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MARKITING PROCESS

MARKETIN
G
MARKETING MIX
SUBMITTED TO:

SIR .WAQAS MANZOOR DAR

SUBMITTED BY:

Ghulam Abbas 08011420-012

SECTION “A”

MBA 2nd
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UNIVERSITY OF
GUJRAT

TABLE OF CONTENTS

Marketing ………………………………………………………… 01

Marketing process ………………………………………………………… 01

Novartis pharmaceutical …………………………………………………………

02

Business Objective ………………………………………………………… 02

Hierarchy ………………………………………………………… 03

Epilepsy (the disease) …………………………………………………………

06

Business Scope …………………………………………………………

08

External Analysis …………………………………………………………

010
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Market Analysis …………………………………………………………
012

Environmental Analysis …………………………………………………………

017

Internal Analysis …………………………………………………………

020

SWOT Analysis …………………………………………………………

024

MKT Positioning and Segmentation …………………………………………………………

029

Marketing Mix ………………………………………………………… 034

Pricing Plan ………………………………………………………… 035

Production Plan …………………………………………………………

037

Promotional Plan …………………………………………………………

039

Distribution Strategy ………………………………………………………… 042

MARKETING
“There are many definitions of
marketing. The better definitions are
focused upon customer orientation and
satisfaction of customer needs.”
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“Marketing is the social process by which

individuals and groups obtain what they
need and want through creating and
exchanging products and value with
others”
KOTLER

“Marketing is defined by the American Marketing Association

as the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large.”

MARKETING PROCESS
It is a process which consists of four steps enabling the marketers to perform their strategies
according to their plans. These steps are:
ANALYZING MARKET SITUATION
It is based on information and research including SWOT and PEST analysis of market

DEVELOPING
MARKETING
ANALYZING
IMPLEMENTATION
MARKETING
MAEKETING
CONTROLMIX
SITUATION
DEVELOPING MARKETING MIX
It includes development of 4P’s namely
Product
Price
Place
Promotion
MARKETING IMPLEMENTATION
It involves turning plans into actions.
MARKETING CONTROL
Being the last step it identifies the gap between planned
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And actual goals

History
Novartis pharmaceutical is established in 1996.The history of Novartis traces back to three
companies
➢ Geigy Pharmaceutical
➢ Ciba pharmaceutical
➢ Sandoz pharmaceutical
Geigy whose origin goes back to the middle of the 18th century. CIBA founded around 1859and
Sandoz established in 1886
In1970 CIBA and Giegy merged .the newly created CIBA-Geigy Ltd and Sandoz continued to
follow separate path for two and half decades
In1996 Sandoz and CIBA-Geigy joined to form Novartis pharmaceutical.

BUSINESS OBJECTIVES
MISSION STATEMENT OF NOVARTIS
“To bring value to patients and customers and have a positive impact on people's lives and to
discover, develop and successfully market innovative products to cure diseases and enhance the
quality of life.”

VISION STATEMENT
“To lead our industry through continuous innovation. The long term success is founded on
meeting the expectations of all our stakeholders - patients, healthcare providers, our people,
and the community.”
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CORE VALUES
At Novartis shared values and behaviors are known as 'Eight Commandments'.
➢ Leadership
➢ Empowerment/accountability
➢ Customer/quality focus
➢ Competence
➢ Speed/action/simplicity/initiative
➢ Candor/trust/Integrity
➢ Communication
➢ Commitment/self c discipline.

CORE COMPETENCIES
1. Brand Image
2. Goodwill
3. Credibility
4. Quality of life
5. State-of-the-art-technology
6. Distribution Network

STRATEGIC INTENT
“Novartis strives to be where GSK stands right now in the pharmaceutical
industry of Pakistan”
GOALS AND OBJECTIVES

Our goals are based on the following core values:

EXTERNAL FOCUS
Our focus is decidedly external:
• Customers
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• Markets
• Competitors
• Technologies

INNOVATION
Innovation is the driving force in our company. It enables us to create new, cutting-edge:
• Product,
• Processes, and
• Technologies
PEOPLE
We know that people make the difference. This means that we:
• treat each other with respect,
• support each other's efforts, and
Work at delivering superior results.
PERFORMANCE
We strive to achieve world-class results, based on ambitious targets, and aim at the highest
performance standards. We achieve this through:
• Initiative,
• Decisiveness,
• Perseverance, and
• Flexibility

Head Office
Novartis International AG
CH-4002 Basel
Switzerland Head office in Pakistan
Tel: +41 61 324 11 11
Fax: +41 61 324 80 01 Novartis Pharma (Pakistan) LTD.
15 West Wharf Road, Karachi 74000, Sindh,
Pakistan
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Phone: 9221-2313389 / 2316286 / 2313387 /
2313390
Fax: 9221-2310241

Sector Head
Farhan Baider Malik
15 West Wharf Road, Karachi 74000, Sindh, Pakistan
Phone: 9221-2313389 / 2316286 / 2313387 / 2313390
Fax: 9221-2310241

Managers
Khalid Ashraf (National Sales Manager)

Moiz Haider (Brand Manager)

Zubair Ahmed (Training Manager)

Ali Imran (Human Resource Manager)

Moin Khan (Factory head)

Regional Sales Managers

Tuyyab Nazir Lahore
Mujeeb Alam Multan
M Shakeel Karachi
Arshad Iqbal Islamabad

Zonal Sales Managers

Lahore M. Ejaz
Qamer Shahzad Ali
Muhammad Zeeshan Altaf
Islamabad
M. Sohail Aslam
Naveed Basheer
Faisalabad Ikram Ulah Khan
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M.Usman Karachi
Multan Faizan Ur Rehman
Syed Ather Hussain
Shahzad Jamil
Asif Ali Khan
Ghazanfar Aziz Ghauri
Qamar Zaman
Hyderabad
Gujranwala
Abaid ur Rehman Jawaid Jabbar
Syed Shoaib Hussain
Naveed Farooque
Sukhar
Peshawar
Imtiaz Soomro
Abdul Hameed Noorullah Jan
Inayat Ullah Khan Afridi
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NOVARTIS PHARMA PAKISTAN LTD.

