Marketing plan

Contents of the marketing plan:

1. 2.

Executive summary Current market situation Opportunity and issue analysis Objectives Marketing strategy Action programs Financial projections Implementation controls

P 3-4 P 5-7 P 8-9 P 10 P 11-14 P 15 P 16 P 17

3. 4. 5. 6. 7. 8.

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Company Profile: Square Pharmaceuticals started their operation as a Partnership Firm. In 1964 they converted into a Private Limited Company. In 1974 they conduct a technical Collaboration with Janssen Pharmaceutical, Belgium, a subsidiary of Johnson & Johnson Intl, USA. In 1982 square pharmaceuticals signed a licensing agreement with F. Hoffmann-La Roche Ltd., Switzerland. In 1985 they achieved market-leadership in the Pharmaceutical market of Bangladesh among all national and multinational companies. In 1987 square become Pioneer in Pharmaceutical export from Bangladesh. In 1991 they converted into public limited company. In 1994 they offered their Initial Public Offering of Square Pharmaceutical shares. In 1995 Chemical Division of Square Pharmaceuticals Ltd. starts production of pharmaceutical bulk products (API). In 1997 square pharmaceuticals won the National Export trophy for exporting pharmaceuticals. In 1998 Agrochemicals & Veterinary Products division of Square Pharma starts its operation. In 2001 US FDA/UK MCA standard new Pharmaceutical factory goes into operation built under the supervision of Bovis Lend Lease, UK. In 2005 New State-of- the-Art Square Cephalosporins Ltd. goes into operation; built under the supervision of TELSTAR S.A. of Spain as per US FDA/ UK MHRA requirements. In 2007 Square Pharmaceuticals Ltd., Dhaka Unit gets the UK MHRA approval.

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

has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player. VISION Square view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.
MISSION

Squares Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large. OBJECTIVE Squares objectives are to conduct transparent business operation based on market mechanism within the legal & social frame work with aims to attain the mission reflected by our vision.

Corporate focus
Squares vision, mission and our Objectives are to emphasize on the Quality of product, process and Services leading to growth of the Company imbibed with good Governance practices.

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Organizational Structure: Board of Director Chairman Vice Chairman

Managing Director

Director

Resident Adviser

Executive Director Admin

Executive Director Operation

Executive Director

Executive Director

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Training & Employee Development in Square

Squares Training & Development enables their people to enhance their skills, keep them updated with recent changes. They offer both on-the-job and off-the- job at both theoretical and practical training opportunities through a range of Local, Regional and International Training programs that include both functional and managerial levels on the basis of Training Need Assessment. Training Need Analysis (TNA) is conducted by Department Heads and Human Resource Department jointly on the basis of job analysis.

Management Development Training

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Round the year, management development training is organized for managers & executives at Squares Corporate Headquarters, Dhaka Unit & Pabna Unit. Our own and renowned resource persons from home & abroad conduct the training sessions. They also send their employees to renowned local training institutes for specialized training.

Overseas Training

Square sends their employee to abroad for training program depending on availability of appropriate topics. Technical persons of their factories attend the Factory Assessment Test (FAT) in various parts of the world for smooth operation of equipments.

Field Forces Training & Development

Each year, a significant number of Field Forces complete their induction training program and joined to their respective markets and appear at examination in every month for further development.

Field Forces Refresher Course

For updating product knowledge and selling skills of field forces, Refresher Course is organized in four different regions in every month.

Territory Manager Training

Twice in every year, mid-level managers of sales participate in the training program titled Sales Territory Management at a regular basis.

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Distribution:

Every year a number of Distribution Assistants (DA), Data Entry Operators (DEO) go under induction training program immediately after initial recruitment. Each month, Refresher course for DA, Driver and Packers is organized in two different depots for updating their knowledge.

Other Activities:

Students of various universities are placed as Interns in different departments. Significant number of students completed their In-Plant Training in our Plants. Coordinating factory visit for different government and Institutions. All newly joined executives go through a structured Orientation Program. We conduct health, Hygiene & different awareness program for our colleagues.

