PRESENT MARKET POSITION OF DINAC-TR CAPSULE (PAINKILLER DRUGS)

 

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(Background information)

The pharmaceutical business is a composite of a variety of professional backgrounds, including pharmaceutical, engineering, accounting, law and marketing. The founder chairman made certain commitments of principle at the onset to guide the company as it pursued its goals:

  1. Swift dispersion
  2. Swift absorption
  3. Speedy action

 

Dinac-TR Emulgel

2 to 4 gm Dinac-TR Emulgel are sufficient to treat an area of about 400 to 800 semi square.

Suitable for local therapy.

Cataflam 25 and 50 mg

1.   Highly soluble, so absorption starts immediately after administration.

2.   Pain relief within 15 to 30 minutes.

Fast relief in short term therapy.

History of the Product within the industry and the firm

Dinac-TR is an original research product of Navana. So, history of product in Industry and Firm coincide.

 

The molecule, Sodium Diclofenac, was invented by Navana Pharmaceuticals Ltd. It was introduced in the market by the company by the brand name Dinac-TR. The product image has been enhanced by the good reputation of Navana as a house of anti-rheumatic.

 

In Bangladesh, the product was first introduced in 0000. Before the introduction, the product was being smuggled into Bangladesh from India. Finding the demand for Dinac-TR, Navana Pharmaceuticals Ltd. decided to formally launch it in our country.

 

With time, different forms were introduced such as Dinac-TR, Ampoule, Emulgel and like. Some forms exhibited extraordinary success e.g. the Suppository form proved essential for patients who could not take in the oral form. As time passes by, the local competitors began to emerge and challenge Dinac-TR. One of the successful is Opsonin. Other local companies posing threat to Dinac-TR are,Square Pharmaceuticals Ltd (the product is Clofenac), Beximco Pharmaceuticals Ltd (Ultrafen), and Rhone-Poulenc Rhorer and Fisons (Ficlon).

 

Among the seven forms, Navana Pharmaceuticals Ltd produce Dinac-TR Suppository for adult and child and Emulgel from the parent company.

Goals of Navana Pharmaceuticals Ltd  

Aspiration of Navana

Capture and hold a leadership position in all of our business with a strong, sustainable performance, based on continuous innovation. Our long-term success is founded on meeting expectations of all our stakeholders’ customers, our people, shareholders and all the communities, in which we live and work.

Mission Statement of Navana

We, Navana Pharmaceuticals, Guided by our Aspirations Believe in ensuring our long-term existence by being profitable and sustainable with our commitment to providing value adding products and services to satisfy the needs of our customers services in the sectors of: Health Care, Animal Health, Crop Protection. Our innovative efforts will be designed to incorporate all the technological Advances that will best serve the interest of all our stakeholders.

 

We aim to lead the industry in terms of quality and effectiveness, by providing products and services that will serve as the standard of reference in the overall industry.

 

In carrying out these activities our leaders exihibit behavior based on our principles of a high-performance organization and empowered leadership. Our associates are customer focused, have a drive to learning, competence and professionalism.

 

We believe in good citizenship based on openness and honesty. Our decisions are based on balancing the needs of all the organization and our people as well the society we work and live in. In all our activities we consider the impact on the environment.  

 

Chapter 4: Target market segments

Target Market Segments

Segmentation variables for patients:

1. Demogrphic

2. Purchasing behavior pattern

3. Based on diseas

Segmentation variable for doctors:

1. Demographic

2. Psychographic

3. Prescription Patter

4. Area of specialization

Target Market Components

Doctors practicing in urban area

Years of practice

Area of specialization of doctors

Regular prescriber of NSAID

Chapter 5: Product Category Demand Analysis:

Market Demand Analysis for Patients

Demographic Description:

Income: Upper and Upper middle income group (e.g. 7000 & above ) Age and lifestyle: All age groups have certain demand. But one particular segmentation can be patients of over 40 years of age who suffer from acute Gout.

Purchase Behavior Pattern:

Usually sales increases in winter.