Epilepsy - the Disease:

Definition:
An epileptic seizure is defined as paroxysmal discharge of cerebral neurons, sufficient to
cause clinically detectable events that are apparent to the subject.
• Chronic Neurological disorder characterized by recurrent seizures
• Epilepsy is a social stigma in Pakistan
• Spiritual treatments are quite common
• Treatment gap is quite high-especially in rural population (up to 80 %)

Causes of Epilepsy:
In 70% of Epilepsies, the cause is unknown. Epilepsy is a disorder in which seizures appear as a
symptom and draws our attention to the fact for some reason the nervous system is reacting to an
underline physical or chemical disorder.
The following could be the causative factors:
• Head Traumas
• Biochemical imbalances
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• High fever
• Birth trauma
• Trauma
• Degenerative brain diseases
• Imbalances in Menstrual Cycle
• Increased Stress
• Deprivation in sleep
• Have had active hyperventilation, hyperthermia
• Meningitis

Demographics:
• 2.5 million In USA---50 mio. Worldwide
• Pakistan = 1.5 %
• Age: Young children & Young Adults
• Gender : More in males
• 70 % epileptics are in Developing Countries

World:
Epilepsy is the commonest paroxysmal neurological disorder.
• It afflicts more than 50 million of the people in the world
• 10% among these have fits as frequently as more than once a month. According to some
estimates
• 5% people suffer from one fit once in a lifetime
• 0.5 to 1.0% people of the country’s population suffer from epileptic seizures

Pakistan:
• According to National Health Survey of Pakistan and report of Pakistan Medical Research
Council (PMRC) In Pakistan the prevalence of epilepsy has been estimated to be nearly 1.5 %
of the general (rural and urban) population. This means there are about 1.5 Mio epileptics in
Pakistan, but only about 10% seek medical treatment. This is largely because of ignorance
amongst the masses, particularly in rural areas.

Diagnosis:
• Eye witness account
• EEG (Electroencephalography)
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• MRI (Magnetic Resonance Imaging)
• Blood Tests

Treatment:
• To advance and disseminate knowledge about epilepsy
• To promote research, education and training
• To improve services and care for patients, especially by prevention, diagnosis and treatment
• Epileptic patients generally see GPs for the management of mild to moderate epilepsy.
Specialist aims to minimize the seizures through sedatives and mainly cannot figure out
the causes of the epileptic patient

BUSINESS SCOPE
Products manufactured and consumed locally - Home Market.

The needs being fulfilled are:

Target Customers’ Needs

FOCUS CUSTOMER TYPE CUSTOMER NEEDS

INITIAL FOCUS Neurologists Professional services,

scientific updates, speaker
opportunities, journals,
local conferences
sponsorships, international
congresses & seniors’ visits.

Psychiatrists Professional services,

scientific updates, speaker
SECONDARY FOCUS opportunities, international
congresses, journals &
senior’s visits
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GPs(general practioner) Experience programs,

educational workshops,
recognition and regular
visits.

WHAT NEEDS?
Novartis Pharma Pakistan Ltd provides value to patients and customers by providing positive
impact on people's lives and to discover develop and successfully market products to cure
diseases and enhance the quality of life.

Novartis Neuroscience is strategically aimed towards complying to the

needs of its customers and consumers.

WHO’S NEEDS?
This is the business scope for the segment targeted for Tegral, that seek same benefits or sharing
same needs and wants.
• All segments of patients with paroxysmal discharge
• All patients with simple/complex partial or secondary generalized seizures
• All patients with onset of seizures after the age of 30 years
• Any patient with Todd’s paralysis lasting more than 6 hours
• Any patient with neurological deficit in the intricate period
• Any febrile illness with seizures
• If there is history of changing seizure types
• All cases of resistant/intractable seizures
Treatment gaps are different in rural and urban areas: 25% are treated in rural areas
50% are treated in urban areas
Manufacturing of drugs locally to sell at affordable & profitable price in a poverty riddled
country like Pakistan.

Added Value
The company’s core business comes from pharmaceuticals, which is around Rs 4.0 Bio. The
CNS Business Unit contributes about 20% of this business and is the leading Neuroscience
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Company, not only globally, but also in Pakistan. In Neuroscience portfolio of Novartis, Tegral
is the leading product and is also the market leader in epilepsy, with about 30%market share.
The segment is offering highly innovative and effective drugs with the help of R&D,
manufactured locally eliminating import duty costs and in turn cheaper drugs for the population
of Pakistan.

With the research and development imported from the sister companies worldwide, CNS
department has added value to its line of products. Negotiating with the treatment gap that
comprises of 75% untreated patients in rural areas, CNS department has accommodated Epilepsy
camps to help the overcome the battle against this disease.
Free consultations and creating awareness through specialized marketing on posters, pamphlet
and free camps.

