E-marketing using Beximco Pharmaceutical Ltd. In Bangladesh

1. Roni Bhowmik
Master’’s Program
Master
International Business
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2. TABLE OF CONTENTS
Chapter one: Introduction 05
1.1 Background of the Assignment 06
1.2 Objective of the Assignment 06
1.3 Sources of Information 07
1.4 Scope of the Assignment 07
1.5 Limitations of the Study 07
1.6 The Role of E-Commerce in the Era of Globalization 08
Chapter Two: Pharmaceuticals Industry in Bangladesh 09
2.1 Background of Pharmaceutical Industry of Bangladesh 09
2.2 Top Ten Pharmaceutical Companies in Bangladesh at Present 10
Chapter Three: Company Information 13
3.1 BEXIMCO Group 13
3.2 Group Composition 15
Chapter Fourth: Beximco Pharmaceuticals Ltd. 20
4.1 Beximco Pharmaceuticals Ltd. (BPL) 20
4.2 Major Achievement of BPL 21
4.3 Beximco Pharma’s Different Edge 23
4.4 Beximco Pharma’s Blockbuster Product 23
4.5 Company Profile at a Glance 24
4.6 Departments of BPL and their Activities 25
4.6.1 Central Product Management (CPM) Department 25
4.6.2 Purchase Department 26
4.6.3 Market Research & Statistical Cell (MRC) Department 26
4.6.4 Sales Department 27
4.6.5 Human Resource Department 27
4.6.6 Finance and Accounts Department 28
4.6.7 Sales & Training Department 29
4.6.8 Management Information System (MIS) Department 30
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3. 4.6.9 Multimedia Department 30
4.6.10 Medical Services Department (MSD) 31
4.6.11 International Marketing Department 31
4.6.12 BPL Factory (Works Department) 32
4.6.13 Sponsorship Department 33
Chapter Fifth: E-Marketing in Bangladesh and Beximco 33
5.1 The Existing Situation and Potential of E-marketing in Bangladesh 33
5.2 Supportive Framework in Beximco 34
5.3 Legislation Relating to Trade 37
5.4 Acts and Laws Related to Consumer Protection 38
Chapter Sixth: MRC Department of BPL 39
6.1 Market Research & Statistical Cell (MRC) Department 39
6.2 Activities of MRC Department 41
6.3 SWOT Analysis of MRC Department 42
6.4 Industry Analysis 43
Chapter Seven: E-marketing Advantage and Disadvantage 44
Chapter Eight: Conclusion 46
Chapter Nine: Bibliography 47
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4. 1. Introduction
The Internet has opened up a new horizon for trade and commerce, namely electronic
commerce (e-commerce). E-commerce entails the use of the Internet in the marketing,
identification, payment and delivery of goods and services.
An e-marketing is a facilitated online environment that connects multiple buyers and
suppliers in a single, Web-based hub to more effectively match supply and demand while
reducing transaction cycles and costs. The e-marketplace works for companies engaging
in collaborative business.
Market Research is played a significant role to design and implement successful
marketing programs for the company. Market Research is being used by all kinds of
organizations and for a wide range of purposes. In today’s market, information is a major
competitive edge for any company. For manufacturing company it is essential to know
the customer needs and satisfaction level, market position, competitors’ position and how
the company implements their marketing strategies. So, Market Research Department can
play a vital role to answer all of these questions through collected by relevant, accurate,
reliable, valid and current information. Market Research Department can help the top
management by providing that information for making vital decisions, designing and
implementing important marketing strategies (like- promotion, advertising, positioning)
and solving the problem successfully to compete in the market strongly. Market
Research Department of BPL conducts the survey activities for collecting that important
information which is used for enhancing the overall profitability and market share of
Beximco Pharmaceuticals Ltd. (BPL).
In China is a big market in the world. In Chinese medicine normally used old technology,
so in this situation Beximco try to capture this big Asian market.
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5. 1.1 Background of the Assignment:
I have selected to work as an assignment in one of the leading company of
pharmaceuticals field that is “Beximco Pharmaceuticals Limited (BPL)” a company of
Beximco Group in Bangladesh.
1.2 Objective of the Assignment:
Primary Objective:
The primary objective of my assignment is to find out the entire procedure of Market
Share Survey of BPL based on prescription delivered by the doctors and give some
recommendations on existing survey method.
• To know how the MRR conduct their survey in the field.
• To know the E-marketing use in BPL.
• To suggest the improvement proposal or opinion about the existing E-marketing.
• To find out the satisfaction level of chemist shops towards the company’s
marketing method.
Secondary Objective:
The secondary objective of my assignment is to fulfill the requirements of E-marketing
course. And also broaden our knowledge and understanding by adding practical
experience in a real business set up to our acquired knowledge in the classroom.
E-commerce facilitates the very process of international transaction; this involves
securing and finalizing a contract, delivery of the product, and finally payment for
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6. performance of the contract. The movement of goods and services, as well as the
payment mechanisms within a country and more so outside a country, are governed by
regulatory and legal issues. Hence, the regulatory environment is at the core of e-
commerce development. This paper aims to highlight the status, statutes, potential and
constraints of e-commerce development in Bangladesh.
1.3 Sources of Information:
Both Primary and Secondary sources were chosen as an effective means of collecting
data relevant to this report.
The source of information gathered by using Internet, different textbooks, annual reports
of BPL and some written information provided by the MRC Department of BPL.
1.4 Scope of the Assignment:
The scope of the report was confined within the MRC Department of BPL. Here two
sides were selected to complete the study, process of market share survey of BPL
products based on prescription output and working process of MRC Dept. of BPL by that
surveyed data. There is no other way alternative to find out the survey process of BPL
other than looking forward to the practical experience of market or chemist shop survey.
1.5 Limitations of the Study:
Some limitations were faced while preparing this assignment. Some of those limitations
are highlighted below:
• As the organization has a large existence around the country and I could not
explain the whole, due to the time constraints.
• As a business student, it was difficult to understand the prescriptions as I was not
trained or well conversant with the name of the medicines. And also I was not
able to understand many of the technical terms of the pharmaceuticals company.
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7. • Time is really very short time to work this assignment.