Segmentation based on disease:

Patients suffering from following diseases are potential market segments for Dinac-TR:

?   Osteoarthritis

? Rheumatoid arthritis

?    Spondylitis

?    Post operative pain

? Juvenile RA

?

?  Acute Gout

?  Post traumatic pain

?  Scute back pain

?  Primary dismenorrhoea

? Appain and strains

? Buritis

 

Demographic Descriptor:

 

Segmentatation based on diseases:

General surgeons

Orthopedic Surgeons

Medicine Specialists

General Practitioners

ENT Specialists

Gynecologists

Neurologists

8. Dentists

Prescription behavior pattern description:

Category A: Most potential doctor

They are regular prescribers.

Category B: Potential doctors

Doctors who prescribe pain killer less regularly.

Market. However, ICDDRB

conducts some research.

 

  technology.

7.5 Technological analysis

 

 

Bell Laboratories, Davidson

Laboratories,

 

 

 

 

The analysis of technological environment reveals an important aspect for Dinac-TR. The major molecule of this drug Sodium Diclofenac has a side-effect. It patient taking any drug containing Sodium Diclofenac may have gastro-intestinal diseases. Currently, research has been carrying out to invent a new molecule that will minimize the chance of having any kind of side-effect. If the research is a success, then the new drug will replace Dinac-TR.

7.6 Opportunities and Threats to the firm based on External Analysis

Opportunity:

 

  GATT may offer great opportunity to Navana allowing it to freely import drugs.

  Government Drug Administration Department is reconsidering to give permission to produce restricted drug items to multinational companies.

Threats:

Four imported forms of Dinac-TR are under threat of Government restriction because more than two local firms are now capable of successfully meeting demand of local market with similar quality.

According to Government drug policy, imports of such drugs are normally restricted.

Hartal-Current political instability can disrupt the distribution of drugs and seriously hamper marketing activities by creating shortage.

 

A new generation drug having fewer side effects than Sidium Diclofenac may be invented and replace Dinac-TR.

Local firms who enter into contracts with physicians and druggists may also hamper successful marketing of Navana Pharmaceuticals.  

 

 

 

 

 

Chapter 8: SWOT Analysis

Strengths:

Dinac-TR is in the Bangladesh market for past 10 years. As a result it enjoys a long heritage.

High brand awareness.

Dinac-TR is availability in all galanical forms.

Since Dinac-TR is an original research product of Navana the company enjoys an image over others.

Navana enjoys a high image as a multinational company providing drugs of superior quality.

It also is renowned as a house of anti-rheumatic.

Dinac-TR is known for its high quality.

As the parent company has own research and development department that pioneers new drugs, Navana Pharmaceuticals has an advantage to introduce those drugs in Bangladesh and gain a competitive advantage over the competitors who will have to manufacture the generic form.

When necessary, Navana Pharmaceuticals can seek technical and managerial support form parent company.

  Navana Pharmaceuticals can charge a premium price on certain drugs that are original research product of Navana Pharmaceuticals.

 

Weakness:

Inadequate sales force.

High price of Dinac-TR acts as a barrier to pursue rural market.

Being a multinational company, there are certain restrictions on Navana. For example, drug policy restricts the company from production of some profitable products such as vitamins.

As a multinational company Navana must be abide by certain special Industrial norms.

5. Navana does not have the capacity to manufacture four forms of Dinac-TR locally. These forms (Ampoules, Suppository for adult and child, Gel) are imported.

Since Dinac-TR is an original product, Navana Pharmaceuticals must procure the raw materials as per the parent company requirement.

 

7. Less dynamic upper management.

 

Opportunity:

Above average growth of NSAID market.

Increasing use of Dinac-TR suppository to quickly reduce very high fever has created a new opportunity for Navana to promote this drug for treating high fever.

GATT may offer great opportunity to Navana allowing it to freely import drugs.

Government Drug Administration Department is reconsidering to give permission to produce restricted drug items to multinational companies.

