Professional Documents
Culture Documents
(Private) Limited
2008
Business Scope
AGP Defines its business within the Pharmaceutical Industry. The Vision is to become the Market Leader in the Antibiotics and Pain Killer Segments by providing the highest quality Brands to customers. AGP has acquired Eli Lillys Antibiotic Product Line to market in Pakistan. AGP is progressing towards Export Business in Nairobi, Phillipines, Canada.
(Private) Limited
Competition
GSK Multinational Pharmaceutical Market Leader BMS Multinational with competing products in same market segments. Hilton National Pharmacetical Company with same product portfolio in Pain Killer Market Getz Largest Growing Pharmaceutical National Company in Pakistan
(Private) Limited
Company Introduction
Company Size = 1.46 Bil PKR Company Ranking in Pharmaceutical Industry = 11th Company Market Share : 2.14 % Business Units = 5 Target Segments = GPs, Gynae, Derma, Surgeons, Paeds/ENT National Distribution Network = AGnC Company
LOGO Branches in Pakistan : Khi, Hyd, Skr, Qta, Mux, Fsd, Gjw, Lhr, Rwp, Psw, DIK
Pharma Market
64.3 billion PKR Growing at 11 %
2.31 bil 15 %
J01D2
Pharma Market
M01A1 Others
3.36 bil 12 %
97606900
32815344 34588082
36179607
(+000)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
No. of Companie s
482
489
507
522
542
571
550
583
586
590
602
614
622
J A N R C
Systemic Anti-Infectives Alimentary Tract & Metabolism CNS Respiratory System Cardiovascular System
1585155 12515684 1931218 10041243 846421 1348845 315153 5532062 3877881 3354425
Code
Category
Unit
(+ 00)
Value
(+ 000) 12515684 11155194 372946 11196 2539757 3585083 1799319 1785763 1791244
Share
% 25.6 22.8 0.8 0.2 5.2 7.3 3.7 3.7 3.7
Goly
% 13 13 6 15 16 18 18 17 11
J
J01 J01A J01B
Systemic anti-infectives Antibiotic systemic Tetracycline & Combs Chloramphenicols & Combs
1585155 1466165
J01C Broad Spectrum Penicillin (Oral) J01D Cephalosporins & Combs J01D1 Oral J01D2 Injectables J01G Fluoroquinolones
Cephalosporins
Cephalosporins & Comb (J01D) Oral (J01D1) 7474216 6674000 5958400 5320000 4756733 4128542 3710841 3220076 2972966 2719102 2386699 2376939 2344370
(+000)
1224208 1316648
1378886 1481184
1502432 1621802
1860177
2119909
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
600000 500000
447691 417166
400000
336960
360937 310554
365229
377389
290671
171870
189048
171835
167513
204671
203359
213000
220000
225000
65949
66458
59764
83519
99715
116000
141700
0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Velosef
Ceporex
Keflex
BMS
% 25.2 23.8 24.1 24.5 23.5 23.2 22.0 21.9 21.0 20.2 19.3 18.5 % 15.8 -7.8 16.2 1.1 3.32 10.5 7.3 17 9.9 7.9 7.1 7.0 %
GSK
% 9.9 -9.1 -2.5 -6.7 -2.2 25.2 7 -0.6 4.9 3.2 2.27 4.4 % 14.1 13.1 11.2 10.4 9.5 10.6 10.0 8.5 7.8 7.1 6.5 6.8
AGP
% 0.7 -10.1 33.8 6.5 4.07 -19.5 17.1 19.39 16.7 22.1 19.9 17.6 4.9 4.5 5.3 5.7 5.5 3.9 4.1 4.1 4.2 4.5 4.8 5.2
% 11.1 -2.4 14.6 -0.4 7.5 11.9 13.2 17.4 11.1 11.1 11.1 11.1
1.31 1.37 1.48 1.50 1.62 1.86 2.11 2.44 2.73 3.06 3.42 3.83
Which Indications
To Target ?
RTI 85%
RTI 50%
Others 9%
SSTI 7%
UTI 7%
Which Specialities
To Target ?
RM O 9%
Phy 2% Paeds 2% S u rg 0%
RMO 20%
GPs 64%
EENT 3% Gyn 2%
Surg 6%
Paeds 3%
Phy 2%
Age Bracket
(+000)
BMS
GSK
AGP
Competitor Analysis
Where We Are ??
