Marketing plan 1

Contents of the marketing plan:

1. Executive summary P 3-4

2. Current market situation P 5-7

3. Opportunity and issue analysis P 8-9

4. Objectives P 10

5. Marketing strategy P 11-14

6. Action programs P 15

7. Financial projections P 16

8. Implementation controls P 17

Marketing plan 2

Company Profile:

Square Pharmaceuticals started their operation as a Partnership Firm. In 1964 they converted into

a Private Limited Company. In 1974 they conduct a technical Collaboration with Janssen

Pharmaceutical, Belgium, a subsidiary of Johnson & Johnson Intl, USA. In 1982 square

pharmaceuticals signed a licensing agreement with F. Hoffmann-La Roche Ltd., Switzerland. In

1985 they achieved market-leadership in the Pharmaceutical market of Bangladesh among all

national and multinational companies. In 1987 square become Pioneer in Pharmaceutical export

from Bangladesh. In 1991 they converted into public limited company. In 1994 they offered their

Initial Public Offering of Square Pharmaceutical shares. In 1995 Chemical Division of Square

Pharmaceuticals Ltd. starts production of pharmaceutical bulk products (API). In 1997 square

pharmaceuticals won the National Export trophy for exporting pharmaceuticals. In 1998 Agro-

chemicals & Veterinary Products division of Square Pharma starts its operation. In 2001 US

FDA/UK MCA standard new Pharmaceutical factory goes into operation built under the

supervision of Bovis Lend Lease, UK. In 2005 New State-of- the-Art Square Cephalosporin’s

Ltd. goes into operation; built under the supervision of TELSTAR S.A. of Spain as per US FDA/

UK MHRA requirements. In 2007 Square Pharmaceuticals Ltd., Dhaka Unit gets the UK MHRA

approval.

SQUARE today symbolizes a name - a state of mind. But its journey to the growth and prosperity

has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top Marketing plan 3

line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is

holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985

and is now on its way to becoming a high performance global player.

VISION

Square view business as a means to the material and social wellbeing of the investors, employees

and the society at large, leading to accretion of wealth through financial and moral gains as a part

of the process of the human civilization.

MISSION

Square’s Mission is to produce and provide quality & innovative healthcare relief for people,

maintain stringently ethical standard in business operation also ensuring benefit to the

shareholders, stakeholders and the society at large.

OBJECTIVE

Square’s objectives are to conduct transparent business operation based on market mechanism

within the legal & social frame work with aims to attain the mission reflected by our vision.

Corporate focus

Square’s vision, mission and our Objectives are to emphasize on the Quality of product, process

and Services leading to growth of the Company imbibed with good Governance practices.

Organizational Structure:

Marketing plan 4

Chairman

Vice Chairman

Managing Director

Board of Director

Director

Resident Adviser

Executive Director

Operation

Executive Director

Executive Director

Executive Director Admin

Marketing plan 5

Training & Employee Development in Square

Square’s Training & Development enables their people to enhance their skills, keep them

updated with recent changes. They offer both on-the-job and off-the- job at both theoretical and

practical training opportunities through a range of Local, Regional and International Training

programs that include both functional and managerial levels on the basis of Training Need

Assessment. Training Need Analysis (TNA) is conducted by Department Heads and Human

Resource Department jointly on the basis of job analysis.

Management Development Training

Marketing plan 6

Round the year, management development training is organized for managers & executives at

Square’s Corporate Headquarters, Dhaka Unit & Pabna Unit. Our own and renowned resource

persons from home & abroad conduct the training sessions. They also send their employees to

renowned local training institutes for specialized training.

Overseas Training

Square sends their employee to abroad for training program depending on availability of

appropriate topics. Technical persons of their factories attend the Factory Assessment Test

(FAT) in various parts of the world for smooth operation of equipments.

Field Forces Training & Development

Each year, a significant number of Field Forces complete their induction training program and

joined to their respective markets and appear at examination in every month for further

development.

Field Forces Refresher Course

For updating product knowledge and selling skills of field forces, Refresher Course is organized

in four different regions in every month.

Territory Manager Training

Twice in every year, mid-level managers of sales participate in the training program titled “Sales

Territory Management” at a regular basis.

