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In BPL believe that they manufacture and sell medicine to provide health, happiness and smile
back in life of our fellow citizens. We intend to help realize the ultimate aspiration of the nation
for a lifetime of good health ensuring a healthier tomorrow for the people.
Beximco Pharma is a leading edge pharmaceutical company, based in Dhaka, Bangladesh and is
acclaimed for outstanding product quality, world-class manufacturing facilities, product
development capabilities and outstanding service.
We produce and market ‘branded generics’ for almost all diseases from AIDS to cancer, from
infection to asthma, from hypertension to diabetes, for both national and international markets.
We also manufacture active pharmaceutical ingredients and intravenous fluids and contract
manufacture for major international brands of leading multinational companies. We partner our
activities to the humanities quest for longer, healthier, and happier life.
We employ more than 2,300 staff, including over 300 qualified specialists such as pharmacists,
chemists, microbiologists, engineers. As a listed company, Beximco Pharma’s shares are traded
on the London (LSE), Dhaka (DSE) and Chittagong (CSE) Stock Exchanges
This report has been prepared as a requirement of the internship program , Daffodil International
University (DIU). The organization attachment started on 1st may 2007 and ended on 31st july
2007 “Marketing of Pharmaceuticals product: A study on Beximco Pharmaceuticals Limited.”.
was assigned by Mr. Mohammad Masum Iqbal , Associate Professor was my academic
supervisor , Daffodil International University, Bangladesh .
Before discussing about the primary sources of this research project let us try to know first of the
basic concept regarding primary sources. The primary sources are that information which has
been collected for the first time relevant with –the research project. In this regard the primary
sources are the direct personal prescription observation from the chemist shop are been used
Different types of secondary data are included in this study report. Sources of secondary
information can be defined as follows Internal Sources:
brochures,
medical book
Annual report of 2005 and 2006 of Beximco Pharmaceuticals Ltd. Unpublished information
from the staffs of MRC dept.
Daily Note Book (containing my activities of practical observation of Beximco Pharmaceuticals
Limited) maintained by me. Internal records
Website
External Sources:
As an external secondary source of information I have taken data from some other reports of
other pharmaceuticals companies
1)Time limitation is one of the biggest limitations regarding this report. Due to lack of time
larger number prescription from different parts of the country can not been collected. 2)The
attendants of different chemist shops are sometimes not co-operative in survey activities. 3)As I
am a business student, it was sometimes become difficult for me identify the name of the product
referred by the doctors in the prescription for lack training and skills. 4). There were some
restrictions to have access to the information confidential by concern authority.
Once a product is brought to market, pharmaceuticals companies spend heavily on marketing and
promotion. The larger drug companies maintain a large sales force, which makes direct regular
contact with individual prescribing physicians and other pharmaceuticals decision makers. The
money spent on marketing is huge. Pharmaceuticals marketing efforts are not only directed at
physicians and consumers; drug companies have also sought to directly influence pharmacist, in
some cases paying pharmacist to induce customers to change their drug consumption habits.
The nature of competition in this industry differs between the two sets of firms. The second tier
of firms holds fewer patents and relies primarily on manufacturing off patent generic medicines
or patent medicines under license. Competition between these firms takes the conventional form
of competition on price, cost efficiency and quality. In contrast, a few large research-based
pharmaceutical companies invest heavily in R&D and hold the bulk of the patents, and can often
enjoy substantial market power while these patents are in force. For these companies,
competition is not primarily on the basis of price, but rather on the basis of marketing and
innovation. These companies compete to develop entirely new drugs which treat new medical
conditions, improve upon existing drugs, or serve as substitute for existing patented drugs. Some
large pharmaceutical companies in this tier export and compete in international markets.
The scenario of pharmaceutical industry can be depicted in two parts-before the Drug policy
ordinance, 1982 and after the Drug policy ordinance, 1982. Before the ordinance there were 177
pharmaceutical companies in the country but local production is used to be dominated by
multinational drug companies which manufactured 75% of total production. 25 medium sized
national companies manufactured about 15% of total production. 133 small local based
companies produced the remaining 10%. The multinational companies were fully armed with
modern technology for producing sophisticated essential drugs, but they were only engaged,
large extent, in formulation of simple drugs including many useless products. At that time, the
unregulated drug market of the country had very little favorable conditions for pharmaceuticals
to over price their products. Near monopoly market conditions mean that local firms could not
compete effectively with these multinational market tycoons.
