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E-marketing using Beximco Pharmaceutical Ltd. In Bangladesh

E-marketing using Beximco Pharmaceutical Ltd. In Bangladesh

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  • 1. Roni Bhowmik Master’’s Program Master International BusinessRONI BHOWMIK -1-
  • 2. TABLE OF CONTENTSChapter one: Introduction 05 1.1 Background of the Assignment 06 1.2 Objective of the Assignment 06 1.3 Sources of Information 07 1.4 Scope of the Assignment 07 1.5 Limitations of the Study 07 1.6 The Role of E-Commerce in the Era of Globalization 08Chapter Two: Pharmaceuticals Industry in Bangladesh 09 2.1 Background of Pharmaceutical Industry of Bangladesh 09 2.2 Top Ten Pharmaceutical Companies in Bangladesh at Present 10Chapter Three: Company Information 13 3.1 BEXIMCO Group 13 3.2 Group Composition 15Chapter Fourth: Beximco Pharmaceuticals Ltd. 20 4.1 Beximco Pharmaceuticals Ltd. (BPL) 20 4.2 Major Achievement of BPL 21 4.3 Beximco Pharma’s Different Edge 23 4.4 Beximco Pharma’s Blockbuster Product 23 4.5 Company Profile at a Glance 24 4.6 Departments of BPL and their Activities 25 4.6.1 Central Product Management (CPM) Department 25 4.6.2 Purchase Department 26 4.6.3 Market Research & Statistical Cell (MRC) Department 26 4.6.4 Sales Department 27 4.6.5 Human Resource Department 27 4.6.6 Finance and Accounts Department 28 4.6.7 Sales & Training Department 29 4.6.8 Management Information System (MIS) Department 30RONI BHOWMIK -2-
  • 3. 4.6.9 Multimedia Department 30 4.6.10 Medical Services Department (MSD) 31 4.6.11 International Marketing Department 31 4.6.12 BPL Factory (Works Department) 32 4.6.13 Sponsorship Department 33Chapter Fifth: E-Marketing in Bangladesh and Beximco 33 5.1 The Existing Situation and Potential of E-marketing in Bangladesh 33 5.2 Supportive Framework in Beximco 34 5.3 Legislation Relating to Trade 37 5.4 Acts and Laws Related to Consumer Protection 38Chapter Sixth: MRC Department of BPL 39 6.1 Market Research & Statistical Cell (MRC) Department 39 6.2 Activities of MRC Department 41 6.3 SWOT Analysis of MRC Department 42 6.4 Industry Analysis 43Chapter Seven: E-marketing Advantage and Disadvantage 44Chapter Eight: Conclusion 46Chapter Nine: Bibliography 47RONI BHOWMIK -3-
  • 4. 1. IntroductionThe Internet has opened up a new horizon for trade and commerce, namely electroniccommerce (e-commerce). E-commerce entails the use of the Internet in the marketing,identification, payment and delivery of goods and services.An e-marketing is a facilitated online environment that connects multiple buyers andsuppliers in a single, Web-based hub to more effectively match supply and demand whilereducing transaction cycles and costs. The e-marketplace works for companies engagingin collaborative business.Market Research is played a significant role to design and implement successfulmarketing programs for the company. Market Research is being used by all kinds oforganizations and for a wide range of purposes. In today’s market, information is a majorcompetitive edge for any company. For manufacturing company it is essential to knowthe customer needs and satisfaction level, market position, competitors’ position and howthe company implements their marketing strategies. So, Market Research Department canplay a vital role to answer all of these questions through collected by relevant, accurate,reliable, valid and current information. Market Research Department can help the topmanagement by providing that information for making vital decisions, designing andimplementing important marketing strategies (like- promotion, advertising, positioning)and solving the problem successfully to compete in the market strongly. MarketResearch Department of BPL conducts the survey activities for collecting that importantinformation which is used for enhancing the overall profitability and market share ofBeximco Pharmaceuticals Ltd. (BPL).In China is a big market in the world. In Chinese medicine normally used old technology,so in this situation Beximco try to capture this big Asian market.RONI BHOWMIK -4-
  • 5. 1.1 Background of the Assignment:I have selected to work as an assignment in one of the leading company ofpharmaceuticals field that is “Beximco Pharmaceuticals Limited (BPL)” a company ofBeximco Group in Bangladesh.1.2 Objective of the Assignment:Primary Objective:The primary objective of my assignment is to find out the entire procedure of MarketShare Survey of BPL based on prescription delivered by the doctors and give somerecommendations on existing survey method. • To know how the MRR conduct their survey in the field. • To know the E-marketing use in BPL. • To suggest the improvement proposal or opinion about the existing E-marketing. • To find out the satisfaction level of chemist shops towards the company’s marketing method.Secondary Objective:The secondary objective of my assignment is to fulfill the requirements of E-marketingcourse. And also broaden our knowledge and understanding by adding practicalexperience in a real business set up to our acquired knowledge in the classroom.E-commerce facilitates the very process of international transaction; this involvessecuring and finalizing a contract, delivery of the product, and finally payment forRONI BHOWMIK -5-
  • 6. performance of the contract. The movement of goods and services, as well as thepayment mechanisms within a country and more so outside a country, are governed byregulatory and legal issues. Hence, the regulatory environment is at the core of e-commerce development. This paper aims to highlight the status, statutes, potential andconstraints of e-commerce development in Bangladesh.1.3 Sources of Information:Both Primary and Secondary sources were chosen as an effective means of collectingdata relevant to this report.The source of information gathered by using Internet, different textbooks, annual reportsof BPL and some written information provided by the MRC Department of BPL.1.4 Scope of the Assignment:The scope of the report was confined within the MRC Department of BPL. Here twosides were selected to complete the study, process of market share survey of BPLproducts based on prescription output and working process of MRC Dept. of BPL by thatsurveyed data. There is no other way alternative to find out the survey process of BPLother than looking forward to the practical experience of market or chemist shop survey.1.5 Limitations of the Study:Some limitations were faced while preparing this assignment. Some of those limitationsare highlighted below: • As the organization has a large existence around the country and I could not explain the whole, due to the time constraints. • As a business student, it was difficult to understand the prescriptions as I was not trained or well conversant with the name of the medicines. And also I was not able to understand many of the technical terms of the pharmaceuticals company.RONI BHOWMIK -6-
