1.1 INTRODUCTION
Even though there are a number of pharmaceutical companies in Bangladesh, most people do not get the proper medication here. For some particular treatment people still need to depend on the medicine imported from outside of the country. But it is really great news that some companies like Square Pharmaceuticals, Beximco Pharmaceuticals, ACME Laboratories Ltd. etc. are doing their best to fulfill the general needs of the medicine. And in this respect the pharmaceutical companies can be given the status "success". But still there are some lacking of professionalism in the pharmaceutical business. Square Pharmaceuticals is one of the best pharmaceutical companies of Bangladesh.
1.2 Origin of the report
In order to fulfill the partial requirement of the BBA program, my respected teacher Liza Khanam, lecturer Department of Business Administration, University of NUB assigned me to study Business level strategy of Square Pharmaceuticals Ltd. followed by a detail report.
1.3 Scope of this report
The scope of the report was based on the annual reports & web site, input from interviews of executives of the Square. To analyze the situation in question, I worked on focusing on Square Pharmaceuticals Ltd. Analyzing their objectives, market strategies, Market situations, product mixes, etc. The analysis was based on the exposed and available information only.
In-depth data were not always available on-demand due to some unavailable reasons. SWOT analysis of the company has been done. Some recommendations also have been worked out to improve the current situations for the company.
1.4 Objective of the study
The specific objectives aimed for this report is to conceptualize the current Business level strategy of SPL and to identify and suggest scopes of improvement in current strategy.
1.5 Methodology
Information used to prepare this report has been collected from both the primary and secondary sources which together provided more comprehensive information.
1.6 Collection of the data
An open discussion method was followed to gather primary information by informally interviewing the various executives of the company. Participants were purposefully selected as they commonly engaged in marketing directly or indirectly. Observations were also used to collect primary data while working in different desks.
The secondary data was accumulated from two sources- a. internal and b. external. The former sources were annual reports, periodicals, articles and brochures published by the company. But in the later case, journals, research papers and articles from various online sources.
1.7 Limitations of the Study This report suffered from several limitations:
• The most important of them was “time constraint”. Time was not adequate complete the study more perfectly.
• Another important limitation was “inaccessibility in many section of the organization”. I confronted difficulties in getting appointment from the desired respondents as well as appropriate response from the selected respondents due to being confidential for the company.
• This report also suffered from inadequate secondary information.
• This report’s factual accuracy may be compromised due to out-of-date information. • The findings may not be generalized to the SPL as a whole.
2.1 Background:
SQUARE Pharmaceuticals Limited (SPL) is the largest pharmaceutical company in Bangladesh and is leading the Pharmaceuticals sector from the very beginning. It has been continuously in the 1st position among all national and multinational companies since 1985. It was established in 1958 and converted into a public limited company in 1991. The sales turnover of SPL was more than Taka 7.5 Billion (US$ 107.91 million) with about 16.92% market share having a growth rate of about 23.17%.
Square Pharmaceuticals Limited is an organization with equal emphasis on Leadership, Technology, Quality and Passion. Square Pharmaceuticals Ltd. is the leading branded generic pharmaceutical manufacturer in Bangladesh producing quality essential and other ethical drugs and medicines.
SQUARE today symbolizes a name - a state of mind. But its journey to the growth and prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player.
