold: US$255
Total national debt: $16,354 million
7.2 Legal EnvironmentLegal environment:
The main legal frame work for the pharmaceutical industry is provided by the Drug
(control) Ordinance Act, 1982. This Act strictly regulates the production scope in the
industry. The Act has given great impetus to the local firms. As a consequence,
multinationals have faced a rather restrictive environment to work in.
The Act outlines that, when at least two local firms starts manufacturing any specific
drug and are able to satisfy local demand, import of such drug would be banned.
Current regulation permits pharmaceutical companies to charge premium price on drugs
that are their original research product. This is allowed to let
The companies recover the huge cost of research and development. In other categories,
government has set certain price ceilings.
One important aspect of drug policy of Bangladesh is that it refrains multinational
companies from offering certain profitable drugs such as vitamins. However, the
government of Bangladesh is reconsidering this barrier in favor of multinational
companies.
Consumer rights: Current drug policy has provisions for consumer safety. In this respect the following
main objectives of the policy can be quoted:
1. Ensure adequate supply of good quality drug.
2. Reduce price of drugs and ensure supply of raw materials at reasonable price.
3. Prevent abuse of drugs.
4. Ensure safety of consumer by stopping use of unnecessary and harmful drugs.
5. Ensure that drugs available in stores do not cross the expiry date.
Regulatory bodies:The two main bodies which regulate the pharmaceutical industry are:
1. Department of Drug Administration: This body issues licenses permitting
manufacture of drugs and import of necessary raw materials.
2. Department of Narcotics Control: This body controls firms that manufacture
drugs using opium derivates.
3. Both the departments work under the Ministry of Health, Government of
Bangladesh.
7.3 Political Environment Consumer right agencies:Consumer’ Association of Bangladesh (CAB) is the major body that deals with protecting
consumer rights. They conducted several studies on Drug policy and Drug (control)
Ordinance act.
Domestic political climate:The political parties of Bangladesh are in a major strife. Two opposition parties have try
to reached an agreement to initiate a mass movement against present ruling Four Party
Alliance lead by BNP. They want interim elections. As a result, they are staging ‘hartals’
and other demonstrations at random intervals. Best possible scenario for domestic
political climate is that the Government reaches reconciliation with the others. Worst
possible is continuous strike hindering all social and financial activities.
Potential domestic political impact:More political instability, inter-party clashes, political turmoil.
International political climate (per country or trade association):
1. Last three years SAARC is not working well as Pakistan has experienced a coup
and none of the other SAARC members are willing to carry on any PM level
meeting but now it will be started recently.
2. Some EEC members and US firms have become anxious about drilling for oil &
gas in Bangladesh. At present, Bangladesh Government is under stress from
these foreign countries regarding this issue.
3. India had asked for transshipment facilities to Bangladesh but the local
opposition parties and some other groups are strongly opposing it.
4. The GATT phasing out in 2005 have major legal/political and financial
implications due to free market. However , many third world countries are
trying to postpone it.
Best possible situation under current scenario is that Bangladesh Government will
enforce the interest of Bangladesh most effectively, in each of the above issues.
Worst can be Western nations not co-operating Bangladesh pursuing Bangladesh to enter
into agreement that are against the interest of Bangladesh as an agenda.
Potential International Political Impact (per country or trade
associations):1. After the implementation of GATT, Bangladesh can enter the foreign market
without any barriers.
2. Bangladesh Government may find that it is concerned by the much stronger
nations lobbying for the oil.
3. India may raise its non-tariff barriers across its borders with Bangladesh.
4. If Pakistan military fails to return power to civilians SAPTA activities can be
severely hampered.
Cultural values:1. Bengali culture.
2. Give more emphasis on context rather than the content of message.
3. The lion share of population is Muslim.
4. Place high value on national days as 21st February, 16th December, 26th march.
5. An important element of the culture of Bangladesh is the Liberation War of 1971.
6. Festivals such as Nababarsha are an integrated part of a Bengali life.
Cross culture impact:1. The society has turned more materialistic.
2. Growth of English medium school in urban societies.
3. Rising number of nuclear family.
4. Rising number of restaurants offering cuisines of various cultures.
5. Fast food shops, cyber café and large departmental stores such as HNP Family
Mart.