  • 7. • Time is really very short time to work this assignment.1.6 The Role of E-Commerce in the Era of Globalization:Globalization has brought in many changes in the business scenario with the whole worldinching towards one big market place. Communication between the buyers and sellershas become critical as each can opt to explore a greater number of alternatives than everbefore. E-commerce through Internet, e-mails, websites, and other facilities, enables abusinessman to be linked with every corner of the world, and thus opens up greateropportunities in the world market.Another important factor is the time required for completing a business transaction. Asmarkets are becoming competitive and information is more readily available, a quick,reliable and replicable transaction implies availing of prevailing opportunities. On thecontrary, delays in processing a transaction might become synonymous to wasting anopportunity. Therefore, a fast and alternative mechanism of communication, contract, andpayment is an integral part of a globally competitive business organization.RONI BHOWMIK -7-
  • 8. 2. Pharmaceuticals Industry in Bangladesh2.1 Background of Pharmaceutical Industry of Bangladesh:The scenario of pharmaceutical industry can be described in two parts- before the DrugPolicy Ordinance in 1982 and after the Drug Policy Ordinance in 1982.Before 1982, there were 177 licensed pharmaceutical manufacturers in the country butlocal production used to be dominated by the big multinational drug companies (MNCs)which manufactured the lion’s share about 75% of the products, 25 medium sizednational companies manufactured another 15% of the products and 133 small localcompanies (LCs) produced the remaining 10%. These multinational companies werefully armed with the technical know-how for producing sophisticated essential drugs, butthey were only engaged, to a large extent, in formulation of simple drugs including manyunnecessary products. At that time, the unregulated drug market of the country had veryfavorable conditions for pharmaceuticals to over price their products. That time localfirms could not compete effectively with these multinational market tycoons.A great change was noticeable in the pharmaceutical industry after the Drug PolicyOrdinance of 1982. The total national production of pharmaceuticals has risen by asubstantial 63%; the value of essential drug made in national factories has gone up by140% over the four years following the drug policy promulgation. At present, more then95% of the total demand of medicinal products is met by local production. Localcompanies (LCs) increased their share from 25% to 70% on total annual productionbetween 1982 and 2000. In 2000, there were 210 licensed allopathic drug-manufacturingunits in the country and now there are 265 registered companies are operating. Few of theRONI BHOWMIK -8-
  • 9. multinational companies closed their business in Bangladesh, as it was difficult to makehuge profit after the Drug Policy. Among the multinational companies ACI and Pfizer arenow running its business in national ownership.After ready made garments (RMG), pharmaceutical sector has become one of the largestsectors in earning foreign currency. Meeting more than 95 percent demand of the localmarket, Bangladeshi drugs gained a significant position in the world’s drug market.Locally manufactured drugs are now being exported to more than 52 countries across theglobe like- Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen,Oman, Thailand, and some countries of Central Asia and Africa. 1980 2003 Local 20% 95% Imported 80% 5% Table-: National Demand met by Local production & Imported drugs2.2 Top Ten Pharmaceutical Companies in Bangladesh atPresent:Shares of Top Ten Pharmaceutical Companies:Ten companies are occupying more than 60 % of market share, where there are more than250 (registered and unregistered) companies in Bangladesh Pharmaceutical Market. Outof these top ten pharmaceutical companies in Bangladesh, eight are local companies,while only two are multinational companies (MNCs). The top two domesticRONI BHOWMIK -9-
  • 10. manufacturers, namely Square and Beximco Pharmaceuticals are having a combinedmarket share of about 25% of the total pharmaceutical market of the country. Market Share in Pharmaceutical Companies Terms of Sales Square Pharmaceutical Ltd. 14.5% Beximco Pharmaceuticals Ltd 10.0% Acme 8.0% Aventis 6.0% Incepta 5.0% SK+F 4.5% Glaxo SmithKline Bangladesh 4.3% Opsonin Chemical Industries Ltd. 4.0% Drug International 3.8% ACI 3.7% Table-: Top Ten Pharmaceutical Companies in Bangladesh Top Ten Pharmaceutical Companies S qu are Be ximco 15% Acme Market Share Ave nti se 10% Ince pta S K&F 5% Glaxo 0% O pson in 1 Dru g Intl . C ompan ie s AC I Figure-: Shares of Top Ten Pharmaceutical CompaniesRONI BHOWMIK - 10 -
  • 11. In Bangladesh, Pharmaceutical market has strong prospects (present annual growth rate is12%-15%). The pharmaceutical business is stable because it has good cash flow, isrecession proof, and the market for pharmaceutical in Bangladesh is favorable. Thissector is the second largest foreign investment sector in Bangladesh (about 30%). Withthe development of healthcare infrastructure and increase of health awareness and thepurchasing capacity of people, this industry is expected to grow at a higher rate in future.RONI BHOWMIK - 11 -
  • 12. BEXIMCO PHARMA 3. Company Information3.1 BEXIMCO Group:Bangladesh has come a long way since its independence. It has improved key socialindicators and the well being of its people. The Beximco Group of Companies has beenan integral part of this progress. BEXIMCOs philosophy is simple: In identifyingopportunities, it has targeted those industries which the country needs most in order toprogress and to improve living standards. Beximco is also focused on those industries,which make the most of Bangladeshs Competitive Advantages in the internationalmarket.As a result of this philosophy, the Beximco Group is today Bangladeshs largest privatesector industrial conglomerate. In the course of its growth, it has created industrial andmanagement capabilities that will serve the country for generations to come.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 oneof the most known names in the country’s business arena.RONI BHOWMIK - 12 -