2.2 Management Apparatusmanagement Apparatus
BOARD OF DIRECTORS
Mr. Samson H. Chowdhury Chairman Mr. Samuel S. Chowdhury Vice Chairman
Mr. Tapan Chowdhury Managing Director
Dr. Kazi Harunar Rashid Director
Mr. M. Sekander Ali Independent Director
Ms. Ratna Patra Director
Mr. Anjan Chowdhury Director
Mr. Kazi Iqbal Harun Director
Mr. K. M Saiful Islam Director
AUDIT COMMITTEE
Mr. M. Sekander Ali Chairman
Mr. Samuel S. Chowdhury Member
Mr. Kazi Iqbal Harun Member
MANAGEMENT COMMITTEE
Mr. Tapan Chowdhury Chairman
Mr. K M Saiful Islam Member
Mr. Parvez Hashim Member
Mr. M. Ashiqul Hoque Chawdhury Member
Mr. Muhammadul Haque Member
Mr. Md. Kabir Reza, FCMA Member SENIOR CORPORATE OFFICIALS
Mr. Md. Kabir Reza, FCMA Chief Financial Officer Mr. Khandaker Habibuzzaman, MBA, ACS Company Secretary Md. Majibur Rahman Bhuiyan, M.Com Head of Internal Audit COMPANY SECRETARY
Mr. Khandaker Habibuzzaman, MBA, ACS AUDITORS
M/s. Chowdhury Bhattacharjee & Co. Chartered Accountants
47/2, Indira Road
Dhaka-1215, Bangladesh
LEGAL ADVISORS
Mr. Rafique-ul Huq, Bar-at-Law 47/1, Purana Paltan, Dhaka
Mr. Rokanuddin Mahmud, Bar-at-Law Walsow Tower
21-23, Kazi Nazrul Islam Avenue, Dhaka Mr. M. Moniruzzaman Khan, Bar-at-Law City Heart
67, Naya Paltan, V.I.P Road, Dhaka Ms. Nihad Kabir, Bar-at-Law House No. 62, Road No. 11A Dhanmondi, Dhaka
BANKERS
Janata Bank Ltd.
1, Dilkusha C.A, Dhaka Citibank N.A
109, Gulshan Avenue, Gulshan, Dhaka Standard Chartered Bank
67, Gulshan Avenue, Gulshan, Dhaka Commercial Bank of Ceylon Ltd. 2, Dilkusha, C.A, Dhaka
Eastern Bank Ltd.
31, North C.A, Gulshan Circle-2, Dhaka Mercantile Bank Ltd.
61, Dilkusha C.A, Dhaka Bank Alfalah Ltd.
5, Rajuk Avenue, Motijheel, Dhaka Shahjalal Islami Bank Ltd.
House-6, Road-32, Gulshan Avenue, Dhaka
Trust Bank Ltd.
110, Gulshan Avenue, Dhaka
Bank Asia Ltd.
82, Mohakhali C.A, Dhaka INSURERS
Pioneer Insurance Co. Ltd. 10, Dilkusha C.A, Dhaka Pragati Insurance Co. Ltd. 20-21, Kawran Bazar, Dhaka LISTING
Dhaka Stock Exchange Ltd. Chittagong Stock Exchange Ltd. REGISTERED OFFICE "Square Centre" 48, Mohakhali C.A Dhaka-1212, Bangladesh Phone: 8833047-56, 8859007 www.squarepharma.com.bd FACTORIES
• Square Road, Salgaria, Pabna, Bangladesh
• Board Ghar Bazar
Kaliakoir, Gazipur, Bangladesh.
2.3 CORPORATE HISTORY Year of establishment(Initially as a partnership)
: 1958
Incorporated as a private Limited
Company : 1964
Technical collaboration agreement with Janssen Pharmaceuticals of Belgium (a subsidiary of Jhonson & Jhonson International Ltd.)
: 1975
Technical collaboration agreement with F.
Haffman-La Rache & co. Ltd. : 1984 Converted into Public Limited company : 1991 Initially Public Offering (IPO) : 1994
Stock Exchange listing : 1995
Agreement with M/s Bovis Tanvec Ltd. Of UK for Implementation of Dhaka Plant
: 1996
Awarded ISO-9001 Certificates : 1998 Awarded UK-MHRA Certificates : 2007
Business lines : Manufacturing & Marketing of Pharmaceutical finished Products, Basic Chemicals, Agro vet products & pesticide products.
Authorized Capital : TK. 5,000 million
Paid-up Capital : TK. 894.24 million
Number of Employees : 3,564
Subsidiary Company : Square Spinning Ltd.