1.6 The Role of E-Commerce in the Era of Globalization:
Globalization has brought in many changes in the business scenario with the whole world
inching towards one big market place. Communication between the buyers and sellers
has become critical as each can opt to explore a greater number of alternatives than ever
before. E-commerce through Internet, e-mails, websites, and other facilities, enables a
businessman to be linked with every corner of the world, and thus opens up greater
opportunities in the world market.
Another important factor is the time required for completing a business transaction. As
markets are becoming competitive and information is more readily available, a quick,
reliable and replicable transaction implies availing of prevailing opportunities. On the
contrary, delays in processing a transaction might become synonymous to wasting an
opportunity. Therefore, a fast and alternative mechanism of communication, contract, and
payment is an integral part of a globally competitive business organization.
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8. 2. Pharmaceuticals Industry in Bangladesh
2.1 Background of Pharmaceutical Industry of Bangladesh:
The scenario of pharmaceutical industry can be described in two parts- before the Drug
Policy Ordinance in 1982 and after the Drug Policy Ordinance in 1982.
Before 1982, there were 177 licensed pharmaceutical manufacturers in the country but
local production used to be dominated by the big multinational drug companies (MNCs)
which manufactured the lion’s share about 75% of the products, 25 medium sized
national companies manufactured another 15% of the products and 133 small local
companies (LCs) produced the remaining 10%. These multinational companies were
fully armed with the technical know-how for producing sophisticated essential drugs, but
they were only engaged, to a large extent, in formulation of simple drugs including many
unnecessary products. At that time, the unregulated drug market of the country had very
favorable conditions for pharmaceuticals to over price their products. That time local
firms could not compete effectively with these multinational market tycoons.
A great change was noticeable in the pharmaceutical industry after the Drug Policy
Ordinance of 1982. The total national production of pharmaceuticals has risen by a
substantial 63%; the value of essential drug made in national factories has gone up by
140% over the four years following the drug policy promulgation. At present, more then
95% of the total demand of medicinal products is met by local production. Local
companies (LCs) increased their share from 25% to 70% on total annual production
between 1982 and 2000. In 2000, there were 210 licensed allopathic drug-manufacturing
units in the country and now there are 265 registered companies are operating. Few of the
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9. multinational companies closed their business in Bangladesh, as it was difficult to make
huge profit after the Drug Policy. Among the multinational companies ACI and Pfizer are
now running its business in national ownership.
After ready made garments (RMG), pharmaceutical sector has become one of the largest
sectors in earning foreign currency. Meeting more than 95 percent demand of the local
market, Bangladeshi drugs gained a significant position in the world’s drug market.
Locally manufactured drugs are now being exported to more than 52 countries across the
globe like- Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen,
Oman, Thailand, and some countries of Central Asia and Africa.
1980 2003
Local 20% 95%
Imported 80% 5%
Table-: National Demand met by Local production & Imported drugs
2.2 Top Ten Pharmaceutical Companies in Bangladesh at
Present:
Shares of Top Ten Pharmaceutical Companies:
Ten companies are occupying more than 60 % of market share, where there are more than
250 (registered and unregistered) companies in Bangladesh Pharmaceutical Market. Out
of these top ten pharmaceutical companies in Bangladesh, eight are local companies,
while only two are multinational companies (MNCs). The top two domestic
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10. manufacturers, namely Square and Beximco Pharmaceuticals are having a combined
market share of about 25% of the total pharmaceutical market of the country.
Market Share in
Pharmaceutical Companies
Terms of Sales
Square Pharmaceutical Ltd. 14.5%
Beximco Pharmaceuticals Ltd 10.0%
Acme 8.0%
Aventis 6.0%
Incepta 5.0%
SK+F 4.5%
Glaxo SmithKline Bangladesh 4.3%
Opsonin Chemical Industries Ltd. 4.0%
Drug International 3.8%
ACI 3.7%
Table-: Top Ten Pharmaceutical Companies in Bangladesh
Top Ten Pharmaceutical Companies S qu are
Be ximco
15%
Acme
Market Share
Ave nti se
10%
Ince pta
S K&F
5%
Glaxo
0% O pson in
1 Dru g Intl .
C ompan ie s
AC I
Figure-: Shares of Top Ten Pharmaceutical Companies
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11. In Bangladesh, Pharmaceutical market has strong prospects (present annual growth rate is
12%-15%). The pharmaceutical business is stable because it has good cash flow, is
recession proof, and the market for pharmaceutical in Bangladesh is favorable. This
sector is the second largest foreign investment sector in Bangladesh (about 30%). With
the development of healthcare infrastructure and increase of health awareness and the
purchasing capacity of people, this industry is expected to grow at a higher rate in future.
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12. BEXIMCO
PHARMA
3. Company Information
3.1 BEXIMCO Group:
Bangladesh has come a long way since its independence. It has improved key social
indicators and the well being of its people. The Beximco Group of Companies has been
an integral part of this progress. BEXIMCO's philosophy is simple: In identifying
opportunities, it has targeted those industries which the country needs most in order to
progress and to improve living standards. Beximco is also focused on those industries,
which make the most of Bangladesh's Competitive Advantages in the international
market.
As a result of this philosophy, the Beximco Group is today Bangladesh's largest private
sector industrial conglomerate. In the course of its growth, it has created industrial and
management capabilities that will serve the country for generations to come.
Over the years since started it could gain a position to symbolize effective management,
fund generation, and diversification of exploring business opportunities. Today it is one
of the most known names in the country’s business arena.
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13. Beximco practices an appropriate combination to delegate authority and responsibility
that works to motivate employees and yield better performance for the company as a
whole. Recruiting the efficient and potential people, planning to develop human
resources, exploring business opportunity, and information management have
strengthened the effectiveness and image of the group.
It has a turnover of Tk. 16.5 billion and employs 22,000 people. Beximco has 1,52,000
shareholders and contributes to 8% of the market capitalization of Dhaka Stock
Exchange. BEXIMCO's industrial businesses include jute, textiles, basic chemicals,
ceramics, pharmaceuticals and marine foods. BEXIMCO's non-industrial undertakings
are focused on real estate and construction, engineering, media, information technology,
trading and financial services.