Square conduct training on different compliance parameters for our factory colleagues.

1. Executive Summary In Bangladesh cardiovascular diseases are increasing day by day. High cholesterol level in blood is one of the important factors for developing cardiovascular complications. For the treatment of high blood cholesterol, statins are the widely acceptable drugs. Presently 4 statins (Simvastatin, Atorvastatin, Fluvastatin, and Lovastatin) are available in Bangladesh. Though there are a number of statins available worldwide, but considering the clinical profile, Rosuvastatin is the best and it is known as the Super Statin. We always try to launch superior

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molecule first time. In this context, square proudly launches the Super Statin by the name Rosuva If we consider the price, price of Rosuva tablet will be little bit high. Each tablet will cost Tk. 45.00. On the other hand the price of Lescol is Tk. 30 per tablet. But considering the clinical efficacy, Rosuvastatin is superior to fluvastatin. In this case our objective is to target some opinion moulders first for Rosuva tablet and special emphasis will be given to the doctors who usually attend the patients belonging to high-class of the society. Our expectation is Tk. 32, 60,352 in launching year from this product. Market size of Lipid lowering agents is Tk.16, 39, 74,473. Our initial objective is to snatch 2% share from this market segment. Pricing is crucial and we should have to overcome this limitation by aggressive promotional activities. Product price is Tk. 45.00/- per tab. GM of the product is 50% with a mark-up of 24%. Depending on successful workout on this product, we expect net profit of 596,565/- in the launching year. Successful launching of this product will increase our pace in cardiovascular market. Definitely we are going to do it.

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Product Presentation:

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2. Current Marketing Situation: Square Pharmaceuticals has its independent department. It conducts the survey throughout the country. With the help of MRPC Square can get the idea of prescription movement of Rosuva as well as competitors brand. So Square can do their Mass marketing of Rosuva all over the country.Respective Portfolio Executive will visit the customers to collect their feed back regarding the product and study their satisfaction. So the current market situation of Rosuva is increasing Day by Day. Its doing very well in the market as a new comer. If we look at the growth rate, sales trend, net income then we can easily understand the situation of Rosuva. Rosuva is lised as growing product in the drug market.

Cholesterol & Triglyceride reducer Growth Expected share from the market segment Expected value sale in first 12 months (Tk.) Expected unit sale for first 12 months Pack size Unit price (MRP+VAT) Gross margin Mark-up Sample cost in first 12 months Sample-sale ratio in first 12 months Promotional cost in first 12 months Promotional cost-revenue in first 12 months Net profit before tax in first 12 months Competitors analysis: Direct Generic competitors No direct competitor

Tk. 16,39,74,473 9.38% 2.5% 3,260,352 9,600 10's 450 50.00% 24% 180,000 6% 455,000 14% 596,565

Indirect Generic competitors

Brand LESCOL
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Company Novartis

Vaue sale/year (Tk.) 20,061,378

Growth (%) -8.51

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TIGINOR ATOVA LIPICON LIPITIN

Incepta Beximco Eskayef General

18,395,232 15,096,007 11,137,054 10,389,656

20.75 48.52 -62.97 12.52

Sales trend of Top 10 manufacturers in Cholesterol & Triglyceride market:

35,000,000

30,000,000

25,000,000 2001 2002 2003 2004

20,000,000

15,000,000

10,000,000

5,000,000

0
INC EPTA PHA RM A SQUAR E BEX IM C O NOVA RTIS ESKAY EF GENERA L ORION LA B . OPSONIN C HEM R ENA TA DRU G INTERNATIONA L

Growth (%) of10 manufacturers in Cholesterol & Triglyceride market:

2004 Total market Incepta pharma
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2003 33.08 69.41

2002 99.59 462.96

2001 127.60 999.00

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9.38 32.70

Square Beximco Novartis Eskayef General Orion lab. Opsonin Renata Drug international

