A Study on Marketing Mix Activities of ABC Trading Co.,LtdSupervised by Presented byDr. Aye Thanda Soe Ma Hnin Thiri ChawLecturer Roll No. 4Department of Management Studies MBA-II (16th Batch)Yangon Institute of Economics
Rationale of the Study In the early of 1990, most of the people in Myanmar depends on the BPI( BurmaPharmaceutical Industry).Now a day, healthcare is very important to create a quality of life because of highglobal competition and changing life style. The number of pharmaceutical importers are growing and it becomes a growinBPharmaaceutical market in recent year.ABC is one of the trading companies in Myanmar which import, distribute,promote the A Pharma Products and B Pharma Products and Walmark Products.This study will explore the marketing mix activities of ABC Trading Co.,Ltd.
Objectives of the StudyTo analyze the product activities of ABC Trading Co.,Ltd in Yangon.To explore the pricing strategies of ABC Trading Co.,Ltd in Yangon.To examine the distribution channels of ABC Trading Co.,Ltd in Yangon.To analyze the promotion activities of ABC Trading Co.,Ltd in Yangon.
Methods, Scope and Limitation of the Study Methodology - Descriptive research Primary Data - Interview to owners, managers from ABC Co.,Ltd Secondary Data - Facts and figures from company’s historical records, Text books, Lecture notes, and internet websites This study will focus on ABC Trading which is located in Shwe Gon Daing, Bahan Township, Yangon. This study will focus only on marketing mix activities of B Pharma and A Pharma. This study will not focus the C brand because it launched six month ago and the data of C brand is not sufficient to analyze. It does not represent the whole pharmaceutical industry in Myanmar.
Pharmaceutical Import Products in Million Kyat in Five Fiscal Year Sr Fiscal Year (April to Pharmaceutical Total Import in Pharmaceutical March) Import in Million Million (kyat) Import Percentage z (kyat) of Total Import(%) 1 2007-2008 636.6 18418.9 3.4 2 2008-2009 679.0 24873.8 2.7 3 2009-2010 797.7 22837.4 3.4 4 2010-2011 1002.9 35508.4 2.8 5 2011-2012 1019.6 43958.3 2.3Source: Import of Principal Commodities, Central Statistical Organization (CSO),(2012)
Major Import Type of Commodities in Fiscal Year 2012-2013 (until july) in Million US DollarSr. Title Total Amount($ ‘000 000) 1 Petroleum Products 701.17 2 Motor Vehicle and Spare Part 415.08 3 Iron and Steel Construction Material 228.64 4 Machinery and Spare Parts 156 5 Palm Oil 112.86 6 Pharmaceutical 88.94 7 Plastic Raw Materials 71.85 8 Fertilizers 51.07 9 Cement 45.54 10 Electric Distribution Materials 35.51 Source: Ministry of Commence, Department of Border Trade (2012)
Myanmar Pharmaceutical MarketSr. Myanmar Pharmaceutical Market Percentage of Total Sale (%) 1 Yangon and Mandalay Market 60 2 Other markets except Yangon and Mandalay 40 Source: Report of Medipower, 2012Sr. Originated Country Percentage of Myanmar Pharmaceutical Market(%) 1 India 35 2 Bangladesh, China, Thailand, Indonesia, 40 Pakistan and Vietnam 3 Other countries 25 Source: Myanmar Time News, 2012
Company Profile of ABC Trading Co.,Ltd established in the year of 1997. registered under the Government of the Union of Myanmar Ministry of NationalPlanning and Economic Development. registered only import license under the Union of Myanmar Ministry ofCommerce Directorate of Trade. registered in Myanmar Pharmaceutical Entrepreneur Association as member. registered each pharmaceutical products and medical equipments in Myanmar Foodand Drug Association (MFDA) every year, so the registration number of the specificpharmaceutical product cannot be the same every year imported medical, pharmaceutical products from the A Pharma Companywhich is originated in Germany, B-Pharma, originated in Singapore, and C Pharma,originated in Czech Republic. it is not only importing but also distributing medical products in Myanmar.
