Thesis Paper

On
Marketing Strategies of A Private Brand in Bangladesh-
A Study on Gonoshasthaya Pharmaceuticals Ltd (GPL)

Submitted To
Barota Chakraborty
Assistant Professor
Department Of Marketing
Faculty of Business Studies
Jahangirnagar University

Submitted By
Sabakun Naher Shetu
Department Of Marketing
Course code : Mkt 499 - Research Project
Class Id-642
Exam Roll- 110153
Registration No-30788
Session- 2010-11

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Date Of Submission : 15 December 2014
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 Letter Of Transmittal

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15 December 2014
Barota Chakraborty
Assistant Professor
Department Of Marketing
Jahangirnagar University
Savar, Dhaka-1342

Subject : Submission of Thesis paper on Marketing Strategies of A Private Brand in

Bangladesh- A Study on Gonoshasthaya Pharmaceuticals Ltd (GPL).
Dear Madam,

The thesis report entitled Marketing Strategies of A Private Brand in Bangladesh- A

Study on Gonoshasthaya Pharmaceuticals Ltd (GPL) has been submitted to Department
Of Marketing, Jahangirnagar University, in partial fulfillment of the requirements for the
degree of Bachelor of Business Administration.

While making this report, I came across many hurdles and pleasant experience. I tried
sincerely to comprehend and translate my knowledge in preparing this report. This report
is based on the knowledge and experiences that I have acquired throughout my BBA
program. I must admit that this report has given me a wide range of exposure.

I think that my report does not possess cent percent accuracy. For any kind of
explanations and clarification of any part of this report, I will gladly attend any of your call
to clarify on any point, if necessary.

I sincerely hope this report will receive your attention and approval.

Sincerely Yours

Sabakun Naher Shetu

Department Of Marketing
Course Code: Mkt 499- Research Project
Class Id-642
Exam Roll- 110153
Registration No-30788
Session- 2010-11

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 Acknowledgment
I would like to mention some people with due respect and honor who assisted me,
without any hesitation to complete my project paper within the due time. Therefore I
would like to thank them all from the bottom of heart. In this procedure, at first I would
like to express my gratefulness and harmony to the almighty Allah, the supreme authority
of the Universe, without whose blessings, my existence would be worthless.

Next I would like to express my kindness to my beloved parents whose continuous

inspiration enrages me to make a right move towards the ultimate success of my life.

Then I would like to provide my heartiest appreciation to my project supervisor, Barota

Chakraborty, Assistant Professor, Department of Marketing, Jahangirnagar University for
providing me the ground to earn good insights about this paper. Without her contribution,
it would not be possible for me to complete paper. This is indeed a good way of learning
and I really appreciate her efforts towards giving me a proper line of directions.

I am also extending my heartfelt thanks to others faculties of our Department for their
continuous support, assistance and inspiration through the accomplishment of this task.

Finally, Once again, thanks to my supervisor for her guidance and support throughout the
whole paper presentation and for sparing her valuable time to read my paper and
providing valuable feedback to update it.

I am also hoping that this paper and the understandings of the task will greatly help me in
my future professional life in order to illuminate my career.

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 Table of Contents
Serial Content Page
No No
Executive Summary 6
Part 1 : Introduction
1.0. Introduction 8-9
1.1. Objectives of the study 10
1.2. Background of the study 10-11
1.3. Methodology 11-12
1.4. Limitations of the study 12
Part 2: Literature review
2.0. Literature review 14-17
Part 3: Pharmaceutical industry overview in Bangladesh
3.0. Overview of Pharmaceutical industry in Bangladesh 19
3.1. Pharmaceutical market size and growth rate 19
3.1. Growth potential of the domestic drug market 20
3.2. Market players 21
3.3. Current market overview 22-23
Part 4: Gonoshasthaya Pharmaceuticals Ltd (GPL)
4.0. Overview of Gonoshasthaya Pharmaceuticals Ltd (GPL) 25-26
Part 5: Data analysis
5.0. STP analysis of GPL 28-31
5.1. Marketing Mix of GPL 31-34
5.2. Levels of product (GPL) 34-35
5.3. SWOT analysis (GPL) 36
Part 6: Findings
6.0. Findings 38-39
Part 7: Recommendations and Conclusion
7.0. Recommendations and Conclusion 41-42
Part 8: Bibliography
8.0. Bibliography 44-48
Part 9: Appendix
9.0. Appendix 50-52

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 List of Illustrations

List of Figures
Content Page no
Figure 1: Market share concentration of Pharmaceutical industry 21
Figure 2: Market segmentation 28
Figure 3: Market segmentation of GPL 29
Figure 4: Positioning tagline of GPL 31
Figure 5: Marketing Mix 31
Figure 6: Levels of product (GPL ) 35

List of Tables
Content Page no
Table1: Growth potential of the domestic drug market 20
Table 2: The top 10 pharmaceutical companies of Bangladesh with their market share and 23
growth

Table 3: Overview of GPL 26

Table 4: Distribution outlets of GPL 33
Table 5: SWOT analysis of GPL 36

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 Executive Summary
Private brands are also known as store brands , refer to those brands that are owned by, and sold
through a specific chain of stores. Sometimes a private brand is often associated with advertised
versus unadvertised brands and a private brand is most often unadvertised. Private label
performance within the drug channel has been quite strong during the past year in the global
circumstance. In Bangladesh, we have not clear idea about the private label of drugs company
and they are performing as a private brand. Gonoshasthaya Pharmaceuticals Ltd (GPL) is
considered the pioneer of private label drugs company in Bangladesh. From the birth period of
GPL, providing the quality drugs at an affordable price to the majority of people was the main
concern.

Exploratory research has been applied to know the insights of the present circumstances and then
descriptive research has been applied to figure out the whole scenario of GPLs ,marketing
strategies and their present circumstances. Both primary and secondary data have been used to
complete this study. For primary data collection, the qualitative research has been applied
through direct personal investigation (interview method) as an unstructured questionnaire
method was fully used to explore the study. Data were collected through convenience sampling
approach from different positions of employees of GPL and 30 respondents were considered as a
sample size.

Recommendations have been given according to our findings .

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1.0. Introduction

Bangladesh is one of the most booming economy of the third world countries. Pharmaceuticals
sector is playing the vital role for the rapidly changing of economic trend in Bangladesh.
Pharmaceuticals have a reputation for having the highest profit margin in the world. In our
country, the pharmaceutical sector possesses a sizable growth that has potential to live up the
global standards. This sector is the second highest exchequer of our economy. After the
promulgation of the Drug Control Ordinance-1982, the development of this sector is
accelerating. The professional knowledge, thoughts and innovative ideas of the pharmaceuticals
professionals working in this sector are the key factors of these developments. There are more
than 245 small, medium, large and multinational companies operating in the country producing
around 97% of the total demand (Bangladesh Bureau Of Statistics,(BBS) Annual Bulletin-2010)
This large amount of medicine requirement is fulfilled by our local pharmaceuticals
manufacturers. According to Bangladesh Bureau Of Statistics (BBS), the top 10 pharmaceutical
companies represent about 65% and top 20 pharmaceutical companies represent 83% of total
domestic drug market. The large manufacturers are expanding their business beyond the
boundary. European market is the most lucrative to export our medicine. Pharmaceutical
companies are increasingly evaluating second tier emerging markets. By 2022, this emerging
markets will account for nearly 50% of the global pharmaceutical market. There are about 450
generics registered in Bangladesh. BBS report has also stated that out of these 450 generics, 117
are in the controlled category i.e. in the essential drug list. The remaining 333 generics are in the
decontrolled category, The total number of brand /items that are registered in Bangladesh is
currently estimated to be 5,300, while the total number of dosage forms and strengths are 8,300.