Marketing plan 7

Distribution:

Every year a number of Distribution Assistants (DA), Data Entry Operators (DEO) go under

induction training program immediately after initial recruitment. Each month, Refresher course

for DA, Driver and Packers is organized in two different depots for updating their knowledge.

Other Activities:

Students of various universities are placed as Interns in different departments.

Significant number of students completed their In-Plant Training in our Plants.

Coordinating factory visit for different government and Institutions.

All newly joined executives go through a structured Orientation Program.

We conduct health, Hygiene & different awareness program for our colleagues.

Square conduct training on different compliance parameters for our factory colleagues.

1. Executive Summary

In Bangladesh cardiovascular diseases are increasing day by day. High cholesterol level in blood

is one of the important factors for developing cardiovascular complications.

For the treatment of high blood cholesterol, statins are the widely acceptable drugs. Presently 4

statins (Simvastatin, Atorvastatin, Fluvastatin, and Lovastatin) are available in Bangladesh.

Though there are a number of statins available worldwide, but considering the clinical profile,

Rosuvastatin is the best and it is known as the “Super Statin”. We always try to launch superior

Marketing plan 8

molecule first time. In this context, square proudly launches the Super Statin by the name

Rosuva®

If we consider the price, price of Rosuva tablet will be little bit high. Each tablet will cost Tk.

45.00. On the other hand the price of Lescol is Tk. 30 per tablet. But considering the clinical

efficacy, Rosuvastatin is superior to fluvastatin. In this case our objective is to target some

opinion moulders first for Rosuva tablet and special emphasis will be given to the doctors who

usually attend the patients belonging to high-class of the society.

Our expectation is Tk. 32, 60,352 in launching year from this product. Market size of Lipid

lowering agents is Tk.16, 39, 74,473. Our initial objective is to snatch 2% share from this

market segment. Pricing is crucial and we should have to overcome this limitation by aggressive

promotional activities. Product price is Tk. 45.00/- per tab. GM of the product is 50% with a

mark-up of 24%. Depending on successful workout on this product, we expect net profit of

596,565/- in the launching year.

Successful launching of this product will increase our pace in cardiovascular market. Definitely

we are going to do it.

Marketing plan 9

Product Presentation:

Marketing plan 10

2. Current Marketing Situation:

Square Pharmaceuticals has its independent department. It conducts the survey throughout the

country. With the help of MRPC Square can get the idea of prescription movement of Rosuva

as well as competitors brand. So Square can do their Mass marketing of Rosuva all over the

country.Respective Portfolio Executive will visit the customers to collect their feed back

regarding the product and study their satisfaction. So the current market situation of Rosuva is

increasing Day by Day. It’s doing very well in the market as a new comer. If we look at the

growth rate, sales trend, net income then we can easily understand the situation of Rosuva.

Rosuva is lised as growing product in the drug market.

Cholesterol & Triglyceride reducer Tk. 16,39,74,473Growth 9.38%Expected share from the market segment 2.5%Expected value sale in first 12 months (Tk.) 3,260,352 Expected unit sale for first 12 months 9,600 Pack size 10'sUnit price (MRP+VAT) 450Gross margin 50.00%Mark-up 24%Sample cost in first 12 months 180,000 Sample-sale ratio in first 12 months 6%Promotional cost in first 12 months 455,000 Promotional cost-revenue in first 12 months 14%Net profit before tax in first 12 months 596,565

Competitor’s analysis:

Direct Generic competitorsNo direct competitor

Indirect Generic competitors

Brand Company Vaue sale/year (Tk.) Growth (%)

LESCOL Novartis 20,061,378 -8.51

Marketing plan 11

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

INCEPTA PHARMA SQUARE BEXIMCO NOVARTIS ESKAYEF GENERAL ORION LAB. OPSONIN CHEM RENATA DRUGINTERNATIONAL

2001

2002

2003

2004

TIGINOR Incepta 18,395,232 20.75

ATOVA Beximco 15,096,007 48.52

LIPICON Eskayef 11,137,054 -62.97

LIPITIN General 10,389,656 12.52

Sales trend of Top 10 manufacturers in Cholesterol & Triglyceride market:

Growth (%) of10 manufacturers in Cholesterol & Triglyceride market:

  2004 2003 2002 2001

Total market 9.38 33.08 99.59 127.60

Incepta pharma 32.70 69.41 462.96 999.00

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Square 6.92 16.78 47.88 18.37

Beximco 31.99 29.39 -9.54 69.33

Novartis -8.51 -2.82 68.28 999.00

Eskayef -62.97 75.10 999.00 999.00

General 14.80 73.38 999.00 999.00

Orion lab. 197.64 999.00 0.00 0.00

Opsonin 45.42 4.90 999.00 999.00

Renata 41.69 -3.43 -11.94 72.25

Drug international 58.70 34.20 999.00 999.00

Marketing plan 13

Market share (%) of top 10 manufacturers in Cholesterol & Triglyceride market:

MANUFACTURER 2004 2003 2002 2001 2000 INCEPTA PHARMA 13.40 11.05 8.68 3.08 0.00 SQUARE 12.41 12.69 14.46 19.52 37.53 BEXIMCO 12.28 10.18 10.47 23.10 31.05 NOVARTIS 12.23 14.63 20.03 23.76 0.00 ESKAYEF 6.79 20.06 15.25 1.63 0.00 GENERAL 6.46 6.16 4.73 0.52 0.00 ORION 5.97 2.19 0.00 0.00 0.00 OPSONIN 5.87 4.41 5.60 0.44 0.00 RENATA 5.77 4.45 6.14 13.91 18.38 DRUG INTERNATIONAL 5.76 3.97 3.94 0.31 0.00

Market share (%) of top 10 manufacturers in 2004:

13.4

12.41

12.28

12.236.79

6.46

5.97

5.87

5.775.76

INCEPTA PHARMA SQUARE BEXIMCO NOVARTIS

ESKAYEF GENERAL ORION OPSONIN

RENATA DRUG INTERNATIONAL

3. Opportunity and issue analysis

SWOT analysis of Rosuva: Generic ApproachMarketing plan 14

SWOT Comparison SheetGeneric Approach

 Company Name Web Address EmployeesAnnual Sales

Revenue Net Income

Asset Liabilities Business Value

Stock Value

Square Pharmaceuticals Ltd

 www.squarepharma.com.bd  3564   3162541(in thousand) 

8257844(in thousand) 

4411836(in thousand)

3500845(in thousand) 

   40

Sun Pharma Ltd  www.sunpharma.com   34605.6(million) 

3903.2(million) 

20559.4(million) 

19482.7(million) 

 2314.7(million)

  No stocks in market 

SWOT Comparison Sheet (Strengths)

Strengths Square (Rosuva)Sun Pharma (Rozavel)

What are your business advantages?

Long product range Good quality image Strong field force

Good image Good quality

What are your core competencies?

State of the art manufacturing facility Knowledgeable field force

Skilled in production

Where are you making the most money?

 Finished pharmaceutical products Selling our product

What are you doing well? Antibiotics Anti ulcerant products

Tablets and liquid syrup.

SWOT Comparison Sheet (Weaknesses)

Weaknesses Square (Rosuva) Sun Pharma (Rozavel)

Marketing plan 15

What areas are you avoiding?

N/A Niche market

Where do you lack resources?

Research and Development Human resouces Department

What are you doing poorly?

Chronic care products Insulin products

Where are you losing money?

Lyophilized injectable products

Anti cancer products

Liquid products

What needs improvement?

Not applicable Worker Effort

SWOT Comparison Sheet (Opportunity)

Opportunities Square (Rosuva)Sun Pharma (Rozavel)

Any beneficial trends? Technologies Our workforce.

Niches that competitors are missing?

N/A Not applicable

New technologies? Insulin, Hormone Generic Analysis

New needs of customers?

Bio-tech products Effective medicine

SWOT Comparison Sheet (Threats)

Threats Square (Rosuva) Sun Pharma (Rozavel)

Obstacles to overcome? Implementation WTO agreement

after 2016 Production fault in 2005

Aggressive competitors? Aristopharma, Renata , Aristopharma, Popular

Successful competitors? Popular, Incepta Beximco, Square

pharmaceuticals ltdNegative economic conditions?

