1.1 INTRODUCTION

Even though there are a number of pharmaceutical companies in Bangladesh, most

people do not get the proper medication here. For some particular treatment people

still need to depend on the medicine imported from outside of the country. But it is

really great news that some companies like Square Pharmaceuticals, Beximco

Pharmaceuticals, ACME Laboratories Ltd. etc. are doing their best to fulfill the

general needs of the medicine. And in this respect the pharmaceutical companies can

be given the status "success". But still there are some lacking of professionalism in

the pharmaceutical business. Square Pharmaceuticals is one of the best

pharmaceutical companies of Bangladesh.

1.2 Origin of the report

In order to fulfill the partial requirement of the BBA program, my respected teacher

Liza Khanam, lecturer Department of Business Administration, University of NUB

assigned me to study Business level strategy of Square Pharmaceuticals Ltd. followed

by a detail report.

1.3 Scope of this report

The scope of the report was based on the annual reports & web site, input from

interviews of executives of the Square. To analyze the situation in question, I worked

on focusing on Square Pharmaceuticals Ltd. Analyzing their objectives, market

strategies, Market situations, product mixes, etc. The analysis was based on the

exposed and available information only.

In-depth data were not always available on-demand due to some unavailable reasons.

SWOT analysis of the company has been done. Some recommendations also have

been worked out to improve the current situations for the company.

1.4 Objective of the study

1

The specific objectives aimed for this report is to conceptualize the current Business

level strategy of SPL and to identify and suggest scopes of improvement in current

strategy.

1.5 Methodology

Information used to prepare this report has been collected from both the primary and

secondary sources which together provided more comprehensive information.

1.6 Collection of the data

An open discussion method was followed to gather primary information by informally

interviewing the various executives of the company. Participants were purposefully

selected as they commonly engaged in marketing directly or indirectly. Observations

were also used to collect primary data while working in different desks.

The secondary data was accumulated from two sources- a. internal and b. external.

The former sources were annual reports, periodicals, articles and brochures published

by the company. But in the later case, journals, research papers and articles from

various online sources.

1.7 Limitations of the Study

This report suffered from several limitations:

• The most important of them was “time constraint”. Time was not adequate

complete the study more perfectly.

• Another important limitation was “inaccessibility in many section of the

organization”. I confronted difficulties in getting appointment from the desired

respondents as well as appropriate response from the selected respondents due to

being confidential for the company.

• This report also suffered from inadequate secondary information.

• This report’s factual accuracy may be compromised due to out-of-date

information.

• The findings may not be generalized to the SPL as a whole.

2.1 Background:

2

SQUARE Pharmaceuticals Limited (SPL) is the largest pharmaceutical company in

Bangladesh and is leading the Pharmaceuticals sector from the very beginning. It has

been continuously in the 1st position among all national and multinational companies

since 1985. It was established in 1958 and converted into a public limited company in

1991. The sales turnover of SPL was more than Taka 7.5 Billion (US$ 107.91

million) with about 16.92% market share having a growth rate of about 23.17%.

Square Pharmaceuticals Limited is an organization with equal emphasis on

Leadership, Technology, Quality and Passion. Square Pharmaceuticals Ltd. is the

leading branded generic pharmaceutical manufacturer in Bangladesh producing

quality essential and other ethical drugs and medicines.

SQUARE today symbolizes a name - a state of mind. But its journey to the growth

and prosperity has been no bed of roses. From the inception in 1958, it has today

burgeoned into one of the top line conglomerates in Bangladesh. Square

Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position

in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to

becoming a high performance global player.

