History Repaired)

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TABLE OF CONTENTS

Marketing

…………………………………………………………………………………. 01

Marketing process

………………………………………………………………………………… 01

Novartis pharmaceutical …………………………………………………………………………………

02

Business Objective

………………………………………………………………………………… 02

Hierarchy

………………………………………………………………………………… 03

Epilepsy (the disease) …………………………………………………………………………………

06

Business Scope …………………………………………………………………………………

08

External Analysis …………………………………………………………………………………

010

Market Analysis …………………………………………………………………………………

012

Environmental Analysis …………………………………………………………………………………

017

Internal Analysis …………………………………………………………………………………

020

SWOT Analysis …………………………………………………………………………………

024

MKT Positioning and Segmentation ………………………………………………………………………………..

029

Marketing Mix

………………………………………………………………………………… 034

Pricing Plan

………………………………………………………………………………… 035

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Production Plan …………………………………………………………………………………

037

Promotional Plan …………………………………………………………………………………

039

Distribution Strategy

………………………………………………………………………………… 042

MARKETING “There are many definitions of marketing. The better definitions are focused upon customer orientation and satisfaction of customer needs.” “Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others” KOTLER “Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating,

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communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

MARKETING PROCESS It is a process which consists of four steps enabling the marketers to perform their strategies according to their plans. These steps are: ANALYZING MARKET SITUATION It is based on information and research including SWOT and PEST analysis of market DEVELOPING MARKETING ANALYZING IMPLEMENTATION MARKETING MAEKETING CONTROLMIX SITUATION

DEVELOPING MARKETING MIX It includes development of 4P’s namely Product Price Place Promotion MARKETING IMPLEMENTATION It involves turning plans into actions. MARKETING CONTROL Being the last step it identifies the gap between planned And actual goals

History

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Novartis pharmaceutical is established in 1996.The history of Novartis traces back to three companies ➢ Geigy Pharmaceutical ➢ Ciba pharmaceutical ➢ Sandoz pharmaceutical Geigy whose origin goes back to the middle of the 18th century. CIBA founded around 1859and Sandoz established in 1886 In1970 CIBA and Giegy merged .the newly created CIBA-Geigy Ltd and Sandoz continued to follow separate path for two and half decades In1996 Sandoz and CIBA-Geigy joined to form Novartis pharmaceutical.

BUSINESS OBJECTIVES MISSION STATEMENT OF NOVARTIS “To bring value to patients and customers and have a positive impact on people's lives and to discover, develop and successfully market innovative products to cure diseases and enhance the quality of life.”

VISION STATEMENT “To lead our industry through continuous innovation. The long term success is founded on meeting the expectations of all our stakeholders - patients, healthcare providers, our people, and the community.”

CORE VALUES At Novartis shared values and behaviors are known as 'Eight Commandments'.

➢ Leadership ➢ Empowerment/accountability ➢ Customer/quality focus ➢ Competence

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➢ ➢ ➢ ➢

Speed/action/simplicity/initiative Candor/trust/Integrity Communication Commitment/self c discipline.

CORE COMPETENCIES 1. 2. 3. 4. 5. 6.

Brand Image Goodwill Credibility Quality of life State-of-the-art-technology Distribution Network

STRATEGIC INTENT “Novartis strives to be where GSK stands right now in the pharmaceutical industry of Pakistan”

GOALS AND OBJECTIVES Our goals are based on the following core values: EXTERNAL FOCUS Our focus is decidedly external: •

Customers

•

Markets

•

Competitors

•

Technologies

INNOVATION Innovation is the driving force in our company. It enables us to create new, cutting-edge: •

Product,

•

Processes, and

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•

Technologies

PEOPLE We know that people make the difference. This means that we: •

treat each other with respect,

•

support each other's efforts, and

Work at delivering superior results. PERFORMANCE We strive to achieve world-class results, based on ambitious targets, and aim at the highest performance standards. We achieve this through: •

Initiative,

•

Decisiveness,

•

Perseverance, and

•

Flexibility

Head Office Novartis International AG CH-4002 Basel Switzerland Tel: +41 61 324 11 11 Fax: +41 61 324 80 01

Sector Head Farhan Baider Malik 15 West Wharf Road, Karachi 74000, Sindh, Pakistan Phone: 9221-2313389 / 2316286 / 2313387 / 2313390 Fax: 9221-2310241

Head office in Pakistan Novartis Pharma (Pakistan) LTD. 15 West Wharf Road, Karachi 74000, Sindh, Pakistan Phone: 9221-2313389 / 2316286 / 2313387 / 2313390 Fax: 9221-2310241

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Managers Khalid Ashraf

(National Sales Manager)

Moiz Haider

(Brand Manager)

Zubair Ahmed

(Training Manager)

Ali Imran

(Human Resource Manager)

Moin Khan

(Factory head)