Future Directions
• Building technological and R&D facilities in Pakistan to fight neurological disorders faced
by their patients.
• Developing programs and workshops for rural society that are not aware of this disease and
• Is prone seeking guidance from no specialized institutions?

• Novartis does not deal with :

• Importing or development of Germicides or any such botanical or farming products
for the agricultural & farming sector of Pakistan.
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External Analysis
CUSTOMER ANALYSIS
Quality & Price Tegral Epival Topamax Rivotril Seizunil

Non-Price Attributes Affecting %

Customer Choice Weight

Product - Related

1. Effectiveness 0.25 3.25 1.20 0.25 0.34 0.65

2. Safety 0.15 0.60 0.76 0.50 0.10 0.20

3. Availability 0.20 1.20 0.20 0.10 1.90 0.14

4. Convenience of usage 0.15 1.05 1.90 0.30 0.67 0.54

5. Marketing Effectiveness 0.25 1.65 1.85 0.60 0.65 0.15

Service – Related

1. Product Information 0.20 0.66 0.50 0.10 0.30 0.06

2. Awareness 0.25 0.55 0.40 0.30 0.70 0.05

3. Seminars 0.15 1.35 1.00 0.15 0.65 0.60

4. Relations with KOLs 0.25 2.00 2.50 0.23 1.65 1.23

5. Clinical Evaluation 0.15 1.20 0.40 0.10 0.10 0.50

Total 1.00 13.51 10.71 2.63 7.06 4.12

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RATING AGAINST CUSTOMER BUYING CRITER

Implications:
As the table above shows the overall performance of Tegral is above par and has a competitive
advantage.
The strong brand image of Tegral implies that its key strength is due to its service related aspects
as it is the market leader.

Key Learning:
Tegral needs to make improvements in the following areas.

• Create awareness through Epilepsy Projects, KOL(key opinion leader) Development

Program & Awareness camps for Rx
• Improve distribution and import infrastructures to make Tegral highly available in the
Epileptic segment.

Primary Customer Analysis

AED Prescriptions per specialty

Tegral Prescriptions per Specialty

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R MOs Ps ych
16% 22%
Others
9%

IM
15%
GP
38%

Implication
The largest portion of the primary customer population is comprised of General Practitioners
(38%), while IMs constitute the smallest part of the population. Therefore, in order to increase
sales turnover, it is advised that Novartis’ Neuroscience’s main focus for Tegral should be the
GPs, while maintaining a secondary focus on the Psychiatrists who although comprise only a
22% of the total population, yet, are the top contributors of Anti-epilepsy prescriptions. Thus,
Tegral would be encompassing the wider customer base.

THE MARKET ANALYSIS

Market Overview:
There are about four hundred licensed drug manufacturers in Pakistan which includes about twenty eight
multinationals. Pakistan's total drug market is worth 1.5 billion US dollars. The Drug Registration Board
of Federal Health Ministry has registered over forty thousand brands representing over fourteen hundred
molecules. According to some estimates the value-wise share of the National Pharmaceutical industry in
Pakistan's total drug market is about 45%, whereas unit-wise its share has increased to between 70-75%.
At the beginning of 2005, the total pharmaceutical market in Pakistan comprising of PKR: 68 billion and
growing by 9.2% while at the end of 2004, the total pharmaceutical market was at PKR 53 billion and
growing at 8.3%
The Overall yearly size and respective growth of the Pharmaceutical Industry;
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YEAR VALUE in Rupees Growth (%)

2001 42 5%

2002 47 7%

2003 52 8%

2004 60 8.3%

2005 67 15.8%

2006 79 18 .2%

2007 87 15 %

2008 97 12 .7%
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MAIN MARKET SEGMENTS

The prominent segments of the Pharma Sector & their respective shares;

Segment…….0. 2001 2002 2003 2004 2005 2006 2007 2008

Antibiotics 25 22 20 20 19 18 18 15

GIT 20 15 15 14 11 10 8 8

CNS 5 8 10 13 14 15 18 19

Respiratory 5 3 4 3 3 5 5 5

Vaccines 2 5 7 9 9 10 12 12

Vitamins 8 10 10 8 8 10 10 10

Narcoleptic 3 5 4 3 2 2 2 2

Nutritional 5 7 8 5 3 3 3 3

Anti metabolic 5 8 10 10 12 12 15 15

Anticancer 2 2 3 5 5 5 7 10

MARKET STRUCURE
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• Novartis is the largest Neuroscience company in Pakistan, being present in 35% of total
Neuroscience market
• Novartis has 20% market share in served segments of Neuroscience & 6.8% in total

INDUSTRY MARKET SIZE

• Market : Rs 63 Bio
• % of Pharma Mkt. : 11%
• Growth : 12%

Following is the market position of Tegral

• Medium sized market:Rs.616 mio.,2005 -- Growth 16 %
• Top 3 players (Novartis, Abbott, Roche, Janssen Cilag) = 70%
• Cabamazepine 1/2 of total AED market
• Tegral-leader 29% MS
• 10 generics have 16.3% MS
• NCE: Lamictal, Topamax
• Low priced generics are displacing Tegral in Institutions & substitution
• Due to cost effectiveness & efficacy of Tegral, its acceptance level is very high
• Compliance rate is quite high but mostly suboptimal dosages are recommended or followed
by the patients
• Usually ILAE treatment guidelines are adopted
• Most of the KOLs are major prescribes of Tegral
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DISTRIBUTION STRUCTURE OF THE BUSINESS

Doctors
Institutions
Patients
CoWmhRp
o
Dealtie
nas
yi a
s l tel e
rr ri b u t o r s
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PLC STAGES OF THE BRANDS IN THE MARKET

IMPLICATIONS
Tegral is the Market leader of Anti – Epileptic drug industry and its in its mature stage in the
PLC while other competitors are either in the growth stage or the decline stage. This indicates
that Tegral has high market share but has to retain its position in the market as competitors are
trying to penetrate the market through high promotional schemes and marketing strategies.

