AcademicYear:PGP2012-2014

Project on: - B2B

Faculty:- PROF. R. MATHUR

BY:

Apurva Singh PG20121122

Executive Summary

Surgical Device market in Bangladesh has great prospect for the local manufacturer of surgical device. More than 30,000 surgical devices are available in Bangladesh. Almost all devices are exported from foreign country. So we can tell surgical device market as the unexplored B2B market. Only four major companies are providing surgical devices in Bangladesh. If the companies manufacture more surgical device then it generate huge profit to them. It also creates more empowerment and also contributes to our national economy.

JMI syringe & Medical Device Company Ltd. has various kinds of surgical product, although it is very difficult and risky for surgical device provider to develop new product, JMI has eleven products. The company‟s age is not very old in comparison of its competitor. But still the companies are doing well in surgical device market in Bangladesh. They are ranked as 2nd as the comparison of its competitor Opso saline.

JMI Syringe & Medical Device Limited has received tremendous response by institution buyer and dealers. Institution buyers have gained confidence in their products for quality and economics. This business shows considerable promise in contributing to the national economy of Bangladesh. This report focuses on JMI‟s syringe & other medical devices their various strategies, promotional activities, and their position in the market in comparison to the market leader “Opso Saline” and so on.

JMI charges cost plus pricing for some of his products and for unique product like AD syringe and urine drainage bag they charges skimming pricing. They have also promotion strategy like other surgical device company in Bangladesh. The promotion campaign is inspiring the doctors and their patient to use safe syringe, attending different seminar, fair related to pharmaceutical product. But due to the Govt. prohibition they can‟t promote their product by the mass media.

Introduction:

Surgical Device market in Bangladesh has great prospect for the local manufacturer of surgical device. More than 30,000 surgical devices are available in Bangladesh. Almost all devices are exported from foreign country. So we can tell surgical device market as the unexplored market. Only 4 major companies are providing surgical devices in Bangladesh.

We have chosen JMI syringe & Medical Device Company Ltd. as the business market or B2B market as they manufacture products that are used for business purpose.

JMI has various kinds of surgical product, although it is very difficult and risky for surgical device provider to develop new product, JMI has eleven products. The company‟s age is not very old in comparison of its competitor. But still the companies are doing well in surgical device market in Bangladesh. They are ranked as 2nd as the comparison of its competitor Opso saline.

JMI Syringe & Medical Device Limited has received tremendous response by institution buyer and dealers. Institution buyers have gained confidence in their products for quality and economics. This business shows considerable promise in contributing to the national economy of Bangladesh. This report focuses on JMI‟s syringe & other medical devices their various strategies, promotional activities, and their position in the market in comparison to the market leader “Opso Saline” and so on.

JMI charges cost plus pricing for some of his products and for unique product like AD syringe and urine drainage bag they charges skimming pricing. They have also promotion strategy like other surgical device company in Bangladesh. The promotion campaign is inspiring the doctors and their patient to use safe syringe, attending different seminar, fair related to pharmaceutical product. But due to the Govt. prohibition they can‟t promote their product by the mass media.

This report also covers the findings and analysis based on the response of the users of surgical device. Along with it, the report also covers SWOT analysis, benchmarking, Porter‟s five forces model, bases for market segmentation, marketing mix elements etc. Using these, it will help JMI syringe & Medical Device Company Ltd. to determine what sort of steps and strategies are to be implemented by them in order to be the market leader. In addition, it will also help them to understand the needs and wants of their target audience and to provide them with the best possible service.

Based on the current status on JMI Syringe & Medical Device Company Ltd, it can be said that it has tremendous potential to be the market leader. Proper planning and implementation of effective strategies will help them to achieve this objective within a short span of time.

Objective of setting it up

The objective of the venture was to manufacture and market versatile forms of medical devices & syringes that conform to the highest level of safety and International quality standards in order to serve mankind in the preventive & curative health care field. JMI was converted into a Public Limited Company in the year 2002. Mr. Md. Abdur Razzaq is the founder and Managing Director of the company who accomplished his Masters in Economics from Chittagong University, Bangladesh. He acquired long seven years work experience, knowledge and expertise in the field of manufacturing sterile medical devices during his time in Japan.

JMI objective is to earn the user's trust and satisfaction in their products through providing safe affordable and patient compliant syringes and medical devices. To manufacture and promote patient friendly quality products for global acceptance.

