M
ARKETING
M
ANAGEMENT
FOR
THE
LAUNCH
OF
“OSAMAX ”
Current market situation
Nepalese Pharmaceutical market and its marketing practices is complex to understand. With no such specific guidelines and policies from its regulatory body DDA, Nepalese pharmaceuticals feel the gap for visionary support from government. Though the country is self reliant in various categories the chunk of market share is still being enjoyed by foreign and Indian companies due to the lack of specific guidelines. Nepal pharmaceutical Laboratory is going to introduce its new product in the market where its competitors already exists. Osamax competing brands are :
RESTOFOS – Sun Pharmaceuticals – Indian company
OSTEOFOS – Cipla Pharmaceuticals – Indian company
FOSSIL – Magnus Pharmaceuticals – Nepali company
Since it is difficult to adopt differentiation strategy in pharmaceutical products in terms of product and its features, NPL has to work on other aspects to add value to the product and gain competitive advantage over competitors’ product.
Market description
Currently total market size of pharmaceutical product is 12 billion and the share of Nepali companies in the market is 35 % with 45 manufactures operating and (5– 18) in the pipeline. With an annual growth rate of 19 %, this sector is one of the fastest growing industries. This sector is contributing around 12 billion to nation’s economy of which domestic industry accounts for approximately 4 billion. This sector has become strong and stable in various aspects .
59% 32%
9%
Share of Drug Consumption Through Import and Domestic industries
Import Domestic Govt, NGOs , INGOs
Quantification of drug, RDL/DDA
Total consumption and annual increment of allopathic drugs
Year Drug consumption % Growth
1999/2000 5907.00 25 %
2000/2005 10659.00 32 %
Quantification of drug, RDL/DDA
From the data 2000 to 2005:
The drug consumption has been increased by 80 %
The domestic industries share has been increased by 25 %
Pharma industries have been a powerful and dynamic industry in past 10 years growing when other industries have taken down turns. From the market trend of past few years we can see that market share of domestic industries is increasing in terms of sale and replacing Indian and some Multinational Companies (MNCs). This reflects a wide scope of growth and development of the local pharmaceutical industry in Nepal.
NPL is second largest Pharmaceutical Company of Nepal comparing its annual turnover. It governs the 12% of the total domestic pharmaceutical market with the total annual turnover of 500 million rupees. It is growing with the approximate rate of 20 % annually.
Annual growth rate of company
062/063 063/064 064/065 065/066 066/067 067/068
0 5 10 15 20 25 30 35
23
20
10
18
25
30
Annual growth of company
Company profile:
NPL is a pharmaceutical company which was registered in department of industry His Majesty’s Government (HMG) on 27th Jestha 2042 and had started its operation from 28th Poush 2043. Its
plant is located in Jeetpur, Birgunj and it has its marketing office in Pulchowk, Kathmandu.
Due to its significant achievement in work system and standardization NPL is the only domestic pharmaceutical company that has been awarded with “FNCCI National excellence award for three consecutive years since 2059 to 2062 and recently been awarded with FNCCI Service excellence award in the year 2067. NPL has also been honored with NICCI excellence award 2003 by Nepalese chamber of commerce and industry.
Technological advancement: NPL is the first company to collaborate with academia for the development of research activities in NPL, NPL has collaborated with Kathmandu University school of science for conducting bioavailability and bioequivalence testing of medicine testing of medicine, NPL has also expanded its QC plant with the name of Nepal Research Foundation in the year 2066 basically for the development of novel drug delivery system and research activities.
NPL holds the pioneer ship to manufacture cardiovascular, psychotropic, anti-diabetic products in Nepal .It is also the first company to manufacture veterinary medicines. There are different divisions within the company.
Divisions of NPL
Division I Deals with high value
molecules Molecules that requires doctor prescriptions Division II Primary care products Me too ( push strategy )
Lapen DIV Sophisticated molecule Cardiovascular, diabetic, psychotropic
Vet DIV Veterinary products Vet
Future plans:
Corporate social responsibilities & collaboration
Therapeutic Categories Dosage forms
Anti – allergic Tablets
Anti – diabetic Dispersible tablets
Anti – infective Capsules
Cardio vascular Dry syrup
Dermatological Syrups
Gastrointestinal Suspensions
Gynecological Modified Release
Hematinic Pediatric drops
Musculoskeletal Cream
Nutritional supplement Ointments
Psychotropic Gels
Respiratory Vitamins
Dental Products
NPL has been discharging its corporate social responsibilities within its capacity by helping in various health camps being organized. It has its quarterly publication with the name of “The Himalayan Health”(THT) and Sangrila Janaswasthya(SJS) and distributes throughout the health post and chemist outlets to disseminate health related information to general public through which it also handle public queries regarding disease and the treatment.