2.2 Management Apparatusmanagement Apparatus

BOARD OF DIRECTORS

Mr. Samson H. Chowdhury ChairmanMr. Samuel S. Chowdhury Vice ChairmanMr. Tapan Chowdhury Managing DirectorDr. Kazi Harunar Rashid DirectorMr. M. Sekander Ali Independent DirectorMs. Ratna Patra DirectorMr. Anjan Chowdhury DirectorMr. Kazi Iqbal Harun DirectorMr. K. M Saiful Islam Director

AUDIT COMMITTEE

Mr. M. Sekander Ali ChairmanMr. Samuel S. Chowdhury MemberMr. Kazi Iqbal Harun Member

MANAGEMENT COMMITTEE

3

Mr. Tapan Chowdhury ChairmanMr. K M Saiful Islam MemberMr. Parvez Hashim MemberMr. M. Ashiqul Hoque Chawdhury MemberMr. Muhammadul Haque MemberMr. Md. Kabir Reza, FCMA Member

SENIOR CORPORATE OFFICIALS

Mr. Md. Kabir Reza, FCMA Chief Financial OfficerMr. Khandaker Habibuzzaman, MBA, ACS Company SecretaryMd. Majibur Rahman Bhuiyan, M.Com Head of Internal Audit

COMPANY SECRETARY

Mr. Khandaker Habibuzzaman, MBA, ACS

AUDITORS

M/s. Chowdhury Bhattacharjee & Co.Chartered Accountants47/2, Indira RoadDhaka-1215, Bangladesh

4

LEGAL ADVISORS

Mr. Rafique-ul Huq, Bar-at-Law47/1, Purana Paltan, Dhaka

Mr. Rokanuddin Mahmud, Bar-at-LawWalsow Tower21-23, Kazi Nazrul Islam Avenue, Dhaka

Mr. M. Moniruzzaman Khan, Bar-at-LawCity Heart67, Naya Paltan, V.I.P Road, Dhaka

Ms. Nihad Kabir, Bar-at-LawHouse No. 62, Road No. 11ADhanmondi, Dhaka

BANKERS Janata Bank Ltd.1, Dilkusha C.A, Dhaka

Citibank N.A109, Gulshan Avenue, Gulshan, Dhaka

Standard Chartered Bank67, Gulshan Avenue, Gulshan, Dhaka

Commercial Bank of Ceylon Ltd.2, Dilkusha, C.A, Dhaka

Eastern Bank Ltd.31, North C.A, Gulshan Circle-2, Dhaka

Mercantile Bank Ltd.61, Dilkusha C.A, Dhaka

Bank Alfalah Ltd.5, Rajuk Avenue, Motijheel, Dhaka

Shahjalal Islami Bank Ltd.House-6, Road-32, Gulshan Avenue, Dhaka

Trust Bank Ltd.110, Gulshan Avenue, DhakaBank Asia Ltd.82, Mohakhali C.A, Dhaka

INSURERS

Pioneer Insurance Co. Ltd.10, Dilkusha C.A, Dhaka

Pragati Insurance Co. Ltd.20-21, Kawran Bazar, Dhaka

LISTING

Dhaka Stock Exchange Ltd.Chittagong Stock Exchange Ltd.

REGISTERED OFFICE

"Square Centre"48, Mohakhali C.ADhaka-1212, BangladeshPhone: 8833047-56, 8859007www.squarepharma.com.bd

FACTORIES

Square Road, Salgaria, Pabna, Bangladesh

Board Ghar BazarKaliakoir, Gazipur, Bangladesh.

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2.3 CORPORATE HISTORY

Year of establishment(Initially as a partnership)

: 1958

Incorporated as a private Limited Company

: 1964

Technical collaboration agreement with Janssen Pharmaceuticals of Belgium (a subsidiary of Jhonson & Jhonson International Ltd.)

: 1975

Technical collaboration agreement with F. Haffman-La Rache & co. Ltd.

: 1984

Converted into Public Limited company : 1991

Initially Public Offering (IPO) : 1994

Stock Exchange listing : 1995

Agreement with M/s Bovis Tanvec Ltd. Of UK for Implementation of Dhaka Plant

: 1996

Awarded ISO-9001 Certificates : 1998

Awarded UK-MHRA Certificates : 2007

Business lines : Manufacturing & Marketing of Pharmaceutical finished Products, Basic Chemicals, Agro vet products & pesticide products.

Authorized Capital : TK. 5,000 millionPaid-up Capital : TK. 894.24 million

Number of Employees : 3,564

Subsidiary Company : Square Spinning Ltd.Square Cephalosporin’s Ltd.Square Biotech’s Ltd.