Square Cephalosporin’s Ltd. Square Biotech’s Ltd.
Associate Company : Square Textile Ltd.
Square Knit Fabrics Ltd. Square Fashions Ltd. Square Hospitals Ltd.
2.4 Vision
Square views business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.
2.5 Mission
Its Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large.
2.6 Objective
Its objectives are to conduct transparent business operation based on market mechanism within the legal & social frame work with aims to attain the mission reflected by its vision. 2.7 Corporate Focus
Its vision, mission and objectives are to emphasize on the quality of product, process and services leading to growth of the company imbibed with good governance practices.
2.8 Management Philosophy
The Philosophies as have been adopted by Square Pharmaceuticals Ltd. are as follows: • Bangladesh should support and respect the protection of internationally proclaimed
human rights within their sphere of influence; and
• Make sure that they are not complicit in human rights abuses.
• Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
• The elimination of all forms of forced and compulsory labor. • The effective abolition of child labor and
• Eliminate discrimination in respect of employment and occupation.
• Business should support a precautionary approach to environmental challenge. • Undertake initiatives to promote greater environmental responsibility; and
• Encourage the development and diffusion of environmentally friendly technologies • Business should work against corruption in all its forms, including extortion and
bribery.
• Square strives, above all, for top quality health care products at the least cost reaching the lowest rungs of the economic class of people in the country. Square values our social obligations.
• Square owes our shareholders and strive for protection of their capital as well as ensure highest return and growth of their assets.
• Square strives for equality between sexes, races, religions and regions in all spheres of our operation without any discriminatory treatment.
• Square strives for an environment free from pollution and poisoning. Square strives for the achievement of millennium development goals for the human civilization. Promotion (Personal Selling through relationship) 8
Square Pharmaceuticals Ltd. is follows Integrated Low cost/Differentiated Business level strategy.
3.1 Firms using an Integrated Strategy may: • Adapt more quickly
• Learn new skills and technologies.
• Utilize flexible Manufacturing Systems to create differentiated products at low costs. • Leverage core competencies through Information Networks across multiple business
units.
• Utilize Total Quality Management (TQM) to create high quality differentiated products which simultaneously driving down costs.
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Advantages of Integrated Strategy
A Firm that successfully uses an integrated cost leadership/differentiation strategy should be in a better position to:
• Adapt quickly to environmental changes
• Learn new skills and technologies more quickly
• Effectively leverage its core competencies while competing against its rivals. Disadvantages of Integrated Low cost/differentiated Strategy
• Recognize that the Integrated Low cost/Differentiation business level strategy involves a Compromise.
• The risk is that the firm may become “Stuck in the Middle” lacking a strong commitment to or expertise whit either type of generic strategy.
Promotion
(Personal Selling through relationship)
3.2 Market Expansion Strategy of SPL
MARKETING MIX
Before going into deeper, we should define the present marketing mix of SPL which is figured out in the following model:
a) Market Segments:
The main basis of segmenting market in Bangladesh is therapeutic drug i.e. NASAL DROPS, ANTIBIOTIC etc. Presently SPL has the largest product portfolio to serve as many segments as possible. It consistently strives to make it larger. Its present segments are identified in the product table.
b) Target Customers:
Rather than the consumer of the medicine, the key customers for SPL have been the physician. Physicians are considered here as opinion leader. The major innovative drugs can not be purchased without a prescription provided by a doctor. SPL’s main selling task has been directed therefore, not at the user, but at physicians. Doctors and physicians are segmented on the basis of its therapeutic drug segment. As for example, NASAL DROPS products are communicated at E.N.T specialists. Therefore, if SPL has NASAL DROPS product line, then E.N.T specialists are treated its target customers. Besides this, general physicians are also its target customers.
Product (Medicine) Price (All most regulated) Promotion (Personal Selling through relationship) Place (Domestic & foreign) Target Customer (Doctors & Physicians) 10
c) Value Proposition:
SPL has presently been offering its products to its market segment with the value proposition “Utmost quality, excellent efficacy”.
d) Product:
SPL develops, produces, and markets drugs of different therapeutic groups licensed for use as medications.