Antibiotics/Pain Antibiotics/ Vitamins/ Oncology/ Killers/Vitamins/ Pain Killers Antibiotics/ Pain Oncology / CNS / Killers/ CNS/ Respratory Cardio / Resp. GPs + Gynae + GPs + Gynae + RMO GPs + Paeds + Surg + RMO + ENT RMO + Gyne + + Paeds + Phy ENT + Dent
Customer Base
Marketing Operations Production Capacity Human Resource Deployment Financial Capabilities Brand Ownership
Lucrative
Completely Utilized + 3rd Party Mnftg
Distribution Analysis
Outlets/100 Institutions)
Channel
Product Mix
Outlet Coverage
No. of Outlets selling Product Mix Total no. of Outlets
Market Reach
Sale of Product Mix Sale of all brands
AGnC
AGP
83 % 50 % 2% 0%
3% 1.2 % 0.1 % 0% 32 % 24 % 18 % 1% 24 % 31 % 19 % 2%
MnP
GSK
85 % 75 % 56 % 2%
P.D.s
BMS
76 % 86 % 67 % 4%
Cost Analysis
Raw Materials
Operational Cost
Fixed Costs
Distr. Cost
Selling Cost
Total
AGP
18 %
21 %
16 %
11 %
9%
4%
21 %
100 %
BMS
16 %
21 %
21 %
9%
11 %
8%
14 %
100 %
GSK
12 %
18 %
25 %
11 %
13 %
4%
17 %
100 %
To Predict Future
P L E S T olitical Affairs : Army Dominance in Institutions egal Issues : WTO Factor conomic Climate : Local Pharma Industry Revolution ocial Changes : Doctors getting personalized echnological Advancement : Research & Development
SPO Yield
10 lac
Increase Dr Reduce on List Territory Size Launch new Products Expand Coverage Expand Coverage Hierchy On Job Training
25 %
7%
Rs. 1000 per Rs. 633.5 Increase minute per minute working time in Field 0% No Limit MnP 15 % Mediocre AGnC Training Training Workshops
Confrontation Matrix
Strengths
6 sigma Organization Positive Work Climate Aggressive Attitude towards Growth Production Capacity Growing Phase
Weaknesses
HIGH RISK
After Improvement
PROMISING
Opportunities
Threats
New Product Segments New Customer Base Institutional Business Expansion of Field Force Managers Training
Loss of Sales because of Substitution Majorly Driven by GPs Customer Base Likely entry of Competition
90 % 25 % 95 %
5% 10 % 5%
5% 25 % 25 % 15 %
Product Related
Quality Efficacy Safety Convenience Discount Price
Weightage
10 % 10 % 15 % 10 % 3% 10 %
Velosef
10 % 10 % 15 % 10 % 2% 7%
Ceporex
10 % 10 % 15 % 5% 1% 8%
Keflex
10 % 10 % 15 % 5% 2% 8%
S. No
1 2 3 4 5
Service Related
Regular Reminder Presentable SPO Marketing gimmickry You scratch my back & I will scratch yours Distribution TOTAL 10 % 5% 10 % 2% 15 % 100 % 5% 5% 5% 15 % 85 % 5% 5% 5% -% 15 % 79 % 8% 2% 7% 1% 5% 73 %
Quality Efficacy
Safety
Regular Reminder
Distrib.
Presentable SPO
Sir,
That completes the first part of this presentation
Market Dynamics Internal Analysis Confrontation Matrix Customer Demand Our Position in Customers Eyes
Now
THE PATH TOWARDS 2008
The Mission
Strategic Intent
Nothing but the Best !!
Core Values Core Purpose
Core Values: Quality Pharma Products Core Purpose: We Value Life Business Vision: Market Leader in J01D1 BHAG: 200 mil in 2008
Business Vision
25 0 S u sp 16 % 500m g C ap s 57%
125 S u sp 14%
IMS, Q IV 2004
250m g S u sp 16%
IMS, Q IV 2004
5 0 0 m g C a p s u le s 25%
D ro p s 26%
Drops 10%
IMS, Q IV 2004
50000
45000
40000
32378
7685
10090
1998
2000
2002
Keflex 125 Susp
2004
2006
2008
20000
15785
19100
15000 10000 5000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Keflex 250 Susp
(+000)
9119
11160
12472 10550
12549
9000
5793
5728
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
50000
41000
40000
30000
30000
20000 14763 9147 10506 15406
20000
14131
18684 18336
10000
8314
0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Keflex 500 Cap
(+000)
60000
Keflex Drops
52000 47000 40500 34693
50000
40000
29662 24994 30862
30000
24018 19016 21331 19397
27257
28745
20000
10000
0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Keflex Drops
(+000)
Tactical Plan
2006
Increase Doctor Coverage in Local Cities Base SPOs in Hospitals Tap Local Potential & Gynae Segment Include in Hospital Formularies
2007
Deploy SPOs in Potential Towns Increase Coverage in Peripheral Areas Expand into Surgery Segment Grab Tender Business
2008
Government Institutions Street Business Hospital Business Tender Business
Segments of GPs, Gynae, Surgery should be our domain. We should enter into Hospitals, Government Institutions & dominate Streets
Competitive Innovation
Increase Field Force Size
SPOs = 85 RSMs = 17 SMs = 3
Till 2008
Expand Specialities
GPs Gynae Surgery RMOs Paeds
2005
In 2006
/ / / / / / / / / / / /
/
RSM = 2 RSM = 1 RSM = 1 RSM = 1 RSM = 1 RSm = 1 RSM = 1 RSM = 2 RSM = 1 RSM = 1 RSM = 1 RSM = 1
RSMs = 14
Total
Strategic Drift
Doctors on List = 140 GPs = 70
A4 = 45 A3 = 15 A2 = 10
Surgery = 10
A4 = 5 A3 = 5 A2 = 0 Daily Calls = 18
Gynae = 35
A4 = 20 A3 = 10 A2 = 5
Paeds = 2
A4 = 2 A3 = 0 A2 = 0
RMOs = 15
A3 = 5 A2 = 10
Others = 8
A3 = 3 A2 = 5
Working Behavior
Morning = 12 Calls
Morning starts
OT Reminder Ward Working Hospital OPDs GPs Working Discharge Slips
Evening = 6 Calls
GPs Working Consultant Calls
Meeting Schedule
Weekly Meeting
Every Monday - 3:00 PM to 5:00 PM Regional Meeting - 9:00 AM to 5:00 PM Zonal Meeting - 2 days Pakistan Level - 3 Days
Quarterly Meeting
6 Monthly Meeting
Annual Meeting
The Costs of Gaining Share & ROI Knock On Effect Changing Loyalty of Customers from Competition involves higher investments Organization Intent to Grow PLC Increase in Share is attractive from less appealing and less profitable segments Monopoly Legislation Competitive Fight Short Term Gain Competitive Retaliation Brand Equity Dont Fall in No Mans Land
Thank You