7.3 Social analysis6. Growing preference toward English and Hindi movies and songs.
7. Adoption of western clothes.
Sub cultural values:1. Strong sense of regional intimacy is observed among people of certain districts,
such as, Noakhali, Sylhet, Chittagong.
2. Relatively higher influence of religion among people of certain regions such as
Sylhet.
Social group values:1. Informal communication is a significant part of working life.
2. Chatting and gossiping is favorite pass-time.
3. Less conscious about time.
4. Places high value on marriage. Although the rate of divorce is increasing in
urban area, people try their best to avoid divorce.
5. The society is male dominated. But as days pass by, women are becoming more
and more independent and aware of their rights and louder about abuse.
Within the industry Outside the industry
Domestic/o No local R & D. however, Not a very positive scenario.
Nshore technology is being imported. Bangladesh has a poor
business capital goods manufactur-
-ing sector.
Government No mentionable role NSAID BCSIR and BRRI.
Market. However, ICDDRB
conducts some research.
University Some very small-scale resear- BUET and Bangladesh
are done during internship. Agricultural University con-
-ducts various researches on
technology.
7.5 Technological analysisForeign/ There are many organizations Great progress is taking place
offshore that substantially contribute in particularly in West Europe-
business technological research and and American business. Some
development. Example: Navana, research oriented organization
Orion. Are IBM, General Electronics,
Microsoft, Apple Macintosh
Bell Laboratories, Davidson
Laboratories,
Government Has taken noteworthy initiatives Tremendous in many sectors
research. For example,Governm- .Like, NASA Wave resource,
-ent Laboratories who test the Space Plasma, Del Laborato-
efficacy of drugs, FDA, Advanc- -ries, Wharton Laboratories
-ed Technology Laboratories. etc.
Universities Leading bodies in research in Here again Universities are
the fields are Harvard School of the leading bodies. For exam-
Medicine, John Hopkins School -ple, Massachusetts Institute
, and California Institute of of Technology (MIT), Camb-
Technology. –ridge & Oxford.
The analysis of technological environment reveals an important aspect for Dinac-TR. The
major molecule of this drug Sodium Diclofenac has a side-effect. It patient taking any
drug containing Sodium Diclofenac may have gastro-intestinal diseases. Currently,
research has been carrying out to invent a new molecule that will minimize the chance of
having any kind of side-effect. If the research is a success, then the new drug will replace
Dinac-TR.
7.6 Opportunities and Threats to the firm based on External Analysis
Opportunity:
1. GATT may offer great opportunity to Navana allowing it to freely import drugs.
2. Government Drug Administration Department is reconsidering to give
permission to produce restricted drug items to multinational companies.
Threats:
1. Four imported forms of Dinac-TR are under threat of Government restriction
because more than two local firms are now capable of successfully meeting
demand of local market with similar quality.
According to Government drug policy, imports of such drugs are normally
restricted.
2. Hartal-Current political instability can disrupt the distribution of drugs and
seriously hamper marketing activities by creating shortage.
3. A new generation drug having fewer side effects than Sidium Diclofenac
may be invented and replace Dinac-TR.
4. Local firms who enter into contracts with physicians and druggists may also
hamper successful marketing of Navana Pharmaceuticals.
Chapter 8: SWOT Analysis
Strengths:1. Dinac-TR is in the Bangladesh market for past 10 years. As a result it enjoys a
long heritage.
2. High brand awareness.
3. Dinac-TR is availability in all galanical forms.
4. Since Dinac-TR is an original research product of Navana the company enjoys
an image over others.
5. Navana enjoys a high image as a multinational company providing drugs of
superior quality.
6. It also is renowned as a house of anti-rheumatic.
7. Dinac-TR is known for its high quality.
8. As the parent company has own research and development department that
pioneers new drugs, Navana Pharmaceuticals has an advantage to introduce those
drugs in Bangladesh and gain a competitive advantage over the competitors who
will have to manufacture the generic form.
9. When necessary, Navana Pharmaceuticals can seek technical and managerial
support form parent company.
10. Navana Pharmaceuticals can charge a premium price on certain drugs that are
original research product of Navana Pharmaceuticals.
Weakness:1. Inadequate sales force.
2. High price of Dinac-TR acts as a barrier to pursue rural market.
3. Being a multinational company, there are certain restrictions on Navana. For
example, drug policy restricts the company from production of some profitable
products such as vitamins.