Company’s aim is to ensure that they deliver the highest quality medical devices to customers, applying innovative technologies to help facilitate the practice of safe healthcare for all at an affordable price.

The Products

The product of JMI is syringe and medical devices. There are two types of syringe.

Sl. No.Name of Syringe

1. Sterile disposable syringe (1 Ml, 3M, 5 Ml etc.)

2. Auto disable syringe (.05 Ml, .5 Ml etc.)

Sterile Disposable Syringe: There are different kinds of disposable syringe produce by JMI. They are: Major Function of syringe:

Name of Disposable Syringe1 ml3 ml5 ml10 ml20 ml30 ml50 ml

Major Function of syringe:

1) To administer medication directly to body circulation system.

2) To draw blood for diagnostic purposes

3) For vaccination purposes.

Users of Syringe:

1) Hospital

2) Diagnostic center

3) Doctor‟s chamber etc.

Sterile Auto Disable (AD) Syringe:

Characteristics:

This system cannot be used and so this is a useful for presentational transmission of blood borne diseases. Use of an AD syringe:

1) Vaccination

2) Preventive and curative healthcare purpose.

Different AD syringe0.05 ml0.1 ml0.5 ml1 ml3 ml5 ml10 ml

Insulin Syringe:

Purpose:

Used for management of diabetes by pushing insulin.

1) Insulin syringe 40 units

2) Insulin syringe 100 units

Other Medical Devices:

Intravenous Infusion Set:

It is used for direct infusion of liquid dextrose solution, nutritional product and medication to body strength to vein.

Urine Drainage Bag:

It is used for collection of urine through catheter applicable for critically ill patients

First Aid bandage:

Medicated bandage to protect wound from external attack. It is used for stopping the blood & help the skin not to damage.

I.V. Cannula:

I.V. Cannula is used to take saline in intravenous for different purpose.

Blood Transmission Set:

Blood transmission set is used for transmit the blood.

The Target Audience

1,495 wholesale drug license holders and about 37,700 retail drug license holders, hospitals, etc. in Bangladesh are the target audience.

Beside this there are mainly three types of customer for JMI. In outside Dhaka city dealer are the main workers for JMI. Almost 300-400 dealers are working for JMI. There are 68 institution company purchasing JMI product.

No Name of customer

01. Dealer02. Institutional

customer03. Depot

The Major Institution Customers Are:

SL. No. Name of company

01. Square pharmaceutical

02. Square Hospital03. Apollo Hospital04. Lab Aid hospital05. Novartis Bangladesh06. ACI ltd.07. Etc.

JMI main target market is the institution market. They are also dealing with dealer who provides their surgical device in local area. They are also dealing with whole sell market. In Dhaka city Mitford is the one of the huge whole sell market.

Segmenting Strategy:

They are segmenting there market into two market.

a) Local market.

b) Institution market

The Marketing Challenges

To analyze industry Porter 5 Forces Model has developed the following 5 forces model. On the basis of this model JMI is analyzed as the following:

1. Rivalry Among Existing Firms:

This force recognizes the active competition among industry members helps to determine industry performance since we have selected JMI syringe and medical devices as our industry analysis and in this regard we have found strong competitor of JMI. The main competitors for the JMI are-

i. Opso Saline

ii. Skylab

iii. Acme lab There is acute competition being noticed among these industries. At present JMI holds the leader position in the market because of various reasons:

Widening the geographic market.

Selling their products not only to institution but also local market.

Lowering variable cost relative to fixed cost.

Increasing their product Line.

No of marketing information offices.

2. Threat of New Entrants:

This force highlights the possibility of new competitors entering the market. In our case, JMI is facing strong threat of new entrants. As there are more than 30,000 products in the market, but JMI produces few of them. Most of the existing products are exported from the foreign market by various industries and exporter that may impact in the production of JMI. Moreover, Acmi lab may also be concern factor for JMS, because Acmi lab tries to produce more products than JMI and in many cases Acmi lab tries to provide their products more efficiently.

3. Threat of Substitute Products:

This force considers the potential impact of substitutes. New products that satisfy the same customer value requirement are important sources of competition. In our case, JMI faces less threat of substitute products. MI is only substitute product is vacationer in lieu of syringe became vacationer causes less pain than syringe at the time of pushing syringe and drawing blood from the body, Apart from JMI, most of other industries produce vacationer as well as traditional syringe

4. Bargaining Power of Suppliers: The forth force is the power that suppliers may be able to exert on the producers in an industry. In our case, JMI faces strong bargaining power of suppliers. As JMI imports most of its raw materials from South Korean surgical device market where it competes with many suppliers to purchase raw materials. The main reason for this competes is less number of suppliers than buyers exist in South Korean Market.

