Term Paper of Beximco Pharmaceuticals LT PDF

Term paper on
BaximcoPharcuetical Limited
Submitted to
Professor Dr. M. Mahmodul Hasan
School of Business
MBA Program
Submitted by:
Golaper Kata
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© 2014Bexcimco. All right reserved Version: 1.1

Date: 04/25/15
LETTER OF TRANSMITTAL
Date: 25thapril, 2015
Prof. Dr. M. Mahmodul Hasan

Lecturer,
School of Business, MBA Program
North South University.
Subject: Submission of the report on “BaximcoPharcuetical Limited”
Dear Sir,
We take great pleasure in submitting the term paper on ―Term Paper on
BaximcoPharcuetical Limited‖; which was approved by you for the course Marketing
Management (BUS 620).
This report is very much relevant to what we have learnt in this course. It truly reveals the
real essence of marketing and will certainly help us understand the course better.
We have tried to make this report as comprehensive as possible within the given time and
we would feel gratified if our paper serves its purposes. Therefore, we would be obliged if
you could please accept this report.
Sincerely yours,
Group Members: Golaper Kata
Name ID Signature
Baly yasmin 1321056060
Molla Ashiqul haq 1230131660
Shahriar Rohmotullah 1310380660
Md. Ahasan Habib 1430772660
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© 2015Bexcimco. All right reserved

ACKNOWLEDGEMENT
(All praises belongs to Almighty Allah, the most beneficent, more merciful)
We would like to take this opportunity to express our profound gratitude and deep regard
to our honorable course instructor, Professor Dr. M. Mahmodul Hasan, for his exemplary
guidance, valuable feedback and constant encouragement throughout the duration of the
project. His valuable suggestions were of immense help throughout our project work. His
perceptive criticism kept us working to make this project in a much better way. Working
under him was an extremely knowledgeable experience for us.
Next we would like to thank Shariful Islam, Asst. manager, HRM at Beximco
pharmaceuticals Ltd for his continued support with all the necessary information required
for the completion of this report.
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EXECUTIVE SUMMARY
Beximco Pharmaceuticals Ltd is a leading manufacturer of medicines and active

pharmaceutical ingredients (APIs) based in Bangladesh. Incorporated in the late 70s,
Beximco Pharmacy began as a distributor, importing products from global MNCs like
Bayer, Germany and Upjohn, USA and selling them in the local market, which were later
manufactured and distributed under licensing arrangement. macy) is a leading
manufacturer of medicines and active pharmaceutical ingredients (APIs) based in
Bangladesh. Incorporated in the late 70s, Beximco Pharmacy began as a distributor,
importing products from global MNCs like Bayer, Germany and Upjohn, USA and selling
them in the local market, which were later manufactured and distributed under licensing
arrangement.
In Chapter One, We have discussed about the definition of Marketing Management

(Theory 2000 – 2010 & Theory 2011 – 2015) and how it relates with Beximco
Pharmaceuticals Marketing Management. We have also mentioned the mission, vision and
corporate strategy of the company.
In Second Chapter, we have gone through a SWOT and PESTEL Analysis of Beximco
Pharmaceuticals. We have also identified Michael Porter‘s Five Forces of Beximco
Pharmaceuticals.
In Third Chapter we have focused on the Marketing Strategy & Core Marketing Concept
and Market Segmentation of Beximco Pharmaceuticals and we have also discussed about
Marketing Mix (7P and 4C) of the company. The fourth chapter focuses on Value Chain
Model, Total Quality Management (TQM), Loyalty, Quality and Control of Rossini. The
fifth chapter discusses about Brand & Branding. We have conducted the Box Analysis of
Brand Elements (6 Categories) and the Brand Dynamic Pyramid of Beximco
Pharmaceuticals.
The sixth chapter focuses on The Five M‘s of Advertising and Mass Communication of
Beximco Pharmaceuticals we have discussed about the Marketing Budget & Expenditure,
Pricing Strategies and Breakeven Analysis with Chart/Graph in seventh chapter of this
report. We have concluded our report after giving a suitable and reasonable
recommendation to the assigned company.
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Table of Contents
Page
Topic
No.
CHAPTER ONE
Introduction 1
Defining Marketing Management (Theory 2000 – 2010 & Theory 2
2011 – 2015)
Beximco Pharmaceuticals Marketing Management 2
Mission 3
Vision 3
Business Plan and Corporate Strategy 3
CHAPTER TWO
SWOT Analysis 4
PESTEL Analysis 5
Michael Porter’s Five Forces 6
CHAPTER THREE
Marketing Strategy & Core Marketing Concept 7-9
Market Segmentation 10
Marketing Mix (7P) and (4C) 11-12
CHAPTER FOUR
Value Chain Model 13-14
Total Quality Management (TQM) 15-16
Loyalty, Quality and Control 16
CHAPTER FIVE
Brand & Branding 17
Box Analysis of Brand Elements (6 Categories) 17-18
Brand Dynamic Pyramid 19-20
CHAPTER SIX
The Five M‘s of Advertising 21-22
Mass Communication 23
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a) Advertising Budget & Campaign Cost 23
b) Sales Promotion & Budget 23
c) Events & Experiences/Sponsors 24-25
d) Public Relation/Government Lobbying 25
e) Corporate Social Responsibility
CHAPTER SEVEN
Marketing Budget & Expenditure 26
Pricing Strategies 27-28
Breakeven Analysis with Chart/Graph 29-31
Conclusions 32
Recommendations 33
References 34
Appendix 35
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Chapter One
Introduction
Beximco Pharmaceuticals Ltd. (Beximco Pharmacy) is a leading manufacturer of