4. As a multinational company Navana must be abide by certain special Industrial
norms.
5. Navana does not have the capacity to manufacture four forms of Dinac-TR
locally. These forms (Ampoules, Suppository for adult and child, Gel) are
imported.
6. Since Dinac-TR is an original product, Navana Pharmaceuticals must procure the
raw materials as per the parent company requirement.
7. Less dynamic upper management.
Opportunity:1. Above average growth of NSAID market.
2. Increasing use of Dinac-TR suppository to quickly reduce very high fever has
created a new opportunity for Navana to promote this drug for treating high
fever.
3. GATT may offer great opportunity to Navana allowing it to freely import drugs.
4. Government Drug Administration Department is reconsidering to give
permission to produce restricted drug items to multinational companies.
Threat:1. Availability of less expensive generics.
2. Due to the drug regulation of Bangladesh government which specifies that if
more than two Bangladeshi companies produce any form of medicine which is
currently being imported and fulfill adequate demand of market the quality
medicines produced locally is satisfactory than the form cannot be imported,
Navana is under a threat of facing an import ban on the four forms: Ampoules,
Suppository for adult and child, gel.
3. If Navana cannot import those forms than the company will loose 6 crore taka
which is 15% of company’s sale annually.
4. A new generation drug having fewer side effects than Sodium Diclofenac may be
invented and replace Dinac-TR.
5. Hartal- Current political instability can disrupt the distribution of drugs and
seriously hamper marketing activities by creating shortage.
6. Local firms who enter into contracts with physicians and druggists may also
hamper successful marketing of Navana.
Chapter 9: Forecasting Market Potential
9.1 Forecasting Marketing Potential Factors Importan
ce (in
rank)
Rationale Source
Trend in prescription
generation by selected
doctors
1
1
2
This will be an important tool in ‘prospecting’. The firm can pursue doctors more effectively.
When Compared to prescription generation, the trend in sales pattern will reveal whether chemists are influencing customers to buy drug other than what is prescribed. It can also reveal troubles and potentials in
Prescription audit
Sales data of the firm
Requesting respective doctors to maintain a present
Trend in sales pattern
and order size in
chemists’ shop
Trend of number of
people diagnosed with
rheumatic osteothritis &
other related diseases
Trend in prescription of
different forms
Trend on the number of
people operated each
year.
Number of doctors
starting practice
Chapter 10: Product Life Cycle and Sales Trend Analysis
Sales Pattern in NSAID market
1200.00
1000.00
800.00
600.00
400.00
1
1
2
This will be an important tool in ‘prospecting’. The firm can pursue doctors more effectively.
When Compared to prescription generation, the trend in sales pattern will reveal whether chemists are influencing customers to buy drug other than what is prescribed. It can also reveal troubles and potentials in
Prescription audit
Sales data of the firm
Requesting respective doctors to maintain a present
Million
Taka
200.00
0.00
1994 1995 1996 1997 1998 1999(projected)
Salaries1 549 516.55 581.874 804.788 796.041 996.87
Sales pattern of Dinac-TR160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
Salaries1
The above two graphs shows the sales pattern of Dinac-TR and the total NSAID market
respectively from 1994.
Product Life Cycle Stage and Rationale for JudgmentDinac-TR is entering the maturity state. Its market share is gradually leveling. The age of
Dinac-TR in NSAID market of Bangladesh is 10 years. The average growth rate of
Dinac-TR has declined from around 14% to around 6% over the last eight years.The high
R&D cost inventing Dinac-TR has been recovered over the years after its introduction. At
present, there is low cost per customer and high profits.
Million
Taka
1994 1995 1996 1997 1998 1999(projected)
73.3 60.28 68.053 107.889 122.136 134.725
The following BCG matrix shows the position of Dinac-TR in its life cycle.
Relative Market Share
BCG MatrixChapter 11: General strategies of Navana
11.1 General strategies
Defend the existing market share.
Search for and launch new products to enter profitable markets.
Preemptive attack on competitors posing threat.
Extend product line.
Enhance corporate image.
Strengthen commitment safety & environmental protection.