  • 13. Beximco practices an appropriate combination to delegate authority and responsibilitythat works to motivate employees and yield better performance for the company as awhole. Recruiting the efficient and potential people, planning to develop humanresources, exploring business opportunity, and information management havestrengthened the effectiveness and image of the group.It has a turnover of Tk. 16.5 billion and employs 22,000 people. Beximco has 1,52,000shareholders and contributes to 8% of the market capitalization of Dhaka StockExchange. BEXIMCOs industrial businesses include jute, textiles, basic chemicals,ceramics, pharmaceuticals and marine foods. BEXIMCOs non-industrial undertakingsare focused on real estate and construction, engineering, media, information technology,trading and financial services.It is the creation and expansion of businesses critical to Bangladeshs development,businesses, which are developed and run by Bangladeshis, businesses that developtechnologies and practices specific to the needs of the country, which is the definingcharacteristic of the BEXIMCO story.The Company is a member enterprise of the Beximco conglomerate. The principal placeof Business is the registered office at 17, Dhanmondi R/A, Road No.2, Dhaka-1205. TheLondon Branch is situated at 305A Finchley Road (1st floor), London NW36DT, UK andthe Wholly owned subsidiary Beximco USA Ltd. is located at 310 Selviddge Street,Dalton, Georgia-30722, USA. Philosophy of BEXIMCO“We firmly believe that in the final analysis we are accountable to each of theconstituents with whom we interact; namely, our customers, our employees, oursuppliers, our shareholders, and fellow citizens”. Vision of BEXIMCOThere activity must benefit and add value to the common wealth in our society. Sociallyare committed ethical Company.RONI BHOWMIK - 13 -
  • 14. They are firmly believing that, in the final analysis they are accountable to each of theconstituents with whom they interact, namely: there employees, customer, businessassociates, fellow citizens and shareholders. Mission of BEXIMCOA mission statement broadly outlines the organization’s future direction and serves as aguiding concept for what the organization is to do and to become.“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 constituentswith whom we interact namely our employees, our customers, our business associates,our fellow citizens and shareholders.”3.2 Group Composition:Beximco is a group of 34 companies and most of these are being operated through eightdivisions. The divisions namely are as follows:Divisions Companies  Padma Textiles Mills Ltd  Beximco Synthetics Ltd  Beximco Apparels LtdTextile Division  Beximco Knitting Ltd  Beximco Textiles Ltd  Beximco Denims Ltd  Beximco Fashions Ltd  Beximco Fabrics Ltd  Beximco Pharmaceuticals LtdChemical Division  Beximco Infusion Ltd  Pharmatek Chemicals LtdRONI BHOWMIK - 14 -
  • 15.  I&I Services LtdReal Estate & Construction Division  Beximco Engineering Ltd  Shinepukur Holdings LtdTrading Division  Bangladesh Export Import Ltd  Beximco Holdings Ltd  New Dhaka Industries LtdJute Division  Sonali Ansh Ltd  Esses exports LtdMarine Food Division  Beximco Foods Ltd  Beximco Fisheries LtdMedia Division  Beximco Media Ltd  Beximco Softech LtdInformation Technology Division  Beximco Systems Ltd  Beximco Computers Ltd  Bangladesh Online LtdOthers  Shinepukur Ceramics  Gammatech Ltd Table-: Major Companies of Beximco Group BEXIMCO BEXIMCO GROUP GROUP Textile Textile Chemical Chemical Real Estate Real Estate Trading Trading Division Division Division Division Division Division Division Division Marine Food Marine Food IT IT Jute Jute Media Media Division Division Division Division Division Division Division DivisionRONI BHOWMIK - 15 -
  • 16. Figure-: Corporate Structure of Beximco Group Picture-: Different Division of Beximco Group Source: http://www.beximco.orgThe number of companies in each division is different. The companies of Beximco groupin relation to division have been elaborated as follows: Divisions Companies Textile 8 Chemical 4 Real Estate & Construction 2 Trading 2 Jute 3RONI BHOWMIK - 16 -
  • 17. Marine Food 2 Information Technology 4 Media 1 Figure-: Divisions and No. of Companies of Beximco Group Beximco Chemical Division Beximco Chemical Division Beximco Beximco Beximco Beximco II & I &I Pharmatek Pharmatek Pharmaceuticals Pharmaceuticals Infusions Infusions Services Services Chemicals Chemicals Ltd. Ltd. Ltd. Ltd. Ltd. Ltd. Ltd. Ltd. Basic Basic Chemicals Chemicals Unit Unit Fine Fine Chemicals Chemicals Figure-: Sub Divisions of Beximco Chemical DivisionBeximco Pharmaceuticals Ltd. is the leading pharmaceutical company of Bangladesh.The commissioning of BPLs Basic Chemicals unit in 1990 had established a verysignificant milestone in the history of the countrys chemical industry. With a record ofthe highest growth rate in the history of Bangladesh pharmaceutical industry, BPL hasmaintained its leadership position with the consistent growth over the year.Organizational Structure shown in the next page.RONI BHOWMIK - 17 -
  • 18. BEXIMCO CHEMICAL DIVISION Deputy Chairman DATE : March 13, 2005 CHART : Top Level Organogram CHART NO. : 01 CEO Director Director DirectorCommercial Works Finance Plan. Executive Director Executive Director Executive Director GM Production Marketing Sales Project Purch. Solid Pteck QA MIS Marketing Marketing & Sales Manager, BPL Manager LCO (Primary Care) BIL Manager QC IMFC BIL MDI CPM CPM & HRD Prod. I&I BPL Sales BIL Plan. PD Admin Liquid, Admin FSD Cream &Medical OintmentRegulatory Training Design CPM MRC Sample New Prod. MM BPL BRDD Antibiotic Warehouse Engg. Project Fin. & Affairs Store Dev. & Pkt. Sales Formulation Acc. Chart-: Top Level Organogram of Beximco Chemical Division Source: Human Resource Department (HRD), BPL RONI BHOWMIK - 18 -
  • 19. 4. Beximco Pharmaceuticals Ltd.4.1 Beximco Pharmaceuticals Ltd. (BPL):Beximco Pharmaceuticals Ltd. (BPL) is a member of the Beximco Group – the largestprivate sector business conglomerate of Bangladesh. Beximco Pharma, the largestpharmaceutical as well as bulk drug manufacturer of Bangladesh started its journey backin 1980 with manufacturing and marketing of licensee products of Bayer AG, Germanyand Upjohn Inc. of USA. The journey continued and barrier after barrier were crossed,challenges were faced and overcome to transform BPL into what it is at present. It wentfor public issue of shares in 1985. The shares of the company are listed with the Dhakaand Chittagong Stock Exchanges of Bangladesh.Today, BPL holds 10.0% of share in the domestic market after competing with suchMultinational Giants as Novartis, Hoecsht, Rhone Poulenc Rorer, Glaxo SmithKline,Fisons etc. The total numbers of share holders are 47,811 and the total numbers ofemployees are 1,328. BPL manufactures and markets a high quality and cost-effectiverange of about 80 formulations covering all major therapeutic groups.BPL is the first company to receive National Export Trophy (Gold) in 1994-1995, whichwas the very first year of introduction of such award by the government of Bangladesh.This is the highest national recognition for excellence in Export .BeximcoPharmaceuticals Ltd. Has also been awarded National Export Trophy (Gold) recently fortwo consecutive years 1998-1999 & 1999-2000.It is the only company to be the record 3times winner of this award for its outstanding export performance.BPL has transformed its activities, culture, style and philosophy to meet the demands ofthe new millennium. Business diversifications that are strategically important forRONI BHOWMIK - 19 -
