Final Bio Report- Raproxain (r)

Submitted To:Md. Farhan ImtiazLecturerInstitute of Business AdministrationUniversity of Dhaka

Raproxain by NM Pharmaceuticals Ltd.Submitted by:Nafis Uddin Mehran (Roll: ZR-67)Ishmam Maliha Raisa (Roll: RH-72)S.M. Fahim Hossain (Roll: ZR-85)Tamjid Yameen (Roll: ZR-90)Md. Abrar Nakib (Roll: ZR-115)Rahman Nahian (Roll: ZR-119)

LETTER OF TRANSMITTAL

June 01, 2014

Md. Farhan ImtiazLecturerInstitute of Business AdministrationUniversity of Dhaka

Sir,

With due respect, we would like to present to you our term paper for Biological Science course. It is a marketing report on the launching of a new medicine brand named Raproxain in Bangladesh by a hypothetical company, N.M. Pharmaceuticals. We believe that it is in compliance with what you had instructed us to do.

For the preparation of this paper, we have collected and created relevant information from our own knowledge, your course, past Marketing course and various data archives online.

Finally, we wish to inform you that we have worked diligently to present to you an impeccable report, and we would like to cordially thank you for giving us this opportunity to perform under your supervision. We have managed to learn a lot under your expert guidance, and the experience has been invaluable. We hope that we will have the honor to learn more from you in the future.

Sincerely Yours,

Nafis Uddin MehranIshmam Maliha RaisaS.M. Fahim HossainTamjid YameenMd. Abrar NakibRahman NahianTABLE OF CONTENTSExecutive SummaryPage 4ProductPage 5PositioningPage 7PricingPage 13PromotionPage 20PackagingPage 26PlacePage 29ProcessPage 32PeoplePage 32Physical EvidencePage 33PlanetPage 33ConclusionPage 35

Executive Summary

We have started off with the activities of a hypothetical pharmaceutical company named NM Pharmaceuticals ltd. Through this company we are launching our product Raproxain composing of Naproxen 500mg as non-steroidal anti-inflammatory agent and also added with that a proton pump inhibitor to oppose the adverse effects of this particular NSAID upon receptors gastro-intestinal tracts. Thus, with this medication we will enable our customers to get rid of pains of all kinds of auto-immunity inflammation such arthritis and also of anky-losing or spondylitis diseases.To finish this comprehensive report, we have used the 10P strategy of marketing formulation as our prime methodology and therefore described the futuristic planning surrounding concepts of product, proposition, pricing, promotion, packaging, place, process, people, physical evidence and planet.In the product part, we have actually shown the therapeutic properties of the drug and indications with contraindications. We tried to position our brand with varied different up to date techniques. In the pricing section we summarized the whole costing process and dealt out the MRP for unit amount of our product with that we also got the net income, the bottom line for which we are all working upon the product. Forecasts for next four years costing and net proceeds are also added with it. Then there will be our extra ordinary promotion plans to get an very optimistic yet gettable 10% market share over the market of naproxen, which is very far from reaching saturation. We have altered the idea of traditional packaging with all new Rapple packaging system made of biodegradables. These strategies will be followed by the place, process, people and planet parts which are there mainly to make everyone familiar with our companys humane site and environmental cum employment-health awareness. We also designed physical evidence strategy to put our product on the front row of retailers.