Company Profile of ABC Trading Co.,Ltd It has two head office. The one head office is in Yangon for Lower Myanmardistribution and another one is in Mandalay for Upper Myanmar distribution. Yangon Head office is situated at Shwe Gon Daing, Bahan Township. MandalayHead Office is situated at Min Guann Yeik Thar, Mandalay.
Logo of ABC Trading Co.,LtdThe Logo of the Brand imported by ABC Trading Co.,LtdSource: ABC Trading Co.,Ltd (2012)
General Information of the Brands Distributed by ABC Trading Co.,LtdSr.No Brand Name Categories Originated Country 1 A Pharma Pharmaceutical drugs such as Germany analgesic, antibiotic, etc 2 B Pharma Medical Supplies Singapore 3 C Pharma Drugs for diet Czech RepublicSource: ABC Trading Co.,Ltd (2012)
Organization Structure of ABC Trading Co.,Ltd Director Mandalay Head Yangon Head Office Office General Manager Finance Warehouse HR Departmen Sale and DepartmentDepartment t Marketing Department Warehouse HR Finance Manager Manager Manager Sale and Warehouse/ Assistant Marketing Driver Assisant Assistant Delivery Staff Finance Manager Manager HR Accounting Manager Manager Assistant Assistant Sale Marketing Accountant Manager Financial Collection Manager Staff Staff HR Sale Marketing Staff Staff Staff
Summary Data of ABC Trading Co., LtdName of company ABC Trading Co., LtdYangon Head Office Shwe Gone Dine, YangonMandalay Head Office Min Guann Yeik Thar, MandalayOwnership Company LimitedFounder and Owner U Tun Tun Oo, U Thein LwinCapital of investment K 1000,000,000No. of employee in 60YangonProduct Distribution Domestic Pharmaceutical Market( clinics, pharmacy shop, retail shop, wholesale in, retail and wholesale in upper and lower Myanmar)No. of Department HR Department, Finance Department, Sale and Marketing Department, Warehouses DepartmentPresent Major Market Yangon Pharmaceutical Market, Mandalay Pharmaceutical MarketBrands A Pharma, B Pharma, C Pharma
Number of Employees in ABC Trading Co.,LtdNo. Category Number of employee 1 Director 2 2 General Manager 1 3 Sales and marketing Department 254 Finance Department 7 5 Human Resource Department 56 Warehouse Department 20 Total 60
Major Customers of ABC Trading CompanyNo Hospital/Clinic Name Township 1 South Okkala 2 Kyauktada 3 Mayangone 4 North Dagon 5 Ahlone 6 Sanchaung 7 Sanchaung 8 Sanchaung 8 Bahan 10 Tamwe 11 Tamwe 12 Lanmadaw 13 Pazundaung
Analysing the Product Activities of ABC Trading Co.,Ltd The Secret of Pharmaceutical Formulation of A Pharma Sr Type Description 1 Controlled release -uniform and consistent active ingredient release over tablets time and maintain optimum plasma concentration 2 Enteric coated tablets -gastric protection 3 Film coated tablets -perfect film coating masks bad taste -improves stability in extreme climatic conditions 4 Effervescent tablets -fast and effective absorption 5 Suppositories - perfect blend of hard-fat and active pharmaceutical ingredients for faster and more efficient absorption 6 Injections -the highest demands on cleanliness during production 7 Creams and ointments - particle size focus on cream and oinments thus preventing skin irritation and improving absorption .
Product Classification of ABC Trading Co.,Ltd Convenience Products Shopping Consumer Products Products Pharmaceutical drugs Speciality and medical supplies Products Industrial Products Unsought ProductsSource: Own Compilation Based on Survey Data
Product Mix and Product Line of A Pharma in Therapeutical Segmentwise Product Mix WidthP Analgesics/ Antibiotics/ Diabetes Cardiometabolic Gastro- Dermatologic Lifer Anti- Anti-infectives Drugs Drugs Intestinal Drugs Mineral &o rheumatic drugs Vitamind agentsuctLineDepth
Packaging of A Pharma control packaging and quality from factory to final consumer. tested for extreme climatic conditions. have colour coding and pictograms employs the latest packaging innovations: e.g. Aclar foil and Blister-packaging Export cartons and secondary packaging materials ensure that the products reach all fifty markets in perfect condition from the original company.
