5-1

Marketing-
Local and Global

5.1 Pharmaceutical Marketing

Pharmaceutical marketing can be defined as a process by which market for pharmaceutical

care is actualized. It encompasses all the activities carried out by various individuals or
organizations to actualized markets for pharmaceutical care. The in pharmaceutical marketing
is on pharmaceutical care not just on drugs.
The emphasis in this definition is on pharmaceutical care, indicating that the justification for
the existence of pharmaceutical marketing is the patient, and not the manufacturer or the
pharmacist. Any party interested in the exchange for pharmaceutical care may undertake
pharmaceutical marketing activities.

5.2 International Marketing

International marketing is the process to actualize the potential overseas market of a given
commodity. In other word international marketing is the marketing activities crossing the
national boundary. International marketing of pharmaceutical product is the process through
which the pharmaceutical care is actualized crossing the national boundaries. The main target
of international marketing of pharmaceutical products is to convey the proper pharmaceutical
care to the patient worldwide. Beximco Directly Exports pharmaceuticals product to
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Australia, Bhutan, Cambodia, Chile, Ghana, Hong Kong, Indonesia, Jordan, Kenya, Kuwait,
Malaysia, Myanmar, Nepal, Pakistan, Philippines, Saudi Arabia, Singapore, Sri Lanka,
Vietnam and Yemen.
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5.3 Marketing Mix

The combination of some component is marketing mix that is very much essential for proper
marketing of a product as well as for the survival of the company. These components are
known as 5 P’s. These components are _______

i) P – Product
ii) P – Price
iii) P – Place
iv) P – Promotion and
v) P – People.
du
Pro
ct

rice
P

Marketi
ng
Mix

Place
ple
Peo

o
m ot i
o
Pr n

Figure 5.1: Marketing Mix

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5.4 Channel of Distribution of Beximco pharmaceutical Products

Channel of distribution of pharmaceutical product is the channel through which

pharmaceutical products are distributed among the customers. Various types of distribution
channel of pharmaceutical product in overseas market are as stated below:

i) Manufacturer Patients.

ii) Manufacturer Wholesaler Retailer Patients.

iii) Manufacturer Agent Wholesaler Retailer Patients.

iv) Manufacturer Tenderer Patients.

5.5 Types of Exchange of Pharmaceutical Products

Mainly three types of exchanges of pharmaceutical products are found in the pharmaceutical
market. These exchanges are stated below:

i) Dynamic Exchange

Payment

Pharmacist Patients

Drugs

ii) Complex Exchange

Pharmaceutical Drug Pharmacist Patients

Manufacturers
Drug Drug Drug
Wholesaler
Payment Payment Payment
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iii) Interactive Exchange

Information Physician
Product

Information
Payment

Information
Title Title Title

Pharmaceutical Product Product Product

Manufacturer Drug Pharmacist Patient
Information Wholesaler Information Information
Payment Payment

Information
Payment
Information

Payment
Third
Party

Figure 5.2. Examples of Types of Exchanges in the Pharmaceutical Market

4.9 Market Scenario

In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors
which is contributing in the country's economy. The national companies account for
more than 65% of the pharmaceutical business in Bangladesh. Except Beximco Pharma other
leading companies are Square Pharma, Incepta Pharmaceuticals. Navana Pharma Ltd.,
Opsonin Chemical Industries Ltd.,Aventis Pharma Ltd. Etc.Among them Square Pharma is
the market leader at this moment. BPL follows Square Pharma at the 2nd position. The
analysis of the two company’s financial data shows that for the year 2007-2008gross profit of
BPL was 1,629,514,837(BDT) and Square Pharma was 3,401,781,806 (BDT) .There are a
number of reasons why BPL could not beat Square Pharma for the first position.The
most relevant of them are stated here.

Fewer Markets Served: Square Pharma serves a larger market than BPL while BPL
concentrates on market focus. For example, unlike Square Pharma BPL does not do business
in the credit market. They only serve the premium market.