Associate Company : Square Textile Ltd.Square Knit Fabrics Ltd.Square Fashions Ltd.Square Hospitals Ltd.

2.4 Vision

6

Square views business as a means to the material and social wellbeing of the investors,

employees and the society at large, leading to accretion of wealth through financial and

moral gains as a part of the process of the human civilization.

2.5 Mission

Its Mission is to produce and provide quality & innovative healthcare relief for people,

maintain stringently ethical standard in business operation also ensuring benefit to the

shareholders, stakeholders and the society at large.

2.6 Objective

Its objectives are to conduct transparent business operation based on market mechanism

within the legal & social frame work with aims to attain the mission reflected by its vision.

2.7 Corporate Focus

Its vision, mission and objectives are to emphasize on the quality of product, process and

services leading to growth of the company imbibed with good governance practices.

2.8 Management Philosophy

The Philosophies as have been adopted by Square Pharmaceuticals Ltd. are as follows:

Bangladesh should support and respect the protection of internationally proclaimed

human rights within their sphere of influence; and

Make sure that they are not complicit in human rights abuses.

Businesses should uphold the freedom of association and the effective recognition

of the right to collective bargaining.

The elimination of all forms of forced and compulsory labor.

The effective abolition of child labor and

Eliminate discrimination in respect of employment and occupation.

Business should support a precautionary approach to environmental challenge.

Undertake initiatives to promote greater environmental responsibility; and

Encourage the development and diffusion of environmentally friendly technologies

Business should work against corruption in all its forms, including extortion and

bribery.

Square strives, above all, for top quality health care products at the least cost

reaching the lowest rungs of the economic class of people in the country. Square

values our social obligations.

Square owes our shareholders and strive for protection of their capital as well as

ensure highest return and growth of their assets.

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Square strives for equality between sexes, races, religions and regions in all spheres

of our operation without any discriminatory treatment.

Square strives for an environment free from pollution and poisoning.

Square strives for the achievement of millennium development goals for the human

civilization.

Square Pharmaceuticals Ltd. is follows Integrated Low cost/Differentiated Business level

strategy.

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3.1 Firms using an Integrated Strategy may:

Adapt more quickly

Learn new skills and technologies.

Utilize flexible Manufacturing Systems to create differentiated products at low

costs.

Leverage core competencies through Information Networks across multiple

business units.

Utilize Total Quality Management (TQM) to create high quality differentiated

products which simultaneously driving down costs.[[[[

Advantages of Integrated Strategy

A Firm that successfully uses an integrated cost leadership/differentiation strategy

should be in a better position to:

Adapt quickly to environmental changes

Learn new skills and technologies more quickly

Effectively leverage its core competencies while competing against its

rivals.

Disadvantages of Integrated Low cost/differentiated Strategy

Recognize that the Integrated Low cost/Differentiation business level strategy

involves a Compromise.

The risk is that the firm may become “Stuck in the Middle” lacking a strong

commitment to or expertise whit either type of generic strategy.

3.2 Market Expansion Strategy of SPL

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MARKETING MIX

Before going into deeper, we should define the present marketing mix of SPL which is figured

out in the following model:

a) Market Segments:

The main basis of segmenting market in Bangladesh is therapeutic drug i.e. NASAL

DROPS, ANTIBIOTIC etc. Presently SPL has the largest product portfolio to serve as

many segments as possible. It consistently strives to make it larger. Its present

segments are identified in the product table.

b) Target Customers:Rather than the consumer of the medicine, the key customers for SPL have been the

physician. Physicians are considered here as opinion leader. The major innovative

drugs can not be purchased without a prescription provided by a doctor. SPL’s main

selling task has been directed therefore, not at the user, but at physicians. Doctors and

physicians are segmented on the basis of its therapeutic drug segment. As for example,

NASAL DROPS products are communicated at E.N.T specialists. Therefore, if SPL

has NASAL DROPS product line, then E.N.T specialists are treated its target

customers. Besides this, general physicians are also its target customers.

c) Value Proposition:

SPL has presently been offering its products to its market segment with the value

Product(Medicine)

Price(All most regulated)

Promotion(Personal Selling through relationship)

Place(Domestic &

foreign)

Target Customer(Doctors & Physicians)

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proposition “Utmost quality, excellent efficacy”.

d) Product:

SPL develops, produces, and markets drugs of different therapeutic groups licensed for use as medications.