5. Bargaining Power of Buyers:

Finally buyers use their purchasing power to influence their suppliers. In our case, Customers have less flexibility in terms of purchasing JMI‟s products because most of the product’s price is fixed by the authority. So, customers have less chance to bargain with JMI.

Comparison of Two Competitors:

There are different basis of comparison of the competitors in surgical device market in Bangladesh. The following points show the basis of comparison of surgical device market.

Manpower:

Normally, Companies who have more manpower can do better than others. But if the manpower is not efficient then it is difficult for the company to promote the product. Efficient manpower can promote the company’s product well which boost the company’s‟ market share.

Transportation:

Transportation facilities can help to smooth distribution system. If the company has more transportation smooth distribution is possible but it also increases the cost of the company because more drivers needed for the cars and more fuel oil needed for the car. So the company must be decided which one is best for him and take the right decision.

First Comer:

The first comer is the best eater of any market. The companies who come to the market first can get the opportunity to fix the skimming pricing and get the profit layer by layer. More Product Line:

The company who has more product lines has got the best opportunity to fix the bundle price and sells the all product of his company to other companies. This policy also creates him the fixed satisfied customer and helps to do well in long term business.

Supply Chain:

Supply chain is more talk about issue in current business world. So the company who has strong supply chain can do well in any business. In surgical market context supply chain is also important to provide the product to our ultimate customers.

Quick Delivery:

Quick delivery system can help the surgical device company to satisfy their customer and build strong customer relationship with their customer. Any company who fail to provide their customer demand product in time have a negative impact of the company and may be lost the customer.

Certification:

The company who has the international certificate about their product quality creates good will & help to get new customer. In surgical device market quality product has the value of the institution, hospital & diagnostic centre. So the company has some certificate like ISO & CE certificate help to prompt their product.

Packaging:

Packaging can create the positive impression for the customer. Here, one important example can be discussed that Dispo Vin is the most common brand for insulin syringe in local market because of their appealing looking. Local market insulin syringe of JMI is not prominent because

of their poor packaging although its quality is best in local market. So base on this example we can said that the packaging is important issue in surgical device market.

Relationship:

Relationship among the dealer and the ultimate customer can be important for the companies to build the long term relationship of the customer. If the relationship is not good with customer then the customer are dissatisfied and the company lost its Customer.

Bargaining price:

The price rate is not fixed. Always there are bargaining with the price. The customer wanted lowest price product but they do not think about the quality of the price.

Delay payment:

The payment policy in local market is not fixed. The payment is at delay. Sometimes it is very difficult to collect payment for the local market. It increases the cost of company. The cost increases because the companies have to pay more amounts to their MIO to collect payment.

Present Scenario with Company Reports

AD syringe is the most prospects for JMI. If the use of AD syringe is habituated in India like Bangladesh, then the sell of AD syringe of JMI is Increase and they can earn huge profit. JMI has the export business in Germany, South Asia & Middle East. They have the plan to increase their business further.

Company has self-distribution centers in different location of the country for distribution of all goods as far order placed by the sales force. Moreover company has selected number of dealers at meerut (UP) and district head quarter level for smooth distribution of product where company’s self-distribution network is not available.

The Future Scenario

AD syringe is the prospect of JMI group. If AD syringe is habituated in India then JMI as the will look next step forward to AD syringe in India surgical device market it can bring huge profit for the company. Already JMI exported AD syringe in Germany & Netherland.

In response to cost plus pricing Opsonil has penetration pricing. The price of their product is very low. That’s why in local market they are doing well. Cause the client of local market demanded only low cost product. They have huge sell because they provide very low cost product.

Learning

Suggestions

As a surgical device company JMI has wonderful chance to do well and go to the number one position in this industry. They have lots of prospect like AD syringe, Urine Drainage Bag & copper tea etc. But the management body should consider warehouse issue, MIO‟s proper incentive, and dealer satisfaction & institution market problem with great concern. Otherwise all the success achieved by the company in recent years can go to vein. So the company should deep concern on the above issue and take necessary to build strong position in surgical device market in Bangladesh.