medicines and active pharmaceutical ingredients (APIs) based in Bangladesh.
Incorporated in the late 70s, Beximco Pharmacy began as a distributor, importing
products from global MNCs like Bayer, Germany and Upjohn, USA and selling them in the
local market, which were later manufactured and distributed under licensing arrangement.
Over the years the company has grown from strength to strength and today it has become a
leading exporter of medicines in the country winning National Export (Gold) Trophy a
record four times. Benchmarked to global standards, Company‘s manufacturing facilities
have been accredited by the major global regulatory authorities, and it has so far expanded
its geographic footprint across all the continents.
Beximco Pharmacy currently has a portfolio of more than 500 products encompassing all
major therapeutic categories, and it has successfully differentiated itself by offering
technology driven specialized products. With a dedicated workforce of around 3,000
people, the simple principle on which it was founded remains the same: producing high-
quality generic drugs and making them affordable to our people.
With decades of contract manufacturing experience with global MNCs, skilled manpower
and proven formulation capabilities, the company has been building a visible and growing
presence across the continents offering high quality generics at the most affordable cost.
Ensuring access to quality medicines is the powerful aspiration that motivates more than
2,700 employees of the organization, and each of them is guided by the same moral and
social responsibilities the company values most
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The two definition of Marketing Management are:
Definition of Marketing Management (Theory 2000 – 2011)
Marketingmanagement is the art and science of choosing target markets and

getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value.
Definition of Marketing Management (Theory 2012 – 2016 ±)
Marketing management depends on the size of the business and the industry in which the
business operates. Effective marketing management will use a company's resources to
increase its customer base, improvecustomeropinions of the company's products and
services, and increase the company's perceived value .
BeximcoPharmacy has created the art and science to choosing its target markets and
getting, keeping, and growing its customers through creating, delivering, and
communicating superior customer value and effectively managing its resources to increase
customer base and increase customer opinions/satisfaction, product & services and
company‘s perceived value.
BeximcoPharma‘s core values define who they are; guide it to take decisions andhelp
realize its individual and corporate aspirations, commitment to quality. It adopts industry
best practices in all its operations to ensure highestquality standards of our
products.BeximcoPharmacy committed to satisfying the needs of its customers, both
internal and external.It gives high priority on building capabilities of its employees and
empowers them to realize their full potential.
Mission:
BeximcoPharmacy committed to enhancing human health and well-being by providing

contemporary and affordable medicines, manufactured in full compliance with global
quality standards. They continually strive to improve their core capabilities to address the
unmet medical needs of the patients and to deliver outstanding results for our
shareholders.
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Vision:
Beximco‘s vision will be one of the most trusted, admired and successful pharmaceutical
companies in the region with a focus on strengthening research and development
capabilities, creating partnerships and building presence across the globe.
Business Plan
They continually strive to improve their core capabilities to address the unmet medical
needs of the patients and to deliver outstanding results for their shareholders.
Corporate Strategy
Their main strategy of Beximcopharmacy is to ensure highest quality standards of their
products. It encourages transparency in everything it does and strictly adheres to the
highest ethical standards. They are accountable for their own actions and responsible for
sustaining corporate reputation.
BeximcoPharma actively taking part in initiatives that benefit our society and contribute
to the welfare of our people. It takes great care in managing its operations with high
concern for safety and environment.
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CHAPTER TWO
SWOT ANALYSIS FOR BEXIMCO PHARMA
Strength: Weakness:
1. Patent of Beximco pharmacy. 1. Managing people/staff effectively is a key
2. Beximco pharmacy is successful to challenge for Beximcopharmacy
establish its brand strongly 2. High cost structure
3. Beximco pharmacy have a very good
reputation among customers with its
superior quality
4. Strong distribution channel
5. High tech manufacturing facilities
6. Global footprints
Opportunities Threats
1. There is scope to more product 1. Emergence of new competitors in the
extension based on R&D market
2. Arrival of new technologies for the 2. Increased trade barriers in its global
manufacturing process footprints
3. Removal of international trade fairs
Loosening of regulations
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PESTEL ANALYSIS OF BEXIMCO PHARMA
Political Economical
1. Political instability of 1. Economic growth of
Bangladesh Bangladesh
2. Bangladesh Government 2. Inflation rate of Bangladesh
Environmental Regulations 3. Interest rates
3. Labor Law of Bangladesh
4. TAX policy of Bangladesh
Social/Socio-Cultural Technological
1. Health Consciousness of people 1. R&D activity of Beximco

2. Population growth rate of 2. Automation in Manufacturing
Bangladesh 3. Fast change in technology
3. Career attitudes
Ecological/Environmental Legal
1. Climate Change of Bangladesh 1. Labor Law 2006 & 2013