The Bangladeshi Pharmaceutical Market is primarily a generic market producing both patented and off-patented products. This is popularly known as Branded Generic Market since any manufacturer can produce the same molecule (either patented or off-patented) and market it in different brand names. SPL is not beyond this scenario. It produces off-patented molecule and market it in its own brand.
The product list according to generic segment can be found in appendix part. e) Price:
Drug pricing is heavily dependent on the National Drug Policy adopted by directorate of Drug Administration of Bangladesh Govt. agencies act as a countervailing power in pricing pharmaceuticals.
As per the NDA 2005, regulatory authority pursuing “Rational pricing” of drugs to ensure essential drugs available to the end-users at affordable prices. On the basis of that policy, SPL has been pursuing two different kinds of pricing
policy-a. For OTC product, all most similar price as the competitors’ b. For POM product, competitive pricing.
There are also few exceptions. If SPL introduces a product first in the market, it charges little bit higher price than its competitors, but within the rules and regulations of Drug Administration.
f) Place:
SPL has the strongest domestic distribution network for smoothing distribution of medicines to all parts of the country. Currently it has 15 depots all over the country. Those are situated at Dhaka, Pabna, Bogra, Rangpur, Khulna, Barisal, Comilla, Mymensingh, Chittagong, Noakhali, Sylhet, Tangail, Rajshahi, Faridpur and Naryanganj. It uses own transport system to deliver its product to the stockist and retailer.
SPL also exports its products to 31 countries:
Present export market covers Myanmar Papua New
Guinea
Comoros Island Bhutan
Tanzania Nepal Gambia Niger Tajikistan
Afghanistan Mauritius Sierra Leone Macau countries Rwanda
Libya Malawi Kosovo Kenya
Iraq Sri Lanka Somalia Yemen
Cambodia Ukraine Uzbekistan Vietnam
Mozambique Benin Botswana Ghana
g) Promotion:
Public advertisement for medicine, especially POM drug is strictly prohibited in Bangladesh. But it may be done for OTC medicine to some extent. However, no pharmacy company in Bangladesh is engaged in such advertisement.
SPL heavily depends on personal selling through rapport building and maintaining. A team of sales representatives, called MPC have been employed to meet with physicians to explain the merits, demerits, indication, contraindications, etc. of the medicine with the help of literature, brochure, pad, booklet, leaflet, gift item etc. That is, the Medical Promotion Officers promote the companies product to doctors front with the help of different promotional materials. If a new drug is to be more expensive, then it needs to demonstrate that its superior performance is worth it.
3.3 Marketing Problems of SPL
After analyzing its present market expansion strategies the following problems have been found in it:
1) It seems that SPL pursuing “prescription for profit” strategy for market penetration. It is partially good, but may not be perfect as the completion is very hard. There are some other parties who have the scope and ability to act as “opinion leader” and to motivate the buyer. These potential “opinion leaders” are remaining unexploited. SPL has enough resources to let them add value to the company.
2) I didn’t find SPL adopting any strategy to create brand loyalty. But client is more profitable than customer in terms of both transaction as well as positive word-of-mouth
communication. He himself can be an opinion leader.
3) At present, SPL gets only 20% raw materials from its API plant and the rest are to be imported. It increases product cost.
4) Market should not be segmented only on the therapeutic drug basis.
5) Holding the heaviest product portfolio should not be the ultimate goal at all. Emphasis must be given on how early a new product can be launched in the market place than the competitor.