Company Vision and Mission :
NPL is a Brand leader in following listed drugs :
1. Amlold – cardiovascular
2. CTZ – anti allergic
3. Brucet –analagesic and antipyretic
4. Vital – Vitamin supplement
5. Formin – diabetic Range
Product review
OSAMAX (Alendronate Sodium) is a Biphosphonate drug used for osteoporosis and various other bone resorptions. Biphosphonate bind to the hydroxyapatite found in bone that acts as a specific inhibitor of osteoclast mediated bone resorption.
Composition
Each uncoated tablet contains:
Sodium Alendronate BP equivalent to Alendronic Acid 70mg
Osteoporosis: Osteoporosis is a condition characterized by a decrease in the density of bone, decreasing its strength and resulting in fragile bones. Osteoporosis literally leads to abnormally porous bone that is compressible, like a sponge. This disorder of the skeleton weakens the bone and results in frequent fractures (breaks) in the bones.
Bones that are affected by osteoporosis can break (fracture) with relatively minor injury that normally would not cause a bone to fracture. The fracture can be either in the form of cracking (as in a hip fracture) or collapsing (as in a compression fracture of the vertebrae of the spine). The spine, hips, ribs, and wrists are common areas of bone fractures from osteoporosis although osteoporosis-related fractures can occur in almost any skeletal bone.
Throughout adulthood living bone renews itself by breaking down old bone and replacing it with new. Osteoclasts resorb portions of old bone and osteoblasts follow to form an organic matrix of minerals that become new bone. Of course, there are many other chemical changes required to sustain this cycle (e.g. hormones).
Osteoporosis occurs when the balance of the cycle is upset causing bone to break down faster than it can be replaced by new bone. Over time, this can seriously affect the structural integrity of bone.
Indication and Dosage Regimen
OSTEOPOROSIS GLUCOCORTICOID INDUCED
OSTEOPOROSIS
Postmenopausal women ( adults )
Men ( adults ) PO 35 mg once weekly
menopausal women not receving estrogen )
Treatment Preventio n
PO 10 mg once daily
PO 70 mg weekly
PO 35 mg weekly
Mode of
administration
Onset of action Peak action Duration
Oral
1 months 3- 6 months 4 weeks – 6 months
Clinical data
Treatment of osteoporosis with Sodium Alendronate has demonstrated normalization of the rate of bone turnover, significance increase in BMD (Bone mineral Density) of the spine, hip Wrist and total body and significant reduction in the risk of vertebral (Spine Fractures), wrist fractures and all the non vertebral fractures. In the women with higher risk of fractures treatment with Sodium Alendronate resulted in approximately 50 % reduction in the spine, hip and wrist compared with the control group taking placebos plus calcium and vitamin D.
Osamax is an anti-osteoporotic drug given for the treatment of osteoporosis.
Competitive Review:
The major competitors for Osamax are the existing brand of Sodium Alendronate
Product name Company MRP /Strip Packaging
Osteofos Cipla 180 4’s * 10
Restofos Sun 258 10’s*10
Fossil Magnus 158 4’s * 10
Our Product
Strength MRP /Strip Packaging
OSAMAX 70 mg 192 4’s * 6
Major activities of the competitors
Brand name Major Promotional activities
RESTOFOS Indication : For the treatment of osteoporosis
Personnel need fulfillment by the company to develop rapport with the customers.
Covers the major hospitals and quantified service is on specific department of hospital.
Sponsor in different seminars, stall placement at seminars.
Trust of prescriber on MNC brand, R & D investment high for Quality
Strong at cardiovascular products.
Trust of the prescribers on multinational brand.
Latest research on the product research is also provided.
Reimbursement of travel expenses, hotel stay of doctors free samples.
Sponsor in different Continuous Medical Education (CMEs), seminars, stall placement at seminars.
Frequency of Sales After Service (SAS) is very high among Indian companies.
FOSSIL They have a very few brand to focus. (Unique product in their product basket which the other company doesn’t have.
New company aggressive marketing.
Product wise customer focus.
Product positioning and placement:
RESTOFOS and OSTEOFOS being the multinational brand, its main positioning is in the mind of the customers as a quality product. Restofos and Osteofos take major sales from the consultant doctors who have greater number of patients.