ProductRaproxain

Generic name:Naproxen, as NSAID (non-steroidal anti-inflammatory drug) with Rabeprazole as PPI.Composition: Each enteric coated tablet contains Naproxen 500mg USP (as per US Pharma) and Rabeprazole 20mg USP as sodium salt.Introduction:Naproxen is a nonsteroidal anti-inflammatory drug (NSAID). It works by reducing hormones that cause inflammation and pain in the body. Naproxen is used to treat pain or inflammation caused by conditions such as arthritis, ankylosing spondylitis, tendinitis, bursitis, gout, or menstrual cramps.Indications:This particular medication is indicated to treat and relief the symptoms and signs of: Rheumatoid Arthritis Osteo-Arthritis Ankylosing SpondylitisDosage and administration:In general, to treat patients with pains and inflammation causing from arthritis and spondylitis, the dosage is one tablet of Raproxain twice daily. The dose should be swallowed with fluid at least before 30 minutes of a meal.**Extra-ordinary differentiation:Raproxain is the first of its kind in the world to produce an NSAID coupled with Rabeprazole as proton-pump inhibitor which will reduce the risk of erosive gastritis, dyspepsia, and peptic or duodenal ulcer caused from the use of anti-inflammatory drugs.Contraindication: Known hypersensitivity towards Naproxen, aspirin or any other NSAIDs Asthma after using NSAIDs After or before coronary artery bypass graft (CABG) surgery Renal and Hepatic impairment Late pregnancy & lactating motherSide-effects:In common, there has been no side effect after using Naproxen other than gastro-intestinal syndromes, due to erosion of mucus level, such as dyspepsia and gastric ulcers. These also can be reduced with the coupling use of Rabeprazole. If the patient is hypersensitive towards Naproxen, Urticaria and other allergic actions like asthma may be observed.Overdose: there is no clinical data.Interaction: can interact and affect the effects of other NSAIDS, Steroids, blood thinners (warfarin, Coumadin), lithium.Why better than other NSAIDs: This medication is much less powerful than Erodolac, ketorolac tromithamine and other post-operative anti-inflammatory groups. Thus its much suitable as an daily usable Arthritis & spondylitis pain-reliever drug. This is absorbed and solutes much easily in lever and does little harm to the kidney through its medicinal process than other NSAIDs like Diclofenac and Sulindac. Diclofenac and ibuprofen also does harm to heart. This works slower than ibuprofen, ketoprofen, fenoprofen, etc. but its effect is longer lasting than all of them.

Why better than other proton pump inhibitors: Rabeprazole works on its effect one and a half times faster than Esomeprazole Its effect lasts twice longer than omeprazolePositioning: An analysis of Market nature, Segmentation, Target market and Consumer behavior

Market Nature: Market Size and Expected Market ShareThe generic product base of naproxen has a total estimated business or market of 33.9 crore BDT. Forty three pharmaceutical companies produce 54 dosage forms of Naproxen under varied names. But, the market tends to be only controlled by the leading five producers.Roche Bangladesh Pharmaceuticals is the current market leader with 29.9% market share and a business valued at close to 100 million BDT. Name of their product is Naprosyn. Anaflex of ACI is the second best in market with 17.02 % market share but their market tends to be going down for unknown reason as their share has been 32.8% just the previous year. Their downgrading is well utilized by Roche, as they now have the largest market share. Square pharmaceuticals is in 4th place with their Sonap and is just preceded by the Naprox of Eskayef Pharma which is n 3rd place. They got a 13.06 and 13.7 % market share respectively. Napro-A of Acme pharmaceuticals is in 5th place with a market share of 11.8%. Approximately, 85% market is occupied by this 5 big market players.We, with our product Raproxine, are planning to penetrate the much occupied market with totally different promotional and sales strategy and expecting a market share nearing 10% at the very first year of our production. We know well that its bit optimistic yet we hope that we would be able to clinch this target with our planned marketing strategy.

Besides, there are also drugs that combine naproxen and esomeprazole so that patients just can take one tablet to solve their targeted problem whereas taking just naproxen needs additional drug containing similar ingredients like esomeprazole. But they hold a a very little market together compared to the traditional naproxen. Following are the brands and their drugs that combine naproxen and esomeprazole is the direct rivals for our produced drug Raproxain which uses powerful rabeoprazole instead of esomeprazole:

Brand NameDrug NameIngredient

Delta Pharmaceuticals Ltd.DEMOVO (375/500)Naproxen Sodium + Esomeprazole

Beximco Pharmaceuticals Ltd.DINOVO (375/500)Naproxen Sodium + Esomeprazole

Ziska Pharmaceuticals Ltd.NAPXON (375/500)Naproxen Sodium+ Esomeprazole

Aristropharma Ltd.NESO (375/500)Naproxen Sodium+ Esomeprazole

Incepta Pharmaceuticals Ltd.PROGESIC (375/500)Naproxen Sodium + Esomeprazole

Brand Positioning of Raproxain: The Top of the Pyramid

Now that we have seen our market scenario, we can clearly see Raproxain will compete in a market against two genres of Drugs. First genre : Naproxen Sodium Second genre : Naproxen Sodium and Esomeprazole Here, our point of differentiation is (POD) for the product is the superiority of Rabeprazole over Esomeprazole. This POD makes it superior over 2 genres mentioned above but due to the supply of raw materials and regarding the effectiveness of Rabeprazole it is likely that the price will be higher than those. As a result, we would like to serve the Top of the pyramid, a very niche market where we will provide the best quality NSAIDs and charge premium prices with value based pricing. As a result if we do the Vector Mapping analysis regarding current market we will see our Brand Raproxain will operate in a completely different market. A unique brand position in the vector mapping entails that the product is likely to be successful in the market despite the sales volume will not match as much as those operating in the middle of the pyramid and mass market. But with maintaining the ultimate branding in our promotion and packaging we can make the best profit margin by serving this niche market.So finally the bottom line is our Brand positioning focuses on things1. The best quality product with Rabeprazole combined2. Premium pricing 3. Operating Top of the pyramid4. Reflection of the brand image in the promotion and packaging.

Segmentation and Target Market: Who needs NSAIDs?

Demographic SegmentationNSAIDs can help reduce fever and are often used to treat mild to moderate pain due to a variety of conditions, such as arthritis, back aches, dental procedures, headaches, muscle spasms, menstrual cramps, sprains and tendinitis. NSAIDs are most frequently prescribed treatment for osteoarthritis. The drugs dont cure disease but they can help relieve its symptoms. So basically, people who are prone to any sort of pain are the potential customers for NSAIDs. But our target market must look for 2 major issues: Who are the people potentially expose to pain threat? Are they ready to pay premium price to get the best solution out of market?Looking through this answer, we have got distinctively 3 clear target market who meets two of our addressed issues.

Target MarketAffordabilityExposure to Pain

SportsmenSportsmen have a higher income level as well as desire to do the best for being fit.High: Due to exposure to unexpected muscle and other injury. Urgency to recover within a time frame to get return to game

Regular gym goerThose who can afford to go to gym regularly are ready to spend extra money for their fitness causes.Moderate : due to exposure to heavy physical activity

40+ people40+ people in Bangladesh have better income levelHigh : Due to their age factor

But here comes the most important question. How do we reach them?And restrictions on Above The Line (ATL) promotion in pharmaceuticals industry makes it more difficult to reach the potential target market. Doctors and physicians are traditional gateways to reach them. Although NSAIDs are prescribed by the doctors but in Bangladesh, a major portion of people show a tendency not to go to doctor for this types diseases especially in the minor cases. Rather they ask their peers, family members and other people around them to get the best relief for the pain. Even shopkeepers play vital roles and have power to drive people to buy NSAIDs. So Marketing through Word of Mouth will facilitate us to communicate with customers in Double gateways. Direct promotion to Patient Target Market Direct Promotion to Doctor group who will serve our Patient Target Market

Figure: Target Market Chain: Double Gateway

As it is not always same game as other drugs when it comes to NSAIDs. So only promotion to doctor will make us miss a massive opportunity to exploit particular consumer behavior to mentioned above. So following this pattern for our targeting and segmentation will give the best output in terms of promotion and other Ps to gain our desired market share.Geographical Segmentation Because of charging premium price, we must make geographical segmentation to get the best out of our targeting and positioning. So we will initially market our product just to 7 divisional cities which includes: Dhaka, Chittagong, Khulna, Barisal, Rajshahi, Sylhet and Rangpur.