  • 20. sustained growth are results of its vision of the future. On completion, this plant would beone of the most modern plants in this region. Several new bulk drug facilities are beingdeveloped to backward integrate their high volume products. BPL’s commitment to itscustomers is to always offer them the best both in product quality and services.4.2 Major Achievement of BPL:1976 Registration of the company.1980 Started manufacturing and marketing of license products of buyer AG of Germany and Upjohn Inc. of USA.1983 Launching of BPL’s own products1985 Listing in the Dhaka Stock Exchange (DSE) as a Public Limited Company (PLC).1990 Commissioning of Basic Chemical Unit.1992 Started export operation with Active Pharmaceutical Ingredients (APIs).1993 First export market operation with finished pharmaceutical products.1994-1995 Achievement of National Export Trophy (Gold) as the first pharmaceutical company of the country. Introduction of 20 new products.1996 Introduction of sustained release dosage form in the market. Introduction of 12 new products.1997 Commissioning of Metered Dose Inhaler (MDI) plant and introduction of suppository dosage form. Introduction of 15 new products.1998 Introduction of Metered Dose Nasal Spray. Introduction of 13 new products.1999 UNICEF approval of BPL as an enlisted supplier. Introduction of 6 new products.2000 Contract manufacturing agreement of Metered Dose Inhaler (MDI) with Glaxo SmithKline. Introduction of 11 new products.2001 Introduction of small volume parenteral products (Injectables). Establishment of Analgesic-Anti inflammatory plan.RONI BHOWMIK - 20 -
  • 21. Introduction of 26 new products.2002 The first Bangladeshi company to supply pharmaceuticals to Raffles Hospital- the most prestigious hospital of Singapore.2003 Introduced Anti-HIV drugs for the first time in Bangladesh. Diversification into Anti-Cancer therapeutic class.2005 Only company in Bangladesh to get listed on Alternative Investment Market (AIM) of London Stock Exchange through issuance of GDRs. Construction of state-of-the-art USFDA standard oral solid dosage facility was completed.2006 Launched CFC free HFA inhalers for the first time in Bangladesh Introduction of 11 new products.2007 New Oral Solid Dosage (OSD) facility was commissioned according to US FDA standards.2008 First and only Bangladeshi company receives GMP Clearance from Therapeutic Goods Administration (TGA) Australia, and Gulf Central Committee for Drug Registration, for GCC member state. Technology transfer arrangement to manufacture Roche’s ARV drug Saquinavir.2009 Only Bangladeshi company to receive GMP Certification from ANVISA, Brazil ION unit was launched for producing injectables, ophtalmics and nebulizer solutions. Source: Annual Report of BPL, 20094.3 Beximco Pharma’s Different Edge: • World class manufacturing facilitiesRONI BHOWMIK - 21 -
  • 22. • Highest GMP standards • Outstanding product quality • Sophisticated formulation technology • Diversified dosage forms & products • Significant investment in R&D • Excellent customer services • Responsible care for the environment • Commitment to the people & the society4.4 Beximco Pharma’s Blockbuster Product:• Napa Highest selling drug in Bangladesh Pharmaceutical Market in terms of unit.• Neoceptin-R Highest selling drug in Bangladesh Pharmaceutical Market in terms of value.• Bextrum / Bextrum Gold Emerged as the most admired & highest selling nutritional supplement in Bangladesh.• Amdocal Highest selling cardiovascular drug in Bangladesh Pharmaceutical Market in terms of value.• Tofen Highest selling oral anti-asthma drug in Bangladesh Pharmaceutical Market in terms of value.• Azmasol Highest selling Metered Dose Inhaler brand in Bangladesh Pharmaceutical Market . Source: Annual Report of BPL, 20094.5 Company Profile at a Glance:Corporate Headquarters: 17 Dhanmondi R/A, Road No.-2 Dhaka-1205, BangladeshOperational Headquarters: 19 Dhanmondi R/A, Road No.-7 Dhaka-1205, BangladeshFactory: Auspara, Tongi , GazipurYear of Establishment: 1976RONI BHOWMIK - 22 -
  • 23. Commercial Production: 1980Status: Public Limited CompanyBusiness Line: Manufacturing and marketing of Pharmaceutical Finished products and Active Pharmaceutical Ingredients (APIs)Overseas Offices And Associates: UK, USA, Pakistan, Myanmar, Singapore, Kenya, Yemen, Nepal, Czech Republic, Vietnam, Cambodia and Sri Lanka.Export Outlets: Bhutan, Georgia, Germany, Hong Kong, Iran, Iraq, Kenya, Malaysia, Myanmar, Nepal, Pakistan, Russia, Singapore, Taiwan, Vietnam, Yemen, Czech Republic, Mozambique, Philippines, Srilanka, Thailand, Ukrain.Authorized Capital in Taka: 9,100 millionPaid-up Capital in Taka: 1511.49 millionTurnover (net) in Taka of 2009: 4868.25 millionNumber of Shareholders: 80,189 (as on Dec. 31, 2009)Stock Exchange Listings: Dhaka, ChittagongNumber of Employees: 2,511 Source: Annual Report of BPL, 20094.6 Departments of BPL and their Activities:BPL has highly qualified professional staffs for handling all the condition of thecompany. Introduction of various divisions are as follows: • Central Product Management (CPM) Department • Purchase Department • Market Research & Statistical Cell (MRC) Department • Sales DepartmentRONI BHOWMIK - 23 -
  • 24. • Human Resource Department • Finance and Accounts Department • Sales & Training Department • Management Information System (MIS) Department • Multimedia Department • Medical Services Department (MSD) • International Marketing Department • BPL Factory (Works Department)4.6.1 Central Product Management (CPM):CPM stands for Central Product Management that takes care of the total marketing of theproducts. This department mainly focuses and gives emphasis on the strategies. Majorfunctions of the CPM Department are: • Preparing product literature and promotional materials for doctor. • Determining the packaging pattern, color, size. • Setting target sales • Searching about competitors strengths, weakness and opportunity • Conducting meeting with field workers • Issuing budget in consulting with different department • Setting price for each product • Collecting statistical data which are relevant to their operation4.6.2 Purchase Department:This department interacts directly with the planning, production, and finance department.The sales department fixes the sales target. According to the demand, Purchasedepartment starts their operations which are mentioned below in the sequential basis:  Being ordered from the planning department, the department establishes and calculates the cost of raw materials necessary.RONI BHOWMIK - 24 -