11.2 Functional Area General Strategies
Finance:
1. Increase Value to the stakeholders.
2. Effective portfolio Analysis.
3. Well planned capital budgeting.
HRM:
1. Train and build up personnel in each department to excel in his/her functions.
2. Design effective motivational package.
3. Arrange for objective performance appraisal.
4. Maintain database on internal public.
Marketing:
1. Defend market share.
M 21%AR 18%K ET 15%
GR 12%OWT 9% H 6%RA T 3% E 0%
10X 4X 2X 1.5X 1X 0.5X 0.4X 0.3X 0.2X 0.1X
Question mark Stars
Cash cow Dogs
Dinac-TR
2. Delivering superior customer value, satisfaction and quality market/centered
strategy and “taking care of the customer”.
3. Relationship marketing- keeping customers and capturing customer lifetime value
by building value-laden customer relationship.
4. Applying marketing technologies and communications that are revolutionizing the
ways companies deliver customer values.
5. Total marketing Quality- cross-functional teamwork within companies and cross
company, supply- chain partnerships to create effective customer value-delivery
system.
6. Arrange for efficient forecasting.
Production:
1. Ensure quality of product
2. Produce per schedule
3. Ensure timely purchased and proper maintenance of raw materials
4. Upgrade production technology when necessary.11.3 Prior marketing strategies that substantially exceeded expectation
Strategy Action Plan
Creation of 1. Introduction of Dinac-TR suppository greatly increased
Utility sales by affective form utility e.g. people who were
unable to take in oral dosage due to for example, in case
of accidents or in case of very high fever.
2. Prior to the introduction of Dinac-TR dispersible there
was a demand for 50 mg NSAID tablet in the market.
Navana predicted that if the company Dinac-TR 50 mg
tablet it would face tremendous competition. Therefore
they introduced Dinac-TR dispersible, which satisfies
the same demand of Dinac-TR 50 mg. But provides a
different form utility. This resulted in a success story
for Navana and Dinac-TR.
Targeting new At early stages, Dinac-TR was promoted primarily to
doctors specialists. A survey reals that patients first go to general
segment practitioners and if that treatment did not work they went
to specialists. Finding this Navana promoted Dinac-TR to
general practitioners. The result was a success.
12.0 Product Strategies, Action Plans and Assessments
Product Strategies
Introduce Bring in new Distinctive Differentiate Dinac-TR
new use of technology positioning from competitor’s
Dinac-TR of various products through
forms of product differentiation
Dinac-TR
Figure: Product Strategies
Strategies 1: Introduce new use of Dinac-TR.
Navana has successfully promoted its ‘intra muscular injection’ use in some markets
instead of the conventional ‘intravenous form’. It can easily initiate this use in
Bangladesh. No other local brand has yet safely claimed such use. But Navana can, since
it has already found this use through research. Such use opens a completely new door.
Action Plan:
1. Inform opinion leaders (major doctors).
2. Presentation on this new use can be arranged.
3. Highlight the new use in journals.
4. Provide doctors with promotional material and mention this new use.
5. Also inform druggist of this new development.
Evaluation methods:
1. Doctor’s feedback (through field force).
2. Prescription audit in following months and compare the result with that of
previous prescription audit.
3. Sales data of the new form.
Strategy 2: Bring in new technology.
Another new technology that can be adopted is Dividela Ampoule. This technology
allows the user to directly inject from a Syringe instead of the loading the drug from an
ampoule into a syringe.
Action Plan:
1. Inform doctors.
2. Arrange seminars and presentations.
3. Highlight the news in medical journals and health pages of various newspapers.
4. Develop appropriate promotion and distribution system for this product.
Evaluation methods:
Prescription audit.
Sales pattern of Dividela Ampoule.
Strategy 3:
Some of the local pharmaceutical companies have started using Leudocane (a calcium
based anesthesia) that stops the skin irritation caused when Sodium Diclofenac is
injected. But Navana has not added this to Dinac-TR. Under the circumstances, Dinac-
TR has two strategic options open to it.
Navana can highlight the fact that Leudocane is an unnecessary chemical that is being
injected to the body of a patient. Here Dinac-TR can really cash in on the conservative
attitude of doctors who always try to avoid prescription leading to ‘unnecessary chemical
intake’.
Action Plan:
1. Arranging seminars and informing the opinion leaders (usually professors) about
this issue.