Size of the Target Market

The great volume of target market size also indicates that the product has a great opportunity in terms of demand. Among three patient group, 40+ aged group dominates with an staggering figure of 5, 64, 31,665 people which is 37 percent of the total population according to the census of 2011. But as we are targeting the 6 divisional city that narrows down our target figure and assuming that 40+ aged people will be of 37 percent of the district population we can calculate an approximate size of the real target market and it becomes almost 16.835 million 40+ aged people.

CityPopulation40+ aged Percentage40+ aged people per city

Dhaka10 million37%3.7 million

Chittagong4 million37%1.48 million

Rajshahi.7 million37%.26 million

Khulna1.3 million37%.481 million

Barishal.28 million37%.1036 million

Sylhet.27 million37%.0999 million

Rangpur.285 million37%.10545 million

40+ aged people who are our target market16.835 million

Among sportsmen approximate number of professional footballers from 3 football divisions all over Bangladesh is 1500. Cricket has 4 divisions which sum up a number of 2000. And if we count other sport professionals as well as amateur sports the figure will cross at least 20000.Bangladesh having 2500 gyms all over the country including 600 in Dhaka and suburban area the approximate gym goers number of people will be almost 15000. So it looks the total market size is very huge with almost 17 million people.

Pricing and Costing

Financial planning & cost structure

costing per tablettotal cost for 3 million tablets

ParticularsbdtBdt

raw material cost

naproxen r/m1.95700000

rabeprazole r/m1.13300000

wastage (5%)0.15450000

packaging material0.25750000

total material cost3.410200000

conversion cost (medc+pacg)0.51500000

direct labor0.752250000

total product cost4.6513950000

distribution & admin exp.0.952850000

VFOH (machinery+utility etc.)0.852550000

FFOH for 3 mil tabs0.551650000

marketing/promotional cost3.39900000

TOTAL COST10.330900000

mark up (12.2%)1.2566---

VAT (16.5%)1.6995---

retailer comiss. (16%)1.6484944000

MRP per tab14.9041

MRP per 20s pack298.1

From the above schedule of costing it can be seen that three million tablets are being produced. The number is a very good one keeping in mind that the factory is at its initial stage of production. This huge number of tablets will enable the company to achieve high levels of efficiency in a very short period of time. Since the factory is already producing a huge number of tablets, the company does not need to increase production levels to achieve optimum level of production since it is already producing a high level. The raw material cost is 1.9bdt per unit for naproxen and 1.1bdt for rabeprazole. It is expected that the firm will be able to bring down the raw material cost over the years when it has bargaining power which it does not have at this moment because it is a new entrant. The wastage is expected to be 5% which shows how efficiently the management is expected to run the factory. All other cost is in acceptable range except for marketing and promotional cost. This cost is very high because the company will be launching this tablet this year. It has no brand loyalty and consumers are not even aware that such a product exists in the market. Therefore, a huge marketing campaign needs to be carried out. Not only the consumers need to know about this product, but the doctors, who would be prescribing the medicine to the patient, needs to know about this. If the doctors do not prescribe it to the patient, the product would not be at all successful. The doctors are more important than the consumers in terms of marketing. Therefore, marketing needs to be done for the doctors also by giving those pads and other things. Retailers commission is 16%. This cost is expected to be brought down over the years once the product gets widely available.In the overall context, it can be said that the factory is expected to run very efficiently. Some of the variable cost seems to be a bit high. However, the company will be able to bring those costs down over the years. Moreover, the company is not very far away from achieving optimum level of production. Therefore, it can be concluded that the company would be able to record huge amount of profits in the coming years.After adding major medicinal substance and packaging material cost the total raw cost is calculated at 10.2 million BDT whereas after adding the manufacturing and labor cost the total production cost becomes 13.95 million BDT. There will be a fixed factory overhead of 1.65 million which is not prone to change with the units sold. Adding with this, the huge promotional cost of 9.9 million BDT of introductory first year we get total cost of 30.9 million BDT.While 12.2% mark up, 16.5% value added tax and a retailers commission as stated before is added, per tablet MRP becomes 14.9 Taka and maximum retail price for the whole box is estimated to be 298 Taka per 20s pack. We can eventually get the mark up percentage up when we finish our 1st year successfully with very less inventory and are unable to get our products demand at its peak.