3.4 PRESENT MARKET POSITION
3.5 FINANCIAL RESULTS
[
The operating financial results of the Company for the year 2008-2009 as compared to previous year are summarized hereunder:
PRESENT FINANCIAL POSITION
Capital Resources
ASSETS 31-03-2009 31-03-2008
Non-Current Assets: 8,291,290,984 6,804,429,292
Property, Plant and
Equipment-Carrying Value
4,008,432,171 3,531,003,509 Capital Work-in-Process 591,114,649 481,239,419 Investment Long term(at
cost)
3,611,744,164 2,792,186,364
Current Assets: 4,411,836,436 3,682,510,712
Inventories 2,026,736,322 1,544,191,798
Trade Debtors 360,245,646 322,864,637
Advances, Deposits &
Repayments 288,806,440 236,455,395
Investment in Marketable
Securities(at cost) 20,250,000 20,250,000
Short Term Loan 1,510,502,334 1,418,893,703
Cash & Cash Equivalents 205,295,694 139,855,179
Total Assets 12,703,127,420 10,486,940,004
BUSINESS PORTFOLIO
Subsidiary Operation Long-term investment Investment In Marketable Securities
Square Spinning Ltd. Square Textiles Ltd. Shares Pioneer Insurance Company
Square Cephalosporin’s Ltd. United Hospital Ltd. Square Biotech’s Ltd. National Housing Finance
and Investment Ltd. Central Depository
Bangladesh Ltd. Square Hospitals Ltd. Square Knit Fabrics Ltd.
Square Fashions Ltd. Square Informatics’ Ltd. BALANCE SHEET As at 31 March 2009 31-03-09 31-03-08 ASSETS: Non-Current Assets: 9,407,730,001 8,291,290,984
Property, Plant and Equipment-Carrying Value 4,899,679,832 4,088,432,171 Capital Work-in-Progress --- 591,114,649 Investment - Long Term (at Cost) 4,508,050,169 3,611,744,164
Current Assets: 3,843,512,855 4,411,836,436
Inventories 2,098,755,231 2,026,736,322
Trade Debtors 477,562,002 360,245,646
Advances, Deposits and Prepayments 260,330,162 288,806,440
Investment in Marketable Securities (at Cost) 20,250,000 20,250,000 Short Term Loan 693,157,720 1,510,502,334
Cash and Cash Equivalents 293,457,740 205,295,694
TOTAL ASSETS (TK.) 13,251,242,856
12,703,127,420
SHAREHOLDERS' EQUITY AND LIABILITIES:
Shareholders' Equity: 9,949,397,634 8,417,040,705
Share Capital 1,207,224,000 894,240,000
Share Premium 2,035,465,000 2,035,465,000
General Reserve 105,878,200 105,878,200
Tax Holiday Reserve 1,101,935,237 1,101,935,237
Retained Earnings 5,498,895,197 4,279,522,268
Non-Current Liabilities: 660,976,668 785,241,612
Long Term Loans – Secured 449,757,608 602,584,615 Deferred Tax Liability 211,219,060 182,656,997
Current Liabilities: 2,640,868,554 3,500,845,103
Short Term Bank Loans 1,534,345,782 2,669,693,184
Long Term Loans - Current Portion 295,590,601 297,002,646
Trade Creditors 124,222,699 100,953,258
Liabilities for Expenses 69,573,702 32,290,235 Liabilities for Other Finance 617,135,770 400,905,780
TOTAL SHAREHOLDERS EQUITY AND LIABILITIES (Tk) 13,251,242,856 12,703,127,420
INCOME STATEMENT
For the Year Ended 31 March 2009
2008-2009 2007-2008 GROSS TURNOVER 11,363,597,928 9,565,715,902
Less: Value Added Tax 1,545,801,360 1,307,872,163
____________ ____________ NET TURNOVER 9,820,796,568 8,257,843,739 COST OF GOODS SOLD (5,672,565,973) (4,856,061,933) _____________ ____________ GROSS PROFIT 4,148,230,595 3,401,781,806 Operating Expenses: (1,779,793,368) (1,692,475,988)
Selling and Distribution Expenses (1,319,362,317) (1,220,979,268) Administrative Expenses (460,431,051) (471,496,720) PROFIT FROM OPERATIONS 2,368,437,227 1,709,305,818
Other Income 665,520,915 604,628,504