Regional Sales Managers Tuyyab Nazir Mujeeb Alam M Shakeel Arshad Iqbal

Lahore Multan Karachi Islamabad

Zonal Sales Managers

Muhammad Zeeshan Altaf

Shahzad Jamil Ghazanfar Aziz Ghauri Qamar Zaman

M. Sohail Aslam

Gujranwala

Faisalabad

Abaid ur Rehman

M. Ejaz Qamer Shahzad Ali

Sukhar

Lahore

Islamabad Naveed Basheer Ikram Ulah Khan M.Usman

Multan

Imtiaz Soomro Abdul Hameed

Karachi Faizan Ur Rehman

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Syed Ather Hussain Asif Ali Khan

Naveed Farooque

Peshawar Hyderabad Jawaid Jabbar Syed Shoaib Hussain

Noorullah Jan Inayat Ullah Khan Afridi

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NOVARTIS PHARMA PAKISTAN LTD. Epilepsy - the Disease:

Definition: An epileptic seizure is defined as paroxysmal discharge of cerebral neurons, sufficient to cause clinically detectable events that are apparent to the subject. • • • •

Chronic Neurological disorder characterized by recurrent seizures Epilepsy is a social stigma in Pakistan Spiritual treatments are quite common Treatment gap is quite high-especially in rural population (up to 80 %)

Causes of Epilepsy: In 70% of Epilepsies, the cause is unknown. Epilepsy is a disorder in which seizures appear as a symptom and draws our attention to the fact for some reason the nervous system is reacting to an underline physical or chemical disorder. The following could be the causative factors: • •

Head Traumas Biochemical imbalances

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• • • • • • • • •

High fever Birth trauma Trauma Degenerative brain diseases Imbalances in Menstrual Cycle Increased Stress Deprivation in sleep Have had active hyperventilation, hyperthermia Meningitis

Demographics: •

• • • •

2.5 million In USA---50 mio. Worldwide Pakistan = 1.5 % Age: Young children & Young Adults Gender : More in males 70 % epileptics are in Developing Countries

World: Epilepsy is the commonest paroxysmal neurological disorder. • • • •

It afflicts more than 50 million of the people in the world 10% among these have fits as frequently as more than once a month. According to some estimates 5% people suffer from one fit once in a lifetime 0.5 to 1.0% people of the country’s population suffer from epileptic seizures

Pakistan: •

According to National Health Survey of Pakistan and report of Pakistan Medical Research Council (PMRC) In Pakistan the prevalence of epilepsy has been estimated to be nearly 1.5 % of the general (rural and urban) population. This means there are about 1.5 Mio epileptics in Pakistan, but only about 10% seek medical treatment. This is largely because of ignorance amongst the masses, particularly in rural areas.

Diagnosis: • •

Eye witness account EEG (Electroencephalography)

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• •

MRI (Magnetic Resonance Imaging) Blood Tests

Treatment: • • •

To advance and disseminate knowledge about epilepsy To promote research, education and training To improve services and care for patients, especially by prevention, diagnosis and treatment • Epileptic patients generally see GPs for the management of mild to moderate epilepsy. Specialist aims to minimize the seizures through sedatives and mainly cannot figure out the causes of the epileptic patient

BUSINESS SCOPE Products manufactured and consumed locally - Home Market.

The needs being fulfilled are: Target Customers’ Needs FOCUS

CUSTOMER TYPE

CUSTOMER NEEDS

INITIAL FOCUS

Neurologists

Professional services, scientific updates, speaker opportunities, journals, local conferences sponsorships, international congresses & seniors’ visits.

Psychiatrists

Professional services, scientific updates, speaker opportunities, international congresses, journals & senior’s visits

SECONDARY FOCUS

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GPs(general practioner)

Experience educational recognition visits.

programs, workshops, and regular

WHAT NEEDS? Novartis Pharma Pakistan Ltd provides value to patients and customers by providing positive impact on people's lives and to discover develop and successfully market products to cure diseases and enhance the quality of life. Novartis Neuroscience is strategically aimed towards complying to the needs of its customers and consumers.

WHO’S NEEDS? This is the business scope for the segment targeted for Tegral, that seek same benefits or sharing same needs and wants. • • • • • • •

• All segments of patients with paroxysmal discharge All patients with simple/complex partial or secondary generalized seizures All patients with onset of seizures after the age of 30 years Any patient with Todd’s paralysis lasting more than 6 hours Any patient with neurological deficit in the intricate period Any febrile illness with seizures If there is history of changing seizure types All cases of resistant/intractable seizures

Treatment gaps are different in rural and urban areas: 25% are treated in rural areas 50% are treated in urban areas Manufacturing of drugs locally to sell at affordable & profitable price in a poverty riddled country like Pakistan.

Added Value The company’s core business comes from pharmaceuticals, which is around Rs 4.0 Bio. The CNS Business Unit contributes about 20% of this business and is the leading Neuroscience

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Company, not only globally, but also in Pakistan. In Neuroscience portfolio of Novartis, Tegral is the leading product and is also the market leader in epilepsy, with about 30%market share. The segment is offering highly innovative and effective drugs with the help of R&D, manufactured locally eliminating import duty costs and in turn cheaper drugs for the population of Pakistan.

With the research and development imported from the sister companies worldwide, CNS department has added value to its line of products. Negotiating with the treatment gap that comprises of 75% untreated patients in rural areas, CNS department has accommodated Epilepsy camps to help the overcome the battle against this disease. Free consultations and creating awareness through specialized marketing on posters, pamphlet and free camps.