Unrest political condition Current situation of Bangladesh

Government regulation? VAT on physician sample VAT

Changing business climate?

Unethical practice by the competitors

Challenge by competitor

Vulnerabilities? N/A N/A

SWOT analysis of Rosuva: Functional Approach

Environmental (SW) Analysis- Comparison Sheet

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Total SW of Square Total SW of Sun Pharma

(Rosuva) = 62 – 14 (Rozavel) =29 - 45=48 = -16

Environmental (OT) Analysis- Comparison Sheet

Marketing plan

Factor Rosuva (Square) Rozavel (Sun Pharma)Strength Weakness Strength Weakness

Products 4 1 2 2Price 5 0 1 4Quality 4 1 3 2Selection 4 1 3 2Service 4 1 1 3Reliability 4 1 2 4Stability 4 1 1 4Expertise 4 1 1 4Company Reputation

5 0 1 4

Location 5 0 1 4Appearance 4 1 3 2Sales Method

4 1 3 2

Credit Policies

2 3 4 2

Advertising 4 1 2 2Image 5 1 1 4

Total= 62 - 14 29 - 45 48 16

17

Factor Rosuva (Square) Rozavel (Sun Pharma)Opportunity Threat Opportunity Threat

Technology 4 1 2 3Economy 4 1 2 2Political 3 2 3 2Legal 3 1 2 2Service Providers

4 1 2 1

International Trade

4 1 3 2

People 4 1 3 2Industry 3 3 2 2Purchasing Power

3 1 2 3

Social 3 1 2 3Religious 4 1 1 3Channel Actors

1 0 0 0

Credit Policies 1 3 3 1Media Access 1 1 1 1Infrastructure 4 1 2 3Total= 46 - 19 30 - 30

27 0

Total OT of Square Total OT of Sun pharma( Rosuva) = 46 – 19 (Rozavel) =30 - 30

=27 = 0

Strength:

1. Clinical superiority over other available statins

Marketing plan

SWOT Analysis

Internal Factors External Factors

Opportunities ThreatStrength Weakness

18

2. USFDA approved molecule

3. First time introduction in market

4. Good product presentation

5. Good corporate image of Square

6. Skilled filed force

7. Strong distribution network

Weakness:

1. High price

2. Due to high price limited number of consumer will be able to afford the drug.

3. Inadequate concentration on cardiovascular drugs

Opportunity & Threat:

Opportunity:

1. Prevalence of cardiovascular disease and hyperlipidemia is increasing day by day in

Bangladesh

2. Good market growth

3. Doctors are preferring statins as lipid lowering agent.

4. If raw materials price is fallen, it will help to reduce the price of the product and will

make the doctors comfortable to prescribe frequently which will increase market size.

Threat:

1. Launching of the molecule by other companies

2. Launching of the product with reduced price by other competitors

3. Unethical practices by some competitors (offering cash money, contract, etc.)

Marketing plan 19

4. Objectives:

Financial objective:

a. Earn an annual rate of return on investment of 23.25%, which represents a

projected market share of 2.5%.

b. Produce net profit of Tk. 5.65 lac in one year

c. Achieve first-year total sales volume of Tk. 32.6 lac, based on an average price of

Tk. 450.00 per unit box.

Marketing objective:

a. Achieve a first-year unit sales volume of 9,600 which represents a projected

market share of 2.5%

b. Generating brand awareness within the target customer through CME, Clinical

Meeting, Seminar, Symposia.

c. Generating a good footage in the cardiovascular market.

Marketing plan 20

5. Marketing strategy:

Target customers:

Cardiologists

Medicine specialists

Competitors statin prescribers

Segmentation:

Market segmentation is one of the steps that goes into defining and targeting specific markets. It

is the process of dividing a market into a distinct group of buyers that require different products

or marketing mixes.