Quality Control of A Pharma Production-integrated computer systems legal requirements (Good Manufacturing Practice Guidelines, Marketing Authorizations) The specifications and test methods comply with the requirements of the European Pharmacopoeia. dissolution tests( to ensure perfect active ingredient absorption). state-of-the-art laboratories
Stability and Shelf Live of A Pharma A Pharma estimates the shelf life (expiration date) of a drug to determine the amount of time the drug is at acceptable potency, color, etc., levels. The acceptable levels are set by the pharmaceutical company or the Food and Drug Administration. The process in which the shelf life is determined is called a stability analysis Comprehensive stability studies, in line with ICH guidelines (Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use) All A Pharma products are tested under normal and extreme climatic conditions.
Labeling of A Pharma Product name quantity of each active ingredient Name and address of the A Pharma Myanmar registration number of the drugs batch number expiry date and specific storage conditions are clearly written on the paper box. Inside the paper box, the package leaflet give information of what the pharmaceutical drugs is and what it is used for, how to use it and what possible side effects are. For cream and ointment type, warning message such as ‘for external use only” can be seen on the paper box. In some drugs, the A Pharma recommend dosage instruction such as ‘Adults and children above 12 years : 15 - 30mg three or four times daily, Children aged 6 to 12 years : 7.5 - 15mg three or four times daily’ are written on the package leaflet inside the paper box.
Product Mix and Product Line of B Pharma ProductsNo Product Category/Product Mix Width Product Name/ Product Line Length Detail1 Forley Catheter(10’s) 2-way 8Fr No.8 2-way 10Fr No.10 2-way 12Fr No.12 2-way 14Fr No.14 2-way 16Fr No.16 2-way 18Fr No.18 2-way 20Fr No.20 2-way 22Fr No.22 2-way 24Fr No.242 HCG(100’s) HCG(Human Chorionic Gonaldotrophin) Urine Pregnancy Test Strip3 Brace Ankle Brace For weak ankle support Elbow Brace For weak elbow support Knee Brace For weak knee support Palm Brace For weak palm support Thigh Brace For weak thigh support Wrist Brace For weak wrist support4 Plaster Paper Plaster(24’’) Surgical Tape5 Sphygmomanometer Aneroid Sphygmomanometer Aneroid type Mercurial Sphygmomanometer Mercurial type6 Sthetoscope Sthetoscope Dual Head7 Surgical Gloves Surgical Gloves Sterile surgical glove8 Thermometer(Flat type)(12’s) Thermometer Mercurial( F&C scale)9 Warm Water Bag Warm Water Bag 2000ml To relieve pain Warm Water Bag 1000ml Warm Water Bag 500ml
Type of Packaging in B Pharma ProductsSr Brand Name Pack SizeNo 1 Forley Catheter(10’s) 10pcs/box 2 HCG(100’s) 100pcs/pack 3 Ankle Brace Individual Pack Elbow Brace Knee Brace Palm Brace Thigh Brace Wrist Sphygmomanometer Aneriod Sphygmomanometer Mercury Stethoscope Warm Water Bag( 2000ml/1000 ml/500ml) Surgical Gloves 4 Paper Plaster(24’’) 24rolls/ box 5 Surgical Gloves 50packs/box 6 Thermometer(Flat type)(12’s) 12pcs/box
Labeling of B Pharma Products The indication of the date until the device may be used safely is expressed at least as the year and month on the medical supplies products. Warning, precautions, limitation, undesirable side effect are informed on the cover of the package (eg, supplied sterile, single-disposable glove). Special storage or handling condition is clearly shown on the package. Detail of any further treatment or handling needed before the medical supplies products (eg, sterilization, final assembly, preparation of reagents and control material) are clearly informed to the end user.
Branding of A Pharma and B Pharma Products These three brands are made the trademark for legal protection. For prescription medicine, the company builds the loyalty, credibility and trust with physicians by supporting continuing medical education, sponsorship, and clinical studies in creating long term success. The direct-to-consumer advertising, in-store promotion is essential for creating brand awareness of the customers who make their own decision especially for the non prescription medicine. The company logo, slogan, name, characters and symbols are used together with the pharmaceutical brand name the advertising to create the strong brand awareness for the company.