2. Inconsistent Weather amendments
2. Company Law
3. Taxation Law
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Michael Porter’s Five Forces for BeximcoPharma
Supplier Power
 Supplier concentration
is high for
BeximcoPharma
 Switching cost is not so
high for
BeximcoPharma
Threat of new entrants Threat of substitutes
Threat of new entrants is  Buyer indignation to

moderate because of substitutes is not
 Different that high in the
complicated Pharmaceutical
compliances from industry
Bangladesh RIVALRY
 Price performance is
Government low in the Pharma
 Access to inputs industry
 Economies of
scale is very high
 Capital
Requirements is
very high for new
entrants
Buyer Power Degree of Rivalry
 Buyer power is  Fixed cost is high in

moderate in the this pharmaceutical
pharmaceutical industry because of
industry mass manufacturing
 Bargaining leverage is unit
low in this industry  Industry growth is
 Buyer volume is very high in recent times
high in the  Switching cost is
pharmaceutical very high for the
industry players already in
 Brand Identity of the pharmaceutical
BeximcoPharma plays industries
a big role in buyer
power
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CHAPTER THREE
Marketing Strategy
To identify the Marketing Strategies of BeximcoPharmacylet‘s use the below marketing

concepts:
We can find the strategies of firms by the roles they play in the target market:
 Leader
 Challenger
 Follower
 Nicher
Company focused Competition focused
Pushes the boundaries Leader Challenger:

BeximcoPharma
Stays within boundaries Niche Follower
Where Square Pharma is leading the industry in terms of market share there is
BeximcoPharma who is lying in the Market Challenger position in terms of market share.
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Strategic Groups for BeximcoPharma
Why Beximco Pharma Falls under

Group D?
Beximco Pharma uses a broad line in

its manufacturing process with
medium cost and low service since it is
mostly focused on the quality of the
product and offer in lower prices.
In the strategic group they Beximco Pharmacy fall under Group D which is Broad line,
medium manufacturing cost, low service, and low price.
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COMPANY ORIENTATIONS TOWARD THE MARKETPLACE FOR BEXIMCO
PHARMA
From the mission, vision, business plan and corporate strategy of Beximcopharmacy we
can easily say the Beximcopharmacy focuses on Product concept since Beximcopharmacy
focuses on offering the most quality.
1. Target Markets, Positioning, and Segmentation: BeximcoPharma‘s target

segments for different production are well defined, each product are well positioned
and segmentation done on well planned manner
2. Offerings and Brands: Beximcopharmacy offer differenced products to its

customers
3. Value and Satisfaction: The products are successful because it delivers value and
satisfaction to the target buyer.
4. Marketing Channels: For communication channels and sometimes direct selling

concept. Distribution channels display, sell, or deliver the physical products.
5. Supply Chain:Beximcopharmacy has a longer channel stretching from raw

materials to finished goods. It represents a value delivery system.
6. Competition: Beximcopharmacy should consider Square pharmacy, Acme

Phamra etc. as the rivals and take marketing strategies appropriately to be in the
competition with them.
7. Marketing Planning: This process consists of analyzing marketing opportunities,

selecting target markets, designing marketing strategies,
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1) Segment Marketing
Beximcopharmacy use segment marketing concept. A market segment consists of a group

of customers who share a similar set of needs and wants. The Beximcopharmacy identifies
the segments and decides which one(s) to target.
Market segments can be defined in many different ways as follows:
 One way to carve up a market is to identify preference segments

 Homogeneous preferences exist when consumers want the same things
 Diffused preferences exist when consumers want very different things
SEGMENTING CONSUMER MARKETS FOR BEXIMCO PHARMA
Geographic Beximco Pharma segment its market

based on the geographical need found
from its R&D wing.
Beximco Pharma offers different

Demographic types of products based on
demographic segmentation
Beximco Pharma very seldom use

Psychographic psychographic segmentation
Beximco Pharma seldom use

behavioral segmentation since its
operating in pharmaceutical
Behavioral industry
Demographic Segmentation for Beximcopharmacy
Beximcopharmacy is using Demographic segmentation base on the need of

the different type of consumers.
In demographic segmentation the market is divided into groups on the basis of variables
such as age, family size, family life cycle, gender, income, occupation, education, religion,
race, generation, nationality, and social class. Consumer needs, wants, usage rates, and
product and brand preferences are often associated with demographic variables.
Demographic variables are easy to measure.
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Marketing Mix and (7P + 4C):
This business tool will help BeximcoPharmacy marketers to determine what product
related offerings to be made, at what price, which the targeted customers will be, how to
promote the product to the masses, which point of distribution to be selected and so on.
There are two ways of marketing mix, a combination of which a BeximcoPharmacy
marketer can use when dealing with the target segment:
People Process
In Bex imco pharma they are focus on In Beximco pharma Some examples of
the customer in such way : process decisions to be made include:
1 . BPL‘s success is based on attracting, 1 . Beximco pharma ranging from the
dev eloping and retaining talented and color to the design.
motiv ated employ ees. 2. Beximco pharma frequently arrange
2. BPL has highly educated white- collar seminars and sy mposia cov ering a wide
employ ees comprising of approximately range of medical topics attended by
76% of total BPL‘s workforce. members of health care community .
Physicial Evidence Place (Distribution decisions