6.92 31.99 -8.51 -62.97 14.80 197.64 45.42 41.69 58.70

16.78 29.39 -2.82 75.10 73.38 999.00 4.90 -3.43 34.20

47.88 -9.54 68.28 999.00 999.00 0.00 999.00 -11.94 999.00

18.37 69.33 999.00 999.00 999.00 0.00 999.00 72.25 999.00

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Market share (%) of top 10 manufacturers in Cholesterol & Triglyceride market:

MANUFACTURER INCEPTA PHARMA SQUARE BEXIMCO NOVARTIS ESKAYEF GENERAL ORION OPSONIN RENATA DRUG INTERNATIONAL 2004 13.40 12.41 12.28 12.23 6.79 6.46 5.97 5.87 5.77 5.76 2003 11.05 12.69 10.18 14.63 20.06 6.16 2.19 4.41 4.45 3.97 2002 8.68 14.46 10.47 20.03 15.25 4.73 0.00 5.60 6.14 3.94 2001 3.08 19.52 23.10 23.76 1.63 0.52 0.00 0.44 13.91 0.31 2000 0.00 37.53 31.05 0.00 0.00 0.00 0.00 0.00 18.38 0.00

Market share (%) of top 10 manufacturers in 2004:

5.77 5.87 5.97

5.76

13.4

12.41

6.46 6.79 12.23 12.28

INCEPTA PHARMA ESKAYEF RENATA

SQUARE GENERAL DRUG INTERNATIONAL

BEXIMCO ORION

NOVARTIS OPSONIN

3. Opportunity and issue analysis SWOT analysis of Rosuva: Generic Approach

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SWOT Comparison Sheet Generic Approach

Company Name Web Address EmployeesAnnual Revenue Net Sales Income Asset Liabilities Busin Stock ess Value Value

Square www.squarepharma.com.bd 3564 Pharmaceuticals Ltd

3162541 8257844 4411836 3500845 (in (in (in (in thousand) thousand) thousand) thousand)

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Sun Pharma Ltd www.sunpharma.com

34605.6 3903.2 (million) (million)

20559.4 (million)

19482.7 2314.7 (million) (million)

No stocks in market

SWOT Comparison Sheet (Strengths)

Strengths What are your business advantages? What are your core competencies? Where are you making the most money? What are you doing well? Square (Rosuva) Long product range Good quality image Strong field force State of the art manufacturing facility Knowledgeable field force Finished pharmaceutical products Antibiotics Anti ulcerant products Sun Pharma (Rozavel) Good image Good quality Skilled in production Selling our product Tablets and liquid syrup.

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SWOT Comparison Sheet (Weaknesses)

Weaknesses What areas are you avoiding? Where do you lack resources? What are you doing poorly? Where are you losing money? What needs improvement? N/A Research and Development Chronic care products Lyophilized injectable products Anti cancer products Not applicable Worker Effort Square (Rosuva) Sun Pharma (Rozavel) Niche market Human resouces Department Insulin products Liquid products

SWOT Comparison Sheet (Opportunity)

Opportunities Any beneficial trends? Niches that competitors are missing? New technologies? New needs of customers? Square (Rosuva) Technologies N/A Insulin, Hormone Bio-tech products Sun Pharma (Rozavel) Our workforce. Not applicable Generic Analysis Effective medicine

SWOT Comparison Sheet (Threats)

Threats Obstacles to overcome? Aggressive competitors? Successful competitors? Negative economic conditions? Government regulation? Changing business climate?
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Square (Rosuva) Implementation WTO agreement after 2016 Aristopharma, Renata Popular, Incepta Unrest political condition VAT on physician sample Unethical practice by the competitors

Sun Pharma (Rozavel) Production fault in 2005 , Aristopharma, Popular Beximco, Square pharmaceuticals ltd Current situation of Bangladesh VAT Challenge by competitor 16

Vulnerabilities?

