Marketing Theory: Final Case Study

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 We are Group ONE

Shah Mosaddek Hossain Md. Samsul Arifin Md. Sifatullah Bari

ID: ZR 2001002 – 36 EMBA ID: ZR 2001005 – 36 EMBA ID: ZR 2001015 – 36 EMBA
IT Professional, Grameenphone HR Professional, ACI Limited HR Professional, Beacon Pharma

Md. Mosharraf Hossain Fatema Begum M. G. Mostofa

ID: ZR 2001021 – 36 EMBA ID: RQ 2001042– 36 EMBA ID: ZR 1903020– 35 EMBA
Finance Professional, Beximco Brand Professional Middleware Administrator
Communication Incepta Pharma Uptech Solution Ltd

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 Incepta
Pharmaceuticals Ltd.

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um
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MA

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 Competitive edge of Bangladesh Pharma

15%
R:
G
a CA
m
har
P
a rs
e ution
5y contr ib
1.86%

2%
20%
98%

Local demand
Foreign demand
80%
14%
Generic drugs Patented drugs
18%
Market share
68%

Top 10 Companies Companies 11-20 Others

Bangladesh Pharma Industry Overview

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 • Incepta Pharmaceuticals Ltd. is recognized as the fastest growing of the top five manufacturing
company in the country. Established in the year 1999, the company has come a long way

• From the very beginning Incepta has focused on launching newer and innovative products

• High investment in R&D and advanced technology has allowed the company to launch
approximately 600 generics, approximately 1300 preparations, 255 which were "first ever in
Bangladesh".

• Incepta and its sister concerns are now manufacturing Biotechnology products like Human

Overview of Insulin and they are the first pharmaceutical company in Bangladesh to tap the biotech products

Incepta
• Incepta also produces life-saving "import-substitute medicines" at affordable price for the
people of Bangladesh as an expression of true love and compassion for the people

Pharmaceuticals • Acceptance of these high-quality products led to the company securing 2nd position among
Pharma companies within 8 years of starting operation

• Within 11 years of starting export operations, Incepta now exports its products in 74 countries

• Incepta has its own large distribution network having 25 depots all over the country

• Incepta Pharmaceuticals Ltd achieved National Export Trophy (for the fiscal year 2014-2015 and
2015-2016) in the pharmaceuticals products category

• Incepta received the GMP approval for its solid dosage form facility in July 2011 for its own
formulated products allowing marketing in UK and other European countries

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 Diabetes
is a chronic
(long-lasting)
health
condition
that affects
how body
turns food
into energy.

• 463 million adults (1-in-11) were living with diabetes in
2019
• Expected rise to 578 million by 2030
• 1 in 2 adults with diabetes remain undiagnosed (232
million). The majority have type 2 diabetes
• 1 in 6 live births (20 million) are affected by high blood
glucose (hyperglycaemia) in pregnancy
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According to National Institute of Population Research
and Training (NIPORT) In Bangladesh:
• In Bangladesh ~11 million people have diabetics
• 2.6 million are aged between 18 and 34 years while 8.4
million are over 35
• Only 13 per cent people were aware that they had the
disease
 Many patients with type 2 diabetes eventually require insulin therapy. According to American Diabetes
Association 2020, insulin should be given when HbA1c level is >10% or blood glucose level is 16.7 mmol/L.
• Insulin was discovered in 1921 by
Frederick grant Banting and Charles
Best • Currently 10 pharmaceutical companies produce
• Insulin is a peptide hormone and market insulin in Bangladesh
comprising of 2 polypeptide chains A
with 21 amino acid and B with 30
• MNCs importing Insulin as medicine since 1958
amino acid • Incepta Pharmaceuticals first introduced Insulin
• Insulin is secreted from pancreas; a
in 2007
gland located behind the stomach. It • Incepta Invested heavily in infrastructure to
allows body to use glucose for energy.
Glucose is a type of sugar found in
build bio-plant
many carbohydrates • Current market leader in Insulin market – Novo
• Insulin is mandatory for Type-1
Nordisk (56% share)
diabetic patients and for Type-2 • Incepta holds ~14% Insulin market share and in
diabetic patient with higher glucose
level and also in pregnancy onset
2nd position in insulin market
diabetes