DRIVING FORCES AND TRENDS IN THE

INDUSTRY
• Low priced generics are displacing Tegral in substition and institutions’. Increased
competition and new players entering the market with new products are causing major price
falls. Novartis has to follow the same price trend even thought its raw materials are imparted.
• Most of the KOL’s are major prescribers of Tegral. Hence it enjoys high share of voice as
majority of the key opinion leaders prescribe Tegral to cure epilepsy. KOL’s are a major
driving force towards high market share of Tegral.
• Disease awareness is increasing among the masses especially in urban areas. General
Practioner need education to diagnose epilepsy which will lead to higher Tegral prescribers
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and users especially in the urban areas. This driving force will help in increase of the
epilepsy market itself.
• New molecules are being adopted by specialists. Hence the pharmaceutical industry can now
avail the opportunity to introduce new products in the market and expand its market.

ENVIRONMENTAL ANALYSIS
Epilepsy - Issues in Pakistan:
Lack of awareness to treat Epilepsy as a lifelong paroxysmal disorder. More than 40% of
Pakistani patients are not aware that they are suffering from Epilepsy. Widespread
ignorance & illiteracy makes health education & self-care difficult
People are susceptible to the influence of quacks, Hakeem’s and homeopathic physicians.
Lack of resources at provider level:
• Primary health care professionals without adequate training
• Lack of health care professionals in rural and poor areas where they are
needed most
• No data availability to encounter heart related complications cost
effectively
Lack of resources at patient level:
• Generally low standard of living makes achieving balanced diet, having
healthy lifestyle & taking appropriate treatment more difficult.
Lack of political will and commitment for prevention and control of Hypertension.

GOVERNMENTAL POLICY
Pharmaceutical Companies in Pakistan have to undergo heavy tariff and income taxes
that are applicable to multinational firms. Government policies regulate:
a) Total Revenue of the company.
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b) Total cost figure which relevance to their share in overall profits.

c) Drug Registration, with strict price regulations

Price Controls and Forced Price Reductions

Very serious concerns on the move by the government, under pressure of
the pharmaceutical industry, to deregulate the pharmaceutical sector.
a) To begin with, a case for deregulation of medicine prices has been developed.
Multinational pharmaceutical companies working hand-in-glove with the Ministry of
Commerce, Industry and Production have been lobbying hard for quite some time for de-
regulation of prices.
b) The government is fulfilling its responsibility in providing health care to the needy
c) Pharma seeks the support from the U.S. Government to ensure that the Government of
Pakistan allows price increases immediately, and at a level which will be sufficient to
stem the dramatically declining profitability of the research-based pharmaceutical
industry during recent years.
d) Government imposes compulsory price reductions on targeted products which were
based on an unjustified price comparison with India.
e) Show Cause Notices: with political pressure for cost containment, many multinational
companies received Notices with orders to reduce prices of products from 5-28% on 21
packs of 17 products.
f) Utilization of prices applicable to the Indian market are inappropriate when applied to
pricing of pharmaceuticals in the Pakistani market. India has a significantly lower cost
base for all materials, utilities and employee costs; and the purchasing power of the
average Indian is significantly below a Pakistani citizen.
g) In addition, all prices have, in any case, been approved by the Ministry of Health
(MoH). Furthermore, they ignore all those products where there is a much lower price in
Pakistan than in India.

Intellectual Property Barriers

a) Pakistan has a law for the protection of intellectual property. In Pakistan, patents are
registered under the Patents & Designs Act of 1911 and trademarks are registered under
the Trademarks Act of 1940. Protection for patents is for processes only, and the duration
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of protection normally is 16 years.
b) The Patents & Designs Act, 1911 (PDA) confers on the patentee exclusive privilege for
making, selling and using his invention throughout Pakistan and of authorizing others so
to do. The primary purpose of the PDA is to protect new invention and to encourage the
growth of industry in the country.

Product Registration
a) The regulations to obtain a sales permit for a given pharmaceutical product require that
the dossier of supporting data be accompanied by Certificates of Free Sale, confirming
the approval for sale of the product in developed countries of the world, such as the U.S.,
Europe and Japan. The research-based industry has understood and accustomed itself to
this requirement.

Licenses
For acquiring a manufacturing licence or its renewal, membership of Pakistan Pharmaceutical
Manufacturing Association (PPMA) is compulsory.

Sales Tax
a) Pakistan is the only country in which the government has imposed duties and taxes on
such an essential industry.
b) It is for the first time that 15% sales tax has been imposed on pharmaceutical products
besides imposing regulatory duty on the import of raw materials, intermediaries and
packing material.