Financial Expenses (397,135,963) (351,868,423) NET PROFIT BEFORE WPPF 2,636,822,179 1,962,065,899 Allocation for WPPF (125,562,961) (93,431,709) NET PROFIT BEFORE TAX 2,511,259,218 1,868,634,190 Provision for Income Tax (592,644,226) (409,660,827) Provision for Deferred Income Tax (28,562,063) (77,110,270) NET PROFIT AFTER TAX (TK) 1,890,052,929 1,381,863,093 (Transferred to the Statement of Changes in Equity)
Earnings per Share (EPS) (TK) 156.56 114.47
CASH FLOW STATEMENT For the Year Ended 31 March 2009
2008-2009 2007-2008 Cash Flows from Operating Activities:
RECEIPTS:
Collection from Sales 9,706,402,257 8,231,097,525 Others 466,326,850 449,727,661 10,172,729,107 8,680,825,186 PAYMENTS:
Purchase of Raw and Packing Materials 4,595,248,761 4,434,614,344 Manufacturing and Operating Expenses 2,152,581,352 2,075,086,488 Bank Interest 397,135,963 351,868,423 Income Tax 475,997,448 458,227,366 Workers Profit Participation Fund 60,192,228 58,051,027 Others 7,684,822,669 7,379,996,482 Net cash provided by operating activities 2,487,906,438 1,300,828,704 Cash Flows from Investing Activities:
Purchase of Fixed Assets (877,960,724) (1,106,201,471) Disposal of Fixed Assets 8,806,250 8,985,055 Investment in Square Hospitals Ltd. (500,000,000) (500,000,000) Investment in National Housing Finance & Investment Ltd. ---- (3,157,800) Investment in Square Biotech’s Ltd. (150,000,000) (316,400,000) Investment in Square Multi Fabrics Ltd. (249,500,000)
----Capital Work-in-Progress ---- (109,875,230) Sale of Marketable Securities 67,289,225 ----Interest Received 89,551,011 112,595,980 Dividend Received 42,007,687 40,197,168 Net cash used in investing activities (1,569,806,551) (1,873,856,298) Cash Flows from Financing Activities:
Long Term Loan Received 151,162,607 414,288,000 Long Term Loan Repaid (305,401,660) (237,046,566) Short Term Bank Loan Increase/Decrease (1,135,347,402) 850,915,306 Short Term Loan Increase/Decrease 817,344,614 (91,608,631) Dividend Paid (357,696,000) (298,080,000) Net cash (used)/provided by financing activities (829,937,841) 638,468,109 Increase in Cash and Cash Equivalents 88,162,046 65,440,515 Cash and Cash Equivalents at the Opening 205,295,694 139,855,179 Cash and Cash Equivalents at the Closing (TK) 293,457,740 205,295,694
SWOT ANALYSIS
The SWOT Analysis comprises of the organizations internal strengths, weaknesses, external opportunities, and others. SWOT analysis is an important tool for evaluating the company’s strengths, weaknesses, opportunities, and others. It gives an organization an insight of what they can do in future and how they can compete with their existing competitors. This tool is very important to identify the current position and performance of the organization relative to others, who are playing in the same field and used in the strategic analysis of the organization.
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
4.1 STRENGTHS:
Square is the largest private sector industrial conglomerate in Bangladesh. Square is more efficient and leading company in pharmaceutical industry for their strengths. Their strengths are given below:
The well qualified employees are strength of Square. Huge experience in the pharmaceutical market Used modern and sophisticated technology Strong research and development division Highly Skilled workforce, efficient management Strong brand recognition, outstanding service Price of Cephalosporin is very competitive World class manufacturing facilities.