1 . Beximco pharmaceutical prov ide Distribution is about getting the products to
samples of new medicine or medicines the customer:
that they want to increase sales to 1. Distribution channels
doctors from time to time. 2. Market coverage (inclusive, selective, or
2. Beximco Pharmaceuticals Limited has 3. exclusive distribution)
sustained a good image from the time it Specific channel members
4. I nventory management.
started its operation, but to reach the 5. Warehousing
top position in terms of ov erall image, it 6. Distribution centers,Transportation
has to emphasis more on the quality , 8. Order processing.
av ailability and presentation aspects of
Promotion Decisions: Price decision

promotion represents the v arious In Beximco pharma Some examples of
aspects of marketing communication, pricing decisions to be made include:
that is, the communication of 1 . Price flexibility
information about the product with the 2. Price discrimination
goal of generating a positiv e customer 3. Seasonal pricing
response.decision include:
1 . Promotional strategy ,Advertising
2. Personal selling and sakes force
3. Sales promotion
Product Decisions
T he term ―product‖ refers to tangible,
phy sical products as well as serv ices.
Here are some examples of the product
decisions to be made:
1 . Brand name
2. Functionality
3. Sty ling
4. Quality
5. Safety
6. Packaging
7. Repairs and Support
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Marketing Mix and (4C):
COSTS:
CLIENTS All costs should be considered
Beximco Pharmaceuticals should while designing the product which
undergo a market research means the costs incurred to make
through which they can the Products and the costs incurred
understand what kind of product by the customers to gain the
customers are looking for and product. In this way they can do
what impression do they have in appropriate pricing and make the
mind when they think of. customers feel that Beximco
Pharmaceuticals understands what
a customer goes through to
purchase a watch in terms of
costing.
Target
Marketing
Convenience
Communications Beximco Pharmaceuticals needs to
All sorts of communications done understand the appropriate
between Beximco locations where the distributions
Pharmaceuticals and its clients can be done easily from the
should be clear and engaging so perspective of the customers so
that consumers do not feel that the products gain a wide
confused about the products and reach.
customers feel interested to buy
the product
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CHAPTER FOUR
The Value Chain:
The value chain is a tool for identifying ways to create more customer value because
every firm is a synthesis of primary and support activities performed to design, produce,
market, deliver, and support its product.
Beximco Pharmaceuticals Ltd (BPL) is a leading manufacturer of pharmaceutical

formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. The company is
one of the largest exporters of pharmaceuticals in the country and its state-Of-the-art
manufacturing facilities are certified by global regulatory bodies of Australia, European
Union, Gulf nations, Brazil, among others.
The company is consistently building upon its portfolio and currently producing more than
500 products in different dosage forms covering broader therapeutic categories.
.
Beximco Pharmaceuticals Ltd (BPL) should focus to create value for its customers.
Figure: Porter‘s Generic Value Chain
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A) Primary activities:
1) Inbound logistics (material procurement): Beximco Pharmaceuticals Ltd (BPL) needs to

find ways how cost effectively procures its raw materials for the products. Quality raw
materials will ensure quality finished products.
2) Operations (turn into final product): Global MNCs like Bayer, Germany and Upjohn,
USA is good in technology hence they possess advanced production methods to turn the
raw materials into quality final product. The whole idea should be about turning the raw
materials into final product effectively and efficiently.
4) Marketing (marketing and sales): Marketing and Sales should be such that the target
market can be influenced. Marketing and Sales approach for product are more formal and
sophisticated.
5) Servicing (service after the sale): After sales service should make the customers at ease
so they don‘t fall into hesitation or difficulty after buying the product. Beximco
Pharmaceuticals Ltd (BPL) should have the image in the customers‘ minds that after
buying the product they don‘t have to fall in a problem in case an after sale is required.
B) Support activities:
1) Procurement: A well trained procurement is required to ensure quality supply chain

management. The inputs needed to produce watches are sophisticated in nature and hence
care should be taken so that procurement ensures quality inputs.
2) Technology development: As said earlier global MNCs like Bayer, Germany and Upjohn,
USA is good an advanced technology for which top quality production is not a problem.
BeximcoPharma is one of the largest exporters of medicines in Bangladesh, winning
National Export (Gold) Trophy a record four times. .
3) Human resource management (HRM): planning is the core area of all the functions of
management. It is the foundation upon which the other three areas should be built.
Planning requires management to evaluate where human resource of the company is
Currently, and where it would like to be in the future. From there an appropriate course of
action to attain the company's goals and objectives is determined and implemented.
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4) Firm infrastructure: This refers to an organization's structure and its management,
planning, accounting, finance and quality control mechanisms. BeximcoPharmaceuticals
Ltd (BPL) should ensure that they have a proper management who can
Manage properly the whole operations, have an expert team looking after finance and
accounts so that no fraud takes place and proper budgeting can be done and maintain
strict Total Quality Management (TQM) so that the final products are strictly quality
controlled.
TOTAL QUALITY MANAGEMENT
Quality ControlDepartment
Quality control department makes all types of chemical assay and chemical analysis find
the result in terms of potency, presence, identity, stability etc. The persons working here
are responsible for the quality of the products. This is actually the analytical part of the
plant.
Working Division of Quality Control Department

 Analytical section
 Microbiology section
 Packaging section
Analytical Section:
Analytical section of Quality Control Department performs analytical tests. Analytical
tests are mainly of two types as follows:
 Quantitative
 Qualitative
Activities of Quality Control Department:

# Sampling
(A quality control officer does it when Raw materials arrive in Warehouse)
# Analysis
(The analyst analyses the sample according to the specification)
# Checking
(After the tests, the results are checked)
# Final approval
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(The Q.C manager verifies the result)
# Collection
(A Q.A officer collects the results of the sample that was assigned previously)
QUALITY ASSURANCE
Quality Assurance is an organized department in Beximco Pharmaceuticals Ltd. which

deals with ensuring the quality of the product up to the end user. In1980s the approach for
assuring product quality extended the responsibilities of quality control far beyond the
area of testing and compliance check, and the concept of Quality Assurance was developed:
QA=Product design + GMP + QC + Quality goal activities

The activities of Quality Assurance are as follows:
 Approval of source
 Checking of Dispensing operation
 In process checking of all production area
 Product sampling, release
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CHAPTER FIVE
Brand & Branding
Brand Story
"We are happy with the progress achieved in the first half of 2010 and our achievement
during the period reinforces our focus on different strategic priorities which would enable
us to deliver broader range of medicines for our patients and greater value for the
shareholders" - as the Managing Director of the company was speaking. The Company was
awarded Super brands for the year 2010-11 recently. The company delivered strong
performance during the first half of the year 2010 with an impressive 28% growth over the
corresponding period of 2009. This performance was largely driven by strong growth of
key brands, as well as excellent response with 28 new products launched during the period.
The company developed and registered over 50 generic formulations for launching in the
current year which will significantly strengthen its product portfolio.
Brand Leadership
As survey showed that 27 of BPL‘s products are found to be brand leaders out of 47
products surveyed while 10 stand at second place
Box Analysis of Brand Elements (6 categories)
Brand elements are devices that identify and differentiate the brand. Multiple brand
elements application may strong the brand equity. The outcome of this activity can be
judged by what consumers would think or feel about the product if the brand element were
all they knew.
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Box Analysis of Brand Elements (6 categories)
A necessary condition for building brand equity is

achieving a high level of brand awareness. How easily
Memorable Bexcimco do consumers recall and recognize the brand element,
and when—at both purchase and consumption?
Beximco is short and memorable brand name.
Choosing brand elements to build awareness, brand
Brand elements can also be chosen whose inherent meaning
Building Meaningful -- enhance the formation of brand associations. Brand
elements may take on all kinds of meaning, varying in
descriptive, as well as persuasive.
Independent of the product or service, how much
would consumers like the brand elements.
Likable Bexcimco
Beximcopharma‘s medicines are one of the most
likable products among the customer.
The forth general criterion concerns the transferability
Transferable -- of the brand element- in the both a product category
and geographic sense.
The more adoptable and flexible the brand element,
the easier it is to update it. For example, logos and
characters can be given a new looking or a new design
Adaptable Bexcimco to make them appear more modern and relevant. As
pharmaceuticals company Beximco has a strong R&D
department so they are frequently developing their
Defensive
product.
‗Beximco‘, the brand element is protectable-both in a
legal and competitive sense. In term of legal
considerations, it is important to1.choose brand
elements that can be legally protected on an
Protectable Bexcimco
international basis, 2.formally register them with the
appropriate legal bodies, and 3. Vigorously defend
trademarks from unauthorized competitive
infringement
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Brand dynamic Pyramid:
The firm spent 30 years tracking brand-health studies from thousands of organizations. It
then used this research to create its original model. The pyramid, as shown in figure,
illustrates the five key stages that customers go through with a brand, starting with basic
awareness and finishing with complete loyalty.
The "Brand Pyramid" is a useful tool that can help you think about where your customers
are on this journey to loyalty. In this term paper, we'll explore how Beximco can use it to
increase people's loyalty to your brand, product, or organization
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Level 1: PresenceAt this level, customers are aware of your brand, but little else. They
may have tried your products and services before, but they have no emotional
attachment to them. We think Beximco successfully pass this stage.
Level 2: RelevanceAt this level, customers start to think about whether the brand meets
their wants and needs. It's here that they begin comparing the cost of your products
with respect to the value they provide. Customers begin asking questions like: Does
this brand fit my needs? Is it worth it? Being a customer of Beximco pharmacy we
got positive answer from the above questions.
Level 3: PerformanceHere, customers begin comparing the brand with competing