New Product items of A Pharma from 1997 to 2012Sr.No Product Category Number of New Product Items Total From 1997 From 2000 From 2007 Item to 1999 to 2006 to 2012 1 Analgesics 5 3 2 10 2 Antibiotic 1 - 1 2 3 Diabetes Drugs 2 - - 2 4 Cardiometabolic 1 2 1 4 Drugs 5 Gastro-Intestinal 1 - 1 2 Drugs 6 Dermatologic 1 1 2 4 Drugs 7 Life Mineral and 1 - 1 2 Vitamin
New Product Items of B Pharma from 1997 to 2012Sr.No Product Category Number of New Product Items Total From From From Item 1997 to 2000 to 2007 to 2005 2006 2012 1 HCG 1 - - 1 2 Braces 5 - - 5 3 Plaster 1 - - 1 4 Sphygmomanome 1 1 - 2 ter 5 Forlely Catheter 9 - 9 6 Sthethoscope - 1 - 1 7 Surgical Gloves - 1 - 1 8 Thermometer - 1 - 1 9 Warm Water Bag - 3 3
Pricing Methods of ABC Trading Co.,LtdSr.No Pricing Method A Pharma B Pharma Description 1 Cost Plus Pricing √ √ 5 % profit margin 2 Geographic Pricing √ √ Product cost+ (transportation cost/no of customer in the same area) 3 Quantity Discount √ √ Buy One Get One Free (BOGOF) for new product, and different kinds of gift such as T-Shirt, Umbrella, Key Chain for a specific quantity identified by the company 4 Cash Discount √ √ 1.5%-3% according to cash down amount 5 Seasonal Discount √ - 5%-10% discount at rainy and cold season 6 Trade Discount √ √ 5%-8% discount
Quantity Discount Policy of ABC Trading Co.,LtdSr.No Product Name Quantity Discount Policy 1 Analgesic 5% discount to retailers and 7% discount wholesaler 2 Anti-biotic 5% discount to retailers and 7% discount to wholesalers 3 Life Mineral and 5% discount to retailers and 8% discount Vitamin wholesalers 4 Mercurial Buy one get one Denk Ball pen and file holder Sphygmomanometer , Stethoscope 5 Thermometer Buy two box get Denk ball pen and Denk mug 6 Surgical Glove Buy four box of surgical glove get one Denk tissue box and Denk mug 7 Brace Buy ten get one A Pharma Umbrella
Cash Discount Policy of ABC Trading Co.,Ltd Sr.No Cash down payment(Kyat) Cash Discount Policy(percent) 1 Between 100,000 and 250,000 1.5% 2 250,000 and above 2.5% 3 Above` 1,100,000 3%Seasonal Discount Policy of A Pharma Products in ABC Trading Co.,Ltd Sr.No Types of Product Event Seasonal Discount (percent) 1 Analgesic, Antibiotic New Year sales, Christmas sales 4% 2 Life mineral and vitamin Thadinkyut and Water festival sales 5% 3 Diabetes Drugs New Year sales 3% 4 Cardiometabolic Drugs New Year sales, Water festival sales 3% Trade Discount Policy of ABC Trading Co.,Ltd Sr Type Trade Discount Policy 1 Wholesalers at Mingalar Market and Bogyoke Market 8% discount 2 Retailer such as clinic, pharmacy, private hospital 5% discount
Distribution Channels of ABC Trading Co.,LtdZero Stage Distribution Channel of ABC Trading Co.,LtdABC Trading PatientsCo.,LtdOne Stage Distribution Channel of ABC Trading Co.,Ltd ABC Trading Co.,Ltd Retailers/ Patients Hospitals/ Pharmacies /ClinicsTwo Stage Distribution Channel of ABC Trading Co.,Ltd ABC Trading Wholesalers Retailer/ Patients Co.,Ltd (Bogyoke Market, Hospital/ Mingalar Market) Pharmacy /Clinic
Promotional Activities of ABC Trading Co.,Ltd ABC Trading Co.,LtdOver The Counter Drugs Prescription Drugs Push Pull Direct to Customer Commercial Non Commercial Illness Promotion Advertising Conferences Detailing Medical Journal articles Drug Samples recommendation Clinical Trial Patient Gift Premiums Colleague Recommendation Journal Advertising Pharmacist Patient Request Physician sample
AdvertisinB Pharmaaceutical Products in Journal/Magazine Sr.No Journal/Magazine Weekly /Monthly Front Cover/ Back Cover 1 Health Update Journal Weekly Full Back Cover 2 Eternal Light Magazine Monthly Full inside page 3 Open Journal Weekly Full Back Cover Personal Selling The sale and promotion teams of ABC Trading Company adopt face-to-face interaction with prospective purchaser such as retail pharmacies in Mingalar Market and Bogyoke Market in order to promote the matter-of-fact selling relationship to a deep personal friendship.