N/A

N/A

SWOT analysis of Rosuva: Functional Approach

Factor Products Price Quality Selection Service Reliability Stability Expertise Company Reputation Location Appearance Sales Method Credit Policies Advertising Image Rosuva (Square) Strength Weakness 4 1 5 0 4 1 4 1 4 1 4 1 4 1 4 1 5 0 5 4 4 2 4 5 0 1 1 3 1 1 Rozavel (Sun Pharma) Strength Weakness 2 2 1 4 3 2 3 2 1 3 2 4 1 4 1 4 1 4 1 3 3 4 2 1 4 2 2 2 2 4

Environmental (SW) Analysis- Comparison Sheet

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Total=

62

48

14

29

16

45

Total SW of Square (Rosuva) = 62 14 =48

Total SW of Sun Pharma (Rozavel) =29 - 45 = -16

Environmental (OT) Analysis- Comparison Sheet

Factor Technology Economy Political Legal Service Providers International Trade People Industry Purchasing Power Social Religious Channel Actors Credit Policies Media Access Infrastructure Total= Rosuva (Square) Opportunity Threat 4 1 4 1 3 2 3 1 4 1 4 4 3 3 3 4 1 1 1 4 46 1 1 3 1 1 1 0 3 1 1 19 Rozavel (Sun Pharma) Opportunity Threat 2 3 2 2 3 2 2 2 2 1 3 3 2 2 2 1 0 3 1 2 30 2 2 2 3 3 3 0 1 1 3 30

27

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Total OT of Square ( Rosuva) = 46 19 =27

Total OT of Sun pharma (Rozavel) =30 - 30 =0

SWOT Analysis

Internal Factors

External Factors

Strength

Weakness

Opportunities

Threat

Strength:
1. Clinical superiority over other available statins 2. USFDA approved molecule 3. First time introduction in market 4. Good product presentation 5. Good corporate image of Square 6. Skilled filed force 7. Strong distribution network

Weakness:
1. High price 2. Due to high price limited number of consumer will be able to afford the drug. 3. Inadequate concentration on cardiovascular drugs Opportunity & Threat:

Opportunity:
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1. Prevalence of cardiovascular disease and hyperlipidemia is increasing day by day in Bangladesh 2. Good market growth 3. Doctors are preferring statins as lipid lowering agent.
4.

If raw materials price is fallen, it will help to reduce the price of the product and will

make the doctors comfortable to prescribe frequently which will increase market size.

Threat:
1. Launching of the molecule by other companies 2. Launching of the product with reduced price by other competitors
3.

Unethical practices by some competitors (offering cash money, contract, etc.)

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4. Objectives: Financial objective:

a.

Earn an annual rate of return on investment of 23.25%, which represents a

projected market share of 2.5%. b. Produce net profit of Tk. 5.65 lac in one year c. Achieve first-year total sales volume of Tk. 32.6 lac, based on an average price of Tk. 450.00 per unit box.

Marketing objective:

a. Achieve a first-year unit sales volume of 9,600 which represents a projected market share of 2.5%
b.

Generating brand awareness within the target customer through CME, Clinical

Meeting, Seminar, Symposia. c. Generating a good footage in the cardiovascular market.

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5. Marketing strategy: Target customers: Cardiologists Medicine specialists Competitors statin prescribers

Segmentation:
Market segmentation is one of the steps that goes into defining and targeting specific markets. It is the process of dividing a market into a distinct group of buyers that require different products or marketing mixes. Opportunities in marketing increase when segmented groups of clients and customers with varying needs and wants are recognized. Markets can be segmented or targeted using a variety of factor. The bases for segmenting consumer markets include:

Demographical bases (age, family size, life cycle, occupation) Geographical bases (states, regions, countries) Behavior bases (product knowledge, usage, attitudes, responses) Psychographic bases (lifestyle, values, personality)

But Rosuva is a lipid lowering drugs. Actually the marketing department of square doesnt segment only Rosuva market. Its actually segmented its market for group of product or the same kind of product. The marketer of Rosuva could ignore the differences in the segments, and choose to aim a single product at all segments i.e. the whole market. This is typical in 'mass marketing' or where differentiation is less important than cost.