brands, to see if it delivers on its potential. They're also starting to associate the
brand with a specific identity, and they're beginning to recognize it and associate
with it. By now, the brand is on the customer's "short list" of brands to choose from.
Level 4: AdvantageAt these level, customers has determined that there is a distinct
advantage to using the brand, compared with others. They're also beginning to
associate the brand with their emotions and with their sense of self. Because they
are still looking for the X factor which give them the competitive advantage than
their competitor.
Level 5: Bondinghere, customers have established a bond with the brand. They've
determined that cost, advantage, and performance are all at levels that they like.
This, in turn, encourages them to exclude other brands in favor of this one.
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CHAPTER SIX
The Five M’s of Advertising
Message
Celebrate every
minutes of
being alive by
Providing hope
Mission Money & ensuring a Measurement
better future
Through
creating strong
emotional Initially Apx BDT Customer from all
attachment 25,00,000 around the world
building a Media
strong bonding
Telavision,magazin
es,billboards,
internet & social
media
Beximco's 5 M
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The five M‘s of advertising provide a framework by which you can create an advertising
platform.
First, the firm must decide what the purpose of the advertisements will be. This is called
the mission. Monetary constraints usually determine how large any project can be. Since
measuring changes in customer opinion can be time consuming and costly.
MISSION First of the entire marketing manager must be clear on the company‘s purpose
for advertising. ―Increase in sales figure‖ will be a very broad and to a certain context a
vague objective. According to Mr. Philip Kotler, a renowned authority in this field, there
can be three possible objectives behind.
MONEY After the objective has been decided upon; the next step is to decide upon the
budget. There are several methods for deciding on the advertising budget. The most
common among them is the percentage of sales method. But then like each individual each
company is also different.
Message
Advertising is a creative process. There are slogans, themes and gimmicks that try to lure
the customer in. The message of an advertisement is this creative aspect.
Media
This aspect of the program refers to the media that will be used to communicate the
message. This can include television, radio, mail, telephone and in person contact.
Choosing the right media can make or break an advertising program.
Measurement
Finally, Beximco must measure the effects of the program on their intended audience. It is
often very difficult to measure how much the advertisements actually impacted customer
interest and how much other external factors played a part.
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Mass Communication
A. Advertising budget & Campaign Cost, Sales Promotion & Budget
The main promotion activities are carried out by the medical representatives & they are
covering Hospitals & Clinics, as because a new product will be launched in the market, the
management can think of a launching program or an introductory program. All leading
gastroenterologists, Surgeons, General practice doctors who are practicing in Hospitals,
clinics in Dhaka will be invited in that campaign to make the product familiar to them. In
this way the message of their products spread among the doctors. Since, it is not practical
or difficult to go for nationwide campaign for a single product at once, so they focus on the
doctors based in Dhaka first but they will be ready to use mechanisms procedures to
ensure that the message spreads to other doctors through their colleagues to all over
Bangladesh. All doctors will be provided with initial samples & other promotional items.
beximcopharma increase their Selling, Marketing and Distribution Expenses(budget) from

BDT993,331(2013) to BDT1,069,778(2014)
B. Event & Experiences/Sponsor:
Bexcimco organize different types of social events, like

 The Sufifest was a remarkable event laid in the golden page of history of Bangladesh
which was also sponsor was by Beximco Group
 Bangabandhu international football tournament which had combats from six
nations contending to claim victory and be immortal in page of history this
tournament also sponsored by beximco Group
 Sponsoring events and national sport stars and teamsOfficial sponsor of the
Bangladesh National Cricket team for the ICC Cricket World Cup 2011
 Official sponsor of the FIFA friendly match between Argentina and Nigeria held in
September, 2011
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C. Public relation/Government Lobbying
The stakes are always high when it comes to marketing, managing and promoting brands
and handling the media in this age of mass communication. Get it right, and
Your message will hit home at the heart of your target audience. Get it wrong, and you
might stir up a crisis.
Beximco Group, the largest private sector industrial conglomerate in Bangladesh, They
appointed Impact PR as its official public relations agency.
Beximco Group's Director Finance and Corporate Affairs O K Chowdhury and Impact PR
Chief Executive Officer M Shamsur Rahman signed the agreement at Beximco Group's
head office.
Under the agreement, Impact PR will provide public relations services to companies under
the umbrella of Beximco Group and will take care of all media inquiries on a 24-hour and
seven-day-a-week basis, said a press release.
D. Corporate social responsibility
 CSR initiatives are an integral part of our strategic commitment, and we are always
guided by strong ethical values to operate responsibly within broader social and
economic context. Responding to the evolving needs of the society, and making a
meaningful impact on the quality of their lives are central to Beximco‘s CSR
philosophy.
 From Rana a plaza victim to those affected by natural calamities, BPL always stands
by the distressed donating a large amount of medicines.
 BeximcoPharmacy works together with non-profit organizations who work to

improve people's lives through research, information, and advocacy. The company
has extended support to Mobile Alliance for Maternal Action (MAMA) in
Bangladesh, as its founding corporate partner which aims to deliver life-saving
health messages to pregnant and new mother using mobile phones.
 BPL continues to support JAAGO Foundation; the largest youth based volunteer
organization in Bangladesh, which aims to bring about substantial improvement in
the lives of disadvantaged people with special emphasis on their literacy and
nourishment. BeximcoPharmacy sponsors Jaago‘s various health and education
initiatives and actively takes part in celebration of special days.
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 Since 2003, we have continued our ARV drugs donation to local NGOs for treating
AIDS patients in Bangladesh. The company runs its awareness campaign in the
form of rally, discussion, poster presentation, and seminar to observe World
Hypertension day, Osteoporosis Day, Asthma Day, Diabetes Day, and AIDS Day etc.
The company also sponsors a good number of scientific seminars for various
associations and societies of medical disciplines.
Through the FRF foundation, Beximco has been engaged in philanthropic activities for the
last 12 years, providing medical consultation and diagnostic support both for its
Employees and general people at a nominal cost. BPL also plays a leading role in
promoting sports and preserving cultural heritage through sponsorship.
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CHAPTER SEVEN
Marketing Budget and Expenditure
In the previous section we talked about mass communication campaign strategies, and we
have shown the budget. Our overall marketing budget will be the same, which makes the
grand total shown below.
Contents BUDGET
Descriptions 2014 2013
Raw and Packing Material (Including Work in 1,768,608 1,675,642
Process and Transit)* Inventory
Capital Expenditure / Project 29,734 39,234
Raw & Packing Material * Loans 431,840 409,578
Physician Sample 99,961 99,961
TOTAL 2,330,143 2,224,415
This will be our marketing budget and expenditure to rebrand Beximco Pharmaceuticals
Ltd in the minds of the Bangladesh customers. It may seem a lot, but it is worth it as
Beximco Pharmaceuticals Ltd will gain increased exposure, thus more profit margins.
Market growth
The market is expected to grow by 15 to 20% per annum for the next 5 years. The
compounded annual growth for the previous 6 years was 15%. The next stage of growth is
expected to come from backward integration to manufacture high volume raw materials,
introduction of Hi-Tech manufacturing processes that are difficult to imitate products, and
exports,
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PRODUCT MARKETING COSTS
Figures for Products are given: -