Future Directions • • •

Building technological and R&D facilities in Pakistan to fight neurological disorders faced by their patients. Developing programs and workshops for rural society that are not aware of this disease and Is prone seeking guidance from no specialized institutions?

• Novartis does not deal with :

• Importing or development of Germicides or any such botanical or farming products for the agricultural & farming sector of Pakistan.

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External Analysis CUSTOMER ANALYSIS Quality & Price Non-Price Attributes Affecting Customer Choice

Tegral

Epival

Topamax

Rivotril

Seizunil

% Weight

Product - Related 1. Effectiveness

0.25

3.25

1.20

0.25

0.34

0.65

2. Safety

0.15

0.60

0.76

0.50

0.10

0.20

3. Availability

0.20

1.20

0.20

0.10

1.90

0.14

4. Convenience of usage

0.15

1.05

1.90

0.30

0.67

0.54

5. Marketing Effectiveness

0.25

1.65

1.85

0.60

0.65

0.15

1. Product Information

0.20

0.66

0.50

0.10

0.30

0.06

2. Awareness

0.25

0.55

0.40

0.30

0.70

0.05

3. Seminars

0.15

1.35

1.00

0.15

0.65

0.60

4. Relations with KOLs

0.25

2.00

2.50

0.23

1.65

1.23

5. Clinical Evaluation

0.15

1.20

0.40

0.10

0.10

0.50

Total

1.00

13.51

10.71

2.63

7.06

4.12

Service – Related

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RATING AGAINST CUSTOMER BUYING CRITER

Implications: As the table above shows the overall performance of Tegral is above par and has a competitive advantage. The strong brand image of Tegral implies that its key strength is due to its service related aspects as it is the market leader.

Key Learning: Tegral needs to make improvements in the following areas. • •

Create awareness through Epilepsy Projects, KOL(key opinion leader) Development Program & Awareness camps for Rx Improve distribution and import infrastructures to make Tegral highly available in the Epileptic segment.

Primary Customer Analysis AED Prescriptions per specialty

Tegral Prescriptions per Specialty

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Others 9%

R MOs 16%

Ps ych 22%

IM 15% GP 38%

Implication The largest portion of the primary customer population is comprised of General Practitioners (38%), while IMs constitute the smallest part of the population. Therefore, in order to increase sales turnover, it is advised that Novartis’ Neuroscience’s main focus for Tegral should be the GPs, while maintaining a secondary focus on the Psychiatrists who although comprise only a 22% of the total population, yet, are the top contributors of Anti-epilepsy prescriptions. Thus, Tegral would be encompassing the wider customer base.

THE MARKET ANALYSIS Market Overview: There are about four hundred licensed drug manufacturers in Pakistan which includes about twenty eight multinationals. Pakistan's total drug market is worth 1.5 billion US dollars. The Drug Registration Board of Federal Health Ministry has registered over forty thousand brands representing over fourteen hundred molecules. According to some estimates the value-wise share of the National Pharmaceutical industry in Pakistan's total drug market is about 45%, whereas unit-wise its share has increased to between 70-75%. At the beginning of 2005, the total pharmaceutical market in Pakistan comprising of PKR: 68 billion and growing by 9.2% while at the end of 2004, the total pharmaceutical market was at PKR 53 billion and growing at 8.3% The Overall yearly size and respective growth of the Pharmaceutical Industry;

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YEAR

VALUE in Rupees

Growth (%)

2001

42

5%

2002

47

7%

2003

52

8%

2004

60

8.3%

2005

67

15.8%

2006

79

18 .2%

2007

87

15 %

2008

97

12 .7%

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MAIN MARKET SEGMENTS The prominent segments of the Pharma Sector & their respective shares;

Segment…….0.

2001

2002

2003

2004

2005

2006

2007

2008

Antibiotics

25

22

20

20

19

18

18

15

GIT

20

15

15

14

11

10

8

8

CNS

5

8

10

13

14

15

18

19

Respiratory

5

3

4

3

3

5

5

5

Vaccines

2

5

7

9

9

10

12

12

Vitamins

8

10

10

8

8

10

10

10

Narcoleptic

3

5

4

3

2

2

2

2

Nutritional

5

7

8

5

3

3

3

3

Anti metabolic

5

8

10

10

12

12

15

15

Anticancer

2

2

3

5

5

5

7

10

MARKET STRUCURE

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• •

Novartis is the largest Neuroscience company in Pakistan, being present in 35% of total Neuroscience market Novartis has 20% market share in served segments of Neuroscience & 6.8% in total

INDUSTRY MARKET SIZE • • •

Market % of Pharma Mkt. Growth

: : :

Rs 63 Bio 11% 12%

Following is the market position of Tegral • • • • • • • • •

• •

Medium sized market:Rs.616 mio.,2005 -- Growth 16 % Top 3 players (Novartis, Abbott, Roche, Janssen Cilag) = 70% Cabamazepine 1/2 of total AED market Tegral-leader 29% MS 10 generics have 16.3% MS NCE: Lamictal, Topamax Low priced generics are displacing Tegral in Institutions & substitution Due to cost effectiveness & efficacy of Tegral, its acceptance level is very high Compliance rate is quite high but mostly suboptimal dosages are recommended or followed by the patients Usually ILAE treatment guidelines are adopted Most of the KOLs are major prescribes of Tegral