 

Threat:

Availability of less expensive generics.

Due to the drug regulation of Bangladesh government which specifies that if more than two Bangladeshi companies produce any form of medicine which is currently being imported and fulfill adequate demand of market the quality medicines produced locally is satisfactory than the form cannot be imported, Navana is under a threat of facing an import ban on the four forms: Ampoules, Suppository for adult and child, gel.

If Navana cannot import those forms than the company will loose 6 crore taka which is 15% of company’s sale annually.

A new generation drug having fewer side effects than Sodium Diclofenac may be invented and replace Dinac-TR.

Hartal- Current political instability can disrupt the distribution of drugs and seriously hamper marketing activities by creating shortage.

6. Local firms who enter into contracts with physicians and druggists may also hamper successful marketing of Navana.

 

Chapter 9: Forecasting Market Potential

 

 

 

 

 

 

 

 

 

 

 

Salaries1

The above two graphs shows the sales pattern of Dinac-TR and the total NSAID market respectively from 1994.

Product Life Cycle Stage and Rationale for Judgment

Dinac-TR is entering the maturity state. Its market share is gradually leveling. The age of Dinac-TR in NSAID market of Bangladesh is 10 years. The average growth rate of Dinac-TR has declined from around 14% to around 6% over the last eight years.The high R&D cost inventing Dinac-TR has been recovered over the years after its introduction. At present, there is low cost per customer and high profits.

 

 

 

 

 

 

 

 

 

 

The following BCG matrix shows the position of Dinac-TR in its life cycle.

 

Dinac-TR

 

 

  Stars

 

 

 

Question mark

 

 

 

  Dogs

 

 

 

Cash cow

 

 

10X   4X 2X 1.5X   1X 0.5X  0.4X  0.3X 0.2X   0.1X

 

 

 

M 21%

A

R   18%

K

E

T   15%

G

R   12%

O

W

T   9%

H

  6%

R

A

T 3%

E

  0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Relative Market Share

 

BCG Matrix

Chapter 11: General strategies of Navana

11.1 General strategies

 

 

 

 

11.2 Functional Area General Strategies

 

Finance:

 

HRM:

 

Marketing:

Production:

11.3 Prior marketing strategies that substantially exceeded expectation

  Strategy Action Plan

Creation of 1. Introduction of Dinac-TR suppository greatly increased

Utility sales by affective form utility e.g. people who were

unable to take in oral dosage due to for example, in case

 

tablet it would face tremendous competition. Therefore

they introduced Dinac-TR dispersible, which satisfies  

the same demand of Dinac-TR 50 mg. But provides a

different form utility. This resulted in a success story

for Navana and Dinac-TR.

 

segment practitioners and if that treatment did not work they went

 

 

12.0 Product Strategies, Action Plans and Assessments

 

 

Product Strategies

 

 
 

 

 

 

13.0 Pricing Strategies, Action Plans and Assessment 

Strategies Action Plans Evalution

methods

 

Use pricing as an Follow   Market

implicit promotion tool   pricing survey  on

for chemists chemists

 

 
 

 

 

 

 

 

 

Pricing

Strategy

 

 

 

 

chemists

 

 

 

% of actual

Fluctuation

Reasons for fluctuation

Person responsible for

Comments

1.Sales

 

 

 

 

 

 

 

 

 

 

2.Profit

 

 

 

 

 

 

 

 

 

 

3.Experience

 

 

 

 

 

 

 

 

 

 

4.Pricing

variance

 

 

 

 

 

 

 

 

 

 

5.Finished

 

 

 

 

 

 

 

 

 

 

6.Inventory

 

 

 

 

 

 

 

 

 

 

7.Order backlog

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following chart shows another tool for evaluation and control of implementation of marketing plan:

 

d. Major Accounts

 

 

3. Expense 3. Expenses by 

b. Total marketing   a. Sub-department of marketing

 b. Sales regions, districts,

territories.

 

4. Pricing Variances 4. Pricing variances by