4.2 WEAKNESSES:
The chain of command of Square is elongated, which takes long time to take any decision. In reality Square has insignificant weakness in strategy
Need more smooth distribution channel
Less prescription share compared to the competitors. ,t Ineffective and inefficient detailing of FPs
In case of product launching Square is follower rather than to become pioneer. Some of the Cephalosporin’s are showing negative growth
4.3 OPPORTUNITIES:
The pharmaceutical market of Bangladesh is booming rapidly, so Square has a huge scope to do better.
Today technology is more advanced and sophisticated which opens the door of the new generation of medicine.
More and more health care centers and hospital are being established Square has scope to penetrate in those.
Globalization opens the door of new era for Square.
Established & Growing market segment. Can be penetrated easily in the market
4.4 THREATS:
There are lots of big pharmaceutical companies established in market in the country, which create more competition .So that is a threat for Square.
Increase the price of raw material Lack of availability of raw material Huge import tax
Competitor increase day by day
5.1 Conclusion:
The purpose of this paper has been to analyze the market expansion activities of Square Pharmaceuticals Ltd. SPL is a very big business organization. Therefore, it’s very difficult on my part to analyze its each and every strategy precisely in this small study.
There can be various ways through which a business organization can achieve success in the market, after scanning its external & internal environment and considering all alternatives, I have tried my level best to sort out the best way as per my thinking ability for SPL to run ahead.
But finally I can say this much that it has a large potential both in the short and long run due to its sound distinctive competencies.
5.2 Recommendations:
New Category Opinion Leader
Doctors are the only opinion leader in SPL’s present strategy. It may be partially good, but can not be perfect as the completion becomes more intense day by day. There are some other parties who have the scope and ability to act as “opinion leader” and to motivate the buyer. These potential “opinion leaders” are remaining unexploited. SPL has enough resources to let them add value to the company.
Customer Once, Client for ever
Client is more profitable than customer in terms of both transaction as well as positive word-of-mouth communication. He himself can be an opinion leader. So, I am suggesting adopting some programs that will let its customers be transformed into clients. The following model would better describe this concept:
SPL has a strong brand image in pharmaceutical industry. It will facilitate this strategy. I am citing some instances here which may be useful for this strategy:
a. Mobile Hospital service with free treatment and medicine. b. Health awareness program in rural area.
c. Modernization of educational institute or public hospital etc.
Keep Pace with the Race
Today’s world is changing very rapidly, in every sphere. Therefore, updating production plant alone is not enough to cope with the new environment. SPL has to have a keen eye if there is any change in HR development, transport, information technology, consumer relation management, medical science and so on.
Integrate Greatly
SPL imports 80% raw materials of its total requirements. This is a weakness if it wants to consistently expand its market. So it requires either more API plants or increase in present production capacity.
Discover the undiscovered
Pharmaceutical value chain is a bit different from traditional value as it includes an additional step “Discovery”. In the start this step is a vital strength of any pharmaceutical company. SPL lacks this component in its value chain
Innovation is the Destination
Pharmacy is on the brink of a scientific and technological revolution that will ultimately transform both the nature of the medicines it makes and how it makes them. In future, then, Pharmacy will not only make the white powders, creams and tablets it has traditionally produced, it will manufacture a complete mix of biopharmaceuticals, parenterals and diagnostics. Making targeted treatment solutions will generate greater revenues than conventional drugs and offset the increasing competition from generic producers. But it will also require the restructuring of the entire pharmaceutical value chain, including the fixed asset base and downstream distribution.
Segment the Current Market Segment
SPL is in need of more segmentation tools in an ongoing effort to establish close and sustainable relationships with customers.
Bibliography
⇒ Annual Reports of Square Pharmaceuticals Ltd. ⇒ www.squarepharma.com.bd
Glossary
In this report, we use some technical words and these are flowing with explanation:
SPL: Square Pharmaceuticals Ltd. IMS: Information Medical Statistics WTA: World Trade Agreement
MRPC: Market Research Planning & Cell
API:Active Pharmaceutical Ingredients.
DDA: Directorate of Drug Administration. POM: Prescription Only Medicine