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DISTRIBUTION STRUCTURE OF THE BUSINESS Doctors Institutions Patients Wmh Rp o ealtie l tel e rr ri b u t o r s Co D nas s yi a

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PLC STAGES OF THE BRANDS IN THE MARKET

IMPLICATIONS Tegral is the Market leader of Anti – Epileptic drug industry and its in its mature stage in the PLC while other competitors are either in the growth stage or the decline stage. This indicates that Tegral has high market share but has to retain its position in the market as competitors are trying to penetrate the market through high promotional schemes and marketing strategies.

DRIVING FORCES AND TRENDS IN THE INDUSTRY •

• •

Low priced generics are displacing Tegral in substition and institutions’. Increased competition and new players entering the market with new products are causing major price falls. Novartis has to follow the same price trend even thought its raw materials are imparted. Most of the KOL’s are major prescribers of Tegral. Hence it enjoys high share of voice as majority of the key opinion leaders prescribe Tegral to cure epilepsy. KOL’s are a major driving force towards high market share of Tegral. Disease awareness is increasing among the masses especially in urban areas. General Practioner need education to diagnose epilepsy which will lead to higher Tegral prescribers

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•

and users especially in the urban areas. This driving force will help in increase of the epilepsy market itself. New molecules are being adopted by specialists. Hence the pharmaceutical industry can now avail the opportunity to introduce new products in the market and expand its market.

ENVIRONMENTAL ANALYSIS Epilepsy - Issues in Pakistan: Lack of awareness to treat Epilepsy as a lifelong paroxysmal disorder. More than 40% of Pakistani patients are not aware that they are suffering from Epilepsy. Widespread ignorance & illiteracy makes health education & self-care difficult People are susceptible to the influence of quacks, Hakeem’s and homeopathic physicians. Lack of resources at provider level: •

Primary health care professionals without adequate training

•

Lack of health care professionals in rural and poor areas where they are needed most

•

No data availability to encounter heart related complications cost effectively

Lack of resources at patient level: •

Generally low standard of living makes achieving balanced diet, having healthy lifestyle & taking appropriate treatment more difficult.

Lack of political will and commitment for prevention and control of Hypertension.

GOVERNMENTAL POLICY Pharmaceutical Companies in Pakistan have to undergo heavy tariff and income taxes that are applicable to multinational firms. Government policies regulate: a) Total Revenue of the company.

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b) Total cost figure which relevance to their share in overall profits. c) Drug Registration, with strict price regulations

Price Controls and Forced Price Reductions Very serious concerns on the move by the government, under pressure of the pharmaceutical industry, to deregulate the pharmaceutical sector. a)

b) c)

d) e) f)

g)

To begin with, a case for deregulation of medicine prices has been developed. Multinational pharmaceutical companies working hand-in-glove with the Ministry of Commerce, Industry and Production have been lobbying hard for quite some time for deregulation of prices. The government is fulfilling its responsibility in providing health care to the needy Pharma seeks the support from the U.S. Government to ensure that the Government of Pakistan allows price increases immediately, and at a level which will be sufficient to stem the dramatically declining profitability of the research-based pharmaceutical industry during recent years. Government imposes compulsory price reductions on targeted products which were based on an unjustified price comparison with India. Show Cause Notices: with political pressure for cost containment, many multinational companies received Notices with orders to reduce prices of products from 5-28% on 21 packs of 17 products. Utilization of prices applicable to the Indian market are inappropriate when applied to pricing of pharmaceuticals in the Pakistani market. India has a significantly lower cost base for all materials, utilities and employee costs; and the purchasing power of the average Indian is significantly below a Pakistani citizen. In addition, all prices have, in any case, been approved by the Ministry of Health (MoH). Furthermore, they ignore all those products where there is a much lower price in Pakistan than in India.

Intellectual Property Barriers a) Pakistan has a law for the protection of intellectual property. In Pakistan, patents are registered under the Patents & Designs Act of 1911 and trademarks are registered under the Trademarks Act of 1940. Protection for patents is for processes only, and the duration

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of protection normally is 16 years. b) The Patents & Designs Act, 1911 (PDA) confers on the patentee exclusive privilege for making, selling and using his invention throughout Pakistan and of authorizing others so to do. The primary purpose of the PDA is to protect new invention and to encourage the growth of industry in the country.

Product Registration a) The regulations to obtain a sales permit for a given pharmaceutical product require that the dossier of supporting data be accompanied by Certificates of Free Sale, confirming the approval for sale of the product in developed countries of the world, such as the U.S., Europe and Japan. The research-based industry has understood and accustomed itself to this requirement.

Licenses For acquiring a manufacturing licence or its renewal, membership of Pakistan Pharmaceutical Manufacturing Association (PPMA) is compulsory.

Sales Tax a) Pakistan is the only country in which the government has imposed duties and taxes on such an essential industry. b) It is for the first time that 15% sales tax has been imposed on pharmaceutical products besides imposing regulatory duty on the import of raw materials, intermediaries and packing material.

