Identifying factors affecting marketing

communication of the pharmaceutical

industry in Bangladesh

[Company name][Company address]

Internship report
On

Identifying factors affecting marketing

communication of the pharmaceutical industry in
Bangladesh

Submitted to:
SyedaMahrufa Bashar
Assistant Professor and Chairperson
IBA Career Center

Prepared by:
DattaSreeRajib Kumar
Roll: 05
MBA 51D

Faculty Advisor:
Md. FarhanImtiaz
Assistant professor

Institute of Business Administration, University of Dhaka

Date of Submission:12nd July, 2016

12ndJuly, 2016
SyedaMahrufa Bashar
Assistant Professor and Chairperson
IBA Career Center
Institute of Business Administration,
University of Dhaka.
Subject: Submission of Internship Report onIdentifying factors affecting
marketing communication of the pharmaceutical industry in
Bangladesh

Dear Madam,
I would like to submit this report titled Identifying factors that affect
marketing communication of the pharmaceutical industry in Bangladesh.
This report has been prepared as a mandatory requirement for the
completion of my internship at Navana Pharmaceuticals Bangladesh Limited
under the MBA Program of Institute of Business Administration, University of
Dhaka. During my internship period, I have been able to acquire some
working knowledge on functions of marketing and how marketing
communication plays an important role in the pharmaceutical industry. This
report has been prepared under direct supervision of the internship faculty
advisor Md. FarhanImtiaz.
I sincerely appreciate the opportunity to work on this project. I sincerely hope
that this report fulfils the objectives and requirements of my internship
program.
Sincerely yours,
_____________________________
DattaSreeRajib Kumar

Roll: 05
MBA 51D
Institute of Business Administration, University of Dhaka

Acknowledgement
This report is done as a mandatory requirement of the internship program
under the MBA program at the Institute of Business Administration (IBA),
University of Dhaka. The content of the company survey and company
findings is completely confidential and is not serving any purpose other than
study material. This report was prepared under the direct observation and
monitoring of our honorable teacher and course instructor Md. FarhanImtiaz,
Assistant Professor, Institute of Business Administration, University of Dhaka.
His consistent observation, strong criticism and tireless mentoring during the
preparation of this report was unforgettable. During this internship period I
got the complete guidance and help from Md. FarhanImtiaz which helped me
a lot to enrich my knowledge in practical scenario. I am really grateful to him
for his assistance during this time. I would also like to convey my sincere
gratitude to SM Saifullah, Executive, ISD Division, Navana Pharmaceuticals
Bangladesh Limited. He has given me his valuable time and full support
while preparing this internship report. He has made it possible to collect all
the necessary information by requesting his team to extend full co-operation
towards me.

Executive summary
Every year pharmaceutical companies in Bangladesh spend a lot of money
behind their marketing communication activities. Marketing communication
in this industry is different from other industries in a sense that here most of
the communication takes place via face to face basis. During this
communication process, sales associates get only a few minutes to
communicate with the physicians. Consider this it is imperative for the
pharma companies to know the factors that affect the marketing
communication activities in this industry. If the companies get to know these
major factors that affect communication process in pharmaceutical industry
then it will be helpful for them to set their marketing strategy accordingly.
At first for finding out the factors that affect marketing communication
activities different types of online journal was reviewed. Then for validating
these factors qualitative research was done with the sales associates group
from Navana Pharmaceuticals, Square pharmaceuticals and Incepta
pharmaceuticals. Also depth interview was conducted with physicians. From
this some factors were eliminated and some new variables were included.
Then a questionnaire was designed which consists both categorical and
continuous scale. For the survey purpose non-probabilistic convenience
sampling method was used and a total of 52 physicians participated in that
survey. All of the physicians are resided in Dhaka city which is one of the
drawback of the study. If physicians from other city were included then the
result would be more exhaustive.
In the mid-section of the report overview of Navana Pharmaceuticals Ltd was
highlighted. Major marketing and sales activities of the company were given
in that part. Also different types of communication strategy preferred by the
company was discussed in details in this section. Among the different
promotional strategy Navana Pharmaceuticals prefers detailing most
because it gives the company the opportunity to directly communicate with
the physicians. The company also prefer other promotional strategy like
product sampling but in a smaller amount compared to other market players.
For completing the analysis section all the data from the conducted survey
was put in SPSS statistics 20.2. At first for finding out the most preferred
promotional strategy of the physicians frequency distribution was
performed. It was found out that among different promotional strategies
physicians prefer public relation activities most. Detailing was the second
preference among them. In the next section for finding out the most
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preferred communication medium of the physicians multiple regression

analysis was performed. Among the five different communication channel
only face to face communication channel has p value less than .05. So from
this part it is clear that physicians prefer this channel most compared to
other channels. In the last part of the report factor analysis was performed to
reduce several variables under one factor. Here after the analysis four final
factors were obtained which are information factors, image factors,
promotional factors and sponsorship factors.
At the last part of the report some recommendations have been provided
from the perspective of Navana Pharmaceuticals Bangladesh Limited. First
of all, it was suggested that the number of sales associates of the company
needs to be increased because it will give the opportunity to reach out more
physicians. Also increase in number of sales associates will give the company
flexibility to make calls to the physicians. Second, factors that were obtained
from factor analysis needs to be synchronized in between. Doing this will
ensure that, marketing communication strategy of Navana Pharmaceuticals
is meaningful to the physicians.