Private label products, otherwise known as store brand or retailer brand, can be found at a wide
variety of retailers. Walmart, Kraft, Target, Kroger, Tesco, Costco, Carrefour etc are large
retailers which have private label products, includes everything from food to aspirin, are much
more obvious than others.(www.wikipedia.com).In Bangladesh, some superstore like Agora,
Meenabazar, Sopno, Nandan etc have launched their own private label branded food products
clothes and others. A few private label pharmaceutical companies exist in Bangladesh.
Gonoshasthaya Pharmaceuticals Limited (GPL) is considered the private brand in the field of
drugs. It has 11 depot as Dhaka, Tongi, Mymensingh, Bogra, Comilla, Rangpur, Sylhet, Barisal,
Bhola, Chittagong and Jessore to run their whole business and make the drugs available to the
customers. Marketing strategies of GPL has slight difference from commercial pharmaceuticals
brand. According to GPL website information, GPL is a private limited company established in
1981. 100% share is owned by GK Trust (Gonoshasthaya Kendra) to ensure the supply of high
quality, essential drugs at affordable prices within the reach to common people. It is one of the
largest pharmaceutical production units in Bangladesh. It was established to produce WHO listed
quality accepted essential drugs, branded with generic names. It has earned quality acceptance of
WHO and international concerned bodies. To set standards and examples for the National Drug
Policy Of Bangladesh is one of the objectives of GPL (official website of gonopharma).

Never to make the distribution of the products of GPL a monopoly of a few distributors which is
the major principles of GPL. GPL produces drugs for the wellbeing of the common people and
their main concern is to provide these to the needy people. They supply the drugs all over the
country specially the deprived area at the lowest cost than their competitors through their 11
depots. The main focus of them is to ensure the health care of the unprivileged people. To

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produce drugs on the basis of the disease need of the under privileged people rather than on the
basis of the marketability only. They produce WTO listed 129 drugs with generic names and
mostly it starts with G.

Pharmaceutical is an emergency product, and its demand is not akin to other products. Not only
consumers show inelastic demand, but also the demand is more driven by doctors prescription
and product availability compared to end customer demand. For this, the firms engage several
product promotion strategies, including aggressive product price, credit policy and establishing
relationships with doctors, hospitals and pharmacies. The common strategies is to employ
medical representatives to establish these relationships.

Marketing is the process by which companies create value for customers and build strong
customer relationships in order to capture value from customer in return (Kotler, 2005).
Marketing is the backbone of all industries. Though pharmaceuticals produce life saving drugs,
they also need marketing. But their marketing is to some extent different from other industries
GPL uses their own medical representatives to deliver their drugs to their target groups. Their
drugs quality is comparatively better than their competitors. But they are not following the
aggressive marketing strategies to promote their drugs. They believe on serving the deprive
people providing their quality drugs within the lower cost. In this competitive drugs market, the
manufacturers use aggressive marketing strategies and make the drugs availability at the low end
of the customers. But GPL is totally different from others commercial manufacturers. They use
marketing strategies but a limited way. The trust of GPL has some restrictions that are not
allowed them to use a vast scale of marketing strategies. But they have one of the most important
principles, never to make the distribution of the products of GPL, a monopoly of few
distributors. That means they always want to ensure the availability of their drugs to the lower
end. Marketing strategies is the best way to make their path clear. At a certain time, the drugs of
GPL have more popularity among the certain group of consumers but for some reasons they are
losing a huge market and competitors replace themselves. Drugs packaging is considered one of
the vital part for the preservation. If we compare the packaging of GPL drugs, we will notice the
packaging is not too much satisfactory than their competitors. Drugs Distribution or Place is
another factor to make the product availability to the end users. Dhanmondi GPL branch is the
center point of drugs distribution of this company. The all types of drugs are found here produced
by Gonoshasthaya Pharmaceuticals Limited and supply anywhere of our country.

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1.1.Objectives of the study

The main objective of this study is to identify the marketing strategies of Gonoshasthaya
Pharmaceuticals Limited (GPL) as a private brand in Bangladesh.

Specific objectives

The study
1 has also stated some specific objectives and these are given below-
To identify STP analysis (Segmentation- Targeting-Positioning) of GPL
2
To identify the marketing mix framework of GPL.
3
To identify the product levels of GPL
4
To recommend specific marketing policy to improve their present scenario.

1.2. Background of the study

Private brand, a brand that is owned by the products reseller rather than by its manufacturer. In
rare instances, the reseller may be the manufacturer as well. The term is often associated with (1)
advertised versus unadvertised brand (a private brand is most often unadvertised), and (2)
national versus regional or local brand (a private brand is usually less than national). These
distinctions have become clouded by large retail and wholesale organizations (e.g. Sears, Kroger,
K mart, Ace) who advertise their private brand and market them nationally and internationally.

Private label brands, also known as store brands, refer to those brands that are owned by , and
sold through a specific chain of stores. National brands and private label marketers have long
been locked in a dance, each vying for share of consumers expenditures , and the battle is fierce ,
even small share wins provide a significant boost to the bottom line.

IRI Private Label: Balancing Quality and Value ,November 2013 has stated that private label
performance within the drug channel has been quite strong during the past year in the global
circumstances. Private label relative strength across the drug and convenience channel is
attributed to a number of factor. Throughout its history, private label has been mislabeled or
misrepresented as being cheap in quality. Most private label products suffer this stigma because
they are priced lower than the competition. Bargain pricing is part of their identity. The idea of
private label frequently is born out of a competitive reaction to high-priced merchandise.
Customers assume or are told by the competition that something priced lower represents lower
quality. In Bangladesh, we have not clear idea about the private label of drugs company and they
are performing as a private brand. According to gonopharma web information, Gonoshasthaya
Pharmaceuticls Limited (GPL) is considered the pioneer of private label drugs manufacturing
company in Bangladesh. Though GPL is running under the GK Trust from the birth period of this
company and the main focus of this company is to providing the essential drugs listed by WHO
in branded generic name and delivering the quality drugs at an affordable price for

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majority of the people of Bangladesh. It is also mentioned that GPL is delivering their drugs to
their customers through their specific chain store Gonoshasthaya Pharma about 11 depots in
Bangladesh,which makes it private label brand in pharmaceutical sector.

A Marketing strategies helps us to put the right mix of marketing approaches in place so that a
company can engage with all the marketing functions in an effective and efficient way. The
currently implementing marketing strategies by GPL is so called but they are trying to modify to
cope-up-with the present circumstances in the competitive world. Their mission is not competing
with the commercial manufacturers but to ensure the essential drugs to all levels of customers.
Here, our study is based on Marketing Strategies of A Private Brand in Bangladesh- A study on
Gonoshasthaya Pharmaceuticals Limited (GPL). There are some specific objectives too. To
identify STP analysis of GPL, to identify the marketing mix framework of GPL, to identify the
product levels of GPL and to recommend the specific marketing policy to improve the present
scenario are the specific objectives of this study. GPL is considered the Private pharmaceutical
brand in Bangladesh. To meet the demands of the customers the marketing activities are
conducting by GPL marketing department.

The marketing strategies of GPL is somewhat different than commercial drugs manufacturing
companies and they are looking forward to develop their previous marketing strategies as a better
way to communicate with their stakeholders to gain Win-Win situation than ever.

1.3. Methodology

Basically, to conduct any kind of study the two types of research should use; one is exploratory
research and second one is descriptive research. To figure out the real analysis in this present
circumstances these two types of research technique are appropriate.