Fossil being first national product from the newly introduced company spend usually on specific product promotion since they have few product to focus on.
Distribution patterns & traditional channels
Factory Corporate office
Headquarter
Distributors Headquarter Distributors Headquarter Distributors Headquarter Distributors
[image:11.612.38.599.78.362.2]Retailers Retailers Retailers Retailers Retailers Retailers Retailers Retailers
Fig : 01
Strength, Weakness, Opportunities and Threat Analysis
Objectives and Issues
Our key marketing objectives lie on setting achievable goals focused on sales volume, market penetration and number of loyal customers.
Objectives and Issues:
For any brand to meet a sales target, the first thing that needs to be achieved is loyal customer base. NPL’s first year target is to have 5 to 8 loyal customers by year end who exclusively prescribes the product. By loyal customers that means renowned doctors in the field of Ortho, Gynaecology and General Physicians.
Market Penetration Target: During the first year NPL should have set the target to make the Brand available in 9 major cities; Kathmandu, Birgunj, Narayangardh, Janakpur, Butwal, Dharan, Biratnagar, Pokhara and Nepalgunj.
Sales Target: NPL’s sales target for the first year is a sales of 5000 boxes. Each box cost 1100. So the total sales target is NRs 5500000.
Second Year Objectives:
Second year objectives have not been set discretely. It would be planned on the basis of targets achieve during the first year and feedbacks during that time range. NPL’s main focuses for the second year are as follows.
1. Increase the sales revenue by 20% 2. Educate second level customers. 3. Increase loyal customers by 30%.
Issues:
MARKETING STRATEGY:
Positioning:
The punch line of Osamax is “Osamax today for healthy bone tomorrow” and it is targeted to few selected qualified customers (cream doctors): physician, gynecologist and orthopedics of the territory whose prescription can change the sales scenario. The product will be promoted as the only effective treatment for osteoporosis in men and menopause women. The brand name is somewhat similar to the brand name of the research brand which would be easy to remind to the target customers. The product will also be promoted on the basis of its unique packaging that provides patient with exact dose of 6 months and first brand with patient leaflet information in Nepali that would be highlighted in our product card.
Product strategy:
OSAMAX is the product used for the treatment of osteoporosis, but OSAMAX not only provides remedy for the treatment of osteoporosis, it will help patient to gain Bone mass and improve quality of life to patients. Besides they will have the benefit of unique packaging that will provide them with exact dose of 6 months with complete information leaflet in Nepali / English which will guide them through the dosage regimen of Medicine and precaution they should adopt while taking this medicine. The company has also decided to provide direct patient service to the patient like patient counseling and dose reminder to the patient taking this medicine since the medicine possess some side effects which might harm and cause secondary disease to the patient , the company will also have regular BMD testing to the patient so as to assure that they are gaining bone and are not prone to osteoporotic fractures .
Packaging: 6’s X 10, exact dose for 6 months
Improved Quality of lifeof pateints
Patient information leaflet in Nepali
Actual Product
Quality Product
Packaging 4’s X 10 Dosage Regimen scheduling
Augmented Product
FREE BMD measurement
Direct Patient service at
Price / quality strategy:
OSAMAX is the second national brand of sodium alendronate. Though there are three existing competitors, I have used a price skimming technology. I have tried to maintain price as that of competitors since the target customers are not price conscious. Price also has a least impact on the sales of Pharmaceutical products as no customer demands for it and customer prescribes on the basis of quality, services and availability. As a company policy its doesn’t want to enter in the unethical competition of lower quality, low price and high bonus. The current price is enough to cover production costs, marketing costs and generate calculated profit margin.
Distribution plan:
Nepalgunj will have less target since the doctors over there do not readily prescribe new product .
NPL will follow the regular distribution channels from its core distributors to the retailers for the availability and its sales representatives will make sure that each retail counter will have the product OSAMAX before launching so as to avoid prescription bounce.
Marketing communication strategy:
Personal selling: Pharmaceutical companies’ major tool of promotion is personnel selling. NPL will have its Sales representatives who will detail its product in front of core customers and convince them to prescribe our product. The communication will be enhanced by enhancing the personal selling for these following measures
Personal selling is based on the detailing ability hence to enhance it detailing, training will be conducted on quarterly basis or as per the need and MR with the best detailing ability will be awarded annually for motivation.
To increase the product knowledge and skills of the personal selling, various trainings will be organized quarterly for FMs and MRs.