Strategy 4:
Sodium Diclofenac has an internationally recognized standard of Calcium to Sodium
ratio. However, most of the local companies usually do not maintain this ratio because
adding excess calcium increases the shelf life. For example, it can increase the shelf life
up to 3 years. But for maintaining the internationally recognized ratio, Dinac-TR’s shelf
life is 2 years. Thus Dinac-TR can high light this issue of not following the standard ratio
to doctor’s and discourage them from prescribing.
Action Plan: Arranging seminars and informing the opinion leaders (usually professors)
about these issues.
Strategy 5:
Distinctive positioning of various forms of Dinac-TR.
Action Plan:
Dinac-TR 25 mg will be positioned as acute painful conditions.
Dinac-SR 100 mg will be positioned as for chronic forms of rheumatism.
Dinac-TR ampoule will be positioned as for acute painful conditions of post-operative
and post-traumatic origin, Renal colic, Biliary colic etc.
Dinac-TR suppository will be positioned as an alternative choice for painful conditions of
rheumatism.
Dinac-TR dispersible will be positioned as a medicine against all kind of pain to daily
patient management.
Dinac-TR Emulgel will be positioned as a drug for soft-tissue rheumatism and traumatic
painful conditions.
Cataflam tablet 25 mg and 50 mg will be positioned as a fast acting analgestic anti-
inflammatory drug for the short-term treatment of acute painful inflammatory non-
rheumatic conditions.
Evaluation:
Whether the positioning has been successful can be identified though a survey conducted
on doctors asking for what symptoms they prescribe each form of Dinac-TR.
Strategy 6:
Differentiate Dinac-TR from competitor’s products through product differentiation.
12.1 Product Component Description
Action Plans:
1. Add surrogate cues to enhance product. This is particularly applicable for Dinac-
Tr dispersible tablet (Dinac-TR). The taste of this tablet is bitter. This product
feature often refrain doctors from prescribing it. An improved taste of Dinac-TR
will generate substantial amount of prescription.
Brand considerations: A new brand name is usually used in case of original research
product. Promotional campaigns are designed to strongly back up the new brand image.
The company image further adds to the brand aura.
For generic products the general procedure is to add part of the molecule name to some
prefix/suffix in order to create a new name.
13.0 Pricing Strategies, Action Plans and Assessment Strategies Action Plans Evalution
methods
Use pricing as an Follow Market
implicit promotion tool pricing survey on
for chemists chemists
Pricing
Strategy
Make Dinac-TR more Determine the best price Market
affordable level survey on
chemists
Figure: Pricing strategies, action plans and evaluation methods
Strategy 1:
Use pricing as an implicit promotion tool for chemists.
Action plan:
Follow odd pricing.
Rationale:
Currently Dinac-TR is priced evenly, that is, for example, the price of Dinac-TR 100 mg
is Tk. 12.50 per tablet and Dinac-TR ampoule (75 mg) is priced Tk. 75. Following odd
pricing approach, Dinac TR 100 mg can be priced Tk. 8.73 and Dinac-TR ampoule (75
mg) can be priced Tk. 49.64. Then in every Dinac-TR 100 mg, the chemist will gain Tk.
0.17 and in every Dinac-TR ampoule (75 mg), the chemist will gain Tk. 0.26. This would
not be possible in case of Tk. 12.50 and Tk. 75 as customer will get a change.
In case of Tk. 12.50, although it will not be possible to give change of Tk. 0.50, if the
customer by even number of tablet, chemist will not gain anything and no matter how
many tablet a customer purchases, the chemist will gain at best Tk. 0.50. as a result,
chemists are often found to dishonor a prescription of Dinac-TR and favor odd priced
competitor brands e.g. Clofenac of Square Pharmaceuticals.
Evaluation:
Market survey on chemists to find out whether they any more dishonor Dinac-TR and
favor competitor brands on the basis of pricing will reveal the effectiveness of odd
pricing.
Strategy 2:
Make Dinac-TR more affordable.
Rationale:
Currently the price of Dinac-TR is about four to five times higher than competitor brands.
Even though doctors regard Dinac-TR as number one in quality, but due to the high price
of this drug, often they cannot prescribe it. A reduction in the price of Dinac-TR will
increase the number of prescription substantially, leading to greater market share in terms
of volume and profit.
Action plans:
1. Determine the price at which the reduction in price will be offset by the increase
in revenue.