Sale Promotion drug sample the different kinds of gifts T-Shirt Calendar Ball Point Pen Tissue Box Car accessories Umbrella.
Point of promotion of ABC Trading Co.,LtdSr.No Hospital Location Target Type 1 Yangon Orthopaediac Hospital ( YOH ) Kyi Myin Daing In Service Doctor 2 Yangon General Hospital(YGH) Lanmadaw 3 Thingangyun General Hospital Thingangyun (TGH) 4 East Yangon General Hospital (EYGH) Botahtaung 5 West Yangon General Hospital (WYGH) Kyi Myin Daing 6 Insein General Hospital (IGH) Insein 7 Defense Service General Hospital Dagon 8 Defense Service Orthpaediac Hospital Mingalardone 9 New Yangon General Hospital(NYGH/ Lanmadaw JICA) 10 Doctor’s Preferred Clinic or Hospital Retired Doctors
Public Relation of ABC Trading Co.,LtdSr.N Public Relation Activity Descriptiono1 Sponsoring X’Ray Clinic External public2 International Conference at Sedona Hotel relation3 Journal Reading at Myanmar Medical Association(MMA)4 Symposium at Orthopaedic Conference at Mandalay Hill Resort Hotel5 Medical Exhibition at Myanmar Medical Association6 Health Talk (Cardiac, Diabetes)7 Sponsor for lunch at Clinical Medical Meeting8 Sponsor for dinner at Clinical Medical Meeting9 Drug Donation at field trip10 Donation at Nargis Disaster11 Donation at Rakhine State for renovation12 Sponsor for travelling cost to in local or foreign countries (air ticket, hotel reservation)13 Annual Stuff Party and Dinner Internal Public14 Religious Festival (Thadingyut Festival, Water Relation Festival)15 Holiday Trip to Ngwe Saung and Chaung Tha Beach
Annual Budgeted Expenditure on Each Promotion MethodSr. Promotion Type Promotion AmountNo Method (kyat) A Pharma G-Pharm 1 Advertising Drug Sample 25,000,000 20,000,000 Journal Article 5,000,000 5,000,000 Mini Drug Counter 1,000,000 1,000,000 Flyer 2,000,000 1,000,000 2 Personal Selling Personal Selling at the retail shop 25,000,000 25,000,000 3 Sale Promotion Different Kinds of Gifts( T- Shirt, 25,000,000 25,000,000 Calender,pen, Umbrella,Tissue box, Glass, Breakfast food, Refrigerator, air con, car accessories) 4 Public Relation Conferences 25,000,000 25,000,000 Sponsorship 25,000,000 20,000,000 Clinical Trial 5,000,000 5,000,000 Symposium 5,000,000 5,000,000 Posterboard 5,000,000 5,000,000
Actual Expenditure of by the Company on Each MethodSr. Promotion Type Promotion AmountNo Method (kyat) A Pharma G-Pharm 1 Advertising Drug Sample 25,000,000 20,000,000 Journal Article 5,000,000 5,000,000 Mini Drug Counter 1,000,000 1,000,000 Flyer 2,000,000 1,000,000 2 Personal Selling Personal Selling at the retail shop 25,000,000 25,000,000 3 Sale Promotion Different Kinds of Gifts( T- Shirt, 25,000,000 25,000,000 Calender,pen, Umbrella,Tissue box, Glass, Breakfast food, Refrigerator, air con, car accessories) 4 Public Relation Conferences 25,000,000 25,000,000 Sponsorship 25,000,000 20,000,000 Clinical Trial 5,000,000 5,000,000 Symposium 5,000,000 5,000,000 Posterboard 5,000,000 5,000,000
The Effect of Marketing Mix Activities on Sale Performance of ABC Trading Co.Ltd Top Five A Pharma Brand Sale from 2007 to 2011 Sr Year (Total Sale in Million Kyat) N Brand Name 2007 2008 2009 2010 2011 o 1 A 878 1050 1050 1147 1274 2 B 831 1039 1039 977 1173 3 C 118 181 181 209 244 4 D 81 115 115 160 192 5 E 133 161 161 174 157 6 F 76 99 112 140 162 1400 1200 1000 A B 800 C 600 D 400 E F 200 0 2007 2008 2009 2010 2011