It is the creation and expansion of businesses critical to Bangladesh's development,
businesses, which are developed and run by Bangladeshis, businesses that develop
technologies and practices specific to the needs of the country, which is the defining
characteristic of the BEXIMCO story.
The Company is a member enterprise of the Beximco conglomerate. The principal place
of Business is the registered office at 17, Dhanmondi R/A, Road No.2, Dhaka-1205. The
London Branch is situated at 305A Finchley Road (1st floor), London NW36DT, UK and
the Wholly owned subsidiary Beximco USA Ltd. is located at 310 Selviddge Street,
Dalton, Georgia-30722, USA.
Philosophy of BEXIMCO
“We firmly believe that in the final analysis we are accountable to each of the
constituents with whom we interact; namely, our customers, our employees, our
suppliers, our shareholders, and fellow citizens”.
Vision of BEXIMCO
There activity must benefit and add value to the common wealth in our society. Socially
are committed ethical Company.
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14. They are firmly believing that, in the final analysis they are accountable to each of the
constituents with whom they interact, namely: there employees, customer, business
associates, fellow citizens and shareholders.
Mission of BEXIMCO
A mission statement broadly outlines the organization’s future direction and serves as a
guiding concept for what the organization is to do and to become.
“Each of our activities must benefit and add value to the common wealth of our society.
We firmly believe that in the final analysis we are accountable to each of the constituents
with whom we interact namely our employees, our customers, our business associates,
our fellow citizens and shareholders.”
3.2 Group Composition:
Beximco is a group of 34 companies and most of these are being operated through eight
divisions. The divisions namely are as follows:
Divisions Companies
 Padma Textiles Mills Ltd
 Beximco Synthetics Ltd
 Beximco Apparels Ltd
Textile Division  Beximco Knitting Ltd
 Beximco Textiles Ltd
 Beximco Denims Ltd
 Beximco Fashions Ltd
 Beximco Fabrics Ltd
 Beximco Pharmaceuticals Ltd
Chemical Division  Beximco Infusion Ltd
 Pharmatek Chemicals Ltd
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15.  I&I Services Ltd
Real Estate & Construction Division  Beximco Engineering Ltd
 Shinepukur Holdings Ltd
Trading Division  Bangladesh Export Import Ltd
 Beximco Holdings Ltd
 New Dhaka Industries Ltd
Jute Division  Sonali Ansh Ltd
 Esses exports Ltd
Marine Food Division  Beximco Foods Ltd
 Beximco Fisheries Ltd
Media Division  Beximco Media Ltd
 Beximco Softech Ltd
Information Technology Division  Beximco Systems Ltd
 Beximco Computers Ltd
 Bangladesh Online Ltd
Others  Shinepukur Ceramics
 Gammatech Ltd
Table-: Major Companies of Beximco Group
BEXIMCO
BEXIMCO
GROUP
GROUP
Textile
Textile Chemical
Chemical Real Estate
Real Estate Trading
Trading
Division
Division Division
Division Division
Division Division
Division
Marine Food
Marine Food IT
IT Jute
Jute Media
Media
Division
Division Division
Division Division
Division Division
Division
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16. Figure-: Corporate Structure of Beximco Group
Picture-: Different Division of Beximco Group
Source: http://www.beximco.org
The number of companies in each division is different. The companies of Beximco group
in relation to division have been elaborated as follows:
Divisions Companies
Textile 8
Chemical 4
Real Estate & Construction 2
Trading 2
Jute 3
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17. Marine Food 2
Information Technology 4
Media 1
Figure-: Divisions and No. of Companies of Beximco Group
Beximco Chemical Division
Beximco Chemical Division
Beximco
Beximco Beximco
Beximco II & I
&I Pharmatek
Pharmatek
Pharmaceuticals
Pharmaceuticals Infusions
Infusions Services
Services Chemicals
Chemicals
Ltd.
Ltd. Ltd.
Ltd. Ltd.
Ltd. Ltd.
Ltd.
Basic
Basic
Chemicals
Chemicals
Unit
Unit
Fine
Fine
Chemicals
Chemicals
Figure-: Sub Divisions of Beximco Chemical Division
Beximco Pharmaceuticals Ltd. is the leading pharmaceutical company of Bangladesh.
The commissioning of BPL's Basic Chemicals unit in 1990 had established a very
significant milestone in the history of the country's chemical industry. With a record of
the highest growth rate in the history of Bangladesh pharmaceutical industry, BPL has
maintained its leadership position with the consistent growth over the year.
Organizational Structure shown in the next page.
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18. BEXIMCO CHEMICAL DIVISION Deputy Chairman
DATE : March 13, 2005
CHART : Top Level Organogram
CHART NO. : 01 CEO
Director Director Director
Commercial Works Finance
Plan. Executive Director Executive Director Executive Director
GM Production
Marketing Sales Project
Purch. Solid
Pteck QA
MIS
Marketing Marketing & Sales
Manager, BPL Manager
LCO
(Primary Care) BIL
Manager QC
IMFC BIL MDI
CPM CPM & HRD Prod.
I&I BPL Sales BIL Plan. PD
Admin
Liquid,
Admin
FSD Cream &
Medical
Ointment
Regulatory Training Design CPM MRC Sample New Prod. MM BPL BRDD Antibiotic Warehouse Engg. Project Fin. &
Affairs Store Dev. & Pkt. Sales Formulation Acc.
Chart-: Top Level Organogram of Beximco Chemical Division
Source: Human Resource Department (HRD), BPL
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19. 4. Beximco Pharmaceuticals Ltd.
4.1 Beximco Pharmaceuticals Ltd. (BPL):
Beximco Pharmaceuticals Ltd. (BPL) is a member of the Beximco Group – the largest
private sector business conglomerate of Bangladesh. Beximco Pharma, the largest
pharmaceutical as well as bulk drug manufacturer of Bangladesh started its journey back
in 1980 with manufacturing and marketing of licensee products of Bayer AG, Germany
and Upjohn Inc. of USA. The journey continued and barrier after barrier were crossed,
challenges were faced and overcome to transform BPL into what it is at present. It went
for public issue of shares in 1985. The shares of the company are listed with the Dhaka
and Chittagong Stock Exchanges of Bangladesh.