Targeting
Targeting is the second stage of the SEGMENT "Target" process. After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it.
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Target customers: Cardiologists Medicine specialists

Competitors statin prescribers

Positioning:

Positioning strategy:
Square has positioned rosuva as the super statin and aggressive cholesterol reducer to capture a separate place in the mind of the target market.

Marketing Mix Strategy:

Marketing mix strategy is the set of controllable, tactical marketing tools through which the company influence the demand of their product and wants to get the response from the target market. Square has five groups of variables which known as 5Ps in their marketing mix strategy.

a.Product: is the goods and services that companies offers to the target market.Square used forward invention for rosuva to meet the need for the treatment of cardiovascular diseases.
b.Price: Price of each tablet of Rosuva is Tk. 45.00. This product belongs to the high range of the lipid modifiers drug market. There are some statins available in the market in lower price. But at present fluvastatin is available at Tk. 35 per tablet but clinically it not superior to Rosuvastatin. This new generic is going to be introduced for the first time in Bangladesh. This will provide a competitive edge over the available generics.

c.Place (Distribution channel): square has decided to distribute rosuva

Through their existing distribution channel and for this their objective is to supply the right product in right place in right time.Initially this product will be made available to the nearby chemist shops of the target doctors.

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d.promotion
Square will use the following communication tools to promote Rosuva: 1. 2. 3. 4.
5.
b.

Literature Physician sample Booklet on Lipid modifying drugs Gift- they also gives pen, mug, notepad etc Continuous Medical Education (CME) program on Rosuvastatin

Promotional pattern: Criteria No of target doctors in total No of prescription served per month per doctor No. of tablet served per prescription Total no. of tablets served per month per market So, The Monthly Average Unit Sales Target will be in box (1 X 10's) So, the Yearly Sales Target will be : Promotional intensity: Number 04 01 01 Promotional month July, August, October, April January November Av. Per Nationa MPO l 1 2 1 5 3 0 3 3 6 282 564 8,460 8,460 846 10,152

Categor y Detailing Reminder Gift

Detailing: Promotion with printed promotional material & physicians sample Reminder: Promotion with only physicians sample

e.People: also refers to customer. Square specially targets the doctors as their customaers who usually attend the patients from the high-class in the socity.
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Rosuva is the super statin and aggressive cholesterol reducer

Control Measures:
Sales Force Control:
Square feels that the sales forecast figures are conservative. It will steadily increase sales as the advertising budgets allows. Although the target market forecast listed all of the potential customers divided into separate groups, the sales forecast groups customers into two categories: Recreational and competitive, reducing the number of categories allows the reader to quickly discern information, making the char more functional.

Monthly Sales Forecast: Sales Forecast 2008 2007

$455,740 $72,918 $528,658 $598,877 $95,820

Sales
Recreational Competitive Total Sales Direct Cost of Sales Recreational Competitive Subtotal Cost of Sales

2006
$687,765 $110,042 $797,807

$694,697

2008
$82,033 $13,125 $98,159

2007
$107,798 $17,248 $125,046

2006
$123,798 $19,808 $143,605

DISTRIBUTION CONTROL:
Rosuva has good distribution control all over the country. Initially this product will be made available to the nearby chemist shops of the target doctors, for that they divide The distribution channel in four zones. Those are: Dhaka. South. West. North.