Expected Net ProceedsThe following diagram shows the net proceeds for the first year. It can be seen that 90% of the total production will be sold. It shows that the demand of the product will be very high given that the demand analysis was done correctly and a successful marketing campaign is done. However, 10% of the production will remain as ending inventory and it is essential for maintaining a steady flow of inventory so that the company can adapt to changes in demand in the market and can avoid a short fall in inventory levels. At the same time, it can be said with assurance that the factory will be able to operate at its full capacity and therefore keeping some slack may come in handy. On the other hand, the markup of this product is 33% which means that almost 67% of what is sold goes into gross margin. The factory overhead cost is 3945000 and this acceptable whereas the selling and admin expenses and VAT and commission seems a bit high. This is because the company is only at its first year in operation and it will take some time to produce more efficiently and in a production level where it can achieve optimum economies of scale. It can be expected that in the coming years the company will be more efficient and keep cost to a minimum level and hence increase the profit levels. After paying a tax level of 27.5% the net income is 1212556. This is only 3.8% of the total revenue and this is a bit low. None the less, the co. is only at its first year in operation and a margin like this is acceptable and quite good actually. There is a clear sign that the co. can keep its cost down in the coming years and then this net profit to sale percentage will increase.

Net Proceeds: 1st year

Expected revenue (90% of tot. prod.)40241070

COGS (product cost)12555000

Gross margin27686070

factory over heads3945000

sales and admin cost12750000

vat and commission9038250

EBIT1952820

tax (27.5%)537025.5

Net Income1415794.5

Forecasting the cost and prices for next four yearsIn our second fiscal year, production will increase 2.5% to 3075000 units. Some other important costs including a major change in promotional cost will occur as follows:costing per tablet in 2nd yeartotal cost for 3.075 million tablets

ParticularsBdtBdt

raw material cost



Wastage (5%)0.1495459712.5










TOTAL COST9.489529180213

Mark up (12.2%)1.157719---

VAT (16.5%)1.565768---

Retailer comiss. (16%)1.518324668834

MRP per tab13.73131


3rd year production increase by another 2.5% for the second consecutive year to 3150000 units:costing per tablet 3rd fiscaltotal cost for 3.15 million tablets

particularsbdtBdt

raw material cost



Wastage (5%)0.149469350










TOTAL COST9.17928913850

Mark up (12.2%)1.1198383527490

VAT (16.5%)1.5145354770785

Retailer comiss. (16%)1.468644626216

MRP per tab13.28201


In the fourth and fifth year production increases to 3225000, all other cost remain unchanged, except marketing and promotional cost, as the company has already taken steps to reduce cost in the earlier years. And, as the market now gets much more saturated than before there would be very less difference between years else than the promotional cost. The changes are as follows:costing per tablettotal cost for 3.225 million tablets

particularsbdtBdt

raw material cost



Wastage (5%)0.149480525










TOTAL COST9.02929118525

Mark up (12.2%)1.1015383552460

VAT (16.5%)1.4897854804557

Retailer comiss. (16%)1.444644658964

MRP per tab13.06496


Net Proceeds: 2ND year


COGS (produc cost)12839816





EBIT1973987

Tax (27.5%)542846.5

Net Income1431141

Net Proceeds: 3RD year







EBIT2009241

Tax (27.5%)552541.2

Net Income1456700

Net Proceeds: 4 & 5TH year







EBIT2052339

tax (27.5%)564393.2

Net Income1487946

Revenue & net income over five years in graphs

Promotion

As we have mentioned our promotional strategy it will work in two dimensions. One way would be promotion to our target market and another way would be promotion to the doctor and physician group who serves to this target. Thus a two dimensional promotion would be able to make a 360 marketing strategy. Following are the media for our promotion plan.

Online Marketing Facebook: We are going to launch our own Facebook page named by our brand name NM Pharma. In this page we are going to keep our consumers and peers updated about our latest products, our researches and ongoing health issues discussed worldwide. We believe through this page we will be able to reach more people worldwide and we will be able to expand the NM Pharma family and help others to differentiate themselves from others through forming a better health, hence a better life.