Opportunities in marketing increase when segmented groups of clients and customers with

varying needs and wants are recognized. Markets can be segmented or targeted using a variety of

factor. The bases for segmenting consumer markets include:

Demographical bases (age, family size, life cycle, occupation)

Geographical bases (states, regions, countries)

Behavior bases (product knowledge, usage, attitudes, responses)

Psychographic bases (lifestyle, values, personality)

But Rosuva is a lipid lowering drugs. Actually the marketing department of square doesn’t

segment only Rosuva market. It’s actually segmented its market for group of product or the same

kind of product. The marketer of Rosuva could ignore the differences in the segments, and

choose to aim a single product at all segments i.e. the whole market. This is typical in 'mass

marketing' or where differentiation is less important than cost.

Targeting

Marketing plan 21

Targeting is the second stage of the SEGMENT "Target" process. After the market has been

separated into its segments, the marketer will select a segment or series of segments and 'target'

it.

Target customers:

Cardiologists

Medicine specialists

Competitors statin prescribers

Positioning:

Positioning strategy:

Square has positioned rosuva as the “super statin” and aggressive cholesterol reducer to capture a separate place in the mind of the target market.

Marketing Mix Strategy: Marketing mix strategy is the set of controllable, tactical marketing tools through which the company influence the demand of their product and wants to get the response from the target market. Square has five groups of variables which known as 5Ps in their marketing mix strategy.

a.Product: is the goods and services that companies offers to the target market.Square used forward invention for rosuva to meet the need for the treatment of cardiovascular diseases.

b.Price: Price of each tablet of Rosuva is Tk. 45.00. This product belongs to the high range of the lipid modifiers drug market. There are some statins available in the market in lower price. But at present fluvastatin is available at Tk. 35 per tablet but clinically it not superior to Rosuvastatin. This new generic is going to be introduced for the first time in Bangladesh. This will provide a competitive edge over the available generics.

c.Place (Distribution channel): square has decided to distribute rosuva

Marketing plan 22

Through their existing distribution channel and for this their objective is to supply the right

product in right place in right time.Initially this product will be made available to the nearby

chemist shops of the target doctors.

 

d.promotion

Square will use the following communication tools to promote Rosuva:

1. Literature

2. Physician sample

3. Booklet on Lipid modifying drugs

4. Gift- they also gives pen, mug, notepad etc

5. Continuous Medical Education (CME) program on Rosuvastatin

Promotional pattern:b.

Criteria Av. Per

MPO National

No of target doctors in total

1

282

No of prescription served per month per doctor

2

564

No. of tablet served per prescription 1

5

8,460 Total no. of tablets served per month per market

30

8,460

So, The Monthly Average Unit Sales Target will be in box (1 X 10's)

3

846

So, the Yearly Sales Target will be : 3

6

10,152

Promotional intensity:

Category

Number Promotional month

Detailing 04 July, August, October, AprilReminder 01 JanuaryGift 01 November

Detailing: Promotion with printed promotional material & physician’s sample

Marketing plan 23

Reminder: Promotion with only physician’s sample

e.People: also refers to customer. Square specially targets the doctors as their customaers who usually attend the patients from the high-class in the socity.

Rosuva is the “super statin” and aggressive cholesterol reducer

Control Measures:

Sales Force Control:

Square feels that the sales forecast figures are conservative. It will steadily increase sales as the

advertising budgets allows. Although the target market forecast listed all of the potential customers

divided into separate groups, the sales forecast group’s customers into two categories: Recreational and

competitive, reducing the number of categories allows the reader to quickly discern information, making

the char more functional.

Monthly Sales Forecast:

Sales Forecast

Sales 2008 2007 2006

Recreational $455,740 $598,877 $687,765

Competitive $72,918 $95,820 $110,042

Total Sales $528,658 $694,697 $797,807

Direct Cost of Sales 2008 2007 2006

Recreational $82,033 $107,798 $123,798

Competitive $13,125 $17,248 $19,808

Subtotal Cost of Sales $98,159 $125,046 $143,605

DISTRIBUTION CONTROL:

Rosuva has good distribution control all over the country. Initially this product will be made

available to the nearby chemist shops of the target doctors, for that they divide

The distribution channel in four zones’. Those are:-Marketing plan 24

Dhaka.

South.

West.

North.