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Overview on Insulin
 Evaluate and
The methodological Methods of data Methods of justify
approach collection analysis methodological
choices

• Trying to understand • Secondary data source • Predominantly • Only secondary data

Insulin market in • Internal and Company qualitative method analyzed due to
Bangladesh website • Collecting data from unavailability of data
• Competitor's analysis • International website, internet and • For Marketing strategy
• Market segmentation organizations Like other secondary analysis, industry
• Overall opportunities American Diabetics sources benchmark is analyzed
and threats in the Association research • Interviewing • Competitors’ analysis
market • National Institute of employees done based on models
• Technological Population Research • Analyzing reports and • Gap analysis done
landscape and Training (NIPORT) publishing regarding based on industry
• Contribution to the the topic practice and
economy • Analyze industry recommendation given
bechmark

04
03
01

02

Research Methodology

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 Competitive landscape
Competition Analysis
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 Overview of Insulin Market and Incepta’s share

ARISTOPHARMA POPULAR PHARMA

A.C.I. 1% 1%
5%
SQUARE
6%
Total Pharma market 2,184 Crore
Total antidiabetic market 219 Crore
SANOFI BANGLADESH

Insulin Market
7%
Total Human insulin market 84 crore
Share% of antidiabetic market in total pharma market 10.04%
ELI LILLY
9% NOVO NORDISK
56% Share% of Human insulin market in antidiabetic market 38%

NOVO NORDISK
Share of incepta in total pharma market 11.57% (Position 2 nd)
INCEPTA PHARMA
INCEPTA PHARMA ELI LILLY
SANOFI BANGLADESH
Share of incepta in total antidiabetic market 12.88% (Position 3 rd)
14% SQUARE
A.C.I.
ARISTOPHARMA
POPULAR PHARMA

• Novo Nordisk holds 56% market share

• Incepta positioned 2nd with 14% share
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 PEST Analysis
Political
• Sound government policy for pharma
industry
• VAT waiver on Insulin sale
• Political stability helps in growth
P
• Better infrastructure ensure timely logistics Economic
• Pharma market grows 11% - Incepta 2nd

E •
largest in pharma market
Antidiabetic market grows ~18%
• Steady economic growth ensure higher
Social spending on Medicare including insulin
• People are more aware about diabetics

•
• Health consciousness are high
With the increase in ageing population high
S
concentration on Anti diabetic drugs Technological
• Heavy usage of modern technology
T •
•
State of the art production facility
Technological precision and robotics
are required in production

E
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 • Heavy machinery suppliers are • Heavily CAPEX intensive and research-based

NEW ENTRY
THREAT OF
based in Western Europe industry
• Uniqueness in supplier's • Compliance is high before production
product (Biocon FDA certified) • Huge perception about foreign Insulin
• Raw material imported as • Access to top tier doctors
crystal form
• Insulin Pen imported from
Switzerland
SUPPLIER POWER COMPETITIVE BUYER POWER
RIVALRY
• Difference between competition
• Price sensitivity

SUBSTITUTION
• No substitute product • Buyers information availability

THREAT OF
• Buyer propensity to substitute
• Relative price performance of substiture product
• Switching costs
• Competition – Novo Nordisk • Industry growth - ~18%
• Diversity of competition • Barriers to entry – CAPEX
intensive
• Industry concentration

Porter’s Five Force Model

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 01 02 03 04
Target Group Needs Product’s indication Business Goals

• Type 1 diabetics – • This is life savings • Incepta holds 2nd

• Type 1 Diabetes
Children and drug for diabetic position in Insulin
Adolescents patients mellitus market.
• Target is to
• Type 2 Diabetes
• Type 2 diabetics – increase from
Adult (20 – 79 mellitus current 14%
years) market share to a
inadequately
sizable
controlled on OADs percentage.
• Start mass export
• Type 2 Diabetes
in foreign market
mellitus with
• Purpose: Incepta Pharmacitulars creates complications
Maxsulin to give human insulin to mass • Gestational
community at an affordable price
Diabetes mellitus
• Positive changes: It will ensure every diabetic
patient receive the medicine it requires