Today, BPL holds 10.0% of share in the domestic market after competing with such
Multinational Giants as Novartis, Hoecsht, Rhone Poulenc Rorer, Glaxo SmithKline,
Fisons etc. The total numbers of share holders are 47,811 and the total numbers of
employees are 1,328. BPL manufactures and markets a high quality and cost-effective
range of about 80 formulations covering all major therapeutic groups.
BPL is the first company to receive National Export Trophy (Gold) in 1994-1995, which
was the very first year of introduction of such award by the government of Bangladesh.
This is the highest national recognition for excellence in Export .Beximco
Pharmaceuticals Ltd. Has also been awarded National Export Trophy (Gold) recently for
two consecutive years 1998-1999 & 1999-2000.It is the only company to be the record 3
times winner of this award for its outstanding export performance.
BPL has transformed its activities, culture, style and philosophy to meet the demands of
the new millennium. Business diversifications that are strategically important for
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20. sustained growth are results of its vision of the future. On completion, this plant would be
one of the most modern plants in this region. Several new bulk drug facilities are being
developed to backward integrate their high volume products. BPL’s commitment to its
customers is to always offer them the best both in product quality and services.
4.2 Major Achievement of BPL:
1976 Registration of the company.
1980 Started manufacturing and marketing of license products of buyer
AG of Germany and Upjohn Inc. of USA.
1983 Launching of BPL’s own products
1985 Listing in the Dhaka Stock Exchange (DSE) as a Public
Limited Company (PLC).
1990 Commissioning of Basic Chemical Unit.
1992 Started export operation with Active Pharmaceutical Ingredients
(APIs).
1993 First export market operation with finished pharmaceutical
products.
1994-1995 Achievement of National Export Trophy (Gold) as the first
pharmaceutical company of the country.
Introduction of 20 new products.
1996 Introduction of sustained release dosage form in the market.
Introduction of 12 new products.
1997 Commissioning of Metered Dose Inhaler (MDI) plant and
introduction of suppository dosage form.
Introduction of 15 new products.
1998 Introduction of Metered Dose Nasal Spray.
Introduction of 13 new products.
1999 UNICEF approval of BPL as an enlisted supplier.
Introduction of 6 new products.
2000 Contract manufacturing agreement of Metered Dose Inhaler (MDI)
with Glaxo SmithKline.
Introduction of 11 new products.
2001 Introduction of small volume parenteral products (Injectables).
Establishment of Analgesic-Anti inflammatory plan.
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21. Introduction of 26 new products.
2002 The first Bangladeshi company to supply pharmaceuticals to
Raffles Hospital- the most prestigious hospital of Singapore.
2003 Introduced Anti-HIV drugs for the first time in Bangladesh.
Diversification into Anti-Cancer therapeutic class.
2005 Only company in Bangladesh to get listed on Alternative
Investment Market (AIM) of London Stock Exchange through
issuance of GDRs.
Construction of state-of-the-art USFDA standard oral solid dosage
facility was completed.
2006 Launched CFC free HFA inhalers for the first time in Bangladesh
Introduction of 11 new products.
2007 New Oral Solid Dosage (OSD) facility was commissioned
according to US FDA standards.
2008 First and only Bangladeshi company receives GMP Clearance from
Therapeutic Goods Administration (TGA) Australia, and Gulf
Central Committee for Drug Registration, for GCC member state.
Technology transfer arrangement to manufacture Roche’s ARV
drug Saquinavir.
2009 Only Bangladeshi company to receive GMP Certification from
ANVISA, Brazil
ION unit was launched for producing injectables, ophtalmics and
nebulizer solutions.
Source: Annual Report of BPL, 2009
4.3 Beximco Pharma’s Different Edge:
• World class manufacturing facilities
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22. • Highest GMP standards
• Outstanding product quality
• Sophisticated formulation technology
• Diversified dosage forms & products
• Significant investment in R&D
• Excellent customer services
• Responsible care for the environment
• Commitment to the people & the society
4.4 Beximco Pharma’s Blockbuster Product:
• Napa Highest selling drug in Bangladesh Pharmaceutical
Market in terms of unit.
• Neoceptin-R Highest selling drug in Bangladesh Pharmaceutical
Market in terms of value.
• Bextrum / Bextrum Gold Emerged as the most admired & highest selling
nutritional supplement in Bangladesh.
• Amdocal Highest selling cardiovascular drug in Bangladesh
Pharmaceutical Market in terms of value.
• Tofen Highest selling oral anti-asthma drug in Bangladesh
Pharmaceutical Market in terms of value.
• Azmasol Highest selling Metered Dose Inhaler brand in
Bangladesh Pharmaceutical Market .
Source: Annual Report of BPL, 2009
4.5 Company Profile at a Glance:
Corporate Headquarters: 17 Dhanmondi R/A, Road No.-2
Dhaka-1205, Bangladesh
Operational Headquarters: 19 Dhanmondi R/A, Road No.-7
Dhaka-1205, Bangladesh
Factory: Auspara, Tongi , Gazipur
Year of Establishment: 1976
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23. Commercial Production: 1980
Status: Public Limited Company
Business Line: Manufacturing and marketing of Pharmaceutical
Finished products and Active Pharmaceutical
Ingredients (APIs)
Overseas Offices And Associates: UK, USA, Pakistan, Myanmar, Singapore, Kenya,
Yemen, Nepal, Czech Republic, Vietnam, Cambodia
and Sri Lanka.
Export Outlets: Bhutan, Georgia, Germany, Hong Kong, Iran, Iraq,
Kenya, Malaysia, Myanmar, Nepal, Pakistan, Russia,
Singapore, Taiwan, Vietnam, Yemen, Czech
Republic, Mozambique, Philippines, Srilanka,
Thailand, Ukrain.