To discover the whole issue of any study firstly the researcher should conduct the exploratory
research to understand the basic insights into and comprehension of the problem situation. For
this reason, to analyze the Marketing Strategies Of A Private Brand in Bangladesh - A Study on
Gonoshasthaya Pharmaceuticals Limited (GPL) the exploratory research has conducted to
acquire a deeper and hence more useful understandings regarding this issue.

After conducting the exploratory research, we need to figure out the detail of this study. Here , to
analyze the function of the Marketing Strategies Of A Private Brand in Bangladesh- A Study on
Gonoshasthaya Pharmaceuticals Limited (GPL) a descriptive research has been applied and
What exists with respect in the present situation regarding this issue has described to use the
collected information.

Data collection is a term used to describe a process of preparing and collecting data through
systematic ways from various sources. To analyze this study the two types of data has been
collected. These are given below-

Primary data collection specifically to address the researchers problem at the hand (Malhotra
& Dash, 2013). To get the accurate information, primary data collection is very crucial for our

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study. As the necessity of the information, primary data has been collected through qualitative
research approach and tend to use. Unstructured method of data collection to fully explore the
study. Direct Personal Investigation (Interview Method) has been applied to collect information
through open ended questions.

The study has adopted with qualitative method as mentioned in the previous topic. The data has
been obtained by interview method. A marketing strategies needs crucial information from
personal opinions and environmental impacts. In the qualitative component, the interview with
the marketing managers of (GPL) and the different level of employees who are directly and
indirectly conducted marketing policy of GPL have been used for achieving the objective of this
study. Some notes have taken during the interviews and all the information were written in
document format.

Secondary sources of data are those that maybe available in the published or unpublished form.
For our analyzing purpose, Secondary sources of data has been collected from different
published sources like books journals, newspapers and magazines, websites.

To complete this study convenience sampling has been applied because of limited time frame
and it was not possible to conduct the direct personnel investigation (Interview method) to all
marketing employees.

Data were collected through convenience sampling approach from different positions of
employees of GPL. Data has been collected from 30 respondents to complete this study.

Our study is mainly based on qualitative research in nature. The limitation of secondary data,
mostly information has been collected through unstructured open-ended questionnaire and field
notes.

1.4. Limitations of the study

Like every study the limitations of this study is not out of the questions. The following points are
figured out as the limitations of this study-
1
The most important limitation is the time constraint to complete the study
properly.
2
This study is also suffered from inadequate secondary information.

3 It was not possible to collect the exact marketing related information because of the confidentiality
of the companys rules and regulation.

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2. Literature Review

Private Brands

Fernndez and Reinares, 1998 has stated that in the evolution of the Private Brands, there are
two different kinds of strategies that can be identified. Firstly, the strategies of Private Brands
(they seek the identification between the name of the Chain and the product). In second place, we
have the strategies of the brands that have a different name than the distributor (do not seek the
identification between distributor and product through the brand, but through different strategies,
incentiving the purchase of the product using techniques of merchandising, promotions or though
the communication to consumer saying that is a product selected by the own establishment
(Fernndez and Reinares, 1998).

According to Murphy, 1987, Private label brands are available in a multitude of formats. There
are, essentially, three varieties of private label brands. The first being a representative brand,
which is a private label brand that through its name and packaging announces that it is produced
and solely owned by the retailer. The second being an exclusive private label brand, which is
owned and produced by the retailer, yet this fact is not explicitly conveyed to the consumer
through brand name and packaging. The last type is confined labels. These are brands that are
not owned by the retailer but are found exclusively in their stores. He also said that this type of
private label brand has not been incorporated in this research study. Manufacturer brands on the
other hand are controlled and produced by manufacturers and sold through a plethora of retailers.
In terms of branding, the general consensus appears to be that private label brands are considered
every bit as much a brand as manufacturers (Murphy, 1987).

Labeaga et al. (2007) contend that private labels assist building loyalty by differentiating the
retailer. These brands are available at one retailer exclusively whilst manufacturer brands are
available at many competing outlets.

Collins and Burt, 2003 has said that regular consumers of private label brands are confronted
with psychological costs when switching retailers as their preferred private label choice is no
longer available. As a result, consumers who change retailers undergo demanding cognitive
processes by evaluating other brands, including unfamiliar store brands, in choosing a new
product. Thus, research indicates that consumers who purchase private label brands regularly do
not only become loyal to that particular brand but also to the retailer through which it is sold
(Collins and Burt, 2003).

Walker (2006) suggests that due to relatively lower prices, consumer quality perceptions are
negatively impacted. Private label brands are thus frequently seen as inferior quality alternatives.
This is reiterated by De Wulf et al. (2005) who suggest that consumers perceive manufacturer
brands to be superior to private label brands. Yet, Verhoef et al. (2002) present a contrasting
opinion on consumer quality perceptions of private label brands, contending that consumers do
indeed foster a positive attitude towards these brands.

Smith and Sparks (1993) appear to view the situation in a similar light, proposing that the
perceptual gap between private label and manufacturer brands is narrowing. They also said that

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whilst debate is certainly present in the literature with regards to trends in consumer perceptions
of private label brands, these brands do seem to represent value to hard pressed consumers.

From a theoretical point of view, Gabrielsen and Srgard (2007) showed that under some
circumstances the introduction of private labels decreases both consumer and total welfare. In
that case the price of existing products increases with the entry of private labels. In the
pharmaceutical industry, the entry of generic product (when patent expires) causes similar
phenomena. Research on the US market showed that the introduction of a generic product
frequently causes an increase in the price of the incumbent product (e.g. Frank and Salkever,
1997). The generic product attracts switching consumers while the incumbent product
concentrates on the inelastic part of the demand which explains the price increase.

According to Frank and Salkever, the increase in price is not sufficient to annihilate the positive
impact on consumer welfare of the entry of a generic product. This increase in price is however
not systematic as exemplified by the analysis of Bergman and Rudholm (2003) on the
pharmaceutical market in Sweden.

Marketing Strategies

Business is focusing on people, so as the marketing. Marketing is about people's need, and then
provides customers the appropriate price, which can bring handsome profit to the company
(Sexton2006,7). Following Kotler and Keller's (2009) words, it manage customer and satisfies
with customers' needs, the way to bring the exchanged relationships through creating value and
satisfying needs and wants.

Info Entrepreneurs 2013 has found out, strategies is about the business trying to get in the long-
term; what kind of activities are involved and business can fit which markets; how can the
business perform better than others in their market? What resources are required for complete;
what external and environment factors affect the business ability to complete. (info
entrepreneurs 2013)

Carmignano (1993) figured out an interesting classification about the uses of store brand as
strategic tool for marketing in the distribution development. The current work is based on this
classification, reflecting also upon some features of the current market. He also pointed out that
there are four main fields in which strategic marketing tools are defined: management of
assortments, improvement of profit, reorganization of vertical relations in the channel and
competitive differentiation and customers fidelization.

Following Johnson and Scholes's (2002,10) words, strategies is the direction and scope of a
company through the long-term, which gets benefits for the company through its configuration of
resources within fickle environment and to satisfied stakeholder expectation. The core of the
strategies is the meaning to achieve the company's goal, market position and strengthen company
position can be staked out by used plan management. Company can achieve the competitive
power; attract customers and conduct operations, both of these set objectives for a company
could be achieved (Tompson & Strickland 1998,18). According to Tompson and Strickland
(1998,18), company can easily understand the status by strategies, which part is strong or weak

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in the company, and strategies can give the future expectation for the business, which
opportunities can get, and what kind of plans are efficient.