  • 25.  Split out the whole year’s demand for raw materials on monthly basis.  It asks for cash to the finance department.  Decide which product to purchase from the local market and which to import.  It arranges for bidding to the suppliers which involves close interaction with the planning department.  Along with the planning department, it has to cooperate through the whole process of purchasing raw materials from available sources.  This department also involves about the machinery requirements for a specific production process and their purchasing.4.6.3 Market Research & Statistical Cell (MRC) Department:Market Research & Statistical Cell (MRC) Department plays a vital role in looking formarket share of the company in the industry. The whole country is divided into 829territories under 20 regions. Headed by a manager, 30 Market Research Representatives(MRR) does the task of market survey. The department discloses the trend of increasingor decreasing market share by compiling the received data from the market.Responsibilities of the Market Research & Statistical Cell (MRC) Department: • Forecasting future market share in response to the data from the market research representative. • Recruitment of research persons in consultation with the Human Resource Department. • Strategy developing for effective market survey. • Arrange training for field force. • Performance evaluation of the market researchers. • Secret tours are arranged by the department to cross-check the data accuracy of the market researchers.4.6.4 Sales Department:RONI BHOWMIK - 25 -
  • 26. Sales department is forecasting the sales. The major responsibilities of this departmentare, preparing the strategies for expense budget through CPM, and generating the demandin the market through MPE. The main goal of sales department is sales achievement. Thedepartment divided the whole country into 20 regions and assigned 20 Regional SalesExecutives to control sales activities. Main activities of Sales Department are- • Forecasting future sales in consultation with the CPM department. • Recruitment of sales force in consultation with the HR department. • Budget estimation in consultation with the Finance department and with the Director of Marketing and Commercial. • Strategy developing for effective sales force. • Arrange training for field force. • Handling critical customers. • Ensuring product availability. • Donation handling. • Performance evaluation of the sales force.4.6.5 Human Resource Department (HRD):There are two major types of activities have HRD. These are: i) Administrative functions (maintenance and protocol services) ii) Human resource related functionsThe objectives of Human Resource Department (HRD) are- • Recruitment policy and procedure • Conformation policy and procedure • Placement of employees • Human Resource Development • Organizational structure review and modification • Career planningRONI BHOWMIK - 26 -
  • 27. • Hiring and firing • Maintaining and developing employees personal files • General services • Safety and security • Welfare activities for employees4.6.6 Finance and Accounts Department:There are three wings under the Finance & Accounts Department. These are- 1. Treasury Accounts 2. Financial Accounting 3. Management Accountingi) Core functions of Treasury Wings: • Fund management • Maintaining banking transactions loan and leases • Party payments • Employee payrollii) Core functions of Financial Accounting Wings: • Day to day transaction recording • Monthly Reports • Auditing • Handling Tax related matters • Maintaining legal compliance • Maintaining SEC rules • Preparing Financial Reportsiii) Core functions of Management Accounting Wings: • BudgetingRONI BHOWMIK - 27 -
  • 28. • Costing • Internal Reporting • Maintaining project’s capital expenditures4.6.7 Management Information System (MIS) Department:The MIS Department takes care of total automation of BPL. It supports the hardware andsoftware network of the company and the factory. This department provides servicesthrough SNA Server, WIN NT Server, and SQL Server. BPL operational headquarters islinked to the corporate headquarters through fiber optic cable. The department alsoestablished a Wide Area Network (WAN) with the 12 depots around the country. MISdepartment develops the access Control & attendance monitoring System internally. Thedepartment maintains the radio-link between the factory and the head-office. Thesoftware section is to work for developing software solutions as per organizationalrequirements.4.6.8 Multimedia Department:BPL is the only pharmaceutical company that has a Multimedia Department. This ishelping in the product promotion. It designs medical videos for the doctors. Thedepartment also provides audio visual aids to other departments of the company and alsoassists to decorate the publications. Major functions of the Multimedia Department are:RONI BHOWMIK - 28 -
  • 29. • Web page designing. • Developing multimedia presentation for presentation programs. • Making videos of conferences, meeting etc. • Designing the cover page of annual report. • Making video for products. • Making video for company. • Keeping the records of annual meeting and other meeting. • Storing still photographs and video on medical science. • Copying literature, promotional tools, and medical in CDs to gift it to doctors.4.6.9 Medical Services Department (MSD):This department is a unique department in this industry as BPL established this first everin order to create easy relationship through using the professional linkage with thedoctors, the ultimate customer of the pharmaceutical companies. It publishes a special‘Medical Newsletter’ quarterly and sends the current issues to the enlisted doctors at freeof cost. The newsletter consists of important, recent medical articles. It also providesnews gathered from inter-net and allows free browsing facility for the doctors. Thus ithelps the medical community and at the same time increases the company image outside.4.6.10 Sales & Training Department:The Department has the responsibility of providing training to the firm’s employees andmanagement. The curriculum of training varies from group to group. Training has beenprovided through lectures with the assistance of handout, multimedia projector, technicalRONI BHOWMIK - 29 -
  • 30. memorandum and training materials. The department basically offers four types oftraining programs. i) Induction Training Programs for MPEs ii) Supervisory Management Programs for ASEs iii) Advanced Supervisory Management iv) Refresher Training Programs for everyone in sales4.6.11 International Marketing Department:In 1991, the company took the challenge to venture into the international arena. At first itstarted exporting only formulation products. Then in 1996 this company first startedexporting their finished goods. This department is concerned with the internationalpromotion and marketing of BPL finished products and basic chemicals. On a continuousbasis, it has to analyze certain criteria of overseas markets: • Country Profile (population, country size, land area, growth rate, fertility rate, population break down, etc.) • Health Status (health manpower, people per doctor, etc.) • Economic Overview (GDP, size of household, government health expenditure as percent of GDP, etc.) • Medical Infrastructure (number of dispensaries & hospitals, no. of beds, etc.)RONI BHOWMIK - 30 -