The Bangladeshi Pharmaceutical Market is primarily a generic market producing both

patented and off-patented products. This is popularly known as Branded Generic Market

since any manufacturer can produce the same molecule (either patented or off-patented)

and market it in different brand names. SPL is not beyond this scenario. It produces off-

patented molecule and market it in its own brand.

The product list according to generic segment can be found in appendix part.

e) Price:

Drug pricing is heavily dependent on the National Drug Policy adopted by directorate of

Drug Administration of Bangladesh Govt. agencies act as a countervailing power in

pricing pharmaceuticals.

As per the NDA 2005, regulatory authority pursuing “Rational pricing” of drugs to

ensure essential drugs available to the end-users at affordable prices. On the basis of that

policy, SPL has been pursuing two different kinds of pricing policy-

a. For OTC product, all most similar price as the competitors’

b. For POM product, competitive pricing.

There are also few exceptions. If SPL introduces a product first in the market, it charges

little bit higher price than its competitors, but within the rules and regulations of Drug

Administration.

f) Place:

SPL has the strongest domestic distribution network for smoothing distribution of

medicines to all parts of the country. Currently it has 15 depots all over the country. Those

are situated at Dhaka, Pabna, Bogra, Rangpur, Khulna, Barisal, Comilla, Mymensingh,

Chittagong, Noakhali, Sylhet, Tangail, Rajshahi, Faridpur and Naryanganj. It uses own

transport system to deliver its product to the stockist and retailer.

SPL also exports its products to 31 countries:

Present export market covers

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Myanmar Papua NewGuinea

Comoros Island Bhutan

Tanzania Nepal Gambia Niger TajikistanAfghanistan Mauritius Sierra Leone Macau

countriesRwanda

Libya Malawi Kosovo KenyaIraq Sri Lanka Somalia YemenCambodia Ukraine Uzbekistan VietnamMozambique Benin Botswana Ghana

g) Promotion:

Public advertisement for medicine, especially POM drug is strictly prohibited in

Bangladesh. But it may be done for OTC medicine to some extent. However, no pharmacy

company in Bangladesh is engaged in such advertisement.

SPL heavily depends on personal selling through rapport building and maintaining. A team

of sales representatives, called MPC have been employed to meet with physicians to

explain the merits, demerits, indication, contraindications, etc. of the medicine with the

help of literature, brochure, pad, booklet, leaflet, gift item etc. That is, the Medical

Promotion Officers promote the companies product to doctors front with the help of

different promotional materials. If a new drug is to be more expensive, then it needs to

demonstrate that its superior performance is worth it.

3.3 Marketing Problems of SPL

After analyzing its present market expansion strategies the following problems have been

found in it:

1) It seems that SPL pursuing “prescription for profit” strategy for market penetration. It

is partially good, but may not be perfect as the completion is very hard. There are some

other parties who have the scope and ability to act as “opinion leader” and to motivate the

buyer. These potential “opinion leaders” are remaining unexploited. SPL has enough

resources to let them add value to the company.

2) I didn’t find SPL adopting any strategy to create brand loyalty. But client is more

profitable than customer in terms of both transaction as well as positive word-of-mouth

communication. He himself can be an opinion leader.

3) At present, SPL gets only 20% raw materials from its API plant and the rest are to be

imported. It increases product cost.

4) Market should not be segmented only on the therapeutic drug basis.

5) Holding the heaviest product portfolio should not be the ultimate goal at all. Emphasis

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must be given on how early a new product can be launched in the market place than the

competitor.