INTERNAL ANALYSIS
PERFORMANCE ANALYSIS

MARKET SIZE AND GROWTH OF TEGRAL

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Internal Data 2003 Act 2004 Act 2005 LE3 2006 Bu

1. Sales 175.6 182.5 210.8 233
% Growth vs. PY 6.48 3.9 15.5 10.5
% TRx Growth vs. PY -0.8 20.57 16 13
% Market Share 34.2 29.4 29 29.2
2. % Market Growth 13 18 15 10

Market definition: Medium sized competitive market

3. M&S % of Sales 3.7 4.9 5.9 6.3

3 m onths 6 m onths LE3

4. Sales Running Rate 211016 209950 210800
(use linear regression model)
YTD YTG 2006
5. Forecast Sales Growth (%) 21.6 19.7 10

COST STRUCTURE

Cost of Production
COST ANALYSIS
COST OF PRODUCTION
(Contribution as percentages)
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NOVARTIS Abbott COST Roche

31% 29% Raw Material 28%

13% 12% Packaging & Processing 10%

17% 19% Labour 20%

15% 19% Factory Overheads 17%

9% 7% Depreciation 10%

5% % Amortization 3%

10% 10% technology development 11%

100% 100% Total 100%

MARKETING & SELLINGS COSTS (As %)

COST TYPE NOVARTIS Abbott Roche

SALES FORCE EXPENSE 15% 20% 20%

MARKETING STAFF EXPENSE 20% 15% 15%

SALES ACTIVITES 25% 32% 30%

MARKETING ACTIVITES 20% 23% 25%

Goodwill 20% 10% 10%

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TOTAL 100% 100% 100%

Relative Cost Structure

COST TYPE NOVARTIS Abbott Roche

Cost of Production 45% 40% 35%

Marketing & Sales 40% 35% 38%

Distribution 15% 25% 27%

Sales 100 100 100

NON – FINANCIAL PERFOMANCE ANALYSIS

Company Capabilities:

Company Capabilities Average Good Excellent Strengths/Weakness

Sales force size Roche(38) Abbott(90) Novartis(120) Strength

Sales force effectiveness Abott Roche Novartis Strength

Marketing Effectiveness Roche Novartis Abbott Weakness

Relations with KOLs Abott Roche Novartis Strength

Critical evaluations Novartis Roche Abbott Weakness

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Corporate image Roche Abbott Novartis Strength

Product Capabilities
Product Capabilities Average Good Excellent Strengths/Weaknesses

Ability to Control Epilepsy Rivotril Tegral Strength

Safety Rivotril Lamictal Epival Weakness

Convenience of Usage Epival Tegral Rivotril Weakness

Formulations Lamictal Epival Tegral Strength

Dosage Topamax Topamax Epival Weakness

Implications
The Analysis above shows that Tegral’s main strength is the corporate image of Novartis that
retains and motivates the sales force to effectively deport their strategic promotional and tactical
plans to gain customer ground. While two of its rivals Abbott and Roche are gaining share of
voice through relations with KOLs and clinical evaluations. This SCA, combined with its’
highly effective sales force and marketing efforts, give the Neuroscience Unit a required upper
hand, while its huge sales force size may also be turned into a core competence, since Novartis
has its own distribution, which its archrivals lack.

Key Learning
• The Neuroscience Unit’s Achilles heel is the convenience of Tegral’s dosage, which is
comparatively lower than the competition. Dosage for children and young adults should
be varied
• Tegral does not sport varied versions of its formulations. New formulations should be
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adopted to gain competitive advantage

PRODUCT PORTFOLIO ANALYSIS

Implications
Tegral being the market leader and in the maturity
stage of its PLC, is the Cash Cow of Neuroscience
Unit. The strategy proposed under the BCG Matrix
for Cash Cows is to finance question marks and stars
that is the either existing products that are in their
growth stage and have high market share and growth
rate or new products that are penetrating the market
that are now at a low market share but have high
growth rate.
Epival is considered as a star.
Topamax is considered as a star.
Rivotril is considered as a problem child or a dog.

SWOT ANALYSIS
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Strengths Weaknesses

• Market Leader • Only one formulation is available

• Strong CNS image of Novartis • No formulation for children
• Strong brand image-Heritage, Valuation • Mostly under dosage is recommended
• Strong rapport with KOLs • Lack of resources to tap attractive
• High acceptance of Cabamazepine as an opportunities
anti epileptic
• FDA approved
• Effective in multiple indications
• First line, first choice therapy

Opportunities Threats

• High growth rate of the market • High SoV of competition

• More doctors particularly GPs are • Increasingly high acceptance of
diagnosing epilepsy evaporates
• High treatment gap • Increased penetration of low cost
• Lot of potential in different indications Generics in institutions
(PDN) • Epival has many galenical forms
• New Molecules are high cost & with • Introduction of new molecules
low safety profile • Compliance is low
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Weaknesses
WEAKNESSES
AND • Only one formulation is available
• No formulation for children
THREATS •
•
Mostly under dosage is recommended
Lack of resources to tap attractive
opportunities

Threats Proposed Strategies

• Existing Threat: High Share of Voice 1. Formulation should be

of competition.
• Increased penetration of low cost
Generics in institutions
• Rapid growth of below the line and
direct to consumer advertising
• Increasingly high acceptance of
valproates
• Epival has many galenical forms
• Potential Threat: Introduction of new
molecules
• Compliance is low
• Entry/exit into the Industry: Increase
in number of neuroscience competitive
products. Consumers have been offered more
and more choices.
introduced for children and
young adults.
2. Promotional Strategy to create
awareness and increase mind
share
3. Promote KOLs to increase the
number of patients
4. Optimize the loyalty base of
Tegral users
5. Switch Epival users to Tegral
6. Low dosage range extension
should be introduced
7. In regions other than Karachi,
Lahore and Peshawar,
distribution should be made
more extensive to increase
availability. More agents should
be contacted
8. Management should strategize
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their aims to retain their sales

force through benefit planning
and incentives.