  • 31. • Legal Aspects (govt. regulatory affairs, export-import regulations, trade barriers, registration procedures, etc.) • Take necessary steps to enter into the market.4.6.12 BPL Factory (Works Department):Beximco Factory Complex (a manufacturing plant in Auspara, Tongi, Dhaka) has 7 acresof land and a total covered space of 160,000 sq. ft. Total manpower in the factorycomplex is 450. It has three different types of plants: 1. Formulation Plants for pharmaceutical Products. 2. Raw materials Plants:  Basic Chemical Plants: Produces raw materials of Antibiotics.  Pharmatek Chemicals: Produces raw materials of Paracetamol. 3. Beximco Infusions Ltd.: Produces Intravenous (IV) Fluids.4.6.13 Sponsorships Department:Sponsorships integrate editorial content and advertising.  Beximco want to build partnerships that provide useful content.RONI BHOWMIK - 31 -
  • 32.  Sponsor disclosure is an important issue for e-marketers.  Beximco in 2011 World Cup Cricket official sponsor  Beximco try to do sponsor in Bangladesh Indoor all games. 5. E-Marketing in Bangladesh and Beximco5.1 The Existing Situation and Potential of E-marketing inBangladesh:Internet services are presently available in Bangladesh. Its usage for e-commerce by theBangladeshi producers to export as well as to access inputs will be dependent on theirwillingness and ability to use this medium as well as that of the buyers of final productsand the sellers of intermediate goods and services.Figure: The Three Dimensions of E-CommerceSource: International Telecommunications Union, Millennium, October 1999, GenevaFigure 1 depicts the three dimensions of e-commerce. Business-to-Consumers (B2C)ecommerce is practically non-existent within Bangladesh, while a very limited level ofRONI BHOWMIK - 32 -
  • 33. Business-to-Business (B2B) and Business-to-Government (B2G) transactions exists. Thepotential for use of e-commerce by Bangladeshi consumers and businesses with foreignfirms is much brighter, and can play an important role in boosting the country’s exports.A significant volume of B2G is also possible, as the government remains the biggestspender.5.2 Supportive Framework in Beximco:Electronic commerce generates competition, revenue and profit. It also creates flows ofgoods and services and hence traffic. Subsequently, it can act as an incentive for investorsto finance locally available infrastructures, connectivity and bandwidth. However, beforethis ‘virtuous circle’ can be initiated, the ‘magic triangle’ -- access, trust and know-how –an essential precondition for the start-up and expansion of electronic commerce, must befirmly established between both the public and the private partners involved. This magictriangle can only be set in place if it receives the full and active support from the variousstakeholders.Figure: The Magic Triangle of E-CommerceSource: International Telecommunications Union, Millennium, October 1999. GenevaAccess to e-technology such as the Internet is a necessary but not a sufficient conditionfor the development and growth of e-commerce. The popularity of e-commerce in anyRONI BHOWMIK - 33 -
  • 34. economy will be dependent not only on the cost, efficiency and reliability of Internettechnology but also on the supportive framework that includes legal and financialinfrastructural support as well as support in the form of technical expertise (know-how).A weak and inefficient supportive environment can damage the trust among partners andwill stranglehold the possibilities and attractiveness of using technology for business andcommerce. Source: http://www.alibaba.com/member/mrh2128.htmlBeximco Pharma, a leading medicine manufacturer, now targets expansion of its exportmarkets to Australia and North American countries and also in China market.Gulf Cooperation Council (GCC), a forum of 10 Middle Eastern countries, andTherapeutic Goods Administration (TGA) in Australia have already accredited thecompany in 2008 for exports. The combined pharmaceutical market of GCC is valued atmore than $4 billion. Currently, the multinational companies in Europe and the US holdthe lion’s share in the GCC market.Beximco Pharma Director Zakaria S Chowdhury told, “A team from Brazil has inspectedour plant recently and we hope we will be certified for export of medicines there in amonth.” “We await accreditation from the UK administration also,” he added.RONI BHOWMIK - 34 -
  • 35. Presently, the company exports to 14 Asian, five African, four Pacific and two MiddleEastern countries. Over 200 small, medium and large local and multinational companiesmeet around 97 percent of the Tk 5,000 crore domestic market demands.According to industry people, some of these companies exported medicines worth nearlyTk 300 crore in 2008, which were Tk 200 crore and Tk 150 crore in 2007 and 2006respectively. The country now exports a wide range of pharmaceutical products coveringall major therapeutic classes and dosage forms to around 60 countries, including somedeveloped markets. High-tech specialised products like inhalers, suppositories, nasalsprays, indictable and infusions are also in the export basket.Novartis, Beximco, Square Pharmaceuticals, Aventis, Eskayef, Popular Pharmaceuticals,ACI and Acme are some of the leading exporters. A World Trade Organisation facilityhas paved the way for Bangladeshi companies to grab the global medicine markets.Bangladesh will be able to continue with the patented products up to December 2015 asper trade related intellectual property rights. Pharmaceutical industries are now legallyallowed to manufacture and sell generic versions of on-patent pharmaceutical productsfor domestic consumption and exports to other LDCs. Bangladesh is a country among 50least developed countries that is self-sufficient in pharmaceuticals, the industry peopleclaim. But manufacturers must strictly comply with the standards for export of medicinesin respective countries. Beximco officials said the company’s export figure wouldincrease manifold in the years to come. “We hope to take Beximco Pharma’s exportfigure to Tk 1,000 crore by 2013 from the present national figure of Tk 300 crore,” saidChowdhury. Beximco is diversifying to parental form of dosage of ophthalmology andnebuliser, he added. A good number of companies, including Square Pharma, Renata andEskayef, have won accreditation from the Medicines and Healthcare Products RegulatoryAgency (MHRA) of the United Kingdom.5.3 Legislation Relating to Trade:Area LegislationCustom Duties Customs Act, 1969RONI BHOWMIK - 35 -