INTERNAL ANALYSIS PERFORMANCE ANALYSIS MARKET SIZE AND GROWTH OF TEGRAL

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Internal Data

2003 Act 2004 Act 2005 LE3 2006 Bu 175.6 182.5 210.8 233 6.48 3.9 15.5 10.5 -0.8 20.57 16 13 34.2 29.4 29 29.2

1. Sales % Growth vs. PY % TRx Growth vs. PY % Market Share 2. % Market Growth

13

Market definition:

18

15

10

Medium sized competitive market

3. M&S % of Sales

3.7

4.9 3 m onths

4. Sales Running Rate (use linear regression model) 5. Forecast Sales Growth (%)

5.9 6 m onths

211016

209950

YTD 21.6

YTG 19.7

COST STRUCTURE Cost of Production COST ANALYSIS COST OF PRODUCTION (Contribution as percentages)

6.3 LE3 210800 2006 10

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NOVARTIS

Abbott

COST

Roche

31%

29%

Raw Material

28%

13%

12%

Packaging & Processing

10%

17%

19%

Labour

20%

15%

19%

Factory Overheads

17%

9%

7%

Depreciation

10%

5%

%

Amortization

3%

10%

10%

technology development

11%

100%

100%

Total

100%

MARKETING & SELLINGS COSTS (As %) COST TYPE

NOVARTIS

Abbott

Roche

SALES FORCE EXPENSE

15%

20%

20%

MARKETING STAFF EXPENSE

20%

15%

15%

SALES ACTIVITES

25%

32%

30%

MARKETING ACTIVITES

20%

23%

25%

Goodwill

20%

10%

10%

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TOTAL

100%

100%

100%

Relative Cost Structure COST TYPE

NOVARTIS

Abbott

Roche

Cost of Production

45%

40%

35%

Marketing & Sales

40%

35%

38%

Distribution

15%

25%

27%

Sales

100

100

100

NON – FINANCIAL PERFOMANCE ANALYSIS Company Capabilities:

Company Capabilities

Average

Good

Excellent

Strengths/Weakness

Sales force size

Roche(38)

Abbott(90)

Novartis(120)

Strength

Sales force effectiveness

Abott

Roche

Novartis

Strength

Marketing Effectiveness

Roche

Novartis

Abbott

Weakness

Relations with KOLs

Abott

Roche

Novartis

Strength

Critical evaluations

Novartis

Roche

Abbott

Weakness

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Corporate image

Roche

Abbott

Novartis

Strength

Product Capabilities Product Capabilities

Average

Ability to Control Epilepsy

Good

Excellent

Strengths/Weaknesses

Rivotril

Tegral

Strength

Safety

Rivotril

Lamictal

Epival

Weakness

Convenience of Usage

Epival

Tegral

Rivotril

Weakness

Formulations

Lamictal

Epival

Tegral

Strength

Dosage

Topamax

Topamax

Epival

Weakness

Implications The Analysis above shows that Tegral’s main strength is the corporate image of Novartis that retains and motivates the sales force to effectively deport their strategic promotional and tactical plans to gain customer ground. While two of its rivals Abbott and Roche are gaining share of voice through relations with KOLs and clinical evaluations. This SCA, combined with its’ highly effective sales force and marketing efforts, give the Neuroscience Unit a required upper hand, while its huge sales force size may also be turned into a core competence, since Novartis has its own distribution, which its archrivals lack.

Key Learning • •

The Neuroscience Unit’s Achilles heel is the convenience of Tegral’s dosage, which is comparatively lower than the competition. Dosage for children and young adults should be varied Tegral does not sport varied versions of its formulations. New formulations should be

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adopted to gain competitive advantage

PRODUCT PORTFOLIO ANALYSIS Implications Tegral being the market leader and in the maturity stage of its PLC, is the Cash Cow of Neuroscience Unit. The strategy proposed under the BCG Matrix for Cash Cows is to finance question marks and stars that is the either existing products that are in their growth stage and have high market share and growth rate or new products that are penetrating the market that are now at a low market share but have high growth rate. Epival is considered as a star. Topamax is considered as a star. Rivotril is considered as a problem child or a dog.

SWOT ANALYSIS

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Strengths • • • • •

• • •

Market Leader Strong CNS image of Novartis Strong brand image-Heritage, Valuation Strong rapport with KOLs High acceptance of Cabamazepine as an anti epileptic FDA approved Effective in multiple indications First line, first choice therapy

Opportunities • • • • •

Weaknesses • • • •

Only one formulation is available No formulation for children Mostly under dosage is recommended Lack of resources to tap attractive opportunities

Threats

High growth rate of the market More doctors particularly GPs are diagnosing epilepsy High treatment gap Lot of potential in different indications (PDN) New Molecules are high cost & with low safety profile

• •

• • • •

High SoV of competition Increasingly high acceptance of evaporates Increased penetration of low cost Generics in institutions Epival has many galenical forms Introduction of new molecules Compliance is low

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WEAKNESSES

Weaknesses

AND THREATS

Threats

•

• •

• • •

• •

Existing Threat: High Share of Voice of competition. Increased penetration of low cost Generics in institutions Rapid growth of below the line and direct to consumer advertising Increasingly high acceptance of valproates Epival has many galenical forms Potential Threat: Introduction of new molecules Compliance is low Entry/exit into the Industry: Increase in number of neuroscience competitive products. Consumers have been offered more and more choices.