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Product Vision Board
 STRENGTHS

T H R E AT S S • Pioneer local brand in insulin market

• KOLs are still advocating the MNC
brands
• Secretary and president of Diabetic
• Only local brand that is bioequivalent to
innovator’s brand
• Distribution to the remotest part of country

•
Centers have to good rapport with
MNCs
Novo have more advanced insulin
T W
preparations in the market WEAKNESSES
• Beximco is marketing Gensulin as the
same insulin being used in Europe

O
• Lack of published clinical trials of Maxsulin (incepta
O P P O RT U N I T I E S Insulin)
• Targeting the same group of doctors with different
• Affordable than MNC insulin brands (Vial and Cartridge category (OAD, anti-hypertensive, lipid lowering etc)
of Lilly and cartridge of Novo is more costly than products
Maxsulin)
• New local competitors entering the market which will
increase the prescription of locally manufactured Insulin

Sensitivity: Internal SWOT Analysis

 A n ti d iab eti c mar k et Vs To t al P h ar ma mar k et Human In su lin + Analo gu e v s Anti d iabeti c Market Company wise share % in insulin market
Aristo Others
ACI 2% 3%
8% 6%
Lilly
22% 12%
Novo
92% Square 49%
78%
9%

Incepta
18%

Total Pharma Market Anti-Diabetic Human Insulin + Analogue Anti-Diabetic

• Anti-diabetic market Growth Insulin market enjoys more than a Among the local competitors
(18%) is higher than Bangladesh one fourth of the total Anti- Incepta enjoys the highest market
Pharma market (12%) share
diabetic market.
• With 8% of market share Anti-
diabetic segment plays a key role
in overall Pharma market.

Sensitivity: Internal Insulin Market Overview

 50
48
45
42
45
43 43 RX Analysis
40
manufacturers (in crore)
37 3.17 2.93
35 37
Monthly sales trend of

4.04
30 37.36
9.078.55
25 24
20 21 21 21 22
18 19 12.14 20.08
15
10 8.44 8.46
6.91 7.68 7.61
5 6.52
4
6.48
4 5
4
6
4 5
4 5
4 6
4
3
2 2 3 3 3 3
0
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19
Novo (Insulin Brands) Maxsulin (Incepta) Diasulin (ACI)
Human Insulin Novo Incepta Ansulin (Square) Humulin (Eli Lilly) Insulet (Aristopharma)
Lilly Square ACI Gensulin (Beximco) Mysulin (Drug Intn'l)

35
32
30 30
27
Yearly growth Analysis

25 25
24
23 24 24
22
20
18 18 18
16 16
15 15 15 15
10
13
11
14

8
14
11
10 Sales and Growth
5 5
4 3 2
0
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

Incepta Lilly Square ACI

Findings: Lilly is very aggressive in the market with the

highest growth rate. Sales of Square is stagnant where as ACI
isSensitivity:
increasingInternal their momentum in last 2 quarters.
Segmentation
Key Opinion Leader (KOL) Head of different Diabetes Association and decision makers

Potential Prescribers Endocrinologists and Diabetologists

Prescribers from related fields Medicine Specialists, Gynecologists, Surgeon

Target Doctors:
Endocrinologists & Diabetologists:
• OAD failed T2DM patients Medicine Specialists: Surgeon: Gynecologists:
• Newly diagnosed T2DM patients • Newly diagnosed T2DM patients • Surgery patients • Gestational Diabetes
with high HbA1c
with high HbA1c

Positioning
Maxsulin is cheaper than the Established as a First local insulin No other local brand
prime competitors Novo & affordable brand Brand with 12 years has this competitive
Lilly of clinical trial advantage
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experience
 Price
Price(Affordability)
(Affordability)

Product
Novo Human Lilly Human
Subject Maxsulin
Insulin Insulin
Vial
Vial Vial
100 IU: 415 tk
Unit Price 100 IU: 415 100 IU: 480
40 IU: 195
(Tk) Cartridge Cartridge
Cartridge
3ml: 419 3ml: 484
3ml: 222