Promotion-induced subconscious influence is a widely studied phenomenon. A 10-year study of

internists at seven university hospitals, published in 1990, found that frequent contact with sales
representatives also changed prescription practice (Israel, 2003, p. 1533). Eleven years later, in a
2001 study, Parker and Pettijohn reach the same conclusion: Doctors who had contact with
pharmaceutical representatives were 13 times more likely to ask that a particular drug be added
to an insurance plans list of approved drugs (2003, p. 283).The report also pointed out that an
ideal physician provides his or her patients the best available care for the most economical price;
however, despite physicians reassurances, studies show that promotions influence how they
prescribe. If doctors under subconscious influence prescribe the promoted drug and it is a more
expensive alternative, thereby causing patients to incur higher treatment costs, in theory at least,
the patients are still receiving quality care (Parker and Pettijohn, 2003,p.283).

Chowdhury et al. 2006, Islam, 2008 has found out that the local pharmaceutical market of
Bangladesh is increasing day by day. Its promotional budget is booming due to bull-fight
competition and no market segregation among too many companies. They also said that now-a-
days pharmaceutical promotion attracts attention of the people due to ambiguous and irrational
prescriptions of pharmaceuticals by many physicians. Unethical of marketing of drugs is quite
common in Bangladesh. Major unethical practices observed in our pharmaceutical marketing
include off-label promotion of drugs, delivery of misinformation about the product, evasion of
contraindications , exaggeration of efficacy , and understanding of adverse effects (Chowdhury
et al. 2006, Islam ,2008).

Actually, there has been no proper drug use study in the country( Chowdhury, 2005).
Indiscriminate uses of clinically inappropriate and inefficient medicines are a serious problem
here. More than 50% of the medicines in Bangladesh are inappropriately prescribed, dispensed
or sold ( Chowdhury et al, 2006).

Pharmaceuticals Industry

"An Overview of the Pharmaceutical Sector in Bangladesh" by Saad (2012), the pharmaceutical
industry of Bangladesh is one of the most significant and technology advanced sectors in the
country.

Infrastructure development and the deployment of trained manpower are now perceived as two
of the essential prerequisites for the implementation of national pharmaceutical policies
(Jayasuriya, 1991).

Pharmaceuticals have greatly improved health in developing countries, but many people in
developing countries do not obtain even inexpensive pharmaceuticals and little pharmaceutical
R&D is oriented towards products needed by developing countries, such as a malaria vaccine
and access to existing products could be improved by facilitating differential pricing (Kremer,
2002). It is suggested that under conditions of rapidly changing demand (as found in
pharmaceuticals), price-caps could be manipulated and using simulations.

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The recent acquisition of the German pharmaceuticals and diagnostics company Boehringer
Mannheim by F Hoffmann - La Roche illustrates how such huge business transactions meet with
trade unions which are completely unprepared (Zeller, 2000). The number of new drugs
approved in the United States each year is huge that is readily available, but it is known that no
systematic analyses of the long-term patterns of new drug approvals by firm have been reported
in the literature (DiMasi, 2000).

The pharmaceutical industry arguably has the worst record of serious corporate crime of any
industry, international law evasion rather than outright law violation has been the biggest
problem in the industry. Consumer and professional activism and a variety of levels of
selfregulation in combination with state, regional, and international regulation are all important
to understanding how progress is possible (Braithwaite,1993).

Though some significant problems are prevailing in this sector, pharmaceutical industry in
Bangladesh has achieved remarkable growth and has ample opportunity to grow in future
(Shariat Ullah & Razzak, 2006).

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3.0. Overview of Pharmaceuticals industry in Bangladesh

The Pharmaceutical sector, which is widely regarded as a hi-tech industry, is the most
developed among the manufacturing industries in Bangladesh. After the promulgation of Drug
Control Ordinance - 1982, the development of this sector was accelerated. The professional
knowledge, thoughts and innovative ideas of the pharmacists working in this sector are the key
factors for this development. According to BBS report, due to recent development of this sector
we are exporting medicines to global market including European market. This sector is also
providing 95% of the total medicine requirement of the local market. Leading Pharmaceutical
Companies are expanding their business with the aim to expand export market. Recently few
new industries have been established with hi tech equipments and professionals which will
enhance the strength of this sector. There are several sectors on which Bangladesh can be proud
of and undoubtedly the pharmaceutical sector is one of these sectors, rather it is the sector, which
is the second-largest contributor to the government exchequer.

3.1. Pharmaceutical market size and growth rate

BBS report has mentioned that Bangladeshi pharmaceutical firms focus primarily on branded
generic final formulations using imported APIs. He also stated that About 80% of the drugs sold
in Bangladesh are generics and 20% are patented drugs. The country manufactures about 450
generic drugs for 5,300 registered brands which have 8,300 different forms of dosages and
strengths. These include a wide range of products from anti-ulcerants, flouroquinolones, anti-
rheumatic non-steroid drugs, non-narcotic analgesics, antihistamines, and oral anti-diabetic
drugs. Some larger firms are also starting to produce anti-cancer and anti-retroviral drugs
(Sampath 2007).

According to IMS, a US-based market research firm, the retail market size is estimated to be
around BDT 55 billion, which grew by 16.8% in 2009. The market size in 2008 was BDT 47
billion with a growth of 6.9%. The actual size of the market may vary slightly since IMS does
not include the rural market in their survey. However, the deviation is estimated to be not more
than 5-10% in either direction. Unfortunately, there is no solid information source in Bangladesh
other than IMS. The retail market is about 90% of the total market. In that respect, the total
market size is more than BDT 60 billion.

During the last two decades the pharmaceutical industry of Bangladesh has been taken a newer
height. Besides meeting the 94% need of local demand we are exporting the medicines into 77
countries. This sector contributes a lot into the national economy by exporting raw materials and
finished goods. Bangladesh is ready to enter the Highly Regulated Market. For this reason
different pharmaceutical companies are investing to build high tech pharmaceutical industries.
Some renowned companies have already entered the Highly Regulated Market and got the UK
MHRA, EU, Philippines, TGA Australia and GCC approval and some are in the process to get
the USFDA & UK MHRA approval. Through this accreditation these companies will be able to
export medicine and through contract manufacturing agreement.

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3.2. Growth potential of the domestic drug market

In order to get a sense of what might potentially be the size of the drug market let us consider a
simple model. Here we assume that the economy will have an average GDP growth of 6%. The
economy will witness an uptrend in healthcare expenditure because of the growing health
consciousness and the increased demand for wellness drugs as well as government
expenditure. This means that drug and non-drug healthcare expenditure will increase at about the
same pace. So, we also assume that the percentage spent on drug as part of total healthcare
expenditure will remain similar current level, which is about 28%. These simple assumptions
present an impressive growth upside of 83.6% by 2015 with a 6 year CAGR of 10.7%. Recent
growth figures have proved to be better than the projection, which demonstrates that the growth
prospect of the sector is justified.

2009 2010 2011 2012 2013 2014 2015

GDP(MM 6,149,432 6,518,398 6,909,502 7,324,072 7,763,516 8,229,327 8,723,087

BDT)

Healthcare 3.4% 3.6% 3.8% 4% 4.2% 4.3% 4.4%

expenditure
% of GDP

Healthcare 209,081 234,662 262,561 292,968 326,068 353,861 383,861

expenditure
(MM BDT)

Drug/ 60,000 67,341 75,347 84,072 93,572 101,548 110,144

Medicine
sales(MM
BDT)

Average 6%
GDP
growth rate

Growth 83.6%
upside

CAGR 10.7%

Table 1: Growth potential of the domestic drug market.