A great change was noticeable in the pharmaceutical industry after the drug policy ordinance of
1982. The total national production of pharmaceuticals has risen by a substantial 63%; the value
of essential drugs made in national factories has gone up to 140% over the four years. At present
there are 260 national & multinational based pharmaceutical companies in Bangladesh.
Beximco is the largest business conglomerate of private sector in Bangladesh. Over the years
since started it could gain a position to symbolize effective management, fund generation, and
diversification of exploring business opportunities. Today it is one of the most known name is
the country’s business arena.
Beximco was the first private sector company to be registered in Bangladesh as a public limited
company in September 1972. Since then, Beximco has taken the lead in public equity offerings
in Bangladesh.
At the end of 1996, the ten publicly listed companies of the Beximco Group accounted for Tk.
33.87 billion or 20.4% of the market capitalization of the Dhaka stock exchange and Tk. 31.12
billion or 21.3% of the market capitalization in Chittagong stock exchange. Beximco shares are
also the volume leaders on the national bourses, accounting for 22.08% of turnover at the DSE
and 29.23% turnover at the CSE in 1996.
The Beximco Group has also played a pioneering role in establishing and expanding the debt
instruments market in Bangladesh. Beximco Pharmaceuticals Ltd was the first Group Company
to issue debentures in 1988 and has been followed by seven additional Groups companies since.
Beximco equities and debentures continue to perform the market as a rule, and have been often
rated as buys by several foreign investments firms such as UBS, Crosby Securities, Peregrine
and the erstwhile Smith New court. Beximco stocks are also well represented in the emerging
market funds portfolios of leading mutual funds world wide.
An emerging economy like that of Bangladesh needs not just newer and bigger industries, but
also a reliable service infrastructure, especially in financial services. Anticipating this, the Group
decided to start Beximco securities Ltd., which is the first firm formed especially for the retail
individual investor offering a customer friendly environment for its growing number of
individual clients. The firm is also aggressively engaged with institutional clients and issue
underwritings.
“Each of our activities must benefit and add value to the common wealth of our society. We
firmly believe that, in the final analysis we are accountable to each of the constituents with
whom we interact; namely: our employees, our customers, our business associates, our fellow
citizens and our shareholders. Each of our activities must benefit and add value to the common
wealth of our society. We firmly believe that, in the final analysis we are accountable to each of
the constituents with whom we interact; namely: our employees, our customers, our business
associates, our fellow citizens and our shareholders.” 3.3 MAJOR ACHIEVEMENT OF
BEXIMCO PHARMA
2000 : Agreement to manufacture Metered Dose Inhaler (MDI) for Glaxo SmithKline 2001 :
Introduction of Small Volume Parenterals (Injectables) Establishment of Analgesic-Anti-
inflammatory API plant 2002 : Won the first prize of ICAB National Awards 2000 for ‘Best
Published Accounts and Report’s Non- Financial Sector Category The first Bangladeshi
company to supply pharmaceuticals to Raffles Hospital- the most prestigious hospital of
Singapore 2003 : Received ‘National Export Trophy (Gold)’for consecutive 2 years (1998-99,
1999-2000) Won the Silver prize of ICAB National Awards 2003 for ‘Best Published Accounts
and Reports’ in Non-Financial Sector Category.
BPL also won a tender to supply Neoceptin -R and Neofloxin to Raffles Hospital of Singapore
for the whole year’s consumption. In this period BPL Introduced Anti-HIV drugs for the first
time in Bangladesh which Diversification into Anti-Cancer therapeutic class. 2004: signed
contract with Novartis to manufacture their liquid, cream, ointment and suppository products
under “Toll Manufacturing “agreement. Visit of Saudi delegated by Hon’ble Minister, Kingdom
of Saudi Arabia 2005: Merger of Beximco Infusions Ltd. With Beximco pharmaceuticals Ltd.
Admission to alternatives Investment market (AIM) of London Stock Exchange (LSE)
The introduction of pharmaceutical plant in 1979 marked the beginning of today’s chemical
divisions. BPL started its journey back in 1980 with manufacturing and marketing of licensee
products of Bayer AG, Germany an Upjohn Inc. of USA. After its initial years of struggle, it
broke ground with the launching of its own products in 1983. Today in addition to manufacturing
pharmaceutical formulations in dosage forms and basic chemicals at Beximco Pharmaceutical
Ltd, the divisions also produces intravenous fluids at Beximco Infusions Ltd. a state-of-art ISO
9001 certified intravenous fluid production facility.