Rosuva has its distribution channel among the following cities:1. Pabna
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2. Dhaka 3. Chittagong 4. Comilla 5. Rajshahi 6. Barishl 7. Khulna 8. Sylhet 9. Rangpur 10. Bogra 11. Mymensingh 12. Faridpur 13. Tangail 14. Maizdee

Pricing Control:
Rosuva has a good price control among the market. Though price of each tablet of Rosuva is quiet high. The price of each tablet is Tk. 45.00. There are some statins available in the market at lower price; Such as Lesocol. The price of Lescol is Tk.30 per tablet, but considering the clinical efficiency, Rosuvastain is superior to fluvastain. Actually our objective is to target some opinion moulders first for Rosuva tablet and special emphasis will be given to the doctors who usually attend the patients belonging to high-class of the society. High price is the main problem for Rosuva, but it is going to be introduced new generic for the first time in Bangladesh. This will provide a competitive edge over the available generics, by doing this we can overcome the disadvantage of high price.

Marketing Research:
Square Pharmaceuticals has its own Market Research & Planning Cell (MRPC). It is an independent department. It conducts the survey throughout the country. With the help of MRPC we can get the idea of prescription movement of Rosuva as well as competitors brand. Respective Portfolio Executive will visit the customers to collect their feed back regarding the

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product and study their satisfaction. The above tools will help to identify the opportunity and make strategies according for the establishment of the product.

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Costing of Rosuva
Particulars R/M cost P/M cost (R/M + P/M) cost Add: Wastage (5%) Total Material (TM) cost Conversion Cost :a certain % of TM cost & is given in A&F proposed price, equal for both Production cost (PC) Add: Fixed Admin. Cost and Sell & Dist. Incl. Discount (18% of TP) Add : Marketing cost (8% of TP) Total cost Mark-up TP Add : VAT (16.5% of TP) Add : Retailer's Comm. (16% of TP) MRP + VAT GM % Mark Up % Cost/Pack (Tk) 155.77 3.99 159.76 1.2 160.96 7.99 168.95 61.13 27.17 257.25 82.37 339.62 56.04 54.34 450.0 50 24

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6. Budget allocation for Rosuva:

PROMOTIONAL PLAN Monthwise breakdown July '07 August '07 September '07 October '07 SC November '07 December '07 January '08 February '08 March '08 April '08 Lit May '08 June '08 Total PPM PPM U.cost Qty. Lit 8 5,000 Pad 20 3,500 3 5,000 SAMPLE GIFT AND GIMMICKS

SALES FORECAST (Rosuva 10)

Total cost Sample U.cost Quantity Total cost U.cost Qty. T. cost 40,000 2's 45.00 1,000 45,000 70,000 2's 45.00 1,000 45,000 15,000 -

2's

45.00

1,000

45,000

5,000

40,000

2's

45.00

1,000

45,000

18,500

125,000

4,000

180,000

Value Sale Units (Tk.) 800 271,696 800 271,696 800 271,696 800 271,696 500 300 150,000 800 271,696 800 271,696 800 271,696 800 271,696 800 271,696 800 271,696 800 271,696 800 271,696 9,60 300 150,000 0 3,260,352

Lit: Literature
SC: Showcard

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7. Financial projections
3,260,3 52 97, 811 3,162, 541 1,621,9 20 1,540,6 21 180, 000 275, 000 489, 057 944, 057 596 ,565 29.85% 47.25% 2,565,977 23.25%

Revenue (Tk.) Less: 3% discount Net revenue (Tk.) Less: COG Gross margin (Tk.) Less: Marketing expenses Physician's sample PPM + Gift Distribution expense Total expense Net profit before tax (Tk.) Total expense as (%) of net revenue Gross margin (%) in first year Total Investment Return on investment

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8. Implementation controls: Day to day sales monitoring with the help of Square Information Backup System As the price of the product is high. Continuous communication with suppliers regarding the price of RM so that right decision can be taken in appropriate time to face the price war Necessary steps are taken by commercial department for smooth procurement of the raw materials Regular communication with the filed force for updated feedback regarding the prescription movement of the product Analysis of market share data provided by Market Research & Planning Cell, to take necessary measure for increasing/sustain market share

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