Weaknesses
WEAKNESSES
AND • Only one formulation is available
• No formulation for children
OPPURTUNITIES • Mostly under dosage is recommended
• Lack of resources to tap attractive
opportunities

Opportunities Proposed Strategies

• High growth rate of the market
• More doctors particularly GPs are
diagnosing epilepsy
• High treatment gap
• Lot of potential in different indications
(PDN)
• Conduct seminars and workshops to
train GPs about Epilepsy and the usage
of Tegral.
• Treatment gap should be reduced by
awareness programs in rural areas.
• Cost - plus pricing should be practiced
for new molecules exposures and
regulations for safety should be
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MARKITING PROCESS

• New Molecules are high cost & with enhanced

low safety profile • Local firms desirous of export but
lacking necessary export structure

Strengths

STRENGTHS • Market Leader

• Strong CNS image of Novartis
AND • Strong brand image-Heritage, Valuation
• Strong rapport with KOLs
OPPURTUNITIES • High acceptance of Cabamazepine as an
anti epileptic
• FDA approved
• Effective in multiple indications
• First line, first choice therapy
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MARKITING PROCESS

Proposed Strategies
Opportunities • Capitalize on strong CNS franchise –
build further rapport with KOLs
• Patient Evaluation Programs: For KOL
Development
• High growth rate of the market KEEP (Key Experts Evaluation
•
• More doctors particularly GPs are Programs)- Painful Diabetic
diagnosing epilepsy Neuropathies for 30
• High treatment gap Physicians
• Lot of potential in different indications •
BOC - 2 Programs for 30 Doctors each
(PDN) for PDN
• New Molecules are high cost & with • Epilepsy Project
low safety profile
- CME Programs for Family Physicians
(Epilepsy)
- Epilepsy Camps (28 camps organized so far)
• Neuroscience Summit: Patient
Evaluation Program for major Brands
of Neuroscience, Total 35 Top KOLs
from Neurology & Psychiatry

Strengths

• Market Leader
STRENGTHS • Strong CNS image of Novartis
• Strong brand image-Heritage, Valuation
AND • Strong rapport with KOLs
• High acceptance of Cabamazepine as an
THREATS anti epileptic
• FDA approved
• Effective in multiple indications
• First line, first choice therapy
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MARKITING PROCESS
Threats Proposed Strategies
• Existing Threat: High Share of Voice
of competition.
• Increased penetration of low cost
Generics in institutions
• Rapid growth of below the line and
direct to consumer advertising
• Increasingly high acceptance of
evaporates
• Epival has many galenical forms
• Potential Threat: Introduction of new
molecules
• Compliance is low
• Entry/exit into the Industry: Increase
in number of neuroscience competitive
products. Consumers have been offered
more and more choices.
MARKET POSITIONING
& SEGMENTATION
• Build further rapport with KOLs
• Exploit on stronge CNS franchise
• Patient Evaluation Programs should be
conducted for KOL Development
• Own distribution structure of Tegral,
measuring highest in clinical
evaluation, effectiveness & safety
• Summits of KOLs for top brands in
neuroscience to increase share of voice
• Focus to minimize substitution.
• More Focus on RMOS
• Better Awareness of Epilepsy Project
• Refine Advertisement media
• More sustained branding
• Powerful message delivery
• Monitor promotion in different
indications
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MARKITING PROCESS

SEGMENTATION OF BRAND

Chemist
Patients
Ask
Patient
With
Chemist
Clerk
Spontaneous
Ask
Chemist
specific
Patient
Marketing
Trade seekdoesn’t
prescription
recommend
chemist
buy
recommend
Source buy
product
cheaper
recommend
Tegral
target for
Tegral
ofgeneric/other
target brand/generic
Tegral
business
recommend
other
treatment
(388)
recommend.
-w/o
(98) (Dispense
brand/generic
(91)
76%
80%
Rx(510)
(22)
brand
93%
(7) 7%
92%
(122) Tegral)
(64)
(24) 24%
16%
20%(2) 8%
(324) 84%

Segmentation Process per CPO

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MARKITING PROCESS

TOP 5 BRANDS Sales % of Sales % of Brand Sales % of Brand

PER CPO Generated Brand Generated by M&S spent Generated M&S spent on
by M&S PHARMACI on Pharmacy by Patient
PHYSICIA spent on ST programmes PATIENT programmes
N Drs

Of all pts Tegral gets 437 324 Xx% 22 xx% 91 xx%

entering a pts (86%)
pharmacy with 74% 5% 21%
intention to buy (Actual Business)
Tegral (510)*

Customer Segmentation
A2B Shift and Local Physician Segmentation
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MARKITING PROCESS
Uses
Using
Uses
Not
Physician
Physician
Physician
initiating
Treats
Tegral
Tegral
Tegral Segment
Segment
Segment
widely
first
in 213
2nd (e.g.
specific
line
Tegral
line
(e.g.
with
when
Spreaders)
in Loyals)
Tegral
other A2B
patients/CG
patients/CG
and
drugs shift
advocates
where
where failefficacy
efficacy
matters
matters most most

