3. Introduction
• Establishment
• Incepta Pharmaceuticals Ltd. is a leading pharmaceutical
company in Bangladesh established in the year 1999. The
company has a very big manufacturing facility located at
Savar, 35 kilometer away from the center of the capital city
Dhaka.
• What types of Company?
• Incepta Pharmaceuticals Ltd. is a leading pharmaceutical
company in Bangladesh
5. Contribution to the economy
• In Bangladesh the pharmaceutical sector is one of the most developed hi-tech
sectors which is contributing in the country’s economy.
• Exporting medicines to global market including European market. This sector is
also providing 97% of the total medicine requirement of the local market.
Maintain balance of trade between import & export.
• Over $250 million invested in the sector, has helped modernize and create new
facilities.
Brief History
Incepta Pharmaceuticals Ltd. is now the 2nd largest company of the country
and recognized as the fastest growing of the top five manufacturing company
in the country. Established in the year 1999. Incepta was able to anticipate
the need of the market and provide the right product at the right time.
Incepta began its operation with a handful of highly skilled and dedicated
professionals guided by an able leadership.
6. Competitors
There are many competitors:-
1. SQUARE PHARMACEUTICALS LTD.
2. BEXIMCO PHARMACEUTICALS
3. OPSONIN PHARMA LTD.
4. ESKAYEF
5. RENATA PHARMACEUTICALS
6. ACME PHARMACEUTICALS
7. ACI PHARMACEUTICALS
8. ARISTOPHARMA
9. DRUG INTERNATIONAL
10. SANOFI AVENTIS
7. Market share
Up to May 2012, it has already launched 334 generics with a total of 639 products.
8. Nature of market
• Under pure competition:- Also sometimes referred to as perfect
competition, pure competition is a situation in which the market for a
product is populated with so many consumers and producers that no one
entity has the ability to influence the price of the product sufficiently to
cause a fluctuation.
9. Product:-
• In general, the product is defined as a "thing produced by
labor or effort, or a product is anything that can be offered to
a market that might satisfy a want or need.
Product mix
A range of associated products that yields larger sales
revenue when marketed together than if they were
marketed individually or in isolation from others. Incepta
Pharmaceuticals Ltd. Has 639 types of product in their
product mix.
10. Product line
A range of associated products that yields larger sales revenue when
marketed together than if they were marketed individually or in isolation
from others.
• A. Sterile Products.
• B. Non Sterile Products.
• C. Biological Products.
• D. Cephalosporins (Dedicated manufacturing facility).
11. Domestic • 10 present
• Raw materials (main)
Import • 90 present
Major raw materials required for production
To produce different kinds of finished products, the local companies need more
than 750 different types of raw materials, 90% of which is imported. 40 different
types of raw materials produced locally at smaller quantity and the rest of Active
Ingredients are imported. Main sources of raw materials include Germany,
Switzerland, Belgium, France, Italy, Denmark, Netherlands, UK, USA, UAE,
China, Taiwan, South Korea, Japan, Spain, and India. Recently, 4-5 API projects
are under implementation and once they are in commercial production, a
significant percentage of raw material requirements will be mitigated from local
sources.
12. Marketing management concept
• Holistic marketing concept is based on development, design,
and implementation of marketing programs, processes, and
activities that recognize their breadth and interdependencies.
Four main components of holistic marketing are:
•Relationship marketing
•Integrated marketing
•Internal marketing
•Socially responsible marketing.
13. Product design and style
• Although product design varies from company to company, but the leading
local and foreign companies have certain standard on product designing
that is acceptable to world market. They use quality design of
packs, strips, bottle cover etc.
Brand name
• Incepta hold a very powerful brand name in our country. In present
pharmaceutical industry incepta is in number two position.
20 July 2011
• Incepta receives UK Medicines and Healthcare products Regulatory
Agency (MHRA) GMP certification
14. Service
• Services are there at retailers’ level. Expired unsold products are refunded
at a certain percentage. Loss and damages are also compensated
depending on the quantity of medicine.