by EACH COUNTRY / STATE / REGION
by YEAR.
MARKETING COSTS: BY YEAR: Sales & selling costs: during product launch.
Distribution/ warehousing / handling / processing costs: during product launch.
Advertising / promotional costs: during product launch. After-sales costs. After-sales
costs: during product launch. Total marketing costs: during product launch.
Pricing Strategies
Steps in Setting Price(also add this figure) in
slide
Select the price objective
Determine demand
Estimate costs
Analyze competitor price mix
Select pricing method
Select final price
Beximco pharmaceuticals Limited maintain competition based pricing strategies. In the

pharmaceuticals market there, is not much price differentiation, in general, among the
different companies due to the highly competitive nature of the industry.
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Price is not a very important factor due to the nature of the product. Quality is more
important. However, the purchasing capacity of the patients is also an important
consideration. Therefore, it is important for the companies to charge a reasonable price for
their product.
According the survey, most of the doctors perceive Beximco as offering reasonable pricing
for their product.
Beximco pharmaceuticals Limited maintain competition based pricing strategies. In the
pharmaceuticals market there, is not much price differentiation, in general, among the
different companies due to the highly competitive nature of the industry.
Price is not a very important factor due to the nature of the product. Quality is more
important. However, the purchasing capacity of the patients is also an important
consideration. Therefore, it is important for the companies to charge a reasonable price for
their product
.
According the survey, most of the doctors perceive Beximco as offering reasonable pricing
for their product.
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Breakeven Analysis with Chart/Graph
Formula of the Break-even analysis
Profit = Revenue – Cost
At Break-even,
Revenue = Cost
Profit = 0
At 2012, Beximcopharma total expense was Tk.2181521867.Since Beximcopharmais a
pharmaceuticals company so there is no fixed quantity. There is different types of quantity
for exampleTablet, Capsule, Suppository & DPI (unit 2,981.40 Million pcs),Liquid, Cream
and Ointment, Suspension,IV Fluid, Amino Acid, Ophthalmic,Nebulizer Solution,
Injectable and Inhaler (unit 63.05 Million pcs),Active Pharmaceutical Ingredients (unit
158,852kg ), Liquid Nitrogen (unit 236,597 liter ). So, when Beximcopharma revenue is
Tk.2181521867 then this company reaches a break even sales or point
Revenue and Cost

Cost
Break-even point
Revenue
Quantity
Figure: Break-even point of Beximco Pharmacy, 2012

Source: Annual-Report-2012 of Beximco Pharmacy
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At 2013, BeximcoPharma total expense was Tk. 2,514,527,446.Since BeximcoPharma is a
pharmaceuticals company so there is no fixed quantity. There is different types of quantity
for example Tablet, Capsule, Suppository & DPI (unit 3,173.13Million pcs), Liquid, Cream
and Ointment, Suspension,IV Fluid, Amino Acid, Ophthalmic, Nebulizer Solution,
Injectable and Inhaler (unit 66.75Million pcs), Active Pharmaceutical Ingredients (unit
170,516kg ), Liquid Nitrogen (unit 387,153 liter ). So, when Beximcopharma revenue is Tk.
2,514,527,446 then this company reaches a break even sales or point.
Revenue and Revenue

Cost
Break Even Point
Cost
Quantity
Figure: Break-even point of Beximco pharmacy, 2013

Source: Annual-Report-2013 of Beximco pharmacy
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At 2014(Half Year ended June 30, 2014), Beximcopharma total expense was
Tk.1,284,256.Since Beximcopharma is a pharmaceuticals company so there is no fixed
quantity and we can‘t get any quantity from annual report. So, when BeximcoPharma
revenue is Tk.1,284,256 then this company reaches a break even sales or point.
Revenue and Revenue

Cost
Cost
Break Even Point
Quantity
Figure: Break-even point of Beximcopharmacy, 2014 (Half Year ended June 30)
Source: Half-Yearly-Report-2014 of Beximcopharmacy
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Recommendation
Beximcopharma is the leading pharmaceuticals company in Bangladesh. Here are some
recommendations for Beximcopharma.
Beximcopharma is now one of a leading position for their modernization ideas and various
facilities for their customers. Moreover to retain the customers, if BPL gives more
importance on their marketing strategy, it will outperform their competitors.
It will be more helpful if, Beximcopharma adaptation of more advance technology in the
production process and improvement of compensation structure for the staffs and
employees.
Training facilities must be given to employees and officials to increase their efficiency and
effectiveness.
To retain customers, Beximcopharma should give more attention on their field force. In
this regard, they can employ more talented & educated people as representative.
Training facilities must be increasing the productivity of the employees that helps the
Beximcopharma further to achieve its long-term goal.
Trainingamenitiesin improving upon the quality of work and work-life.