• Cartridge price of competitors is almost double

• Vial price is also cheaper than Lilly
• Price advantage should communicate properly so that doctors Immunogenicity
prescribe Maxsulin to max people
Immunogenicity profile of Maxsulin
is comparable to innovator’s brand
and it didn’t hamper the efficacy of
Maxsulin Test Insulin R + N

Week 24
Percentage from Baseline to
insulin Antibody Binding
Change in Mean Anti-
Innovator's Insulin R + N

9.68

9.66
7.21
7.1
B a se line We e k 24 me a n
Among Local insulin brands Maxsulin is the only brand which
is equivalent to innovator’s brand. The study proved that
Maxsulin decreases blood glucose levels at a same rate as
Bioequivalent to innovator’s brand
Sensitivity: Internal
 Value Drivers
Promotion
Maxsulin is promoted by highly skillful salespeople of Aster team. The Respect for
main objective of our promotion will be: Integrity
people
 Breaking the barriers of KOLs imposed by MNCs and earn a
significant share from these KOLs
 Making a distinct difference from other local brands
 Making infrequent prescribers to loyal prescribers through
promoting quality aspects to strengthen their confidence
Performance &
 Incorporate more KOLs and potential prescribers in Maxsulin Innovation
Leadership
campaigns

90.0
80.8
80.0
70.0 67.2
60.0 55.4
50.0 Launching 48.1
Bioequivale of
Cartridges
42.2 Maxsulin is distributed to all over Bangladesh
40.0 nce of 35.7
Maxulin through 24 depots strictly maintaining cold
30.0 Launching 25.8
of Vials
18.3 20.0
chain system of 2-8°C temperature.
20.0
12.3
10.0 7.8
4.0
0.5
0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Fig: Yearly Sales of Maxsulin in lacs

Sensitivity: Internal Marketing

 Unique cold chain system from factory to delivery

Cold room in factory Transportation by Central store Distribution through

Temperature +20C to cold van Temperature +20C to cold chain box
+80C Temperature +20C to +80C Temperature +20C to
+80C +80C

Place Refrigerators in all depot

Temperature +20C to +80C
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 Novo Lilly
Ansulin Diasulin Gensulin
Subject Human Maxsulin Human
(SQA) (ACI) (BXM)
Insulin Insulin
T2DM T2DM T2DM T2DM T2DM
T2DM uncontrolled by
Patient Segment uncontrolled uncontroll uncontrolled by uncontrolled by uncontrolled

Competition Overview
OAD
(Positioning) by OAD ed by OAD OAD OAD by OAD
 
T1DM T1DM      
Endo/Diab/ Endo/Diab/ Endo/Diab/ Endo/Diab/
Target Segment Edno/Diab Edno/Diab
Med Med Med Med
Sales & Growth 24 8 6 4 3 0.3
% 12% 24% 30% 10% 11% 999%

Pioneer local brand, Efficacy, Company

Efficacy, Company Image,
Equivalent to Safety, Cost effective, Image, Cost
Unique Selling Safety, Cost effective,
innovator’s brand, Quality Distribution effective,
Point Quality Distribution
Cost effective, MNC Channel Distribution
MNC brand Channel
Distribution channel brand Channel

Vial Vial Vial Vial

Vial Vial
100 IU: 415 tk 100 IU: 100 IU: 415 tk 100 IU: 415 tk
Unit Price 100 IU: 415 100 IU: 415 tk
40 IU: 195 480 40 IU: 195 40 IU: 195
(Tk) Cartridge 40 IU: 195
Cartridge Cartridge Cartridge Cartridge
3ml: 419  
3ml: 222 3ml: 484 3ml: 222 3ml: 222

Sensitivity: Internal
 01 Strong Social Media Presence

02 Building Relationship

Doctor Engagement Program 03 Offer Free Samples

In House Field Force Program 04 Innovative Marketing Strategies

Patient Centric Program Connect With Customers

05
Emotionally

Reach Physicians Through

06
Online Communities

07 Create Visual Aids For Physicians

Sensitivity: Internal Channel Development

 Current State
Within 5 years of launch
Incepta secured 2nd position
Currently serving local market
and exporting in two country
in the insulin market
only