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Table of Contents
Executive summary................................................................................................ 1
1.0 Introduction...................................................................................................... 4
1.1 Origin of the report....................................................................................... 4
1.2 Background of the study..............................................................................4
1.3 Objectives....................................................................................................... 4
1.4 Methodology.................................................................................................. 5
1.5 Scope of the report....................................................................................... 5
1.6 Limitations of the study...............................................................................6
2.0 Literature review.............................................................................................. 7
3.0 Pharmaceutical industry in Bangladesh.....................................................10
3.1 Industry overview....................................................................................... 10
3.2 Current market share in the industry......................................................11
3.3 Key success factors for the industry:......................................................12
3.4 Porters five forces for pharmaceutical industry...................................13
4.0 Company overview......................................................................................... 15
4.1 Navana Pharmaceuticals Bangladesh Ltd...............................................15
4.2 Navana Pharmaceuticals Mission............................................................16
4.3 Major competitor:....................................................................................... 16
4.4 Marketing and sales department of Navana Pharmaceuticals Ltd:....17
4.5 SWOT analysis of Navana Pharmaceuticals Ltd:....................................18
4.6 Communication mix.................................................................................... 19
4.7 Communication mix of Navana Pharmaceuticals Ltd:...........................20
5.0 Analysis and Findings.................................................................................... 21
6.0 Recommendation for future improvement:...............................................27
7.0 Conclusion....................................................................................................... 28
Bibliography........................................................................................................... 29
Appendix................................................................................................................ 30

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1.0 Introduction
1.1 Origin of the report
This report is prepared as a mandatory requirement of the internship
program under the MBA program at the Institute of Business Administration
(IBA), University of Dhaka. The report was completed on the proposed topic
Identifying factors that affect marketing communication of the
pharmaceutical company in Bangladesh".
The intention was to gain some real world experience by working in a
practical environment. The internship supervisor SM Saifullah, Executive, ISD
divison, Navana Pharmaceuticals Bangladesh Limited and the faculty advisor
was Md. FarhanImtiaz, Assistant professor, IBA, DU.

1.2 Background of the study

Marketing communication in the pharmaceutical industry is different from
rest of the other industry because here most of the communication takes
place one to one basis. For communicating with the physicians,
pharmaceutical companies use their sales associates. In Bangladesh most of
the local pharma companies have huge number of sales associate for
marketing communication purpose. But compared to other pharma
companies, Navana Pharmaceuticals Ltd has small number of sales
associates. With this number of field force sometime it is not possible for the
company to reach all of their target customers. Also during the
communication process, sales associate get only a few minutes to
communicate with the physicians. Thinking of this situation, the company
wants to know what major factors affect marketing communication in
pharmaceutical industry. So if Navana Pharmaceuticals gets to know about
these major factors then the company will be better able to utilize its sales
force accordingly.

1.3 Objectives
Broad objective:
Identifying factors that affect marketing
pharmaceutical company in Bangladesh

4 | Page

communication

of

the

Specific objective:

To find out factors that affect communication mix of the

pharmaceutical companies in Bangladesh.
To find out the communication channels that affect marketing
communication of pharmaceutical companies in Bangladesh.
Provide recommendations for future improvement.

1.4 Methodology
At first we did literature review for finding out the factors that affect
communication mix and communication channels in pharmaceutical industry.
Then for validating these factors qualitative research was done with the sales
associates group from Navana Pharmaceuticals Limited. Also depth interview
was conducted with physicians. From this some factors were eliminated and
some new variables were included.
After getting the variables, a questionnaire was designed which consists both
categorical and continuous scale. For most of the questions, I have used
Likert scales anchored to strongly agree (given a value of 5) to strongly
disagree (given a value of 1). For questionnaire survey I have conducted nonprobabilistic convenience sampling method to conduct survey with doctors. A
total 52 number of physicians were surveyed for this research purpose. The
selected doctors were specialized in Medicine, Surgery, Gynecology,
Orthopedics and others. After conducting the questionnaire survey, I have
put all the data in SPSS statistics 20.2. Then I have conducted frequency
distribution, multiple regression and factor analysis to analyze the data and
give some recommendations based on this analyses.

1.5 Scope of the report

This report will address those factors that affect marketing communication in
Bangladesh pharmaceutical industry. Here only those factors were
considered that directly affect the communication mix and communication
channel of pharma industry. Other than these factors no other factors were
considered in this report. For finding out these factors, physicians from
Dhaka city will be surveyed. No other physicians besides Dhaka city will be
5 | Page

surveyed. In the last part of the report recommendations for future

improvement have been provided from the perspective of Navana
Pharmaceuticals Ltd.

1.6 Limitations of the study

This study will cover only those physicians who are resided in Dhaka. If other
physicians besides Dhaka city were included then the result of this research
would be more exhaustive and insightful. Also those physician who
participated in this survey may not be the companys target customer. So the
result of this research is not conclusive from the perspective of Navana
Pharmaceuticalsltd. These are the main limitations of the study.