2. Reduce the price of Dinac-TR at that level.
Evaluation:
Conduct market survey to find out increase in prescription generation in favor of Dinac-
TR due to reduced price.
1. Maximize profit while defending market share.
2. Maintain the price leadership.
3. Enhance the image of the firm and its offerings.
13.2 External environmental influence to be considered when developing the firm’s price policy:
Environmental factor Influence
1. Since the raw materials of Dinac-TR Higher cost of product.
must be purchased from sources specified
from the parent company, cost of raw
material is higher than those of competing
brands.
2. Doctors prescribe Dinac-TR when they Navana must be cautious about
want to be sure about the effectiveness of setting the price of Dinac-TR.
medicine.
3. The price of Dinac-TR is higher than Doctors are more likely to
competing brands. As a result the competing prescribe competing brands
companies often engage in negative campaign when the purchasing power of
using high price of a Dinac-TR as an attack- patient is crucial.
-ing tool.
4. It is internationally acknowledged that The price of Dinac-TR can be
pharmaceutical companies can charge higher than that of competitors.
premium price for their original research
product to recover the huge cost of R&D.
13.1 Pricing policy objectives:
5. Chemists often prefer odd pricing (Tk. Navana should consider oddChapter 14: Placement Strategies, Action Plans and Assessments
Placement Strategies
Ensure on time Computerize the Enhance skill of Reduce order
Delivery system inventory depot staff cancellation
Figure: Placement strategies, action plans and evaluation methods
Strategy 1: Ensure on time delivery system to prevent stock out of major retailing &
wholesaling centers.
Action Plan:
1. Quarterly review of forecasts of the entire sales region.
2. Assess reasons for late delivery.
3. Feedback from regional depot heads about the forecast.
4. Arrange for extra storage space during winter. If needed rent extra storage space
with adequate facilities.
5. Allocate and reschedule vehicles in each regional depots depending on demand
basis so that increased number of visits to druggists can be arranged.
Evaluation methods:
1. Feedback from sales force who visit druggists.
2. Independent survey.
Strategy 2: Computerize the inventory management system in the depots i.e. keep track
of pharmaceuticals from depots.
Action plan:
1. Critical review by specialists about the system about inventory management.
2. Evaluate and prove the most suitable proposed model of computerization.
3. Train relevant staff with basic computer literacy so as to operate the system.
Evaluation:
1. Expert opinion on implementation of systems.
2. Cost benefit analysis in terms of installation cost and benefits due to early
warning of stock-out, error reduction, labor cost reduction etc.
3. Druggist survey about the impact of the new system to find out if delivery timing
has been improved after implementing computerization.
4. Review ‘order cancellation’ situation.
Strategy 3: Enhance skill of depot staff through training in order to improve service
quality.
Action plan:
1. Training the store-in-charge about Inventory management, Employee motivation.
2. Training Accountants on update A/C related computer software followed by the
company.
3. Training the deliveryman about the Salesmanship, Necessary banking instruments
like DD handling, on percentage, discount calculation.
4. Training the drivers on Mechanical know-how of vehicles to face sudden
mechanical failure and for normal day-to-day maintenance.
Contingency Plan:
1. Reschedule delivery timing to counter opponent attack.
2. Arrange for emergency supply if stock-out possibility arises.
3. Maintain punctuality in delivery so as to build confidence/ reliability among
chemists that Navana will deliver its product on time. This will prevent them,
from buying from others even if they approach earlier.
4. Behavior training to sales personnel.
5. Relationship Marketing with retailers and wholesalers.15.0 Promotion Strategies, Action Plans and Assessments
Strategy 1:
Increasing customer base (Doctor base).
Action Plan:
Increase the number of sales force so that they can cover more number of doctors.
At present there is only one medical representative for 115 doctors. Increasing the
number of doctors per medical representative will be adding burden to the field force and
will be ineffective. To get more doctor coverage Navana must increase the size of its field
force.
Performance Evaluation:
The cost of keeping additional medical representative must be weighed against the
number of additional prescription generated due to him.
Strategy 2:
Motivate chemists to promote Dinac-TR.
Action plans:
1. Navana should apply implicit promotion to induce chemists. Dinac-TR should be
priced odd (e.g. Tk.12.55 per tablet instead of Tk.13).
In case of odd pricing, as in the example, chemists will get a profit of Tk. 0.45 per
tablet as the change of 45 paisa is not available.