The Chemical Division also has I & I Service Ltd, its own in-house organization for direct
distribution national wide. Today Beximco Pharmaceutical Ltd is one of the market leadings in
Bangladesh. The bulk of the profit BEXIMCO group comes from the chemical division. Its
quality services and high standard of professionalism helped to earn public recognition both
home and abroad. Today Beximco Pharmaceutical Ltd is one of the market leadings in
Bangladesh. Its success is evidence of what a strict focus on quality can achieve. Beximco
Pharmaceuticals product range continues to expand every year and each new product adds to the
many lives already improved.
A partnership with former Ciba-Giedy now Aventis of Switzerland, the Beximco Pharma center
for Etc & Industrial Research Ltd. was set up to conduct collaborative research programs through
which Beximco scientists will be developing high performance pigments, which Aventis will
screen for commercial potential and ultimate commercialization.
BPL operates its business through extensive departmentalization as needed. This is for specified
effectiveness of the tasks. The business activities of BPL, BIL and PCL are directed, controlled
and monitored from the head office of Beximco Pharmaceuticals Ltd. located at 7A, Dhanmondi,
Dhaka. Being a leading Pharmaceutical company in the country it employs good number of
people in different departments to keep its business thriving. The following major departments
coordinate the activities of BPL, BIL and PCL: Central product management (CPM) department
Planning department
Purchase Department
Sales department
Sales education and training department
Medical services department
Business Research & Development department
International marketing & fine chemicals department
MIS department
Finance and Accounts department
3.6.1 CPM Department
CPM stands for Central Product Management that takes care the total marketing of a product. It
includes selection of new product
design of new product
design of packaging
Introduction of the product to the market and others
The planning department ensures smoothness of total operation of BPL. It is concerned with the
following:
The production planning and
Raw material procurement.
Inventory Planning
Based on sales forecast from the CPM planning department breaks up the yearly sales forecast to
monthly basis and develop the planning of production, purchase and stock maintenance. It also
initiates the negotiation of purchase. It refers the suppliers’ quotations to the purchase
departments. Planning department try to ensure buffer stock of three months of all the raw
materials to meet any untoward events or circumstances in market.
In 1990 this department was formally announced as a separate department and the objective is to
provide continuously Medical Education program to the practicing doctors. It is involved in
indirect promotion of the company by helping the doctors with academic support. As a result it
causes a good image of the company among the doctors. As the medical science if an ongoing
process, many know about all those things unless and until they do through all medical journals.
In our country there are very few magazines on medical science. There are some good world
class medical journals which are very expensive. The medical service department of Beximco
Pharma prepares its own medical journal from other journals which are relevant to our medical
practices and supply it to the doctors at free of cost. So the doctors can know about the new
contribution of the medical world.
Every three months the department publishes a medical news letter of 24 pages. 22500 copies are
published among which 18000 copies are most important here is Beximco is the only company
in Bangladesh who has the initiative to publish such an article for the doctors. 4 to 5 booklets are
published in a year about disease related its available medicines in Bangladesh. MSD arranges
different seminars, meetings, symposiums on different topics of medical science. They focus on
a particular topic which has a significant affect in our medical practice recently.
Doctors are requested to deliver a speech on that particular topic. After their speeches a medical
officer of Beximco Pharma Ltd. gives a speech with the multimedia projection. They focus on
their products and their functions over the diseases. It keeps doctor’s request by making
multimedia projections for them that would be used by them nationally and internationally in
seminars and symposiums. Most important tasks of MSD here were adding video clippings
inside the presentations. Over 15000 requests were attended by MSD last year. BMA
(Bangladesh Medical Association) arranged clinical meetings are attended by MSD. It responds
to the queries of the doctors through mail or medical representatives around the country. 3.6.9
BRDD
Business development agent: It acts as the business development agent of BPL. It is the duty of
this department unveils the alternatives regarding business functions available in the world.
International Affairs: It tries to interact with WTO, USFDA (United States Food and Drug
administration authority), MCA (Medical Council) and other regulatory authority of the world.
Source Department: It searches of raw materials, accessories, and machineries around the world
and selects the best source available. International Market: It seeks for international export
markets for BPL products. Projects Development:
BPL is the only pharmaceutical company that has a multimedia department. This is helping the
product promotion. It designs medical videos for the doctor. The color, size, littering etc of the
text are carefully selected to attract the target audience easily. Major function of multimedia
department:
In 1991, the company took the challenge to venture into the international arena. At first it started
exporting only formulation product. There were many reasons not to export finished goods. The
reason are- Drug law imposed on finished products not on formulation products. Formulation
products do not require any registration operation. To register a finished goods bio-equivalence
test is required which is too much expensive.