Sales 5 years
Year 2009 2008 2007 2006 2005
Domestic sales ( Thousand USD) 48.32 52.14 41.14 36.76 30
Export sales ( Thousand USD) 3020 3350 2428 450 -
15. Production utilization
• Zirabo, Savar about 35 kilometers from the capital city and is
spread over the land of about 151,000 square feet area
(approx.14,000 square meter) with a build-up total floor area
of about 231,400 square feet (approx.21,500 square meters)
with state of the art manufacturing facilities. The plant
manufactures tablets, capsules, oral liquids and
Injectables, nasal sprays, creams, ointments, ophthalmic
products, sachets, powder for oral suspensions, spray dried
specialized dosage forms etc. Cephalosporin group of
products are manufactured in a completely separate building.
16. Piece:-
Pricing approach
• The prices of products under controlled category are determined by the
government. The manufacturing companies are allowed to propose the prices of
the products that are under decontrolled category and the approvals of these
proposed prices are given by the government. Since the local government strictly
controls price of pharmaceutical products, there is a very negligible price
difference. The maximum retail-selling price of a product shall be just double the
price of API plus value added tax at 15% VAT. But, the price of raw materials is
competitive which is fixed based on international market situation. As
Pharmaceutical manufacturers have to depend on imported raw
materials, increase in prices of raw materials internationally impact directly to the
cost of production.
Pricing strategy for new product
Since the government strictly controls price of pharmaceutical products, a new
company should adopt ‘shadow or indirect’ pricing method.
17. Place
Channel design
• Incepta has its own large distribution network having 18 depots all over the country. They
make the products available in every single drug store of the country. The depots are located
in
Dhaka, Chittagong, Rajshahi, Khulna, Sylhet, Barisal, Comilla, Noakhali, Mymensingh, Magura,
Bogra, Narayangonj, Rangpur, Dinajpur, Tangail, Jessor, Moulovibazar and Cox's Bazar.
• Incepta market their p roducts in 37 countries of the world thourgh our distribution partners.
18. Channel strategy
• Incepta has a large distribution network that covers the whole country and make
products available in every single drug store. The Distribution centers are located
in 18 major cities across Bangladesh. Products are supplied on a daily basis to all
the major cities and towns of the country. Remote areas are also supplied
rhythmically to ensure timely availability of products to all customers.
19. Inventory system
• Keeping track of inventory is vitally important for any successful retail
enterprise. Inventory systems overselling products and then having to
inform customers that their items are either unavailable or must be
backordered. let you know when it is time to stock up on items that are
running low and can also prevent you from
Every drug manufacturing company has their own inventory system.
Inventory mainly incurred in three situations:-
•Raw material inventory.
•Work in process inventory.
•Finish goods inventory.
Transportation
Every drug manufacturing company has their own transportation vehicles as like
trucks, cargo trucks etc.
20. Ware housing
• The warehouse of Incepta is an enclosed building and protects the stored
goods from environmental influences. They are secured against fire by the
design of the buildings and technical facilities. They are secured against
fire by the design of the buildings and technical facilities.
• There warehouse is equipped with four different storage conditions; a)
2oC – 8oC, b) 8oC – 15oC, c) 15oC -25oC, and d) ambient condition. There
is specific quarantine and sampling areas with dedicated separate storage
location for cephalosporin, and steroids. Temperature sensing is equipped
with remote sensor technology.
21. Promotion
Tool
• In Bangladesh, promotion of pharmaceutical products in the mass media
is strictly prohibited. Market and sales promotional activities are carried
out by field level sales force. Every company has its own sales at local and
international level. Required transport facilities are given to the sales force
in the field to visit doctors, health care centers, hospitals and private
practitioners.
Trade promotion activities
• Recently, as mentioned earlier, the Ministry of Commerce and Export
Promotion Bureau in collaboration with the sector association of
pharmaceutical companies i.e. BAPI have taken special initiative or
program for export promotion of pharmaceutical sector. Activities like
organizing trade missions and group visits to international trade
fairs, displaying pharmaceutical products.
• Asia Pharma expo, and some other events, studies, seminars, training are
helping promoting trade.
22. Conclusions
• Bangladesh is one of the poorest countries in the world where about
80%4 of the population are living below poverty level. So, ‘Malnutrition
and Poor Health Conditions’ exits. The population growth is still there
and gradual increase in health consciousness among mass people. All
these factors have positive impact on the demand of the pharmaceutical
products. As a result, the demand for imported raw materials will also be
increased.
• The pharmaceuticals sector is the second largest sector after agriculture
that contributes to the revenue generation of the Bangladesh
Government. The sector has growth potentials both in local and export
market. There is an increasing trend in the export of pharmaceuticals
that indicates very good future prospects for the country.