Website: We will also be launching our own website. It will be introduced as nmpharma.com.bd. This website will be our enhanced online portal and ongoing calendar of our company. Our pharmaceutical products, personnel, current researches, future expeditions will be comprehensively illustrated and displayed in this website. People will also be able to experience an online tour of our company premises if they will to. Internship and application to be a fellow member of a particular research study under our expert pharmaceutical scientists would also be collected through this website prior to the personal interviews session.

Apps: We are going to unveil two android apps which would be initiated by our company, considering the colossal amount of android users worldwide, which is constantly rising every single second. We are going to induce two gaming applications named as PackPain and NM Fighter. Through both of these games people will be more concerned about arthritis and spondylitis and try to prevent these diseases before encountering and grow communal and social awareness against them.

YouTube: We are going to start a YouTube channel under the name of NM Pharma where the promo videos and observations of the reactions and hence the effectiveness of Naproxen and Rabeprazole would be telecast continually with time. The prime purpose of this program broadcast is to communicate with the consumers in a more direct and intimate way about our products. These videos would answer all the questions and queries in a more direct approach and help the consumers to reach out for our product the most convincingly.

Advertising to Doctors Literature: Product literature would be presented to the doctors by our medical representatives. These would be composed in the latest literature fashion and trend as an attempt to become a food for thought for the doctors.

Medical journal advertisements: Our product would be advertised in local and global medical journals and magazines in order to attain global doctoral exposure.

Doctor gifts: We would be presenting our doctors with some gifts on occasion. Diaries, metal pens and dinner sets are one of the gifts our company wills to convey to the doctors as a gratitude to approve our product to the patients.

PUBLIC RELATIONS Newspaper article: We will be publishing awareness against arthritis and spondylitis through the effectiveness of our medicine elements, naproxen and rabeprazol. We would be disseminating these articles quarterly which mean four times a year to keep people abreast of the demerits of the diseases we are trying to grow awareness against.

Old home: We would be providing old homes with free samples. This would actually be a part of our CSR activities. Old homes are a beneficial potential target for us as there are many forty above aged women ambivalent. There will be a doctor who will suggest our medicine. And since this is a huge favorable potential market site for us, they will hence create massive word of mouth which is basically the final expectation or outcome for us from this particular CSR excursion.

Rapple booths: We would be creating apple shaped booths beside lakes in all the divisional cities in the country, which would be named as Rapple Booths. We will give free check-up to the people visiting the booths and there will be a paid doctor by us to diagnose them. For their various health problems, we will suggest them our other products of the brand and we will also diagnose them on regards of their current bodily pains. If we find anyone matching our Raproxain criteria, then we will be giving out the medicine for free.

This will ensure rapid word of mouth spread by the visitors of the Rapple booth and since most of the morning park goers are above 40 and close to 40, this market capture expedition will increase more consumers because- The effect of painkillers work very fast especially on this age group. This specific age group is the focal gateway to penetrate a family circumference.

Sales Promotion Incentive to trainer: Sports trainers or physicians will get one time incentives for recommending our product to their students and peers. It will be monitored subsequently with time to enhance the rewarding process.

Incentive to shopkeepers and sales personnel: Pharmaceutical shopkeepers will get one rapple box to sell if he deposits twenty vacant boxes to our local wholesale outlets. He will also avail himself to 10 percent commission on the total monthly sales that he makes. We want to establish our brand as a shopkeeper amicable company and we want Raproxain to be their apple of the eye.

Sales Meeting: We will organize a half yearly divisional sales meeting where all the sales personnel will be invited. There we will discuss and declare the total sales of the last six months and let them know about the up-gradation Raproxain is attaining when it is being marketed for the next six months. And the sales target and expectations are also going to be announced for the next 6 months. There will be incentives for the divisional best seller and runner up and the third place as well. This incentive can be monetary, non-monetary or both, but must be substantially lucrative.

