Bayer Pharmaceuticals

Bayer Pharmaceutical Pakistan

SupervisorMr. Ekhlaque Ahmed

Presented ByAli Hasan Naqvi

Asif Hussain

Distribution Channel of Bayer2

COMPANY BACKGROUND • Bayer a German pharmaceutical • Among the top pharmaceuticals

of the world • Existence in more than 55

countries • Acquired the Schering Gmbh in

2006


CONSUMER’S PROFILE• Products are bought by prescription• Focuses on educating and convincing

the doctors for suitability of formulae and effectiveness

• General practitioners, consultants, dermatologists, cardiologists, gynecologists, urologists and radiologists are actual decision makers


INDUSTRY OVERVIEW• Pakistan's pharmaceutical industry

worth approx US$1.18 billion with an annual growth rate of 9.4%

• Total 652 pharmaceutical manufacturers– 30 multinationals & 622 national

companies • The top 50 companies enjoy 83.5%

market share and the top 100 companies have 94.0% market share. There are 20 multinationals in the top 50 companies


Market Share

Market share Multinationals : 53.3% National Companies : 46.7%

53.30%

46.70%Multinational

Local


PRESENCE IN PAKISTAN Region District /Area

CENTRAL-I BAHAWALPUR

CENTRAL-I FAISALABAD

CENTRAL-I MULTAN

CENTRAL-I SARGODHA

CENTRAL-II GUJRANWALA

CENTRAL-II GUJRAT/SIALKOT

CENTRAL-II LAHORE

NORTH PESHAWAR

NORTH RAWALPINDI

SOUTH-I KARACHI

SOUTH-I QUETTA

SOUTH-II WHC HYDERABAD


Annual Growth Rate

0

2

4

6

8

10

12

14

16

2006-07

IndustryBayerSchering

Industry 9.4Bayer 9Schering 15

Source: IMS Reports


Distributors


SBU’s at Bayer• Women health includes two

groups– Derma care– Women health care

• Primary care includes– Cardio metabolic– Anti infective

• Specialty care


SALES HIERARCHYCEO

Marketing & Sales Manager(women health)

Marketing & Sales Manager(primary care)

Sales Manager(2 for every Region)

Sales Manager(2 for every Region)

Area Manager(1 for every Area)

Area Manager(1 for every Area)

Sales Reps (on average 5 / Area Manager)

Sales Reps (on average 5 / Area Manager)


SALES TARGETS• IMS Reports

– guide to evaluate the local pull and demand in the market for a specific formula

– Makes an aspiring market share target that translates into regional targets

• Targets for sales representatives are of value sales and unit sales both.


IT INFRASTRUCTURE• PDA devices are used for order

booking• Automated business intelligence

system helps to combine and evaluate different decision making reports

• Company’s own sales data and other data provided by IMS is used for– Segmentation and Call Planning – Sales Target Setting – Territory Re-alignment – Sales force sizing and deployment


DISTRIBUTION NETWORK• 32 Cities/Towns, 12 District/Areas, and 4

Regions covered nation wide.• 43 distribution units and 35 separate

distributors.• There are 8,500 (licensed + unlicensed)

chemists/pharmacists in Karachi • 45,000 licensed chemists all over Pakistan

are covered by Bayer distributors including 3,500 licensed chemists of Karachi

• Distribution to unlicensed chemists is illegal


DISTRIBUTION OPERATIONS

• More than one distributor may be assigned in a single territory for same product / SKU for different delivery times ensuring delivery every alternate day

• Distributors are not given any specified targets

• Area Managers influence distributors in designing PJPs.


DISTRIBUTION OPERATIONS

• Maintain 45 days stock • 7– 8% sales by wholesaler• No credit policy

– AG&Co takes credit sometimes using its influence


Discounts

Entity Discounts

Distributors 22-28%

Wholesalers 17-18%

Retailer 15%


ORDER BOOKING • Efficient order booking by PDAs• Listed Universe• Delivery recording is also

electronic


DISTRIBUTION MONITORING

• Cartons printed with distributors’ name / code to evaluate distributors’ sales and to control territory infiltration.

• The company monitors secondary sales through invoicing to measure the SKUs sold and to check the territory infiltration.


Reports, RegionsMeasures Measures

Net Trade Sales Net Trade Volume

Geographical Location 1,098,220,159.67 7,784,548

Central I

Central II 660,449,853.31 5,556,686

South 1,069,730,985.00 6,706,955

North 915,434,251.04 7,294,565


Report, CitiesMeasures Measures

Net Trade Volume

Faisalabad 1,263,451

Gujranwaala 1,187,042

Islamabad Depot 5,456,454

Karachi 54,654,485

Karachi North Depot 1,156,4866

Lahore 1,410,177

Lahore II 1,271,618

Multan 363

Quetta 54,654

Rawalpindi 54,546

Sahiwal Depot 906,755

Sargodha 668,182


Report, AreasMeasures Measures

Net Trade Volume

Geographical Location 855,856

Area 41

Area 42 574

Area 46 456

Area 47 546

Area 48 3445

Area 49 553,980

Area 50 199


Report, Sales Rep


Report, Locations


Report, Retailers


Report, SKUs


Reports, Sales Type


Report, Retailer Type


Report, Date wise


Report, Medicine Type

Business

Bayer Pharmaceuticals