3.4 PRESENT MARKET POSITION

3.5 FINANCIAL RESULTS[

The operating financial results of the Company for the year 2008-2009 as compared to previous

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year are summarized hereunder:

PRESENT FINANCIAL POSITION

Capital Resources

ASSETS 31-03-2009 31-03-2008

Non-Current Assets: 8,291,290,984 6,804,429,292

Property, Plant and Equipment-Carrying Value

4,008,432,171 3,531,003,509

Capital Work-in-Process 591,114,649 481,239,419

Investment Long term(at cost)

3,611,744,164 2,792,186,364

Current Assets: 4,411,836,436 3,682,510,712

Inventories 2,026,736,322 1,544,191,798

Trade Debtors 360,245,646 322,864,637

Advances, Deposits & Repayments

288,806,440 236,455,395

Investment in Marketable Securities(at cost)

20,250,000 20,250,000

Short Term Loan 1,510,502,334 1,418,893,703

Cash & Cash Equivalents 205,295,694 139,855,179

Total Assets 12,703,127,420 10,486,940,004

BUSINESS PORTFOLIO

Subsidiary Operation Long-term investment Investment In Marketable

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SecuritiesSquare Spinning Ltd. Square Textiles Ltd. Shares Pioneer Insurance

CompanySquare Cephalosporin’s

Ltd.United Hospital Ltd.

Square Biotech’s Ltd. National Housing Finance and Investment Ltd.Central Depository

Bangladesh Ltd.Square Hospitals Ltd.

Square Knit Fabrics Ltd.

Square Fashions Ltd.

Square Informatics’ Ltd.

BALANCE SHEET

As at 31 March 2009 31-03-09 31-03-08ASSETS:

Non-Current Assets: 9,407,730,001 8,291,290,984Property, Plant and Equipment-Carrying Value 4,899,679,832 4,088,432,171Capital Work-in-Progress --- 591,114,649Investment - Long Term (at Cost) 4,508,050,169 3,611,744,164

Current Assets: 3,843,512,855 4,411,836,436Inventories 2,098,755,231 2,026,736,322Trade Debtors 477,562,002 360,245,646Advances, Deposits and Prepayments 260,330,162 288,806,440Investment in Marketable Securities (at Cost) 20,250,000 20,250,000Short Term Loan 693,157,720 1,510,502,334Cash and Cash Equivalents 293,457,740 205,295,694TOTAL ASSETS (TK.) 13,251,242,856 12,703,127,420

SHAREHOLDERS' EQUITY AND LIABILITIES:

Shareholders' Equity: 9,949,397,634 8,417,040,705Share Capital 1,207,224,000 894,240,000Share Premium 2,035,465,000 2,035,465,000General Reserve 105,878,200 105,878,200Tax Holiday Reserve 1,101,935,237 1,101,935,237Retained Earnings 5,498,895,197 4,279,522,268

Non-Current Liabilities: 660,976,668 785,241,612Long Term Loans – Secured 449,757,608 602,584,615Deferred Tax Liability 211,219,060 182,656,997

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Current Liabilities: 2,640,868,554 3,500,845,103Short Term Bank Loans 1,534,345,782 2,669,693,184Long Term Loans - Current Portion 295,590,601 297,002,646Trade Creditors 124,222,699 100,953,258Liabilities for Expenses 69,573,702 32,290,235Liabilities for Other Finance 617,135,770 400,905,780

TOTAL SHAREHOLDERS EQUITY AND LIABILITIES (Tk) 13,251,242,856 12,703,127,420

INCOME STATEMENT

For the Year Ended 31 March 2009

2008-2009 2007-2008

GROSS TURNOVER 11,363,597,928 9,565,715,902Less: Value Added Tax 1,545,801,360 1,307,872,163

____________ ____________NET TURNOVER 9,820,796,568 8,257,843,739COST OF GOODS SOLD (5,672,565,973) (4,856,061,933) _____________ ____________GROSS PROFIT 4,148,230,595 3,401,781,806

Operating Expenses: (1,779,793,368) (1,692,475,988)