Raproxain

| NMpharma

10

Promotional Budget

promotional forecasting

raproxain 20s pack

Criteriamedicine specialistsorthopedic surgeonsrheumatologistsgym instructorssports coach

no. of persons approached3502005017038

no. of prescriptions for raproxain/week225

no. of packs suggested per prescription222

monthly pack needs5600320020001417283

annual need of tablets134400076800048000034000068000

total number of tabs required3000000

Packaging

Below are the packagings of two of the competing brands of our product.

Napro-A by ACME Pharma Sonap by Square Pharmaceuticals

Both the packets have more similarities than differences, and the subtle dissimilarities of one from another, throughout the industry, is not enough to position the medicine, in terms of outlook, uniquely in the minds of the customer as something different.

The basic functions of packaging are promotion, protection, identification and description. Driven by the significance of differentiation, we have come up with a new and totally different packaging that will surely attract peoples attention and capture mind share. The idea which inspired and defined our packaging came from one of the most recognizable expressions around us all: "An apple a day keeps the doctor away."The tablets will come in an apple shaped container made ofPolybutylene succinate(PBS),polycaprolactone(PCL), which are synthetic made biodegradable plastic materials. This container will look like an apple (slightly smaller), and will be called RRapple. It will have the same colour combination as the real one, and can be opened by rotating the two halves (upper and lower, along the diameter) in opposite directions to reveal a hollow chamber inside. The lower half of the sphere inside will house all the tablets in layers, one on top of the other, in circular strips, with the bottom strip containing the least number of tablets, and the one along the diameter inside will contain the most due to the shape of space available. The literature will be folded and placed inside the upper half of the sphere. Refer to the figures below (not accurate samples):

"An Apple A Day Keeps The Doctor Away" will be printed on the outer surface of the apple.Along with the specifications of Raproxain

There is no other packaging except cartoons in which the apples will be shipped from factory to the pharmacies, out of sight of the public.Each Rapple will consist of 20 tablets. If someone buys the full amount, then he or she gets to take the apple, and store the tablets inside it at home. On the other hand, if someone wishes to buy any amount less than 20, then the retailer will simply cut off the required number of tablets from the strip inside the Rapple and sell on per piece basis. In this case, however, the customer will not get the apple; rather, it will be the retailer who gets to keep it to accommodate the remaining number of tablets inside the apple unsold.

Justification Package is easy to manufacture, or subcontract to suppliers, and cost of production is not high. No need for tertiary packaging, saving costs. The apple package looks creative and is interesting, which will grab peoples attention, when displayed on the shelf at pharmacies. The target market is the top of the pyramid. These people can afford to buy the entire apple with 20 tablets all at once, and hence has the derived mentality to store at home in case of emergency such as sudden pain. So, the apple will sell. Will serve as alternative storage container for various small items and a toy for children after the tablets are used. People in our country usually do not consult doctors when they suffer from minor pain that they know of and buy painkillers themselves, sometimes with suggestions from the pharmacist. In such a scenario, the apple will market itself with it differentiation from all other packaging of competing pain killers. Other justifications are explained in Planet section of the report.

Place

Placement (or distribution)refers to how the product gets to the customer; for example, point-of-sale placement or retailing. It consists of the channel by which a product or service is sold, in which geographic region or industry, to which segment of the population etc., and also referring to how the environment in which the product is sold in can affect sales.

The normal distribution channel of pharmaceutical products in Bangladesh is given below:

The distribution process of NM Pharma will be:

The medicine manufactured in the factory in Gazipur will be housed in the central warehouse in the same district. From there, it will be distributed to the depots in the seven divisional cities of the country, and subsequently supplied to the local drug stores.NM Pharma has direct distribution system; we do not use any wholesaler or middleman in our distribution system. The distribution system includes three channel members:

1. Distribution Department2. Sales representative3. Drug storeThe sales representatives collect information about the requirements of the drug store and inform the distribution department of NM Pharma. After analyzing the information collected, the distribution department decides and sends goods to the depot, and from the depot the goods are sent to the drugstores which are at the end of the distribution system.The distribution system of NM Pharma is shown graphically below.