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2.0 Literature review

Jeff Meehan states that traditionally pharmaceutical companies focus was
only on the doctor for the pharma product sales. But right now because of
the time constraints of the physicians, sales people are facing problems for
getting the appointment with them. He also states that with the emergence
of new technology and digital platform marketing platform is shifting towards
the digital side. With the shifting of marketing platforms toward the digital
sector, customers are also getting immersed in the online. As a result,
whenever they need any health information they take the help from health
portals to pharma manufacturing websites. Because of this reason Jeff
Meehan argues that pharmaceutical companies need to focus on digital
marketing which will help the company to get more engaged with the
customers.
Prof. BognaPilarczyk stated that there are several factors which are
responsible for affecting the marketing communication with the customers.
These factors are: The most frequently cited factors include: the type of
needs to be satisfied, the type of drug, buyer habits and preferences, the
laws in force, market globalization processes, increasing competition, as well
as the development of new marketing communication technologies. He also
states that patients give particular attention to the communication processes
of pharmaceutical companies as these companies are trying to satisfy the
most important human need which is human life.As a result the patients
expect to receive comprehensive, reliable and credible information about a
given drug, its properties, application, dosage, effects and possible side
effects. Such information may be provided by a doctor, a pharmacist, a
leaflet, drug packaging, advertising etc. So thats why pharma companies
need to give particular attention to these mediums because these mediums
act as a contact point with the customers.
Rizwan Raheem Ahmed, Vishnu Parmar, Nawaz Ahmad, Usman Ali
Warraich, ImamuddinKhosoin their article stated that Marketing of
pharmaceutical product is a unique because it involves continuous
interaction with the customer and most of the communication takes place
in one to one basis. As the communication process in pharmaceutical
industry is one to one basis, there is no impact of noise or interference in
here. But on the other hand it poses a challenge to marketers because they

7 | Page

need to be very effective in their communication because they will get very
few minutes to communicate with the doctors.
In an article title at Influential factors on prescription preparation by
doctors: a survey conducted on practicing doctors and medical
representatives in Bangladesh it was stated that Seventy six percent of
surveyed doctors consider company image during prescription generation
while 83.3% representatives think the same. The surveyed doctors think that
pharmaceutical product from renowned companies deliver superior value to
the patients.

Rizwan Raheem Ahmed, Vishnu Parmar, Nawaz Ahmad, Usman Ali

Warraich, ImamuddinKhoso also stated that the steps for delivering an
effective message in pharmaceutical industry is different from usual steps in
marketing communication. Usually according to general marketing terms, the
message should get Attention at first, hold Interest, arouse Desire, and then
obtain Action. But in pharmaceutical marketing communication the D for
Desire should be replaced with D for Decision. This means that the massage
must get Attention at first, hold Interest, and facilitate Decision making
process. The ultimate step is action which is prescribing medicines to the
patients. They said that the attention is grabbed in pharmaceutical
marketing through starting the discussion with a real life situation. This
situation can be then related to the profile of the product. Tools that are used
for getting attention usually have attractive visual on the front page, with a
caption, which serves the purpose by getting the attention of the doctors.
The decision process is facilitated through answering the queries of the
doctor. During the communication process the marketer needs to discuss
with the doctor about the efficacy, safety, and comparative data with
reference to other treatment options, price and availability of a product so
that the doctor is convinced. This type of discussion will facilitate the action
process. If the doctors are convinced about the product then they will
prescribe the product to the patients.
They also stated that there is no winning formula for pharmaceutical
promotion & Communication. What a marketer needs to do is to understand
the context and based on that design a mix of communication tools that will
work best for that given scenario. Developing a communication mix is a
complex task because a marketer needs toidentify the target audience,
determine the communication objectives, design a message, choosemethod
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of delivery, and collect feedback. Marketers need to use these tools in a way
so that there is synergy between all these tools. They have to ensure that
each used tools add value to the previous tools.

In an article titled at Targeting consumers-Connecting online it was

published that based on a research the researchers found out that majority
of people turn to the web first when looking for health information. This is not
just at some point of enquiry. Many patients search over the web at first
during their health information enquiry process. That means about 57% of
the online population turns to the internet before talking to their doctor, or
relatives. In that research it was also observed that Physicians are also
increasingly going online. Whether looking for the latest research or
treatment information, 86% of medical professionals read journals online,
and another 80% use reference publications on the internet, according to
Kantar Medias 2011 MARS Physician Sources & Interactions Study. As both
the physicians and the patients are increasingly going over the online for
information, this poses a great opportunity for the pharmaceutical companies
to explore the digital marketing opportunities.

Liz Murray, Multi-Channel Director, Quintiles, EMEA Matthew

McCarty in an article stated that the key of understanding the customers in
pharmaceutical industry is to understand what type of information they
need. The solution of that is blending online and offline engagement together
in a synergistic way to deliver the right information in a manner that works
for the target customers. If the process is implemented correctly then it will
be resulted in a more personalized and productive engagement that delivers
beneficial results on both sides.

Lynda Sears in her article The practice of public relations stated that
when effectively managed, public relations create unique opportunities for
marketers to provide consumers and healthcare professionals with
immediate and thorough drug and healthcare information. The healthcare
public relations market in the United States grew 30% last year and is now
valued at $434 million, with about 76% dedicated to pharmaceuticals and
device and diagnostics. It is not surprising, therefore, that one half, or 51%,
of all brand managers consider public relations to be the most effective
marketing tool in terms of dollars spent, according to a survey con ducted by
9 | Page

M Booth &Associates. Second to public relations is advertising at 44%, with

sales promotion coming in at 21%, followed by new media, 17%.
Pharmaceutical marketers no longer regard public relations as simply
publicity and events it is an immediate medium that can reach thousands.
In an article titled at What does e-detailing entail? How digital marketing is
shaping the pharmaceutical industry it was published that one of the
consequence after introducing E-detailing was a widespread reduction in
sales force numbers. Today, e-detailing remains a welcome solution for
pharmaceutical sales directors looking to connect with physicians in a more
efficient manner, and market access managers looking to enhance the
impact of their value communication strategies. E-detailing in the
pharmaceutical industry is defined as a broad and continually evolving term
describing the use of electronic, interactive media to facilitate sales
presentations to physicians. The term includes everything from targeted
emailing to sample ordering, even live online product presentations. Pharma
firms have realized that if they invest time and resources building strong edetailing strategies, they can ensure that their products are getting in front
of physicians. In the past, a sales rep might have waited hours in a reception
room before being offered a brief window to present a product to a physician.
Now, with e-detailing, pharma firms can establish brand awareness, increase
familiarity, and facilitate sales, using remote marketing that does not always
even require a face-to-face meeting.