Selling and Distribution Expenses (1,319,362,317) (1,220,979,268)Administrative Expenses (460,431,051) (471,496,720)

PROFIT FROM OPERATIONS 2,368,437,227 1,709,305,818Other Income 665,520,915 604,628,504Financial Expenses (397,135,963) (351,868,423)NET PROFIT BEFORE WPPF 2,636,822,179 1,962,065,899Allocation for WPPF (125,562,961) (93,431,709)NET PROFIT BEFORE TAX 2,511,259,218 1,868,634,190Provision for Income Tax (592,644,226) (409,660,827)Provision for Deferred Income Tax (28,562,063) (77,110,270)NET PROFIT AFTER TAX (TK) 1,890,052,929 1,381,863,093 (Transferred to the Statement of Changes in Equity)Earnings per Share (EPS) (TK) 156.56 114.47

CASH FLOW STATEMENT

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For the Year Ended 31 March 2009 2008-2009 2007-2008

Cash Flows from Operating Activities:RECEIPTS:Collection from Sales 9,706,402,257 8,231,097,525

Others 466,326,850 449,727,661 10,172,729,107 8,680,825,186PAYMENTS:Purchase of Raw and Packing Materials 4,595,248,761 4,434,614,344Manufacturing and Operating Expenses 2,152,581,352 2,075,086,488Bank Interest 397,135,963 351,868,423Income Tax 475,997,448 458,227,366Workers Profit Participation Fund 60,192,228 58,051,027Others 7,684,822,669 7,379,996,482

Net cash provided by operating activities 2,487,906,438 1,300,828,704

Cash Flows from Investing Activities:Purchase of Fixed Assets (877,960,724) (1,106,201,471)Disposal of Fixed Assets 8,806,250 8,985,055Investment in Square Hospitals Ltd. (500,000,000) (500,000,000)Investment in National Housing Finance & Investment Ltd. ---- (3,157,800)Investment in Square Biotech’s Ltd. (150,000,000) (316,400,000)Investment in Square Multi Fabrics Ltd. (249,500,000) ----Capital Work-in-Progress ---- (109,875,230)Sale of Marketable Securities 67,289,225 ----Interest Received 89,551,011 112,595,980Dividend Received 42,007,687 40,197,168

Net cash used in investing activities (1,569,806,551) (1,873,856,298)

Cash Flows from Financing Activities:Long Term Loan Received 151,162,607 414,288,000Long Term Loan Repaid (305,401,660) (237,046,566)Short Term Bank Loan Increase/Decrease (1,135,347,402) 850,915,306Short Term Loan Increase/Decrease 817,344,614 (91,608,631)Dividend Paid (357,696,000) (298,080,000)

Net cash (used)/provided by financing activities (829,937,841) 638,468,109

Increase in Cash and Cash Equivalents 88,162,046 65,440,515Cash and Cash Equivalents at the Opening 205,295,694 139,855,179

Cash and Cash Equivalents at the Closing (TK) 293,457,740 205,295,694

SWOT ANALYSIS

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The SWOT Analysis comprises of the organizations internal strengths, weaknesses,

external opportunities, and others. SWOT analysis is an important tool for

evaluating the company’s strengths, weaknesses, opportunities, and others. It gives

an organization an insight of what they can do in future and how they can compete

with their existing competitors. This tool is very important to identify the current

position and performance of the organization relative to others, who are playing in

the same field and used in the strategic analysis of the organization.

SWOT ANALYSIS

4.1 STRENGTHS:

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

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Square is the largest private sector industrial conglomerate in Bangladesh. Square is more efficient and leading company in pharmaceutical industry for their strengths. Their strengths are given below:

The well qualified employees are strength of Square.

Huge experience in the pharmaceutical market

Used modern and sophisticated technology

Strong research and development division

Highly Skilled workforce, efficient management

Strong brand recognition, outstanding service

Price of Cephalosporin is very competitive

World class manufacturing facilities.