  • 36. Import Regulations Imports and Export (Control) Act, 1950; Customs Act, 1969; review, Appeal and Revision Order, 1977; Importers, Exporters and Indentors (Registration) Order,n1981; Licenses and Permit Fees Order, 1985Customs Valuation Amendments introduced to the Customs Act, 1969, in 1997Pre-shipment Inspection Amendments introduced to the Customs Act, 1969, in 1998Rules of Origin Standard Rules of Origin, 1977Standards Imports and Export (Control) Act, 1950Sanitary and Phytosanitary Measures Imports and Export (Control) Act, 1950Marketing and Labeling Imports and Export (Control) Act, 1950Anti-Dumping Measures Amendments introduced to the Customs Act, 1969, in 1995Countervailing Measures Amendments introduced to the Customs Act, 1969, in 1995Safeguard Measures Amendments introduced to the Customs Act, 1969, in 1997Pricing and Marketing Arrangements Consumer IndexExport Regulations Import and Export (Control) Act, 1950; Customs Act, 1969Government Procurement No legislationCompetition Law No legislationIntellectual Property Rights Patents and Design Act, 1919; Copyright Ordinance, 1962; Trade Markets Act 1940Foreign Investment Foreign Investment (Promotion and Protection) Act, 1980Foreign Exchange Foreign Exchange (Regulation) Act, 1947Banking Service Banking Companies Act, 1991Insurance Services Insurance Act, 1938; Insurance Corporations Act, 1973; Insurance Rules, 1953Telecommunications Services Details not available from the authoritiesAir Transport Services Details not available from the authoritiesMaritime Transport Service Merchant Shipping Ordinance, 1993; Bangladesh Flag Vessel (Protection)RONI BHOWMIK - 36 -
  • 37. Ordinance, 1982 Source: World Trade Organization, 2000. Trade Policy Review Bangladesh.5.4 Acts and Laws Related to Consumer Protection:1. Control of Essential Commodities Act 19562. Pure Food Ordinance 19593. Price and Distribution of Essential Commodities Ordinance 19704. Bangladesh Drugs Control Ordinance 19825. Breast Milk Substitute (Regulation of Marketing) Ordinance 19846. Tobacco Goods Marketing (Control) Act 19887. Penal Code 18608. Special Powers Act 19749. Dangerous Drugs Act 193010. Trade Mark Act 194011. Standards of Weights and Measures Ordinance 1982 6. MRC Department of BPL6.1 Market Research & Statistical Cell (MRC) Department:In this competitive business market “Market Research” is a vital part of any type ofcompany, especially who have the variety range of product (like-Medicine, Cosmetics,Consumer Goods, etc.). Market Research (MR) is necessary for making any type of senseabout the market and which saves the time, resource, wastage of money. MR helps toknow the condition of the existing product, helps to set the further steps, helps to achievethe objective and target of the company which is set by the top management, helps toknow the condition of the competitors, market share and market growth rate. ThroughRONI BHOWMIK - 37 -
  • 38. Market Research (MR), company can keep the record of each and every product and alsosome other factors like which product is earning more value for the company and whichone is not, which one the number one product by unit or which one the highest sellingdrug in different market (like- Antibiotic) and also the performance of the MedicalRepresentatives (MRs). And helps to identify that product which one needs a largepromotion to increase its sales. MR Dept. keeps not only the product’s record also keepsthe doctor’s record, which doctor helps to earn more revenue by prescribing medicines ofBeximco Pharma.In BPL, MRC Department was established in 1987 with one Sr. Product Officer and fiveMarket Research Representatives (MRR) under CPM Department. MRC Dept. dividedthe whole country into 20 zones to make the research work effectively and accurately.MRC Dept. has a research team which controlled by the MRC Dept. which includesSenior MR Officer, MR Officer, Assistant MR Officer and MR Supervisor (Office). Andthe Manager of MRC Dept. is responsible for the whole activities of department. In thisdepartment there are 39 employees working together. MOTTO of MRC Dept. “Find anything, Tell it like it is” Designation No. of Employees Manager 1 Sr. MR Officer 1 MR Officer 3 Asst. MR Officer 2 MR Supervisor (Office) 2 MR Representative 30 Total 39 Table-: Total Manpower Strength of MRC Dept.RONI BHOWMIK - 38 -
  • 39. Organogram of MRC Dept. Manager Manager Sr. MR Officer Sr. MR Officer MR Officer MR Officer MR Officer MR Officer MR Officer MR Officer Asst. MR Asst. MR Asst. MR Asst. MR Officer Officer Officer Officer MR MR MR MR Supervisor Supervisor Supervisor Figure-: Organogram of MRC Dept. Supervisor6.2 Activities of MRC Department:There are some specific jobs that are done by the MRC Dept. on regular basis are givenbelow: 1. Prepare statement of Prescription, Slip, OTC and also Product manual movement report of BPL, Formulation and Infusion. 2. Prepare required product wise report of 12 BPL region and region of Formulation and Infusion. 3. Prepare comparison of BPL, Formulation and Infusion with the competitors. 4. Prepare national product wise report of BPL, Formulation and Infusion. 5. Prepare monthly report. 6. Prepare monthly survey report in brief. 7. Prepare brand loyal doctors survey report of Formulation. 8. Special survey report on some potential doctors given time to time by CPM. 9. Company wise survey report every month.RONI BHOWMIK - 39 -
  • 40. 10. Prepare the report of yearly average percentage comparison of different company. 11. Monthly territory wise percentage of BPL, Formulation and Infusion. 12. Prepare combined percentage (BPL & Formulation) every month. 13. Prepare the monthly tour plan & short tour plan 14. Collect the data from the field through MRRResponsibilities of Market Research Representatives (MRRs): ♦ Visiting the chemist shops, hospitals and clinics according to the tour plan to checkout the prescriptions, slips, and OTC drugs. ♦ Prepare the summary based on the day long collected data. ♦ Send those summaries to the MRC Dept. by mail regularly.Product knowledge is most necessary for the Market Research Representatives (MRRs).They visit the 829 territories around the year and need 2-3 days visit for a territory.6.3 SWOT Analysis of MRC Department:Strengths: • Well trained MRRs • Well structured managementRONI BHOWMIK - 40 -