The out sourcing of the resource person will be done at least once a year and for the international exposure on the salesmanship, certain selected representatives will send for the abroad training.
MR of the month and start of the year will be selected and awarded.
Providing lucrative incentives to motivate them.
Advertising:
As direct advertisement are not allowed due to government legislations indirect promotions can be done with the help of informative visual aids .
Visual Display: The Medical Representatives’ Visual Aid will be more communicative highlighting only specific information. Flex, boards, Leave behind Cards (LBCs),table tob design will be prepared highlighting the sign and symptoms of Osteoporosis, its causes and preventive measures. The board will be filled with contents and information of preventive measures as well.
Buzz marketing: Through key opinion leader, bang on market will be created by arranging conference for the doctors from ortho department and making influential leader among them to speak on molecule and its advantages.
Communication through SJS and Himalayan health informative journals which will highlight the use and efficacy of OSAMAX and these journals are distributed through its distribution network in different parts of the country.
Direct Patient Service: To help our customers in patients front, NPL will have a system of direct patient service from the company itself to educate customers regarding drug and its uses since doctors usually don’t have enough time for patient counseling. It will be an added service to doctors as well as patients.
Organizing health camps and measuring Bone Mineral Density (BMD) through BMD Machine which helps to identify patient suffering from Osteoporosis or those prone to osteoporosis.
Marketing Research:
In NPL Market planning department is responsible for conducting market research. Market Planning Department is the important wing considered as a Central Nervous System which conducts research and develops action plan for existing and new products. It consists of Pharmacist and few people from sales force. Since NPL is going to introduce product as per the market feedback, the introduction of Sodium Alendronate (OSAMAX) in product basket is totally based on market feedback.
OSAMAX is not a OTC (over the counter drug) which the patient buys with their own knowledge as in case on any other general drug, so the burying behavior is solely dependent on doctor’s prescription I have conducted research on retailer level and doctor level.
The research for market analysis and feasibility study of Sodium Alendronate was conducted as listed below:
There are two major research tasks I tried to accomplish.
2. Analyze the popularity of the molecule among various doctors: As discussed previously, the molecule is new to the market. Not all doctors know about its usage yet. I found that only top doctors seem to be using this molecule. The molecule can be prescribed by Ortho, Gynecologists and General Physicians. Our plan is to understand the following
a. Current situation of popularity of this molecule among these therapeutic categories.
b. Names of the doctors who have been prescribing this molecule and their preferred brands.
With this information, NPL can exactly know the doctors whom it can target to prescribe it’s brand. Also NPL can know the doctors whom It can educate on this molecule.
Survey Results:
For research purpose, 55 chemists were selected. Among these, 42 of the chemist were having at least two of each brand. FOSSIL, existing national brand, was found in all of them. It means that FOSSIL has been able to generate prescription from their target customers. This led to a conclusion that most of the consultant Orthopedicians has been prescribing FOSSIL.
However it was found that Magnus didn’t focused on gynecologist and physician for FOSSIL which is an advantage for us.
RESTOFOS and OSTEOFOS have not adopted any specific promotional activities for the particular brand, since they are much more focused on other therapeutic categories.
Doctors from these therapeutic categories (Orthopedicians, Gynae, physicians) were shortlisted as per the feedback from the Medical Representatives.
Information on sales/month of each brand in boxes was also obtained from the market survey including their price and information on packaging.
A lot of doctors were found to be unaware of this molecule as it is very new therapy.
Product name Company MRP /strip Packaging Average Sales per month in Kathmandu
OSTEOFOS Cipla 180 4’s * 10 180 boxes
RESTOFOS Sun 258 10’s * 10 162 boxes
Marketing Organization
It’s a marketing team responsible for all the marketing activities and promotion plan of OSAMAX
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Action Plan:
The plan begins with choice of target market and suitable marketing strategy to reach them. By the four Ps mentioned above, I have set the position, price, place (distribution locations) and promotion (communication). Discretely following are our action plans.
NPL’s new product OSAMAX is comparatively an expensive medicine and is sold on prescription only. So NPL should have to go with super core doctors as our target. Since medical products are not allowed to use broadcast media or print media, direct marketing approach and personal communication approach is best way to reach out target.
The plan is to make a list of super core doctors from inside and outside of valley. Then NPL’s product team will approach them with it’s upcoming products and try to convince them to become opinion leaders. NPL’s Product Executives (PEs) will be involved in providing detailed product demonstration to these super core doctors. Out of the core doctors, NPL plan to select 5 to 8 doctors as opinion leaders per MR.