This will motivate chemists to pursue customers to buy Dinac-TR even when
according to prescription the chemist should give him a drug of competitor of
Dinac-TR.
2. Navana will arrange sales award system for chemists on the basis of amount and
volume purchased.
3. Navana will maintain a profile of chemists that will indicate the preferences and
motivating factors of the chemists. The company will accordingly devise
promotion materials to motivate them to promote Dinac-TR to customers. This
will also help the company to build and maintain a friendly relationship with the
chemists.
4. Adopt “Dear Chemists Letter”. Occasionally Navana will send mails to the listed
chemists in the chemist database that will content any information that Navana
finds that chemist should know.
Performance evaluation:
A before after experiment with control group may be used to find out the effectiveness of
odd pricing.
Strategy 3:
Highlight distinct positioning of each from of Dinac-TR
Action plan:
Dinac-TR 25 mg, which will be positioned as acute painful conditions will be promoted
as “A proven and trusted analgesic/ anti-inflammatory drug.
Dinac-TR 100 mg, which will be positioned as for chronic forms of rheumatism, will be
promoted as “Once a day anti-rheumatic”.
Dinac-TR ampoule, which will be positioned as for acute painful conditions of post-
operative and post-traumatic origin, Renal colic, Billiary colic etc, will be promoted as
the fast and potent analgesic/ anti-inflammatory drug.
Evaluation:
Market survey on doctors, internees to find out awareness regarding Dinac-TR within
three months of implementing action plans.
Strategy 7: Build up skilled field force.
Action Plan:
1. Arrange for training sales force about courtesy in dealing with doctors. Training
should focus on:
Presentation skills.
Helping answering queries while satisfying the inquirer.
15.1 Promotion Campaign Plan:
To receive feedback & analyze doctor’s sentiment after seeing his
behavior.
Details of new developments about forms, compositions, of products
should be informed.
Management of time.
Handling and effective delivery of gift/ incentives to doctors.
2. Special training to great druggists.
Evaluation:
1. Prescription audit within 3 months of training of the medical representative.
2. Feedback from chemists and doctors about the representatives.
Strategy 8: Selective promotion approach.
Rationale:
This strategy has already been implemented by a chief competitor of Navana.
5. If any competitor starts excessively promotion of certain form, Navana can start
to process alternative forms on a reshuffling basis.16. Performance evaluation and control
In general, the performance evaluation may be divided into two broad classes:
Sales performance: To what extent the targeted sales (in unit) is achieved.
Prescription performance: To what extent the targeted prescription performance is
achieved.
For the purpose of monitoring and control field force activities, Navana can use specially
designed software “Filled Force Monitoring System” for pharmaceutical company.
The following diagram chart depicts a summary outline of suggested performance report
to evaluate the implementation of marketing plan:
Performance Report: This month Year to date
Item
Plan
% o
f ac
tual
plan
Plan
Act
ual
% o
f act
ual
Fluc
tuat
ion
Rea
sons
fo
r
fluct
uatio
n
Pers
on
resp
onsi
ble
Com
men
ts
1.Sales
2.Profit
3.Experienc
e
4.Pricing
variance
5.Finished
6.Inventory
7.Order
backlog
The following chart shows another tool for evaluation and control of implementation of
marketing plan:
Aggregate Disaggregate data
1. Sales 1. Sales by
a. Total dollar sales a. Product
b. Market
c. Geographic area (e.g. region,
district, territory)
d. Major Accounts
2. Profit 2. Profit contribution by
a. Net profit a. Product
b. Market
c. Geographic areas
d. Major accounts
3. Expense 3. Expenses by
b. Total marketing a. Sub-department of marketing
b. Sales regions, districts,
territories.
4. Pricing Variances 4. Pricing variances by
a. Total a. Product
b. Market
c. Geographic area
5. Finished Inventories 5. Finished inventories in units by
a. Product
b. Plant
c. Field Warehouse
6. Order Backing in excess of 6. Order Backing in excess of
standard time to fill by: standard time fill by:
a. Total Taka Value a. Product
b. Average number of days b. Average days over standard
over standard product
17.0 ConclusionThe implementation of marketing plan must have room for flexibility. The plan may
require to be modified if there is any substantial change in the internal or external
environment.