  • 41. • Well structured & systematic survey method • Realistic & up to date marketing information providerWeaknesses: • Do not use any type of data analyzing software • Little bit biased result • Not adequate number of MRRsOpportunity: • Can use some data analyzing softwareThreat: • Can not avoid the biased information to collect6.4 Industry Analysis:Bangladesh Pharmaceutical Market is one of the very much complex and competitivemarket. Here almost 250 licensed local and multinational companies run their businessactivities. Pharma industry is one of the fastest growing sectors in Bangladesh. In the year2005, the size of pharma market of Bangladesh is estimated to be Tk. 3,000 crore with anannual growth rate of about 12%.At present, Bangladesh produces about 97% of its domestic needs and has turned to be amedicine exporting country within a short span of time. Now more than 95% of the localdemand of medical products is met by the local production. Bangladesh is placed in sucha unique position that it can bring revolution in its pharmaceutical sector if the countrycould capitalize the opportunities optimally. Both Research and Marketing dept. canmake a huge impression for the enhancement of the pharma company. By providing validRONI BHOWMIK - 41 -
  • 42. and most important market data to the Marketing dept., Market Research dept. assists totake crucial steps to grab those best opportunities as much as possible.7. E-marketing Advantage and DisadvantageThe importance of e-marketing through its various forms is constantly growing andevolving in today’s business world, which is becoming increasingly digital and tech-savvy. The benefits of internet marketing are endless and continue to grow. As the timeschange, people have come to expect the existence of this form of marketing, making itincreasingly crucial to deliver on those needs to foster long-term success. E-marketinggives businesses of any size access to the mass market at an affordable price and, unlikeTV or print advertising, it allows truly personalised marketing.Advantage in E-marketing:RONI BHOWMIK - 42 -
  • 43. • Global reach - a website allows you to find new markets and trade globally for only a small investment. • Lower cost - a properly planned and effectively targeted e-marketing campaign can reach the right customers at a much lower cost than traditional marketing methods. • Track able, measurable results - web analytics and other online metric tools make it easier to establish how effective your campaign has been. You can obtain detailed information about how customers use your website or respond to your advertising. • Personalisation - if your customer database is linked to your website, then whenever someone visits the site, you can greet them with targeted offers. The more they buy from you, the more you can refine your customer profile and market effectively to them. • Openness - by having a social media presence and managing it carefully, you can build customer loyalty and create a reputation for being easy to engage with. • Social currency - e-marketing lets you create engaging campaigns using different types of rich media. On the internet these campaigns can gain social currency - being passed from user to user and becoming viral. • Improved conversion rates - if you have a website, then your customers are only ever a few clicks away from completing a purchase. Unlike other media which require people to get up and make a phone call, or go to a shop, e-marketing can be seamless and immediate.Disadvantage in E-marketing: • Undelivered Email: It may be difficult to get email through a spam filter as many companies use e-mail marketing to communicate with existing customers, but many other companies send unsolicited bulk e-mail. • Email Overload: Even when an email gets through to the consumer, there is so much email that needs to be looked at sometimes it is difficult for the individual to distinguish between solicited and unsolicited email, as well as have time to read through the email.RONI BHOWMIK - 43 -
  • 44. • Render ability: Difficulty of displaying the creative as intended within the in-box of different email reading systems. • Email response decay: Email recipients are most responsive when they first subscribe to an email. It is difficult to keep them engaged. Soon, the opted in for newsletter may be seen as an irritant. • Communications preferences: Recipients will have different preferences for email offers, content and frequency which affect engagement and response. These have to be managed through communications preferences. • Resources: Additional people and technology resources are required to deliver a sophisticated email newsletter that engages the consumer. 8. ConclusionThe business world has drastically changed throughout the years. Some of the mostimportant changes are the marketing efforts that drive it, allowing businesses to reachtheir goals if they are done right. The transition that has faced the most change, however,is undoubtedly the world of internet marketing. Throughout the years, businesses,consumers, marketers, and nearly every member of society has felt the effects of thisevolving method in fulfilling customer needs. By utilizing this resource, businesses havewelcomed many new opportunities that couldn’t have existed without it. Furthermore,consumers and suppliers in this “digital” age have come to expect these options and arein control of the market. Using the internet and other E-marketing methods is now criticalin reaching a target market effectively, as well as doing business overall. Internetmarketing is crucial to success because it covers such a large span while upholding aRONI BHOWMIK - 44 -
  • 45. mass appeal. As today’s business environment continues to change, it is essential, if notexpected and required, to utilize comprehensive internet marketing to attain or maintain acompetitive edge.Pharmaceutical sector is one of the fast growing and most developed scientific sector inBangladesh. There are about 250 registered pharmaceutical companies operating inBangladesh pharmaceutical industry. The market is highly competitive. And it is reallydifficult to get response from the market. Company depends on those physicians’prescription, because doctors are prescribing some medicines and accordingly patientsfollows the doctor’s instruction. Sometime chemist shops also influences the patients totake medicine as their choice. So, the pharmaceutical companies have to know about theirtarget customers (doctors, chemist shops) behavior and market condition to developmarketing strategies based on this situation.In this situation E-marketing is very important in this sector. So Beximco Pharma selectE-marketing and firstly in new market as like China market. 9. Bibliography • Books: • Principles of Marketing Phillip Kotler 9th Edition • E-marketing Judy Strauss and Raymond Frost 5rd EditionRONI BHOWMIK - 45 -
  • 46. • Marketing Research Naresh K. Malhotra 4th Edition • Published Information: • Annual Report of Beximco Pharmaceuticals Ltd. (2002, 2003 & 2009) • Export Brochure of Beximco Pharmaceuticals Ltd. • Teacher Lecture Sheet • Websites: • www.beximco.org • www.alibaba.com/member/mrh2128.html • www.beximco-pharma.comRONI BHOWMIK - 46 -