Once cultivation of opinion leaders is achieved then they are entitled to prescribe NPL’s product to their patients and affiliated pharmaceutical stores. Initial sample will be combined with brand reminders like heaters with products name and may be complimentary pens and notepads. MRs will have to pay regular visits and update the status.
Plans to organize medical conferences and exhibits.
Actions 1 2 3 4 5 6 7 8 9 10 11 12
Conference Launching gift
Brochures
Flex , Boards BMD for
camps
Samples
Incentive
Action Plan Calendar
Details of promotional plan and visit plan for the first year to meet objective
- Bang on the market through conference and promotion through key opinion leader. NPL plan to hold two conferences by two key orthopedists in Kathmandu. These conferences would be focused on molecule and therapy education.
- Visit with a team including APM, PE, SM, and FM on the day of launching with a launching gift to select super core doctors.
- Visit will be repeated by the concerned MR, at least 3 visits in a month to reinforce the brand and to review prescription status
- Brochures would be given for distribution in Medical organizations involving target doctors.
- Leave behind cards (LBC), economical gifts will be provided with the brand name encoded for brand reminder.
- Free samples would be provided to the selected doctors.
- Flex and boards would be distributed to retailers and distributors. Also, these would be used during conferences and health camps.
- BMD (Bone Mineral Density) machine is a key device for diagnosing Osteoporosis. However, this device is very rare in Nepal. So, NPL team will buy this device and provide the device and a team of experts during various camps organized by selected doctors. NPL will plan to organize/participate in at least four camps.
- Lucrative incentives would be provided to MRs based on their sales targets.
Budget
Budget allocation for advertising is based on our media plan,
New product quantity rate 1 2 3 4 5 6 7 8 9 10 11 12
Conference 150000
Launching
gift 128 96000
Brochures 1500 67500
Flex , Boards 600
BMD 1200000
Samples 6372 1223424
Incentive 213693.2
Total Budget: 2951217 Sales target 5000 5500000
Total Media expense: 53.7% of Sales Target
BMD machine , samples , incentives and target . The total budget allocated for total promotional activities is 53.7% of total sales target for the whole year.
CONTROL MEASURES
NPL is bringing new product into an existing market so it should have plan of using product development strategy. PDCA model can be implemented to achieve control over the
implemented marketing strategies.
The PDCA model consists of four different activities carried out in sequential order
- Plan
- Do
- Check and
- Act
Plan
The plan begins with choice of target market and suitable marketing strategy to reach them. NPL will follow our plan as mentioned in Action Plan.
To sum up, key plans should be as follows:
- Selection of 5 to 8 core doctors as opinion leader.
- molecule demonstration through key opinion leader to create bang on the market
- Launching visits with team ( APM,PE,SM,FM)
- Repeat visit by MR to reinforce the Brand
- Inputs for brand Reminder ( Promotional Gift items, leave behind cards , Posters , pen and pads )
- Free Samples
- Organizing Health camps with BMD machines
Do:
The above plan is put into implementation. Careful choice of super core doctors are made and approached in a very professional manner by the product team. Product demonstration is given and when they agree to become opinion leaders, supplementary items are provided. Regular medical conferences are held as our product as official sponsor. This will create a buzz and help in product promotion very strongly.
Check:
The most important part of check procedure is preplanned regular visits. Every MR will have separate list of doctor from inside and outside of valley which they have to visit a number of times in a given time interval. The main purpose of visits will be the status collection through a number of data sheets. The collected status will be submitted on time to the management for reviewing purpose. By status, I mean the following
1. EP: exclusive prescriber (who provides only our product of that molecule considering volume business)
2. MP: mixed prescriber (who provides our product with one or two other companies of the particular molecule, considering volume business)
3. OP: occasional prescriber (who prescribes our product very rarely) 4. NP: non prescriber
Seniors managers will also visit the top listed doctors for personal marketing.
The collected status will be the main agenda in every meeting. Respective people will be held responsible for success or failure of the product in their predestined area.
Sales analysis will also be carried out and reviewed regularly. (ANNEXURE, 06)
Action:
Rules to be followed for successful control
- Work book must be timely filled and brought to every meeting. (Mentioned in Annex)
- A photocopy should also be brought for use of FM, PE, and SM
- Improper filling will be asked for full justification
- Incentive programs will be there for motivation and better performance.