3.0 Pharmaceutical industry in Bangladesh

3.1 Industry overview
Pharmaceutical sector is considered as the most developed manufacturing
industry in Bangladesh and the third largest industry in terms of contribution
to governments revenue. Pharma industry contributes about 1% of the total
GDP. Right now there are about 250 licensed pharmaceutical manufacturers
in the country. But right now a little over 100 companies are in operation.
The industry is highly concentrated as top 20 companies produce 85% of the
revenue. According to IMS data, the retail market size is estimated to be
around BDT 84 billion as on 2011.
Pharmaceutical companies in Bangladesh focus primarily on branded generic
final formulations where they mostly use imported Active Pharmaceuticals
Ingredient. Branded generics are basically a category of drugs, including
prescription products, that are either novel dosage forms of off-patent
products produced by a manufacturer who is not the creator of the molecule,
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or a molecule copy
from an off-patent product with a trade name.
Approximately about 85% of the drugs sold in Bangladesh are generics and
rest of the parts are patented drugs. Right now Branded generic drugs
represent about 25% on average of worldwide pharmaceuticals sales.
Currently pharmaceutical companies in Bangladesh are manufacturing about
450 generic drugs for 5,300 registered brands which have 8,300 different
forms of dosages and strengths which include a wide range of products from
anti ulcerants, flouroquinolones, anti-rheumatic non-steroid drugs, nonnarcotic analgesics, antihistamines, and oralanti-diabetic drugs. In this
industry domestic manufacturers account for 97% of the drug sales in the
local market while the remaining 3% are imported. Here the imported drugs
include essential live saving drugs and other high quality drugs. In the future
there are chances that this ratio will further increase in favor of the local
production as some of the big players are poised to manufacture these high
quality drugs in-house in the future.
It was stated earlier on the report that the size of the retail market reached
BDT 84.0 billion as on 2011 based on IMS report. That report further
mentioned that, retail sales in the domestic market achieved 23.6% growth
in 2011 following 23.8% and 16.8% growth in 2010 and 2009 respectively.
This high growth in the last three years (78.8% cumulative and 21.4% CAGR)
meant that the Bangladesh Pharmaceutical market doubled in the past four
years. Retail market of the country also crossed USD 1.0 billion in size in
2011. Right now pharma industry is one of the fastest growing sectors in the
country with an annual average growth rate of 17.2% over the last five years
and 13.1% over the last decade.

3.2 Current market share in the industry

According to the IMS report for the fourth quarter 2011, Square
Pharmaceuticals (DSE: SQURPHARMA) holds the top market share in the
retail market - 18.7%, followed by Incepta Pharmaceuticals (INCEPTA) - 9.3%,
Beximco Pharmaceuticals (DSE: BXPHARMA) - 8.8%, OpsoninPharma
(OPSONIN) - 5.1% and Renata (DSE: RENATA) - 4.9%. In this industry top five
companies held 46.8% market share in 2011, slightly more than their 46.2%
market holding in 2010 - indicating cumulative revenue growth in excess of

11 | P a g e

the sector growth. Among the top five pharma companies, three are listed in
DSE Square, Beximco and Renata.

M
ar
ke

Markettshare
15.60
10
8
8.70
52.70
4.50
.5
4
4.00
.4
.1
.1
0%
0%
0%
%
%
%
sh
0.00%
ar
Squaree

Figure: Market share of the pharmaceutical industry in Bangladesh (Source IMS

Health)

Of the total pharmaceutical market, local companies are enjoying a market

share reaching around 90%, while the multinationals are having a 10% share
of the medicine-market.
Navana Pharmaceuticals Ltd has been in operation since 1986. However, its market
presence and marketing strength is feeble compared to its peers. The Company has
a total of 1,109 marketing personnel employed all over Bangladesh. About 20 to
100 sales people are employed in different regions with about 267 people employed
only in Dhaka. However, this number is relatively small compared to the
competitors. In spite of this, the Company has been having a steady growth of Net
Sales for the last 5 years, growing at a CAGR of 11.5% and stood at BDT 1,060.2
million in 2010.

3.3 Key success factors for the industry:

There are several factors that are needed for a pharmaceutical company in
order to be sustainable in the industry. These factors are listed in below:
1. R&D: In order to be successful in the industry pharma companies need
to invest huge sum of money in their R&D activities. Involving in R&D
activities will ensure that they are able to bring new, innovative drugs
in the market. Although many new medical and chemical substances
might be discovered from time to time, only a few of them proves to be
commercially and therapeutically viable. Also many of the medicines
might not show sustained performance in medical trials. So R&D
department must focus on improvement in output quantity and quality.
Because of these reasons companies like Navana Pharmaceuticals,
GSK, and Pfizer have huge R&D department in their respective
organization.
2. Patent protection: Patent protection is indispensable part for a
pharmaceutical manufacturer to gain maximum returns on R&D
investment. In recent times there have been some instances of one
pharmaceutical company claiming the formula rights to the products of
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another, leading to intransigence within the industry. Patent

infringement prosecution team needs to be diligent so that on one can
break the law.
3. Quality: Quality is another important factor that is needed in order to
become successful in the pharma industry. In this industry a particular
type of product is produced by several pharma companies. So to
become stand out in the market companies need to make sure that
they provide the best quality of products to the customers.
4. Price: in Bangladeshi pharmaceutical industry price control is another
important factor to become successful in the market. Here many
pharma companies produce same drugs. So if the price of that product
is a bit of excessive compared to the competitors one then consumer
will not consider buying that product. So because of this reason
pharma companies need to make sure that price of product is in the
similar kind of range like the competitors price.