Source : Bangladesh Bank, WHO,IMS Health and analysts estimate

2
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3.3.Market Players

Domestically, Bangladeshi companies including the locally based MNCs produce 95%-97% of
the drugs and the rest are imported. Although about 250 pharmaceutical companies are registered
in Bangladesh, less than 100 are actively producing drugs.

Chowdhury 2006 has mentioned that domestically, Bangladeshi firms generate 82% of the
market in pharmaceuticals; locally based MNCs account for 13%, and the final 5% is imported.
Although 235 pharmaceutical companies are registered in Bangladesh, only about 80 are actively
producing drugs. The top 30 to 40 companies dominate almost the entire market; the top 10 hold
70% of domestic market share; and the top two, BEXIMCO and SQUARE, capture over 30% of
the market (Chowdhury 2006). The industry structure is relatively concentrated. In comparison,
the top ten Japanese firms generated approximately 45% of the domestic industry revenue in
2006, while the top ten UK firms generated approximately 53%, and the top ten German firms
generated approximately 60% (IMS Health 2006).

Figure 1: Market share concentration of Pharmaceuticals industry .

Source : Bangladesh Association Of Pharmaceutical Industries (BAPI) and Newspaper

reports

Square Pharmaceuticals is the stand out market leader with a market share of 19.3% which
posted domestic revenue of BDT 11.2 billion in the last four quarters (Apr 09 - Mar 10). Their
nearest competitors are Incepta Pharmaceuticals and Beximco Pharmaceuticals with market
shares of 8.5% and 7.6% respectively. Incepta and Beximco had BDT 4.9 billion and BDT 4.4
billion in domestic sales for the last four quarters. Although a number of MNCs are operational
in Bangladesh market, no MNCs are in the top ten in terms of domestic sales.

2
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Because Bangladesh API capacity is insignificant, pharmaceutical companies import
approximately 80% of their APIs (BBS 2010). The report has also mentioned fifteen to twenty
Bangladeshi firms are involved in the manufacture of about twenty APIs, but they usually run the
relatively easier final chemical synthesis stage with API intermediaries, instead of the complete
chemical synthesis. The other 1,000 required APIs are imported. Approximately 75-80% of the
imported APIs are generic.

3.3. Current Market Review

In Bangladesh, pharmaceutical is now one of the fastest growing sectors. In 2013, the total size
of the pharmaceutical market of Bangladesh was estimated to be approximate Tk. 101 Billion.
With an annual growth rate of about 8.12 %, Bangladesh Pharmaceutical Industry is now self-
sufficient in meeting the local demand. Bangladesh pharmaceutical industry is a contributor to
the national exchequer, and it is the largest white-collar intensive employment sector of the
country.

According to IMS Report of 4th quarter of 2013 the current local pharmaceutical market scenario
of Bangladesh is as follows:

1 Total Market: 101,685,403,612 BDT

2 Annual Growth: 8.12%

Here is a view of top ten pharmaceutical companies of Bangladesh with their market share and
growth:

Square Pharmaceuticals retained the top position with its local sales figure reaching Tk 19.72
billion in 2013 in the country's Tk 101 billion pharmaceutical market followed by Incepta
Pharmaceuticals. Its total sales were Tk 10 billion in 2013. Beximco Pharma's position in the
country's top 10 pharmaceutical companies was the third in terms of sales. Fourth position took
by the Opsonin Pharma Ltd., established in 1956. Renata took the fifth position. Sanofi-Aventis
ranked the second among the multinational pharmaceutical companies followed by
GlaxoSmithKline.

22
SL.No Name of the company Market size Market share Market growth
(%)
(BDT) (%)

1. Square 19,722,066,693 19.4 12.55

2. Incepta Pharma 10,184,993,624 10.02 11.84

3. Beximco 8,967,999,031 8.82 8.04

4. Opsonis Pharma 5,302,711,389 5.21 4.77

5. Renata 5,056,968,911 4.97 8.75

6. Eskayef 4,547,963,290 4.47 4.28

7. Aristopharma 4,382,948,837 4.31 11.37

8. A.C.I 4,263,630,198 4.19 8.69

9. Acme 3,954,249,448 3.89 5.76

10. Drug International 3,924,562,931 3.86 10.51

Table 2: The top ten pharmaceutical companies of Bangladesh with their market share
and growth.

Source : Bangladesh Association Of Pharmaceutical Industries (BAPI ) and Newspaper

reports

2
3
2
4
4.0. Overview of Gonoshasthaya Pharmaceuticals Limited (GPL)
Gonoshasthaya Pharmaceuticals Limited (GPL) is a Private Limited Company established in
1981, whose 100% share is owned by Gonoshasthaya Kendra (Peoples Health Center), a
charitable trust. It is one of the largest pharmaceutical production units in Bangladesh,
established with the aim of producing WHO listed essential drugs in branded generic names with
assured internationally expected quality and at resonable price.

GPL set an example of Technolgy Transfer to the developing countries, discarding the parable
that Less Developed Countries are unable to adapt and use technology required for quality drug
manufacture to fulfil the basic needs of their peoples health care.

Objectives
1 Of GPL
To produce essential drugs listed by WHO in bramded generic name.
2
To produce quality drugs at an affordable price for majority of the people of Bangladesh.
3
To prevent unethical use of drugs, Promote Rational Prescription.
4
To set standards and examples for the National Drug Policy Of Bangladesh.

5 To develop human resources for Research, Technology Transfer and Quality Assurance.

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 GPL at a Glance

Year of production 1981

Location of the factory Near National Mausoleum at Savar, Dhaka-

1344, Bangladesh

Manpower 275

Production capacity per annum Tablet 420 million

Capsule 140 million

Dry Syrup 1.5 million

Ampoules 3 million

Vials: Liquid 1.2 million

Vials: Lyophil 4 million

EYE/Ear drop 1.5 million

Ointment 4 million

Liquids 3.9 million

Sachets 15 million

IV Fluid 0.5 million

Plant Area 13,378 Sq.m

Production Floor Area 11,628 Sq.m

QC Lab Area 1,750 Sq.m

Table 3: Overview of GPL

Source :Official website of Gonosasthaya Pharmaceuticals Limited(GPL)

26
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5.0. STP Analysis of GPL
Market Segmentation

" Market segmentation consists of taking the total heterogeneous market for a product and
dividing it into several sub-markets or segments each of which tends to be homogeneous in all
significant aspects." (Stanton, 1983, cited in Vieceli & Valos 1998, 137)

The market can be divided into distinct groups of buyers by market segmentation, and it is a
process to give direction to customer's servers, what kind of products and needs the customer
will be satisfied (Amstrong & Kotler 2010,78). Divide the market into smaller segments that
could be improved efficiently with products and services, it can match the company's unique
wants and needs (Kotler & Keller 2009, 214-215).

The perceived value of market segmentation in the pharmaceutical industry has been explored by
MacLennan and Mackenzie (2000). Segmentation is a view that not all customers are the same.
Thus markets consist of a number of segments, each segment consisting of homogeneous
customers. There are two main segmentation approaches: needs-based and characteristics-based.