Beximcopharma Training facilities lead to improved profitability and more positive
attitudes towards profit orientation.
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Conclusion
In Bangladesh Pharmaceutical sector is one of the most developed hi tech sector that is
contributing in the country‘s economy. Pharmaceutical sector is one of the express
mounting sectors in Bangladesh. It is most developed scientific sector. There are 250
registered pharmaceutical companies operating in Bangladesh pharmaceuticals industry.
Pharmaceuticals market is now extremely aggressive. Beximcopharma, the only
Pharmaceutical industry to export their medicine to foreign country.Beximco has a strong
market share and got enlisted on London Stock Exchange. They have strong capital in
Bangladesh. Beximcopharma introduced HIV/ AIDS medicines. Beximcopharma is the
only pharmaceutical industry that created group for resistance of Cancer and HIV/ AIDS.
After knowing the whole strategic management techniques followed by Beximcopharma

clear that no company can follow one from or approach from the corporate level strategy.
However, Beximcopharma has also been that of a kind where they practiced different types
of growth strategies, reached boom and at the same time company followed to the need for
recovery stage where they have gone through the renewal strategy. But more or less it can
be said that Beximcopharma preferred either growth through market developments and if
not so then stability; with a consistent approach towards consumer. Well the sum up we
can be stated as that with all their superior strategies and techniques they have continued
to stay prosperous from centuries and hope to maintain that throughout.
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Reference
Book name:
 Marketing management – A south Asian perspective – 14/e by phillipkotler, Kvein

Lane Keller, Abraham koshy, and Mithileshwerjha: pearson Prentice Hall
 Marketing Management (Thieteen ed.) by PhillpKotler.
 Strategic Marketing Management – Meeting the Global Marketing challenges by

Carol H. Anderson & Julian W. Vince published by Houghton Mifflin Company
Web site:
 http://www.beximco-pharma.com/images/stories/investor/pdf/Annual-Report-
2012.pdf
 http://www.assignmentpoint.com/business/report-on-beximco-
pharmaceuticals.html
 http://www.assignmentpoint.com/science/pharmacy/quality-control-system-of-
beximco-pharmaceuticals-ltd.html
 http://www.beximco-pharma.com/images/stories/investor/pdf/Half-Yearly-
Report-2014.pdf
 http://www.beximco-pharma.com/images/stories/investor/pdf/Half-Yearly-
Report-2014.pdf
 http://www.slideshare.net/tasvirchowdhury/beximco-pharmaceuticals-
presentation-in-bangladesh
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Appendix
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Professor Dr. M. Mahmodul Hasan

© 2014Bexcimco. All right reserved Version: 1.1

Date: 25thapril, 2015

Prof. Dr. M. Mahmodul Hasan

Subject: Submission of the report on “BaximcoPharcuetical Limited”

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Beximco Pharmaceuticals Ltd is a leading manufacturer of medicines and active

In Chapter One, We have discussed about the definition of Marketing Management

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Beximco Pharmaceuticals Ltd. (Beximco Pharmacy) is a leading manufacturer of

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Definition of Marketing Management (Theory 2000 – 2011)

Marketingmanagement is the art and science of choosing target markets and

Definition of Marketing Management (Theory 2012 – 2016 ±)

BeximcoPharmacy committed to enhancing human health and well-being by providing

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1. Health Consciousness of people 1. R&D activity of Beximco

1. Climate Change of Bangladesh 1. Labor Law 2006 & 2013

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Threat of new entrants Threat of substitutes

Threat of new entrants is  Buyer indignation to

 Buyer power is  Fixed cost is high in

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To identify the Marketing Strategies of BeximcoPharmacylet‘s use the below marketing

Company focused Competition focused

Pushes the boundaries Leader Challenger:

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Why Beximco Pharma Falls under

Beximco Pharma uses a broad line in

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1. Target Markets, Positioning, and Segmentation: BeximcoPharma‘s target

2. Offerings and Brands: Beximcopharmacy offer differenced products to its

4. Marketing Channels: For communication channels and sometimes direct selling

5. Supply Chain:Beximcopharmacy has a longer channel stretching from raw

6. Competition: Beximcopharmacy should consider Square pharmacy, Acme

7. Marketing Planning: This process consists of analyzing marketing opportunities,

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Beximcopharmacy use segment marketing concept. A market segment consists of a group

Market segments can be defined in many different ways as follows:

 One way to carve up a market is to identify preference segments

SEGMENTING CONSUMER MARKETS FOR BEXIMCO PHARMA

Geographic Beximco Pharma segment its market

Beximco Pharma offers different