3.4 Porters five forces for pharmaceutical industry

Entry barrier- the entry barrier in pharmaceutical industry is high. In this
industry for start-up operation huge investment is needed because
companies need to set up huge infrastructure for their business operations.
Only a few numbers of companies can afford that. At the same time,
sometimes companies do not prefer to enter industry thinking that there are
chances of no return on high investment.

Entry
barrierHigh

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Buyer
bargaini
ng
powerModerat

Threat of
substitut
e
products
-High

Supplier
bargaini
ng
power-

Rivalry
among
competit
ors- Very
high

Buyer bargaining power- Buyer bargaining power in pharma industry is

moderate. First of all, if physicians suggest any medicine to patients then
they have no alternative of that. But as many pharma companies produce
same types of products, patients have many choices in front of them. So the
switching cost is very low which makes the price of the product steady. Again
buying pattern of large organizations like hospitals & other health care
organizations in bulk quantities can create pressure on pharmaceutical
companies to keep prices in check.
Threat of substitute products: In pharma industry the threat of substitute
product is very high. Same type of product can be produced by different
pharma companies. As the patients have wide range of choices in front of
them, the threat of substitute product is very high. Again with the expiration
of many patented products, demands for generic drugs are increasing.
Supplier bargaining power- The supplier bargaining power in this industry is
very low. The main reason is that pharma companies depend upon several
organic chemicals which can be supplied by a large number of suppliers. As a
large number of suppliers are available in the market, they cannot exert any
power on the pharma companies. So the suppliers have very low bargaining
power.
Rivalry among competitors: The rivalry among the pharma companies is very
high. This is because due to the fact that, there are large numbers of players
in the Bangladesh pharmaceutical industry. As there are large numbers of
players in the market, the competition among them is very much
competitive.

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4.0 Company overview

4.1 Navana Pharmaceuticals Limited
Navana Pharmaceuticals Ltd. is a proud member of Islam Group, the oldest business
conglomerate in Bangladesh. Its Founder Chairman , AlhajJahurulIslam, the
unparallel business icon in the history of Bangladesh, entered into the healthcare
industry with the establishment of NavanaPharmaceuticalsLtd. in 1992. have been
serving people through supplying quality medicines for more than 2 decades not
only in the domestic market but also in the overseas countries. Navana complies
with the requirements of WHO cGMP to ensure quality. Navanas management
system has been established based on the principles of Quality Management
System (QMS) as per ISO 9000:2008. Accordingly it strives for continual
development of our processes for better service and quality. Navana
Pharmaceuticals Limited (hereinafter referred to as NPL or the Company),
incorporated in 1986, is a company under the Islam Group, founded by Late Mr.
Jahurul Islam. Currently the group is headed by Mr. Manzurul Islam, Chairman of the
group. Islam Group has expanded its wing in sectors likeconstruction, real estate,
pharmaceuticals, poultry & agro services sectors. NPL is equipped to produce both
human and animal medicines. In the human section, currently it has about 103
medicines under65 generic classes. Production facility of the Company is situated at
Rupshi, Narayanganj.
In parallel to continued success in the host country (Bangladesh) NavanaPharmahas
started serving overseas partners with our quality products in 2003. With their
relentless commitment to quality and service Navana has now become one of the
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leading medicine suppliers from Bangladesh. They have dedicated team with
extensive experience, exposure and expertise in the management of global
regulatory requirements, international sales operation and foreign trade operation in
order to gain overseas customer satisfaction by ensuring global compliances. They
already have presence in Nepal, Sri Lanka, Myanmar etc. and aggressive
developments are in progress for forming new partnerships.
The Company has a moderately diversified product range, at the generic level. The
Company manufactures both human and animal medicines. The Company has
about 109 products divided into 8 (eight) therapeutic classes and 64 (sixty-four)
generic medicine classes. Recently, the Company has introduced the Ophthalmic
Section. However, the major products of the Company (Antibiotic, Antiulcerant, and
Vitamins) have relatively lower value and also markets for these medicines are
fragmented in nature. As a result, in terms of product range, the Company does not
have competitive advantage over its rivals.

4.2 Navana Pharmaceuticals Mission& Vision

Navana Pharmaceuticals main mission is to develop the company as the
employer of the choice in Bangladesh.It wants to discover, develop and
successfully market innovative products to prevent and cure diseases, to
ease suffering and to enhance the quality of life.
Vision of Navana Pharmaceuticals Ltd. is to become a leading player in the global
pharmaceutical industry.

4.3 Major competitors:

The major competitors of Navana Pharmaceuticals are listed in below:
1.
2.
3.
4.
5.

Square
Incepta
Beximco
OpsoninPharma
Renata

4.4Marketing and sales department of Navana Pharmaceuticals

Ltd:
During my internship period I was attached into the Marketing and sales
department of this Navana Pharmaceuticals Ltd. This division of the company
are responsible for various types of activities. The major responsibilities are
included in below:
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1.
2.
3.
4.
5.
6.

Sales force excellence activities.

Sales operation activities.
Trainee capability building activity.
Customer relationship management and digital marketing activities.
Market research
Sample management & Pro material activities.