Figure 2: Market segmentation

Gonoshasthaya Pharmaceuticals Limited (GPL) is following needs based segmentation. Based

on consumer needs they produce the all kinds of drugs and prevent the unethical use of drugs,
Promote Rational Prescription. Almost 129 listed drugs are produced by GPL based on different
consumer needs. But all drugs are not profitable to sustain in this competitive market situation.
Identifiable segment, Stability over time are the major criteria for evaluating a potential
segmentation strategies .GPL is trying to follow these segmentation criteria to set up their market
segmentation strategies. The company has divided the whole product market into two segments;
meditative and health care drugs. The meditative drugs are taking care for peoples common
disease control such as tablet, capsule, dry syrup and so on. Health care drugs are using for
peoples personal care as eye and ear drop, ointment, liquids. Pethidine is indicated for the
treatment of moderate to severe pain, and is delivered as a hydrochloride salt in tablets, as a
2
8
syrup, or by intramuscular, subcutaneous or intravenous injection (Wikipedia). GPL is the
monopoly market player in Bangladesh; almost 90% of total Pethidine production produced and
supplied by GPL. As we know, Pethidine is used for lowering the severe pain and operation
purposes and the demand of Pethidine will always be higher and has the stability over
time(official website of gonopharma). Others listed drugs are produced based on consumer needs
of different drugs types and drugs variant.

Figure 3: Market segmentation of GPL

Market Targeting

Market targeting means that a complete profile of the different segments has been developed for
the market by a marketer. The role of market targeting is used to select target markets and then
choose available methods for the organization. (Cant & Strydom & Jooste & Plessis 2009,128.)

It is time to a company decide which target markets need to be focused after targeting the
market. The first activity is to identify the market size, growth and segment attractiveness. In
addition, helping the greatest segment may earn the less potential profit than helping the right
target market with relative resources needed. The most attractive ones are not always the
greatest. (Kotler & Keller 2009, 214-215.)

The best objectives and long-term goals are needed though the company has chosen the most
attractive market segment to serve. There are one, two or multiple market segments that may be
chosen by marketers, and the options are between three broad approaches to the market:
concentrated marketing, differentiated marketing and undifferentiated marketing (Strydom &
Jooste & Plessis 2009,134).

2
9
The prime motto of GPL is to ensure the essential drugs listed by WHO in branded generic name
at an affordable price for majority of the people of Bangladesh. That means the undifferentiated
marketing strategies is followed by GPL. Undifferentiated marketing is a strategies that a
company used the whole market as their target market, considering the demand in the general
market, and do not divide them into differences, according to the product, price. In addition, the
company focus on common needs replaces differentiating the market segments ( Kotler
1994,286). The local hospital, drugstore and the all levels of customers are in the main targeted
categories of GPL.

Product Positioning

Products have not set the position, although market segmentations have been chosen. In
customers' mind, the buying power is quite much affected by brands or product's position. The
first thing that companies need is to explore whether the product are taking a place in customers'
mind. Maybe someone will ask why product's position is important in a company's marketing
strategies? Marketing is developing every moment. With various products of different brands,
customers can easily get confused of their best options (Whitesmokereview2013). If a company
wanted to make consumers feel comfortable when choosing their product, a successful
positioning map is needed.

Deeply, choosing and implementing a correct positioning strategies had three steps. The first step
is identity possible competitive advantage; the second step is selecting the best competition
advantage; the third step is communicating the right competition advantage. ( Lovelock & Wirtz
2004, 64.)

Like every company GPL is used their positioning tagline onto their drugs packaging, each and
every material that GPL represents their identity towards their target customers, stakeholders,
doctors, sales representatives, pharmacy owners and others so on. According to gonopharmas

official website news, the Bengali positioning tagline and the English
tagline Mission for a Healthy Nation which represents the total overview of GPL and its motto
to run their pharmaceutical company. Their main concern is never to push the people for
unnecessary prescriptions and produce the drugs on the basis of disease-need of the
underprivileged people at an affordable price. Their positioning statement is symbolized as
cultural symbol to differentiate them from the competitors. It is one of the strongest points to
create their image into the customers mind and uphold their motto to inside and outside of the
world through this tagline. The most of the people have the perception that GPL is producing the
drugs only for the deprived people at the lowest cost . But the majority have no idea about
GPLs higher quality of drugs are produced comparatively better than any commercial drugs
manufacturers. Its the time to change this vague perception and focus on their main targeting
strategies. It could be the another positioning strategies of GPL.

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 Figure 4: Positioning tagline of GPL

5.1. Marketing Mix Of GPL

Marketing mix is originating from the single P (price) of microeconomic theory (Chong, 2003).
McCarthy (1964) offered the marketing mix, often referred to as the 4Ps, as a means of
translating marketing planning into practice (Bennett, 1997). The marketing mix is a model of
creating and implementing marketing strategies. It stresses the blending of various factors in
such a way that both organizational and consumer objectives are attained. The elements are the
marketing tactics, also known as the 'four Ps', the marketing mix elements are price, place,
product, and promotion. The model was developed by Neil Borden (Borden, N. 1964) who first
started using the phrase in 1949. When blending the mix elements, marketers must consider their
target market. They must understand the wants and needs of the market customer then use these
mix elements in constructing and formulating appropriate marketing strategies and plans that will
satisfy these wants.

Figure 5: Marketing Mix

31
Marketing strategies of Gonoshasthaya Pharmaceuticals Limited (GPL) has been applied in
every possible way. It has been found out that marketing activities are applied in too much
narrower way than others commercial drugs manufacturers. Lacking of manpower, managerial
decisional problems and financial problems have restricted the implementation of marketing
strategies in a proper way of GPL. Field force and in proper logistic support have hampered the
whole function of GPLs marketing strategies. The marketing mix of GPL that has been applied
in the current scenario discuss in a short while.

Product

Product is some good or service that a company offers in the market. (Kotler P, Armstrong,
Wong, & Saunders, 2008) Product is something that can be offered to the customers for
attention, acquisition, or consumption and satisfies some want or need. (Kotler P, Armstrong,
Saunders, & Wong, 1999).

Gonoshasthaya Pharmaceuticals Limited (GPL) has 129 essential drugs listed licensed in
branded generic name. Tablet, Capsule, Dry Syrup, Ampoules, Vials: Liquid, Vials: Lyophil,
Eye/Ear drop, Ointment, Liquids, Sachets, IV Fluid (Table:3) have the highest capacity of
producing these drugs.

Price

Price is what a customer have to pay to acquire a product, or cost of a product to a customer.
Price is considered to be the most significant factor that affects consumers choice (Kotler P. ,
Armstrong, Saunders, & Wong, 1999).

The prices of products under controlled category are determined by the Government while the
manufacturing companies are allowed to fix prices of their products that are under decontrolled
categories. Gonoshasthaya Pharmaceuticals Limited (GPL) has fixed the price at an affordable
price for majority of the people of Bangladesh. Drugs price is relatively lower than the
commercial manufacturers. 15% VAT is applicable for pricing the drugs. These Vatable price is
mandatory for price setting. According to gonopharmas official website news, after calculating
15% VAT, GPL has applied 13.33% VAT on Trade Price. The difference between Trade price
with VAT and Trade price without VAT is the Vatable price of GPL. Trade price without VAT and
VAT 15% on Vatable price , the total Trade price with VAT is GPLs drugs pricing strategies. The
difference between total Trade price and the mark up price is the MRP (Maximum Retail Price)
of GPL .

Place

Place refers to the availability of the product to the targeted customers. (Kotler P, Armstrong,
Saunders, & Wong, 1999) A company can adopt multiple channels to get its product to the
customers (Kotler P, Armstrong, Saunders, & Wong, 2002). These channels can be direct and
indirect. Choice of channel has strong effect on sales (Keller K. L., 1998).

Place/ distribution channels are the strongest network to distribute the drugs through all parts of
the country. Gonoshasthaya Pharmaceuticals Limited (GPL) has 11 depots to deliver the drugs to
the all levels of customers. 11 regional marketing managers are controlling the divisional supply
3
2
chain of GPL. The head of marketing manager of GPL has the controlling power over the
regional marketing managers. All the distribution functions are monitored through the chain of
command. The sales representatives of GPL deliver the drugs to the nearby chemist. GPL also
supply the drugs to the hospital of Gonoshasthaya Kendra for the underprivileged people.