Authorized Capital in Taka: 9,100 million
Paid-up Capital in Taka: 1511.49 million
Turnover (net) in Taka of 2009: 4868.25 million
Number of Shareholders: 80,189 (as on Dec. 31, 2009)
Stock Exchange Listings: Dhaka, Chittagong
Number of Employees: 2,511
Source: Annual Report of BPL, 2009
4.6 Departments of BPL and their Activities:
BPL has highly qualified professional staffs for handling all the condition of the
company. Introduction of various divisions are as follows:
• Central Product Management (CPM) Department
• Purchase Department
• Market Research & Statistical Cell (MRC) Department
• Sales Department
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24. • Human Resource Department
• Finance and Accounts Department
• Sales & Training Department
• Management Information System (MIS) Department
• Multimedia Department
• Medical Services Department (MSD)
• International Marketing Department
• BPL Factory (Works Department)
4.6.1 Central Product Management (CPM):
CPM stands for Central Product Management that takes care of the total marketing of the
products. This department mainly focuses and gives emphasis on the strategies. Major
functions of the CPM Department are:
• Preparing product literature and promotional materials for doctor.
• Determining the packaging pattern, color, size.
• Setting target sales
• Searching about competitor's strengths, weakness and opportunity
• Conducting meeting with field workers
• Issuing budget in consulting with different department
• Setting price for each product
• Collecting statistical data which are relevant to their operation
4.6.2 Purchase Department:
This department interacts directly with the planning, production, and finance department.
The sales department fixes the sales target. According to the demand, Purchase
department starts their operations which are mentioned below in the sequential basis:
 Being ordered from the planning department, the department establishes and
calculates the cost of raw materials necessary.
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25.  Split out the whole year’s demand for raw materials on monthly basis.
 It asks for cash to the finance department.
 Decide which product to purchase from the local market and which to import.
 It arranges for bidding to the suppliers which involves close interaction with
the planning department.
 Along with the planning department, it has to cooperate through the whole
process of purchasing raw materials from available sources.
 This department also involves about the machinery requirements for a specific
production process and their purchasing.
4.6.3 Market Research & Statistical Cell (MRC) Department:
Market Research & Statistical Cell (MRC) Department plays a vital role in looking for
market share of the company in the industry. The whole country is divided into 829
territories under 20 regions. Headed by a manager, 30 Market Research Representatives
(MRR) does the task of market survey. The department discloses the trend of increasing
or decreasing market share by compiling the received data from the market.
Responsibilities of the Market Research & Statistical Cell (MRC) Department:
• Forecasting future market share in response to the data from the market research
representative.
• Recruitment of research persons in consultation with the Human Resource
Department.
• Strategy developing for effective market survey.
• Arrange training for field force.
• Performance evaluation of the market researchers.
• Secret tours are arranged by the department to cross-check the data accuracy of
the market researchers.
4.6.4 Sales Department:
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26. Sales department is forecasting the sales. The major responsibilities of this department
are, preparing the strategies for expense budget through CPM, and generating the demand
in the market through MPE. The main goal of sales department is sales achievement. The
department divided the whole country into 20 regions and assigned 20 Regional Sales
Executives to control sales activities. Main activities of Sales Department are-
• Forecasting future sales in consultation with the CPM department.
• Recruitment of sales force in consultation with the HR department.
• Budget estimation in consultation with the Finance department and with the
Director of Marketing and Commercial.
• Strategy developing for effective sales force.
• Arrange training for field force.
• Handling critical customers.
• Ensuring product availability.
• Donation handling.
• Performance evaluation of the sales force.
4.6.5 Human Resource Department (HRD):
There are two major types of activities have HRD. These are:
i) Administrative functions (maintenance and protocol services)
ii) Human resource related functions
The objectives of Human Resource Department (HRD) are-
• Recruitment policy and procedure
• Conformation policy and procedure
• Placement of employees
• Human Resource Development
• Organizational structure review and modification
• Career planning
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27. • Hiring and firing
• Maintaining and developing employees personal files
• General services
• Safety and security
• Welfare activities for employees
4.6.6 Finance and Accounts Department:
There are three wings under the Finance & Accounts Department. These are-
1. Treasury Accounts
2. Financial Accounting
3. Management Accounting
i) Core functions of Treasury Wings:
• Fund management
• Maintaining banking transactions loan and leases
• Party payments
• Employee payroll
ii) Core functions of Financial Accounting Wings:
• Day to day transaction recording
• Monthly Reports
• Auditing
• Handling Tax related matters
• Maintaining legal compliance
• Maintaining SEC rules
• Preparing Financial Reports
iii) Core functions of Management Accounting Wings:
• Budgeting
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28. • Costing
• Internal Reporting
• Maintaining project’s capital expenditures
4.6.7 Management Information System (MIS) Department:
The MIS Department takes care of total automation of BPL. It supports the hardware and
software network of the company and the factory. This department provides services
through SNA Server, WIN NT Server, and SQL Server. BPL operational headquarters is
linked to the corporate headquarters through fiber optic cable. The department also
established a Wide Area Network (WAN) with the 12 depots around the country. MIS
department develops the access Control & attendance monitoring System internally. The
department maintains the radio-link between the factory and the head-office. The
software section is to work for developing software solutions as per organizational
requirements.
4.6.8 Multimedia Department:
BPL is the only pharmaceutical company that has a Multimedia Department. This is
helping in the product promotion. It designs medical videos for the doctors. The
department also provides audio visual aids to other departments of the company and also
assists to decorate the publications. Major functions of the Multimedia Department are:
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29. • Web page designing.
• Developing multimedia presentation for presentation programs.
• Making videos of conferences, meeting etc.
• Designing the cover page of annual report.
• Making video for products.
• Making video for company.
• Keeping the records of annual meeting and other meeting.
• Storing still photographs and video on medical science.
• Copying literature, promotional tools, and medical in CDs to gift it to doctors.
4.6.9 Medical Services Department (MSD):
This department is a unique department in this industry as BPL established this first ever
in order to create easy relationship through using the professional linkage with the
doctors, the ultimate customer of the pharmaceutical companies. It publishes a special
‘Medical Newsletter’ quarterly and sends the current issues to the enlisted doctors at free
of cost. The newsletter consists of important, recent medical articles. It also provides
news gathered from inter-net and allows free browsing facility for the doctors. Thus it
helps the medical community and at the same time increases the company image outside.