Top Five A Pharma Brand Sale Volume from 2007 to 2011 Year (Total Sale Volume in Units) SrNo Brand Name 2007 2008 2009 2010 2011 1 A 144000 150000 152400 162000 180000 2 B 108000 114000 116400 120000 144000 3 C 24000 31200 32400 36000 42000 4 D 18000 21600 24000 30000 36000 5 E 21600 22200 22800 24000 21600 6 F 5300 6900 7900 9100 120000200000150000 A B100000 C D 50000 E 0 F 2007 2008 2009 2010 2011
Total Sale (Kyat) in All A Pharma Products from 2007 to 2011 Sr.No Year Average Total Sale Per Year(‘000 000 kyat) 1 2007 2256 2 2008 2592 3 2009 2880 4 2010 3000 5 2011 3240 3,500 3,000 2,500 2,000 1,500 Average Total Sale per Year(000 000) 1,000 500 0 2007 2008 2009 2010 2011
Top Five B Pharmaa Brand Sale Volume from 2007 to 2011 Year (Total Sale Volume) SrNo Brand Name 2007 2008 2009 2010 2011 1 Knee Brace 60,000 74,000 64000 65000 84000 2 Ankle Brace 61000 61000 - - 72000 3 HCG Test 24500 34000 - - 30000 4 Paper Plaster ½’’ 36900 36000 46000 48000 - 5 Mercury Pressure Curve 600 750 720 800 720 6 Aneroid - - 3600 4000 3600 7 Stethoscope - - 3600 4500 - 90000 80000 Knee Brace 70000 60000 Ankle Brace 50000 HCG Test 40000 Paper Plaster 30000 Mercury Pressure Curve 20000 Aneroid 10000 Sthethoscope 0 2007 2008 2009 2010 2011
Suggestion & Recommendation launch the more new product item. conduct SWOT (Strength,Weakness, Opportunity, Treat) Analysis. emphasize on non commercial push promotion activities. suggestion box program not only from the employee but also from the customer create the web site in order to do the online payment and give product information. make the installment programs KBZ bank, AGD Bank, Myawaddy Bank. consider another choice to publish the product information through Social Network. revise the percent of cash discount policy. try to target to the whole lower Myanmar for their market extension company for new customer try to retain old customer use direct marketing as a promotion tool which is an interactive marketing system manufacture pharmaceutical products by themselves like Fame Pharmacy in Myanmar by hiring well-trained pharmacists, doctors and management personnel.
Need For Future Research The future research should focus on the segmentation, targeting, positioning of this company. Studying the marketing mix activities is not enough to create value for customer. There are different kinds of people in certain place so it is not possible for the individual company to cater to the need and preferences of the customer. The future study should emphasize on the segmentation strategy in order to determine who the actual and potential customers are, identify segments, analyze the intensity of competitors in the market and select the attractive customer segments. After listing the target market, the future researcher has to identify the differential advantage in each segment, decides on a different positioning concept for each of these segment. Therefore future researcher should focus on the positioning the company and its effectiveness. Positioning is an offering that occupies in the minds of consumers relative to competitive product for creating sustainable growth of the company.
My Opinion I shared my thesis slides for educational purpose but I covered some of the data such as brand name, company logo and pharmaceutical name for company privacy but all the information related to Myanmar pharmaceutical market are true. I hope more feedback and suggestions for my slide. my email: firstname.lastname@example.org You can also read my thesis and other thesis at Yangon Institute of Economic Library, MBA Programme. Thank you so much for downloading my slide!