Dhaka Bogra Sylhet Barisal

(Dhaka city- 4 Green

Square, Green Road)

Tongi Rangpur Chittagong Bhola

Mymenshingh Comilla Jessore

Table 4: Distribution outlets of GPL .

Promotion

Kotler (2002) defines promotion as the activities a company performs in order to communicate to
its existing and potential customers. Multiple channels are used to communicate to different
parties (Distributors, customers) and different means could be used to do promotion.

In Bangladesh, the promotion of pharmaceuticals products in the mass media is strictly

prohibited. Manufacturing companies can only promote their drugs to the health professionals
through personal selling, clinical meeting, seminars and symposia (Wikipedia).

Marketing
1 to health care providers take four main forms
Gifting,
2
Free samples
3
Detailing

4 Sponsoring Continuing Medical Education (CME)

Gonoshasthaya Pharmaceuticals Limited (GPL) has following gifting and free samples
promotional methods.

3
3
Physicians targeted promotion of GPL

Drug companies promotions subconsciously influence physicians prescription patterns. A 10-

year study of internists at seven university hospitals, published in 1990, found that frequent
contact with sales representatives also changed prescription practice (Israel, 2003, p. 1533).
Eleven years later, in a 2001 study, Parker and Pettijohn reach the same conclusion: Doctors
who had contact with pharmaceutical representatives were 13 times more likely to ask that a
particular drug be added to an insurance plans list of approved drugs (2003, p. 283). An ideal
physician provides his or her patients the best available care for the most economical price;
however, despite physicians reassurances, studies show that promotions influence how they
prescribe. If doctors under subconscious influence prescribe the promoted drug and it is a more
expensive alternative, thereby causing patients to incur higher treatment costs, in theory at least,
the patients are still receiving quality care.

From the previous discussion we have already known that the implication of GPLs marketing
strategies is so called in nature. Limited field work force that means availability of sales
representatives are quite tough because of decision making problems and financial facilities. But
on the above of these issues, the current sales representatives are trying to cope up with the
situation. They set up their meetings with doctors though it is in a limited basis. Providing gift as
pads, pens, calendar etc and free drugs as samples are given to physicians to recommend the
patients. Now-a days most of the doctors are prescribed the higher imposed commercial
manufacturers drugs who give them the maximum benefits. The lower commercialization makes
them a thousand time back than ever. Comparatively the commercial drugs manufacturing
companies have already captured the market through the distinctive level of promotion to the
physicians. But GPL has a principal not to follow the unethical policy that the others are doing. It
is one of the main reasons to step back of promoting the drugs through the physicians. Thats
why the most of the customers are not aware of GPLs quality oriented and affordable drugs
price. On the other hand, GPL is trying to make their position better.

5.2. Levels of Product (GPL)

Philip Kotler (2010) devised a very interesting concept of benefit building for products. Kotler
suggested that if you view a product on three levels it will help you extract all the benefits that
your product offers. This strategies has various names including Total Product Concept,
Augmented Product and Three Levels of a Product.

Level One: Core Product

Level one is the most basic level and simply looks at what people set out to buy and what
benefits the producer would like their product to offer buyers. Gonoshasthaya Pharmaceuticals
Ltd (GPL) is a drug manufacturing company; the main function is to provide drugs to the
customers. Medicines / drugs are evolved to maintain and restore health by the prevention and
treatment of illness. The main purpose of GPL is to provide drugs to the customers to prevent
the harmful diseases. The core product or problem solving benefit that customers seek from GPL
is to cure disease through their drugs that they are offering to their customers .

3
4
Level Two: Actual Product

Level two is about translating the list of core product benefits into a product that people will buy.
There may be competitor products offering the same benefits so the aim at this stage is to design
a product that will persuade people to purchase your product. Kotler states that this can involve
deciding on the quality level, product and service features, styling, branding and packaging.

Like every drugs manufacturers ,GPL provides drugs to the customers to cure disease. The actual
product of GPL is the quality drugs at an affordable price that the majority of people can afford
this at the lowest possible cost than others commercial manufacturers. On their drugs packaging,

they use the bengali positioning tagline and the english tagline
Mission for a Healthy Nation to represent their main concern is never to push the people for
unnecessary prescriptions and produce the drugs on the basis of disease-need of the
underprivileged people at an affordable price (official website of gonopharma).

Level 3: Augmented product

Level three involves deciding the additional non tangible benefits that a product can offer.
Competition at this level is based around after sales service, help lines, warranties, free/cheap
delivery and so on. In other words it is things that the product does not do but customers may
find them useful.

GPL is working for the betterment of the people and making monetary profits are not their
concerning issue. The augmented product level of GPL are training and education of the workers,
public welfare projects, research and development.

Figure 6: Levels of product ( GPL )

3
5
5.3. SWOT analysis of GPL

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate
the Strengths, Weaknesses, Opportunities and Threats involved in a project or in a business
venture (Wikipedia). Strengths and Weaknesses are forced by internal environment of a
company. On the other hand, Opportunities and Threats are forced by external environment. GPL
is one of the largest private pharmaceuticals brand in Bangladesh. According to GPLs market
overview, marketing mix and STP analysis the SWOT of GPL is quite similar to all companies.
Based on the collected information of GPL, the following SWOT analysis is quite obvious to
understand the overall situation of GPL.
6
Weaknesses
1 Limited
Strengths
1 Lack of distribution depots
Manufacturing process marketing
2
promotion 7 Lower
Tacit knowledge connectivity with
2 physicians
Limited capacity of
3 marketing research
Quality drugs
3
Lower brand image
4 Certified by different
international drugs foundations as British 4
Pharmacopoeia (BP), European Lower human
Pharmacopoeia (EP), United States resources facilities
Pharmacopoeia/ National Formulator
(USP/NF) 5
Financial instability

f i
f o
e n
c
Opportunities T
t p
a
Have the opportunity to i o b
expand the market v l l
e i e
Using repositioning c
tagline m y 5
1 a :
T
r
o 2 In S
k cr
e
ea W
se
i d O
t
m th T
i e
p nu
n m
l be a
g ro n
e fd
is a
m tr
p
ib
l
e
r ut y
n io s
o n
t de i
m
po
o ts s
e
t
o f GPL
36
3
7
 6.0. Findings

In this study, theoretical knowledge was combined with empirical study findings in order to
fulfill the objectives of the study. The theoretical foundations are based on literature discussing
of private brand, marketing strategies and pharmaceuticals industry. The marketing strategies
was designed based on the current market scenario of Gonoshasthaya Pharmaceuticals Limited
(GPL). Pharmaceutical market size and growth rate, growth potential of the domestic drug
market, market players of pharmaceuticals industry and current market review of the
pharmaceuticals industry in Bangladesh has been discussed to analyze the current scenario.
Along with, a short review of GPL has been conducted to figure out the overall situation.

GPL is following the needs based segmentation and they produce all kinds of drugs that the
customers needs and prevent the unethical use of drugs. Based on needs, their drugs are divided
into two categories as meditative and health care drugs.

The one of the main principles of GPL is to provide the quality drugs to the majority of people at
an affordable price. They target all levels of customers and following undifferentiated marketing
strategies to cover the whole drugs market.

The bengali positioning tagline and the english tagline Mission for a
Healthy Nation which represents the total overview of GPL and to promote themselves on the
customers minds that they are providing the quality drugs at an affordable price for the benefits
of the customers. Their positioning statement is symbolized as cultural symbol to differentiate
them from the competitors to uphold their motto to inside and outside of the world.