• • • •

Only one formulation is available No formulation for children Mostly under dosage is recommended Lack of resources to tap attractive opportunities

Proposed Strategies 1. Formulation should be introduced for children and young adults. 2. Promotional Strategy to create awareness and increase mind share 3. Promote KOLs to increase the number of patients 4. Optimize the loyalty base of Tegral users 5. Switch Epival users to Tegral 6. Low dosage range extension should be introduced 7. In regions other than Karachi, Lahore and Peshawar, distribution should be made more extensive to increase availability. More agents should be contacted 8. Management should strategize

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their aims to retain their sales force through benefit planning and incentives.

WEAKNESSES

Weaknesses

AND OPPURTUNITIES

Opportunities

• • • •

Proposed Strategies •

• • • •

High growth rate of the market More doctors particularly GPs are diagnosing epilepsy High treatment gap Lot of potential in different indications (PDN)

Only one formulation is available No formulation for children Mostly under dosage is recommended Lack of resources to tap attractive opportunities

• •

Conduct seminars and workshops to train GPs about Epilepsy and the usage of Tegral. Treatment gap should be reduced by awareness programs in rural areas. Cost - plus pricing should be practiced for new molecules exposures and regulations for safety should be

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•

New Molecules are high cost & with low safety profile

•

enhanced Local firms desirous of export but lacking necessary export structure

Strengths

STRENGTHS AND OPPURTUNITIES

• • • • •

• • •

Market Leader Strong CNS image of Novartis Strong brand image-Heritage, Valuation Strong rapport with KOLs High acceptance of Cabamazepine as an anti epileptic FDA approved Effective in multiple indications First line, first choice therapy

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Proposed Strategies Opportunities

• •

• • • • •

Capitalize on strong CNS franchise – build further rapport with KOLs Patient Evaluation Programs: For KOL Development KEEP (Key Experts Evaluation Programs)Painful Diabetic Neuropathies for 30 Physicians BOC - 2 Programs for 30 Doctors each for PDN Epilepsy Project

• High growth rate of the market More doctors particularly GPs are diagnosing epilepsy High treatment gap • Lot of potential in different indications (PDN) New Molecules are high cost & with • low safety profile - CME Programs for Family Physicians (Epilepsy)

- Epilepsy Camps (28 camps organized so far) •

Neuroscience Summit: Patient Evaluation Program for major Brands of Neuroscience, Total 35 Top KOLs from Neurology & Psychiatry

Strengths STRENGTHS AND THREATS

• • • • •

• • •

Market Leader Strong CNS image of Novartis Strong brand image-Heritage, Valuation Strong rapport with KOLs High acceptance of Cabamazepine as an anti epileptic FDA approved Effective in multiple indications First line, first choice therapy

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Threats •

• • •

• •

• •

Proposed Strategies

Existing Threat: High Share of Voice of competition. Increased penetration of low cost Generics in institutions Rapid growth of below the line and direct to consumer advertising Increasingly high acceptance of evaporates Epival has many galenical forms Potential Threat: Introduction of new molecules Compliance is low Entry/exit into the Industry: Increase in number of neuroscience competitive products. Consumers have been offered more and more choices.

• •

• • • • • • • • • •

Build further rapport with KOLs Exploit on stronge CNS franchise Patient Evaluation Programs should be conducted for KOL Development Own distribution structure of Tegral, measuring highest in clinical evaluation, effectiveness & safety Summits of KOLs for top brands in neuroscience to increase share of voice Focus to minimize substitution. More Focus on RMOS Better Awareness of Epilepsy Project Refine Advertisement media More sustained branding Powerful message delivery Monitor promotion in different indications

MARKET POSITIONING & SEGMENTATION

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SEGMENTATION OF BRAND

Chemist doesn’t Patients Ask Patient With Chemist Clerk Spontaneous Ask Chemist specific Patient prescription recommend chemist buy seek recommend buy product cheaper recommend Tegral for Tegral brand/generic Tegral Marketing Trade target target Source ofgeneric/other business recommend (Dispense other treatment (388) recommend. -w/o (98) brand/generic (91) 76% 80% Rx (510) (22) brand 93% (7) 7% 92% Tegral) (122) (64) (24) 24% 16% 20% (2) 8% (324) 84%

Segmentation Process per CPO

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TOP 5 BRANDS Sales % of Sales % of Brand Sales % of Brand PER CPO Generated Brand Generated by M&S spent Generated M&S spent on by M&S PHARMACI on Pharmacy by Patient PHYSICIA spent on ST programmes PATIENT programmes N Drs Of all pts Tegral gets 437 entering a pts (86%) pharmacy with intention to buy (Actual Business) Tegral (510)*