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4.5

SWOT analysis of Navana Pharmaceuticals Ltd:

Strength

Weakness

Strong brand image

Wide range of
products
Very efficient & wide
distribution channel

Narrow range product

portfolio for children
All types of product
are not available in all
over the country
Premium price
Low number of field

Opportunity

Threat

Leverage its core

business expertise and
resources to bring
innovative products in
the market
Poor R&D facilities

Introduction of new
generic products in
the market

Increasing number of
Patent expiration

4.6Communication mix
The different types of marketing communications an organization uses
compose its promotion or communication mix, which consists of advertising,
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sales promotions, public relations and publicity, personal selling, and direct
marketing.
Advertising
Advertising involves paying to disseminate a message that identifies a
brand (product or service) or an organization being promoted to many
people at one time. The typical media that organizations utilize for
advertising of course include television, magazines, newspapers, the
Internet, direct mail, and radio. As we explained, businesses are also
advertising on social media such as Facebook, blogs, Twitter, and mobile
devices.
Personal selling
This mix is an interactive, paid approach to marketing that involves a buyer
and a seller. The interaction between the two parties can occur in person, by
telephone, or via another technology. Whatever medium is used, developing
a relationship with the buyer is usually something the seller desires.
Public relations
Public relation (PR) helps improve and promote an organizations image and
products by putting a positive spin on news stories. Public relations materials
include press releases, publicity, product placement, and sponsorships.
Companies also use PR to promote products and to supplement their sales
efforts. PR is often perceived as more neutral and objective than other forms
of promotion because much of the information is tailored to sound as if it has
been created by an organization independent of the seller. Many companies
have internal PR departments or hire PR firms to find and create public
relations opportunities for them.
Sales promotion
This medium consist of other types of promotionscoupons, contests,
games, rebates, mail-in offers, and so forththat are not included as part of
another component of the communication mix. Sales promotions are often
developed to get customers and potential customers to take action quickly,
make larger purchases, and make repeat purchases. Many stores now place
coupons next to products to encourage consumers to select a particular
brand and products.
Direct marketing
Direct marketing involves delivering personalized promotional materials
directly to individual consumers. It provides an interactive approach for
organizations to reach consumers in hopes of getting consumers to take
19 | P a g e

action. Materials may be delivered via mail, catalogs, Internet, e-mail,

telephone, or direct-response advertising. Several benefits of direct
marketing include the ability to target a specific set of customers, measure
the return on investment (ROI), and test different strategies before
implementing to all targeted consumers. However, direct marketing is very
intrusive and many consumers may ignore attempts to reach them.

4.7Communication mix of Navana Pharmaceuticals Ltd:

Like other pharmaceutical companies Navana Pharmaceuticals also have
their own promotional strategies to promote their product in the market.
Most of these strategies are the below the line communication activities. In
the below section their communication mixes are discussed in details:
1. Sales promotion:For promoting products, Navana PharmaceuticalsLtd
have its own sale promotion strategy. But like other companies it does
not take any trade promotional activities. The company does not
provide any incentives or discounts to the druggists for selling their
products. But sometimes the company offers free sampling of products
to the physicians. But the number is very low compared to other
pharma companies.
2. Public relation activities:Navana Pharmaceuticals Ltd is involved
with various types of public relation activities for reaching out to the
physicians and general people. Sometimes the company arrange
different types of awareness program through doctor. But the company
cannot participate directly in that type of programs. Rather they
provide logistics support for arranging these type of programs.
3. Sponsorship
programs:The
Company
sometimes
sponsors
physicians attending in different type of seminar programs in outside
of the country. But before doing that, sponsored physicians have to
meet certain criteria. Such as the field of sponsored physician have to
be related with Navana PharmaceuticalsLtd. Also these sponsored
physicians have to actively participate in seminar programs.
4. Detailing:
Among
different
promotional
strategy
Navana
PharmaceuticalsLtd prefer detailing most. Because by doing detailing,
the company can directly communicate with the physicians. Right now
the company introduced E-detailing for the first time in Bangladesh.
Here sales associates from the company visit to the physicians and
conduct presentation session through iPad/Tab if the physician have
time for that. Via E-detailing Navana Pharmaceuticals shows different
types of video illustration. Watching this type of video illustration,
20 | P a g e

physicians will get idea about how the product will work. This is very
much
helpful
for
understanding
the
benefits
of
Navana
Pharmaceuticals products for physicians.

5.0 Analysis and Findings

a. Frequency distribution
Statistics
Sales
Promotion

Public Relation Sponsorship

Detailing Direct
Marketing

Valid

52

52

52

52

52

Missing

Mean

3.15

2.42

2.73

2.65

4.04

Median

3.00

2.00

2.00

3.00

4.00

Mode

Std. Deviation

1.304

1.177

1.497

1.341

1.137

Variance

1.701

1.386

2.240

1.799

1.293

Here for finding out the preferred promotional strategies of the physicians we
conducted a frequency distribution. After doing that, it was observed that
among the five different promotional strategies public relation activities have
the lowest mean value which is 2.42. This means that physicians prefer this
promotional strategy among the five strategies. Detailing have the second
lowest mean value and so on.

b. Reliability test
Case Processing Summary
N

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Cases

Valid

52

100.0

Excludeda

.0

Total

52

100.0

a. List wise deletion based on all variables in the procedure.