4.2 WEAKNESSES:

The chain of command of Square is elongated, which takes long time to take any decision. In reality Square has insignificant weakness in strategy

Need more smooth distribution channel Less prescription share compared to the competitors. ,t Ineffective and inefficient

detailing of FPs In case of product launching Square is follower rather than to become pioneer. Some of the Cephalosporin’s are showing negative growth

4.3 OPPORTUNITIES:

The pharmaceutical market of Bangladesh is booming rapidly, so Square has a huge scope to do better.

Today technology is more advanced and sophisticated which opens the door of the new generation of medicine.

More and more health care centers and hospital are being established Square has scope to penetrate in those.

Globalization opens the door of new era for Square.

Established & Growing market segment.

Can be penetrated easily in the market

4.4 THREATS:

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There are lots of big pharmaceutical companies established in market in the country, which create more competition .So that is a threat for Square.

Increase the price of raw material

Lack of availability of raw material

Huge import tax

Competitor increase day by day

5.1 Conclusion:

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The purpose of this paper has been to analyze the market expansion activities of Square

Pharmaceuticals Ltd. SPL is a very big business organization. Therefore, it’s very difficult

on my part to analyze its each and every strategy precisely in this small study.

There can be various ways through which a business organization can achieve success in

the market, after scanning its external & internal environment and considering all

alternatives, I have tried my level best to sort out the best way as per my thinking ability

for SPL to run ahead.

But finally I can say this much that it has a large potential both in the short and long run due to its sound distinctive competencies.

5.2 Recommendations:

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New Category Opinion Leader

Doctors are the only opinion leader in SPL’s present strategy. It may be partially good, but

can not be perfect as the completion becomes more intense day by day. There are some

other parties who have the scope and ability to act as “opinion leader” and to motivate the

buyer. These potential “opinion leaders” are remaining unexploited. SPL has enough

resources to let them add value to the company.

Customer Once, Client for ever

Client is more profitable than customer in terms of both transaction as well as positive

word-of-mouth communication. He himself can be an opinion leader. So, I am suggesting

adopting some programs that will let its customers be transformed into clients. The

following model would better describe this concept:

SPL has a strong brand image in pharmaceutical industry. It will facilitate this strategy. I

am citing some instances here which may be useful for this strategy:

a. Mobile Hospital service with free treatment and medicine.

b. Health awareness program in rural area.

c. Modernization of educational institute or public hospital etc.

Keep Pace with the Race

Today’s world is changing very rapidly, in every sphere. Therefore, updating production

plant alone is not enough to cope with the new environment. SPL has to have a keen eye if

there is any change in HR development, transport, information technology, consumer

relation management, medical science and so on.

Integrate Greatly

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SPL imports 80% raw materials of its total requirements. This is a weakness if it wants to

consistently expand its market. So it requires either more API plants or increase in present

production capacity.

Discover the undiscovered

Pharmaceutical value chain is a bit different from traditional value as it includes an

additional step “Discovery”. In the start this step is a vital strength of any pharmaceutical

company. SPL lacks this component in its value chain

Innovation is the Destination

Pharmacy is on the brink of a scientific and technological revolution that will ultimately

transform both the nature of the medicines it makes and how it makes them. In future, then,

Pharmacy will not only make the white powders, creams and tablets it has traditionally

produced, it will manufacture a complete mix of biopharmaceuticals, parenterals and

diagnostics. Making targeted treatment solutions will generate greater revenues than

conventional drugs and offset the increasing competition from generic producers. But it

will also require the restructuring of the entire pharmaceutical value chain, including the

fixed asset base and downstream distribution.

Segment the Current Market Segment

SPL is in need of more segmentation tools in an ongoing effort to establish close and

sustainable relationships with customers.

Bibliography

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⇒ Annual Reports of Square Pharmaceuticals Ltd.

⇒ www.squarepharma.com.bd

Glossary

24

In this report, we use some technical words and these are flowing with explanation:

SPL: Square Pharmaceuticals Ltd. IMS: Information Medical Statistics

WTA: World Trade Agreement

MRPC: Market Research Planning & Cell

API: Active Pharmaceutical Ingredients. DDA: Directorate of Drug Administration.

POM: Prescription Only Medicine

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