TARGET MARKET
Epilepsy
Target Audience : Psychiatrist, Neurologists,Physicians,GPs
Core messages
Time tested & original Cabamazepine
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MARKITING PROCESS
The primary drug for all epilepsies except absence seizures
Excellent Efficacy
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MARKITING PROCESS

Painful Diabetic Neuropathies

• Target Audience: Physicians, GPs, RMOs

• Well documented & proven Efficacy
• Better than NSAIDs
• Better than Gabapentine as it its effect doesn’t diminish with the lapse of time
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MARKITING PROCESS
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MARKITING PROCESS

MARKET POSITIONING

Brand Vision
Maintain RX base of Tegral in Epilepsy & Neuropathies & sustain the leadership position

Brand Positioning
 Tegral is the treatment of first choice in epilepsy because it has proven efficacy & better
tolerability, which brings them back to normal life
 Tegral is the only right treatment for neuropathies because of its efficacy & treatment
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MARKITING PROCESS
cost is better than competition

Strategic Imperation
Strate
Help
Convince
Patients
Ensure
Get GPs toshould
to
gic aware that
diagnose
Physicians
be
educate &&
Switched
Imper
Treat
GPs
Epilepsy
chemists
to isnota to
patients
atives
Epilepsy
prescribe
treatable
substitute
from Epival
disease-&
Tegral in PDN
treat
with Tegral

Positioning By Attributes
As an AED drug, Tegral positions itself on its attributes with high efficacy and economical
pricing.

Positioning Statement: “Tegral is the treatment of choice for epileptic patients

and their caregivers for whom efficacy is the priority over tolerability/convenience.”
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MARKITING PROCESS

MARKETING MIX
The most interesting part of commerce is the marketing; this is the latter addition of the business
tools. It starts with conceiving idea of presenting a product, traditionally producers were
interested in producing those goods only which has existing pull, whereas now because of
marketing tools they are producing with the intention of pushing the product into consumer’s
hand. Marketers use numerous tools to elicit desired response from their target markets. These
tools constitute a marketing mix. Marketing Mix is the set of marketing tools that the firm uses
to pursue its marketing objectives in the target market. McCarthy classified these tools into four
broad groups that he called the four P's of marketing:

Product

Price

Place

Promotion

Product
Defining the characteristics of your product or service to meet the customers' needs.

Price
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MARKITING PROCESS
Deciding on a pricing strategy. Even if you decide not to charge for a service, it is useful to
realize that this is still a pricing strategy. Identifying the total cost to the user (which is likely to
be higher than the charge you make) is a part of the price element.

Place or distribution
Looking at location (e.g. of a library) and where a service is delivered (e.g. are search results
delivered to the user's desktop, office, and pigeonhole - or do they have to collect them).

Promotion
This includes advertising, personal selling (e.g. attending exhibitions), sales promotions (e.g.
special offers), and atmospherics (creating the right impression through the working
environment). Public Relations are included within promotion by many marketing people.

PRICING PLAN
Breakup of the Pricing Of Tegral
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MARKITING PROCESS

Tegral – 200mg (50 Tablets)

Selling Trade Price 121

Retail Price 142

Margin per Distribution

Wholesaler
Manufacture
Distributo
5%
Profit
15% /
Retailer
rMargin
r

Pricing in Comparison to the Competitors:

S.no Product Retail Price per Tablet per mg

1 Tegral Rs 3 200mg

2 Epival Rs 4 250mg

3 Topamax Rs 20 50mg

4 Rivotril Rs 5 2mg
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MARKITING PROCESS

5 Lamictal Rs 15 100mg

Action Plan
Implication
According to the KOLs, they believe that Tegral is a high-value product i.e. premium
product that has not been premium priced, thus this adds as an additional value towards the
attributes of the drug.

Key learning of the pricing strategy

• Bottom line cost should be lowered to gain cost-plus advantage from the product
• Tegral should double its pricing to gain competitive advantage
• Most cost of production is inculcated from raw materials imported and R&D, Tegral
should apply range extension to its current range line i.e 200mg
• Tegral can consider more cost effective ways to produce or distribute its products

OPERATIONAL PLAN
TACTICAL PLAN
Changes
• There should be further steps taken for the brick walling of customers
• Due to rapid changes in Customer Loyalties a more focused strategy should be
implemented
• There should be an effective execution of Leader Development Program
• Right customers selection process should be executed to organise meetings
• Epilepsy Project should be expanded
• Focus to minimise substitution

Key Learning
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MARKITING PROCESS

• More Focus on RMOS

• Better Awareness of Epilepsy Project
• Refine Advertisement media
• More sustained branding
• Powerful message delivery
• Monitor promotion in different indications

Product Plan
The product plan is based on the external and internal analysis of the company. Tegral has a
very strong and innovative brand image and its main strength is its continuous innovation
and product line.
As per the survey conducted to assess Tegral’s non-financial performance critical points that
are of importance to the preparation of a sound product plan are:
 Novartis has a strong corporate image which has a positive impact on the overall
strategic positioning of Tegral in the market. This induces the relations with the Key Opinion
Leaders.
 Tegral has a strong sales force which is effective and efficient as compared to
competition sales team hence it has managed to gain high market share and has the
ability to expand its market.
 The rate of efficacy is very high in Tegral thus due to this there is a shift of patients
from other AEDs to Tegral in later stages of treatment

PRODUCT PORTFOLIO ANALYSIS

This BCG matrix has been developed using the Rx trends. The strategies to be used
according to this approach are

Product BCG Position Recommendation

Tegral Cash Cow Invest to retain market share

Epival Star Invest further to increase market

share
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MARKITING PROCESS

Topamax Star Invest further to increase market

share

Rivotril Dog Harvest then divest.