GPL has 129 listed drugs of WHO and have the capacity to supply the all kinds of levels to the
majority of customers. The price of drugs are comparatively lower than the commercial drugs
manufacturers. They offer the quality drugs at an affordable price to the majority of people. After
calculating all the Vatable price they show up their trade price of the drugs.

GPL has 11 distribution outlets to cover the whole distribution facilities in Bangladesh to meet
the customers demand. But the distribution channels are not too strong to cover the whole
distribution channels management. The head of marketing managers of GPL is in -charge of the
whole function of distribution channels management.

To promote the drugs GPL, mostly use free samples, gifting and maintain to contact with the
physicians to prescribe their medicines to the patients but in a limited way. The shortage of sales
representatives is one of the main obstacles to go on a root level and the customers are not
properly acknowledge about the quality drugs at an affordable price of GPL.

The core product or problem solving benefit that customers seek from GPL is to cure disease
through their drugs that they are offering to their customers .

The actual product of GPL is the quality drugs at an affordable price that the majority of people
can afford this at the lowest possible cost than others commercial manufacturers. On their drugs
packaging, they use the bengali positioning tagline and the english
tagline Mission for a Healthy Nation to represent their main concern is never to push the
3
8
people for unnecessary prescriptions and produce the drugs on the basis of disease-need of the
underprivileged people at an affordable price.

The augmented product level of GPL are training and education of the workers, public welfare
projects, research and development.

Manufacturing process, tacit knowledge, quality drugs, certified by different international drugs
foundations are the strengths of GPL.

Lack of marketing promotion, limited capacity of marketing research, lower brand image , lower
human resources facilities, financial instability, limited distribution depots , lower connectivity
with physicians are the weaknesses of GPL.

Have the opportunity to expand the market, using repositioning the tagline, to implement
effective marketing promotion policy, increased the number of distribution depots are the
strongest opportunities of GPL to fully implement their potentialities in the current market
situation.

Losing investment, focus on providing assistance to poor people rather than commercialization
are concerned as the threats of GPL to continue their current market situation. Though the
marketing strategies of GPL is quite different from commercial manufacturers in this competitive
market; it is trying to improve their flaws to make in a better way.

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9
4
0
7.0.Recommendations

After analyzing all these information of GPLs, it is quite obvious to improve their marketing
policy and regarding all sorts of problems. Otherwise, it would be impossible to survive in this
competitive business era. So following recommendations maybe applicable to change the present
circumstances of GPL to operate in a better way.
1
One of the major problems of GPL is the human resources who are directly
involved with the physicians to promote their drugs. According to head of marketing
manager (GPL), they have only 60-70 sales executives. They have inadequate of
manpower to reach the customers group. Comparatively, Square has almost 3500 sales
executives and others commercial manufacturers have higher sales executives. GPL is
already lagging behind and cannot cope with others companies sales forces. As a result,
they can not reach a good number of physicians to inform their quality drugs. GPL should
look into this issue and increase their manpower to make sure a good market coverage
through the physicians.
2
The distribution outlets of GPL is not quite enough to reach the customers than
commercial manufacturers. Overall in our country, GPL has 11 depots to distribute the
drugs. Alongside it is clear, the commercial manufacturers have huge distribution
facilities to cover their targeted area than GPL. Customers are not aware of GPLs quality
drugs because of so called distribution outlets. They have to build up new distribution
channel to cover the minimum area that the customers aware of GPLs drugs. And the
same time, they can demand the same medicines of others manufacturers with relatively
lower price but quality drugs of GPL.
3
We have a perception that the higher quality products charge higher price and
lower quality products charge lower price. But here the situation is bit different cause
GPL offers the quality drugs at an affordable price rather than commercial manufacturers.
Many international drugs institute certified them as one of the best quality drugs
manufacturing company. As a result, customers think something is not right of their drugs
and they are not willingly to purchase of the quality drugs at a minimum price. So, they
are losing of huge customers because of misperception. The authority should reposition
their tagline and create consciousness through opinion leader or buzz word to get clear
image of GPL. They can also use their packaging as image creating tool to improve their
overall image building scenario to overcome the negative misconception in the customers
minds.
4
Training and educational standards should be maintained for Medical Promotion
Officer (MPO) such that they can act more as collaborate problem- solvers rather than
sales professionals. It is therefore important that physicians, firms and policymakers can
recognize the reality and take appropriate steps to make their relationship as efficient and
effective as possible.

5 GPL is always striving to maintain the highest product portfolio among the competitors in the
product development strategies. Holding the heaviest product folio is not the
4
1
 ultimate goal of GPL. Emphasize should be given on how the new drug launch in the
market than the competitor.
1
Updating new product plant is not enough to keep pace on this new competitive
environment. HR development, transportation, information technology, consumers
relationship management, increasing distribution outlets, integration among the sales
force and others are important to have keen eyes to know the changing environment.

2 GPL is currently running on financial instability that is not quite good sign for
running a business. For this reason, most of the employees have resigned and it is quite
obvious. The authority should solve the financial matter through bank loans or should try
to collaborate with others companies to offer them their production facilities and they can
get financial support. It maybe one way to solve their financial problem.

Conclusion

Gonoshasthaya Pharmaceuticals Ltd (GPL) is considered the pioneer of private label drugs
manufacturing company in Bangladesh. But most of the people of our country are not aware of
their quality drugs at an affordable price than the commercial manufacturers. Comparatively they
have lower outlets facilities than the others commercial manufacturers and through 11 depots
they are distributing their drugs to reach the customers. Marketing strategies are not heavily
applied comparatively than the commercial manufacturers. Lack of medical promotion officer,
financial instability, lower distribution outlets, lower promotional activities, lack of clear image
on the customers mind, integration among the sales force and others are the common obstacles to
look forward of GPLs progress. To keep pace with the competitive market they are trying to
cope up with their problems and focus on the present situation to make it better through different
marketing strategies that would be comparatively effective for them than the previous
circumstances.

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 9.0.Appendix

Interview Questionnaire

Marketing Strategies Of A Private Brand In Bangladesh-

A Study On Gonoshasthaya Pharmaceuticals Ltd (GPL)

Dear respondent,

I am a student of Department Of Marketing, Jahangirnagar University, Savar, Dhaka-1342. To

complete my BBA program, I am conducting my thesis and the topic is Marketing Strategies
Of
Private Brands In Bangladesh- A Study On Gonoshasthaya Pharmaceuticals Ltd (GPL). I need
some information regarding the marketing strategies of Gonoshasthaya Pharmaceuticals Ltd
(GPL) and your information will be used only academic purpose and it will be kept in secret.

Name of the respondent

Designation :

Education level :

1. In the present circumstances, based on which criteria GPL is dividing their market?

2. To target the customers which strategies GPL is currently applying?

3. How GPL is promoting their drugs on the customers mind ?

4. How many products (drugs) GPL is offering to their customers?

5. How the drugs price of GPL is set up ?

6. How many distribution outlets of GPL have to reach the customers ?

7. How the medical representative officers of GPL promote drugs to the physicians ?

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 8. What are the additional benefits of GPL offering for the betterment of customers beyond
their core product drugs?

9. What are the main reasons of GPL not to imply the fully commercialization policies like
others manufacturers ?

10. Is there any policy they look forward to improve the current scenario of GPL ?

11. In the competitive market, how they will adopt to promote their positioning tagline in the
customers mind ?

12. Is there any upcoming approach to improve their financial stability ?

13. Do you really think quality drugs and lower cost comparatively than other manufacturers
can improve your present market scenario ?

Thank you for your patience and co-operation.

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