4.6.10 Sales & Training Department:
The Department has the responsibility of providing training to the firm’s employees and
management. The curriculum of training varies from group to group. Training has been
provided through lectures with the assistance of handout, multimedia projector, technical
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30. memorandum and training materials. The department basically offers four types of
training programs.
i) Induction Training Programs for MPEs
ii) Supervisory Management Programs for ASEs
iii) Advanced Supervisory Management
iv) Refresher Training Programs for everyone in sales
4.6.11 International Marketing Department:
In 1991, the company took the challenge to venture into the international arena. At first it
started exporting only formulation products. Then in 1996 this company first started
exporting their finished goods. This department is concerned with the international
promotion and marketing of BPL finished products and basic chemicals. On a continuous
basis, it has to analyze certain criteria of overseas markets:
• Country Profile (population, country size, land area, growth rate, fertility rate,
population break down, etc.)
• Health Status (health manpower, people per doctor, etc.)
• Economic Overview (GDP, size of household, government health expenditure as
percent of GDP, etc.)
• Medical Infrastructure (number of dispensaries & hospitals, no. of beds, etc.)
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31. • Legal Aspects (govt. regulatory affairs, export-import regulations, trade barriers,
registration procedures, etc.)
• Take necessary steps to enter into the market.
4.6.12 BPL Factory (Works Department):
Beximco Factory Complex (a manufacturing plant in Auspara, Tongi, Dhaka) has 7 acres
of land and a total covered space of 160,000 sq. ft. Total manpower in the factory
complex is 450. It has three different types of plants:
1. Formulation Plants for pharmaceutical Products.
2. Raw materials Plants:
 Basic Chemical Plants: Produces raw materials of Antibiotics.
 Pharmatek Chemicals: Produces raw materials of Paracetamol.
3. Beximco Infusions Ltd.: Produces Intravenous (IV) Fluids.
4.6.13 Sponsorships Department:
Sponsorships integrate editorial content and advertising.
 Beximco want to build partnerships that provide useful content.
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32.  Sponsor disclosure is an important issue for e-marketers.
 Beximco in 2011 World Cup Cricket official sponsor
 Beximco try to do sponsor in Bangladesh Indoor all games.
5. E-Marketing in Bangladesh and
Beximco
5.1 The Existing Situation and Potential of E-marketing in
Bangladesh:
Internet services are presently available in Bangladesh. Its usage for e-commerce by the
Bangladeshi producers to export as well as to access inputs will be dependent on their
willingness and ability to use this medium as well as that of the buyers of final products
and the sellers of intermediate goods and services.
Figure: The Three Dimensions of E-Commerce
Source: International Telecommunications Union, Millennium, October 1999, Geneva
Figure 1 depicts the three dimensions of e-commerce. Business-to-Consumers (B2C)
ecommerce is practically non-existent within Bangladesh, while a very limited level of
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33. Business-to-Business (B2B) and Business-to-Government (B2G) transactions exists. The
potential for use of e-commerce by Bangladeshi consumers and businesses with foreign
firms is much brighter, and can play an important role in boosting the country’s exports.
A significant volume of B2G is also possible, as the government remains the biggest
spender.
5.2 Supportive Framework in Beximco:
Electronic commerce generates competition, revenue and profit. It also creates flows of
goods and services and hence traffic. Subsequently, it can act as an incentive for investors
to finance locally available infrastructures, connectivity and bandwidth. However, before
this ‘virtuous circle’ can be initiated, the ‘magic triangle’ -- access, trust and know-how –
an essential precondition for the start-up and expansion of electronic commerce, must be
firmly established between both the public and the private partners involved. This magic
triangle can only be set in place if it receives the full and active support from the various
stakeholders.
Figure: The Magic Triangle of E-Commerce
Source: International Telecommunications Union, Millennium, October 1999. Geneva
Access to e-technology such as the Internet is a necessary but not a sufficient condition
for the development and growth of e-commerce. The popularity of e-commerce in any
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34. economy will be dependent not only on the cost, efficiency and reliability of Internet
technology but also on the supportive framework that includes legal and financial
infrastructural support as well as support in the form of technical expertise (know-how).
A weak and inefficient supportive environment can damage the trust among partners and
will stranglehold the possibilities and attractiveness of using technology for business and
commerce.
Source: http://www.alibaba.com/member/mrh2128.html
Beximco Pharma, a leading medicine manufacturer, now targets expansion of its export
markets to Australia and North American countries and also in China market.
Gulf Cooperation Council (GCC), a forum of 10 Middle Eastern countries, and
Therapeutic Goods Administration (TGA) in Australia have already accredited the
company in 2008 for exports. The combined pharmaceutical market of GCC is valued at
more than $4 billion. Currently, the multinational companies in Europe and the US hold
the lion’s share in the GCC market.
Beximco Pharma Director Zakaria S Chowdhury told, “A team from Brazil has inspected
our plant recently and we hope we will be certified for export of medicines there in a
month.” “We await accreditation from the UK administration also,” he added.
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35. Presently, the company exports to 14 Asian, five African, four Pacific and two Middle
Eastern countries. Over 200 small, medium and large local and multinational companies
meet around 97 percent of the Tk 5,000 crore domestic market demands.
According to industry people, some of these companies exported medicines worth nearly
Tk 300 crore in 2008, which were Tk 200 crore and Tk 150 crore in 2007 and 2006
respectively. The country now exports a wide range of pharmaceutical products covering
all major therapeutic classes and dosage forms to around 60 countries, including some
developed markets. High-tech specialised products like inhalers, suppositories, nasal
sprays, indictable and infusions are also in the export basket.
Novartis, Beximco, Square Pharmaceuticals, Aventis, Eskayef, Popular Pharmaceuticals,
ACI and Acme are some of the leading exporters. A World Trade Organisation facility
has paved the way for Bangladeshi companies to grab the global medicine markets.
Bangladesh will be able to continue with the patented products up to December 2015 as
per trade related intellectual property rights. Pharmaceutical industries are now legally
allowed to manufacture and sell generic versions of on-patent pharmaceutical products
for domestic consumption and exports to other LDCs. Bangladesh is a country among 50
least developed countries that is self-sufficient in pharmaceuticals, the industry people
claim. But manufacturers must strictly comply with the standards for export of medicines
in respective countries. Beximco officials said the company’s export figure would
increase manifold in the years to come. “We hope to take Beximco Pharma’s export
figure to Tk 1,000 crore by 2013 from the present national figure of Tk 300 crore,” said
Chowdhury. Beximco is diversifying to parental form of dosage of ophthalmology and
nebuliser, he added. A good number of companies, including Square Pharma, Renata and
Eskayef, have won accreditation from the Medicines and Healthcare Products Regulatory
Agency (MHRA) of the United Kingdom.