In 1996 the company first started their finished goods export operation to Russia. After the war,
there was great demand of medicine. The people of Russia needed good medicine in a cheap rate.
Along with many multinationals Beximco Pharma started its operation in Russia. Beximco did
well there as it provided products in a cheap rate.
Bangladesh is a third world country and its image is not satisfactory in the world. So it is quite
tough to operate internationally. The marketing ream has to hard to convince the buyer.
POP (Prescription only products) – Only registered chemists can sell these pharmaceutical
products under the prescriptions generated by registered doctors. OTC (Over the counter) –
Anyone can buy and sell these products. Pharmacy products- Only registered chemists can sell
these pharmaceutical with or without a prescription of a doctor.
For govt. hospitals, army or govt., institution the company participate in the tender. Different
buying behavior has a great impact on marketing a product. Understanding the buyer’s buying
attitude is the fist job of any marketer. To analyze behavior, the marketer has to visit the place,
gain knowledge about their financial condition, culture tradition and the competitor’s position.
After analyzing the buyer’s attitude, the second important factor is to make the sales force
effective and efficient. International marketing department determine the process in which way
they will market the products. It depends on the various factors.
I think the following variable plays the most important part behind the success of Beximco
Pharmaceuticals Ltd. In Bangladesh and also across the globe. They are Distribution Strength.
Quality controls of BPL.
Product Innovation.
Use of modem technology in production.
People
Distribution of product is very important no matter how good product is. In case Beximco
pharmaceuticals Ltd. the distribution of BPL product is really good. In fact BPL has a
distribution unit I & I services Ltd which is the distribution wing of chemical divisions. It
maintained a large distribution network and covers over 25000 retail pharmacies every month all
over the country.
Quality is the ultimate factor that works in the mind of the customers which create brand image
at the end of day. The Beximco Pharmaceuticals Ltd. is known for its products. The strength of
BPL lies in its quality controls system and up to date manufacturing facilities. It has established
manufacturing facilities conforming to GMP and WHO standards. During all stages of
manufacturing operation from receiving raw material to the release of the finished product the
requirement of GMP are strictly adopted.
Product innovation is successive factor behind the success of Beximco Pharmaceuticals Ltd in
the pharmaceutical industry of Bangladesh. BPL knew that in order to survive in this challenging
market product innovation is need to focus on deeply. So, as result research and development
department were established in order to innovat new product, improving production process,
product quality for further strengthen the position of BPL in the industry. This R & D teams is
also continuously monitoring market feedback of various product to find ways of betterment
4.0.5. PEOPLE
BPL’s most vital resource is its people. Its dedicated team of professionals form various
disciplines are integrated in conducive environment to achieve companies objective. The people
of BPL strongly believe in the company’s philosophy of serving the nation and contributing to
the society. BPL’s over 1,981 young, energetic, professionals ensures the timely promotion and
smooth running of the product to every parts of the country. Thus this is another factor for the
success of BPL.
At the conclusion of this section I would like to say that now Beximco is a name of unique
quality, commitment for society, customers and all parties involved with BPL. Co-ordination of
this factor is another reason behind the success of BPL. If BPL could not make the co-ordination
between these variables then the situation might have been different from now.
After analysis the market share of the Beximco Pharmaceutical Limited, it shows that Beximco
Pharmaceuticals Ltd. is doing really well in the pharmaceuticals industry of Bangladesh in fact
Beximco Pharmaceutical Ltd. is one of the market leader in this industry. Beximco
Pharmaceutical is exporting their product in 19 countries and earning a lot of foreign exchange.
To me, I do not find any discrepancy between the survey findings of MRC and all partisan
approach In fact as Beximco Pharma is implementing the survey findings properly, they are
acting as the market leader in this pharmaceutical industry. MRC department conduct the survey
and prepare the survey report on monthly basis and send that report to CPM department. CPM
department analyze that report and implement the findings if they think it
as necessary
The current performance shows that Beximco Pharmaceuticals holds 19.26% market share in the
overall market.
Marketing is how you define, promote and distribute your project and maintain a relationship
with the consumers. Remember the five Ps: 4.2.1 Product
But prescription also shows that there are some products which have high demand in the market
in other way we can say that this product of BPL is contributing greatly for high market share.
These products are
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