Key Points of Distribution

1. Medicine are stored as per requirement considering temperature/sunlight, moisture etc.2. Delivery schedules are developed and prepared in consultation with the sales force.3. Execution of order (invoicing) is done in time.4. Issue of goods in line with FIFO5. Packing of the stocks is done meticulously.6. Physical delivery is arranged as per schedule.7. Collection and deposition of sales proceeds are made through bank, increasing transparency.8. Vigilance towards market demand for managing the right product at the right time.9. Cash and stock balance are checked on regular basis.10. Restrict entrance to the premise.11. Sales order is always signed.12. Daily sales performance should be notified to national sales manager through ERP (Enterprise Resource Planning) software.13. Controlling office expense.14. Temperature recording of the warehouse is done regularly.15. Drug license, trade license and fire license are always in order and up to date.

Process

Process brings a service dimension to the entire value chain. Since our selling proposition is our intangible quality of providing care, it is important that we achieve this through diverse ways. One of our proposed methods is through the training of people and employing them to perform primary treatment and then sale of the pain killer in old age homes, and set up booths in parks along its walkways, etc. where individuals often face headaches or various kinds of pain, making it a necessity to have large supplies of the required drug at hand. This will result in extensive marketing eventually as people will come to know of this unique process of providing service. This again highlights NM Pharmas target of providing care in the form of medicine. This will bring a promotion dimension as well to the process we are using.

People

The people who are trained on how to market our product to physicians, pharmacists etc. are an integral part of providing comprehensive service. The information that these employees of NM Pharma impart and their interactions with potential customers dictate how the service is perceived and valued. Since our orientation is towards care, our personnel will be specifically trained to talk about the benefits of Raproxain which may be required at any time.

Physical Evidence

Even though the care received from consumption of our pain killer in intangible, the apple shaped package is visible and tangible. Not only is it visible in stores, but also can also be brought home. This will serve as evidence in ones surroundings that he or she is comfortable and relaxed in, increasing the chances of greater acceptance and satisfaction with our product, because the guarantee of relief from pain and consequent positive result will facilitate that. Parents watching their child play with an empty apple will not be out of sight of Raproxain for long.

Planet

Planet refers to the societal dimension of marketing. It calls for the production methods used in the manufacturing process to be eco-friendly and resource-efficient. We will be focusing on the 3 Rs Reduce, Reuse and Recycle.Our package is made of recyclable material. Alternative use of the apple has already been discussed, and we have come with a strategy to encourage the stakeholders customers and retailers - to reduce and reuse.

PharmacyNot everyone who will buy Raproxain will be buying the apple if they choose to buy any less than 20 tablets. So the pharmacy or licensed dealer will experience a growing number of unsold apples that they cannot dispose profitably.So, NM Pharma will give one free apple with 20 tablets for every 10 empty apples that the vendor returns to us. This will be a win-win situation, because the pharmacy will be able to increase its profits by large, as the tablets will be sold at market price that was actually free of cost for the retailer. On the other hand, we will be able to collect the unsold apples for reuse, thereby lowering material cost and reducing the demand for non-biodegradable plastic containers.

CustomerOur customers will get 10% discount on the purchase of one new 20 tablet apple pack for every empty apple container that he or she will return to the retailer. So, for example, if a person returns three empty apples to buy one new apple, the price will be 30% lower. The implication of this strategy is massive, because this is a win-win-win scenario: Customer gets discount Retailer collects empty apple packages which he or she will return to the company to get free tablets, the revenue from sale of which will be entirely profit. We get back empty packages for reuse.

Conclusion

We have strategized 360 degree marketing to ensure sales, and hence make a successful product launch with strong forecasts of increasing our market share. Considering the humane industry we are operating in, we have the scope of expanding our business further, and at the same time, contribute towards the betterment of the society.NM Pharmaceuticals is here because it cares.

THE END

Documents

Final Bio Report- Raproxain (r)