5.3 Legislation Relating to Trade:
Area Legislation
Custom Duties Customs Act, 1969
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36. Import Regulations Imports and Export (Control) Act, 1950;
Customs Act, 1969; review, Appeal and
Revision Order, 1977;
Importers, Exporters and Indentors
(Registration) Order,n1981; Licenses and
Permit Fees Order, 1985
Customs Valuation Amendments introduced to the Customs
Act, 1969, in 1997
Pre-shipment Inspection Amendments introduced to the Customs
Act, 1969, in 1998
Rules of Origin Standard Rules of Origin, 1977
Standards Imports and Export (Control) Act, 1950
Sanitary and Phytosanitary Measures Imports and Export (Control) Act, 1950
Marketing and Labeling Imports and Export (Control) Act, 1950
Anti-Dumping Measures Amendments introduced to the Customs
Act, 1969, in 1995
Countervailing Measures Amendments introduced to the Customs
Act, 1969, in 1995
Safeguard Measures Amendments introduced to the Customs
Act, 1969, in 1997
Pricing and Marketing Arrangements Consumer Index
Export Regulations Import and Export (Control) Act, 1950;
Customs Act, 1969
Government Procurement No legislation
Competition Law No legislation
Intellectual Property Rights Patents and Design Act, 1919; Copyright
Ordinance, 1962; Trade Markets Act 1940
Foreign Investment Foreign Investment (Promotion and
Protection) Act, 1980
Foreign Exchange Foreign Exchange (Regulation) Act, 1947
Banking Service Banking Companies Act, 1991
Insurance Services Insurance Act, 1938; Insurance
Corporations Act, 1973; Insurance Rules,
1953
Telecommunications Services Details not available from the authorities
Air Transport Services Details not available from the authorities
Maritime Transport Service Merchant Shipping Ordinance, 1993;
Bangladesh Flag Vessel (Protection)
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37. Ordinance, 1982
Source: World Trade Organization, 2000. Trade Policy Review Bangladesh.
5.4 Acts and Laws Related to Consumer Protection:
1. Control of Essential Commodities Act 1956
2. Pure Food Ordinance 1959
3. Price and Distribution of Essential Commodities Ordinance 1970
4. Bangladesh Drugs Control Ordinance 1982
5. Breast Milk Substitute (Regulation of Marketing) Ordinance 1984
6. Tobacco Goods Marketing (Control) Act 1988
7. Penal Code 1860
8. Special Powers Act 1974
9. Dangerous Drugs Act 1930
10. Trade Mark Act 1940
11. Standards of Weights and Measures Ordinance 1982
6. MRC Department of BPL
6.1 Market Research & Statistical Cell (MRC) Department:
In this competitive business market “Market Research” is a vital part of any type of
company, especially who have the variety range of product (like-Medicine, Cosmetics,
Consumer Goods, etc.). Market Research (MR) is necessary for making any type of sense
about the market and which saves the time, resource, wastage of money. MR helps to
know the condition of the existing product, helps to set the further steps, helps to achieve
the objective and target of the company which is set by the top management, helps to
know the condition of the competitors, market share and market growth rate. Through
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38. Market Research (MR), company can keep the record of each and every product and also
some other factors like which product is earning more value for the company and which
one is not, which one the number one product by unit or which one the highest selling
drug in different market (like- Antibiotic) and also the performance of the Medical
Representatives (MRs). And helps to identify that product which one needs a large
promotion to increase its sales. MR Dept. keeps not only the product’s record also keeps
the doctor’s record, which doctor helps to earn more revenue by prescribing medicines of
Beximco Pharma.
In BPL, MRC Department was established in 1987 with one Sr. Product Officer and five
Market Research Representatives (MRR) under CPM Department. MRC Dept. divided
the whole country into 20 zones to make the research work effectively and accurately.
MRC Dept. has a research team which controlled by the MRC Dept. which includes
Senior MR Officer, MR Officer, Assistant MR Officer and MR Supervisor (Office). And
the Manager of MRC Dept. is responsible for the whole activities of department. In this
department there are 39 employees working together.
MOTTO of MRC Dept.
“Find anything, Tell it like it is”
Designation No. of Employees
Manager 1
Sr. MR Officer 1
MR Officer 3
Asst. MR Officer 2
MR Supervisor (Office) 2
MR Representative 30
Total 39
Table-: Total Manpower Strength of MRC Dept.
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39. Organogram of MRC Dept.
Manager
Manager
Sr. MR Officer
Sr. MR Officer
MR Officer MR Officer MR Officer
MR Officer MR Officer MR Officer
Asst. MR Asst. MR
Asst. MR Asst. MR
Officer Officer
Officer Officer
MR MR
MR MR
Supervisor Supervisor
Supervisor Figure-: Organogram of MRC Dept. Supervisor
6.2 Activities of MRC Department:
There are some specific jobs that are done by the MRC Dept. on regular basis are given
below:
1. Prepare statement of Prescription, Slip, OTC and also Product manual movement
report of BPL, Formulation and Infusion.
2. Prepare required product wise report of 12 BPL region and region of Formulation
and Infusion.
3. Prepare comparison of BPL, Formulation and Infusion with the competitors.
4. Prepare national product wise report of BPL, Formulation and Infusion.
5. Prepare monthly report.
6. Prepare monthly survey report in brief.
7. Prepare brand loyal doctors survey report of Formulation.
8. Special survey report on some potential doctors given time to time by CPM.
9. Company wise survey report every month.
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40. 10. Prepare the report of yearly average percentage comparison of different company.
11. Monthly territory wise percentage of BPL, Formulation and Infusion.
12. Prepare combined percentage (BPL & Formulation) every month.
13. Prepare the monthly tour plan & short tour plan
14. Collect the data from the field through MRR
Responsibilities of Market Research Representatives (MRRs):
♦ Visiting the chemist shops, hospitals and clinics according to the tour plan to
checkout the prescriptions, slips, and OTC drugs.