324 74%

Xx%

22 5%

Customer Segmentation A2B Shift and Local Physician Segmentation

xx%

91 21%

xx%

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MARKITING PROCESS Uses Using Uses Not Physician Physician Physician initiating Treats Tegral Tegral Tegral Segment Segment Segment widely first in 213 2nd (e.g. specific line Tegral line (e.g. with when Spreaders) in Loyals) Tegral A2B shift other patients/CG patients/CG and drugs advocates where where failefficacy efficacy matters matters most most

TARGET MARKET Epilepsy Target Audience : Psychiatrist, Neurologists,Physicians,GPs Core messages Time tested & original Cabamazepine

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The primary drug for all epilepsies except absence seizures Excellent Efficacy

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Painful Diabetic Neuropathies • • • •

Target Audience: Physicians, GPs, RMOs Well documented & proven Efficacy Better than NSAIDs Better than Gabapentine as it its effect doesn’t diminish with the lapse of time

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MARKET POSITIONING

Brand Vision Maintain RX base of Tegral in Epilepsy & Neuropathies & sustain the leadership position

Brand Positioning  Tegral is the treatment of first choice in epilepsy because it has proven efficacy & better tolerability, which brings them back to normal life  Tegral is the only right treatment for neuropathies because of its efficacy & treatment

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cost is better than competition

Strategic Strate Help Convince Patients Ensure toshould to Get GPs gic aware that diagnose Physicians be educate && Switched Imper Treat GPs Epilepsy chemists to isnot a to patients atives Epilepsy prescribe treatable substitute from Epival disease-& Tegral in PDN treat

Imperation

with Tegral

Positioning By Attributes As an AED drug, Tegral positions itself on its attributes with high efficacy and economical pricing.

Positioning Statement: “Tegral is the treatment of choice for epileptic patients and their caregivers for whom efficacy is the priority over tolerability/convenience.”

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MARKETING MIX The most interesting part of commerce is the marketing; this is the latter addition of the business tools. It starts with conceiving idea of presenting a product, traditionally producers were interested in producing those goods only which has existing pull, whereas now because of marketing tools they are producing with the intention of pushing the product into consumer’s hand. Marketers use numerous tools to elicit desired response from their target markets. These tools constitute a marketing mix. Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. McCarthy classified these tools into four broad groups that he called the four P's of marketing: Product Price Place Promotion

Product Defining the characteristics of your product or service to meet the customers' needs.

Price

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MARKITING PROCESS

Deciding on a pricing strategy. Even if you decide not to charge for a service, it is useful to realize that this is still a pricing strategy. Identifying the total cost to the user (which is likely to be higher than the charge you make) is a part of the price element.

Place or distribution Looking at location (e.g. of a library) and where a service is delivered (e.g. are search results delivered to the user's desktop, office, and pigeonhole - or do they have to collect them).

Promotion This includes advertising, personal selling (e.g. attending exhibitions), sales promotions (e.g. special offers), and atmospherics (creating the right impression through the working environment). Public Relations are included within promotion by many marketing people.

PRICING PLAN Breakup of the Pricing Of Tegral

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MARKITING PROCESS

Tegral – 200mg (50 Tablets) Selling Trade Price

121

Retail Price

142 Margin per Distribution

Wholesaler Manufacture Distributo / Profit 15% 5% Retailer rMargin r

Pricing in Comparison to the Competitors: S.no

Product

Retail Price per Tablet

per mg

1

Tegral

Rs 3

200mg

2

Epival

Rs 4

250mg

3

Topamax

Rs 20

50mg

4

Rivotril

Rs 5

2mg

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5

Lamictal

Rs 15

100mg

Action Plan Implication According to the KOLs, they believe that Tegral is a high-value product i.e. premium product that has not been premium priced, thus this adds as an additional value towards the attributes of the drug.

Key learning of the pricing strategy • • • •

Bottom line cost should be lowered to gain cost-plus advantage from the product Tegral should double its pricing to gain competitive advantage Most cost of production is inculcated from raw materials imported and R&D, Tegral should apply range extension to its current range line i.e 200mg Tegral can consider more cost effective ways to produce or distribute its products

OPERATIONAL PLAN TACTICAL PLAN Changes • There should be further steps taken for the brick walling of customers • Due to rapid changes in Customer Loyalties a more focused strategy should be implemented • There should be an effective execution of Leader Development Program • Right customers selection process should be executed to organise meetings • Epilepsy Project should be expanded • Focus to minimise substitution

Key Learning

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MARKITING PROCESS

• • • • • •

More Focus on RMOS Better Awareness of Epilepsy Project Refine Advertisement media More sustained branding Powerful message delivery Monitor promotion in different indications

Product Plan The product plan is based on the external and internal analysis of the company. Tegral has a very strong and innovative brand image and its main strength is its continuous innovation and product line. As per the survey conducted to assess Tegral’s non-financial performance critical points that are of importance to the preparation of a sound product plan are: 

Novartis has a strong corporate image which has a positive impact on the overall strategic positioning of Tegral in the market. This induces the relations with the Key Opinion Leaders.