Current production is 0.24 Sourcing insulin dispenser

million unit per month Convipen from third party
and selling with subsidy

Production capacity is 25
million unit per month

Sensitivity: Internal Current State

 05

04 Enhance belief of
patients on Insulin
Desired State

product

03 Utilize full production

capacity for
manufacturing insulin
within 2 years
02 Global market
penetration for Insulin
product Target only local market and not global market
Achieve 40% growth for
01

GAP Analysis
human insulin in the
next fiscal year Not conducting customer (Doctor) surveys to realize what end-
user perceive about our product compared to market leader
To create a strong
position on consumers’
mind
Not focusing corporate branding like giant competitors - Square
and Beximco

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Invest more in R&D to
develop own facility for
raw material production
to reduce dependency on
export channel
Possible Remedies
Increasing Arrange conference to
Cartridge demand is on
clinical trials attract local hospital
rise. Promoting patient
involving KOLs authority and International
friendliness of cartridge
to reduse MNC alliances to expand the
and thus increasing sales
biasness business of this product in
will reduce subsidy
the local arena as well as
global arena

Conduct customer Increasing Strategic

Preparing and
surveys on regular alliance with Promotional posting AV of
basis until the product Government hospitals campaign Maxsulin focusing
reaches a target as well as private
on high quality and
market share hospitals e.g. Apollo,
bioequivalence
United Hospital, IBN
Sina hospital, Birdem,
BSMMU

Sensitivity: Internal
Building TRUST among
customers…

 Increasing doctor engagement program specially

KOLS
 Establishing trust among customers who are
unfamiliar with Insulin brand
 Demonstrating Incepta’s commitment to product
quality
 Figuring out how to bring energy to cold, lifeless
products (by preparing and showing AV)
 Breaking down complicated product properties into
Sensitivity: Internal successful selling points
 Building TRUST among customers…
Creating a dedicated 'About Us' page for Maxsulin and updating
regularly thus building trust among patients
Customers instinctively want to feel comfortable and safe with their
biotech provider. So, if patients can share their experience and
problems and know what they want to know that will create trust
among patients towards the brand.

Demonstrating product quality

Arranging factory visit for KOLs and showing AV regarding production facility
of thus demonstrating product quality and building confidence on Maxsulin

Sensitivity: Internal
 Building TRUST among customers…
Conducting clinical trial involving KOLs and publishing the report to
establish the efficacy of Maxsulin on diabetic patients

Increasing corporate branding by CSR that would otherwise boost the sales
of Maxsulin
For the last 2 years Incepta has started focusing on corporate branding. Although
Incepta has introduced the highest amount of newer drugs in Bangladesh but Incepta is
not too familiarize to many patients like Square and Beximco. So, for the specific brand
to sell Corporate branding is also important

Sensitivity: Internal
 Building TRUST among customers…
Highlighting more of Incepta's production & distribution facility and
Bioequivalence with MNC brands and 12 years of clinical success
The fact that Incepta is the only local company that has dedicated plant for biotech
products, Maxsulin is the only local insulin that has Bioequivalence study with
competitors, Their superb cold chain facility to deliver to remotest corner of the country…..
Many KOLs and doctors don’t know that. Incepta should highlight more of these
information while promoting Maxsulin to increase confidence among the customers

Showcase industry certifications.

Listing company’s industry certifications and approvals:  
On company’s landing page, within product inserts, on technical specification sheets

Sensitivity: Internal
 Building TRUST among customers…
Using videos to bring products to life.
Sometimes it can be a challenge for customers to visualize exactly how a biotech drug
functions. Creating videos for products is a strategy that help building trust for using
insulin Brand

Highlighting price affordability

Price of Maxsulin is almost half of the MNCs…. This can be highlighted more
as buying power of many patients in Bangladesh is quite low

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 Thank You

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 Question and
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Answer!!!