Producing Injectables: Again BPL does not manufacture or market Injectables where
this is ahuge market. In contrast, Square Pharma has a range of 44 injectables and has
sold28,289,000 units in the year 2007-2008.
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Product Range: BPL has a fewer range of products than Square Pharma does.
BPLmanufactures only over 400 products in comparison to Square Pharma’s over
600products.In international market the main competitors for pharmaceutical companies
in our country areIndia and China. The challenge faced in open market competition is the
scarcity and unavailability of raw materials in local market. So, companies in our country
have to import these materials fromabroad (India, China and a few countries from
Europe) at high price. Besides, the privileges of being LDC as a result of the Patent Law will
no longer be in effect after 2015.

4.10 Business level Strategy Pursued

Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company is acclaimed for its
outstanding product quality, world-class manufacturing facilities, product development
capabilities and outstanding professional services. Beximco Pharma is the pioneer in
pharmaceutical export from Bangladesh and has received National Export Trophy (Gold), the
highest national accolade for export, for record three times Beximco Pharma has adopted
several Business Level Strategies regarding growth and market focus with the view to
achieving organizational goals. As Growth Strategy BPL have decided to enter into
nine new international markets in Asia, Middle East, Pacific Islands, Africa and
Central America and have registered 107 products in different markets. Besides, BPL
signed a Long Term Arrangement with the Global Supply Division of UNICEF(Denmark)
to supply 60,000 units CFC free metered dose inhaler product over a two year contract
period. During the first quarter of 2008, BPL has entered into 3 new international
markets-namely, Afghanistan, Kiribati and Solomon Islands. Their Short Term plan to
build facility tomanufacture Small Volume Parenterals (SVP), Opthalmic and
Nebulizer Solutions hasprogressed as scheduled. They are planning to commence
marketing of these products by first quarter of 2009.Their strategic strengths include strong
recognition of brands, highly skilled work force anddiversified business mix. Their two
brands - Neoceptin R (Ranitidine) and Napa (Paracetamol) are thetop two selling brands in
the Bangladesh Pharmaceutical market.

4.11 Relationship between Business Level Strategy and

Performance
Beximco Pharma (BPL) is a leading edge pharmaceutical company is acclaimed for its
outstanding product quality, world-class manufacturing facilities, product development
capabilities and outstanding professional services. Its strategic strengths include strong
recognition of brands, highly skilled work force and diversified business mix. Being a
Learning Organization the core essence of Beximco Pharma is its entrepreneurial spirit in
every sphere of its management. In this spirit, the tasks of each managerial function are
carried out through Management by Objective approach. The recipient of three times `gold'
national export trophy, Beximco Pharma is the largest exporter of pharmaceuticals from
Bangladesh. They are the only pharmaceutical company in Bangladesh received this highest
national accolade for export, for record three times. They market their brands through their
own professional sales and marketing teams in African, South Asian and other markets. The
firm also supply products to renowned hospitals and institutions in many countries, including
Raffles Hospital and K K Women & Childrens' Hospital in Singapore, MEDS and Kenyatta
National Hospital(KNH) in Kenya, Jinnah Hospital, Agha Khan Hospital and Shaukat
Khanum Memorial Hospital in Pakistan. Beximco Pharma is also an enlisted supplier of
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World Health Organization (WHO) and UNICEF. Beximco Pharma has a strong market
focus and is anticipating continued future growth by leveraging business capabilities and
developing superior product brands and markets. In particular they are very interested in
developing a strong export market in USA and Europe. To meet the future demand they have
invested over US 50 million dollar to build a new state-of-the-art manufacturing plant,
confirming to USFDA and UK MHRA standards. This new plant will also offer contract-
manufacturing facility to leading pharmaceutical companies, especially from Europe and US.
Business level strategies developed by BPL help them to earn competitive advantage
through quality products, superior services, and outstanding customer relationship.
Innovation strategies have been the key to their success both in product differentiation and in
product promotion. BPL had been the first-mover to bring Marketing Approach rather than
traditional Selling Approach in local pharmaceuticals industry. BPL also believes in
Focus Strategy and concentrates on a particular segment of the market. They strive to retain
existing customers as well as to attract new ones.BPL has developed unique customer
service through their Unbiased Medical Service. BPL has also developed superior
human resource for earning competitive advantage in the market.

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