 Tegral has a strong sales force which is effective and efficient as compared to competition sales team hence it has managed to gain high market share and has the ability to expand its market.  The rate of efficacy is very high in Tegral thus due to this there is a shift of patients from other AEDs to Tegral in later stages of treatment

PRODUCT PORTFOLIO ANALYSIS This BCG matrix has been developed using the Rx trends. The strategies to be used according to this approach are

Product

BCG Position

Recommendation

Tegral

Cash Cow

Invest to retain market share

Epival

Star

Invest further to increase market share

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Topamax

Star

Invest further to increase market share

Rivotril

Dog

Harvest then divest.

Implication The CNS Unit of Novartis has a consistent product line as all these are specialty products and go through the same distribution channel. These lines are closely related to each other as they perform the same functions for buyers i.e. treatment of neurological disorders.

Suggested Strategies for CNS Product Mix Epilepsy:  Product line should be stretched by introducing high priced molecule to cater the Epilepsy market  Tegral should enhance its product depth by introducing suspensions for children  Tegral should cater the young adult market by providing low dosage tablets in 75 mg and 150 mg tablets. Depression: 

Clomfranil should extend its product line and introduce new product that is already in the pipeline for schizophrenia patients.

Dementia:  The dementia segment should stretch its line by introducing low priced products to cater to a low priced segment. Schizophrenia: 

Clozaril should extend its product mix depth by introducing 50 mg tablets.

PROMOTIONAL PLAN

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Positioning •

Express Exelon (brand extension) is the treatment of choice in dementia patients with Noticeable Change causing distress, because it helps stabilize patients with superior efficacy that endures.

CPP “Stability in a time of change”

Actions • • •

Focus strategy and communication where need for efficacy drives the treatment decision Convince Neurologists / Psychiatrists of the importance of dose Strong communication of the clinical data to improve efficacy and tolerability perception

C4 Insights Gap Analysis Customers/Physicians •

Understand what data/messages physicians request to support Exelon’s benefits in target segments

Customers/Payers •

Understand what information will drive future decisions concerning access to treatment in AD How to position “entire clinical package”

Consumers/Patients • • •

Confirm overlap between patients with rapid disease progression and patients with demanding caregivers Refine target segment description Keep focus on Noticeable Change patients

1. More effective drugs • •

Improving symptoms Stabilizing the patient as long as possible

Action: Focus on unique efficacy data

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2. Drug which is well tolerated and convenient to use Action: 4 week dose period to be highlighted 3. Guidance on how and where to use available treatments (differential usage), supported by meaningful data Action: Focus strategy and communication on targeting AD patients and caregivers 4. Treatments for other dementias and MCI Actions: Trials in VaD, PDD and MCI

BROCHURE THEME:  Alzheimers and its affects on those who suffer from it.  Exelon Express is the ray of hope in the lives of AD patients. It is most effective in the treatment of Alzheimers.  To describe Exelon Express’s mechanism of action.

OBJECTIVES: To continue being the market leader by reinforcing the benefits of Exelon Expressly among the target audience.  Trying to nullify the effects pf other competitive products with different generics on target market. 

FRONT PAGE: New life, New hope 1ST PAGE

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There are many psychosocial issues related to Alzheimers, including the restrictions on driving and the problems with unemployment, societal discrimination, memory and cognitive difficulties, mood swings, and medication side effects.

1. Seizures - a symptom of Alzheimers.  What are seizures and their types? 1. Risk factors in Alzheimers

2ND PAGE: 1. 2. 3. 4. 5.

About Exelon Express Seizure Control Compliance Safety Dosage

3RD PAGE: Comparison of Exelon Express with Competitive products

THE DISTRIBUTION STRATEGY One of the major strengths is Novartis’ own distribution system which distributes all products of the organization. To facilitate the distribution throughout Pakistan Novartis has: •

10 Sales Depots,

•

5 Customer Service Centers, and

•

5 Special Sales Representatives

in different areas for supply of the medicines.

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A trained and motivated sales force carries out sales call on pharmacies throughout Pakistan. Out of 24,000 licensed chemists in Pakistan, Novartis is covering 20,000 and intends to cover the remaining portion gradually while keeping in front the policy of the company. In order to cater the need of areas where the depots are not present or the same are pretty far away, Novartis has established Customer Service Centers (Satellite Offices) which act as order takers for sales depots. At present there are 5 such centers mainly in Punjab. This project was initiated to improve availability of products and efficiency. Distribution Plan  Focus on improvement of Inventory Turn Over through enhanced projections & proactive analysis of changes in the market environment, through the Sales Force.  Attempt to further improve morale of sales force to further improve efficiency of sales activities which stands as an SCA for the Central Nervous System Unit and Novartis as a whole.  Study and identify gaps in territories that might be resulting in loss of sales, and take measures to fill them.  Constant feedback and proper analysis of it, to ensure headway to achieve the Distribution Strategic Intent – “Beat Muller & Phipps, the best distribution firm”

Implications Either remove Customs Duty or allow compensation in price adjustment. Note that the adjustment must be to maintain margin not simply to pay the duty. Hence, since approximately 65% of industry cost base is imported material, the extra increase must be 6.5%. Withdraw all notion of a high priced group of products on which no upward adjustments will be allowed. Introduce the concept of market driven pricing for the "decontrolled" products (i.e. abolish any control over these prices.