Rosuva has its distribution channel among the following cities:-

1. Pabna

2. Dhaka

3. Chittagong

4. Comilla

5. Rajshahi

6. Barishl

7. Khulna

8. Sylhet

9. Rangpur

10. Bogra

11. Mymensingh

12. Faridpur

13. Tangail

14. Maizdee

Pricing Control:

Rosuva has a good price control among the market. Though price of each tablet of Rosuva is

quiet high. The price of each tablet is Tk. 45.00. There are some statins available in the market at

lower price; Such as Lesocol. The price of Lescol is Tk.30 per tablet, but considering the clinical

efficiency, Rosuvastain is superior to fluvastain. Actually our objective is to target some opinion

moulders first for Rosuva tablet and special emphasis will be given to the doctors who usually

attend the patients belonging to high-class of the society. High price is the main problem for

Rosuva, but it is going to be introduced new generic for the first time in Bangladesh. This will

provide a competitive edge over the available generics, by doing this we can overcome the

disadvantage of high price.

Marketing plan 25

Marketing Research:

Square Pharmaceuticals has its own Market Research & Planning Cell (MRPC). It is an

independent department. It conducts the survey throughout the country. With the help of MRPC

we can get the idea of prescription movement of Rosuva as well as competitors brand.

Respective Portfolio Executive will visit the customers to collect their feed back regarding the

product and study their satisfaction. The above tools will help to identify the opportunity and

make strategies according for the establishment of the product.

Marketing plan 26

Costing of Rosuva®

ParticularsCost/Pack

(Tk)

R/M cost 155.77P/M cost 3.99(R/M + P/M) cost 159.76Add: Wastage (5%) 1.2Total Material (TM) cost 160.96Conversion Cost :a certain % of TM cost & is given in A&F proposed price, equal for both 7.99

Production cost (PC) 168.95Add: Fixed Admin. Cost and Sell & Dist. Incl. Discount (18% of TP) 61.13Add : Marketing cost (8% of TP) 27.17Total cost 257.25Mark-up 82.37TP 339.62Add : VAT (16.5% of TP) 56.04Add : Retailer's Comm. (16% of TP) 54.34MRP + VAT 450.0GM % 50Mark Up % 24

Marketing plan 27

6. Budget allocation for Rosuva:

Monthwisebreakdown

PROMOTIONAL PLAN SALES FORECAST

(Rosuva 10)PPM SAMPLEGIFT AND

GIMMICKS

PPM U.cost Qty. Total cost Sample U.cost Quantity Total cost U.cost Qty. T. cost UnitsValue Sale (Tk.)

July '07 Lit 8 5,000 40,000 2's 45.00 1,000 45,000 800 271,696August '07 Pad 20 3,500 70,000 2's 45.00 1,000 45,000 800 271,696September '07   800 271,696October '07 SC 3 5,000 15,000 - 800 271,696November '07   500 300 150,000 800 271,696December '07   800 271,696January '08   2's 45.00 1,000 45,000 800 271,696February '08   800 271,696March '08   800 271,696April '08 Lit 8 5,000 40,000 2's 45.00 1,000 45,000 800 271,696May '08   800 271,696June '08   800 271,696

Total   18,500 125,000 4,000 180,000 300 150,0009,60

0 3,260,352

Lit: Literature

SC: Showcard

Marketing plan 28

7. Financial projections

Revenue (Tk.) 3,260,3

52

Less: 3% discount 97,

811

Net revenue (Tk.) 3,162,

541

Less: COG 1,621,9

20

Gross margin (Tk.) 1,540,6

21

Less: Marketing expenses  

Physician's sample 180,

000

PPM + Gift 275,

000

Distribution expense 489,

057

Total expense 944,

057

Net profit before tax (Tk.) 596

,565 Total expense as (%) of net revenue 29.85%

Gross margin (%) in first year 47.25%

Total Investment 2,565,977

Return on investment 23.25%

Marketing plan 29

8. Implementation controls:

Day to day sales monitoring with the help of Square Information Backup System

As the price of the product is high. Continuous communication with suppliers regarding

the price of RM so that right decision can be taken in appropriate time to face the price

war

Necessary steps are taken by commercial department for smooth procurement of the raw

materials

Regular communication with the filed force for updated feedback regarding the

prescription movement of the product

Analysis of market share data provided by Market Research & Planning Cell, to take

necessary measure for increasing/sustain market share

Marketing plan 30