Reliability Statistics
Cronbach's Alpha

N of Items

.727

15

Here the value of alpha coefficient is .727 which is just above the .70. This
makes the scale reliable.

c. Multiple regression
Model Summary
Model

R Square

Adjusted R Square

Std. Error of the

Estimate

.403a

.163

.072

.952

a. Predictors: (Constant), E Detailing, Broadcasting, Face to Face, Web Portal, Call

Center

The multiple correlation coefficient (R) is .403 which denotes that there is a
medium relationship. The coefficient of multiple determination (R 2) is .163.
That means 16.3% of the variation in dependent variables is accounted for
through the combined linear effects of the independent variable.

Coefficientsa
Model

(Constant)

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Unstandardized
Coefficients

Standardized
Coefficients

Std. Error

Beta

3.209

.648

Sig.

4.954

.000

Face to Face

.311

.129

.340

2.411

.020

Broadcasting

-.088

.139

-.095

-.636

.528

Call Center

-.001

.131

-.002

-.011

.992

Web Portal

-.180

.129

-.216

-1.395

.170

E Detailing

.038

.122

.047

.312

.756

a. Dependent Variable: Level of Communication channel

The level of communication channel was found to be independent variable

with a significant impact on face to face channel because the p value (Sig)
is .020 which is less than .05. The other variables such as broadcasting, call
center, web portal, E-detailing do not have any impact on communication
channel since their p values are greater than .05.
d. Factor analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

Bartlett's Test of Sphericity

.545

Approx. Chi-Square

84.689

df

36

Sig.

.000

The KMO value is .545 which is greater than the acceptable value (.5). And
Bartletts test is highly significant (p<.001). So we are confident that factor
analysis is appropriate for this data.

Total Variance Explained

Component Initial Eigenvalues

Rotation Sums of Squared Loadings

Total

% of
Variance

Cumulative
%

Total

% of
Variance

Cumulative
%

2.443

27.143

27.143

1.669

18.543

18.543

1.453

16.147

43.290

1.620

17.996

36.540

1.266

14.062

57.352

1.451

16.123

52.663

23 | P a g e

1.026

11.395

68.748

.918

10.201

78.949

.774

8.603

87.552

.431

4.793

92.345

.378

4.204

96.549

.311

3.451

100.000

1.448

16.085

68.748

Extraction Method: Principal Component Analysis.

In this table the Eigen value for the factors are decreasing in the order of
magnitude as going from factor 1 to factor or component 10. Eigen value for
a factor indicates the total variance attributed to the factor. The total
variance accounted for by all 9 factors is 9 which is equal to the number of
variables. The Eigen value of factor 1, 2, 3 and 4 are 2.443, 1.453, 1.226 and
1.026 respectively which is more than the required level of 1.
From the above data we can say that 9 variables are now reduced to four
factors contributing 68.748% of the total variance, which defines that these
for factors do have more variance considering the required level of 60%
cumulative variance.

24 | P a g e

With the help of Scree plot researcher can just conclude that four factors are
reduced with Eigen value greater than 1.

Rotated Component Matrixa

Component
1
Video illustration

.859

Information

.694

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Product Sampling

.755

Associate_Suggestion

.459

.745

Public_Relation_Pharma

.585

.440

Brand Image

.843

Brochure

-.707

Referral from expert physicians

.747

Sponsorship Program

.717

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.

From the rotated component matrix we can say that factor 1 has deep
relationship with variable video illustration, information and associates
suggestion. But as the factor associates suggestion is also included in factor
2 and it has greater value. So we can consider that associates suggestion is
a variable of factor 2. Factor 2 also includes product sampling, public
relation. Factor 3 includes brand image and product brochure. Factor 4
includes public relation, referral from expert physicians and sponsorship
programs. But the value of public relation in factor 4 is less than compared to
factor 2. So we are not considering public relation in factor 4.
Here we can name the factor 1 as information factor, factor 2 as
promotional factors, factor 3 as image factor and factor 4 as
sponsorship factor. Factor 1 is named after information factor because
both video illustration and information provided to the physicians provide
adequate information about the products to the doctor. Company those have
good brand image will make their promotional material such as product
brochure attractive so that physicians become interested in that company.
Thats why factor 3 is named after image factor. If any physicians attend in a
seminar program then they will be able to disseminate knowledge to the
fellow physicians. So if pharmaceutical company arrange this type of seminar
programs then other physicians will get to know about the pharmaceutical
companies or product. Thats why sponsorship program and referral from the
physicians are named after sponsorship factors.
Component Transformation Matrix
Component
26 | P a g e

.585

.626

-.025

.515

-.072

.085

.993

.027

-.804

.389

-.103

.437

.070

-.671

.043

.737

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

27 | P a g e

6.0 Recommendation for future improvement:

In this report for future improvement of the marketing communication
activities of Navana Pharmaceuticals Limited some recommendations have
been provided. These recommendations are discussed in details in the below
section.
a. From the SWOT analysis we have found out that one of the weakest
points of Navana Pharmaceuticals Ltd is that the company has a few
numbers of sales associates compared to other pharmaceutical
companies in Bangladesh. So in order to reach out to large number of
physicians the company needs to increase its sales force.
b. Among different promotional strategies of pharmaceutical industry,
Navana Pharmaceuticals Ltd prefers detailing with the physicians most.
But from the analysis part it was observed that among the five
strategies physicians prefer public relation activities most. Inspire of
having involvement in the PR activities, the company needs to focus
more on this type of activities. Involving in PR activities will help the
company to create brand awareness among the Physicians and general
people. It will also help the company to enhance its corporate image.
c. From the analysis part it was found that among five different types
promotional strategies direct marketing channels such as mail, call, email was least preferred by the physicians. So right now Navana
Pharmaceuticals Ltd should not focus on this strategy.
d. In the analysis section factor analysis was conducted to group several
factors into smaller number of factors. The main intention was to bring
several factors under a single umbrella to understand their effects on
the physicians. From this analysis following suggestions are provided
1. After doing the factor analysis, three final factors were found out.
Those factors are information factor, promotional factors, image
factor and sponsorship factor. So the company need to make sure
that variable under this factor are synchronized with each other. For
example, the company always need to create its product brochure
in a way that will communicate the superior brand image of the
company.
e. In many countries digital pharma marketing is getting preference from
the physicians. But from the analysis part it was observed that right
now physicians from this country do not prefer to be communicated
through online. As the physicians prefer face to face communication
most, Navana Pharmaceuticals should only focus to that.