Implication
The CNS Unit of Novartis has a consistent product line as all these are specialty products and go
through the same distribution channel. These lines are closely related to each other as they
perform the same functions for buyers i.e. treatment of neurological disorders.

Suggested Strategies for CNS Product Mix

Epilepsy:
 Product line should be stretched by introducing high priced molecule to cater the
Epilepsy market
 Tegral should enhance its product depth by introducing suspensions for children
 Tegral should cater the young adult market by providing low dosage tablets in 75 mg
and 150 mg tablets.
Depression:
 Clomfranil should extend its product line and introduce new product that is already
in the pipeline for schizophrenia patients.
Dementia:
 The dementia segment should stretch its line by introducing low priced products to
cater to a low priced segment.
Schizophrenia:

 Clozaril should extend its product mix depth by introducing 50 mg tablets.

PROMOTIONAL PLAN
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MARKITING PROCESS

Positioning
• Express Exelon (brand extension) is the treatment of choice in dementia patients with
Noticeable Change causing distress, because it helps stabilize patients with superior efficacy
that endures.

CPP
“Stability in a time of change”
Actions
• Focus strategy and communication where need for efficacy drives the treatment decision
• Convince Neurologists / Psychiatrists of the importance of dose
• Strong communication of the clinical data to improve efficacy and tolerability perception

C4 Insights Gap Analysis

Customers/Physicians
• Understand what data/messages physicians request to support Exelon’s benefits in target
segments
Customers/Payers
• Understand what information will drive future decisions concerning access to treatment in
AD
How to position “entire clinical package”
Consumers/Patients
• Confirm overlap between patients with rapid disease progression and patients with
demanding caregivers
• Refine target segment description
• Keep focus on Noticeable Change patients
1. More effective drugs
• Improving symptoms
• Stabilizing the patient as long as possible
Action: Focus on unique efficacy data
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MARKITING PROCESS
2. Drug which is well tolerated and convenient to use
Action: 4 week dose period to be highlighted
3. Guidance on how and where to use available treatments (differential usage), supported

by meaningful data

Action: Focus strategy and communication on targeting AD patients and caregivers

4. Treatments for other dementias and MCI

Actions: Trials in VaD, PDD and MCI

BROCHURE
THEME:
 Alzheimers and its affects on those who suffer from it.
 Exelon Express is the ray of hope in the lives of AD patients. It is most effective in
the treatment of Alzheimers.
 To describe Exelon Express’s mechanism of action.

OBJECTIVES:
 To continue being the market leader by reinforcing the benefits of Exelon Expressly
among the target audience.
 Trying to nullify the effects pf other competitive products with different generics on
target market.

FRONT PAGE:
New life, New hope
1ST PAGE
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MARKITING PROCESS
There are many psychosocial issues related to Alzheimers, including the restrictions on driving
and the problems with unemployment, societal discrimination, memory and cognitive
difficulties, mood swings, and medication side effects.

1. Seizures - a symptom of Alzheimers.

 What are seizures and their types?
1. Risk factors in Alzheimers

2ND PAGE:
1. About Exelon Express
2. Seizure Control
3. Compliance
4. Safety
5. Dosage

3RD PAGE:
Comparison of Exelon Express with Competitive products

THE DISTRIBUTION STRATEGY

One of the major strengths is Novartis’ own distribution system which distributes all products of
the organization. To facilitate the distribution throughout Pakistan Novartis has:
• 10 Sales Depots,
• 5 Customer Service Centers, and
• 5 Special Sales Representatives
in different areas for supply of the medicines.
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MARKITING PROCESS
A trained and motivated sales force carries out sales call on pharmacies throughout Pakistan. Out
of 24,000 licensed chemists in Pakistan, Novartis is covering 20,000 and intends to cover the
remaining portion gradually while keeping in front the policy of the company.
In order to cater the need of areas where the depots are not present or the same are pretty far
away, Novartis has established Customer Service Centers (Satellite Offices) which act as order
takers for sales depots. At present there are 5 such centers mainly in Punjab. This project was
initiated to improve availability of products and efficiency.

Distribution Plan
 Focus on improvement of Inventory Turn Over through enhanced projections &
proactive analysis of changes in the market environment, through the Sales Force.
 Attempt to further improve morale of sales force to further improve efficiency of
sales activities which stands as an SCA for the Central Nervous System Unit and
Novartis as a whole.
 Study and identify gaps in territories that might be resulting in loss of sales, and take
measures to fill them.
 Constant feedback and proper analysis of it, to ensure headway to achieve the
Distribution Strategic Intent – “Beat Muller & Phipps, the best distribution firm”

Implications
Either remove Customs Duty or allow compensation in price adjustment. Note that the
adjustment must be to maintain margin not simply to pay the duty. Hence, since
approximately 65% of industry cost base is imported material, the extra increase must be
6.5%.
Withdraw all notion of a high priced group of products on which no upward adjustments
will be allowed.
Introduce the concept of market driven pricing for the "decontrolled" products (i.e.
abolish any control over these prices.