♦ Prepare the summary based on the day long collected data.
♦ Send those summaries to the MRC Dept. by mail regularly.
Product knowledge is most necessary for the Market Research Representatives (MRRs).
They visit the 829 territories around the year and need 2-3 days visit for a territory.
6.3 SWOT Analysis of MRC Department:
Strengths:
• Well trained MRRs
• Well structured management
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41. • Well structured & systematic survey method
• Realistic & up to date marketing information provider
Weaknesses:
• Do not use any type of data analyzing software
• Little bit biased result
• Not adequate number of MRRs
Opportunity:
• Can use some data analyzing software
Threat:
• Can not avoid the biased information to collect
6.4 Industry Analysis:
Bangladesh Pharmaceutical Market is one of the very much complex and competitive
market. Here almost 250 licensed local and multinational companies run their business
activities. Pharma industry is one of the fastest growing sectors in Bangladesh. In the year
2005, the size of pharma market of Bangladesh is estimated to be Tk. 3,000 crore with an
annual growth rate of about 12%.
At present, Bangladesh produces about 97% of its domestic needs and has turned to be a
medicine exporting country within a short span of time. Now more than 95% of the local
demand of medical products is met by the local production. Bangladesh is placed in such
a unique position that it can bring revolution in its pharmaceutical sector if the country
could capitalize the opportunities optimally. Both Research and Marketing dept. can
make a huge impression for the enhancement of the pharma company. By providing valid
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42. and most important market data to the Marketing dept., Market Research dept. assists to
take crucial steps to grab those best opportunities as much as possible.
7. E-marketing Advantage and Disadvantage
The importance of e-marketing through its various forms is constantly growing and
evolving in today’s business world, which is becoming increasingly digital and tech-
savvy. The benefits of internet marketing are endless and continue to grow. As the times
change, people have come to expect the existence of this form of marketing, making it
increasingly crucial to deliver on those needs to foster long-term success. E-marketing
gives businesses of any size access to the mass market at an affordable price and, unlike
TV or print advertising, it allows truly personalised marketing.
Advantage in E-marketing:
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43. • Global reach - a website allows you to find new markets and trade globally for
only a small investment.
• Lower cost - a properly planned and effectively targeted e-marketing campaign
can reach the right customers at a much lower cost than traditional marketing
methods.
• Track able, measurable results - web analytics and other online metric tools
make it easier to establish how effective your campaign has been. You can obtain
detailed information about how customers use your website or respond to your
advertising.
• Personalisation - if your customer database is linked to your website, then
whenever someone visits the site, you can greet them with targeted offers. The
more they buy from you, the more you can refine your customer profile and
market effectively to them.
• Openness - by having a social media presence and managing it carefully, you can
build customer loyalty and create a reputation for being easy to engage with.
• Social currency - e-marketing lets you create engaging campaigns using different
types of rich media. On the internet these campaigns can gain social currency -
being passed from user to user and becoming viral.
• Improved conversion rates - if you have a website, then your customers are only
ever a few clicks away from completing a purchase. Unlike other media which
require people to get up and make a phone call, or go to a shop, e-marketing can
be seamless and immediate.
Disadvantage in E-marketing:
• Undelivered Email: It may be difficult to get email through a spam filter as many
companies use e-mail marketing to communicate with existing customers, but
many other companies send unsolicited bulk e-mail.
• Email Overload: Even when an email gets through to the consumer, there is so
much email that needs to be looked at sometimes it is difficult for the individual
to distinguish between solicited and unsolicited email, as well as have time to read
through the email.
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44. • Render ability: Difficulty of displaying the creative as intended within the in-box
of different email reading systems.
• Email response decay: Email recipients are most responsive when they first
subscribe to an email. It is difficult to keep them engaged. Soon, the opted in for
newsletter may be seen as an irritant.
• Communications preferences: Recipients will have different preferences for
email offers, content and frequency which affect engagement and response. These
have to be managed through communications preferences.
• Resources: Additional people and technology resources are required to deliver a
sophisticated email newsletter that engages the consumer.
8. Conclusion
The business world has drastically changed throughout the years. Some of the most
important changes are the marketing efforts that drive it, allowing businesses to reach
their goals if they are done right. The transition that has faced the most change, however,
is undoubtedly the world of internet marketing. Throughout the years, businesses,
consumers, marketers, and nearly every member of society has felt the effects of this
evolving method in fulfilling customer needs. By utilizing this resource, businesses have
welcomed many new opportunities that couldn’t have existed without it. Furthermore,
consumers and suppliers in this “digital” age have come to expect these options and are
in control of the market. Using the internet and other E-marketing methods is now critical
in reaching a target market effectively, as well as doing business overall. Internet
marketing is crucial to success because it covers such a large span while upholding a
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45. mass appeal. As today’s business environment continues to change, it is essential, if not
expected and required, to utilize comprehensive internet marketing to attain or maintain a
competitive edge.
Pharmaceutical sector is one of the fast growing and most developed scientific sector in
Bangladesh. There are about 250 registered pharmaceutical companies operating in
Bangladesh pharmaceutical industry. The market is highly competitive. And it is really
difficult to get response from the market. Company depends on those physicians’
prescription, because doctors are prescribing some medicines and accordingly patients
follows the doctor’s instruction. Sometime chemist shops also influences the patients to
take medicine as their choice. So, the pharmaceutical companies have to know about their
target customers (doctors, chemist shops) behavior and market condition to develop
marketing strategies based on this situation.
In this situation E-marketing is very important in this sector. So Beximco Pharma select
E-marketing and firstly in new market as like China market.
9. Bibliography
• Books:
• Principles of Marketing
Phillip Kotler
9th Edition
• E-marketing
Judy Strauss and Raymond Frost
5rd Edition
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46. • Marketing Research
Naresh K. Malhotra
4th Edition
• Published Information:
• Annual Report of Beximco Pharmaceuticals Ltd. (2002, 2003 & 2009)
• Export Brochure of Beximco Pharmaceuticals Ltd.
• Teacher Lecture Sheet
• Websites:
• www.beximco.org
• www.alibaba.com/member/mrh2128.html
• www.beximco-pharma.com
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