28 | P a g e

29 | P a g e

7.0 Conclusion
The conclusion of this report can be drawn by saying that face to face
communication channel is the most preferred way of communication among
the physicians in Bangladesh pharmaceutical industry. Physicians in our
country are still not ready for using online tools like social networking sites,
e-mail and other web portals like other modern country. Also among the
different promotional strategies physicians prefer public relation activities.
By doing so, pharma companies can create superior image in the mind of
public and physicians. From the Navana Pharmaceuticals Limited
perspective, the company is preferring face to face communication channel
which is appropriate based on the physicians choice of communication and
the promotional strategy that company follows is also preferred by them. But
it is suggested that the company needs to involve more in public relation
activities. By doing that, Navana Pharmaceuticals Ltd will be able to
communicate to a large extent of people and its superior value with them.

30 | P a g e

Bibliography
Liz Murray, Multi-Channel Director, Quintiles: Customer-Centric Multi-Channel
Pharma Marketing
Prof. BognaPilarczyk, Ph.D.: Marketing communications process on the
pharmaceutical market
John Mack (Oct 2006): The brand marketing mix
Rizwan Raheem Ahmed, Vishnu Parmar, Nawaz Ahmad, Usman Ali Warraich,
ImamuddinKhoso (2014): The Communication Mix in Pharmaceutical
Marketing
Pharmaceutical Marketing: Targeting consumers. Connecting online. Whats
in store for patients?
ACI Limited: Influential factors on prescription preparation by doctors: a
survey conducted on practicing doctors and medical representatives in
Bangladesh
Lynda Sears: The practice of public relations
EBL Securities Ltd: Pharmaceutical Sector Overview
Understanding Below the line communication activities in Bangladesh
Pharmaceutical Industry

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Appendix
Questionnaire
Good Afternoon. My name is DattaSreeRajib Kumar. I am doing my MBA from
IBA, DU. Currently I am working as an intern in Navana Pharmaceuticals Ltd.
Here in Navana Pharmaceuticals Ltd I have taken a project titled at
Identifying factors that affect marketing communication of the
pharmaceutical company in Bangladesh. This project is a part of mine MBA

degree and this questionnaire will be used completely for educational

purpose.
1. Name:
2. Gender:

Male

Female

3. Area of specialization:
4. You work for:
Public Institution

Private Institution

Both

5. Between your institution and chamber which one you prefer most for
meeting with the sales associates?
Institution
Chamber Both
6. On an average daily how many sales associates visit to you?
1 to 4

5 to 8

9 to 12

More than 12

7. Rank the following promotional strategy of pharmaceutical company

according to your preference.

32 | P a g e

8. Put tick on the following medium of communications according to your

preference from which you want to get information from the
pharmaceutical industry.
a. Face to face
Not at all preferable
Not preferable
Neutral
Preferable
Highly preferable
b. Broadcast medium
Not at all preferable

Not preferable

Neutral

Preferable

Highly preferable
c. Call center
Not at all preferable

Not preferable

Neutral

Preferable

Highly preferable
d. Web portal i.e. Social networks, video conferencing, mail
Not at all preferable
Not preferable
Neutral
Preferable
Highly preferable
e. E-detailing through iPad/tab
Not at all preferable
Not preferable

Neutral

Preferable

Highly preferable

9. Communication medium of the company are helpful for me to get information

about the products

Highly disagree

______:______:______:______:______

Highly agree
10.
I agree that pharmaceutical companies should use product
sampling as a part of their promotional strategy.
Highly disagree

______:______:______:______:______

Highly agree
11.
I like a pharmaceutical company that involves with public relation
activities to reach patients and physicians.
Highly disagree
agree

______:______:______:______:______

Highly

12.
Sales associates suggestion of product has an impact on my
prescribing that particular brand of product.
Highly disagree
agree
33 | P a g e

______:______:______:______:______

Highly

13.
me.

Pharmaceutical product from reputed organization matters to

Highly disagree
agree

______:______:______:______:______Highly

14.
I would prefer to be connected with the pharmaceutical
companies through online besides offline engagement.
Highly preferable

______:______:______:______:______

Not at all

preferable
15.

Opinion about pharmaceutical product from experienced

physicians matters to me.

Highly disagree ______:______:______:______:______ Highly agree
16.
I would like to attend sponsorship programs arranged by a
pharmaceutical company.
Highly agree ______:______:______:______:______

Highly

disagree
17.
Video illustration of pharmaceutical product helps me to
recommend the product to the patients.
Highly agree ______:______:______:______:______ Highly
18.

disagree
Sales associates provide adequate information to me about the

products.
Highly agree

______:______:______:______:______

Highly

disagree
19.
I would like to keep a product brochure from sales associates
whenever they discuss with me about products.
Highly agree ______:______:______:______:______ Highly
20.

disagree
I prefer E-detailing through tab while communicating with the

sales associates.
Highly disagree______:______:______:______:______
agree

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Highly

35 | P a g e